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VOLUME NO. 2 (2012), ISSUE N O.
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VOLUME NO. 2 (2012), ISSUE N O. 2 (FEBRUARY)
ISSN 2231-1009
CONTENTS
Sr. No.
TITLE & NAME OF THE AUTHOR (S)

MALL CHOICE CRITERIA: A QUALITATIVE STUDY WITH REFERENCE TO NEW MUMBAI SHOPPERS DR. SUDHEER DHUME & DR. ANKUSH SHARMA PERFORMANCE ANALYSIS OF THE LIGHT RAIL TRANSITS (LRTs) TICKET-BASED SYSTEM IN STATION X USING SIMULATION SOFTWARE MA. TEODORA E. GUTIERREZ DIVERSIFYING A PAKISTANI STOCK PORTFOLIO WITH REAL ESTATE CAN REDUCE RISK AMMAR ASGHAR & KASHIF SAEED THE EFFECT OF FDI INFLOWS ON NIGERIAS BALANCE OF PAYMENT FOR THE PERIOD 1980-2009 OMANKHANLEN ALEX EHIMARE FINDING THE DETERMINANTS OF CAPITAL STRUCTURE: A CASE STUDY OF UK COMPANIES MUKHIDDIN JUMAEV, JALAL HANAYSHA & EMAD EDDIN ABAJI AN ASSESSMENT OF THE CONTRIBUTION OF PAY-AS-YOU-EARN TO THE INTERNALLY GENERATED REVENUE OF KANO STATE BETWEEN THE PERIODS 1999 TO 2008 ISHAQ ALHAJI SAMAILA A FRAMEWORK FOR MINING BUSINESS INTELLIGENCE A BOON TO NON MINING EXPERTS B. KALPANA, DR. V. SARAVANAN & DR. K. VIVEKANANDHAN UTILIZING THE POWER OF CLOUD COMPUTING TO PROMOTE GREEN LEARNING DR. V.B. AGGARWAL & DEEPSHIKHA AGGARWAL WORK EXPERIENCE AND LENGTH OF WORKING HOURS ARE AFFECTING ON THE STRESS DHANANJAY MANDLIK & DR. PARAG KALKAR AN EMPIRICAL INVESTIGATION INTO MANAGEMENT PRACTICES OF ACADEMIC LEADERS IN MANAGEMENT COLLEGES SWAPNIL PRAMOD MACKASARE & DR. UMESH VINAYAK ARVINDEKAR USING NCDH SEARCH ALGORITHMS BLOCK MOTION ESTIMATION R. KARTHIKEYAN & DR. S. R. SURESH SERVQUAL IN FINANCIAL SERVICES: CASE STUDY OF LIFE INSURANCE CORPORATION OF INDIA DR. KESHAV SHARMA & BEENISH SHAMEEM INFORMATION ORIENTATION AND ETHICAL PRACTICES IN GOVERNMENT ORGANISATIONS: A CASE OF HEALTH SECTOR ANJU THAPA & DR. VERSHA MEHTA DO THE TEENAGERS EVALUATE THE PRODUCT WHILE INFLUENCING THEIR PARENTS TO PURCHASE? DR. A. S. MOHANRAM RIGHT TO EDUCATION: EFFECTIVE USE OF ICT FOR REACHING OUT TO SOCIALLY AND ECONOMICALLY WEAKER SECTIONS IN INDIA PRABIR PANDA, DR. G P SAHU & THAHIYA AFZAL WEB RESOURCES FOR GREEN REVOLUTION M. PADMINI, M. SURULINATHI, T. R. SAJINI NAIR & T. SUHIRTHARANI IPOs GRADE AND POST ISSUE PERFORMANCE: AN EMPIRICAL STUDY DR. ISHWARA. P & DR. CIRAPPA. I. B INVENTORY LEANNESS IMPACT ON COMPANY PERFORMANCE RENU BALA A STUDY OF BUSINESS OPERATION OF RRBs OF GUJARAT JAIMIN H. TRIVEDI SKILLS & COMPETENCIES FOR THE AGE OF SUSTAINABILITY: AN UNPRECEDENTED TIME OF OPPORTUNITY DR. B. REVATHY CORPORATE SOCIAL RESPONSIBILITY @ ICICI BANK MANISHA SAXENA INVESTMENT DECISIONS OF RETAIL INVESTORS IN MUTUAL FUND INDUSTRY: AN EMPIRICAL STUDY USING DEMOGRAPHIC FACTORS SHAFQAT AJAZ & DR. SAMEER GUPTA AN EVALUATION OF SERVICE QUALITY IN COMMERCIAL BANKS DR. V. N. JOTHI APPRAISAL OF QUALITY OF SERVICES TO EXPRTERS IN PUBLIC SECTOR BANKS SAHILA CHAUDHRY MANAGEMENT OF HOSPITAL DISASTERS: A STUDY OF HOSPITAL DISASTER PLAN RAMAIAH ITUMALLA
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CHIEF PATRON
PROF. K. K. AGGARWAL
Chancellor, Lingayas University, Delhi Founder Vice-Chancellor, Guru Gobind Singh Indraprastha University, Delhi Ex. Pro Vice-Chancellor, Guru Jambheshwar University, Hisar
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SH. RAM BHAJAN AGGARWAL
Ex. State Minister for Home & Tourism, Government of Haryana Vice-President, Dadri Education Society, Charkhi Dadri President, Chinar Syntex Ltd. (Textile Mills), Bhiwani
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Professor, Bharti Vidyapeeth University Institute of Management & Research, New Delhi
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Faculty, Yanbu Industrial College, Kingdom of Saudi Arabia
PROF. PARVEEN KUMAR

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Director, Chhatarpati Shivaji Institute of Technology, Durg, C.G.
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DR. BHARAT BHUSHAN

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Head, Department of Computer Science & Applications, Guru Nanak Khalsa College, Yamunanagar
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Associate Professor, P. J. L. N. Government College, Faridabad
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Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Mullana
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DR. BHAVET
Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Mullana
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Department of Commerce, Aligarh Muslim University, Aligarh, U.P.
DR. ASHOK KUMAR

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BOOKS
Bowersox, Donald J., Closs, David J., (1996), "Logistical Management." Tata McGraw, Hill, New Delhi.
Hunker, H.L. and A.J. Wright (1963), "Factors of Industrial Location in Ohio" Ohio State University, Nigeria. CONTRIBUTIONS TO BOOKS Sharma T., Kwatra, G. (2008) Effectiveness of Social Advertising: A Study of Selected Campaigns, Corporate Social Responsibility, Edited by David Crowther & Nicholas Capaldi, Ashgate Research Companion to Corporate Social Responsibility, Chapter 15, pp 287-303. JOURNAL AND OTHER ARTICLES Schemenner, R.W., Huber, J.C. and Cook, R.L. (1987), "Geographic Differences and the Location of New Manufacturing Facilities," Journal of Urban Economics, Vol. 21, No. 1, pp. 83-104. CONFERENCE PAPERS Garg, Sambhav (2011): "Business Ethics" Paper presented at the Annual International Conference for the All India Management Association, New Delhi, India, 1922 June. UNPUBLISHED DISSERTATIONS AND THESES Kumar S. (2011): "Customer Value: A Comparative Study of Rural and Urban Customers," Thesis, Kurukshetra University, Kurukshetra. ONLINE RESOURCES Always indicate the date that the source was accessed, as online resources are frequently updated or removed. Garg, Bhavet (2011): Towards a New Natural Gas Policy, Political Weekly, Viewed on January 01, 2012 http://epw.in/user/viewabstract.jsp WEBSITE

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MALL CHOICE CRITERIA: A QUALITATIVE STUDY WITH REFERENCE TO NEW MUMBAI SHOPPERS
DR. SUDHEER DHUME ASSOCIATE PROFESSOR NATIONAL INSTITUTE OF INDUSTRIAL ENGINEERING MUMBAI DR. ANKUSH SHARMA ASSOCIATE PROFESSOR ITM BUSINESS SCHOOL NEW MUMBAI
ABSTRACT
Organized Retail and Mall Culture has very much arrived in India. It is expected to grow at an accelerated pace in the times to come. Along with the growth the intensity of competition is going to be significantly high. Increasing the number of Foot-Falls and converting them in to shoppers will be a challenge for the management of Malls. In this backdrop, the knowledge of shopper behavior becomes pre-requisite for enhancing the probability of success. Precise knowledge of the parameters considered by the shoppers while choosing a mall out of alternatives can go a long way in guiding the marketing decisions. The present research paper aims at identifying those factors which influence shoppers mall choice at New Mumbai. Using FGD technique prominent factors have been identified. Based on this understanding certain broad recommendations are also made.
KEYWORDS
Retail, Malls, Shoppers Choice Criteria, FGD, Qualitative Research.
INTRODUCTION
rganized retailing in India witnessed a gross turnover of USD 320 billion1 in 2006. Although this figure is low compared with other developed economies, industry experts expect the growth rate of this sector at 35% until 2010. At present, about 100 malls are operational at a Pan-India level with a total area of 19 million sq ft. As per the current estimates, about 300 additional malls are expected to be constructed across the country by 2010. As organized retail grows, we expect the market to be more competitive by providing more choices to consumers and retailers. At this point, developers will have to work harder to create a differentiation for their product. We believe consumers and retailers will be attracted to malls that are professionally managed, making effective mall management a critical factor behind the success of a mall. The partial foreign direct investment (FDI) relaxation in 2006 allowed 51% ownership in joint ventures by single-brand companies in the retail market. This triggered high international single-brand retailer interest in the Indian retail market. Additionally, large Indian conglomerates such as Reliance Industries and Aditya Birla Group are commencing their foray into retailing across the country. This prompts the Indian retail industry to undoubtedly move on a high growth curve. However, at this juncture, retailing is still faced with one major challenge: systematic mall management. Currently, there are very few designated mall management companies in India. However, big retail chains such as Future Group and some large developers have set up their own mall management divisions that operate as their subsidiary companies. Some developers such as DLF have also recently entered into contractual arrangements with international property consultancy firms to manage their malls. Historically, developers were managing their malls in-house, which are expected to change going forward. (Debarpita Roy, Nitika Masih, 2007) The retail format that has shown maximum growth among all is the multipurpose shopping complexes or shopping malls. Spencer Plaza in Chennai and Crossroads in Mumbai are considered to have pioneered the shopping mall in its modern format. The pace of development has been fast since then. Mall development is expected to grow at a frantic pace in metros and mini metros driven by the organized retail sector and spread to 60 cities by the end of this decade. For the Indian mass affluent, the call of the mall is proving irresistible. The packed parking lots, busy food courts and restaurants, crowded anchor stores and noisy gaming arcades at the malls bear testimony to this alluring call. The secret of the lure of the mall lies in its mass appealit has something on offer for everyone in the family. The fact that a mall offers experience and not just goods is a major attraction. There is a wide range of shopping experiencesbargains and discounts or high-end brands for couples, gaming and other amusement facilities for kids, a large choice of cuisines for family meals, and, of course, the multiplex theatres. Since organized retail is in its nascent stage, mall management is mostly learning through trial and error. Build them and they will come, is the attitude towards consumers currently. Much to their dismay, malls are finding that shoppers are spending lot of time and not money at the malls. People visit cafes, spend the whole day here and pass their time. The malls are always crowded but most of the people come for window shopping and not actual shopping. When the promised footfall and conversions do not materialize, then the relationship between the retailer and the mall management sours. With more and more malls dotting the urban landscape, it is now becoming essential to study consumer behavior and differentiate the offerings. (Shelja Jose Kuruvilla and Nishank Joshi, 2010)
MALLS IN NAVI MUMBAI

Navi Mumbai is the world's largest planned city. It was initially planned with a specific purpose: to decongest Mumbai and become an alternative haven for the multitudes that throng to Mumbai from all over India. As of the 2001 India census, Navi Mumbai had a population of 703,947 which is projected in 2011 census data as 1,268,784 Males constitute 56% of the population and females 44%. Navi Mumbai has an average literacy rate of 74%, higher than the national average of 59.5%: male literacy is 79%, and female literacy is 67%. In Navi Mumbai, 14% of the population is under 6 years of age, with 28% in the age group of up to 15 years, 55% in the age group of 15-44 year bracket and 13% aged 4559. Average family size is 4.05 persons, compared to Mumbai's average of 4.85.67% of families living in Navi Mumbai own their homes and of the working population, 63.5% are employed within the city. With so many malls, mega-marts and retail stores in our city, and more to open up soon, the scene definitely looks good for the die-hard shoppers and window shoppers. Malls in the city are seeing a rise in footfalls during the last few months, global recession notwithstanding. There are so many high-end shops in the malls in Navi Mumbai that there is no need to go to Mumbai now, as almost all premium brands are available right here. Malls in the city are quite big and are a hangout for the youth of the city. Big Bazaar, gift shops like Archies and Karigar, music and book stores like Planet M and Crossword, various apparel stores are just too good for the consumer who has become king, says Snehal Bangad, a collegian from Belapur. Center One, Vashi, opened up first followed by others like Palm Beach Galleria, Raghuleela, City Center and now Inorbit. With five malls, Vashi has become a shoppers paradise One can also head to one of the multiplexes in the city, within the malls. Not just the customers, even the managements running these malls are positive about the long term impact of malls on the city and its consumerist culture.This satellite township has been witnessing a rapidly changing retail landscape and is on the brink of a retail revolution. With the launch of world-renowned stores

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across malls in Navi Mumbai, there has not only been a rise in footfalls here but also a boost in shopping of popular labels, amongst the shoppers. This eventually is helping malls like Inorbit to bring home to their shoppers famous sought-after brands. It is the shopping experience that people love here. Not everybody is necessarily looking for discounts and do not mind spending a few extra bucks. Besides, the growing population of expats in the city is adding to the changing profile of this citys consumer. Right now, due to the ripple effect of the global meltdown, a major chunk of customers are the loyal ones. However, recession is a temporary phase. The mall owners are sure that they will again start getting customers in huge numbers. The future of malls and the mall culture in this city seems fantastic. Some people attach special feelings with these concrete and glass structures, too. Customers and young couples, who spend a lot of time at the mall, consider it just like their home. They are very comfortable here and often hang out with their loved ones. It seems mall culture has already become a big factor in this city. Celebs are also adding to the glam quotient of these hip Masti, Bunty Aur Babli, Saas, Bahu Aur Sensex, Mumbai Meri Jaan were the other movies with certain scenes shot at Center One mall. Shatrughan Sinha aka Shotgun, Rekha and Satish Shah recently shot a few scenes of their new movie here. The ambience is what they like at our mall. (Sharma, 2008)
CHALLENGES
Earlier in the decade, mall developers were more inclined towards exiting the project early by selling retail mall units to investors at the pre-completion and post-completion stages and booked profits. As the ownership of individual retail spaces were with different entities, there was no central authority managing the malls. There was no control over the various facets of mall management mentioned earlier in the paper. Even though there have been some examples of professionally managed malls in recent years, organised retail in Indian malls have a long way to go to achieve optimum mall management. The current Indian scenario is plagued by various issues, some of which are discussed below. Lack of Feasibility/Market Research Prior to the Development of a Mall In the past, some malls were constructed without carrying out a rigorous due diligence exercise on their feasibility. The market scene is gradually changing wherein more and more developers are approaching property consultancy firms to conduct feasibility and positioning studies for their projects. Zoning Landlords/developers tend to lease out retail space on a first-come-first-served basis. This creates a sub-optimal tenant mix like a food and beverage outlet next to a designer apparel shop instead of an accessories or a footwear shop. Design Issues At present, most of the popular malls have long queues and congestion outside their main entry points during weekends and festive seasons. Having only one entry and exit points also leads to overcrowding. Similarly, the visibility of retail units from all vantage points is poor in many malls. Few Promotional Activities There are very few promotional activities organised in the majority of malls at present. Developers perceive that these events only help increase foot traffic and not revenues. Facility Management Good infrastructure/facility management of common areas becomes a problem in malls where retail outlets are sold as strata title. Parking Many malls in India do not have adequate parking. Since most malls are being built in the city, developers typically provide basement parking facilities. However, these parking spaces are inefficient due to low ceiling heights, bad lighting and single entry and exit points. (Banga, 2010) The coming year will have a lot of consolidation. The existing smaller or vacant malls will either be converted into commercials or will be acquired by the larger players. The commercialization strategy will improve as the developers have seen enough and have learned to reject the worst and select the best. The tagline "everybody is welcome" will no longer be entertained and the landlords will be more selective in case of tenant mix and assigning locations. To assimilate the above, complete and professional asset management services are required to assist the developers and to create a good balance between the customers, retailers and the owners. It is possible by correct succession of steps beginning from thorough market research till the designing of the property. Considering the fact that Indian real estate market has high potential and long way to go; the current phase demands improvisation through professional consultancy and other allied services. It is the time to see how owners employ the best use of these services in future. And if all this is incorporated, one can hope that Indian Malls can once again be on a path of glory.
PROBLEM DISCUSSION
Retail in India is passing through an interesting phase. On one hand there are promising projections of future growth, and on the other hand the landscape is becoming more and more competitive. Some malls do have large number of foot falls, but those foot falls are not getting converted to shoppers. What is true at the national level is true of Navi Mumbai market as well. The million dollar question on the top of the mind of mall management is How to make the shoppers to get attracted? Related question is What factors influence the customers while choosing the mall for shopping?
RESEARCH OBJECTIVE
The foremost objective of the research is to ascertain the Antecedents of consumers mall choice in the conglomerate locality.
LITERATURE REVIEW
Early researchers on mall patronage developed gravitational models to predict patronage for shopping areas using a combination of objective measures, such as distance, population density and mass (square footage of retail space)(Brunner and Mason, 1968; Huff, 1963; Bucklin, 1967). Huff (1964) and Huff and Rust (1984) retail gravity model, provides a formula for predicting mall patronage based on the principle of cost (accessibility) verses utility (size). Later studies focused on subjective factors such as image attributes and consumers shopping motives (Bellenger et al., 1977; Gentry and Burns, 19778; Nevin and Houston, 1980; Finn and Louviere, 1996; Stoltman, 1991). Wakefield and Baker(1998) examined the relationship between three factorstenant variety, mall environment and shopping involvement, on shoppers excitement and desire to stay at the mall in the effort to understand antecedents and consequences of excitement at the mall. Shopping mall attributes determine the shoppers attitude to malls. Shim and Eastlick (1998) defined mall shopping attitude as the shoppers attitude towards a variety of dimensions including location, variety of stores, parking, mall employee behavior, price, quality, customer service, promotional activities, ambiance, mall amenities, food and refreshments and safety. Malls are viewed as cultural and entertainment centers (Robertson, 1995; Rintamaki etal., 2006). They help retailers satisfy the utilitarian and emotional needs of the consumers (Holbrook and Hirschman, 1982; Bloch et al., 1994; Buss, 1997; Wakefield and Baker, 1998; Arnold and Reynolds, 2003) Over the past few years researchers have examined mall ambience, store factors, and facilities that contribute to mall patronage and attractions (Howell and Rogers, 1980; Finn and Louviere, 1990; Finn and Louviere, 1996; Swait and Sweeney, 2000; Darian et al., 2001; Yavas, 2003; De Juan, 2004). Paper looks at the mall attributes that influence consumer behavior which were identified by Bloch et al. (1994). They are categorized as follows: 1. Aesthetics: Belk (1975) concludes that physical and social surroundings of shopping centers are important attributes affecting shopping behavior. The variables such as locations, de cor, noise, aromas, lighting intensity, physical layout, and presence of other shoppers in a shopping environment influence consumers shopping behavior. 2. Escape: Shoppers seek respite from their daily routines in the malls. The mall environment provides positive cues which have an impact on the consumers moods (Bittner, 1992; Michon et al., 2008; Ghee and Ahmad, 2010). 3. Flow: Mall patronage motives are also influenced by variety, entertainment, social, leisure, fashion, convenience, and relaxation (Haynes andTalpade, 1996). 4. Exploration: Wakefield and Baker (1998) suggest that variety of shops in malls generate positive effect and excitement.

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5. Role enactment: Tauber (1972) states, Many activities are learned behaviors, traditionally expected or accepted as part of ascertain position or role in society likemother, housewife, husband, or student. A person internalizes the behaviors as required and is motivated to participate in the expected activities. 6. Social: Malls facilitate social interaction (Kelly, 1983). 7. Convenience: Research also suggests that convenience has the largest impact on the shopping center choices (Bearden, 1977)
METHODOLOGY
This Qualitative study was carried out to explore the antecedents of Shoppers Mall choice. The methodology included Secondary Research and Series of Focused Group Discussion (FGD). FOCUSSED GROUP DISCUSSION (FGD) Focused Group Discussions were conducted amongst the potential shoppers belonging to upper middle class .The respondents were chosen keeping in mind that they fall under the category of our target audience, i.e., having residence in Navi Mumbai and are from either SEC A or B. The main objective of conducting these group discussions was to understand the consumer behavior towards the malls in Navi Mumbai and also their expectations from the malls as a product or service mix. PARAMETER DEFINITION The parameters/attributes of interest in FGDs were as follows: 1. Location: EXTERNAL FACTOR Refers to the area in which the mall is placed. It takes into consideration the distance from the station [train/ bus], basically the accessibility of the mall. Also it takes into consideration the locale. 2. Ambience: EXTERNAL FACTOR Refers to the environment of a mall. It includes the layout, the flooring, the dcor, the overall furnishing and other small factors such as cleanliness etc which build up the atmosphere inside a mall. It is basically the overall feel of the mall. 3. Shopping area: EXTERNAL FACTOR It refers to the size of the mall. Sometimes also called as floor space, this parameter directly associates with the capacity of the mall. 4. Parking space: EXTERNAL FACTOR It refers to the availability of parking facilities for vehicles in and around the mall. 5. Events: FUNCTIONAL FACTOR This refers to the various programs and entertainment events which are organized inside the malls. 6. Food courts/restaurants: FUNCTIONAL FACTOR This refers to the sum of all the food retail shops, chains, cafs, ice cream parlors etc which are present inside the mall. 7. Brands: FUNCTIONAL FACTOR This refers to all the product outlets as well as services which are present in the mall. 8. Kids zone: FUNCTIONAL FACTOR This refers to the gaming parlors as well as special counters were young people can have some fun. 9. Multiplexes: FUNCTIONAL FACTOR Refers to the movie hubs present in the mall. 10. Shopping: FUNCTIONAL FACTOR Excludes purchase of daily need products i.e. FMCG products and includes apparel, electronic items etc. 11. Hanging out: FUNCTIONAL FACTOR When consumers go to a mall with the sole purpose of spending time with their friends, family, spouse or even alone, then it is called hanging out. 12. Window shopping: FUNCTIONAL FACTOR When consumers go to a mall with the intention of not buying anything but just to acquire information or to evaluate alternatives then it is called window shopping. 13. One stop shop: FUNCTIONAL FACTOR Refers to the characteristic of the mall i.e. the consumer can avail most of his needs in a single shop. 14. Discount offers: FUNCTIONAL FACTOR Refers to the discounts and offers which are given to a consumer when they go to a particular mall. 15. Daily need products: FUNCTIONAL FACTOR It refers to the need of purchase of FMCG product from a mall.
FINDINGS, DISCUSSIONS AND IMPLICATIONS

The following are the inputs we got from our respondents which were divided into clusters according to their profile and responses CLUSTER -1 Age: 40-45 yrs Residence: Kharghar For them the most important parameter of going to the mall was location followed by ambience, brands and food courts. They prefers going to the malls with her family on weekends. Since their children are grown-up, events and gaming zone arent much important to and they goes to the malls for buying groceries, footwear, clothes and to hang out at the food court. CLUSTER-2 Age: 35-40yrs Residence: Seawoods, Nerul The most important aspect for them to go to the mall is the fun part. She loves going to the mall with their family every weekends and they does shopping of groceries, footwear, gift items, clothing and also takes her children to the gaming zone and multiplex. For them brands and parking space are the two important criteria before choosing any mall and they prefers taking their relatives to the malls who visit her place. CLUSTER-3 Age: 25-30 yrs Residence: Dombivili For them, the first thing she expects from a mall is the ambience and they prefers going to the mall with their family where they can get bigger shopping area and a good food court and they visits the malls for watching movies and shopping for clothes and groceries. CLUSTER-4 Age: 30-35 yrs Reseidence: Kharghar No. of children: Nil they loves to go to the mall for hanging out with their friends and For them food court is the first priority followed by multiplex and shopping of clothes and footwear and they also likes doing window shopping with his friends.

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CLUSTER-5 Age: 25-30 yrs Residence: Kharghar No. of children: nil For them the mall should be a One Stop Shop, they prefer everything should be available under one umbrella. They prefers going to the mall with their family and spend time at the food court. Does there complete shopping for the mall and also visits the multiplex. CLUSTER-6 Age: 25-30 yrs Residence: Kalamboli No. of children: nil The first think they looks in while visiting any mall is the brands available there and They visits the malls during weekends along with his family and they spent their day shopping for clothes, footwear ,watching movies and also eating at the food court. CLUSTER-7 Age: 40-45 yrs Residence: Vashi They loves going to the mall with there family every weekend. Since, there children are grown-up, for them gaming zone and events arent much important. The foremost criteria for them while choosing any mall is the ambience. They are also particular about the brands available in the mall and also the food court. From this discussion, we could conclude that according to all the respondents a mall should be a One Stop Shop where they can spend their entire day with their family. It should have the proper ambience, food court, brands and a multiplex. Events are not something for which somebody visits malls but they definitely are crowd-pullers. According to all the respondents, Inorbit is the best mall in Navi Mumbai catering to all their needs.
CONCLUSION
Predicting the consumer behavior for a particular service or a product is very important in any industry. This gives us the trend and the perception that consumer has about a particular service or a product. The conclusions we were able to ascertain from the research were as follows: 1. There exists a marked difference in the behavior of various classes, their purchasing pattern and their attitude towards various functional as well as non functional parameters. 2. Location and restaurants are by far the most important parameters on which a consumer chooses which mall to go in. 3. Events and Gaming zones have no importance whatsoever but are definitely the future prospects for the mall industry. 4. Ambience, parking space, shopping area and brands play equal importance for the general mass, although they are important for all of them. 5. The time spending pattern for most of the people is not much which means that malls are still not in the mature stage. 6. The visiting patterns are confined to weekends except for the student segment and hence there is a need to position malls in the minds of the consumer as a place for relaxation not only shopping. 7. People usually go to malls with their family of friends and hence this is the way to promote them i.e. as a place of fun, excitement etc. 8. Recreational factors are of major importance along with shopping for the consumers. 9. The purchasing pattern of the consumers inside the malls is limited to apparel. Based on the inputs from the FGD Participants and detailed review of literature, following model is proposed: FIGURE 1: ANTECEDENTS OF SHOPPERS MALL CHOICE

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SUGGESTIONS
A good ambience is a must for any mall anywhere because this can be used as the biggest differentiating factor. When setting up a mall it is preferable for us to have a large and comfortable shopping area. If we have to place a mall specifically for Class A and Class B then we have to make sure that we provide the service of parking. Events are one area in which we have a potential to grow and differentiate. This can be a new way to promote a mall by associating malls through this variable. Gaming and Kids zone is very potential in future prospects. We can start a setup where we can provide services as to take care of children [little] when the parents are shopping with trained professional. This has worked very wel in foreign and may work out in India as well.
SCOPE FOR FUTURE RESEARCH

As Research was primarily focus on Satellite area of Navi Mumbai and researcher have tried to understand and ascertain the importance of factors with respect to the local market. Similar sort of research can be highlighted in different parts of country and mostly in the upcoming area. Mall Management requires lots of consumer decision making interfaces. Research can be conducted to explore those intangible variables and to present that in a more empirical manner. Quantitative Research can be carried out to ascertain the strength of each of the dimensions identified.
REFERENCES
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. Arnold, Mark J., Reynolds, Kristy E., 2003. Hedonic shopping motivations. Journal of Retailing 108 (2), 120. Bloch, P., Ridgway, N., Dawson, S., 1994. The shopping mall as consumer habitat. Journal of Retailing 70 (1), 2342. Bloch, P.H., Richins, Marsha L., 1983. A theoretical model for the study of product importance perceptions. Journal of Marketing 47 (Summer), 6981. Belk, Russell W., 1975. Situational variables and consumer behaviour. Journal of Consumer Research 2, 157164. Bittner, Mary Jo, 1992. Servicescapes: the impact of physical surroundings on customers and employees. Journal of Marketing 58 (April), 5771. Brunner, J.A., Mason, J., 1968. The influence of driving time upon shopping centre preference. Journal of Marketing 32 (2), 5761. Bucklin, L.P., 1967. The concept of mass in intra-urban shopping. Journal of Marketing 31 (4), 3742. Bearden, W.O., 1977. Determinant attributes of store patronage: downtown versus outlying shopping centers. Journal of Retailing 53 (2), 15. Banga, A. S. (2010, March 1). The Fading Picture of Indian Malls. Retrieved August 16, 2010, from http://ezinearticles.com/?The-Fading-Picture-of-IndianMalls&id=3846188 Bellenger, D.N., Robertson, D.H., Greenberg, B.A., 1977. Shopping centre patronage motives. Journal of Retailing 53 (2), 2938. Bloch, P., Ridgway, N., Dawson, S., 1994. The shopping mall as consumer habitat. Journal of Retailing 70 (1), 2342. Darian, J.C., Tucci, L.A., Wiman, A.R., 2001. Perceived salesperson service attributes and retail patronage intentions. International Journal of Retail and Distribution Management 29 (5), 205213. De Juan, M.D., 2004. Why do people choose the shopping malls? The attraction theory REVISITED. Journal of International Consumer Marketing 17 (1), 7196. Debarpita Roy, Nitika Masih. (2007). Mall Management A Growing Phenomenon in Indian Retail Industry. Mumbai. Finn, A., Louviere, J.J., 1996. Shopping center image, consideration, and choice: anchor store contribution. Journal of Business Research 35 (3), 241251. Finn, A., Louviere, J., 1990. Shopping center patronage models: fashioning a consideration set segmentation solution. Journal of Business Research 21, 259 275. Finn, A., Louviere, J., 1996. Shopping center image, consideration and choice: anchor store contribution. Journal of Business Research 35 (3), 241252. Ghee, W.Y., Ahmad, K.Z., 2010. How do in-store environmental cues influence Malaysian shoppers? A study of hypermarket customers in Malaysia. In: Proceedings of the Asian Business and Management Conference, Osaka, Japan, October, pp. 121139. Goss, J., 1993. The Magic of the Mall Gentry, J.W., Burns, A.C., 19778. How important are evaluative criteria in shopping center patronage? Journal of Retailing 53 (4), 7386 Huff, David L., 1963. A probabilistic analysis of shopping center trade analysis. Land Economics 39 (Feb), 8190. Huff, David L., 1964. Defining and estimating a trade area. Journal of Marketing 32 (4), 3438. Huff, David L., Rust, Rowland T., 1984. Measuring the congruence of a trading area. Journal of Marketing 48 (4), 6874. Holbrook, M.B., Hirschman, E.C., 1982. The experiential aspects of consumption: consumer fantasies, feelings and fun. Journal of Consumer Research 9 (2), 132140. Howell, R., Rogers, J.D., 1980. Research in to shopping mall choice behavior. In: Monroe, K. (Ed.), Advances in Consumer Kelly, John R., 1983. Leisure Identities and Interactions. George Allen, London.Research, vol. 8. Association for Consumer Research, Ann Arbor, pp. 671681 Michon, R., Yu, H., Smith, D., Chebat, J-C., 2008. The influence of mall environment on female fashion shoppers value and behavior. Journal of Fashion Marketing and Management 12 (4), 446456. Mall Management in the Indian Scenario. (2010, June 28). Retrieved August 10, 2010, from Spacedpractice:http://www.spacedpractice.com/2010/06/mallmanagement-in-indian-scenario.html Mckinsey Global Institute (2007), The Bird of Gold: The Rise of the Indian Consumer Market, retrieved on January 25, 2008, from www.mckinsey.com/mgi/publications/India_consumer_ market/index.asp. Mitra, M. (2006). The Best Malls in India, Rediffnews, retrieved on September 13, 2007, from www.rediff.com/money/2006/sep/05mall.htm?q=tp, Nevin, John R., Houston, Michael J., 1980. Image as a component of attraction to intraurban shopping areas. Journal of Retailing 56 (1), 7793. Rintamaki, T., Kanto, A., Kuusela, H., Spence, M.T., (2006) Decomposingthevalue of departmentstoreshoppingintoutilitarian,hedonicandsocialdimensions evidence from Finland.InternationalJournalofRetailandDistributionManage- ment 34(1),624. Robertson, K.A., 1995. Downtown redevelopment strategies in the United States. Journal of the American Planning Association 61 (4), 428. Stoltman, J.J., 1991. Shopping choices: the case of mall choice. Advances in Consumer Research 18, 434440. Shim, S., Eastlick, M.A., 1998. The hierarchical influence of personal values on mall shopping attitude and behavior. Journal of Retailing Swait, J., Sweeney, J.C., 2000. Perceived value and its impact on choice behaviour in a retail setting. Journal of Retailing and Consumer Services 7, 7788. Shelja Jose Kuruvilla and Nishank Joshi. (2010). Mall Management. Profiling the Heavy Consumers at Malls in India, 3-7. Tauber, E.M., 1972. Why do people shop. Journal of Marketing 36 (October), 4649. Wakefield, K.L., Baker, J., 1998. Excitement at the mall: determinants and effects on shopping response. Journal of Retailing 74 (4), 515539. Wakefield, Kirk L., Baker, J., 1998. Excitement at the mall: determinants and effects on shopping response. Journal of Retailing 74 (4), 515539. Yavas, U., 2003. A multi-attribute approach to understanding shopper segments? Journal of Retail and Distribution Management 31 (11), 541548.

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PERFORMANCE ANALYSIS OF THE LIGHT RAIL TRANSITS (LRTs) TICKET-BASED SYSTEM IN STATION X USING SIMULATION SOFTWARE
MA. TEODORA E. GUTIERREZ ASST. PROFESSOR INDUSTRIAL ENGINEERING DEPARTMENT TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES MANILA PHILIPPINES
ABSTRACT
The study evaluated the present performance of the light rail transits (LRTs) fare collection ticket-based system at Station X. The goal is to measure the performance of the current system in terms of the average time that passengers spent in operation that is, procuring the ticket from vending machines and time spent in waiting lines. Total number of passengers in waiting lines was also identified as well as the number of passengers already exited from the system given the thirty (30) minutes observed time. Application of Queue theory in the field of transportation was used as model framework and Promodel simulation software was applied to calculate the present and proposed system.
KEYWORDS
Rail transit, Simulation, Queue Theory.
INTRODUCTION
he presence of rail transit in the developing countries is imperative because it reduces the travel time from one destination to another that helps both individual commuters and businesses alike. The Light Rail Transit Authority (LRTA) is a wholly owned government corporation which is recognized to provide reliable, efficient, and environment-friendly mass rail services to all residents in Metro Manila. In that case, evaluating their systems performance is critical. The objective of the study is to conduct performance analysis of the fare collection ticket-based systems of LRTA in station X. Moreover, the intention of the study is to improve the systems performance in terms of identifying the optimum number of ticketing machines.
LITERATURE REVIEW
Queuing theory is used to mathematically measure the waiting time of an entity. An entity could be a products, customers, materials and machines. Also, this theory permits to calculate other performance indicators of a system like average time spent, average number of customers in a system, etc. On the other hand, simulation is one of a tool to understand queuing models because of its capability to measure a system performance. Researches in the field of Queuing theory were applied mostly in transportation industry. For instance, Soh, et al (2009), uses simulation to propose a new traffic model for multilane multiple intersection based on queuing theory. Moreover, Toledo, et al (2010) presented a transit simulation model in order to support evaluation of operations, planning and control where travel time is the basis of performance.
METHODOLOGY
The Light Rail Transit Authoritys fare collection system is a ticket based system, which uses two types of tickets: a single journey (one way ticket) whose cost is dependent on the destination and a stored value (multiple use) which cost one hundred pesos (P100). The study focused on a single journey ticket which can be procured from vending machines. The evaluation of the current performance was observed between 1:00pm to 1:30 pm at station X. Since that the station is considered as the central place and connecting place to the other rail transit, the period of time that the observation takes place is considered as peak hour. The data collected was stated in table 1. ProModel simulation software was used to measure its performance. TABLE 1 ARRIVAL FREQUENCY AND SERVICE TIME OF ALL PASSENGERS PEAK HOUR 1:OO PM 1:30 PM Machine 1 Machine 2 Machine 3 TOTAL A. Number of passengers arrive 111 79 139 329 B. Number of Minutes observed 30 minutes 30 minutes 30 minutes C. Total service time of all passengers arrive in 30 minutes 63.70 47.33 58.90 169.93 A.1 Arrival Rate 3.70 2.63 4.63 10.97 A.1.1 Passengers per Minute ( ) 0.27 A.1.2 Minute per passenger ( B.1 Service rate B.1.1. Passenger per minute ( ) 0.38 0.22 .091
Average per Machine 109.67 56.64 3.66
0.29
1.74
1.67
.87
4.29
1.43
B.1.2 Minute per passenger( ) 0..57 0.60 1.14 2.32 0.77 In the above table, three machines are working during actual observation, although there are seven machines available, the other four machines are under repair. The frequency of passengers arrival per ticketing machine within the 30 minutes observation ranges from 79 passengers to 139 passengers, which forms an average of approximately 110 passengers. On the other hand, the service time for all passengers which arrived in one ticketing machine within the 30 minutes observation ranges from 47.30 minutes to 63.70 minutes, which constitute an average service time of 56.64 minutes. The actual observation of passengers arrival rate was done from 1:00 pm to 1:30 pm, but the total time consumed in directly observing the system of LRTA station X is 4.5 hours, because all passengers arrived from 1:00 pm to 1:30pm were monitored up to the time they exit the system. The system defined here is where passengers procured their ticket through vending machines. Given the observed data, in order to measure the performance of the Light Rail Transits (LRT) ticketing machine, the study will use Promodel Simulation software. First step in promodel simulation is to build Location, where it involves identifying the fixed locations of the waiting lines and the ticketing machines in which passengers are routed for processing their transactions. The structure of the system is that each machine has its own waiting line (See figure 1).

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Second step in Promodel simulation is to identify Entity, it refers to the items being processed in the system (Benson, 1997). In this case, the entity is the passenger. Third step is to build Arrival rate. The total number of passengers arrived within the thirty (30) minutes observation is 329 passengers. Hence, arrival rate is 10.97 passengers per minute or 0.091 minute per passenger. The arrival rate is assumed to have exponential distribution in which it characterizes the independencies of arrival. Therefore, the arrival rate encoded in the Promodel has a syntax of E (0.91) MIN. The last step is to build Processing. The highlight of this step is to identify the service rate. In this study, the service rate is assumed to have uniform distribution with an average of 1.4 passengers per minute per machine or equivalent to 0.77 minute per passenger per machine. It is interesting to note that the service rate becomes longer when the arrival rate increases as implied in the above table where machine 3 has the longest service rate. The service rate ranges from 0.57 minute per passenger to 1.14 minute per passenger. Therefore the service rate encoded in the Promodel has syntax of U (0.77, 0.37) MIN, which means that the service rate has an average of 0.77 minute per passenger per machine and variance of 0.37 minute per passenger per machine.
RESULTS
Below are the results of the simulation after the abovementioned procedures. FIG. 1 PROMODEL SIMULATION ON THE TICKETING SYSTEM OF LRTA STATION X
FIG. 2 PROMODEL OUTPUT REPORTS ON LOCATIONS WITH THREE MACHINES
To validate the built model in relation to the actual data collected, the simulation run hours is set to thirty (30) minutes. Actual observation reflected that a total of 329 passengers arrived in the system within the time period of thirty (30 minutes), and in the simulation output report total entries is 334.80 passengers. Moreover, in figure 3 , simulation output revealed that the average time the passengers is in operation or procuring the ticket is 0.77 minutes. Hence, theres a little discrepancy if not none in terms of the data collected and the simulation output report, thus, the simulation model validates the actual fare collections ticket based system of LRTA station X. The current performance of the ticketing system of LRTAs station X after thirty (30) minutes of observation time during peak hours an average number of 110.87 passengers that are still waiting in lines .Each machine had already served an average of 40 passengers.

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FIG. 3 PROMODEL OUTPUT REPORTS ON ENTITY ACTIVITY
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Each passenger spent 10.35 minutes in procuring a ticket. Comprises of 0.77 minutes spent in procuring the ticket, and 9.58 minutes were spent in the waiting lines. Moreover, 115 passengers have already been served or exited in the system and 219.80 passengers are still waiting in line. FIG. 4 - ENTITY STATE
The passengers state in the present system with only three (3) available vending machines revealed that each passenger spent 92.54% of the total time waiting in line and only 7.46% of the time spent in procuring a ticket. The present performance of the system revealed poor customer service because it depicts the purpose of the passengers to arrive at their destination with lesser time for reason of them spending almost ten (10) minutes in queue or waiting lines. Hence, another scenario could be evaluated by having more available ticketing machines. During the actual observation, four ticketing machines are under repair. Measuring the systems performance when all ticket vending machines were used, reveals the following output: FIG. 5 PROMODEL OUTPUT REPORTS ON LOCATIONS WITH SEVEN MACHINE

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If seven (7) vending machines were used, the average number of passengers waiting in line is 28.57, which resulted to a possible reduction of approximately 200 passengers as compared to the previously observed scenario. Moreover, there is a huge reduction in terms of number of passengers in queue evident by only one passenger left waiting in line in each machine. FIG. 6 PROMODEL OUTPUT REPORTS ON ENTITY ACTIVITY WITH SEVEN MACHINES
If there are seven machines working, the passenger will spend 3.24 minutes in the system which comprises of both operation time and waiting time. The waiting time is 2.47 minutes as compared to the previous scenario of 9.58 Minutes. Moreover, the total passengers exited in the system after thirty (30) minutes is already 265.60 as compared to the previous scenario which is 115 passengers.
CONCLUSION
The performance of the actual observed system which was also termed as present system with three (3) vending machines reflects poor customer service since the time spent by each passenger is 10.3 minutes, which contradicts the purpose of Light Rail Transit (LRT), known to provide efficient and fast service. On the other hand, the proposed scenario, that is the usage of all seven (7) ticket vending machines, resulted to 3.24 minutes passengers time spent in the system. This is much lower when compared to the present scenario or the observed system which resulted to a reduction of 69% of the total time spent in the system. Also, the total number of remaining passengers after thirty (30) minutes is 65.90 passengers, a difference of 153.90 passengers or a 70% reduction of passengers. Nonetheless, further study in the analysis of increasing the number of vending machines and its effect to the system performance measure is recommended.
REFERENCES
BOOKS Banks, J., Carson, J, S. II, Nelson, B., Nicol, D.(2010) Discrete event system simulation 5th Edition .Pearson Hillier, F., Lieberman, G. (2010). Introduction to Operations Research Mc Graw Hill JOURNALS Soh, A., Khalid,M., Marhaban.M., Yusof ,R. ( 2009 ) Modeling of a multilane-multiple intersection based on queue theory and standard approach techniques Simulation Modeling Practice and Theory 17 (2009) 10811105 Toledo, T., Cats, O., Burghout, W, Koutsopoulos,H. ( 2010 ). Mesoscopic simulation for transit operations. Transportation Research pp. 896908 Benson, D. (1997) Simulation Modeling and Optimization using Promodel. Proceedings of the 1997 Winter Simulation Conference WEBSITE Bose, S. (2011) An Introduction to Queuing Systems viewed on December 18, 2011 http://home.iitk.ac.in/~skb/ee679/ee679.html

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DIVERSIFYING A PAKISTANI STOCK PORTFOLIO WITH REAL ESTATE CAN REDUCE RISK
AMMAR ASGHAR LECTURER UNIVERSITY INSTITUTE OF MANAGEMENT SCIENCES PIR MEHR ALI SHAH ARID AGRICULTURE UNIVERSITY PAKISTAN KASHIF SAEED ASST. PROFESSOR UNIVERSITY INSTITUTE OF MANAGEMENT SCIENCES PIR MEHR ALI SHAH ARID AGRICULTURE UNIVERSITY PAKISTAN
ABSTRACT
A stock only portfolio due to its high liquidity can easily lose its Net Asset Value in response of any stimulus like Open Market Operation, political instability or due to law in order situation in the country. If another asset is added to the portfolio that acts in reverse manner to these stimuli (i-e negatively correlated) then the Net Asset Value of the portfolio can be hedged. This study attempts to find that an illiquid asset like real estate if added to a stock portfolio can curtail its volatility (in other words hedge the Net Asset Value) or not? The researchers use Markowitz Portfolio Theory to answer this question. A few studies have been carried out in U.K and U.S.A to answer the same question but in Pakistan such a study is an unprecedented effort. The researchers found a high correlation of 0.58 between Karachi stock exchange and real estate market and a well desired negative correlation of -0.018 between Islamabad stock exchange and real estate market. Based on these correlation values optimal portfolio weightages of these assets were found. The results showed that an investor (considering the least coefficient of variation) should invest only 100% in real estate and 0% in Karachi stock exchange or he/she should invest 97% in real estate or 3% in Islamabad stock exchange.
KEYWORDS
Index, Markowitz portfolio theory, Pakistan, Portfolio, Return, Real Estate, Risk.
INTRODUCTION
inancial system is the collection of markets, institutions, laws, regulations and techniques through which bonds, stocks and other securities are traded, interest rates are determined and financial services are produced and delivered throughout the world. The primary function of a financial system is to mobilize surplus funds from savers to borrowers so that the borrower can buy goods and services and make investments in new equipment and facilities so that economy can grow and increase the standards of living enjoyed by its citizens1. The institutions in the system that mobilize the funds are of two types. One of them is known as Financial Broker like stock exchange broker. These brokers in the form of brokerage firms direct the funds from savers to borrowers and for that purpose charge a brokerage fee. The other type is Financial Intermediary. These financial intermediaries in the form of companies or firms take funds from the savers and give them their own security document, like share or deposit certificate, entitling the savers a right to their earnings. These funds are then placed in different assets to get earnings (investment). These assets might be shares of other public limited companies, bonds of other companies, real estate etc. the examples of financial intermediaries include predominantly, banks and mutual funds. Amongst all the financial institutions discussed above only Mutual Funds go for diversifying their investment portfolios (basket of assets in which funds are being invested) with different assets like shares of other companies, interest earning assets (t-bills, TFCs, CFS), spread transactions2, real estate etc. The other counterparts specialize in one sort of assets. Banks specialize in interest earning assets like t-bills, bonds, TFCs, CFS3, etc. Financial brokers on the other hand tend to specialize in brokerage business and earn a brokerage fee. In Pakistan there are 67 Mutual Funds. Depending upon their kind they invest in different sort of assets. Income funds invest in interest based assets like CFS, TDRs, TFCs, money market placements etc. examples of such funds in Pakistan include Atlas Income Fund, KASB Liquid Fund, IGI Income Fund, Pakistan Income Fund etc. Stock Market Mutual Funds invest in assets related to stock market like Shares and CFS. Examples are Atlas Stock Market Fund, Pakistan Stock Market Fund etc. some Mutual Funds are hybrid funds. They invest in both stock market and interest earning assets. Example of such a fund is Arif Habib Asset Management Companys Pakistan Capital Market Fund. Some mutual funds invest only in Shariah compliant securities like Modarba certificate, Musharka certificates. Their examples include Atlas Islamic Fund and Pakistan international element Islamic fund. Still there is another type of Mutual Funds that invest exclusively in Real Estate. These are known as Real Estate Investment Trust (REIT). At the moment in Pakistan there is no REIT. If we note the compositions of the portfolios above we find that these portfolios are vulnerable to interest rate risk (change in the Net Asset Value of a Portfolio due to change in the interest rate). If the interest rate in the economy go up then the prices of Bonds, TFCs, TDRs, T-bills, and Shares go down. The reason is that the bank deposits now give more interest than these interest based assets and shares and holders of these assets are ready to sell these assets so that the proceeds can be deposited in banks resulting an increased supply of these assets in the market which causes a downward pressure on the price of the assets. Efficient markets providing liquidity, like stock exchange, facilitates this process and there is nothing stopping this price decline. So an Income Fund or a Stock Market Fund or a Hybrid Fund is bound to book a capital loss i-e a decrease in the NAV (Net Asset Value). One question arises over here that why do we want to hedge the NAV of a portfolio. The answer is that a mutual funds NAV determines the unit price of the fund4. Decrease in the NAV decreases the unit price as well. This means decrease in the shareholders wealth which is against the primary purpose of financial management i-e to increase the share holders wealth. If we add such an asset to these portfolios which cannot behave as quickly as the other assets to such stimuli as interest or other then we will be able to put a drag on the NAV of the portfolio. Putting it in another way, we are interested in adding an asset to the portfolio whose price change has a negative or very little correlation with the price changes of the other assets in the portfolio.
Money and Capital Markets by Peter Rose, 8th Edition. Spread Transaction is earning a spread in the price of shares resulting from the timing difference between ready and future settlement, buying in the ready settlement market and selling in the future settlement market. 3 CFS stands for continuous financing system. This financing system is modernized version of Badla financing system with provisions to curtail stock price manipulations. By the virtue of this system speculators finance their speculations in stock market to earn capital gain and the financier (bank or Stock Broker) earns the interest on the loaned amount. 4 Unit/share price of Mutual Fund = NAV/ total number of shares or units of the fund outstanding.
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This is what Markowitz said in 1950 in his Nobel Prize winning Portfolio Theory. According to Markowitz Portfolio Theory the risk (here, deviation of NAV of portfolio from expected average NAV) of a portfolio depends upon the covariance of the returns (here, capital gain/increase in the NAV of portfolio) of the assets in the portfolio. If correlation between he capital returns of the assets in the portfolio is positive then there is high degree of risk because at any time the capital returns from both of the asset can be positive or negative resulting in high deviations of NAV from the expected average NAV. If correlation between he capital returns of the assets in the portfolio is negative then capital gain by one asset is offset by capital loss by the other asset and the there will be less deviation from the expected average NAV of portfolio which means less risk. So if the covariance terms are likely to be negative then it may be possible to get rid of the risk almost wholly by resorting to diversification. This paper attempts to see the benefits of diversification (risk reduction phenomenon) due to correlation effect if private real estate is added to a portfolio of stock. The reason for adding a private real estate5 to a portfolio of stock is that at the moment there are no efficient markets for private real estate making private real estate an illiquid asset. So private real estate cannot react as quickly to interest rate changes or other stimuli as the other assets like Shares can. So adding a real estate to the portfolio of shares would put a drag on the NAV of the portfolio. Public real estate on the other hand acts like stock because being traded at the stock exchange gives it a lot of liquidity. Different studies have been carried out in other countries (other than Pakistan) to find the correlation of real estate market with stock market and to find out the optimal allocation of real estate in a portfolio. Paladino, Michael, Mayo, Herbert (1995)1 found the correlation between the returns of stock and the returns of private real estate market, and the returns of stock market and public real estate market. For this purpose the benchmark of stock market, private real estate market and public real estate market performance was consider to be S&P-500 index, NCREIF index, NAREIT (National Association of Real Estate Investment Trust) index respectively. They found a very low correlation between Private real estate and stock market returns i-e 0.052 and very high correlation between public real estate and stock market return i-e 0.72. Based on theses results and in the light of Markowitz Portfolio theory they concluded that because of low correlation with stock market Private real estate gives more benefits of diversification than Public real estate. Later on a study by Sanders (1998)ii aimed at finding the allocation of private real estate in a mixed asset portfolio in the absence of public real estate revealed that private real estate enters the mixed asset portfolio of stock and bonds at all risk levels with the allocation between 10% and 40%. An extensive study by Muller, Andrew, Muller and Glenn (2003)2 attempted to analyze the inclusion of both Public and Private Real Estate in a mixed asset portfolio using Mean/Variance Markowitz Efficient Frontier Methodology. Their findings indicate that Public and Private Real Estate returns have low correlation between each other and the inclusion of both in a mixed asset portfolio of stock and bond produces more efficient frontier than inclusion of just one or the other or neither. After adjusting for the appraisal-bias in the NCREIF index they suggested 100% allocation to Private Real Estate at the lowest risk level and a portfolio composition of 96% Public Real estate and 4% stock (1.5% S&P-500 and 2.5% Russell-2000) at the mid point in the mean/variance curve. In another study Georgiev, Gupta, Kunkel (2003)3 explored the benefits of Private and Public real estate investments in a mixed asset portfolio of stock and bonds and other asset classes such as hedge funds and commodities. Their analysis included the correlation analysis of assets. The correlation of Private Real Estate (represented by NCREIF) with stock (represented by S&P-500) was found to be -0.02. Adair, McGreal, Webb (2006)4 used data from 1975 through 2003 to construct a mean/variance optimal portfolio for U.K. the portfolio so constructed was a mixed asset portfolio consisting mainly of three assets i-e Real Estate (including both Private and Public), Common Stock, and Gilt (Government Bonds). Different alternative portfolios were suggested based on both current and capital gains separately. Their findings in context of capital gains were that the allocation of funds to the real estate should be 65.5%, 47% and 0% to portfolios of low, medium and high risk profile respectively. As far as Pakistan is concerned, till now there have been no attempts by the researchers to find out the correlation between real estate returns and stock market returns.
OBJECTIVES OF THE RESEARCH

The first objective of the research is to find out the correlation between the returns (here, only capital returns considered) of stock market and real estate market. Lesser the correlation more the benefits of diversification with such assets. 2. The optimum weightage of real estate and stock in a portfolio that would result in minimum variance. 3. Compare the performance of the best optimal portfolio with the contemporary stock portfolios using different performance measures like Standard Deviation, Beta, and Sharp ratio. The study is planned as follows. The second section presents the model, data and estimation technique. The third section analyses results. The fourth section provides the conclusion. 1.
FRAME WORK OF ANALYSIS, DATA AND ESTIMATION

THE MODEL (MARKOWITZ PORTFOLIO THEORY) The research is based on Markowitz Portfolio theory. This Portfolio theory, originally proposed by Harry Markowitz in 1950s, was also the first former attempt to quantify the risk of a portfolio and develop a methodology for determining the optimal portfolio. Prior to the development of portfolio theory, investors dealt with the concepts of return and risk somewhat usually, intuitively smart investors knew the benefits of diversification which is reflected in the traditional adage do not put all your eggs in one basket. Harry Markowitz was the first person to show quantitatively why and how diversification reduces risk. In recognition of his seminal contributions in this field he was awarded the Nobel Prize in Economics in 1952. He proposed the following formulas for finding the return and risk of portfolio. PORTFOLIO EXPECTED RETURN The expected return on a portfolio is simply the weighted average of the expected returns on the individual securities in the portfolio.
[1]
Where
= expected returns on the portfolio = weight of the security i in the portfolio
= expected return on security i n = number of securities in the portfolio PORTFOLIO RISK Markowitz gave the following equation to measure the risk of portfolio; [2]
Private real estate is the property like residential and commercial areas that are not traded on stock exchange as compared to publicly traded real estate which is traded on the stock exchange in the form of shares of REIT.

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Where
= variance of portfolio return = square of weight of the two securities in the portfolio = variance of returns of the two securities = covariance of returns of the two securities
= coefficient of correlation between the returns of two securities Harry Markowitz was the person to quantify the risk of a portfolio and develop a methodology for determining the optimal portfolio. The Efficient Frontier represents all the dominant portfolios in risk/return space. The efficient frontier was first defined by Harry Markowitz in his groundbreaking (1952) paper that launched portfolio theory. That theory considers a universe of risky investments and explores what might be an optimal portfolio based upon those possible investments. Consider an interval of time. It starts today. It can be any length, but a one-year interval is typically assumed. Today's values for all the risky investments in the universe are known. Their accumulated values (reflecting price changes, coupon payments, dividends, stock splits, etc.) at the end of the horizon are random. As random quantities, we may assign those expected returns and volatilities. We may also assign a correlation to each pair of returns. We can use these inputs to calculate the expected return and volatility of any portfolio that can be constructed using the instruments that comprise the universe. The notion of "optimal" portfolio can be defined in one of two ways: 1. For any level of volatility, consider all the portfolios which have that volatility. From among them all, select the one which has the highest expected return. 2. For any expected return, consider all the portfolios which have that expected return. From among them all, select the one which has the lowest volatility. Each definition produces a set of optimal portfolios. Definition (1) produces an optimal portfolio for each possible level of risk. Definition (2) produces an optimal portfolio for each expected return. Actually, the two definitions are equivalent. The set of optimal portfolios obtained using one definition is exactly the same set which is obtained from the other. That set of optimal portfolios is called the efficient frontier. Efficient Frontier
The green region corresponds to the achievable risk-return space. For every point in that region, there will be at least one portfolio that can be constructed and has the risk and return corresponding to that point. The efficient frontier is the gold curve that runs along the top of the achievable region. Portfolios on the efficient frontier are optimal in both the sense that they offer maximal expected return for some given level of risk and minimal risk for some given level of expected return. STATISTICAL TEST FOR CORRELATION A statistical test to conclude, if the correlation between the returns of real estate and stock market is significant or not, is two tailed t-test. Where t is a normal random variable and is given by
[3] Where N = size of sample and in our case, 14 for KSE and 11 for ISE r = coefficient of correlation N-2 = degree of freedom and in our case 12 for KSE and 9 for ISE Here for this statistical test the level of significance is assumed to be 0.10 i-e 10%. The critical values of t at 13 and 10 degree of freedom and 0.10 level of significance are 1.782 and 1.833 respectively. DATA The basis of our calculation is an index showing change in the prices of assets. KSE-100 index and ISE-10 index has been taken as a benchmark to calculate the stock market returns. The historical index values of KSE-100 index and ISE-10 index are being taken from the respective exchanges. At the moment in Pakistan there is no real estate index as there are in USA like NPI (NCREIF Property Index that represents a value-weighted aggregate of private U.S real estate properties) and NAREIT index (the index for publicly traded real estate investment trusts in USA). So we had to calculate the index ourselves. Data about the property prices in order to compute real estate index has been gathered from different property dealers who have been working since 1990 in their respective areas. The property dealers were asked to fill a questionnaire with price of a certain area, with in a certain region, for different years. Based on theses prices for different years (since 1992-2007) for different areas that lie in different regions, a price weighted index of real estate has been developed. Nine real estate properties are used to calculate the index therefore we name it RE-9 index. All of these nine real estate properties are in Rawalpindi and in Islamabad. ESTIMATION TECHNIQUE The first objective of the study is to calculate the coefficient of correlation (r) between real estate and stock market returns so calculation of returns of real estate and stock is a prerequisite to the accomplishment of the objective. To calculate the returns, the index of real estate is to be calculated first. So a price

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weighted real estate index is made which is an unprecedented effort in Pakistan. Based on the index, percentage returns (percentage capital gain) of real estate are calculated. These percentage returns are then correlated with stock market returns to find r. Stock market returns are also percentage capital gains based on KSE-100 index and ISE-10 index. To find r between real estate and KSE returns the tenure is 14 years from 1993 to 2006 and for r between real estate and ISE return the tenure is 11 years from 1997 to 2007. In pursuit of the second objective the risk and return, as per the formulae proposed by the Markowitz, of the Real Estate-Stock portfolio are calculated for different percentages of the two assets in portfolio. A portfolio weightage that gives maximum return for minimum risk is considered to be optimal portfolio weightage.
RESULTS AND FINDINGS

As discussed in the introduction the research study has three objectives therefore the results and discussion section also has three parts. First one deals with the finding pertaining to the correlation between the stock market and the real estate market. The second one describes the optimal portfolio allocation between real estate and stock that would maximize return for a given level of risk. The third one compares the performance of this optimal portfolio with the contemporary stock portfolios using different measures. CORRELATION ANALYSIS The exhibit-1 shows the Real Estate index calculated as per the procedure explained in the Methodology section. Exhibit-2 shows the three indices that is KSE100 index, ISE-10 index and real estate index plotted on the same graph. Based on theses indices and the procedure explained in methodology the correlation between returns of Karachi Stock Exchange and Real Estate market works out to be 0.58 (t=2.498, statistically significant) and between the returns of Islamabad Stock Exchange and Real Estate market works out to be -0.018 (t= - 0.054, statistically insignificant). The correlation between ISE returns and Real Estate market return is quite in line with the findings of Paladino, Michael, Mayo, Herbert (1995) and Georgiev, Gupta, Kunkel (2003) but the correlation between the returns of KSE and Real Estate market is too high as compared to the previous researches carried out in other parts of world. Such high correlation between a liquid Stock market and an illiquid Real Estate market seems illogical and unlikely. What could be the reason? The answer to this question can be sought in light of 9/11 incident. Exhibit-3 shows the returns from KSE and Real Estate market. If we see the era before 2001, we observe little fluctuation of Real Estate capitalization and quite a volatile capitalization of stock market. Also, if we see numerically, the correlation (r) between the returns in this period (1992-2000) is only -0.053 which is in line with findings of Paladino, Michael, Mayo, Herbert (1995) i-e r = 0.052 (not adjusted for appraisal bias) and Georgiev, Gupta, Kunkel (2003) i-e r = - 0.04 (after adjusting for appraisal bias) and r = - 0.02 (before adjusting for appraisal bias). After 911 many wealthy investors and businessmen of Pakistani origin living in the west perceived subsequent events and policies as a possible threat to their financial futures and feared the daunting prospect of having their assets frozen. Therefore, there was a large influx of capital back to Pakistan6. Pakistan witnessed an upsurge in home remittances from $983 million in 2000 to historic $4.2 billion in fiscal year 2003-20037. Also president Musharraf declared his support against terrorism after 9/11 resulting in $2 billion grant during 2001-2003 and FDI of $82 million during July, 2004 and February, 2005. The post 9/11 analysis of exhibit2 and exhibit-3 shows that all these funds found their way into Stock market (and KSE being the largest one8) and Real Estate market as both gained in capitalization after year 2001. So a low correlation of returns (-0.053) in before 9/11 and high correlation of returns in after 9/11 period resulted in overall good correlation of 0.58. OPTIMAL PORTFOLIO ANALYSIS To find the optimal portfolio we must draw the Markowitz Efficient Frontier. It is drawn by taking Risk (Variance of return) of portfolio at x-axis and return of portfolio at y-axis. Each point on the graph represents a different percentage allocation to the real estate and stock. Exhibit-5 shows the possible portfolio options for ISE stock and real estate. The head of the arrow points at the Minimum Variance Portfolio or more accurately the minimum standard deviation portfolio because the x-axis represents the standard deviation. At any point below MVP the investor would be assuming more risk for less return but at any point above MVP the investor would be assuming more risk for more return therefore the points above MVP represent the optimal portfolio options or Markowitz Portfolio Frontier. So no investor would like to invest in any portfolio below MVP. Exhibit-6 shows the Markowitz Efficient Frontier for ISE stock and real estate. The following tables summarize the portfolio allocation between stock and real estate for different risk levels. The results are not comparable with the previous researches carried out in other countries because in them private real estate was considered in a mixed asset portfolio consisting of assets other than stock as well. Therefore the allocation of real estate in their portfolios was dependent upon the correlation of real estate with assets in portfolio other than stock as well. TABLE - 1: PORTFOLIO ALLOCATION BETWEEN KSE AND REAL ESTATE FOR DIFFERENT RISK LEVELS %AGE OF REAL %AGE OF KSE LISTED RETURN OF RISK OF ESTAE STOCK PORTFOLIO PORTFOLIO 0% 41% 100% 100% 100% 59% 0% 0% 24.9495% 22.8634% 16.1432 16.1432 42.4180% 29.3929% 19.8614% 19.8614%
RISK PROFILE
HIGH MEDIUM (AVERAGE OF HIGH AND LOW RISK) LOW (MVP) BEST PORTFOLIO ALLOCATION (Least coefficient of variation)
COEFFICIENT OF VARIATION (i-e RISK/RETURN) 1.7002 1.2856 0.8128 0.8128
RISK PROFILE
TABLE - 2: PORTFOLIO ALLOCATION BETWEEN ISE AND REAL ESTATE FOR DIFFERENT RISK LEVELS %AGE OF REAL %AGE OF ISE LISTED RETURN OF RISK OF ESTAE STOCK PORTFOLIO PORTFOLIO 100% 95% 81% 97% 0% 5% 19% 3% 20.0035% 19.0948% 16.5504% 19.4583% 18.9111% 18.0387% 16.9418% 18.3608%
HIGH MEDIUM (AVERAGE OF HIGH AND LOW RISK) LOW (MVP) BEST PORTFOLIO ALLOCATION (Least coefficient of variation)
COEFFICIENT OF VARIATION (i-e RISK/RETURN) 0.9454 0.9447 1.0236 0.9436
COMPARISON OF THE PORTFOLIO WITH CONTEMPORARY STOCK PORTFOLIOS This part of the section compares the performance of stock-real estate portfolio with contemporary stock portfolios that have not been diversified by using real estate. For this purpose we have selected three parameters: Standard deviation of the best (minimum coefficient of variation) portfolio Beta of the best (minimum coefficient of variation) portfolio
6
Clark, Masood, Tunaru, Political Events Affecting the Pakistan Stock Exchange: An Analysis of the Past and Forecasting the Future Cass Business School, City University, London 7 www.strategicforesight.com/sfgnews_133.htm 8 As on march 2007, 655 companies were listed on KSE as compared to 240 on ISE (Source: Economic Survey 2006-2007)

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Sharp ratio of the best (minimum coefficient of variation) portfolio Beta of a portfolio is actually the correlation of the portfolio with the stock market and it is a measure of systematic risk. Systematic risk is the variation of expected returns due to factors that affect each sector of the stock and not one or two. The stock market beta is 1 because correlation of stock market with itself is 1. If the portfolio beta is greater than 1 then it means that the factors bring more changes in the expected return of portfolio as compared to that of stock market and vice versa. In Pakistan Karachi Stock Exchange is considered as a benchmark of performance of stock or equity market. Mathematically it can be written as: Beta = (STD of portfolio/STD of stock market) * (r) (between portfolio and stock market return) Sharp ratio of a portfolio is excess return (over risk free return) to standard deviation of the portfolio. Mathematically it can be written as: Sharp ratio = (AVG return on portfolio AVG return on a risk free investment)/STD of portfolio To calculate the sharp ratio, PACRA9 and all mutual funds use 3-month Treasury Bills rate as risk free investment and the ratio is calculated by using the average value for the last three years. For the purpose of comparison we follow the same convention and find the sharp ratio of our portfolios based the average values of last three years. The table-3 on the other page compares the performance measures of different stock market funds with our least coefficient of variation stock-real estate portfolio. So from the table on the next page we see that our portfolio outperforms all other mutual funds. Its very low beta value i-e 0.22 makes it less volatile than the benchmark market, Karachi stock Exchange. It is evident that the rest of the mutual funds have high degree of correlation with KSE as the minimum Beta value among them is 0.62. Also the sharp ratio suggests that KSE-Real estate portfolio gives more excess return (over risk free return) than any other fund in the comparison. ISE-Real Estate fund gives a low sharp ratio because this calculation involves the return of year 2007 which is a year of slump for the property market. So due to more deviation of returns the sharp ratio is low for this portfolio. TABLE - 3: COMPARISON OF MINIMUM COEFFICIENT OF COVARIANCE PORTFOLIOS WITH CONTEMPORARY STOCK INVESTMENT FUNDS
PARAMETERS BENCH MARK KSE-100 KSE-REAL ESTATE PORTFOLIO (0%KSE100%RE) 16.14 0.22 3.32 (Yr 2004-2006) ISE-REAL ESTATE PORTFOLIO (3%ISE-97%RE) 18.36 DATA CONSTRAINT 0.34 (Yr 2005-2007) PAKISTAN STOCK MARKET FUND (July 2007 fund manager report) 18.72 0.69 1.11 (Yr 2005-2007) PAKISTAN INTERNATIONAL ELEMENT ISLAMIC FUND (July 2007 fund manager report) 17.24 0.62 0.35 (Yr 2005-2007) PAKISTAN CAPITAL MARKET FUND (July 2007 fund manager report) 17.87 0.63 1.16 (Yr 2005-2007) KASB STOCK MARKET FUND (August 2007 fund manager report) 1.0 0.87 0.015 (Yr 2005-2007)
STANDARD DEVIATION (%) BETA (correlation with KSE) SHARP RATIO
42.42 1 0.60 (Yr 2005-2007)
EXHIBIT-1
REAL EATATE INDEX (RE-9 INDEX) 12000 10000

INDEX POINTS
11408 11214 10048 8266 6141 3215 3483 6870
8000 6000 4000 2000 0

2759 1983 2401 1372 1550 1691 1000 1164
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
YEARS
The graph above shows the change in the index of real estate (RE-9 index). From 1992-2001 there is a persistent and almost constant rise in the prices of the real estate properties. In 2002 the index went up like a rocket due to 9/11 incident as a lot of Pakistanis in America repatriated their money from America to Pakistan and invested them in real estate. Resultantly the prices of the real estate went up. EXHIBIT-2
COM PARISON OF THREE M ARKET INDICES
14000 12000
I DX O T NE P I S N
R E- 9 IN D EX KSE-100 IN D EX ISE-10 IN D EX
10000 8000 6000 4000 2000 0
1 9 9 5
1 9 9 2
2 0 0 0
2 0 0 2
2 0 0 5
1 9 9 8
2 0 0 3
2 0 0 6
1 9 9 3
1 9 9 4
1 9 9 6
1 9 9 7
1 9 9 9
2 0 0 1
2 0 0 4
YEARS
The above graph shows KSE-100 index, ISE-10 index and RE-9 index (made by the writers of this paper).
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PACRA stands for (Pakistan Credit Rating Agency Limited). PACRA is to evaluate the capacity and willingness of a corporate entity to honor its debt obligations. PACRA ratings reflect an independent, professional and impartial assessment of the credit risk associated with a particular debt instrument or a corporate entity (such as a Bank, Mutual Fund). By providing a measurement of risk, PACRA's ratings facilitate investors in making prudent investment decisions after determining the acceptable rate of return at the given risk level.

2 0 0 7
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EXHIBIT-3
COMPARISON OF RETURNS OF KSE AND REAL ESTATE
140 120 100 80 RETURNS(%) 60 40 20 0 -20
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 REAL ESTATE RETURNS KSE RETURNS
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-40 I-----Correlation -60
(-0.053)-------I
YEARS
The above graph shows the up and down movement of returns of real estate market and Karachi Stock Exchange. EXHIBIT-4
COMPARISON OF R ETURN S OF ISE AND R EAL ESTATE
100
RE L E A STA TE RE TURNS
80 60 RT RS ) EUN( % 40 20 0 -20 -40 -60 -80 -100 1997
ISE RETURNS
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
YEARS
The above graph shows the up and down movement of returns of real estate market and Islamabad Stock. EXHIBIT-5
POSSIBLE PORTFOLIO OPTIONS AT DIFFERENT LEVELS OF RISK AND RETURN
25
20
R T R (% EU N )
15
10
Minimum Variance Portfolio (MVP)

0 5 10 15 20 25 30 35 40 45
RISK (% )
Possible portfolio options for different levels of risk and return. EXHIBIT-6
EFFIC IE N T P OR TFOL IOS
21
R UN F H PR OO ) E R OTE O FL ( T T I %
20
19
18
17
16
15 16.5
17.0
17.5
18.0
18.5
19.0
19.5
R ISK OF TH E POR T FOLIO(% )
Markowitz Efficient Frontier for ISE and real estate.

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EXHIBIT-7
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POSSIBLE PORTFOLIO OPTIONS AT DIFFERENT LEVELS OF RISK AND RETURN
25
RETURN(%)
23
21 19
17
Minimum Variance Portfolio (MVP)

15 20 25 30 35 40 45
15
RISK(%)
Markowitz Efficient Frontier for KSE and real estate as the correlation between the two is high i-e 0.58 therefore the Markowitz Efficient Frontier and graph of possible portfolio option is the same.
CONCLUSION
The research very convincingly meets its objectives. It shows that there exists no correlation between stock market and real estate market. The high positive correlation between KSE and real estate (r=0.58) is due to high influx of home remittances after 9/11. If we exclude the period after 9/11, the correlation works out to be almost zero (r= -0.053). In the light of these finding we are safe to say that adding real estate to a stock portfolio reduces the volatility of the overall portfolio. In other words Real estate in the portfolio puts a drag on the Net Asset Value of the whole portfolio due to its low correlation with the other asset in the portfolio. Coefficient of variation analysis of the Markowitz Efficient Frontier suggests that 100% real estate and 0%KSE portfolio or 97% real estate and 3%ISE portfolio provides the best return against the risk assumed. The former also outshines many Stock Mutual Funds (not being diversified by real estate) as indicated by its low beta value i-e 0.22 and high sharp ratio i-e 3.32.
REFERENCES
1. Paladino, Michael, Mayo, Herbert, Investments in REITS do not Help Diversify Stock Portfolio, Real Estate Review, 1995, Vol 25, issue 2. 2. Muller, Andrew, Muller and Glenn, Public and Private Real Estate in a Mixed Asset Portfolio, The Journal of Real Estate Portfolio Management, (2003). 3. Georgiev, Gupta, Kunkel, Benefits of Real Estate Investment, the Journal of Portfolio Management, 2003, Special Issue, 28-33. 4. Adair, McGreal, Webb, Diversification Effect of Direct versus Indirect Real Estate Investments in the U.K., The Journal of Real Estate Portfolio Management, 2006, vol-12, 85-90.

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THE EFFECT OF FDI INFLOWS ON NIGERIAS BALANCE OF PAYMENT FOR THE PERIOD 1980-2009
OMANKHANLEN ALEX EHIMARE LECTURER DEPARTMENT OF BANKING & FINANCE COVENANT UNIVERSITY OGUN STATE, NIGERIA
ABSTRACT
This research study deals with the effect of Foreign Direct Investment inflows have any effect on Nigerians Balance of payment (BOP) over the period 19802009.It helped examined empirically if Foreign Direct Investment inflows have any effect on the nations BOP. Econometric model was developed to investigate the relationships between the BOP and foreign direct investment. Based on the data analysis it was discovered that foreign direct investments have positive and significant impact on current account balance in the Balance of payment. While Gross fixed capital formation is inelastic to Balance on current account. Therefore it is recommended that for Nigeria to attract the desired level of FDI, and have improved Balance of payment position, it must introduce sound economic policies and make the country investor friendly. Also its economy must be open to foreign trade, there must be political stability, sound economic management and well developed infrastructure.
KEYWORDS
Foreign direct investment, gross fixed capital formation, government expenditure, Nigeria, BOP.
INTRODUCTION
DI is an investment made to acquire a lasting management interest (normally 10% of voting stock) in a business enterprise operating in a country other than that of the investor defined according to residency not nationality (World Bank, 1996) as cited by Adebgite and Ayadi (2010). Given the Nigerian economy resource base, the countrys foreign investment policy should move towards attracting and encouraging more inflow of foreign capital. The need for foreign direct investment (FDI) is born out of the under developed nature of the countrys economy that essentially hindered the pace of her economic development. Generally, policy strategies of the Nigerian government towards foreign investments are shaped by two principal objectives of the desire for economic independence and the demand for economic development. An analysis of foreign flow into the country so far have revealed that only a limited number of multinationals or their subsidiaries have made Foreign Direct Investment in the country. Added to this problem of insufficient inflow of FDI is the inability to retain the Foreign Direct Investment which has already come into the country. Also what effect have foreign direct investment have on such variables as- Gross Domestic Product (GDP) and Balance of Payment(BOP).Moreover, Carkovic and Levine (2002) in their study concluded that exogenous component of FDI does not exert a robust positive influence on economic growth. The hypothesis to be tested in this study is stated below: HO. FDI does not contribute to Nigerias Balance of Payment (BOP). H1 . FDI contribute to Nigerias Balance of Payment (BOP). This paper is divided into five parts. Part one above is the introduction. Part two reviews the relevant literature, part three discusses the methodology employed in this study, and part four is data presentation and analysis while part five discusses the findings and recommendation. This study will evaluate the effect of FDI inflows on Nigerias Balance of payment. The period 1980-2009 will be investigated in the study. Only FDI, Government Expenditure and Gross Capital formation will be used as the explanatory variables. While the balance on Balance of payment current account will be used as the dependent variable.
LITERATURE REVIEW
The balance of payments is obviously affected by FDI in a variety of ways. Letto-Gillies (1992) assert that there are the direct effects of capital outflows and inflows destined to finance the outward and inward FDI. However, outward FDI does not necessarily involve outflow of funds from the home country, since there are other ways of funding direct investment, such as borrowing on international markets and using profits from such subsidiaries. Other direct effects are connected with the outflow and inflow of profits and dividend related respectively to past inward and outward FDI. For countries with long traditions of FDI these income one extreme of the spectrum net inflows of income from capital invested abroad has in many years, outstrips the inflows of new inward FDI. Magdoff (1992) illustrates this with reference to United States investment during the period 1950-65. The outward investment in Latin America was US $3.8b while the related income flowing from Latin America to the USA in the same period was $11.3billion. This net inflow of funds was achieved in spite of the growing amount of foreign asset being acquired. However, the balance of payments effects can have profound effects on the real sector of the economy that is not always beneficial. Rowthorn and Wells (1987) as cited by Alderson (1997) refer to such effects in relation to net income from foreign investment as the wealth trap. The manipulation of transfer prices also has effects on the balance of payment accounts. Indeed, very often the manipulation of transfer prices is motivated by the desire to take advantage of actual or expected changes in exchange rates or by the wish to transfer profits where legal impediments exist to such transfers (Letto-Gillies, 1992). Foreign direct investment improves the balance of payments and current account substantially if it is directed towards the production for exports or import replacement (Hess and Ross, 1991). The government budget balance can also improve through high tax revenue from corporate profits, salaries of employees, and daily tax on finished goods and services. According to Adegbite and Ayadi (2010) FDI helps fill the domestic revenue-generation gap in a developing economy, given that most developing countries governments do not seem to be able to generate sufficient revenue to meet their expenditure needs. Other benefits are in the form of externalities and the adoption of foreign technology. Externalities here can be in the form of licencing, imitation, employee training and the introduction of new processes by the foreign firms (Alfaro, Chanda, Kalemli- Ozean and Sayek 2006). Foreign direct investment consists of external resources including technology, managerial and marketing expertise and capital. All these generate a considerable impact on host nations productive capabilities. The success of government policies of stimulating the productive base of the economy depend largely on her ability to control adequate amount of FDI comprising of managerial, capital and technological resources to boast the existing production capacity. Although the Nigerian government has being trying to provide conducive investment climate for foreign investment, the inflow of foreign investments into the country have not been encouraging. The economic impact of FDI on the level of economic activity has been widely investigated in recent years across different countries. See (Jenkins and Thomas 2002; Adelegan 2000, Akinlo 2006, Johnson 2006 e.t.c.).Although FDI has a positive impact on economic growth but the magnitude of the effect depends on the availability of complementary resources, especially on the domestic stock of human capital. The inflow of FDI plays an important role in determining the surplus/deficit in the capital and current account of the BOP statement. The initial impact of an inflow of FDI on any nations BOP is positive but the medium term effect could become either positive or negative as the investors increase their imports of intermediate goods and services, and begin to repatriate their profit. According to Hossain (2008) Empirical research in several countries suggests that the initial inflow of FDI tends to increase the host country's imports. One reason for this is that primarily FDI companies have high propensities to import capital and intermediate goods and services that are not readily available in the

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host country. However, if FDI is concentrated in import substituting industries, then it is expected to affect imports negatively because the goods that were imported earlier would now be produced in the host country by foreign investors. In addition Hossain (2008) show that FDI contributes positively to increasing imports and exports and can either improve or deteriorate the countrys trade balance depending on the relative magnitude of the two forces. However, with a. positive effect of FDI inflows on the financial account, it is more likely that the first round effect of FDI is positive on the Balance of payment (BOP) of Bangladesh which he studied.
METHODOLOGY
MODEL SPECIFICATION This study is based on the assumption that the inflow of FDI affects Nigerias Balance of Payment (BOP). In other-words, BOP is dependent on FDI, hence the model: BCA = f (FDI) (1) Where: BCA = Current Account Balance FDI = inflow of Foreign Direct Investment Considering the fact that the BOP of an economy is not determined by FDI alone, the inclusion of two more growth determining variables is made so as to get a more realistic model: Hence, equation (1) is extended thus: BCA = f (FDI, GOV, GCF) (2) Where: GOV = Government expenditure GCF = Gross fixed capital formation. Equation (2) show that BCA is dependent on FDI, GOV and GCF. The statistical form of the model is thus: BCA = o + I FDI - 2 GOV + 3 GCF + e (3) Where: 0 = the intercept for equations (1) I = the parameter estimate of FDI. = the parameter estimate of GOV. 2 3 = the parameter estimate of GCF. e = the random variable or error term.
TECHNIQUES TO ADOPT IN THE ANALYSIS OF DATA

Scientific or empirical research can be carried out by four possible alternative methods, namely, the comparative method, the econometric method, the experimental method, and the case history method. The nature of the problem under investigation and the objectives of the research will determine which of these alternatives will be adopted. They may be adopted singly or in combination. The econometric method is the approach employed for the research. There is no doubt that the method will facilitate the model specification, parameter estimation and appropriate econometric tests.
SOURCES OF DATA FOR THE STUDY

Annual time-series data on the variables under study covering thirty year period 1980-2009 are used in this study for estimation of functions. Foreign Direct Investment inflow (FDI), Government Expenditure (GE) and Gross fixed Capital Formation (GCF) are the relevant explanatory variables. Equally, the Balance on Current Account is the dependent variable. The Balance on Current Account was used to measure Balance of payment (BOP). Data were collected from various editions of the various issues of Central Bank of Nigeria Economic and Financial Review.
DATA ANALYSIS AND RESULT PRESENTATION

PRESENTATION OF RESULTS This part focuses on the analysis of, and interpretation of the results generated from the regression analyses. It helped in providing the set of data used a practical meaning, the result, serving as a yard-stick/benchmark for the measurements of the various impacts which the different variables have on BOP of the country. The regression analysis and test of hypothesis are conducted at 5% significance level. After running the relevant regressions, the following results were obtained and are presented below: ESTIMATED RESULTS MODEL BCA = o + I FDI - 2 GOV + 3 GCF + e BCA = -1.3500 + 7.0662FDI + -0.49248GOV. + 0.42403GFC S.E. = (1.1447) (21.5046) (0.35404) (0.29101) t = -1.179 4.696 -1.391 1.457 2 R = 0.919443 F-Statistic = 98.917 D.W. = 1.72 N.B: The regression result is presented in Appendix 1. Note: Numbers in parenthesis are t-values. SE is the Standard Error of the Estimates. FS is the ratio used in the statistical test of significance. DW is the Durbin-Watson statistic used in the test of auto correlation.
INTERPRETATION OF THE MODEL

From the regressions result of model, the R-squared (R) value of 0.919443 shows that at 91.94% the explanatory variables explain changes in the dependent variable. This means that at 91.94% the independent variables explain changes on Current Account Balance (BCA). This simply means that the explanatory variables explain the behaviour of the dependent variable at 91.94%. The calculated F-statistics of 98.917 which is greater than the value in the F-table (2.9751) implies that all the variables coefficients in the regression result are all statistically significant. The Durbin-Watson (DW) as shown in the regression analysis is 1.72 which shows that there is the presence of autocorrelation. The above model tested the effect of three different variables namely Foreign Direct Investment (FDI), Government Expenditure (GOV) and Gross fixed Capital Formation (GCF) on Current account Balance (BCA). In order to obtain the regression result, the OLS technique with the help of the PC Give software was used. The result obtained from the regression shows that there is positive and significant impact of Foreign Direct Investment (FDI) on Current Account Balance (BCA) with a coefficient of 7.0662. This coefficient is statistically significant as revealed by its corresponding standard error and t-values. Hence, FDI is elastic to BCA. This positivity in the coefficient of Foreign Direct Investment is in conformity to the economic a priori expectation of a positive impact of Foreign Direct Investment on Current Account Balance of the nation.

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Also, the regression result shows that the Government Expenditure has a negative impact on BCA with a coefficient of -0.49248. The standard error and t-values showed that this parameter is not statistically significant. Thus, the Government Expenditure is inelastic to Current Account Balance. This negativity of the coefficient of GOV conforms to the economic a priori expectation of a negative impact of Government Expenditure on BCA. Furthermore, the result obtained from the regression shows that Gross Fixed Capital Formation has a positive impact on BCA. This is indicated in its positive coefficient of 0.42403. However, this coefficient is revealed not to be statistically significant by the standard error and t-values. Thus, from this it implies that Gross fixed Capital Formation is inelastic to Balance on Current Account (BCA). The coefficient of Gross fixed Capital Formation being positive conforms to the economic a priori expectation of a positive impact of GCF on Balance of Payment vis--vis Balance on Current Account (BCA).
TEST OF HYPOTHESES
This section of study implies testing the significance of the numerical values of the parameter estimates of the OLS regression. It is needed to examine the relationship between the data collected and the stated hypothesis. Here, the t-statistics and values are required. HYPOTHESIS Recall: Ho: 1 = 0: There is no significant relationship between BCA and FDI H1: 1 0: There is significant relationship between BCA and FDI Decision: Accept H0 if t0.05 > tStatistics and Reject Ho and accept H1 if t0.05 < tStatistics Where t0.05 = 1.703, and tStatistics = 4.696 1.703 < 4.696 Therefore, we reject H0 implying that the inflow of Foreign Direct Investment into the Nigerian economy within the period of 1980 - 2009 was significant to Balance of Payment through Current Account Balance of the country.
DISCUSSION OF FINDINGS
The OLS regression analysis is carried out to determine the impact of FDI, Government expenditure and Gross fixed Capital Formation on Balance of Payment through Balance on Current Account (BCA), . Hence, BCA is regressed on FDI, GOV and GCF. Though the impact of FDI is of primary concern here, the other two economic variables were included to serve as control variables to check the overstating of the estimated coefficient of FDI. The results of the findings show that FDI has positive and significant impact on BOP through current account balance during the period of analysis (1980-2009). In addition Gross fixed capital formation is inelastic to Balance on current account.
CONCLUSION
In conclusion after the OLS regression analysis had been carried out and with the study about the effect of FDI on BOP, it is seen that the Governments direct involvement in the provision of goods and services by establishing and controlling corporations, for example, has contributed little to economic growth in Nigeria. This justifies the privatization policy of the various administrations in our government to allow for the possible takeover by investors (both foreign and domestic) of the government corporations. Foreign direct investment (FDI) has contributed significantly to Balance of Payment (BOP) through the nations current account balance. Thus it is clear that FDI can be used as an effective measure of correcting balance of payment disequilibrium in our economy.
RECOMMENDATIONS
The most significant factors that make Nigeria a good host for FDI are her abundance in natural resources and large population, indicating a large market. The outcome of this study shows that though FDI was not found to have significantly contributed to the nations economic growth, if well harnessed it can contribute to economic growth in Nigeria. To increase the inflow of FDI and its performance, the following recommendations from this study are enunciated: Policy measures should be put in place to encourage improved inflow of foreign direct investment to Nigeria. This is expected to result in Nigerias exports competitiveness, thereby leading to increased exports and investment, which will further increase the foreign exchange earnings, the Balance of payment position and improve the Gross domestic product (GDP) of the nation. The country should be more open to foreign trade. Balasubramanyam et al (1996) showed that most economies benefit best from FDI when they are open to foreign trade. Hence, the Nigerian government should reduce the bureaucratic bottlenecks in foreign trade especially the one constituted by the customs and port authorities. Every effort should be used to improve the level of education in the nation. Broensztein et al (1998) proved that there is a high positive relationship between FDI and the level of educational standard in the host economy. Based on this, the countrys education should be in favour of management, science and technology which would provide the economy with the required skills that FDI require. Competitiveness should be encouraged, and as a result, the existing and yet-to-exist export processing and free trade zones should be equipped with state-ofthe-art infrastructures and technologies. The infrastructures in the country need to be improved to reduce the cost of doing business in Nigeria. For example, electricity should be provided at an uninterrupted level to reduce the extra cost that investors incur in the procurement of power generating sets coupled with the health hazards associated with its use, especially the fumes it generates to the environment.
REFERENCES
Adegbite E.O and F.S. Ayadi (2010) The Role of FDI in Economic Development:A Study of Nigeria. World Journal of Entrepreneurship, Management and Sustainable Development.Vol.6 No 1/2 [Internet] Available from www.worldsustainable.org. P. 133-147 Adelegan, J.O. (2000). Foreign direct investment and economic growth in Nigeria: A seemingly unrelated model. African Review of Money, Finance and Banking,Pp 5-25 Alderson, Arthur S. (1997). "Globalization and Deindustrialization: Direct Investment and the Decline of Manufacturing Employment in 17 OECD Nations." Journal of World-Systems Research 3: 1 - 34. Alfaro, L., Chanda, A., Kalemli-Ozcan, S. & Sayek, S. (2006). How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages. NBER Working Paper no. 12522, National Bureau of Economic Research, Cambridge, MA.07-013 Akinlo, A.E. (2004). Foreign direct investment and growth in Nigeria: An empirical investigation.Journal of Policy Modeling, 26: 62739. Balasubramanyan, V., N. M.A. Salisu and D. Sapsford. (1996). Foreign Direct Investment and Growth in EP and IS Countries, Economic Journal, 106: 92105 Borensztein, E., J. De Gregoria and J. Lee. (1998). How does foreign investment affect economic growth? Journal of International Economics, 45(1): 11535 Carkovic, M. and R. Levine. (2002). Does foreign direct investment accelerate economic growth? University of Minnesota Working Paper. Minneapolis. Available at: www.worldbank.org/research/conferences/financial_globalization/fdi.pdf Hossain, M.A. (2008) Impact of Foreign Direct Investment on Bangladeshs Balance of Payments: Some Policy Implications. Available from thaibizbangladesh.net.Pp 1-9 Jenkins, C. and Thomas, L. (2002) Foreign direct investment in Southern Africa: determinants, characteristics and implications for economic growth and poverty alleviation, University of Oxford [internet.] Available from http://www.csae.ox.ac.uk/reports/pdf.

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Johnson, A. (2006), "The Effects of FDI Inflows on Host Country Economic Growth", CESIS Working Paper Series, Paper No. 58, Royal Institute of Technology, Sweden Letto-Gillies, G. (1992). International Production: Trends, Theories, Effects. Cambridge: Polity Press.P. 171-188 Magdoff, H. (1992). "Globalization - To What End?" Monthly Review 43: 1-18.
APPENDIX
REGRESSION RESULT ---- PcGive 8.00, copy for meuller ------- session started at 13:39:56 on 24th December 2010 ---Data loaded from: alexpr~1.wks EQ( 1) Modelling BCA by OLS The present sample is: 1 to 30 Variable Coefficient Std.Error Constant -1.3500e+005 1.1447e+005 FDI 7.0662 1.5046 GOV._EXP. -0.49248 0.35404 GFC 0.42403 0.29101 R2 = 0.919443 F(3, 26) = 98.917 [0.0000] s = 472972 DW = 1.72 RSS = 5.816258697e+012 for 4 variables and 30 observations
t-value -1.179 4.696 -1.391 1.457
t-prob 0.2489 0.0001 0.1760 0.1571
PartR2 0.0508 0.4590 0.0693 0.0755

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FINDING THE DETERMINANTS OF CAPITAL STRUCTURE: A CASE STUDY OF UK COMPANIES

MUKHIDDIN JUMAEV M B.A. STUDENT OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS UNIVERSITY UTARA MALAYSIA MALAYSIA JALAL HANAYSHA RESEARCH SCHOLAR OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS UNIVERSITY UTARA MALAYSIA MALAYSIA EMAD EDDIN ABAJI M.B.A. STUDENT OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS UNIVERSITY UTARA MALAYSIA MALAYSIA
ABSTRACT
This paper analyzes the significant of variables that determine capital structure. In addition, it emphasizes how independent variables influences leverage particularly long-term debt. A sample from 905 UK companies was chosen to examine an effect of book value of debt on book value of asset and 750 companies were used to determine the influence of book value of debt on market value of asset. It was found that Profitability, Growth opportunity, and Costs of financial distress have negative relationship with leverage. While firm size, tangibility, business risk, and market to book of asset ratio have positive correlations with capital structure. It was also found that companies which have high profitability and growth opportunity prefer to operate with internal financing activities, high cost of financial distress is constrain to finance from external. By the way, big size companies are able to use more external long-term financing. High tangibility and market to book ratio of asset are helpful to operate external financing activity.
KEYWORDS
Firm size, book value, growth opportunity, business risk, tangibility.
INTRODUCTION
ince the 1950s from the 20th century, Western economists launched a wide range of capital structure research. The MM theorem proposed as a starting point the traditional capital structure theory, such as the Modigliani Miller (MM) theory, balance theory, agency theory, asymmetric information theory, control theory. These theories suggested that the optimal capital structure of companies have chosen to have some guidance. There is a gap between theory and reality, and always some unexpected factors influence the choice of capital structure, one after another of these factors were caused the concern of financial and economic scholars and, through case summary or empirical studies to prove these factors on capital structure. Capital structure theory is the Western contemporary financial theory of the main research results. Capital structure is due to adopt a different method of financing business formation, showing long-term capital for enterprises and the ratio between the composition of the corporate balance sheet on the right longterm debt, preferred stock, common equity structure. Different combinations of various types of financing decisions on capital structure of enterprises and changes. Do capital structures change with corporate value in the kind of relationship? When firms make capital structure of what state the maximum business value? This relationship constitutes the focus of capital structure theory. This study extends empirical work on capital structure theory. First, it extends the range of theoretical determinants of capital structure by examining some recently developed theories. Second, since some of these theories have different empirical implications with regard to different factors affect capital structure, it is analyzed variables to determine debt to total asset especially on long-term debt. In this study, it is emphasized on the determinant as several ratios that able to get figure from financial statements in companies. Furthermore, it will be used Ordinary Least Square (OLS) to examine relationship between the determinants and capital structure. Lastly, we close with conclusion and suggestions for future research.
LITERATURE REVIEW
There have been many scientific works regarding to capital structure by the researchers until now. Gurcharan (2010) studied the capital structure role in developing countries companies which was taken from Asian Stock exchange index-linked listed. It was resulted that Debt Exempt tax shield of Malaysian companies were negative significance on leverage, and nevertheless, observed positive relationship with firm sizes especially in Indonesian and Philippine companies. As described that theoretical perspectives of capital structure has showed the variables, which are stock market, Gross Domestic Product (GDP) rate are significant relationship with leverage but, the Influence of bank size and inflation rate are also insignificant. In addition, Korajczy and Levy (2003) investigated relationship the effect of macro economical variables to the capital structure change. By using as a measure of financial constraints, the result defined hypothesis, which unconstrained firms make moment their matters to match with macroeconomic condition periods but constrained firms are opposite. Brav (2009) revealed that Evaluation between public and reliance of private types subsidies on debt financing in Great Britain were higher leverage ratios which was defined on reluctance of external capital markets, high willingness to regulate to variation on their capital structures. It was pretended that these distinct are because of more cost of private equity than public since information irregularity and aspiration are for keeping the power. Regarding to capital structure, Margaritis and Psillaki (2007) analyzed the correlation of both firm efficiency and leverage. The sampled data from 12 240 New Zealand firms were revealed that Firm efficiency was defined as a measure of production facility in industrial organizations and also positive relationship. Moreover, Efficiency influence was positive on leverage beyond the overturn at low Mid Leverage levels, and nevertheless it is negative at high leverage ratios. It was found that firm size effect on leverage as follow: Both Negative and Positive are respectively at low debt ratios and at mid high debt ratios. Influence of both tangibles and profitability is positive on leverage whilst there is negative influence of intangibles and assets on leverage. Ovtchinnikov (2010) approached five type-deregulated industries which entertainment, petroleum, natural gas, utilities, telecommunications, and transportations in capital structure decisions. Results were that deregulation influenced significantly to the working environment of the firm as well as financing

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decisions also. But it was observed that there was considerable impact decreasing in firm profitability, tangible asset and therefore, it was significant raise in growth opportunity by the following deregulation. Firms have achieved it by having decreased leverage ratio. And also, it was observed that there had been considerable impact on cross-sectional correlations betwixt casual factors and leverage. Also, negligible negative Leverage was interrelated with lucrativeness as well as market value to book value. Nevertheless, firm sizes were related positively and matched with capital structures dynamic tradeoff theory. Frank and Goyal (2009) surveyed that which factors can have strong relationships in public organizations based on American for the periods between 1950 and 2003 years. From found results that factors are positively related in respectively median industry leverage, tangibility, log of assets and expected inflations and however, negative approach was market to book asset ratio and profit. Moreover, Lowe leverage is as a result of tending firms which are based on dividend paying. By approaching book leverage, it has an influence on firm size, market to book ratio but are not consistent with inflation rate. They found that book leverage is related with a several theories of capital structures trade-off-theory. Additionally, Brounen et al (2006) made investigation internationally amid 313 Chief Financial Officers on arranging capital structure of the company. They approached to learn the way of applying conceptual theories which was applied by UK, Netherland Germany and France professionals. Having result, they contrasted with other result which was done previously in US and the findings are in the pecking order of behavior. Asymmetric Information system doesnt regulate behavior by that time. They considered that generally, the target debt and also, tax cut and bankruptcy cost approves static trade-off theory. In the end, they concluded with that there are negligible differences over the countries in spite of considerable existences of distinction in organizations. They revealed that there were opposing characteristics in private companies to the public companies. As well as, they pointed which was not found any clear details about agency problems in structuring of the company capital. Hackbarth et al (2006) analyzed the correlation influence of credit risk in terms of macro economical changes and in changing of the capital structure. The research investigation was begun by the scientists while turnover of cash flows were regulated by the economic climate change. This economic position can advantage for firms which can adjust both their financial and default policies in terms of the business procurement process. The study showed that variables which were chosen were considerable impact on company destiny. Remarkably, the created model by the scientists was revealed that it repeated debt levels which were selected and leverage ratio cyclicality. In addition, the model also replicated short terms credit structure and lead short term maturity credit spreads for which was considered as a debt contract. Margaritis and Psillaki (2009) studied about that whether there is any relationship or not between capital structures, ownership structure and firm performance by approaching French based companies. By utilizing non parametric data envelopment analysis, since they tended to check that high performing efficient companies whether they choose more or less debt to form their capital structure. They accepted two opposing hypothesis ideas which were risk efficiency and franchise value measurements. They found that firm efficiency on leverage is correlated positively as well as company ownership equity was originated from the high debt in capital structure. Booth et al (2001) conducted a research to evaluate the irrelativeness of capital structure theory over the countries with institutions which are diverse type form. The study of capital structure which was taken from 10 developing countries revealed that the influence of identical variables resulted as like as developed states. Their decision conclusion was that capital structure formation greatly remains which having done effect of diverse aspect organizations in spite of approaching to the modern finance theories. King and Santor (2008) on the other hand, made survey analysis correlation of that whether family ownership impact firm efficiency and capital structure as an example of 613 Canadian firms which period was taken since 1998 until 2005 year. The finding was revealed that there has been a like market performance in these firms which are not family owned. But the firms, which are owned by the family, are not related negatively for the Canadian institutions performance. However, this type of ownership may cause to destabilize firm on value sides. Furthermore, Desai et al (2004) studied characteristics of capital structure foreign subsidiary and domestic markets of conglomerates. The study showed that higher taxes rates are due to 2.8% higher ratios in debt and assets as well as domestic lend is responsive to the taxes. It was also defined which these institutions are rarely funded externally in countries where was low progressed capital markets and fragile credit privileges. Moreover, it was caused to cost highly getting from the domestic borrowing. Higher borrowing, which was taken from company substitutes in three quarter periods caused to decrease to get fund from outside sources under the capital market environment. Additionally, size has positive correlation with long-term debt to book value of asset ratio and market to book value of asset is able to increase external long term financing capacity (Titman & Waessels, 1988). Lang et al (1996) demonstrated that growth opportunity has negative effect to leverage because if companies have high growth rate so they will use internal financing rather than debt financing. Bradley et al (1984) illustrated that cost of financial distress has negative effect on leverage ratio, they argued if companies associate with more financial distress that companies would have high probably default in payment. In addition, Walsh and Ryan (1997) indicated that volatility decrease probability to issue debt.
METHODOLOGY
This study used secondary data from academic database in Sultanah Bahiyah library, University Utara Malaysia, which is DATASTREAM from Thomson Reuters that has information similar balance sheet of companies. We got 1588 companies as list on London Stock Market Exchange in every industry in time series period 1998 to 2010. After that, it is used Eviews program to analyze and excluded some incomplete raw data. Therefore, there are around 905 companies were tested by model 1 and model 2 and 750 companies were by model 3. This study is applied Ordinary Least Square regression method to test correlation between independent variables and capital structure. For dependent variables, it is tested for overall leverage in model 1, long-term leverage in model 2, and leverage
in model 3. For details of independent variables as illustrated in TABLE 1. Independent Variables 1. Profitability (PROFIT) 2. Firm Size (SIZE) 3. Growth Opportunities (GROWTH) 4. Tangibility (TANG) 5. Cost of Financial Distress (EVOL) 6. Tax Shield Effects (NDTS) 7. Business Risk (RISK) 8. Liquidity (LIQUID) 9. Effective Tax rate (TAX) 10. Market to Book value (GROWTHA) Earning volatility = Absolute value of the first difference of percentage change of Operating Income TABLE 1: DEFINITION OF INDEPENDENT VARIABLES Measurable Log of Total Asset Expectation +/+/+/+ + + -

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REGRESSION MODEL This study uses sample data across companies overtime, which means to apply panel data method. Therefore, it is adopted 3 regressions to examine relationship between leverage and independent variables are; Model 1 Model 2 Model 3 From models, i and t denote individual company and time dimension respectively. Model 1 highlights on relationship between independent variables and all leverage. Then model 2 testes how independent variables affect to book value of long-term debt as book value of asset is denominator. The purpose of model 3 is to examine correlation between independent variables and book value of long-term debt when market value of asset is denominator. The next section considers the finding and discussions of the study.
FINDING AND DISSCUSSIONS

TABLE 2: DESCRIPTIVE ANALYSIS
Variables Mean Median Maximum Minimum Std. Dev. Observations LEV1 0.1849 0.1185 19.5091 0 0.3765 8113 LEV2 0.1196 0.0369 6.5606 0 0.2295 8113 LEV3 139911.6 320.9646 27281192 -85082.46 877010.5 8113 PROFIT -0.0541 0.0881 8.0498 -219.1429 2.5974 8113 SIZE 11.0224 10.8241 19.5112 2.6391 2.3791 8113 GROWTH -0.8076 0.5170 2593.0730 -11731.46 159.5198 8113 TANG 0.2342 0.1367 14.2290 0 0.3406 8113 EVOL 0.0763 0.0681 359.4101 -534.000 12.9376 8113 NDTS 0.0356 0.0224 18.8569 0 0.2653 8113 RISK 0.2496 0.071 379.8404 0.0006 4.3521 8113 LIQUID 1.2034 0.6969 485.6667 0.0000 8.3729 8113 TAX 0.2134 0.2066 173.3333 -60.3333 2.6178 8113 GROWTHA 0.0034 0 8.2857 -0.6350 0.1134 8113
Table 2 presents descriptive statistics of all variables in every model. There are 8113 observations by period between 1998 -2010 from DATASTREAM. LEV1, LEV2, and LEV3 are dependent variables as ratio of leverage in difference detail ratio as it was mentioned in previous part. While other variables are, independent variables in these estimations determine capital structure in each model. As it was explained details of these variables in earlier part also. It is illustrated mean, median, maximum, minimum, and standard deviation in this table. For Table 3 presents correlative coefficients for variables in these estimations. It also indicated significant correlation between variables as mentioned in this table. For instance, SIZE has correlation with every leverage significant at 1% level, while it has correlation with other independent variables as PROFIT, GROWTH, RISK, LIQUID, TAX, and GROWTHA as different significant. In addition, there are other correlations as we show in this table. TABLE 3: CORRELATION ANALYSIS
LEV1 LEV2 LEV3 PROFIT SIZE GROWTH TANG EVOL NDTS RISK LIQUID TAX GROWTHA LEV1 0.141735 0.043818 (52.992)*** 24948.48 (6.825)*** -0.16962 (-15.863)*** 0.03727 (3.750)*** -0.43172 (-0.647) 0.009551 (6.727)*** -0.04795 (-0.886) 0.002205 (1.989)** 0.102072 (5.621)*** 0.25172 (7.215)*** 0.014616 (1.335) 0.000693 (1.461) LEV2 0.052672 25923.57 (11.697)*** -0.00102 (-0.154) 0.099367 (16.669)*** 0.286613 (0.705) 0.032039 (40.473)*** -0.022819 (-0.692) 0.001577 (2.334)** -0.001612 (-0.145) 0.006825 (0.319) 0.010273 (1.540) -0.00021 (-0.727) 7.69E+11 21881.03 (0.865) 781785.8 (36.401)*** 832247.1 (0.535) 20915.57 (6.322)*** -2797.251 (-0.022) -871.8236 (-0.337) -29974.02 (-0.707) -13387.62 (-0.164) 25067.21 (0.983) -481.7613 (-0.436) 6.745484 0.731251 (10.734)*** 24.516 (5.338)*** 0.013845 (1.409) 0.174411 (0.467) -0.001619 (-0.211) -0.942356 (-7.535)*** -1.01755 (-4.219)*** 0.025634 (0.339) -0.229067 (-111.441)*** 5.659414 10.30076 (2.445)** 0.143563 (16.215)*** -0.036056 (-0.105) -0.006677 (-0.953) -0.885208 (-7.728)*** -0.50153 (-2.268)** 0.171396 (2.479)** -0.0199 (-6.661)*** 25443.42 0.358003 (0.593) -2.072326 (-0.090) -0.108912 (-0.231) -1.250575 (-0.162) -2.364618 (-0.159) -12.88133 (-2.779)** -0.031024 (-0.154) 0.115983 0.003353 (0.068) 0.004751 (4.743)*** 0.028174 (1.712)* 0.046382 (1.465) 0.005451 (0.550) -0.000542 (-1.263) 167.3603 -0.012566 (-0.329) 0.082664 (0.132) -0.222756 (-0.185) 0.493751 (1.313) -0.001282 (-0.078) 0.070363 0.002274 (0.177) -0.00214 (-0.086) -0.00094 (-0.121) -5.02E-05 (-0.150) 18.93833 1.095161 (2.708)** -0.035292 (-0.279) 0.053456 (9.813)*** 70.0971 -0.013435 (-0.055) 0.0267 (2.533)** 6.852226 -0.0007 (-0.211) 0.012859 LEV3 PROFIT SIZE GROWTH TANG EVOL NDTS RISK LIQUID TAX GROWTHA
* Significant at 10% level,
**significant at 5% level,
*** significant at 1% level
TABLE 4: REGRESSION ANALYSIS Independent Variables Model 1 Model 2 Model3 1. PROFIT -0.040772*** -0.000761 -925.4687*** 2. SIZE -0.001664 0.000463 10342.06*** 3. GROWTH -2.56E-06 -4.24E-06** 4. TANG 0.112139*** 0.415222*** 795.3153 5. EVOL -5.61E-05 -1.89E-05** 6. NDTS 0.017470 -0.000516 7. RISK 153.1409*** 8. LIQUID -1.051771 9. TAX 6.429752 10. GROWTHA 1535.198*** Observations 9049 9044 7498 R-squared 0.821833 0.921604 0.842847 Adjust R-squared 0.821695 0.921543 0.842679 F-statistics 0.000000 0.000000 0.000000 Durbin-Watson Stat 1.903743 1.783020 1.911036 *Significant at 10% level, **Significant at 5% level, ***Significant at 1%level The empirical result from all three model has revealed that there are 7 variables significantly correlated with leverage as profitability, firm size, growth opportunitties (GROWTH), growth opportunities (GROWTHA), tangibility, cost of financial distress, and business risk. It was observed three models gave results for different variables. Some variables as profitability was examined by model 1 and 3 and showed the same result, whlie tangibilty was also tested by model

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1and 2 and also showed the same result. Profitbality, growth opportunities, and cost of financail distress are negative relationship with leverage, while firm size, tangibility, business risk, and growth opprtunities (GROWTHA) are positive relationship with leverage. In this comparison of model, all models have high R2, estimated at 82-92% that means thease models have explanatory power on leverage. Further, DurbinWatson statistics of all model that lies near 2 showed that there are not auto- correlations in these models.
DISCUSSION
PROFITABILITY Profitability has negative correlation with leverage as be tested by model 1 and 3 as significant level 0.01. This result support pririor researches that indicate negative relationship between profitability and leverage by Pecking order model as Kester (1986), Friend and Lang (1988), Baskin (1989), Griner and Gordon (1995), Shyam-Sunder and Myers (1999). That means, as the Pecking order theory hypothyse that the companies prefer to issue internal financing by issuing securities rather than external financing. In addition, issuing common stock is prcess of financing that become free source of finance. From this result, It implies that the companies in UK use eqity finance as much as possible because of retaining profit is easy and fast financing. SIZE Firm size has positive relationship with leverage significant level 0.01 examined by model 3. Similarly, The previous reseaches have found the same result of Marsh (1982), Rajan and Zingales (1995), and Chittenden et al. (1996). These result demonstrated as follow trade-off theory. The expectation of this correlation is, if size is large so it has higher debt capacity especially on long term debt, that mean firm size has positve correlation with long term debt. In addition, large size with long term debt able to reduce transaction cost of debt financing. From this result, the coefficient of firm size is 10342.26 that are able to imply that firm size has highly relationship with long term debt in UK companies; large firms have much proportion of long term debt. Furthermore, there is also probability default in large companies because of proportion of long term debt. While Pecking order theory suggests that firm size should be lower relation with leverage and should issue equity securities rather than debt (Kester, 1986). In addition, Titman and Wassels (1988) indicated there is negative relationship between firm size and leverage. GROWTH OPPORTUNITIES (GROWTH) In this research, there are 2 variables concern about growth opportunites, GROWTH from proportion of sale growth and total asset growth. This variable has negative correlation with significant level at 0.05 by model 2. This result support trade-off theory as Long and Malitz (1985) examined the same result before. The trade-off theory demonstrate that firms holding growth opportunities for create intangible assets and tend to borrow less than firm holding more tangible assets. Myers (1977) and Jensen (1986) demonstrated on agency theory that firms have a tendency to move wealth from debtholder to shareholder because subsitution effects and flexibility on investment. GROWTH OPPORTUNITIES (GROWTHA) Growth opportunities (GROWTHA) from proportion of market value of total asset and total asset, has positve correlation at significant level 0.01 by model 3, which support result of prior researchers as Titman and Waessels (1988), Lang et al (1996) on Pecking order theory and signalling model. Wald (1999) confirmed that this relationship was occured in developed coutries except United State. The signalling model demonstrate that companies with the best earning and gross prospects will use the most leverage. Furthermore, Lang et al (1996) argued that the negative correlation between growth and leverage will happen in unknow companies by the capital market only. The implication of UK companies, growth opportunities associate with lised companies are recognise by capital market. TANGIBILITY Tangibility was tested by model 1 and 2 and found the simmilar that there is positive relationship with leverage at significant level 0.01. This result as follow trade-off theory and Pecking order theory, which has been examined by Long and Malitz (1985), Chung (1993), and Walsh and Ryan (1997). From the result, tangibility has positive correlation with debt especially on model 2, which able to imply that tangible assets are important for banks credit policy especailly on long term debt. In addition, the more proportion of tangibility able to reduce cost of financial distress that occur when there are more intangible asset (Markaritis & Psillaki, 2007). COST OF FINANCIAL DISTRESS Cost of financial distress has negative correlation with capital structure at sinificant level 0.05 by model 2. This result supports the findings of pririor researches by Bradley et al (1984), Friend and Lang (1988), and Walsh and Ryan (1997) with trade-off theory. The theory indicates that if there is high volatility of earning that increase probability of financial distress. So, the companies may not be able to fulfil their debt servicing commitments. The implication from this result, cost of financial distress affect to ability of long term debt finacing. That mean if companies have much cost of financial distress, so there are constraints to debt financing such as banks consideration fund as less than companies expect, or afffect on companies credit rating as decrease. BUSINESS RISK Business risk was tested by model 3 and find that has positive relationship with capital structure at significant level 0.01. This result is opposite to the expectation of risk according to trade-off theory that demonstrates negative relationship with leverage. Argument from theory, when there is greater risk of bankruptcy cost; the firm will take offseting action by reducing leverage. In addition, the companies issue long-term debt as bond that attempt to restrict the extent to which equityholder able to pursue risky project that reduce the value of the debt (Jensen & Meckling, 1976). Capital structure theory suggest that firms with large fragtion of tangible asset should serve as collateral and reduce risk of the lender suffering the agency cost of debt, that means correlation between tangibility and leverage insisit negative relationship between risk and capital structure.
CONCLUSION
This paper investigated the determinants of leverage ratio of UK companies. The purpose of this study is a looking for which factors affect capital structure. Therefore, it was used 3 ratios of leverage to be dependent variables, which focus on book value of total debt to book value of total asset in model 1, and especially proper of book value of long term debt by compare with book value of total asset in model 2 and market value of total asset in model 3. It was used 905 UK companies to test in model 1 and 2, and 750 companies to test model 3. The determinants whcuh was applied as independent variables such as profitability, size, growth opportunity, tangibility, cost of financial distress, tax shield effect, business risk, liquidity, effective tax rate, and market to book of asset ratio. The result, there are 7 independent variables which was affected to capital structure ratio. Profitability, growth opportunity, and cost of financial distress are negative relationship with leverage. While firm size, tangibility, business risk, and market to book of asset ratio have positive correlations with capital structure. From results, it can be implied that the companies, which have more profitability and growth opportunity, focus more on internal financing as prefer to use common stock and retain earning to invest in companies that means they would use less long-term liability to financing in companies. Cost of financial distress is threat of long-term debt because there are volatilities to fulfil debt obligations. In contrast, firm size and tangibility are positive relationship with long-term debt because of there is more debt in big companies, is common sense that able to understand. While there are more tangible assets, is good collateral to finance with long-term debt in companies. For market to book of asset ratio, which results opposed with prior research that this implication is the UK companies, which high market price can make reliable for long-term financing in UK companies. Moreover, for risk, it cannot make implication in this study.
FUTURE RESEARCH
we considere for the future research to focus more on model 2 and model 3 because variables which have significant correlation in model 1, model 2, and 3. This means that it should interprete relationship between the determinants of capital structure with long-term debt. In addition, we leave for future research to include other variables to determine capital structure in terms of other countries.

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REFERENCES
Booth, L., Aivazian, V., Demiguc-Kunt, A., & Maksimovic, V. (2001). Capital structures in developing countries. The Journal of Finance, 56 (1), 87-130. Bradley, M., Jarrell, G. A., & Kim, E. H. (1984). On the existence of an optimal capital structure: Theory and evidence. The Journal of Finance, 39(3), 857-878. Brav, O. (2009). Access to capital, capital structure, and the funding of the firm. The Journal of Finance, 64(1), 263-308. Brounen, D., de Jong, A., & Koedijk, K. (2006). Capital structure policies in Europe: Survey evidence. Journal of Banking & Finance, 30(5), 1409-1442. Desai, M.A., Foley, C.F., & Hines, J.R. (2004). A multinational perspective on capital structure choice and internal capital markets. The Journal of Finance, 59(6), 2451-2487. Frank, M. Z., & Goyal. V. K. (2009). Capital structure decisions: which factors are reliably important? Financial Management, 38(1), 1-37. Gurcharan, S. (2010). A Review of Optimal Capital Structure Determinant of Selected ASEAN Countries. International Research Journal of Finance and Economics 47(1), 32-43. Hackbarth, D., Miao.J., & Morellec. E. (2006). Capital structure, credit risk, and macroeconomic conditions. Journal of Financial Economics, 82 (3), 519-550. Jensen, M. C., & Smith.C. W. (1983). The Theory of Corporate Finance: An Historical Overview, University of Rochester, Managerial Economics Research Center, Graduate School of Management, 2-20. King, M. R., & Santor.E. (2008). Family values: Ownership structure, performance and capital structure of Canadian firms. Journal of Banking & Finance, 32(11), 2423-2432. Korajczyk, R. A., & Levy. A.(2003). Capital structure choice: macroeconomic conditions and financial constraints. Journal of Financial Economics, 68 (1), 75-109. Lang, L., E. Ofek,E., & Stulz. R. (1996). Leverage, investment, and firm growth. Journal of financial Economics, 40(1), 3-29. Margaritis, D., & Psillaki. M. (2007). Capital structure and firm efficiency. Journal of Business Finance and Accounting, 34(1), 9-10. Margaritis, D., & Psillaki.M. (2010). Capital structure, equity ownership and firm performance. Journal of Banking & Finance, 34(3),621-632. Shleifer, A. and R., W. Vishny (1992). Liquidation values and debt capacity: A market equilibrium approach. The Journal of Finance, 47 (4), 1343-1366. Smith, C. W. (1977). Alternative methods for raising capital:: Rights versus underwritten offerings. Journal of Financial Economics, 5( 3), 273-307. Smith, C. W., & Warner. J. B. (1979). Bankruptcy, secured debt, and optimal capital structure: Comment. The Journal of Finance, 34(1), 247-251. Smith, C. W. (1979). On financial contracting: An analysis of bond covenants. Journal of financial economics, 7 (2), 117-161. Stonehill, A., Beekhuizen T., Wright. R., Toy L. R, N., Shapiro A. (1975). Financial goals and debt ratio determinants: A survey of practice in five countries. Financial Management 4(3), 27-41. Strebulaev, I. A. (2007). Do tests of capital structure theory mean what they say? The Journal of Finance 62(4), 47-87. Titman, S., & Wessels.R. (1988). The determinants of capital structure choice. Journal of finance, 63(2), 1-19. Toy,N.A., Stonehill.L.R., & Beekhuisen.T. (1974). A comparative international study of growth, profitability, and risk as determinants of corporate debt ratios in the manufacturing sector. Journal of Financial and Quantitative Analysis, 9 (5), 875-886. Walsh, E. J., & Ryan.J. (1997). Agency and tax explanations of security issuance decisions. Journal of Business Finance & Accounting, 24 (7), 943- 961. Warner, J. B. (1977). Bankruptcy costs: Some evidence. The Journal of Finance, 32(2), 337-347.

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AN ASSESSMENT OF THE CONTRIBUTION OF PAY-AS-YOU-EARN TO THE INTERNALLY GENERATED REVENUE OF KANO STATE BETWEEN THE PERIODS 1999 TO 2008
ISHAQ ALHAJI SAMAILA LECTURER DEPARTMENT OF ACCOUNTING BAYERO UNIVERSITY KANO-NIGERIA
ABSTRACT
The paper assessed the contribution of pay-as-you-earn to the internally generated revenue of Kano state between the periods 1999 to 2008. Data was collected from the annual reports and account of the Accountant General of Kano State and the internally generated revenue statement of Kano State Board of internal revenue which were analyzed using Descriptive statistics and Pearson correlation coefficient. The results show that pay-as-you-earn contribute significantly to the internally generated revenue of Kano state. It constitutes significant percentage of the personal income tax and also to the board of internal revenue collection. The contribution should have been much more than this due reluctance of revenue generation efforts This is partly as a result of the certainty of earnings from the federation account, poor remittance and collection machinery, lack of motivation of revenue staff, inadequate demographic information on tax payers, corrupt practices by some tax officials and tax payers among others. Finally it is recommended that effort should be made by the government to identify taxpayers that are yet to be captured in the tax payers net, through the issuance of a unique tax identification number and the development of data base of tax payers profile in order to improve pay-as-you-earn collection, personal income tax and internally generated revenue of Kano state.
KEYWORDS
Internally generated revenue, Pay-as-you-earn, Personal income tax.
INTRODUCTION
eneration of revenue by every entity is an issue of paramount importance. This cuts across households, firms, states and nations. Every country of the world today is striving to achieve rapid socio-economic growth and development through optimum tax assessment, collection and utilization. Government at every level (Federal, State or Local) is expected to discharge certain functions to its populace which includes the provision of basic infrastructure and social amenities (Abdulkadir 1998). The generation of adequate revenue is, therefore, very important for the effective discharge of the functions of government, as no meaningful development can be achieved in the absence of revenue. Revenue as explained by Oni (2005) means the receipt of a government, state or firm. In accounting terms, revenue means gross income received before any deduction for expenses incurred in generating the income. The 1999 Constitution of the Federal Republic of Nigeria, section 162(10) (1) defined revenue as any income or return accruing to or derived by the government from any source (internal or external). On the other hand, internally generated revenues are those revenues that are derived from various sources within a state or local government. The sources include pay as you- earned, direct assessment, capital gains tax, withholding tax on rent, motor vehicle license, stamp duties, earning and sales of governmeent properties etc (Buhari, 2001). Revenue is necessary for the effective functioning of the government machinery, as no government can survive without adequate revenue. However, studies have shown that state being the second tier of government in Nigeria has over the years shown sheer laxity toward enhancing internally generated revenue (Hamid, 2008). Most state governments have over the years over- relied on their share of revenue from the federation account, neglecting other internal sources of revenue generation available to them. Although pay-as-you-earn has the potential of generating sufficient internal revenue to state governments, it has not been given the desired attention. This has resulted to decrease in the share of the contribution of pay-as-you-earn to the overall revenue being generated at state level. Thus, current dwindling in the price of crude oil at the international market coupled with the world economic meltdown creates a shortfall to all the three tiers of governments, including the government of Kano State. With the price of crude oil in the international market crashing from $140 per barrel in early 2008 to the current average price of about $80 in December, 2009, coupled with the reduction of Nigerias OPEC quota to 1.88 million bpd compared to the budgeted 2.292 million bpd for 2009, all the three tiers of government have to explore other sources of revenue. Presently, the grim picture that confronts states in Nigeria is that of drastic reduction in allocation from the Federation Account. In January 2009, the funds allocated to the three tiers of government dropped to N285 billion as against N435 billion allocated in December 2008, a difference of N150 billion. The allocation reduces further in March to 251.5 billion (Federal Republic of Nigeria, 2009; Mukwuzi, 2009; Omose; 2009 and Subair, 2009). Such reduction together with the crisis in the Niger-Delta is affecting all the states in Nigeria leading to cutting down of expenditure. If this trend is to continue, states governments may not be able to provide the desired basic amenities to the masses, which will in turn affect the standard of living of the majority of the populace. The internally generated revenue (IGR) level in Kano state for most of the years under review (1999-2008) has been below the desired target (Annual Report and Account1999-2008). The unfavorable situation has been as a result of weaknesses in judicial and tax administrative machinery and laxity in the exploitation of all the sources of revenue available to the state, among others. Though in the recent past, considerable efforts have been made by the government in improving the internally generated revenue level of the state. For instance in 2005 and 2006, an increase of 10% and 24.27% were recorded respectively over the budgeted amount (Annual Reports and Accounts Kano State, 1999-2008). Although Kano State government has been making concerted efforts to shore up its internal revenue base, through setting up of machineries to tackle tax evasion, restructure management of the States Board of Internal Revenue, as well as engaging a number of experts and consultants, the level of achievement recorded is yet to be ascertained. The paper is aimed at assessing the contribution of Pay-As-You-Earn (PAYE) to the internally generated revenue in Kano state between the periods 1999 to 2008 and also to see the extent to which Pay-As-You-Earn (PAYE) contributes to the personal income tax and the Kano state board of internal revenue collection. To accomplish this, the paper is divided into five sections. Introduction, conceptual framework and literature review, methodology, results and discussions, conclusion and recommendations.
LITERATURE REVIEW
THE CONCEPT OF REVENUE The term revenue has been defined by various authors in different ways. Adam (2006) defined revenue as the fund required by the government to finance its activities. These funds are generated from different sources such as taxes, borrowing, fine, fees etc. It is also defined as the total amount of income that accrues to an organisation (public or private) within a specified period of time (Hamid, 2008). States revenue comprises of receipt from taxation as well as those which are not the proceeds of taxation, but of either the realization from the sale of government properties or other interests and returns from loans and investment earning. Bhatia (2001) contends that revenue reciept include routine and earned income. For these reasons, according to him, revenue do not include borrowing and recovery of loans from other parties, but it includes tax reciept, donations, grants, fees and fines and so on. Similarly, Pearce (1986) defined government revenue as all the money received other than from issue of and debt, liquidation of investments. Government revenue includes tax collections, charges and miscellaneous revenues, utility and insurance trust revenue for all funds and agencies of a government. Public

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revenue according to Stephen and Osagie (1985) is concerned with various ways in which the government raises revenue. From the above definitions, it can be said that revenue is the total amount of income accruing to a state from various sources within a specified period of time. States government, like the other two tiers of government, has sources and uses of revenue. Oshisami (1994) states that there are basically two types of revenue that accrues to state governments. These are internally generally generated revenue and revenue allocated from the Federation Account. Internally generated revenue are those revenues that are derived within the state from various sources such as taxes (pay as you earn, direct assessment, capital gain taxes, etc), and motor vehicle license, among others. While the statutory allocation from Federation Account, Value Added Tax etc constitute the external source. Most states of the federation get the bulk of their revenue in form of statutory allocation from the federation account to finance their expenditure programmes (Mukhtar, 1996; Isyaku, 1997; abdulkadir, 1998; Ibrahim, 2002; Ishaq, 2002 and Hamid, 2008). State governments as the second tier of government in Nigeria derive its revenue from various sources. However, it should be noted that sources of revenue are by no means uniform among the states. States derive their revenue depending on the resources available to them; (Anyafo, 1996; Daniel, 1999; and Adam, 2006). The share of federation account to states constitutes 57.97% in 2002 of the total revenue plus grant and this rose to 65.82% in 2006; while the internally generated revenue decline from13.38% in 2002 to 8.11% in 2006 (CBN,2006). The average percentages of internally generated revenue in relation to the federal allocation were between 5-9 percent for most non-oil producing states in the recent past. Kano was able to slightly exceed 10% in 2004 to date due to aggressive revenue generation efforts, with Lagos state as the only exception. The Internally Generated Tax Revenue of Lagos State has gone up sharply over the period 2000-2004 and to date, in both nominal and real terms. This favourable development is due to the general dynamism, enthusiasm and professionalism of private sector agents (tax consultants) whose remuneration is performance based (Zeeuw and Abdulrazaq 2005 and Sagagi 2007). The common sources of revenue among the state governments in Nigeria as highlighted in Anyafo (1996), Jimoh (2007) and Hamid (2008) include taxes, fines and fees, licences, earning and sales, rent from government properties, interest and repayments of loans, re-imbursements, statutory grant and miscellaneous. Revenue generated by state governments is used to finance various expenditure programmes. Expenditure is an actual payment or the creation of an obligation to make a future payment for some benefit, item or service received. Government expenditure is broadly divided into two (2) main categories, viz, recurrent expenditure and capital expenditure (Sosanya, 1996; and Jimoh, 2007). Recurrent expenditure according to Jimoh (2007) is the type of expenditure that happens repeatedly on daily, weekly or even monthly basis. The amount involved is charged to some operating account (e.g. profit and loss account or income and expenditure account).This includes for example payment of pensions and salaries, administrative overhead, maintenance of official vehicles, payment of electricity and telephone bills, water rate and insurance premium, etc. Capital expenditure on the other hand refers to expenditure on capital projects. It is expenditure for the purpose of acquiring or improving a relatively permanent asset. This includes construction of houses, roads, schools and hospitals, human capital development (expenditure on education and health), purchase of official vehicles, construction of boreholes, electrification projects, etc. The above expenditures both recurrent and capital, are therefore incurred with the aim of improving the standard of living of the populace(Sosanya, 1996; and Jimoh, 2007). Anyafo (1996) explains that government expenditure produces different degrees of impact on the economy. The effects vary greatly, depending on exactly how the government disburses public funds. If not undermined by poor management and fiscal indiscipline, government expenditure is expected to have positive impact on resource allocation, that is, on the pattern of goods and services produced by the economy. It is also expected to produce some implications on the distribution of real income and welfare. Since many government expenditures benefit some groups at the expense of others, the impact is usually in the form of income redistribution. PERSONAL INCOME TAX Personal Income Tax (PIT) is the oldest form of tax in the country. It was first introduced as a community tax in the Northern Nigeria in 1904 (before the unification of the country in 1914). It is implemented through the native revenue ordinances to the western and eastern regions in 1917 and 1928 respectively. It was later incorporated into direct taxation ordinance number 4 of 1940 (Ola, 2001). The need to tax personal income prompted the Income Tax Management Act (ITMA) of 1961. Several amendments have been made to the 1961 ITMA Act in 1985, 1989, 1990, and 1992. The application of ITMA varied across regions/states causing the burden of multiple taxes on individuals. As stated by Odusola (2006) two study groups were set up in 1991 to review the situation and improve tax collection. The 1961 ITMA was replaced with an amended act which was superseded in 1993 by Personal Income Tax Act (PITA) number 4. It was applicable with nationwide coverage. Its administration however, was assigned to the states, which were empowered to tax individuals, or bodies of individuals residing in its territory in a particular year. The PITA empowered the Joint Tax Board to administer the tax throughout the country and to coordinate its administration while the State Board of Internal revenue (SBIR) became responsible for the administration of the revenue. Dandago and Alabede (2000) defined Personal Income Tax as taxes imposed on the income of individuals, communities and families, etc. arising from employment, business, trade, profession, vocation etc. Bimpe (2002) consider Personal Income Tax as employment income taxes (payroll taxes) operated on the basis of PayAs You Earn (PAYE). He further explained that the tax applies to all employees of a Nigerian Company including expatriates as well as self employed individuals, partners and trustees. In these regards, the definition implies two forms of personal income Taxes. That is the PAYE and the Direct Assessment form of personal income tax. Two forms of personal income tax exist; the Pay-As-You-Earn system (PAYE) and Direct assessment. Mballos (2005), Taiwo (2002) and Ola (2001) described PAYE as the system whereby the employee pays tax on whatever income he earned from his employment in any particular month at the end of that month. It is a progressive tax arrangement whereby an employee pays income tax on his/her current earnings when it becomes payable. PAYE applies only to employees resident in Nigeria and employees of Nigerian government oversee. It applies to income from all sources, salaries, bonuses, commission, directors fees and any other income from employment etc. The employer deducts the tax from the employees monthly earnings including any allowances or benefits paid in cash or given to or on behalf of the employee. The total amount deducted by the employer from the employees earning at the end of every month is then remitted to the relevant tax authority (the relevant State Board of Internal Revenue). Evasion (partial or total) is described by Jimoh (2007) and Olaofe (2008) as outright or deliberate breaking of law to minimize or not to pay taxes at all or efforts outside the law to minimize taxes. The PAYE system seems to be the most effective way of enforcing payment of tax (from employment). Since tax is deducted at source, Hence, PAYE system reduces the level of evasion. In an attempt to solve the problem of Personal Income Tax and Companies Income Tax, especially in the areas of evasion, self assessment system was introduced by the federal government of Nigeria through the 1991 budget pronouncement. The system is to run concurrently with the existing Government assessment (or non-self assessment) for both individual and corporate tax payers. The system is based on the assumption that every tax payer is patriotic. It is expected to be reinforced by some compliance measures like regular and selective tax audit in order to sustain credibility of the system. Those who exploit the system to evade legitimate tax liability are to be severely punished (Buhari, 2001 and Jimoh, 2007). The growing concern of tax administration throughout the world is on how to simplify the tax assessment system to encourage voluntary compliance and many countries have adopted the self-assessment as a solution (Sarker, 2003). This recent trend in developing countries sees a shift from the official assessment system to self assessment. Compliance costs are all costs incurred by taxpayers, non- filers and third parties to comply with tax obligations Das-Gupta (2003). The success or failure of the self assessment system from the view point of the tax administration is ascertained from the amount of taxes collected by the system and is found to be successful in countries like Japan as a result of their half century experience (Sarker, 2003). The self assessment tax system is an assessment by the tax payer in which he carries out the computations of the tax liability, usually on a prescribed form and accompanies this with payment of the tax due to the tax authority. The non-self assessment tax on the other hand, is the assessment made by the tax authorities and conveyed on an assessment notice to the tax payer. In most cases, the tax payer provides the relevant information on a tax return form to assist the tax authority to carry the necessary assessment

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RESEARCH METHODOLOGY
Ex-post facto research design was used for this study. Data was also obtained from the revenue statement of the Board of Internal Revenue and report of the Accountant General Kano State for the period of ten (10) years, (1999-2008) in order to determine the extent of pay-as-you-earn (PAYE) contribution to the internally generated revenue in Kano State, total personal income tax and the board of internal revenue collection. Descriptive statistics and Pearson correlation coefficient were used in analyzing the data collected. This is with a view to enable the researcher to find out whether or not pay-as-you-earn (PAYE) contributes significantly to the internally generated revenue in Kano State.
RESULTS AND DISCUSSION

This section presents analyses and interprets the data generated for the study. The data generated from the revenue statement of Kano state board of internal revenue and report of the Accountant General Kano State for the period of ten (10) years, (1999-2008). RELATIONSHIP BETWEEN PAY-AS-YOU-EARN AND INTERNALLY GENERATED REVENUE Table 1 (appendix) shows the Pearson correlation coefficients on the relationship between pay-as-you-earn (PAYE) and total internally generated revenue. The values of the correlation coefficient range from -1 to 1. The sign of the correlation coefficient indicates the direction of the relationship (positive or negative), the absolute values value of the correlation coefficient indicates the strength, with larger values indicating stronger relationships. The correlation coefficients on the main diagonal are 1.0, because each variable has a perfect positive linear relationship with itself. The results (appendix) show the correlation coefficient for Pay-As-You-Earn (PAYE) and Internally Generated Revenue (IGR) is 0.786 which is relatively close to 1; this indicates that PAYE and IGR are strongly positively correlated. The significance level or p-value is 0.007, also indicates that PAYE contributes significantly to IGR in Kano state because it is close to zero. The average contribution of PAYE to IGR is 28%. The implication of this is that PAYE is one of the major sources of revenue in Kano state. However, in view of the status of Kano state been the centre of commerce of the Northern Nigeria and the most populous state of the country; the contribution of PAYE to IGR which is a little above one quarter of the total IGR suggest that other sources of IGR are not contributing enough particularly direct assessment. Some of the problems facing the state in the area of revenue generation include tax evasion, lack of trained, effective and motivated personnel, non-challant attitude of some tax officials, problem of assessment, problem of legal proceedings, lack of commitment to collect capital gains tax on all capital gains accruing to individuals, lack of commitment to pursue all internal revenue sources available to the state. For example withholding tax on rent and investment income), high tax rate, accessibility lack of mobility, networks, neglect of tax administration, and lack of up- to- date statistics on tax payers. These problems have hindered the state from generating enough revenue to the state and consequently affected the level of essential services the state government provides. RELATIONSHIP BETWEEN PAYE, TOTAL PIT AND KSBIR COLLECTION The correlation coefficient for Pay-As-You-Earn (PAYE) and total personal income tax is 0.991 (appendix II) which is close to 1; this indicates that Pay-As-You-Earn (PAYE) and total personal income tax are strongly positively correlated. The significance level or p-value is 0.000, which indicates that Pay-As-You-Earn (PAYE) contributes significantly to the total personal income tax on average PAYE contribute 88% of the total personal income tax with direct assessment contributing the balance of 12% . When Pay-As-You-Earn (PAYE) and total Kano State board of internal revenue collection are related, the results (appendix II) shows that the correlation coefficient is 0.995 which is very close to 1. This indicates that Pay-As-You-Earn (PAYE) and board of internal revenue collection are strongly correlated. The significance level of 0.000 is very low indicating that the correlation is significant. Thus, Pay-As-You-Earn (PAYE) contributes significantly to the total Kano State board of internal revenue collection. The average contribution is 82% of the Kano State board of internal revenue collection. This means that the state board of internal revenue effort toward generating revenue from other sources is not encouraging; Pay-As-You-Earn (PAYE) is deducted from the source and requires not much effort from the tax officials for assessment and the contribution of just 18% from the other sources is insignificant looking at the diverse revenue potentials of the state. Thus, the need for effective assessment and collection of revenue from all sources
CONCLUSIONS AND RECOMMENDATIONS

The paper posits that Pay-As-You-Earn (PAYE) contributes significantly to the Internally Generated Revenue (IGR) of Kano state, it also constitute significant percentage of the personal income tax and the board of internal revenue collections. The significant contribution of Pay-As-You-Earn (PAYE) indicates that Kano state as a commercial state is not making enough effort in generating revenue from other sources of revenue. This is partly as a result of the certainty of earnings from the federation account, poor remittance and collection machinery, lack of motivation of revenue staff, inadequate demographic information on tax payers, Inadequate and unreliable information furnished by tax taxpayers, Politics and partisanship, Corrupt practices by some tax officials and tax payers among others. The neglect of Pay-As-You-Earn (PAYE) a component of personal income tax which is an important source of revenue has contributed immensely to the over reliance of revenue from the federation account. Such over reliance has affected Kano state and other states of the federation negatively in the area of providing basic amenities that the citizens need. It is recommended that effort should be made to identify taxpayers that are yet to be captured in the tax payers net, through the issuance of a unique tax identification number and the development of data base of tax payers profile. Government should have the political will and should also ensure effective assessment, collection and utilization of tax revenue; this would improve Pay-As-You-Earn (PAYE) collection, PIT and the IGR of Kano State
REFERENCES
Abdulkadir, A.S. (1998). Revenue and Expenditure in Nigerian Local Government. A Case Study of Kano Municipal LGA, Unpublished B. Sc. Economics project, Department of Economics, Bayero University, Kano. Adam, R. A. (2006). Public Sector Accounting and Finance: Lagos, Corporate Publishers Ventures, 2nd Edition. Anyafo, A.M.O. (1996) Public Finance in a Developing Economy, the Nigerian Case, Enugu University of Nigeria press. Bhatia, H.L (2001). Public Finance. New Delhi: Vikas Publishing PVT ltd. 22nd Edition Bimpe, B. (2002) Taxation as a Source of Government Revenue; A Paper presented at National workshop on Revenue Mobilization for National Development Issues and Challenges. Jos Nigeria (Unpublished). Buhari, A. L (2001) Straight to the Point, ICAN/Polytechnic Public Finance, Ilorin: Ilorin Press Central Bank of Nigeria (2006), Annual Reports and Statement of Accounts Dandago, K. I. and Alabede, J.O. (2000), Taxation and Tax Administration in Nigeria, Kano: Triumph Publishing Company Ltd. Daniel, G. I. (1999). Public Sector Accounting, Zaria: Ahmadu Bello University Press Federal Republic of Nigeria, (1999). Constitution of the Federal Republic of Nigeria, Lagos: Government press. Federal Republic of Nigeria, (1993). Personal Income Tax Act. Hamid, K. T (2005). Towards Enhancing Revenue Generation at State Level ; A Study of Bauchi, Kaduna and Kano States. The Treasury Manager.. The official Journal of the Institute of Treasury Management and Financial Accountants of Nigeria, Vol. 1, No. 2 pp 64 72 . (2008), SWOT Analysis on Sources of Revenue at State Government Level. A Paper Presented at the Bi Annual Conference of the Federal and State Auditors General held at Tahir Guest Palace, Kano Isyaku, G.A. (1997), Management of Revenue Accruing from Taxation in Nigerian Economy with reference to Katsina State, Unpublished MBF, Department of Economics, Bayero University, Kano.

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Ishaq, I. (2002). The Role of Taxation in the Economic Development of Kano State. Unpublished B.Sc Economics Project, Department of Economics, Bayero University, Kano. Jimoh, B.(2007) Public Sector Accounting and Finance. Lagos: Magic Plus Publishers. Kano State Government: Report of the Accountant General 1999-2008 Kano State Government: Board of Internal Revenue Statement 1999-2008 Mballos, O. O (2005). PIT Returns processing,A paper presented at a workshop organised by FIRS, Abuja(unpublished) Mukwuzi, M. (2009). The IGR Race. The News @ the newng.com/news/the-igr/2009/02 Mukhtar, A. M. (1996), Problems and Prospects of Tax Administration (A Case of Kano State Board of Internal Revenue, Unpublished PGDBF Project, Department of Economics, Bayero University, Kano. Odusola, A. (2006) Tax policy reforms in Nigeria. UNU-WIDER. Ola, C. S. (2001) Income Tax Law and Practice in Nigeria; Ibadan: Heinemann University Press Ltd. Olaofe, E. O. (2008). Overview of Tax Administration and the Three Tiers of Government In Nigeria; ICAN Students Journal Vol. 12, No. 2 Pp 7-15 Oni, A. O. (2002). Exploiting Administrative Revenue and Public Debt source of Government Revenue; A Paper presented at National Workshop on Revenue Mobilization for National Development; Organized by Revenue Mobilization, Allocation and Fiscal Commission and ICAN. Jos Nigeria (Unpublished) Omose, K. (2009). The Lagos way Time for Bolder Action Part 3 @www.nigeranvillagesquare.com/articles/kinsley-omose/the-lagos-way-timeforbolder-action Ososami, L. (2003). A closer Look at Taxation as a Tool for Revenue Generation and promotion of Investment in Nigeria Oshisami, K. (1994), Government Accounting and Financial Control, Ibadan: Spectrum Books Ltd. Pearce, D.W (1986). Macmillan Dictionary of Modern Economics, London, Macmillian Press Ltd. Sagagi, M.S. (2007), Nigeria: Non oil Prducing States and Growing Socio- economic Crisis. Daily Trust @ all Africa .com Sarker, T.K. (2003). Improving Tax compliance in Developing countries Via Self Assessment. What Could Bangladesh Learn from Japan? AISA-Pacific Tax bulletin Vol. 9, No. 6. Sosanya, S.O. (1996). Economics of Taxation as a Source of revenue Generation, The National accountant, Vol. 6 No. 1 pp 75-80 Stephen, N.M. and Osagie, E. (1985), A Textbook of Economics for West African Students, Ibadan, University Press Limited Subair, G. (2009). Federation Account Records N36b Deficit. Nigerian Tribune @ www.nigerian tribune. 16/03/09 Taiwo, H. O. A. (2002). Personal Income Tax, CITN Nigerian Tax Guide Statutes. The Chartered Institute of Nigeria, Lagos. Zeeuw, M. A. and Abdulrazaq, T. (2005), Tax Policy Assessment for Lagos State Government. Consultants Report Number 202 CNTR 000512A @
APPENDICES
APPENDIX I TABLE 1:PEARSON CORRELATIONS RESULT ON THE RELATIONSHIP BETWEEN PAYE AND IGR Internally Generated Revenue Pay-As-You-Earn Internally Generated Revenue Pearson Correlation 1 Sig. (2-tailed) N Pay-As-You-Earn 10
**
.786** .007 10 1
Pearson Correlation .786 Sig. (2-tailed) N .007 10
10
**. Correlation is significant at the 0.01 level (2-tailed). Source: Computed by the Author from the Data on Appendix III (SPSS Version 16.00) APPENDIX II TABLE 2: PEARSON CORRELATIONS RESULT ON THE RELATIONSHIP BETWEEN PAYE, TOTAL PIT AND KSBIR COLLECTION Pay-As-You-Earn Total Personal Income Tax Total KSBIR Collection Pay-As-You-Earn 1 .991** .000 10 Total Personal Income Tax .991** .000 10 Total KSBIR Collection .999 .000 10 APPENDIX III
TABLE SHOWING INTERNALLY GENERATED REVENUE, PAY-AS-YOU-EARN, TOTAL PERSONAL INCOME TAX AND TOTAL REVENUE OF KANO STATE BOARD OF INTERNAL REVENUE
**
.999** .000 10 .995** .000
10 1
10 .995 .000 10
**
10 1
10
Source: Computed by the Author from the Data on Appendix III (SPSS Version 16.00)
YEAR 1GR(N) PAYE(N) TOTAL PIT TOTAL REV OF KSBIR 1999 1,453,309,124 286,993,832.00 376,420,283.08 476,354,698.31 2000 1,847,049,387 387,987,643.40 512,323,199.30 628,386,925.20 2001 2,337,313,746 713,959,883.30 902,832,307.79 1,041,822,740.77 2002 2,191,297,904 1,148,234,962.00 1,323,854,290.91 1,551,835,316.21 2003 4,517,503,134 1,012,868,694.00 1,150,963,603.92 1,416,905,484.40 2004 6,651,982,871 1,324,476,265.00 1,662,645,194.95 1,951,775,373.23 2005 6,754,740,822 1,497,918,511.00 1,828,423,879.68 2,101,990,302.66 2006 7,777,523,683 1,712,910,339.00 2,066,723,801.68 2,407,291,855.64 2007 8,293,966,984 2,150,287,268.00 2,188,129,688.52 2,864,855,587.33 2008 6,979,069,779 3,224,729,462.00 3,284,610,045.62 4,270,678,165.40 Source: Kano State Accountant General Report and KSBIR Revenue Statement 1999-2008

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A FRAMEWORK FOR MINING BUSINESS INTELLIGENCE A BOON TO NON MINING EXPERTS

B. KALPANA RESEARCH SCHOLAR, BHARATHIAR UNIVERSITY, COIMBATORE ASST. PROFESSOR DEPARTMENT OF COMPUTER SCIENCE & APPLICATIONS PSG COLLEGE OF ARTS AND SCIENCE COIMBATORE DR. V. SARAVANAN PROFESSOR & DIRECTOR DEPARTMENT OF MCA DR. NGP INSTITUTE OF TECHNOLOGY COIMBATORE DR. K. VIVEKANANDHAN PROFESSOR SCHOOL OF MANAGEMENT BHARATHIAR UNIVERSITY COIMBATORE
ABSTRACT
Any business today requires additional intelligence for its own decision making process. The data available should act as leverage to business intelligence that could be used for decision making purpose. This paper outlines a framework for an automated data mining tool for business operators. The required knowledge to use a data mining tool by the business user is far out of his/her domain knowledge. Activities like selecting required attributes for the query, selecting appropriate mining technique for business intelligence can be done by software agents. The proposed framework for automated data mining proposes to solve the problem of business operators by use of intelligent agents. This paper shows the preliminary work done on an online ticket booking website database.
KEYWORDS
Automated data mining, agents, business intelligence.
INTRODUCTION
ny software bought today requires a certain degree of customization. Either we have to setup a wizard or we have a company representative to install it in our system or office. After some basic configuration is done, the system runs as required. Consider a business operator, who requires some business intelligence for marketing, for enhancing customer relationship or for cross selling purposes. The business operator has a repository of data like who bought what, customer type, customer searches, click patterns, queries, product sold dates etc. The business operator uses a business tool for analysing the required trends or patterns. The settings for the tool can be semi automated by a wizard. The business operator has no knowledge of how the settings can be changed or whether the settings are set properly initially. The proposed framework helps to solve these problems by making the tool more user friendly and with the aid of agents, make the mining process more automated. The following are major advantages a building an business intelligence tool. [1] follow profitability of their products sold; analyse expenditures; monitor corporate environments; and discover business anomalies and frauds discover new trends and novel information based on historic data
BUSINESS OPERATOR AND THE MINING TOOL

Consider the scenario where an online business uses mining tool for business analysis. The data to be mined is collected and made ready for mining. After preprocessing the data is made ready for mining. The business operator will not have a clue of what to do with the accumulated data or how to process it so as to get a optimized result for his query. The job of the tool is to present different results based on the configuration given by him initially. FIG. a. BUSINESS OPERATORS IN THE WEB AND A DM TOOL

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FIG b: THE FRAMEWORK OF AN AUTOMATED TOOL
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The DM tool keeps collecting the business operators preferences based on their clicks. In fact the framework suggests that, agents can show the structure of the query to be processed in a more general term than calling it association, classification or clustering. The tool starts storing the preferences of the business operators of what type of analysis he/she is interested in, for future use. The proposed framework is shown in Fig b.The theoretical model is explained in following sections.
BUILDING A WAREHOUSE
A ware house is built based on the transaction database. A copy of transactions can be periodically updated in a data warehouse. Loading a data ware house with information for mining is an iterative step. According to W. Inmon [2] , the father of data warehouse, first the data from different sources are extracted and loaded into a data ware house. How the subset of data should be loaded for meaningful mining?. Should the data be transformed based on unit of time, or location or product type or customer class or activity type? FIG c. DATAWARE HOUSE
There are practically speaking, an infinite number of ways to subset data. What is a meaningful subset depends entirely on who the first user of the first iteration of the data warehouse will be. The data architect needs to ask the question - who will be the first user of the first iteration of data and knowing whom the first user is, what data would be meaningful to them? A data model is also selected so as to make mining less cumbersome.
PREPROCESSING OF DATA
Data cleaning and transformation of instances to suit the mining technique is done in the pre-processing stage. Data cleaning deals with missing values, noise and redundant data. Missing values could be due to data not available or accessible due to privacy issues. If attribute value is missing we can infer the value of attribute based on other attributes or other instances or just ignore the instance .If class label is missing we can omit that instance or use a semi supervised learning and use estimation maximization technique to find if the classifier classifies accurately. Noise in data could be due to unknown encoding, inconsistent formats, out of range values etc. Noise can be removed using consistency checks, canonicalization, prior domain knowledge or statistical measures. We can handle noisy data by binning, regression, clustering to find outliers.
THE ROLE OF AGENTS IN AUTOMATED DATA MINING FRAMEWORK

Agents are defined as software or hardware entities that perform some set of tasks on behalf of users with some degree of autonomy [4]. In order to work for somebody as an assistant, an agent has to include a certain amount of intelligence, which is the ability to choose among various courses of action, plan, communicate, adapt to changes in the environment, and learn from experience. Other attributes that are important for agent paradigm include mobility and learning. An agent is mobile if it can navigate through a network and perform tasks on remote machines. A learning agent adapts to the requirements of its user and automatically changes its behaviour in the face of environmental changes [5]. For learning or intelligent agents, an event-condition-action paradigm can be defined [6].In the context of intelligent agents, an event is defined as anything that happens to change the environment or anything of which the agent should be aware. For example, an event could be the arrival of a new mail, or it could be a change to a Web page. When an event occurs, the agent has to recognize and evaluate what the event means and then respond to it. This second step, determining what the condition or state of the world is, could be simple or extremely complex depending on the situation. If mail has arrived, then the event is self-describing, the agent may then have to query the mail system to find out who sent the mail, and what the subject is, or even scan the mail text to find keywords. All of this is part of the recognition component of the cycle. The initial event may wake. Here the software agent plays a role of decision maker. Based on the query string given the agents starts preparing the data and use a technique most suitable for the data and return the result. For example in classification many algorithms are available. The most suitable ones in the domain of application can be selected and stored in a repository. The agent can classify the instance and the results can be returned. The results of the agent can be stored and if there is spike upward or downward than the previously stored results then it can be reported with the variation information.

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SELECTION AGENT The agent can be doing a selection of appropriate attributes for data mining process. The agents can also select a particular mining technique. Thus we can have two type of selection agents. 1. Attribute selection agent 2. Algorithm selection agent The job of the agent is to choose the required attributes that will help the mining technique to predict the class into which an instance of data will belong. Given N number of attributes, the job of the agent is to choose a set of N attributes, called the qualifying attributes that will contribute mostly in classifying the given data into a particular class in minimum amount of time and efficient utilization of resources. For example the customers can be classified according to their spending habits as high spender or moderate spender. Given a set of n transactions it will be useful to find, the spending pattern of customers on their each transaction. The proliferation of feature selection algorithms, however, has not brought about a general methodology that allows for intelligent selection from existing algorithms. In order to make a right choice, a user not only needs to know the domain well (this is usually not a problem for the user), but also is expected understand technical details of available algorithms. Therefore, the more algorithms available, the more challenging it is to choose a suitable one for an application. Consequently, a big number of algorithms are not even attempted in practice and only a couple of algorithms are always used. Therefore, there is a pressing need for intelligent feature selection that can automatically recommend the most suitable algorithm among many for a given application [3]. Feature selection is a process that selects a subset of original features. The optimality of a feature subset is measured by an evaluation criterion. As the dimensionality of a domain expands, the number of features N increases. Finding an optimal feature subset is usually intractable [ 8] and many problems related to feature selection have been shown to be NP-hard [9]. A typical feature selection process consists of four basic steps namely, subset generation, subset evaluation, stopping criterion, and result. Knowledge and data about feature selection are two key determining factors. Currently, the knowledge factor covers purpose of feature selection, Time concern, expected Output Type, and M=N Ratiothe ratio between the expected number of selected features M and the total number of original features N. The data factor covers Class Information, Feature Type, Quality of data, and N=I Ratiothe ratio between the number of features N and the number of instances I. The algorithm selection agent can choose between algorithms if association between objects required or a classification based on some attributes is required. Clustering techniques can be used for grouping items into different categories. A prediction model can be computed based on previous training test or by cross validation. RECOMMENDATION AGENT The user navigation pattern can be identified and be supplied to indecisive users. For example if the state space consists of all possible combination of navigation, then the job of the agent is to group all similar interest users and give them directions for recommendation. To develop mining tasks for navigation pattern, we need to estimate how similar two mining patterns are. We introduce a metric that estimates the similarity based on the total number of common categories that coexist to the total number of distinct categories.According to [11] the sequential subsequence can be obtained from decisive users and help the indecisive users. For example, if association between an item-X with that of n number of other item. We can use this metric to identify users who share common navigation behaviour and search interests. These are people who search for new information in a similar way. They form the decisive group. We can use k-means algorithm to group similar interest users and the agent help the indecisive users with the clusters obtained to recommend popular predictions.
EXPERIMENTS AND RESULTS

We conducted mining on the data base of an online ticket booking operator, ticketgoose [7]. An SQL dump was made available whose information from 2007 to 2010. The database had 128 tables each with a minimum of 2 attributes to a maximum of 5 attributes. A set of questions were prepared to find what the operator was interested in. Equipped with this information the database was pre-processed and the selected attributes were stored in separate files. Some preprocessing task had to be performed. For example the locations were all given ids which were integer attributes. So they were converted to nominal attributes initially. Some of the tables contained null attribute values for example the comment attribute of the user feedback table. The value was not going to affect the classification criterion. So it was left as such. Summary statistics of attributes helped in evolving the results. A subset of questions and the results are submitted herewith. Clustering was done based on travel date to find the number of persons who travelled through ticket goose between 2007 to 2010 (in fig d). The number of bus operators, buses, trading partners, agents registered with ticketgoose in fig. e . Summary statistics helped to achieve the number of hits per year to the website (in fig f).To predict the most sought after destination during peak holiday period such as pongal holidays from Chennai ( in fig g). How did you know about ticket goose?( In fig h). Relation between booking and browsing (in fig. i).Browsing can be made not only for booking but also for cancellation and browsing the ticket status or casual browsing. This statistics may help website designers for advertisement and other deals. FIG d. THE NO. OF PERSONS TRAVELLED
FIG e. THE STAKE HOLDERS OF THE COMPANY

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FIG f. NO. OF HITS PER YEAR
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FIG g. NUMBER OF PERSONS BOARDING CHENNAI
FIG h. HOW DID YOU NOW ABOUT TICKET GOOSE?
FIG i. NO. OF HITS VS PASSENGERS BOOKED
FUTURE DIRECTIONS
We had presented an automated mining framework which has been attempted by very few. The possibility of creating such a tool when non mining experts find it difficult to distinguish between of algorithms, resource utilization and optimized results for their business leverage. We plan to study further how an agent can recommend results based on user navigation of the tool.
ACKNOWLEGEMENTS
We would like to acknowledge Mr. Arunkumar Athiappan of ticketgoose, for provding us the dataset and accepting the results provided herewith.

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REFERENCES
[1] Olszak, C & Ziemba, E. Approach to Building and Implementing Business Intelligence Systems, Interdisciplinary Journal of Information, Knowledge, and Management, 2, 2007, 135-148. [2] W. H. Inmon,Buiildiing the Data Warehouse::Gettiing Started,2000 ,wiley & sons. [3] H.Liu, L.Yu,Toward Integrating Feature Selection Algorithms for Classification and Clustering, IEEE Transactions on knowledge and data engineering, vol. 17, no. 4, April 2005. [4] S.Russell, P.Norvig, (1995.),Artificial Intelligence: A Modern Approac, Prentice-Hal. [5] Seydim A. Y. (1999) Intelligent Agents: A Data Mining Perspective, Department of Computer Science and Engineering, Southern Methodist University, Dallas. http://engr.smu.edu/ yasemin/agentsdm.pdf, [6] J.P.Bigus, J. Bigus(1998), Constructing Intelligent Agents with Java - A Programmers Guide to Smarter Applications, John Wiley & Sons Inc., [7] Online ticket booking service, viewed on October 2011,http://www.ticketgoose.com/ [8] R. Kohavi and G.H. John, (1997) Wrappers for Feature Subset Selection, Artificial Intelligence, vol. 97, nos. 1-2, pp. 273-324. [9] A.L. Blum and R.L. Rivest, (1992),Training a 3-Node Neural Networks is NP-Complete, Neural Networks, vol. 5, pp. 117-127,. [10] Han, J. and M. Kamber, 2001. Data Mining: Concepts and Techniques, Morgan Kaufmann,USA. [11] P-miner: Using user navigation patterns for personalizing topic directories, viewed on September 10, 2011, http://www.dblab.ntua.gr/~pbour/p-miner/

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UTILIZING THE POWER OF CLOUD COMPUTING TO PROMOTE GREEN LEARNING

DR. V.B. AGGARWAL DIRECTOR (IT) JAGAN INSTITUTE OF MANAGEMENT STUDIES ROHINI, DELHI DEEPSHIKHA AGGARWAL ASSOCIATE PROFESSOR JAGAN INSTITUTE OF MANAGEMENT STUDIES ROHINI, DELHI
ABSTRACT
Time, distance and languages are common hurdles for the formal education system. The emergence of IT and the technological solutions like developments in information, communication and computing technologies have made available several powerful tools that support learning to a large sector of the population. Utilizing the information and communication technology in education is referred as e-learning. Emergence of e learning has led to the availability of higher education to masses. The importance of e-learning like reduced paperwork and manual tasks, saving on the transportation costs, streamlining of processes making it more efficient, automation leading to easy accessibility and ready availability, a collaborative learning mechanism, ease in modification and updation are well-known. The purpose of this research is to explore how cloud computing can be used as a tool for e - learning and hence for the promotion of Green Education. When we use the term green we refer to the methods that help in protecting the environment. Computing technology has put intense pressure on the environment and natural resources and by switching over to green computing we try to reduce, reuse and recycle the resources. E-learning contributes to a greener environment by saving on the fuel to travel for learning purposes and also the resources required to build infrastructure for traditional learning. The reason for suggesting the utilization of cloud computing in this paper is that cloud computing is ultimately the green computing because when we use the cloud, we reduce the hardware usage by individuals and organizations as the data and applications are stored on the cloud and we therefore promote a greener environment.
KEYWORDS
Cloud computing, E-learning, Green Learning, IT Innovations, Web 2.0.
INTRODUCTION
ideo Conferencing, Satellite Applications, internet and www has changed the life styles of people around the world. In the education system also, an environment in which, learning is facilitated by Information and Communication Technology (ICT) applications for teaching and learning, has emerged. These tools especially the ones created by web 2.0, which enable the elimination of barriers of the traditional education system leads to setting-up of digital/virtual/e-campuses or e-varsities for E-learning. Global connectivity must mean more than technology and commerce; it must lead to global learning, and the inculcation of values that set apart a civilized human being. Green: The term green is used when we use the minimum resources to carry out a process. The idea is to have sustainable use of resources so that the resources that are used can be recharged by nature on a regular, sustainable and long-term basis. Resources could be energy or material. The activities or tasks carried on should generate the least amount of pollution, and any waste if generated should be recyclable. Cloud computing: Cloud computing is an emerging technology through which an increasing number of IT services are delivered over the Internet. From personal messages and pictures on Gmail or Facebook, to more professional offerings from Amazon Web Services or Microsoft Online Services, cloud computing makes it possible to run applications without having dedicated hardware, software, and services. Cloud computing, for a great part, is enabled by virtualization, which allows, the decoupling of server hardware from applications and operating system (OS) storage. Cloud computing and virtualization make it possible to sell (or purchase) IT resources, such as CPU time, storage, and network bandwidth, as on-demand and/or metered resources, similar to how public utilities are used. The result is that organizations can reduce costs and be more flexible, more mobile, and scalable while improving their quality of service. E-Learning: The term e-learning refers to computer based training which incorporates technologies that support interactivity beyond what is normally provided by a single computer. Further, it can refer to an approach that facilitates and enhances learning through the use of computer and communication technology, such as personal computers, Digital Televisions, Mobile Phones, Internet, email, and collaborative software. E-learning continues to be popular because of its ability to provide greater convenience, time flexibility and self-paced learning to students while avoiding travel time and cost. It can also accommodate learning styles not suited to traditional classroom instruction.
REVIEW OF LITERATURE
E-learning has evolved from its predecessor, the distance learning. Distance learning attracted many learners from all over the globe, mainly because of its flexibility. Schank (2002), Roffe (2002), Sambrook (2003) and Tsai & Machado (2002) refer to e-learning as communication and learning activities through computers and networks (or via electronic means).The popularity of e-learning is not only limited to working adults who are seeking higher qualifications without leaving their jobs and losing their earning power (Lau, 2003). This trend seems ever increasing as the Internet and computer technology become widespread as a daily necessity of the younger generation. Evan & Hasse (2001) found out that learners are moderately lacking in computer proficiency and, since e-learning is centered around computer technologies, it is a barrier to those learners without good computer skills. In addition, studies of Evan & Hasse (2001), ORegan (2003) and Rovai & Jordan (2004) found out that learners face limited physical interactions among themselves in e-learning. The main purpose of this paper that is to explore some limitations in this learning method. Students need necessary hardware for e-learning such as desktop or notebook computers and printers (Kathawala, Abdou, Elmulti, 2002; Hiltz, 1997). Therefore, one of the major technological limitations of e-learning is the necessity of computer hardware and relevant resources. Hardware and other ICT resources are necessary for e-learning implementation in institutions. Most of these problems are being addressed by the cloud computing technology. In recent years e-learning has grown into a widely accepted learning model. Innovative changes in e-learning applications have also been witnessed. Also Cloud computing has become one of the hottest buzzwords in the IT area. Many companies and institutions are rushing to define clouds and provide cloud solutions in various ways. Cloud computing allows an e-learning system with the infrastructure which is reliable, flexible, cost efficient, self-regulated, and QoS-guaranteed. In this paper we would establish the link between these two major developments in the IT sector. We would also study the relationship between green computing and education as green computing is considered to be the ultimate outcome of the cloud. According to Wikipedia, Sustainable development (SD) is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come. E-learning promotes sustainable learning practices by providing ways to save resources. Another technology that makes e-learning simple, widespread and sustainable is the development of tablet computers and laptops. The smart phones

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also are a part of this set of portable devices which serve the purpose of e-learning very well without the need for an elaborate infrastructure. These devices are wireless and that is the major advantage. Being wireless, they do not need a wired network infrastructure and hence save a lot of resources. Another benefit is that they are portable devices so people do not have to buy multiple devices to work at multiple places. This saves a huge amount of computing resources and ultimately contributes to saving the environment to some extent from the problem of electronic waste disposal because the more devices we use, the more we dispose.
NEED FOR E- LEARNING

Teaching students in classrooms is the traditional way of teaching around the world. Shifting to the modern approach of E-learning is a challenge but it remains an interesting and promising area of research. In some regions there are barriers to accessing traditional forms of higher education, particularly in areas with a large rural hinterland, or where mobility is restricted such as in developing countries like India. Even in urban areas e-learning plays an important role as the students are becoming more technically savvy, and want to access their course materials from the Web. E-learning systems usually require many hardware and software resources. There are many educational institutions that cannot afford such investments, and cloud computing is the best solution. Learning is not limited to university students but we see the emergence of lifelong learning. The gap between globalization and sustainable growth continues to widen. One strategy to fill this gap is the delivery of higher education globally by using the power of ICT. The inefficient use of fossil fuel energy in commuting to and from campus, coupled with the high-energy content associated with production and delivery of printed books, suggests an expanded role for e- learning. More specifically, rising fuel prices throughout the world has generated increased interest in using the Internet to support higher education. Going green is an integral part of sustainable development. Achieving sustainable development is a challenge necessary to ensure the well being of our world and its people. Therefore switching to e-learning not only enables spreading of knowledge around the world but it also contributes to sustainable development.
HOW IS E LEARNING THE GREEN LEARNING

Green Learning can be described as the type of learning that supports the environment. Whenever we refer to the phrase Green, it implies the protection of environment from the harmful impacts of technology and development and ultimately the concept of reduce, reuse and recycle. A move to eLearning will not only reduce overall costs of learning but also contribute to environmental sustainability through energy conservation. By switching to online learning, we instantly reduce the largest contributor to our carbon footprint, travel. Online learning options using learning management systems and web/videoconferencing can cut back on the need for traditional physical classrooms (and other infrastructure) while also reducing travel costs and associated energy use. In a traditional teaching set up, the students and the teachers and all other supporting staff has to travel to the campus which significantly increase the carbon footprint of everyone involved. Then there is a huge infrastructure set up for the academic institute which again leads to usage of more resources and energy. Another aspect of classroom training that is particularly harmful to the environment is the printing out of classroom materials. This leads to consumption of huge amounts of paper. With technologies like Adobe PDF and other collaborative services for document sharing, there is no reason to continue with this model. Making these resources available online has many benefits. First of all, learners can access them on demand from any PC, so if they are at home or away on travel, they can still have access to the information. Secondly, the resources become searchable, so if you are looking for a specific content that you vaguely remember from the training, you dont have to flip through pages to try to find it, but you can just type in a keyword and the PDF returns the page number instantly to you. Finally, if a learner does want a print out of a set of steps to achieve a specific workflow for example, they can print out that single page and save on the other pages that they would have otherwise. The reductions in printing costs as well as the positive impact to the environment are obvious here. Based on this criterion, e-learning can be described as green learning because it saves tremendous resources, mainly petroleum and energy used in transportation of people from their place of dwelling to the place of learning. E-learning enables learning to be delivered on your desktop or even your mobile thus avoiding a whole lot of logistics exercise associated with classroom learning. E-learning is an approach to facilitate and enhance learning based on computer and communication technologies.
BARRIERS TO E-LEARNING
E-Learning emerged in late 1990s and has grown significantly since then. However the success of E-learning has been mostly limited to the developed countries. In rest of the world E-learning is yet to succeed. The barriers to success of e-learning are as follows: Language barriers: Most of E-learning content is developed for a particular audience, hence the language & accent is usually in English. E-learning content has to be localized to account for local languages. Mindset barriers: For many people, learning has to be face-to-face i.e., person to person contact is essential. Elearning is seen as too synthetic and impersonal. The general perception is that e-learning is not true learning. Lack of awareness of available online courses also hampers success of e learning. Cultural barriers: They arise due to the differences in Learning style or preferences. Cultural problems concerning credibility of e-learning. Different people have different attitude towards e-learning and some fear lack of credit or certification after completion Time barrier: Time management problems occur due to different time zones across the globe. Interactivity barriers: They arise because there is lack of communication between the participants of an e-learning group. Interpersonal barriers also arise as the e-learning content not always audience-specific Other technical problems include Limited online course availability, Registration system problems, Connectivity problems, Navigation problems, Limitations of technical support. Bandwidth problems: They arise due to limited bandwidth availability in certain areas. It may also lead to loss of data and inability to save or transfer data
RESOLUTION OF BARRIERS TO E- LEARNING

Advances in hardware technologies, open source software and ease of communication have made it possible for a wide range of people to own a computer system at reasonable price. Most of the computer users have a high speed Internet access that keeps them connected to the world. The availability of both computer and communication technology has enabled the shift to e-learning for both formal and informal education across the world as a way to provide higher education for a wide range of people at an affordable cost. E-learning offers a mechanism to overcome these barriers of access and mobility by providing convenient and safe access to education. The real impact that ELearning on education and training has been achieved through use of online technologies especially the ones promoted by Web 2.0 over the cloud platforms to support both asynchronous (self-paced) and synchronous (collaborative) learning. Asynchronous learning is the self-paced learning occurring at different times as per the convenience of the learner. Self-managing learning environments are preferred by adult learners as they offer the facility of making curriculum available 24/7. The learning content is in the form of recorded live events and online documents. Though this mode of learning does not provide direct interaction between the teacher and the student, the technologies like person-to-person contact through email, threaded discussion, phone and video make the scenario better and more interactive. Synchronous learning is the real-time learning that brings the instructor and student together at the same time in a live event. Synchronous learning involves social learning principles and dynamics, whether the interaction is one-one, one-to-many, or many-to-many. The synchronous learning uses the tools provided by Web 2.0 such as the virtual classrooms, teleconferencing, chat rooms and instant messaging.

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The concept of the "classroom" has been expanded and transformed by new modes of e learning. Today a classroom can be physical, virtual or both. E-Learning makes possible new modes of learning that overcome distance barriers and logistical costs providing dramatic economic savings. Because the internet is global, our classrooms can now be global.
ROLE OF CLOUD COMPUTING

By creatively pushing the limits of cloud computing, we can create highly engaging e-learning environments that enhance the learning experience of the users. The potential and efficiency of using Cloud Computing in higher education has been recognized by many universities throughout the world. Cloud Computing offers to universities the possibility of concentrating more on teaching and research activities rather than on complex IT configuration and software systems. In addition, cloud solutions can be used to support cooperative learning and socially oriented theories of learning, using computer technologies to support collaborative methods of instruction. Cloud computing offers many benefits to e-learning solutions by providing the infrastructure, platform and educational services directly through cloud providers and by using virtualization, centralized data storage and facilities for data access monitoring. Cloud computing provides much more than the services and infrastructure. It makes the hard disk of client machines almost redundant as all the data storage occurs on the servers. The client machine only needs the processor, RAM and Internet connection. Reducing the hard disk usage provides multiple advantages. It reduces the cost of production of the client system and increases the lifespan of the computer as the processor and RAM can be used for a much longer time. Its only the hard disk that needs constant replacement, thus adding to the wastes produced. Since the number of clients is much larger than the number of servers, reducing the hard disks in clients helps in reducing the impact of computer hardware wastes on the environment. Also the systems without hard disks that use the services of cloud computing consume much less power and emit much lesser heat, and this directly helps in greener environments and sustainable development. The role that cloud computing can play in making e-learning successful can be seen by various tools for learning supported by cloud computing in the next section. One specific strategy called blended learning combines the best features of the traditional classroom with the power of the Internet and e-learning. Providing enhanced blended learning opportunities throughout higher education can contribute to the goal of achieving sustainable growth in a globalized economy.
WEB 2.0 TOOLS THAT SUPPORT GREEN LEARNING

Cloud computing has given birth to Web 2.0. Web 2.0 is an umbrella term for a host of recent internet applications such as social networking, wikis, folksonomies, virtual societies, blogging, multiplayer online gaming and mash-ups. Whilst differing in form and function, all these applications share a common characteristic of supporting internet-based interaction between and within groups, which is why the term social software is often used to describe web 2.0 tools and services. The following tools of the Web 2.0 could be used in an educational context. Wikis: A wiki is a website constructed in such a way as to allow users to change content on the site. They enable every user to actively manipulate the content of a web page. When using sites like Wikipedia to convey learning content, the interaction of the user with the material can foster the learners motivation. In an ideal situation the community behind the wiki tries to make it as top-quality as possible. Wikis are used in Education to support collaborative work, to produce a course or study material in cooperation with all academic stakeholders such as lecturers and students and to distribute information to students. Blogs: The wiki is a way of constructing knowledge; a blog is a way of distributing news. There are one or several authors that produce entries about a topic and visitors can add comments. It is possible to subscribe in order to receive news via email or through RSS readers. A more recent development uses the blog as a way to deliver learning materials to a community. What make them interesting for learning purposes are the simple and approachable design as well as the possibility for the users to comment on every blog post. Some professors already maintain their own educational blogs and post new content as well as respond to the users' comments. Teachers have used blogs as an easy way to produce dynamic learning environments without previous knowledge of html. Students have used blogs as an alternative digital portfolio or as a learning log. Ultimately, blogs have been used as support for collaborative work. Video repositories: To share video clips at YouTube or some of the several sites that offer this service has become a welcome way to introduce audiovisual material in eLearning courses. Some specific web sites focus on instructional or educational videos, such as Teachertube, Our media, Sclipo, Expert village, Ubu films and EngageMedia. This has helped to solve technical or size-related problems in the distribution of audiovisual products for eLearning courses. While some eLearning institutions have included online video as a resource on their websites, some professors prefer to access public open resources via Stickam or UStream to distribute videos to their students in their distance lectures or coaching sessions. Shared documents and podcasts: Video clips are not the only kind of documents to share. Professors and students are used to accessing multimedia presentation, written documents and images, for example. As for the audiovisual perspective, podcasting is a different way of sharing audiovisual material. As opposed to YouTube or similar sites, in podcasting documents are downloaded on the client computer for a free use. There are also quality differences. Podcasts are audio files which are distributed to an audio enabled RSS reader like Apple's iTunes. Similar to blogs they started as personal diaries and are now being used for different purposes: from conveying news, to promotional uses and most recently education. There are foreign language tutorials and workshops for many different topics available. Apple started in 2007 to aggregate educational podcasts of American Universities under the name iTunes U. These include course lectures, language lessons and lab demonstrations. Podcasts share some characteristics with audio books as they make it possible to learn even while driving a car or cooking a meal. They have however the additional benefit of being free and often more up-to-date. For educational purposes, digital reusable learning objects repositories as well as the Open Courseware consortium or the Open Educational Resources initiative have become available. The methods of E-Learning 2.0 are promising but have not realized their full potential yet. Social networks: A social network is a collection of Web 2.0 technologies combined in such a way to help focus on the building of communities of people who share interests and activities, or who are interested in exploring the interests and activities of others. Participants in a social network usually engage in a variety of forms of communication and information sharing, which can include personal Web pages, blogs, and discussion groups. The current interest and popularity in Web 2.0 applications has led to the phenomenal popularity of social networking sites, such as MySpace and Facebook. Research shows that students these days spend at least some time on social networking sites in a week. Social networking places its focus on the learner and the interactions and provides a relatively informal space that allows learners to exercise their own thoughts, reflections, make their own connections.
CONCLUSION
If we go the green way for learning, we can make a huge contribution to sustainable development. Universities and Corporations benefit from learning through cloud by reduced infrastructure costs, lower software installation and training costs and increased speeds of analyzing and presenting data. Apart from being green through energy savings, it minimizes overhead costs (as courses are delivered on-demand), increases scalability across global branches (as courses are replicated on secure servers closest to the learner), and eliminates downtime during heavy usage (as learners are transferred seamlessly to a free server closest to them). Green Cloud Data Centers can be promoted to reduce data center energy consumption by locating them in cold regions, utilizing wind and solar power, employing low-loss direct current, and using tunnels and other underground sites with strong earthquake resistance and stable temperatures. Development is a process fueled by resources and it is imperative that much more be done to make certain that these can equitably meet present needs and also remain available for the development needs of generations to come. There are no easy solutions. There is, however, a considerable amount of consensus that the most successful approach will involve two key elements. The first of these is education. More people at all levels must be empowered to develop the values, attitudes and skills necessary to change behavior in regard to natural resource management. The second component is greater collaboration among key entities working to make a difference. Technology plays a vital role in achieving both these goals. Change cannot be brought about by any single organization no matter how large or well resourced. Every person has to understand and contribute their bit towards making a greener planet. In this research we found that we can utilize the services of the cloud computing for promoting green IT specifically the green learning.

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REFERENCES
[1] Creating & Connecting: Research and Guidelines on Online Social - and Educational Networking. NSBA (National School Boards Association), USA, November 2007. http://www.masternewmedia.org/learning_educational_technologies/social-networking/socialnetworking-in-education-survey-on-newgenerations-social-creative-and-interconnectedlifestyles-NSBA-20071109.htm Dillenbourg, Pierre (2000). Learning in the new millennium: Building new education strategies for schools. Workshop on Virtual Learning Environments presented at the Eclipsys User Network (EUN) conference. http://tecfa.unige.ch/tecfa/publicat/dil-papers-2/Dil.7.5.18.pdf Dillenbourg, Pierre (2000). Learning in the new millennium: Building new education strategies for schools. Workshop on Virtual Learning Environments presented at the Eclipsys User Network (EUN) conference. http://tecfa.unige.ch/tecfa/publicat/dil-papers-2/Dil.7.5.18.pdf green.wikia.com/wiki/Green_Computing http://search.ebscohost.com. John C. Butler, Is the Internet helping to create learning environments? Campus-Wide Information Systems, 17 (2), 2000, ISSN 1065-0741 John C. Butler, Is the Internet helping to create learning environments?Campus-Wide Information Systems, 17 (2), 2000, ISSN1065-0741 M G K Menon, Transformative Synthesis of Education and Information Technology (Address at the 12th convocation of IGNOU held at New Delhi on 3rd March 2001), University News, 39(27), 2-8 July, 2001, pp 13-17 MacEntee, V.M. and Wells, S.J. The use of technology to facilitate authentic Learning. Proceedings from 2005 Informing Science and IT Education conference. Flagstaff, Arizona, June 16-19, 2005. Mungania, P & Reio, T.G. Jr. If E-Learners get there, will they stay? The role of e-learning self-efficacy. Online Submission (2005). ERIC. 8 May 2007. ORegan, K., (2003), Emotion and e-learning, Journals of Asynchronous Learning Networks. OReilly, T. (2005). What is Web 2.0? Design Patterns and Business Models for the Next Generation of Software. http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html research.microsoft.com/pubs/78813/AJ18_EN.pdf Roffe, I., (2002), E-learning: engagement, enhancement and execution, Quality Assurance in Education. Rovai, A.P. & Jordan, H.M., (2004), Blended Learning and Sense of Community: A Comparative Analysis with Traditional and Fully Online Graduate Courses, International Review of Research in Open and Distance Learning. Sambrook, S., (2003), E-learning in Small Organizations, Education & Training. Schank, R.C., (2002), Designing World Class E-Learning, 1st edn. McGraw Hill, USA. SiangPaus New Century, 12 July.Evans, J.R. & Haase, I.M., (2001), Online business education in the twenty-first century: an analysis of potential target markets, Internet Research: Networking Applications and Policy. Teo, C. B., Chang, S. C. A., & Leng, R. G. K (2006). Pedagogy Considerations for E-learning. Retrieved 10 Oct 2008 from http://www.itdl.org/Journal/May_06/article01.htm The Art and Science of Teaching with Technology. (2008). Definition of Learning Environment. www.teach-nology.com/glossary/terms/1/ Tsai, S. & Machado, P., (2002),E-learning, On-line Learning, Web-based Learning, or Distance Learning: Unveiling the Ambiguity in Current terminology, ELearn Magazine, Association of Computing Machinery Twigg, C. A. (2003). Improving Learning and Reducing Costs: Lessons Learned from Round I of the Pew Grant Program in Course Redesign. Center for Academic Transformation, Rensselaer Polytechnic Institute. Toy: NY. Virtual Learning Environments. (2008, July 21). In Wikipedia, the free encyclopedia. http://en.wikipedia.org/wiki/History_of_virtual_learning_environments www.pc.ibm.com/europe/green/en/index.html
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WORK EXPERIENCE AND LENGTH OF WORKING HOURS ARE AFFECTING ON THE STRESS
DHANANJAY MANDLIK ASSOCIATE PROFESSOR SINHGAD BUSINESS SCHOOL PUNE DR. PARAG KALKAR DIRECTOR SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & COMPUTER APPLICATION KUSGAON
ABSTRACT
Any situation that puts us under pressure is technically "stressful". Stress is not necessarily unpleasant or harmful. When we are able to cope satisfactorily with the stress and find it to be positive in its effect, we tend to use other words - such as "stimulation" or "challenge". For the purpose of this introduction, we will use the term "stress" to mean the reaction we have to those pressures, which are harmful, unpleasant or disabling. Stress occurs when the pressures upon us exceed our resources to cope with those pressures. It follows, therefore, that we can attempt to tackle stress either by reducing the pressures or by increasing our coping resources, indeed, a combination of both strategies. Stress is the everyday impact on your body as you respond to the people, places and things in your life. Stress can be a negative thing that undermines health and capacity to function. But it can also be a positive, life energy force necessary to maintain vitality, creativity and a zest for life. Stress does not affect each of us in the same way. Everything you encounter in your daily living has an impact on you, positively or negatively, based on how you perceive and deal with each potentially challenging or stressful situation. The body undergoes a progressive series of responses that are first triggered by an external stimulus termed the stressor. The more prolonged and accelerating reactions produce an intense and severe disruption called strain. All of this moves the body away from homeostasis, the maintenance of equilibrium of the internal body functions in response to external changes. The study is based on 46 respondents of Pimpri Chinchwad Industrial Area.
KEYWORDS
Stimulation, Challenge, Stress, strain.
INTRODUCATION
EFFECTS ON HUMAN BODY basic concept in any study of stress is the acknowledgment of the link between what the brain says and the way the body behaves. This is known as the body-mind connection. The two are often inseparable and most studies on stress-related behavior emphasize the role of the brain and the biology of stress in great detail. The following are some essential terms needed to understand the basic concepts of stress behavior and how we can use the body to tackle stress. Pupils of the Eye: Enlarge to facilitate greater acuity to see danger and escape routes Brain: Increased blood flow, increased metabolism of glucose, focusing more intense, fatiguing thoughts Heart: Increased heart rate and vasospasm for risk of stroke and heart attack Lungs: Increased respiratory rate, dilation of bronchi, increased oxygen supply to enable rigorous physical response to attack Liver: Increased glucose production via gluconeogenesis which depletes energy reserve Muscles: Increased breakdown of glycogen to glucose for immediate energy, increased residual tension causing neurons behavior, irritability and discomfort Fat tissue: Increased breakdown of stored fat, more fatty acids in the bloodstream increasing heart disease risk Digestion: Increased acidity and decreased motility causing discomfort, possible constipation (at first) followed by diarrhea (if reaction is severe) Excretory: Neuron stimulation of the bladder producing the urge to urinate in spite of the fact that urine flow is reduced Lymph tissue: Increased release of T cells and natural killer cells depleting the reserves thus decreasing immune function Skin: Decreased blood flow causing cold hands/feet Sweat Glands: Increased sympathetic nervous response causes sweating and hyperhidrosis Salivary Glands: Decreased flow of saliva causing thicker, sticky, dry mouth "cotton mouth"
PSYCHOLOGICAL AND SOCIAL EFFECTS

The psychological effects of stress may be expressed in a variety of different ways, and involve changes in cognitive-perceptual function, emotion and behavior. Some of these changes may represent attempts to cope, including changes in health-related behaviors. There is evidence that some health-promoting behaviors, such as exercise and relaxation, sleep and good dietary habits, are impaired by the experience of stress, while other health-risk behaviors, such as smoking and drinking, are enhanced. Other behaviors, such as sexual behavior, which may be health-neutral, can also be impaired and that impairment becomes a secondary cause of stress. Similarly, increases in health-risk behaviors can also become secondary causes of stress if sustained. Particular reference may be made to psychological dependency on alcohol or smoking. Social behavior, and interpersonal relations, may be impaired by the experience of stress, possibly reflecting more fundamental psychological changes in, for example, irritability, attention span and memory. Stress-related impairments of social relations may both create secondary problems and reduce the availability of social support. Figure 1 shows the model for Psychological strain, job satisfaction, Organizational commitment and its impact.

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FIGURE 1: MODEL FOR PSYCHOLOGICAL STRAIN, JOB SATISFACTION, ORGANIZATIONAL COMMITMENT AND ITS IMPACT.
LITERATURE REVIEW
The aim of this paper is to review the focus of work stress. We also focus on literature which is related to the causes and impact of stress on working community and outcome of stress on the physical and mental health of people working in the business organizations and the copings strategies used by them. We looked into the literature that found through books, journals or research papers, reports and websites. The views and findings of various researchers and the organizations that have done extensive research on stress are compiled in this paper. Figure 2 shows the Generic psychosocial stress model. From Sauter and Swanson. FIGURE 2: GENERIC PSYCHOSOCIAL STRESS MODEL. FROM SAUTER AND SWANSON
RESEARCH DESIGN AND METHODOLOGY

AREA OF RESEARCH Pimpri Chinchwad Industrial Area is the research area which has changed the economy of Pune city & its surrounding. Pimpri Chinchwad having like Telco, Bajaj, Thermax, Alfa laval started operating there were good job opportunities. People shifted from their native places to this area for job, good pay package and good educational and environmental facilities to their family naturally it effect on stress. SAMPLING DESIGN: Universe : Industrial Area of Pimpri Chinchwad Munsipal Carporation Sampling Frame : 16 companies from above universe Sample Size : 46 Respondents TOOLS APPLIED The data collected from primary & secondary source will be analyzed by using statistical tools viz. percentage, average, deviations etc. The hypothesis will be tested with the help of statistical techniques. The following statistical tools were applied: 1. Percentage Analysis 2. Frequency Analysis SOFTWARE USED FOR ANALYSIS Microsoft Excel 2007 and SPSS were used for data analysis. PRIMARY DATA COLLECTION Primary data was collected through questionnaire method by distributing and collecting data from executives and managers of various large scale companies in Pimpri- Chinchwad Industrial Area. The questionnaires were distributed in the large scale organizations and then collected back after being filled up by managers.
OBJECTIVE OF THE STUDY

The study is based on following objectives Top management should formulate measurable and achievable objectives; communication level with managerial staff should be increased during the period of change within organization. The top management should revisit the schedules of work and try to increase the flexibility in timing after due discussion with Managers The managers who are sincere but need additional training to upgrade their performance be supported with required training. The stress is directly proportional to age factor To understand the role played by the organization in reducing managerial stress To discuss and suggest the ways to handle stress by organization.
HYPOTHESIS OF THE STUDY

Our interest is to understand the stress, especially in the context of the specific leading industrial belt of Asia. We wanted to explore whether there was any relationship between the personal attributes and the stress this hypothesis support the following sub hypothesis.

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1. Managers feel stressed irrespective of their Experience.
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ANALYSIS OF DATA
For this research paper data is collected from 46 respondents from the Pimpri Chinchwad Industrial area. The detailed statistics is as follows. TABLE 1: FREQUENCY OF THE DATA COLLECTION Designation Frequency Percent Valid Percent Valid AM 16 34.78 34.78 M 14 30.43 30.43 SM 13 28.26 28.26 AGM 3 6.52 6.52 Total 46 100.00 100.00
PARAMETERS FOR FINDING STRESS Following are parameters are selected for finding the stress for this research paper. Que1. Educational Qualification and Length of hours worked increase the stress Que2. Designation and a lack of supportive interaction increase the stress. Que3. Designation and Insufficient resources to do your job properly increase the stress. Que4. Education Qualification and many recent changes in working practices increase the stress. Que5. Education Qualification and Lack of communication within your organization increase the stress. Que6. Designation and Too much work to handle increase the stress. From the table 2 it is observe that almost all respondents has given sincere answers. TABLE 2: FREQUENCY AND STATISTICS OF THE DATA COLLECTION Que1 Que2 Que3 Que4 Que5 Que6 N Valid 46 44 46 45 46 46 Missing 0 2 0 1 0 0 Mean 2.4130 1.9091 2.3043 2.9778 2.2826 2.4783 Median 2.5000 2.0000 2.0000 3.0000 2.0000 2.0000 Mode 3.00 1.00 2.00 3.00 3.00 2.00 Minimum 1.00 1.00 1.00 1.00 1.00 1.00 Statistics of Educational Qualification and Length of hours worked increase the stress: 50% of respondents are in fever of the question where 50% are against the agreement Educational Qualification and Length of hours worked increase the stress. Frequency Percent Valid Percent Cumulative Percent Never 13 28.3 28.3 28.3 Occasionally 10 21.7 21.7 50.0 Very often 14 30.4 30.4 80.4 Always 9 19.6 19.6 100.0 Total 46 100.0 100.0 Statistics of Designation and a lack of supportive interaction increase the stress: 67.4% of respondents are in fever of the question where 32.4% are against the agreement Educational Qualification and Length of hours worked increase the stress. Valid Frequency 21 10 9 4 44 2 46 Percent 45.7 21.7 19.6 8.7 95.7 4.3 100.0 Valid Percent 47.7 22.7 20.5 9.1 100.0 Cumulative Percent 47.7 70.5 90.9 100.0
Valid
Missing Total
Never Occasionally Very often Always Total System

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Statistics of Designation and Insufficient resources to do your job properly increase the stress: 65.3% of respondents are in fever of the question where 36.7% are against the agreement Educational Qualification and Length of hours worked increase the stress. Frequency Percent Valid Percent Cumulative Percent Never 9 19.6 19.6 19.6 Occasionally 21 45.7 45.7 65.2 Very often 9 19.6 19.6 84.8 Always 7 15.2 15.2 100.0 Total 46 100.0 100.0 Statistics of Education Qualification and many recent changes in working practices increase the stress: 26.1% of respondents are in fever of the question where 73.9% are against the agreement Education Qualification and many recent changes in working practices increase the stress. Valid Frequency Percent Valid Percent Cumulative Percent 4 8.7 8.9 8.9 8 17.4 17.8 26.7 18 39.1 40.0 66.7 15 32.6 33.3 100.0 45 97.8 100.0 Missing 1 2.2 Total 46 100.0 Statistics of Education Qualification and Lack of communication within your organization increase the stress: 56.5% of respondents are in fever of the question where 43.5% are against the agreement Education Qualification and Lack of communication within your organization increase the stress. Valid Never Occasionally Very often Always Total System Frequency Percent Valid Percent Cumulative Percent Never 8 17.4 17.4 17.4 Occasionally 18 39.1 39.1 56.5 Very often 19 41.3 41.3 97.8 Always 1 2.2 2.2 100.0 Total 46 100.0 100.0 Statistics of Designation and Too much work to handle increase the stress: 52.2% of respondents are in fever of the question where 47.8% are against the agreement Designation and Too much work to handle increase the stress. Valid Frequency 7 17 15 7 46 Percent 15.2 37.0 32.6 15.2 100.0 Valid Percent 15.2 37.0 32.6 15.2 100.0 Cumulative Percent 15.2 52.2 84.8 100.0
Valid
Never Occasionally Very often Always Total
FINDINGS AND OBSERVATIONS

The investigators found four conditions which were consistently cited as substantial workplace stressors: Poor communication with and by management Increased workload Job insecurity and lack of career opportunities Organizational change / restructuring Perceived stress at work was associated with reports of exposure to potentially stressful work characteristics including long hours, lack of support, and high noise levels. Stress levels outside work were lower although 10% reported high stress levels outside of work. Overall those surveyed reported quite good health however, high levels of physical symptoms and mental ill health were reported by those with high stress levels at work. 23% of the sample reported that they had experienced an illness caused or made worse by work in the last 12 months. Job satisfaction in academic staff was low, relative to other occupational groups, but average in general staff. Most academic staff was dissatisfied with five aspects of their job: university management, hours of work, industrial relations, chance of promotion, rate of pay. In contrast, most general staff reported dissatisfaction with only one aspect of their job, chance of promotion. Psychological strain was highest and job satisfaction lowest among Level B and C academics (Lecturers and Senior Lecturers), particularly those working in the Humanities and Social Studies. More than 30% of academics reported working more than 55 hours per week. Trust in senior management and perceptions of procedural fairness, (both predictors of job satisfaction) were both low.
SCOPE FOR FARTHER RESEARCH

Following are the some of the scopes for father research: 1. There is need to examine relevant cases on workplace stress and its implications for the organization; and the necessary steps to be taken and reviewed periodically and scientifically on stress problems faced by Managers. 2. The acceptability of work stress by Indian organizations as a problem and coping strategies followed by the industries. 3. Calculation of work stress component and its impact on profitability and growth of organization.
BIBLIOGRAPHY
2. 3. 4. 5. 6. Cooper, Cary L., and Smith, Michael J. Job Stress and Blue Collar Work. John Wiley and Sons Publishing. New York, New York, 1985 Cox T. Stress Research and Stress Management: Putting Theory to Work, CRR61. London: Health and Safety Executive, 1993. COX, T. & COX, S. (1993). Psychosocial and Organisational Hazards: Control and Monitoring in the Workplace. European Occupational Health Series No. 5. Copenhagen: World Health Organisation. Encyclopaedia of Occupational Health and Safety Sauter S, Hurrell J, Murphy L, Levi L [1997]. Psychosocial and organizational factors. In: Stellman J, ed. Encyclopaedia of Occupational Health and Safety. Vol. 1. Geneva, Switzerland: International Labour Office, pp. 34.1-34.77. Health and Safety Executive, 5 Steps to Risk Assessment, INDG163 (rev). Sudbury: HSE, 1998.

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AN EMPIRICAL INVESTIGATION INTO MANAGEMENT PRACTICES OF ACADEMIC LEADERS IN MANAGEMENT COLLEGES

SWAPNIL PRAMOD MACKASARE ASST. PROFESSOR DKTE SOCIETYS TEXTILE & ENGINEERING INSTITUTE RAJWADA DR. UMESH VINAYAK ARVINDEKAR DIRECTOR INSTITUTE OF MANAGEMENT DKTE INSTITUTE OF MANAGEMENT KALAWANT MALA
ABSTRACT
With an increasing number of mushrooming post graduate management institutions, there has been a growing concern on retaining the quality of higher education in India. There have been quite few institutions that have strived hard to attain academic excellence, though most of them still have been struggling to attain it. Among a few successful institutions, Icfai National Colleges were found to establish such kind of an academic excellence with regard to major academic activities, with a sturdy blend of an indispensable academic culture and practices that have actually contributed to the institutions success. This paper highlights some of the exuberant leadership styles practiced and their relationship with regard to overall institutional effectiveness. These leadership styles were studied with regard to eight different academic factors, with the leadership effectiveness being determined for each academic factor. The findings of the present study are an eye-opener for improving conventional academic practices led by other management institutions.
KEYWORDS
Leadership in Higher Education, INC, Transformational leadership.
INTRODUCTION
he National Knowledge Commission (2006) in its report on higher education has clearly stated the future challenges for higher education in India. The report admits the declining academic standards in the Indian higher education. Some of the problems of the Indian higher education include an ungainly affiliating system, inflexible academic structure, eroding autonomy of academic institutions, poor accreditation systems with low coverage and no consequences. Moreover, with the increasing number of private management institutions, higher education in India could only maintain a very small base of quality institutions. In order to determine the effectiveness of the leadership styles at such institutions the present research was undertaken at different private post graduate management institutions. There has been a significant contribution to leadership in higher education. The relationship between leadership styles and performance in higher education was carried out to find possible correlations; this study explored any relationship between chief enrolment managers (CEMs) with transactional, transformational or laissez faire leadership styles with effective and non-effective annual institutional enrolment performance. The results of this research study did not indicate a statistically significant, positive or negative relation between CEM transactional, transformational, or laissez faire leadership styles and institutional enrolment performance. The implications of this research study were null (Dutschke, 2005). An empirical research evaluated the leadership style of enrolment managers employed at postsecondary institutions in the southern United States. Enrolment management seeks to influence enrolment by analyzing and monitoring the size and characteristics of the student body. Enrolment managers coordinate numerous functions associated with recruiting, retaining, funding, and tracking students. Individuals who supervised both the undergraduate admissions office and student financial aid office were included in the study. Participants completed the Multifactor Leadership Questionnaire (MLQ) Form 5X Short (Revised), developed by Antonakis et al., (2003), and were categorized as having either transactional leadership style or transformational leadership style (Hughes, 2005). An examination of leadership styles of head teachers was carried out at public secondary schools with its impact on academic achievement. The study delimited the scope to three leadership styles; autocratic, democratic and laissez faire at secondary level of education. The study used a total of 288 secondary schools and higher secondary schools, and a maximum of 10 secondary teachers and 20 secondary students randomly selected from each school as a sample. Pearsons correlation coefficient was used to analyze and find out the value of relationship between leadership style and academic achievement and stepwise regression analysis was used to analyze the differential impact of leadership style and academic achievement. Results of the study concluded that the leadership styles influenced the education process in producing an academic environment. The democratic style showed positive response, followed by autocratic style but the laissez faire style was found to be ineffective (Muhammad et al., 2010). Foundational descriptive quantitative studies examined leadership styles and traits of higher distance education leaders at the post secondary level. Participants were subjected to the Multifactor Leadership Questionnaire (MLQ), the questionnaire further assessed leadership outcomes scaled as extra effort, effectiveness and satisfaction. Additional statistical significance established positive correlates between age and effectiveness and a negative correlate was observed between age and active management by exception. Also the level of position in the organization and reporting line of the distance education leader made a difference in the leadership style (Schrenk, 2011). Another empirical study was conducted on assessment of leadership styles of managers in a selection of state owned enterprises (SOEs) and private enterprises (PEs) which solicited responses from selected managers at different levels. Statistical tools like T test, coefficient of correlation and other descriptive statistics scores have been used to quantify qualitative variables of the leadership styles, performance and satisfaction. Results stated that the level of performance of followers and satisfaction levels of followers and leaders of higher order in PEs than SOEs (Subba Rao et al., 2008). Research studies have been carried out to investigate preferred leadership style of academics in Malaysian public higher education institutions. Results of the study revealed that respondents indicated high preference for both transactional and transformational leadership styles while laissez faire leadership was the least preferred style (Voon Mung Ling et al., 2009). With regard to ethics and institutionalization a correlational study determining the relationship between leadership styles in higher education and the institutionalization of ethics was conducted. The study included a stratified random sample of 400 from over 11000 employed faculty at institutions of higher education within the University System of Georgia (USG). The results of the study indicated that a relationship existed between leadership styles and ethics institutionalization (Floyd, 2010). Muhammad et al., (2009) research focused on factors influencing decision making quality of higher education leaders, with the leadership styles, decision styles, managerial processes and competitive intensity relationships. The methodology opted for the study made effective use of the concurrent triangulation strategy with qualitative and quantitative analysis, with two different methods for confirmation, cross validation and corroboration of the findings. The analysis depicted

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that the leaders/decision makers who use a hierarchic decision style, transformational leadership style or transactional leadership style will lead to quality decision making. Distributed Leadership (Gronn, 2002) - is a strongly emergent theme in the educational leadership literature, as well as in the official discourse of the sector, as represented by the National College for School Leadership (Southworth, 2002). It is underpinned by a widespread sense of shared ownership of decisions, based on the exercise of leadership at all levels within the organization, and is reflected in an increasing number of co-ordinator, lead practitioner and education improvement group roles within the teaching staff. Though normative, this model is largely based on school effectiveness and discuses school leadership. The instructional model (Sawbridge, 2000) casts the leader with the primary focus of leadership work being the development of behaviours in teachers that directly influence their relationships with students through planning and delivery of teaching and learning. Although, there were several conceptualizations of the model, the most frequently discussed features include the direct involvement of the principal in developing, co-ordinating and controlling the curriculum. The conceptualization of instructional leadership perhaps the most widely found proposes three elements to the construct namely, defining the schools mission, managing the instructional program, and promoting a positive learning climate within the school. Implicit in all of these conceptualizations of the model, which is largely schools-based, is the presumption that most head teachers are also ex-teachers themselves and so their own teaching experience and expertise is drawn upon in supporting staff in improving their own practices, and in monitoring the quality and effectiveness of the learning delivery. Instructional leadership reinforces a hierarchical structure, and is often categorized as a kind of transactional leadership (Hallinger, 2000). Increasing organizational competitiveness and the need for the most effective use of human resources have led writers and researchers to study Transformational Leadership. These writers and researchers argued that transformational leadership is both desirable and necessary in competitive environments, and requires organizations to be capable of fast, radical change and those aspiring to be the best must be able to lead change rather than just follow it (Mullins, 1999). Though most researchers have made a significant contribution to leadership styles in higher education, there is little evidence of research on leadership styles in post graduate management institutions in India. Moreover, with the nature of problems encountered at professional management institutions in the Indian context, the present study used a method to determine the leadership styles and the leaders effectiveness with regard to the institutional performance at these professional management institutions in higher education.
HIGHER EDUCATION IN INDIA

There are different types of universities and colleges in the Indian higher education. The universities are of unitary type with single or multiple campuses or of affiliating type. The concept of an affiliating university is unique to South Asia where colleges affiliate to university. These colleges award the degree of the university to which they are affiliated with. The higher education in India covers all post secondary education beyond class twelve in different disciplines including professional streams that includes engineering and technology, medicine, pharmacy, etc. It comprises of three levels Bachelors or undergraduate degree programs, Masters or Post graduate degree programs, and Doctoral programs (ICRIER, 2006). The research on leadership in the Indian higher education has been at its lowest ebb. Therefore, the need to study leadership styles in higher education was considered in the present study. The principles derived from the Transformational leadership (Bass et al., 2005) theory are fundamental to effective leadership and are widely applicable to many segments of life, ranging from work to family to sport, classroom and importantly to issues of social change. Further, with the transformational leadership perspective, this study was specifically undertaken for determining leadership styles at post graduate management colleges with two different clusters (Mackasare, 2010). Another significant reason to conduct the research at such institutions was a sudden growth of professional colleges and institutions after 2000 according to the gross enrolment ratio (GER) as stated in ICRIER (2006). One of the clusters was the Institute of Chartered and Financial Analysts of India, ICFAI National Colleges (INCs), a part of the ICFAI University Dehradun, which was established in the year 2003. A significant reason to carry out the intended study at INCs was their exceptional growth and academic consistency in achieving academic excellence in the past few years. The present paper explored existing leadership styles at 48 INCs in order to understand the leadership effectiveness at these Indian Management institutions and the relationship of the leadership styles with overall institutional effectiveness. Various parameters related to academic leadership in the context of professional management institutions were identified and are based on the lines of qualitative factors with reference to the National Knowledge Commission report (2006) with regard to higher education in India. The effectiveness of leadership styles with relation to some of the important academic factors was studied. It was expected that the conclusion of this study would help in determining the actual leadership effectiveness and its contribution to the institutional performance.
METHODOLOGY
The primary data required for the study were obtained by using the multifactor leadership questionnaire (MLQ) (Antonakis et al., 2003). The inventory is based on declarative questions with 5 choice Likert scale with responses ranging from Not at all - 1, Sometimes - 2, Once in a while - 3, fairly often - 4, frequently if not always - 5 (Likert, 1939). This inventory consists of 21 items with 3 questions on a single factor. The respondent is supposed to respond with any one option which suits his/her leadership style. ACADEMIC FACTORS PERFORMANCE INDICATORS (AFPI) Another schedule was designed on the basis of the issues discussed in the report of the National Knowledge Commission (2006). These data were obtained from secondary sources like institutional websites, University websites, mails, telephonic conversations, and personal interviews, with the concerned administrative personnel and student feedbacks. This inventory used for collecting the secondary data, contained eight items related to academic efficiency. The inventory was used to collect information from individual institutions along with the leaders feedback. For the present study, eight important academic variables viz., number of admissions, number of placements, academic results, student attendance, timely salary payments to faculty and staff, infrastructure, computerization, and faculty to student ratio, were used for calculating the overall organizational performance and the leadership styles associated with each factor. The scores of AFPI for each academic factor considered in the present study have been correlated with the scores of the multifactor leadership questionnaire thus reflecting the leadership style effectiveness with regard to each academic factor. To find To find out the coefficient of correlation between the projected leadership styles (scores of MLQ) and academic factors (scores obtained from the AFPI), Karl Pearsons coefficient of correlation (r) was used, and for the testing of hypotheses related to the coefficient of correlation thet test is used. CODING BETWEEN MLQ AND BLAKE AND MOUTONS LEADERSHIP GRID TABLE 1: AFPI RANGES AND THE CORRESPONDING LEADERSHIP STYLES Transformational Leadership elements (MLQ) Leadership grid styles II+IM+IS Team leadership (9, 9) MBE (A) + CR Authority-compliance (9, 1) IC Middle of the road (5, 5) MBE (P) + LZ Country Club (1, 9) LZ Impoverished (1, 1)
Sr.no 1 2 3 4 5
AFPI Ranges 80-100 % 60-80% 40-60% 20-40% 10-20%
The first three elements of the transformational leadership show a high resemblance with team leadership (9, 9) on the leadership grid (Blake & Mouton, 1964). Since idealized influence, intellectual stimulation, and inspirational motivation reflect the charismatic attributes of the leaders, the total scores of these elements together was used as the first variable, i.e., (9, 9) leadership style = II + IM +IS. The next best leadership style on the grid was (9, 1) leadership style or the authority-compliance leadership style, with such leaders giving more importance to task and less to people. This was similar to the leadership element of management by exception (A) with contingent reward, since management by exception particularly considers setting priority tasks and accomplishment of the tasks, and rewards for individuals only on the accomplishment of the assigned tasks. Thus, (9, 1) leadership style = scores of MBE (A) + scores of CR. The (5, 5) or

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middle of the road leadership shows a 50% concern for tasks and 50% for people. The leadership element individualized consideration was combined with this style of leadership, since it gives priority or pays attention to a few people and the tasks associated with certain individuals and not all of them. Thus, the third variable was formed as (5, 5) leadership style = scores of Individualized consideration. The (1, 9) leadership also called as country club leadership is known for having a high concern for people and low concern for tasks (Blake & Mouton, 1964). For the same reason it has been associated with MBE (P) management by exception (passive) and the laissez faire element. The MBE (P) reveals about setting important tasks or finding solutions to problems only after encountering with problems without a pre-plan of setting important plans and tasks. The laissez faire element also corresponds to the non-participation of a leader in taking important decisions (Lewin et al., 1939). Hence, the (1, 9) leadership style = scores of MBE (P) + scores of Laissez Faire (Lzf) The (1, 1) leadership or impoverished leadership shows a low concern for people as well as the tasks. The laissez faire was the only element that could be associated with the impoverished leadership. Thus, the (1, 1) leadership style= scores of Lzf. SAMPLE SELECTION The Institute of Chartered and Financial Analysts of India (ICFAI) was established in the year 1984 with only the CFA course in the inception. ICFAI University is a private university recognized by the University Grants Commission under sec 2(f) of the UGC Act 1956. The MBA course was started in the year 1995 in ICFAI Business School (IBS). In the year 2003 ICFAI established 7 ICFAI National Colleges in Andhra Pradesh, India. In a very short span of 3 years ICFAI National Colleges (INCs) were spread across the country with 155 institutions established at different locations in India. As compared to other private management institutions, INCs were found to be more consistent with academic practices, relevance of the syllabi, and the development of industry-academia linkages. These salient features of INCs made it a professional brand and a favourable destination for pursuing professional management education. Since the investigator himself had served as a faculty member in ICFAI Academy, it was quite convenient to collect the data and moreover the academic culture of ICFAI being completely different than other private management institutions, INC was thought to be an ideal sample in the present study. An attempt was made to cover all 155 colleges of Institute of Chartered Financial Analysts Academy. The leadership questionnaire and the AFPI were mailed to the designated Campus Heads, after due permission from the concerned authorities. It was not possible to meet all INC academic leaders personally due to geographical spread, the nonavailability of the respondents and paucity of time; therefore the leaders were contacted telephonically as well as through mail. DATA COLLECTION All the leaders were provided with the full description of the study under consideration, its scope and purpose. After a constant follow up through telephones and mails, a total of 48 out of 155 respondents provided their feedback. List of different INCs along with the contact persons, emails, phone numbers, and cell phone numbers was obtained from the ICFAI HRIS database. These data were verified with appropriate administrative authorities at the respective INCs. The data were cross checked and verified after an interaction with the administrative authorities and feedback obtained from students at the institutions with regard to number of faculty, percentage of attendance for the third and fourth semesters and results of final semesters thus ensuring the reliability of the data collected.
RESULTS
Out of 48 INCs, only 3 leadership styles with (9, 9), (9, 1) and (5, 5) were observed with regard to different academic activities quoted in the AFPI and the MLQ for each factor, in contrast to another research study of post graduate management institutions where five different leadership styles were practiced. (Mackasare, 2010). It was also noticed that the leadership styles derived from the administration MLQ were independent of leadership practiced with respect to eight different tasks performed at these colleges. Based on the findings of the present study it was observed that all the leadership styles showed a positive relationship with eight academic factors considered in the present study. As per the values obtained from the MLQ and the scores of AFPI, the (9, 9) and (9, 1) leadership styles were found to show a dominance. The (9, 9) leadership style depicted the leaders charismatic role in influencing, motivating and intellectually stimulating the team members and staff where all the team members including the faculty, the non-teaching staff and administrative staff had a high level of motivation to perform tasks associated with academic and administrative activities. Another exuberant attribute of the (9, 9) leaders was a perfect delegation of responsibilities to team members who possessed the requisite competencies to perform such tasks. Moreover, it was also evident that the (9, 9) leaders would develop the team members by assigning exigent tasks, thus providing the members with a scope to be more creative in analysing problems and providing effective solutions. The (9, 9) leadership style was effective in developing a proactive attitude within the team members and staff thus, ensuring the successful completion of all academic activities. In the present context the (9, 9) leadership style was found effective with academic factors: admissions, job placements, and student attendance. TABLE 2: LEADERSHIP STYLES AND EFFECTIVENESS WITH REGARD TO EIGHT ACADEMIC FACTORS SrNo Academic factors Coefficent of Correlation (r) d. f. (n-2) Calculated t (t) Table Value Significance 1 Admissions (9, 9) 0.907 27 11.191 2.052 Significant 2 Placements (9, 9) 0.877 26 9.307 2.056 Significant 3 Results (9, 1) 0.814 22 6.573 2.074 Significant 4 Attendance (9, 9) 0.757 17 4.777 2.110 Significant 5 Payments NA NA NA NA NA 6 Infrastructure (9, 1) 0.670 26 4.602 2.056 Significant 7 Computerization (9, 1) 0.836 27 7.916 2.052 Significant 8 Faculty: Student (9, 1) 0.808 26 6.993 2.056 Significant (Significance at t > t0 0.05) showing significant relationship between the leadership styles and the academic factors. 1. ADMISSIONS The term admission refers to the total number of intake of students in an institution. Most private management institutions struggle hard to complete the intake of the allotted management seats, which according the AICTE norms is 60 seats. There have been instances where the seats have been vacant at some management institutions according to another research conducted on private post graduate management institutions (Mackasare, 2010). In case of other private management institutions, the entire admissions process is governed by apex bodies like the AICTE and DTE, where the leaders at institutional level have a negligible role to play. However at INCs the entire admissions process was handled in a different manner. INCs were found to excel in the completion of 100 percent admissions at these institutes. After having explored the reasons for such an accomplishment it was found that these team leaders were extremely motivating with good interpersonal communication and dexterity among the team members and faculty. Another peculiar feature was observed in these institutes, all these institutes had a separate marketing team for actualizing 100 percent admissions. INC was found to have marketing and brand building executives who were responsible in generating admissions by counselling graduates. Several faculty members were found to conduct brand development activities with topics like Career Planning, Personality Development, Stress Management, Presentation skills, Interview skills at different UG colleges in the vicinity which even included some engineering colleges. One of the respondents also conducted a faculty development workshop on for UG faculty. More importantly, at all INCs, a merit rating system has been implemented where the individual colleges take special efforts right from admissions to recruitment of faculty. The most striking feature in INC admission procedures was selecting students with a meritorious record, with this regard INC has developed merit scholarships with fee concessions as follows: 60% to 70% for male students 35% of fees, 60% to 70% for female students, >70% male students with 50% of fees, > 70% female students with 60% of the fees. INC has also designed a lucrative incentive system for the first 100 admissions; this incentive system has been a good motivator for the INC team members to contribute to 100% admissions at individual institutions. This clearly shows the effort of the academic leaders with regard to admissions and proves that there is a significant relationship between leadership at the institutional level and the admission process at the respective colleges. The (9, 9) leadership style shows

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high concern for people and high concern for task as well, the leadership elements associated with this leadership style i.e., idealized influence, inspirational motivation, intellectual stimulation clearly elucidated the charismatic traits of the (9, 9) leaders at INC management colleges with regard to the admissions. Moreover, it was also observed that all the (9, 9) leaders were able to create an environment where, there has been more positive reinforcement to the team members for successful accomplishments of all tasks related to the admission process. Though, there have been adequate admissions at other private management institutions yet, the procedure for handling all admissions related activities was quite unique in INC. To a great extent INC had developed a unique academic culture which was found favourable with the leadership at these institutions which clearly shows the difference between other private management institutions and INC with regard to admissions. 2. JOB PLACEMENTS A major challenge for most private management institutions in the Indian context is the employability of students in the best industry with good pay packages before completion of the MBA program. The placement program at INC has been uniquely designed for all INCs across different states. The placements have been categorized at three different levels a. NATIONAL LEVEL: At INC head quarters Hyderabad, some of the best students who have surpassed the highest benchmarks from different INC institutes, qualify at the national level. All the students from this group have had the best lucrative pay packages. It is quite obvious that only those students with a high aptitude, sound conceptual knowledge and a consistent academic record had qualified for national level placements. INC proudly announced their names with the details of the company and the package they obtain on their all India web site, as well as the individual institutional placement brochure. Generally, 10% from all India INCs qualify for this level since it has been regarded to have the toughest standards. b. Regional Level: Regional placements are targeted at metros/cosmos and district places. INC has its regional offices in different states; which have a systematized data of students comprising of academic consistency, Summer Internship Program (SIP) with details of the on-the-job training and achievements, Management Thesis, as well as the GD/PI scores during campus interviews. Thus, the performance of students is observed from time to time and depending on the progress that the student exhibits he/she gets selected at this particular level. The regional level placements were found to contribute 60% of the total students from various INC institutes in different states. c. Local Level: Local level placements are aimed at students who are average and above average level and also for few girl/lady students who were not allowed by their parents to go to metro cities are accommodated at this level. When enquired about the success of local placements, it was revealed by one of the regional heads, that individual INCs have been establishing industry-institute interfaces with diversified industries at district level. The local level placement attributes for 10-30% of the remaining students from different INCs. The (9, 9) leadership style was found to be inspirational, influential and motivating for all the team members associated with the tasks of placements. There has been an inbuilt lucrative reward/incentive system for faculty, marketing executives, and even the administrative personnel for accomplishments of all the tasks associated with placements. It has been observed that many educational institutions at higher education stand in isolation from the society and service sectors. As a matter of fact they are actually supposed to strive hard for significant connections with the user-agencies in their locality or elsewhere. INCs have been successful in establishing local industry contacts and linkages through summer internship programs and student placements in such industries. It would be even a better option to involve the industries in designing the course curriculum and structure. In order to help the learners gain practical corporate exposure, all INCs have identified opportunities with short term and long term assignments or live projects and on-the-job training. These efforts have not only developed practical insights within students but also developed a rapport and helped substantially in placements. Thus, with an excellent merit based system, INC has taken care of placing all the students either at the national, regional or local level, which actually happens to be the reason for 100% placements at all these institutions. All the (9, 9) leaders of INC were found to play a significant role by developing contacts with such employers or professional organizations giving the learners a significant opportunity to learn and develop. 3. ATTENDANCE There has been a growing concern for student attendance in the Indian higher education, especially at private management institutes showing a declining attendance trend at the IIIrd and IVth semesters of the MBA course. Though, the minimum statutory eligibility for attending the examination is 75%, yet it has been observed that neither the students nor the private management colleges take cognizance of this fact. In most of the colleges majority of the students do not attend lectures but are declared eligible for appearing examinations. This further deteriorates not only the students standards but the colleges as well. In order to understand what best practices do academic leaders resort to in order to maintain 100% attendance, this particular factor of student attendance was also considered with regard to the leadership at institutional level. It was interesting to observe what (9, 9) leaders did at their institutions in order to maintain the attendance standards at their institutions. The (9, 9) leaders were often found to upgrade their existing academic system and were also found to make consistent improvements in the qualitative aspect of education by giving appropriate training to the faculty in different domains. There was a collaborative teaching-learning process developed at these centres where the faculty was found to correlate the concepts and cases with his subjects. The delivery of the academic content and the subject matter was more refined and fine-tuned where one could call this as achieving academic excellence. This method of the (9, 9) leaders can be considered to be an innovative approach towards achieving academic excellence, where there has been constant benchmarking and upgrading of the academic system. Students at the institutions are found to learn maximum with greater practical insights and were found quite enthused in attending the lectures with significant less absenteeism. It was also observed that one such respondent did not allow 41 students out of a total of 104 students to attend examinations for subjects with low attendance at one of the INCs, owing to poor attendance in the first semester. Such kind of a practice was usually undertaken in the first semester, which was like a warning for students showing negligence with regard to the attendance standards. The (9, 9) leaders clearly communicated the disadvantages of non-compliance of the minimum attendance criteria, that would have an instant impact on the placements of such students. This clearly shows the uncompromised academic standards with regard to student attendance at INCs. The (9, 1) leadership style reflects two important leadership elements, management by exception (active) MBE (A) and contingent reward (CR). A major difference between (9, 9) and (9, 1) leadership style is the degree and magnitude of monitoring and controlling people and tasks. The (9, 1) leadership style considers setting priority tasks and evaluation of the accomplishments of these tasks. Further, (9, 1) leaders would only reward the team members on successful completion of the allotted tasks. An element of stringency is reflected from the (9, 1) leadership style with a primary focus on strict compliance of delegated responsibilities which is not observed with the (9, 9) leadership style. Though, even the (9, 1) leadership style showed a significant positive relation with academic factors: computerization, attendance, infrastructure and faculty: student ratio in the present study. 4. COMPUTERIZATION The term computerization refers to the technological advancements with introduction of digital libraries, e-learning methodologies with a well built commercial or internal/inbuilt reforming and governance system catering to the higher educational needs of the institutions. The track record of such use of sophisticated MIS packages for improving the governance at the private higher education institutions has been poor (ICRIER, 2006) pp115. However, it was observed that at INC has an excellent online centralized computerized packages for accounts, infrastructural facilities and asset management, weekly academic monitoring system and a human resource information system, examination (internal and external assessment) and results information system for with regard to the institutional governance. For improving the institutional governance, INC had a bouquet of such inbuilt online reporting systems like a. Weekly Academic Monitoring Systems (WAMS): An online reporting system giving the requisite details of weekly session plans for all the subjects, syllabus covered subject-wise student attendance, guest lectures, internal and external evaluation, faculty development workshops, industry-institution interaction and other important academic activities. b. Summer Internship Program (SIP): The most inimitable and distinguishing program devised by INC, which has tenure of 4 months for the summer interns in contrast to 50 days summer training in all Indian universities affiliated colleges. The program was deliberately undertaken only at metropolitan cities, to give a good exposure to students from district and rural places. Another feature of this program is that, it is a perfect blend of on-the-job training (OJT) as well as research (management thesis). Students have a definite marketing target with stipulations which were closely monitored by the company guides and faculty guides on weekly basis. There has been a good interaction between the faculty guides and company guides with regard to the progress of every

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student. The SIP portal is an online reporting system ensuring regular attendance of students and the details of on-the-job accomplishments of students. This system helped the students to be placed after completion of the second year. During internship students are found to be more confident, with an overall developed personality, eventually increasing their chances of employability. Most of them were found to have a pre-placement offer (PPOs) which is the greatest takeaway for INCs. c. Examination portal: Another online reporting system, through which details of the students internals and externals are compiled by the academic coordinators of all the INCs and all the necessary compliances were found to be done on semester basis. The examination at INCs was found to be a multiple choice question (MCQs) format, where the qualitative aspect is considered, unlike other conventional Indian university theory pattern which focuses more on the descriptive aspect. Such kind of an objective exam was found to be more reliable and applied than the conventional theory examinations. A proper record of maintenance of student academics and result analysis was possible with such a reporting system. d. Accounts and Asset Management System: It has been a practice in most of the private management institutions to manipulate and show different records of asset management when additional courses/seats are requested to regulatory authorities and scrutiny committees from the AICTE, University or NAAC. By doing this, such institutions increase the number of intake and get sanction however; the infrastructure and facilities remain unaltered. In contrast to this, at INCs there has been an online asset management system portal which contains a record of all the assets, and there is a periodic review of the assets distributed across various INCs. Along with the administrative authorities even the faculty is one of the asset management team members for audit and maintenance of assets. e. HRIS: A centralised Human Resource Information System gives details of employees starting from recruitment to exit interview, payslips, benefits, mediclaim, performance appraisal and Income Tax investment information. 5. ACADEMIC RESULTS The term results refer to the passing or failure percentage of students in the final semesters. The assessment of students is considered to be another important academic factor with different internal and external evaluation components as per the methodology which has been the same in most of the private management institutions. There have been many questions with regard to the reliability of these methods for courses in different disciplines. The (9, 1) leadership style was found to be significant with regard to the results factor at INCs, with the leadership elements of management by exception (A) and contingent reward as far as monitoring and controlling the academic results was concerned. The directors of these colleges were found to be very prompt on displaying the academic performance of every student regularly and influencing the students sentient about their deficiency in the concerned subjects. The (9 ,1) leaders also designed mentoring programs for students at their institutions, where each faculty member had the responsibility of 10-12 students, which shows the involvement of the faculty in the overall development of the students thus, making everyone employable. An interesting thing to be noted was that, the academic leaders addressed all the students on a weekly or a fortnightly basis on the agenda of improvement on academic grounds; proper counselling was done for students requiring a special attention with regard to some subjects. Wherever required the academic leaders called for experts from the industry by giving the best of their efforts for improving the subject knowledge of the students. At all INCs, it was mandatory to conduct guest lectures from industry every week for bestowing them with requisite practical insights at corporate world. The students at INC were made to realize that their academic consistency was a matter of concern when it comes to placing them into organizations. As a result of which, the examinations and internal assessments were undertaken seriously by all the students. The academic performance of the students already placed was found to be displayed on the notice boards with the overall and aggregate CGPA, and the companies they have been placed along with the salary package details. Examination assessment units have been established to have regular brainstorming for formulation of schemes, question banks, with a consistent and a standard percentage of internal and external evaluation and declaration of results. At INC, examinations are very innovatively formulated consisting of computer assisted assignments based on objective type questions, applied theory questions, numerical problems, case-lets and case studies. With such reliable standards of evaluation, students have been found to be competent to grab the best of opportunities with good pay packages which clearly shows a linkage with performance of the students. Moreover, the assessment systems and evaluation patterns in majority of the private institutions have been theoretical in nature, usually in the form of descriptive tests. However, at INC there exists special examination assessment unit which ensures appropriate assessment of students with multiple choice questions. The internal evaluation components of students were in terms of live projects, seminars on the latest topics, group activity and presentations. This scheme also envisages faculty members in colleges to decide the curriculum and conduct the evaluation of the students with more internal evaluation. This also proves the initiatives undertaken by the (9, 1) leaders showing significance with the results parameter as one of the key academic factors in the present study. 6. INFRASTRUCTURE The (9, 1) leadership style is associated with the leadership elements of management by exception and contingent rewards, which proves that these leaders have had a very high concern for tasks and the compliance of important academic tasks. The monitoring of utility of different resources and equipments like computers and e-labs and all the essential physical assets was recorded and maintained by the administrative personnel at individual institutional level. At some institutions along with the administrative staff even the faculty members were given a responsibility of monthly maintenance and audit of infrastructural facilities. As compared to (9, 9) leaders (9, 1) leaders were found to be better in terms of maintenance of important assets at the institutions, all (9, 1) leaders strictly followed the monthly internal audit processes and keep a track of the utility of important resources and equipments, which shows that (9, 1) leaders were good at maintaining the assets. The (9, 1) leaders were found to be good at availing and setting of new infrastructure mainly in the form of the standards that they were found to maintain with regard to adequate classrooms, libraries, seminar rooms, auditoriums. 7. FACULTY: STUDENT RATIO There has been a very serious concern for retaining talented faculty members at private management institutions. Faculty shortages have been one of the prominent problems either because of non-availability of suitable qualified persons or arising out of other financial reasons. Hence, faculty to student ratio of 1:15 is not observed in many private management institutions. At many private management institutions this parameter is not given due importance and is not treated as a very serious issue. On the other hand, at all INCs the recruitment of the faculty had been on a merit as well based on the industrial experience, the development of faculty also takes place from time to time with FDPs and workshops at appropriate time intervals. The appraisal of faculty was done on an annual basis based on the number of academic responsibilities handled, progress in research work and intellectual capital, where the incentives and pay packages the faculty members receive are commensurate with experience and on-the-job performance. The (9, 1) leadership style showed a positive response in maintaining and controlling the standard faculty: student ratio which is 1:15 as per the AICTE norms. The practice of collaborative learning methodologies developed at most of the INCs encouraged the faculty members to study and understand the subject domains apart from the ones they were specialized in, the (9, 1) leaders recruited faculty members on a merit basis where the faculty members did find an incentive to learn and grow at the institutional level. All the (9, 1) leaders were successful in creating good loyal employees at the institutions. 8. SALARY /MONTHLY PAYMENTS There have been 155 INCs across different states in India. All these institutes have been very prompt with regard to the payments of the faculty across different regions. The recruitment of the entire faculty staff has been done on a merit basis, initially during the first year it was difficult to get qualified faculty however, subsequently due to more payments and the brand itself, qualified faculty members were attracted and retained within INCs. At INC the salary of the entire faculty, non-teaching staff would be deposited on 30th/31st of every month very promptly with online payslips generated on the web based applications that INC had designed for each employee with a unique ID and password. In case, if there happens to be a holiday or a Sunday on any of the 30th, the salary would be deposited one day in advance. This promptness was seen at all INCs. Therefore leadership style with regard to this particular factor of payments did not matter, since every leader was a part of this system and there was no relation of payments and the INC leaders at individual institutes.

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DISCUSSION
Based on the findings of the present study it was observed from the leadership questionnaire values and the AFPI scores that there were two dominant leadership styles the (9, 9) and (9, 1). The (9, 9) leadership style was found to be favourable with academic factors admissions, job placements and attendance. The (9, 1) leadership style showed a positive response with academic factors like computerization, infrastructure, academic results and the faculty: student ratio. With the salary/payments factor at INCs, it was observed that the salary of the entire faculty, non-teaching staff would be deposited on 30th/31st of every month very promptly with online payslips generated on the web based applications. There was never any delay with regard to the monthly payments at all INCs. All academic activities from student admissions to recruitment of faculty were done on a merit basis. The placement program was categorized at 3 different levels with National Regional and Local level which was effective in placing not only the intelligent students but also the average and above average students with 100% placements at all INCs. The internal evaluation pattern was based on the case-studies, seminars, presentations, on-the-job training assignments with no scope for the students to show absenteeism, ensuring more than 90% of attendance with good results. All INCs had adequate infrastructure with modern teaching aids and equipments at all the institutes. As regards computerization for improving the institutional governance, INC had a bouquet of such inbuilt online reporting systems with weekly academic monitoring systems (WAMS), summer internship program (SIP), examination portal, accounts as well as asset management system and an HRIS which gave details of employees starting from recruitment to exit interviews, payslips, benefits, mediclaim, and Income Tax investment information. INCs have motivated and dedicated faculty members who undergo one month rigorous induction program on teaching methodology, and are apprised periodically on the basis of productive work with intellectual capital and publications in journals of repute. In India, the prevailing bureaucratic structure in the higher education system has been a primary impediment in the delivery of quality higher education. This bureaucratic system has restricted the growth and expansion of private institutions which are more promising and intended to deliver professional higher education. On the contrary, it has been observed that there are many institutions that are actually not complying with regulatory standards, with inadequate infrastructure, poor faculty-student ratios, yet are running smoothly. Moreover with political interventions in the system, this has led to the further deterioration of the quality of education. Many such institutions have the sheer intention of making profits rather than focusing on the enrichment of quality higher education. In short there has been a serious concern with regard to standardization in higher education. Many of the private institutions affiliated to universities have a conventional system, with a little or no change in the syllabus with lot of obsolete concepts; these institutions are also found to be isolated from the industry and society by and large. In case of politically led institutions, the recruitment of administrative staff and faculty is done on an influential basis (from their own constituencies) and not on merit. Even the percentage of qualified directors at such management institutions has been low. There are many directors who are not qualified but still functioning with the said designation. Same is the case with faculty; most of the faculty do not possess doctoral qualification yet they are continued on the same pay scales. Despite explicit AICTE norms such institutions are functioning and flourishing whereas institutions like INCs with a merit based system, right from recruitment of faculty to compliances related to other important administrative and academic activities like admissions, placements, monitoring of attendance, close tie-up and linkages with industry, adequate infrastructure, huge number of consultancy projects, and a relevant syllabus (with regard to the job market) with a keen intention of nurturing professionalism amongst students and major contributors in increasing the student employability, have to suffer on bureaucratic grounds of the higher education system in India. INCs became a victim of this bureaucratic system prevailing in higher education, where the Madras High court restricted INCs to conduct further admissions. Mackasare and Arvindekar (unpublished) study is an eye-opener for conventional private management institutions in the Indian higher education. With the present picture of private management institutions there is a need to simplify academic and administrative practices like the regularity of conducting internal audits, degree of computerization and procedures for timely and speedy curricula revision and introduction of new courses. There is a need to review and revisit the statutory provisions in this regard. Greater autonomy should be given to colleges to initiate curricula changes with checks and balances through supervision by expert and professional bodies. The performance criteria for appraising faculty members needs to be customized on the basis of scholarly articles and research work, within National/ International journal publications, which at present is rarely seen among private management institutions. Faculty can be motivated by lucrative rewards for pursuing research and consultancy along with the teaching, academic and administrative responsibilities. There is a need to develop a merit based system with regard to the faculty recruitment process, where only qualified and competent faculty should be given an opportunity with a constant periodic review of the progress. Even the placement program at management colleges needs to be designed on a merit basis which caters the employment need of not just the intelligent students but also average students. The incorporation of a soft-skills laboratory should be mandatory where proper grooming of students with a constant review of the student progress from semester I to semester IV must be constantly monitored. The existing dilapidated examination system with gullible learning needs to be revamped with the inclusion of incessant examination reforms focusing more on problem solving and analysis rather than the conventional descriptive tests. Like wise even the internal evaluation pattern should be revived with a greater focus given to presentations on live projects in the industry, seminars, paper presentations, general awareness quiz sessions, thematic tests. The external evaluation should be developed with grade systems with objective based questions on an analytical nature than the theoretical pattern. The basic infrastructural facilities were found to be fulfilled with majority of the management institutions, however after taking into consideration the number of actual programs/additional intake, the infrastructure appeared to be inadequate with the actual number of programs being run by institutions. Hereby a computerized asset management system needs to be developed, which can further be linked to statutory authorities for effective monitoring and controlling. Based on the findings of the present study it is suggested that a full-fledged computerized management support system should be monitored at the university level where all the affiliated colleges would be connected centrally with proper reporting and accountability, with a consistency in performing different academic activities, like the factors considered in the present study. Proper systems catering to the compliance of different academic activities should be brought into action which includes the details of weekly session plans, syllabus covered, weekly attendance, value addition including guest lectures and events organized during the week. An online portal can be developed to fulfil the requirements of the summer internship projects that actually monitor the student progress with a special regard to research as well as other on-the-job activities. An HRIS database can also be developed to include the information of all employees, job descriptions, and records from employee recruitment to the exit interviews, leave benefits, performance appraisal, gratuity, medi-claim, income tax and investment information. With an effective use of management support systems (MSS) management institutions can ensure timely academic task compliances with transparency and accountability. The study could have been extended to the primary and secondary institutions however it was not relevant in the higher education context, considering important academic factors included in the present study. In comparison to the sample size in the present study, findings could have been verified on a larger database. The present study has helped the researcher to study leadership styles at professional higher management educational system, and hence the design of the research instruments will suit only in the higher education environment. However with the inclusion of other factors, these inventories can be used in other industries and institutions with a proper alteration of the present factors. The emotional intelligence factor can also be studied with regard to leadership in higher education on similar lines. The present study can also be expanded globally with the inclusion of foreign universities with a comparative analysis of the Indian and foreign universities which would help in designing a gap-fit analysis mechanism, eliminating the existing flaws in the current higher educational system.
REFERENCES
BOOKS Bernard M. Bass & Ronald E. Riggio. (2005). Transformational Leadership, second edition, Mahwah, NJ: Lawrence Erlbaum Associates. Blake, R. and J. Mouton (1964). The managerial grid. Houston, Gulf Publishing.

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JOURNAL AND OTHER ARTICLES Antonakis, J., Avolio, B. & Sivasubramaniam, N. (2003) Context and Leadership: an examination of the nine-factor full-range leadership theory using the Multifactor Leadership Questionnaire Retrieved August 28, 2006. The Leadership Quarterly, 14, 261-295. Dutschke, J. (2005) Leadership styles and Performance in Higher Education: Is There a Correlation?, Dallas Baptist University. Floyd K, (2010) Leadership Styles, Ethics, Institutionalization, Ethical Work Climate and Employee Attitudes towards Information Technology Misuse in Higher Education: A Correlational Study, Graduate Faculty of Georgia Southern University, Statesboro, Georgia. Gronn, P. (2002). Distributed leadership. In K. Leithwood & P. Hallinger (Eds.), Second international handbook of educational leadership and administration (pp. 653696). Netherlands: Kluwer. Hallinger, P. (2000) A Review of Two Decades of Research on the Principalship using the Principal Instructional Management Rating Scale Paper presented at the annual meeting of the American Educational Research Association, Seattle, Washington. Hughes Tanya.,(2005) Identification of Leadership styles of Enrolment Management Professionals, in Post Secondary Institutions in Southern United States. Indian Council for Research on International Economic Relations (ICRIER) Higher Education in India- A need for change - Pawan Agarwal June 2006. Lewin et al., (1939). Patterns of aggressive behavior in experimentally created social climates Journal of Social Psychology: 271301. Likert. R (1932). A Technique for the Measurement of Attitudes, Archives of Psychology 140: 155. Mackasare. S., Arvindekar U.V.,(In Press), A Study of Academic Leadership Styles at Private Management Institutions-A Transformational Leadership Perspective, The FedUni Journal of Higher Education, The IUP Publications. Muhammad et al., (2009) Decision Making Quality of Higher Education Institutions in Malaysia: Leadership Styles, Decision Style, Managerial Process and Competitive Intensity Relationships. Muhammad et al.,(2010) Relationship between the leadership styles and academic achievement at the secondary stage in Punjab (Pakistan), International Journal of Academic research Vol.2, No.6, November 2010, Part II. Mullins, L.J. (1999), Management and Organisational Behaviour, 5th ed., Financial Times Pitman Publishing, London. National Accreditation and Assessment Council (1994). Sawbridge, S. (2000). Leadership in Further Education: A Review of the Literature, Learning and Skills Development Agency. Schrenk, R (2011) Comparison of Distance Education Leadership Styles and Future Investments in Two-Year Colleges, University of Montana, Missoula, Montana. Southworth, G. (2000). Think piece from NCSL. Times Educational Supplement. London. Subba Rao et al, (2008) Leadership Styles and their Contributions to Performance and Satisfaction of Leaders and Followers in State Owned and Private Enterprises in Papua New Guinea, Delhi Business Review, Vol.9, No.1. Voon Mung Ling et al, (2009) New Leadership , Leader-Member Exchange and Commitment to Change: The Case of Higher Education in Malaysia, Proceedings of World Academy of Science, Engineering and Technology Volume 41, ISSN: 2070-3740. ONLINE RESOURCES All India Council for Technical Education (AICTE) www.aicte-india.org Directorate of Technical Education (DTE) www.dte.org.in National Commission Report, viewed on December 15, 2011 http://knowledgecommission.gov.in UGC (Establishment and Maintenance of Institutions) Regulations, 1985- UGC Regulations /Notifications- Annexure B www.ugc.ac.in UNPUBLISHED DISSERTATION AND THESES Mackasare, (2010), Leadership in Higher Education with an Emphasis on Private Management Institutions and its Relation with Overall Organizational Effectiveness, A Ph. D. Dissertation, Shivaji University, Kolhapur (Maharashtra, India).

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USING NCDH SEARCH ALGORITHMS BLOCK MOTION ESTIMATION

R. KARTHIKEYAN LECTURER DEPARTMENT OF CSE BHARATH INSTITUTE OF SCIENCE & TECHNOLOGY CHENNAI DR. S. R. SURESH DEAN COMPUTER APPLICATIONS BHARATH UNIVERSITY CHENNAI
ABSTRACT
One of the key elements of many video compression schemes is motion estimation. A video sequence consists of a series of frames. To achieve compression, the temporal redundancy between adjacent frames can be exploited. That is, a frame is selected as a reference, and subsequent frames are predicted from the reference using a technique known as motion estimation. In this paper, we propose two cross-diamond-hexagonal search (CDHS) algorithms, which differ from each other by their sizes of hexagonal search patterns. These algorithms employ two cross-shaped search patterns consecutively in the very beginning steps and switch using diamond-shaped patterns. To further reduce the checking points, two pairs of hexagonal search patterns are proposed in conjunction with candidates found located at diamond corners.
KEYWORDS
BMA-Block Matching Algorithm, CDHS -Cross Diamond Hexagonal Search, CDS-Cross Diamond Search, LCSP-Large Cross Shaped Pattern, LHSP-Large Hexagonal Shaped Pattern, SCSP-Small Cross Shaped Pattern, SHSP-Small Hexagonal Shaped Pattern .
INTRODUCTION
LOCK-MATCHING motion estimation [1] is inextricably part of todays video coding techniques and standards, such as ISO/IEC MPEG-1, 2, 4, ITU-T H.261, H.263, and the emerging H.264 Video frames are first divided into macroblocks. The displacement of these macroblocks from reference frame are reckoned and coded together with the residual frames using the generic hybrid predictive/transform coding framework. In the last 20 years, many fast algorithms were proposed to pursue low computational complexity consumed by the full search algorithm. To reduce the exhaustive checking of candidate motion vectors, fast block-matching algorithms [2] with different block-matching strategies and their corresponding search patterns with various sizes and shapes have enormous impact on both search speed and accuracy. The typical example is the three-step search, which employs rectangular search patterns with different sizes. Others like 2D-logarithmic search and orthogonal search algorithms performed searching in either orthogonal or linear direction. These fast algorithms result in speed improvement, however, with quality varied amongst the nature of video sequences, especially for that possessing high motion content. Afterwards, the exploitation of center-biased property by new threestep search four-step search , and block based gradient descent search algorithms increased the searching speed significantly by taking the nature of most realworld sequences into account. Meanwhile, they still maintained the prediction quality comparable with the FSs. Until the unprecedented suggestion of unrestricted search steps and nonrectangular search patterns, such as the diamond search and hexagon-based search algorithms, they required much fewer checking points, in contrast to algorithms with limited steps. Although these fast BMAs may result in sub-optimal solution because of traps by local minima, they were usually employed in practical implementations due to their simplicity and regularity of data access.Besides the shape that candidate blocks taken for matching, the size of search patterns employed in these fast algorithms gave us an insight to the search strategies. . Moreover, they give consistently better motion estimates and directions due to larger size. Another relief of reducing checking points is to have successive search patterns overlapped as much as possible. For example, 4SS and DS requires three or five extra checking points while HEXBS requires consistently three extra points in advancing step. Recently, cross-diamond search algorithm [5] exploits a more dominant cross-center-biased property in most real-world sequences. A more advanced idea using similar starting pattern, but with dynamic size and adaptive feature, can be found. Experimental result in compares most fast BMAs without prediction feature. It shows that CDS generally requires about two to five fewer points than DS. The speedup gain using CDS over DS is reported up to 40% with similar or even better quality than DSs. In this paper, we proposed two novel-cross-diamond-hexagonal search algorithms by employing a smaller cross-shaped pattern before the first step of CDS and replacing the diamond-shaped pattern with hexagonal search patterns in subsequent steps.
PRODUCT DESCRIPTION
In this paper, we proposed two novel-cross-diamond-hexagonal search algorithms [3] by employing a smaller cross-shaped pattern before the first step of CDS and replacing the diamond-shaped pattern with hexagonal search patterns in subsequent steps.
SEARCH PATTERNS
Two types of search patterns are used in CDHS Cross-Center-Biased Motion Vector Distribution Hexagonal Search Patterns.
EXISTING SYSTEM
In the last 20 years, many fast algorithms were proposed to pursue low computational complexity consumed by the full search algorithm. To reduce the exhaustive checking of candidate motion vectors, fast block-matching algorithms [2] with different block-matching strategies and their corresponding search patterns with various sizes and shapes have enormous impact on both search speed and accuracy.

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FIGURE 1: SHOWS THE SEARCH AREA IN BLOCK MATCHING METHODS
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These fast algorithms result in speed improvement, hoIver, with quality varied amongst the nature of video sequences, especially for that possessing high motion content. Afterwards, the exploitation of center-biased property by new three-step search four-step search, and block-based gradient descent search algorithms increased the searching speed significantly by taking the nature of most real-world sequences into account. Meanwhile, they still maintained the prediction quality comparable with the FSs. Until the unprecedented suggestion of unrestricted search steps and nonrectangular search patterns, such as the diamond search and hexagon-based search algorithms, they required much feIr checking points, in contrast to algorithms with limited steps. Although these fast, BMAs may result in sub-optimal solution because of traps by local minima, they Ire usually employed in practical implementations due to their simplicity and regularity of data access.
PROPOSED SYSTEM
The maximum theoretical speedup of the proposed CDHSs is about 20.545.0 times with window size of 7, as only five and 11 points are checked, After utilizing cross-center-biased characteristics, CDHSs can further reduce the computations by checking three more points consistently in advancing steps. Table 1 shows the performance comparisopns of CDHSs on sequence SALES (CIF). TABLE - 1
Therefore, the average gain using CDHS-F over DS with window size of 7 is 3.56 search points per block. All the theoretical gains of CDHSs over 4SS, DS and CDS. It shows that the gain over 4SS is larger than that of DS, and is larger than CDSs. It also shows that CDHS-F generally checks feIr points than CDHS-T, i.e., number of candidate points checked: CDHS-F<CDHS-T <DS .
SYSTEM DESIGN DESCRIPTION

CROSS-CENTER-BIASED MOTION VECTOR DISTRIBUTION In addition, the average motion vector probability distributions taken from 31 sequences, in CIF/SIF/CCIR601 formats are analyzed. These sequences consist of different motion contents, from gentle to vigorous motion activities. The MVPs are resulted from simulations using FS with mean absolute difference as the block distortion measure inside a search area, typically is set to 7 for QCIF/CIF/SIF and to 15 for CCIR601 sequences. the probabilities in which motion vectors are found within the cross ( ), diamond ( )and square ( ) region, over 93% of motion vectors are found within the central area when using QCIF sequences. This is shown in figure 2. FIGURE 2

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This is a square-center-biased distribution indicating most of real-world sequences move gently, smoothly and slowly, and can be regarded as quasistationary. Within this square region, about 90% and 92% motion vectors are found located in the cross-center-biased and diamond-center-biased portions. Amongst these three shaped-distributions, CCB distribution is the most dominant. Moreover, such cross-biased behavior maintains over 93% at boundaries of search area. Similar center-biased properties distributed as a cross, diamond and square shape are found in CIF/SIF and CCIR601 formats. This shows the CCB occupies the most proportion at different displacement p,p w, especially when 1p2. Thus, a small cross-shaped pattern is employed in the very beginning of the proposed algorithms, prior to the large cross-shaped pattern used in CDS shown in figure 3. FIGURE 3
These two cross-shaped patterns can work more efficiently on finding small motion vectors than diamond-shaped ones within the central 5 5 area in the first two steps. Afterwards, the proposed search algorithms will use the large Diamond-shaped pattern for better performance on large motion vectors and possibly stop the search using a small diamond-shaped pattern if the previous minimum BDM found in the diamond center. HEXAGONAL SEARCH PATTERNS Translation, zooming, pan and tilt motions are usually found in video. This block movement will easily fall on the diamond corners if DS is employed for coding. There is still a room to reduce two fewer points between successive steps of DS by switching the LDSP into HSPs. This is shown in figure 4. FIGURE 4
However, it is not always true as motion direction may be diversified into other directions as the frame dimension increases, i.e., falling onto the diamond faces. This can be indicated by the decrease from about 43% to 40% when changing the sequence tennis from CIF to CCIR601 format. This is shown in figure 5. FIGURE 5
The diamond-corner hits will be dropped if the smaller SCSP is used to allow earlier halfway stop. The use of SCSP is applied in prior to the CDS algorithm (fig 6). The probabilities of the search path hitting a diamond corner are generally dropped due to the earlier halfway-stop condition. With exploiting the cross-centerbiased property, the drop may be tremendous. FIGURE 6
Nevertheless, there is still a big room to consider a switch into another search pattern, such as hexagonal patterns, in order to reduce the extra checking points in advancing from a diamond corner, especially for some rich motion clips with motions oriented orthogonally. It is shown in figure 7.

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FIGURE 7
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Two pairs of LHSPs. Each pair consists of two orientations: vertical and horizontal. These two pairs are different in their sizes. Checking points spanned in the SHSP are physically the same as SCSP and SDSP and proposed for the sake of completeness after pattern switched. Fig. 8. FIGURE 8
Based on the search strategy of DS. The thick ones advance the search with bigger steps and result in faster search speed than the flat ones, but make sacrifice for quality. Conversely, the flat ones give better quality, as they require more steps and thus more points. In short, it is a prior problem that I cannot know the nature of a sequence in advance. Therefore, a diamond-shaped pattern, i.e., LDSP, plays an important role in our proposed CDHSs. Three possible directions that the minimum BDM found located in the previous LDSP. Either a pair of LHSPs will be consistently used throughout the search. Figure 9 shows the Search patterns switched for different directions FIGURE 9: SEARCH PATTERNS SWITCHED FOR DIFFERENT DIRECTIONS
DEVELOPMENT SPECIFICATION CROSS-DIAMOND-HEXAGONAL SEARCH FLOW OF THE CDHSs The proposed CDHS algorithms [3], [4] differ from DS, HEXBS, and CDS by performing a highly cross-center-biased search with SCSP in the first step. In addition, the search may involve up to two different patterns: diamond-shaped LDSP and hexagonal pair LHSP. The common strategy amongst them is employing a halfway-stop technique. The following summarizes the CDHS algorithms. Step (i) Starting: A minimum BDM point is found from the five checking points of SCSP at the center of search area. If the minimum BDM occurs at SCSP center, the search stops. Step (ii) Large Cross Searching: The four outermost points of the central LCSP are evaluated. (fig 10). FIGURE 10

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Step (iii) Half-diamond Searching: Two additional points of the central LDSP closest to the current minimum BDM of the central LCSP are checked, i.e., two of the four candidate points located at. If the minimum BDM found in previous steps is at any endpoint of SCSP (fig 11). FIGURE 11
STEP (IV) SEARCHING Case (1): If LDSP is used in previous step and the minimum BDM is found located at any point on diamond edge, a new LDSP is formed by repositioning the previous minimum BDM point as the center of LDSP. Case (2): If LDSP is used in previous step and the minimum BDM is found located at either of the horizontal (vertical) diamond corners, a new horizontal (vertical) LHSP is formed by repositioning the previous minimum BDM as the center of LHSP. Case (3): Otherwise, a new LHSP of the same shape is formed by repositioning the previous minimum BDM as the center of LHSP.For any case above (LDSP LDSP, LDSP LHSP, orLHSP LHSP), three new checking points1 are evaluated. (fig. 12). FIGURE 12
Step (v) Ending: With the minimum BDM point in the previous step as the center, a new SDSP is formed if LDSP is used in previous step; otherwise, a SHSP is employed instead. Identify the new minimum BDM point, which is the final motion vector, from the four new candidate points2 in SDSP or SHSP. Figure 13. Shows the Gain in search points using CDHS-F over DS. FIGURE 13: GAIN IN SEARCH POINTS USING CDHS-F OVER DS.
IMPLEMENTATION
In this paper, we proposed two novel-cross-diamond-hexagonal search algorithms by employing a smaller cross-shaped pattern before the first step of CDS and replacing the diamond-shaped pattern with hexagonal search patterns in subsequent steps. We had used four frames for searching which was taken from already stored frames. And will try to implement this paper (project) with mpeg compression. CDHS algorithms are simulated using the luminance of the testing sequences .Block size of 16 and sum of absolute difference as the BDM are used. It shows that the speedup gain using CDHS-F over DS is up to about 144% and gain over CDS is about 73%. In addition, CDHS-F can also provide even better prediction quality, indicated by negative values. e.g., 2.7% lesser MAD error than DSs. In particular, they improve searching speed by about 144% faster than diamond search algorithm and about 73% faster than the cross-diamond search.
CONCLUSION
We proposed two fast cross-diamond-hexagonal search algorithms, namely CDHS-F and CDHS-T. They differ from each other in their hexagonal search pattern sizes. Both are suggested to firstly employ a small cross-shaped pattern to explore the cross-center-biased property of most real-world sequences. They then typically perform block matching as in DS, but switch using hexagonal search pattern in advancing steps. Experimental results show that our proposed CDHSs typically outperform other fast BMAs. In this paper we had used four frames for searching which was taken from already stored frames. In future, we will try to implement this paper (project) with mpeg compression. It shows that the speedup gain using CDHS-F over DS is up to about 144% and gain over CDS is about

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73%. In addition, CDHS-F can also provide even better prediction quality, indicated by negative values. e.g., 2.7% lesser MAD error than DSs. In particular, they improve searching speed by about 144% faster than diamond search algorithm and about 73% faster than the cross-diamond search. It shows that the speedup gain using CDHS-F over DS is up to about 144% and gain over CDS is about 73%. It is shown in the Table 2. Figure 14 and 15 shows the results of the blockmatching algorithm for full search and cross diamond hexagonal search. TABLE 2: EXPERIMENTAL RESULTS SHOW THAT PROPOSED CDHSs
FIGURE 14: THE RESULTS OF THE BLOCK-MATCHING ALGORITHM FOR FULL SEARCH
FIGURE 15 SHOWS THE RESULTS OF THE CROSS DIAMOND HEXAGONAL SEARCH
REFERENCES
[1]. Liang Yaling Liu Jing Du Minghui , A cross octagonal search algorithm for fast block motion estimation Coll. of Electron. & Inf. Eng., South China Univ. of Technol., Guangzhou, China. [2]. Haihua Liu Changsheng Xie Yi Lei , An unsymmetrical dual cross search algorithm for fast block-matching motion estimation, Coll. of Comput. Sci., Huazhong Univ. of Sci. & Technol., Wuhan. [3]. Moradi, A. Dianat, R. Kasaei, S. Shalmani, Enhanced cross-diamond-hexagonal search algorithms for fast block motion estimatio M.T.M. Dept. of Comput. Eng., Sharif Univ. of Technol., Tehran, Iran. [4]. Xuqing Xiao Ruimin Hu Ruolin Ruan Wei Huang, Adaptive Dual-Cross-Diamond-Hexagon Search Algorithm for Fast Block Motion Estimation, Nat. Eng. Res. Center for Multimedia Software, Wuhan Univ., Wuhan. [5]. HaiHua Liu Yi Lei ChangSheng Xie , Fast block-matching motion estimation based on an improved cross-diamond search algorithm Coll. of Comput. Sci. & Technol., Huazhong Univ. of Sci. & Technol., Wuhan. [6]. Small-diamond-based search algorithm for fast block motion estimation , Source Shen-Chuan Tai, Ying-Ru Chen, Yu-Hung Chen.

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SERVQUAL IN FINANCIAL SERVICES: CASE STUDY OF LIFE INSURANCE CORPORATION OF INDIA

DR. KESHAV SHARMA PROFESSOR, THE BUSINESS SCHOOL, UNIVERSITY OF JAMMU, JAMMU (ON LIEN) CAMPUS DIRECTOR RAYAT & BAHRA BIO-TECHNOLOGY CENTRE OF EXCELLENCE MOHALI BEENISH SHAMEEM RESEARCH SCHOLAR THE BUSINESS SCHOOL UNIVERSITY OF JAMMU JAMMU
ABSTRACT
Service sector has produced approximately two-thirds of worldwide GNP from twenty first century (Kara et al.,2005).In the huge service sector, insurance sector is one of the most important entities which has been growing relatively fast in India. In a period of half century or less, the insurance sector in the country has undergone roundabout movement, from being an open competitive market to full nationalization, and then back again to a liberalized market, in which private players and public sector companies are operating on a level playing field. At present there are twenty three players in the Indian life insurance industry out of which Life Insurance Corporation (LIC) is one of the leading public companies, holds largest number of policies in the world to suit different financial requirement of an individual.This study reports an application in the financial services industry of the SERVQUAL model developed by Parasuraman, Zeithaml and Berry.The model is designed to measure those components of service that generate satisfaction within five dimensions. This study identified the existence of gaps between clients' and management perceptions of attributes of the life insurance company, and between client expectation and perception of the services offered. It is argued that the existence of these gaps is a source of dissatisfaction with services provided.
KEYWORDS
Customer satisfaction, Expectations, financial services, Life Insurance, Perceptions, Servqual.
INTRODUCTION TO FINANCIAL SERVICE SECTOR

ndias strong financial fundamentals and so-called conventional financial approach helped the country come strong through the world-wide crisis. Financial services, being the back bone of any economy, entail various segments of the industry in its purview. It includes banking, insurance, broking, mutual funds and stock markets to be named as major sub-segments. Indian insurance sector is in top-gear growth wherein the number of life policies in force has increased nearly 12-fold over 2000-2010 and those pertaining to health insurance have increased nearly 25-fold.Data released by the Insurance Regulatory and Development Authority (IRDA) indicates that 23 life insurers mopped US$ 4.1 billion by writing new policies during April-June 2011. For non-life insurers, the gross premium underwritten during April-August 2011 increased by 24 per cent at Rs 23,712 crore (US$ 4.82 billion) as against Rs 19,114 crore (US$ 3.89 billion) in the year-ago period.The total industry premium collection (of both life and non-life companies) for August 2011 grew 34 per cent at Rs 5,065 crore (US$ 1.03 billion) compared with Rs 3,752 crore (US$ 762.73 million) in August 2011, the IRDA said. RDA has recently hinted at mandatory listing of insurance companies. Though the insurance Act doesnt stipulate companies to go public, the regulator might make amendments to it to facilitate capital raising by the players. Initial Public Offer (IPO) guidelines for the insurance sector are also being worked upon. According to the draft guidelines released, only those players that have 10 years of operational experience and strong financial performance would be allowed access to the capital markets.Meanwhile, the Indian government is contemplating on enabling public sector banks to raise lots of additional capital without the central authority losing control over them. For the purpose, the government is considering to form a single holding company to unite 21 state-run banks a it would provide room for innovation in capital infusion.The government is also considering allowing foreign individuals or Qualified Foreign Investors (QFIs), to buy equities directly in stock markets, a senior Finance Ministry official has revealed. In an initiative to highlight India as a major investment hub and attract higher foreign equity, the government has already allowed QFIs to invest up to US$ 13 billion in equity and debt schemes of mutual funds in the infrastructure sector.Indian Financial Services industry is a promising one and holds potential for massive growth in future. Be it in banking, insurance or foreign investments, the country is making its mark in every sub-segment, nationally as well as internationally. For instance, a report by Boston Consulting Group (BCG), an industrial body and Indian Banks Associations (IBA), anticipates that Indian banking industry would stand as the third largest in the world by 2025 wherein its assets size is poised to mark US$ 28,500 billion by 2025 from the asset size of US$ 1,350 billion in 2010.Indias life insurance market has grown rapidly over the past six years, with new business premiums growing at over 40% per year. The premium income of Indias life insurancemarket is set to double by 2012 on better penetration and higher incomes. Insurance penetration in India is currently about 4% of its GDP, much lower than the developed market level of 6-9%. In several segments of the population, the penetration is lower than potential. For example,in urban areas, the penetration of life insurance in the mass market is about 65%, and its considerably less in the low-income unbanked segment. In rural areas, life insurance penetrationmin the banked segment is estimated to be about 40%, while it is marginal at best in them unbanked segment. The total premium could go up to $80-100 billion by 2012 from the present $40 billion as higher per capita income increases per capita insurance intensity. The average household premium will rise to Rs 3,000-4,100 from the current Rs 1,300 as will penetration by the existing and new players. Indias ratio of life insurance premium to its GDP is around 4 per cent against 6-9 per cent in the developed world. It could rise to 5.1-6.2 by 2012 in tandem with the countrys demographic profile. India has 17 life insurers and the state owned Life Insurance Corp. of India dominates the industry with over 70 percent market share, though private players have been growing aggressively.Considering the worlds largest population and an annual growth rate of nearly 7 per cent, India offers great opportunities for insurers. Plans to enter the Indian market following deregulation of its insurance sector Foreign holding in Indian insurance companies is limited to 26 per cent. The government wants to increase the cap to 49 percent, but its communist allies oppose such a move. The market is moving beyond single-premium policies and unit linked insurance products which are easier to sell. The agency model is the dominant sales channel accounting for more than 85 per cent of fresh premiums but overall inactivity and attrition is much higher at 50-55 per cent than the global average of 25 per cent.Opportunities include health insurance and pensions, the report said, adding only 1.5-2 percent of total healthcare expenditure in India was currently covered by insurance.A life insurance policy covers ones personal self. Unlike with general insurance, it is not like insuring a vehicle. Having said that, if we consider that Indias population is over one billion and growing, we get a picture of the true potential of the life insurance sector in India. That is the kind of potential one is talkingabout in life insurance in India

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Service quality is the result of the comparison that customers make between their expectations about a service and their perception of the way the service has been performed (Gronroos, 1984; Parasuraman et al., 1985, 1988). A number of experts define service quality differently. Parasuraman et al. (1985) define it as the differences between customers, expectation of services and their perceived service. If the expectation is greater than the service performance, perceived quality is less than satisfactory and hence, customer dissatisfaction occurs. Lewis and Mitchell (1990), Dotchin and Oakland (1994), and Asubonteng et al. (1996) define service quality as the extent to which a service meets customers, need and expectation. The SERVQUAL approach has been applied in service and retailing organizations (Parasuraman et al., 1988; Parasuraman et al., 1991). Service quality is a function of prepurchase customers, expectation, perceived process quality, and perceived output quality. Parasuraman et al. (1988) define service quality as the gap between customers, expectation of service and their perception of the service experience. Based on Parasuraman et al. (1988) conceptualization of service quality, the original SERVQUAL instrument included 22 items. The data on the 22 attributes were grouped into five dimensions: tangibles, reliability, responsiveness, assurance, and empathy. Numerous studies have attempted to apply the SERVQUAL. This is because it has a generic service application and is a practical approach to the area. This instrument has been made to measure service quality in a variety of services such as hospitals (Babakus & Glynn 1992), hotels (Saleh & Rylan 1991), travel and tourism (Fick & Ritchie 1991), a telephone company, two insurance companies and two banks (Parasuraman et al. 1991). In this study, the researcher uses SERVQUAL approach as an instrument to explore customers expectations and perceptions levels of service quality towards the front office staff at the hotel. SERVQUAL dimensions.Previously, Parasuraman et al. (1985) identify ten determinants for measuring service quality which are tangibility, reliability, responsiveness, communication, access, competence, courtesy, credibility, security, and understanding/knowledge of customers. Later these ten dimensions were further purified and developed into five dimensions i.e. 12 tangibility, reliability, responsiveness, assurance and empathy to measure service quality, SERVQUAL (Parasuraman et al., 1988). These five dimensions identified as follows: Tangibility: The physical evidence of front office staff is including a personality and appearance of personnel, tools, and equipment used to provide the service. Reliability: The ability involves performing the promised service dependably and accurately. It includes doing it right the first time1, which is one of the most important service components for customers. Reliability also extends to provide services when promised and maintain error-free records. Responsiveness: The front office staff are willing to help customers and provide prompt service to customers such as quick service, professionalism in handling and recovering from mistakes. Assurance: Assurance refers to the knowledge and courtesy of employees and their ability to convey trust and confidence including competence, courtesy, credibility and security. Empathy: Empathy refers to the provision of caring and individualized attention to customers including access, communication and understanding the customers. SERVQUAL instrument is an invaluable tool for organizations to better understand what customers value and how well their current organizations are meeting the needs and expectations of customers. SERVQUAL provides a benchmark based on customer opinions of an excellent company, on your company, on the importance ranking of key attributes, and on a comparison to what your employees believe customers feel. Quality is one of the competitive priorities which have migrated from the literature of manufacturing strategy to the service arena (Pariseau and McDaniel, 1997). In the service sector, the quality of service, one of the most dominant themes of research in services, has become a strategic instrument for firms since 1990s (Fisk et al., 1993; Donnelly etal., 1995). Customer perceives services in terms of its quality and how satisfied they are overall with their experiences (Zeithaml, 2000). According to Timmers and Van Der Wiele (1990), satisfying the customer is not enough: there is a compelling need to delight the customer if a competitive advantage is to be achieved. The key to sustainable competitive advantage in todays competitive environment lies in delivering high-quality service that result in satisfied customers (Shemwell et al., 1998). In fact, service quality has become a great differentiator, the most powerful competitive weapon which many leading service organizations possess (Berry et al., 1985).Parasuraman et al. (1985) revealed ten dimensions viz., tangibles, reliability, responsiveness, competence, courtesy,credibility, security, communication, understanding, and access in the original model of service quality. But in the subsequent study of Parasuraman et al. (1988), these ten dimensions were condensed into five viz., tangibles, reliability, responsiveness, assurance, and empathy. This led to the development of a 22-item SERVQUAL scale for measuring service quality. It is the most frequently used model to measure service quality (Mattson, 1994) and made to be used by services organizations or industries to improve service quality (Parasuraman et al., 1988). Obviously, the SERVQUAL instrument has been used to measure service quality in various service industries which included health sector (Babakus and Boller, 1992; Carman, 1990; Bowers et al., 1994; Headley and Miller, 1993; Lam, 1997;Kilbourne et al., 2004); retailing (Teas, 1993; Finn and Lamb, 1991; Tsai and Huang, 2002; Naik et al., 2010);banking (Lam, 2002; Zhou et al., 2002); hospitality (Mey et al., 2006; Spreng and Singh, 1993); sports (Kouthouris and Alexandris, 2005); telecommunications (Van Der Wal et al., 2002); and information system (Jiang et al., 2002; Carr, 2002). In addition, there have been several contextual studies (Stafford et al., 1998; Leste and Vittorio, 1997;Westbrook and Peterson, 1998; Mehta et al., 2002; Evangelos et al., 2004; Goswami, 2007; Gayathri et al., 2005;Siddiqui et al., 2010) regarding the insurance industry.Additionally, a review of the relevant literature also reveals that the principal focus of service quality research has been twofold: First, the identification of service quality dimensions being of primary interest to researchers(Parasuraman et al., 1985,1988, 1991b); and second, the development of measurement instruments of service quality being the focus of subsequent research efforts (Parasuraman et al., 1988, 1991a, 1993; Cronin and Taylor, 1992, 1994;Asubonteng et al., 1996, Buttle, 1996). Numerous researchers have confirmed the applicability of five dimension model in different sectors in different countries (e.g. Gabbie and Neill, 1996; Bojani and Rosen, 1994; Mehta and Durvasula, 1998; Lam and Zhang, 1999); however in some studies the five dimension model was not confirmed (e.g.Carman, 1990; Babakus and Boller, 1992; Brown et al., 1993; Ryan and Cliff, 1996; Zhao et al., 2002; Wang et al.,2004; Jain and Gupta, 2004; Evangelos et al., 2004). In the various other significant studies, the SERVQUAL scalehas been presented in different dimensions single-dimensional (Babakus et al., 1993; Lam, 1997), two-dimensional(Babakus and Boller, 1992; Nadiri and Hussain, 2005; Karatepe and Avci, 2002; Ekinci et al., 2003; Evangelos et al.,2004), three-dimensional (Mei et al., 1999), four-dimensional (Gagliano and Hathcote, 1994; Kilbourne et al., 2004),six-dimensional (Headley and Miller, 1993), sevendimensional (Freeman and Dart, 1993), nine-dimensional(Carman, 1990), and nineteen-dimensional (Robinson and Pidd, 1998) construct. Besides, a number of researchers in different contexts have reported different dimensions for expectations, perceptions, and gap scores (Arasli et al., 2005; Zhao et al., 2002; Parikh, 2006). In summing up, Babakus and Boller (1992) commented that the domain of servicequality may be factorially complex in some industries and very simple and uni-dimensional in others. In effect, authors claim that the number of service quality dimensions is dependent on the particular service being offered. Dotchin and Oakland (1994) states that dimensionality of SERVQUAL depends on the context in which it is applied and cannot be generalized in all and any service industry. Similarly, Brown et al. (1993) suggested that SERVQUAL has to be modified and adapt-based on the industry, the business and the location. Ozer (1999) recommends the development of industry-specific quality measurements for a better fit to the nature of the industry. As a result,numerous studies in different service sectors have sought to develop industry-specific service-quality scales. Forexample, several scales have been replicated, adapted and developed to measure services by taking SERVQUAL as abase, viz., SERVPERF (Cronin and Taylor, 1992, 1994) for hotels, clubs and travel agencies; DINESERV (Stevens etal., 1995) for food and beverage establishments; LODGSERV (Knutson et al., 1990) for hotels; SERVPERVAL(Petrick, 2002) for airlines; SITEQUAL (Yoo and Donthu, 2001) for Internet shopping; E-S-QUAL (Parasuraman etal., 2005) for electronic services; SELEB (Toncar et al., 2006) for educational services; HISTOQUAL (Frochot andHughes, 2000) for historic houses; LibQUAL (Cook et al., 2002) for library ; and ECOSERV (Khan, 2003) for ecotourism.
The study was conducted on LIC customers in Srinagar, for choosing the sample, non-probabilistic convenience sampling technique was used. A sample of 450 customers was taken up who were approached personally at their work places. Out of the total, 337 responses (75 percent) were found to be valid and used for the purpose of analysis. SERVQUAL 22 item scales as proposed by Parasuraman et al. (1988) has been employed for collecting data regarding the customers perceptions and expectations of various service attributes. The discrepancy between perception and expectation (termed the P-E or gap) is a measure of service quality. Respondents were asked to indicate their perceptions and expectations level for each of the 22 items in the questionnaire using a seven-point Likert scale (ranging from 1 indicating very strongly disagree to 7 indicating very strongly agree.

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RELIABILITY TEST
Overall reliability of the perception (0.9110), expectations (0.7842), and gap(P-E) (0.8701) scales were also quite high and hence deemed acceptable (Nunnally and Bernstein, 1994; Hair et al., 2010).
GAP ANALYSISOF THE STUDY (EXPECTATION PERCEPTION GAP)

In the present study the gap scores for individual items were analyzed using the Weighted Average Scores (WAS) for all the 16 items to identify areas where quality improvement by LIC is needed the most.As expected (Parasuraman et al., 1985, 1988), the results (shown in Table 6) revealed that in all the attributes of service quality of LIC, the gap scores are negative. Levy and Weitz (2005) posit that customers are satisfied when the perceived service meets or exceeds their expectations. They are dissatisfied when they feel the service falls below their expectations. From Table 1, it is clear that negative gaps were found in all 16 items indicating that customersexpectations were in excess of their perceptions. In other words, service quality of LIC at an overall level falls far below the customer expectations. This can be interpreted as a gap between what was expected and perceived, thus,representing a failure in service delivery and service quality at all the levels. By analyzing the gaps, insurer has the opportunity to take the appropriate actions to improve the quality of their services, giving priority to items with the largest gap scores.Table 1 indicate that the maximum gap (-2.15) among all the items was found to be in item 15 in the area of being neat and professional. The next high gap (-2.02) existed in item 14 in the area of visually appealing materials and facilities.The third substantial gap (-1.97) existed in item 16 in the area of modern equipment, fixtures & facilities. The higher negative scores indicate that those attributes may not be available or at the most be inadequate to users even if available. Besides, biggest gaps call for the need for immediate attention by service provider to make improvements in these areas.The lowest gap (-1.51) was found to be in item 3 which shows that agents fail to make customers feel safe and secure in their transactions. The attributes with lowest negative value can, however, in no way be ignored by service provider.Therefore, in order to reduce the gap, LIC must have to provide excellent training, education & awareness to its staff to provide excellent services to the customers by building a relationship of trust. Eventually the lack of proper factor structure as revealed by the analysis of data, the weighted average scores of the items of gap scale points out to the need for considerable improvements in the LIC service quality in all aspects.
SUGGESTIONS
The results show that most of the items proposed under five dimensions by Parasuraman et al. (1988) are relevant in measuring life insurance service quality in the Indian context and there are not major reliability problems .In the critical moments of truth, only those organizations which will be in position to enhance quality in their end products will sustain and maintain their position (Brown et al., 2005). Therefore, LIC must have to focus on quality improvement strategy to remove the quality flaws by giving the first priority to the items with biggest gaps and subsequently to the items with lowest gaps. However, SERVQUAL instrument is moving around the human element of service delivery (which consists of assurance, reliability, responsiveness & empathy) and tangibles attributes (Sureshchandar et al., 2001), so, LIC should ensure that agents & employees are well trained and understand the needs of customers and provide services accordingly that the organization is supposed to provide for its customers. Besides, in a competitive environment, by performing on differential strategies aimed at improving the service quality, LIC will be able to add value to their relationship with the current and prospective customers.
LIMITATIONS AND FURTHER RESEARCH

The conclusion drawn from the results of this study should be viewed under the following limitations. Firstly, this study was carried out mainly in SRINAGAR; therefore, the results obtained may not be pertinent to the country as a whole.Second,the present study has been conducted by taking a sample of 337 customers of LIC (a public company), ignoring the private life insurance companies. This cannot lead to the generalizability of the findings and the results may not be implied conclusively to the whole life insurance industry. Additional studies are recommended to fill this gap. These limitations may decrease the ability of generalizing the results of this study to other life insurance companies settings. Therefore, the conceptual and methodology limitations of this study need to be considered when designing future research.
CONCLUSION
The findings of the present study indicate that SERVQUAL instrument is not applicable to the Indian life insurance sector; therefore, further research is imperative to understand and improve life insurance service quality in India. Few statements which showed reliability problems should be restated or substituted by more relevant statements and a separate instrument may also be developed to measure service quality for the life insurance industry. Although, SERVQUAL dimensions cover only human element of service delivery and tangibles facet of the service, the concept of service quality does not confine to the realms of these factors, but also encompasses other critical factors namely, service product or the core service, systematization of the service delivery, and social responsibility (Sureshchandar et al., 2001). Therefore, in future these critical factors might also be considered to measure service quality in the life insurance industry.Results of averages computed on gap scores indicate negative gaps in all items of service quality which revealed that expectations of customers were more than their perceptions. The negative gaps indicate that the service quality level was unsatisfactory. Accordingly, maximum gap was found in respect of tangibles items followed by responsiveness, assurance, empathy, and reliability items. The greatest negative scores have made it necessary for LIC to take corrective measures and focus on quality improvement to increase its effectiveness and to compete successfully in the life insurance industry. For that reason, quality improvement strategy should be opted in the order of the highest to the lowest gaps. Conversely, failing to make improvement will widen the gaps and which will result in customer dissatisfaction towards service quality of LIC. Overall, this study also found that the gap (P-E) model as proposed by Parasuraman et al. (1988) did not perform as well as the perception based performance (P) model of Cronin and Taylor (1992) in terms of reliability, explained variance and its factor structure. In addition, suggested improvements in the service quality are required to be focused by LIC to retain potential customers, gain a competitive advantage, increase its market share & profitability, and to ensure its sustainability especially in the developing countries like India. Moreover, the continuous examination of customers perceptions and expectations is needed in order to know about what actually the customers want, in that way, up-to-date measures are needed to be employed, basing them on the customers stated needs and demands to improve the service quality.
TABLES
TABLE 1 DIMENSION ASSURANCE RELIABILITY EMPATHY RESPONSIVNESS TANGIBLE OVERALL (16 ITEMS) TOTAL NO.ITEMS 04 03 03 03 03 PERCEPTION (P) 0.7148 0.7390 0.7084 0.8134 0.8218 0.9110 EXPECTATIONS (E) 0.4548 0.2928 0.5033 0.5252 0.4208 0.7842 GAP(P-E) 0.6452 0.6655 0.4905 0.7384 0.6872 0.8701

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TABLE 2 SR.NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ITEMS/STATEMENTS Agents and employees who have the proper knowledge and competence to answer customers specific queries and requests Agents and employees who instills confidence in customers by proper behavior Making customers feel safe and secure in their transactions Appropriate behavior of the concerned staff Providing promised services as per the set schedule Providing services right the first time Showing sincere interest in solving customers problems Giving caring and individual attention to customers by having customers best interests at heart Agents and employees who understand the specific needs of their customers Having convenient operating hours and days of the branches for the customers Apprising the customers of the nature and schedule of services available in the organization Willingness to help customers and the readiness to respond to customers requests Providing prompt service to customers Visually appealing materials and facilities associated with the service Staff appeared neat and professional Modern looking updated equipment, fixtures , and facilities
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GAP SCALE(WAS) -1.84 -1.58 -1.51 -1.87 -1.67 -1.70 -1.72 -1.83 -1.64 -1.72 -1.66 -1.92 -1.62 -2.02 -2.15 -1.97
BIBLIOGRAPHY
Ahmad, A., and Sungip, Z., (2008), An Assessment on Service Quality in Malaysia Insurance Industry, 13, Communications of the IBIMA, Volume 1, 2008. Babakus, E. and Mangold, W.G. (1992), Adapting the SERVQUAL scale to hospital services: An empirical investigation, Health Service Research, Vol. 26 No. 6, pp. 767-86. Butterworth Heinemann. Bebko CP. (2000) Service intangibility and its impact on consumers expectations of service quality. The journal of services marketing, 14(1):9-26. Berry L.L. & Parasuraman A. (1992) Services Marketing starts from within. Marketing management, 1(1):25 (11p). Bhaumik, Suman Kumar. (1999) Liberalization of the insurance industry: Some lessons from the US experience. ICRA Bulletin, Money and Finance. Bhave, A., (2002), Customer Satisfaction Measurement, Quality and productivity Journal: February 2002 Issue, http: //WWW.Symphonytech.com. Bloemer, J., Ko de Ruyter, et al (1999), Linking perceived service quality and service loyalty: a multi-dimensional perspective, European Journal of Marketing, 33, 1082. Cassel , C ., (2006), Measuring customer satisfaction , a methodological guidance, State-of the Art Project Chandra Shil, N., and Rashed Osman, A., (2007), Quality Function Deployment for Customer Satisfaction in Banking Services, Daffodil International University Journal of Business and Economics, 2, 106-118. Chong Joanna S.K. Lee (2006), customers definition of bank service quality: an exploratory analysis of top-of-definition, Proceedings of Fordham University conference of the marketing of financial services, November 3rd and 4th, 2006, New York. Forell, C., Mithas, S., et al (2005), Customer satisfaction and stock prices: high returns, low risk, Journal of Marketing, 70, 3-14. Gruca, T., and Rego, L., (2005), Customer satisfaction, cash flow and shareholder value, Journal of Marketing, 69, 115-130. Gustafsson, A., Johnson, M., et al (2005), The effects of customer satisfaction, relationships commitment dimensions, and triggers on customers retention, Journal of Marketing, 69, 210-218. Parasuraman, A., Zeithaml, et al (1988), Servqual: A multiple Item scale for measuring consumer perceptions of service quality, Journal of retailing, 64, 12-40. WEBSITES http://www.investorsguide.com -12-11-2011 http://www.finance.yahoo.com -12-11-2011 http://www.fineweb.com- 08-08-2011 http://www.fisher.osu.edu/fin -07-08-2011. http://www.smartmoney.com- 07-08-2011 http://www.economictimes.com- 02-08-2011 http://www.financialengines.com -05-08-2011 http://www.nfsn.com- 05-08-2011 http://www.financemarkets.co.uk- 05-11-2011 http://www.scribd.com -05-11-2011 http://www.indiastat.com http://www.iber.com. http://www.marketresearch.com http://www.financial-shopper-network.com

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INFORMATION ORIENTATION AND ETHICAL PRACTICES IN GOVERNMENT ORGANISATIONS: A CASE OF HEALTH SECTOR
ANJU THAPA RESEARCH SCHOLAR THE BUSINESS SCHOOL UNIVERSITY OF JAMMU JAMMU DR. VERSHA MEHTA PROFESSOR THE BUSINESS SCHOOL UNIVERSITY OF JAMMU JAMMU
ABSTRACT
Information is widely recognized as the most important asset of organization in the current transition of developed countries towards knowledge-based economies. With the advent of new technologies and innovations, the entire work system in corporate as well as government has become more oriented towards efficiency, cost-effectiveness and transparency. The present paper is an attempt to study the level of Information Orientation (Information technology practices, Information management practices and Information behavior and values) among the employees in the health and medical sector organizations. The study also investigates the impact of Information Orientation on ethical practices in both the select public as well as private sector health organizations. The results revealed that Information orientation does have a positive impact on enhancing ethical practices in an organization. Also it has been found out that the Information orientation in public organisation is significantly different than in the private sector organization.
KEYWORDS
Ethical practices, Information orientation, Knowledge based economy.
INTRODUCTION
nformation is widely recognized as the most important asset of an organization especially as a result of transition of economies to being knowledge-based. It has been seen, since the last decade, that there has been an increasing interest in managing knowledge in the organizations. This has been due to the rapid development of information systems and technologies which have enabled organizations to manage their knowledge assets more effectively. With the advent of new technologies and innovations the entire work system in corporate as well as government organizations has become more efficient, costeffective and transparent. The organizations of late, have realized that the intellectual capital and the corporate knowledge is a valuable asset which needs to be shared as well as managed effectively to improve ethical practices in organization. Besides, it also enables organizations to communicate and share information instantaneously across the globe. This is in the backdrop of Information he backdrop of Information becoming a critical success factor for gaining competitive advantage. Contemporary organizations are becoming knowledge driven and it has become imperative to keep abreast of the latest trends to achieve success of an organization. It is needless to say that Information and the knowledge is critical not only for competitive existence but also for the sustainability of an organization. In this context, it is essential that every individual associated with the organization be it management, employer, employee, worker, stakeholder or a competitor must be Information Oriented and transparent at work. Thus, for the sustainability of an organization, in a highly competitive environment, there should be a focus on Information i.e. its collection, management and dissemination. Also effective Information use in organizations depends not only on how people senses, represent, and communicate but also on the attitude of seeking, learning, and sharing of information (Information behavior and values). Various studies have shown that Information Orientation among the employees increases the level of business performance in one way or another (C.S.Lee , I.S.Ko, C.Jung, 2008). Also, it has been found that the Information Orientation significantly reduces information asymmetry. This influence may be mediated by (i) Information sharing and (ii) Information collection. It is also indicated that the organizations having stronger orientation towards information may have less information asymmetry problems and thus in turn would be more capable to take appropriate decisions based on information (Hsieh, Lai and Shi, 2006). Also, one has to be ethical while sharing information in order to be more transparent and efficient at the work place. Ethics is not as simple as deciding what is good or bad although that is certainly a part of it. Instead, it is about doing what is right. The right thing is often the fair thing i.e. the action that considers others needs. It therefore, concerns the values that shape our behaviour towards fellow employees, customers, suppliers, competitors and all our organizations stakeholders (Lagan, 2000). Also, it needs to be found out that whether Information Orientation improves ethical practices of an organisation. Also, what impact Information technology practices, Information management practices and information behaviour and values have on ethical practices (Donald A. Marchand, William J. Kettinger, and John D. Rollins, 2001). In addition Information Orientation mediates the link between Information seeking behaviour of employees in the organizations and their performance. Thus, from the above studies it can be assumed that there exists a relation between level of Information Orientation of employees in an organisation and their information behaviour and values, the result of which improves the ethical practices which in turn can enhance overall performance of an organisation. The purpose of this research is to study the relationship between Information Orientation (IO) and Ethical practices (EP), and also to establish a linkage amongst IT practices, Management practices and Information behaviour and values with the Information Orientation and also with the Ethical practices. A comparative study has been done comparing public as well as private sector health organizations. Thus, the Information Orientation improves Ethical practices and Information orientation depends on (i).Information management (IT practices and Management practices) and (ii).Information behavior and values in an organisation.
SCOPE
The finding of the study shall fill the gap in the existing literature and establish a link between Information orientation and ethical practices in the health and medical related organizations. The focus of the study is to determine the Information orientation and ethical practices among the employees of government and private hospitals. The study has been conducted in the select hospitals of Jammu region. The respondents of the research study comprise of the employees in hospitals associated with Government medical college (GMC), Jammu and Acharya Shri Chander College of Medical Sciences (ASCOMS), Jammu.
OBJECTIVES
The objectives of the study are as follows: 1. To study the level of Information Orientation of the select organizations.

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2. To study the impact of Information Orientation on ethical practices in the health organizations.
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The current literature demonstrated that Information sensing, collection, organisation, communication and its use with a high information orientation are critical to the knowledge-based organisations (Marchand et al 2001). A study conducted on the subject of information orientation by Marchand et al (2001) claimed to be one of the first studies to identify a link between information systems and performance. The study broadens the scope of practices examined and including elements such as information management practices and organisational culture. Also, it has been seen that information based organizations require specialists of many kinds to carry out their mission and translate their objectives into specific actions. For this, knowledge workers or managers play an essential role in managing information and implementing information and communication technology in organisation. (Hargrove, 2001; Kluytmans, 2005; Boonstra, 2005). In a recent study conducted by Marchand (2010), it has been revealed that the information and information related systems represent a competitive advantage as it helps in improving the ability of the managers and employees. Thus, technology has penetrated significantly into business processes and directly controls the key processes and their introduction has resulted in a radical change in the business processes. It is also highlighted that IT alone cannot generate values; rather it is how IT is used that contributes to organizational performance (Prasad and Heales, 2008). Hence, the success of an organization is based on Information advantage. The information is dispersed throughout the market in the form of competition and Information gaps are thus closed (Picot, Reichwald, and Wigand, 2008). Since, the business environment is constantly changing and evolving. Business themselves change over time and as they grow and develop, the information needs of the business will also change. The Information Orientation model (Aytes and Beachboard, 2007), pointed that the organisation that demonstrates effective uses of Information (Information behavior and values IBV), Information management (Information management practices IMP) and management of its information Technology (Information technology practices ITP) in combination affects organizational performance. It has been seen that if an organisation is mature i.e. effective in these three areas, the organisation will experience superior business performance. Gaither and Frazier (2007), revealed in the study that advances in Information and communication technology have allowed organizations to manage operations easily and to work on projects which are globally dispersed among the teams. The wide spread use of e-mail today allows employees to communicate quickly and cheaply with vendors and customers as well as with co-workers. This also results in faster decision and improved performance at the work place. Also, it has been studied that Information Orientation could significantly reduce information asymmetry. This influence may be mediated by information sharing and information collection. In, addition to this, IO could significantly influence e-business adoption also. It is found that the company with stronger IO may have less information asymmetry problems, and thus would be more capable to make appropriate decisions based on information (Hsieh, Lai and Shi 2006). Information Technology add different and non-existence capabilities to individuals and groups that may cascade with other impacts. It also shows that IT use will lead to changes in work practices and thereby to organizational transformation (Baxter and Lyytinen 2005). In addition to it, the ethical practices allow the organisation to identify the gaps between desired to be good practices and what is happening in reality and in turn provide with suggested development actions. It also monitors employees understanding and perception about companys values and culture. Improving Information management practices is a key focus for many organisations, across both the public as well as private sector. Thus as a result of it, there is an impact of information on ethical practices (Malhotra, 2005). The results from existing literature show that practices in the organisation do matter. The organisations having better practices have better out comes. The researchers divide the given organisations into two groups based on particular interests. These are (a) Leaders and Laggers (b) What sets off leaders from laggers. It has shown that leaders perform well in all of the best practices. Leaders are not merely using best practices but they also use them effectively. Laggers, on the other hand, dont have well applied practices and may have problems in performing effectively at the work place. They need to improve their practices in order to catch up with the leaders (Sanner and Wijkman, 2005). Further, Marchand (2004) differentiate between low IO organizations from the organizations possessing high IO. People do not know enough about their customers to adequately serve and anticipate their needs in the former, while Information is easily accessed across organizational boundaries and hierarchies in the later. Efforts to serve customers have failed due to a lack of information and sharing across channels while managing information. Collecting, organizing and maintaining are viewed as everyones responsibility. Thus, the study confirms previous research findings, related to the critical role of information in organizations and specifically small companies. Information has emerged as a critical supporting theme either explicitly having a clear reference to corporate information competence, or implicitly not immediately identifiable as corporate information competence (Sen and Taylor, 2007). Also, the results of the study by Guthrie (2001) indicate a positive association between use of high involvement ethical practices and employee retention which may ultimately result in higher productivity. Also, it bas been seen that ethical attitudes and ethical behavior in organizations may have substantial ramifications on a firms operation. The study investigates whether or not managers are perceived by employees to exhibit ethical attitudes and ethical behavior and thereby being their role models. Effective strategic ethical practices can help firms to enhance their performance while competing in turbulent and unpredictable environments. When the activities called for by these components are completed successfully, the firms strategic ethical practices can become a source of competitive advantage. Thus, Ethical practices can be applied to all business activities, both locally and offshore, and are best achieved through transparent and accountable processes. An ethical practice in an organization is about going beyond legal considerations, ensuring compliance with not only the letter of the law, but the spirit too. The organisational practices are also dependent upon the surrounding context and its specific ethical values and principles. Furthermore, it is dependent upon the gap between different perceptions of ethical values and principles and if the outcome of the corporation's ethical values and principles are proactive or reactive in relation to the reigning ethical values and principles in the marketplace and society. Finally, it is also dependent upon the potential and eventual consequences of ethical values and principles (Goran Svensson and Greg Wood, 2007). When the ethical climate is not clear and positive, ethical dilemmas will often result in unethical behavior. In such instances, an organization's culture also can predispose its members to behave unethically. Thus, from the existing literature it needs to be found out whether there exists any relation between Information Orientation and ethical practices in the organizations. The purpose of this research paper is to study the relationship between Information Orientation (IO) and Ethical practice (EP) and to establish a link among IT practices, Management practices and Information behavior and values on Information Orientation and further in turn its impact on ethical practices. A comparative study of all these factors can be done in both public as well as private sector health organizations in the Jammu region.
The present study has been conducted among the employees of one of the crucial organization related to common mass i.e. Health and Medical Department in Jammu region of the state Jammu and Kashmir. This sector has been chosen for the study, as it is one of the biggest service organizations which deal with the serving people. Also, this study will be helpful in evaluating the Orientation of the employees of the select hospitals towards information and establish a link with ethical practices. For the purpose of the given study primary as well as secondary data has been used. The Secondary data has been collected from various books, journals, published research papers and websites etc. The primary data has been collected by means of a standard questionnaire (Source: Aytes and Beachboard. Using the information orientation maturity model to increase the effectiveness of the core MBA IS course; Journal of Information Technology Education, 2007 and Addy. D. et al.). Copies of the questionnaire were given personally to respondents in the two select hospitals i.e. Government medical college (GMC), Jammu and Acharya Shri Chander College of Medical Sciences (ASCOMS), Jammu. The questionnaire contained a total of 34 (32+2) items with 5point Likert scale ranging from 1-strongly disagreed to 5-strongly agreed. The sample was randomly selected and 70 respondents were personally collected to give their responses.
DATA ANALYSIS AND INTERPRETATIONS

The study deals with the analysis of the level of information orientation among the employees in the health department and makes comparison between public and private sector hospitals in terms of their ethical practices. The data collected from the respondents has been first subjected to simple percentage method,

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mean score and finally the regression method has been used in order to know the impact of Information orientation on ethical practices in the select health organizations.
DEMOGRAPHIC PROFILE
For studying about the demographic profile of the employees, simple percentage method has been used. The results shows that more than half of the respondents are females (54.3%) and rest are males (45.7%). In terms of age majority of respondents (88.57%) are below 35 years and having their tenure less than 2 years (54.3%), 38.6% respondents have their tenure ranging between 2-5 years. About 44.3% employees have income below Rs 15000 and 45.7% have income ranging Rs. 15,000 to Rs. 30,000. More than half (57.1%) of the employees are graduate, 25.7% are under graduate and 11.4% are post-graduate. TABLE 1: INFORMATION TECHNOLOGY PRACTICES (ITP) Information Technology Practices Public Private Sharing knowledge 4.02 4.45 Market trends Taking risk Exploring and sharing new ideas New products and services Relations with suppliers and customers Controlling different operations Employees performance Efficiency of work Grand Mean Score 2.65 3.85 4.11 3.71 3.65 4.14 3.74 4.20 3.78 3.62 3.25 4.22 4.00 3.74 4.20 4.02 4.11 3.95
1. 2. 3. 4. 5. 6. 7. 8. 9.
Table 1 given above depicts the Information technology practices (ITP) in the public as well as private sector hospitals. The table shows the nine statements whose mean scores are calculated for comparing public and private sector health organizations. As revealed by the table, in case of public-sector hospitals, efficiency of work has the highest mean score (4.20), followed by controlling different operations (4.14), exploring and sharing new ideas (4.11), sharing knowledge (4.02), taking risk (3.85), employees performance (3.74), new products and services (3.71), relations with suppliers and customers (3.65), and market trends (2.65). Similarly, in the case of private sector hospitals, sharing knowledge among employees has the highest mean score (4.45), followed by exploring and sharing new ideas (4.22), controlling different operations (4.20), efficiency of work (4.11), employees performance (4.02), new products and services(4), relations with suppliers and customers (3.74), market trends (3.62), and taking risk (3.25). Since, the mean scores of almost all the statements are above 3, except role of Information technology in knowing market trends (2.65) in case of public sector hospitals. It indicates that the Information technology practice has positive impact on Information orientation of the employees of the public and private sector health departments. Also, the grand mean scores are calculated which comes out to be 3.87 and 3.95 of public and private hospitals respectively, which shows at there are high Information technology practices in both the organizations. TABLE 2: INFORMATION MANAGEMENT PRACTICES (IMP) Information Management Practices Public Private 1 Hiring skilled people 3.68 3.97 Providing training skills 4.05 4.42 Evaluating people 3.74 4.11 Rewarding people 3.60 3.60 Information overload 3.42 3.80 Reuses of information 3.51 3.97 Data updating 3.82 4.14 Assessing customer demands 3.88 4.22 Anticipating problems 3.82 4.28 Grand Mean Score 3.72 4.05 Table 2 given above depicts the Information Management Practices (IMP) in the public as well as private hospitals of Jammu region. The table shows the mean scores of the statements and thus, comparison of the public and private sector health organizations can be done. As indicated from the table, in case of publicsector hospitals, providing training skills has the highest mean score (4.05), followed by assessing customer needs (3.88). It has been seen that data updating and anticipating problems has equal mean score (3.82), followed by evaluating people (3.74), hiring skilled people(3.68), rewarding people (3.6), reuse of information (3.51) and information overload (3.42). Similarly, in case of private hospitals, providing training skills also has the highest mean score (4.42), followed by anticipating problems (4.28), assessing customer demands (4.22), data updating (4.14), evaluating people (4.11). In this case, hiring skilled people and reuse of information both has equal mean score of 3.97, followed by information overload (3.8) and rewarding people (3.6). Since, the mean scores of all the statements are above 3, it indicates that the Information technology practices has positive impact on Information orientation of the employees in the health department. Also, the grand mean score are calculated which comes out to be 3.72 in case of public sector and 4.05 in case of private sector hospitals, which clearly shows that Information Management Practices (IMP) are high in both sectors but more in case of private sector than public sector health organizations . TABLE 3: INFORMATION BEHAVIOR AND VALUES (IBV) Information Behavior and Values Public Private Information exchange 4.05 3.97 Keeping information Informal sources of information Inaccurate Information Manipulating information Relevant information Discloses information to its members Evaluating people Changes in the government Grand Mean Score 2.20 2.40 3.37 2.82 4.00 3.54 3.97 3.71 3.34 2.28 2.02 2.30 2.02 4.11 3.42 3.74 4.05 3.10 2 3 4 5 6 7 8 9
1. 2. 3. 4. 5. 6. 7. 8. 9.
Table 3 given above depicts the Information Behavior and Values (IBV) in both public and private sector health organizations. The table shows the mean scores of the nine statements which are categorized under Information Behaviour and Values. In the public sector hospitals the information exchange has the highest

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mean score (4.05), followed by relevant information (4), evaluating people (3.97), changes in the government (3.71), discloses information to its members (3.54), inaccurate information (3.37), manipulating information (2.82) and informal sources of information and keeping information has equal mean score of 2.20. Like wise the mean scores of the private sector hospitals are calculated. The highest mean score are (4.11) of relevant information, followed by changes in the government (4.05). The mean scores of information exchange and informal sources of information was equal to 3.97, followed by evaluating people (3.74), discloses information to its members (3.42), inaccurate information (2.30), keeping information (2.28) and manipulating information (2.02). Also, the grand mean score are calculated which comes out to be 3.34 and 3.10 respectively of public and private sector hospitals, which shows that Information Behavior and Values (IBV) are high in both the sectors. Thus, from the above analysis it has been concluded that all the three variables of Information orientation i.e. Information technology practices (ITP), Information management practices (IMP) and Information behavior and values (IBV) are high which indicates that the employees of the health sector organisation are highly oriented towards information. TABLE 4: ETHICAL PRACTICES (EP) Ethical Practices Public Private 1. Discussion about errors and mistakes 4.28 4.22 Loss of privacy 3.45 3.68 Members trust each other 4.12 4.20 Transparency 3.87 4.22 Sharing of gifts 3.81 4.34 Grand Mean Score 3.90 4.13 Table 4 given above depicts the ethical practices in the public and private sector health organizations. In case of public sector health organizations, the discussion about errors and mistakes has the highest mean score which comes out to be 4.28, followed by members trust each other (4.12), transparency (3.87), sharing of gifts (3.81) and loss of privacy (3.45). Similarly, in case of private sector health organizations, sharing of gifts has the highest mean score (4.34), followed by discussion about errors and mistakes and transparency (4.22), members trust each other (4.20) and loss of privacy (3.68). Grand mean scores of the items of ethical practices were also calculated which comes out to be 3.90 and 4.13 in case of public and private sector health organizations respectively. Thus, from the above table it has been revealed that both public as well as private sector health organizations has high score of ethical practices but private sector has comparatively more inclination towards ethical practices. TABLE 5: REGRESSION ANALYSIS Model Public Private R .875 .911 R Square .766 .830 Adjusted R Square .062 .319 Std. Error of the Estimate .30780 .21344 2. 3. 4. 5.
Table 5 given above depicts the overall analysis of the results of the Information Orientation (IO) and Ethical Practices (EP) among the employees of the public and private sector health organizations. The mean scores of the responses were subjected to the regression method in order to know the impact of Information Orientation (IO) on Ethical Practices (EP). In case of Public sector health organizations the correlation between Information Orientation and Ethical Practices comes out to be 0.875, which implies that the correlation between the two variables is positive and high. Also, it has been observed that the value of R square comes out to be .766 in case of public sector health organizations which indicates that 1% change in the independent variable i.e. Information Orientation (IO) may lead to cause 76% change in the dependent variable i.e. Ethical Practices (EP). Thus, it can be concluded that Information Orientation (IO) has high impact on Ethical Practices (EP) in the public sector health organizations. While in case of Private sector health organizations the correlation between Information Orientation and Ethical Practices comes out to be 0.911, which implies that the correlation between the two variables is positive and very high. Also, it has been observed that the value of R square in case of private sector health organizations is .911 in case of public sector health organizations which indicates that 1% change in the independent variable i.e. Information Orientation (IO) may lead to cause 91% change in the dependent variable i.e Ethical Practices (EP). Thus, it can be concluded that Information Orientation (IO) significantly affects the Ethical Practices (EP) in the private sector health organizations also. Thus, it can be revealed, that the Information Orientations does have a significant impact on the ethical practices of the employees of both public as well as private sector health organizations. Also it has been seen that the components of the Information Orientation i.e. Information management practices (IMP), Information technology practices (ITP) and Information behavior and values (IBV) individually affects the Information orientation of the employees but the impact of Information management practices and Information technology practices alone cannot lead to the significant results. It is more of Information behavior and values (IBV) which need to be improved in the organizations in order to enhance the overall Information orientation in the organizations. Thus, the overall results demonstrated that for improving the Information orientation of the employees of any organization, Information management practices (IMP), Information technology practices (ITP), along with Information behavior and values (IBV) need to be improved which may enhance the overall ethical practices in the organizations.
CONCLUSION
In summary, it can be concluded that information and information related technology become ever more important organization tools. Its use has become increasingly important for anticipating and reacting to the changing market conditions in both corporate as well as government sector. The attempt to study the Information Orientation and ethical practices among the employees of the health department was quite successful. It helped the employees to understand the relationships among information management practices, Information Technology practices, and the culture of information sharing and use i.e. Information behavior and values in an organization. The findings of the study provided an excellent opportunity for the employees of the health sector organizations to be more oriented towards information to order to become more efficient, cost-effective and transparent. In addition, it can be concluded that it is more of Information behavior and values (IBV) which need to be improved in the organizations in order to enhance the overall Information orientation in the organizations. Thus, the study can be concluded by saying that for improving the Information orientation of the employees of any organization, Information management practices (IMP), Information technology practices (ITP), along with Information behavior and values (IBV) need to be improved which may enhance the overall Ethical Practices (EP) in the organizations.
REFERENCES
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DO THE TEENAGERS EVALUATE THE PRODUCT WHILE INFLUENCING THEIR PARENTS TO PURCHASE?
DR. A. S. MOHANRAM PROFESSOR DEPARTMENT OF MANAGEMENT STUDIES ST. JOSEPHS COLLEGE OF ENGINEERING CHENNAI
ABSTRACT
In general, it is believed that teenagers tended to have more influence in the purchase of products that were less expensive and for their own use. Parents of adolescents perceived their role similarly. The study reveals hoe teens influence on their parents not only on less expensive products but also consumer durable products purchased for the family use like walkman. The study also reveals that while purchasing walkman teenagers are influenced by updated information of the product and hence they go for information search, collect information from different dealers on various aspects like price, technology and so on. Further teenagers predominantly apply emotional approach and less logical approach to convince their parents to get the product. In respect of product characteristics it is found that product value is more popular among the teenagers than product image. Teenagers give more importance to product value and apply either emotional or logical approach to influence their parents. However while evaluating the product it is found that product convenience has more influence on the purchase decision than perceived value addition. This implies that teenagers are inclined to get the product for the best value for money more than the social image, perceived prestige etc.
KEYWORDS
Emotional approach, Logical approach, Product evaluation, Product value.
INTRODUCTION
hough much research has been done into the husband-wife interaction in the purchase-decision process, relatively a few studies only have dealt with the role of teenagers in the family buying process. Early studies suggested that teenagers did not have much influence in household purchases. But contemporary research indicates that teenagers constitute a major consumer market, with direct purchasing power on items such as snacks and sweets; electronic items and indirect purchase influence while shopping for big-ticket items, such as automobiles, vacations, grocery and fast food etc. Teenagers tend to attribute more influence to parents than the better half. No doubt fathers and mothers clearly dominate the decision process. But teenagers attribute more influence to father or mother than the better half. (Belch, G, M A Belch, and G Ceresino, 1985). In general, it is believed that adolescents tended to have more influence in the purchase of products that were less expensive and for their own use. Mothers and adolescents perceived their role similarly, but fathers felt that the adolescents had less influence than the adolescents thought they had (Beatty, Sharon E, and Salil Talpade, 1994). Adolescents have greater influence in a concept-oriented environment where they are encouraged to develop their own ideas and express their views more openly (Foxman, Ellen, Patriya S Tansuhaj and Karin M Ekstrom, 1989b). Adolescent, children are also primed to assume a more active role in purchase discussions after years of listening to their parents description why certain requests can/cannot be honored. Influence attempts by adolescents are likely to be effective when they match them to their parents' decision-making style (Palan, Kay M, and R E Wilkes, 1997). Teenagers are exposed to technologies and so they are found to have the greatest relative influence across two areas: suggesting price and learning the best way to buy. The responses for these are of two measures, which harmonized for parents as well as Teenagers. Sometimes, growing children gathered more favourable information for favourable product profiles and less information when cost versus benefit of acquiring information is high. (Paxton, Jennifer Gregan, and Deborah Roedder John, 1995). Not only that younger children use few dimensions to compare and evaluate brands, relying on dominant perceptual features, rather than functional features, in gathering information and making choices (Capon, N, and D Kuhn, 1980). Presently, parents are encouraging children to participate in decision-making process. It may be that the age of the parents, fewer children, and working mother are the situations reporting greater influence. Teenagers are also effectively fitting into the consumer role owing to time pressures and income effects in dual career families. Moreover, exposure to mass media and discussions with parents ensure that teenagers are not only aware of the new brands available, but also know how to evaluate them on various parameters. While younger children clearly affect parental behaviour and purchases, adolescents have full cognitive development and an understanding of the economic concepts required for processing information and selection (John, D R, 1999). This aspect is developed through family life cycle stages.
OBJECTIVES OF THE STUDY

The primary objectives of the study are: To investigate the strategies adopted by teenagers to influence their parents towards purchase of a Walkman used by teenagers. The design and nature of the study is focused on the techniques of problem solving as it analyses within the purview of the main objectives. The research design also provides a scope for drawing logical conclusions. The study relies mainly on the primary data collected through questionnaires supplemented by personal interview. As such, teenagers influences are a bundle of characteristics comprising product attributes; and the influencing strategies.
OPERATIONAL DEFINITION
Teenager: A teenager is a person in the age group between 13 and 19 at the School level, or in the first year degree level of Arts, Science and Professional courses in the colleges in the Metropolitan City of Chennai who possess walkman, two-wheeler and computer. For the purpose of this study, Teenager and Adolescent are the terms used interchangeably.
ROLE OF TEENAGERS A cursory review of research on family consumption and decision making behaviour would lead one to wonder whether the field should be called spousal decision making or whether one should continue to use the misleading term family. Much of this research had been focused on the husband and the wife, and the role of teenagers, which had been ignored often (Lackman and Lanasa 1993). Considering the complexity of relative influence between two decision makers, it was easy to understand why the three-factor interaction (father-mother-teenager interactive influence in decision making) was very challenging. Ward and Wackman (1972) found that attempts by children at influencing purchase were negatively related to the age of the child; however, the tendency of mothers to yield to such influence rose with the age of the child but varied across product categories. They also examined childrens purchase influence attempts and parental yielding in terms of these variables, demographics, parent and child interaction and mothers mass communication behaviour. The study was conducted among various age groups. The result showed that childs purchase influence attempts on the type of product were increasing when mothers yielded to requests. Mothers time spent on watching TV was positively related to influence attempts and yielding. The mothers with more positive attitude towards advertising were more likely than the mothers with negative attitude to yield to influence attempts.

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Mehrotra and Torges (1977) suggested that the extent to which mothers yielded to the influence of the teenager also depended on the extent to which mothers and teenagers were exposed to advertising together. Atkin (1978) found that while teenagers tended to make forceful demands at the point of purchase, their success depended on whether they "ask" or "tell". Atkin reported a greater success rate in the case of teenagers who "tell" rather than "ask". Belch and Ceresino (1985) later studied the diversity in the influence of teenagers. They reported that the extent of such influence varied with product and stage in the decision making process, thus supporting the assertions of Szybillo and Sosanie (1977). It was found that while the role of the teenage child was most prominent at the initiation stage, it was limited thereafter. Michael A. George E Belch and Donald Sciglimpaglia (1979) reported the discrepancy in reports of influence. They detected that while teenagers attributed greater influence in decision making to them, they consistently attributed more influence to the father than to the mother. Foxman, et al (1989b) also found that personal resources of the teenager (such as grades in school) and perceived product knowledge determined the extent of the influence. Supporting Foxman et al.s (1989a) evidence, Beatty and Talpade (1994) reported similar effects on the usage of the teenagers influence. They supported the findings of Belch et al. 1985) about discrepancy in reports when they found that discrepancy was greater between father and teenager, rather than between mother and teenager. Betty, Sharon and Sabit Talpade (1994) found several elements of Foxman, P Tanushaj, and K. Ekstrom (1989a&b) in the study of adolescents influence and a new scale of perceived relative influence. Further, the study examined the effect of parental employment status on teenagers influence, as well as genderbased differences in perceptions. Motivational aspects including product importance and usage provided the strongest and the most consistent explanations of teenagers perceived relative influence across stages and purchase situations. In addition, parental employment status positively influenced teenagers perceived influence of durable family purchases. Mothers and daughters generally did not differ in their ratings of the daughters perceived influence in the durable purchase decision-making process, while fathers and daughters differed much. Ahuja and Stinson (1993) examined the role of children in woman-led households and found that the influence of the child varied across several parameters such as product, the age of the child and the sex-role orientation of the mother. No conclusive patterns could be detected. The studies of Simpson and Linda Diane (1994) revealed that adolescents generally decided alone in catalogue purchase decisions; however, when influenced, friends were considered the most influential people in this regard. Adolescents parents had more influence on higher risk purchases, such as coats, than on lower risk purchases, such as socks. The adolescents parents generally paid for the purchaser. Information generally sought by adolescents is on size and price; brand and product specific attributes most often considered were style, colour and fit. Adolescents tended to compare shops by looking at each page of the catalog used before purchase. Palan Kay Marie (1995) studied family decision making and parent adolescent interactions in the main process of purchase decision. The study examined the effect of family communications, consumer socialization, and gender role identification and power resources on adolescents decision. Here the two types of purchase decisions were used, namely, adolescent clothing decision and family restaurant decision. Simultaneous measurement of each family members relative influence was made using a constant sum scale. The second process examined parent-adolescent interactions and influences through content analysis of personal interviews conducted with the mother, the father, and the adolescent from each family. Several factors were found to influence perception of adolescent significantly. However, the impact varied with respondents and purchase decisions. The types of influence strategies, which were used, by adolescents and parents in purchase decisions identified the usage of patterns and strategy that were developed. In addition, linking strategy used for other study variables developed typologies of adolescent and parent strategy groups. The study revealed that adolescents and parents were engaged in much specified patterns of interaction in family decision process. Adolescents choice of strategy and pattern interaction were dependent on purchase type. Adolescents used more influence strategies for purchases they were personally involved Parents responded to adolescent influence attempts with one of the two patterns: (1) Engaging in strategies that allowed interaction with adolescents and (2) usually controlling strategies intended to preempt the use of adolescent influence strategies. Palan and Wilkes (1997) presented a classification of influence strategies and reported that adolescents were most successful in their influence attempts when they mirrored their parents' strategies. INFLUENCE STRATEGIES Woodside and Moles (1979) identified three unique dimensions in the marital decision making roles for 6 products studied. They were problem recognition, product related and shopping related problems. These dimensions were generalized to some extent across products. Higher level of internal family role agreement was evident with a majority of couples assured agreeing on the spouses role of the decision making in the aggregate as well as in disaggregate analysis. Park (1982) examined more closely the actual process of family decision making. The decision heuristics developed through methodology for examining such decision making, particularly, with respect to similarities and dissimilarities of strategies. He conceptualized a joint decision as characters by a muddling through process rather than by a systematic strategy with limited knowledge and awareness of each spouses decision strategies. Spiro (1983) examined the influence strategies used by husband and wife in resolving disagreements concerning purchase decision. The study also identified those characteristics of the individual and situation, which affected the spouses use of influence. Six different influence strategies were considered such as expert influence, legitimate influence, bargaining, reward influence, emotional influence and impression management. Individuals were grouped first on the basis of combination of influence strategies that they used most often. Six groups were formed in this manner and were labeled non-influencers, lightinfluencers, subtle influencers, emotional influencers, combination influencers and heavy influencers. These groups were then examined in terms of several socio economic and life- cycle variables that significantly discriminated them. The result also indicated that most partners perceptions of each others influencers were not agreeable. Palan and Wilkes (1997) also found that parents used five different influence strategies like Bargaining, Persuasion, Emotional, Request, Legitimate and Directive based on their different roles as authorities, and that teenagers generally accepted and respected this authority. Further, the study dealt with various characteristics, affecting teenagers influence, which were classified as teenager, parental or household decisions. Beatty, Sharon and Salil Talpade (1994) found a clear connection between product importance and adolescent influence in family decision making. The researchers found that teenagers knowledge did affect their perceived influence for the search and deciding process for a family Stereo, which suggested that for some products expertise mattered. Teenagers financial clout seemed to allow them greater say in initiating self-purchases, but not in the decision making for a family purchase except for stereo. The study also dealt with parents dual income status, which allowed teens greater influence for some durable family purchase but not for self-purchases where the influence was already substantial. SAMPLING PROCEDURE According to the Government of India census 2001 Chennai had a population of 6.4 million, in which teenagers population was 5,92,784. Since the population size is very large, it is decided to use non-probability quota sampling technique with a sample size of 600. This figure was arrived at as follows. During the consumer satisfaction survey done by Business World in the middle of June 2003, published on the 25th October 2003, it was found that 80,653 walkman computers were sold in Chennai. An average of 63,864 individuals possessed the products. Hence, it was decided to take a convenient quota sampling of 600. Area blocks were used for the selection of sample and it was decided to target the teenagers studying in schools and colleges. The reason for conducting the study at Chennai is that Chennai is one of the four largest cities in India. It is a city of contrast and diversities, a melodious blending of old and new, traditional and modern outlook where opposite poles meet, agile and maintain a balance of acrobatic agility in a unique ambience. To conduct the study the whole Chennai was divided into four areas as North, East, South and West Chennai. Teenagers who were at different educational stages, viz., school, polytechnic, arts and science colleges and engineering colleges were identified. Further, under quota sampling method two higher secondary schools, two polytechnics, two Arts and Science colleges and two professional colleges in each area were identified and data was collected accordingly. Hence, the survey covered, teenagers in the age

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group of 13-19, studying in school, first year students of arts and science colleges and professional colleges in Chennai, Metropolitan city students are volunteered to participate in this exercise were chosen for the study. After explaining purpose and content of the tool 150 questionnaire was distributed in each area. But, the completed response distribution was as below. AREA BLOCK NUMBER OF TEENAGERS RESPONDED North 147 East 86 South 101 West 133 Total 477 Out of 600 copies Questionnaires distributed, only 569 were returned. Out of 569 received responses only 477 were found fit for the purpose of this study.
ANALYSIS OF THE DATA

PRODUCT EVALUATION- WALKMAN The Varimax factor analysis was carried out over nine statements of product evaluation process aimed at the reduction of the variables into profound explanatory factors. In this factor analysis, two factors are identified. They are product convenience and value addition. FACTOR 1: PRODUCT CONVENIENCE The related statements are: Convenience of the product Dealers display Discount offered by the dealer Financial options available with the dealer Easy and free availability of the product Maintenance cost of the product FACTOR 2: VALUE ADDITION The related statements are: Perceived prestige in possessing them Social Image for the product Resale value of the product TABLE 1: PERCENTAGE OF VARIANCE PRODUCT EVALUATION Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Eigen value % of Variance Cumulative % Eigen value % of Variance Cumulative % 3.106 34.514 34.514 2.503 27.810 27.810 1.430 15.892 50.406 2.034 22.596 50.406 Source: Primary data TABLE 2: FACTOR LOADING OF PRODUCT EVALUATION Product evaluation process statements Factors Product Convenience Value Addition Discount offered by the dealer 0.788 Financial options available with a dealer 0.743 Easy and free availability of product 0.595 Maintenance cost of the product 0.582 Approach by the dealer for purchasers convenience 0.564 Dealer display 0.535 . Perceived prestige in possessing the product 0.845 Social Image of the product . 0.854 Resale value of the product 0.456 Source: Primary data The total variation explained by the two factors of the product evaluation process is 50.406 percent (Table 2). The first factor is named as Product convenience which is supported by discount offer has the highest factor loading of 0.788, followed by financial options available with the dealers with a factor loading of 0.743. Then easy and free availability of product has a factor loading of 0.595, maintenance cost of the product with 0.582, convenience of the product 0.564 and finally dealer display with a factor loading 0.535 also supported the factor. The second factor Value Addition is contributed by perceived prestige in possessing the product with a high factor loading of 0.845, followed by social Image for the product with a factor loading of 0.854 and resale value of the product with a factor loading of 0.456 (Table 1) From the above analysis, it is inferred that product convenience has more influence on the purchase decision than value addition. This implies that teenagers are inclined to get the product for the best value for money more than the social image perceived prestige. This behaviour of the teenagers is manifested in their responsibility and realization, the glue that binds Indian teenagers to their parents. PRODUCT EVALUATION AND INFLUENCING STRATEGY Product evaluation consists of two factors, namely, Product convenience and Value addition. Teenagers influencing strategy is divided into two factors, namely, emotional approach and logical approach. In order to find out the relationship between the influencing strategy and the two factors, namely, Convenience and Value addition, Karl Pearsons co-efficient of correlation is applied and the details are given in the table 3

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TABLE 3: RELATIONSHIP BETWEEN PRODUCTS EVALUATION AND INFLUENCING STRATEGY Influencing strategy Tools used Product Convenience Value Addition Emotional Pearson Correlation 0.039 0.168(**) Approach Sig. (2-tailed) 0.395 0.000 N 477 477 Logical Pearson Correlation 0.097(*) 0.093(*) Approach Sig. (2-tailed) 0.034 0.043 N 477 477 Sig. (2-tailed) 0.000 0.000 N 477 477 Source: Primary data ** Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed). From the above table, it is found that emotional approach has a significant positive correlation with value addition (r = 0.168) at 1% level. Similarly, in respect of logical approach, it has a significant positive correlation with both convenience and value addition factors r = 0.097 and r = 0.093 at 5% level. It could be inferred that the emotionally approaching teenagers try to put forth their points emotionally, in respect of various value addition factors like social image, perceived prestige in possessing the product, resale value of the product and try to influence their parents to get the product. Similarly, logical teenagers try to interact and convince their parents with both conveniences of the product and value addition factors. Convenience cues like convenience of the product, dealers display, discount offered by the dealer, easy and free availability of the product and maintenance cost of the product are given more priority.
CONCLUSION
Teenagers are inclined to get the product for the best value for money more than the social image perceived prestige. This behavior of the teenagers is manifested in their responsibility and realization, the glue that binds Indian teenagers to their parents. Emotionally approaching teenagers try to put forth their points emotionally, in respect of various value addition factors like social image, perceived prestige in possessing the product, resale value of the product and try to influence their parents to get the product.
BIBLIOGRAPHY
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Belch, George E., Michael A. Belch, and Gayle Ceresino (1985), "Parental and Teenage Child Influences in Family Beatty, Sharon E. and Salil Talpade (1994), "Adolescent Influence in Family Decision Making: A Replication with Extension," Journal of Consumer Research, 21 (September), 332-341. Foxman, Ellen, Patriya S Tansuhaj and Karin M Ekstrom, (1989b) Adolescents Influence in Family Decisions: A Socialisation Perspective. Journal of Business Research 18 (March): 159-172. Palan, Kay M, and R E Wilkes, 1997, Àdolescent-Parent Interaction in Family Decision Making', Journal of Consumer Research, 24, (Sept.), pp.159-169. Paxton, Jennifer Gregan, and Deborah Roedder John, 1995, Àre Young Children Adaptive Decision Makers? A Study of Age Differences in Information Search Behaviour', Journal of Consumer Research, 21 (March), pp.567-580. Capon N, and D Kuhn, 1980, A Developmental Study of Consumer Information Processing Strategies, Journal of Consumer Research, 8 (Dec.), pp.225-233; John, D R, 1999, `Consumer Socialisation of Children: A Retrospective Look at Twenty-five Years of Research', Journal of Consumer Research, 26(3), pp.183213. Lackman, Conway and John M. Lanasa. 1993. "Family Decision-Making Theory." Psychology and Marketing 10 (March/April): 81-93. Ward, Scott and Daniel B. Wackman (1972), "Children's Purchase Influence Attempts and Parental Yielding," Journal of Marketing Research, 9 (August), 316-319. Mehrotra, Sunil and Sandra Torges. 1977. "Determinants of Childrens' Influence on Mothers' Buying Behavior." In Advances in Consumer Research 4. Ed. William D. Perreault. Atlanta, GA: Association for Consumer Research, 56-60. Atkin, Charles K. (1978), "Observation of Parent-Child Interaction in Supermarket Decision-Making," Journal of Marketing, 42 (October), 41-45. Belch, George E., Michael A. Belch, and Gayle Ceresino (1985), "Parental and Teenage Child Influences in Family Decision Making," Journal of Business Research, 13 (April), 163-176. Foxman, Ellen, Patriya S Tansuhaj and Karin M Ekstrom, (1989a), `Family Members' Perception of Adolescents Influence in Family Decision Making', Journal of Consumer Research, 15 (March), pp.482-491. Foxman, Ellen, Patriya S Tansuhaj and Karin M Ekstrom, (1989b) Adolescents Influence in Family Decisions: A Socialisation Perspective. Journal of Business Research 18 (March): 159-172. Beatty, Sharon E. and Salil Talpade (1994), "Adolescent Influence in Family Decision Making: A Replication with Extension," Journal of Consumer Research, 21 (September), 332-341. Ahuja, Roshan D. and Kandi M. Stinson. 1993. "Female-headed Single Parent Families: An Exploratory Study of Childrens' Influence in Family Decision Making." In Advances in Consumer Research 20. Eds. Leigh McAlister and Michael L. Rothschild. Provo, UT: Association for Consumer Research, 469-474. Simpson, Linda Diane (1994) Adolescents Catalogue Purchasing Pattern For Clothing Dissertation Abstracts, University of Illinois At Urbana- Champaign (0090) Phd Education, Home Economics (0278); Home Economics (0386) pp 149 Palan Kay Marie (1995), Family Decision Making: A Study of Parent-Adolescent interactions in the Purchase decision making Process. Working Paper, Texas Technical University (02300 PhD pp259. Palan, Kay M, and R E Wilkes, 1997, Àdolescent-Parent Interaction in Family Decision Making', Journal of Consumer Research, 24, (Sept.), pp.159-169. Woodside, Arch G. and William H. Motes (1979), Perceptions of Marital Roles in Consumer Decision Processes for Six Products," in American Marketing Association Conference Proceedings, ed. Neil Beckwith et al., Chicago, IL: American Marketing Association, 214-219. Park, C. Whan. 1982. "Joint Decisions in Home Purchasing: A Muddling Through Process." Journal of Consumer Research 9 (September): 151-162. Spiro, Rosann L. 1983. "Persuasion in Family Decision Making." Journal of Consumer Research 9 (March): 393-402. Palan, Kay M, and R E Wilkes, 1997, Àdolescent-Parent Interaction in Family Decision Making', Journal of Consumer Research, 24, (Sept.), pp.159-169. Beatty, Sharon E. and Salil Talpade (1994), "Adolescent Influence in Family Decision Making: A Replication with Extension," Journal of Consumer Research, 21 (September), 332-341.

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RIGHT TO EDUCATION: EFFECTIVE USE OF ICT FOR REACHING OUT TO SOCIALLY AND ECONOMICALLY WEAKER SECTIONS IN INDIA
PRABIR PANDA RESEARCH SCHOLAR MN NATIONAL INSTITUTE OF TECHNOLOGY ALLAHABAD DR. G P SAHU ASSOCIATE PROFESSOR MN NATIONAL INSTITUTE OF TECHNOLOGY ALLAHABAD THAHIYA AFZAL ASST. PROFESSOR VIT UNIVERSITY VELLORE
ABSTRACT
Most of the enrolment growth in the coming several decades will be in developing countries and India will contribute a significant proportion of that expansion. India by enacting Right to Education Act, 2009 has set out on an ambitious path to provide free and compulsory education to all children in the 6 to 14 age group. As a result the number of students enrolled in elementary schools in far flung villages would definitely see a quantum jump. Challenges of funding, availability of qualified teachers, and building a sustainable academic culture and school infrastructure are significant and real. Providing access to the free education for the children of downtrodden peoples like tribals, lower castes, and dalits is a complex issue in India wherein the fragmentation in the society along religious, ethnic and linguistic lines is deep rooted. In addition, rampant poverty which is the root cause of child labour leaves no time for the affected children to undertake formal schooling. In this paper we review various facets of and challenges in providing access to universal elementary education for the children from socially weaker sections in India. The paper delves into various aspects of this ambitious aim and suggest measures for mitigating the risks and pitfall in Indias march towards achievement of 100% literacy of over 1 billion people. We also explore the ways in which the strengths of ICT can be leveraged in achievement of the goal.
KEYWORDS
Right to Education, Use of ICT in Education, Compulsory Education, State Policy.
INTRODUCTION
. Khan (2001) reported that learning plays central role in sustainable development and it contributes immensely to poverty reduction and income generation, empowerment and consolidation of democracy, disease prevention and sustainable health and to the protection of the environment is by now well known. The close relationship of education, social status and choice of occupation has been underlined by Balasubramanyam & Balasubramanyam (2010). The critical link of education to poverty reduction and human development is depicted in the following figure: FIG 1: PATHWAYS OF EDUCATION TO POVERTY REDUCTION AND HUMAN DEVELOPMENT
Source: Khan, 2001 2. The importance of education on affirmative action and upliftment of masses is not lost on Indian policy makers. In fact Altbach (2009) reported that China and India, which together make up one-third of the worlds population and are two of the most rapidly growing economies, are awakening to the significance of education for technological development and for the global knowledge economy. The economic realities of China and Indias rapid growth are affecting the world, from increased demand for natural resources to their roles as exporters of products of all kinds, a pattern that will continue regardless of the current economic slowdown. A growing impact of these countries is in higher education; their higher education systems are already among the worlds largest, and they are major exporters of students to other countries.
CHALLENGES FOR UNIVERSAL ELEMENTARY EDUCATION IN INDIA

3. The challenges for India in educating its large population have been reported by Datta & Mitra (2010) in their study. They report that about 35% of world's illiterate population is Indian. Despite seemingly optimistic Gross Enrollment Ratios (GER) being recorded and proactive literacy schemes (Sarva Shiksha Abhyan, National Literacy Mission and Mid-day Meal Scheme) being introduced, there is a disparity between these positive indicators and actuality. A high dropout rate of 41.2% is seen at the elementary level. The national literacy rate of girls over seven years is 54% against 75% for boys. In the Northern Hindi-

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speaking states of India, girls literacy rates are particularly low, ranging between 33 50%. Quality of instruction and learning is poor. Students understanding and application of written and verbal expression, logic and reasoning, numeric and quantitative knowledge is inadequate. Geographical remoteness and access challenges, regional/ gender/ socio-economic inequity, poor infrastructure, amenities and non-conducive learning environments, academically inclined (often in contrast to practical applicability), corporal punishment, apathetic and untrained teachers and theoretical pedagogy, are key causative factors for poor accomplishments in the education sector. 4. The Sarva Shiksha Abhiyan was launched in 2001 -02 to attain universal elementary education in India for children in the age group of 6 to 14 years. To ensure that all children attend school, several measures were taken under Sarva Shiksha Abhiyan such as mobilization of the community, providing schools within easy reach, and organizing bridge courses for out-of-school children. In order to assess how far these measures have succeeded, a nation-wide independent sample survey of households was conducted in all the States and Union Territories of India in 2009 to provide estimates of the number and percentage of out-of-school children in the age group 6-13 years (http://ssa.nic.in/). 5. The survey was conducted by Social & Rural Research Institute -IMRB International (SRI-IMRB). The findings of the survey indicated that the country had about 19.1 crores children in the age group 6-13 (i.e. below 14 years), of whom 4.3% children were out of school, in 2005 this figure was 6.9% . Amongst the out of school children, 3.2% children had never attended school and 1.1% were dropouts. Among boys 3.9% children were out of school and among girls 4.6 % children were out of school. The key statistics for the out of school children (as reported by the study) are appended in Table 1: TABLE 1: COMPARISON OF OUT OF SCHOOL CHILDREN 2005 VS 2009
Source: http://ssa.nic.in/ DIAGRAM 1: PERCENTAGE OF OUT OF SCHOOL CHILDREN IN DIFFERENT SOCIAL GROUPS BY LOCATION
Source: http://ssa.nic.in/ 6. The survey brought out that the children belonging to underprivileged and socially backward groups are more likely to drop out of elementary schooling due to one or more of the following reasons acting as a trigger: (a) Poverty / Economic reasons. (b) Child too young to attend school. (c) Child suffers from some disability or poor health. (d) Child is not interested in studies. (e) Child to supplement household income. (f) Needed to help in domestic work. (g) Education not considered necessary by parents or head of the household. (h) School location not suitable. (j) Needed to take care of siblings. 7. The analysis of the results of the study brought out that flagship educational programmes launched by Govt of India have not been able to make significant inroads in the underprivileged sections of the society. These programmes have not achieved the desired results for the children from weaker sections of the society and children living in remote areas. Under the circumstances it would not be out of place to have a look at the efficacy of affirmative action in India.
EFFICACY OF AFFIRMATIVE ACTIONS IN INDIA

8. While positive discrimination has been a policy of the Indian government for decades, a considerable debate is still under way about both the justification for and the effectiveness of the policy. Positive discrimination has been claimed as largely ineffective in raising the status of the downtrodden groups it is intended to help and a mistaken social policy in a meritocratic society (Mahajan, 2007). The studies on affirmative action in India primarily focus on the reservation policy for the scheduled castes/scheduled tribes (SCs/STs), mandated by the Constitution from its inception. Since OBC reservation is

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comparatively a new issue, few studies have concentrated solely on OBCs. Partly because reservation policy had primarily focused on SC/ST candidates till 1990, separate estimates for these categories were available from government sources. All other castes were put in the others category. But inclusion of OBCs for affirmative action since 1999 has resulted in the availability of some data separately for this category as well. Hence, the category of others now includes all upper castes as well as some lower castes close to SCs, and also other lower castes which are not recognised as SCs, STs or OBCs. Gill (2006) reported that the same situation prevails in respect of tribals in India and their relative situation (viz-a-viz general population) has not changed much over the years. Sujatha (1999) in her study brought out that the level of educational development among tribes differs vastly across the provinces. The national average literacy rate among them is 29 per cent. Among the eight provinces, the highest literacy rate among the tribes is 36 per cent, in Gujarat, against 17 per cent in Andhra Pradesh, which is the lowest in the country. Compared to all the provinces, the tribals in Andhra Pradesh stand at the lowest level. 9. Basant & Sen (2010) reported the educational achievements of upper caste Hindus and other upper castes with that of dalits, adivasis and Muslims during 1983 and 2000. Although the primary school enrolment at all income levels are higher for Hindus and other upper castes over this period, the study shows that there is a narrowing trend in the gap between Hindus and other marginalised groups at the higher income levels. It implies that affirmative action in employment may have contributed to higher primary school enrolment over the years (i.e., more people participating in school education in anticipation of getting jobs through reservation). At the same time, improvement in economic condition has increased the effectiveness of the programme. Households with better economic conditions benefited more from the job reservation as it resulted in higher school enrolment.
RIGHT TO EDUCATION AND ACT THEREOF

10. In order to achieve universalisation of education in India, the parliament passed Constitution (Eighty-sixth Amendment) Act 2002 to incorporate right to education as fundamental rights affecting Article 21A, 45 and 51A of the constitution. Further, the Right of Children to Free and Compulsory Education Act (RTE), 2009 (35 of 2009) received the assent of the President on the 26 August 2009 and was published in the Gazette of India Extraordinary No. 39 on 27 August 2009. On 16 February 2010, Central Government in exercise of the powers conferred by section 1(3) of the Act, stipulated 01 April 2010 as the date on which the provisions of the said Act shall come into force (Gazette notification S.O. 428(E)). In addition, Central Govt in exercise of the powers conferred by section 38 of the Act, notified Right of Children to Free and Compulsory Education Rules 2010 (vide G.S.R. 301(E) dated 08 April 2010). 11. The salient provisions of the Act and the rules made there under are (http://education.nic.in/): (a) The Act makes it mandatory for every child between the ages of 6-14 to be provided free education by the State. This means that such child does not have to pay a single penny as regards books, uniforms etc. (b) Any time of the academic year, a child can go to a school and demand that this right be respected. (c) Section 12(1)(c) of the Act provides that private education institutions and specified category schools shall admit (starting 2011) at least 25% of the strength of class I, children belonging to weaker section and children belonging to disadvantaged group from the neighbourhood and provide them free and compulsory education till completion of elementary education. (d) Strict criteria for the qualification of teachers. There is a requirement of a teacher student ratio of 1:30 at each of these schools that ought to be met within a given time frame. (e) The schools need to have certain minimum facilities like adequate teachers, playground and infrastructure. The government will evolve specific mechanisms to help marginalised schools comply with the provisions of the Act. (f) There is a new concept of neighbourhood schools that has been devised. This is similar to the model in the United States. This would imply that the state government and local authorities will establish primary schools within walking distance of one km of the neighbourhood. In case of children for Class VI to VIII, the school should be within a walking distance of three km of the neighbourhood. (g) Unaided and private schools shall ensure that children from weaker sections and disadvantaged groups shall not be segregated from the other children in the classrooms nor shall their classes be held at places and timings different from the classes held for the other children. Right of Children to Free and Compulsory Education Rules, 2010 12. The important government orders / gazette notifications with regards to implementation of the Act / Rules are appended in Table 2 below: TABLE 2: IMPORTANT GOVT ORDERS PERTAINING TO RTE ACT Details National Council of Educational Research and Training (NCERT) was authorised to lay down the curriculum & evaluation, procedure for elementary education and to develop a framework of national curriculum under clause (a) of sub-section (6) of Section 7 of the Act National Council for Teacher Education (NCTE) was authorized to lay down the minimum qualifications for a person to be eligible for appointment as a teacher. National Curriculum Framework 2005 was notified to be the framework for education under the Act till such time as the Central Government decides to develop a new framework. In consideration of the representations received from State Governments (regarding inability to complete recruitment process to achieve Pupil Teacher Ratio (PTR) specified in the Schedule to the Act), the following directions were issued:(i) Rationalise the deployment of existing teachers to address the problems of urban-rural and other spatial imbalances In teacher placements; and (ii) Initiate the process of recruitment of new teachers to fill vacant posts" as per the PTR stipulated in the Schedule. National Advisory Council was constituted (with HRD Minister as chairperson, five Ex-officio Members and nine nominated members) to advice the Central Government on implementation of the provisions of the RTE Act in an effective manner. NCTE (in pursuance of gazette notification No. S.O. 750 (E) dated 31 Mar 2010) laid down the minimum qualifications for a person to be eligible for appointment as a teacher in class I to VIII in a school referred to Section 2(n) of the RTE Act. Schools were directed to follow a system of random selection out of the applications received from children belonging to disadvantaged groups and weaker sections for filling the pre-determined number of seats in that class, which should be not less than 25% of the strength of the class. For admission to the remaining 75% of the seats, the schools were directed to formulate a policy under which admissions are to take place. This policy should include criteria for categorization of applicants in terms of the objectives of the school on a rational, reasonable and just basis. Profiling of students, testing and interviews for any child/parent falling within or outside the categories was prohibited. Selection would be on a random basis. Directions were issued to state governments for ensuring that the rights of Minority Institutions, guaranteed under Articles 29 and 30 of the Constitution, are protected while implementing the provisions of the RTE Act. Guidelines for conducting Teacher Eligibility Test (TET) under RTE Act 2009 notified.
(a)
Notification/G.O. No. S.O. 749(E) dated 31 Mar 2010 S.O. 750(E) dated 31 Mar 2010 F.No.1-13/2009-EE-4 dated 31 May 2010 F.No.1-4/2010 -EE4 dated 22 Jun 2010
(b) (c) (d)
(e) (f)
(g)
S.O 1631(E) dated 08 July 2010 F.No.61-03/20/2010/ NCTE (N&S) dated 23 Aug 2010 F.No.1-15/2010-EE-4 dated 23 Nov 2010
(h) (j)
(k)
F.No.1-1S/2010-EE-4 dated 23 Nov 2010 No.76-4/2010/NCTE/ Acad dated 11 Feb 2011 S.O. 623(E) dated 23 Mar 2011
Relaxation was granted to the State of Orissa in respect-of the minimum teacher qualification norms notified by the National Council for Teacher Education (NCTE) for a period of one year.

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PROBLEMS AREAS OF RTE ACT

13. Jha and Parvati (2010) in their study reported following problem areas concerning the Right to Education Act: (a) Though the act expresses interest in taking necessary steps in providing free pre-school education for children above three years of age, leaving out this critical segment of the child population from the definition is worrisome. Not only does the act fail to cover all children, it does not provide definite timelines for many provisions. (b) The Act fails to tackle the problem of quality of teachers and infrastructure required for undertaking the task involved. (c) Quality monitoring is attainable only in a culture of accountability. The act does not effectively address issues with regard to quality and disciplinary proceedings against the erring schools. In addition, the unaided schools have been left out of the purview of accountability with regard to the provisions contained in Section 21.1 of the act. (d) There is no clarity on who will take lead in financing the Act. Ideally, the central government ought to should do this due to poor fiscal situation in most states. Acknowledging this reality, the Act notes that the states may seek a predetermined percentage of expenditure as grants-in-aid from the central government, based on the recommendations of the finance commission on assessment of additional resource requirements for any state.
USE OF ICT IN EDUCATION

14. Cecchini & Scott (2003) underline that the use of ICT applications can enhance poor peoples opportunities by improving their access to markets, health, and education. Furthermore, ICT can empower the poor by expanding the use of government services, and reduce risks by widening access to microfinance. Realizing the poverty-reducing potential of ICT is not guaranteed. It requires attentive public policy formulation and careful project design. Insufficient information and communication infrastructure, high access costs, and illiteracy have bestowed the benefits of ICT on the better off, urban segments of the population to the detriment of the poor and rural areas. 15. The specific impact of technology on learning has been reported by Sharples, Taylor & Vavoula (2005) in their study. They brought out that learning is mediated by knowledge and technology as instruments for productive enquiry, in a mutually supportive and dynamically changing relationship. The mediation can be analysed from a technological perspective of human-computer interaction, physical context and digital communication, and from a human perspective of social conventions, community, conversation and division of labour. These two perspectives interact to promote a co-evolution of learning and technology. It describes a cybernetic process of learning through continual exploration of the world and negotiation of meaning, mediated by technology. This can be seen as a challenge to formal schooling, to the autonomy of the classroom and to the curriculum as the means to impart the knowledge and skills needed for adulthood. But it can also be an opportunity to bridge the gulf between formal and experiential learning, opening new possibilities for personal fulfillment and lifelong learning. 16. The effectiveness of ICT for reaching out to rural masses and delivery of relevant content including education has been recognized by India long back. In fact, India was amongst the first few countries to explore the use of Satcom for carrying education and development- oriented information and services to the rural masses. The applications started with satellite TV broadcasting to schools and rural communities in the mid-seventies. Under the Edusat utilization programme two types of satellite-based VSAT networks i.e., interactive networks consisting of Satellite Interactive Terminals (SITs) and receive-only networks using Receive-Only-Terminals are being set up in various states across the country for promoting universal education. Generally, interactive networks are set up for imparting teachers training and curriculum-based teaching to students of the arts and science colleges, polytechnics, and management and professional institutes. Similarly, the receive-only networks are being used for imparting curriculum-based education to primary and secondary schools students. To provide these space-based services directly to the rural areas, ISRO has initiated a programme to set up Village Resource Centres (VRCs) in association with NGOs and trusts and state and central agencies concerned. VRCs are envisaged as single window delivery mechanism for a variety of space based products and services, such as tele-education; telemedicine; information on natural resources for planning and development at local level; interactive advisories on agriculture, fisheries, land and water resources management, livestock management, etc.; interactive vocational training towards alternative livelihood; e-governance; weather information, etc. VRCs also address a variety of social aspects locally, and can act as help lines (Bhaskaranarayana, Bhatia, Bandyopadhyay & Jain, 2007). 17. In addition, the Common Services Centers (CSC) is a strategic cornerstone of the National e-Governance Plan (NeGP), as part of its commitment in the National Common Minimum Programme to introduce e-governance on a massive scale. The CSCs would provide high quality and cost-effective video, voice and data content and services, in the areas of e-governance, education, health, telemedicine, entertainment as well as other private services. A highlight of the CSCs is that it will offer web-enabled e-governance services in rural areas, including application forms, certificates, and utility payments such as electricity, telephone and water bills. The Scheme creates a conducive environment for the private sector and NGOs to play an active role in implementation of the CSC Scheme, thereby becoming a partner of the government in the development of rural India. The PPP model of the CSC scheme envisages a 3-tier structure consisting of the CSC operator (called Village Level Entrepreneur or VLE) the Service Centre Agency (SCA), that will be responsible for a division of 500-1000 CSCs and a State Designated Agency (SDA) identified by the State Government responsible for managing the implementation over the entire State. The CSC Scheme has been approved by Government in September 2006 with an outlay of Rs. 5742 Crores over a period of 4 years. It is expected that 100% CSCs would be rolled by March 2011 (http://mit.gov.in/). Though there have been delays in rolling out of CSC in some states. 18. The formal inclusion of ICT in education commenced in centrally sponsored Scheme Information and Communication Technology in School which was launched in December 2004. The Scheme was meant to be a major catalyst to bridge the digital divide amongst students of various socio economic and other geographical barriers. The financial assistance (under the scheme), is given to States and other institutions on the basis of the approvals accorded by Project Monitoring and Evaluation Group (PM&EG) headed by Secretary of the Department of School Education and Literacy. The broad objectives of the scheme are (http://www.indg.in/): (a) To ensure the availability of quality content on-line and through access devices. (b) Enrichment of existing curriculum and pedagogy by employing ICT tools for teaching and learning. (c) To enable students to acquire skills needed for the Digital world for higher studies and gainful employment. (d) To provide an effective learning environment for children with special needs through ICT tools. (e) Promote critical thinking and analytical skills by developing self-learning. This shall transform the classroom environment from teacher-centric to student-centric learning. (f) To promote the use of ICT tools in distance education including the employment of audio-visual medium and satellite-based devices. 19. Datta & Mitra (2010) studied the utilization of technology in education. They reported that national education, especially at the primary and secondary levels, has also failed to adapt the benefits of diverse technologies that are available today for the cause of education.
DISCUSSION AND FINDINGS

20. Analysis of sources of secondary data from OECD, World Bank, UN and various government portals underline following facts (with a bearing on use of ICT in successful implementation of RTE): (a) The government of India charges Access Deficit charge from the various telecom operators to ensure roll out of telecom services in rural and remote areas which are not profitable. This provides funding for the state owned telecom companies to provide services in rural areas which otherwise is financially not viable. (b) The call charges (both local and STD) are one of the lowest in the world which makes mobile calls affordable for the rural populace. (c) The telecommunication sector in India has been witnessing highest growth rates in the world and the trend continues (refer diagram 2 below). The growth in the subscriber base is being caused particularly by the unprecedented growth in mobile telephony. The penetration of mobile phones has been aided

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by the sharp decline in the cost of mobile instrument with many handset available in the market with longer battery life costing below Rs.1000/-. In fact many mobile handsets have facility for solar charging which augers well for remote areas where electricity supply is erratic. DIAGRAM 2: GROWTH OF SUBSCRIBER BASE (IN MILLION) FROM 2000 TO 2010
Source: Annual Report 09-10, TRAI (d) The Government of India has launched many toll free numbers for providing on demand information to the masses through help centres. (e) The National e-Government Plan encompasses installation of Citizen Service Centres connecting government to the citizens spread across the length and breadth of the country. (f) The literacy rate has been increasing over a period of time with corresponding reduction in the poverty levels. The year on year comparison of literacy rates since independence is depicted in Diagram 3 below: DIAGRAM 3: COMPARISON OF LITERACY RATES IN INDIA SINCE INDEPENDENCE
Source: http://www.censusindia.gov.in/ (g) For a country to achieve rapid socioeconomic advancement, a 20 to 25 percent participation rate of the relevant age group in higher education is a prerequisite. Therefore, India must expand its system of higher education further so as to accommodate at least 20 percent of eligible 18- to 24-year-olds. Future policies must capitalize on the ODL system and develop a network of open universities. The ODL system should account for at least 50 percent of total enrollment in higher education and provide a good quality education (Chauhan, 2008). 21. However, a lot remains to be accomplished in order to achieve the mission of 100% literacy envisaged under RTE Act. We need to increase enrollment of children in the schools, motivate them to complete the schooling, creating an enabling environment for the children from the socially / economically weaker sections to study and at the same time contribute in securing bread and butter for their home. We need to implement a system whereby education is available on demand and at the convenience of the leaner and not as per the fixed timings o the schooling. This scheme of education on demand and learn while you earn would enable these children to reap in the benefit accruable through RTE Act and the ICT. Towards this, we could take cue from the bi-modal transmission framework proposed by Basu & Modak (2010). Diagram 4 depicts their conceptual framework to establish a communication channel between the remote rural areas with inadequate education and health care facility and an expert advisory group consisting of a panel of teachers and doctors respectively, interlinked by a group of operators in order to provide service to rural unprivileged through the servers located in the headquarter. The new mobile technology establishes a new-fangled mobile connectivity layer that allows transportation of all relevant data and information from the service information layer represented by the instructors or group of experts towards the application layer as rural remote schools and health care centers. The communication device being mobile phones, successful information exchange demands a mobile based information processing system as an Education Information System (EIS) and a Healthcare Information System (HIS) to deliver and receive relevant information back and forth. DIAGRAM 4: BI-MODAL TRANSMISSION MODEL
Source: Basu & Modak, 2010

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RECOMMENDATIONS
22. In the backdrop of the discussions in preceding paragraphs, we recommend the following measures for ensuring achievement of universal elementary education by effective use of ICT: (a) Integration of formal education and education on demand. The importance Open and Distance Learning environments for developing countries have been underlined by Dele & Osiki (2008) in their study. We need to integrate the formal and informal education systems so that a student can switch between them seamlessly at any time, if necessitated due to his/her social/economic compulsions. For this both the systems would need to share the EIS which would also be economically prudent. The bi-modal transmission model may be used for the purpose (refer Para 21 above). The teachers appointed under the RTE Act could form the pool of resources at remote locations for providing education on demand using ICT tools. The framework suggested by Venkatagiri (2007) for self-paced learning in networked environments could be used in conjunction with bi-modal telecommunication system for flexibility and content richness in education-on-demand system. (b) Open Schooling for Higher Education. Bloom & Rosovsky (2001) underlined that higher education is one of the most powerful mechanisms societies have for upward mobility. It has enormous potential to promote prosperity among people with talent and motivation, irrespective of their social origins. Therefore, once a student completes his elementary education, he should be encouraged to study further. This could be achieved by providing him with the opportunity through open/distance learning environments. The institute similar to National Institute of Open Schooling should be opened in each state/UT. The education could be imparted through EIS utilizing VSC/CSC. For higher education, IGNOU already has infrastructure (in the form of Gyandarshan TV channel) and is also actively involved in imparting distance education. In addition, some of the states have opened up state open universities. We need to strengthen these institutions of open/distance learning and improve the quality of education imparted through them. (c) Adult Literacy Campaign. The need for education of the parents needs no emphasis. Imparting lessons on basic education and financial management to the people of weaker sections (through adult literacy centres in the form of evening classes/EIS) would go a long way in their upliftment. Cohen & Sebstad (2003) brought out that financial education can play an important role in contributing to poverty reduction in developing countries by building peoples knowledge and skills to optimize the use of resources and take advantage of opportunities. Financial literacy can enhance the ability of people in not so well off households to interface more effectively with the financial system not only microfinance institutions, but other formal and informal institutions as well. The attendant awareness from the adult literacy would definitely aid GER. (d) Involvement of Gram Panchayats and NGOs. Comings & Smith (1995) advocated involvement of NGOs in various literacy programmes due to their direct connection to the communities they serve. In fact, Gram Panchayats and NGOs can be used for influencing people in enhancing GER and in reducing dropout rates. In addition, we could enlist support of industry. Recently Ministry of Corporate Affairs, GoI has made it mandatory for the companies to report (to their shareholders) about the expenditure incurred by them on Corporate Social Responsibility (CSR). We could encourage the corporate houses to adopt divisions/villages for overall upliftment including achievement of 100% literacy. The expenditure incurred towards the welfare could be reported towards CSR. Similarly, leading and reputed private schools could be encouraged to patronize the EIS of a district/village. (e) PPP in Education. The development of infrastructure of EIS could be undertaken as Public-private partnership project. The investment in this sector could be promoted by giving exemptions on such investments or by allowing tax rebates. In this context, Prakash (2008) underlined that with the expected diversification of higher education in the coming years, planners would be more concerned about quality assurance and appropriate institutional planning models for ensuring enough autonomy and an effective accountability framework. (f) Dealing with Shortage of teachers in Rural/Remote Areas. The shortage of qualified teachers is a major constraint in remote areas. The problem could be solved by two pronged approach. Firstly, services of retired teachers can be taken to ride over the immediate crisis. Secondly, rural stint may be made mandatory for government teachers. The teachers could be encouraged to take up postings in rural / remote areas by improving their working conditions and suitably compensating them. (g) Emphasize Empiricism. Boswell, Rozelle, Zhang, & Liu (2011) from their study in China emphasize that quantitative, experimental design is the best means to reliably measure success and effectively channel ideas and investments that target the worlds most pressing problems. It should be made mandatory for the District Education Officer to carry out survey of population in his / her jurisdiction about the effectiveness of various educational programmes and report the results to state education department and National Literacy Mission. The help of Gram Panchayats should be enlisted for the smooth conduct of survey. These surveys could form the basis for fine-tuning of the education delivery system. (h) Reduce the Digital Divide. The reduction of digital divide and diffusion of ICT technology to the downtrodden and remote masses is precursor to universalisation of the education. Mistry (2005), underlined the both indirect as well as direct role of the government in bridging the digital divide. DIAGRAM 5: ROLE OF GOVERNMENT IN BRIDGING THE DIGITAL DIVIDE
Source: Mistry, 2005 The government needs to take proactive measures and subsidize technology products to bring them within the reach of poor. A right step in this direction is the development of Sakshat (Sanskrit: "Embodiment") tablet PC for bridging the digital divide between the rich and the poor. The Rs.1,500/- ($30) Tablet PC is currently not available for sale in the market as government has decided to launch it for students in 2011. The device has been developed as part of the National Mission on Education through Information and Communication Technology that aims to link 25,000 colleges and 504 universities on the subcontinent in an elearning program via an existing Sakshat portal (http://sakshattablet.org/).
CONCLUSION
We conclude by underlining the fact that India is a large developing country. It has many issues to address along its journey to all inclusive growth. We need ensure that the benefit of RTE reaches the poorest of the poor living in remote areas by breaking the boundaries of cast, religion and access. We need to address

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the issue of poverty and stark digital divide before the benefits of ICT could be reaped for dissemination of knowledge. We should direct our efforts towards bringing education and schools at the doorstep of the needy children rather pushing them to schools. Ensuring of 100% literacy of over one billion population is though difficult but not impossible to achieve. All we need is sincerity, commitment and right policy measures.
REFERENCES
Altbach, P. G. (2009), One-third of the globe: The future of higher education in China and India, Springer, 39(1), 11-31. doi: 10.1007/s11125-009-9106-1. Balasubramanyam, V. N., & Balasubramanyam, A. (2010), Human Capital and Development A Tale of Two Cities; Software Sector in Bangalore and Hyderabad paper presented at the International Conference on Science, Technology and Economy: Human Capital and Development, Mumbai, India, 11-12 Nov 2010. Retrieved from www.hss.iitb.ac.in/FGKS_IITB_2010/papers/Balasubramanyam.pdf. Basant, R., & Sen, G. (2010), Who Participates in Higher Education in India? Rethinking the Role of Affirmative Action, Economic & Political Weekly, XLV (39), 62-70. Basu, R., & Modak, M. (2010), Modeling a bi-modal telecommunication system for education and health care in rural sector paper presented at Academic Meet 2010, FOSET, Kolkata. Retrieved from http://fosetonline.org/Academicmeet/IEM/42-RANA.pdf. Bhaskaranarayana, A., Bhatia, B. S., Bandyopadhyay, K., & Jain, P. K. (2007), Applications of Space Communication, Current Science, 93(12). Bloom, D. E., & Rosovsky, H. (2001), Higher Education and International Development, Current Science, 81(3), 252-256. Boswell, M., Rozelle, S., Zhang, L., Liu, C., Luo, R., & Shi, Y. (2011), Conducting Influential Impact Evaluations in China: The experience of the Rural Education Action Project, International Initiative for Impact Evaluation, New Delhi. Retrieved from www.3ieimpact.org on 10 Mar 2011. Cecchini, S., & Scott, C. (2003), Can Information and Communications Technology Applications Contribute to Poverty Reduction? Lessons from Rural India, Information Technology for Development, 10(2), 73-84. IOS Press. doi: 10.1002/itdj.1590100203. Chauhan, C.P.S. (2008), Higher Education: Current Status and Future Possibilities in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, Analytical Reports in International Education, 2(1), 29-48. doi: 10.3890/arie.2.1.29. Cohen, M., & Sebstad, J. (2003), Financial Education for the Poor, Working Paper #1, Washington, US, Retrieved from www.globalfinancialed.org/documents/WP1_FinEd4Poor.pdf on 12 Mar 2011. Comings, J. P., & Smith, C. (1995), Adult Literacy Programs: Design, Implementation and Evaluation, Center for Human Capacity Development, U.S. Agency for International Development. Retrieved from http://pdf.usaid.gov/pdf_docs/PNABX789.pdf on 12 Mar 2011. Datta, D., & Mitra, S. (2010), M-Learning: Mobile - Enabled Educational Technology, Retrieved from http://www.cks.in/html/cks_pdfs/M-LearningMobileenabled Educational Technology.pdf. Dele, B., & Osiki, J. O. (2008), The Impact of Technology on Accessibility and Pedagogy: the Right to Education in Sub-Saharan Africa, Asian Journal of Distance Education, 6(1), 53 - 62. Retrieved from http://www.asianjde.org. Gazette notification S.O. 428(E). Retrieved from http://education.nic.in/. Gill, M. S. (2006), Situation of Tribal Population in India, Demography, III (540), 91-104. Govt Order: F.No.1-13/2009-EE-4 dated 31 May 2010. Retrieved from http://education.nic.in/. Govt Order: F.No.1-15/2010-EE-4 dated 23 Nov 2010. Retrieved from http://education.nic.in/. Govt Order: F.No.1-1S/2010-EE-4 dated 23 Nov 2010. Retrieved from http://education.nic.in/. Govt Order: F.No.1-4/2010 -EE4 dated 22 Jun 2010. Retrieved from http://education.nic.in/. Govt Order:F.No.61-03/20/2010/NCTE(N&S) dated 23 Aug 2010. Retrieved from http://education.nic.in/. Govt Order: No.76-4/2010/NCTE/Acad dated 11 Feb 2011. Retrieved from http://education.nic.in/. Govt Order: S.O 1631(E) dated 08 July 2010. Retrieved from http://education.nic.in/. Govt Order: S.O. 623(E) dated 23 Mar 2011. Retrieved from http://education.nic.in/. Govt Order: S.O. 749(E) dated 31 Mar 2010. Retrieved from http://education.nic.in/. Govt Order: S.O. 750(E) dated 31 Mar 2010. Retrieved from http://education.nic.in/. Govt Order: S.R. 301(E) dated 08 April 2010. Retrieved from http://education.nic.in/. Jha, P. and Parvati, P. (2010), Right to Education Act 2009: Critical Gaps and Challenges, Economic and Political Review, Vol XLV No. 13. Retrieved from http://images2.asercentre.org/Contents/RTE_critical.pdf Khan, A. W. (2001), Learning for a Better Future: Overcoming Disadvantages paper presented at the 20th ICDE World Conference on Open Learning and Distance Education (pp. 01 - 05). Dsseldorf, Germany. Mahajan, N. (2007), The Cream of Indias Colleges Turns Sour, Far Eastern Economic Review, 170(1), pp. 6265. Mistry, J. J. (2005), The Role of E-Governance: A Case Study of India paper presented at the IADIS International Conference e-Commerce 2005, pp 158-166. Prakash, V. (2008), Directions in Educational Planning: Changing Landscape of Educational Planning in India: Planning and Administration, NUEPA, New Delhi, India. Right of Children to Free and Compulsory Education Act (RTE), 2009 (35 of 2009). Retrieved from http://education.nic.in/. Sharples, M., Taylor, J., & Vavoula, G. (2005), Towards a Theory of Mobile Learning Mind, Retrieved from http://www.mlearn.org.za/CD/papers/SharplesTheory of Mobile.pdf on 10 Mar 2011. Sujatha, K. (1999), Education of India Scheduled Tribes: A Study of Community Schools in the district of Vishakhapatnam, Andhra Pradesh, UNESCO. Retrieved from http://www.unesco.org/iiep on 10 Mar 2011. Telecom Regulatory Authority of India, Annual Report 09-10. Retrieved from http://www.trai.gov.in/. The Department of Information Technology portal is a single point of availability of all resources pertaining to Information Technology. (http://mit.gov.in/) The India Development Gateway (InDG) portal is dedicated to empowerment of rural India. InDG initiative is supported by Dept of Info Tech, MCIT, GoI and executed by Centre for Development of Advanced Computing, Hyderabad. (http://www.indg.in/) The Indian Census portal is the most credible source of information on population characterstics, Economic Activity, Literacy and Education, Housing & Household Amenities, Urbanisation, Fertility and Mortality (http://www.censusindia.gov.in/) The portal of Ministry of HRD contains information on various educational programmes and policies of central government (http://education.nic.in/) The portal provides complete information regarding Sakshat tablet PC. (http://sakshattablet.org/). The Sarva Shiksha Abhiyan portal of Ministry of HRD, GoI is a single point source of information pertaining to this flagship programme. (http://ssa.nic.in/). Venkatagiri, S. (2007), Promoting collaborative learning in higher education paper presented at IADIS International Conference Applied Computing 2007, pp. 421-430, Morristown, NJ, USA: Association for Computational Linguistics. doi: 10.3115/1599600.1599679.

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WEB RESOURCES FOR GREEN REVOLUTION

M. PADMINI LECTURER DEPARTMENT OF MANAGEMENT STUDIES V.S.B ENGINEERING COLLEGE KARUR M. SURULINATHI ASST. LIBRARIAN DEPARTMENT OF LIBRARY & INFORMATION SCIENCE BHARATHIDASAN UNIVERSITY TIRUCHIRAPPALLI T. R. SAJINI NAIR LIBRARIAN DEPARTMENT OF LIBRARY & INFORMATION SCIENCE V.S. B. ENGINEERING COLLEGE KARUR T. SUHIRTHARANI STUDENT DEPARTMENT OF MANAGEMENT STUDIES INDIRA GANDHI COLLEGE TRICHY
ABSTRACT
This article describes the many web resources made available to users in the form of open access and subscribed in the form of E-journals, E-Books, e-theses and video sharing web sites. It proves that open access and subscribed resources may be prepared even for highly resource-demanding lessons on text, image, video and audio processing and compression. This paper helps to online learners of Green revolution professionals to aware of web-based resources available on Internet. The creation and application of web resources will support learning and teaching process.
KEYWORDS
Web Resources; Green Revolution; open acess; Video sharing Website.
INTRODUCTION
he popularity of the World Wide Web and the incredible rapid growth of the web technology could not be imagined a decade ago. Web is a globally hyper linked electronic environment on which a lot of latest information is available in almost all subject areas. Keeping this in mind, an exhaustive information search was conducted on Internet to compile a list-of various web sites providing information on the use of multimedia systems for library applications. Rapid increase number of Internet access points all over the world leads to many research on new technologies for education and working. The creation and application of web resources will support learning and teaching process.
WEB RESOURCES FOR GREEN REVOLUTION

Video Sharing Websites E-Journals E-Books Electronic Theses and Dissertations and so on.
MULTIMEDIA@TEACHER TUBE
Teachertube is to provide anytime, anywhere professional development with teachers teaching teachers. As well, it is a site where any one can post videos designed for students to view in order to learn a particular game. With TeacherTube, community members can: Upload, tag and share videos worldwide. Upload Support Files to attach your Green based Speeches, formats to your video. Browse hundreds of videos uploaded by community members. Customize the experience by subscribing to member videos, saving favorites, and creating play lists.

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TABLE 1: SHOWS DISTRIBUTION OF VIDEOS IN TEACHERTUBE S. No. Key word/Terminology No of Videos 1 Green Buildings & Smart homes 7 2 Green Computing 19 3 Green ICT 10 4 Green Engineering 56 5 Green Educational Technologies 23 6 Green Manufacturing & Energy efficiency 1 7 Sustainable development 29 8 Green Management and Marketing 6
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MULTIMEDIA@YOUTUBE The below table shows that videos made available to user in the form of open access in youtube. YouTube is a video sharing website where users can upload, view and share video clips. In November 2006, YouTube, LLC was bought by Google Inc. and is now operated as a subsidiary of Google. The company is based in San Bruno, California, and uses Adobe Flash Video technology to display a wide variety of user-generated video content, including movie clips, TV clips, and music videos, as well as amateur content such as video blogging and short original videos. Most of the content on YouTube has been uploaded by individuals. TABLE 2: S. No. 1 2 3 4 5 6 7 8 SHOWS DISTRIBUTION OF VIDEO COLLECTION IN YOUTUBE Key word/Terminology No of Videos Green Buildings & Smart homes 891 Green Computing 2080 Green ICT 958 Green Engineering 5790 Green Educational Technologies 1430 Green Manufacturing & Energy efficiency 425 Sustainable development 9160 Green Management and Marketing 841
MULTIMEDIA@GOOGLE VIDEO (http://video.google.com/) Google Video is a free video sharing website and also a video search engine from Google that allows anyone to upload video clips to Google's web servers as well as make their own media available free of charge; some videos are also offered for sale through the Google Video Store. The below table shows number of collection available on green engineering, green building, green marketing and so on. TABLE 3: SHOWS DISTRIBUTION COLLECTION IN GOOGLE VIDEO S. No. Key word/Terminology No of Videos 1 Green Buildings & Smart homes 1,280 2 Green Computing 3,040 3 Green ICT 1,690 4 Green Engineering 10,300 5 Green Educational Technologies 1,960 6 Green Manufacturing & Energy efficiency 503 7 Sustainable development 14,400 8 Green Management and Marketing 1,810 DOAJ (http://www.doaj.org/) The aim of the Directory of Open Access Journals is to increase the visibility and ease of use of open access scientific and scholarly journals thereby promoting their increased usage and impact. The Directory aims to be comprehensive and cover all open access scientific and scholarly journals that use a quality control system to guarantee the content. The below table shows number of videos available in DOAJ. TABLE 4: SHOWS DISTRIBUTION JOURNAL ARTICLES IN DOAJ S. No. Key word/Terminology Publications 1 Green Buildings & Smart homes 2 Green Computing 9 3 Green ICT 4 Green Engineering 2 5 Green Educational Technologies 1 6 Green Manufacturing & Energy efficiency 7 Sustainable development 1696 8 Green Management and Marketing 1 NDLTD (NETWORKED DIGITAL LIBRARY OF THESES AND DISSERTATIONS) NDLTD is an international organization dedicated to promoting the adoption, creation, use, dissemination, and preservation of electronic theses and dissertations (ETDs). The below table shows number of journal article available on green revolution in NDLTD. TABLE 5: SHOWS DISTRIBUTION OF ETD IN NDLTD Key word/Terminology E-Theses Green Buildings & Smart homes 3,534 Green Computing 21,936 Green ICT 2,846 Green Engineering 54,326 Green Educational Technologies 13,398 Green Manufacturing & Energy efficiency 10,661 Sustainable development 39,249 Green Management and Marketing 17,123
S. No. 1 2 3 4 5 6 7 8

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BIBLIOGRAPHIC DATABASES Biographic databases are used to store collections of bibliographic records. Scopus and Web of Science databases contained fields to store information about a limited range of printed works, books reviews, articles, Letters, meeting abstract, Conference publications manuscripts etc. It also helps to know the Citations, Hindex, and Impact Factor for particular Journal and so on. TABLE 6: SHOWS DISTRIBUTION PUBLICATIONS IN DATABASES Key word/Terminology Scopus Web of Science 1999-2011 Green Buildings & Smart homes 594 3 Green Computing 1806 2462 Green ICT 172 52 Green Engineering 11258 3259 Green Educational Technologies 105 18 Green Manufacturing & Energy efficiency 133 35 Sustainable development 68572 18206 Green Management and Marketing 1599 6966
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E-JOURNAL DATABASES Access > 7,00,000 E-journals articles covering Subjects like Green Buildings & Smart homes, Green Computing, Green ICT, Green Engineering, Green Educational Technologies, Green Manufacturing & Energy efficiency, Sustainable development, Green Management, Green Marketing by Springerlink and Elsevier Science. TABLE 7: SHOWS DISTRIBUTION PUBLICATIONS IN DATABASES S. No. Key word/Terminology Springer Elsevier 1 Green Buildings & Smart homes 1,805 2808 2 Green Computing 36,791 63012 3 Green ICT 14,391 4563 4 Green Engineering 1,06,824 219200 5 Green Educational Technologies 12,513 17080 6 Green Manufacturing & Energy efficiency 3,752 14281 7 Sustainable development 70,377 121999 8 Green Management and Marketing 1,08,563 26925
CONCLUSION
Digital Libraries and Multimedia brings together in one place important contributions and up-to-date research results in this fast moving area. Libraries need to balance provisions for greater access to text based information systems as opposed to limited-scale, multimedia products. However, as Libraries move into the twenty-first century, multimedia integrated library systems will become a necessity rather than a luxury.
REFERENCES
Qiu Junping et al. The application of Multimedia in Academic Library, International Conference on Multimedia and Information Technology, pp.703-706, 2008. 2. R. Balasubramani, N. Amsaveni, M. Surulinathi, and C. Ranganathan,Web Resouces for Physical Education and Sports Sciences, National Conference on emerging trends in Physical Education and Sports Sciences, March 12, PP. 157-161, 2011. WEBSITES 3. http://videolectures.net/ 4. http://freevideolectures.com/mav.html 5. http://www.uwtv.org/index.aspx 6. http://web.sls.csail.mit.edu/lectures/ 7. http://videolectures.net/ 8. http://www.youtube.com 9. http://www.teachertube.com 1.

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IPOs GRADE AND POST ISSUE PERFORMANCE: AN EMPIRICAL STUDY

DR. ISHWARA. P ASSOCIATE PROFESSOR DEPARTMENT OF COMMERCE MANGALORE UNIVERSITY MANGALAGANGOTHRI DR. CIRAPPA. I. B ASST. PROFESSOR DEPARTMENT OF COMMERCE, DAVANAGERE UNIVERSITY SHIVAGANGOTHRI, THOLUHUNSE
ABSTRACT
The Indian Stock Market which is performing well and has doubled its low in March 2009. The BSE SENSEX was 8325, now it is hovering around 16500-18500 is more than doubled in last two years. Indian economy is growing at robust pace and performance of the economy is very good in last two years. If we look at the performance of IPOs, 74 per cent of total 222 listed from 1-4 2007 to 31-3-2010 are trading below their issue price. In this direction an attempt has been made to evaluate the post issue performance of Initial Public Offers (IPOs) listed during the year 2010 and also to identify is there any benefits of IPOs grading to the retail investor. The study result reveals that 93 per cent and above issues in 2010 are trading below their issue price and some of them performed really badly. The government entities are no exception to them. As far as IPOs grading is concerned equities are graded on a scale of one to five. The higher the rating, the better is the issue. The study result shows that Issues with Grade 4 yielded high losses compared to other low grades. On the listing day, only issues with Grade 1 and Grade 3 proved to be beneficial to the investors marginally. Grade 2 and Grade 4 issues resulted in losses.
KEYWORDS
IPO, Stock Market.
INTRODUCTION
he primary market for equity in India gained momentum after the liberalization initiative taken by the government in the early 1990s. During the last twenty years, the Indian IPO market has undergone many changes that are widely seen to have improved its transparency and efficiency. In particular, the initial years of liberalization, after 1990-91, witnessed a boom in the Indian IPO market. With fewer regulations during this period, many entrepreneurs used the primary market as the main vehicle to raise capital as well as reduce their own holdings. The favorable developments lead to rapid growth in the quantum of financial investment. Thus, the primary capital market in India has been witnessing tremendous growth in the number of new issues hitting the market, surpassing the normal growth that is expected as a result of growth economy. In the 21st Century, the revival of the primary market, which started in 2003-04, gathered momentum in 2004-05 and further invigorated in 2005-06, 2006-2007. Strong macro-economic fundamentals, sustained growth of the manufacturing sector, active institutional support led by FIIs and mutual funds, positive investment climate, sound business outlook, encouraging corporate results and buoyant secondary market induced large number of companies to raise resource from the primary market. Apart from several mega issues, large number of small and medium sized companies mobilized resources through public and rights issues. The private sector continued to dominate the primary market activities during these years. There was overwhelming response to most of the public issues reflecting risk appetite of the investors in general and sustained investment activities in particular. Regulatory reforms such as introduction of proportionate allotment and margin requirement for the Qualified Institutional Buyers (QIBs) and special allocation to mutual funds within the QIBs category also contributed to brisk activities in the primary market. During this period the SEBI introduced various regulatory measures, in order to protect the interest of stakeholders. Some of the regulatory reforms introduced in the Indian capital market in the recent past are listed out below.
REGULATORY REFORMS IN THE INDIAN IPOs MARKET

Booking Building: This process helps discover the price of an IPO. The company sets a floor price (the lowest price in the band) and a ceiling price (or cap). The actual price is determined depending on how many bids came at what price. Allotment of Shares: In cases of book-built issues, the basis of allotment is finalized by lead managers or investment bankers within two weeks from the date of closure. In a situation where a company is divesting more than 25 per cent under a proportionate allotment system, three classes of investors can bid for the shares. At least 50 per cent shares are reserved for Qualified Institutional buyers (QIBs). These include mutual funds and foreign institutional investors. The bidding limit for retail category was raised to Rs 2 lakh (in the Securities and Exchange Board of Indias latest order). At least 35 per cent is reserved for this category. The balance bids are offered to HNIs (High Net-worth Individuals) or non-institutional investors (NIIs) and corporate. At least 15 per cent is reserved for this category. If the promoters are diluting less than 25 per cent stake in an IPO, QIBs get 60 per cent reservation, retail 30 percent and NIIs 10 per cent. Subscription: Retail investors and HNIs are allotted shares on a proportional basis. For example, the Coal India IPO was subscribed two times in the retail category (If Mr X has applied for 200 shares, he will qualify for 100 shares, 200/2). Similarly, an HNI will get eight shares as the category was subscribed 24 times. Sometimes, if the subscription is huge or the price is too high, the allotments are made by lottery. Say, you apply for five shares and the category is subscribed 10 times. In this case, you are entitled to half a share. Since its not possible, the company may allot shares to one out of every two investors. IPOs Grading: Grading of equity instruments in its initial public offerings (IPOs) is unique to Indian capital markets. The capital market regulator, SEBI introduced grading of IPOs initially on a voluntary basis on December 30, 2005, and subsequently made it compulsory with effect from May1, 2007. Equities are graded on a scale of one to five. The higher the rating, the better is the issue. ASBA: In Applications Supported by Blocked Amount (ASBA), the bid amount is blacked in bank account of the applicant till the allotment. For instance, if Mr X applied for shares worth Rs 2 lakh, this amount gets blocked in his account. On allotment, shares worth Rs 50,000 will be credited to his demat account and the remaining amount Rs 1, 50,000, unblocked by bank account. IPO Discount at Application Stage: Retail investors to a public issue and employees of company concerned can benefit from the discount clause at application stage itself and not while allotment is being done. This is to enable investors to apply for a higher quantity of shares with the same outlay of funds net of discount. This comes into effect on companies filing their red herring prospectus or prospectus with the Registrar of Companies on or after June 15, 2011.
REVIEW OF PAST STUDIES ON IPOs PRICING AND PERFORMANCE

Performance of IPOs in the long run and short run is a well researched area in the capital markets literature. Reilly and Hatfield (1969) reported under-pricing to the extent of 11% from their study of the IPOs in US during the period 1963-65. Subsequently Ibbotson (1975), Reilly (1977), Aggarwal and Rivoli (1989), Ritter (1991), Loughran and Ritter (1995), Ritter and Welch (2002), Ljungqvist andWilhelm (2003) all document under-pricing in the U.S. market. Jog and Riding (1987) report the same for the Canadian market; Ljungqvist (1997) for the German market; Gong and Sekhar (2001) for the Australian market also report under pricing.

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Wong and Chiang (1986) for the Singapore market; Chen et al (2004) for the Chinese market and Yong and Isa (2003) provide evidence on under-pricing of IPOs in the Asian markets. It is clear that most studies agree that IPOs leave some money on the table where the money left on the table is the difference between the listing day's close price and the offer price multiplied by the number of shares outstanding. Under-pricing of IPOs is explained by various researchers in different ways and the same may be classified as under: Information Asymmetry Hypothesis: According to Rock (1986) investment community is characterized with two kinds of investors informed and uninformed investors. When a new issue comes to the market by virtue of their knowledge informed investors keep away from poor quality issues or will be investing only if the aftermarket returns are positive. While uninformed investors subscribe to all issues both good as well as poor quality issues and in all likelihood they will get higher allocation in the later type of issues. This may lead the uninformed investors to keep away from the new issues market. Therefore by under- pricing these investors will be lured to participate in the new offerings. Koh and Walter (1989) working on the Singapore market directly tested this hypothesis and their results corroborate this hypothesis. Signaling hypothesis: Allen and Faulhaber (1989) propose that a good quality issuer by under-pricing the IPO will subsequently return to the market with a seasoned offering and raise money at better terms. Welch (1992) finds evidence that almost a third of the new issuers returned to the market with a seasoned offering. Other explanations include Tinic (1989) who suggested that under-pricing discourages investors to file law suits against the issuer and Benveniste and Spindt (1989) propose that investors with more information ill be enticed to reveal more information by under-pricing the IPOs. In the Indian context Shah (1995) documents a phenomenal 105.6% excess return over the offer price in a study of 2056 new listings over the period January1991 to May 1995. However, this study provides evidence on the short run performance only while Madhusoodanan and Thiripalraju (1997) from a study on IPOs offered on BSE during the period 1992 to 1995shows that under-pricing was higher than the international experiences in the short run and in the long run too they yield higher returns compared to the negative returns recorded from the international markets. Krishnamurti and Kumar (2002) working on a sample of IPOs that hit the market between 1992 and1994 demonstrate that the under-pricing is to the extent of 72.34% (market adjusted returns). Kakati (1999)analyzed the performance of a sample of 500 IPOs that came to the market during January 1993 to March 1996and documents that the short run underpricing is to the tune of 36.6% and in the long-run the overpricing is 40.8%. The short-run performance of IPOs has been extensively researched and clearly indicates that on average investors outperform which leads to some loss of value to the issuer of stock. In very few studies on average investors under-perform i.e. stocks were over-priced. IPO short-run performance (under-pricing) has been one of the persistent empirical phenomena for many decades. Kenourgios et. al. (2007) analyzed 169 IPOs listed on the Athens Stock Exchange over the period 1997-2002. The average raw return of the first day was 52.7%, while the average adjusted return was 54.28%. The average raw return of the 5th and the 21st day were 44.78% and 41.84% respectively, while the average excess return was 45.32% and 43.83%. The results suggest that the new issues were on average under-priced since it had significant returns for those who had participated in the offering and sold the new shares at the closing of the 1st, 5th and 21st day, respectively. Another study on the listed securities at Shanghai and Shenzhen stock exchange by Liu & Lie (2000) investigated 781 securities using 09-years data and found that on average market adjusted short run performance (return) was 139.4%. Their analyses revealed that the first day initial return was much higher in 1991, 1992 & 1993. Market adjusted short run performance (return) for 1st, 5th, 10th and 20th trading days of Shenzhen stock exchange were higher than those of Shanghai stock exchange. Under-pricing of initial public offerings in Bangladesh was analyzed by Hasan and Quayes (2008) using a sample of 90 IPOs issued in mid nineties during stock market bloom. They identified that increased ownership stake and foreign participation were the factors which negatively affect the magnitude of under pricing. They analyzed the comparison of mean percentage under-pricing on first day between premium and par issues. Findings showed that premium issues are less under-priced than IPOs issued at par. U.S. IPO market has been researched extensively over the last decades. The last updated by Loughran et al (2006) in 15,333 IPOs that were listed in the period 1960-2005 revealed 1st day returns of 18.1%. Similar to this finding Ritter and Welch (2002) reported initial returns of 18.8% in the U.S. from 1980-2001. Choi and Nam (1998) reported that Australian Public IPOs are more under-priced than private sector IPOs. They found that, in general, over their sample of 30 countries, PIPOs were more under-priced than private-sector IPOs. Peter (2007) in his research paper investigated initial return on IPOs of a developing country Sri Lanka and found that in emerging market under-pricing exist in high level as compared to developed countries. Results showed that privatized IPOs had higher average return as compared to non-privatized, privatized IPOs' excess return is 98%. The holding period return was found positive for the first two years while the out-performance finished after three years of initial listing. Initial excess return was almost similar to that of middle income countries like Malaysia, Mexico, Poland and Thailand -priced by 63.92% with 30 IPOs (13.3%) to be overpriced. The initial under-pricing was 67.14% for industrial firms, 54.55% for finance firms and 56.19% for other firms. In terms of sub-sectors the highest return was obtained in Information Technology group while the lowest return was observed in Telecommunication Group. Results suggest that the IPO market on Greece was 'good' only for large offerings. Investigation of factors influencing the initial performance show that market condition, demand multiple, cold-hot issue periods, and offer price independence are significant determinants of under-pricing. Banerjee et al (2009) in their article empirically analyzed the crosscountry differences in IPO under-pricing among 18 countries between 2000 and 2006. They had studied the impact of cross country differences in information asymmetry, home bias, enforcement mechanism, and litigation risk on IPO under-pricing. They found that on average investors out-perform in short-run by considering the impact of cross-country differences in information asymmetry, home bias, enforcement mechanism, and litigation risk on IPO under-pricing variables.
STATEMENT OF THE RESEARCH PROBLEM

The Indian Stock Market which is performing well and has doubled its low in March 2009. The BSE SENSEX was 8325, now it is hovering around 16500-18500 is more than doubled in last two years. Indian economy is growing at robust pace and performance of the economy is very good in last two years. If we look at the performance of IPOs, 74 per cent of total 222 listed from 1-4 2007 to 31-3-2010 are trading below their issue price. Almost 27 per cent of total issues lost more than 70 per cent of their issue price and 16 per cent lost their value 80 per cent and above. In this direction an attempt has been made to analyze the performance of the IPOs listed during the year 2010 with the following objectives.
OBJECTIVES OF THE STUDY

The primary objective of this paper is to measure the performance of IPOs listed during the year 2010. In addition to there are the following specific objectives: 1. To know the recent regulatory changes in the Indian capital market. 2. To evaluate the post issue performance of IPOs. 3. To evaluate IPOs grading and its benefits to investors. 4. To make some suggestions to the potential investors.
RESULTS AND DISCUSSIONS

TABLE 1: IPOs ACTIVITY IN INDIA DURING 2000-01 TO 2010-11
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 No. of Issues 119 19 14 34 34 102 85 91 22 47 Amount ( Rs. Crore) 6,518 6,423 5,732 22,131 25,526 23,676 24,993 53,219 3,534 49,411
Source: Handbook of Statistics on the Indian Securities Market 2010

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Table -1 presents a snapshot of the IPO activity from the beginning of the new millennium. It can be noted there are a total of 567 issues till March 2010 and the number represents IPOs issued following the Book building route as well as Fixed Price Offer route though a majority of them might had been through the book building method. TABLE-II: IPOs PERFORMANCE DURING THE YEAR 2010
S. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 Company Aqua Logistics Ltd Bajaj Corp Ltd DB Realty Ltd Gyscoal Alloys Ltd Aster Silicates Ltd Tirupati Inks Ltd. Sea TV Network Ltd. Cantabil Retail India Ltd Commercial Engineers & Body Builders Co Ltd Emmbi Polyams Ltd Tarapur Transformers Ltd SKS Microfinance Ltd Birla Sholka Edutech Ltd. Midfield Industries Ltd. Syncom Healthcare Ltd Microsec Financial Services Ltd. Texmo Pipes and Products Ltd. Goenka Diamond & Jewels Ltd. BS Transcomm Ltd Intrasoft Technologies Ltd. Ravi Kumar Distilleries Ltd. Nitesh Estates Ltd. Orient Green Power Company Ltd Hathway Cable & Datacom Ltd Vascon Engineers Ltd Man Infraconstruction Ltd Jaypee Infratech Ltd A2Z Maintenance & Engineering Services Ltd. Ramky Infrastructure Ltd. Indosolar Ltd Technofab Engineering Ltd. DQ Entertainment (International ) Ltd. JSW Energy ltd. Shipping Corporation of India Ltd. Pradip Overseas Ltd. IL & FS Transportation Networks Ltd. Prestige Estates Projects Ltd Claris Lifesciences Ltd. Electrosteel Steels Ltd SJVN Ltd. Eros International Media Ltd. Punjab & Sind Bank Ashoka Buildcon Ltd Tecpro Systems Ltd. NMDC Ltd. NTPC Ltd. Shree Ganesh Jewellery House Ltd. Oberoi Realty Ltd. MBL Infrastructures Ltd. VA tech Wabag Ltd Hindustan Media Ventures Ltd Engineers India Ltd. R P Infra Projects Ltd. Infinite Computer Solutions (India) Ltd MOIL Ltd. Career Point Infosystems Ltd. Standard Chartered PLC Arss Infrastructure Projects Ltd. Bedmutha Industries Ltd. D B Corp Ltd. Persistent Systems Ltd Gujarat Pipavav Port Ltd. Prakash Steelage Ltd Godrej Properties Ltd. United Bank of India Coal India Ltd. Talwalkars Better Value Fitness Ltd. Mandhana Industries Ltd. Gallantt Ispat Ltd. Rural Electrification Corporation Ltd. Thangamayil Jewellery Ltd. Gravita India Ltd. Jubilant Foodworks Ltd. List Date 23-Feb -10 18-Aug-10 24-Feb-10 27-Oct-10 28-Jul-10 1-Oct-10 14-Oct-10 12-Oct-10 18-Oct-10 24-Feb-10 18-May-10 16-Aug-10 29-Jan-10 4-Aug-10 15-Feb-10 5-Oct-10 10-Mar-10 16-Apr-10 27-Oct-10 12-Apr-10 27-Dec-10 13-May-10 8-Oct-10 25-Feb-10 15-Feb-10 11-Mar-10 21-May-10 23-Dec-10 8-Oct-10 29-Sep-10 16-Jul-10 29-Mar-10 4-Jan-10 15-Dec-10 5-Apr-10 30-Mar-10 27-Oct-10 20-Dec-10 8-Oct-10 20-May-10 6-Oct-10 30-Dec-10 14-Oct-10 12-Oct-10 29-Mar-10 19-Feb-10 9-Apr-10 20-Oct-10 11-Jan-10 13-Oct-10 21-Jul-10 12-Aug-10 6-Dec-10 3-Feb-10 15-Dec-10 6-Oct-10 11-Jun-10 3-Mar-10 14-Oct-10 6-Jan-10 6-Apr-10 9-Sep-10 25-Aug-10 5-Jan-10 18-Mar-10 4-Nov-10 10-May-10 19-May-10 11-Oct-10 8-Mar-10 19-Feb-10 16-Nov-10 8-Feb-10 List Price 219.4 730 430 76.6 127.7 53.95 120 133.8 122.8 45.5 75 1036 49 159.4 88 135.1 101.5 130 251 140 64 50 45.7 246 170 335 93 390 450 29.75 265 135 102 136..9 120 287 190 224.4 12.35 28 213.35 146.1 333.55 399.4 295.7 204 258.85 280 190 1655 170 315 75 178.35 551 461 105 640 114.4 250 400 56.25 118.55 510 77 287.75 138 132.7 48.9 230 70 218.75 161.6 Current Price 15.05 115.4 85 14.82 25 9.3 23 37.5 35.55 12.88 22.5 297.85 16.25 46.3 28.85 47.5 39.4 60 113.5 68.2 30.35 26.25 23.3 119.75 86.15 132.5 57.9 238.2 268.85 17.6 154.6 55.9 70.85 105.35 85 199.5 142.5 179.2 8.96 21.35 145.6 100.65 272.95 301.25 265.95 180.25 236.65 240.3 170 1250 158.9 281.55 74.45 164.2 373.85 322.95 111.95 488.8 110.8 238 389.7 60 145 704.25 101.85 386.3 220.95 229.3 91.05 223.95 179.4 356.45 740.05 Issue Price 220 660 468 71 118 43 100 135 127 45 75 985 50 133 75 118 90 135 248 145 64 54 47 240 165 252 102 400 450 29 240 80 100 140 110 258 183 228 11 26 175 120 324 355 300 201 260 260 180 1310 166 290 75 165 375 310 104 450 102 212 310 46 110 490 66 245 128 130 50 105 75 125 145 Change -93.16 -82.52 -81.84 -79.13 -78.81 -77 72.22 -72.22 -72.01 -71.38 -70 -69.76 -67.5 -65.19 -61.53 -59.75 -56.22 -55.56 -54.23 -52.97 -52.58 -51.39 -50.43 -50.1 -47.79 -47.42 -43.24 -40.45 -40.26 -39.31 -35.58 -30.13 -29.15 -24.75 -22.73 -22.67 -22.13 -21.4 -18.55 -17.88 -16.8 -16.13 -15.76 -15.14 -11.35 -10.32 -8.98 -7.58 -5.56 -4.58 -4.28 -2.91 -0.73 -0.48 -0.31 4.18 7.64 8.62 8.63 12.26 25.71 30.43 31.82 43.72 54.32 57.67 72.62 76.38 82.1 113.29 139.2 185.16 410.38 Rating Agency Brick Work CRISIL CRISIL CARE Brick N.A ICRS Ltd ICRA Ltd CRISIL CARE CRISIL CARE N.A Brick Work India Ltd. Credit Analysis CRISIL CARE ICRA ICRA NA NA CRISIL CRISIL CRISIL CRISIL CRISIL ICRA NA CRISIL CRISIL FITCH FITCH NA N.A ICRA CARE & FITCH ICRA FITCH CARE CARE CARE CRISIL CRISIL N.A N.A CARE CRISIL NA ICRA Ltd CRISIL N.A FITCH CRISIL CARE CARE N.A CARE ICRA NA CRISIL CRISIL CARE CARE & ICRA CRISIL CARE CRISIL NA CARE Brick Work Brick Work FITCH Grade 3 4 2 2 2 2 1 2 2 2 1 4 N.A 2 2 2 2 2 2 NA NA 2 4 3 3 3 3 NA 3 3 3 3 NA N.A 2 4 3 3 3 4 4 4 4 N.A N.A 3 4 NA 4 4 N.A 2 2 5 3 N.A 2 2 NA 4 4 2 4 5 3 3 NA NA 3 3 3
Source: Data complied

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From the above table it is clear that, 93 per cent and above issues in 2010 is trading below their issue price and some of them performed really badly. The government entities are no exception to them. If we look at why the performance of IPOs is so bad, there are few notable points which comes to the forefront. 1. The offer prices of these IPOs are very aggressive and there is very little or no room is left for the short term appreciation of the share price. Some of the big companies have not done well on the stock market like MPSEZ, NTPC, NMDC and NHPC. 2. The second most important point is the lead manager and under writer. If a company hired good lead manager, under writer, analyst and paid media, the issue will be oversubscribed. 3. Institution and conventional wisdom expect that high grade issues either provide high profits or low losses. The study results prove the other way round. Issues with Grade 4 yielded high losses compared to other low grades. On the listing day, only issues with Grade 1 and Grade 3 proved to be beneficial to the investors marginally. Grade 2 and Grade 4 issues resulted in losses. Shocking result is that Grade 4 issues lost maximum offsetting gains from other grades. On day five, Grade 2, 3 and 4 issues recorded profits, while Grade 1 issues recorded small losses. What is once again surprising and shocking is that Grade 4 issues on many subsequent days also continue to lose money. Grade 3 issues are relatively better placed. Grade 4 issues appear to be a big drag on remaining grades. 4. Large issues, generally, get higher grades and small issues have high probability of getting low grades. Further, companies with better grades were able to save on cost of raising funds. It also observed that low grade companies spend more money to raise resources and high grade companies spend less. This could be due to size factor also. 5. There is no consistency of returns within inter-grades and inter-grading agencies. No grading agency comes out clearly as a winner. Rather, it appears there is a competition to lose out. 6. In recent times, in the aftermath of sub-prime crisis, rating agencies globally came under heavy flack from all governments, regulators, international regulatory associations, central banks, investors and others. One that has received much attention lately is the impact of the dynamics of competition on ratings and rating quality. The theoretical argument is that competition among providers of rating can lead to a general deterioration of the quality of ratings known as rating inflation.
SUGGESTIONS
Some of the IPOs are from established corporate but many are from new entities. The small investors, however, should subject all offerings to some simple checks before picking their choice. As compare to rights issues or subsequent public issues or secondary market purchases, a share offered in an IPO is the most opaque investment instrument. This is natural as the company undertaking the IPO is a private one and, as such has had no requirement to share with the public all information about itself. Further, as an unlisted company, there is no price discovery for its shares as yet. Yet IPOs have always been viewed by small investors as a quick way to make a profit. But the risk-reward ratio inherent in an IPO is, today, higher and the small investor must do all his homework well before investing. The credit rating agencies rate IPOs on a scale of 1 to 5 (5 being the best) based on many financial and operational parameters. However, in addition to the IPOs grading, the retail investor suggested to verify the following: Track the history: Companies sometimes change names to reflect the change in the nature of their business. But frequent name changes reflecting totally different business activities may indicate that the company has not, over the years, developed any core competence in any particular field. Review prompters record: Check the performance of the promoters other ventures, his experience in the business, and so on. Look at the composition of the shares on offer: Sometimes an IPO includes sale of shares held by promoters. This is quite common when the Government divests its holding in the PSUs. In the case of private sector IPOs the reason why the promoter is partly exiting should by examined if the quantum is disproportionately high. Check the end use of the IPO proceeds: The end use of the funds raised in the IPO will determine how visible and time bound the flow of benefits will be. The value accretion from IPO funds deployed in specific ongoing projects or to repay high cost debt is likely to be more ascertainable. A positive feature would be if the projects included in the fund use list have been appraised by a bank. Whereas when the listed end users are very general in nature with no clear timeframe, the visibility of the earnings from the IPO will be somewhat lower. Ascertain the reputation and experience of other participants involve in the IPO such as Book Running Lead Manager, Anchor Investor, if any, and so on. Fortunately, for the small investors, the above study is not very difficult and the information can be called from the prospectus and documents related to the IPO. This additional due diligence would help reach a more informed decision when confronted with a wide choice of IPOs.
REFERENCES
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, Vol.25, 383-417. Gupta, L. C. (1992). Stock Exchange Trading in India: Agenda for Reforms. Society for Capital Market Research and Development, New Delhi, 123. Gupta, R. (1992). Development of the Capital Market in India: A Regulatory Perspective. Working Paper No.997, IIM, Ahmadabad, Jan-March. Gupta, R. (1992). Foreign Stock Listing: Benefits and Costs. Chartered secretary, Vol.22, No.5, 410-411. Gupta, R. (1987). Is Indian Capital Market Inefficient of Excessively Speculative? Vikalpa, Vol.12, No.2, 21-28. Gupta, R. (1991). Regulation of Securities Market in India: Some Issues. Chartered secretary, Vol.21, No.6, June. Gupta, R. (1991). Revamping Stock Exchange Operations - Some Suggestions. Working PaperNo.922, IIM, Ahmadabad, Jan - March. Lal, T. (1990). Primary Capital Market: Some Reflections. Yojana, Vol.34, June 16-30, 9-12. Levine, R., & Zervos, S. (1998). Stock Markets, Banks and Economic Growth. American Economic Review, Vol.88, 537-558. Mishra, P. K. (2009). Indian Capital Market - Revisiting Market Efficiency. Indian Journal of Capital Markets, Vol. II, Issue IV, 30-34. Mishra, P. K., & pradhan, B. B. (2009). Capital Market efficiency and Financial Innovation A Perspective Analysis. The Research Network, Vol.4, No.1, 1 -5. Mishra, P. K., K. B. Das, and B. B. Pradhan, (2009): Empirical Evidence on Indian Stock Market Efficiency in Context of the Global Financial Crisis, Global Journal of Finance and Management, Vol.1, No.2, pp.149-157. Mishra, P. K., K. B. Das, and B. B. Pradhan, (2009): Capital Market Volatility An Econometric Analysis, The Empirical Economics Letters, Vol.8, No. 5, 469 477. Mishra, P. K., K. B. Das and B. B. Pradhan (2010): Global Financial Crisis and Stock Return Volatility in India, Indian Journal of Finance. Mookerjee, R. (1988). The Stock Market and the Economy: The Indian Experience. Indian Economic Journal, Vol.36, No.2, 30-43. Raghunathan, V. (1991). Stock Exchanges and Investments: Straight Answers to 100 Nagging Questions. New Delhi: TMH, pp.176. Raju, M. T., & Ghosh, A. (2004). Stock Market Volatility - An International Comparison. WPSNo.8, SEBI. Sahni, S. K. (1985). Stock Exchange in India: Practices, Problems, Prospects. New Delhi: North Publishing Corporation, pp.344. Sinha, S. (1993). The Badla Market and Futures and Options. Pending Presentation in CBOT5th Annual Asia-Pacific Futures Research Symposium, March 1415. Taipei: Unpublished

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INVENTORY LEANNESS IMPACT ON COMPANY PERFORMANCE

RENU BALA CHARTERED ACCOUNTANT FLAT NO. 18, KARTHIK APARTMENT, SECTOR 21 C FARIDABAD
ABSTRACT
The analysis of manufacturing companys data reveals that inventory leanness and company performance relationship is varied substantially. Inventory performance relationship is significant in the most of industries. Lean inventory strategies are economically viable in some industries. This strategy is not amenable due to their particular product, production technology, supply or demand characteristics. In most of these instances, the relationship is concave, suggesting that there is an optimum level of inventory leanness beyond which firm performance deteriorates. This paper deals with inventory leanness impact on company performance
KEYWORDS
Inventory, lean, Manufacturing, Firm, Performance.
INTRODUCTION
nventories are represented as short-term assets in the balance sheet. Inventory can be defined as assets that are held for the purpose of sale. It refers to an asset held for conversion to a form which can be sold. It also refers to assets held for assisting in the production of goods which will be sold. Inventory refers to the stock held by an organization at any point of time, which possess economic value. These resources can be manpower, machines, capital goods or materials at various stages. An inventory valuation allows a company to provide a monetary value for items that make up their inventory. The valuation needs to be objective, confirmed and accurate. Accurate inventory valuation requires accurate inventory record keeping. If companies use an accurate costing method for valuation of inventory, it will be a waste of time if the record accuracy level is poor. Maintaining accurate record is also important, because companies are striving for leaner production and processes. Inventory leanness effect firms performance. In this paper section A consists related work section B deals with critical analysis and Section C consist development of the leanness indicator and conclusion.
RELATED WORK
Matthias Holweg et al. have reviewed that the lean concept is the outcome of a dynamic learning process. It is based on the practices adopted by automotive and textile sectors in Japan [12]. Fullerton et al. have maintained that lean production is typically conceptualized as a multi-dimensional construct composed of multiple lean practices such as total quality control, total productive maintenance, and just-in-time. Implementation of lean production results in improved operational performance in terms inventory management, process control, information flows, human factors, delivery, flexibility and quality. Financial performance is positively affected by the implementation of lean production practices [10]. Bradly R. Staats et al. have discovered that lean principles can apply to others sectors also [5].Womack et al. mentioned that to improve firms performance lean production relies on a set of practices including Kanban, total quality management, to minimize waste like excess inventories, scrap, rework [17]. Tyson R. Browning et al. have said that implementation of lean practices will reduce waste and thereby decrease costs. Novelty, complexity, instability, and buffering affect the relationship between lean implementation and production costs [15]. Rachna Shah et Al. propose a conceptual definition of lean production and identified ten factors of lean system [13]. Balakrishnan et al. have compared the financial performance of a group of firms that had adopted lean production and an equal number of similar firms that had not. He observe a significant increase in inventory turnover in the treatment group as compared to the control group, He find no significant differences in ROA between these two groups. His studies note that small firms do not benefit from lean production adoption as much as large firms [1]. Kinney et al. have observed that there is improvement in profitability for firms that adopt lean production relative to those that do not [11]. Swamidass et al. have investigates the effects of lean production adoption on inventory-performance of U.S. manufacturing firms. After grouping firms by performance, he finds that better performing firms have improved their inventory management performance, as measured by total inventory-to-sales ratio [14]. Cannon et al. have uses a hierarchical linear model to explore the effects of changes in inventory turnover on firm performance measured by ROA, ROI, market value added, and Tobins Q. He concludes that improvements in inventory management do not lead to improved firm performance [6]. Capkun et al. have analyzed firm-level data on U.S. manufacturing firms from 1980 to 2005 to estimate the effect of inventory management on firm performance. Their results indicate that total inventory levels, as well as raw materials, work in- process inventory, and finished goods, have a positive effect on firm performance [7]. Womack et al. have said that inventory is a type of waste which should be minimized [16]. Chan et al. have discovered that by adopting lean production inventory holding is decreased [8]. Zipkin, P.H et al. have mentioned that lean inventory management can be compared to good inventory management. A lean strategy may not be appropriate for all firms [18]. David L. Cooke et al. analysis supports a view that management should not arbitrarily push inventories lower simply to improve the balance sheet [9].
CRITICAL ANALYSIS OF EXISTING INVENTORY LEANNESS MEASURES

Econometric studies rely on various measures as proxy for inventory leanness. These measures can be classified into three groups A, B and C: [A]absolute measures, including average inventory levels and maximum inventory levels are absolute in nature. It is important to measure inventory leanness with respect to size adjusted industry average as absolute measures of inventory management effectiveness can be misleading. The economic benefit of increased inventory leanness depends on a firms status quo and industry-specific inventory management characteristics. [B] Standardized measures, such as inventory turnover and its variant. These are the most widely used measures of a firms inventory leanness. However, such measures ignore economies of scale in inventory management. Ignoring these economies of scale results in biased estimates of a firms inventory leanness, which, in turn, yields biased estimates of the marginal effect of inventory leanness on firm performance. To illustrate this point, consider firm X in Diagram. Line S1 represents the mean of inventory turnovers across firms in the same industry and line S2 represents the industry average of inventory turns adjusted for sales. In other words, firms with lower sales are expected to have lower inventory turnover while firms with higher sales should have higher inventory turnover, all other things being equal. At first glance, inventory turnovers for firm X appears to be above the unadjusted industry average, but they are actually below the industry average when economies of scale are considered.

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FIGURE 1: RELATIONSHIP BETWEEN SALES AND INVENTORY VALUATION Inventory Turnover S2
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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ S1
Firm X
Sales [C]Complex measures based on fuzzy set theory data envelopment analysis and require expertise in solving such models and interpreting the results. These measures are not well suited for widespread use by managers.
DEVELOPMENT OF LEANNESS INDICATOR

Ballou has described the specific nature of the relationship between sales and inventories in multiple stocking locations of a firm, thereby identifying economies of scale in inventory holding. In this work, I = is used to estimate a turnover curve. An estimate of shape parameter < 1 indicates economies of scale (increasing inventory turnover), > 1 diseconomies of scale (decreasing inventory turnover), and = 1 a constant inventory turnover. Ballous has explained that the coefficient estimates of is typically around 0.6. The (LI) lean indicator is then calculated as the residual estimated during the fitting of the turnover curve for a given industry. The LI is a measure of inventory leanness that is rooted in inventory theory and, unlike inventory turnover, accounts for economies of scale in inventory management. Moreover, the LI inherently controls for industry-specific inventory management characteristics which make it particularly suitable for use in cross sectional studies. FIGURE 2: RELATIONSHIP BETWEEN SALES AND INVENTORY LEVEL
CONCLUSION
This paper investigates the effect of inventory leanness on company performance. The analysis of a large sample of manufacturing firms over time period indicates that the significance and shape of this relationship varies greatly from one industry to another. Some of the industries exhibit no significant effect of inventory leanness on firm performance. The impact of inventory leanness on firm performance is mostly positive and generally nonlinear. In most instances, the effect of inventory leanness is concave implying in line with inventory control theory that there is an optimal degree of inventory leanness beyond which the marginal effect of leanness on financial performance becomes negative.
REFERENCES
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] Balakrishnan, R., Linsmeier, T.J., Venkatachalam M., Financial benefits from JIT adoption: effects of customer concentration and cost structure, The Accounting Review, volume 71, pp. 183-205, 1996. Ballou, R.H., Estimating and auditing aggregate inventory levels at multiple stocking points, Journal of Operations Management, volume 1, pp. 143-153, 1981. Ballou, R.H., Evaluating inventory management performance using a turnover curve, International Journal of Physical Distribution & Logistics Management, volume 30, pp. 72-85, 2000. Ballou, R.H., Expressing inventory control policy in the turnover curve, Journal of Business Logistics, volume 26, pp.143-164, 2005. Bradley R. Staats, David M. Upton, Lean Knowledge Work, Harvard Business Review, volume 89, pp.1-11, 2011. Cannon, A.R., Inventory improvement and financial performance, International Journal of Production Economics, volume 115, pp. 581-593, 2008. Capkun, V., Hameri, A., Weiss, L.A., On the relationship between inventory and financial performance in manufacturing companies, International Journal of Operations & Production Management, volume 29, pp. 789-806, 2009. Chen, H., Frank M.Z., WuO.Q., What actually happened to the inventories of American companies between 1981 and 2000?, Management Science, volume 51, pp. 10151031, 2005. David L. Cooke, Thomas R. Rohleder, Inventory evaluation and product slate management in large-scale continuous process industries, Journal of operation management, volume 24, pp. 235-249, 2006. Fullerton, R.R., McWatters, C.S., The production performance benefits from JIT implementation, Journal of Operations Management, volume 19, pp.8196, 2001. Kinney, M.R.,Wempe, W.F., Further evidence on the extent and origins of JITs profitability effects The Accounting Review, volume 77, pp. 203-225, 2002. Matthias Holweg, The genealogy of lean production, Journal of Operations Management, volume 25, pp. 420-437, 2007. Rachna Shah, Peter T. Ward, Defining and developing measures of lean production, Journal of operations management, volume 25, pp. 785-805, 2007. Swamidass, P.M., The effect of TPS on US manufacturing during 1981-1998: inventory increased or decreased as a function of plant performance, International Journal of Production Research, volume 45, pp. 3763-3778, 2007. Tyson R. Browning, Ralph D. Heath, Reconceptualizing the effects of lean on production costs with evidence from the F-22 program, Journal of Operations Management, volume 27, pp. 23-44, 2009. Womack, J.P., Jones, D.T, From lean production to the lean enterprise. Harvard Business Review, volume 72, pp. 93-103, 1994. Womack, J.P., Jones, D.T., Roos, D., The Machine that Changed the World Rawson Associates, HarperCollins, NY, 1990. Zipkin, P.H, Does manufacturing need a JIT revolution? Harvard Business Review, volume 69, pp. 40-50, 1991.

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A STUDY OF BUSINESS OPERATION OF RRBs OF GUJARAT

JAIMIN H. TRIVEDI ASST. PROFESSOR TAKSHASHILA COLLEGE OF MANAGEMENT & TECHNOLOGY SARDAR PATEL UNIVERSITY BAKROL
ABSTRACT
This paper attempts to understand the business operations like lending and recovery performance of regional rural banks of Gujarat state. For the study researcher has selected three banks i.e. Baroda Gujarat gramin bank, Dena Gujarat gramin bank, and saurastra gramin bank. This study is totally based on secondary data only. The study is carried on with the help of ratio analysis which provides the clear cut idea about the efficiency in the Business operation among this three banks.
KEYWORDS
Business, RRBs, Gujrat, Banking.
INTRODUCTION
s per the Act, the RRBs transact the business of banking as defined under the banking regulation Act, 1949 (I.e. accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise). RRBs can carry on any business which a commercial bank is allowed to carry on, however, the Act enjoins upon the RRBs the responsibility of lending to small and marginal farmers and agricultural labourers, and to co-operatives societies, including agricultural marketing and processing societies, primary agricultural credit societies, farmers service societies etc. as also to artisans, small entrepreneurs and persons of small means engaged in trade, commerce or industry, or other productive activities, within, within the notified area in relation to the bank. With the passage of time, the concept of lending to this 'target group' has been withdrawn and the RRBs have been allowed to lend to any person in their notified area of operation, with the condition that advances to 'priority sector' should not be less than 60 percent of their total advances Bank extends credit to different categories of borrowers for a wide variety of purposes. For many borrowers bank credit is the easiest to access at reasonable interest rates. Bank credit is provided to households, retail traders small and medium enterprises (SMEs), corporate, the government undertaking etc. in the economy.
This study is carried on for the understanding of business operation (lending and borrowing) of regional rural banks of Gujarat. Three banks have been selected for the study i.e. BGGB, SGB, & DGGB. Ratio analysis has been used to identify the efficiency of business operation. The period of study is for five years i.e.200506 to 2009-10. RATIO ANALYSIS Ratio Analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statement. So that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two items or variables. This relationship can be expressed as percentage portion of number of fractions. This alternative method of expressing items which are related to each other for the purpose of financial analysis is referred as Ratio Analysis. The ratio analysis provides useful data to the management, which would hold them in taking important policy decision. Diverse group of people make use of ratio to determine a particular aspect of the financial position of the company in which they are interested.
BARODA GUJARAT GRAMIN BANK

The central governments vide its notification No. F. 1(2) 2001/RRB dated 12th September, 2005 in exercise of the powers conferred by sub section (1) of section 23A of the RRBs act. 1976(21 of 1976) and also in consultation with National Bank for Agriculture and Rural Development (NABARD), Government of Gujarat, and Bank, Surat Bharuch Gramin Bank and Valsad Dang Gramin Bank in the public interest and in the interest of the development of the area served by the aforesaid RRBs and also in the interest of said RRBs themselves it had been decided that the said RRBs should be amalgamated into a single Regional Rural Bank and named as Baroda Gujarat Gramin Bank and named as Baroda Gujarat Gramin Bank with its head office at Bharuch w.e.f 12th September,2005.
DENA GUJARAT GRAMIN BANK

The DGGB came in to existence on 26th December, 1978. Providing there in for amalgamation of the three RRBs sponsored by Dena Bank, named Kutch Gramin Bank, Banaskatha, Mehsana Gramin Bank and Sabarkatha, Gandhinagar Gramin Bank and Patna Gramin Bank established under the RRBs Act, 1979.
SAURASHTRA GRAMIN BANK

SGB, sponsored by State Bank of India, came into existence vide GOI notification NO.1/26/2005-RRBs Dtd.02.01.2006 by amalgamation of three erstwhile RRBs viz. 1. Jamnagar-Rajkot Gramin Bank 2. Surendranagar-Bhavnagar Gramin Bank 3. Junaghdh- Amreli Gramin Bank As on 2nd January, 2006 under provision of Sec. 3(I) of RRBs Act 976.
CREDIT - DEPOSIT (C. D. RATIO) RATIO

Ratio between credit and deposit reveals the possibilities of utilization of available deposits in the form of credit higher percentage or ratio of credit deposit shows more benefits to the society through the credit mechanization in the contest of rural area or it reveals how much the rural have helped the rural development through credit. The lesser percentage of ratio of credit deposit shows its lesser benefits to the social through its credit mechanization and deposit mobilization in the context of rural area. In the RRBs credit deposit ratio is higher than in the commercial banks. This difference is there because the RRBs are based not only on deposits, but also on borrowing from their main object is to provide financial assistance in rural areas.

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TABLE- 1: C.D. RATIO OF RRBs DURING THE PERIOD FROM 2005-06 TO 2009-10 (Rs. In Lacs) Name of RRBs Year Deposits Advance C. D. Ratio In % BGGB 2005-06 64989.45 28419.84 43.73 2006-07 76299.36 35612.33 46.74 2007-08 85563.17 43018.20 50.28 2008-09 106321.71 44960.02 42.29 2009-10 115800.43 46615.43 40.25 DGGB 2005-06 73979.43 29030.99 39.24 2006-07 88385.27 43527.30 49.25 2007-08 106686.03 53925.18 50.54 2008-09 157121.34 46358.00 29.50 2009-10 188222.38 52378.95 27.83 SGB 2005-06 55009.15 36449.38 66.99 2006-07 68132.00 44208.00 65.93 2007-08 84154.88 53692.38 63.80 2008-09 107331.12 65058.29 60.51 2009-10 122013.02 71953.91 58.97 (Source: Annual reports of various RRBs) The above table shows the credit and deposit performance of RRBs of Gujarat from 2005-06 to 2009-10. The overall performance of all three banks are good but which one is best, that we can conclude on the base of average ratio during the period from 2005-06 to 2009-10.
RECOVERY OF LOAN AND ADVANCES OF RRBs

Recovery is an important ingredient of fund recycling and it accelerates the disbursement of loan. RRBs made all possible efforts for recovering their dues. The poor recoveries of loans make the recycling of limited funds of the banks almost impossible and consequently, the profitability of the bank is eroded. TABLE - 2: RECOVERY PERFORMANCE OF RRBs DURING THE PERIOD FROM 2005-06 TO 2009-10 Name of RRBs Year Demand Collection Overdue Recovery In % BGGB 2005-06 17271.28 11482 5789.36 66.48 2006-07 15303.2 10509.24 4793.96 68.67 2007-08 17141.05 12366.96 4774.09 72.15 2008-09 21569.16 16594.17 4974.99 76.93 2009-10 24214.46 18499.29 5715.17 76.40 DGGB 2005-06 15865.25 13402.55 2462.95 84.48 2006-07 20015 17656 2359 88.21 2007-08 31618.55 27327.39 4291.16 90.02 2008-09 42217.32 38842.27 3375.05 92.00 2009-10 55751.24 51857.77 3893.47 93.01 SGB 2005-06 42202.67 39192.35 3010.32 92.81 2006-07 36777.44 33189.98 2987.46 91.74 2007-08 48329.97 41011 7318.97 84.86 2008-09 53829.77 38572.62 15257.15 71.66 2009-10 65014.37 53534.08 11480.29 82.34 (Source: Annual reports of various RRBs) The recovery performance of RRBs showing in above table is that The highest recovery was 92.81% by SGB in the year 2005-06 and the lowest recovery performance of 66.48% by BGGB in the year of 66.48% in the year of 2005-06, the overall recovery performance was good during the period from 2005-06 to 2009-10.
AVERAGE OF C.D. RATIO & RECOVERY RATIO

The average ratio of all the three regional rural banks regarding the credit deposit and recovery operation during the period of study are as follows. TABLE - 3: AVERAGE OF C. D. RATIO & RECOVERY RATIO Name of Banks Average ratio during the period from 2005-06 to 2009-10 C.D. Ratio Recovery ratio BGGB 44.66 % 72.13% DGGB 39.27% 89.54% SGB 63.24% 84.68% INFERENCE The average credit deposit ratio of SGB is the highest during the period from 2005-06 to 2009-10 which reveals the best performance of credit deposit operations of SGB among all three banks but the recovery performance is poor in compare to DGGB. From the above analysis we can conclude that the overall performance of all three banks regarding lending and borrowing operation is good.
FINDINGS AND CONCLUSION

The advances of BGGB, DGGB, SGB were showing the increasing trend during the period from 2005-06 to 2009-10. Deposits of BGGB, DGGB, SGB were showing an increasing trend during the period from 2005-06 to 2009-10. Variation was seen in the credit deposit ratio of the selected bank. It ranged from minimum of 27.83% of DGGB and maximum percentage of SGB i.e.66.99%. High C.D ratio of RRBs may be a favorable feature for rural development because the banks are in a better position to provide a large amount of finance to a large number of borrowers. But from the high to poor recovery performance, high C. D. ratio entails high incidents, bad-debts, and losses.
REFERENCES
Sonara, C. K., Regional Rural Banks In India, Anmol Publication Pvt.Ltd.-New Delhi. Gordan & Natrajan " Banking theory law and practice" H.P.H. Mumbai 20th edition 2006 Kothari C.R."Research Methodology" Annual Report of BGGB. Annual Report of DGGB. Annual Report of SGB.

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SKILLS & COMPETENCIES FOR THE AGE OF SUSTAINABILITY: AN UNPRECEDENTED TIME OF OPPORTUNITY
DR. B. REVATHY ASSOCIATE PROFESSOR DEPARTMENT OF COMMERCE SCHOOL OF BUSINESS STUDIES MANONMANIAM SUNDARANAR UNIVERSITY TIRUNELVELI
ABSTRACT
Skills and knowledge are the driving forces of economic growth and social development for any country. Countries with higher and better levels of skills adjust more effectively to the challenges and opportunities of world of work. India has set a target of skilling 500 million people by 2022. As the proportion of working age group of 15-59 years will be increasing steadily, India has the advantage of demographic dividend. Harnessing the demographic dividend through appropriate skill development efforts would provide an opportunity to achieve inclusion and productivity within the country and also a reduction in the global skill shortages. Large scale skill development is thus an imminent imperative. The article highlights the skills required for sustainability as the country moves to a sustainable, low carbon, resource efficient economy; a range of skills for sustainability will be required in existing, emerging and new industries. In any one context, one is likely to draw on more than one competency. In fact, any given situation or goal may demand a constellation of competencies, configured differently for each particular case. Thus the technique of combining key competencies is elaborated in the article. The article brings to light the challenges for skill development and the barriers to effective skill development. The article concludes that quality and relevance of skill development are key to Indias global competitiveness as well as to improve an individuals access to decent employment.
KEYWORDS
Ability, commitment, competence, skills, sustainability.
INTRODUCTION
ndia is increasingly becoming a top global innovator for high-tech products and services. Still, the country is underperforming relative to its innovation potential - with direct implications for long-term industrial competitiveness and economic growth. About 90 percent of Indian workers are employed in the informal sector, and this sector is often characterized by underemployment, as well as low-productivity and low-skill activities. Although India has the benefit of a dynamic young population with more than half of the country's population under 25 years old only 17 percent of people in their mid-20s and older have a secondary education. To sustain rapid growth and help alleviate poverty, India needs to aggressively harness its innovation potential, relying on innovation-led, rapid, and inclusive growth to achieve economic and social transformation. The need is to up-skill the Indian workforce so that our businesses and industry is efficient, sustainable, and internationally competitive. Our key competitive advantage has been the intellectual capital of our employees. Now over 60% of the jobs demand skills and competencies of well trained employees. Therefore, it is an undisputed fact that human capital is critical to organisations financial performance. The financial impact resulting from strategic investment in learning and development is also well documented in several reputed research studies. It is critical for all successful organisations to build a competitive advantage through training & skilling human resources and to link enhanced employee productivity directly to business gains. In today's dynamic business environment, people skills and competence are critical for both personal and organisational success. Skills for sustainability (also known as green skills), are the technical skills, knowledge, values and attitudes needed in the workforce to develop and support sustainable social, economic and environmental outcomes in business, industry and the community. An organisation's performance hinges on its ability to hire, retain and groom the best talent in a highly complex business environment.
GLOBALISATION DRIVEN BY TECHNOLOGY AND THE EMERGING KNOWLEDGE ECONOMY

Globalisation and modernisation are creating an increasingly diverse and interconnected world. To make sense of and function well in this world, individuals need to master changing technologies and make sense of large amounts of available information. They also face collective challenges as societies such as balancing economic growth with environmental sustainability, and prosperity with social equity. In these contexts, the competencies that individuals need to meet their goals have become more complex, requiring more than the mastery of certain narrowly defined skills. Sustainable development and social cohesion depend critically on the competencies of all of our population with competencies understood to cover knowledge, skills, attitudes and values. Occupational patterns are changing; new jobs and job titles, job enlargement, job enrichment, and new flexible work arrangements are emerging. Employment demands are shifting towards higher skill categories. It is imperative, therefore, for India to move up the skill-ladder and produce a larger number of people with higher education and generic training for new types of knowledge work, both in high skill services and high technology industrial production. Knowledge professionals will need support from middle-skilled workers in new knowledge and technology areas. The skill development system will need to meet this challenge. The response time is limited as the rate of change is high and accelerating.
INDIVIDUAL AND GLOBAL CHALLENGES

Individuals need to draw on key competencies that allow them to adapt to a world characterized by change, complexity and interdependence. Not only are individuals expected to be adaptive, but also innovative, creative, self-directed and self-motivated. These competencies need to be appropriate for a world where: Technology is changing rapidly and connnuously, and learning to deal with it requires not just one-off mastery of processes but also adaptability. Socienes are becoming more diverse and compartmentalized, with interpersonal relanonships therefore requiring more contact with those who are different from oneself. Globalisanon is creanng new forms of interdependence, and actions are subject both to influences (such as economic competition) and consequences (such as pollution) that stretch well beyond an individuals local or national community. Achieving sustainability will require a new set of skills and abilities. Decisions and activities of individuals are to be revamped so that they are supported by an understanding of science and business with the goals of: a) Integrating actions of conservation and human development. b) Satisfying basic human needs. c) Achieving equality and social justice for all. d) Facilitating social self-determination and cultural diversity. e) Managing our legacy for future generations.

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f) Maintaining ecological integrity. g) Developing new technologies and product manufacturing processes. In order to attain this model of practice, existing and aspiring practitioners in different areas of sustainable development should be exposed to a consistent set of criteria and competencies defining their educational achievements in the overall field of sustainability.
SKILLS FOR SUSTAINABILITY

Our transformation from unsustainability to sustainability comprises of four sets of critical skills required to realize the great opportunity for creating a better world: the skills of thinking and seeing systemically or holistically the skills of creating a positive vision of the future the skills of finding like-minded people for cooperative efforts the skills of using available resources in new ways This set of skills is absolutely essential to make strategic decisions about how to contribute to sustainability with our life, or even how to generate positive visions of humanity's future. Sustainability is not just an "environmental" matter; it is a matter of changing the whole way we understand ourselves, the way we think about and behave towards ourselves and each other. It demands a holistic approach. As the country moves to a sustainable, low carbon, resource efficient economy, a range of skills for sustainability will be required in existing, emerging and new industries. And workers across the economy will need new skills to increase resource efficiency, reduce waste, conserve water and develop and implement new technologies and practices for a more sustainable world. Skills for sustainability will be important to all industries and sectors, not just to the trades. For example: lawyers, accountants and economists will need to respond to the demand for environmental reporting and accounting practices. Planners, architects and engineers will need to respond to demand for sustainable design and new green materials. Business owners and operators will need to respond to rapidly escalating energy, water and waste costs. Retailers, service providers and procurement managers will need to respond to increasing consumer and client demand for green products and services. Primary producers will need to respond to rising input costs and land degradation. A competency is an observable, behavioral act that demonstrates a professionals knowledge, skill and ability.
Competence includes the knowledge, understanding and skills that underpin performance. It is attained through a mixture of education, training and professional development. Competence (or competency) is the ability of an individual to perform a job properly. A competency is a set of defined behaviors that provide a structured guide enabling the identification, evaluation and development of the behaviors in individual employees. As defined, the term "competence" first appeared in an article authored by Craig C. Lundberg in 1970 titled "Planning the Executive Development Program". Competence" is a combination of knowledge, skills and behavior used to improve performance or the state or quality of being adequately or well qualified, having the ability to perform a specific role. For instance, management competency might include systems thinking and emotional intelligence, and skills in influence and negotiation. Competency is also used as a more general description of the requirements of human beings in organizations and communities. Competency is sometimes thought of as being shown in action in a situation and context that might be different the next time a person has to act. In emergencies, competent people may react to a situation following behaviors they have previously found to succeed. To be competent a person would need to be able to interpret the situation in the context and to have a repertoire of possible actions to take and have trained in the possible actions in the repertoire, if this is relevant. Regardless of training, competency would grow through experience and the extent of an individual to learn and adapt. Competency has different meanings, and continues to remain one of the most diffuse terms in the management development sector, and the organizational and occupational literature. The OECDs Definition and Selection of Competencies (DeSeCo) Projects conceptual framework for key competencies classifies competencies in three broad categories. First, individuals need to be able to use a wide range of tools for interacting effectively with the environment: both physical ones such as information technology and socio-cultural ones such as the use of language. They need to understand such tools well enough to adapt them for their own purposes to use tools interactively. Second, in an increasingly interdependent world, individuals need to be able to engage with others, and as they will encounter people from a range of backgrounds, it is important that they are able to interact in heterogeneous groups. Third, individuals need to be able to take responsibility for managing their own lives, situate their lives in the broader social context and act autonomously. These categories, each with a specific focus, are interrelated, and collectively form a basis for identifying and mapping key competencies. The need for individuals to think and act reflectively is central to this framework of competencies. Reflectiveness involves not just the ability to apply routinely a formula or method for confronting a situation, but also the ability to deal with change, learn from experience and think and act with a critical stance.

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CORE COMPETENCE IN SUSTAINABILITY

Competence is a functionally linked complex of knowledge, skills, and attitudes that enable successful task performance and problem solving. Competencies in sustainability, these are complexes of knowledge, skills, and attitudes that enable successful task performance and problem solving with respect to real-world sustainability problems, challenges, and opportunities. SUSTAINABILITY REQUIRES Collaboration across/beyond disciplines Involvement of stakeholders Commitment to justice and equity Competencies as abstractions of work-relevant human behaviour have emerged as a promising concept for making human skills, knowledge and abilities manageable and addressable in a wide range of application areas. From a management point of view, they provide a more adequate approximation of human performance factors than the notion of knowledge in traditional knowledge management approaches as they can represent a set of skills, knowledge, and abilities that belongs together and as competencies go beyond mere knowing towards work-relevant action. For the traditional training (and human resource development) community, competencies allow for operationalizing learning goals and outcomes and thus can serve as a control instrument. And competence management approach aim at connecting the individual and the organizational perspective via the competency abstraction.
COMPETENCY-DRIVEN APPROACHES ARE FACING FUNDAMENTAL CHALLENGES

a) b) A well-defined common understanding of each competency needs to be developed and enforced across various departments or even organizations. On the technical level, various systems and services involved in HR, training, and knowledge management need to be semantically coherent so that competency-driven approaches can live up to their holistic expectations. c) The crucial trade-off in competency modelling needs to be solved: the more accurate, realistic and fine-grained considered competencies are, the more complex management and controlling tasks become. Todays societies place challenging demands on individuals, who are confronted with complexity in many parts of their lives. Defining such competencies can improve assessments of how well prepared young people and adults are for lifes challenges, as well as identify overarching goals for education systems and lifelong learning. A competency is more than just knowledge and skills. It involves the ability to meet complex demands, by drawing on and mobilizing psychosocial resources (including skills and attitudes) in a particular context. For example, the ability to communicate effectively is a competency that may draw on an individuals knowledge of language, practical IT skills and attitudes towards those with whom he or she is communicating. Individuals need a wide range of competencies in order to face the complex challenges of todays world, but it would be of limited practical value to produce very long lists of everything that they may need to be able to do in various contexts at some point in their lives. Some of these competencies may be general and some peculiar to the chosen career.
A BASIS FOR KEY COMPETENCIES

COMPETENCE AND THE DEMANDS OF MODERN LIFE Key competencies are not determined by arbitrary decisions about what personal qualities and cognitive skills are desirable, but by careful consideration of the psychosocial prerequisites for a successful life and for a well-functioning society. Competence is also an important factor in the ways that individuals help to shape the world, not just to cope with it. Thus, as well as relating to key features and demands of modern life, competencies are also determined by the nature of our goals, both as individuals and as a society. Coping with todays challenges calls for better development of individuals abilities to tackle complex mental tasks, going well beyond the basic reproduction of accumulated knowledge. Key competencies involve a mobilisation of cognitive and practical skills, creative abilities and other psychosocial resources such as attitudes, motivation and values. Competencies comprise more than just taught knowledge. The framework described here relates to individual competencies, rather than to the collective capacities of organisations or groups. However, as illustrated in the diagram below, the sum of individual competencies also affects the ability to achieve shared goals. INDIVIDUAL AND COLLECTIVE GOALS AND COMPETENCIES
In so far as competencies are needed to help accomplish collective goals, the selection of key competencies needs to some extent to be informed by an understanding of shared values. The competency framework is thus anchored in such values at a general level. These values imply both that individuals should be able to achieve their potential and that they should respect others and contribute to producing an equitable society. The complementarity of individual and collective goals needs to be reflected in a framework of competencies that acknowledges both individuals autonomous development and their interaction with others. SELECTING KEY COMPETENCIES The above demands place varied requirements on individuals in different places and different situations. However, key competencies are those of particular value, that have multiple areas of usefulness and that are needed by everyone. The first of these conditions, that competencies should be valued, applied in relation to measurable benefits for both economic and social purposes. Recent research reinforces the view that human capital not only plays a critical role in economic performance, but also brings key individual and social benefits such as better health, improved well being, better parenting, and increased social and political engagement. The second condition, that competencies should bring benefits in a wide spectrum of contexts, means that they apply to multiple areas of life. Thus, certain areas of competence are needed not only in the labour market but also in private relationships, in political engagement and so on, and it is

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these transversal competencies that are defined as key. The third condition, that key competencies should be important for all individuals. Emphasis is given to transversal competencies that everyone should aspire to develop and maintain. COMBINING KEY COMPETENCIES A further link between the specific competencies described below is that in any one context, one is likely to draw on more than one such competency. In fact, any given situation or goal may demand a constellation of competencies, configured differently for each particular case. People living in different situations will draw to varying degrees on various competencies according, for example to cultural norms, technological access, social and power relations. The ability to deal with differences and contradictions is found on many lists of key competencies within the economic and educational sector. Todays diverse and complex world demands that we do not necessarily rush to a single answer, to an either-or solution, but rather handle tensions between, for instance, autonomy and solidarity, diversity and universality, and innovation and continuity by integrating seemingly contradictory or incompatible goals as aspects of the same reality. Thus, individuals have to learn to think and act in a more integrated way, taking into account the manifold interconnections and interrelations between positions or ideas that may appear contradictory, but that may sometimes only superficially be so.
COMPETENCY CATEGORY 1: USING TOOLS INTERACTIVELY The social and professional demands of the global economy and the information society require mastery of socio-cultural tools for interacting with knowledge, such as language, information, and knowledge, as well as physical tools such as computers. Using tools interactively requires more than having access to the tool and the technical skills required to handle it (e.g. read a text, use software). Individuals also need to create and adapt knowledge and skills. This requires a familiarity with the tool itself as well as an understanding of how it changes the way one can interact with the world and how it can be used to accomplish broader goals. In this sense, tools not just a passive mediator, but an instrument in an active dialogue between the individual and his or her environment. Individuals encounter the world through cognitive, socio-cultural and physical tools. These encounters, in turn, shape how they make sense of and become competent in the world, deal with transformation and change, and respond to long-term challenges. Using tools interactively opens up new possibilities in the way individuals perceive and relate to the world. COMPETENCY 1-A: THE ABILITY TO USE LANGUAGE, SYMBOLS AND TEXT INTERACTIVELY This key competency concerns the effective use of spoken and written language skills, computation and other mathematical skills, in multiple situations. It is an essential tool for functioning well in society and the workplace and participating in an effective dialogue with others. Terms such as communication competence or literacies are associated with this key competency. COMPETENCY 1-B: THE ABILITY TO USE KNOWLEDGE AND INFORMATION INTERACTIVELY Both the increasingly important role of the service and information sectors and the central role of knowledge management throughout todays societies make it essential for people to be able to use information and knowledge interactively. This key competency requires critical reflection on the nature of information itself its technical infrastructure and its social, cultural, and even ideological context and impact. Information competence is necessary as a basis for understanding options, forming opinions, making decisions, and carrying out informed and responsible actions. Using knowledge and information interactively requires individuals to: Recognise and determine what is not known; Idennfy, locate and access appropriate informanon sources (including assembling knowledge and informanon in cyberspace); Evaluate the quality, appropriateness and value of that informanon, as well as its sources; and Organise knowledge and informanon COMPETENCY 1-C: THE ABILITY TO USE TECHNOLOGY INTERACTIVELY Technological innovation has placed new demands on individuals inside and outside the workplace. At the same time, technological advances present individuals with new opportunities to meet demands more effectively in new and different ways. Interactive use of technology requires an awareness of new ways in which individuals can use technologies in their daily lives. Information and communication technology has the potential to transform the way people work together (by reducing the importance of location), access information (by making vast amounts of information sources instantly available) and interact with others (by facilitating relationships and networks of people from around the world on a regular basis). To harness such potential, individuals will need to go beyond the basic technical skills needed to simply use the Internet, send e-mails and so on. As with other tools, technology can be used interactively if users understand its nature and reflect on its potential. Most importantly, individuals need to relate the possibilities embedded in technological tools to their own circumstances and goals. A first step is for individuals to incorporate technologies into their common practices, which produces a familiarity with the technology that then allows them to extend its uses. COMPETENCY CATEGORY 2: INTERACTING IN HETEROGENEOUS GROUPS Throughout their lives human beings are dependent on ties to others, for material and psychological survival, as well as in relation to social identity. As societies become in some ways more fragmented and also more diverse, it becomes important to manage interpersonal relationships well both for the benefit of individuals and to build new forms of co-operation. The building of social capital is important, as existing social bonds weaken and new ones are created by those with the ability to form strong networks. One of the potential sources of inequity in the future could be differences in the competence of various groups to build and benefit from social capital. The key competencies in this category required for individuals are to learn, live and work with others. They address many of the features associated with terms such as social competencies, social skills, intercultural competencies or soft skills. COMPETENCY 2-A: THE ABILITY TO RELATE WELL TO OTHERS This first key competency allows individuals to initiate, maintain and manage personal relationships with, for example, personal acquaintances, colleagues and customers. Relating well is not only a requirement for social cohesion but, increasingly, for economic success as changing firms and economies are placing increased emphasis on emotional intelligence. This competency assumes that individuals are able to respect and appreciate the values, beliefs, cultures and histories of others in order to create an environment where they feel welcome, are included and thrive. Co-operating well with others requires:

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Empathy - taking the role of the other person and imagining the situation from his or her perspective. This leads to self-reflection, when, upon considering a wide range of opinions and beliefs, individuals recognize that what they take for granted in a situation is not necessarily shared by others. Eecnve management of emonons being self-aware and able to interpret effectively ones own underlying emotional and motivational states and those of others. COMPETENCY 2-B: THE ABILITY TO COOPERATE Many demands and goals cannot be met by one individual alone but instead require those who share the same interests to join forces in groups such as work teams, civic movements, management groups, political parties or trade unions. Co-operation requires each individual to have certain qualities. Each needs to be able to balance commitment to the group and its goals with his or her own priorities and must be able to share leadership and to support others. Specific components of this competency include: The ability to present ideas and listen to those of others; An understanding of the dynamics of debate and following an agenda; The ability to construct tacncal or sustainable alliances; The ability to negonate; and The capacity to make decisions that allow for different shades of opinion. COMPETENCY 2-C: THE ABILITY TO MANAGE AND RESOLVE CONFLICTS Conflict occurs in all aspects of life, whether in the home, workplace or the larger community and society. Conflict is part of social reality, an inherent part of human relationships. It arises when two or more individuals or groups oppose one another because of divergent needs, interests, goals or values. The key to approaching conflict in a constructive manner is to recognise that it is a process to be managed rather than seeking to negate it. This requires consideration of the interests and needs of others and solutions in which both sides gain. For individuals to take an active part in conflict management and resolution, they need to be able to: Analyse the issues and interests at stake (e.g. power, recognition of merit, division of work, equity), the origins of the conflict and the reasoning of all sides, recognising that there are different possible positions; Idennfy areas of agreement and disagreement; Reframe the problem; and Priorinse needs and goals, deciding what they are willing to give up, and under what circumstances COMPETENCY CATEGORY 3: ACTING AUTONOMOUSLY Acting autonomously does not mean functioning in social isolation. On the contrary, it requires an awareness of ones environment, of social dynamics and of the roles one plays and wants to play. It requires individuals to be empowered to manage their lives in meaningful and responsible ways by exercising control over their living and working conditions. Individuals must act autonomously in order to participate effectively in the development of society and to function well in different spheres of life including the workplace, family life and social life. This is because they need to develop independently an identity and to make choices, rather than just follow the crowd. In doing so, they need to reflect on their values and on their actions. Acting autonomously is particularly important in the modern world where each persons position is not as well-defined as was the case traditionally. Individuals need to create a personal identity in order to give their lives meaning, to define how they fit in. In general, autonomy requires an orientation towards the future and an awareness of ones environment, of social dynamics and of the roles one plays and wants to play. It assumes the possession of a sound self-concept and the ability to translate needs and wants into acts of will, decision, choice and action. COMPETENCY 3-A: THE ABILITY TO ACT WITHIN THE BIG PICTURE This key competency requires individuals to understand and consider the wider context of their actions and decisions. That is, it requires one to take account of how they relate, for example, to societys norms, to social and economic institutions and to what has happened in the past. One needs to recognise how ones own actions and decisions fit into this wider picture. This competency requires individuals, for instance, to: Understand paqerns; Have an idea of the system in which they exist (i.e. understand its structures, culture, practices, and formal and informal rules and expectations and the roles they play within it, including understanding laws and regulations, but also unwritten social norms, moral codes, manners and protocol). It complements an understanding of rights with knowledge of the constraints on actions; Identify the direct and indirect consequences of their actions; and Choose between different courses of action by reflecting on their potential consequences in relation to individual and shared norms and goals COMPETENCY 3-B: THE ABILITY TO FORM AND CONDUCT LIFE PLANS AND PERSONAL PROJECTS This competency applies the concept of project management to individuals. It requires individuals to interpret life as an organised narrative and to give it meaning and purpose in a changing environment, where life is often fragmented. This competency assumes an orientation towards the future, implying both optimism and potential, but also a firm grounding within the realm of the feasible. Individuals must be able, for instance, to: Dene a project and set a goal; Idennfy and evaluate both the resources to which they have access and the resources they need (e.g. nme and money); Priorinse and rene goals; Balance the resources needed to meet mulnple goals; Learn from past actions, projecting future outcomes; and Monitor progress, making necessary adjustments as a project unfolds. COMPETENCY 3-C: THE ABILITY TO ASSERT RIGHTS, INTERESTS, LIMITS AND NEEDS This competency is important for contexts ranging from highly structured legal affairs to everyday instances of assertiveness of individuals own interests. Although many such rights and needs are established and protected in laws or contracts, it is ultimately up to individuals to identify and evaluate their rights, needs and interests (as well as those of others) and to assert and defend them actively. On the one hand, this competency relates to self-oriented rights and needs; on the other hand, it also relates to the rights and needs of the individual as a member of the collective (e.g. actively participating in democratic institutions and in local and national political processes). The competency implies the ability, for instance, to: Understand ones own interests (e.g. in an elecnon); Know wriqen rules and principles on which to base a case; Construct arguments in order to have needs and rights recognised; and Suggest arrangements or alternanve solunons
CHALLENGES FOR SKILL DEVELOPMENT

The country is poised at a moment in history when a much brighter future for its entire people is within its reach. Skill development will help actualize this potential. Development and articulation of a national policy on skill development is a matter of priority. A task of skill development has many challenges which include:a) Increasing capacity and capability of existing system to ensure equitable access to all. b) Promoting life long learning, maintaining quality and relevance, according to changing requirement particularly of emerging knowledge economy. c) Creating effective convergence between school education, various skill development efforts of government and between government and Private Sector initiative.

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d) e) f)
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Capacity building of institutions for planning, quality assurance and involvement of stake holders. Creating institutional mechanism for research, development, quality assurance, examinations and certification, affiliations and accreditation. Increasing participation of stakeholders, mobilizing adequate investment for financing skill development, attaining sustainability by strengthening physical and intellectual resources.
BARRIERS TO EFFECTIVE SKILL DEVELOPMENT

LACK OF EXPERTISE As a new and emerging area of skill development, accessing the necessary expertise to develop and deliver skills for sustainability is another challenge. To be considered credible, teachers and trainers need to have expertise and experience in sustainable practices, as well as to be skilled facilitators of learning. The difficulty lies in finding people who have expertise in both sustainability and in education. Drivers and support Consultations have overwhelmingly confirmed that action taking place in the area of skills for sustainability is being driven by individual passion. The impetus for developing and offering skill development was the result of a passionate individual pushing for action - even in the large-scale state-wide programs. Amongst participants, individual passion is also a key driver for participating in skills for sustainability. The lack of support from managers, institutions and state policy directives were by far the most common challenges in undertaking skill development for sustainability and in trying to implement or pass on their learning back in their workplaces. This lack of systemic support means that responsibility and time for addressing skills for sustainability issues is not being built into role descriptions, workloads or organisational practices. FUNDING AND LONG-TERM APPROACHES An issue raised in almost every consultation is the lack of funding for skills for sustainability. In our country those with responsibility for sustainability and professional development scrounge for funding opportunities. In situations where funds are available, it is generally for one-off projects, rather than for the implementation of long-term initiatives or funding of ongoing sustainability-focused positions of responsibility. As education for sustainability is about changing values, attitudes and behaviours, skill development will require long-term approaches, including support for encouraging and embedding change over the long term. It also requires mechanisms for measuring change and for long-term approaches to evaluation. INDUSTRY ENGAGEMENT Most of the expertise in sustainability currently lies within industry, and the challenge lies in the VET sector connecting with it. COST The most common barrier is cost. This includes costs of providing replacement staff to cover those attending skill development programmes, as well as the cost of the skill development activity itself. Budgets can be a problem, particularly for part-time and seasonal staff, who often have to fund their own skill development. Distance, time and cost barriers are exacerbated for those in regional and remote areas, as most professional development activities tend to be offered in capital cities. TECHNOLOGY With technology now being a central part of learning, either to access the learning itself, or to do the necessary research for undertaking learning tasks or finding resources, lack of access to appropriate technology can be a major barrier. Planned development of skills must be underpinned by a policy, which is both comprehensive as well as national in character. A national policy response is, therefore, needed to guide the skill development strategies and coordinated action by all stake holders linked to policies in the economic, employment and social development arenas.
VISION FOR THE NATIONAL SKILL DEVELOPMENT INITIATIVE IN INDIA

Scale of ambition: At present the capacity of skill development in India is around 3.1 million persons per year. The 11th Five Year Plan envisions an increase in that capacity to 15 million annually. India has target of creating 500 million skilled workers by 2022. Thus, there is a need for increasing capacity and capability of skill development programs. High inclusivity: The skill development initiatives will harness inclusivity and reduce divisions such as male/female, rural/urban, organized/unorganized employment and traditional/contemporary workplace. Dynamic and demand-based system planning: The skill development initiatives support the supply of trained workers who are adjustable dynamically to the changing demands of employment and technologies. This policy will promote excellence and will meet the requirements of knowledge economy. Choice, competition and accountability: The skill development initiative does not discriminate between private or public delivery and users choice and competition among training providers and their accountability. Policy coordination and coherence: The skill development initiatives support employment generation, economic growth and social development processes. Skill development policy will be an integral part of comprehensive economic, labour and social policies and programmes. A framework for better coordination among various Ministries, States, industry and other stakeholders will be established.
OPERATIONAL STRATEGIES
The following operational strategies shall be adopted: Folding the future in: If we start from our current position, we are likely to extrapolate. Folding the future in allows us to innovate. Innovation is, therefore, an important element of the strategy. Skills framework must move to a system of equivalence to diplomas and degrees: National Vocational Qualification Framework (NVQF) shall be created with an open/flexible system which will permit individuals to accumulate their knowledge and skills, and convert them through testing and certification into higher diplomas and degrees. NVQF shall provide quality assured various learning pathways having standards, comparable with any international qualification framework. NVQF shall support lifelong learning, continuous up gradation of skills and knowledge. Skills must be bankable: The process of skill acquisition especially for the poor and needy persons shall be made bankable. The effort would be to complement public investment with institutional/ bank finance. Co-created solutions and forging partnerships: We have to accept a very asymmetric India as a starting point. Partnerships shall be consciously promoted between Government, industry, local governments, civil society institutions and all potential skill providers. Institutional mechanism and standing platforms shall be created to ensure sustainability. Game-changing delivery/innovation: Availability of public institutions above the high school level, after class hours for skill development by the Private Sector, without disturbing the normal working, shall be explored. Necessary regulations would be brought in by the local management authority of the particular educational institution.
CORE OPERATING PRINCIPLES

Government financial support must complement private investment: The Central Ministries must focus on areas where private investment in skilled development is unlikely to be available or forthcoming. The Government would aim at useful public-private partnerships. States as key actors: The States being the key actors in Skill Development would set up overarching integrated framework for action for Skill Development through State level Skill Development Missions. Deployment of funds: The funds would be deployed more for activities than for buildings and other hard assets. However, up gradation of machinery and equipment, teaching and learning aids will be a continuous process. Creation of infrastructure in latest technology, need-based new initiatives, creation of infrastructure in rural, remote and difficult areas should continue.

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Focus of modular courses, open architecture and short term courses: With fast changing skills in the labour market, focus should be on short, relevant and effective courses that would get candidates into the workplace. They shall be welded through NVQF to maintain dynamism and open to feedback. Separate financing from delivery: Today Government funds are only available for government delivery. National Skill Development Corporation shall support private skill development initiatives. Following financing options shall be explored: o Link financing to outcomes: Today public and private training is financed largely on inputs viz. number of courses, number of students, faculty, etc. Efforts would be made to move towards Government financing linked to placement ratios and outcomes. o Focus funding on candidates: The focus would be on funding the candidates rather than institutions to create choice. This could be structured as a scholarship, skill voucher, outcome based reimbursement, etc. Create infrastructure for on-the-job-training and encourage apprenticeships: The enabling infrastructure for large number of formal apprentices needs to be built that includes modification to the Apprentices Act, 1961. Publicize rating and outcome information on training institutions: A framework of accreditation and infrastructure for information dissemination around measurable criteria on institutions shall be created. Ratings of public and private institutions would be put on public domain. Effective assessment and credible certification: Quality assured learning, credible assessment and certification shall be developed. This will allow employers to use the certificate as a proxy to fast track job applicants. Restructure employment exchanges as career guidance centres: Employment Exchanges shall be restructured as career guidance centres to channelize candidates into jobs, apprenticeships and training. Expand formal employment: Formal employment is not only fiscally attractive but more amenable to financing innovations. This shall require a review of existing State and Central legislations which shall encourage informal and unorganized employment. Promoting Excellence: To promote excellence, a significant number of well performing institutions shall be assisted to develop into institutions of excellence. These institutions shall be generously resourced, equipped with internationally comparable facilities and high quality faculty and able to offer high quality programmes in current and emerging technology areas. These institutions shall be networked with a number of training institutions in their vicinity and shall serve as lead institutions in supporting their development.
APPROACH TO DELIVERABLES
Diversity of skills: There is a need to identify, catalog and project the range and depth of skills e.g. traditional, industrial-era and post-industrial era skills to understand and present the vast array of skills that individuals can choose from. Talent pool: Skill inventory along with its various levels and grades shall be created. Employment outcomes: Skill training must ensure a job for those who seek it. The placement ratio shall be monitored and placed in the public domain by agencies involved in skill training.
CONCLUSION
Quality and relevance of skill development are key to Indias global competitiveness as well as to improve an individuals access to decent employment. For enterprises to compete in the global economy, the quality of labour force must reach world standards and be relevant to the needs of national and international markets. To increase the relevance with future employment market including promotion of self employment, soft skills and entrepreneurship skills shall be made integral part of skill development. The demographic advantage that the country enjoys, coupled with prospects of global shortages in skills as the world population ages, means that the country could be supplying skills to the world.
REFERENCES
1. 2. 3. 4. 5. 6. 7. 8. Agarwal, P. (2006) Higher Education in India: The Need for a Change Working Paper No. 179, ICRIER, New Delhi. Dar, A. (2006) Skill Development in India: The Vocational Education and Training System, World Bank, Washington, DC. Farrell, Diana, Noshir Kaka, and Sascha Sturze (2005) Ensuring Indias Offshoring Future Earthscan Publications, Mumbai. Palmer, R. (2007) Technical and vocational skills development and impressive economic growth: policy and research challenges Indian Institute of Management, Ahmedabad. Robinson, M. A., Sparrow, P. R., Clegg, C., & Birdi, K. (2007) Forecasting future competency requirements: A three-phase methodology Personnel Review, 36(1), 6590. Rychen D.S. and Salganik L.H. (2003) Key competencies for a successful life and a well-functioning society DeSeCo Publications, New Delhi. Rychen D.S. and Salganik L.H. and McLaughlin. M.E. (2003) Defining and selecting key competencies DeSeCo Publications, New Delhi Salganik, L.H., Rychen, D.S., Moser. U., and Konstant .J. (2003) Key competencies for a successful life and for a well-functioning society, East West Books Pvt. Ltd, New Delhi.

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CORPORATE SOCIAL RESPONSIBILITY @ ICICI BANK

MANISHA SAXENA ASST. PROFESSOR INSTITUTE OF MARKETING & MANAGEMENT NEW DELHI
ABSTRACT
A conscious society today has increasing appetite for the socially responsible investments made by organizations. Business groups have now realized that in the global and highly competitive market place, success rests on the firms ability to sustain its growth through inclusion of multiple stakeholders (Robbins & DeCenzo, 2006). This demands organizations to be more responsible to the environment they operate in. CSR Corporate Social Responsibility is an innovative approach undertaken by the corporate in the process of sustainable development. CSR approach is still new for the corporate managers as they are unable to comprehend the tangible and intangible benefits of this approach to enhance their growth and ultimately gain the long-term profits. This paper makes an effort to understand various CSR initiatives prevalent in the Indian banking sector with special reference to ICICI bank. It mainly analyses the CSR objectives of ICICI Bank and its capacity to identify and address various social issues. According to a survey conducted by Karmayog in 2008 ICICI invests Rs. 20 crores yearly through its dedicated not-for-profit group, the Social Initiatives Group (SIG). The three layers of CSR activities for ICICI Bank, are primary or elementary education, health at birth and microfinance. While primary education connects the poor and the uneducated to the larger economy, activities in health and micro-finance have a direct link with the banks business. Thus the Bank's CSR activities have taken three broad strategic directions: CSR through commercial activities, CSR in partnership with civil society and CSR through ICICI Foundation for Inclusive Growth.
KEYWORDS
Corporate Social Responsibility, ICICI Foundation, Social Initiatives Group Multiple Stakeholders.
INTRODUCTION
one are the days when organizations felt free to treat the society in whatever manner they felt most appropriate as it was a sellers market. Today a conscious society has an increasing appetite for the socially responsible investments made by organizations. Business groups have now realized that in the global and highly competitive market place, success rests on the firms ability to sustain its growth through inclusion of multiple stakeholders (Robbins & DeCenzo, 2006). This demands organizations to be more responsible to the environment they operate in. CSR Corporate Social Responsibility is an innovative approach undertaken by the corporate in the process of sustainable development. CSR approach is still new for the corporate managers as they are unable to comprehend the tangible and intangible benefits of this approach to enhance their growth and ultimately gain the long-term profits. The objectives of the paper can be stated as follows: To find out the various CSR initiatives of the banking industry in India in general. To study the CSR activities of ICICI Bank Ltd. in particular. To understand the impact of CSR on sustainable development of ICICI Bank. The above objectives were achieved by doing a systemic review of the available authentic documents in the concerned area along with information given on the websites of Ministry of Corporate Affairs, Government of India; various banks; their annual and CSR and sustainability reports. Various reports based on the survey conducted by Karmayog in the past years (2007, 2008 and 2009) were studied. To understand in depth the CSR initiatives of ICICI Bank a telephonic interview with the help of a semi structured schedule (Annexure 1) was conducted with one of the team members of ICICI foundation, Mumbai.
DEFINING SUSTAINABILITY
Brundtland Commission, formally the World Commission on Environment and Development (WCED), of the United Nations on March 20, 1987 defined sustainability and sustainable development as: sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This required the reconciliation of environmental, social and economic demands - the "three pillars" of sustainability as noted at the 2005 World Summit. To be sustainable any organization needs to look into all the three areas which are rather mutually reinforcing than mutually exclusive. The economic pillar undoubtedly is the first and foremost but is not the only point of concern. It has to go hand in hand with the organizations social and environmental impact and performance. Corporate Sustainability (CS) is a business approach that creates long-term consumer and employee value by not only creating a green strategy aimed towards the natural environment, but taking into consideration every dimension of how a business operates in the social, cultural, and economic environment and one that fosters longevity through transparency and proper employee development.
CORPORATE SOCIAL RESPONSIBILITY (CSR) - WHAT DOES IT MEAN?

The World Business Council for Sustainable Development defines it as "CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" (Holme & Watts, 2000). The European model is more focused on operating the core business in a socially responsible way, complemented by investment in communities and seems to be more sustainable because: 1. Social responsibility becomes an integral part of the wealth creation process - which if managed properly will solve a twin purpose of enhancing competitiveness of business and maximizing the value of wealth creation to society. 2. In hard times CSR practices will always be the first thing to go if it is a philanthropic exercise, peripheral to the main business. As there is no "one size fits all", different organizations have different priorities and values that shape how business act. Due to the varied inconsistencies in the finalization of the CSR definitions it would be appropriate to stick to one definition of the concept. CSR can be defined as the "economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time" (Carroll & Buchholtz, 2003). Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People (social bottom line)/planet (ecological bottom line)/profit (economic bottom line). Figure 1 clearly brings out the connectivity between all the concepts.

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FIGURE 1: RELATIONSHIP 3P, CS & CSR
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Corporate Sustainability Corporate Social Responsibility P E O P L A P R O
Source: Erasmus University, Wempe & Kaptein in Marrewijk (2003)
CSR A SNAPSHOT VIEW

The Green Paper (2001) by the Commission of the European Communities identifies two main dimensions of CSR, an internal dimension (Human Resource Management, Work safety and health measures, Adaptation to change, management of environmental impacts) relating to practices internal to the company and an external dimension (Local Communities, Business Partners and Human Rights) involving the external stakeholders. Companies should realize their CSR practices will be judged taking into account the practices of their economic partners and suppliers throughout the supply chain. Also as part of their social responsibility companies are expected to provide high quality products and services, which meet customer expectations in a manner reflecting the companys concern for the environment and the local conditions. The Caux Round Table (CRT) Principles (1994) state that companies have a responsibility to respect human rights and democratic institutions; and promote them wherever practical.
EVOLUTION OF CSR AND CSR MODELS

There is an interesting history associated with the evolution of the concept and definition of CSR. The evolution of the CSR beginning in the 1950s marks the modern era. Definitions expanded during the 1960s and proliferated during the 1970s. In the 1980s, fewer new definitions, more empirical research, and alternative themes began to mature which included Corporate Social Performance (CSP), stakeholder theory, and business ethics theory. In the 1990s, CSR continued to serve as a core construct but was transformed into alternative thematic frameworks. Carroll (1991) talked about a multilayered concept of CSR that can be differentiated into four interrelated aspects-economic, legal, ethical and philanthropic responsibilities. Carroll presents these different responsibilities as consecutive layers within a pyramid with economic level being at the bottom and philanthropic level at the top, such that true social responsibility requires the meeting of all four levels consecutively. The model probably is the most accepted and established. The evolution of CSR in India has followed a chronological evolution of 4 thinking approaches (table 1): TABLE 1: CSR MODELS S.no 1 2 3 Model Ethical Statist Liberal Time period 1930s1950 1950s1970 1970s1990 1990spresent Area of Focus Businesses to volunteer to manage their business entity as a trust held in the interest of the community i.e. the promotion of trusteeship State ownership and legal requirements to decide the corporate responsibilities Corporate responsibility is confined to its economic bottom line i.e. limited to private owners. This implies that it is sufficient for business to obey the law and generate wealth, which through taxation and private charitable choices can be directed to social ends. Expects companies to perform according to triple bottom line approach which essentially measures an enterprises performance against economic, social and environmental indicators Pioneer Gandhiji Jawahar Lal Nehru Milton Friedman and Theodore Levitt
Edward Freeman, Robert Ackerman and Archie B Carroll Source: Altered Images: The 2001 State of Corporate Social Responsibility in India Poll, a survey conducted by Tata Energy Research Institute (TERI)
Stakeholder
RATIONALE OF CSR
Businesses should assume social responsibilities because they are among the few private entities that have the resources to do so. The corporate world has some of the brightest minds in the world, and it possesses tremendous financial resources (Wal-Mart, for example, has annual revenues that exceed the annual GNP of some countries). Thus, businesses should utilize some of their human and financial capital in order to make the world a better place. Corporations deal with a wide variety of social issues and problems, some directly related to their operations, some not. Social and environmental impact of the organizations working is of major concern today apart from its economic growth. Corporations have long been criticized for their negative effect on the natural environment in terms of wasting natural resources and contributing to environmental problems such as pollution, global warming, waste disposal, deforestation, acid rain, land degradation etc. It is likely that corporate responsibilities in this area will increase in the coming years as all of these issues have far-reaching societal and ethical implications.
CSR IN THE INDIAN BANKING SECTOR

The concept of Community Service Banking (earlier known as Innovative Banking) was Australia's first and specialist banking service, exclusively for not-forprofit organizations, but today this is being widely used by Indian banks also. A study of some of the newspapers during this period revealed that banks had risen social spending to boost client base (empower the target group sufficiently so that they can become clients in the future) and encourage corporate brand image (Ray & Basu, 2006). HSBC, Standard Chartered Bank (StanChart), ICICI Bank, HDFC Bank and State Bank of India (SBI) were some of the banks to take the lead in the same. CSR as practiced by the banks has two separate dimensions: First and the direct philanthropic one is the outright grant provided by them. The second supports mainstream commercial activities like providing micro-credit to the rural poor. By and large, banks focus on a whole range of causes, including disability, gender, womens empowerment, rehabilitation of the poor and aged, health and environment, education and livelihood promotion/poverty alleviation-related work. In particular, banks that have strong microfinance services tend to focus on rural livelihoods a lot more as it synergizes well with their need to meet priority sector lending targets. The findings of Narwal (2007) suggest that banks have an objective view-point about CSR activities concentrating mainly on education, balanced growth (different strata of society), health, environmental marketing and customer satisfaction. He concludes that irrespective of location, the nature of CSR activities undertaken by banks is found to be similar.

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A survey conducted by Karmayog in the years 2007, 2008 and 2009 studied numerous organizations across various industries pan India to understand all details regarding their initiatives and contributions towards CSR. The Karmayog CSR Ratings are based on various parameters and are from Level 0 to Level 5 with Level 0 being the lowest (No CSR). Table 2 below brings out (looking into the percentages) that banks are on a rise as far as CSR is concerned. TABLE 2: COMPARATIVE DEPICTION OF KARMAYOG SURVEY CONDUCTED ACROSS ALL OVER INDIA ACROSS VARIOUS INDUSTRIES 2007 2008 2009 Total number of companies surveyed 500 1000 500 Number of banks included 42 40 36 Number of banks doing CSR 13(30.95%) 23(57.5%) 33(91.67%) Number of banks with atleast 2 or above rating 11(26.19%) 15(37.5%) 27(75%) Source: Data taken from the survey conducted by karmayog for CSR rating and ranking, 2007, 2008 and 2009 (karmayogs website) According to the results of the Karmayog CSR Ratings (2009) 26% of the companies were not doing any CSR activity, and just 3% of the largest Indian companies (based on sales) studied got a rating of Level 4 with none of them at 5 (this was true for all the 3 years).The Banking sector was one of the best performing sectors, largely due to the mandatory regulations on social sector expenditure for PSUs. TABLE 3: COMPARATIVE OVERVIEW OF KARMAYOG CSR RATINGS FOR INDUSTRY SECTOR 'BANKING' (DOES NOT INCLUDE FINANCIAL INSTITUTIONS) Karmayog CSR Rating No. of Banks in 2007 % No. of Banks in 2008 % No. of Banks in 2009 % 5/5 0 0% 0 0% 0 0% 4/5 0 0% 0 0% 1 3% 3/5 7 17% 6 15% 11 31% 2/5 4 10% 9 23% 15 42% 1/5 2 5% 8 20% 6 17% 0/5 29 69% 17 43% 3 8% Total 42 100% 40 100% 36 100% Source: Data taken from the survey conducted by karmayog for CSR rating and ranking, 2007, 2008 and 2009 (karmayogs website) The data in table 3 clearly depicts that no bank has been able to reach a rating of 5 till now. There were only six- Level 3 banks (Andhra Bank, Canara Bank, ICICI Bank, PNB, Union Bank of India, Yes Bank) in 2008. Yes bank was the only bank with level 4 rating in 2009.Though the number of banks rated 0, for not doing anything on the CSR front, has reduced over the years more work is required to be done. TABLE 4: A COMPARISON OF THE CSR ACTIVITIES TAKEN BY THE BANKING INDUSTRY IN GENERAL IN THE THREE YEARS 2007 2008 2009 Local Community/ Society Banking Awareness Blood Donation Adoption of Girl Child Blood donation Children Agriculture, farming and Farmer's welfare Child Labor Donations Children Disaster Education Credit counseling Education Girl child Disaster Relief Employment Health care Education Farmers Training Heritage Employment Healthcare / At Livelihood Energy Birth Rural Finance to under-served areas and people Medical development Livelihoods training Micro Finance Sports Micro-credit / Self help groups Rural Development Sustainability Poverty eradication Seed Bank Training Rural Development Women Women Senior Citizens Empowerment Empowerment Sponsoring healthcare related initiatives Vocational Training/ Training for self-employment Women's empowerment Environment Environment Green Banking Employee Non Non Non Any other Priority sector lending Responsible Banking Sports Source: data taken from the survey conducted by karmayog for CSR rating and ranking, 2007, 2008 and 2009 (karmayogs website). The author has tried to segregate the various CSR initiatives into broad heads (i.e. related to either the local community or society; environment; employee or any other). Looking at the above table 4 we can conclude that CSR is mainly guided or focused towards the development of the society in general or local community in particular. In 2008, 60% of the banks were working in the area of rural development. Saksena (2009) reiterates that as an important player in the Indian economy, the banks realize that their role should extend beyond the commercial sector to include the social sector as well. It, therefore, aims to participate in the all round development of the country by focusing on some of its fundamental needs.
Broad Areas of CSR related to
A LOOK AT SOME OF THE CASES

The rise in focus on CSR activities by banks can perhaps be well exemplified by the Standard Chartered Banks sponsored Mumbai Marathon, which is an event that draws in several other banks as active participants like ICICI Group, Citibank, HDFC and HSBC. The money raised collectively by these banks and their employees is channelized to more than 50 NGOs all over India by GiveIndia, a donation platform that has assisted many private and foreign banks in their philanthropic activities. Centurion Bank of Punjab initially adopted the traditional model where most companies do business as usual and use CSR as an alternate channel for image building or going a bit beyond by providing local area growth, employment and development. Later CSR was driven separately by CEO having little or no impact on the image of the corporate (Example Microsoft as different from the Bill & Melinda Gates foundation). The new approach to CSR interlinked it with business strategy thus the customer doing business with the organization drives and sustains CSR in the long term. It has created a sustainable platform to educate Indias underprivileged children (gift a future~ spread a smile) with an initial nominal contribution from both consumer and bank and helps build a future for more than 1500 children. It has not only led to further growing a profitable product (credit card) for the bank but also a satisfied and actualized customer base. Thus co-

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opting the customer in a CSR initiative ensures that the CSR initiative blossoms and grows along with the growth of the business to create a longer-term sustainable CSR platform. The same can be tracked for HSBC. The HSBC staff survey in Hong Kong, 2005 brings out some interesting facts like the staff feels that the social and environmental responsibilities of HSBC are very important and a companys ability to fulfill its social responsibilities, including supporting community services, is one of the top five criteria for assessing the success of any large business. Visualizing the rising sentiment towards CSR, HSBC has developed a Corporate Sustainability framework that starts from the bottom of the pyramid with investment in community through education, scholarships, financial literacy etc, aligning it with the business thus creating sustainability by building prosperous communities and impacting the environment positively. The initiatives are in line with the international codes that HSBC has adopted for the same: Global Compact and Global Sullivan principles. It has been awarded a place in the Dow Jones Sustainability World Index (DJSI World) and is the first bank to go carbon neutral in 2005. In 2005-06 alone, the banks microfinance activities provided Rs 33 crore of micro-finances to some 80,000 families in India one of the innumerable social linkage projects. Other actions include disaster and relief rehabilitation, HIV/AIDS, water harvesting, wildlife preservation etc.
ICICI: A CASE STUDY

OVERVIEW ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) as on March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank with a customer base of more than 20 million operates through a network of 2,529 branches and 6,000 ATMs in India, and has a presence in 19 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Hence it is an international MNC now with a strong hold in its industry. The testimonials to its consistently strong position are some of the awards it has been conferred upon by national and international bodies. ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories: Best Financial Inclusion Initiative (first prize) Best Online Bank (runner up) Best use of Business Intelligence ( runner up) Technology Bank of the year ( runner up) Further: ICICI Bank was ranked 70th (2009 and 2010) and 69th in 2011 in the Brand directory league tables of the worlds most valuable brands by The BrandFinance Banking 500. ICICI Bank ranked 2nd in the financial services sector in Business World's "Most Respected Company Awards 2011". ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today. Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank has been conferred with "Padma Bhushan". HISTORY ICICI Bank was originally set up and promoted in 1994 as a wholly-owned subsidiary to enter the area of commercial banking by ICICI (Industrial Credit & Investment Corporation of India) Limited an Indian financial institution. ICICI Ltd. was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry as a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI became the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the New York Stock Exchange (NYSE). THE HUMAN FACE OF ICICI BANK: ICICI FOUNDATION The report In Search of Sustainability in Development (2007) beautifully comes out with the journey that ICICI Bank has traversed in its pursuit to be a good corporate citizen. Moreover a short telephonic interview with some of the employees of ICICI bank, Mumbai, gave a clear picture of the strong position taken by ICICI bank towards its understanding of CSR more than a decade ago. Version 1 of CSR A Social Initiative Group (SIG), a non-profit resource group was set up in ICICI Bank in 2000 based on the reasoning that the intent of development should be to create the ability and opportunity to achieve a state of well-being by all (In Search of Sustainability in Development, 2007). Thus this group decided to focus on capacity building of marginalized communities (especially the poorest of the poor) to help them participate and influence the socio-economic-political processes determining their lives. For this purpose they rationalized a few objectives under three key finalized areas: early child health, elementary education and access to financial services. The idea was to catalyze change through innovation, research, knowledge generation, influencing policy, advocacy and reforming mainstream practice. The basic purpose was to build the bank as a responsible corporate citizen. Version 2 The SIG was quick to realize that all this would be achievable only with strategic partnerships with Civil Society Organizations (CSO), academics, central and state governments and where necessary and appropriate for-profit, private sector companies also. It built partnerships to strengthen the capacity of marginalized communities w.r.t. participation in and influence on social, economic and political processes that determine their lives (Kamath, 2008-9, pg.4). Thus SIGs work in the three areas was carried out through specialized groups: ICICI Center for Child Health and Nutrition (ICCHN, Pune); Elementary Education Practice of the SIG (EESIG, Mumbai) and Microfinance Practice of the SIG (MFSIG, Chennai). Apart from this the SIG does take help from the already existing systems like National Rural Health Mission (NRHM), Eklavya, GiveIndia, Mitra Foundation etc (In Search of Sustainability in Development, 2007). The year 2008 saw the establishment of a separate foundation to focus on the CSRs of the whole ICICI group. Version 3 Drawing from the experiences of other big players and organizations from different industries, ICICI Foundation was established to undertake the whole and sole responsibility of CSR to be implemented by ICICI as a group. Bill & Melinda Gates foundation, Warren Buffet foundation for HIV, WIPROs Pratham, Ford foundation etc are existing examples where exclusive concentration is on certain predefined themes. According to Kamath (2008-9, pg.4) the lopsided economic growth within the country which lead to 600 million Indians to remain bereft of the economic opportunities presented by the high rate of growth forced the ICICI group (ICICI Bank and its subsidiaries: ICICI Prudential Life Insurance, ICICI Securities Limited, ICICI Lombard General Insurance Company, ICICI Prudential Asset Management Company, ICICI Venture) to get together to promote (with the help of grants, donations and corpus funds) inclusive growth of all sectors across the nations economy by establishing the ICICI Foundation for Inclusive Growth (IFIG) on January 04, 2008 as a public charitable trust registered at Chennai vide registration of the Trust Deed with the Sub-Registrars office at Chennai. The Foundation works with ICICI Group of Companies to support their various CSR initiatives which are designed to be consistent with their respective business foci. But as the IFIG annual report (2008-9, pg.48) puts it, economic growth alone gives an incomplete picture of a countrys development as it ignores the effects of development on ecological and natural systems. From a sustainable point of view it is essential to examine environmental sustainability in relation to economic and social development. Mor (2010) states that no single institution working alone can fully address the complexities of economic, social and environmental situations and thus, only by drawing on and harnessing the already existing high levels of expertise with different institutions in several different areas can an organization address each issue and in-depth. So rather than building departments within a large organization the most innovative step of the group was to invite strategic partnership to

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collaborate with and foster independent, responsive organizations with deep expertise in selected areas for CSR (primary health, elementary education, financial inclusion, protection of the rights of the poor and environmental responsibility). He reasons out the choice of the CSR initiatives of the foundation. According to the foundation while healthy and educated individuals do gain the capacity to transform their lives enabling them to participate fully in the socio-economic processes of the country, their ability to do so depends a lot on the access to quality financial services but these three areas only fulfill the minimum necessary criteria for the Indian growth process to be truly inclusive but are not sufficient for the same. Hence the foundation goes a step further in supporting social change without exploitation with the help of strong CSO partners. For a sustainable growth and development the group emphasizes environmentally sustainable finance. The strategic partners (or beneficiaries of grants by the ICICI group) for achieving these goals are ICCHN, ICICI Center for Elementary Education (ICEE), IFMR (Institute for Financial Management and Research) Finance Foundation (IFF), CSO partners and Environmentally Sustainable Finance (ESF) Group. The bank and its subsidiaries propose to give some percent their profits every year to the foundation, subject to approvals from their respective boards. According to the annual report 2008-9 of IFIG while the IFIG was founded by the ICICI group in early 2008 the foundations of ICICI groups approach towards human and social development were established with the SIG. According to Kochhar (2010) ICICI bank in its effort to integrate good corporate citizenship with good business promoted financial inclusion as a priority both from a social and business perspective. But, she elaborates, with the massive size of Indias rural population along with its wide geographical spread innovative models of financial service delivery and customized financial products are the need of the hour to bridge the gap. ICICI Group's financial inclusion initiatives include microfinance initiatives, introduction of biometric cards, models like Business Correspondents, micro insurance and micro systematic investment plans, capacity building for MFIs, Financial education, credit counseling and debt management etc. The rural Indian economy is exposed to fundamental risks and has limited access to risk mitigating solutions. In order to achieve significant impact, it is critical to operate on a large scale with operational costs that are one tenth of those in urban areas. Technology Finance Groups (TFG) programs are designed to assist industry and institutions to undertake collaborative R&D and technology development projects. On October 30, 2009 the Board of Directors of ICICI bank constituted the CSR Committee which is empowered to review the CSR initiatives undertaken by the ICICI Group and the ICICI Foundation for Inclusive Growth, make recommendations to the Board, review and implement initiatives, policies and practices of the ICICI Group if required (Annual Report, 2009-2010).
TOWARDS SUSTAINABLE DEVELOPMENT

The biggest innovation in their effort to build sustainable models for socio-economic development has been partnerships with a wide range of players and infusion of technology. Further to make CSR itself sustainable it has to bring in some tangible results towards corporate sustainability. The below table 5 tries to bring out the relation between the financial growth of the bank vis a vis its spending on and rating in CSR.
TABLE 5: ICICI BANK FINANCIAL GROWTH (ALL FINANCIAL YEARS FROM 1ST APRIL OF THE PREVIOUS YEAR - 31ST MARCH OF THE NEXT YEAR) VIS-A-VIS GROWTH IN CSR
CSR Rating Areas of work 2006-2007 3 Elementary Education Health Micro finance 12565 2761 2007-2008 3 Community welfare Health care Sustainability 2008-2009 3 Children Education Rural Development 15970 3577 2009-2010 NA Elementary Education Philanthropy counseling and referral programme Apart from contributing for other group activities 15592 4670
Income (in Rs crores) Consolidated Profit after tax (in Rs crores) CSR Budget (in Rs crores)
16115 3398
NA
ICICI Bank and its subsidiaries will contribute 0.75%-1.0% of their annual profits to the Foundation
50 (from 4th Jan 2008-31st march 2009)
15.370
NA-Not Available
Source: Annual Reports 2006-7, 2007-8, 2008-9 & 2009-10 of ICICI Bank; Annual Reports 2008-9 & 2009-10 of IFIG and Karmayog study for the years 2007, 2008, 2009
Though no direct study has been done to understand the impact of CSR on the Corporate Sustainability (CS) of the bank, the above table 5 tries to bring out some similarity in the direction in which the banks financial growth in terms of profit and its commitment to social issues proceed. The karmayog study recommends an expenditure of 0.2% of sales on CSR. Does a strong financial position lead to CSR initiatives or a commitment to CSR lead to corporate sustainability? The issue still needs to be addressed. ICICI Bank, is a responsible corporate citizen and believes that every small 'green' step today would go a long way in building a greener future and that each one of us can work towards a better earth. Thus it recognizes and contributes to the need to conserve national resources and explore clean technology to mitigate climate change by collaborating with employees and customers alike to reduce the carbon footprint from banking. It helps other organizations in their effort to "Go Green" by funding and managing green technology projects. It assists projects in the energy and environment space that reduce green house gas emissions and pollution at source (by using cleaner technologies). Hence it promotes sustainable development by integrating all this with social and environment considerations. Read to Lead campaign is ICICI banks flagship programme under its CSR as it is a staunch believer of the fact that education today means a better tomorrow. It was launched in 2008 to facilitate elementary education for underprivileged children in the age group of 6-14 years. It focused on strengthening the existing education system, rather than creating a parallel one in the country and aimed at making underprivileged children of our country self-reliant and self-dependent by getting them into the mainstream of our education system and in turn to strengthen the future of our nation. Through this campaign ICICI Bank has pledged to educate over 1,00,000 children (aim to enroll 50% girls), currently not enrolled in school with the help of around 30 partners (NGOs/CSOs), chosen on the basis of their years of experience in the field of education, their ideologies, the sustainability of their models and their outreach. Some of the grant beneficiaries like Centre for learning Resources (ClR); Educational Support Organisation (ESo), Eklavya Foundation, Pratham, Vidya Bhawan Society etc. develop material, curriculum, pedagogy and training approaches, conduct research, provide technical services to implement capacity building programmes, develop organizational design and management systems that can address some of the issues of access and quality of education. CSO Partners work with specialized entities such as GIVE India and MITRA to facilitate linkages between corporate and retail contributors and deserving NGOs. ICEE believes that education up to the elementary level is a minimal and necessary condition for individuals to participate meaningfully in socio-economic processes, and collectively contribute to the development of society. This pan India (around 14 states) initiative is funded (allocation of 10 crores) by ICICI foundation. The initiative is a complete package that involves parents and community; organizes teacher trainings; provides educational kits with uniforms, books, stationery and woolen clothes; offers health and nutritional support for children etc. Some of the other innovative interventions by ICICI bank (In Search of Sustainability in Development, 2007): The Center for Development Finance (CDF) at IFMR, Chennai worked and is working with Decentralized Energy Systems India (DESI) Power, a CSO to provide energy using Biomass. Realizing that a large proportion of the Indian population does not have access to basic facilities as health care, education and financial services which cuts them from the mainstream markets, the bank has tried to experiment in institutional build up through partnerships to provide opportunities to the poor in the areas of microfinance, insurance and development finance etc. After the group lending and Joint Liability Group the microfinance model has graduated to a new methodology of individual lending. Moreover Financial Information Network and Operations (FINO), a technology solutions company promoted

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by ICICI bank provided the first innovative technology solutions like biometric multi-function card to reach the millions of underserved end users. Microfinance is considered as a business with social dimensions as it is seen as a pathway out of poverty. Skill building, quality control and improving productivity was the next phase after the provision of financial services for the poor long considered to be a missing market. Capacity building not being a core to ICICI bank it partnered and supported partnerships for the same. Thus creating an enabling environment through institutional support. The bank part funded National Center for Advanced Economic Research (NCAER) and National Institute of Public Finance and Policy (NIPFP) and Institute of Financial Management and Research (IFMR) for knowledge creation through specialized policy research and surveys. Realizing that in a rapidly growing globalised world the competition is no longer among independent firms but among their respective supply chain networks, ICICI bank has set up an end-to-end supply cold chain project. Thus it seeks to unlock the immense potential of the Indian horticulture sector by providing pre and post-harvest interventions in the value chain, innovative cattle finance products to be distributed by MFIs in dairy farming, exploring and building forward and backward linkages within the aquaculture. It finances organizations that work towards developing a sustainable model for providing clean (according to WHO standards) and low cost drinking water facilities to the rural poor. The bank promoted National Commodity Development Exchange (NCDX) to help farmers command a better price through a free and fair pricing mechanism Efforts are in progress to replicate the above successful models implemented in a city, district or state in other parts of the country. A direct approach to CSR is taken where ICICI Group of Companies core competencies and resources can be put to work as their CSR efforts have been and remain integral to its core mission of delivering value to its stakeholders and to the sustainable growth and development of Indias economy. The foundations vision is to create a world free of poverty in which every individual has the freedom and power to create and sustain a just society. It is guided by its mission to empower the poor to participate in and benefit from the Indian growth process through integrated action in the fields of child health and nutrition, elementary education, financial inclusion and sustainable livelihood.
CONCLUSION, LIMITATION AND FUTURE SCOPE OF THE STUDY

The lack of concern for the local community, the consumers and the environment by corporate in todays world will undoubtedly create large scale public debate and action. Thus it is important in this context to understand that the sustainable business growth is associated with care for the community and the markets/environment the corporate operate in. The negative publicity caused by actions/inactions of corporate will lead to suspicion about their operations in the eyes of the general public (Krishnan & Balachandran, December 21-22, 2004). CSR in itself might have some inherent limitations for its successful implementation as listed below: Huge investments in terms of time, money and people Time duration of return unclear Difficult to define tangible Returns Difficult to quantify intangible returns Lack of expertise of the corporate in this area Selection of CSR initiative is also debatable But still there is no doubt that the legal, ethical, and discretionary expectations placed on businesses are greater than ever before. Hence companies purport to pursue not only the goal of increased revenues and profits, but also the goal of community and societal betterment. Research suggests that those corporations that develop a reputation as being socially responsive and ethical enjoy higher levels of performance. However, the ultimate motivation for corporations to practice social responsibility should not be a financial motivation, but a moral and ethical one. Hence CSR has an important role to play especially in building up trust in the minds of the consumers. The case for ICICI bank proves that there is lot more to discover in the field of CSR themes as there is immense gap between what banks are doing in terms of CSR and what they are capable of and should be doing. The gap reaffirms the scope that lies in taking CSR initiatives for the benefit of the multiple stakeholders. It is not possible for an organization to address all the issues that it effects and so it is always better for it to prioritize according to its limited resources, expertise etc. Banks can zero down to any theme that suits not only their financial capacity but also their human resource capabilities. Micro finance and financial inclusion are being seen as a potential source or tools for CSR in the Indian banking sector. Thus can be further explored by the organizations to not only exhibit their social concern but also to gain more loyal customers that run from one generation to the other. If subsidies and grants would have really worked for the betterment of the poor and alleviation of poverty, we would not have yet been a nation where 456 million Indians (41.6 % of the total Indian population) live under the global poverty line of $1.25 per day (According to a 2005 World Bank estimate). Thus in place of charity if we concentrate on Social Business (the term used by Muhammad Yunus) we might be in a position to incorporate CSR in a sustainable manner for sustainable development. Small banks may find it difficult to go for CSR as a separate activity because of the above reasons and financial constraint but if they integrate it in their strategic business model itself from day one, they will not feel it as an extra effort or burden in future. As fact of the matter remains that every small organization today has to or will most probably become huge and large tomorrow. So instead of restructuring tomorrow to absorb the crucial requirements of sustainable existence, working towards it from day one will strengthen the organizations position forever. Besides giving back something to the local community and improving the quality of peoples lives, CSR initiatives also reflect commitment to building a sustainable and successful business in the future as they complement and link each other. By contributing in a sustainable and scalable manner to Indias socioeconomic growth, value is added as a bank and it in turn, benefits the shareholders, customers and employees. Though the study restricts itself to the analysis of a single bank ICICI but ICICI bank being the largest private sector bank in India definitely is a source of guidance for the others in the industry. Taking a cue from the works of ICICI foundation other banks as well as other industries can conceive their own innovative models of CSR for sustainable development. One of the future scopes of the paper can be to understand the actual relationship between CSR and CS.
REFERENCES
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13. Krishnan, S. K., & Balachandran, R. (December 21-22, 2004), CSR as a Determinant of Market Success: An Exploratory Analysis With Special Reference to MNCs in Emerging Markets,Paper presented at IIM K NASMEI International Conference on Marketing Strategies for Firms in Emerging Markets. Calicut. 14. Marrewijk, M. V. (2003), Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion, Journal of Business Ethics, 44, 95-105. 15. Mor, N. (2010, June). President's Message. Quaterly Newsletter of IFIG (1). 16. Narwal, M. (2007), CSR Initiatives of Indian Banking Industry, Social Responsibility Journal, 3 (4), 49-60. 17. (2001). Promoting a European framework for Corporate Social Responsibility. Green Paper, Commission of the Euopean Communities, Brussels. 18. Ray, A., & S.D.Basu. (2006, December 27). Banks Raise Social Spending To Boost Client Base, Brand. Economic Times. 19. Robbins, S. P., & DeCenzo, D. A. (2006), Fundamentals of Management, Essential Concepts and Applications (3rd ed.),Delhi: Pearson Education. WEBLIOGRAPHY 20. About the WBCSD. Online, Available at http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&MenuId=NjA&doOpen=1 &ClickMenu=LeftMenu 21. Awards-2011. Online, Available at http://www.icicibank.com/aboutus/awards.html 22. Brundtland Commission. Online, Available at http://en.wikipedia.org/wiki/Brundtland_Commission 23. Company: ICICI Bank Ltd and CSR activities. Online, Available at http://www.karmayog.org/csr500companies/csr500companies_7864.htm# 24. Compilation of responses received to CSR: Is your bank a socially responsible one? Online, Available at http://www.karmayog.org/csr2008sectors/ csr2008sectors_23432.htm 25. Compiled table of Banking companies (36). Online, Available at http://www.karmayog.org/redirect/strred.asp?docId=29301 26. Compiled table of Banking companies (40). Online, Available at http://www.karmayog.org/redirect/strred.asp?docId=23433 27. Corporate Social Responsibility. Online, Available at http://www.answers.com/topic/corporate-social-responsibility#Laws_and_regulation 28. Corporate sustainability. Online, Available at http://en.wikipedia.org/wiki/Corporate_sustainability 29. Details of CSR of the top 500 companies. Online, Available at http://www.karmayog.org/csr500companies/ 30. http://economictmes.indiatimes.com/News/News_By_Industry/Services/Education/ICICI_Bank_joins_hands_with_NGOs_to_educate_children/rssarticlesh ow/3455147.cms. last retrieved on 2nd October 2009 31. ICICI Bank Ltd. Online, Available at http://www.karmayog.org/csr1to500/csr1to500_20212.htm 32. ICICI Bank, About Us. Online, Available at http://www.icicibank.com/pfsuser/aboutus/overview/overview.htm 33. ICICI Foundation to focus on poor. Online, Available at http://www.financialexpress.com/news/icici-foundation-to-focus-on-poor-households/260493/ 34. ICICI Foundation. Online, Available at http://ifmrtrust.co.in/partners/icici_foundation.php 35. ICICI Group CSR. Online, Available at http://www.icicifoundation.org/icici-group-csr-14.htm 36. ICICI's Mor all set to call it a day as banker. Online, Available at http://economictimes.indiatimes.com/articleshow/2465005.cms 37. Karmayog CSR Rating of Banking Sector (From largest 500 Indian Companies). Online, Available at http://www.karmayog.org/redirect/ strred.asp?docId=10086 38. Karmayog CSR Rating of the 500 largest Indian Companies 2007. Online, Available at http://www.karmayog.org/redirect/strred.asp?docId=22802 39. Krishnan, S. (2001). Corporate Citizenship: How and why in India. Online Available at http://www.coolavenues.com/know/gm/ corporate_citizenship.php3 40. More on Read to Lead. Online, Available at http://www.icicibank.com/pfsuser/read_to_lead/more.html 41. Poverty in India. Online, Available at http://en.wikipedia.org/wiki/Poverty_in_India 42. Principles for Business. Online, Available at http://www.cauxroundtable.org/index.cfm?menuid=8 43. Saksena, H. Corporate Social Responsibility of Financial Institutions: An Indian Perspective. Retrieved on September 6, 2009, from http://students.indlaw.com/display.aspx?4384 44. Solution Exchange India. Online, Available at www.solutionexchange-un.net.in 45. Sustainability Summary. Online, Available at http://www.ecodesk.com/sustainability/icici-bank/ 46. Sustainability. Online, Available at http://en.wikipedia.org/wiki/Sustainability#Definition 47. Sustainability. Online, Available at http://www.forestry.gov.uk/forestry/edik-59fmzf 48. Table showing individual CSR activities and profiles of the largest 500 companies in India (by sales) for the year 2008-2009. Online, Available at http://www.karmayog.org/csr2009/index.aspx?pageIndex=1 49. Thadani, M. (2008) Corporate Sustainability, The HSBC Response. Online, Available at http://www.assocham.org/events/recent/event_221/ 29_MALINI_THADANI.pdf 50. The Programme. Online, Available at http://www.icicibank.com/pfsuser/read_to_lead/theProgram.html 51. Towards Sustainable Development. Online, Available at http://www.icicigroupcompanies.com/towards_sustainable_dev.html 52. Vig, V. (2008) Creating New CSR Models: Trends and Challenges in CSR http://www.assocham.org/events/recent/event_221/30 _Vivek_Vig_Centurion_Bank_of_Punjab.pdf
APPENDIX
Annexure 1: Semi structured interview schedule Q1. What are the various CSR initiatives of ICICI Bank exclusively (not the complete ICICI group) Q2. What according to you has been the most innovative thing about it, as in the initiative, its operation, implementation or the process etc.? Q3. How do you thing CSR supports sustainability of ICICI bank? Q4. Any other information that you would like to furnish.

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INVESTMENT DECISIONS OF RETAIL INVESTORS IN MUTUAL FUND INDUSTRY: AN EMPIRICAL STUDY USING DEMOGRAPHIC FACTORS
SHAFQAT AJAZ RESEARCH SCHOLAR THE BUSINESS SCHOOL UNIVERSITY OF JAMMU JAMMU DR. SAMEER GUPTA ASSOCIATE PROFESSOR THE BUSINESS SCHOOL UNIVERSITY OF JAMMU JAMMU
ABSTRACT
This paper is based on the framework of the investment decisions of retail investors in mutual fund schemes. The paper aims to investigate effects of demographic variables (gender, age, education level, marital status, occupation, household monthly income and cities) on investment decisions of retail investors in mutual fund schemes. In the backdrop of methodology, the data of 841 retail investors who actively invested in mutual fund schemes were analyzed. Primary data was collected from four cities of Northern India namely Jammu, Srinagar, Chandigarh and Ludhiana by using a structured questionnaire. The findings of the study revealed that gender has least impact on retail investors decisions, while other demographic variables taken for the study have major impact on retail investors decisions. The findings further revealed that in-between selected Cities, investment decisions were not influenced by demographic variables.
KEYWORDS
Demographic Factors, Investment Decisions, Mutual Fund Schemes, Retail Investors.
INTRODUCTION
N OVERVIEW OF INVESTMENT Individuals save their surplus funds in the form of financial as well as physical savings; physical savings still command dominant share vis--vis a financial savings in India. The financial savings are kept in the form of currency, bank deposits, life insurance fund, provident and pension fund, shares, debentures and mutual funds. Saving money in the form of bank deposits, life insurance schemes, provident and pension fund offers safe but low return. Investments in corporate securities provide an opportunity of investing small amount of funds directly into the business and reap the benefit of corporate profits. But it is also accompanied by capital, liquidity, and profitability risk. That is why the contribution of corporate securities though have consistently increased during the past two decades, but their share in the total financial savings has remained low (5% approximately) and majority of financial savings are still parked in the form of risk- free deposits and funds. After financial sector reforms, there has been a shift in trend towards investment in corporate securities in general and mutual funds in particular Mutual funds have emerged an option for investing financial savings as they offer diversified investment in various corporate securities with comparatively much lesser risk than direct investment in corporate securities along with the benefit of consistent returns which are better than returns offered by risk free deposits. There has been consistent increase in the funds mobilize by the mutual fund and the assets under the management of mutual funds have increased from rupees 107946crores in 2000 to rupees 613979crores in 2010 which has been an impressive six times increased during last decade. There is enough research evidence that investment is the primary instrument of economic growth. Further, the rate of investment is proportionately increasing with the rate of savings. Therefore, saving is the key factor in achieving a high rate of investment. According to Athukorala & Sen (2004), the investors are the backbone of the any economy especially in India. The research also revealed that there has been a consistent increase in the national saving rate in India through the post independence period, though with considerable fluctuations from year to year.
RETAIL INVESTORS: AN INVESTMENT DECISIONS

Retail investors are the polar opposite of institutional investors. Retail individual investor is defined by Securities and Exchange Board of India and Investor Education and Protection Fund, Ministry of Corporate Affairs, Govt. of India Retail Individual Investor means an investor who applies or bids for securities of or for a value of not more than Rs 100,000. According to Investopedia, Retail investor refers to an individual who buys and sells securities for his or her own account through a traditional or online brokerage firm. While some retail investors hold portfolios worth millions of dollars and others own just a few securities, they are different from institutional investors, such as pension funds, money managers, or financial services companies, who have discretionary control over at least $100 million in securities. A retail investor invests small amounts of money for himself/herself rather than on behalf of anyone else.
RETAIL INVESTORS IN MUTUAL FUNDS

As per Association of Mutual Fund in India database retail investors own 46,394,282 folios out of the total 47,598,163 folios having a share of 97.47 per cent of the total folios. Retail investors have made investment under different types of mutual fund schemes including Equity oriented, Debt oriented, Balanced funds, Gold ETF, Fund of Funds investing Overseas and the total investment of retail investors under these schemes has been 47,140,177crores as on march 30,sep. 2010 (AMFI). Net Investments in 2011(September) in equity and debit is 17,664.7 crores (SEBI). All investment has some risk element, this risk factor should be borne in mind by the investors and they should take all precautions to protect their interest. Michael K.H Law, 2010 revealed that it is more about the risks and subsequently make an informed decision as to whether to take on the risk according to their risk appetite. Even though they take a decision by using the marketing information but every investor invest money with three objectives i.e., return on investment, looks for the safety and liquidity of fund (K. Balanga Gurunathan, 2007). As most of the retail investors are not financial experts, there may simply be no way available to them for obtaining the necessary information. Firms should therefore, be made to disclose the financial risks and alert investors. This would help to increase the participation of small investors higher rate of investment and channelizing of the same into capital markets. The informed trading would encourage small investors channelize their saving into capital market and this informed trading ensure market efficiency through the atmosphere of transparency, faith, and confidence of investors to the market (Nicholas. L. Georgakopoulous, 1996). According to Somaiya, in 2005 asymmetry in the investors market should be reduced through the periodically update about the firm information, more efficient regulatory network, clarity, scientific system and scientific management process. Hence an informed investor is a safe investor and in the absence of relevant information, individual investors cannot make informed decisions and would be exploited unfairly by sellers, who would know better about the true-risk and return of the products than the buyer.

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INVESTMENT DECISION MAKING

Market information help the investor to take decision and in the absence of market information the investor are in dilemma to take decision, so investment decision cause an issue of behavioral finance. According to Mathews in 2005, Olsen in 1998, and also Linter in 1998 decision making related with behavioral finance is a process of choosing a particular investment alternative from a number of alternatives that is an activity that follows after proper evaluation of all the alternatives available in the market and not try to show the rational behavior or label decision making which is biased or faulty. The basic purpose of the behavior finance is to understand and predict systematic financial market implications or psychological decision processes. Many investors have, for long considered that psychology plays a key role in determining the behavior of markets. Evidence in the literature of psychology also suggested that individuals have limited information processing capabilities, they are prone to making mistakes and also they exhibit systematical errors. The sources of these irrationalities are demographic factors and emotional responses to price fluctuations and the changes in an investors wealth. Individuals decisions have significant consequences ( Andrew W. Lo, Dmitry V. Repin, and Brett N. Steenbarger) Individual investors who trades in capital markets are searching for new strategies to maximize their returns those individuals make periodic contributions and withdrawals from their investment portfolios in a way trying to minimize their losses and maximize their gains. They use more subjective and less ideal paths of reasoning in consistent with their basic judgment and preferences. Demographic characteristics and trading strategies do play a role in the magnitude of trading returns of individual investors. Research reveals that an investors background and past experiences plays a significant role in decisions made during their investment.
EVIDENCES FROM THE EXISTING LITERATURE

The importance of small investors has been recognized in the development of the country through various studies. Such investors have already attracted the attention of global practitioners and academicians but most of the existing research available is on either accelerating the return on funds or comparing it with benchmark fund schemes. A scholarly investigation is being carried out to study the phenomenon of retail investment. A research survey conducted with the objective of providing data on the investor preferences on MFs and other financial assets. The findings of the study were more appropriate, at that time, to the policy makers of mutual funds to design the financial products for the future (Gupta, 1994). A considerable amount of research focuses on the demographic differences in terms of individual investors trading strategies, risk preferences and trading performance. From a general framework, researchers commonly agree that women are more risk averse than men, similarly men are more risk tolerant than women (Bajtelsmit and Bernasek, 1996; Sung and Hanna, 1996); unmarried individuals are more risk tolerant compared to married couples (Lee and Hanna, 1991) and the tendency to held more risky and volatile assets decrease as age increases (Barber and Odean, 2001; Sung and Hanna, 1996). Lewellen, Lease and Schlarbaum (1977)s study, using a data set of 972 individual investors from 1964 through 1970, report that men spend more time and money on security analysis and rely less on their brokers, make more transactions, believe returns are more highly predictable, and anticipate higher possible returns than do women. Barber and Odean (2001)s investigation of 35.000 households common stock investments also offer interesting findings about age. Concerning age of households, the findings revealed that young investors hold more volatile portfolios and their average monthly turnover declines as age increases. Barber and Odean (2001) also reported that these differences are more pronounced between single men and single women. Loayza and Shankar (2000) show the evolution of private saving rate in India during 1960-95. They find that Indias demographic transition in the past 30 years must have contributed to an increase in the aggregate private saving rate. The research reveals that in the long run, the level of income promotes savings rather than the other way round. In the short run, economic liberalization appears to depress savings, but in the long run it promotes savings through its impact on growth (Mahambare and Balasubramanyam, 2000). A recent nationwide survey of over 60,000 households (Shukla, 2007) by National Council of Applied Economic Research (NCAER), New Delhi and Max New York Life has revealed that India saves but does not invest. India saves for long-term goals such as emergencies, education and old age, but does not invest in long-term instruments. Financial vulnerability is not limited to poor households; even prosperous households are financially vulnerable as majority of them neither plan their future, nor save long-term. A researcher conducted a survey of about the investment behavior of 200 respondents belonging to Coimbatore district in Tamil Nadu, and found that irrespective of the developments in the capital market /economic conditions, investors like to invest regularly and this investment behavior is highly related to educational background, their occupation, reading habit of investment news and the time taken for investment decision making process (Krishnamoorthi, 2009). Shankar (1996) points out that the Indian investors do view Mutual Funds as commodity products and AMCs, to capture the market should follow the consumer product distribution model. Jambodeka (1996) conducted a study to assess the awareness of MFs among investors, to identify the information sources influencing the buying decision and the factors influencing the choice of a particular fund. The study reveals among other things that Income Schemes and Open Ended Schemes are more preferred than Growth Schemes and Close Ended Schemes during the then prevalent market conditions. Sikidar and Singh (1996) carried out a survey with an objective to understand the behavioral aspects of the investors of the North Eastern region towards mutual funds investment portfolio. The survey Vol. 3, No. 10 International Journal of Business and Management 92 revealed that the salaried and self-employed formed the major investors in mutual fund primarily due to tax concessions. Goetzman and Peles (1997) established that there is evidence of investor psychology affecting fund/scheme selection and switching. Sundar (1998) conducted a survey to get an insight into the mutual fund operations of private institutions with special reference to Kothari Pioneer. The survey revealed that agents play a vital role in spreading the Mutual Fund culture; open-end schemes were much preferred then age and income are the two important determinants in the selection of the fund/scheme; brand image and return are the prime considerations while investing in any Mutual Fund. Khorana and Servaes (1999) had experimented that the decision to introduce a new type of fund is affected by a number of variables, including investor demand for the funds attributes. Shanmugham (2000) conducted a survey of 201 individual investors to study the information sourcing by investors, their perceptions of various investment strategy dimensions and the factors motivating share investment decisions, and reports that among the various factors, psychological and sociological factors dominate the economic factors in investment decisions. In his study Are Retail Investors Better off Today. Keli (2005) is of opinion that Past performance and Funds Investment Strategy continued to be the top two drivers in the selection of a new fund manager. Kavitha Ranganathan (2006) conducted a study on Consumer behavior from the marketing world and financial economics has brought together to the surface an exciting area for study and research: Behavioral finance. The realization that this is a serious subject is, however, barely dawning. Analysts seem to treat financial markets as an aggregate of statistical observations, technical and fundamental analysis. A rich view of research waits this sophisticated understanding of how financial markets are also affected by the financial behavior of investors. With the reforms of industrial policy, public sector, financial sector and the many developments in the Indian money market and capital market, mutual fund, which has become an important portal for the small investors, is also influenced by their financial behavior. Hence, this study is an attempt to examine the related aspects of the fund selection behavior of individual investor toward mutual fund, in the city of Mumbai. From the researchers and academicians point of view, such a study will help in developing and expanding knowledge in this field. Lakshmi, Malabika, Murugesan;(2008) conducted the study of the performance of Indian mutual funds with special reference to growth schemes over a period of eight years from April 1998 to March 2006. As per the study performance of the mutual funds schemes were in line with that of market. Though the mutual funds schemes did not provide adequate returns in terms of systematic and unsystematic risk, yet they ensured positive returns due to stock selection skills of fund manager. The market performance had a significant positive influence on all schemes performance. The present Net Present Value of all the schemes is positively and significantly correlated with its past Net Asset Value for all the time lags signifying consistency in successive period returns.
HYPOTHESES
H1: Demographic profile has a significant impact on investment decision of retail investors. H2: Demographic profiles do not have significant impact on investment decisions of retail investors.

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METHODLOGY
The study is empirical in nature. The scope of the study extends to four cities of Northern India namely Jammu, Srinagar, Chandigarh and Ludhiana. The data was collected both from primary as well as secondary sources. The primary data was collected by using a structured questionnaire. The questionnaire was framed on the basis of investment decisions and demographic factors. An analysis was done and changes were made to overcome the errors. The final data was collected by a modified questionnaire with 37 questions. The secondary data was collected from journals, magazines, periodicals, books, published and unpublished research materials etc. A sample size of 1000 was taken out of which 841 filled questionnaire were received. The statistical tools implemented are: Econometric analysisMultiple nominal Logistic regressions.
ANALYSIS AND INTERPRETATION

The demographic profile of the respondent selected for the study is described in Table 1. The questionnaire were randomly distributed among male and female respondents and the researcher received 841 (out of 1000 sample size) responses out of which 571(67.9 %) were male respondents and 270 (32.10%) were female respondents. Growth schemes of the mutual funds have been favored by investors in their investment decisions with 45.3% of respondents investing in growth schemes. When it comes to educational level, investors with post graduate and above qualification have made maximum investment (61.5%). In terms of marital status, married individuals have maximum investment (57.3%) and as per the age group category, 25-34 years have got the highest share in investment (70.6%). Employees in the private sector have got 54.7% share among the mutual fund investors, and among the households, households with monthly income in the category of (20,001-40,000) have made the maximum investment (37.6%) in the mutual funds. OVERALL TEST OF RELATIONSHIP The overall test of relationship is shown in Table 2. The table shows the relationship between the demographic profile and investment decision of retail investors. The presence of a relationship between the dependent and combination of independent variables is based on the statistical significance of the final model chi-square in the below table i.e., (termed model fitting information). In this analysis, the distribution reveals that the probability of the model chi-square (154.180) was 0.000, less than the level of significance of 0.05 (i.e. p<0.05). This explained that demographic profile has a significant impact on investment decision of retail investors. After finding the significant relationship between the dependent and independent variable the researcher used the case processing summary for dependent variable to know the by chance accuracy rate. This rate is useful for validating the model for research in multinomial logistic regression. STRENGTH OF MULTINOMIAL LOGISTIC REGRESSION RELATIONSHIP Once the relationship is established, the next vital thing is to establish the strength of multinomial logistic regression relationship which is shown in Table 3. While, MLR does compute correlation measures to estimate the strength of the relationship (pseudo R square measures, such as Nagelkerke's R), these correlation measures do not really tells an analyst much about the accuracy or errors associated with the model. A more useful measure to assess the utility of a multinomial logistic regression model was the classification accuracy, which compares predicted group membership based on the logistic model to the actual, known group membership, which is the value for the dependent variable. To assess the strength of multinomial logistic regression relationship, however, the evaluation of the usefulness for logistic models was considered. In this case, using Cox & Snell R Square, the Nagelkerke R square value and McFadden R square vale, they provide an indication of the amount of variation in the dependent variable. These are described as pseudo R square. The distribution in the below table reveals that the values are 0.168, 0.183 and .074 respectively, suggesting that between 16.8 percent, 18.3 percent and 7.4 percent of the variability is explained by this set of variables used in the model. EVALUATING USEFULNESS FOR LOGISTIC MODELS The value of by chance accuracy was computed by calculating the proportion of cases for each group based on the number of cases in 'Case Processing Summary', and then squaring and summing the proportion of cases in each group (0.453 + 0.132 + 0.293 + 0.1222 = 0.322) which is shown in Table 4.1. To characterize the model as useful, the study compared the overall percentage accuracy rate produced as 25% more than the proportional by chance accuracy. The proportional by chance accuracy criteria is 40.25% (1.25 x 32.2% = 40.25%). The classification accuracy rate was 48.8% (table classification) shown in Table 4.2, which was greater than the proportional by chance accuracy criteria of 40.25%, suggesting that the model was useful in the study. RELATIONSHIP OF INDEPENDENT AND DEPENDENT VARIABLES Once the above sections are clarified, a further scrutiny of the relationship of independent and dependent variables needs to be addressed. There are two types of tests for individual independent variables. The likelihood ratio test evaluates the overall relationship between an independent variable and dependent variables and the Wald test which evaluates whether or not the independent variable is statistically significant in differentiating between two groups in each of embedded binary logistic comparisons. There should a need to be cautions though that if the independent variable has an overall relationship to the dependent variable, it does not necessarily suggest statistical significance. In fact, it might or might not be statistically significant in differentiating between pairs of groups defined by the dependent variable. Following the argument above and referring to table 5, there is a statistically significant and non significant relationship between the independent variables (demographic factors) and the dependent variables (investment decisions).The relationship between gender and investments decisions has the probability of the chi-square statistic (1.817) is 0.611, greater than the value of significance, this shows that gender have least impact on preferences of retail investor in mutual fund schemes. For the relationship between Age, Educational Qualification, Marital Status, Occupation, Household Monthly Income and investment decisions, the probability of the chi-square statics are (12.609), (32.289), (13.345), (61.246), and (10.049) respectively having less than or equal to the level of significance of 0.05, this shows that there is significant relationship between demographic variables and investment decisions of investors. Relationship between cities and investment decisions of investors have the probability of chi-square static (6.169) is 0.723, higher than significance value which means investment decisions are not impacted across the different cities. PARAMETER ESTIMATES The three equations in the table of Parameter Estimates are labeled by the group they contrast to the reference group i.e., income schemes. The first equation is labeled "growth schemes", the second equation is labeled "balanced schemes and the third equation is labeled tax saving schemes. The coefficients for each logistic regression equation are found in the column labeled B. (The hypothesis that the coefficient is not zero, i.e. changes the odds of the dependent variable event, and is tested with the Wald statistic, instead of the t-test as was done for the individual B coefficients in the multiple regression equation.) The variables that have a statistically significant relationship to distinguishing predictors for growth schemes from predictor for income schemes (reference) in the first logistic regression equation were D3=2(graduate), Second table: In second table The variables that have a statistically significant relationship to distinguishing predictors for balanced schemes from predictor for income schemes (reference) in the second logistic regression equation were D3=2(graduate), D3= 3(PG & Above), D6 (Household Monthly Income), Third table: In third table the variables that have a statistically significant relationship to distinguishing predictors for Tax saving schemes from predictor for income schemes (reference) in the third logistic regression equation were D2(Age),D3=2(graduate),D4=1(Married),D5=1(BusinessPerson),D5=2(Private Sector Employee),D5=3(Govt. Employee),D6(Household Monthly Income). GROWTH SCHEMES PARAMETER ESTIMATES Table 6 shows the Interpretation of the independent variables is aided by the "Exp (B)" column which contains the odds ratio for each independent variable. The relationships can be stated as - having a graduate degree rather than a postgraduate and undergraduate degree decreased the likelihood of growth scheme by about 80% over income scheme and they would choose income scheme rather the growth scheme. In other words, it has been observed that graduates give more preference to income schemes over the growth schemes which imply that graduates are ready to invest in debt schemes. Income schemes are primarily concerned with current income; hence the portfolio is made up of income - producing securities, which could be both debt as well as equity. Since most of the debt schemes pay periodic interest, the portfolio leans towards the fixed income schemes. Historically these schemes produce lower returns than equity schemes. The principal source of their return is the interest earned on the fixed income schemes held in the portfolio. Debt schemes are generally considered to be safer than the equity schemes. This perception is partially true due to the fact that issuers of the bonds must pay interest and principal amount when it is due. It is also partially due to the lower variability in the prices of debts compared to prices of equity.

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The logistic regression equation is developed by the independent variables is aided by the (E) column with table 6 which contains the positive and negative values, the positive values increase the likelihood ratio between the dependent and independent variables and negative values reduces the likelihood ratio between dependent and independent variables. The dependent variable Y (growth schemes) equal to intercept value plus the demographic variables if the value of variables are positive and subtract the value if the value of variables is negative result in logistic regression equation. LOGISTIC REGRESSION EQUATION IN GROWTH SCHEMES {Y=.638+0.07(age) +0.177(household monthly income) +0.091(male) -0.396(undergraduate) -1.608 (graduate) - 0.867(pg &above) + 0.226(Married) +0.885(businessperson) +1.233(private sector employee) +1.387(govt. employee) -0.884 (Retired person) +0.114(Jammu) + 0.098 (Srinagar) -0.307(Chandigarh)} BALANCED SCHEMES PARAMETER ESTIMATES The investment in balanced schemes is mainly a mix of equity and debt. Balanced schemes have the objectives of payment of current income; moderate capital appreciation and preservation of capital. Investors who want to hold a portfolio of combination of securities seek some current income and moderate growth with low level of risk, may invest in balanced schemes. Generally the net asset value (NAV) of balanced schemes moves in narrower range and is not volatile as that of equity schemes. Thus balanced schemes tend to outperform the equity schemes in bearish phase but do less in a bullish market. Interpretation of the independent variables is aided by the "Exp (B)" column which contains the odds ratio for each independent variable. We can state the relationships as follows: Having a graduate degree rather than a postgraduate and undergraduate degree decreased the likelihood of balanced scheme by about 89.7% over income scheme and they would choose income scheme rather the balanced scheme and having post graduation & above degree rather than graduate and undergraduate degree decreased the likelihood of balanced scheme by about 81.4% over income scheme and they would choose income scheme rather the balanced scheme. Post graduate, undergraduate and graduate choose income schemes rather than balanced schemes. The education level group needs regular income for their current requirements and they had least interest to invest in balanced schemes. The aim of income schemes is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. As the household monthly income increases across the four categories the likelihood ratio increases by 46.7% which means that across the income group balanced schemes are more preferred than income schemes. Across the different income group categories balanced schemes were more preferred. The logistic regression equation is developed by the independent variables is aided by the (E) column which contains the positive and negative values, the positive values increase the likelihood ratio between the dependent and independent variables and negative values reduces the likelihood ratio between dependent and independent variables. The dependent variable Y(balanced schemes) equal to intercept value plus the demographic variables if the value of variables are positive and subtract the value if the value of variables is negative result in logistic regression equation. This is shown in Table 7. Logistic regression equation balanced schemes: Y=(-.676-.215)age+(.384household monthly income)+ .374male(gender)+.687(under-graduate)-2.274( graduate)-1.683(Pg& above) + .662(married) + .952(businessperson) +1.518(private sector employee)+1.838(Govt. employee) -.710(Retired person)+0.074(Jammu)-.218(Srinagar)-.184(Chandigarh). TAX SAVING SCHEMES PARAMETER ESTIMATES Interpretation of the independent variables is aided by the "Exp (B)" column which contains the odds ratio for each independent variable, shown in Table 8. The relationships can be stated as: Across the different age group the value of likelihood of Tax saving scheme is decreased by about 36% over income scheme and they would choose income scheme rather the Tax saving scheme. Household Monthly Income also decreases the likelihood ratio by 43.9% which means that across the income group tax saving schemes are less preferred than income schemes. In marital status married people increase the likelihood ratio by 27% that means married people prefer tax saving schemes rather income schemes. The married people are more concerned with tax saving schemes in order to reduce the tax liability. In Occupation category Businessperson, Private sector employee and Govt. employee increase the likelihood ratio by 62%, 46.7% and 63.75 respectively. They people prefer tax saving schemes rather income schemes. These schemes offer tax incentives for investment in specified avenues, e.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme. In tax saving schemes investment is made in equity and equity related instruments with an objective to produce long term capital appreciation. The difference between equity and equity linked saving schemes (ELSS) is that the latter has a 3-year lock-in and tax benefit like other tax saving products viz. public provident fund (PPF), national saving certificate (NSC), infrastructure bonds and insurance. This 3year lock-in is imposed by the Central Board of Direct Taxes (CBDT). These schemes are suitable for equity oriented investors seeking to generate capital appreciation from an equity portfolio as well as tax benefits under the section 88 of the Income Tax Act, 1961. The logistic regression equation is developed by the independent variables is aided by the (E) column which contains the positive and negative values, the positive values increase the likelihood ratio between the dependent and independent variables and negative values reduces the likelihood ratio between dependent and independent variables. The dependent variable Y(tax saving schemes) equal to intercept value plus the demographic variables if the value of variables are positive and subtract the value if the value of variables is negative result in logistic regression equation. Logistic regression equation: Y=18.527-0.447(age) +0.364(household monthly income) +0.047(male) 1.091(undergraduate) -1.104 (graduate)-0.705(pg &above) + 0.821(Married) +19.144(businessperson) +20.157(private sector employee) +20.409(govt. employee) +16.853(Retired person) +0.074(Jammu) -0.236 (Srinagar) 0.502(Chandigarh)
DISCUSSION AND CONCLUSION

Retail investors has emerged as a backbone for the economic development of a nation especially India. In the current scenario, Indian retail investors share is growing at the tremendous speed. Though highly populated the investors in India are sparsely populated located depending upon the prosperity and investment climate of the region across the country. In this backdrop, the present study was undertaken to analyse which demographic factors leave their impact on the retail investment decisions of an investors. Research analysis revealed that Growth schemes of the mutual funds have been favored by investors in their investment decisions, followed by tax saving schemes, balanced schemes and income schemes respectively. When it comes to educational level, investors with graduate, post graduate and above qualification have made maximum investment with respect to professional qualification and undergraduate. In terms of marital status, married individuals have maximum investment and as per the age group category, 25-34 years have got the highest share in investment. Employees in the private sector have got maximum share among the mutual fund investors and among the households, households with monthly income in the category of (20,001-40,000) have made the maximum investment in the mutual funds schemes. Male respondents have made higher investment than female respondents in mutual funds. As per the likelihood ratio test discussed above that investment skill depends on the occupation of the family and it has very large impact on the scheme offered by the mutual fund industry. Household monthly income which is very important aspect for the investment show least importance by the likelihood test and this test valued it on lower number than the other demographic factors. Education, occupation, age and marital status have significant relationship with investment decisions of retail investors in mutual funds schemes. Lastly it is stated that these evidences should be taken into consideration when evaluating the merits of schemes provided by the mutual fund industry. Moreover the mutual fund companies should focus more on investment strategies which will help them to attract and retain more and more valuable retail investors. The companies should come up with schemes which are within the reach of average retail investors.
REFERENCES
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TABLES
TABLE 1: MULTINOMIAL LOGISTIC REGRESSION Case Processing Summary N Marginal Percentage Schemes Growth Schemes 381 45.3% Balanced Schemes 111 13.2% Tax Saving Schemes 246 29.3% Income Schemes 103 12.2% Demographic Variables Male 571 67.9% Gender Female 270 32.1% Age 18-24 years 90 10.7% 25-34 years 594 70.6% 35-45 years 103 12.2% Above 45 years 54 6.4% Educational level Under Graduate 12 1.4% Graduate 208 24.7% PG & above 517 61.5% Professional Qualification 104 12.4% Marital Status Married 482 57.3% Unmarried 359 42.7% Occupation Businessperson 31 3.7% Private Sector employee 460 54.7% Govt. employee 293 34.8% Retired Person 51 6.1% Student 6 .7% Household Monthly Income Up to 20,000 105 12.5% 20,001-40,000 316 37.6% 40,001-60,000 189 22.5% Above 60,000 231 27.5% City Jammu 207 24.6% Srinagar Chandigarh Ludhiana Valid Missing Total Subpopulation 197 224 213 841 0 841 375 23.4% 26.6% 25.3% 100.0%
TABLE 2: OVERALL TEST OF RELATIONSHIP Model Fitting Information Model Model Fitting Criteria Likelihood Ratio Tests -2 Log Likelihood Chi-Square df Sig. Intercept Only 1556.921 Final 1402.741 154.180 42 .000 TABLE 3: STRENGTH OF MULTINOMIAL LOGISTIC REGRESSION RELATIONSHIP Pseudo R-Square Cox and Snell .168 Nagelkerke .183 McFadden .074 TABLE 4.1: EVALUATING USEFULNESS FOR LOGISTIC MODELS Case Processing Summary Scheme N Growth Schemes 381 Balanced Schemes 111 Tax Saving Schemes 246 Income Schemes 103 Valid 841 Missing 0 Total 841 Subpopulation 1 Marginal Percentage 45.3% 13.2% 29.3% 12.2% 100.0%

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TABLE 4.2: EVALUATING USEFULNESS FOR LOGISTIC MODELS Classification Observed Growth Schemes Balanced Schemes Tax Saving Schemes Income Schemes Overall Percentage Predicted Growth Schemes 322 84 186 62 77.8%
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Balanced Schemes 4 3 3 1 1.3%
Tax Saving Schemes 42 20 56 11 15.3%
Income Schemes 13 4 1 29 5.6%
Percent Correct 84.5% 2.7% 22.8% 28.2% 48.8%
TABLE 5: RELATIONSHIP OF INDEPENDENT AND DEPENDENT VARIABLES Likelihood Ratio Tests Effect Model Fitting Criteria Likelihood Ratio Tests -2 Log Likelihood of Reduced Model Chi-Square df Sig. Intercept 1402.741a .000 0 . Age 1415.349 12.609 3 .006 Household Monthly Income 1412.790 10.049 3 .018 Gender 1404.558 1.817 3 .611 Education Level 1435.030 32.289 9 .000 Marital Status 1416.086 13.345 3 .004 Occupation 1463.987 61.246 12 .000 Cities 1408.910 6.169 9 .723 The chi-square statistic is the difference in -2 log-likelihoods between the final model and a reduced model. The reduced model is formed by omitting an effect from the final model. The null hypothesis is that all parameters of that effect are 0. a. This reduced model is equivalent to the final model because omitting the effect does not increase the degrees of freedom.
TABLE 6: GROWTH SCHEMES PARAMETER ESTIMATES Parameter Estimates Growth Schemes B .638 .070 .177 .091 0b -.396 -1.608 -.867 0b .226 0b .885 1.233 1.387 -.884 0b .114 .098 -.307 0b Std. Error 1.233 .205 .133 .275 . 1.377 .553 .525 . .291 . 1.154 1.037 1.059 1.084 . .376 .369 .351 . Wald .268 .117 1.788 .111 . .083 8.474 2.725 . .603 . .589 1.412 1.716 .664 . .093 .070 .766 . df 1 1 1 1 0 1 1 1 0 1 0 1 1 1 1 0 1 1 1 0 Sig. .605 .732 .181 .740 . .774 .004 .099 . .438 . .443 .235 .190 .415 . .761 .791 .382 . Exp(B) 95% Confidence Interval for Exp(B) Lower Bound Upper Bound .718 .921 .639 . .045 .068 .150 . .709 . .252 .449 .502 .049 . .537 .535 .370 . 1.603 1.549 1.879 . 10.009 .591 1.176 . 2.217 . 23.260 26.183 31.914 3.462 . 2.341 2.271 1.464 .
Intercept Age Household Monthly Income Gender- Male Female Educational Levelunder Graduate Graduate PG & Above Professional Qualification Marital Status- Married Unmarried OccupationBusinessperson Private Sector employee Govt. Employee Retired Person Student Cities- Jammu Srinagar Chandigarh Ludhiana
1.073 1.194 1.096 . .673 .200 .420 . 1.253 . 2.423 3.430 4.004 .413 . 1.121 1.103 .736 .

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TABLE 7: BALANCED SCHEMES PARAMETER ESTIMATES Parameter Estimates Balanced Schemes Intercept Age Household Monthly Income Gender Male Female Educational Levelunder Graduate Graduate PG & Above Professional Qualification Marital Status- Married Unmarried OccupationBusinessperson Private Sector employee Govt. Employee Retired Person Student Cities- Jammu Srinagar Chandigarh Ludhiana B -.676 -.215 .384 .374 0b .687 -2.274 -1.683 0b .662 0b .952 1.518 1.838 -.710 0b .074 -.218 -.184 0b Std. Error 1.702 .255 .161 .340 . 1.430 .609 .559 . .350 . 1.674 1.550 1.569 1.634 . .451 .453 .417 . Wald .158 .713 5.679 1.214 . .231 13.936 9.080 . 3.586 . .324 .958 1.373 .189 . .027 .231 .195 . df 1 1 1 1 0 1 1 1 0 1 0 1 1 1 1 0 1 1 1 0 Sig. .691 .398 .017 .271 . .631 .000 .003 . .058 . .569 .328 .241 .664 . .870 .631 .659 . Exp(B)
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95% Confidence Interval for Exp(B) Lower Bound Upper Bound .489 1.070 .747 . .121 .031 .062 . .977 . .097 .219 .290 .020 . .445 .331 .367 . 1.329 2.012 2.831 . 32.790 .340 .555 . 3.847 . 68.999 95.261 136.019 12.095 . 2.609 1.953 1.884 .
.806 1.467 1.454 . 1.988 .103 .186 . 1.939 . 2.592 4.562 6.286 .492 . 1.077 .805 .832 .
TABLE 8: TAX SAVING SCHEMES PARAMETER ESTIMATES

Parameter Estimates Tax Saving Schemes Intercept Age Household Monthly Income Gender Male Female Educational Levelunder Graduate Graduate PG & Above Professional Qualification Marital Status- Married Unmarried OccupationBusinessperson Private Sector employee Govt. Employee Retired Person Student Cities- Jammu Srinagar Chandigarh Ludhiana B 18.527 -.447 .364 .047 0b 1.091 -1.104 -.705 0b .821 0b 19.144 20.157 20.409 16.853 0b .074 -.236 -.502 0b Std. Error .984 .222 .141 .290 . 1.454 .583 .553 . .307 . .888 .657 .688 .000 . .393 .391 .368 . Wald 354.859 4.047 6.674 .027 . .563 3.590 1.624 . 7.131 . 464.703 940.852 880.913 . . .036 .364 1.864 . df 1 1 1 1 0 1 1 1 0 1 0 1 1 1 1 0 1 1 1 0 Sig. .000 .044 .010 .870 . .453 .058 .203 . .008 . .000 .000 .000 . . .850 .546 .172 . Exp(B) 95% Confidence Interval for Exp(B) Lower Bound Upper Bound .414 1.092 .594 . .172 .106 .167 . 1.244 . 36172314.54 1.566E8 1.898E8 20844976.594 . .498 .367 .294 . .989 1.896 1.851 . 51.428 1.039 1.461 . 4.151 . 1.176E9 2.058E9 2.812E9 20844976.594 . 2.328 1.700 1.245 .
.640 1.439 1.049 . 2.977 .332 .494 . 2.272 . 2.062E8 5.676E8 7.307E8 20844976.594 . 1.077 .790 .605 .
a. The reference category is: 4. b. This parameter is set to zero because it is redundant.

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AN EVALUATION OF SERVICE QUALITY IN COMMERCIAL BANKS

DR. V. N. JOTHI LECTURER DEPARTMENT OF COMMERCE KANCHI SHRI KRISHNA COLLEGE OF ARTS AND SCIENCE KILAMBI
ABSTRACT
Financial sector an economy is a multi-faceted term. It refers to the whole gamut of legal and institutional arrangements, financial intermediaries, markets and instruments with both domestic and external dimensions. Finance is the life blood of a modern economy. Banking system, as an integral part of the financial sector, is the linchpin of any development strategy. It promotes savings by providing a wide variety of financial assets to the general public and reforms are aimed at induction of best international practices and technological changes for competing globally. The objective of this study is to know the factors which lead to higher level satisfaction with regard to banking service facility. This study is based on data collected from sample of 100 customers having a deposit. It is observed from this study that a majority of the customers feel that the service quality of commercial bank is only at the average level. It is concluded that there is no significant difference noticed with respect to some of the demographic variables, thus it is assumed that the expectation of the consumers are uniform for all the categories of the consumers.
KEYWORDS
Service quality, Banking, Commercial Banks.
AN EVALUATION OF SERVICE QUALITY IN COMMERCIAL BANKS

he Indian financial sector has undergone a significant structural transformation since the initiation of the financial liberalization in 1990s. It brought significant changes in financial sector. The business of a commercial bank is primary to hold deposits and make loans and investments with the object of securing profits. Commercial banks have come to play a significant role in the development of countries In a developing country like India, Banking facilities are highly inadequate. The vast number of people living in villages and towns do not have any banking facilities and consequently all their savings are wasted. The opening of banks in these areas or extension of bank facilities will help mobilize savings in these areas.
TOTAL CREDIT AND DEPOSITS

Table shows the analytical results of credit and deposits by Scheduled Commercial Banks (SCBs). Demand deposits of SCBs have increased from 1,17,423 crore in 1999 to Rs. 5,23,085 crore in 2009. However, time deposits of banks have increased from Rs. 6,04,780 crore to Rs. 33,11,025 crore in same period. The growth of time deposits in absolute term has been more than demand deposit. Total credit of SCBs has increased from Rs. 3,68,837 core in 1999 to Rs. 24,17,006 crore in 2008. Deposit per capital has increased from Rs. 7,264 crore in 1999 to Rs. 33,225 crore, while credit deposits ratio has increased from 51.1 to 72.39 during the same period. The growth of credit and deposits has significant over the study period. TABLE 1: TRADE CREDIT AND TIME DEPOSITS OF SCBs March 1999 March 2006 March 2007 March 2008
Indicators
March 2009
Total deposits 7,22,203 21,09,049 26,11,933 31,96,936 38,34,110 a) Demand deposits 1,17,423 3,64,640 4,29,731 5,24,310 5,23,085 b) Time deposits 6,04,780 17,44,409 21,82,203 26,72,630 33,11,025 Total credit 3,68,837 15,07,077 19,47,100 24,17,006 Credit / deposit ratio 51.1 70.1 73.94 73.88 72.39 Deposit per capita 7264 19,069 23,279 28,093 33,225 Source: Money and Banking Centre for Monitoring Indian Economy. The move from old to new business environment has created the demands on Indian bank like enhanced work flow, full customer access to banking transactions through electronic mode etc. In the emerging scenario of fierce competition backed twin force of deregulation and technology, the degree of competition in the Indian financial sector has increased to unprecedented level. Hence, the operational efficiency of banks has achieved immense significance for their survival. Now-a-days the banks are working hard to attract customer and retain their market share by providing them with various innovative service. Todays customers are more dynamics in their thinking their taste, needs and preferences keeping peace with changing trends and technology changes. Providing additional service as per the expectations of the consumers is the main ingredient, which in turn lead to higher level of customer satisfaction. Customer satisfaction is an important factor for capturing the additional market and also for retaining the existing customers. With this backdrop the present study analyse the level of satisfaction of the service facility offered by banks on which factor influence the customer satisfaction. The objective of the study is to examine the service quality and to identify the determinants contributing to service quality of commercial bank in Kanchipuram.
METHODOLOGY
The sample for this research consists of heterogeneous category of commercial bank users living in Kanchipuram. Initially, the survey instrument was distributed among 160 peoples at different locations. Overall 112 respondents responded the request and 12 instruments were discarded due to missing information. Finally the research was settled with 100 completed responses. The survey questionnaire was developed to explore the attitudes and motivation of commercial bank users. It was developed to explore the relationship between demographic variable, social, psychological variables and usage behaviours. This paper analyzes the responses collected from the respondents. It is based on the objectives and hypotheses that are set earlier to examine the consumer attitudes in using the commercial banks facility offered. To find out how is the penetration of new technology among Indian consumers and also, do the demographic factors influence the adoption new technology. The data collected were initially coded and transcribed in the data format. The data analysis was carried out by using SPSS (Statistical Package for Social Sciences), Version 16. The respondents perception towards the service user is going to be analyzed by using frequency analysis, chi-square test, t-test and ANOVA. Cross tabulation was mainly used to analyse the role of personal information to make inferences and draw conclusion to prove or disapprove the hypothesis and to analyse the result. The analysis is given in two sections, first section deals about the demographic profile of the respondents. The second section is devoted to capture the consumer attitudes towards the service quality and usage of bank.

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Gender Age Group > 21 21 - 30 31 - 40 41 - 50 TABLE 2: PROFILE OF THE RESPONDENTS Male 63 % Female Income % Qualification % > 100,000 62 Higher Secondary 29 1,00001 - 200,000 23 Bachelor Degree 21 2,00,001 - 3,00,000 11 Master Degree 37 < 3,00,000 4 Others 13 37 % Occupation Service employed Business Professional Self employed Others
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% 60 22 8 10
% 40 13 19 10 18
Source: Primary data From the above table 2 it is clearly understood that service users consists of 63% (63) male users and 37% (37) female users. It gives some indication that the male users are more than female users with respect to bank service usage. With reference to age it is identified that 60% (60) user are below 21 age group followed by 22% (22) of users comes in the age group of 21-30. Only 8% (8) users are in the age category of 41-50. In the present scenario, the younger people are techno savvy and they easily adapt to the new technology, the distribution of respondents with reference to age confirms about this phenomenon. When the data is compare on the basis of income level it reveals that 62% (62) user are getting income below 1,00,000 p.a 23% (23) of users are getting income from Rs.1,00,000 to 2,00,000 p.a 11% (11) of users are getting income between Rs. 2,00,000 3,00,000 p.a. only a few users are getting income above Rs. 3,00,000 p.a. The above statement clearly explain most of the users getting income in below Rs. 1,00,000. With reference to educational qualification it is identified that out of the total service users 29% (29) of the service users are with higher secondary qualification, 21% (21) of the users are Bachelor Degree 37% (37) of the service users are Master degree 13% (13) of the service user are other qualification; hence it is clear that most of service users are educated up to master degree. In the next level the respondents are distribution based on their occupational category it is identified that out of the total respondents; 40% (40) of them are service personnel working either in government or private organizations. 13% (13) at the respondents are carrying out their business 19% (19) are professionals and 10% (10) are self employed professional. Only 18% (18) are working some other jobs. So it is clearly shown that majority of the respondents are service personnel.
OVERALL USAGE OF BANK SERVICE

Now a day the commercial banks provide many services facility. But in the present scenario it is considered as full pledged bank with almost all service facilities. The following table provides the usage pattern of the respondents for various services. TABLE 3: CROSS TABULATION OF USAGE PURPOSE ON THE BASIS OF GENDER Total Male (No. of usage) Female (No. of usage) Cash withdrawal 99 62 37 Overdraft 83 50 33 Deposits 38 20 18 Transfer of funds 19 7 12 Bills payment 26 14 12 Other usage 27 16 11 Chi-square:5.178 Significance:0.3946 It is concluded that most of user use bank only for withdrawal purpose followed by overdraft and only minority customer are using for deposits and transfer of funds.
USAGE OF BANK BASED ON GENDER

In addition to identifying the reason for using bank, the data was cross tabulated to identify there is any significant difference exists between the male and female consumers with respect to usage of bank and its purpose. For that purpose the following null hypothesis has been proposed.
HYPOTHESIS
There is no significant difference exist between the purpose of bank usage and Gender. To validate the null hypothesis, by using the cross tabulated results chi-square analysis was carried out. It produced the following results. Chi-square value of 5.178 with a significance value of 0.3946. It is clearly indicated the acceptance of null hypothesis, and it is concluded that there is no significant difference between Male and Female users with regard to usage pattern of bank.
SERVICE QUALITY OF BANK SERVICE

Service Quality of any service provision can be assessed with many qualities. In the present study the service quality of bank was assessed by twelve attributes, namely, investment suitability, trust credibility & future security, reliable and promptness, best customer service, consultancy service, best interest rates, well furnished infrastructure, insurance linked bank deposits, quick sanction of loans, Automated Teller Machine (ATM), mobile banking, and E - banking. These service qualities were measure by using five point Likert scale. The weighted mean score on these attributes are given in Table 4. From this table, the consumers needs may be properly assessed so that the service provision can be made in appropriate manner according to the requirements of the customers. The consumer preference and priorities can easily be assessed with the following table. TABLE 4: MEAN SCORE OF SERVICE QUALITY ATTRIBUTES OF BANK S. No Service Quality Attribute Weighted Average Score 1. Investment suitability 4.53 2. Trust credibility & future security 4.47 3. Reliable and promptness 4.30 4. Best customer service 4.09 5. Consultancy service 4.34 6. Best interest rates 3.74 7. Well furnished infrastructure 4.14 8. Insurance linked bank deposits 4.31 9. Quick sanction of loans 3.78 10. Automated Teller Machine (ATM) 3.74 11. Mobile banking 3.66 12. E banking 4.31

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From the above table it is clearly understood that the consumer perception of service quality of bank facility and equipment should be more suitable for investment and it should be ergonomically designed it is evidenced with the highest weighted average score is 4.53 while comparing to other service quality attributes. The respondents said the additional interest rate should be provided for deposits with a moderate level with a weighted average score of 3.74. The respondents expressed their displeasure with regard to mobile banking is expressed with the least mean score of 3.66.
SERVICE QUALITY COMPARISON WITH GENDER

In addition to identifying importance of service quality attributes in using bank, the data was cross tabulated to identify is there any significant difference exists between the male and female consumers with respect to individual service quality item. For that purpose the following null hypothesis has been proposed.
HYPOTHESIS
There is no significant difference exists between the service quality attributes (individually) and gender. To validate that null hypothesis, t-test was carried and the results are given in Table 5. The table 5 shows that the service quality of bank based on gender most of the male respondents preference goes to consultancy service with the highest weighted average score of 4.51 followed by quick sanction of loan facilities with moderate weighted average score of 3.83. The male respondents demand best interest rate for deposits which is not at satisfactory level with a minimum weighted average score of 3.60. Most of the female respondents felt investment suitability of bank are very good the highest weighted average score is 4.68 while comparing to other service quality. The female users felt that statement and document should be reliable and promptness with a moderate level with the weighted average score of 4.19. The female respondents said quick sanction of loans, ATM and mobile banking with the least weighted average score of 3.70. t-test results confirms that all the service qualities does not differ significantly between male and female consumers. Only consultancy service attribute differs significantly between male and female consumers.
SERVICE QUALITY COMPARE WITH AGE GROUP

In the next level age was identified as the next important demographic variable which influence the service quality attribute. Hence, the data were grouped on the basis of different age category the Mean value of different age groups is given in Table 5. The table 5 provides service quality comparison for the different attributes with reference to different age categories. Majority of the below 21 age group respondents said bank is suitable for investment and it is very important attribute with a weighted average score of 4.52. In same category ensuring the well furnished infrastructure is considered to be the next important attribute with a moderate level weighted average score of 4.12. The ATM needs and mobile banking are shown as a minimum weighted average score of 3.72. The 21-30 age group said investment suitability is enough level weighted average score is 4.59. The 21-30 respondents showed their preference at moderate level to best customer service and insurance linked bank deposit facility with the weighted average score of 4.14. In this category of age fulfilling the consumers needs in ATM, some attention from the banks because it shows minimum weighted average score of 3.73. The 31-40 age group of respondents said insurance linked bank deposit facility is provided at sufficient level weighted average score is 4.88. 31-40 age groups said best customer service at moderate level weighted average score is 3.75. The 31-40 of age group said mobile banking is not sufficient level weighted average score is 3.13. The 41-50 age group of the respondents is said trust for credibility & future security are very good weighted average score is 4.50. The 41-50 of age group respondent said well furnished infrastructure service is moderate level weighted score is 3.90 above age group of the respondents said mobile banking is not sufficient level weighted average score is 3.30.
SERVICE QUALITY COMPARE WITH OCCUPATION

In the ordinary human life various categories of people use the bank. So, in this study is concentrate customers on the basic of occupations. The table 5 shows that service quality of bank comparison with different occupational level. In the service personnel category employee said Investment suitability and trust for credibility & future security is an essential element with a very good weighted average score is 4.48. At the moderate level they said well furnished and infrastructure attribute with the weighted average score of 3.93 some employee said mobile banking is not sufficient which is evidenced by low weighted average score of 3.43. Majority of the business personnel said ensuring well furnished infrastructure facility is good with a weighted average score of 4.31. Facility and equipment should be more Investment suitability with the moderate level of weighted average score 3.92. Some business employed said best interest is not provided for deposits with the weighted score of 3.31. Most of the professional employees said banks are suitable for investment, very good weighted average score is 4.84. They are expecting best interest rate for deposits is an essential element in enhancing the service facility with a moderate level weighted average score of 4.26. Bank is not satisfying the customers ATM need weighted average score is 3.74. Most of the self employees said suitable centre for investment is fine weighted average score is 4.70. Self employed user said bank provided consultancy service at moderate level. Self employed person said our ATM needs and requirement are not fulfill weighted average score is 3.40. Majority of other working people said banks are well equipped to attract suitable investment and its weighted average score is 4.67. Banks are provide best customer service and its weighted average score is 4.11 and other working people said mobile banking service is not sufficient weighted average score is 3.74. ANOVA results in the form F-value and significant values it is concluded that none of service quality attributes differ significantly with respect to different occupational levels.
CONCLUSION
It is evident from above discussion that a majority of the customers feel that the service quality of bank is only the average level. The customers are not fully aware of the service facilities offer by banks. Hence, the banks should take necessary steps to create awareness of the usage by means of proper education. On the basis of the observation from the responses of the respondents it is concluded that the future of bank service quality may improve in the coming years. This will definitely help in the transformation of banking sector in a positive manner. On the basis of finding, the paper suggests that there is no significant difference noticed with respect to some of the demographic variables, thus it is assumed that the expectation of the customers are uniform for all the categories of the consumers, hence, while formulating the common banking strategy to different categories of consumers may be fruitful.
BIBLIOGRAPHY
Parasuraman A., Zeithamal, V & Berry L.L. (1985). A conceptual model of service quality and its implications for Future Research, Journal of Marketing 49, fall, 41 50. Parasurama A., Zeithamal, V.A. & Berry L.L. (1988). A service quality A multiple item scale for measuring consumer perception of Service Quality. Journal of Retail Retailing, Spring 64, 12 40. Jannadi, O.A., & Al-Saggaf H.L. (2000), measurement of Quality in Saudi Arabian Service Industry, International Journal of Quality & Reliability Management, 19(9), 949 965. Brown, S.W. Swartz., T.A. (1989) A gap analysis of Professional Service Quality, Journal of Marketing 53 (1) 92 98. Reserve Bank of India published in Feb 2008 article of Banking Finance vol.5 No.2 Issn 0972.736.

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Koeva. Petya, 2003, The Performance of India Banks during Financial Liberalization. IMF Working Paper No.03/150. Miniappan G.P: 2002, The NPA Overhang Magnitude solutions, legal reforms, Address at CII Banking Summit 2002, Mumbai, April 2002. Ministry of Finance (993b), Public Sector Commercial Banks and Financial Sector Reforms: Rebuilding for a Better future, New Delhi, Government of India. Ministry of Finance (1991). Economics Reforms two years after and the task Ahead, New Delhi, Government of India. Rakesh Mohan, Financial Sector Reforms in India, Chartered Accountant, Feb 2005. Reddy Y.V., (2002a): Monetary and Financial Sector Reforms in India, A Parishioners Perspective, In RBI Bulletin, May, Pp 337-356. Shirai, Sayuri (2002b). Road from state to market Assessing the Gradual Approach to Banking sector Reforms in India, Asian Development Bank Institute Research Paper, No. 32, pp 1- 73. Uppal R.K., and Rimpi Kaur, Banking Sector Reforms; Rationale, Efficiency and Agenda for Third Reform, Indian Journal of Marketing, Vol. XXVII, No.6, June, 2007. Sudhir Sharmaand Akhash, Foreign and Domestic Banks in India: An Analysis, Southern Economists, Vol. 46, No. 5, July 1, 2007. TABLE 5: MEAN SCORE OF SERVICE QUALITY ATTRIBUTES BASED ON GENDER, AGE, AND OCCUPATION 1 2 3 4 5 6 7 8 9 10 11 Male 4.44 4.46 4.37 4.10 4.51 3.60 4.14 4.32 3.83 3.76 3.63 Female 4.68 4.49 4.19 4.08 4.05 3.97 4.14 4.30 3.70 3.70 3.70 T (1.081) (0.196) 1.101 0.081 2.401 (1.803) 0.038 0.111 0.513 0.296 (0.282) Sig. 0.075 0.845 0.274 0.936 0.018 0.074 0.969 0.912 0.609 0.768 0.779 >21 4.52 4.40 4.33 4.13 4.28 3.77 4.12 4.33 3.75 3.72 3.72 21-30 4.59 4.55 4.11 4.14 4.36 3.86 4.23 4.14 3.91 3.73 3.86 31-40 4.75 4.75 3.63 3.75 4.50 3.63 4.38 4.88 3.63 3.38 3.13 41-50 4.30 4.50 4.40 4.00 4.50 3.40 3.90 4.10 3.80 4.20 3.30 F 0.851 0.847 2.373 0.540 0.248 0.538 0.429 1.647 0.151 1.170 1.175 Sig. 0.469 0.471 0.075 0.656 0.862 0.657 0.733 0.184 0.929 0.325 0.323 Service Personal 4.48 4.48 4.28 4.18 4.20 3.55 3.93 4.28 3.55 3.73 3.43 Business 3.92 4.23 4.23 3.77 4.00 3.31 4.31 3.69 4.23 3.38 3.77 Professional 4.84 4.68 4.16 4.37 4.84 4.26 4.16 4.74 3.84 3.74 3.79 Self- employment 4.70 4.20 4.30 3.50 4.00 3.90 4.30 4.510 3.80 3.40 3.70 Others 4.67 4.56 4.56 4.11 4.56 3.83 4.39 4.28 3.89 4.22 3.74 F 5.564 1.531 0.682 2.501 2.784 2.510 0.964 3.150 0.951 1.971 0.769 Sig 0.000 0.199 0.606 0.048 0.310 0.470 0.430 0.017 0.438 0.105 0.548
12 4.16 4.57 (2.378) 0.019 4.33 4.36 4.40 4.31 0.776 0.510 4.35 4.15 4.37 4.10 4.39 0.337 0.852
1. Investment suitability, 2. Trust credibility & future security, 3. Reliable and promptness, 4. Best customer service, 5. Consultancy service, 6. Best interest rates, 7. Well furnished infrastructure, 8. Insurance linked bank deposits, 9. Quick sanction of loans, 10. Automated Teller Machine (ATM), 11. Mobile banking, and 12 E - banking.

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APPRAISAL OF QUALITY OF SERVICES TO EXPRTERS IN PUBLIC SECTOR BANKS

SAHILA CHAUDHRY STUDENT SCHOOL OF MANAGEMENT ITM UNIVERSITY GURGAON
ABSTRACT
In banking, the quality of customer service holds primal significance, particularly in the context of sustained business growth. Unlike other industries engaged in the production of tangible goods, banks are unique in the sense that they are producing and delivering the service at the delivery points, i.e. at branches. Despite what has been done in the past in this regard, hiatus between customer expectations and customer service continues to persist. Service, like any product, is subject to further improvements and quality of service should evolve contemporaneously with the rising expectations of the customers. In the present paper, an attempt is made to appraise the quality of services to exporters in public sector banks. To achieve the objective of the study, a sample of 100 customers (exporters) is selected to obtain the responses from them about the quality of the services provided by their banks to them. The respondents are selected purposively from Panipat and Faridabad in Haryana and Ludhiana in Punjab. It is found that majority of the respondents deal with the private and foreign banks and compared their services far better/better than those of public sector banks. According to them, professionalism, disciplined management and technology used are the main factors contributing to the better services in PSIBs/FBs. Simplification of rules and procedures, personalized service/doorstep service, making working days/hours more flexible are the main suggestions, in order of importance, to improve the customer services to the exporters. No doubt, automation and technology are contributing to speed, accuracy and convenience, it may not be possible or desirable to do away with human contact all together. The human element cannot be lost sight of, therefore, pertinent for the banks to tone up the interpersonal skills in their staff, more particularly, the front-line staff, who could meaningfully contribute to the basic satisfaction of the customer.
KEYWORDS
Delivery points, Expectations, Professionalism, Technology, Personalized/doorstep service, Interpersonal skills.
APPRAISAL OF QUALITY OF SERVICES TO EXPRTERS IN PUBLIC SECTOR BANKS

n banking, the quality of customer service holds primal significance, particularly in the context of sustained business growth. Unlike other industries engaged in the production of tangible goods, banks are unique in the sense that they are producing and delivering the service at the delivery points, i.e. at branches. This has an overwhelming impact on the customer psyche and makes them super-sensitive towards the quality of service. The relationship between a bank and its customer is not a one-time, but a relatively permanent and enduring one, which required to be nurtured with good quality of service. In such a situation, any bank not having a mind towards bettering the quality of customer service is almost certain to loose its business. As the post-reform era is becoming competitive day by day, the banks have started realizing that business goes to those who seek clients, service them satisfactorily and strive hard to retain them.
TRENDS: WORLD OVER

Banking has been at the core of the country's economy for more than one and half centuries. With globalization, banking sector has become more competitive. As a result, there is no more a seller's market. The prevailing trends of buyer's market require the players to come for the customers rather than taking them for granted. When the competition has resulted in thinning of margins, enhancement of profits can be possible only through multiplying the volume. The volumes may be increased only if the banks are able to attract, service and retain the customers. The quantum of customer assets in banks' balance sheets is declining. The large number of customers is shying away from banks; therefore, there is an urgent need to bring the customers back to the banking fold. Advancement of IT has provided for major supports to financial systems. Communication technologies have facilitating gathering and transferring of information across the globe. The awareness of the customers about the market place is also increasing. These trends compel to believe that the banks will have to concentrate on customer service not only for expansion and maximization of profits but even for survival.
THE INDIAN CONTEXT

With delayed entry in globalization process compared to peers, the Indian banking is at the crossroads. It has to service the age-old traditional customer and also to develop products to meet emerging demands of present, prospects and new customers. During post-nationalization period, class banking was converted into mass banking. With the new thrust on profit-maximization, the shift is in favour of class banking. Addressing the needs from sophisticated export finance clientele to IRDP customer, banks undertake a wide range of activities. Environment in which banks operate are again divergent. In metro-centers, every activity is technology driven. On the other side, there are remote branches situated in hilly areas, where day long electric supply is also not assured. Customer service requirements at these centers are also totally different. The awareness level of customers at different centers is also varied. One set of customers in rural areas feels that the bank is obliging them by giving service, while the other group in metros considers such service at the lowest possible cost as, more or less, a fundamental right. Customers in rural areas are more interested in getting the service they want and are unaware about the profits the bank makes. Alternatively, urban customers not only insist on best service at the lowest cost, but also, as prospective shareholders, like the banks to show excellent profit performance. On the advent of disinvestment programs of PSBs, the shareholder's pressure on banks is to excel in terms of profit as well as in customer service. It must be recognized that the banks in India are certainly realizing the significance of customer service not only for business expansion but also for their survival. The entry of FBs with their advanced technology, leaner organizational set ups and absence of legacies like NPAs have increased the importance of customer service. Similarly, the recent development of credit card market and banking through ATMs, internet, mobile, etc. will have a telling effect on customer service issues. In the past, bankers in India hardly gave any thought on the aspect that the customer is the boss or there is only one champion and that's the customer. Rather their main concerns were profitability and safety of assets. However, the scenario changed gradually and the banks realized that the expectations of the customers are growing with the increase in competition. Banks can no longer ignore the needs and demands of their customers. After all, a customer is the lifeblood of a banker's business. While defining the purpose, for which business exists, Peter Drucker, the best-known management thinker, said, "With respect to the definition of the business purpose and business mission, there is only one such focus, one starting point, and it is the customer. The customer defines the business. The companys name, statutes or articles of incorporation do not define a business. It is defined by the wants, which the customer satisfies when he buys a product or service. To satisfy customer is the mission and purpose of business". The main objective of the banker, therefore, is to create, cultivate and retain the customer. If the bank were able to fulfill this objective, the residual results like profitability and productivity would automatically follow. It is widely recognized that if the customer is dissatisfied, the organization has no business to exist. Further, studies have revealed that it is cheaper to retain the existing customer than seeking a new one. It is also true that it is very challenging to retain the existing customer than to secure a new one. In the U.S., it was noticed

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that for every dollar of lost business, it took 10 dollars of new business to compensate the loss. One study of U.S. organizations conducted by "The Service Edge" revealed that for 5 percent improvement in customer retention, the profit increased by 32 percent in automotive service, 85 percent in advertising agency and 138 percent in auto/home insurance. The data may give an indicative trend for the Indian banking industry as well. In an environment where the customer has come to the center-stage, listening to the customer for redressal of his grievance is an organizational necessity and imperative. This is why American corporate has come to the conclusion that a good way to improve an organization is to hire an Ombudsman to listen the complaints of the customers. It is in this background that the initiative taken by the RBI to introduce the Banking Ombudsman Scheme in 1995.
The subject of customer service in PSBs, being sensitive in its nature, has been considerable focus and debate, especially in the post-nationalization era. The aftermath of bank nationalization saw tremendous quantitative explosion and thoroughly altered the input-output relationship and a result of which the customer service in banks reached probable its lowest level by mid-1970s and early 1980s. The organized effort to tackle the issue and initiate corrective measures took the form of Talwar Committee, which submitted its report in 1977. The Committee went into various aspects of customer service in banks and came up with 176 recommendations, majority of which were accepted and implemented in right earnest under the close monitoring of the Finance Ministry and RBI. Given the dynamic context and rising customer expectations, however the level of public satisfaction with bank services again suffered a downturn, leading to the constitution of yet another Committee in 1990. This Committee, more popularly known as Goiporia Committee, carried out extensive studies and interviews and came up with 97 recommendations. These recommendations too found ready acceptance and the banks have committed themselves to their implementation. There can be no denying the fact that both these committees have contributed significantly to the focusing of attention on various aspects of customer service, but failed to bring about perceptible improvement in service quality mainly due to the facts that (i) the recommendations were framed without considering the inadequacies of infrastructure (both internal and external) and system support, and (ii) no punitive measures were suggested for not implementing these recommendations. Narasimham (1991), which went into the whole gamut of the Indian banking sector, had also emphasized the need to improve service to the customers. Simultaneously, pressures are building up on the banks in the matter of prudential norms, transparency etc. besides having to work efficiently. Other important developments in respect of customer care include the Customer Protection Act, which, inter-alia, covers the bank services and the establishment of Banking Ombudsman Scheme 1995. Madhukar (1997) examined the various initiatives and developments that have had an impact on customer service in banks and concluded that staff skills and attitudes are yet to attain levels, which the public in general perceives to be satisfactory. One of the challenges before the PSBs is one of transforming their work culture so as to make banking service a delightful experience. What needs to be achieved depends largely on the desire and conviction on the part of the bank staff at all levels. If the staff employed by the FBs and new PSIBs can set high standards of service and customer orientation, there is no reason why those in the PSBs cannot do it, especially when the infrastructural facilities are adequately provided and work environment made congenial. Chakrabarty (1997) stated that the liberalization of banking sector from the shackles of regulations has no doubt exposed its inherent weaknesses, but opened up new vistas of growth and opportunities also. At the same time, the Indian banks never before faced the threats and challenges of competition so acutely. To what extent, the Indian banks will survive the ordeal of deregulation and remain on the track of growth will critically depend upon how soon they relearn the forgotten basics of customer orientation and bring about an improvement in the service standards, which can be matched by only the global standards. Gadkari (1997) examined the critical success factors and stressed that excellence in customer service and high level of customer satisfaction will remain elusive goals even with the induction of the state-of-the-art technology and competitive pricing of products if the employees at the grass roots level are not committed to these goals. The challenges lie in mobilizing the commitment by branch and divisional managers, in developing a vision and consensus for customer oriented culture and in providing the necessary tools and support as branch and divisional managers implement and lead the changes. Gauri Shankar (2004) studied the various aspects of customer service in banks and concluded that customer focusing is not to be viewed as just a business strategy but should become corporate mission. Building value for customers should be seen as equal to building shareholder value. The challenge for banks will be in the area of people (changing beliefs and attitudes), technology and competition. Santi Swarup (2004) analyzed the customer orientation in banks for building long-term relationships and concluded that for delivering quality service, it is imperative to have customer orientation as a culture in the bank. Customer orientation builds long-term relationships resulting in customer satisfaction and cash flows to the banks. Hasanbanu (2004) highlighted that the rural customers dont have any idea as to how much time is required for any type of banking services. The rural customers are not aware for what purpose the loans are available and how they can be availed. Customers do not know the complete rules, regulations, and procedures of the banks and bankers preserve them for themselves and dont take interest in educating the customers. Ramesha, Hundekar and Kumber (2004) appraised how the marketing strategies brightens the future customer friendly banking services and said that the banks, in the days to come, have to provide their broad-based service package in the midst of stiff competition. To ensure their competitive edge in future, they have to fight with rivals in terms of quality to their customer services. Sharad Kumar (September 2005) focused on the kind of services provided in developed countries and level of innovative services provided by the Indian banks. Many innovative services are currently available in Indian banks like e-banking, ATMs, anywhere banking etc. But there is a vast scope for further improvement. Parthasarathi (2005) examined the importance of customer service in banks and concluded that customer service is a vital function in any walk of life and especially in business and service organizations like banks. Customers form their backbone and taking care of their requirements is of paramount importance. Therefore, the banks have to adopt innovative strategies to meet customers requirements in terms of services, products, etc. Ratnam and Suguna (2005) studied the customer service in commercial banks in the new era and said that the banks are facing many hurdles in the new era of deregulation and ever increasing competition. To fight these problems efficiently, banks should focus on customer satisfaction, which can be achieved through providing customized products, innovative ways of delivery, etc. Apart from this, banks should prepare customers relationship strategies that include bifurcation of business operations, effective management of complaints, service as a brand, etc. Bontis et. al. (2007) claimed that customer satisfaction enhances reputation in the service environment, which further mediates partially the relationship between satisfaction and loyalty, and partially between satisfaction and recommendation. Walsh and Beatty (2007) supported that service quality is strongly associated with important outcome variables such as customer satisfaction, loyalty, trust and word of mouth when employing a multi-dimensional model across three service business types including banking. Radomir, Wilson and Scridon (2009) examined the relationship between service quality dimensions and customer satisfaction with bank territorial units in Romania. The results reveal that human resources have the greatest impact on customers satisfaction with bank territorial units and that both Convenience and Efficiency and Bank personnel are the dimensions that bank management should consider in their efforts to improve and maintain the service quality level. Jayaraman, Shankar and Mun (2010) examined the relationship between service quality dimensions and customer satisfaction and concluded that assurance has positive relationship but it has no significant effect on customer satisfaction. Reliability has negative relationship but it has no significant effect on customer satisfaction. Tangibles have positive relationship and have significant impact on customer satisfaction. Empathy has positive relationship but it has no significant effect on customer satisfaction. Responsiveness has positive relationship but no significant impact on customer satisfaction. The study also highlighted the implications for marketers in banking industry for improvement in delivery of service quality. Mishra, Das, Patnaik and Mohanty (2010) proposed two structural equation models (SEMs), one for public and another for private sector banks in India, to show the relationship between customer satisfaction on bank services and the attributes of the perceived service quality and to explore the impact of the relationship between customer satisfaction and service quality attributes.

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Despite what has been done in the past in this regard, hiatus between customer expectations and customer service continues to persist. Service, like any product, is subject to further improvements and quality of service should evolve contemporaneously with the rising expectations of the customers. Having this background in mind, the present study is an attempt to fill this gap.

The present study is conducted to assess the quality of services being provided to the exporters by the public sector banks.
To achieve the objective of the study, a sample of 100 customers (exporters) is selected to obtain the responses from them about the quality of the services provided by their public sector banks to them. The respondents are selected purposively from Panipat and Faridabad in Haryana and Ludhiana in Punjab. The data is collected with the help of the questionnaire and analyzed with the help of various statistical techniques like percentage, ranking method and presented in tables in the later part of the study.
RESULTS AND DISCUSSIONS

Responses about the rating of services provided by the banks to the exporters are given in Table - 1. It is evident from the table that the majority of the respondents rated the courtesy at the counter, promptness in transactions and speedy sanction in facility as good and other services are rated as fair. Prompt redressal of grievances is rated as average by majority of the respondents. On the other hand, bank charges are rated as normal by majority of them. As a whole, the services of the banks have been rated as good, fair and average by 44 percent, 37 percent and 24 percent respectively. Responses about the various factors affecting services are given in Table - 2, which indicate that all the factors except communication are affecting the services of banks to a large extent or to some extent. As a whole, it can be said that as many as 47 percent of the respondents are of the view that these factors affect the services to a large extent. Table - 3 is prepared to compare the responses about the services of PSBs with those of PSIBs/FBs. It is clear from the table that 40 percent of the respondents deal with these banks and compared their services far better/better than those of PSBs. According to them, professionalism, disciplined management and technology used are the main factors contributing to the better services in PSIBs/FBs. Table - 4 highlights that as high as 80 percent of the respondents interact with their banks regularly and banks respond positively only in 75 percent cases. The banks provide necessary information and guidance to 92 percent of the respondents. As many as 84 percent of the respondents claim that the banks usually informed to them about the latest changes in RBI/GOI guidelines/exchange control rules relating to the exports. As many as 76 percent of the respondents affirm that there is a machinery for the redressal of grievances and 55 percent of them make use of it. As many as 62 percent of the respondents are of the view that the problems do not get sorted out promptly. As high as 76 percent of the respondents claimed that they do not have specialized branches in their areas and majority is of the view that their dealing with specialized branches provide more satisfaction to them. Table - 5 is constructed to analyze the responses regarding the processing of application forms and sanctioning of loans. As many as 88 percent of the respondents claimed that banks helped in filling up of application forms and their general attitude is found very co-operative/cooperative. Majority of the respondents claimed that the application forms for loans are exhaustive enough to seek all the information at the first instance. Usually, the facilities sanctioned are need-based. As many as 60 percent of the respondents claimed that loan sanctioned is usually more than 25 percent less than the requirement. Only 28 percent of the respondents complained that the banks usually delay in the sanction of various facilities and that is due to unhelpful attitude of the staff and procedural rigidities. The responses about the collection procedure are analyzed in Table - 6, which shows that 88 percent of the respondents are of the view that banks intimate about the receipt of sales proceeds from the FBs and usually don't delay in the negotiation of the documents. Majority of the respondents claimed that banks take up the matter with FBs in case of delay in reimbursement of proceeds to their satisfaction and are of the view that by decentralization, bank procedures can be simplified without exposing them to any risk. Responses about the suggestions for improving customer service are given in Table - 7, which reveal that simplification of rules, procedures etc., personalized service/doorstep service, making working days/hours more flexible are the main suggestions, in order of importance, to improve the customer services to exporters.
RECOMMENDATIONS
With a view to combating competition and becoming more effective and for bringing about perceptible changes in the economy through expected customer changes, the bankers should draw up a strategic framework addressing the key issues concerning the quality aspects thereof. While complaints cannot be totally removed, their intensity could be greatly reduced, if a proper arrangement is made for their redressal. Resolution of grievances raised by customers would greatly enhance the image and reputation of banks as well as generate goodwill and bring in more business to them. The fundamental philosophy behind customer grievance redressal is to treat customers complaints as opportunities to do better. In the normal course, the customer feels distanced from the banks and this could prove to be the potential risk in loosing him over time. It would, therefore, be necessary for the banks to undertake customer meet on a continuous basis without, of course, tuning them ritualistic. As customer-meets are very significant, the bankers should regularly convene them and they should be separate for various categories of customers as also according to the users of the products. The customers belong to various socio-economic groups especially in rural areas (large-sized land holders, marginal farmers, dry land farmers, irrigated land farmers, agricultural labours, artisans, women, SC/STs and the like) pursuing different kinds of economic activities (crop-farming, live-stock farming, fisheries, forestry, processing tiny and cottage scale industries, business and services etc.). These, along with other characteristics, definitely call upon the bankers to stratify the different customer groups and devise products and delivery systems to suit their specific requirements. Often, gaps arise and get widened due to mismatched levels of perception between the bankers and customers. It is to be appreciated that customer service is not about dealing with the people of logic but with people of emotions. It would, therefore, be worthwhile for banks to educate the customers about the various banking schemes, systems and procedures of the banks, rights and duties of the customers, which can play a vital role in evolving healthy bank-customers relationship. With the growing awareness gained by the customer, he expects convenience in dealing with the bank. Therefore, technology can be gainfully employed. Online, Real Time Banking, Anytime/Anywhere Banking, Single Window Banking, Electronic Fund Transfer, Automated Teller Machines, Tele-banking etc. are some such innovations aimed at providing the customers with convenience and flexibility. No single customer is an isolated individual. He has his own network of relationship, be their friends, relatives, colleagues, business associates etc. Higher the status that an individual enjoys in the society, greater and powerful will be the size and influence of the network. The prudence of relationship banking strategy lies in the fact that the banks do not cater to the needs of just the customer but endeavor to influence his entire network through him. Relationship banking is a step-by-step process to be built brick-by-brick through value enrichment at every interface with the customer. No doubt, automation and technology are contributing to speed, accuracy and convenience, it may not be possible or desirable to do away with human contact all together. The human element cannot be lost sight of, as the customer would still like to interact with human beings. It is, therefore, pertinent for the banks to tone up the interpersonal skills in their staff, more particularly, the front-line staff, who could meaningfully contribute to the basic satisfaction of the customer.
REFERENCES
Talwar, R. K. (1977), "Customer Service in Banks", IBA Publication, Mumbai.

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Goiporia (1991), "Customer Service in Banks, IBA Publication, Mumbai. Narsimham, M. (1991), "The Committee on Financial System", Nabhi Publication, New Delhi. IBA (1997), IBA Bulletin: Special Issue on Customer Service, Vol. XIX, No.3, March, pp. 62, 65,75, 76, 91. Narsimaham, M. (1998), "The Banking Sector Reforms", Nabhi Publication, New Delhi. IBA (2004), IBA Bulletin: Special Issue on Customer Service in Banks, Vol. XXVI, No.8, August. Mohanty, Ajay Kumar (2005), Customer Service in Banks: An Overview, Professional Banker, January. Kumar, Sharad (2005), Innovation in Customer Service in Banks, Professional Banker, September. Shajahan, S. (2005), A Study on the Level of Customers Satisfaction on Various Modes of Banking Services in India, ICFAI Journal of Bank Management, February. Parthasarathi, B. R (2005), Customer Service in Banks and its Importance, Professional Banker, November. Ratnam, N. Vijya and Kumari v. Suguna (2005), Customer Service in Commercial Banks in the New Era, Professional Banker, December. Bontis, N., Booker L.D., and Serenko, A., (2007) The Mediating Effect of Organizational Reputation on Customer Loyalty and Service Recommendation in the Banking Industry, Management Decision, Vol. 45 No.9, pp. 1426-1445. Walsh G., and Beatty, S. E., (2007) Customer-Based Corporate Reputation of a Service Firm: Scale Development and Validation, Journal of the Academy of Marketing Science, Vol.35 No.1, pp. 127-143. Radomir Lcrmioara, Wilson Alan and Scridon, Andrei Mircea (2009) Improving Bank Quality Dimensions to Increase Customer Satisfaction, accessed from www.mnmk.ro/documents/2011/11 Radomir%20Cluj%20FFF.pdf Munusamy Jayaraman, Chelliah Shankar and Mun Hor Wai (2010) Service Quality Delivery and its Impact on Customer Satisfaction in the Banking Sector in Malaysia, International Journal of Innovation, Management and Technology, Vol. 1, No. 4, October 2010, ISSN: 2010-0248 Mishra Uma Sankar, Dass Jyoti Ranjan, Patnaik Sanjib and Mohanty, Ayasa Kanta (2010) Service Quality Attributes Affecting Customer Satisfaction in Banking Sector of India European Journal of Economics, Finance and Administrative Sciences, Issue 24 (2010), ISSN 1450-2275, http://www.eurojournals.com
TABLES
TABLE 1: RATING OF SERVICES TO EXPORTERS No. of responses (percentage) Please rate the following services in terms of their relative importance : Good Fair Average (a) Courtesy at the Counter 18(60) 8(27) 4(13) (b) Promptness in Transactions 17(57) 10(33) 3(10) ( c) Speedy sanction in facilities 19(63) 7(23) 4(14) (d) Job knowledge 16(53) 8(27) 6(20) (e) Prompt redressal of grievances 8(27) 9(30) 13(43) (f) Simplified Procedures 9(30) 12(40) 9(30) (g) Providing guidance to customers 17(57) 10(33) 3(10) (h) Technology Upgradation 22(73) 6(20) 2(24) (I) Bank charges Fairly High 2 (37) High 4 (13) Normal 24 (72) Total 128(47) 74(28) 68(25) Source: Survey TABLE 2: FACTORS AFFECTING SERVICES TO EXPORTERS No. of responses (percentage) To what extent according to you, the following factors influence the services of the banks : To Large Extent To Some Extent Not At All (a) Training and Placement of Staff 21(70) 6(20) 3(10) (b) Procedures 20(67) 5(17) 5(16) (c) Location of the bank 14(47) 13(43) 3(10) (d) Communication 3(10) 7(23) 20(67) (e) Supervision 6(20) 12(40) 12(40) (f) Modernization 12(40) 11(37) 7(23) Total 76(42) 54(30) 50(28) Source: Survey TABLE 3: COMPARISON OF SERVICES OF PSBs WITH THOSE OF PSIBs/FBs No. of responses (percentage) (a) Do you deal with PSIBs/FBs Yes - 26 (87) No - 4 (13) (b) If Yes, how do you compare the services of Far better Better Same Poor these banks with those of PSIBs/FBs 20(77) 6(23) Nil Nil ( c) What are the factors, you think, contribute to the better service in PSIBs/FBs : Particulars Rank - I Rank - II Rank -III Rank - IV Rank - V Total Overall (Score) (Score) (Score) (Score) (Score) Score Rank (I) Disciplined Management 5(25) 6(24) 7(21) 8(16) 2(2) 88 2 (ii) Professionalism 8(40) 9(36) 4(12) 3(6) 2(2) 96 1 (iii) Technology 7(35) 6(24) 5(15) 4(8) 4(4) 86 3 (iv) Higher Return on Deposits 7(35) 4(16) 5(15) 7(14) 8(8) 88 5 (v) More Cooperative 6(30) 5(20) 4(12) 4(8) 7(7) 77 4 Source: Survey

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TABLE 4: CUSTOMER GUIDANCE, REDRESSAL OF GRIEVANCES AND SPECIALIZED BRANCHES No. of responses (percentage) Particulars Yes No 1 (a) Do you interact with your bank regularly 24(80) 6(20) (b) If Yes, do the bank respond positively 20(83) 4(17) 2 Do you get necessary information and guidance from the banks 26(87) 4(13) 3 Does your organisation keep itself informed of the latest changes in 25(83) 5(17) RBI/GOI guidelines/exchange control rules relating to exports 4 (a) Is there any effective machinery for redressal of grievances in banks 23(77) 7(23) (b) If Yes, do you make use of them 20(87) 3(13) (c) If Yes, do the problems get sorted out promptly 15(75) 5(25) 5 (a) Do the banks in your area have specialized branches to deal in 30(100) foreign trade (b) If No, do you think that such specialized branches would provide 28(93) 2(7) better services Source: Survey TABLE 5: PROCESSING OF APPLICATION FORMS AND SANCTIONING OF LOANS (1) (2) (3) ( a) ( b) ( c) (4) (5) (a) ( b) Do the banks help in filing up application forms What is the general attitude of bankers when an application for loan is made Are the application forms for loans exhaustive enough to seek all the information from the applicant at the first instance Are the facilities sanctioned need based If the loan sanctioned is less than requirements, what is the approximate credit gap (in percentage) Are the clarifications with respect to loan taken in one go or in piecemeal Do you think that the banks delay in the sanction of various facilities If Yes, are these do to (Please tick) (I) Unhelpful attitude of the staff (ii) Delay in supplying data by customers (iii) Complicated proposal (iv) Procedural rigidities Source: Survey TABLE 6: COLLECTION PROCEDURE OF PSBs No. of responses (Percentage) Yes No Does your bank intimate you about the receipt of sales proceeds from FBs 20(67) 10(33) Do the banks delay in negotiation of documents 6(20) 24(80) Do the banks take up with the FBs the matter regarding delay in reimbursement of proceeds to your satisfaction 27(90) 3(10) Do you think that the bank's procedures can be simplified without exposing them to any risk 12(40) 18(60) If Yes, in which of the following ways (I) Decentralization 8(67) (ii) Bid bond and guarantees be sent directly 4(33) Source: Survey TABLE 7: SUGGESTIONS FOR IMPROVING SERVICE TO EXPORTERS Yes - 21 (70) Very cooperative 18(60) Yes 18(60) 25(83) (0-10%) 16(53) (in one go) 27(90) Yes 14(47) 4(28) 3(21) 2(14) 5(36)
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No. of responses (percentage) No - 9 (30) Cooperative Discouraging 8(27) 4(13) No 12(40) 5(17) (10-20%) (above 20%) 9(30) 5(17) (in piecemeal) 3(10) Sometimes No 10 (33) 6(20)
(1) (2) (3) (4) (a) (b)
Ranks (Score)
Rank -I Rank - II Rank -III Rank - IV Rank - V Rank - VI Rank -VII Rank - VIII Total Score 126 155 110 120 167 123 146 Overall Rank 4 2 7 6 1 5 3
Please rate the following suggestions for improving service to exporters : (a) Customers education and counselling 6(42) 4(24) ( b) Personalized service/door step service 8(56) 10(60) ( c) Gearing up grievances settling machinery 6(42) 4(24) ( d) Mechanization and automation 7(49) 4(24) ( e) Simplification of Rules, Formats, etc. 10(70) 12(72) ( f) Staff training 2(14) 6(36) ( g) Making working days/hours more flexible 9(63) 4(24)
4(20) 2(10) 2(10) 3(15) 20(10) 5(25) 5(25)
5(20) 5(20) 4(16) 2(8) 2(8) 5(20) 6(24)
4(12) 2(4) 3(9) 2(6) 1(3) 5(15) 1(3)
3(6) 2(4) 4(8) 6(12) 1(2) 5(10) 2(4)
2(2) 1(1) 7(7) 6(6) 2(2) 3(3) 3(3)
6 (6) 4 (4) 2 (2) 6 (6) 2 (2) 4 (4) 3 (3)
Source: Survey

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MANAGEMENT OF HOSPITAL DISASTERS: A STUDY OF HOSPITAL DISASTER PLAN

RAMAIAH ITUMALLA RESEARCH SCHOLAR SCHOOL OF MANAGEMENT STUDIES UNIVERSITY OF HYDERABAD HYDERABAD
ABSTRACT
In the last few years, some of the worst disasters have been in India resulting in significant loss of life and destruction of property and infrastructure. The disaster sometimes occurred inside health institution which affected hospital staff, patients, visitors and the community and also outside of the hospitals. Healthcare facilities are expected to respond to these emergencies in a coherent fashion since hospitals definitely play an important role in disaster management. The study adopted the descriptive research design to understand the Inclusive growth in healthcare. The study was based on the secondary data. The aim of the present paper is to discuss the Hospital Disaster Plan and explain the challenge of establishing hospital disaster plan.
KEYWORDS
Hospital, Disaster, Disaster Plan, Hospital disaster manual.
INTRODUCTION
he word Disaster is derived French word Desastre meaning bad or evil star. This is a very narrow conception of disaster and in broader context; disaster means any situation in which there is a sudden disruption of normalcy within society causing widespread damage to life and property. Disasters are the events which usually characterized by negative human impact and exceptional demands for interventions are inevitable. Impact can be substantially reduced by adequate preparation, early warning, and swift, decisive responses. Disaster Management encompasses all aspects of planning for and responding to disasters. It applies to management of both risks and consequences of disasters. Typology of disaster- A disaster can be either natural such as rain, flood, cyclone, storm, landslides, earthquake, volcanoes; or manmade such as war including biological, arson, sabotage, riots, accident (train, air, ship), industrial accidents, fires (forest fires), bomb explosions, nuclear explosions and ecological disasters. Future disasters are inevitable. The impact can be significantly reduced by development policies and strategies that target the most vulnerable, provided that interventions are co-ordinated, and sustained beyond the immediate emergency phase.
THEORY OF DISASTER
A disaster is a natural or human-caused event, occurring with or without warning, causing or threatening death, injury or disease, damage to property, infrastructure or the environment, which exceeds the ability of the affected society to cope using only its own resources. Disasters can be natural (arising in the environment and outside our control) or human caused (from identifiable human actions, directly or indirectly, deliberate or not). Often disasters such as famine or drought have interacting human and natural causes. Sudden disasters can lead to emergency: an unforeseen event that calls for immediate measures to minimise its adverse consequences. Slow onset disasters result when the ability of people to support themselves, and sustain their livelihoods, slowly diminishes over time. Such disasters may also be aggravated by ecological, social, economic and political conditions. Which events qualify as disasters is a social issue? Is HIV or TB a disaster? Poverty, taxi violence and global warming? Oil spills and threatened penguins? While all these problems are serious, we should remember that a disaster is an exceptional event. It should have some negative human impact and reach a scale where abnormal interventions are required. Disasters need to be declared in a legal sense to release government resources. In general, smaller, insidious, and environmental events, affecting poor and remote communities, are less likely to be officially recognized as disasters. It is not true that disasters are entirely unpredictable. Floods occur in valleys and flood plains; fires occur after the accumulation of dry material; wars after the accumulation of weapons. Earthquakes and cyclones occur mostly in places with a known history of such events. Mudslides may occur in uninhabited areas; but when there are homes in their path they can become disasters. Hazards are threats to life, well-being, property and/or the environment. Hazards result from extreme natural processes, technological developments, and various forms of social exclusion. They are risks that can be described in advance. Vulnerability results from the interaction of a community, its environment and those hazards. Storms of equal magnitude might cause minimal disruption in the USA, but kill thousands in Bangladesh - people in Bangladesh are more vulnerable to storms. Disaster management encompasses all aspects of planning for and responding to disasters, including hazard analysis, vulnerability reduction (preparedness), prevention, mitigation, response, recovery and rehabilitation. It may refer to the management of both the risks and consequences of disasters. Contingency planning relates to events, which may or may not occur, in which objectives and scenarios are agreed, managerial and technical actions defined, and potential responses put in place to prevent, or respond to an emergency situation. Mitigation is action to reduce the consequences of a disaster. While it may not be possible to prevent all disasters, the effects can be modified or reduced if appropriate steps are taken. Responses can be divided into early and late phases. Early responses are rescue and relief; later responses are rehabilitation and reconstruction. The first people to respond to any disaster are communities themselves, not governments. Their resourcefulness and resilience is the key to disaster mitigation. Local people are also the main drivers of reconstruction and continued development. In developing countries, longer-term effects of a disaster on local economies, social conflict, nutrition and disease patterns can cause far more deaths than the event itself. Many international disasters have been described in terms of the ideal management, and what actually happened. Characteristically, even quite predictable and regular events have not been planned for; communities have been far more vulnerable than they could have been; and authorities have been slow to recognize and declare disasters. Responses have ranged from superb to downright incompetent or absent; relief has often been too little, too late, misdirected, or inappropriate. Often disaster responses are clouded in apathy and confusion; there are often severe deficiencies in communication and information systems. The usual distortions from a rational response are caused by political and media factors, corruption, inadequate resources, and various local and foreign agencies working at cross purposes. Disaster responses often focus on short-term, high profile rescue operations and neglect the bigger, long-term issues. Finally, several authors have described the interconnections between disaster management and sustainable development. While good disaster planning minimizes interruptions to development, poor responses can divert scarce resources, increase dependency, and actually increase vulnerability to further disasters. Post-mortems, enquiries and evaluations are an essential part of the cycle. While it is easy to criticize after the event, they are also opportunities to do better the next time.
NEED FOR HOSPITAL DISASTER PLANNING

In the last few years, some of the worst disasters have been in India resulting in significant loss of life and destruction of property and infrastructure. The disaster sometimes occurred inside health institution which affected hospital staff, patients, visitors and the community. Healthcare facilities are expected to respond to these emergencies in a coherent fashion since hospitals definitely play an important role in disaster response due to the hospitals treatment role and are an integral part of the nation's disaster response efforts. As well hospitals are charged with preventing and reducing disease and injury [E. A. Heide, 2006]. In

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the event of a disaster, hospitals themselves have two-pronged missions: provide patient care and protect their own staff and facilities [American Hospital Association, 2001]. To increase a hospitals resilience to deal with disaster, some literatures mention about the importance of having hospital disaster planning by establishing a predetermined level of operational sustainability that will carry it through a disaster [C. C. Barrett, 2007]. Thus a hospital can minimize the results of injuries, suffering, and death that accompany a disaster and provide continued quality care to those patients in the hospital. Other literature states that hospital preparedness is an essential requirement in the current atmosphere of man-made and natural disasters [Babar and R. Rinker, 2006]. The major accidents and disasters can only be mastered and controlled by intelligent planning [B. Hersche and O.C. Wenker, 2000].

The present study has twofold objectives. They are: To Study the Hospital Disaster Plan, To find out the challenge of establishing disaster plan in hospital, from process of planning, implementation, monitoring and evaluation and To find recommendation from literature to help planners to avoid common disaster management pitfalls thereby can improve performance during a disaster.
METHODS
The study adopted the descriptive research design to understand the Hospital Disaster Plan and Challenges of Establishing Hospital Disaster in Hospital. The study was based on the secondary data such as articles in various journals and the internet materials.
HOSPITAL DISASTER PLAN

Here are the details of Hospital Disaster Planning according to Dr. Shakti Kumar Gupta.
AIM OF HOSPITAL DISASTER PLAN

To provide prompt and effective medical care to the largest number of people needing that care in order to bring about early recovery and reduce the death and disability associated with the disaster incident
OBJECTIVES OF HOSPITAL DISASTER PLAN

* Prepare the staff and institutional resources for optimal performance *Make the community aware of the importance of the disaster plan, how it is executed and the benefits it provides *Train staff *Carry out periodic drills & its evaluation to update plans Guidelines
GUIDELINES
Establishment of Communication intramural and extramural Mobilization Immediate & sustainable Manpower Materials and supplies Provisioning of the space Transportation Public relations Documentation
PRINCIPLES OF DISASTER PLANNING

Pre-disaster preparedness & properly drawn up disaster plan can minimize effect of disaster. The plan should be: Simple- Easily understood by everybody so that it can be put into action immediately Flexible - To fit different types of disaster Clear & concise - Can be acted upon during noise & confusion Adaptable- Applicable for any time of the day including off time/day Extension of normal hospital working- working- So that staff can act upon it in routine manner Practiced regularly Permanent and periodically updated A part of a Regional Disaster Plan
WHO SHOULD MAKE THE HOSPITAL DISASTER PLAN?

Hospital Disaster Management Committee would make the hospital disaster plan. The suggested membership of hospital disaster plan is Director/executive head of the hospital, Departmental heads, Nursing Superindent/CNO/SNO, Hospital Administrator, I/c Casualty Services, Maintenance and Engineering Staff, Staff representative and Representatives from other supportive & utility services as required
FUNCTIONS OF HDMC
The functions of the Hospital Disaster Management Committee are: to develop the Hospital Disaster Plan, to develop Department Plan in support of the hospital plan, to plan allocation of resources, to allocate duties to hospital staff, to establish standards for emergency care, to conduct and supervise training programme, to supervise drills to test the hospital plan and to review and revise the Disaster Plan at regular intervals.
COMPONENTS OF HOSPITAL DISASTER PLAN

The components of Hospital Disaster Plan are: 1. Efficient system of alert 2. Staff assignments 3. Unified Medical Command 4. Mobilization of resources a. Medical, nursing, administrator staff b. Medical stores supply and equipment c. Conversion of use use-able space and clearly defined areas for reception, triage, observation and immediate care 5. Procedure for prompt intra intra-hospital transfer of patients 6. Procedure for discharge/referral/transfer of patients including transportation 7. Prior establishment of public information centre

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8. Security arrangements 9. OT utilization planning 10. Planning for X-ray Lab & Blood Bank services
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HOSPITAL DISASTER MANUAL

Every hospital should have the hospital disaster manual which has to be including the written statement of Disaster Plan and to be activated during disasters. The Hospital disaster manual is advised to be divided into five sections such as: Section I - Introduction, Section II - Responsibilities, Section III - Action Plan, Section IV - Check Lists and Section V - Rehearsals.
CHALLENGES OF ESTABLISHING HOSPITAL DISASTER PLAN

PLANNING The Hospital Disaster plans are generally developed through discussions, meetings, articles from the internet, seminars, training, staff suggestions, and disaster plan from another hospital, accreditation guidelines and past experience. The Hospital also can undertake a disaster risk analysis before developing the plan. When designing the plans, the hospitals are encountered several challenges. a) LIMITED STAFF: The main challenge was a human resources matter such as limited staffing. Due to the limited number, staff had many jobs and made it difficult them together to discuss or establish the plans. Besides, since the disaster plan was a new issue, few staff had little skills and expertise in the field. Moreover, as the plans closely related to an emergency response, the idea and initiative for establishing the plan usually come from the Emergency Department. b) LIMITED BUDGET: Another challenge was the limited budget. The preparation of disaster plan needs many tools and infrastructures for example communication equipment and decontamination area with hot and cold water supply. Due to budget limitation, the hospitals could not comply with literature guidelines. Then the disaster committee modified the plan such as using intercom rather than radio communication for alternative communication. c) CREATING AWARENESS: All hospitals have to make an effort to make the hospital personnel aware of the hospital disaster plan. Usually the hospitals disseminate the plan through training such as fire, evacuation and Basic Life Support; and simulation. Furthermore, staff could identify problems and apply lesson learned from past experienced. Usually before training and simulation, to introduce disaster plan matter, it is important since disaster plans are still a new issue in India.
IMPLEMENTATION
After the planning the next important aspect of disaster planning is Implementation. Each hospital had different risks to anticipate as well as disaster plan implementation. The hospital may experience a disaster and/or mass casualty situation. Though the disasters plan exists in the hospitals, they may encounter the following challenges when using their own disaster plans. The first challenge was a limited budget. Second was the limited competency of hospital personnel about disaster planning topics. The third challenge is an ineffective command control system. Hospital have to concerned on the command control system and revised the system before to prevent the system cannot work on disaster situation Limited medical equipment and thus the hospital cannot handle the patients which were in need of sophisticated equipment and in these cases the patients would need referral to another hospital which has better facilities. Low human resources capacity issues and thus the hospitals needed to engage in a process of staff capacity building. Another challenge is the risk of ineffective coordination with the government field coordination unit and also within hospital.
MONITORING
The major problem in this stage of the Hospital Disaster Plan is that the hospital doesnt implement a comprehensive hospital disaster preparedness measurement system. The reasons for not doing so were that there was no indicator or measurement tool and there was no department/division that had responsibility to do the monitoring. The measuring the plan is important to test the hospital system as a whole.
CONCLUSION
There should be a clear understanding at the planning level that almost any part of the plan may fall through, and contingency plans should also exist: When establishing hospital disaster plans the involvement of a multidisciplinary team is required. Thus disaster planning committees should have multidisciplinary members including administrative staff. The disaster plan has to be decided locally on the basis of hazard analysis and proper disaster planning. In the case of these, it may be effective if Health Department can facilitate hospitals to meet and discuss about disaster plans so that there is congruence and sharing of resources. Regarding the Human recourse challenges, the hospitals have to deal with them by increasing human resources capacity in disaster and emergency response, regular training of staff in Basic Life Support and evacuation so that the staff will be ready to cope with disasters. The hospital has to disseminate the plan through training such as fire, evacuation and Basic Life Support; and simulation. Furthermore, staff could identify problems and apply lesson learned from past experienced. Usually before training and simulation, to introduce disaster plan matter, It is important since disaster plans are still a new issue in India. The plans must be simple and flexible since disasters never go according to the plan and it is crucial that the plan should be made by the people who are going to execute them When dealing with limited resources need to be cost-effective and focus on priority issues consequently, rather than doing everything possible to save an individual patient, it will be necessary to allocate limited resources in a modified manner to save as many lives as possible. Hospital should assign disaster team roles and responsibilities in terms of position rather than individuals. Hospital should establish tools and method for monitoring and evaluating disaster plan. The primary goal of disaster planning is increasing a hospital's resilience by establishing a predetermined level of operational sustainability that will carry it through a disaster. To create resilience, a hospital should integrate preparedness in its daily operations, fund it in its budget, implement it with standard operating procedures, and measure it through drills and performance evaluations. To be effective, plans must be practical, acceptable by all users, inter organizational, and based on valid resource information. Management should not focus on production of a written document since what need to be created are not only documents. Hospital need to review their plan to improve it over time. To establish hospital preparedness towards disaster, hospital should establish operational sustainability that will carry it through disaster. Therefore hospital can reduce number of injuries, suffering and death during disaster and provide continued quality of care. Disaster plan can improve the hospitals capacity to deal with disasters. Using disaster plans, help hospital staff know what to do, when and how to do it, who they should help first and make coordination; and where is they should go. Moreover, the plans also give guidance to hospital what to do before and after disasters happen thus emergency response become more prepare, more organized and faster. Even though there were challenges in designing and implementing the plans, the hospital has to be prepared. This is lacking in many hospitals because they thought disaster was rarely happen thus the implementation of the plan was not necessary. Major accidents and disasters can only be mastered and controlled by intelligent planning However, even

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disaster plan is nonprofit issue even need money; managers, administrators and clinician from all hospital have commitment to apply hospital disaster plan due to patient and staff safety. Well plan is half work done The best managed disaster is the disaster which is prevented!
ACKNOWLEDGMENT
I would like to thank my teachers, Prof. B. Raja Shekhar & Dr. G.V.R.K Acharyulu, School Of Management Studies, University of Hyderabad, Hyderabad for their encouragement, support and inspiration.
REFERENCES
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. E. A. Heide. (2006). The Importance of Evidence-Based Disaster Planning. Annals of Emergency Medicine, 47, Issue 1, pp. 34-49. C. C. Barrett. (2007). Disaster Planning after Katrina. Health Progress, November-December, 88 6. American Hospital Association. (2001). Disaster Readiness Advisory #1: Disaster Readiness. Dr. Shakti Kumar Gupta. (2006). Overview of Health Services Disaster Plan, Work shop on Integrating Hospitals safe from disasters. Babar and R. Rinker, Direct patient care during an acute disaster: chasing the will-o'-the-wisp. Critical Care, 10-206. B. Hersche and O.C. Wenker. (2000). Principles of Hospital Disaster Planning. The Internet Journal of Disaster Medicine, 1-2. WHO. (2008). Hospitals Safe from Disasters Reduce Risk, Protect Health Facilities, Save Lives. 2008-2009 World Disaster Reduction Campaign. APIC Bioterrorism Working Group (2002). Mass Casualty Disaster Plan Checklist: A Template for Healthcare Facilities. Saint Louis University, School of Public. Pan American Health Organization (2008). PAHO, 2000 Series: Hospitals Safe from Disasters No 2, Hospital Safety Index, Evaluation Forms for Safe Hospitals. A.H. Kaji and R.J. Lewis (2006). Hospital Disaster Preparedness in Los Angeles County. Academic emergency medicine, 13, issue 11, pp. 1198-1203. Harvard Medical International (2005). Hospital disaster management: Preparing for the unexpected. S. Mehta (2006). Disaster and mass casualty management in a hospital: How well are we prepared?. Journal of Postgraduate Medicine, 52, issue: 2, pp. 8990. K.O. Sundnes (1999). Health disaster management: guidelines for evaluation and research in the Utstein style: executive summary, Task Force on Quality Control of Disaster Management. Prehospital and Disaster Medicine, 14 (2), pp.43-52. http://www.tn.gov.in http://www.hst.org.za

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REQUEST FOR FEEDBACK

Dear Readers At the very outset, International Journal of Research in Computer Application and Management (IJRCM) acknowledges & appreciates your efforts in showing interest in our present issue under your kind perusal. I would like to request you to supply your critical comments and suggestions about the material published in this issue as well as on the journal as a whole, on our E-mails i.e. infoijrcm@gmail.com or info@ijrcm.org.in for further improvements in the interest of research. If you have any queries please feel free to contact us on our E-mail infoijrcm@gmail.com. I am sure that your feedback and deliberations would make future issues better a result of our joint effort. Looking forward an appropriate consideration. With sincere regards Thanking you profoundly Academically yours Sd/Co-ordinator

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SCOPE FOR FUTURE RESEARCH

INTERNATIONAL JOURNAL OF RESEARCH IN COMPUTER APPLICATION & MANAGEMENT

VOLUME NO. 2 (2012), ISSUE N O. 2 (FEBRUARY)

Average per Machine 109.67 56.64 3.66

INTERNATIONAL JOURNAL OF RESEARCH IN COMPUTER APPLICATION & MANAGEMENT

VOLUME NO. 2 (2012), ISSUE N O. 2 (FEBRUARY)

FIG. 2 PROMODEL OUTPUT REPORTS ON LOCATIONS WITH THREE MACHINES

INTERNATIONAL JOURNAL OF RESEARCH IN COMPUTER APPLICATION & MANAGEMENT

VOLUME NO. 2 (2012), ISSUE N O. 2 (FEBRUARY)

INTERNATIONAL JOURNAL OF RESEARCH IN COMPUTER APPLICATION & MANAGEMENT

VOLUME NO. 2 (2012), ISSUE N O. 2 (FEBRUARY)

INTERNATIONAL JOURNAL OF RESEARCH IN COMPUTER APPLICATION & MANAGEMENT

VOLUME NO. 2 (2012), ISSUE N O. 2 (FEBRUARY)

INTERNATIONAL JOURNAL OF RESEARCH IN COMPUTER APPLICATION & MANAGEMENT

VOLUME NO. 2 (2012), ISSUE N O. 2 (FEBRUARY)

OBJECTIVES OF THE RESEARCH

FRAME WORK OF ANALYSIS, DATA AND ESTIMATION

.999 .000 10 .995 .000