Vol I No 2

December 2011

www.ijbd.org ISSN 2248 - 924X

IJBD
Papers, Reports, Cases and Sqibs Themes
CorporateQQQQQQQQQ Driven Emerging World Order Monetary Regional Freedom- Central Banks, Federal Reserves and Government Monopoly for Emerging World Order Cash, Credits, or Capivaries? Trends in Commodity Market Trading in India Change Management Management Education and Business Excellence Issues in India Upon which loom will you weave life Creative leadership Media Manipulation and Whistle Blowing Demand Supply- LGs Quality Threats Investing in India

International Journal of Business Derivatives

Editor in Chief Dr Manideepa Patnaik Managing Editor Dr Scalem M Review Board in Charge Dr Anand Agarwal Dr Hardik Vacchrajani Advisers Dr Steffen Roth Dr Chiara Orshingher Dr K. K Patra Dr Kumaran Rajaram Message Currency Wars ! Claudia Kling, MIT

IJBD

International Journal of Business Deviations (IJBD)

Editor in Chief Dr Manideepa Patnaik Managing Editor Dr Scalem M Review Board Dr Anand Agarwal Dr Hardik Vacchranjani Advisers
Dr Steffen Roth Dr Chiara Orshingher Dr K. K Patra Dr Kumaran Rajaram

IJBD is published bi-annually. All the papers, book reviews, case studies, reports, message papers/articles and squibs must be sent to the Editor in Chief through the appropriate means cited in the journal website. Papers/articles submitted for publication passes through several rounds of editorial process and at every stage the authors are informed about the progress. IJBD is an open access electronic journal. The ISSN registration is in process. Revenue generation for the journal depends on advertisement, sponsorships and donations. Views expressed in the journal are absolutely the responsibility of the authors. Maximum care is taken to take care of the errors and minimize extremism and extroversion. All copyrights are respected by IJBD. No part of the materials published in IJBD can be reproduced without prior permission of the journal. The print version of the e-journal would be made available based on funds. 2

Support Academic writing Workshop c/o Institute of Language, Literature and Culture

Donor for this Volume Dr Manideepa Patnaik

IJBD
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Referees for IJBD VOL I 2011

IJBD is extremely thankful to the following friends who have done a tremendous job of reviewing the papers for Volume I Number-1. Their best wishes have made the volume possible. 1. Dr. Anupam Ghosh (Assistant Professor, IBS Kolkata, India) 2. Dr. George KwangSing Ngui (Senior lecturer, Swinburne University of Technology, Sarawak, Malaysia) 3. Dr. Nidhi Srivastava [Professor (Finance), Institute of Professional Excellence and Management, Ghaziabad, India] 4. Dr. Pradeep Krishnatrey [Professor - Dean (Research), Mudra Institute of Communications, Ahmadabad] 5. Dr. Praveen Nair (Senior lecturer, Swinburne University of Technology, Sarawak, Malaysia) 6. Dr. Shruti Jain (Associate Professor, NIILM, Centre for Management Studies, Greater Noida, India) 7. Dr. Snigdha Pattnaik [Adjunct Professor (Human Resource Management and Organizational Behavior, Xavier Institute of Management, Bhubaneshwar, India] 8. Dr. K. K Patra, Academic Dean, RIMS, Orissa

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Statement of Ownership of International Journal of Business Derivatives.

The ownership of International Journal of Business Derivatives would be vested in the trust of the journal management committee. At present the trust has not been formalized because the ISSN registration is in process. All donations and sponsorships are expected to be given in the name of the journal when a joint account opens in the name of the journal with the signature of the trustees. At present Language Resource Centre of Institute of Language, Literature and Culture which is registered under 1860 Soceity Registration Act is hosting the publication.

Contents
Editorial 7-16 - Editorial Dr Manideepa Patnaik Papers 17- 24 Dr JimYoung, Upon Which Loom Will You Weave Your Life? 25-56 - Dr K. K.Patra,Trends and Prospects of Commodity Markets Trading in India : An Analysis 57- 75 -Pravash Mohapatra,Change Management : The Driving Force of Growth 76- 85- Sankha Suvra Sanyal,Indian Management Education : From Here to Where 86 103- Ravi Bhasin, Divya Goel, Vivek Ahuja,Excellence and Effectiveness of Management Education Issues, Challenges and Opportunities 104- 187 - Dr Suchismita Sengupta,Balanced Scorecard : A Revolutionary Business Strategy or a Mere Performance Measurement Tool- A Study on Few Selected Public Limited Companies in India 188 213- Sisir Kumar Panda, Spirituality at Work Place 214- 242 -Navarathna Bothra, Dr Ravindra Shukla, Krishna Murari, Bindiya Kar Employee Perception Towards Adoption of IT in Banking Service : A Study in Indian Public and Private Sector Banks 243- 259 -Santosh Sali,Spiritual Belief and Job Satisfaction : A Study among India IT Professional

260 275 Aniisu K Veghese, Media, Manipulation and Whistle BlowingChallenges and Directions for Change 276- 298 Dr Kumaran Rajaram, Management gurus Peter Ferdinand Drucker and Thomas Peters: Importance of Creative Leadership to Sustain Competitive and Differential Advantage 299 -349 Dr Scalem M and Dr Manideepa Patnaik, REPORT 1 Investing in India 350- 439 Nutan Karn, A Critical Study of Demand and Supply gap and Quality Threat to LG Electronics India 440 447- Claudia Kling, Squib 1- Currency Wars 448-451 Claudia Kling,Squib 2 Ending Central Banks, Federal Reserves and Government Monopoly over the People !Fight for Monetary Regional Freedom ! Again Globalist Regional Freedom 452 451 Claudia Kling, Squib 3 Project to Stop Globalism ! The R Word for Regionalism, Part One

Editorial
I wish you a happy and a profitable 2012 with a wintry welcome to the second issue of the first volume of International Journal of Business Derivatives. As always, this is the name of the journal and the papers we have received have their own characters and value and not to be judged with the name of the journal. Thats the way the world runs. We always dont get what matches our names. I dedicate the editorial article of this issue to business derivatives based world order. The world order had always been a business derivatives based world order and wars too have been the same order at the core of the matter, whatever be the surface aggravating factors, ranging from territory to religion to politics to core value systems . The world had never been designed to be set into a perfect planet different from the rest that orbit the sun that is supposed to run with peace, joy and love cell by cell. Our very food system is an unashamed model following the Darwinian Theory of fittest survival belief and we cannot ignore our taste for food not can body ignore the nutritional value we get from the animals meat. Ever since we begin to exist with the big bang accident, we begin to exist with a core desire to fulfill our needs and wants which are the core desirable values of business creations. The need and want as the best satisfied survival by fittest model has been set to be the only model that runs the world.
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Businesses, starting from barter and hand loan systems, have been running the world in crucially complex ways for thousands of years modeled by various belief systems and operations and these business derivatives have become far too complex to fit a theoretical a model. The only model that runs the world is the Power Model and business is the part of this world and hence that too operates and creates various Power Models on the basis of the survival by fittest philosophy. In the present day world, corporate buy nations, create political parties that rule nations and they create nations that are ruled by political parties that would extend them favoritism of all sorts against the origin bargain or creation. This Power Model creates acquires and creates millions of new businesses and merges with the several existing non-functional ones which engage in the process constantly creating and recreating the world order from grass root to top and top to bottom. Several ways are in operation in these derivatives. The world has always emerged through businesses in a way crucially based on the extent to which the human and non-human race has profit expectations out of their needs and wants. A model was never supposed to be created for the best world order that most people would have wanted and needed, but the world order that emerges by the way of meeting the needs and wants of social classes and business classes. Obviously, we cannot expect the
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corporate class to be some sort of non-profitable social work body. They strive to grow and make plans for their growth based on the blatant Darwinian Philosophy of fittest based survival model which is basically a Power Model. Against the idea that, the world was never been designed for a model to create a thoroughly enjoyable place for each and every living being that exist in the planet earth that we call World, the world definitely has been modeled to be controlled by powers of various forms that some businesses know about and some do know about. Depending on the age, we have given various names to those powers owing to the birth of the concept corporate wars leading to various world orders. The supernatural power is one such power that governs the world order too. If a government has 2 billions to spare in a nation on a certain business deal and a natural catastrophe occurs at that point then that deal gets postponed. If a business owner decides to get into fittest of the survival plan to buy another business and some mishap occurs then that plan stays on hold. NASA has been taking about the emerging world order linking it to the way universe is changing its shape and the new understandings that come on the way. If not all the businesses have anything to do with that , but some do take it seriously. Thats how the huge Occupy Movement started by corporate backing and it is weakening by corporate back outs. But definitely NASA, National Geographic and other similar
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important bodies which are working on the supernatural as a power that controls the world order are funded by government and corporate in various ways. We cannot say thus, that business alone controls the world orders but this way it does not when it does not. Like corporate, governments do businesses too and they have various belief systems about the world orders. Then the question is who controls the emerging world order. The answer is ALL - and all have some business with this emerging world order. Religions are crucial to business derivatives too. For example, various nations inside war zones are the areas where businessmen of two conflicting religions compete to succeed. In India, Hindus and Muslims cannot co-exist to do businesses without disruptions. Thus, some of the sensitive areas where one sees bombing, murders, massacres etc are areas, mostly dominated by Hindu and Muslim business community competitions. The international wars are also controlled by the world businesses to a crucial extent which is at times driven by core religious values. Hence a virtuous attempt to investigate business derivatives cannot exclude the divinity aspect and the religious aspects. Calling these powers ignorable at the time of an emerging world order that awaits world war III and opposing them may turn out to be ungodly and nondivine for the time. There are many power structures that constantly create models depending on the needs and wants of the regions and the living
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beings. A colleague , in personal communication asked me to talk about the way banks, IMF, Rothschild, world bank etc take part in the wars and peace too, and my simple answer was they all come under the various types of Power Model at the end and there is no ways how we can talk the details in an editorial. It is clear that these models that run the world have business derivatives at the core and these models are modular or gestalt in nature and far from a compartmentalized structuralist character. Given that it is true that the world order has constantly been emerging and re-emerging based on a power model or various models operative in various ways of powers crucially linked to profit and loss, the obvious understanding is there must have been anti-power models for every power model that existed in all the time. The power models as well as the anti-power models are operative in multiple layers. Hence, the concepts such superpowers, third world powers, euro zone power and so on and so forth. Working within a model thinking as though the opposite of that model has never been existent has been leading to wars and chaos and wars and cold wars of varying nature. Based on my decade long of secret peace making effort, I realize at the end that the end of all war zones is war. There cannot peace and peace only because we cannot do away with profit and loss games that caters to our needs and wants and the desires and wishes for our type of survival and
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dignified survival and survival by choice. This can be possible however, if some dramatic age change attitude awakening happens overnight at a significant level. That will not happen everywhere. That may happen in regions. Given that the only available model for the smooth functioning of the world has been the Power Model which, as I wish to repeat, is crucially dependent upon and governed by businesses, so we need to detail out the derivatives of these businesses in a multidisciplinary perspective. Business being defined as meeting ground of needs and wants for profit maximization, and that being crucially dependent on the emergent character of living beings with opened out Pandoras box, in ways that are possible and the indefensible addition of desire to wants and needs have been the reasons why power is a synonym of business. Given this to be true, it is also true that the human mind hasnt yet developed the ability to distinguish the difference between power with divinity and divine power with satanic power. Hence, there is a brawny and inevitable call for power watch. This frank Darwinian law is ancient wisdom too. The supreme powers which are business powers in this case have nothing to do with the grassroots existents is ingenuousness and must not be trustworthy to the common man. Power along with its anti corresponding equivalent operates in layers, to be specific in multiple layers along with multiple
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functionaries. What is power for the common man- law, police, and bureaucracy may or may not be in synergy with the power which is ultimately governing them from the top. They realize it when the time is right. What is the need to talk about it then? Planting agents are everywhere and so do whistle blowers. The role of positive organizational culture and what they ought to do is questionable. The same is applicable to spirituality at workplace and all the good things we talk about as the latest trends in business derivatives. The issue is do the managers always know whose businesses are they working for before they think about setting up the required positive organizational behavior and spirituality at workplace? Do we need terror funded organizations to adopt these techniques to dust our eyes as they do? But they typically do. I can go to court to fight with them on this.

The emerging world order is an obvious subsidiary of business derivatives. Rise of democracy as such has been the begot of a series of class wars and rise and fall of dominant ruling classes with the facilitation of business derivatives as the most important and fundamental mechanism of each revolutionary change. Every time a new class emerges attributable to the fall of the ruling class, the civilization witness the stories of traumas and atrocities of the previous dominant ruling class by the emergent class. The chaos

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thats in the air is obvious and its the begot of the civilization in the making. Crucial to business derivatives is also the fact that there has been a materialization of an evil class as the rich and the powerful class. This is also called appearance of the slave class as the ruling class which is a politically incorrect way of talking about this most crucial revolutionary change though. However, this sprouting class has mostly been funded with anti-powers with negatively set agendas which are resultants of the historic sufferings they have had or the conduction of culture along with life style and face shift process. No hard work backed business has gone in vein without affecting or creating a society and so when the way of living of a society gets transferred or gets diffused to facilitate business the dwellers want to spread out the cultural value that had been created as a result of the business derivatives. Various social changes that aggressively create criminals and change personalities are thus grades of business derivatives at the core. The nations and regions that have stood up overnight have to swallow the business derivatives driven complexities. Do we have to? When the existing illuminati class gets affected by such a process ask, the chaos gets complicated. This is rather a hazard that the process better be aware of. Can the system that becomes the beneficiary of such processes leave the illuminati class apart? If they do not, the emerging world order is not really in their hands.
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It will continue to be in the hands of the illuminati class. But can we really say, the illuminati class is poking its nose in emerging world order for reasons none than unwanted? Snow down operands of business derivatives about this issue and you will get an answer as solid as candle. What impact this complex module is going to have on civilization and the global oneness we are talking about is unidentified- but definitely horrifying. The third world war definitely is in making through this emergent evil rich powerful class who has created a multi layered evil middle class with criminal power. Not getting into theories of socialism, communism, capitalism in theoretical ways, I submit humbly that this process is getting closer day by day to giving breathing space and latitude to an emergent anti-power which always existed within power model all the time and at this time the emerging world order will most probably held the disarming of anti-power responsible for the emerging chaos. As always, a new world order always emerges after a chaotic phase of destruction and deaths and the average common must comprehend this so that the sickening news in waiting can be avoided. This is because only by means of business derivatives the operations have far exceeded what was written in the book of law. To contrast this, well-built effort has to be made such that an effective power

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model becomes the emergent model that will nullify the emergent anti-power model. I have been recommending it here and there for few years now that we have to come up with a global business census that will list down all the businesses, their source of funds and operations and put it before the public so that the criminalization of business derivatives can be minimized. In a time such as this, we need to be vigilant about this aspect of business derivatives. If we fail to spot this at the right time, then the emergent anti-power will period its influence by outsmarting the power model that the world craves for and had been designed to be managed by, and the emerging world order would be turbulent and frenzied. And for all will be responsible the basic assumption that corporate rules the world. Thank you for putting up with the colors. The journal will eventually be published in black and white.

Manideepa Patnaik Editor in Chief

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Dr. James H. (Jim) Young Chancellor Emeritus, University of Arkansas at Little Rock, AR, USA

UPON WHICH LOOM WILL YOU WEAVE YOUR LIFE?

Recently, I was challenged to give consideration to what mythology governed my life, what cosmology informed me of the directions I would or should take, moment by moment. This is somewhat like late Brother Roger of Taize once said, if I may paraphrase: The images of childhood are the loom upon which we weave our lives. Childhood or not, past trauma or current beliefs notwithstanding, certainly our path is defined, at least in part, by the container of images we acknowledge on some level of being.

I like to envision this container much like I do the container of spiritual or cosmic consciousness. It is this container that is
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available to all of us, much like the old phonograph records of yesteryear. Remember those celluloid disks, which spun beneath the needle that found the particular sound we wanted to hear? Well, a Life of spiritual or cosmic consciousness is like that very disc. Life, Truth, cosmic consciousness contains all we ever need to know, all the images that become available or aware to us just for making the connection with them. Indeed, we are like that needle on that old time phonograph machine. When we take ourselves to the images, they play their tune for usand we come to live them as us.

Here are some of the images that Ive connected with in what wed call the past. The only difficulty is I connected with them on the wrong disc, on the incorrect record. I mistakenly took the ego conscious record to be the Truth, and when listening to the music and lyrics found there, I led myself astray from the Truth of my being. For example, for a time I lived this one: Only what I see around me is real. Or this: Thats just the way its done in the business world, or in the world of higher education. Another: I am my body, my feelings. Still another, We are separate and different. And yet another, Being spiritual is doing certain things, worshipping a particular way or asking God for favor. Each and all of
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theseand many moretook me to a life of listening to the voice of outer authority, of taking its many images in as my own, habitually forming such images into my own beliefs and opinions.

Yet something within me tugged at me, tugged until I listened to its Voice. Simply be aware, is said to me, Simply be aware, over and over again, until I finally heard the remaining phrase that followed: Be awareby focusing all your attention only inward. Once I became aware that I was putting the needle that connects me with Truth on the wrong record, my Life changed much for the better. By listening to the record of spiritual, cosmic consciousness, I came to understand that my willingness to abide spiritual awareness held me in the realm of Truth, inner Wisdom, as my daily guide. Soon, I saw separation no longer. Soon, I came to comprehend that there is nothing opposed to spiritual consciousness, and the only thing that could lead me otherwise didnt really exist at all. I had only dreamed that something else existed, and out of my own self-importance, I constructed in the process of living my waking dream. But, of course, the waking dream is no different than the dreams that appear while sleeping: neither is real.

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Thank goodness, I have awakened from that dream, and I know that I no longer need to work hard to become enlightened, for my innate state of being is enlightenment. My innate state of being is harmony, is balance and is completeness; is authentic Love, and is spiritual or cosmic consciousness and nothing less than these. There can be nothing lessor morethan this container of All That Is. There are no other containers or records than this, for there is really nothing opposed to completeness, wholeness, Loveon it goes. To keep it simple, spiritual or cosmic consciousness IS. Period. Focusing our attention on the illusion of that the other recordego consciousnessmakes it seem that there can be or is something opposed to this Truth, and gives it credence is doesnt deserve or have.

In discussions about such things, people often say we need ego in order to survive this thing we name life. And thus the call to kill or eliminate the ego is crazy. We need the ego to survive what life? What does the life that requires ego look like? Thats like saying I dont believe in God. Exactly what does this God that I dont believe in look like and how does it behave? The fact of the matter is, what we call life is exactly what ego has made out of nothing at all. Its ego that labels everything; that judges everything; that thinks its not only
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opposed to, but better or stronger or more correct than, the only real consciousness. Simply put, we dont need to label anything at all; nor do we need to judge, especially ourselves; and we surely dont need to be better than anything or anyone, especially others views of us. In the world of spiritual consciousness, where we acknowledge our innate divinity, we all are truly equal, no labels necessary. All we need do is become and remain aware of the Truth of our being, and extend only the Truth out into the Universe. This and this alone will demonstrate the Truth.

To express Life this way declares our spiritual independence. To express Life this way clears ego consciousness out of the familial lexicon of images that can have influence over us that have contained us in limitless limitation. Lets punctuate the importance of spiritual independence by being radical. Seems to me that shifting the hold these chaotic times have on us requires radical change. Simply sliding along, being satisfied with spiritualizing our ego consciousness just wont do.

Our spiritual independence is affirmed and validated by regularly exercising the The100% Rule. Heres how it works.
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The 100% Rule

Its much more difficult and debilitating on the long term to function at less than a 100% commitment to living spiritually. When we live anything less than 100%, even at the 98% level, we are reduced to continually strive or seek to become what we already are: 100% divine, complete, spiritual, throughout eternity. Why struggle, when all we need do is to engage our innate divine nature in full awareness of it? Look and listen inwardly and awareness will show the way

This takes me to The 100% Rule itself: It just doesnt matter, or perhaps more accurately, Nothing else matters.

This 100 % Rule provides us with a rather detached, mischievous state of mind that is blithely heedless of what anyone thinks about anything. By trusting our intuition above all other influences, we exercise our right and the privilege to be free from the likes of expectations, precedents, dogmas, beliefs and opinions. Thus, we declare our independence from everything that doesnt resonate as Truth, deep in our
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heart of hearts (gnosis*). And well extend out into the Universe only the renderings of that Source, which provide but spiritual order to Life and, along with it, nothing less than authentic Love, our real identity.

In case youve been waiting to see the connection between living The 100% Rule and your place in the world of business, this is it: living true to our innate being is our ONLY business! Truly, nothing else matters. And you apply this principle to your everyday existence, including your work lifefor we are not separated from any aspect of lifethen the world will change before our eyes, in all the best ways. Give it a try, for just forty days, and see for yourself how empowering The100% Rule is for youand for all those around you. There is no better way to get a promotionto a more wholesome lifea life that is made more wholesome by transcending the world of ego consciousness for the Truth of spiritual consciousness, your most natural way of being in the world. Indeed, make it your business to be just this way, and this way alone. And watch the (spiritual) profits soar!

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*Gnosis: intuitional apprehension of spiritual Truth. (Thanks to my friend, Lothar Schfer, for this definition of gnosis, called cosmic consciousness in his lexicon.)

DR. K. K. PATRA Professor of Finance and Dean (Administration) Rourkela Institute of Management Studies Chhend, Rourkela-769015 (Orissa), INDIA

Trends and Prospects of Commodity Markets Trading in India: An Analysis

ABSTRACT Purpose: The present study is an investigation into the present status, growth constraints and developmental policy alternatives for commodity futures markets in India. Design/methodology/approach: It refers to the scientific methods used in the project for the purpose of investigation and research. It is a conceptual research fully based on abstract ideas, concepts or theory. It results in the development of new concepts or reinterpretation of existing one. Findings: The findings are based on the movements of the existing commodity spots and futures indices; indicate an
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important informational role of the futures market. The study find evidence of information flows between the spot and futures markets, the degree of information flows and their direction vary significantly. Research limitations/implications: The main purpose of this paper is to understand the need of commodity markets and its current scenario in India. Practical implications: The commodity markets activity, volume and players multiplied in the recent past. In India, although the trading in commodity markets and commodity exchanges is booming, it has to cross few more hurdles like permitting Fills, banks and other financial institutions to operate in these markets. Key words: Commodity, hedging, arbitrage, derivatives, constraints, investigation. Introduction: The Indian experience, however, is much older as references to such markets in India appear in Kautialyas Arthasastra. The first organized futures market was established in 1875 under the aegis of the Mumbai cotton trade association to trade in cotton contracts which was followed by oilseeds and food grains. Before the Second World War, a large number of commodity exchanges trading
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futures contracts in several commodities like cotton, groundnut, groundnut oil, raw jute, jute goods, castor seed, wheat, rice, sugar, precious metals like gold and silver were flourishing throughout the country. During the Second World War futures trading was prohibited. After independence, especially in the second half of the 1950s and first half of 1960s, commodity futures trading again picked up. However, due to shortage during the early and mid-sixties futures trading in most of the commodities was prohibited. Commodity market is an important constituent of the financial markets of any country. It is the market where a wide range of products, viz., precious metals, base metals, crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It is important to develop a vibrant, active and liquid commodity market. This would help investors hedge their commodity risk, take speculative positions in

commodities and exploit arbitrage opportunities in the market. A commodity futures market (or exchange) is, in simple terms, defined as a public market where commodities

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are contracted for purchase or sale at an agreed price for delivery on a specified date. This purchase or sale of commodities must be made through a broker who is a member of an organized exchange and the purchase should be made under the terms and conditions of a standardized futures contract. Market is a place where buyers and sellers meet to transact a business i.e., for exchange of goods or services for a consideration, which is usually money. Markets are usually and traditionally at a place or location, where buyers and sellers could meet. However, in modern world, buyers and sellers on telephone lines or on internet can transact the business. Hence, in today's world markets need not exist in physical form as long as the exchange of goods or services takes place for a consideration. therefore logically a market Commodity market is where commodities or

commodity derivatives are bought or sold for a consideration. It is thus an important constituent of the financial system for any country. Existence of a vibrant, active and liquid

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commodity market is normally considered as a healthy sign of development of any economy. Commodity markets quite often have their centers in developed countries though the primary commodities in many cases are produced in developing countries. Birth and growth of transparent commodity market is thus a sign of development of an economy. This has particular significance in case of countries like India, which produce agri-products as well as a number of other basic commodities, which are traded on commodity exchanges world over. Commodity futures in particular help price discovery and assist investors in hedging their risks by taking positions in commodities and exploiting arbitrage opportunities in the market. Thus, commodity derivatives play a pivotal role in the price-risk management process especially in any agricultural surplus country. There are varieties of hedging instruments such as forwards, futures, swaps, options and exotic derivative products are extensively used in the global market, however, Indian market is limited to commodity futures only.

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In India equity trading had always been one of the greatest boosters. But, now a days because of peoples affection towards gold and silver even commodity trading has been increasing. This brings itself to around 3 times the volume of equity traded. Further, the conclusions may hold true in future only if the macro- and micro-economic conditions and drivers that influenced the historical data available continue to exist.

Literature Review: Commodities future trading was evolved from need of assured continuous supply of seasonal agricultural crops. The concept of organized trading in commodities evolved in Chicago, in 1848. But one can trace its roots in Japan. In 19th century Chicago in United States had emerged as a major commercial hub. So that wheat producers from Mid-west attracted here to sell their produce to dealers & distributors. Due to lack of organized storage facilities, absence of uniform weighing & grading mechanisms producers often confined to
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the mercy of dealers discretion. These situations lead to need of establishing a common meeting place for farmers and dealers to transact in spot grain to deliver wheat and receive cash in return. Gradually sellers & buyers started making commitments to exchange the produce for cash in future and thus contract for futures trading evolved; Whereby the producer would agree to sell his produce to the buyer at a future delivery date at an agreed upon price. Trading of wheat in futures became very profitable which encouraged the entry of other commodities in futures market. This created a platform for establishment of a body to regulate and supervise these contracts. Thats why Chicago Board of Trade (CBOT) was established in 1848. In 1870 and 1880s the New York Coffee, Cotton and Produce Exchanges were born. Agricultural commodities were mostly traded but as long as there are buyers and sellers, any commodity can be traded. In 1872, a group of Manhattan dairy merchants got together to bring chaotic condition in New York market to a system in terms of storage, pricing, and transfer of agricultural products.

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The largest commodity exchange in USA is Chicago Board of Trade, The Chicago Mercantile Exchange, the New York Mercantile Exchange, the New York Commodity Exchange and New York Coffee, sugar and cocoa Exchange. Worldwide there are major futures trading exchanges in over twenty countries including Canada, England, India, France, Singapore, Japan, Australia and New Zealand.

Commodity derivatives play a pivotal role in the price risk management process especially in any agricultural surplus country. As unique hedging instruments derivatives such as forwards, futures, swaps, options and exotic derivative products are extensively used in the global market. However, Indian market is limited to commodity futures only. The present study is an investigation into the present status,

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growth constraints and developmental policy alternatives for commodity futures markets in India. The study has surveyed the various publicly available websites of recognized commodity exchanges and their organizational and the regulatory set up for futures trading. Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are the best option. Till some months ago, this wouldn't have made sense. For retail investors could have done very little to actually invest in commodities such as gold and silver -- or oilseeds in the futures market. This was nearly impossible in commodities except for gold and silver as there was practically no retail avenue for punting in commodities. The gradual evolution of commodity markets in India has been of great significance for both the countrys general economic prosperity and the financial sector in particular. From an investment standpoint, a commodity is considered as an

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alternate asset class and investing in commodity futures is appealing to investors as commodities have a significantly lower degree of association with other traditional asset classes and offer an effective hedge against inflation. Besides being a unique hedging instrument, it also provides for efficient portfolio management arising from diversification benefits, which result in improved returns to domestic as well as international investors.

Participants of Commodity Market There are three participants in the commodity markets are hedgers, speculators and arbitragers. 1. Hedgers: producers-farmers, consumers-refineries, food processing companies. 2. Speculators: brokerage houses, retail investors, people involved in commodity spot trading. 3. Arbitrageurs: brokerage houses, people trading in commodity spot markets, warehousing companies

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A Hedger can be Farmers, manufacturers, importers and exporter. A hedger buys or sells in the futures market to secure the future price of a commodity intended to be sold at a later date in the cash market. This helps protect against price risks. The holders of the long position in futures contracts (buyers of the commodity), are trying to secure as low a price as possible. The short holders of the contract (sellers of the commodity) will want to secure as high a price as possible. The commodity contract, however, provides a definite price certainty for both parties, which reduces the risks associated with price volatility. By means of futures contracts, Hedging can also be used as a means to lock in an acceptable price margin between the cost of the raw material and the retail cost of the final product sold. Someone going long in a securities future contract now can hedge against rising equity prices in three months. If at the time of the contract's expiration the equity price has risen, the investor's contract can be closed out at the higher price. The opposite

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could happen as well: a hedger could go short in a contract today to hedge against declining stock prices in the future. Other commodity market participants, however, do not aim to minimize risk but rather to benefit from the inherently risky nature of the commodity market. These are the speculators, and they aim to profit from the very price change that hedgers are protecting themselves against. A hedger would want to minimize their risk no matter what they're investing in, while speculators want to increase their risk and therefore maximize their profits. In the commodity market, a speculator buying a contract low in order to sell high in the future would most likely be buying that contract from a hedge selling a contract low in anticipation of declining prices in the future. Unlike the hedger, the speculator does not actually seek to own the commodity in question. Rather, he or she will enter the market seeking profits by off-setting rising and declining prices through the buying and selling of contracts. LONG HEDGER Secure a price now to protect against future rising prices Secure a price now in anticipation of rising prices

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SHORT Secure a price now to protect against future declining prices Secure a price now in anticipation of declining prices A central idea in modern economics is the law of one price. This states that in a competitive market, if two assets are equivalent from the point of view of risk and return, they should sell at the same price. If the price of the same asset is different in two markets, there will be operators who will buy in the market where the asset sells cheap and sell in the market where it is costly. This activity termed as arbitrage, involves the simultaneous purchase and sale of the same or essentially similar security in two different markets for advantageously different prices. The buying cheap and selling expensive continues till prices in the two markets reach equilibrium. Hence, arbitrage helps to equalize prices and restore market efficiency. Since the cash and futures price tend to move in the same direction as they both react to the same supply/demand factors, the difference between the underlying price and futures price is called as basis. Basis is more stable and predictable than the movement of the prices

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of the underlying or the Futures price. Thus, arbitrageur would predict the basis and accordingly take positions in the cash and future markets. History of evolution of commodity market Commodity markets of World: Some of the exchanges of the world are: 1. Global Commodity Exchanges New York Mercantile

Exchange (NYMEX) 1. London Metal Exchange (LME) 2. Chicago Board of Trade (CBOT) 3. New York Board of Trade (NYBOT) 4. Kansas Board of Trade Winnipeg Commodity Exchange, 5. Manitoba Dalian Commodity Exchange, 6. China Bursa Malaysia Derivatives exchange 7. Singapore Commodity Exchange (SICOM) 8. Chicago Mercantile Exchange (CME), 9. US London Metal Exchange 10. 11. Tokyo Commodity Exchange (TOCOM) Shanghai Futures Exchange
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12. 13.

Sydney Futures Exchange London International Financial Futures and Options

Exchange (LIFFE) 14. 15. Dubai Gold & Commodity Exchange (DGCX) Dubai Mercantile Exchange (DME), (joint venture

between Dubai holding and the 16. New York Mercantile Exchange (NYMEX))

India and the commodity market The history of organized commodity derivatives in India goes back to the nineteenth century when Cotton Trade Association started futures trading in 1875, about a decade after they started in Chicago. Over the time derivatives market developed in several commodities in India. Following Cotton, derivatives trading started in oilseed in Bombay (1900), raw jute and jute goods in Calcutta (1912), Wheat in Hapur (1913) and Bullion in Bombay (1920). However many feared that derivatives fuelled unnecessary speculation and were detrimental to the healthy functioning of the market for the underlying commodities, resulting in to banning of

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commodity

options

trading

and

cash

settlement

of

commodities futures after independence in 1952. The parliament passed the Forward Contracts (Regulation) Act, 1952, which regulated contracts in Commodities all over the India. The act prohibited options trading in Goods along with cash settlement of forward trades, rendering a crushing blow to the commodity derivatives market. Under the act only those associations/exchanges, which are granted

reorganization from the Government, are allowed to organize forward trading in regulated commodities. The Central Government- Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution- are the ultimate regulatory authority. After Liberalization and Globalization in 1990, the Government set up a committee (1993) to examine the role of futures trading. The Committee (headed by Prof. K.N. Kabra) recommended allowing futures trading in 17 commodity groups. It also recommended strengthening Forward Markets Commission, and certain amendments to Forward Contracts (Regulation) Act 1952,

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particularly allowing option trading in goods and registration of brokers with Forward Markets Commission. The

Government accepted most of these recommendations and futures trading was permitted in all recommended commodities. It is timely decision since internationally the commodity cycle is on upswing and the next decade being touched as the decade of Commodities. Commodity exchange in India plays an important role where the prices of any commodity are not fixed, in an organized way. The trading from April 2007 to March 2010 in units is given below:

Source: www.mcx.com Major regional commodity exchanges in India

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1. Batinda Commodity and Oil Exchange Ltd. 2. The Bombay Commodity Exchange 3. The Rajkot Seeds Oil and Bullion Merchat 4. The Kanpur Commodity Exchange 5. The Meerut Agro Commodity Exchange 6. The Spices and Oilseeds Exchange (Sangi) 7. Ahmadabad Commodity Exchange 8. Vijay Beopar Chamber Ltd. (Muzaffarnagar) 9. India Peppers and Spice Trade Association ( Kochi ) 10. 11. 12. 13. 14. Rajdhani Oils and Seeds Exchange ( Delhi ) The Chamber Of Commerce (Hapur) The East India Cotton Association (Mumbai) The Central Commercial Exchange ( Gwalior ) The East India Jute & Hessian Exchange Of India

(Kolkata) 15. 16. 17. 18. First Commodity Exchange Of India ( Kochi ) Bikaner Commodity Exchange Ltd. ( Bikaner ) The Coffee Future Exchange Ltd. ( Bangalore ) E Sugar India Ltd. (Mumbai)

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Present commodity market in India Today, commodity exchanges are purely speculative in nature. Before discovering the price, they reach to the producers, end users, and even the retail investors, at a grassroots level. It brings a price transparency and risk management in the vital market. By Exchange rules and by law, no one can bid under a higher bid, and no one can offer to sell higher than someone else lower offer. That keeps the market as efficient as possible, and keeps the traders on their toes to make sure no one gets the purchase or sale before they do. Since 2002, the commodities future market in India has experienced an unexpected boom in terms of modern exchanges, number of commodities allowed for derivatives trading as well as the value of futures trading in commodities, which crossed $ 1 trillion mark in 2006. In India there are 25 recognized future exchanges, of which there are four national level multi-commodity exchanges. After a gap of almost three decades, Government of India has allowed forward

transactions in commodities through Online Commodity

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Exchanges, a modification of traditional business known as Adhat and Vayda Vyapar to facilitate better risk coverage and delivery of commodities. The four exchanges are: i. National Commodity & Derivatives Exchange Limited (NCDEX), Mumbai. ii. Multi Commodity Exchange of India Limited (MCX), Mumbai. iii. National Multi- Commodity Exchange of India Limited (NMCEIL), Ahmadabad. iv. Indian Commodity Exchange Limited (ICEX), Gurgaon.

NCDEX (National Commodity & Derivates Exchange Ltd.) NCDEX is a public limited co. incorporated on April 2003 under the Companies Act 1956; it obtained its certificate for commencement of Business on May 9, 2003. It commenced its operational on Dec 15, 2003. Promoters shareholders are: Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India (NSE) other shareholder of NCDEX are:

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Canara Bank, CRISIL limited, Goldman Sachs, Intercontinental Exchange (ICE), Indian farmers Fertilizer Corporation Ltd (IFFCO) and Punjab National Bank (PNB). NCDEX is located in Mumbai and currently facilitates trading in 57 commodities mainly in Agro product.

MCX (Multi Commodity Exchange of India Ltd.) Headquartered in Mumbai, MCX is a demutualised nationwide electronic commodity future exchange. Set up by Financial Technologies (India) Ltd. permanent recognition from government of India for facilitating online trading, clearing and settlement operations for future market across the country. The exchange started operation in Nov, 2003. MCX equity partners include, NYSE Euronext,, State Bank of India and its associated, NABARD NSE, SBI Life Insurance Co. Ltd., Bank of India, Bank of Baroda, Union Bank of India, Corporation Bank, Canara Bank, HDFC Bank, etc. MCX is well known for bullion and metal trading platform.

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NMCE (National Multi Commodity Exchange of India Ltd.) NMCE is the first demutualised electronic commodity exchange of India granted the National exchange on Govt. of India and operational since 26th Nov, 2002. Promoters of NMCE are, Central warehousing corporation (CWC), National Agricultural Cooperative Marketing Federation of India (NAFED), Gujarat Agro-Industries Corporation Limited (GAICL), Gujarat state agricultural Marketing Board (GSAMB), National Institute of Agricultural Marketing (NIAM) and Neptune Overseas Ltd. (NOL). Main equity holders are PNB. The Head Office of NMCE is located in Ahmadabad. There are various commodity trades on NMCE Platform including Agro and nonagro commodities.

ICEX (Indian Commodity Exchange Ltd.) ICEX is latest commodity exchange of India Started Function from 27 Nov, 09. It is jointly promote by India-bulls Financial Services Ltd. and MMTC Ltd. and has Indian Potash Ltd. KRIBHCO and IFC among others, as its partners having its

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head office located at Gurgaon (Haryana). BSE is also planning to set up a Commodity exchange.

Findings: Commodity futures markets are the strength of an agricultural surplus country like India. Commodity exchanges play a pivotal role in ensuring stronger growth, transparency and efficiency of the commodity futures markets. This role is defined by their functions, infrastructure capabilities, trading procedures, settlement and risk management practices. However, Indian commodity exchanges are still at a nascent stage of development as there are numerous bottlenecks hampering their growth. The institutional and policy-level issues associated with commodity exchanges have to be addressed by the government in coordination with the FMC in order to take necessary measures to pave the way for a significant expansion and further development of the commodity futures markets. Some of the major problems

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associated with commodity markets in India are discussed below:

Infrastructure: The lack of efficient and sophisticated infrastructural facilities is the major growth inhibitor of the Indian commodity futures markets. Though some exchanges occupy large premises, they are deficient in terms of the necessary institutional infrastructure, including warehousing facilities, independent and automated clearing houses, transparent trading platforms, etc. Trading System: Though the operations of national exchanges are carried out through the electronic trading system, a majority of the regional exchanges continue to trade via the open outcry system. In order to attract a greater number of investors towards sector-specific commodities, regional exchanges must introduce the electronic trading system to assure the investors of transparency and fairly priced commodities.

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Broking Community: Though a large number of members exist in the exchanges records, most of them are not involved in trading due to the fact that the business is not highly profitable in comparison to equities. Therefore, it is important to absorb a large number of broking firms that have diversified into stock broking and other related businesses. To attract active traders to commodity futures, the regulatory authority needs to introduce a more stringent code of conduct in setting standards for brokers, imposing capital adequacy norms, defining qualification criteria, etc.

Controlled Market: Price variability is an essential precondition for futures markets. Any deviation in the market mechanism or where the free play of supply and demand forces for commodities does not determine commodity prices will dilute the variability of prices and potential risk. For a vibrant futures market, it is imperative that commodity pricing must be left to market forces, without monopolistic government control. However, in India, scores of commodities

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in which futures trading is permitted are still protected under the ECA, 1955.

Integration of Regional and National Exchanges: From a wider standpoint, it is essential to integrate the regional exchanges with the national exchanges to achieve price discovery for regional exchanges to be driven by broad-level prices prevailing at the national exchanges. Secondly, this

integration will facilitate the creation of more efficient markets as price discovery will become dependent on domestic demand and supply of commodities.

Integration of the Spot and Futures Markets: The integration of the spot and futures market is another critical factor for the expansion of the commodity futures market in India. The spot market in commodities is largely controlled by the state governments. Restrictions exist on stockholding, turnover, and movement of goods, and variations persist in the level of duties levied by the different state governments.

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In spite of these constraints, Foreign Institutional Investors (FIIs), mutual funds and banks may soon become active participants in the Indian commodity derivatives markets. The Reserve Bank of India (RBI), along with the Ministry of Finance and Consumer Affairs, is considering a proposal to grant permission to overseas institutional investors to hold stakes in the Indian commodity derivatives markets (Business Line, 23 February 2005). If these institutional investors are permitted to operate in the Indian commodity derivatives markets, they could provide for the much required breadth and depth to these markets. Moreover, since such a move would warrant the convergence of the commodity derivatives markets with the financial derivatives markets, the commodity derivatives markets could reap better gains.

Methodology Methodology can be considered as the backbone of any project work. Methodology refers to the scientific methods

50

used in the project for the purpose of investigation and research. Thus one can visualize the potential of Indian

commodity exchanges to become a global hub for futures trading with the expected turnover of this segment outgrowing the stock market within a few years to come. It is a conceptual research fully based on abstract ideas, concepts or theory. It results in the development of new concepts or reinterpretation of existing one. Tools of Data Collection: 1. Primary Data: - Data collected for very first time for analysis is primary data.Since the primary data is not required in this project it is not collected. 2. Secondary Data: -Data that already exists is known as secondary data.

It provides a starting point for the project and offers the advantages of low cost and ready availability. The

secondary data is collected from various books like NCFM Commodity Dealer Module- NSE India and Diploma in Commodities Trading (DITC) -By Welingkar Institute of

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Management Development & Research and for getting knowledge of current scenario of commodity market over the entire world and in India different sites are used like. Discussion What makes commodity trading attractive? A good hedge against any downturn in equities or bonds as there is A good low-risk portfolio diversifier A highly liquid asset class, acting as a counterweight to stocks, bonds and real estate. Better risk-adjusted returns. High co-relation with changes in inflation. Investors can leverage their investments and multiply potential earnings. Less volatile, compared with, equities and bonds. Little correlation with equity and bond markets. No securities transaction tax levied. Conclusion:

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A beginning has been made towards transforming the Indian commodities sector, from its current status of being a price taker to a price setter, with the national online commodity futures exchanges taking the lead. These exchanges are offering the benefits of liberalization and globalization directly to the industry and consumers by empowering them to influence the global prices of commodities they deal in. It is time the markets were made much more vibrant and efficient by allowing participation of a larger number of new categories of economic stakeholders and introduction of innovative derivative instruments. This is to plug risks at the roots rather than when they finally sneak into the prices of end products. And this will make the Indian markets a force to reckon with on the global commodity map, turning them in to a price-setter indeed. Commodity market prices can fluctuate wildly depending on the factors, which are sometimes beyond human control (floods, storms, natural calamities like earthquakes, etc. can create temporary shortages of commodities and hence result

53

in drastic changes in their prices in a very short time). Forward or futures trading involve a passage of time between entering into a contract and its performance making thereby the contracts susceptible to risks, uncertainties, etc. Hence, it is necessary that the investors/players in the commodity markets understand the functioning of commodity markets; mechanism of commodity Exchanges properly and studies the factors that can affect the commodity prices carefully. Acknowledgement: Author is thankful to the organizations that provide data for the current paper. References 1. Parija, Pratik (2007). India to Set Commodity Exchange Investment Limits by Year-End, 25 September, 20-23. 2. Tomek, WG and Peterson, HH (2001). Risk management an agricultural markets: A review, The Journal of Futures Markets, Vol. 21(10), 953-985. 3. Kabra, K. N (2007). Commodity Futures in India, Economic Political Weekly, March 31st.

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4. Sahadevan, K.G (2002). Risk management in agricultural commodity markets, A study of some selected commodity futures, Working Paper Series: 2002-07, IIM, Lucknow. 5. Mishra, Alok Kumar: Commodity Futures Markets in India: Riding the Growth Phase, Evalueserve-Your Global

Knowledge Partner, source: ASSOCHAM White Paper.

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Pravash R. Mohapatra Dean and Associate Professor of Finance PJCMT, Bhubaneswar, Orissa

Change Management: The Driving Force of Growth

Abstract

Making changes to improve the overall success of a business need to be appreciated. It can accelerate the achievement of goals, mission and vision of an Organization. Although it takes a lot of time, dedication, money, and other inputs to alter the way a business functions. It is essential to maintain the competitive edge of a business firm. Very soon R&D may be placed in the primary activity segment of the supply chain, and will not be there as another supporting activity. Overhauling of the organizations need to be done at a regular interval to maintain the competitive edge in the highly complex and volatile global business scenario. When done properly, changes
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can lead to greater production, happier employees, superior quality, and a better bottom line otherwise it can harm customer relationships, frustrate employees, reduce quality, and hurt the bottom line. The difference commonly isnt a matter of whether the change was good or not, but is instead the way that the change was put into place. Even the simplest and most reasonable change cannot function if it has not been added to the companys function in a practical and meaningful way. It is therefore the responsibility of an Organization, not only to choose which changes are needed in order to improve its overall function, but also how and when it should take place. Solutions that focus on identifying, mitigating, and communicating how any business transformation (Metamorphosis) initiative will impact and affect the people, processes, and organization. In addition, Change Management addresses performance, attitude, and behavioral Issues, while helping the users overcome the resistance to change. This "soft" area often scares people away, but anyone who has done a major implementation of a complex project will tell you the importance of this. Every constituent has a WIIFM (What's In It For Me) attitude.

Key Words: Six Sigma, Soft Area, WIIFM, Transformation, Metamorphosis, Kanban, Kaizen, Six Sigma, TQM
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Introduction The butterfly wonders in disbelief saying I was just another caterpillar before the change process (metamorphosis) and remembered that I was inside a cocoon. That is what can happen to an organization after successful planning and implementation of the change process- Change Management. Rationalization, keeping up to date with time is the mantra for success, be it for a product or service, portfolios, an individual firm or industry. Change is inevitable; hence one will have to go through it. This process can make a firm positioned in a better place to get better result. Scientific preparation is require for that. A proactive approach to the changing phase yields in better outcome than a reactive one. Many of the large consulting companies have build competencies in this area i.e. PWC, E&Y, Accenture etc. Traditionally changes are considered as revolutionary change and evolutionary change. The later one is almost like watching the grass grows, while the former calls for rapid action. Yet change management is an area often overlooked across the board of many organizations. Though this "soft" area scares people away, yet its importance cannot be ignored across the rank and file of all the functional area of management. Be it the
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implementation of a complex project or successfully regaining the market share. Simply it affect everybody and everything from cabbage to king. In the process of implementation, every constituent has a WIIFM (What's in it for me) attitude, and employees see the project through the impact that it has on them. Change management is a broad spectrum of processes and professional specialties aimed at successfully introducing change. These are not "soft skills" with merely subjective outcomes: the results of successful change management can be easily measured, in the satisfaction of customers, speed of delivery of a particular action or service, or time to market. The introduction of lean manufacturing, 360 feedback, executive coaches, Six Sigma, CRM, just-in-time supply and manufacturing processes such as KANBAN and KAIZEN, Total Quality Management, or enterprise applications such as SAP, all require effective organizational change in their implementation and realization. The planning of a major programme of change is crucial to its success: the consideration of all possible ramifications to a proposed initiative, the development of a plan for information and re-education, and a map for ongoing monitoring of the new environment. The importance of achieving the CoE (Center of Excellence) strategically by not only managing the change but also to understand the tangible deliverables of an organizational change management plan.

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Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. A somewhat ambiguous term, change management has at least three different aspects, including: adapting to change, controlling change, and effecting change.

The Changing Phase

Effecting changes Controlling Changes Adopting to Change

A proactive approach to dealing with change is at the core of all three aspects. For an organization, change management means defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities. Successful adaptation to change is as crucial within an organization as it is in the external environment. Be it political, socio-cultural, technological, economical and physical etc. have enumerable impact on the organization as well as on the
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society. Just like plants and animals, organizations and the individuals in them inevitably encounter changing conditions that they are powerless to control. The more effectively it is being dealt with, the more likely it increases the chance to thrive. Adaptation might involve establishing a structured methodology for responding to changes in the business environment (such as a fluctuation in the economy, or a threat from a competitor) or establishing coping mechanisms for responding to changes in the workplace (such as new policies, or technologies). Terry Paulson, the author of Paulson on Change, quotes an uncle's advice: "It's easiest to ride a horse in the direction it is going." In other words, don't struggle against change; learn to use it to your advantage. Some implementation tools includesImplementation readiness - understanding the implications, creating a strategy, and assessing the leadership readiness to support the change Stakeholder management - identifying the stakeholders, lining up leadership support and change agents, capturing risks and benefits, and building commitment Communication - communication strategy, communication plan (audience, medium, message, frequency ), and execution

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HR strategy - identification of future state and changes (e.g., new skills needed), pay and performance management, competency development, and staffing plan Team effectiveness - clear project charter, shared vision, and understood The Changing Concept

2) In a computer system environment, change management refers to a systematic approach to keeping track of the details of the system (for example, what operating system release is running on each computer and which fixes have been applied). Resistance to change by employees is the most commonly cited reason for business project cost overruns and failure. Change Management is the process of facilitating and accelerating major business initiatives within an organization. This process
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specifically targets the root causes of resistance and provides the necessary strategies and tools needed to communicate and achieve employee acceptance. Companies that implement effective Change Management can dramatically reduce implementation costs and achieve a rapid return on investment. Change Management services build solution-driven roadmaps that assist companies in defining, formulating and executing strategic programs that help energize and motivate people to understand, accept, and take ownership of change. Road Map
Strategy Development Scope Assessment Change Impact Analysis

Strategy Development

Scope Assessment

Change Impact Analysis

Strategy Development

Scope Assessment

Change Impact Analysis

As depicted in the model above, it starts with:- Strategy Development (To actively engage senior management and other key stakeholders), Scope Assessment (To identify those impacted by strategic change), Change Impact Analysis (A change readiness survey of impacted users), Change Impact Matrix (To identify those directly affected and identify specific
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action plans needed to mitigate any negativity), Transformation Plan(To propose a set of activities to address employee acceptance and readiness for change), Communication Strategy (To ensure that a clear and consistent voice keeps infirming and elaborating throughout the change initiative), Communication Plan (To target the key messages that will be delivered to audience groups at critical times), Team Development (To align and enable individuals in teams or on projects to achieve business goals and objectives), Organizational Effectiveness (To facilitate workshops that develop "to-be" processes, organizational structures, and responsibilities). Solutions that focus on identifying, mitigating, and communicating how any business transformation initiative will impact and affect the people, processes, and organization. In addition, Change Management addresses performance, attitude, and behavioral issues, while helping end users overcome their resistance to change. As per Jack Welch, the legendary GE Boss and a pioneer in this field, effective change management is best driven by people in the organization undergoing the change (owners of the particular business process supported where necessary by hands-on specialist practitioners at critical junctures).

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The approach to change management is resource driven, with a track record of delivering successful change in any circumstances. Change management gears Rapid commencement an expert team can be on board within days, and with the minimum of recruitment or termination formalities Rapid results change managers are usually overqualified for the job, and as a result they can 'hit the ground running' An impetus to champion the cause among the existing team To transfer a huge amount of skill and expertise to an internal team To bring more perspective and objectivity to monitor the results To drive through major change that can often be a sensitive issue often best handled by people outside the organization The imposed discipline of a change process to achieve desired results Effective leadership to carry the changes through Making changes to improve the overall success of a company should be applauded. It takes a lot of time, dedication, money, and just plain guts to alter the way a business functions; especially in the case of organizational overhauls such as is the
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case with Six Sigma. When done properly, changes can lead to greater production, happier employees, superior quality, and a better bottom line. However, if not done properly can harm a company with respect to customer relationships, frustrate employees, reduce quality, and hurt the bottom line. The difference commonly isnt a matter of whether the change was good or not, but the way the change was put into place. Even the simplest and most reasonable change cannot function if it has not been added to the companys function in a practical and meaningful way. It is therefore the responsibility of a business to not only choose which changes are needed in order to improve its overall function, but also how and when it should take its place. One of the best ways to discover where the problems may lie is to include the people who will be impacted by the change in the planning and implementation process. For one thing, it is the people who will be taking on the change who will best know how the change will work, and how it can be utilized. Furthermore, it will allow the affected employees to build a trust and a relationship with the management so that they can develop a belief in the change that is coming, and the motivation to make it work. Trust is extremely vital when making a change in a business. When an organization does not have trust, its employees will resist any upcoming changes, making it much more difficult to implement, and can even cause the change to fail. Whether or not the organizations
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management has a high or low level of trust with its employees, one of the determining factors in the success of any changes it makes. It makes the difference between simply adopting a change, and actually adapting to the change to make it work. With trust, the employees will have a willingness to use the change to better their performance, and with it will come greater job satisfaction. With trust, and constant measuring of the performance of the change, a good change can easily become a great change in any business or industry. People who are involved in strategy development should get an appreciation of the organizations business. Executing strategy which involves major change is not only challenging and stimulating but also frustrating. People involved in driving the execution of a change strategy should also get an appreciation. Change strategy execution requires full engagement of the people affected. Leaders who are responsible for executing the change strategy often fail to get that engagement. People who are not engaged and are impacted by the change driven by the strategy may react badly. Disengaged people who are necessary to drive or enable execution are unlikely to be involved enough. Engagement is more than having respect for the people who developed the strategy. Engagement is more than having a good conversation about the strategy. Engagement in the execution of a change strategy is the full involvement in the strategy from understanding through to implementation.
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Engagement has five stages:

Planning Implementation

Caring

Understanding

Belief

Each of these stages must be well executed to translate the strategy into the day-to-day activities. Planning: The preceding stages are about what is in people's minds. However, without planning, the most enthusiastic supporter of the strategy will be ineffective at executing the strategy. Planning to implement a strategy requires some or all of the following activities: Determination of the activities required for implementation. Estimation of the time and resource requirements for each activity. Determination of which activities can be completed in parallel and in sequence. Identification of the risk events that could reduce the effectiveness of implementation. Development of risk treatment plans to reduce the probability or impact of the risk events. Determination of budget and aggregated resource requirements.

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Implementation: Leaders who meet the requirements of the previous stages of engagement are not truly engaged unless they follow all the way through to implementation. They must assemble the right balance of people with the necessary competencies to implement the strategy. There may need to be changes in personnel to ensure the right competencies are available. Implementation needs to be monitored for progress and the risk events identified in planning. Leader's need to measure and report against progress and provide early warning signs for previously identified risk events occurring. Strategies involving major change are high risk and high reward. Leaders involved in the change must be fully engaged to reduce the risk of failure. Somewhere in the organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan their flames. Understanding: Understanding a change strategy is not being able to parrot a PowerPoint presentation bullet point by bullet point. It is being able to understand the context of the environment in which the strategy is developed. It is the ability to extrapolate and interpolate the actions necessary to maintain the strategy as the internal and external environments change.

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People responsible for driving the execution of the strategy must communicate the strategy so that everybody can understand it. This means using most of the following communication devices: One-to one discussions with senior staff to help them "get it" within the context of their department. One-to-many presentations to help the widest group of people possible to begin to understand it. Newsletters to update people, using a combination of text and graphics to meet different communication preferences. Include interviews with people involved in, and impacted by, the change to progressively personalize the strategy. Posters using cartoons or photos in common areas. Change the posters frequently. "Frequently asked questions" with honest answers available in printed form and on a Companys web page. A moderated discussion forum, where a person or group of people to which questions can be sent by email for those people who are reticent to voice their queries personally. Test for understanding on a regular basis by using formal or informal focus groups. Belief and acceptance: Senior leaders, in particular, must believe in and accept the strategy. The measure of their belief and acceptance is their actions, not their words. Frank, inquiring discussions must be had with those leaders who do not display the behaviors expected. They must be informed of the expected behaviors. They must be asked what it is that is
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preventing them from behaving in the expected way. The purpose of this discussion is to find out what it is that is preventing them from acting according to the agreed strategy. More often, it may be some miscommunication or misunderstandings which can be removed, enabling the leader to be involved. Caring: Leaders must care enough about the strategy to give precedence to the actions required to execute the strategy over existing activities. They must allocate resources to the execution of the strategy. For a strategy to be executed there must be consequences for not executing. For the consequences which are fairly triggered there must be measures of progress in execution agreed by senior management. The consequences of not meeting the measures should be significant and known. Historically companies embracing the mechanical approach to business improvement typically did not embrace change management concepts until their projects encountered resistance or faced serious problems during implementation. Even after this realization, many organizations' approach to change management use to be ad hoc and lacked a solid framework for actively managing change through the process. The tendency from an engineer's perspective was to isolate this "people" problem and then eliminate it or design a quick fix for this perceived obstacle to their improvement initiative.
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The other side of the story begins with psychologists. Concerned with how humans react to their environment, the field of psychology has often focused on how an individual thinks and behaves in a particular situation. Humans are often exposed to change, hence psychologists study how humans react to change. With his 1980 publication of Transitions, William Bridges became a predominant thinker in the field of human adaptation to change and his early text is frequently cited in Organization Development books on change management. However, only once or twice in this book does Bridges relate his theory to managing change in the workplace. It was not until later that Bridges began to write a significant body of work related to his theories of change and how they relate to workplace change management. Once the implementation of the change process is started, it should be continued till the review. Because the innovators are members of the community who are just like us, disbelief and resistance are easier to overcome. Resistance to change is natural. The very solidity of habits, processes and structures when theyre competitive and productive can help strengthen an organization. But when an organizations current state impedes its ability to serve the customer, to innovate for the future, or to capitalize on a new initiative, change must happen, and the sooner the better. The new values of business today require a different approach to the
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way businesses change. The response of the employee has shifted from yes, sir to why are we doing that and the change leader must adapt. Like the Kaizen method, (a Japanese philosophy) which says, continuous incremental improvements (Kaizen means continuous, K means literally, kai means change Zen means good or towards perfection) on the other ward keep changing till the attainment of perfection. Bridging the gap between what is happening and what is possible is what change management is all about. As described the Lord Himself Samvabami Yuge Yuge. Reference

1. Best Practices in Change Management. 2. Source: www. Change management.com 3. Proscis Change Management Toolkit 4. Change Management by Pierre Mourier 5. Leading Change. By John P Kotter 6. Managing Transitions: Making the most of Change. By William Bridges 7. Jeff Hiatt, author of Employee's Survival Guide to Change 8. Paulson on Change by Terry Pulson 9. www.change-management.com 10. Tim Creasey, editor for the Change Management Learning Center at
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11. Transitions, by William Bridges 12. Managing at the Speed of Change, by Daryl Conner 13. www. Kaizen.com 14. Six Sigma: Process excellence 15. TQM: Goal formulation and quality up gradation and standardization. 16. Stewardship, by Peter Block

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Sankha Suvra Sanyal

Professor of Management Department of Management University of North Bengal, WB

Indian Management Education: From Here to Where

Abstract Globalization is the new buzzword in the world economy which has created havoc around the globe since the last quarter of the bygone century. It has turned the entire world, literally, into a global village. Though the wave of globalization appeared on the Indian shores only in 1991 much after China and other developing South Asian countries yet it has changed the business environment dramatically in the last two decades. One of the main reasons for this overwhelming success can be attributed to the huge market potential coupled with the worlds second largest human resource base available at very competitive rates. But cheap labor alone cannot ensure a secure market position. What perhaps is required is, technological up gradation to increase productivity and produce better quality products with a well paid, educated and skilled work force.
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Keeping this in view, the government started encouraging higher education in general and management education in particular, to reap the benefits of globalization. We need to focus on imparting management education to the international standards so that they may compete in the global market and become world beaters. This article of mine is a conscious effort to focus on the aforesaid aspects. Keywords: Globalization, India, Management Education, Global Economy Introduction The wave of globalization appeared on Indian shores only in 1991, much after Chinas and some other south East Asian countries such as Malaysia, Singapore and Hong Kong. Nonetheless the Indian economy has broken the shackles of protectionism with great vigor which has led to some positive developments. Globalization has become the buzzword, and there are high hopes for India regarding its role in Global Economy. The term globalization means integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people. Cross border integration can have several dimensions cultural, social, political and economic. Globalization by its definition implies that the integration approaches a singular market system world-wide. Nothing is permanent, except change.

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Globalization in Indian context The fundamental scope of doing business in India is lying with its people. The huge population of India has created a large unsaturated market of consumers as well as cheap labor. But cheap labor alone cannot ensure a secure market position. Technological up gradation to increase productivity and produce better quality products with a well paid, educated and skilled work force is also required. The benefits of globalization accrue to the countries with highly skilled human capital and it is a curse for the countries without such specialized human capital. Developing and in-transition countries are further challenged in a highly competitive world economy because their higher education systems are not adequately developed for the creation and use of knowledge. Converting the challenges into opportunities depend on the rapidity at which they adapt to the changing environment. Keeping this in mind, the economic reform packages were introduced in India in the beginning of 1991 which imposed a heavy compression on the public budgets on education sector, more specifically so on higher education. This has trickled down to public expenditure on education in general, and higher education in particular. Indian government and Indian corporate sector has recognized the importance of management education in the changing global scenario. In view of globalization, many corporate universities, both foreign and Indian, are encroaching upon our government institutions. Our Institutes like IIMs and IITs have
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produced world class professionals. These institutes imparts quality education as per industry expectations and give due importance to Institute Industry Interface. Under the new scenario, GovernmentPrivate partnership is becoming important in Management Education. Now India is a transforming country. We are near to achieve status of developed nation. Management Education in India Today the world has become a global village- Thanks to Globalization. This necessitates increasing interaction among people from diverse cultures, beliefs, and backgrounds. Everyone is now part of a worldwide economy with competition coming from all 360 degrees. Hence, every type of organizations has to become more creative and open to change. Maximizing and capitalizing on workforce diversity has become the key to management effectiveness in these changing times. The management education in India has come a long way. The first Business School in India was IISWBM, Calcutta, established in 1953. The next one being IIM, Calcutta in 1961. Then IIM Ahmadabad in 1962, Department of Business Administration, Delhi School of Economics in 1966, XLRI in 1966 and others followed this. Management education in India is at crossroads and the recent developments of liberalization and globalization have had a considerable impact on management education. The early 90's saw the boom of founding new management schools, most of them in private sector. In the last three years
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alone 400 Business Schools came into being. Few Business Schools have also been established collaborating with some western Universities. Today there are over 1500 management institutions in the country producing over 30,000 full-time management graduates and 10,000 part-time management graduates every year. There is also something called as MBA-Equivalent graduation programs, which comes out of Distance Education Programs of AIMA, Symbiosis and so on. Even some of the leading business houses are establishing their own business schools. The latest one to enter the field is Kirloskar Group with a Business School in Karnataka, Reliance, and IRMA. This mushrooming of Business Schools raises a serious question about the quality of education imparted and the quality of managers which are produced by these institutes. This has become an area of prime concern for the Business School professors that, how to produce good and world class managers with the attributes of increased efficiency and effectiveness, ethics, knowledge having the fluency to apply management concepts, theories and tools. Areas of Concern and how they may be countered The management education system of our country is beset with a host of problems and challenges. The sudden proliferation of management institutions has lead to a considerable decline in the quality of education that is being offered.

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The concept of Management Education needs to be reiterated. Once what was supposed to be an elite item has lost its shine and glamour due to wrong promotion on part of the provider and wrong perception on part of the customer. Today, there are a lot of critical issues which needs to be addressed such as the quality factor of education being impacted by the institute, the quality and competencies of the faculties assigned to take the sessions of these to be managers, the infrastructure being provided to the students, are they conducive to healthy learning or not, do the institutes provide education which can make these students rub shoulders with their global counterparts or not. These are few issues which I feel needs to be addressed as quickly as possible as this is already high time as we are in the cross-roads. Here I believe that the role of regulating bodies such as AICTE and UGC may play a very vital role. Answering this question may lead up to correct promotion of management education on part of the service provider. Students have a wrong perception that if they read and master subjects such as Economics, Organizational Behavior, Finance and Marketing they are sure to be successful in their careers. Let us draw an analogy here. A person working with a microscope in a lab is not a doctor. He is just a technician. A doctor knows something more. Similarly all the subjects that are taught at B-Schools are mere tools of management; even if you master them you are good at tools which make you a technician. To get the real benefit out of management you have to learn to connect all the tools.
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Students increasingly are becoming myopic and look at any problem through a narrow lens. We have to enable students to treat all problems as the organization's problem not unique to a single department and come up with solutions having considered its impact on the society. In order to develop an economy we need thinkers and that is where this field should play its part. We should not look to produce only good managers but nurture an individual and develop him into a leader who stands for integrity and honesty and is empathetic towards the needs of the modern society. This is where the quality of students matters a lot. Today anyone can afford an MBA degree if he has got money otherwise the banks are always there to help them become holders of MBA degrees. By attending lectures for 6 hours they are supposed to be great minds and feel that they deserve to be there. It is what they do for the rest of 18 hours that determine where they end up. Today management education is perceived to be a stepping stone to a huge bank balance and sometimes, unfortunately, even to a huge dowry. Management course doesn't guarantee a huge pay but if done properly can ensure a good career which may lead to a high package. This is the question of the journey versus the destination. If one ensures that he will be proactive in his path he will reach his destination in time, thats a certainty. A good placement should not be a student's main objective; it should be promoted as an outcome of working hard and being dedicated. One needs to remember that profit is never a firm's objective it is the result of some correct decisions taken at the correct time. A firm which grows gets
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profit as a result of growing. Similarly a student's objective should be to develop oneself which might result in a huge bank balance and also fetch him a good dowry. As pointed out above, as the business is getting global, day-byday, there is an increasing need for the colleges to produce global managers. Therefore, it has become necessary that Indian Management education should also become more global or rather the need to internationalize management education. The message is quite clear; the response to the globalization of business is the globalization of management education. The following are the directions in which the Business Schools can focus to make management education global: i. The business schools must admit international students to the program. The Indian management institutes are the only ones with no international participation. ii. The business schools should induct a few international faculties and provide an opportunity to the students to listen about other country's business culture and systems. iii. They should provide an active program of students and faculty exchange with advanced countries. iv. To ensure that at least 25% of the curriculum deals with international subjects like international economics, international marketing, international financial management, etc.
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v. They should collaborate with some well known foreign Business Schools by which Indian students can do part of their education in those institutes. vi. Lastly the Business Schools also collaborate with some foreign placement consultancies to make sure at least some students can attain jobs abroad. Conclusion India's management education is under going a major transition. In India, there is a considerable hope and expectations regarding the value of management education and its potential contributing largely to nation's economic growth. Internationalization, cross cultures, strategic alliances, partnerships, and mergers are the new trends in management education. We need to primarily focus on developing people before developing products. For this not only the mindsets of the students needs to be changed but also a sea of change has to come in the approach by the faculties and young talented minds should be encouraged to take up academics as their profession so that new ideas may be inculcated. In India, there is a considerable hope and expectations regarding the value of management education and its potential contributing largely to nation's economic growth.

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References Banerjee, A, (2010). Impact of Globalization on Business and Management Education Roy, A, (2010). Losing Glamour of Management Education Its real purpose and wrong perceptions Murthy, R, (2011). Facilitating and Support Services in Institutions of Higher of Higher Learning Tripathy, L.K, (2010). A call for flexible HRM practice: To match Impact of Globalization

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Ravi Bhasin, Divya Goel, Vivek Ahuja Amity School of Business, Amity University Uttar Pradesh, Noida, India

Excellence and Effectiveness of Management Education: Issue, Challenges and Opportunities.

Abstract Management education and its effectiveness at individual, group and organizational level are amongst the most important and popular themes of discussion in the recent times. The inputs like
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quality of students, curricula, methodology and experience of the faculty, provides a more relevant and conclusive evaluation in the management education. The emergence of management

education at research, post graduate and graduate level with components of behavioral Sciences like attitude, values,

knowledge, skills, employee satisfaction and experience has made management education and developmental processes very close to each other. The evolving and turbulent nature of the Management educational system had made obvious changes with the time; the intensity of such changes has increased and will increase in the future. The conversion of provider based approach to education to the receiver based approach education is, perhaps the first time we have seen. The increasing number of students and aspirations, greater accountability and acceptability for the providers and reduced funding has made management education more active in decision making and these are of more innovative nature. The behavior of the stakeholders (buyer and suppliers) is changing and requires a significant restructuring of the system.

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The coming decade will witness a significant change in the structure and composition of the management education because of changing demographics and dynamics of business environment which are continuously making market volatile and expanding. The social expectations are on the rise, the introduction of family business management, continental courses, international exposure as an integral part of management education, changes in the use of technology, changes in the competitive strategies and free market systems where cost is the major factor of success will be seen. The challenges from the growing private university system and globalization, demand of management education for working executives, education through satellite, online programme and the responses from the education providers are of different types. Some institutions have started to response on quality and excellence, others have responded by becoming more market driven and issues other than quality. The major aspects which provide opportunities for management education, namely increasing student mobility, globalization, increasing education marketing communication, institutional links, changing

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government policy and academics industry interface. The rationalization of the work force across the globe in the institutes and corporations is another very important and feasible opportunity which will be very clearly visible by 2020.

Corporate clients want to have programs delivered globally. This takes the globalization of post-graduate management education to a new level. Most programs of management education in poor countries/areas tend to replicate management programs from developed countries, and to educate their students in terms more appropriate to prosperous nations of the world, the unkempt applications, therefore, what about the developing parts of the world? What about the local business model? The findings and implications of the study for enhancing management education for poor, developing part of the world, input and final output in the future is pointed out.

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Key Words: Management Education, Institutes, Issues, Challenges, Inputs, Executive Education.

Education in India (An Introduction): Education forms the backbone of a nation and is one of the most important key indicators of a country's growth and development. In fact, the rise of knowledge economy at a global level has once again reinforced education, in all its forms (elementary, secondary, higher, vocational, and adult), as the key economic and business driver. In the past, government was the sole education provider as it was primarily considered a social service. However, with liberalization and globalization of economy, it has become evident in the last decade or so that government alone cannot bear the cost of the education sector. While the private sector has stepped in to fill the gap and has increasingly enhanced its profile
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in education over the last decade, its role is still not properly defined & refined. This has led to a growing debate in recent times on India's Education Policy and the changes required making the education sector more vibrant and flexible to meet the rapidly diversifying needs of our growing economy. Once you start thinking about Indian education, you cannot think of anything else. The subject fills you with awe, wonder, anger, disappointment, hope, despair, and immense sadness. India has an astounding number of schools: more than one million by some estimates. But it is deeply disappointing that over ninety percent of Indias children drop out of school by the time they reach the 12th standard. Of the small percentage that actually go on to college, very few graduate as professionals. It is quite impressive to note that 5, 00,000 graduate out of colleges every year. Yet the

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quality of our colleges is so dismal that only about 15 percent of our graduates are employable. It is sad that after spending nearly 8 percent of GDP in education, the system is a disastrous failure to the vast majority of the people of India. And yet we hear of the immensely successful NRIs who had their undergraduate education in elite institutions such as the IITs. Clearly the system has worked for this tiny minority as spectacularly as the system has been a tragedy for the overwhelming majority. To explain the failure of the system, one has to start at the beginning & emphasize the opportunities & challenges for Indian Education Sector that need to be addressed for catalysing the desired changes in India's Education policy. Structure of Education in India:

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Following two are the main organizations which have been established at the National Level for setting norms and standards and seeing to their observance in the field of higher and technical education. S. No Sector Institution Remarks Established for Quality Standards at National level Universities & University Statutory Grants body General Commission Colleges: (UGC) National -92

Assessment and Accreditation Council (NAAC) 2 Technical & All India Statutory for body Management Council Technical Education: Education (AICTE) National -Board of Accreditation (NAB)

Capacity Building, Premier Institutions Over the decades, the department has also established and substantially funded a number of premier institutions, which have come to acquire a reputation of excellence. Some of these are: Indian Institutes of Technology (IITs)

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Indian Institutes of Management (IIMs) Indian Institute of Science (IISc), Bangalore Central Universities and Technological Universities. Indian School of Mines, Dhanbad Indian Institutes of Information Technology (IIITs) National Institutes of Technology (NITs) The above list does not include premier institutions in the field of medical, agricultural and legal education, which are looked after by other ministries of the government of India. The Private Sector Initiative for Higher Education in India There are a numerous private institutions delivering higher education mushrooming all over, but are they able to maintain the pace and quality? This is the major concern governing the quality of education delivery in professional courses. As the education sector in India has taken the shape of a profitable industry, the race towards profit maximization creates possibility of certain gaps in quality and content in education.

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Objective of the study To understand the factors which are required for sustainable management education in India. Methodology for the study The study is based on secondary sources of information; factors which are discussed for sustainable development may represent differences amongst different individuals because of different values, attitude, perception and biases for factors taken.

Factors for sustainable management education in India Theoretical vs. practical orientation of education system: Indian management education sector need changes to convert our education into more real learning rather than theory. Economy growth indicates need for new courses with a practical orientation rather than theoretical ones. Most of the foreign universities are providing practical directions to students and India need to tackle this if we want to reduce brain drain problem.

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Online Education/Executive/Distance Learning Education: This area is not seriously looked into by us. Online education is limited to few universities & few areas in India. Also our distance education courses are limited by the land boundaries & we have no foreign students for our distance education or online courses. Foreign universities are much ahead in this area & not to our surprise many foreign universities are very easily getting a good number of Indian students in their online /distance education. Student: Teacher Ratio: Another challenge for India is student: Teacher Ratio (STR) which is comparatively more in India and need to be addressed. Average Student: Teacher ratio is 40:1 in India. However this figure is quite less with 15:1 in foreign universities. This higher STR indicates that the utilization of the educational facilities has also increased. The increased enrolment at various levels also underscores the need for opening of a greater number of educational institutions for improving the quality of education. Course Curriculum & its upgradation: The course curriculum at various levels of education is not flexible & changing according to

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the changes in market, economy & technology. The curriculum lacks dynamic changes which lead to sometimes obsolete syllabus. However, the curriculum is revised & updated on a regular basis in foreign universities in line with the need of the market & industry. Examination system: Our students are tied in the vicious circle of memorization & cramming rather than deep understanding because of the examination system which needs to be changed. Many private and foreign universities have grading system & examination system is not annual but frequent exams are taken which helps in lessening the burden of memorization for the students. Innovative facilities: India lacks in this area as in comparison to foreign universities. India does not provide/ provide facilities like student insurance, scholarship, recreational activities, earn while learn etc. at a very low level which is required to survive in this competitive era. Quality: The challenge of quality in Indian education has many dimensions, e.g. providing adequate physical facilities and
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infrastructure, making available adequate teachers of requisite quality, effectiveness of teaching-learning processes, attainment levels of students, etc. Besides the need to improve quality of our educational institutions in general, it is also imperative that an increasing number of them attain world-class standards and are internationally recognized for their quality. Relevance: Education in India needs to be more skill-oriented both in terms of life-skills as well as livelihood skills. In sheer numerical terms, India has the manpower to substantially meet the needs of a world hungry for skilled workers, provided its education system can convert those numbers into a skilled workforce with the needed diversity of skills. Management: Management of Indian education needs to build in greater decentralization, accountability, and professionalism, so that it is able to deliver good quality education to all, and ensure optimal utilization of available resources. Lack of Research/Consultancy Initiatives: Most of our

management education providers are not focused on the research

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and consultancy part, these are as important as teaching assignments. Major Findings Regulatory and basic mechanisms are not adequate for effective and sustainable development in management education. Quality of education is not a concern for most of the providers. The infrastructure, faculty and proportionate to the fee charged. other facilities are not

No major emphasis on the value research, profits through business model is more effective.

Conclusion The operative word for the required changes is competitive competition must not merely be allowed in the private education sector, it must be actively encouraged. Only through the forces of competition would the immense task of making education available and affordable to all be accomplished. To survive in a competitive environment, private sector firms are forced to innovate. The educational sector is ripe for innovation. Innovation
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is required to survive in this competitive era and we have to understand the need & provide various facilities like student insurance, scholarship, recreational activities, earn while learn, use of information and communications technology (ICT) tools and like. Apart from these issues, India definitely has various advantages in terms of availability of human resources, cost factor & potential in this sector. Since many people are looking for quality education elsewhere which if provided in India, we can get revenue & stop brain drain problem. There is huge potential for commercial gains in India and at the same time, there is the opportunity to do well. We are only constrained by our imagination.

References Strategic Management, concepts and cases; Thompson, Strickland; Twelfth Edition, Tata McGraw Hill Publishing company Limited .International Business, Jastin Paul; Third Edition, PHI Beri, G.C., (2003), Marketing Research, New Delhi: Tata McGraw Hill.
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AICTE, (2003), Report of the Management Education Review Committee, AICTE, New Delhi. Malhotra, N.K., (2001), Marketing Research, New Delhi: Research Education India.

Ministry of HRD, Report and Recommendations of the committee, 1992, New Delhi.

Websites like www.ugc.ac.in, www.amity.edu.

AICTE, (2003), Report of the Management Education Review Committee, New Delhi.

AIMA, (2009), Report on Management Education, New Delhi.

Wendell L. French, Organizational Development, PHI, Fifth Edition, 2001.

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Various websites of management institutes in India like IIMs and IITs and newspapers articles and updates. Hertzberg F., Mausner, B., Peterson, R.O. Capwell, D.F. (1957), Job Attitudes: Review of Research and Opinion. Pittsburg:

Psychological Service of Pittsburg. Admission Brochures of various Management Institutes in India.

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Dr Suchismita Sengupta Professor, AMS Institute of Management and Research, Ghatkoper, India

Balanced Scorecard: A Revolutionary Business Strategy or a Mere Performance Measurement Tool- A Study on Few Selected Public Limited Companies in India
ABSTRACT This paper is an attempt to explore the innovative performance measurement practices by few Indian Public Limited Companies towards building long term sustainable competitive advantage. The objective of the research is to understand and evaluate the existing PM system of the companies and to assess their individual strengths and weaknesses and their impact on companys growth and thereby suggesting some good practices which is applicable and effective in various situations towards achieving the long term objective and goal of the organization.

A structured questionnaire had been administered to collect data. Primary data was also collected by arranging telephonic interviews with the top corporate executives and both
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qualitative and quantitative techniques are employed for analyzing the data. The specific methods of data analysis include descriptive statistics such as tabulation, cross tabulation, computations of frequencies, computations of percentages, computation of mean score and standard deviation as well as correlation and regression analysis.

The result suggests that non-financial measures are significant explanatory factors of financial performance. More importantly, findings show that companies that consistently employed both financial and non-financial measures performed much better than those who do not. The result shows that organizations approach towards the use of performance measurement system over the last five years is gaining increasing focus and significant emphasis and the performance measurement system is perceived as key managerial control of the organization towards achieving its long term goal. The selected companies in various sectors are using various financial and non-financial performance measurement systems.

The study reveals that Balanced Scorecard has received increasing attention in many industries like Banking,
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Pharmaceuticals, Healthcare, Hospitality, Manufacturing not as a mere performance measurement tools but as a corporate strategy. The study shows that Balanced Scorecard is one of the revolutionary innovative strategies rather than a mere performance measurement tool which can transform corporate practices into its long term growth and success.

Key Words: Innovative Performance Measurement Practices, Balanced Scorecard, Corporate Strategy, Non-Financial Measures, sustainable competitive advantage 1. Introduction World class organizations, whether public or private, have introduced various performance measurement systems to realize the ultimate goal of organisation by increasing effectiveness and efficiency of their programs, processes, and people and thereby increasing the quality of products and services. These leading organizations are keen to determine the indicators that would be very useful to measure their progress in meeting strategic goals and objectives by collecting and analysing performance data, and finally its utilization towards value additions in their organization by successfully translating their strategies into action.

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With the help of its effective performance measurement system, a high-performance organization can remain competitive in the long run; all the leading high performance organizations are greatly concerned with developing and deploying effective PMS for their organizations. A major reason of companies getting into conflict in evaluating performance as the evaluation process is primarily based on cost and efficiency whereas there are many more criteria to judge performance (Skinner, 1971). The above statement suggests that, one of the key limitations of the performance measurement systems used by many firms is that they have traditionally adopted a narrow, or unidimensional, focus. Kaplan and Norton (1992), and various other authors have argued that a firm can overcome this problem by adopting a balanced set of measures. According to Kaplan and Norton (1992), such an approach helps managers to seek four fundamental questions: How do we lean on our shareholders (financial perspective)? What must we outrival at (internal business perspective)? How do the customers perceive us (the customer perspective)? How can we continue to improve and create value (innovation and learning perspective)? (Andy Neely, et al. 2000)

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The success and growth of the companies depend on their performance i.e. how they transform their objectives and strategies into action and thereby the actions into success. Every activity of every person of every department of every organization contributes to the companys objective and thereby its overall success and growth. Good managers keep track of the performance of the system by means of performance measurement (Flapper et el 1996). Performance Measurement is the process of quantifying the efficiency and effectiveness of actions and a performance measure is a metric to quantify the efficiency and effectiveness of an action and a performance measurement system is the set of metrics to quantify the efficiency and effectiveness of actions (Neely et al-1995)

1.1 Background and motivation of the Research Initiative:Most of the empirical literature on corporate performance measurement has concentrated on one particular performance tools in India. A very few studies have been carried out where various PM tools are compared and evaluated to identify their internal strengths and weaknesses. Apart from this comparison issue, there has been a very little work on sector-wise study or business group level research in the area of performance measurement. Our primary focus
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has been the performance of Indian firms in a group. While we provide some preliminary analysis of group performance, an interesting topic for future research is to more fully explore the cross-sectional variation of the performance of Indian business groups as a function of group characteristics. (Khanna and Palepu, 2000). In the light of above discussion we may conclude that following reasons have provided the motivation and background of this research initiative. 1. Limited research in this area in developing and emerging economy. 2. Inadequate research in the area of performance measurement practices of Indian companies and their impact on companys performance and growth. 3. Limited research exploring economic performance of companies for long time growth perspective. 4. Very few studies have been carried out where various Performance Measurement tools are compared and evaluated. 5. Inadequate work on sector-wise study or business group level research in the area of Corporate Performance Measurement.

1.2 Objectives of the study

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The

study

aims

at

examining

various

performance

measurement practices in selected public limited companies in India and identifying to what extent they use the integrated performance measures, their extent of utilization and perceived relevance related to their actual financial results. In this regard an integrated model such as the Balanced Score Card (BSC) approaches (financial, customer satisfaction, internal process/operational and employee satisfaction measures) has been taken as reference for the study. The main objectives of the research are as follows: (a)To study the existing performance measurement systems of various leading public limited companies in India and understand the various measurement tools used by them and reason for using them. (b) To identify the innovative performance measurement practices by the Indian companies and their impact on Companys success and growth. (c) To evaluate various financial and non-financial measures.

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(d) To understand how this measurement is linked with the incentive plan of the employee and tries to assess their impact on companys growth. (e) To find out the relationship and compare various performance measurement tools with the growth of the company in terms of various financial and non-financial parameters such as sale growth, profit growth, market retention, shareholder value creation etc. (f) To identify the Best Practices in Performance Measurement systems, existing in public limited companies in India i.e. the best measure or the group of measures that is most effective under different situations and suggesting a model that could be used by any company for effectively achieving the ultimate goal of organisation. 1.3 Research Methodology 1.3.1. Literature Review: For the purpose of establishing a conceptual framework, a comprehensive literature review has been carried out.

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1.3.2 Primary Data: A list of 28 listed companies has been selected and the primary data has been collected through a combination of structured questionnaire and telephonic interviews. A structured questionnaire has been designed and circulated among various industries to capture the existing

measurement systems followed by them. The telephonic interviews were made with key resource persons, who are responsible for strategic decision making in performance measurement area in the selected companies under investigation. Based on the responses on questionnaire and the interviews, the companies has been categorized according to the performance measurement technique, they are using to compare the respective performance and to find if there is any difference at all in terms of the growth (e.g. Sales growth, PAT growth or the growth in profit margin.) The questionnaire is designed to collect data regarding the current performance tools being used by the company and the advantages and disadvantages of using the same.
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To derive the responses on implementation issue from employees perspective and management perspective to understand whether the transformation process was smooth from the earlier systems if any. How this new measurement tool is effective in creating shareholder value in the organization. The data collected have then been categorized according the performance measurement technique they are using. 1.3.3 Secondary Data: The performance data relating to sales growth, market share, growth in profit margin, growth in PAT ( Profit after Tax) have been collected from secondary sources e.g. CMIE, Prowess database to find impact of various performance measurement tools used by selected 28 listed companies observed under for

investigation.

These

companies

are

understanding their existing performance measurement systems and evaluation of each techniques and their effectiveness in achieving their long term goals.
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Statistical test like Correlation and Regression Analysis has been applied to test hypothesized relationships between the two variables (the financial performance and the extent to which the non-financial measures are used in the sampled enterprises). The comparative analysis of performance measurement and growth has been carried out in the light of various performance measurement tools like SVA, BSC, EVA, EPS, ROI, Activity Based Costing etc. The empirical findings from primary data and the observations from telephonic interviews backed by the conceptual framework from literature review have constituted the ground of analysis for this research. On the basis of analysis of the strength and weakness of the present performance measurement system, the findings and recommendations are drawn. In the entire process of analysis, the qualitative as well as quantitative study had been carried out simultaneously and subsequently the results of both the analysis were cross checked to validate the inference. The survey responses are
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primarily used for qualitative study and the secondary data collected from prowess database and other various sources provides the basis of quantitative research. A survey was administered to collect data and both qualitative and quantitative techniques were employed for analyzing the data. The specific methods of data analysis include descriptive statistics such as tabulation, cross tabulation, computations of frequencies, and computations of percentages, computation of Mean and Standard Deviation and correlation and regression analysis. The relative importance of financial as well as non-financial measures in relation to the performance measurement system, in the context of Indian enterprises was investigated. The result of the analysis indicated that the majority of respondent enterprises primarily focus on financial measures, using historical data, accounting profits and financial ratios. The financial measures are considered as having great importance in the respondent enterprises. Despite the fact that the non-financial measures are as important as the financial measures, little or no attention is
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being paid to non-financial dimensions. However it has also been observed that, growing companies are giving increasing focus on the non- financial measures. The result of the analysis revealed that there is a clear and strong relation between the financial performance (sales growth rate, profit after tax) and the non-financial performance measures (customer satisfaction, internal

process/operational and employee satisfaction). In addition, empirical findings suggested that the non-financial measures are significant explanatory factors of financial performance. More importantly, findings show that high performance organizations have consistently employed both financial and non-financial measures performed better than those who do not. Based on the results of the study important policy recommendations are drawn. Indian companies have to give more attention on human development and learning and growth. They should have to invest in re-training employees to get motivated and competent people to produce customer
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perceived product quality as well as continuous improvement of operational processes, which may help the enterprises to compete in todays dynamic business environment. Generally the study has collected essential numerical evidence for the future development of Indian enterprises. Knowledge and understanding of the critical factors underpinning enterprises performance can lead to further improvements. In turn this will help the overall development of the national economy. 2. Overview of the Indian Public Limited Companies Public Limited Company, usually refers to a company that is permitted to offer its registered securities (stock, bonds, etc.) for sale to the general public, typically through a stock exchange, but also may include companies whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services such as the OTCBB and the Pink Sheets. The term "public company" may also refer to a governmentowned corporation. This meaning of a "public company"
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comes from the tradition of public ownership of assets and interests by and for the people as a whole (public ownership), and is the less-common meaning in the United States. The shares of a public company are often traded on a stock exchange. The value or "size" of a public company is called its market capitalization, a term which is often shortened to "market cap". This is calculated as the number of shares outstanding (as opposed to authorized but not necessarily issued) times the price per share. Say for example, a company with one million shares outstanding and a price per share of Rs. 50 would have a market capitalization of Rs. 50 million. However, a company's market capitalization should not be confused with the fair market value of the company as a whole since the price per share are influenced by other factors such as the volume of shares traded. For example, if all shareholders were to simultaneously try to sell their shares in the open market, this would immediately create downward pressure on the price the share is traded for

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unless there were an equal number of buyers willing to purchase the security at the price the sellers demand. So, sellers would have to either reduce their price or choose not to sell. Thus, the number of trades in a given period of time, commonly referred to as the "volume" is important when determining how well a company's market capitalization reflects true fair market value of the company as a whole. The higher the volume, the more the fair market value of the company is likely to be reflected by its market capitalization. Another example of the impact of volume on the accuracy of market capitalization is when a company has little or no trading activity and the market price is simply the price at which the most recent trade took place, which could be days or weeks ago. This occurs when there are no buyers willing to purchase the securities at the price being offered by the sellers and there are no sellers willing to sell at the price the buyers are willing to pay. While this is rare when the company is traded on a major stock exchange, it is not uncommon when shares are traded over-the-counter (OTC). Since
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individual buyers and sellers need to incorporate news about the company into their decisions as to what prices they are willing to accept, a security with few buyers and sellers may have a market price that does not yet reflect the effect of such news, simply because those buyers and sellers are not yet aware of the news or have not yet figured out how it should affect the price. India is a vast country with developed corporate sector. Over the last 60 years since independence the corporate India have undergone a sea change; especially there has been a paradigm shift in the business scenario since 1991 after the liberalization of economy namely LPG or i.e. Liberalization, Privatization and Globalization. Since the progress in the corporate has been fertile, so the performance evaluation of the corporate India as well is dynamic. Traditionally Ratio Analysis, Cash Flow are the main techniques and for performance analysis of a business. But with the complexities in modern business centre new

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technique like common size statement, Balance Scorecard, etc have gained importance throughout the globe. India is not an exception to it. Most of the big corporate houses have started performing this exercise to estimate it real performance and to maintain checks and balances for all the activities of the concern. 3. Measuring Business Performance Once a company understands how to create value in each business by influencing the value drivers, the next challenge is managing each business to attain results consistent with the top-down aspirations. Business performance management is the process of setting targets for a performance unit and regularly reviewing progress against them, with the goal that different levels of the company will work together for enhanced performance. Business performance management is often the core of managing for value, as this is where value metrics, value drivers, and targets must translate into everyday actions and decision making. When business performance management is working well, it helps different
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levels of the organization communicate clearly and effectively. In particular, effective business performance management greatly improves the communication between the corporate center and the business units. It gives managers freedom to formulate plans and policies, ensuring that the agreed-upon level of performance will be achieved. But when business performance management is done poorly, it can degenerate into piles of paperwork and much wasted time. There are several components of successful business performance management. First, a business unit must have a clear strategy for creating value. Second, it should set targets with a clear link to specific value drivers. Third, it needs a structured calendar of performance reviews to discuss results against value-linked KPIs. 3.1 Sample Selection Focusing on Public Limited companies in India, in order to understand the general and specific trends, a list of 200 listed companies has been selected and out of these 200 companies, the responses from 28 companies received as feedback for
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analysis. The primary data has been collected through a combination of structured questionnaire and telephonic interviews. The companies include the following sectors: a. Manufacturing b. Service c. Healthcare d. Transportation e. Engineering f. Oil & Gas g. Consulting h. Irrigation i. Pharmaceuticals

3.2 Data Collection Primary Data: A structured questionnaire has been designed and circulated among various industries to capture the existing measurement systems followed by them. The interviews were made in persons in the selected companies under investigation. Based on the responses on questionnaire and
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the interviews, the companies has been categorized according to the performance measurement technique, they are using to compare the performance and to find if there is any difference at all in terms of the growth. The questionnaire is designed to collect data regarding the current performance tools being used in the company and the advantages and disadvantages of using the same. To derive the responses on implementation issue from employees perspective and management perspective to understand whether the transformation process was smooth from the earlier systems if any. How this new measurement tool is effective in creating shareholder value in the organization. The data collected have then been categorized according the performance measurement technique they are using. In this chapter the data is analyzed and interpreted to examine whether Indian Industry practices are keeping track with the international trends regarding performance measures identified in the literature study, and if not, to identify possible reasons for the disparity. Quantitative as well as qualitative survey data were used to provide an in-depth analysis amongst the sample enterprises
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with respect to the issues examined in this study. The content of this chapter has been restricted to the presentation, analysis and interpretation of collected data. The first part of this chapter presents the general profile of the respondent enterprises; the second part is the profile of financial overview of the sampled enterprises. Chapter Seven is the descriptive, correlation and regression analysis comparing the financial performance of the respondents with the extent to which they also use non-financial measures. The conclusion and inferences are also discussed in Chapter Seven to present the management approaches to strategic performance measurement. The following table provides information on the job positions of the respondents who completed the questionnaire. As can be seen from the table below, the respondents belong to senior management staffs who are closely involved in strategic planning and decision making. 4. Data Analysis The empirical findings from primary data and the observations from structured interviews backed by the conceptual framework from literature review have constituted the ground of analysis of this research. On the basis of analysis of the strength and weakness of the present performance
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measurement system of the sampled enterprises, the findings and recommendations have been drawn. In the entire process of analysis, the qualitative as well as quantitative study had been carried out simultaneously and subsequently the results of both the analysis were cross checked to validate the inference. The survey is primarily used for qualitative study and the secondary data provides the basis of quantitative research. To assess whether the company uses performance measurement as a system, the question was asked Does your company currently have an existing performance measurement system in place? 100 per cent of the respondents agreed that they do have. Out of 28 sample size everybody does have some kind of performance measurement systems in place. There exists a number of performance measurement (PM) practices and approaches followed by the respondent companies including MBO based PMS, Performance Contract/ Service Level Agreement, MOU, Key Performance Indicators (KPI), EVA, Balanced Score Card, Return on Investment (ROI), Shareholder Value Added (SVA), Market Value Added (MVA), ROCE, Sales Growth rate, Cash flow, Profit Margin, ROE, Performance Centered Management system etc, Key Result Areas (KRAs), productivity and quality measurements, Earning per Share
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(EPS), Return on Investment (ROI) etc or a combination of them. From the following figure 6.1, it may be concluded that all the sampled companies in this research do have some kind of performance measurement system in practice. To get the idea about their existing performance measurement system, the question was asked, Does your company currently have an existing performance measurement system in place? Essentially, the origin of performance measurement suggests that company sometime uses one performance measurement or multiple Performance measurement system, i.e. a combination of various measurement systems. Therefore, the study was also prompted to find out which specific performance measurement systems are being currently used in the organization? E.g. EVA, Balanced Scorecard, Return on Investment (ROI), Shareholder Value Added (SVA), Market Value Added (MVA) etc or a combination of them. The response statement was developed and the tabular and graphical responses to these questions are presented in Table4.1 below.

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Figure 4.1 Performance Measurement System used in Sample Companies

Performance measurement systems used

SC

ER

30 25 20 15 10

O TH

VA

A SV
1

M V

R O

5 0

Performance Measurement System

Source: Authors own computation The study further examined whether the respondent organization gives significant importance to these performance measurement tools as corporate objectives Therefore, the managers were asked to describe their organizations approach to the use of performance measurement system over the last five years and their responses are presented in the following figure 4.2. Figure 4.2 Organizations approach towards usage of performance measurement
Organizations approach towards PMS for last five years
Indifferent 8% Increasing Focus 38% Diminishing Focus 4% Significant Emphasis 50%

Source: authors own computation

Percentage

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The respondents were asked how they would describe their organizations approach to the use of performance measurement system over the last five years. The responses show that there is an increasing trend in using the modern and non-financial measures or a combination of financial and non-financial measures rather than focusing only on financial or traditional measures on a standalone basis. It is extremely important for organizations to be able to plan and envision their future for coming years. The literature has indicated that many organizations failed due to the lack of vision. The above question in this research was asked to all the companies regarding their approaches on performance measurement for last five years. Out of 28 respondents, 50% of them believed that there is a significant emphasis on performance measurement, while 38% conveyed that the performance measurement practices are increasing in their organizations. Only 4% of the companies have diminished focus on performance measurement according to this research. 8% of the respondents are indifferent towards the approaches on performance measurement.

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This concludes that around 88% (50% + 38%) of respondents do believe that there is high importance given to performance measurement in last five years in their respective companies. This research has also studied that to what extent the respondent companies think that the performance measurement system of the Organization is important to achieve its long term goals and objectives. Figure 4.3 Importance of Performance Measurement System of the Organization towards achieving its long goal
Importance of Performance Measurement System of the Organization towards achieving its long goal
Limited Value, 6.90 Waste of Time, 0.00

Very Effective, 37.93

A key managerial control, 55.17

Source: authors own computation A question was asked to know their perception about the importance of performance measurement system of the Organization towards achieving its long term goal. Out of 28 respondents, 55% of them believed that performance measurement system is a key managerial control, while 38% conveyed that the performance measurement practices are very effective in their organizations. Only 7% of the companies believe that
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performance measurement has got limited values in achieving its long term goals according to this research. However none of the respondents has reasons to believe that it is sheer wastage of time. It may be concluded that around 93% (55% + 38%) of respondents do believe that performance measurement system of their companies is extremely important in achieving long term goals and objectives of their respective organization. In order to find to what extent the performance measures are aligned with the strategies of the organizations, the surveyed companies were asked a question whether the performance measures are modified if there are changes in the organizations strategic focus. Question was asked whether performance measures are modified when there are changes in the organizations strategic focus. This research revealed that only 14% of the respondents say that performance measures are always modified if there are changes in the organizations strategic focus, and the 57 % says that the measures are usually modified. However 14% says that it is often modified while 11% says it is rarely modified. It is interesting to note that only 4% respondents say that it is never modified and the performance
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measurement systems does not have any strategic focus or vision. Hence it may be concluded that, around 85% (57% + 14% + 14%) of the respondents do believe that performance measurement systems in their organizations are aligned with the long term strategy of their respective companies. The survey also attempted to identify the degree of linkage between corporate objectives and strategic plans. A strategic approach to managing performance is demonstrated when corporate objectives are linked to an organizations long-term plans and individual key accountabilities. To assess this dimension, the respondents were asked whether or not their organization use performance measurement tools to identify areas that require strategic focus. They were also interviewed to find out if the key objectives are influential to the development of employees individual accountabilities or job descriptions. The above figure 6.5 indicates how the managers perceive about linkage between objectives and strategies for accomplishment. The sample companies had also been asked a question whether their respective organization use performance measurement tools to identify areas that require strategic focus. 25% of the respondents say that the PM tools are used to identify the area requiring strategic focus as a matter of
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policy, while 39% of the respondents do it frequently and 18% of them do it occasionally. However 11% of them do it rarely and only 7% never do it. A question was asked Does your organization use performance measurement tools to identify areas that require strategic focus? This result concludes that majority i.e. around 82% (25% + 39% + 18%) of the surveyed companies do use their performance measurement systems to identify the area that require strategic focus, whereas few companies 18% ( 11% + 7%) rarely or never do this. The surveyed companies were asked that how often their companies prepare the formal performance measurement reports.

The respondents were also asked how often they prepare formal performance measurement reports.

18% of the respondents say that the formal performance reports are prepared by their companies every month, while 11% of them do it quarterly, 46% do it annually and 25% of them do it twice a year.
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This research reveals that as far as preparation and maintenance of performance measurement reports, less number of companies do it frequently. In order to find out the frequency of measurement results review, the respondent companies were asked that how often the measurement results are reviewed. The result reveals that 19% of the respondents are doing it monthly, 19% are doing quarterly, 26% are doing half yearly, 32% annually and 4% of the respondents are doing according to their own needs and priorities. In order to find out the linkage of performance measurement with the individual or team rewards, the surveyed companies were asked a question whether the performance measures are linked to individual and/or team rewards. The results show that 65% of the respondent companys performance measures are linked to the individual or team rewards, whereas in case of 14% this is not linked. However 21% of the surveyed companies sometimes follow a combination of both. Different managers perceive the same thing in different ways. Similarly, the study aimed to find out how managers perceive various objectives of PM and their view on the existing PM framework.
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In order to find this out, the managers were asked to give their view on how and to what extent their existing measurement system is effective in measuring the value drivers. The study therefore attempts to provide the glue that brings the whole thing together. Whether the emphasis at one time or in one place is on, say, developing written standards, on performance measurement, or on a particular system such as quality assurance or customer care, the framework can locate this within a wider picture. This helps bring the detail into perspective, and provides clues as to what needs to be done next. To check whether present performance model adequately address and measure whole set of objective and value drives, the respondent were asked to give the opinion about the performance measurement system of their company. The responses reveal it may be concluded that financial performance is perceived as highly valued information (having the highest score of 18), for designing PM. Similarly employee performance (with the highest score of 18) is perceived to be very much linked with Performance Measurement system of respondent enterprises. In order to check how the existing PM system measures the various values like Innovation, Quality, Customer orientation,
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technology etc, a question was asked, How effectively your current performance measurement tools measure the following value drivers? The response for this various value drivers are mapped in the following figure 4.1. It is clearly observed from the figure that financial performance measures are considered to be highly valued information and employee performance is very much linked with the performance measurement system of the organization. From the following table 4.1, the response result shows that as far as cost parameter is concerned, 46.43% of the respondents feel that, it very well measured while for the selection of supplier parameter, only 7.69 % feel it is very well measured. The perceived responses regarding the effectiveness of their current performance measurement tools measure towards the following value drivers are presented in a tabular form below. Table 4.1 Perceived effectiveness of Performance Measurement Systems in measuring value drivers PARAMETE RS Very Well Well Measur Measur ed ed Adequat ely Measure d In adequat ely Measure d Not at all Measur ed

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Innovation Quality Customers Orientation Technology

17.86% 14.29% 28.57% 42.86% 21.43% 32.14% 26.92% 15.38%

46.43% 21.43% 32.14% 42.31% 25.93% 33.33% 26.92% 26.92%

7.14% 14.29% 3.57% 3.57%

0.00% 14.29% 7.69% 7.69%

Brand Equity 25.93% 22.22% Employees Satisfaction Selection of Supplier Shareholder value creation Project Implementa tion Cost Managemen t Credibility 18.52% 25.93% 7.69% 42.31% 26.92% 30.77%

14.81% 11.11% 11.11% 11.11% 11.54% 11.54% 3.85% 11.54%

33.33% 40.74%

18.52%

0.00%

7.41%

46.43% 25.00% 25.93% 37.04%

21.43% 18.52%

3.57%

3.57%

3.70% 14.81%

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Source: authors own computation This research revealed that 42.31% of the respondents believe that the selection of supplier parameter is well measured. Product innovation, product quality and technology play extremely important role in building competitive edge and long term sustainable growth. As far as innovation parameter is concerned, the research revealed that 46.43% of the responses perceive that it is adequately measured. It shows there is lot of scope for further improvement of this ratio. Regarding Quality of products and services 42.86% of the respondents believe that it is well measured, which is a positive signal of striving for excellence. In pursuing an advantage over its rivals, a firm may select few strategic moves: Improving product differentiation Creatively using channels of distribution Exploiting relationships with suppliers Changing prices
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Technology is also considered to be very important parameters for long term success. From the survey responses, it is observed that 42.31% of the respondents perceive this to be adequately measured. This shows some scope for improvement. In most of the competitive industry, be it service, or manufacturing, there always exists a threat of substitutes. A firm can reduce this threat by investing more on technology and innovation and thereby having a competitive edge over its rival industries.

The fundamental objective of this study was to examine the satisfaction level of current performance measurement model for measuring performance of Indian Public Limited

Companies, by means of various factors as listed below using five point Likert scale from strongly satisfied to Strongly dissatisfied.

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In order to understand the importance of financial parameters of the sampled enterprises, the respondents were asked to rate the various financial measures relative to their effective use/importance in their enterprises. Based on their responses it may be concluded that sales growth, Return on Investment (ROI) and return on assets (ROA) are considered to be very important parameters for measuring performance while return on equity (ROE), liquidity and profit margin are comparatively perceived as less important measures. Figure 4.4 Importance of financial measures relative to their effective use/importance
Importance of financial measures relative to their effective use/importance
5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

Source: Authors own Computation

Non-financial measures

value

Mean Standard Deviation

Sale

R s gro OI wth

ROA rate

Net

P L ROE wor rofit M iquidit ar y king cap gin ial

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Recent literature related to manufacturing performance measurement indicates to the increasing relevance of nonfinancial measures. The literature argued that financial

performance measurement alone is not enough for the new reality of organizations (e.g. accelerated changes in

technology, needs for innovation and flexibility, shortened product life cycles etc.). Hence due consideration has been given to other important non-financial measures such as customers, employees and operational measures, all of which are integrated into the balanced approaches. In respect of non-financial performance measurements, the research findings exhibited a noticeably different pattern compared to the financial dimensions. Customers satisfaction and retention measures Recent research argued that customers are far more demanding and informed today than in the past. In this information age, people can access to information in split of seconds and search for companies who will do more than just
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meet their needs; customers do research the product quality, price and delivery time. They chose companies who will satisfy them. Delighted customers lead to loyal customers. Nevertheless, this understanding is not reflected in most of the sampled enterprises. Empirical results shows that only 16.25% of the sampled enterprises agreed that, the overall customer satisfaction and retention measures are used to evaluate enterprises performance. This is far below the satisfactory level. From this result one can understand that most of the respondent enterprises may lead to lack of customer related information. This may cause a problem to the respondent enterprises in improving and redesigning their products. As a result, the low outcomes in customer satisfaction measures could lead to a decline in market share and loyalty. In order to understand the Perception on Customer related measures of the sampled enterprises, the respondents were asked to rate the various customer related measures relative to their effective use/importance in their enterprises. Based
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on their responses it may be concluded that accurate data maintenance relating to customer and market share are considered to be important parameters for measuring performance while customer survey and accurate data on returned order are comparatively perceived as less important measures. The mean scores of accurate data maintenance relating to customer and market share have come as 4.07 and 3.96 respectively, while that of customer survey and accurate data on returned order have come as 3.85, 3.78 respectively. Figure 4.5 Perception on Customer related measures
Perception on customer related measure
4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

Source: Authors own Computation Internal process / operational measures Literature argued that achieving good performance levels on process or operational measures lead to high quality products
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value

Mean Standard Deviation

Acc

ura

te D ata_

Mar ke

t Sh ar e C us tom er

Cus

tom

er r e

Cus tenti

tom on

er S u

Acc

ura

rvey

te d

ata_ retu rne d

ord

er

and services, which, in turn, lead to satisfied or delighted customers, which lead to repeat business and promote longterm success. Hence, the types of process measures that are taken to evaluate the existing operational/ process of the sampled enterprises are: customer perceived product quality control, manufacturing cycle time, and order to deliver time. The study recommends, if manufacturing enterprises fail to produce customer perceived product quality to deliver in the right time in both the short and long run, sales revenue may decline and the business may wither. Furthermore, time is critical process measure for any task because it equates to cost and satisfying customers needs. Customers need things quickly at a minimum payment. Focusing on cycle time allows enterprises to keep its cost down while satisfying even delighting customers. Nevertheless, empirical findings as depicted in table 6.10 shows only 37.50% of the respondents agree on operational measures. This may lead to loss of existing customers and decline of sales revenue or market share.

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In order to identify the degree of effective use of the operational measures of the sampled enterprises, the respondents were asked to rate the various internal process and operational measures relative to their effective use/importance in their enterprises. Based on their responses it may be concluded that Cycle time and customer perception on internal process efficiency are considered to be the most important parameters for measuring performance while process cost and internal process efficiency are perceived by the respondents to be less important measures. The mean scores of Cycle time and customer perception on internal process efficiency have come as 4.60 and 4.54 respectively, while that of process cost and internal process efficiency have come as 4.40, 4.25 respectively. Figure 4.6 Degree of effective use of the operational measures
Degree of effective use of the Operational/Interna Process measures
5.00 4.00 3.00 2.00 1.00 0.00

Source: Authors own Computation

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value

Mean Standard Deviation

Cyc

le ti

Pro Cus Pro ces ces tom s eff sC me er p o st icie erce ncy ptio n

Assessing employee satisfaction and retention measures

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For the purpose of identification of the degree of effective use of the employee related measures of the sampled enterprises, the respondents were asked to rate the various employee related measures relative to their effective use/importance in their enterprises. Based on their responses it may be concluded that Job Security and Employee

Turnover/Retention are considered to be the very important parameters for measuring performance while Salary

satisfaction and Job Training are perceived by the respondents to have less focus. The mean scores of Job Security and Employee Turnover/Retention have come as 4.32 and 4.29 respectively, while that of Salary satisfaction and Job Training have come as 4.18, 4.11 respectively. This shows that the public limited companies in India should provide more focus on Salary Satisfaction and Job training in order to increase the employee satisfaction level and thereby improvement in product and process efficiency. The results of the mean scores are exhibited in the following table 4.2 and figure 4.7. Table 4.2 Degree of effective use of the operational measures
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Factors Job security Emp.Turnover/Retention Employee benefit Salary satisfaction Job training

Mean Standard Deviation 4.32 4.29 4.19 4.18 4.11 0.82 0.81 0.63 0.90 0.96

Source: Authors own computation from questionnaire responses Figure 4.7 Degree of effective use of the employee related measures
Degree of effective use of the employee related measures
4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00
Jo b se cu rity Emp. Turn ov er Sala Empl Jo b ry sa traini oyee tisfa ng be ne ction /Reten fit tion

Mean Standard Deviation

Source: Authors own Computation In order to understand the respondents perception regarding the investors view on importance of companys financial and Non-Financial measures and the degree of their reliability, the

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respondents were requested to rank various measures in 1-5 point Likert Scale. Figure 4.8 Investor's perception on importance of companys Financial and Non- Financial measures
Investor's perception on importance of companys Financial and Non- Financial measures
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00
Ali Re Co Inn Qu Qu Qu Qu Ma Qu Ma Qu Ma Ex e m gn se a a a a a a r n n me arc mit ov ati lity lity lity lity ke t S lity age lity age cut io o o o o o o m m m o nt h of Lea ent ns f Em f Ma f Ris f Co har e f Cu ent f Co ent n of rp st o Ex rpo C r Co Em de to plo jor k ed rp me pe r y e Bu Man orat plo rsh env es r B rien at e S ibilit orat iro ye ip , A s ines agem e C o eC eS as ce nm tra y m bil e teg tr a om en ity s Pro ent mu t teg y pe n P to c y ns At e ss racti ic atio a ti tra es ce n on ct .. s ... .

Source: Authors own Computation As per the result, the respondents of the sampled enterprises perceive that investors more rely on Alignment of Employee Compensation with Shareholders Interest, Research

Leadership and Commitment to environment while the investors have the least reliance on Quality of Corporate Strategy, Management Credibility and Execution of Corporate Strategy. The mean score of the measures, Alignment of Employee Compensation with Shareholders Interest, Research Leadership and Commitment to environment are 3.24, 3.00 and 2.74 respectively while for Quality of Corporate Strategy,
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value

Mean SD

Management Credibility and Execution of Corporate Strategy, the mean scores are 2.05, 1.85 and 1.80 respectively which shows lots of scope for improvement in the management approach towards these measures in order to increase the investors trust and dependence on management and the strategic decision makers. To identify the perceived areas of improvement in the sampled organizations, the respondents were requested to mention some of the areas from the options given in the questionnaire, where they believe improvement are most needed in their organization's performance measurement system. Based on their feedback the following figure is constructed which demonstrates that most of the

respondents believe that senior leaders need to be more aligned in their interpretation and support of the strategy. They also think that there needs to be more accountability for achieving performance targets and finally Individual rewards and recognition need to be more closely linked to performance on the strategic metrics in order to design a
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comprehensive performance measurement system in the organization and to gain long term success from it. Figure 4.9 Areas requiring improvement in your organization's performance measurement system
Areas require improvement in your organization's performance measurement system?
14 12 10 8 6 4 2 0

TOTAL

Senior leader_allignment

Result_communic ated

Individual reward

Source: Authors own computation 5. Result and Discussion Though ratio analysis is viewed as an effective tool for assessing a companys financial conditions, but its limitations should also be recognized. No single ratio or group of ratios is adequate for assessing all aspects of a companys financial conditions. Just looking at the historical trend of a specific companys ratios could also be limiting. That is why, with the globalization of markets and greater foreign competition, it becomes imperative to compare a companys financial
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Accountability

Performance target

HR Support

Developing metrics

Balanced measure

Strategic measures

indicators with the industrys best practices. In this section the average financial ratios of the sampled enterprises have been compared with their year to year performance over a period of five years. Needless to mention the significance of the growth rates depends on the availability and accuracy of information. Sales growth is considered as a sustainability measure used to compare a companys financial condition against industry norms. It is believed that this measure provides valuable information to estimate the ability of enterprises to sustain and grow in the long-run. The following table presents the profile of the annual average turnover of the respondent enterprises. The overall sales growth of 4.76% presented in Table 4.3 is an outcome of the negative growth of the individual respondent enterprises. This negative growth may indicate the inability to grow and to pay their obligations when needed. The result indicates that 23.81% of the respondent enterprises exhibit a comparative sales growth rate between 10 to 20%.
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Table- 4.3 Comparative Sales Growth Percentage No of of Enterprises Enterprises 0 1 3 5 3 5 1 3 21 0.00% 4.76% 14.29% 23.81% 14.29% 23.81% 4.76% 14.29% 100.00%

SALES GROWTH % Less than -10% -10% to 0% 0% to 10% 10% to 20% 20% to30% 30% to 40% 40% to 50% Above 50% Overall average

Source: Authors own computation based on data obtained from survey

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Similarly table 4.4 and table 4.5 present the profile of the annual average Profit margin growth and comparative growth in Profit after Tax (PAT) of the responded companies for analyzing their financial performance of sampled enterprises. Table- 4.4 Comparative Profit Margin Growth Percentage No of of Enterprises Enterprises 5 2 5 2 1 2 0 3 20 25.00% 10.00% 25.00% 10.00% 5.00% 10.00% 0.00% 15.00% 100.00%

PROFIT MARGIN GROWTH % Less than -10% -10% to 0% 0% to 10% 10% to 20% 20% to30% 30% to 40% 40% to 50% Above 50% Overall average

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Source: Authors own computation based on data obtained from survey

Table- 4.5 Comparative Growth in PAT Percentage No of of Enterprises Enterprises 2 0 0 1 3 4 4 6 20 10% 0.00% 0.00% 5.00% 15.00% 20.00% 20.00% 30.00% 100.00%

PAT GROWTH % Less than -10% -10% to 0% 0% to 10% 10% to 20% 20% to30% 30% to 40% 40% to 50% Above 50% Overall average

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Source: Authors own computation based on data obtained from survey It has been observed from the secondary data that, the sales growth % on year over year basis has increased significantly in most of the companies. The growth of PAT has also increased with the corresponding growth in sales. Earnings per share have also increased with the increase in Net profit margin. With the growth in Net Profit margin and earnings per share, market price of the shares traded in BSE also gone up over a period of time. It has been revealed from this study that in case of Hindustan Constructions Co Ltd., soon after implementation of EVA in 2005 there has been a dip in the S/Debtors even though there is a growth in Sales and Income in the subsequent years may be considered as a positive effect of the implementation of their existing Performance Measurement. In case of Panacea Biotech one can link the implementation of EVA in the year 2006 with the sharp increase in Net Profit Margin in

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the next years. The above can also be attributed to a growth in EPS. Further there is a sharp increase in PAT, which may be linked to the focus of the company on EVA. In case of the company Spentex Ltd. a sharp increase may be attributed in Operating Profit with the implementation of Performance Measurement tool, in 2005. In case of ONGC, after implementation of their existing measurement system, there has been an increase in Operating Profit and a decrease in Sundry Debtors in spite of a sales growth. This might be attributed to increase focus of the management on EVA. However, in case Garware Polyester Ltd. it seems that though factors were under control after the implementation in the year 2002, however, since 2005 things seems to be unusual, and the trend does not match with the industry. Tata Consultancy Services Dip in sales figures post 2005 is due to the effect of general slowdown in the off shore market for the preceding years and should not be linked with implementation of EVA, however due to the implementation

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of their existing measurement tool, an increased focus may have led to dip in A/R ratio and increased EPS. During the Financial year 2007-08 NIIT Limited made major strides in its transformation from an IT & IT enabled training company to a Global Talent Development Corporation. During the year NIIT continued to grow based on its stated strategy set which focused on Accelerated growth Improved profitability Market leadership in chosen areas. During the last financial year 2007-08, NIIT experienced robust revenue growth improvement leading to improved market position. Over the last 3 years the company has grown: Revenue at a CAGR of 22% EBITDA at a CAGR of 31% Net profit up by 37% NIIT has witnessed a marked improvement in its net revenue and profitability with:
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Net revenue of Rs 10,068 million - 27 % growth EBITDA of Rs 1036 million 34 % growth Operation PAT at Rs 422 million 74% growth The dip in revenue post implementation can be attributed to the factors like change in revenue recognition criteria e.g. change in the Billing system from Total collection to Course ware revenue in 2001-2002 and De-Merger of NIIT & NTL in 2004. 5.1 Secondary Data: The performance data relating to sales growth, PAT (profit after tax) growth, growth in profit margin have been collected from secondary sources of Prowess database and various websites (e.g. www.moneycontrol.com, www.valuenotes.com etc) to find impact of this various performance measurement tools of selected 28 listed companies under investigation. These companies are observed for understanding their existing performance measurement systems and evaluation of

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each performance measurement techniques and their effectiveness. Regression and Co-relation Analysis has been applied to test hypothesized relationships between the two variables (the financial performance and the extent to which the nonfinancial measures are used in the sampled enterprises). The comparative analysis of performance measurement and growth has been carried out in the light of various performance measurement tools like SVA, BSC, EVA, EPS, ROI, Activity Based Costing etc 5.2 The relationship between the financial performance and the non-financial measures Chapter six and seven of this research deals with assessment of the existing financial profile of the sampled enterprises using some selected financial ratios such as sales growth, growth in profit margin and PAT (profit after tax) growth. Results of the financial ratios show that performance of those companies is satisfactory as per the industry standard that are
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consistently following the balanced set of measures comprising of financial and non-financial parameters. Moreover, the study has also investigated the degree of adoption of financial measures and non-financial measures such as customer satisfaction, retention and quality measures. The objective of this analysis was to obtain an overall profile of the respondents, their cycle time, operational measures, employee training and retention in terms of their use. The results of the descriptive analysis show that financial measures are relatively more important than the non-financial measures in most of the respondent enterprises. Few companies focused on non-financial measures though it is showing an increasing trend. In this section correlation and regression analysis techniques were used to test hypothesized relationships between the two variables (the financial performance and the extent to which the non-financial measures are used in the sampled enterprises).

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Consistent with the latest developments in the performance measurement literature such as those conceived by founder of the Balanced Score card approach, Kaplan & Norton, (1996: 31) suggested every measure should be able to explain the cause-and-effect relationship that results in improving longterm sustainable financial performance. Furthermore, they indicated that there is a cause and effect relationship between non-financial measures and financial performance. Finally they concluded that companies who understand this link will implement the best long-term approach to improving their financial performance. Accordingly, the measurement system was expected to make the relationship among measures and the performance of the selected enterprises. continuously improve It is expected that companies that their skilled human resources

(employee training and development) should achieve better performance in their internal business process perspective which will, in turn, lead to better performance in their customer satisfaction parameters. Finally all such efforts

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should lead to improve overall performance of the enterprise. Keeping in mind that these expected relationships, the focus of this study is on business unit performance. Therefore correlation and regression of the sampled enterprises is provided in the following analysis to examine the

relationships of financial performance and non-financial measures.

5.3 Evaluating the financial measures Literature review suggests that financial (quantitative) measures are feasible and realistic; hence their usage should be encouraged. Therefore identification of critical numbers is essential. It clarifies where one should focus on their efforts, what business processes need to be improved and identifies the weakness of the organization. When developing measures, it is important to include a right mix of quantitative and qualitative measures. Quantitative measures provide more objectivity than qualitative measures. They may help to justify critical management decisions on resource allocation or

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systems improvement. Companies should first identify any available quantitative data and consider how it can support the objectives and measures integrated. In this regard, the financial measures, which are commonly used by the respondent enterprises such as: sales growth, PAT growth, growth in profit margin are taken to investigate to what extent these financial ratios used to measure the selected enterprises financial performance. Sales growth,

Profit after Tax, growth in profit margin are in order of importance, all are very popular measures used by the respondents enterprises, but compared to other parameters, return on asset seems to be a less popular financial measure. In the questionnaire respondents were requested to response on a 1-5 point Likert Scale. Mean value is more than 3.9 for all factors (except for ROA and other factors), showing high degree of importance to the respective factors (More than 80%) and SD is also low showing the degree of variance among data is low. Only for other factors and ROA (to an extent), high SDs are showing inconsistencies and also

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confirmed that common financial factors are used for financial performance measurement in Indian Industry. Overall it may be concluded that financial measures are used effectively in performance measurement. 5.4 Evaluating the non-financial measures Recent literature has argued that financial performance measurement alone is not enough for the new reality of organizations (e.g. accelerated changes in technology, needs for innovation and flexibility, shortened product life cycles etc.). In this regard consideration has been given to other important non-financial measures such as customers,

employees and operational measures, all of which are integrated into the balanced approaches, or variants of it. With regard to non-financial performance measurements, the research findings exhibited a noticeably different pattern compared to the financial dimensions.

5.4.1 Customers satisfaction and retention measures

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Recent research argued that customers are far more demanding and informed today than in the past. People now have access to information much more easily and in search for companies, who will do more than just meeting their needs; customers do research in advance on the product quality, price and delivery time offered by various enterprises in the same line of businesses. They tend to chose companies who will delight them with value added products and services with extra features. Delighted customers lead to loyal customers. Nevertheless, this understanding is not reflected in most of the sampled enterprises. Empirical results exhibit that only 28% of the sampled enterprises agreed that, the overall customer satisfaction and retention measures are used to evaluate enterprises performance. This is far below the adequate level. From this result one can understand that most of the respondent enterprises lack of customer related information. This may cause a problem to the respondent enterprises in improving and redesigning their products. In

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addition, the low results in customer satisfaction measures may lead to a decline in market share and loyalty. In the questionnaire respondents requested to response on a 1-5 point Likert Scale. Mean value is above 4 in case of maintaining accurate data for customers. However it is the lowest (3.78) in case of customer retention which is critical for most of the sampled companies giving least importance as far as customer retention parameter is concerned. However the mean score is above 3.8 for all other customer related parameters like accurate data on returned order, customer satisfaction survey and market share, showing high degree of perceived importance to the respective factors (More than 80%) and SD is also low showing the degree of variance among data is low. Overall we can say that Customer measures are considered to be an important parameter and are effectively used in performance measurement by the sampled enterprises. 5.4.2 Internal process / operational measures

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Performance

Literature

argued

that

achieving

good

performance levels on process or operational measures lead to high quality products and services, which, in turn, lead to satisfied or delighted customers, which lead to repeat business and promote long-term success. Hence, the types of process measures that are taken to evaluate the existing operational/ process of the sampled enterprises are: customer perceived product quality control, manufacturing cycle time, and order to deliver time. The study recommends, if

manufacturing enterprises fail to produce customer perceived product quality to deliver in the right time in both the short and long run, sales revenue may decline and the business may wither. Furthermore, time is critical process measure for any task because it equates to cost and satisfying customers needs. Customers need things quickly at a minimum payment. Focusing on cycle time allows enterprises to keep its cost down while satisfying even delighting customers.

Nevertheless, empirical findings show that mean value is highest i.e. 4.6 in case of customer's perceived service, quality

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and price parameter and the lowest , i.e. 4.25 in case of process efficiency parameter, only 43.48 % of the

respondents agree on operational measures. This might lead to loss of existing customers and decline of sales revenue or market share in the long run. The study recommends, if the enterprises fail to produce customer perceived product quality or service to deliver in the right time in both the short and long run, sales revenue may decline and the business may shrink. Furthermore, time is critical process measure for any task because it equates to cost and satisfying customers needs. Customers expect quick delivery at a reasonable payment. Focusing on cycle time allows enterprises to keep its cost down while satisfying even delighting customers. This may lead to loss of existing customers and decline of sales revenue or market share. 5.4.3 Assessing employee satisfaction and retention measures In the literature review, it was argued that the challenge of recruiting, training, and retaining quality employees are more important in business than ever before. It is believed that
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enterprises today must plan for change, assure high quality training, and provide personal growth opportunities to employees. Manufacturing enterprises are expected to

understand their company culture and employee needs more effectively. Furthermore, the study recommends that

delighted employees are much more productive. However, the results of employee related measures revealed that 42.31% and 38.46% respectively of the sampled enterprises agreed that job training and salary satisfaction measures are used as a performance measure of their enterprise. This improved rating, perhaps lead to increased quality of product and decrease in cycle time which in turn may downsize the cost of production. In addition the increased rating in employee satisfaction and retention measures may cause retaining the most valuable assets, their employees. As the result the total outcome of these overall results may lead to increasing financial performance.

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This study has tried to assess the existing financial profile of the sampled enterprises using some selected financial ratios such as sales growth and return on asset. Results of the financial ratios show that most of the enterprises

performance is below the international trends. In addition the study investigated the degree of adoption of financial measures and non-financial measures such as customer satisfaction and retention; quality and cycle time operational measures; and employee training and retention measures. The objective of this analysis was to obtain a profile of the respondents in terms of their use. The results of the descriptive analysis show that financial measures are relatively more important than the non-financial measures in the respondent enterprises. In this section correlation and regression analysis techniques were used to test hypothesized relationships between the two variables (the financial performance and the extent to which the non-financial measures are used in the sampled enterprises).

170

Consistent with the latest developments in the performance measurement literature such as those founded by the innovator of the BSC (Kaplan & Norton, 1996: 31) suggested every measure should be able to analyze cause-and-effect relationship sustainable that culminates in improving long-term they

financial

performance.

Furthermore,

indicated that there is a cause and effect relationship between non-financial measures and financial performance. Finally they concluded that companies who understand this link will implement the best long-term approach to improving their financial performance. Accordingly, the measurement system was expected to make the relationship among measures and the performance of the selected enterprises. It is expected that companies that

continuously improve their skilled work force (employee training and satisfaction) should achieve better performance in their internal business process perspective which will, in turn, lead to better performance in their customer perspective. All such efforts should lead to improve financial

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performance.

Keeping

in

mind

that

these

expected

relationships, the focus of this study is on business unit performance. Therefore correlation and regression of the sampled enterprises is provided in the following tables to examine the degree of association between financial performance and non-financial measures. 6. Results of correlation analysis Kaplan & Norton (1996b) suggested the use of correlation analysis to test the expected relationships in the balanced scorecard performance measurement variables. Accordingly, correlation analysis was used to test how the non-financial performance measurement perspectives (customer

satisfaction, internal process/operational, and employee training/satisfaction measures) are correlated with the actual financial results (average sales growth, growth in profit after tax). Findings from Pearson pair-wise correlations matrix

shows strong correlations between the measurement variables of the financial performance and the extent of the use of the non-financial measures in the sampled enterprises.

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This means that a higher score on the performance measurement is related to a better performance. All aspects are strongly correlated to the financial performance (Turn Over growth and PAT GROWTH). The correlation coefficient varies from the lowest (0.57) to the highest (0.75). The variables are positively correlated and are significant. The result implies financial performance increases with increase of the use of the non-financial measures. The results of the relationship are consistent with the assumption. Results from statistical analysis supported the expectations. Therefore, from the results of the correlation analysis one can conclude that it pays for companies not only to measure their financial performance, but to do this in an equal balance among all measures. 7. Regression Analysis The results of correlation analysis in the correlation section tested the statistical significance of the association and their directional relationships between the scores of the non financial measures and the financial performance. In addition
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to the correlation analysis the study further examined the effect of the independent variables on the dependent variables. Results of the regression analysis show the effect of customer, operational and employee related measures (independent variables) on sales growth and PAT growth (dependent variables) over a period of time. Regression equation Y = a+b1x1+b2x2+b3 x3 Where: Y = dependent a = intercept b1...b3 = coefficients x1...x 3 = independent Variables

Variables The variables in the model are:

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Dependent Variables: Y1 = T/O Growth (T/O G) Y2 = PAT growth (PAT G) Independent Variables: X1 = Customer Related Measures (CM) X2 = Internal process/ operational measures (OM) X3 = Employee related measures (EM) 7.1 Results and Discussion 7.1.1 Respondents perception to the use of performance measurement The organization in a single report and requires executives to limit the number of measures to a vital few and allows them to track whether improvement in one area is being achieved at the expense of another area. Furthermore, they argued that selecting the right measure for success is the vital issue in todays competitive environment.

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To assess the existing measurements used, respondents were asked to indicate the number of performance measures existing in their organization. This might be a factor which weakens the link between the performance measurement system and organizational goals by inhibiting a coordinated approach to the achievement of strategic objectives. The results indicated that they use many measurements in some of the departments for decision making and sometimes conflicting and is not so easy to reach the goals. In this section, the relationships between the financial performance and the balanced performance measurement variables are examined. The findings from the multiple regression model confirms that the results of the cross tabulations for the type and directions of the relationship of most of the independent variables with dependent variables. The regression results indicated that the overall performance measurement perspectives (independent variables) explained about 67% of the variation of T/O growth ( r2 = 671). The T/O growth variation shows the combined effect of measurement

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variables on the financial performance (PAT growth) is statistically significant (p<0.05). Therefore Customer Related Measures was found to be the determinants factors of T/O growth. The directional signs on the coefficients for these statistically significant explanatory factors are positive, which implies, increase in sales growth is the effect of increase in the overall performance measurement variables. The results were also consistent with the expectation that the non-financial measures have significant effect on financial performance (T/O growth). Similarly, the regression results indicated that the overall measurements (independent variables) explained about 86% of the variation of PAT Growth (r2 = 0.656). The coefficient representing Employee related measures are found to be strong determinant factors of PAT growth (p<0.05). The directional signs on the coefficients for these statistically significant explanatory factors are positive. This shows their strong relationships and is also consistent with the assumptions.
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The result implies, in todays sophisticated technological and competitive business environment, competent people are the main determinant factors. It is not enough to have short-term financial results and happy customer in terms of quality, process efficiency and delivery time without the prerequisite of growth, innovation and learning perspective. Results are also consistent with theories in the performance literature (Kaplan & Norton 1996:31). Furthermore, the adoption of product quality and reduced cycle time measures, increase in customer satisfaction and loyalty, which in turn contributes towards attaining, increased market share. This result corresponds to the expectation that enterprises operating performance measurements link to improve financial performance. 8. References: 1. Al Ehrbar. 1998. EVA: The real key to creating wealth, New York: John Wiley & Sons

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S.

Carrie,

R.MacIntosh:

UK

Research

in

Manufacturing Systems Integration 332-336 3. Buxton, C. and Ward, R. (1998). From inspiration to performance: an assessment of what organizations are doing to inspire people through performance

measurement. The ASQs 52nd Annual Quality Congress Proceedings, Philadelphia, PA, May, 11 18. 4. Bititci, U.S., Carrie, A.S. and McDevitt, L.

(1997).Integrated performance measurement systems: a development guide. International Journal of Operations and Production Management, 17, 522 534. 5. Bititci, U.S., Carrie, A.S., McDevitt, L. and Turner, T. (1998a). Integrated performance measurement systems: a reference model. In Schonsleben, O. and Buchel, A. (Eds), Organizing the Extended Enterprise. London: Chapman & Hall, pp. 191203. 6. Brown, M.1996. Keeping Score: Using the Right Metrics to Drive World Class Performance, Quality Resources. New York, NY: Productivity Press

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management resources are out there , Strategic Finance December, 26-29 8. Dilanthi Amaratunga, David Baldry (2002), "Moving from performance measurement to performance

management", Facilities, Vol.20, No. 5/6 9. Flapper, S., Fortuin, L. and Stoop, P. Towards consistent performance measurement systems. International

Journal of Operations & Production Management, Vol.16, No. 7. 10. Fitzergerald L, et al. Performance Measurement in

service business, The Chartered Institute of Management Accountants. 11. Haspeslagh, P. and Noda, T. and Boulos, F. 2001.

Managing for Value: Its Not Just About the Numbers. Harvard Business Review, July-August Issue, Reprint No. R0107D 64-73, Harvard Business School Publishing 12. Hudson, M., Smart, A. and Bourne, M. (2001).

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Production Management, 21. 13. John Isaac Mwita, August, 2002, The Role of Motivation in Performance Management: The case of performance-related-pay schemes in British local authorities 14. Kaplan, R. S. 1998. EVA and the Balanced Scorecard. Evangelist TM magazine, Vol 2, (4). New York: Stern Stewart & Company 15. Kaplan, R. S. 2001. Integrating Shareholder Value

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Performance, The Chartered Institute of Management Accountants, ISBN 0 948036 35 4 Heriot-Watt University 24. Neely Andy, John Mills, Ken Platts, Huw Richards,

Mike Gregory, Mike Bourne, Mike Kennerley, 2000 Performance measurement system design: developing and testing a process-based approach, International Journal of Operations & Production Management Volume 20 (10) : 1119-1145 25. McNair, C.J., Lynch, R.L. and Cross, K.F. (1990), Do

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Standard for Business Performance. New York NY: Free Press. 30. Schneiderman, A. Why balanced scorecards fail.

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Websites

1. www.tcs.com 2. www.moserbaer.com 3. www.evanomics.com 4. http://en.wikipedia.org 5. http://www.investopedia.com 6. http://greenbusinesscentre.com 7. www.businessweek.com 8. www.money.rediff.com 9. www.valuenotes.com 10. www.moneycontrol.com 11. Prowess Database

References: 1. http://en.wikipedia.org 2. http://www.quickmba.com

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Sisir Kumar Panda

Former Dean and Professor Affinity B School, Orissa, India

Spirituality at Workplace
Abstract The global village would someday need a global spirit. The goingson in the unipolar world be it in the economic or political or religious realm are likely to influence the way a human being perceives the world while being in the workplace. To day people all over the world work in one organization. It is the place where people spend or invest the bulk of their time. Can the workplace be the platform where an employee derives satisfaction by releasing his/her spiritual urge? This paper seeks to find an answer based on the research already done and on some very critical thinking. One key sub-question therefore has to be what spirituality all about is. The focus is on developing a paradigm rather than a model or a best-selling management technique or a
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few jargons for the organizations of the new millennium. We have seen how the concepts like, core competence, in search of excellence or blue ocean strategy have been received by both practicing managers and researchers in less than a decade after their introduction. They have no doubt made us intellectually rich. But most of the theories have been generated by a very careful natural selection of success stories and subsequent empirical study on them. In this paper we have sought to develop a small paradigm derived from the basic spiritual urge of an individual that may work at the workplace. The idea may perhaps click. But there is no covert motive to seek intellectual insulation. The perspective is both liberal and non-secular. (Key words: Dharma, true human being, truth, service, paradigm, learning) 1. Introduction This is the true joy in life, the being used for a purpose you consider a mighty one, the being a force of nature rather than a feverish, selfish clod of ailments and grievances complaining that the world will not devote itself to making you happy.

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George Bernard Shaw

1.1

We spend more time at work place than at any other place

over one-third of our time actually. Workplace can be within the private sector or public sector. It can also be our own premises or rented premises where we work to earn our livelihood. Workplace strictly can mean the house where a maid servant works. It could be a tailoring shop where a tailor is employed or even a not-for profit organization. In this essay, however, let us confine our discussions to the organized sector, where most of us are employed.

We all want our workplace to be neat and clean. We would also like to enjoy the time we spend at our workplace. There has been, therefore, a lot of research on the subject. How the employees can feel happy at the workplace and contribute their best. What can be done to make both the employer and employee happy? If the employee feels secured and the employer relaxed, then the whole environment augurs well for the organization. But that does not

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always happen. We have seen conflicts and politics at the workplace. We have seen both arrogant employees and indifferent, dark bosses. Scholars have researched on employee absenteeism and dissatisfaction. Copious research has also been done on the whole question of leadership. Often therefore an organization is compared to an iceberg; only one-third or less is visible and rest can be anybodys guess unless one really studies the invisible part. 1.2 Where does Spirituality then fit into this discussion? That is

one question that we would like to address here. See one can only address the question. It is not easy to answer it or answer it with a confidence that everyone at the workplace will find it completely acceptable. Let us therefore raise a few more questions and while doing so let us postpone the lurking desire for a quick answer. Let the discussions generate a broadly acceptable answer. The questions are as under: Does spirituality include Religion? Cant be a person spiritual without being religious? What constitutes spirituality anyway?

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 Is not spirituality a very personal matter? So why do we then bring it to the workplace? Where Christians and Muslims work together, as is the case in the USA and elsewhere, can management do anything meaningful towards spirituality at workplace? Does it mean, from the example above, the Sikhs will be allowed to wear turban and carry kirpan to office and the Muslims be allowed to go to a Mosque to chant holy Quran on all Fridays at a given time? (There can be similar questions on the topic. Let us right now avoid a search for the right answer. Logically a right answer would also presuppose a wrong answer. Let us focus on what can possibly be correct based on whatever research work that we can lay our hands on. It is tempting to mention that nobody has appointed us as God to suggest what is right and what is wrong. But then it is logically safe to resist the temptation because in our times mention of the word God may invite controversy.) A learning organization is a spiritual organization. In fact Senge has quoted G.B.Shaw as above. The word true joy may be akin to

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what Traiteriya Upanishad describes as Anandam (ananadm bramhaiti byajanat know joy to be Bramha or God). The mighty one could be the organizational goal, could be divinity or simply could be a desire to connect and contribute. We shall examine that in the paragraph below while developing a definition for spirituality.

2. What is spirituality? 2.1 Wikipedia mentions as under: Workplace Spirituality or

Spirituality in the Workplace is a movement that began in the early 1990s. It emerged as a grassroots movement with individuals seeking to live their faith and/or spiritual values in the workplace. One of the first publications to mention spirituality in the workplace was Business Week, June 5, 2005. The cover article was titled "Companies hit the road less traveled: Can spirituality enlighten the bottom line?" However, prior to that, William Miller wrote an article titled "How Do We Put Our Spiritual Values to Work," published in "New Traditions in Business: Spirit and Leadership in the 21st Century" edited by John Renesch, 1992, San

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Francisco: Berrett-Koehler. Gilbert Fairholm wrote "Capturing the Heart of Leadership: Spiritual Community in the New American Workplace" in 1997 and Jay Conger wrote "Spirit at Work: Discovering the Spirituality in Leadership" in 1994, both considered germinal works in the field. Spiritual or spirit-centered leadership is a topic of inquiry frequently associated with the workplace spirituality movement (Benefiel, 2005; Biberman, 2000; Fry, 2005; Giacalone & Jurkiewicz, 2003; Jue, 2006). The movement began primarily as U.S. centric but has become much more international in recent years. Key organizations include: International Center for Spirit at Work (ICSW) European Baha'i Business Forum (EBBF) World Business Academy (WBA) Spiritual Business Network (SBN) Foundation for Workplace Spirituality

(www.workplacespirituality.org.uk) Several Vedanta scholars have visited USA to deliver talks on Bhagwat Gita and to help executives abroad develop spirituality at

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workplace putting purpose above self. The trend has started due mainly to a few factors as under: Mergers and Acquisitions meant employees belonging to different countries and faiths are now required to work under altogether different bosses. To day Indian Companies have also started acquiring companies abroad. Tata group for instance earns more than 70% of its revenue from abroad. Mahindra and Mahindra has recently taken over the SSang Yang Motors in South Korea. The psychological contract that the employees had of one job, one life, was threatened to be rescinded. Baby Boomers hitting middle age resulting in a large demographic part of the population asking meaningful questions about life and purpose. The millennium created an opportunity for people all over the world to reflect on where the human race has come from, where it is headed in the future, and what role business plays in the future of the human race. 2.2 What is understood by the word spirituality? Oxford dictionary mentions 4 meanings as under for adjective spiritual:

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a) b)

Of or concerning the spirit as opposed to matter Concerned with sacred or religious things

c) Refined, sensitive (of the mind etc.) d) Concerned with spirit and not external reality

Research (Paslawska K and Randolph-Horn D: 2002 Spirituality at Work: LCI) suggests there could be a number views on the word spirituality like: Reality beyond the material Inner experience, the essence of the individual That through which people connect up their experience What makes you authentically human Well-being in its entirety The part of you that is to do with meaning and perhaps purpose That part of you that is to do with social conscience and is to do with being a steward of the planet Relationships The spirit that arrives within a group of people The part of you that connects with the other, the Divine That which helps you make connections

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 That part of you that has a life beyond death; some saw it only to do with death To do with another realm beyond the physical The sphere of ghosts and spirits To do with religion only Something huge and massive that everyone has A concept that was meaningless and inaccessible to them A word that other people use Another researcher (Hicks DA 2003 Religion and the Workplace: Pluralism spirituality Leadership: Cambridge) has found that for many religion and spirituality are overlapping concepts. But Hicks has noted that for most of the people spirituality basically means connectivity (Yoga or Yukta in Sanskrit). The Sanskrit interpretation is mine. The original research findings treat connectivity as something close to relations like predominantly: With self, With others With the planet

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 With some higher purpose/ power/divinity 2.3 The Indian Context: Indian scriptures never equate

Dharma, which actually means spirituality rather than religion, with Upasana or prayers and rituals. Dharma of a human being would mean the unique qualities that distinguish a human being from other beings just as each element of nature like fire or water has a unique quality that distinguishes it. These qualities are truthfulness, piety, forgiveness, tolerance, service to the living beings, a concern for others etc. Men and women, however possess other qualities too which we find in animals or in a demon or Satan. But these are not unique to human beings. A human being is spiritual if these special qualities are developed. (Read Madhukatha published by Sriguru Sangha or the concept of Swadharma in Bhagwat Gita). In fact the idea of Basudha Iba Kutumbakam (this world is like a family) enunciated by the Rishis more than 2 million years ago, bespeaks volumes of

connectedness and relations, which now a globalised world is aiming at. A core concept underlying the Vedic philosophy is accountability; you will be punished or rewarded for your deeds.

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One may perform his/her job completely and yet not perfectly. Perfection here would mean doing every job as if it were Gods job. Doing a job basically to please Him and not for pursuit of ones selfish desires. This paves the way for Niskama Karma i.e. doing ones job sincerely without being attached to the consequences or results thereof. There is then no accountability. And only a true human being alone can achieve this state by continuous practice. So the fundamental issue is to be a true human being, a true spiritual being. Albert Einstein was supposedly once asked: If you asked one question what that question could be? Einstein quickly

responded that he would ask God how the universe began, because after that the rest would all be math. However, after further reflection, Einstein said he would ask God why the universe began, because then he would know the meaning of his own life.

3. Why the discussion of workplace?

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Workplace, as mentioned earlier is the place where we spend the bulk of our time. In a globalized world the business has become more challenging and complex. We have already heard of the oft-repeated mantra: Change or perish. So this is another way of developing a new paradigm for organizational behavior in a rapidly changing and stress-laden global environment. 3.1 The International Center for Spirit at Work (ICSW) uses the

following definition in the application form for the International Spirit at Work Awards: "The Selection Committee offers the following broad

interpretation of spirituality and spirituality in the workplace as a starting point for consideration, with the recognition that each individual may have his/her own personal definitions: The innate human attribute in spirituality: All people bring this as an integral part of themselves to the workplace. Spirituality is a state or experience that can provide individuals with direction or meaning, or provide feelings of understanding, support, inner wholeness or connectedness. Connectedness can be to

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themselves, other people, nature, the universe, a god, or some other supernatural power. The definition further speaks about a vertical component and a horizontal component. The vertical component in spirituality is a desire to transcend the individual ego or personality self. The name you put on the vertical component might be God, Spirit, Universe, Higher Power or something else. The horizontal component in spirituality is a desire to be of service to other humans and the planet. In the horizontal we seek to make a difference through our actions. This dimension is manifested externally. A person with a strong vertical connection who is also able to demonstrate the horizontal dimension has a clear grasp on his/her mission, ethics, values. A strong horizontal component is demonstrated by a service orientation, compassion, and well-aligned vision/mission and values that are carried out in productive effective services and products.

Spirituality in the workplace means that employees find nourishment for both the vertical and horizontal dimensions of

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their spirituality at work. Spirituality in the Workplace is about individuals and organisations seeing work as a spiritual path, as an opportunity to grow and to contribute to society in a meaningful way. It is about care, compassion and support of others; about integrity and people being true to themselves and others. It means individuals and organisations attempting to live their values more fully in the work they do. Examples of vertical organizational spirituality include: meditation time at the beginning of meetings, retreat or spiritual training time set aside for employees, appropriate accommodation of employee prayer practices, and openly asking questions to test if company actions are aligned with higher meaning and purpose. Companies with a strong sense of the horizontal will generally demonstrate some or all of the following: caring behaviors among co-workers; a social to

responsibility

orientation;

strong

service

commitments

customers; environmental sensitivity; and a significant volume of community service activities. The vertical and horizontal dimensions should be well integrated so that motivations (sourced from the vertical) and actions (horizontal manifestations)

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are explicitly linked. We will be honoring organizations that are financially sound, sustainable, and effective, as well as focused on greater meaning and purpose. We believe that when done properly, Spirit at Work enhances the overall value of the organization.

3.2

The model can be worked out. There has been in fact

research on various models including in India. What is significant is not the model or its efficacy or for that mater the whole debate on measures to be adopted for mapping it. Significant is an awareness that spirituality can work in a global villagea growing feeling that perhaps it is worth trying in workplace. The paradigm is important. The spiritual urge we are talking of here may well be a part of the self-actualization level of the need hierarchy. Let us avoid labels and the temptation to proselytize. Truth and Service for instance can be two values that an organization may promote. In essence the exercise is not secular. Let us not bring God (or Goddess for that matter) into the frame now. That could still be an individual choice. Lord Buddha never spoke about God. But He

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was certainly spiritual. Mahatma Gandhi was spiritual not because he spoke about God sometimes but because for him Truth was an absolute value. A person can be indifferent to religion but s/he can be concerned for the fellow human beings (and the reverse can also happen). Norman Keel in his Positive Thinking volumes have given plenty of examples how faith has transformed men and women. Indian managers have also had their share of experiences of grace of God. If anyone reads the chapter on grace of God in Road less Travelled by Scot Peck, can feel how the author quietly felt about some divine force helping us. The key therefore is the quality that makes us a good human being, a spiritual person. Workers will find a new motivation to work and give their 100% if work place kindles their spiritual urge and provides an opportunity to connect and contribute.

4. The role of the Leader The role of the leader no doubt is crucial. A dark leader may simply exploit spirituality for enhancing the bottom line. However, if we want to improve the efficiency or the effectiveness of the

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team, somewhere we may have to seek the spiritual help. Leader-led spirituality can help reduce uncertainty, ambiguity and insecurity (Conger, 1994). Once the leader is willing to exhibit the human qualities of creativity, honesty, truthfulness and trust, the employees will feel the power of human bondage and connectedness in the workplace. Whether or not they believe in God or whether they perceive that they believe in Him or not, they will tend to feel work indeed is worship. They will enjoy what they are doing.

5. Conclusion Spirituality at workplace is a relatively new subject. Let us not seek to club it as a part of Organizational Behaviour or Business Ethics or Philosophy in a hurry. The mortality rate of new concepts is well recorded in the lexicon of management. Be it Blue-ocean Strategy or Fortune at the bottom of the Pyramid or core competence, every new concept is put to very harsh intellectual scrutiny. Spirit at workplace as a concept does not seek intellectual insulation. But let us also not treat it as a fad or a best-

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selling management technique. Research has shown that in every human being there is an inner urge to connect him/her to the world around us, to contribute and obviously to be recognized. Let us give the concept a fair trial. It is not enough if we allow freedom of religion at the workplace. That may be a legal or regulatory compliance. What is important is how the leader perceives the concept of spirit at work. Truth and service are abstract nouns; neither secular nor fundamentalist. Let us convert them into action verbs to enjoy the challenges of a brave world that will always remain new.

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The Anglican Consultative Council: London Kacuchan T. 2007 Social and Spiritual Capital of the Gulen Movement: Ashar H & Lane-Maher 2004 Success and Spirituality in the New Business Paradigm: SAGE Publications. Arslan M :2001 The work ethic values of protestant, British, catholic Irish and Muslim Turkish Managers; Journal of Business Ethics 31 p 321 ff Avis P ed 2003 Public Faith? The State of Religious belief and Practice in Britain, London SPCK And a submission to the Evangelical Alliance Commission on Faith and nation based on the above. Celik G, kirk K Alan Y 2007 Modern Ideals and Muslim Identity: harmony or Contradiction? A Text Linguistic Analysis of the Gulen Teaching and Movement. In International Conference Proceeding Muslim World in transition contributions of the Gulen Movement. Communities and Local Government, Department of: 2008 Preventing Violent extremism winning hearts and Minds: http//www.communities.gov.uk/documents/communities/pdf/32 0752.pdf

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European Stability initiative: 2005: Islamic Calvinists, Change and Conservatism in Central Anatolia. www esiweb.org Faith Matters 2007 Understanding faiths; A practical guide to working with faith communities. ( A development of an earlier piece Knott K and Randolph-Horn DH 2002: Religious Literacy). Griffiths of Fforestfach: 2007: Religion in the workplace: Hugh Kay Memorial lecture 2007: CABE website: www.cabe-online.org Haroutionian A et al: 2000 Learning and Being Outcomes of a class on Spirituality at Work. Journal of Management Education. Hicks DA 2003 Religion and the Workplace: Pluralism spirituality, Leadership: Cambridge. Holy Quran:Yusef Ali 1975 the Islamic Foundation Sura 111 59 Holy Bible 1995: New Revised Standard Version: Oxford University Press. Kale S H :2004: Spirituality, Religion and Globilization: In Journal of Macromarketing, 2004 24 92www.sagepub.comjournalsReprints. Knott K and Randolph-Horn 2004 Religious Literacy: A practical guide to the regions faith communities. Yorkshire and Humber

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Assembly and the Churches regional Commission for Yorkshire and the Humber. Fourth edition. Knott K, McFayden a, McLoughlin S & Francis M 2006: The Roots, Practices and Consequences of Terrorism: For the Home Office Mahmood T: 1997: Diversity and Disadvantage: The Fourth National Survey of Ethnic Minorities. Mitroff I I: 2003 : Do not promote Religion under the Guise of Spirituality: In organisation Vol 10 (2) SAGE: London, thousand oaks, CA and new Delhi. Pina e Cunha M et al 2006 Organisational Spiritualities: An

Ideology-based typology. Business Society 45 211 Scott Peck M: 1978: The Road less travelled; A new Psychology of love, Traditional Values and Spiritual Growth: Simon and Schuster. Sessana L et al: 2007: Spirituality in Nursing and Health Related Literature, A Concept analysis: Journal of Holistic Nursing, p 252ff Singhal M and Chatterjee L 2006 A Person-organization Fit based Approach for Spirituality at Work: Development of a Conceptural framework. Journal of Human Values.

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Mr. Navratan Bothra

Research Scholar, Madhya Pradesh Bhoj Open University, Bhopal

Dr. Ravindra Shukla

Professor & Head Regional Institute of Education, Shamala Hills, Bhopal (M.P.)

Mr. Krishna Murari

Assistant Professor, MITS University, Laxmangarh, Sikar, Rajasthan

Bindiya Tater
Lecturer, Sobhasaria Engineering College, Sikar

Employees Perception Towards Adoption of IT in Banking Service: A Study of Indian Public and Private Sector Banks

Abstract The public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively- According to a report by ICRA Limited, a rating agency. Since liberalization, the government has approved significant banking reforms. While some of these relate to nationalized banks, like encouraging mergers, reducing government interference and increasing profitability and competitiveness, other reforms have opened up the banking and insurance sectors to private and foreign players.

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This study is designed to examine employees perception with regard to IT services offered by the Indian public and private sector banks from Bikaner and Jaipur region of Rajasthan. A questionnaire was developed based on four dimensions Information technologies strategic advantages, technological know-how and organizational capacity, decision-making process and motivations towards Information Technology to ascertain the perception of the employees in public and private sector banks. In total 170 employees from four pubic and three private banks replied to the questionnaire measuring the above mentioned dimensions. The result reveals that State Bank of India (SBI) has become the first Indian bank to adopt technology and improving IT infrastructure as per the above said dimensions and ICICI Bank tops among private banks. New private banks and foreign banks have understood the mantra and hence appointing people with fresh and creative mind with full of knowledge of latest technology and whereas public bank depends on senior staff. The SBI has vast branch of networks in rural, popular and uneducated areas, to which the level of automation and efficiency of services are immaterial. According to the estimate made by the Swiss Banking Association in 2006, India topped the worldwide list for black money with almost $1,456 billion stashed in Swiss banks. This amounts to 13 times the country's total external debt. Many terrorist activities have been occurred in the past three year due to money laundering

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and reverse money laundering activities from banks in India. Government is taking steps to restore the credibility. Keywords: strategic advantages, organizational capacity, decision-making process, technological know-how 1. Introduction The economy of India is the eleventh largest economy in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). Banking is considered as the nerve centre of trade, commerce and business in this country. Banking sector plays a vital role in distributing the money for the development of trade, industry and commerce. Prime Minister Indira Gandhi nationalized 14 banks in 1969, followed by six others in 1980.As on 31st March 2002, out of the over 50,000 branches of Public Sector Banks, only 11,578 branches have been fully computerized. Lack of computerization among over 50,000 branches of Public Sector Banks provides a huge market for players in IT Industry. While new private sector banks and foreign banks have the edge when it comes to computerization, public sector banks have not lagged behind in making investments to computerize their operations. As of end-March 2010, 97.8 per cent of all the public sector bank branches have been fully computerized. Of them, 90 per cent provide CBS. This figure was 79.4 per cent at the end of the previous fiscal.

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In fact, the State Bank of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the world, capturing the 36th rank, as per the Brand Finance study. The brand value of SBI increased from US$ 1.5 billion in 2009 to US$ 4.6 billion in 2010. ICICI Bank also made it to the Top 100 list with a brand value of US$ 2.2 billion. The world witnesses an information and technology revolution (Siam, 2006). This revolution has touched every aspect of peoples life including banking. The banking sector is undergoing a rapid change in order to face the challenges posed by the new developments triggered by the entry of private banks and foreign banks into India. Banks in India, in the new era of global competition, have to concentrate on three important areas for sustained development viz., Technology, Customer and Consolidation. The technology has influenced every aspect of banking system. It is largely technology that is transforming the face of the banking industry. The public sector bank, private sector banks are at the different stages of technology adoption. With the central vigilance commissions guidelines about 70% of bank businesses should be computerized. Indian banking is at the threshold of paradigm shift .The application of technology and product innovations are bringing about structural changes in the banking system. IT has revolutionized the urban sector of banking manifold but e-banking in the rural areas has not been taken care. If e216

banking is implemented in the rural sector, it would be a great boon to the rural areas. The public sector banks having vast branch of networks in rural, popular and uneducated areas, to which the level of automation and efficiency of services are immaterial. Still, these areas lack the basic infrastructure .so; it is possible to introduce e-banking technologies. The profitability of any organization depends on the productivity of its people, as they are the real strength of the organization. The need of the hour is to develop and manage the human resource to make adaptable to the changing environment. New private banks and foreign banks have understood the mantra and hence appointing people with fresh and creative mind with full of knowledge of latest technology. The Global financial Integrity a Non-profit research organization working in the area of Tax Havens has estimated for India that the present value of illegal financial flows held abroad is $500 Billions. This means that almost three-quarters of the illicit assets comprising India's underground economywhich has been estimated to account for 50 percent of India's GDP (approximately $640 billion at the end of 2008)ends up outside of the country. The government suffers from serious loss of credibility because of the Lichtenstein Bank affair, the Hasan Ali and Quattrocchi cases and the serious allegations that billions of dollars are lying in secret Swiss bank accounts in the name of politician belonging to the Congress Party.

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The Government of India can ask the world governments and the different banks committed to secrecy like the Swiss Banks, to recognize Indian government as the beneficiary of the undeclared wealth, bank account and other assets of the Indian nationals till the owner of the wealth, bank accounts and other assets is able to prove that he had acquired it by fair means and from legally valid sources. Literature review This section will concentrate on summarized findings of relevant researches. Survey of relevant contributions Al-Hajri (2008) examined various factors that might act to determine whether a given technology is likely to be adopted by the banking industry in developing country such as Oman by comparing it with a developed country such as Australia. The result indicated that relative advantage, organizational performance, Customer organizational relationship and ease of use, can shed light on the reasons for adoption of Internet technology. Mario Castelino (2006) suggests that Indian banking industry has provided the leading edge to what is happening to the Indian economy. Banks have equipped themselves with the latest of technology--core Banking. Business Process Reengineering has been introduced to enhance spleen and efficiency of delivery, technology, change, knowledge about computing and the Internet affected the usage of different channels.
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Shastri, R.V. (2000), studied the emergence of IT in banking sector. He highlighted some challenges faced by banks regarding IT implementation. Information technology becomes a strategic asset when it makes the entire business adaptive and ready for change by connecting people, process, and information to drive results. An effective information technology investment reflects the organizations complex values, social structure, process, and practice. IT also helps companies understand the complexities of data, because that data may reveal customer and market insights in the firms area of expertise. 2. Objective of the study The objective of present study is to know the IT advantages for the major IT operation i.e. Information Technologies Strategic advantages, Technological knowhow and organizational capacity, Decision making process and Motivation towards Information Technology. 3. Scope of the Study Seven banks have been considered for comparing the employee perception about adoption of IT in public and private sector banks. State Bank of India (SBI), Bank Of Baroda(BOB),Oriental Bank of Commerce (OBC),Punjab National Bank (PNB) have used from public sector whereas ICICI, HDFC and AXIS banks have used from private sector banks for this study.

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4. Data collection The study made use of both Primary and Secondary Source of data: The data from the Primary sources have been collected with the help Employees of the Bank and customers. The secondary data has been collected from magazines, journals, Internet searches; libraries etc. 5. Questionnaire Development The questionnaire was developed as per the following mechanism: For the purpose of this analysis, a structured questionnaire was developed in two stages; an exploratory study was carried out using personal and focus group interviews. This was done to understand the factors influencing employees preferences towards IT uses in banking operation. In the second stage, based on findings of the exploratory study, a 7point summated scale was developed. Items in the questionnaire cover four dimensions i.e. Information Technology, Technology Know-how, Organizational capacity, Decision making process and Motivation towards information Technology. 6. Methodology A Questionnaire (enclosed in appendix 1 &2) having 27 questions covering four major IT uses i.e. Information Technologies Strategic advantages, Technological know-how and organizational capacity, Decision making process,
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Motivations toward Information Technology was circulated among the bank employees for primary data collection. 30 copies of questionnaire were distributed in different branches of each bank out of which the followings number of questionnaire returned back with full information: SBI: 24 BOB: 24 OBC: 25 PNB: 20 ICICI: 28 HDFC: 25 AXIS: 24

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7. Data Analysis 7-point summated scale has been used to analyse the data, collected from questionnaire. A 7-point summated scale is a psychometric scale commonly used in questionnaires, and is the most widely used scale in survey research. When responding to a questionnaire item, respondents specify their level of agreement to a statement. 8. Scoring and analysis After the questionnaire is completed, each item may be analyzed separately or in some cases item responses may be summed to create a score for a group of items. The seven point summated scale has been used in the current study the calculations are as below: Cumulative Score Information Technologies Strategic Advantages Facto SBI BOB OBC PNB ICICI HDFC AXIS F1 75 71.4285 68.5714 76.4285 75.510 79.42857 75 rs F2 70.23 67.2619 70.2857 75 75.510 76.57143 76.19048 7 29 7 F3 72.02 69.6428 74.2857 79.2857 2 77.040 80.57143 69.64286 81 F4 76.78 69.0476 14 71.4285 76.4285 2 77.551 78.28571 72.02381 381 6 14 1 Technological 71 Know-How & 82Organizational 7 02 Facto 571 2 SBI BOB OBC PNB ICICI HDFC AXIS Capacity F1 80.35 69.6428 76 75.7142 79.591 79.42857 70.2381 rs F2 76.19 69.6428 65.7142 64.2857 80.102 70.85714 73.80952 714 6 F3 74.40 69.0476 81.1428 9 67.8571 84 78.061 79.42857 80.35714 048 6 04 F4 70.23 72.0238 86 74.2857 1 65 80.102 79.42857 76.19048 476 2 57 4 F5 73.21 70.2381 73.1428 76.4285 22 78.571 77.71429 73.80952 81 1 14 F6 73.21 69.0476 78.8571 76.4285 04 76.020 68.57143 72.02381 429 70.2381 57 7 F7 76.19 2 73.7142 72.1428 43 85.204 74.85714 76.19048 429 73.8095 43 7 41 F8 71.42 048 72.0238 81.1428 77.1428 81.632 73.71429 80.95238 86 6 F9 70.23 2 73.1428 69.2857 08 78.571 78.85714 71.42857 857 57 65 Decision Making Process6 57 1 43 Facto 81 SBI 1 BOB OBC PNB ICICI HDFC AXIS F1 76.19 75 77.7142 71.4285 79.081 76 75 rs F2 76.19 74.4047 73.1428 75.7142 82.653 76 80.95238 048 71.4285 86 7 63 F3 80.35 6 68 74.2857 75.510 80.57143 78.57143 048 57 9 06 222 714 7 1 2

F4 F5 F6 F7 F8

75 72.0238 74.8571 64.2857 80.612 74.28571 70.83333 76.19 73.8095 72 68.5714 80.102 73.71429 71.42857 1 43 77.97 79.7619 71.4285 1 76.4285 24 77.040 76.57143 69.64286 048 2 3 77.38 79.1666 72 78.5714 04 78.571 82.85714 76.19048 619 70.2381 71 7 75.59 7 72 75.7142 82 80.612 77.71429 69.64286 095 3 Motivations Toward Information 43 Technology 524 BOB 9 24 Facto SBI OBC PNB ICICI HDFC AXIS F1 73.80 78.5714 71.4285 75.7142 77.040 84 72.61905 rs F2 75.59 70.2381 80.5714 73.5714 78.571 72 79.16667 952 3 71 9 82 F3 72.61 70.2381 71.4285 67.8571 84.183 86.28571 80.35714 524 76.7857 29 F4 74.40 74.8571 3 64.2857 43 78.061 73.14286 77.38095 905 70.8333 71 4 F5 74.40 1 76 78.5714 67 83.163 83.42857 80.35714 476 70.2381 43 1 22 F6 70.83 3 77.1428 65 80.612 74.28571 75.59524 476 3 27 (Source-Analysis of the responses given by the employees 333 57 24 based on Questionnaire)

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9. Findings from Scores The questionnaire has divided into four major segments. Each segment has some related questions or factors. Followings are the findings of scores: I Information Technologies Strategic advantages F1: Using an external information network in order to identify your requirements Facto AXI rs SBI BOB OBC PNB ICICI HDFC S 71.428 68.5714 76.428 75.51 79.428 F1 75 57 29 57 02 57 75 Interpretation: In SBI bank around 75 percent employees use an external information network in order to identify requirements whereas in BOB bank around 71.4 percent, OBC around 68.5 percent, PNB around 76.4 percent, ICICI around 75.5 percent, HDFC around 79.42 percent and AXIS employees around 75 percent use external information network in order to identify requirements. F2 Knowing the Information Technology used by your competititor Facto PN AXIS rs SBI BOB OBC B ICICI HDFC 70.23 67.26 70.285 75.51 76.571 76.190 F2 81 19 714 75 02 43 48 Interpretation: Private Banks ICICI, HDFC and AXIS know the information technology used by their competitor. But in case of public banks the percentage is low. F3 Instituting a technology watch in order to change rapidly your Information Technology when necessary Fact AXIS ors SBI BOB OBC PNB ICICI HDFC
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72.02 69.64 74.285 79.28 77.04 80.57 69.64 F3 381 286 714 571 082 143 286 Interpretation: Here we can see private sector banks are ahead in order to change their technology whenever it needed. Public banks such as PNB, SBI and OBC are also very conscious about this change in technology. F4 Ensuring that your choice of Information Technology follows the evolution of your environment act AXIS ors SBI BOB OBC PNB ICICI HDFC 76.78 69.04 71.428 76.42 77.55 78.28 72.02 F4 571 762 571 857 102 571 381 Interpretation: Here the maximum employees of HDFC, ICICI, PNB and SBI bank think that the choice of IT follows the evolution of their work environment and rest of other banks are more or less have same choice. II Technological know-how and organizational capacity F1 Mastering current Information Technology products Facto OB AXIS rs SBI BOB C PNB ICICI HDFC 80.357 69.642 75.714 79.591 79.428 70.23 F1 14 86 76 29 84 57 81 Interpretation: This factor shows that SBI bank employees are far ahead to operate current IT products. Around 79% of ICICI & HDFC employees, 76% of OBC employee, and 75% of PNB employees have mastering in current information technology product whereas 70% of AXIS and 69% of BOB employee employees are less efficient to operate current technology products. F2 Maintaining control over projects involved with the acquisition of new technology Fact SBI BOB OBC PNB ICICI HDFC AXIS
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ors 76.19 69.64 65.714 64.28 80.10 70.85 73.80 F2 048 286 286 571 204 714 952 Interpretation: Here the private bank ICICI is ahead then other public and private sector banks. As we can see that around 80% ICICI bank employees acquire new information technology to maintain control over projects whereas PNB has the least figure with around 64% for the same. F3 Being considered as a leader in Information Technology usage Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 74.40 69.04 81.142 67.85 78.06 79.42 80.35 F3 476 762 857 714 122 857 714 Interpretation: Here OBC and AXIS bank both are in technological usage. As we can see that around 81% OBC bank and 80% AXIS bank employees consider themselves as a leader in IT usage whereas PNB has the least figure with around 67% for the same. F4 Development of a technological culture in your firm Fact PN AXIS ors SBI BOB OBC B ICICI HDFC 70.23 72.023 74.285 80.102 79.428 76.190 F4 81 81 714 65 04 57 48 Interpretation: This data also indicate about the awareness of private banks in development of a technological culture. Around 80% of ICICI bank employees are in favor of development of technological culture in bank whereas 74% of OBC employees, 72% of SBI bank are in favor of the same. F5 Having, within the organization, the required human and organizational resources to manage the information systems
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Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 73.21 70.2 73.142 76.42 78.57 77.71 73.80 F5 429 381 857 857 143 429 952 Interpretation: This factor shows the positive response coming from private sector banks. Around 78% employees of ICICI bank,77% of HDFC bank employees , AXIS bank employees believe on required human and organizational resources to manage the information systems within the organization whereas in public sector bank PNB around 76%. F6 Having the ability to effectively identify and fill your needs in Information Technology Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 73.21 69.04 78.857 76.42 76.02 68.57 72.02 F6 429 762 143 857 041 143 381 Interpretation: Again public sector banks are ahead on the ability to effectively identify and fill your needs in Information Technology. OBC bank has the highest percentage with around 78 whereas HDFC has the lowest score with 68 percent. F7 Strategic planning of information systems in relation to the organization's business objectives Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 76.19 70.2 73.714 72.14 85.20 74.85 76.19 F7 048 381 286 286 408 714 048 Interpretation: Private Banks give more concentration on organizations business objectives while planning the information system. Around 85% of ICICI bank employees are agrees with it where as for BOB it is only 70%.
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F8 Mastering the technology presently in use in your organization Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 71.42 73.80 81.142 77.14 81.63 73.71 80.95 F8 857 952 857 286 265 429 238 Interpretation: Both public and private banks are mastering the technology presently use in their organization. Around 81% of ICICI bank employees and 81% of OBC bank employees are agree with it where as for SBI it is only 71%. F9 Using a distributed system to share information within the firm Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 70.2 72.02 73.142 69.28 78.57 78.85 71.42 F9 381 381 857 571 143 714 857 Interpretation: Figures for this factor are different for both public and private sector banks. Around 78% of ICICI and HDFC employees are using a distributed system to share information whereas for PNB it is around 69%. III Decision Making Process F1 Structured approach to acquire the needed information systems Facto BO HDF AXI rs SBI B OBC PNB ICICI C S 76.190 77.7142 71.428 79.081 F1 48 75 86 57 63 76 75 Interpretation: Private sector banks are choosing structured approach to acquire the needed information systems. But again the public banks are bit ahead. Around 79% employees of ICICI bank are agreeing whereas 76% of SBI and 75% of BOB are in favor.
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F2 Use of specific selection criteria for the acquisition of new information systems Fact HD AXIS ors SBI BOB OBC PNB ICICI FC 76.19 74.40 73.142 75.71 82.65 80.95 F2 048 476 857 429 306 76 238 Interpretation: Here private sector bank employees are more concern about the use of specific selection criteria for the acquisition of new information systems. Around 82% employees of ICICI and 80% of AXIS employees are agreeing with it whereas as more or less other public and private banks employees are in favor. F3 Using financial tools in planning the acquisition of new information systems Facto OB AXIS rs SBI BOB C PNB ICICI HDFC 80.357 71.428 74.285 75.51 80.571 78.571 F3 14 57 68 71 02 43 43 Interpretation: this factor is also more or less common in public and private sector banks. Around 80% employees of HDFC and SBI are using financial tools in planning the acquisition of new information systems whereas for OBC it is around 68%. F4 Choosing Information Technology related to the strategic orientation of your firm Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 72.02 74.857 64.28 80.61 74.28 70.83 F4 75 381 143 571 224 571 333 Interpretation: Both public and private sector banks are choosing Information Technology related to the strategic orientation of their firm. But again the private banks are bit
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ahead. Around 80% employees of ICICI bank are agreeing whereas 64% of PNB are in favor. F5 Knowing the impact that IT will have on the different functions of your bank Fact OB AXIS ors SBI BOB C PNB ICICI HDFC 76.190 73.809 68.571 80.102 73.714 71.428 F5 48 52 72 43 04 29 57 Interpretation: Here also the private bank employees are far ahead. Around 80% employees of ICICI bank are using IT in different function of banks. F6 Evaluating potential problems related with the implementation of a new system Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 77.97 79.7 71.428 76.42 77.04 76.57 69.64 F6 619 619 571 857 082 143 286 Interpretation: Public sector banks are ahead in evaluating potential problems related with the implementation of a new system. F7 Knowing the results of a financial feasibility study before the acquisition of IT Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 77.38 79.16 78.57 78.57 82.85 76.19 F7 095 667 72 143 143 714 048 Interpretation: As per the above data both Public and private sector banks know the results of a financial feasibility study before the acquisition of IT. Around 82% employees of HDFC bank know the results of a financial feasibility study before the acquisition of IT whereas for SBI its around 77%.
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F8 Identification of possible sources of resistance to change before implementation Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 75.59 70.23 75.71 80.61 77.71 69.64 F8 524 81 72 429 224 429 286 Interpretation: As per the above data the private sector banks are ahead in identifying the possible source of resistance to change before implementation. Around 80% employees of ICICI bank know Identification of possible sources of resistance to change before implementation of IT whereas for BOB its around 72%. IV Motivations toward Information Technology F1 Use of IT to reduce your production costs Fact HD AXIS ors SBI BOB OBC PNB ICICI FC 73.80 78.57 71.428 75.71 77.04 72.61 F1 952 143 571 429 082 84 905 Interpretation: As per the above data private sector banks Use IT to reduce production costs. Around 84% employees of HDFC are in favor whereas 71% employees of SBI are in support of use of IT to reduce your production costs. F2 Use of IT to make substantial savings Fact HD AXIS ors SBI BOB OBC PNB ICICI FC 75.59 70.23 80.571 73.57 78.57 79.16 F2 524 81 429 143 143 72 667 Interpretation: Here both public and private sectors bank believe in use of IT to make substantial savings. Around 80% employees of OBC are in favor whereas 79% employees of AXIS are in support of use of IT to make substantial savings. F3 Use of IT to improve your firm's productivity
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Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 72.61 70.2 71.428 67.85 84.18 86.28 80.35 F3 905 381 571 714 367 571 714 Interpretation: Here private banks are much ahead than Public sector banks. Around 86% employees of HDFC, 84% employees of ICICI and 80% employees of AXIS think that IT is useful to improve firms productivity whereas 67% employees of PNB are in support. F4 Use of IT to increase your firm's profitability Fact AXIS ors SBI BOB OBC PNB ICICI HDFC 74.40 76.78 74.857 64.28 78.06 73.14 77.38 F4 476 571 143 571 122 286 095 Interpretation: Here there is not much difference between both public and private sector banks. They all feel that IT increases the profitability. Around 78% employees of ICICI bank and 76% employees of BOB use IT to increase firm's profitability. F5 Use of IT to improve the quality of products or services Fact OB AXIS ors SBI BOB C PNB ICICI HDFC 74.404 70.833 78.571 83.163 83.428 80.357 F5 76 33 76 43 27 57 14 Interpretation: Here there is a good difference between both the banks. Around 83% employees of ICICI and HDFC think that IT is useful to improve the quality of product or services whereas PNB shows 69%. F6 Use of IT to respect the deadlines requested by your customers Fact AXIS ors SBI BOB OBC PNB ICICI HDFC
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70.83 70.23 77.142 80.61 74.28 75.59 F6 333 81 857 65 224 571 524 Interpretation: Here there is a good difference between both the banks. Around 80% employees of ICICI think Use of IT to respect the deadlines requested by your customers whereas PNB shows 65%. Strategies: 1. Public sector banks should adopt the latest technology to provide e-services as need of the hour. It will also reduce the burden of extra of extra establishment expenditure. 2. New private and foreign banks are appointing fresh and creative mind people having full of latest technology. Similarly the public banks should also take initiatives as it is the need of the hour and train the old ones. 3. Public sector banks should make their own effective competitive strategies taking into consideration about the strategies of private banks. 4. Banks must spread their e-services in the rural and unbanked areas. 5. Technology should be cost effective, customer driven and easy to implement in the real working. 6. The government of India should launch a campaign to educate people about IT/ computerization and its implications in order to eradicate negative attitude and suspicions. 7. The government should take strict step against the peoples involving in bank scam and drawing black money for terrorism activities. 8. Moral and ethical response needed from the political class. Constitutional, legal, geo-political, moral and
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ethical measures needed to recover the Indian wealth illegally stashed away abroad. 9. Bank should look into CRM to improve operational efficiencies leading to customer convenience and cost saving. Conclusion: The study concludes that more development in the technology is taking place. Financial sector reforms experienced that as compared to new private sector banks and foreign sector banks, public sector banks use less IT. ICICI Bank has been the leader in IT introduction and adoption of technical advantages. This IT in new private sector and foreign banks is becoming threat and also motivation for public sector banks. Thus in this stiff competition only those banks will survive in the future which will manage technology infrastructure. The banks are continuously expanding their networks as per their rules. Human resource is the real strength in any organization. Public banks should appoint creative and fresh mind people full of latest technology. Public bank and private banks should take initiative to provide e-service in rural areas. On the other side to the banks should take initiatives to track and trace black money drawn for terrorism activity from Indian banks to Swiss bank. Information technology has not only simplified the operation but it has also given a great comfort to an individual who does not have a good knowledge of IT but need to access banking in an optimum manner.

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Reference: Books: Balachandher Krishnan Guru, Santha Vaithilingam, Norhazlin Ismail, and Rajendra Prasad, Electronic Banking in Malaysia: A note on Evolution of services and consumer reactions (2001). Chang YT (2003). Dynamics of banking technology adoption: an application to internet banking, Department of Economics, Workshop Presentation, University of Warwick, Coventry, UK. Comer (Douglas E.) The Internet: Everything you need to know about computer networking and how the Internet works- 3rd editions. Pearson Education, Delhi (2002). Diwan (Parag) and Sharma (Sunil).E-Commerce. Excel Book (2003). Gates B. (2008) Banking is essential, banks are not.http://www.slideshare.net/Carolederks/banking-isessential-banksare-not presentation. Maiyaki AA, Mokhtar SS (2010). Effects of electronic banking facilities, employment sector and age-group on customers choice of banks in Nigeria. J. Int. Bank. Comm., 15(1): 1-8 Rahman MM (2007). Innovative technology and bank profitability: The Bangladesh experience. Policy Analysis Unit (PAU), Bangladesh Bank WP 0803.

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Tan, M. and Teo, T. 2000. "Factors Influencing the Adoption of Internet Banking." Journal of the Association for Information Systems 1(5): 1-42 Publication: [1]. Bank Quest, 0ct 2008, p.no.22 [2]. Business India, March 2006, p.no.14 [3]. Business Today, May 2005, p.no.16 [4]. ICFAI Journal of Information and Communication Technology [5]. RBI Bulletin Research Papers: [1]. Dr. R.K.Uppal (January 2011), e-delivery channel in banks-a fresh outlook International referred research journal, Vol. No-II. Article [1]. Bank, money laundering and terrorism by Nick Kochan published in Euro money

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Online Article, INDUSTRY TRENDS, IT-BOP SECTOROVERVIEW http://www.nasscom.in/Nasscom/templates/NormalPage. aspx?id=56966 [Accessed on 31-DEC-2009] 1 http://www.nasscom.in/upload/57714/Nasscom_Hewitt_ Total_RewardsPresentation_Nirmal.ppt [Accessed on 31DEC-2009] http://en.wikipedia.org/wiki/Spirituality_at_Work 2010] [1-Jan-

Technology, I., & Services, E. (2009). Factors Affecting Employee Attrition: A Multiple Regression Approach. Journal of Management, VIII (5). Atanu Adhikari Fastest, T., & Sector, G. (2008). Preferences as a Strategic Approach to Tackle Attrition: IT and ITES Industry Perspective, 25-35.S.C. Poornima Thomas W. Lee and Terence R. Mitchell (2003). Control Turnover by understanding its causes. In Edwin A. Locke (Eds). The Blackwell handbook of principles of organizational behavior, Blackwell publishing. Malhotra Naresh (2008), Marketing Research an applied Orientation, 5-th Edition, Pearson Education. Timothy Judge (2003). Promote job satisfaction through mental challenge In Edwin A. Locke (Eds) The Blackwell handbook of principles of organizational behavior, Blackwell publishing.
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Stephen Robbins, Timothy Judge and Seema Sanghi (2009) Organizational Behavior (13-th Edition) Pearson Prentice Hall, Indian Edition. Goldstein, D.K., Rockart, J. F. (1984). An Examination of work-related correlates of Job Satisfaction in Programmer/Analysts, MIS Quarterly (June). SUMNER Mary, NIEDERMAN FRED. (n.d.). The impact of gender differences on Job Satisfaction, Job Turnover, And Career Experiences of Information systems professionals. Journal of computer information systems. Winter 20032004 Igbaria, M., & Guimaraes, T. (1992). Antecedents and consequences of job satisfaction among information center employees. Proceedings of the 1992 ACM SIGCPR conference on Computer personnel research - SIGCPR '92, 9(4), 352-369. New York, New York, USA: ACM Press. Doi: 10.1145/144001.372749. Poole, E. (2009). Organizational Spirituality A Literature Review. Journal of business ethics, 577-588. Doi: 10.1007/s10551-008-9726-z. Clark, L., Leedy, S., McDonald, L., Muller, B., Lamb, C., Mendez, T., et al. (2007). Spirituality and job satisfaction among hospice interdisciplinary team members. Journal of palliative medicine, 10(6), 1321-8. Doi: 10.1089/jpm.2007.0035.
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Milliman, J., Czaplewski, A. J., & Ferguson, J. (2000). Workplace spirituality and employee work attitudes. Journal of Organizational Change Management. Doi: 10.1108/09534810310484172. Tracey E. Robert, J. Scott Young, V. A. (2006). Relationship between adult workers Spiritual well-being and jobsatisfaction: A preliminary study. Counseling and Values, 06824, 165-176. Online Article, INDUSTRY TRENDS, IT-BOP SECTOROVERVIEW http://www.nasscom.in/Nasscom/templates/NormalPage. aspx?id=56966 [Accessed on 31-DEC-2009] 1 http://www.nasscom.in/upload/57714/Nasscom_Hewitt_ Total_RewardsPresentation_Nirmal.ppt [Accessed on 31DEC-2009] http://en.wikipedia.org/wiki/Spirituality_at_Work 2010] [1-Jan-

Technology, I., & Services, E. (2009). Factors Affecting Employee Attrition: A Multiple Regression Approach. Journal of Management, VIII (5). Atanu Adhikari Fastest, T., & Sector, G. (2008). Preferences as a Strategic Approach to Tackle Attrition: IT and ITES Industry Perspective, 25-35.S.C. Poornima

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Thomas W. Lee and Terence R. Mitchell (2003). Control Turnover by understanding its causes. In Edwin A. Locke (Eds). The Blackwell handbook of principles of organizational behavior, Blackwell publishing. Malhotra Naresh (2008), Marketing Research an applied Orientation, 5-th Edition, Pearson Education. Timothy Judge (2003). Promote job satisfaction through mental challenge In Edwin A. Locke (Eds) The Blackwell handbook of principles of organizational behavior, Blackwell publishing. Stephen Robbins, Timothy Judge and Seema Sanghi (2009) Organizational Behavior (13-th Edition) Pearson Prentice Hall, Indian Edition. Goldstein, D.K., Rockart, J. F. (1984). An Examination of work-related correlates of Job Satisfaction in Programmer/Analysts, MIS Quarterly (June). SUMNER Mary, NIEDERMAN FRED. (n.d.). The impact of gender differences on Job Satisfaction, Job Turnover, And Career Experiences of Information systems professionals. Journal of computer information systems. Winter 20032004 Igbaria, M., & Guimaraes, T. (1992). Antecedents and consequences of job satisfaction among information center employees. Proceedings of the 1992 ACM SIGCPR conference on Computer personnel research - SIGCPR '92,
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9(4), 352-369. New York, New York, USA: ACM Press. Doi: 10.1145/144001.372749. Poole, E. (2009). Organizational Spirituality A Literature Review. Journal of business ethics, 577-588. Doi: 10.1007/s10551-008-9726-z. Clark, L., Leedy, S., McDonald, L., Muller, B., Lamb, C., Mendez, T., et al. (2007). Spirituality and job satisfaction among hospice interdisciplinary team members. Journal of palliative medicine, 10(6), 1321-8. Doi: 10.1089/jpm.2007.0035. Milliman, J., Czaplewski, A. J., & Ferguson, J. (2000). Workplace spirituality and employee work attitudes. Journal of Organizational Change Management. Doi: 10.1108/09534810310484172. Tracey E. Robert, J. Scott Young, V. A. (2006). Relationship between adult workers Spiritual well-being and jobsatisfaction: A preliminary study. Counseling and Values, 06824, 165-176.

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Santosh Sali
Japan 134-0088, Tokyo, Edogawa-ku XLRI Jamshedpur

Spiritual Belief and Job Satisfaction: A Study Among Indian IT Professionals

Abstract Spirituality is the emerging area of interest in the Organization Behavior arena. This paper looks at the Spiritual Belief, whether it is prevalent among Indian Information technology (IT) professionals and how is it related with Job Satisfaction? Further with the help of data collected from 156 respondents we assess the moderating effect of location of posting of employee on the spiritual belief and jobsatisfaction relationship. Pearsons correlation and Hierarchical regression is employed to test hypothesis. Results indicated that Spiritual belief is weakly associated with Job Satisfaction (r=0.192, p<0.05) .Location of posting of employee do not have any moderating effect on relationship (Change in R-square = 0) and moderating model is not significant. INTRODUCTION Information technology (IT) industry in India is booming. The National Association of software and services companies (NASSCOM) data shows that total IT-BPO industry to reach USD 71.7 billion about 5.8% of Indias GDP. (NASSCOM
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website). i Direct employment in IT sector in India is expected to reach 2.23 million. Moreover IT industry is considered lucrative employment with almost 15% increase in 2007-2008. (According to NASSCOM site).ii No wonder that IT industry is considered dream location, but it has its downside. And it is plagued by heavy attrition (Poornima 2008, Adhikari 2009). This poses serious problem for an Industry in general. As quoted by Thomas Lee and Terence Mitchell (2003) Losing a single key knowledge worker can not only decrease the likelihood of a project success, but it can also reduce investors confidence in the firm and thereby dramatically lower the firms stock price.(p.91). Turnover or attrition is negatively related to job satisfaction (Robbins, Judge, and Sanghi 2009). Further Job satisfaction is important factor in thoughts of quitting, intentions to search and to leave (Mitchell and Lee 2003). Hence a principle that reveals how to promote Job satisfaction is important to study attrition or turnover. (Judge 2003). Majority of studies about Job Satisfaction reflects Hackman and Oldhams Job characteristic model (JCM) which argues intrinsic nature of work is core underlying factors focusing employees to be satisfied with the job.(Judge 2003) .Additional factors are also being studied to understand job satisfaction. For example Goldstein and Rockart (1984) have studied role conflict, role ambiguity and leadership characteristics as it correlates with Job Satisfaction. Igabaria and Guimaraes (1993) have studied work, supervision, coworkers, pay and promotion as it relates to information center employees.
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Sumner and Niederman (2003) studied impact of gender on job satisfaction on Information systems professionals. This particular study in the present article is focused on spirituality and job satisfaction within Indian IT professionals and hopes to add a bit in the understanding of emerging organizational behavior side of spirituality within Indian IT domain. Spiritual belief is it common among Indian IT professionals is the first research question addressed. H1: Spiritual belief is prevalent among Indian IT professionals. Spirituality is relatively new idea in the workplace. But it is taking roots in the management parlance .This is quite evident with the articles in mainstream media like business week , Wikipedia and with many emerging organizations motivated to study spirituality at work . Early research in Spirituality is more anecdotal .But now Organizational spirituality is accepted focus in rigorous and methodical research work with special issues on spirituality in peerreviewed journals. (Poole 2008). Though there are different definitions offered by various authors. (Plowman & Duchon 2005) The most accepted definition is developed by Ashoms and Duchon (2000) .According to them Spirituality is defined as The recognition that employees have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community Thus we see spirituality at work as having three components : The inner life , meaningful work, and community

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This inner life and meaningful work components are reflected in different journal articles. Particularly from Job Satisfaction perspective which is subject matter of this paper. There are various studies that establish a formal hypothesis between dimensions of workplace spirituality and specific behavioral variables, for example like Job Satisfaction. To cite- Tracey ,Young, and Kelley (2006) have studied overall spiritual well being and job satisfaction .The sample for study consisted 200 full-time working adults from northeastern united states, with majority of participants white. Leah Clark et al. (2007) conducted a study of spirituality and job satisfaction among hospice team members in palliative care for dying. This study is focused on studying whether spiritual belief and job satisfaction is associated among Indian IT professionals. Thus hypothesis being tested is H2: Spiritual belief and Job Satisfaction is associated within Indian IT professionals.

Milliman, Czapleswki and Ferguson (2000) studied workplace spirituality and employee work attitudes. This study used Ashomos and duchon workplace spirituality construct and five organizational behavior variables like organization commitment, intention to quit, intrinsic work satisfaction, job involvement and organization based self-esteem. Milliman even suggested conducting the research in different institutional environment and to asses if any of the factors like employee work environment moderate the relationship
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between spirituality and any of work attitudes. In general within Indian IT professionals, abroad posting is sought out as it is better paid and seems to influence standard of living. Hence whether the employee is posted in India or Abroad (dichotomous categorical variable viz. India or Abroad) is assessed as a moderator variable to see its influence on spiritual belief and job satisfaction relationship. Thus hypothesis being tested is H3: Location of posting (India/Abroad) moderates the relationship between spiritual belief and Job Satisfaction. METHODOLOGY This research is an empirical study. Online web-based selfadministered survey questionnaire is used to do the investigation. As per Cooper and Schindler (2009) nonprobability sampling method with convenience (an initial group of respondents is selected by convenience) and snowball sampling (initial respondents are requested to identify others who belong to the target population of Indian IT professionals) is used. This provides cost and time advantage and gives acceptable results. Total 510 respondents viewed the questionnaire, but only 305 respondents choose to reply (59.89%) and out of which 215 respondents completed the full questionnaire (42.15% of 510). But as study was focused on Indian IT professionals, 8 respondents, identified as non-Indian are removed. As well as
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39 respondents -identified as non-IT professionals & 3 blank records for non-IT professionals are also removed. This gave 156 total respondents data set to analyze.

Survey instrument had 30 items spread over 5 sections. First section captured demographic data and rest of 4 sections captured variables under study 1. Spiritual belief or Spiritual well being 2- Spiritual Integrity 3-Self-actualization 4- Job Satisfaction. These scales are borrowed from paper published in Journal of Palliative Medicine (Clark, et al 2007). This article is focused only on the Spiritual belief and Job Satisfaction.

Demographic collects data about age (less than 25 , 25-30,3135,36-40,41-45,46-50 and more than 50 ) , Gender ( Male , Female ) , Current location of posting ( India, Abroad ), Citizenship of India ( Yes, No) and whether works in IT industry ( Yes, No).

Spiritual belief or spiritual well being is measured on 7-item scale with ratings as strongly agree, Moderately Agree, Agree, Disagree, Moderately Disagree. This is Jarel spiritual well being scale. Spiritual belief or spiritual well being is operationalized according to Clark et al (2007:1328), The attitudinal propensity to have meaning in life through the sense of relatedness of oneself to a supreme being.
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Cronbach alpha obtained by Clark et al. (2007) was 0.77, while the value for the current study is 0.83. Job Satisfaction is measured on 7-item Likert scale with ratings as Strongly Agree, Agree, Not sure, Disagree, Strongly Disagree. Job Satisfaction according to Clark et al. (2007:1328), Favorable/unfavorable attitudinal disposition toward their current job. Cronbach alpha obtained by Clark et al. (2007) is 0.74, while the value for the current study is 0.75. Primary relationship of interest for this study is spiritual belief and job-satisfaction relationship and whether relationship is moderated by location of posting of employee (India/Abroad). Dependent variable job satisfaction (JOB) is regressed onto independent variables (Spiritual belief) and moderator variable (Location). According to Frazier, Tix, Barron (2004) hierarchal moderated regression is used to test the moderation hypothesis. Predictor variables are centered according to Frazier, Tix, Barron (2004). Interaction term is computed by centering predictor variables and then multiplying with moderator variable. Within Hierarchal moderated regression - main effects of predictor and mediator is entered in step 1 and step-2 and interaction is entered in step- 2 (Frazier, Tix, Barron 2004).

T-test is conducted to asses prevalence of Spiritual belief among population of Indian IT professionals.
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RESULTS Demographic profile of respondents by age and gender is reported in Table-1. Out of total 156 respondents 78.84% were male and 21.15% were female. Age wise majority of sample represents 25-30 and 31-35 age-groups with percentage as 33.33% and 32.05% respectively. Distribution of sample members with respective to work-location in India and Abroad are also same with 50.64% in India and 49.36% Abroad. Table 2 is correlation matrix indicating mean and standard deviation values. Table-3 indicates t-test summary for Spiritual belief. Spiritual belief is found to be prevalent among Indian IT professionals with mean 32.58 and standard deviation 6.542 (range of 7-42, when not centered, Standard Error 0.524). It is significant t (155) =62.19 p<0.01. This supports hypothesis H1. Spiritual belief is found to be positively correlated with job satisfaction and the relationship is statistically significant, but the correlation is found to be weak. (r=0.192, p < 0.05).Thus we have support for Hypothesis H2. Table-4 shows the results of hierarchical regression. Base line model is used in step-1 and interaction term is added in step2. Spiritual belief explains 3.7% of variability in Job satisfaction. Change in R-square is found to be 0.00, thus adding moderator does not change anything in the equation.
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Model is also not significant. Hypothesis H3 for moderating variable effect does not have adequate evidence. DISCUSSION This study focused on Indian IT professionals. Study attempt to extend the concept of spiritual belief within Indian IT professional domain. It is found that spiritual belief though prevalent -is weakly correlated with job satisfaction .Further spiritual belief as predictor slightly explains the variability in the Job Satisfaction. This is in line with various studies cited in the Introduction section viz. Leah Clark et al. (2007) with r=0.276, Tracey, Young, and Kelley (2006) with r=0.372). Location of posting (India/Abroad) of Indian IT professional which affects standard of living and work-environment, though perceived to impact the relationship, it is found that it does not moderate the relationship between Spiritual belief and job satisfaction. Study has certain limitations. Study uses self-report method using web-based forms, which has its inherent limitations of non-validated sample, lack of control on respondents. (Malhotra, 2008). Further there is difference in the way Spirituality is defined and operationlized in different studies. Spirituality is evolving area and scales developed for different studies need to be validated in Indian context to see how it works. Moreover this study is using Spiritual belief as a predictor variable. Other covariates like integration of spiritual belief, level of actualization, religious denomination are not considered. According to Frazier, Tix, Barron (2004) including covariates can increase overall R-square. Moreover
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there is a need to have a strong theoretical support for testing of moderator with nature of interactions specified priori (Frazier, Tix, and Barron 2004). Though the effect of offshore or abroad posting is tested .There is not much theoretical support for it. Spirituality is emerging topic of interest particularly among Indian IT professionals and in general in south-east Asia. And it has potential to impact workplace behavior. This study is a small step in that direction. APPENDIX: Table-1 Demographic Profile of Respondents in % N = 156 GENDER MALE FEMALE AGE Less than 25 25-30 31-35 36-40 41-45 46-50 8.33 33.33 32.05 17.95 4.49 2.56
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78.84 21.15

More than 50

1.28

Location of Posting ( India/Abroad ) India Abroad Table-2 Correlation Matrix mea n S.D. Job Satisfaction Spiritual Belief Location 50.64 49.36

Job 25.99 4.415 Satisfacti on Spiritual Belief 32.58 6.542 0.192 * 2 0.501 -0.015 ** 5 -0.074 **

Location 0.49

Notes N = 156, Data was centered for predictor variables, *p < 0.05, ** (Not significant.) Table-3 T-test mea n S.D. t-value

Spiritual 32.58 6.542 62.19* Belief(N) 2

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N=156, *<0.01 Table-4 Hierarchical Regression Analysis (As specified by RPHRM Journal) Variables Model 1 Model 2 Model 3 Spiritual Belief Location .005 Spiritual Belief X Location R-square R-Square Change F 0.023** N=156, *p < 0.05, ** n.s. Table-5 Hierarchical Regression Analysis (As specified by APA format Source Andy Field) B Step 1
253

0.129

0.129 -0.004 -

0.129

-0.017 0.037 0.000 0.000** 0.037

0.037 0.037 5.873*

0.000

SE B

B Constant Spiritual Belief Location Step 2 Constant Spiritual Belief Location 25.99 0.13 -0.004 25.99 0.13 -0.004

SE B 0.35 0.5 0.7

0.19 *

0.35 0.5 0.7 0.11 -0.12 ** 0.19 *

Spiritual Belief X -0.02 Location

R-Square - 0.037 For Step 1, Change in R-square - 0.00 For Step 2 (p > 0.05) * p < 0.05, ** p > 0.05 (not significant)

254

REFERENCES: Online Article, INDUSTRY TRENDS, IT-BOP SECTOR-OVERVIEW http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id= 56966 [Accessed on 31-DEC-2009]

http://www.nasscom.in/upload/57714/Nasscom_Hewitt_Total_Re wardsPresentation_Nirmal.ppt [Accessed on 31-DEC-2009]

http://en.wikipedia.org/wiki/Spirituality_at_Work [1-Jan-2010]

Technology, I., & Services, E. (2009). Factors Affecting Employee Attrition: A Multiple Regression Approach. Journal of Management, VIII (5). Atanu Adhikari

Fastest, T., & Sector, G. (2008). Preferences as a Strategic Approach to Tackle Attrition: IT and ITES Industry Perspective, 25-35.S.C. Poornima

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Thomas W. Lee and Terence R. Mitchell (2003). Control Turnover by understanding its causes. In Edwin A. Locke (Eds). The Blackwell handbook of principles of organizational behavior, Blackwell publishing.

Malhotra

Naresh

(2008),

Marketing

Research

an

applied

Orientation, 5-th Edition, Pearson Education.

Timothy Judge (2003). Promote job satisfaction through mental challenge In Edwin A. Locke (Eds) The Blackwell handbook of principles of organizational behavior, Blackwell publishing.

Stephen Robbins, Timothy Judge and Seema Sanghi (2009) Organizational Behavior (13-th Edition) Pearson Prentice Hall, Indian Edition.

Goldstein, D.K., Rockart, J. F. (1984). An Examination of workrelated correlates of Job Satisfaction in Programmer/Analysts, MIS Quarterly (June).

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SUMNER Mary, NIEDERMAN FRED. (n.d.). The impact of gender differences on Job Satisfaction, Job Turnover, And Career Experiences of Information systems professionals. Journal of computer information systems. Winter 2003-2004

Igbaria, M., & Guimaraes, T. (1992). Antecedents and consequences of job satisfaction among information center employees.

Proceedings of the 1992 ACM SIGCPR conference on Computer personnel research - SIGCPR '92, 9(4), 352-369. New York, New York, USA: ACM Press. Doi: 10.1145/144001.372749.

Poole, E. (2009). Organizational Spirituality A Literature Review. Journal of business ethics, 577-588. Doi: 10.1007/s10551-008-9726z.

Clark, L., Leedy, S., McDonald, L., Muller, B., Lamb, C., Mendez, T., et al. (2007). Spirituality and job satisfaction among hospice interdisciplinary team members. Journal of palliative medicine, 10(6), 1321-8. Doi: 10.1089/jpm.2007.0035.

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Milliman, J., Czaplewski, A. J., & Ferguson, J. (2000). Workplace spirituality and employee work attitudes. Journal of Organizational Change Management. Doi: 10.1108/09534810310484172.

Tracey E. Robert, J. Scott Young, V. A. (2006). Relationship between adult workers Spiritual well-being and job-satisfaction: A

preliminary study. Counseling and Values, 06824, 165-176.

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Aniisu K Verghese
Department of Mass Communication St. Aloysius College, Mangalore

Media, Manipulation and Whistle-Blowing - Challenges and Directions for Change

Abstract Media and manipulation has been in the news lately with controversial events in India and abroad such as the 2G auction scam and the Wikileaks scandal resulting in loss of image, trust and transparency for organizations. However, most of these events involve whistle-blowing of internal communication in the public domain embarrassing stakeholders and forcing

organizations to take action. Research reports indicate that whistle blowing is a positive sign and a release valve for an organization to demonstrate its commitment to remain

transparent. This descriptive study identifies trends shaping how media is perceived and the role of citizens, employees and

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organizations in overcoming dwindling levels of trust and credibility. Key words: media, manipulation, whistle-blowing, internal communication, trust, credibility, India, scandals

1.Introduction

For many years organizational wrong doings have been reported in a phenomenon called whistle blowing. Whistle blowing has been defined as the disclosure by organizational members (former or current) of illegal, immoral or illegitimate practices under the control of their employers, to persons or organizations who may be able to take action. (Miceli and Near 1995). This usually involves a difficult decision by the individual to either be loyal or raise an ethical issue.

Media manipulation on the other hand often involve the suppression of information or points of view by crowding them out, inducing other people or groups of people to stop listening to certain arguments or by simply diverting attention elsewhere. This paper identifies trends in media, manipulation and recommends
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methods by which citizens, organizations and employees can play a role in overcoming fraud and corruption.

According to Wikipedia a whistle blower is a person who raises a concern about alleged wrongdoing occurring in an organization, private or public or agency which is expected to be operating within the bounds of the law. It isnt easy being a whistle-blower with the range of reprisals including loss of employment, workplace harassments, humiliation and personal threats. (Bather and Kelly, 2005). Sherron Walkin (who warned of Enrons accounting scandals), Coleen Rowley (who highlighted glitches in the 9/11 investigations) and Cynthia Cooper (who alerted the WorldCom board about accounting irregularities) were highlighted as well whistle-blowers by Time magazine in 2002 drawing the importance of this phenomenon. (Khanka, year unknown). However, trends indicate that whistle-blowing will increase in the future with the relentless pressure from consumers and also due to legal changes that encourages transparency. 2.Whistle Blowing, Media and Manipulation

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When reported to outside bodies, be it media, regulatory agencies or public interest groups it is called external whistle-blowing (Bather and Kelly, 2005). Two important outcomes of whistleblowing are the future organizational performance and organizations control of elements in the external environment. Miceli and Near (1995) point to a five set of variables in their understanding of whistle-blowing and the complete process. While characteristics of a whistle-blower is someone who is likely to be credible, powerful and stick to statements made, the characteristics of the complaint recipient and wrong doer are related to about credibility and power. Characteristics of the wrong doing include the organizations dependence on it, convincing evidence and legal basis of the complaint. Lastly, the characteristics of the organization are appropriateness of the whistle-blowing, climate supporting, less bureaucratic structure and low organizational power in the environment.

It is known that firms with strong operating or stock market performance are more newsworthy to the media. Reporters are more likely to publish whistle-blowing allegations targeted at

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high-profile companies thereby giving their stories more news value. (Bowen, Call and Rajgopal, 2007).

In this context, media often touted as a big influencer of public opinion is losing its sheen, power and importance due to scandals involving integrity. The only institution to lose trust around the globe is media. Over the last three years, trust in media has fallen from 48 to 45 percent among older informed publics. With the dispersion of traditional medias authority and the rise of opinion journalism, trust in the institution as a whole has waned. (Edelman, 2010). Likewise, Indian media has been losing its credibility and trust among the people. The study has noticed a sharp drop in trust over the past two years in television news in India. However, newspapers are ranked higher than other mediums in terms of credible news. Journalists ranked 30 among 40 professions that Indians look up to, placing it below plumbers and electricians further highlighting the diminishing value of media in the minds of citizens. (Readers Digest March, 2010).

Fraud is on the rise and though fraud detection mechanisms have identified frauds being detected through internal audits and
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whistle-blower methods rather than by accident not many cases are reported where fraudsters were legally booked since most were investigated internally. [KPMG India Fraud Survey Report, 2010).] Among the reasons for this rise are weak internal checks and balances, eroding ethical values and a reluctance on the part of the leaders to take decisive action against the wrong doers. Research points to a staggering 75% of fraudulent activities, except Intellectual Property (IP) fraud were perpetrated by employees and an increase of 45% in fraud (suspected and actual) within organizations.

Close to 1200 of over 4000 companies listed in the Bombay Stock Exchange massaged their financial statements including 25-30 of those listed in the benchmark Sensex. (Barman, year unknown).

The 2G scam and the Radia tapes controversy highlighted how a corporate lobbyist sought to influence, use, manipulate and even browbeat the media in pursuit of her corporate agendas. (Jebaraj, 2011). In the tapes, one prominent journalist admitted to dressing up media stories to suit certain parties. Even to the extent of blacklisting news agencies that didnt toe the line. The entire
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episode drew a backlash from the public with Facebook and Twitter forums labeled Barkhagate after one of the erring journalists.

Despite interventions such as the Government of India Resolution on Public Interest Disclosures & Protection of Informer there have been cases in the recent past such as the 2G scandal exposing corruption involving politicians, media, corporate houses and lobbyists and the silencing of whistle-blower Satyendra Dubey for highlighting the oil mafia. The Wikileaks episode doesnt however indicate the if the organization is a content provider or just a simple carrier of leaked information. (Berger and McDougall, 2011). None the less the coverage and celebrity status the founder received transformed the way the world views traditional media.

Parenti (2001) points to a media bias such as those favoring management over labor, corporations over corporate critics and officialdom over protestors.

3.Media and the New Normal

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Numerous trends point to how media is managed, perceived and portrayed. In a study cited by Bowen, Call, and Rajgopal (2007) reveals corporate fraud media ranks among the most important sources of information. However, media isnt the prey as expected by people. Reporters tend to highlight firms that give them better visibility. With the advent of newer technologies and increased access to resources among people we are witnessing greater exposures of corruption. The Tehelka.com expose called Operation West End did a sting on politicians and officials in a first ever convergent media example in India (Murthy, 2011). Also, with the advent of newer and more discreet gadgets finding its way into the hands of people there is bound to be more and more internal information leaking out to the public space. Privacy is a serious concern with wire tapping and content usage without permission emerging as two key issues. With numerous media agencies vying for news we have noticed a spike in sting operations that expose corruption, collusion and scams. With the proliferation of social media the power of

communication and information sharing are now evenly distributed. In effect you and I are the media. One can conduct a press conference on the web with sites such as http://www.freeInternational Journal of Business Derivatives Vol I No 2 2011 Page 266

press-release.com/, run a recruitment fair on a 3D virtual world called www.secondlife.com and yet not have anything to do with the media directly. During 26/11 people got their news from a photographer who kept updating a Flickr account and

(http://www.flickr.com/photos/priyamdhar/3067496773/)

we know how one can tweet out an update on a product launch (http://www.socialmediaexaminer.com/cisco-social-mediaproduct-launch/) in 140 characters leaving little for the media to play a role in. We have seen how crowdsourcing and social action has taken center stage due to social medias influence. There is a shift in how media is leveraged by people to rally social action and even bring creative ideas to fruit. In India the Noida double murder case http://en.wikipedia.org/wiki/Noida_double_murder_case) received a huge amount of attention not only because the media reported it as national news but because people took to social networks and a groundswell of support kept the investigating agencies on their toes. Attempts to muzzle Wikileaks witnessed unprecedented support (http://www.facebook.com/wikileaks) in terms of funding, technical expertise to keep the site running and

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an uprising from hackers around the world who attacked governments websites opposing the cable expose.

With these changes there can be no top secret information anymore. If organizations believe that they can maintain internal information within their walls with stringent processes and robust systems they couldnt be far removed from reality. Sooner or later people will get to know about plans and interests of organizations with social media playing an integral role in allowing freer access to information. For example, when Wikileaks announced that the next major leak would be a US bank many banks reviewed their internal systems and documents as well as liabilities in case of damaging information getting in the public space.

4.Directions for Change Over the last few years the world has witnessed how both business and government eroded stakeholder trust with frauds such as Tyco and Parmalat. Other examples include medias false reports about weapons of mass destruction, high-risk trading ventures that caused the economic downslide and the collapse of
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long-established companies like Lehman Brothers and GM. Thereafter, businesses and governments have realized the importance of transparency, involving stakeholders in debate and collaborating in tackling larger global issues. Trust today is

considered a new line of business. (Edelman, 2010).

Whistle-blowing will continue to increase innovation and ethical decisions (Micheli and Near, 1995). However, individuals and organizations have roles to play in ensuring expectations and boundaries are adhered to.

Individuals (current and former employees) need to get familiar with technology and how media works, ask questions and avoid becoming a victim of media manipulation. Importantly, no news must be taken at face value. It is a responsibility of corporate citizens to go behind the news to verify facts. Similarly, organizations have a responsibility in becoming a role model and ethical company by protecting the whistle blower. Internal policy changes, demonstrating commitment to

transparency and action will go a long way in addressing trust and credibility concerns. Senior leadership also need to get familiar
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with latest trends and technologies and understand their employees needs better. Having early warning mechanisms always helps to preempt issues before they reach breaking point. Those organizations which accepted their wrong doing were perceived well by their stakeholders. Apologizing for poor performance tends to get a lenient reaction than not apologizing. An organization acknowledging the truth of a whistleblowers charges may be judged more favorably than denying the charges also adding to a beneficial whistleblowers image. (Decker and Calo, 2007).

5.Conclusion Despite increased digital access, rapid internet penetration and more exposure the volume of corruption isnt declining. While there are a couple of websites and overzealous news channels who vie to create breaking news there is a need for a movement to highlight the deep rooted systemic concern facing nations globally. Since most whistle-blowing is related to internal concerns disclosed in the public realm, as an internal communicator I
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believe it is a duty of responsible employees to advice, strategize and support methods in overcoming corruption. The role of the internal communicator has evolved over the years from being a manager of information to being an internal brand custodian and the companys conscience keeper which enables effective whistleblowing. There is however therefore a need to study the impact of internal communication and the perception of whistle-blowing within firms. The recommendation is that in the short-term managers and organizations should tap the potential and benefits of whistleblowing. Whistle-blowing must be made simpler and encouraged and those who blow the whistle justifiably must be recognized and lauded. Finally, it is also vital to study the effectiveness of whistle-blowing (Miceli and Near,1995) instead of only recommending it as a tool to overcome unethical practices in organizations.

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References:

Bather, Andrea and Kelly, Martin (2005). Whistle-blowing: The advantages of self-regulation. Working Paper Series. No.82., Department of Accounting. The University of Waikato Barman, Arup (year unknown). Whistle Blowing Exercise in Indian Corporation Does it Really Blow? Retrieved February 4, 2011 from http://ssrn.com/abstract=1733865 Berger, R. and McDougall, J., (2011). Doing WikiLeaks? New Paradigms and (or?) Ecologies in Media Education. The Media Education Research Journal, 1 (2), pp. 7-12. RetrievedFebruary3,2011fromhttp://eprints.bournemouth.ac.uk/ 17119/1/Doing_Wikileaks.pdf Bowen, Robert M., Call, Andrew C. and Rajgopal, Shiva (2007). Whistle-Blowing: Target Firm Characteristics and Economic Consequences Central Vigilance Commission, India. Retrieved February 4, 2011 from http://www.cvc.nic.in/whistle.pdf Decker, Wayne H., and Calo, Thomas J. (2007). Impressions of Organizational Responses to Whistleblower Accusations, CENTRAL BUSINESS REVIEW VOLUME XXVI NO. 1-2
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Government of India Resolution on Public Interest Disclosures & Protection of Informer, 2004. Retrieved February 4, 2011 from http://www.cvc.nic.in/004vgl26_1.PDF Jebaraj, Priscilla (2011). In Radia Tapes, an Alarming Picture of Media Manipulation, The Hindu Retrieved February 6, 2011 http://www.thehindu.com/news/national/article948425.ece Khanka, S. S. (year unknown). Whistle-Blowing (A Tool for Good Corporate Governance). Retrieved February 4, 2011 from http://www.ignou.ac.in/schools/soss/FINAL_SOSS_CONFERENCE/ full_%20papers/C5/s%20s%20khanka.pdf KPMG India Fraud Survey Report 2010. Retrieved February 4, 2011 from https://www.in.kpmg.com/SecureData/aci/Files/KPMG_Fraud_Su rvey_2010.pdf Murthy, C.S.H.N. (2010). Media Convergence and Blogging in Exposing Corruption and Fraud in India, tripleC 8(2): 143-148, 2010, Retrieved February 4, 2011 from -http://www.triple-c.at/index.php/tripleC/article/view/218/178 Near, Janet P. and Miceli, Marcia P. (1995). Effective Whisteblowing, The Academy of Management Review, Vol. 20, No. 3. (Jul., 1995), pp. 679-708.
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Annual Global Opinion Leaders Study, Edelman Trust Barometer, 2010. Retrieved February 3, 2011 from

http://www.edelman.com/trust/2010/ Parenti, Michael (2001). Monopoly Media Manipulation. Retrieved February 4, 2011 from

http://stopnwo.com/docs2/michael_parenti_monopoly_media_m anipulation.pdf Whistleblower. Retrieved February 4, 2011 from

http://en.wikipedia.org/wiki/Whistleblower Who Do you Trust, India? Readers Digest, March 2010 Retrieved February 2, 2011 from http://www.rd-

india.com/newsite/other/facetoface_mar10.asp

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Dr Kumaran Rajaram
Associate Faculty,School of Business Singapore Institute of Management University

Management gurus Peter Ferdinand Druker & Thomas Peters: Importance of Creative Leadership to Sustain Competitive and Differentiation Advantage

Abstract

The case study performs a critical analysis and review on the gurus of management Peter Ferdinand Druker & Thomas Peters who have contributed significantly in the field of management. This paper aims to provide a critical discussion on the key thrusts and the essential tools that addresses in fulfilling individuals needs to manage and maintain the sustainability of any organisation. It also performs a reflective evaluative analysis
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on how businesses are to be maintained and developed to greater heights in terms of productivity and performance. The ability for todays managers to be effective in a constant evolving changing environment is the aptitude to inject creativity and innovation by embracing changes in their leadership approaches while adapting to varying circumstances with a crystal focus entrepreneurial mindset addressing customers expectations. Key words: Creative leadership and management styles; competitive advantage; sustainability; differentiation advantage;

Overview of Authors

Thomas J. (Tom) Peters is a consultant, American writer on business management practices, best-known for In Search of Excellence, who he had co-authored with Robert H. Waterman, Jr. He is also a columnist, seminar lecturer and stage performer whose energy, style, influence and ideas have shaped the new management thinking. Tom Peters hails as the guru and inventor of management. He is also called the father of post modern management. Over a quarter century, Peters has implemented popularised ways of how managers should think and
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manage that had made a significant impact to many. These innovative and unique modes of thinking have certainly facilitated alternative ways for managers to lead and organise their business operations. Peter Ferdinand Drucker was a management consultant and writer. His scholarly articles and books examined on how individuals manage the business (profit based), government (publicly funded and run) and the non-profit sectors. The insights of his writings are abundant, where the essentials addresses the key developments of the late twentieth century, including decentralisation and privatisation; emergence of knowledge management and well informed society with a necessity of lifelong learning, and magnitude of effective marketing; Leadership guru, Warren Bennis, pointed out that If Peter Drucker invented modern management; Tom Peters repainted it in Technocolor.

Evaluative Analysis embedded with critical Insights

Peter Drunkers testimony of contribution to the business management discipline could be viewed as clear evidence from the quote Invented Management that was made in the
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Bloomberg Business Week article dated 25th Nov 2005. He had provided creative and novel viewpoints on how businesses ought to be managed, synchronised and developed to greater heights in terms of its performance and productivity. This quote also resembles his visionary thinking and contributions to modern day business management and processes. Peters in his book In Search of Excellence have mentioned that he had assisted American firms in the 80s to shift their strategies based on figures to one which emphasis on key attributes like people, customers, cultural and organisational values, a perpetual self-renewing

entrepreneurial spirit with an action-execution approach. These management related recommendations serve as major

differentiator when applied in running an excellent enterprise in general even in todays competitive environment. One of the other messages was also the act that endows resources with a new and driving capacity to create wealth, where the entrepreneur continuously searches for changes and exploits it as an opportunity. His believes that large businesses and non-profit enterprises were the underlying innovation of the 20th century, enabled him in pioneering social and management theories. The idea of decentralisation (in the 1940s) which was introduced by
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Peter Drucker became a bedrock principle for virtually every large business organisation in the world (Bloomberg Business Week 2005). During this phase, he was the first to affirm that employees should be managed as assets and not as liabilities and to be eventually eradicated. He also emphasised the notion of no business without a customer, that assist to nurture the new management and marketing mind-set. General Electric (GE)s transformation in 1981 could be accredited to the strategies by Peter Drucker, where GE is developed into one of the most successful Corporations.

Tom Peters largely represents as an icon that resembles one of the earliest voices of the essentials and importance of what is todays management. His idea of brand you allows employees to reshape their careers around the idea of every person being a business person. He was also noted to have played a vital role in re-iterating the concept of treating customers as ones own guests and their employees as valuable people. The key notion is to create an environment well linked, connected and networked, leveraging on the current customers to develop new products, services and customer value (Grant, 2007). He was also well
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regarded as someone who was classified as the earliest guru voice for opportunities in creating products and services addressing specifically to the underserved womens market. Peter Toms presentations are not just marked by his stunning breadth of interest and skills at tailoring his message to cater the needs of his diverse audience but also by the passion and enthusiasm that he embeds within his topics. To add to his credibility, Bloomsbury Press book, Movers and Shakers: the 100 most influential figures in modern business, evaluated that Toms work has certainly been influential and effective, they term it the best. They described Tom Peters to have contributed and probably done more than anyone else to shift the debate on management from the confines of boardrooms, academia and business consultancies to a much broader, worldwide audience where it has certainly become the staple diet of the media and managers whom are alike.

Leading the way ahead in preparing the management effectively

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Tom Peters and Peter Drunker have certainly assumed the flagship to exemplify to other leaders around the globe on the diverse effective approaches to manage and operate a business entity successfully with productive outputs. Their leadership styles adopted are benchmarked as proofen approaches to steer organisations to mission successes even today. Tom Peters published the largest selling and most widely read book ever in 1982 selling three million copies in just its first four years. This book termed as in Search for Excellence, examines the art and science of management strategies that are adopted by prominent and leading companies with well established records of long-term profitability with an embedded philosophy of continuous creativity and innovation. Eight general themes that are essential for the success of organisations are being advocated. This book serves as an excellent platform which creates a basic framework and comprehending on the crucial success factors for business management. Robbins & Judge (2007) describes that organisations are configured differently, with each having it organic and unique operating systems and processes. Hence, it is of essence that managers conscientiously apply these themes appropriately to fit the organisational needs and wants (Mullins, 2007).
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Staggering Change

Tom Peters and Peter Drunker have both embraced and reiterated the importance of the need to constantly innovate and adapt to remain relevant. David (2003) emphasised succinctly that the vibrant rivalry characterises business competition. Companies will continuously compete to minimise the incurring business operating costs. To enjoy a higher profit margin, the organisations have to be able to keep its labour and operating cost low which enables them to enjoy higher profit margin. So, we could emphasise that the key to this is all about how managers manage cost and creatively finance business processes and organisational structures to achieve maximum output with minimal cost loading (Kotler and Keller, 2007). In general, to achieve corporate sustainability, a firm must specifically meet two sets of criteria: (1) provide what the customers wants (2) the ability to continuously adapt and change. There would always be changes in customers taste and consumption patterns. This would require the organisation to identify their specific needs and select carefully between competing offerings. As managers, having a clear
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visibility of such nuances are crucial to device customerised and creative business strategies to be instituted to deal with the changes.

Tom Peters initiated the lead to prepare the management for the current era of staggering changes in the 1970s. In an

organisational change management study, it was reported that over 90% of managers in all organisations were affected by change (Worrall & Copper, 2006). The key focus of a management change is to improve the companys competitive advantage. Mullins (2007) described that successful organisations have made it possible by re-aligning ways to create their competitive advantage and position. Implementing change effectively requires a right combination of a complex set of implementation skills and capabilities by the managers in general. Cynthia Scott & Dennis Jaffe have identified four phases of responses to change: denial, resistance, exploration and commitment. The key emphasis was on the characterisation on the acceptance of change as a positive opportunity. Successful change is the resultant of good strategic planning, thorough, high level of dedication, teamwork, and deep level of comprehending of the human beings in general. Mike
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(2006) argues about the change process which is guided through a process of observation and exploration.

Organisational Culture: People, Customers & Values

Tom and Peter also emphasise that the basic drivers of all successful business are through customers and effective organisational culture where action execution, a perpetual selfrenewing entrepreneurial spirit is required. Drucker wrote a book in 1986 on The Frontiers of Management where he highlighted that the now developed world, had recovered from repeated catastrophe where ordinary individuals were managing the varying concerns of business and institutions, took responsibilities and kept building for the better of tomorrow despite the challenges and crisis that were happening around them. Robert Quinn & associates defined that an organisational culture results from a tug-of-war between a set of competing values. Harry (2004) re-iterates that each of the competing value pulls the organisation towards one of the four types of culture:

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 A Clan culture that shared beliefs, teamwork and mutual support; An Adhocratic culture that values freedom, initiative and creativity; Hierarchical culture that values efficiency, predictability and structure; Market culture that values goal achievement, competitiveness and performance.

These different types of competitive cultures will certainly provide the managers a tool to change and add values in the organisation. Peter Druker, being a management consultant also added that: If you cant measure it, you cant manage it

Careers reshaping by employees

One of the crucial aspects of human resource management is the reshaping of employees careers. Tom Peters strategy of emphasising the need for every employee to remain relevant and as a source of useful value to the organisation is certainly as an exemplary one. It is then the ability to adapt to the varying
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changes and improve oneself so as to contribute to the organisational effectiveness. While the organisation, as part of its overarching responsibility, requires to identify and chart out a comprehensive employee training and career development plan, individuals are to take ownership and ensure a pro-active stance is adopted to continuously upgrade so as crate a higher level of individual value (for example, enrolling for short workshops, pursuing higher academic studies, etc). Robbins and Judge (2007) describes the need for customerised personal development training that should focus on interpersonal skills to enrich individual character, attitudes and sustain teamwork

effectiveness. Inline to this comes the need for a sustainable performance management system that managers need to implement to ensure that employees are constantly guided and given continuous feedback to facilitate learning and nurture their growth during their career (Moorhead 2007).

Extraordinary Competitive Advantage General perspective

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In the contemporary operation management of any organisation, the goal and strategy is to achieve a sustainable competitive advantage to increase the companys profits. Michael Porter (2008) has identified two types of competitive advantage: a) Cost advantage; b) Differentiation advantage. For example, a competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a low cost (cost advantage), or deliver benefits that exceed those competing products (differentiation advantage). The most effective way to compete with competitors is to continuously create new competitive advantage, like innovating new products and processes. Tom Peters was one of the loudest guru voice which served as his extraordinary competitive advantage. Hence the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy is crucial in achieving business success and striving towards a competitive advantage. Lynch (2003) pointed out that strategies need to be reviewed and revised constantly in such a dynamic and everchanging environment. In order to achieve extraordinary competitive advantage in the business market largely lies in solidifying the a) Organisations core competencies; b) linkage
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with the primary target audience; and c) brand identity. Creative strategies generated must be anchored based on competitorss establishment in the market in general. Doyle and Stern (2006) reported that managers must be creative and generate competitive and niche ideas; and possess the attitude and willingness to manoeuvre and adapt. Over and above this, having extraordinary competitive advantage could also include the organisation enjoying cost advantage, superior product and differentiation advantage; and economies of scale. This is further re-iterated by Mahajan and Banga (2006) who pointed out that managers in companies cannot afford to stand still, but to move forward continuously and constantly.

Knowledge Creation as a Competitive Advantage

Leveraging from Tom Peters quote of extraordinary competitive advantage, this could be very closely linked to the knowledge creation and its competitiveness in general. In todays fast moving pace, knowledge is an added advantage that could be equated to power, hence, the ability of an organization to better utilize its
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current stock of knowledge or position itself to identify opportunities to create and acquire knowledge faster than its competitors would apparently increase its organizational wealth. Yu (2006) re-iterates that organizations that are first to acquire and use new knowledge would certainly gain a competitive advantage over others. A manager needs to continually and constantly absorb new information and make use of this knowledge in new or innovative ways to assist organisations to gain a much better competitive edge and positioning.

Enormous opportunities in creating products and services

Tom Peter has described that the manager should leverage on the enormous opportunities in creating products and services. Thomas & Eboch (1998) reports on how total quality management approach (TQM) could be used to provide goods, services, or both that meet or preferable exceed the external (or final) customers expectations in terms of functional requirements, value and cost. TQM is an approach that is adopted to manage and create products and services, with specific focus on service requirements. The most crucial part includes leadership, information analysis, HR
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development, management of process quality, customer focus with satisfaction.

Managerial Implications

Creative thinking is a key element in management and leadership (Cacioppe 2000). As managers, one must continue to espouse critical thinking through working around challenges and barriers to creative thinking vertical thinking, stereotyping situations and compartmentalism, compressing information, and complacency and non-inquisitiveness. It is indubitable that changing ones organisation culture and mindset will be a challenge; and it will never be straight forward. But this would certainly be realisable if managers invest time and deliberate efforts to engage, collaborate, tighten the human relations; and create the relevant and appropriate resonance for creative and analytical thinking within the organisation.

Another facet is the importance of managerial quality and values. The managers role in the execution approach to creatively attain the prescribed set of organisational objectives will certainly have
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an adverse impact on the people and the organisations output. Good managers facilitate the organisation to transform, spend time in the market place, interact with the various business operating systems and fund the ideas (Simon 1993). In short, the combination of achievement-affiliation and participatory

management style are essential constructs of a good manager.

We are currently in the phase of constant change the increasing pace of change has is requested managers to be become more responsive and flexible. Organisations are embedding and adopting creative strategies and approaches in undertaking their operational activities to survive the ever-increasing competition to further add value. Henry (2006) clearly described that it is creativity, knowledge, innovation and learning that makes a difference and adds value, rather than the availability of land, labour or capital in todays context. Kanter (1991) also proposed that creative manager should have good perceptual abilities that supports kaleidoscopic thinking. There should be evidence of creative knowledge in drawing out creativity in the workforce to achieve the necessary cost reductions, speed of response and flexibility to enhance the potential of companies. Persuasive
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powers are also required to disseminate and translate the vision and the ability to inspire, guide and assist other employees to make their dreams on into reality. Henry (2006) defines creativity is a function of three components: knowledge, creative-thinking skills and motivation. Managers need to match individuals jobs to their knowledge and skills set in terms of creative thinking which assists to ignite intrinsic motivation.

The manager needs to be focus and concentrate on the sustainability of the value to be gained in the long term, especially in a highly competitive environment. Mullins (2007) reported that the most effective way is to maintain the current competitive advantage and continue creating new competitive advantages to innovate new products and processes. This will take on a central relevance for the sustainability of company values.

Conclusion

This article has furnished a deeper comprehension on the need for managers to constantly adapt and create value to the organisation. Failure to adapt in the face of competition will lead
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to business decay. The importance of creativity to be ingrained in managers and the organisation is certainly a key to sustain competitive and differentiation advantage. Without any doubt, the efforts and contributions of Peter Drucker and Tom Peters have contributed tremendously in the sphere of business management studies (both in terms of theory and practical contexts), thus providing a much better clarity on how organisations could be managed to achieve outstanding success.

The methodologies and approaches adopted by both authors were generally anchored on the US environment , for example in business organisations. But on the other critical aspect, it was observed that eventually 5 of the 43 USA business companies which the author claimed to achieve business success and used as samples for his studies were liquidated. This has resulted a few several academics and business exponents to question the validity and reliability of the advocated business themes. This does requires the need to surgically adapt their advocated concepts when applying to ones organisation. The study of business management encapsulates deep understanding of the

interrelating dimensions of individual, group and organisation.

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Central to this is the role of the manager. The ability of the manager to think creatively, anticipate and adapt to the current ramified business environment is a key determinant to ensure long-term business success, leadership position, momentum, perception of quality and permanence. Peter Drucker and Tom Peters have shaped the general concept and framework of modern management for us, which has to be used effectively and appropriately during the challenging times. To be a creative manager, one has to be solely responsible for implementing the leaders vision and strategy to assist their people and organizations to vision for the future ahead.

In conclusion, every organization requires efficient managers to operationalise and optimize the management operations by coping with the advancements and astounding changes in technologies.There should be a capitalistic approach centered around customers, valuing their cultural aspects, thereby executing necessary actions to make the business a successful one. So being ahead of the competitors can always be an added advantage and thus organizations with a superior ability can learn and adapt to create new knowledge, master modern behaviours,
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innovate, enhance efficiency of work processed, surpass their competitors and become accustomed to competitive pressure (McGinnis 2004).

References

Banga, K. & Mahajan, V. 2006. The 86% Solution How To Succeed In the Biggest Market Opportunity of the 21st Century. US: Wharton School Publishing. Boomberg Businessweek. 2005. The Man Who Invented

Management: Why Peter Drucker's ideas still. [online] Available at:

http://www.businessweek.com/magazine/content/ 05_31/b3945407.htm [Accessed August 22 2010]. Cacioppe, R. 2000. Creating Spirit at Work: Re-Visioning Organization Development and Leadership (Part 2). Leadership and Organization Development Journal, 21 (2), pp. 110-119.

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David, J. 2003. Principles and Practices of Marketing. 4th ed. UK: McGraw Hill Companies, Inc. Doyle P. & Stern. P (2006). Marketing Management & Strategy, 4th ed. Financial Times / Prentice Hall. Grant, R. M. (2007). Contemporary Strategy Analysis. 6th ed. Victoria: Blackwell Publishing. Harry C. Triandis (2004). The Many Dimensions of Culture, The Academy of Management Executive, 18 (1), 88-93. Henry J. (ed.) (2006). Creative Management and Development, 3rd edition, Sage Publication Lynch, R. 2003. Corporate Strategy. 3rd ed. England: Pearson Education Limited. Mullins, L. J. 2007. Management and Organizational Behaviour. 8th ed. England: Pearson Education, Inc. Moorhead, G. (2007). Organizational Behaviour - Managing People and Organisations. USA: Houghton Mifflin Company. Porter M. E (2008). On Competition, A Harvard Business School Publishing Corporation. Kanter, D.L & Mirvis, P. H. (1991), Beyond demography: A psychographic profile of the workforce, 30(1), 45-68.
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Kotler, P. and Keller, K. L. (2007). A Framework for Marketing Management, 3rd ed. New Jersey: Pearson Education, Inc. Robbins, S. P. & Judge, T. A. (2007). Organizational Behaviour. 3rd ed. Australia: Pearson Education Australia Pte Ltd. Simon, M. (1993). The Essence of Marketing. UK: Prentice Hall International Ltd. McGinnis, S.K. (2004). Managing and Learning. Organizational Behaviour and Management Thinking. Massachusetts: Jones and Bartlett Publishers. Thomas Y. Choi & Karen Eboch (1998), The TQM Paradox: Relations among TQM practices, plant performance and customer satisfaction, Journal of Operations Management, 17(1), pp.59-75. Wallace, M. Fertig, M. & Schneller, E. (2007), Managing Change in the Public Services, Blackwell Publishing, 11-36. Worrall, L. & Cooper, C. (2006). The Quality of Working Life: Manager's Health and Well-Being. London: Chartered

Management Institute. Yu, B.B & Egri, C. P (2006). Human resource management practices and affective organisational commitment: A comparison of Chinese employees in a state-owned enterprise and a joint venture, Asia Pacific Journal of Human Resources, 43 (3), 332-360.
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REPORTS
Report - One
Dr Scalem M and Dr Manideepa Patnaik International Journal of Business Derivatives

Investing in India
Executive Summary

1. Introduction India is one of the oldest civilizations in the world which boasts of a kaleidoscopic variety and rich cultural heritage. After achieving an all-round socio-economic progress since its
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Independence, India has become self-sufficient in agricultural production and is now one of the top industrialized countries in the world and one of the few nations to have gone into outer space. It covers an area of 32, 87,263 sq. km, extending from the snow-covered Himalayan heights to the tropical rain forests of the south. As the 7th largest country in the world, India stands apart from the rest of Asia, marked off as it is by mountains and the sea, which give the country a distinct geographical entity. Bounded by the Great Himalayas in the north, it stretches southwards and at the Tropic of Cancer, tapers off into the Indian Ocean between the Bay of Bengal on the east and the Arabian Sea on the west. Geographical information about India The Indian peninsula is separated from mainland Asia by the Himalayas. The Country is surrounded by the Bay of Bengal in the east, the Arabian Sea in the west, and the Indian Ocean to the south.

Location

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Geographic Coordinates

Lying entirely in the Northern Hemisphere, the Country extends between 8 4' and 37 6' latitudes north of the Equator, and 68 7' and 97 25' longitudes east of it.

Indian Standard GMT + 05:30 Time Area 3.3 Million sq. km

Afghanistan and Pakistan to the north-west; China, Bhutan and Nepal to the north; Myanmar to the east; and Bangladesh to the Border Countries east of West Bengal. Sri Lanka is separated from India by a narrow channel of sea, formed by Palk Strait and the Gulf of Mannar. 7,516.6 km encompassing the mainland, Lakshadweep Islands, and the Andaman & Nicobar Islands.

Coastline

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Climate

The climate of India can broadly be classified as a tropical monsoon one. But, in spite of much of the northern part of India lying beyond the tropical zone, the entire country has a tropical climate marked by relatively high temperatures and dry winters. There are four seasons: Winter (December-February) - Summer (March-June) - South-west monsoon season (JuneSeptember) - Post monsoon season (October-November) The mainland comprises of four regions, namely the great mountain zone, plains of the Ganga and the Indus, the desert region, and the southern peninsula. Coal, iron ore, manganese ore, mica, bauxite, petroleum, titanium ore, chromite, natural gas, magnesite, limestone, arable land, dolomite, barytes, kaolin, gypsum, apatite, phosphorite, steatite, fluorite, etc.

Terrain

Natural Resources

Monsoon floods, flash floods, earthquakes, Natural Hazards droughts, and landslides.

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Air pollution control, energy conservation, Environment solid waste management, oil and gas Current Issues conservation, forest conservation, etc. Rio Declaration on environment and development, Cartagena Protocol on biosafety, Kyoto Protocol to the United Nations Framework Convention on climatic change, World Trade Agreement, Helsinki Protocol to LRTAP on the reduction of sulphur emissions of nitrogen oxides or their transboundary fluxes (Nox Protocol), and Geneva Protocol to LRTAP concerning the control of emissions of volatile organic compounds or their transboundary fluxes (VOCs Protocol). - India occupies a major portion of the south Asian subcontinent.

Environment International Agreements

Geography Note

As per Countrywatch.com, India is now one of the fastest growing economies in the world with a large skilled workforce. The country has a burgeoning urban middle class and has made great strides in fields such as information technology. However, India's economic growth remains
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constrained by inadequate infrastructure, bureaucracy, labor market rigidities, and regulatory and foreign investment controls. About 60 percent of the population is still living close to, or below, the poverty line.

Information about Indian Citizens India's population, as on 1 March 2001 stood at 1,028 million (532.1 million males and 496.4 million females).

Population

Population The average annual exponential growth rate Growth Rate stands at 1.93 per cent during 1991-2001. Birth Rate The Crude Birth rate according to the 2001 census is 24.8 The Crude Death rate according to the 2001 census is 8.9 63.9 years (Males); 66.9 years (Females) (As of Sep 2005) 933 according to the 2001 census

Death Rate Life Expectancy Rate Sex Ratio

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Ethnic Groups

All the five major racial types - Australoid, Mongoloid, Europoid, Caucasian, and Negroid find representation among the people of India. According to the 2001 census, out of the total population of 1,028 million in the Country, Hindus constituted the majority with 80.5%, Muslims came second at 13.4%, followed by Christians, Sikhs, Buddhists, Jains, and others. There are 22 National Languages that have been recognized by the Constitution of India, of which Hindi and English are Official Languages. Besides these, there are 844 different dialects that are practiced in various parts of the Country. According to the provisional results of the 2001 census, the literacy rate in the Country stands at 64.84 per cent, 75.26% for males and 53.67% for females.

Religions

Languages

Literacy

India is home to many religions (Hinduism, Buddhism, Islam, Christianity, Jainism, Zoroastrianism and Sikhism, to name a few). There are also sixteen recognized languages in India, as well as hundreds of linguistic dialects. Ethnically, there are also differences between Indians from east to west, and north
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to south. Visitors to India should expect a varied and vibrant mlange of cultures and traditions in this country, as well as the requisite cultural and social sensitivities that are associated with such diversity.

Religion Profile - INDIA

Hindus Muslims Christians Sikhs Buddhists Jains Others 80%

14% 2%

0%

1%

1%

2%

India is a "Sovereign, Socialist, Secular, Democratic Republic" with a parliamentary system of government and the parliament is the supreme legislative body of India. The Indian Parliament comprises of the President and the two Houses Lok Sabha (House of the People) and Rajya Sabha (Council of
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States). The President has the power to summon and prorogue either House of Parliament or to dissolve Lok Sabha. The cardinal functions of the Legislature include overseeing of administration, passing of budget, ventilation of public grievances, and discussing various subjects like development plans, international relations, and national policies. The Parliament can, under certain circumstances, assume

legislative power with respect to a subject falling within the sphere, exclusively reserved for the states. The Parliament is also vested with powers to impeach the President, remove judges of Supreme and High Courts, the Chief Election Commissioner, and Comptroller and Auditor General in accordance with the procedure laid down in the Constitution. All legislation requires the consent of both Houses of Parliament. In the case of Money Bills, the will of the Lok Sabha prevails. The Parliament is also vested with the power to initiate amendments in the Constitution.

Information about Indian Government Country Name Republic of India; Bharat Ganrajya
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Government Type Capital

Sovereign Socialist Democratic Republic with a Parliamentary system of Government. New Delhi

Administrative 28 States and 7 Union Territories. Divisions Independence 15th August 1947 (From the British Colonial Rule) The Constitution of India came into force on 26th January 1950. The Constitution of India is the fountain source of the legal system in the Country. The President of India is the Head of the State, while the Prime Minister is the Head of the Government, and runs office with the support of the Council of Ministers who forms the Cabinet Ministry. The Indian Legislature comprises of the Lok Sabha (House of the People) and the Rajya Sabha (Council of States) forming both the Houses of the Parliament.

Constitution

Legal System

Executive Branch

Legislative Branch

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The Supreme Court of India is the apex body Judicial Branch of the Indian legal system, followed by other High Courts and subordinate Courts. The National Flag is a horizontal tricolor of deep saffron (kesaria) at the top, white in the middle, and dark green at the bottom in Flag Description equal proportion. At the centre of the white band is a navy blue wheel, which is a representation of the Ashoka Chakra at Sarnath. 26th January (Republic Day) 15th August (Independence Day) 2nd October (Gandhi Jayanti; Mahatma Gandhi's Birthday)

National Days

Source: Government of India, INDIA 2. Indian Society & Culture

2.1. Overview of Indian Society & Culture

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As per Berger (1969), the fundamental dialectic process of society consists of three moments or steps which have to be understood together to get an empirically adequate view of society: Externalization - Ongoing outpouring of the human being into the world, both in the physical and the mental activity of men Objectivization - Attainment by the product of this activity (again both physical and mental) that confronts the original producers (and other

participants) as a facility external to and other than themselves Internalization - Reappropriation by men of the same reality, transforming it once again from structures of the objective world into structures of the subjective consciousness. By internalization, man becomes a product of society

Indian culture is rich and diverse and as a result unique in its very own way. So while Indians have accepted modern means
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of living, improved lifestyle, the core values and beliefs still remain unchanged. A person can change his way of clothing, way of eating and living but the rich values in a person always remains unchanged because they are deeply rooted within hearts, mind, body and soul which we receive from our culture. The corporate culture that we so imbibe from our peers are a reflection of our ethos and our Indian roots. 2.2. Unique features of Indian Society If we look at the ancient civilization in India, it is an eye opener as to how kingdoms ruled and how people went about life in a logical way in a totally natural flow of lifecycle. Though medieval, it is actually amazing to find how people transacted and went about building dams and tended to the chief occupation which was agriculture. Dance and rituals were always a part of Indian culture and this was the chief mode of entertainment which carries on even now. There may be more than 50 religions or practices that people follow in India and yet there are parallels with embedded beliefs shared by all. Hinduism, Islam, Christianity, Buddhism, Sikhism, Jainism are just some of the major religions practiced
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in harmony all across India's territory. This salient tolerance and respect of others' beliefs highlights the typical Indian of even today. The operative social values in India could be broadly classified into a) b) c) d) e) 27) Foreigners traditionally were treated as house guests and special attention was showered on them to showcase 'Indian Hospitality'. This continues even now, however the emotional attachment to this may have gone down owing to more focus on business-minded orientation. It makes for a key success factor if the foreign entity/corporate group start the proceedings of a working partnership of any model on a note that they understand Indian work ethos, belief systems,
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Preference for hierarchy Embeddedness Personalized rather than contractual relationship Harmony rather than confrontation, and Duty and obligation rather than hedonism (Sinha, 2000:

operational models and also most importantly the cultural impacts of cross country interactions, so ensued. 2.3. Unique features of Indian Culture The term culture refers to a state of intellectual development or manners associated with a community, group, region or country. The social and political forces that influence the growth of a human being is defined as culture and as per Indian understanding, there are two kinds of materials available in the world: Prakrit (natural) and the other is Sanskrit (cultured). Things received from nature, as it is, may not be usable by human beings. They have to be cultured. The impurities should be removed, and some properties added, to make natural things useful. This is a three-stage process: removal of impurities, addition of properties, and completion of absent parts. All these form the basis of the underlying principles of Indian culture.

Indian culture puts a lot of emphasis on respecting elders, honoring heroes and cherishing love. Indian culture has a very high level of tolerance and hence the advent of so many
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external cultures was not restricted. Adaptation to any culture or embracing a religion was always the democratic culture. Indian history is about war heroes during Indus valley civilization and the initial time when currency was coined. Indian history talks a lot about self reliance especially in terms of food and agricultural produce. This was the great effort put in by the farmers and support received through irrigation. The modern agriculture also shows a lot of indigenous methods of preserving the produce. There are shlokas and mantras i.e. chants that can evoke positive energy and revoke enthusiasm in life. The rich culture of yoga as a part of life and the goodness of ayurveda has now got a universal lifestyle approach. Our roots are strong and despite the westernization and access to technology, the distinct Indianness is still maintained whilst celebrating Diwali or observing the Shravan fast. This is also believed to be a land of Lord Rama which is Ayodhya or the birthplace of Sri Krishna is considered as Mathura. The birth of Sikh religion and the reverence felt by all Indians is still intact. Indians are extremely secular and especially in the metros there is
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seamless blending of Indians during Xmas and Id. On a more practical side, educated Indian of today doesnt play so much on the religion/faith cards while doing business as it is understood to be more of a personal belief system and/or personal thing. However exceptions are quite common and the foreigners/corporate would do well to understand the ground dynamics and working etiquettes of the

region/firm/company. 2.4. Caste System and its culture As per a report (Globescan Report, 2007)

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2.5. Unique characteristics of Indian People Indian Value systems or traditions have transcended down through generations automatically. While being simplistic, the genetic traits and modes of work remain quite scientific. In ancient times, India was full of superstitions, dogmas and rituals that can be termed as false beliefs by today's generation who have, to an extent, modified or overcome them. Indians are highly flexible in the sense they would like
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to imbibe the changes dictated by western influence and yet clearly affirm their belief in traditions. It is customary to respect elders and touch their feet as to seek their blessings. Occasions or festivals demand a lot of participation as per the caste and region. Hindu rituals are a lot about song and dance and each family has a natural way to adjust to these formats. It is a ritual to pray to the Goddess of learning (Saraswathi) to achieve success. Similarly business people always insist on drawing the Swastika which marks prosperity and worship the Goddess of wealth. With the advent of technology and women emancipation there is a trend to mingle free with the western concepts of dress, belief, work and also get into a secular concept but one can feel a distinct Indianness in even those attires in India. Indians all over the world are known for their hospitality and high level of tolerance. Their adaptation power is high and hence they are able to scale heights in the international arena. Putting oneself on the global map, Indians are seeking new vistas of communicating their beliefs and tradition. The gift of health and well being through yoga and meditation is a great
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source of Vedas in the rich Hindu tradition which has actually benefited the world. The values in India is about living life with a zest and observing the belief that there is one God prevailing despite so many religions. Respecting elders, understanding cross culture traditions, free mingling to accommodate tolerance, staying interested in rural welfare are the values of India. The artifacts, cuisine handicrafts, attire and lifestyle of the rural folks is still followed and preserved by Indians. In India, the family culture is all about love and patience. A girl weds into a family and adjusts herself seamlessly to the rituals, routine and cuisine. Of late, one can see a lot of love marriages i.e. cross border mingling which is also being accepted by the elders in the family. Association with religious beliefs and sects is also followed by families as many families believe in a particular Guru or saint who guides them in their spiritual path. Families are also getting nuclear owing to independent lifestyle preference and also the concept where in both husband and wife is working and has demanding

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careers. The current trend in India now is towards a 'nuclear family' whereas earlier it was 'joint family' model. Generally India is patriarchal in the sense the children get the surname of the father and the wife changes her surname to follow that of the husbands. It is also a tradition in certain families that the wife changes her maiden name but again this concept is also changing. Indian families are very

accommodating and willing to accept change. Metros are also seeing a lot of family value in celebrating birthdays and anniversaries by observing the rituals and also entertaining outdoors. The Indian culture has imbibed the right mix of western influence and yet maintaining the ethnic family tradition. 2.6 Sample Indian Etiquettes (Source: Country Watch Report 2010)

In large cities, Indian men and women who subscribe to more Westernized habits and tendencies will offer to shake hands when greeting others. Nevertheless, foreign women should avoid initiating handshakes with Indian men. Generally, speaking, Hindu Indians avoid public

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contact between men and women; only Westernized Hindus will shake hands with the opposite sex. Traditionally there is no physical contact between Muslim men and women. Indians, regardless of religious affiliations, tend to disapprove of public displays of affection between the opposite sexes. One should avoid touching, (except the specific cases of handshaking noted above), hugging, or kissing when greeting another person.

Titles are highly valued in India and adhering to the strictures of formality is highly advisable. One should always use professional titles and avoid addressing another by his or her first name unless one is asked to do so, or one is a close friend.

The traditional greeting is the Namaste. Namaste is offered by holding the palms of the hands together below the chin, nodding or bowing slightly, and saying the word, "Namaste." Rough translation of the word suggests that it conveys peace, respect and hospitality from one person to another. Literally, it means something akin to "I bow to the divine in you." This

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soulful and lyrical greeting is useful for foreigners in any situation where a handshake may not be acceptable.

One should also avoid standing with one's hands on one's hips, as this stance may well be interpreted as an angry, aggressive posture.

One should eschew pointing with a finger, as it is considered to be an offensive gesture, sometimes denoting annoyance. Indeed, Indians often point with the chin.

One should also eschew winking with the eyes. Winking may be misinterpreted as either an insult or a sexual proposition.

The protocol surrounding one's feet should also be noted. For example, one should not point one's feet at another person. Also, feet are considered unclean, so if one's shoes or feet touch another person's shoes or feet, one should be sure to apologize.

Visitors to India should note that the gestures for "yes" and "no" mean something other than the Western connotation. This difference can be confusing in crosscultural communication. Indians swivel their heads from

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side to side for both affirmative and negative responses (this is basically a combination of both of the North American head movements for "yes" and "no"). One should try to procure a verbal response to questions, in order to avoid miscommunication.

Note that the implications of the word "no" in India are very significant. Among Indians, evasive refusals, rather than outright negations, and are considered to be preferable. When one is offered an invitation, for example, one would respond with vague avoidances, such as "maybe, we'll see" or "I'll try."

Many travel experts suggest that while offers to visit someone's home may be presented, in India, it is advisable that one only accept such offers from trusted friends and acquaintances in India. Although Indians are very hospitable people, caution should be exercised until one has gained some experience with the people and culture of India.

Once one has determined that a visit to an Indian home is acceptable, one should take a small gift for the host and/or the hostess. Chocolates, candy or flowers are all

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suggested choices, although frangipani blossoms should be avoided, as they are associated with funerals. An ornament from one's home would be considered to be a lovely choice. Whatever gift is selected, it should not be wrapped in black or white, which are considered to be unlucky colors. Green, red or yellow wrapping are better choices. One should also note that gifts are not normally opened in the presence of the giver. If one receives a wrapped gift, one should set it aside until the giver leaves. Sending a note of thanks for the gift, once it has been opened, is also good protocol. Remember that Hindus do not eat beef and Muslims do not eat pork. Gifts of leather made from cows, as well as pigskins (footballs), are not appropriate within these two respective communities.

When visiting someone's home, if refreshments are offered, it is customary to refuse the first offer, but to accept on the second or third offering. Refusal of any refreshment is regarded as rude and ungracious.

In Muslim homes, note that one should eat with the right hand; the left hand is considered unclean. Simply

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touching a communal dish with the left hand may cause fellow diners to avoid it.

Eating from another person's plate is inappropriate. One should never offer another person (even a spouse) food from one's own plate, or alternatively, eat from another's plate.

At the end of a meal, do not thank the host as the words, "thank you," may be viewed as a form of payment. The sharing of a meal is considered to be akin to sharing a friendship and is deeply meaningful among Indians. Returning the meal by inviting the host to dinner or an equivalent meal shows that one values the relationship. One might also show appreciation for the meal by complimenting the food, and by partaking of second or even third helpings, when offered. Mentioning how kind and hospitable the host has been would also be appropriate.

When traveling in India, it is best to convey the image of quiet confidence and to act as if one knows the country and the region. Appearing confused or lost can make one the object of foul play. Women should take care not to

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travel alone, especially in less populated areas, and should avoid walking around town at odd times. When one is confronted by the poor and destitute, even though it may one's natural impulse to respond charitably, most travel experts suggest that such persons not be encouraged. As is the case when traveling in many developing countries, one should also be cautious about water and food contamination.

When shopping for antiques In India, one should avoid purchasing goods older than 100 years old. Many good, such as "shahtoosh" shawls and ivory, are illegal to either purchase or sell. Make a point of learning what kind of antiques and cultural crafts may be legally and safely bought in India, with full systemic transparency. One should also avail one's self of the customary bargaining practices, while simultaneously employing transparency throughout the entire transaction.

When visiting temples and other holy sites, note that it is often prohibited taking photographs of deities. Be sure to procure permission before doing so. Likewise, one should not photograph women without prior permission.

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It is customary to remove one's shoes before entering a home (as noted above) or place of worship. Be sure to adhere to these rules of convention when one visits a home or place of worship (including temples, tombs, dargahs). Likewise, one should be sure to cover one's head in scared spaces. Usually, a cloth of some kind will suffice, although the Hindu veil is commonplace among women.

Cows are considered to be sacred creatures by Hindus and one should not wear leather products in Hindu temples and at other sites considered to be sacred among Hindus.

Modest clothing is also advisable when visiting holy sites, while clothing in the color of black should be avoided in Jain temples. Indeed, conservative dress at all times is imperative in India. Cottons and silks in light colors are popular and comfortable fabrics, and are suitable for the hot climate that pervades much of India. Indian men tend to wear "kurtas" (tunic-like shirts) over loose "dhotis" and "loongis" (loose pajama-like pants), while Indian women tend to wear "saris" (elaborate draped dresses

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made of several yards of material). "Saris" can range from simple cotton fabrics, to more colorful silks and satins designed with detailed embroidery and

threadwork in gold as well as silver. Among business people, however, it is common for Indians to wear Western suits and garb as well as the traditional fare. Visitors can stick to Western clothing styles or dress like a local, the only requisite element is that modesty be employed.

3.0 Organizational Structure 3.1 Indian Practices India, today, enjoys a unique and diverse mix of both western and traditional culture in its corporate business environments. If we talk about the organizational practices/corporate culture, in India, the first major influence on organizational design came from UK because of the colonial legacy (Gupta, 1991). Singh and Bhandarkar (1988) went to the extent of accusing Indians of importing the latest in management systems and styles. They observed that the key to the success
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of Japan and Korea lay in their ability to evolve an indigenous management process and that India would not progress in the business sector unless she evolved theories that arise from her cultural roots. Singh & Krishnan (2005) notes that uncritical transfer of management theories and techniques based on Western ideologies and value system has contributed in many ways to organizational inefficiencies and ineffectiveness in cultures such as India (Kanungo and Jaeger, 1990; Singh & Bhandarkar, 1988). Krishnan (2001) argued that Indian culture is conducive to emergence of transformational leaders and Kejriwal and Krishnan (2004) found that Sattva Guna (awareness) and Vedic worldview separately enhance transformational

leadership whereas Tamas Guna (inertness) reduces it. Indian Practices India, today, enjoys a unique and diverse mix of both western and traditional culture in its corporate business environments. If we talk about the organizational practices/corporate culture, in India, the first major influence on organizational design came from UK because of the colonial legacy (Gupta,
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1991). Singh and Bhandarkar (1988) went to the extent of accusing Indians of importing the latest in management systems and styles. They observed that the key to the success of Japan and Korea lay in their ability to evolve an indigenous management process and that India would not progress in the business sector unless she evolved theories that arise from her cultural roots. Singh & Krishnan (2005) notes that uncritical transfer of management theories and techniques based on Western ideologies and value system has contributed in many ways to organizational inefficiencies and ineffectiveness in cultures such as India (Kanungo and Jaeger, 1990; Singh & Bhandarkar, 1988). Krishnan (2001) argued that Indian culture is conducive to emergence of transformational leaders and Kejriwal and Krishnan (2004) found that Sattva Guna (awareness) and Vedic worldview separately enhance transformational

leadership whereas Tamas Guna (inertness) reduces it. Ulrich et al. (2000) noted that Indian companies include a unique primary objective in their corporate strategy: they give highest priority to employee orientationThis is evidently
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linked with the traditional Indian custom of treating employees as part of the family, taking care of their needs and problems beyond the workplace. However the literature on Indian practices points to the view that Indian Business culture is mainly characterized by paternalism followed by importance to customer,

performance and quality. The regional cultural practices influence the

business/management style & culture, also described as the shared values and assumptions that guide behavior in an organization (Tracy, 2000). The most important observation made through extensive research is that of Torrington et al. (1989) who maintain that a culture within an organization can be changed once managers fully understand it. For foreign players interested in venturing into Indian Corporate/Business domains, it will greatly help if they are able to gain an in-depth understanding of the culture of a localized business organization and its characteristics. Foreign investors will find it interesting if periodic business cultural assessments are available.
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Assessing business cultures can be done through the perceptions of various actors. Assessments can be made in the following manner (Matthew & Kumar, 2005): (a) Self assessment by Organizations: Organizations rate

themselves on cultural variables and other organizations further rate them, thus arriving at an industry rating of organizational business culture for each organization and sector (b) External consultants assess the organizations:

External consultant(s), not a party having personal interest in the well being of the organizations, operates as a third party assessor to the organization (c) Potential employees assess organizations: An

external actor interested in the welfare of organizations for employment one who has a sense of what happens in the organization through media, stock rating, alumni and word of mouth rates the organizations business culture. Here even students who are potential employees can be utilized by the organization for the assessment purposes.
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Matthew & Kumar (2005) has done an empirical study with Indian MBA students and their findings are as below:

Fig: Current Practices in Indian organization

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Fig: Desired or ideal practices in Indian organizations

Fig: Disparity capture in practices adopted In India, castes division is mostly becomes apparent in patterns of marriage, business and commensality (Frank de
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Zwart, 2000). Moreover, caste identity follows the segmentary principle: the meaning of caste is relative to context. In the context of local events, castes are small endogamous groups of people with the same name, spread over a few adjacent villages. On a regional level, castes are clusters of local castes, perceived by others as groups with similar status and subsumed less than one name. In the context of a state or the nation, castes are clusters of regional clusters. In Indian languages, these three segments are called jatis. In Hindu mythology and practices, Caste also refers to the four categories into which the Hindu scriptures divide society at large:

Brahmins (priests and scholars), Kshatryas (rulers and soldiers), Vaishyas (traders and merchants) and Shudras (agriculturalists)

Note, however, that these latter categories varnas in Indian languages are not actual groups. They form an ideological scheme, used by people as a handy gross classification of others (Mandelbaum, 1970).
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However it may be noted that the subtleties of rank within a caste cluster are often unknown or unrecognized by people outside it. Todays harsh reality, however, remains: decades after the British departure, the significance of caste in social, religious and political life is unmistakable. As per Ludden (1993), the people in India have mistaken beliefs about themselves and that cannot be attributed solely to British influence. Among the believers in the imagery of caste are the political leaders who shaped and ruled society after independence. The orientalist image served their power, as it had served the British before, and using that power the government reinforced the image. Diversity of Indian Business Culture Indian business culture is characterized as highly diverse and heterogeneous. In corporate or business meetings it is important to be sensitive to, and appreciate, the diversity of Indian business culture, which varies across regions, sectors, and ownership patterns.

A large part of Indian businesses are family-owned or 'owned' by members of different social communities. Among these,
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Parsi, Marwari, Gujarati and Chettiar communities are the prominent ones, and have controlling interests in some of the largest Indian business houses. Each business community has some distinct business norms or culture and even though many of the business houses run by them are quite modern/western in their working and operations and follow the international norms for doing business - nevertheless, it is useful to understand their specific community culture. Regional differences also matter in Indian business etiquette. For instance, broadly speaking, the southern Indian

companies are more conservative when compared to the north, or the western part of the country. These sectors, in turn, tend to be more individualistic and assertive than the eastern portion of India. Indian business people are quite enthusiastic on sharing business cards even in non-business situations and since English is the most common business language in India, it is not necessary to get your card translated into any Indian language.
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Indian laws and bureaucracy are quite intricate and cumbersome. Besides the statutes of the Central government, there are numerous pieces of legislation which differ considerably across the states. It is, therefore, advisable to hire an Indian lawyer or liaison person, who can help you to maneuver through these intricacies. India runs on hierarchy though its importance may vary in degrees across regions and sectors.

Business Practices Try to get your first appointment with the person who is high in authority in the concerned department/organization. It is likely that s/he may later direct you to meet someone in the middle-level hierarchy, who would be actually relevant for your business. However, coming through the superior person is likely to help when it comes to implementation of decisions. You will often find that, as a sign of respect, the subordinates stand up when the boss enters the meeting room. This is a normal phenomenon in the Indian context. For many people coming from more individualistic cultures, this creates a
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dilemma - to rise or not. The best option is to get up from your seat and greet him/her personally. Despite gradual changes in societal values, respect for age, loyalty to one's family, community or group, and practice of certain religious rituals are still observed in Indian worksettings, in varying degrees. Women executives, in senior positions, are a relatively new phenomenon in the Indian business environment. If you are a woman, you will normally find people respectful and courteous, but not very comfortable in working with you for business deals. You may have to make extra efforts to get them to discuss business with you. Negotiation Indian businessmen, in general, are not so fixated on punctuality though it is highly revered in business circles. Even if you arrive on time, it is likely that the scheduled meeting may start with some delay, or that you are kept waiting. This often happens, and does not necessarily mean much. However, a long delay in the meeting can be a signal that you are being given less importance.
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Indians do not directly jump into business negotiations; in fact, that may be seen as rude. Building a relationship is often considered a prerequisite to doing business.

Meetings normally start with small talk about non-workrelated topics before people start talking about business issues. Similarly, showing hospitality is part of the negotiation process. Often meetings start by offering tea/coffee and snacks. It is courteous to accept the offer. Compared to many other cultures, relationships and feelings play a larger role in decisions in India. In general, Indians tend to take larger risks with a person whose intentions they trust. Thus, one's credibility and trustworthiness are critical in negotiating a deal. Indian businessmen are mostly multi-taskers, i.e., they tend to deal with more than one task at the same time. One must appreciate that behavior/occurrences resulting from the multi-tasking practices do not mean lack of interest or attention. Indians usually do not express their disagreements openly and directly; doing so would be considered discourteous. Instead,
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when differences arise, they may circumvent them by statements such as 'we will discuss this later' or 'I will have to check with others about this.'

Bargaining for the price or additional concessions is normal in India. Indian negotiators expect and value flexibility in negotiation. Therefore, sometimes a straightforward offer may be perceived as a rigid stand. It is always advisable to build some buffers in one's initial offer, which allow for bargaining later.

Do not insist on commitment in the first meeting. Making a decision, in Indian organizations, is often a long-drawn out process. This is not only because of the bureaucratic nature of many Indian organizations, but also because a decision may have to be ratified by people who may not be present at the negotiating table.

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Guidelines for business dress

Normal business dress for men is a suit and tie. However, since India has a warm climate, often just a full-sleeved shirt with a tie is also acceptable. It is also important to select neutral colors, which are subdued and not very bright. In most companies, particularly in the IT sector, however, the dress code is much more casual. It is not unusual to find people wearing T-shirts and jeans with sneakers. However, as a visitor, conservative, though not formal, dress is advisable.

For foreign women, pant-suits or long skirts, which cover the knees, are more acceptable to wear. The neckline of the blouse or the top should be high.

For women, a salwar-suit is also acceptable for business dress. Jeans with a T-shirt or short-sleeved shirt are acceptable as casual wear in informal situations for both men and women. You can wear casual dress if invited to a social gathering. However, if a foreigner wears an Indian costume (kurtapajama for men, and sari or salwar-suit for women), this kind
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of dress is also appreciated, and often seen as a gesture of friendship. Addressing others with respect

When addressing a person, it is advisable to prefix the name with a 'Mr.', Mrs. or 'Miss', or the professional title of the person ('Doctor' or 'Professor') unless the person asks you to refer to him by his/her first name.

In general, people are addressed by their first name (without the prefix) only by close acquaintances, family members, or by someone who is older or superior in authority.

The naming conventions in the southern states of India (Andhra Pradesh, Tamil Nadu, Karnataka, and Kerala) are different when compared to other parts of the country (often broadly referred to as North India, though it also encompasses the eastern and western regions of the country)

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In North India, most people have a family name (e.g., Sharma, Patel, Singh, etc.), and the names are written in the western style--first name followed by the surname. Sometimes, there may also be a middle name, such as 'Chandra', 'Kumar', 'Prasad', etc. For instance, Mr. Praveen Chandra Kulkarni will be addressed as Mr. Kulkarni--or as Praveen, if the relationship is informal.

In contrast, in southern states, men do not have a family name. Instead, the name of one's father and/or the ancestral village/town is used for the purpose. These are normally abbreviated and prefixed before the first name. For instance, a south Indian name 'Kamundari Ranganthan Gurumurthy' will be written as 'K. R. Gurumurthy', signifying that the person's ancestral place is 'Kamundari', father's name is 'Ranganathan', and his first name is 'Gurumurthy'. He will be addressed as Mr. Gurumurthy--or if the relationship is informal, as just Gurumurthy.

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Women normally adapt the husband's name (family name in North India, and first name in southern India) after marriage. Changing Conventions

It must be mentioned that with time and social mobility, the naming conventions are also changing. For instance, many south Indian families have started adapting the north Indian naming conventions. Since the family name in north India also denotes the person's caste--and therefore, place in the social hierarchy--some liberal-minded north Indians do not use the family name (or use their father's name instead). There is an increasing trend among educated professional women of keeping their maiden name after marriage.

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REFERENCES BBC Poll Report 2007, Globescan Inc Berger P L (1969), The Social Reality of Religion, Faber, London Singh N & Krishnan V R (2005), Towards Understanding Transformational Leadership In India, VISIONThe Journal of Business Perspective, Vol. 9, No. 2, AprilJune Gupta R K (1991), Employees and Organizations in India: Need to Move Beyond American and Japanese Models, Economic and Political Weekly, Vol. 26, No. 21, May Singh P & Bhandarkar A (1988), Cultural Ethos in The Organizational Milieu, Indian Management, Vol. 27, No. 10 Kanungo R N & Jaeger A M (1990), Introduction: The need for indigenous management in developing counties, In A.M. Jaeger and R.N. Kanungo (Eds.), Management in developing countries (pp. 1-19). London: Routledge. Sinha J B P (2000), Patterns of Work Culture: Cases and Strategies for Culture Building, Sage Publications, New Delhi

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Krishnan V R (2001), Can the Indian Worldview facilitate the emergence of transformational leaders? Management and Labor Studies, Vol. 26, Issue. 4 Kejriwal A & Krishnan V R (2004), Impact of Vedic worldview and Gunas on transformational leadership, Vikalpa, Vol. 29, No. 1 Ulrich K, Chaudhry R S, Rana K S (2000), Managing Corporate Culture, MacMillan India Ltd., Delhi.

Tracy H S & Pearson C M (2000), Creating an Empowering Culture: Examining the Relationship between Organizational Culture and Perceptions of Empowerment, Journal of Quality Management, Vol 5, Issue 1, Spring.

Matthew M & Kumar R (2005), Poor change preparedness in Indian business culture: a need for periodic Indian business culture surveys, VISION-The Journal of Business Perspective, Vol. 9, No. 1, JanuaryMarch.

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Frank de Zwart (2000), The Logic of Affirmative Action: Caste, Class and Quotas in India, Acta Sociologica, Vol. 43

Mandelbaum D G (1970), Society in India, University of California Press, London

Ludden D (1993), Orientalist Empiricism: Transformations of Colonial Knowledge, In C. A. Breckenridge & P. van der Veer (eds.), Orientalism and the Postcolonial Predicament:

Perspectives on South Asia, University of Pennsylvania Press

BBC Poll Report 2007, Globescan Inc

Berger P L (1969), The Social Reality of Religion, Faber, London

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Singh N & Krishnan V R (2005), Towards Understanding Transformational Leadership In India, VISIONThe Journal of Business Perspective, Vol. 9, No. 2, AprilJune

Gupta R K (1991), Employees and Organizations in India: Need to Move Beyond American and Japanese Models, Economic and Political Weekly, Vol. 26, No. 21, May

Singh P & Bhandarkar A (1988), Cultural Ethos in The Organizational Milieu, Indian Management, Vol. 27, No. 10

Kanungo R N & Jaeger A M (1990), Introduction: The need for indigenous management in developing counties, In A.M. Jaeger and R.N. Kanungo (Eds.), Management in developing countries (pp. 1-19). London: Routledge.

Sinha J B P (2000), Patterns of Work Culture: Cases and Strategies for Culture Building, Sage Publications, New Delhi
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Krishnan V R (2001), Can the Indian Worldview facilitate the emergence of transformational leaders? Management and Labor Studies, Vol. 26, Issue. 4

Kejriwal A & Krishnan V R (2004), Impact of Vedic worldview and Gunas on transformational leadership, Vikalpa, Vol. 29, No. 1

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Report Two
Nutan Kumar Karn Senior Manager LG India
IIM Kozhikode Report

A Critical Study on Demand and Supply Gap and Quality Threat to LG Electronics India
Executive Summary The basic purpose of the project is to get an inside view of the company. The project aims at giving a strategic problem faced by company in past. One of the objectives is to track the display of LGs and competitors products and suggest improvement methodology to increase the display share of LGs products. It is important from the company point of view that all their major products are available at all their counters. Only the display of the product/entire product range can ensure their sale. The product is to be displayed and brought into the eyes of the potential customers. The company doesnt produce to keep their stock locked inside their stores. So regular check of display ensures that
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all the major products are on display and gives information about competitors display status also. Strategic decision which comprises of corporate level, business level and operational level strategy. Supplier management is an important aspect of meeting production and sales demand. Proper analysis of strength and weaknesses and established win-win situation with supplier is most important aspect A lot depends on the suppliers behavior, attitude and physical plant and machinery capacity. In bound logistic is another major aspect which we never ignore but it was focused more prominently due to phenomenal growth of demand. Robust design and quality control should be more focused where LG showed lack or reluctance and had to pay a huge cost in domestic as well as international market. Launch of 2-1-1 gave impetus to increase customer satisfaction. Final decision of management to enhance production capacity at in-house and vendor end will be fruitful decision.

COMPANY PROFILE

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LG Electronics India Limited (LGEIL) is a wholly owned subsidiary of LG electronics, South Korea. The company was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). Its earlier two attempts one in 1992 and one in 1995 had failed. It first entered the country in 1992 with the Goldstar brand name selling CTVs in partnership with Delhi-based consumer electronics company Bestavision, the marriage failed to click right from the start. Two years and a host of problems later, it snapped ties with Bestaviscon and tried to form a joint venture with the C.K. Birla group. That move, too, failed in the negotiation stage itself. By then, the Goldstar Irand had acquired a poor reputation with dealers and consumers alike. With the change in its corporate identity in 1995 worldwide from Goldstar to LG it proved to be lucky in India only the third time around, despite being one of the first multinationals to hit the Indian market after liberalization. The company launched in Delhi in May 1997, with, ten model of color television, ranging from 14 inches to 29 inches; eight models of large capacity refrigerators ranging from 320 lt to 650 lt and three models of washing machines from 5.5 kgs to 20 kg and
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subsequently launched the same in Chandigarh, Lucknow, Jaipur, Bombay, Pune, Calcutta, Ahmedabad, Indore, Bangalore, Chennai and Hyderabad. These entire products bear the LG brand name, which the company has decided to change from its previous brand Goldstar around the world starting from 1997. Today in a short span of 24 months, LG has twenty six models of color television ranging from 14 inches to 60 inches; 14 models of large capacity refrigerators ranging from 175 lt to 890 lt; seven models of washing machines ranging from 5.5 kgs to 20 kgs; nine models air conditioners; three models of micro wave ovens; two VCDs and have subsequently launched the same all-India. The company is envisioning a total investment of US $ 289 million (Rs. 1040 crore) over the next of 9 years which will give it a major manufacturing presence in India in and range of white a brown goods as well as in a range of electronic components by 2005. Along the way the company plans to export products worth. $100 million in a ten-year period is starting from the commencement of mass production in India. It also has a plan to invest 25% of its equity to the Indian public or to an Indian investor after 5 years of operation.
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In the first phase of investment from 1998 to 2001, the company had decided to invest US$ 100 million (Rs. 500 crore) to establish manufacturing facilities in Greater Noida. This facility will be capable of churning out 7,00,000 CTVs, 4,00,000 Refrigerators, 2,00,000 washing machines, 1,00,000 Air conditioners and 5,00,000 Microwave ovens per annum. The facility has started production since April 1998. In the second phase from 2001 to 2005, LG electronics had to invest $ 200 million (Rs. 500 cr) to increase its existing capabilities on finished products and add capabilities to manufacture compressors, ply back transformers, motors and deflection yokes. After setting up of LG software Center in Bangalore in 1996, LGE also will set up an in house R & D and HRD center in India not only to train the Indian employees, but also to serve foreign employees of LGE in South East Asia and Northern Africa. In five years from now, LGEIL will become one of the colossal industrial houses in India LGEIL has already achieved a turnover of Rs. 500 crores in the period Jan-July99. LGEIL by introducing a wide range of products to the Indian consumers has successfully carved a niche for itself. Its success story is a result of its

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investment in cutting edge technology and its relentless efforts to bring home the smiling face. In the past five years, India has attracted a number of multinational companies to invest in the country, offering a plethora of choices to the Indian consumers. Thus the consumers seek international brands that offer value for money as well as a high standard of service. LGEIL ceaselessly strives to be responsive to consumer needs, desires and habits. LGEIL is regarded as one of the top consumer electronics companies in India (ORG-MARG Survey). LGEIL has 18 company owned and 40 authorized service centers across the country where the service engineers are available twenty-four hrs throughout the week. The consumer durable industry will continue to witness the growth in demand. The company will also have to take a leap forward by increasing the volume of sales. It is expected that in the coming years there will be stiffer competition. The company is taking measures to reduce costs and improve productivity. With emphasis on quality and improved service to the customers at an affordable price, the company will endeavor to gain additional market share. Also in view of the liberalization of the Indian
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economy, companys technical know how, superiority, service competence and the good will is what the company commands in the market. The company is optimistic of consistent and sustained growth in its business.

History of LG India Refrigerator Business Started production in India with OEM business during 1997-2001 with low end direct cool models, and main competitor was BPL, Whirlpool, Godrej and Videocon. Installed own manufacturing base to avail the cost leadership. Initial market segmentation was upper level because of psychological because Indians think that cheaper price means poor quality and marketing was 100% driven by Indian manpower, from VP to area manager, who know Indian psychology very much and make strategy as per local culture and buying habits. Initial product had robust design, durability and aesthetic appearance. LG acquired 10.1% market share in 2000 and since then it has been growing continuously till it reached at the level of 29.4% in 2006 but reduced to 25% . The company has been maintaining the same level for last two years.

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 In Frost Free Category LG became No.1 in 2002 and in Direct Cool category it became No. 1 in 2004 (source GFK-ORG). The Next Industrial Giant Among villages with thatch-roofed huts and dirt roads on the outskirts of this city in central India, Joh Deere and LG Electronics have recently built modern factories turning out tractors and color television sets for sale in India and for export to the United States (The Next Industrial Giant Is India? The New York Times, August 31, 2006) Vision LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative product and design. The companys goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we have

embraced the idea of Great Company, Great People, recognizing that only great people can create a great company. Doing things differently LGEIL doesnt offer employee stock option. We dont even figure among the top15% of companies in terms of compensation. Then what makes us such a preferred employer. I think it is our
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performance driven culture that helps LG to be graded as one of the best employers. Picking the Low hung fruit Ducking the trend to going to high-ranking institutes, the LGEIL culture has always been to recruit and retain personnel who possess the following attributes: People who are constantly changing themselves and cope well with the constantly changing environment around them. People who are willing to take risks and who will aggressively preserve breakthrough policy changes. People who will lead innovation and devote their enthusiasm to cultivating people of the highest talent. People who conduct business with honesty, transparency, fairness and sincerity. Integrity and business ethics. Corporate social responsibility. At times organizational culture was as good as non-existent, conflicts and misunderstandings, egoism were the order of the day and disobey and rule violations were reported very often. LG caters to various products and couple of them are CTV, Aircon, W/M, REF
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STRATEGIC ANALYSIS LG launched Direct Cool models with OEM ( Voltas ) production for first 3 years and installed own manufacturing facilities at Greater Noida plant with initial production capacity of 75,000 refrigerators per month which increased to 2,40,0000

refrigerators per month, which cater through two production lines. One production line is dedicated to DC models and another one is for Frost Free models. It equipped with latest manufacturing machine from South Korea and Germany. With increase of business volume, it started another plant in Ranjangaon, Pune. LG divided their manufacturing strategy in two categories - Noida plant caters North and Eastern Indias demand and maximum is low end and middle end. - Pune plant is for Southern and Western India and 65% qty produced is higher models and 35% is low end and middle segment. - To get maximum export and logistic benefits 80% export business is at Pune division and only 20% at Noida plant.

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- DIOS (Side by side) models are 100% CBU [full form of CBU] business. - Initial production capacity was 700 sets per day - Has two production lines in Noida, one is dedicated to DC models and another is for FF models. - Pune production unit has one production line which produced DC and FF both. - Manufacturing mix is the greatest tool which encashed (?)as per market demand. - Model mix and huge market demand gave an opportunity for economies for scale. Demand and Supply With the increase of domestic and export demand company started to face capacity problem at in house as well as vendor end. Vendor capacity, raw material availability and material feeding to production line became more challenging due to production of multi color and model mix. Company adopted pull type and four bin concept for production feeding so that there should be minimum inventory at any point of time.

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With the localization ratio company achieve high inventory turnover ratio. In 2001 it was 65% which increased to 73% in 2009 but next year it will be 69% which is a big problem. To resolve material availability company invited couple of long term prospective suppliers and provided interest free loan, to install high tech plant and machinery, with 2-3 years loan repayment option. This strategy became helpful to get smooth material availability and enjoying cost competitiveness. 70% of vendors are located around peripheral of 10 kms of company premises and 92% are around 20kms peripheral. Since inception Ref business is growing at the rate of 30% and demand fulfillment was always a challenge before LG. Due to seasonality product company was not allowed to invest huge in capital and manpower since it stays idle during lean season. To avail economies of scal & cost Competitiveness Company does strategic stocking during lean season i.e. Dec and Jan month, before REF sales soar. Due to this strategy companies inventory carrying cost increases and capital blocked for almost more than two months. However it always became strength and proved it as a good strategy to retain market share.

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In 2009 local inventory days was 1.9 which is targeting to 1 day in 2010. With increase of production and supply, company faced severe quality problem in 2009 and company had to pay huge loss to the customers and company decided to work on quality for year 2010.

QUALITY ASSURANCE Quality assurance was always a great challenge for the company which was taken care of by time to time. Due to increase of production volume, being a quantitative approach, companys focus has diverted from rigorous quality norms. During peak season a worst quality of material were also used to meet the number game, which started to create problem after some time. To cope up this problem management formed a team of four members who are especially dedicated for LRR, LAR improvement. They started to do audit at vendor end. Establishment of PDI at vendor end helped a lot for molding parts which was always a threat to the organization. Increasing SCR, F.Cost [full words], ASC cost, Rtn. [full words]Cost became worst in year 2009. Part cost, ASC Cost, Rtn [full words] Cost was increased by 71%, 33% and 54% respectively. On the
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other

hand,

quality

established

new

CTQ,

ELT

testing

strengthening with software and implementation of lockring (?) became boon for quality improvement in aspect of gas leakage and choking. To overcome above problems company made a four dimensional plan for 2010. SCR/FCost [full word] Zero Epidemic Part Q. Assurance Monthly Reliability of Functional Parts Early warning Management system TDR for Part cost Reduction with CS [full words] Tele Call Closer increase from 19% 30% FTST [full words]for field training & coordination with factory Factory team to Interact with field Engg in every trg [full words] IQC [full words] Category wise specialist Vendor process Audit strengthening Product wise Reliability Team with IQC Agreement of Common PATD with Vendor for critical parts (import/local) LQC / OQC [full words]
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 Strengthening process Audit - Weekly MES system for Wrong & missing 3F strengthening- weekly Audit by CFT STLT facility strengthening. PL [full words] Safety CTQ Management Strengthening PL Training for latest Technology (Global updates)

SWOT Analysis

STRENGTHS - Decentralized decision making system although guideline comes from Korea headquarter. - Transparency - Ownership Employees are empowered like an owner which give a feeling of own business and it helps to improve productivity. - Sales based bonus scheme Employee get more than 4 times bonus in a year which create bondage between employee and employer.

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- Quantifiable KPI Everyones work is assessed in terms of quantity as well as quality which help to understand the working efficiency and annual promotion and other activities. - It has a kind of flat organization although there is various hierarchy involved. Very often an operator exchanges views, ideas to their manager instead of next level superior. We can say very flexible organization structure. - State of the art technology - Sound financial background - Budget for General expenses is allotted to department level that can check monthly expense and balance and no sudden loss happens. - Good supply hub from South Korea, China and Singapore give cost competitiveness.

WEAKNESS - No fixed production plan. It changes 5-6times in a day. - Vehicle congestion in factory creates problem to get material on time. - Very difficult to get good quality of people in initial phases due to plant location.
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- Alignment between Expatriate and local employee. - Quality deterioration. - High SCR. [full word] - Increase in part cost by 71% - ASC [full word]cost increase by 33% - Retention cost for Service increased by 54%. - Epidemic failure in Defrost timer. Opportunity - Huge potential market. - Logistic costs - Downward trend of Custom & other barriers. - Emergence of regional free trade markets. THREATS - Strong competitors like Whirlpool, Samsung, Videocon. - Copper, Steel, Resin, Chemical price fluctuation. - Environmental norms of Govt. Recommendation - Increase vendor end capacity through rationalization. - Reduce model mix. - Two days fix plan. - R&D should be more robust.
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- Quality inspection criteria should be altered. - Localization ratio should be increased. - Being a price sensitive industry they should pay attention on the cheap availability of good raw-material. By this they could make cheap products of great quality at low price. - Make some strategy to compete with Indonesia and China low price by adopting strategy like price skimming, give more warranty on their products and give better after sales services.

Balanced Scorecard: A Revolutionary Business Strategy or a Mere Performance Measurement Tool- A study on few selected public limited Companies in India Dr. Suchismita Sengupta, Associate Professor, AMS Institute of Management and Research, Ghatkoper Email- sensmita123@gmail.com ABSTRACT This paper is an attempt to explore the innovative performance measurement practices by few Indian Public Limited Companies towards building long term sustainable competitive advantage. The objective of the research is to understand and evaluate the
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existing PM system of the companies and to assess their individual strengths and weaknesses and their impact on companys growth and thereby suggesting some good practices which is applicable and effective in various situations towards achieving the long term objective and goal of the organization.

A structured questionnaire had been administered to collect data. Primary data was also collected by arranging telephonic interviews with the top corporate executives and both qualitative and quantitative techniques are employed for analyzing the data. The specific methods of data analysis include descriptive statistics such as tabulation, cross tabulation, computations of frequencies, computations of percentages, computation of mean score and standard deviation as well as correlation and regression analysis.

The result suggests that non-financial measures are significant explanatory factors of financial performance. More importantly, findings show that companies that consistently employed both financial and non-financial measures performed much better than those who do not. The result shows that organizations approach towards the use of performance measurement system over the
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last five years is gaining increasing focus and significant emphasis and the performance measurement system is perceived as key managerial control of the organization towards achieving its long term goal. The selected companies in various sectors are using various financial and non-financial performance measurement systems.

The study reveals that Balanced Scorecard has received increasing attention in many industries like Banking, Pharmaceuticals, Healthcare, Hospitality, Manufacturing not as a mere performance measurement tools but as a corporate strategy. The study shows that Balanced Scorecard is one of the revolutionary innovative strategies rather than a mere performance measurement tool which can transform corporate practices into its long term growth and success.

Key Words: Innovative Performance Measurement Practices, Balanced Scorecard, Corporate Strategy, Non-Financial Measures, sustainable competitive advantage 1.Introduction

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World class organizations, whether public or private, have introduced various performance measurement systems to realize the ultimate goal of organisation by increasing effectiveness and efficiency of their programs, processes, and people and thereby increasing the quality of products and services. These leading organizations are keen to determine the indicators that would be very useful to measure their progress in meeting strategic goals and objectives by collecting and analyzing performance data, and finally its utilization towards value additions in their organization by successfully translating their strategies into action. With the help of its effective performance measurement system, a high-performance organization can remain competitive in the long run; all the leading high performance organizations are greatly concerned with developing and deploying effective PMS for their organizations. A major reason of companies getting into conflict in evaluating performance as the evaluation process is primarily based on cost and efficiency whereas there are many more criteria to judge performance (Skinner, 1971). The above statement suggests that, one of the key limitations of the performance measurement systems used by many firms is that they have traditionally adopted a narrow, or uni-dimensional,
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focus. Kaplan and Norton (1992), and various other authors have argued that a firm can overcome this problem by adopting a balanced set of measures. According to Kaplan and Norton (1992), such an approach helps managers to seek four fundamental questions: How do we lean on our shareholders (financial perspective)? What must we outrival at (internal business perspective)? How do the customers perceive us (the customer perspective)? How can we continue to improve and create value (innovation and learning perspective)? (Andy Neely, et al. 2000) The success and growth of the companies depend on their performance i.e how they transform their objectives and strategies into action and thereby the actions into success. Every activity of every person of every department of every organization contributes to the companys objective and thereby its overall success and growth. performance of the Good managers keep track of the system by means of performance

measurement (Flapper et el 1996). Performance Measurement is the process of quantifying the efficiency and effectiveness of actions and a performance
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measure is a metric to quantify the efficiency and effectiveness of an action and a performance measurement system is the set of metrics to quantify the efficiency and effectiveness of actions (Neely et al-1995)

1.1 Background and motivation of the Research Initiative:Most of the empirical literature on corporate performance measurement has concentrated on one particular performance tools in India. A very few studies have been carried out where various PM tools are compared and evaluated to identify their internal strengths and weaknesses. Apart from this comparison issue, there has been a very little work on sector-wise study or business group level research in the area of performance measurement. Our primary focus has been the performance of Indian firms in a group. While we provide some preliminary analysis of group performance, an interesting topic for future research is to more fully explore the cross-sectional variation of the performance of Indian business groups as a function of group characteristics. (Khanna and Palepu, 2000).

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In the light of above discussion we may conclude that following reasons have provided the motivation and background of this research initiative.

1.Limited research in this area in developing and emerging economy. 2.Inadequate research in the area of performance measurement practices of Indian companies and their impact on companys performance and growth. 3.Limited research exploring economic performance of companies for long time growth perspective. 4.Very few studies have been carried out where various Performance Measurement tools are compared and evaluated. 5.Inadequate work on sector-wise study or business group level research in the area of Corporate Performance Measurement.

1.2 Objectives of the study The study aims at examining various performance measurement practices in selected public limited companies in India and identifying to what extent they use the integrated performance measures, their extent of utilization and perceived relevance
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related to their actual financial results. In this regard an integrated model such as the Balanced Score Card (BSC) approaches (financial, customer satisfaction, internal process/operational and employee satisfaction measures) has been taken as reference for the study. The main objectives of the research are as follows: (a) To study the existing performance measurement systems of

various leading public limited companies in India and understand the various measurement tools used by them and reason for using them. (b) To identify the innovative performance measurement

practices by the Indian companies and their impact on Companys success and growth. (c) (d) To evaluate various financial and non-financial measures. To understand how this measurement is linked with the

incentive plan of the employee and tries to assess their impact on companys growth. (e) To find out the relationship and compare various

performance measurement tools with the growth of the company in terms of various financial and non-financial parameters such as

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sale growth, profit growth, market retention, shareholder value creation etc. (f) To identify the Best Practices in Performance Measurement

systems, existing in public limited companies in India i.e the best measure or the group of measures that is most effective under different situations and suggesting a model that could be used by any company for effectively achieving the ultimate goal of organisation.

1.3 Research Methodology 1.3.1. Literature Review: For the purpose of establishing a conceptual framework, a comprehensive literature review has been carried out. 1.3.2 Primary Data: A list of 28 listed companies has been selected and the primary data has been collected through a combination of structured questionnaire and telephonic interviews. A structured

questionnaire has been designed and circulated among various industries to capture the existing measurement systems followed by them. The telephonic interviews were made with key resource persons, who are responsible for strategic decision making in
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performance measurement area in the selected companies under investigation. Based on the responses on questionnaire and the interviews, the companies has been categorized according to the performance measurement technique, they are using to compare the respective performance and to find if there is any difference at all in terms of the growth (e.g Sales growth, PAT growth or the growth in profit margin.) The questionnaire is designed to collect data regarding the current performance tools being used by the company and the advantages and disadvantages of using the same. To derive the responses on implementation issue from employees perspective and management perspective to understand whether the transformation process was smooth from the earlier systems if any. How this new measurement tool is effective in creating shareholder value in the organization. The data collected have then been categorized according the performance measurement technique they are using.

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1.3.3 Secondary Data: The performance data relating to sales growth, market share, growth in profit margin, growth in PAT ( Profit after Tax) have been collected from secondary sources e.g. CMIE, Prowess database to find impact of various performance measurement tools used by selected 28 listed companies under investigation. These companies are observed for understanding their existing performance measurement systems and evaluation of each techniques and their effectiveness in achieving their long term goals.

Statistical test like Correlation and Regression Analysis has been applied to test hypothesized relationships between the two variables (the financial performance and the extent to which the non-financial measures are used in the sampled enterprises). The comparative analysis of performance measurement and growth has been carried out in the light of various performance measurement tools like SVA, BSC, EVA, EPS, ROI, Activity Based Costing etc.

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The empirical findings from primary data and the observations from telephonic interviews backed by the conceptual framework from literature review have constituted the ground of analysis for this research. On the basis of analysis of the strength and weakness of the present performance measurement system, the findings and recommendations are drawn. In the entire process of analysis, the qualitative as well as quantitative study had been carried out simultaneously and subsequently the results of both the analysis were cross checked to validate the inference. The survey responses are primarily used for qualitative study and the secondary data collected from prowess database and other various sources provides the basis of quantitative research.

A survey was administered to collect data and both qualitative and quantitative techniques were employed for analyzing the data. The specific methods of data analysis include descriptive statistics such as tabulation, cross tabulation, computations of frequencies, and computations of percentages, computation of Mean and Standard Deviation and correlation and regression analysis. The relative importance of financial as well as nonfinancial measures in relation to the performance measurement
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system, in the context of Indian enterprises was investigated. The result of the analysis indicated that the majority of respondent enterprises primarily focus on financial measures, using historical data, accounting profits and financial ratios. The financial measures are considered as having great importance in the respondent enterprises. Despite the fact that the non-financial measures are as important as the financial measures, little or no attention is being paid to non-financial dimensions. However it has also been observed that, growing companies are giving increasing focus on the non- financial measures. The result of the analysis revealed that there is a clear and strong relation between the financial performance (sales growth rate, profit after tax) and the non-financial performance measures (customer satisfaction, internal process/operational and employee satisfaction). In addition, empirical findings suggested that the non-financial measures are significant explanatory factors of financial performance. More importantly, findings show that high performance organizations have consistently employed both financial and non-financial measures performed better than those who do not.

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Based

on

the

results

of

the

study

important

policy

recommendations are drawn. Indian companies have to give more attention on human development and learning and growth. They should have to invest in re-training employees to get motivated and competent people to produce customer perceived product quality as well as continuous improvement of operational processes, which may help the enterprises to compete in todays dynamic business environment. Generally the study has collected essential numerical evidence for the future development of Indian enterprises. Knowledge and understanding of the critical factors underpinning enterprises performance can lead to further improvements. In turn this will help the overall development of the national economy. 2. Overview of the Indian Public Limited Companies Public Limited Company, usually refers to a company that is permitted to offer its registered securities (stock, bonds, etc.) for sale to the general public, typically through a stock exchange, but also may include companies whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services such as the OTCBB and the Pink Sheets.

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The term "public company" may also refer to a governmentowned corporation. This meaning of a "public company" comes from the tradition of public ownership of assets and interests by and for the people as a whole (public ownership), and is the lesscommon meaning in the United States. The shares of a public company are often traded on a stock exchange. The value or "size" of a public company is called its market capitalization, a term which is often shortened to "market cap". This is calculated as the number of shares outstanding (as opposed to authorized but not necessarily issued) times the price per share. Say for example, a company with one million shares outstanding and a price per share of Rs. 50 would have a market capitalization of Rs. 50 million. However, a company's market capitalization should not be confused with the fair market value of the company as a whole since the price per share are influenced by other factors such as the volume of shares traded. For example, if all shareholders were to simultaneously try to sell their shares in the open market, this would immediately create downward pressure on the price the share is traded for unless there were an equal number of buyers willing to purchase the security at the price the sellers demand. So, sellers would have to
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either reduce their price or choose not to sell. Thus, the number of trades in a given period of time, commonly referred to as the "volume" is important when determining how well a company's market capitalization reflects true fair market value of the company as a whole. The higher the volume, the more the fair market value of the company is likely to be reflected by its market capitalization. Another example of the impact of volume on the accuracy of market capitalization is when a company has little or no trading activity and the market price is simply the price at which the most recent trade took place, which could be days or weeks ago. This occurs when there are no buyers willing to purchase the securities at the price being offered by the sellers and there are no sellers willing to sell at the price the buyers are willing to pay. While this is rare when the company is traded on a major stock exchange, it is not uncommon when shares are traded over-the-counter (OTC). Since individual buyers and sellers need to incorporate news about the company into their decisions as to what prices they are willing to accept, a security with few buyers and sellers may have a market price that does not yet reflect the effect of such news,

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simply because those buyers and sellers are not yet aware of the news or have not yet figured out how it should affect the price. India is a vast country with developed corporate sector. Over the last 60 years since independence the corporate India have undergone a see change; especially there has been a paradigm shift in the business scenario since 1991 after the liberalization of economy namely LPG or i.e. Liberalization, Privatization and Globalization. Since the progress in the corporate has been fertile, so the performance evaluation of the corporate India as well is dynamic. Traditionally Ratio Analysis, Cash Flow are the main techniques and for performance analysis of a business. But with the complexities in modern business centre new technique like common size statement, Balance Scorecard, etc have gained importance throughout the globe. India is not an exception to it. Most of the big corporate houses have started performing this exercise to estimate it real performance and to maintain checks and balances for all the activities of the concern. 3. Measuring Business Performance Once a company understands how to create value in each business by influencing the value drivers, the next challenge is managing
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each business to attain results consistent with the top-down aspirations. Business performance management is the process of setting targets for a performance unit and regularly reviewing progress against them, with the goal that different levels of the company will work together for enhanced performance. Business performance management is often the core of managing for value, as this is where value metrics, value drivers, and targets must translate into everyday actions and decision making. When business performance management is working well, it helps different levels of the organization communicate clearly and effectively. In particular, effective business performance

management greatly improves the communication between the corporate center and the business units. It gives managers freedom to formulate plans and policies, ensuring that the agreedupon level of performance will be achieved. But when business performance management is done poorly, it can degenerate into piles of paperwork and much wasted time. There are several components of successful business performance management. First, a business unit must have a clear strategy for creating value. Second, it should set targets with a clear link to specific value

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drivers. Third, it needs a structured calendar of performance reviews to discuss results against value-linked KPIs.

3.1 Sample Selection Focusing on Public Limited companies in India, in order to understand the general and specific trends, a list of 200 listed companies has been selected and out of these 200 companies, the responses from 28 companies received as feedback for analysis. The primary data has been collected through a combination of structured questionnaire and telephonic interviews. The

companies include the following sectors: a.Manufacturing b. Service

c. Healthcare d. Transportation

e.Engineering f. Oil & Gas g. Consulting h. Irrigation

i. Pharmaceuticals

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3.2 Data Collection Primary Data: A structured questionnaire has been designed and circulated among various industries to capture the existing measurement systems followed by them. The interviews were made in persons in the selected companies under investigation. Based on the responses on questionnaire and the interviews, the companies has been categorized according to the performance measurement technique, they are using to compare the performance and to find if there is any difference at all in terms of the growth. The questionnaire is designed to collect data regarding the current performance tools being used in the company and the advantages and disadvantages of using the same. To derive the responses on implementation issue from employees perspective and management perspective to understand whether the transformation process was smooth from the earlier systems if any. How this new measurement tool is effective in creating shareholder value in the organization. The data collected have then been categorized according the performance measurement technique they are using.
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In this chapter the data is analysed and interpreted to examine whether Indian Industry practices are keeping track with the international trends regarding performance measures identified in the literature study, and if not, to identify possible reasons for the disparity. Quantitative as well as qualitative survey data were used to provide an in-depth analysis amongst the sample enterprises with respect to the issues examined in this study. The content of this chapter has been restricted to the presentation, analysis and interpretation of collected data. The first part of this chapter presents the general profile of the respondent enterprises; the second part is the profile of financial overview of the sampled enterprises. Chapter Seven is the descriptive, correlation and regression analysis comparing the financial performance of the respondents with the extent to which they also use non-financial measures. The conclusion and inferences are also discussed in Chapter Seven to present the management approaches to strategic performance measurement. The following table provides information on the job positions of the respondents who completed the questionnaire. As can be seen from the table below, the respondents belong to senior
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management staffs who are closely involved in strategic planning and decision making. 4. Data Analysis The empirical findings from primary data and the observations from structured interviews backed by the conceptual framework from literature review have constituted the ground of analysis of this research. On the basis of analysis of the strength and weakness of the present performance measurement system of the sampled enterprises, the findings and recommendations have been drawn. In the entire process of analysis, the qualitative as well as quantitative study had been carried out simultaneously and subsequently the results of both the analysis were cross checked to validate the inference. The survey is primarily used for qualitative study and the secondary data provides the basis of quantitative research. To assess whether the company uses performance measurement as a system, the question was asked Does your company currently have an existing performance measurement system in place? 100 per cent of the respondents agreed that they do have. Out of 28 sample size everybody does have some kind of performance
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measurement systems in place. There exists a number of performance measurement (PM) practices and approaches followed by the respondent companies including MBO based PMS, Performance Contract/ Service Level Agreement, MOU, Key Performance Indicators (KPI), EVA, Balanced Score Card, Return on Investment (ROI), Shareholder Value Added (SVA), Market Value Added (MVA), ROCE, Sales Growth rate, Cash flow, Profit Margin, ROE, Performance Centered Management system etc, Key Result Areas (KRAs), productivity and quality measurements, Earning per Share (EPS), Return on Investment (ROI) etc or a combination of them. From the following figure 6.1, it may be concluded that all the sampled companies in this research do have some kind of performance measurement system in practice.

To get the idea about their existing performance measurement system, the question was asked, Does your company currently have an existing performance measurement system in place?

Essentially, the origin of performance measurement suggests that company sometime uses one performance measurement or multiple Performance measurement system, i.e a combination of
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various measurement systems. Therefore, the study was also prompted to find out which specific performance measurement systems are being currently used in the organization? e.g. EVA, Balanced Scorecard, Return on Investment (ROI), Shareholder Value Added (SVA), Market Value Added (MVA) etc or a combination of them.

The response statement was developed and the tabular and graphical responses to these questions are presented in Table-4.1 below. Figure 4.1 Performance Measurement System used in Sample Companies

Source: Authors own computation The study further examined whether the respondent organization gives significant importance to these performance measurement tools as corporate objectives Therefore, the managers were asked to describe their organizations approach to the use of performance measurement system over the last five years and their responses are presented in the following figure 4.2.

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Figure 4.2 Organizations approach towards usage of performance measurement

Source: authors own computation The respondents were asked how they would describe their organizations approach to the use of performance measurement system over the last five years. The responses show that there is an increasing trend in using the modern and non-financial measures or a combination of financial and non-financial measures rather than focusing only on financial or traditional measures on a stand alone basis. It is extremely important for organizations to be able to plan and envision their future for coming years. The literature has indicated that many organizations failed due to the lack of vision. The above question in this research was asked to all the companies regarding their approaches on performance measurement for last five years. Out of 28 respondents, 50% of them believed that there is a significant emphasis on performance measurement, while 38% conveyed that the performance measurement practices are increasing in their organizations. Only 4% of the companies have diminished focus on performance measurement according to this
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research. 8% of the respondents are indifferent towards the approaches on performance measurement. This concludes that around 88% (50% + 38%) of respondents do believe that there is high importance given to performance measurement in last five years in their respective companies. This research has also studied that to what extent the respondent companies think that the performance measurement system of the Organization is important to achieve its long term goals and objectives. Figure 4.3 Importance of Performance Measurement System of the Organization towards achieving its long goal

Source: authors own computation A question was asked to know their perception about the importance of performance measurement system of the Organization towards achieving its long term goal. Out of 28 respondents, 55% of them believed that performance measurement system is a key managerial control, while 38% conveyed that the performance measurement practices are very effective in their organizations. Only 7% of the companies believe that performance measurement has got limited values in
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achieving its long term goals according to this research. However none of the respondents has reasons to believe that it is sheer wastage of time. It may be concluded that around 93% (55% + 38%) of respondents do believe that performance measurement system of their companies is extremely important in achieving long term goals and objectives of their respective organization. In order to find to what extent the performance measures are aligned with the strategies of the organizations, the surveyed companies were asked a question whether the performance measures are modified if there are changes in the organizations strategic focus. Question was asked whether performance measures are modified when there are changes in the organizations strategic focus. This research revealed that only 14% of the respondents say that performance measures are always modified if there are changes in the organizations strategic focus, and the 57 % says that the measures are usually modified. However 14% says that it is often modified while 11% says it is rarely modified. It is interesting to note that only 4% respondents say that it is never modified and

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the performance measurement systems does not have any strategic focus or vision. Hence it may be concluded that, around 85% (57% + 14% + 14%) of the respondents do believe that performance measurement systems in their organizations are aligned with the long term strategy of their respective companies. The survey also attempted to identify the degree of linkage between corporate objectives and strategic plans. A strategic approach to managing performance is demonstrated when corporate objectives are linked to an organizations long-term plans and individual key accountabilities. To assess this dimension, the respondents were asked whether or not their organization use performance measurement tools to identify areas that require strategic focus. They were also interviewed to find out if the key objectives are influential to the development of employees individual accountabilities or job descriptions. The above figure 6.5 indicates how the managers perceive about linkage between objectives and strategies for accomplishment. The sample companies had also been asked a question whether their respective organization use performance measurement tools to identify areas that require strategic focus. 25% of the
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respondents say that the PM tools are used to identify the area requiring strategic focus as a matter of policy, while 39% of the respondents do it frequently and 18% of them do it occasionally. However 11% of them do it rarely and only 7% never do it. A question was asked Does your organization use performance measurement tools to identify areas that require strategic focus? This result concludes that majority i.e. around 82% (25% + 39% + 18%) of the surveyed companies do use their performance measurement systems to identify the area that require strategic focus, whereas few companies 18% ( 11% + 7%) rarely or never do this.

The surveyed companies were asked that how often their companies prepare the formal performance measurement reports.

The respondents were also asked how often they prepare formal performance measurement reports.

18% of the respondents say that the formal performance reports are prepared by their companies every month, while 11% of them

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do it quarterly, 46% do it annually and 25% of them do it twice a year. This research reveals that as far as preparation and maintenance of performance measurement reports, less number of companies do it frequently. In order to find out the frequency of measurement results review, the respondent companies were asked that how often the measurement results are reviewed. The result reveals that 19% of the respondents are doing it monthly, 19% are doing quarterly, 26% are doing half yearly, 32% annually and 4% of the respondents are doing according to their own needs and priorities. In order to find out the linkage of performance measurement with the individual or team rewards, the surveyed companies were asked a question whether the performance measures are linked to individual and/or team rewards. The results show that 65% of the respondent companys performance measures are linked to the individual or team rewards, whereas in case of 14% this is not linked. However 21% of the surveyed companies sometimes follow a combination of both.
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Different managers perceive the same thing in different ways. Similarly, the study aimed to find out how managers perceive various objectives of PM and their view on the existing PM framework.

In order to find this out, the managers were asked to give their view on how and to what extent their existing measurement system is effective in measuring the value drivers. The study therefore attempts to provide the glue that brings the whole thing together. Whether the emphasis at one time or in one place is on, say, developing written standards, on performance measurement, or on a particular system such as quality assurance or customer care, the framework can locate this within a wider picture. This helps bring the detail into perspective, and provides clues as to what needs to be done next. To check whether present performance model adequately address and measure whole set of objective and value drives, the respondent were asked to give the opinion about the performance measurement system of their company.

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The responses reveal it may be concluded that financial performance is perceived as highly valued information (having the highest score of 18), for designing PM. Similarly employee performance (with the highest score of 18) is perceived to be very much linked with Performance Measurement system of

respondent enterprises.

In order to check how the existing PM system measures the various values like Innovation, Quality, Customer orientation, technology etc, a question was asked, How effectively your current performance measurement tools measure the following value drivers? The response for this various value drivers are mapped in the following figure 4.1. It is clearly observed from the figure that financial performance measures are considered to be highly valued information and employee performance is very much linked with the performance measurement system of the organization. From the following table 4.1, the response result shows that as far as cost parameter is concerned, 46.43% of the respondents feel that, it very well measured while for the selection of supplier parameter, only 7.69 % feel it is very well measured. The
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perceived responses regarding the effectiveness of their current performance measurement tools measure towards the following value drivers are presented in a tabular form below. Table 4.1 Perceived effectiveness of Performance Measurement Systems in measuring value drivers PARAMETERS Very Well Measured Well Measured Not at all

Adequately Measured In adequately Measured Measured Innovation 17.86% 14.29% 46.43% 7.14% Quality 28.57% 42.86% 21.43% 3.57%

14.29% 3.57%

Customers Orientation 14.29%

21.43% 32.14% 32.14% 0.00%

Technology 26.92% 15.38% 42.31% 7.69% Brand Equity

7.69%

25.93% 22.22% 25.93% 14.81% 11.11% 18.52% 25.93% 33.33% 11.11%

Employees Satisfaction 11.11%

Selection of Supplier 7.69% 11.54% Shareholder value creation 11.54%

42.31% 26.92% 11.54%

26.92% 30.77% 26.92% 3.85%

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Project Implementation 33.33% 40.74% 18.52% 0.00% 7.41% Cost 46.43% 25.00% 21.43% 3.57% 3.57%

Management Credibility 25.93% 37.04% 18.52% 3.70% 14.81% Source: authors own computation This research revealed that 42.31% of the respondents believe that the selection of supplier parameter is well measured. Product innovation, product quality and technology play extremely important role in building competitive edge and long term sustainable growth. As far as innovation parameter is concerned, the research revealed that 46.43% of the responses perceive that it is adequately measured. It shows there is lot of scope for further improvement of this ratio. Regarding Quality of products and services 42.86% of the respondents believe that it is well measured, which is a positive signal of striving for excellence. In pursuing an advantage over its rivals, a firm may select few strategic moves: Improving product differentiation Creatively using channels of distribution Exploiting relationships with suppliers
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 Changing prices Technology is also considered to be very important parameters for long term success. From the survey responses, it is observed that 42.31% of the respondents perceive this to be adequately measured. This shows some scope for improvement. In most of the competitive industry, be it service, or manufacturing, there always exists a threat of substitutes. A firm can reduce this threat by investing more on technology and innovation and thereby having a competitive edge over its rival industries.

The fundamental objective of this study was to examine the satisfaction level of current performance measurement model for measuring performance of Indian Public Limited Companies, by means of various factors as listed below using five point Likert scale from strongly satisfied to Strongly dissatisfied. In order to understand the importance of financial parameters of the sampled enterprises, the respondents were asked to rate the various financial measures relative to their effective

use/importance in their enterprises. Based on their responses it may be concluded that sales growth, Return on Investment (ROI) and return on assets (ROA) are considered to be very important
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parameters for measuring performance while return on equity (ROE), liquidity and profit margin are comparatively perceived as less important measures. Figure 4.4 Importance of financial measures relative to their effective use/importance

Source: Authors own Computation

Non-financial measures Recent literature related to manufacturing performance

measurement indicates to the increasing relevance of nonfinancial measures. The literature argued that financial

performance measurement alone is not enough for the new reality of organizations (e.g. accelerated changes in technology, needs for innovation and flexibility, shortened product life cycles etc.). Hence due consideration has been given to other important nonfinancial measures such as customers, employees and operational measures, all of which are integrated into the balanced approaches.

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In respect of non-financial performance measurements, the research findings exhibited a noticeably different pattern compared to the financial dimensions. Customers satisfaction and retention measures Recent research argued that customers are far more demanding and informed today than in the past. In this information age, people can access to information in split of seconds and search for companies who will do more than just meet their needs; customers do research the product quality, price and delivery time. They chose companies who will satisfy them. Delighted customers lead to loyal customers. Nevertheless, this

understanding is not reflected in most of the sampled enterprises. Empirical results shows that only 16.25% of the sampled enterprises agreed that, the overall customer satisfaction and retention measures are used to evaluate enterprises performance. This is far below the satisfactory level. From this result one can understand that most of the respondent enterprises may lead to lack of customer related information. This may cause a problem to the respondent enterprises in improving and redesigning their products. As a result, the low outcomes in customer satisfaction measures could lead to a decline in market share and loyalty.
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In order to understand the Perception on Customer related measures of the sampled enterprises, the respondents were asked to rate the various customer related measures relative to their effective use/importance in their enterprises. Based on their responses it may be concluded that accurate data maintenance relating to customer and market share are considered to be important parameters for measuring performance while customer survey and accurate data on returned order are comparatively perceived as less important measures. The mean scores of accurate data maintenance relating to customer and market share have come as 4.07 and 3.96 respectively, while that of customer survey and accurate data on returned order have come as 3.85, 3.78 respectively. Figure 4.5 Perception on Customer related measures

Source: Authors own Computation Internal process / operational measures Literature argued that achieving good performance levels on process or operational measures lead to high quality products and services, which, in turn, lead to satisfied or delighted customers, which lead to repeat business and promote long-term success.
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Hence, the types of process measures that are taken to evaluate the existing operational/ process of the sampled enterprises are: customer perceived product quality control, manufacturing cycle time, and order to deliver time. The study recommends, if

manufacturing enterprises fail to produce customer perceived product quality to deliver in the right time in both the short and long run, sales revenue may decline and the business may wither. Furthermore, time is critical process measure for any task because it equates to cost and satisfying customers needs. Customers need things quickly at a minimum payment. Focusing on cycle time allows enterprises to keep its cost down while satisfying even delighting customers. Nevertheless, empirical findings as depicted in table 6.10 shows only 37.50% of the respondents agree on operational measures. This may lead to loss of existing customers and decline of sales revenue or market share. In order to identify the degree of effective use of the operational measures of the sampled enterprises, the respondents were asked to rate the various internal process and operational measures relative to their effective use/importance in their enterprises. Based on their responses it may be concluded that Cycle time and customer perception on internal process efficiency are considered
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to be the most important parameters for measuring performance while process cost and internal process efficiency are perceived by the respondents to be less important measures. The mean scores of Cycle time and customer perception on internal process efficiency have come as 4.60 and 4.54 respectively, while that of process cost and internal process efficiency have come as 4.40, 4.25 respectively. Figure 4.6 Degree of effective use of the operational measures

Source: Authors own Computation Assessing employee satisfaction and retention measures For the purpose of identification of the degree of effective use of the employee related measures of the sampled enterprises, the respondents were asked to rate the various employee related measures relative to their effective use/importance in their enterprises. Based on their responses it may be concluded that Job Security and Employee Turnover/Retention are considered to be the very important parameters for measuring performance while Salary satisfaction and Job Training are perceived by the respondents to have less focus. The mean scores of Job Security and Employee Turnover/Retention have come as 4.32 and 4.29
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respectively, while that of Salary satisfaction and Job Training have come as 4.18, 4.11 respectively. This shows that the public limited companies in India should provide more focus on Salary Satisfaction and Job training in order to increase the employee satisfaction level and thereby improvement in product and process efficiency. The results of the mean scores are exhibited in the following table 4.2 and figure 4.7. Table 4.2 Degree of effective use of the operational measures Factors Mean Standard Deviation

Job security

4.32 0.82

Emp.Turnover/Retention 4.29 0.81 Employee benefit Salary satisfaction Job training 4.19 0.63 4.18 0.90

4.11 0.96

Source: Authors own computation from questionnaire responses Figure 4.7 Degree of effective use of the employee related measures

Source: Authors own Computation In order to understand the respondents perception regarding the investors view on importance of companys Financial and NonInternational Journal of Business Derivatives Vol I No 2 2011 Page 406

Financial measures and the degree of their reliability, the respondents were requested to rank various measures in 1-5 point Likert Scale. Figure 4.8 Investor's perception on importance of companys Financial and Non- Financial measures

Source: Authors own Computation As per the result, the respondents of the sampled enterprises perceive that investors more rely on Alignment of Employee Compensation with Shareholders Interest, Research Leadership and Commitment to environment while the investors have the least reliance on Quality of Corporate Strategy, Management Credibility and Execution of Corporate Strategy. The mean score of the measures, Alignment of Employee Compensation with Shareholders Interest, Research Leadership and Commitment to environment are 3.24, 3.00 and 2.74 respectively while for Quality of Corporate Strategy, Management Credibility and Execution of Corporate Strategy, the mean scores are 2.05, 1.85 and 1.80 respectively which shows lots of scope for improvement in the management approach towards these measures in order to

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increase the investors trust and dependence on management and the strategic decision makers. To identify the perceived areas of improvement in the sampled organizations, the respondents were requested to mention some of the areas from the options given in the questionnaire, where they believe improvement are most needed in their organization's performance measurement system. Based on their feedback the following figure is constructed which demonstrates that most of the respondents believe that senior leaders need to be more aligned in their interpretation and support of the strategy. They also think that there needs to be more accountability for achieving performance targets and finally Individual rewards and

recognition need to be more closely linked to performance on the strategic metrics in order to design a comprehensive performance measurement system in the organization and to gain long term success from it. Figure 4.9 Areas requiring improvement in your organization's performance measurement system

Source: Authors own computation 5. Result and Discussion

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Though ratio analysis is viewed as an effective tool for assessing a companys financial conditions, but its limitations should also be recognized. No single ratio or group of ratios is adequate for assessing all aspects of a companys financial conditions. Just looking at the historical trend of a specific companys ratios could also be limiting. That is why, with the globalization of markets and greater foreign competition, it becomes imperative to compare a companys financial indicators with the industrys best practices. In this section the average financial ratios of the sampled enterprises have been compared with their year to year performance over a period of five years. Needless to mention the significance of the growth rates depends on the availability and accuracy of information. Sales growth is considered as a sustainability measure used to compare a companys financial condition against industry norms. It is believed that this measure provides valuable information to estimate the ability of enterprises to sustain and grow in the longrun. The following table presents the profile of the annual average turnover of the respondent enterprises. The overall sales growth of 4.76% presented in Table 4.3 is an outcome of the negative
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growth of the individual respondent enterprises. This negative growth may indicate the inability to grow and to pay their obligations when needed. The result indicates that 23.81% of the respondent enterprises exhibit a comparative sales growth rate between 10 to 20%. Table- 4.3 Comparative Sales Growth SALES GROWTH % Less than -10% 0 -10% to 0% 1 0% to 10% 3 10% to 20% 20% to30% 3 30% to 40% 40% to 50% Above 50% 3 No of Enterprises Percentage of Enterprises 0.00%

4.76% 14.29% 5 23.81%

14.29% 5 1 23.81% 4.76%

14.29%

Overall average 21 100.00%

Source: Authors own computation based on data obtained from survey Similarly table 4.4 and table 4.5 present the profile of the annual average Profit margin growth and comparative growth in Profit
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after Tax (PAT) of the responded companies for analyzing their financial performance of sampled enterprises. Table- 4.4 Comparative Profit Margin Growth PROFIT MARGIN GROWTH % No of Enterprises Percentage of Enterprises Less than -10% 5 -10% to 0% 2 0% to 10% 5 10% to 20% 20% to30% 1 30% to 40% 40% to 50% Above 50% 3 25.00%

10.00% 25.00% 2 10.00%

5.00% 2 0 10.00% 0.00%

15.00%

Overall average 20 100.00% Source: Authors own computation based on data obtained from survey Table- 4.5 Comparative Growth in PAT PAT GROWTH % No of Enterprises Percentage of Enterprises Less than -10% 2 -10% to 0% 0 0% to 10% 0 10%

0.00% 0.00%
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10% to 20% 20% to30% 3 30% to 40% 40% to 50% Above 50% 6

5.00%

15.00% 4 4 20.00% 20.00%

30.00%

Overall average 20 100.00%

Source: Authors own computation based on data obtained from survey It has been observed from the secondary data that, the sales growth % on year over year basis has increased significantly in most of the companies. The growth of PAT has also increased with the corresponding growth in sales. Earnings per share have also increased with the increase in Net profit margin. With the growth in Net Profit margin and earnings per share, market price of the shares traded in BSE also gone up over a period of time. It has been revealed from this study that in case of Hindustan Constructions Co Ltd., soon after implementation of EVA in 2005 there has been a dip in the S/Debtors even though there is a growth in Sales and Income in the subsequent years may be considered as a positive effect of the implementation of their
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existing Performance Measurement. In case of Panacea Biotech one can link the implementation of EVA in the year 2006 with the sharp increase in Net Profit Margin in the next years. The above can also be attributed to a growth in EPS. Further there is a sharp increase in PAT, which may be linked to the focus of the company on EVA. In case of the company Spentex Ltd. a sharp increase may be attributed in Operating Profit with the implementation of Performance Measurement tool, in 2005. In case of ONGC, after implementation of their existing measurement system, there has been an increase in Operating Profit and a decrease in Sundry Debtors in spite of a sales growth. This might be attributed to increase focus of the management on EVA. However, in case Garware Polyester Ltd. it seems that though factors were under control after the implementation in the year 2002, however, since 2005 things seems to be unusual, and the trend does not match with the industry. Tata Consultancy Services Dip in sales figures post 2005 is due to the effect of general slow down in the Off shore market for the preceding years and should not be linked with implementation of EVA, however due to the implementation of their existing

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measurement tool, an increased focus may have led to dip in A/R ratio and increased EPS. During the Financial year 2007-08 NIIT Limited made major strides in its transformation from an IT & IT enabled training company to a Global Talent Development Corporation. During the year NIIT continued to grow based on its stated strategy set which focused on Accelerated growth Improved profitability Market leadership in chosen areas. During the last financial year 2007-08, NIIT experienced robust revenue growth improvement leading to improved market position. Over the last 3 years the company has grown: Revenue at a CAGR of 22% EBITDA at a CAGR of 31% Net profit up by 37% NIIT has witnessed a marked improvement in its net revenue and profitability with: Net revenue of Rs 10,068 million - 27 % growth EBITDA of Rs 1036 million 34 % growth Operation PAT at Rs 422 million 74% growth
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The dip in revenue post implementation can be attributed to the factors like change in revenue recognition criteria e.g change in the Billing system from Total collection to Course ware revenue in 2001-2002 and De-Merger of NIIT & NTL in 2004. 5.1 Secondary Data: The performance data relating to sales growth, PAT (profit after tax) growth, growth in profit margin have been collected from secondary sources of Prowess database and various websites (e.g www.moneycontrol.com, www.valuenotes.com etc) to find impact of this various performance measurement tools of selected 28 listed companies under investigation. These companies are observed for understanding their existing performance

measurement systems and evaluation of each performance measurement techniques and their effectiveness. Regression and Co-relation Analysis has been applied to test hypothesized relationships between the two variables (the financial performance and the extent to which the non-financial measures are used in the sampled enterprises). The comparative analysis of performance measurement and growth has been carried out in the light of various performance

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measurement tools like SVA, BSC, EVA, EPS, ROI, Activity Based Costing etc 5.2 The relationship between the financial performance and the non-financial measures Chapter six and seven of this research deals with assessment of the existing financial profile of the sampled enterprises using some selected financial ratios such as sales growth, growth in profit margin and PAT (profit after tax) growth. Results of the financial ratios show that performance of those companies is satisfactory as per the industry standard that are consistently following the balanced set of measures comprising of financial and non-financial parameters. Moreover, the study has also

investigated the degree of adoption of financial measures and non-financial measures such as customer satisfaction, retention and quality measures. The objective of this analysis was to obtain an overall profile of the respondents, their cycle time, operational measures, employee training and retention in terms of their use. The results of the descriptive analysis show that financial measures are relatively more important than the non-financial measures in most of the respondent enterprises. Few companies

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focused on non-financial measures though it is showing an increasing trend. In this section correlation and regression analysis techniques were used to test hypothesized relationships between the two variables (the financial performance and the extent to which the nonfinancial measures are used in the sampled enterprises). Consistent with the latest developments in the performance measurement literature such as those conceived by founder of the Balanced Score card approach, Kaplan & Norton, (1996: 31) suggested every measure should be able to explain the cause-andeffect relationship that results in improving long-term sustainable financial performance. Furthermore, they indicated that there is a cause and effect relationship between non-financial measures and financial performance. Finally they concluded that companies who understand this link will implement the best long-term approach to improving their financial performance. Accordingly, the measurement system was expected to make the relationship among measures and the performance of the selected enterprises. It is expected that companies that continuously

improve their skilled human resources (employee training and development) should achieve better performance in their internal
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business process perspective which will, in turn, lead to better performance in their customer satisfaction parameters. Finally all such efforts should lead to improve overall performance of the enterprise. Keeping in mind that these expected relationships, the focus of this study is on business unit performance. Therefore correlation and regression of the sampled enterprises is provided in the following analysis to examine the relationships of financial performance and non-financial measures.

5.3 Evaluating the financial measures Literature review suggests that financial (quantitative) measures are feasible and realistic; hence their usage should be encouraged. Therefore identification of critical numbers is essential. It clarifies where one should focus on their efforts, what business processes need to be improved and identifies the weakness of the organization. When developing measures, it is important to include a right mix of quantitative and qualitative measures. Quantitative measures provide more objectivity than qualitative measures. They may help to justify critical management decisions on resource allocation or systems improvement. Companies

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should first identify any available quantitative data and consider how it can support the objectives and measures integrated. In this regard, the financial measures, which are commonly used by the respondent enterprises such as: sales growth, PAT growth, growth in profit margin are taken to investigate to what extent these financial ratios used to measure the selected enterprises financial performance. Sales growth, Profit after Tax, growth in profit margin are in order of importance, all are very popular measures used by the respondents enterprises, but compared to other parameters, return on asset seems to be a less popular financial measure. In the questionnaire respondents were requested to response on a 1-5 point Likert Scale. Mean value is more than 3.9 for all factors (except for ROA and other factors), showing high degree of importance to the respective factors (More than 80%) and SD is also low showing the degree of variance among data is low. Only for other factors and ROA (to an extent), high SDs are showing inconsistencies and also confirmed that common financial factors are used for financial performance measurement in Indian Industry. Overall it may be concluded that financial measures are used effectively in performance measurement.
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5.4 Evaluating the non-financial measures Recent literature has argued that financial performance

measurement alone is not enough for the new reality of organizations (e.g. accelerated changes in technology, needs for innovation and flexibility, shortened product life cycles etc.). In this regard consideration has been given to other important nonfinancial measures such as customers, employees and operational measures, all of which are integrated into the balanced approaches, or variants of it. With regard to non-financial performance measurements, the research findings exhibited a noticeably different pattern compared to the financial dimensions.

5.4.1 Customers satisfaction and retention measures Recent research argued that customers are far more demanding and informed today than in the past. People now have access to information much more easily and in search for companies, who will do more than just meeting their needs; customers do research in advance on the product quality, price and delivery time offered by various enterprises in the same line of businesses. They tend to chose companies who will delight them with value added products and services with extra features. Delighted customers lead to loyal
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customers. Nevertheless, this understanding is not reflected in most of the sampled enterprises. Empirical results exhibit that only 28% of the sampled enterprises agreed that, the overall customer satisfaction and retention measures are used to evaluate enterprises performance. This is far below the adequate level. From this result one can understand that most of the respondent enterprises lack of customer related information. This may cause a problem to the respondent enterprises in improving and redesigning their products. In addition, the low results in customer satisfaction measures may lead to a decline in market share and loyalty. In the questionnaire respondents requested to response on a 1-5 point Likert Scale. Mean value is above 4 in case of maintaining accurate data for customers. However it is the lowest (3.78) in case of customer retention which is critical for most of the sampled companies giving least importance as far as customer retention parameter is concerned. However the mean score is above 3.8 for all other customer related parameters like accurate data on returned order, customer satisfaction survey and market share, showing high degree of perceived importance to the respective factors (More than 80%) and SD is also low showing the
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degree of variance among data is low. Overall we can say that Customer measures are considered to be an important parameter and are effectively used in performance measurement by the sampled enterprises. 5.4.2 Internal process / operational measures Performance Literature argued that achieving good performance levels on process or operational measures lead to high quality products and services, which, in turn, lead to satisfied or delighted customers, which lead to repeat business and promote long-term success. Hence, the types of process measures that are taken to evaluate the existing operational/ process of the sampled enterprises are: customer perceived product quality control, manufacturing cycle time, and order to deliver time. The study recommends, if manufacturing enterprises fail to produce customer perceived product quality to deliver in the right time in both the short and long run, sales revenue may decline and the business may wither. Furthermore, time is critical process measure for any task because it equates to cost and satisfying customers needs. Customers need things quickly at a minimum payment. Focusing on cycle time allows enterprises to keep its cost down while satisfying even delighting customers.
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Nevertheless, empirical findings show that mean value is highest i.e 4.6 in case of customer's perceived service, quality and price parameter and the lowest , i.e 4.25 in case of process efficiency parameter, only 43.48 % of the respondents agree on operational measures. This might lead to loss of existing customers and decline of sales revenue or market share in the long run. The study recommends, if the enterprises fail to produce customer perceived product quality or service to deliver in the right time in both the short and long run, sales revenue may decline and the business may shrink. Furthermore, time is critical process measure for any task because it equates to cost and satisfying customers needs. Customers expect quick delivery at a reasonable payment. Focusing on cycle time allows enterprises to keep its cost down while satisfying even delighting customers. This may lead to loss of existing customers and decline of sales revenue or market share. 5.4.3 Assessing employee satisfaction and retention measures In the literature review, it was argued that the challenge of recruiting, training, and retaining quality employees are more important in business than ever before. It is believed that

enterprises today must plan for change, assure high quality training, and provide personal growth opportunities to employees.
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Manufacturing enterprises are expected to understand their company culture and employee needs more effectively.

Furthermore, the study recommends that delighted employees are much more productive. However, the results of employee related measures revealed that 42.31% and 38.46% respectively of the sampled enterprises agreed that job training and salary satisfaction measures are used as a performance measure of their enterprise. This improved rating, perhaps lead to increased quality of product and decrease in cycle time which in turn may downsize the cost of production. In addition the increased rating in employee satisfaction and retention measures may cause retaining the most valuable assets, their employees. As the result the total outcome of these overall results may lead to increasing financial performance.

This study has tried to assess the existing financial profile of the sampled enterprises using some selected financial ratios such as sales growth and return on asset. Results of the financial ratios show that most of the enterprises performance is below the international trends. In addition the study investigated the degree of adoption of financial measures and non-financial measures such
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as customer satisfaction and retention; quality and cycle time operational measures; and employee training and retention measures. The objective of this analysis was to obtain a profile of the respondents in terms of their use. The results of the descriptive analysis show that financial measures are relatively more important than the non-financial measures in the respondent enterprises. In this section correlation and regression analysis techniques were used to test hypothesized relationships between the two variables (the financial performance and the extent to which the nonfinancial measures are used in the sampled enterprises). Consistent with the latest developments in the performance measurement literature such as those founded by the innovator of the BSC (Kaplan & Norton, 1996: 31) suggested every measure should be able to analyze cause-and-effect relationship that culminates in improving long-term sustainable financial

performance. Furthermore, they indicated that there is a cause and effect relationship between non-financial measures and financial performance. Finally they concluded that companies who understand this link will implement the best long-term approach to improving their financial performance.
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Accordingly, the measurement system was expected to make the relationship among measures and the performance of the selected enterprises. It is expected that companies that continuously

improve their skilled work force (employee training and satisfaction) should achieve better performance in their internal business process perspective which will, in turn, lead to better performance in their customer perspective. All such efforts should lead to improve financial performance. Keeping in mind that these expected relationships, the focus of this study is on business unit performance. Therefore correlation and regression of the sampled enterprises is provided in the following tables to examine the degree of association between financial performance and nonfinancial measures. 6. Results of correlation analysis Kaplan & Norton (1996b) suggested the use of correlation analysis to test the expected relationships in the balanced scorecard performance measurement variables. Accordingly, correlation analysis was used to test how the non-financial performance measurement perspectives and (customer employee satisfaction, internal

process/operational,

training/satisfaction

measures) are correlated with the actual financial results (average

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sales growth, growth in profit after tax). Findings from Pearson pair-wise correlations matrix shows strong correlations between the measurement variables of the financial performance and the extent of the use of the non-financial measures in the sampled enterprises. This means that a higher score on the performance measurement is related to a better performance. All aspects are strongly correlated to the financial performance (Turn Over growth and PAT GROWTH). The correlation coefficient varies from the lowest (0.57) to the highest (0.75). The variables are positively correlated and are significant. The result implies financial performance increases with increase of the use of the nonfinancial measures.

The results of the relationship are consistent with the assumption. Results from statistical analysis supported the expectations. Therefore, from the results of the correlation analysis one can conclude that it pays for companies not only to measure their financial performance, but to do this in an equal balance among all measures.

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7. Regression Analysis The results of correlation analysis in the correlation section tested the statistical significance of the association and their directional relationships between the scores of the non financial measures and the financial performance. In addition to the correlation analysis the study further examined the effect of the independent variables on the dependent variables. Results of the regression analysis show the effect of customer, operational and employee related measures (independent variables) on sales growth and PAT growth (dependent variables) over a period of time. Regression equation Y = a+b1x1+b2x2+b3 x3 Where: Y = dependent a = intercept b1...b3 = coefficients x1...x 3 = independent Variables

Variables The variables in the model are: Dependent Variables:

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Y1 = T/O Growth (T/O G) Y2 = PAT growth (PAT G) Independent Variables: X1 = Customer Related Measures (CM) X2 = Internal process/ operational measures (OM) X3 = Employee related measures (EM) 7.1 Results and Discussion 7.1.1 Respondents perception to the use of performance measurement The organization in a single report and requires executives to limit the number of measures to a vital few and allows them to track whether improvement in one area is being achieved at the expense of another area. Furthermore, they argued that selecting the right measure for success is the vital issue in todays competitive environment. To assess the existing measurements used, respondents were asked to indicate the number of performance measures existing in their organisation. This might be a factor which weakens the link between the performance measurement system and

organizational goals by inhibiting a coordinated approach to the achievement of strategic objectives. The results indicated that
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they use many measurements in some of the departments for decision making and sometimes conflicting and is not so easy to reach the goals. In this section, the relationships between the financial performance and the balanced performance measurement variables are examined. The findings from the multiple regression model confirms that the results of the cross tabulations for the type and directions of the relationship of most of the independent variables with dependent variables. The regression results indicated that the overall performance measurement perspectives (independent variables) explained about 67% of the variation of T/O growth ( r2 = 671). The T/O growth variation shows the combined effect of measurement variables on the financial performance (PAT growth) is statistically significant (p<0.05). Therefore Customer Related Measures was found to be the determinants factors of T/O growth. The directional signs on the coefficients for these statistically significant explanatory factors are positive, which implies, increase in sales growth is the effect of increase in the overall performance measurement variables. The results were also consistent with the expectation that the non-

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financial measures have significant effect on financial performance (T/O growth).

Similarly, the regression results indicated that the overall measurements (independent variables) explained about 86% of the variation of PAT Growth (r2 = 0.656). The coefficient representing Employee related measures are found to be strong determinant factors of PAT growth (p<0.05). The directional signs on the coefficients for these statistically significant explanatory factors are positive. This shows their strong relationships and is also consistent with the assumptions. The result implies, in todays sophisticated technological and competitive business environment, competent people are the main determinant factors. It is not enough to have short-term financial results and happy customer in terms of quality, process efficiency and delivery time without the prerequisite of growth, innovation and learning perspective. Results are also consistent with theories in the performance literature (Kaplan & Norton 1996:31).

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Furthermore, the adoption of product quality and reduced cycle time measures, increase in customer satisfaction and loyalty, which in turn contributes towards attaining, increased market share. This result corresponds to the expectation that enterprises operating performance measurements link to improve financial performance.

8. References: Al Ehrbar. 1998. EVA: The real key to creating wealth, New York: John Wiley & Sons Allan S. Carrie, R.MacIntosh: UK Research in Manufacturing Systems Integration 332-336 Buxton, C. and Ward, R. (1998). From inspiration to performance: an assessment of what organizations are doing to inspire people through performance measurement. The ASQs 52nd Annual Quality Congress Proceedings, Philadelphia, PA, May, 11 18. Bititci, U.S., Carrie, A.S. and McDevitt, L. (1997).Integrated performance measurement systems: a development guide. International Journal of Operations and Production Management, 17, 522 534.

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Bititci, U.S., Carrie, A.S., McDevitt, L. and Turner, T. (1998a). Integrated performance measurement systems: a reference model. In Schonsleben, O. and Buchel, A. (eds), Organising the Extended Enterprise. London: Chapman & Hall, pp. 191203. Brown, M.1996. Keeping Score: Using the Right Metrics to Drive World Class Performance, Quality Resources. New York, NY: Productivity Press Barsky,N.P & Flick, Look on the performance management

resources are out there , Strategic Finance December, 26-29 Dilanthi Amaratunga, David Baldry performance measurement to (2002), "Moving from management",

performance

Facilities, Vol.20, No. 5/6 Flapper, S., Fortuin, L. and Stoop, P. Towards consistent performance measurement systems. International Journal of Operations & Production Management, Vol.16, No. 7. Fitzergerald L, et al. Performance Measurement in service business, The Chartered Institute of Management Accountants. Haspeslagh,P. and Noda, T. and Boulos, F. 2001. Managing for Value: Its Not Just About the Numbers. Harvard Business Review, July-August Issue, Reprint No. R0107D 64-73, Harvard Business School Publishing
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Hudson, M., Smart, A. and Bourne, M. (2001). Theory and practice in SME performance measurement systems. International Journal of Operations & Production Management, 21. John Isaac Mwita, August, 2002, The Role of Motivation in Performance Management: The case of performance-related-pay schemes in British local authorities Kaplan, R. S. 1998. EVA and the Balanced Scorecard. EVAngelistTM magazine, Vol 2, (4). New York: Stern Stewart & Company Kaplan, R. S. 2001. Integrating Shareholder Value and ActivityBased Costing with the Balanced Scorecard. Harvard Business Review, Article Reprint No. B0101C, 3-6, Harvard Business School Publishing. Kaplan, R. S., Norton, D. P. 1992. The Balanced Scorecard Measures that Drive Performance. Harvard Business Review, January-February Issue, Reprint No. 92105, 71-79, Harvard Business School Publishing. Khanna and Palepu, 2000. Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups, Volume 55 Issue 2 Page 867-891, April 2000 Littler, K., Aisthorpe, P., Hudson, R. and Keasey, K. (2000), A new approach to linking strategy formulation and strategy
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implementation: an example from the UK banking sector, International Journal of Information Management, Vol. 20, pp. 411-28. Lynch, L Richard, Cross F. Kelvin F 1991 How to Measure Corporate Performance: Measure Up. USA: Blackwell Publishers Inc. Lin Fitzgerald, Robert Johnston, Stan Brignall, Rhian Silvestro and Christopher Businesses, Voss The Performance Chartered Measurement Institute of in Service

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Accountants, ISBN 0 948036 78 8 Neely, A.D., Gregory, M.J., Platts, K.W. 1995. Performance measurement system design: a literature review and research agenda. International Journal of Operations & Production Management, Vol. 15 (4):80-116. Neely, A.D., Richards, A.H., Mills, J.F., Platts, K.W., Bourne, M.C.S. 1997, Designing performance measures: a structured approach, International Journal of Operations & Production Management, Vol. 17 (11): 1131-53 Niall Lothian, BA, CA Measuring Corporate Performance, The Chartered Institute of Management Accountants, ISBN 0 948036 35 4 Heriot-Watt University

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Neely Andy, John Mills, Ken Platts, Huw Richards, Mike Gregory, Mike Bourne, Mike Kennerley, 2000 Performance measurement system design: developing and testing a process-based approach, International Journal of Operations & Production Management Volume 20 (10) : 1119-1145 McNair, C.J., Lynch, R.L. and Cross, K.F. (1990), Do financial and non-financial performances measures have to agree?,

Management Accounting, pp. 28-36. Myers, R. Measure for Measure. CFO Magazine, November Issue, Boston, Massachusetts: CFO Publishing Corporation. OByrne, S. Executive Compensation. Handbook of Modern Finance, Chapter E9, edition Denis Logue. New York: Warren, Gorham & Lamont. Parker C (2000). Performance Measurement. Work Study, Vol-49, No-2 Rappaport, A. Creating Shareholder Value: The New Standard for Business Performance. New York NY: Free Press. Schneiderman, A. Why balanced scorecards fail. Journal of Strategic Performance Measurement, Special edition, 611 Skinner,W. The anachronistic factory, Harvard Business Review, 1: 61-70.
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Teemu Malmi., Seppo Ikheimo 2003 Value Based Management practicesDepartment of Accounting and Finance, Helsinki School of Economics, Management Accounting Research 14: 235254 Olve, N., Roy, J. & Wetter, M. (2001). Performance Drivers: A practical guide to using the balanced scorecard. New York : John Wiley & Sons. Sinclair D and Zairi M (2000). Performance Measurement: A critical Analysis of the literature with respect to quality management. International Journal of management reviews, Vol.2 Issue2 Page 145 Tomas Stenfenson, 2004, Performance Measurement at DHL Solutions, ISSN: 1402-1617 36. Waggoner, D.B., Neely, A.D. and Kennerley, M.P. The forces

that shape organisational performance measurement systems: an interdisciplinary review. International Journal of Production Economics, 60, 5360. Wekesa Thomas Advantages and Disadvantages of Value Based Management (VBM), assignment submitted in Certificate in Business CIB_01/02_2 ZH

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Zairi, M. (1996). Benchmark for Best Practice: Continuous learning through sustainable innovation. Great Britain: Reed Educational &Professional Pub. Websites

1.www.tcs.com 2.www.moserbaer.com 3.www.evanomics.com 4.http://en.wikipedia.org 5.http://www.investopedia.com 6.http://greenbusinesscentre.com 7.www.businessweek.com 8.www.money.rediff.com 9.www.valuenotes.com 10. 11. www.moneycontrol.com Prowess Database

References: 1.http://en.wikipedia.org 2.http://www.quickmba.com

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Squibs Claudia Kling Massachusetts Institute of Technology (MIT), USA

Currency wars
The entire globalist system is chaotic, by now, with sovereign bonds, currencies, stock markets and the fate of politicians all in the same boat. The hidden agenda of QE and QE2 was always to "cheapen the dollar" by causing inflation in China. The main issue is the U.S., Europe and China and their currencies, the dollar, euro and the yuan. The dynamic is simple: all three would like a cheaper currency, relative to the others,
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to help exports. China has the least justification for cheapening, at least their currency doesnt go up. The U.S. has the most advantage it has the leading reserve currency and a printing system so it can just print its way to devaluation. Europe wants to depreciate but is dependent on China to buy its sovereign bonds and dependent on the U.S. for dollar liquidity in shape of swap lines so it has no leverage over the other two. Germany has a different history of a strong export sector even with a strong currency because of its efficiency, technology and labor-management. The USA devalues against yuan and the euro and it gets all of it. China revalues against the dollar, but keeps an eye to the euro and gets half of what it wants. Euro remains a strong currency against the dollar and pegged against yuan. So it gets nothing. This has been the world fight since end of June when the Chinese finally let the yuan appreciate against the dollar in a serious way... Theres only one problem: Germany may be able to survive with a strong currency but the rest of Europe cannot and parts of Europe, especially Greece, are going to insolvency. Up to a point, the Greeks have to accept the fiscal austerity forced on them by the Germans. After a while, either the Greeks or the Germans , and
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the crisis goes critical and threatens the stability of the global financial system. At that point, either the euro must weaken significantly or Germany must rescue Greece. German reluctance on the bailout has recently led to a weaker euro as a default or break-up loomed. However, this euro weakening broke the global arrangement with China, which was now faced precisely with its worst state of affairs, i.e a weaker euro, and, a weaker dollar, at the same time. China is prepared to accept one or the other but not both of it.... The "currency wars" where all advantage is temporary and it is always just a matter of time before "the strong currency" tries to get in on globalist game that everyone has a sinister role. Since not everyone can devalue at once, every country with a cheaper currency must produce a loser country who gets stuck with the strong currency. At first it looked like Europe was the biggest loser but now China is beginning to assume that role. If Europe expect China to purchase European sovereign bonds to help alleviate the crisis, they must offer more favorable trading terms to China, ps - all without touching the argument of 'military wars' that itself has "a specifically play" in our actual global monetary decadent game indirectly influencing the ups and downs of

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certain countries who gets wedged with the strong currency. At first it looked like Europe was the biggest loser but now China is beginning to assume that role. If Europe expect China to purchase European sovereign bonds to help alleviate the crisis, they must offer more favorable trading terms to China, ps - all without touching the argument of 'military wars' that itself has "a specifically play" in our actual global monetary decadent game indirectly influencing the ups and downs of certain countries.

Notes It is clear now that Goldman Sachs owns the Bank of Libya. Accordingly, when BushFRAUD and Obama/ Pelosi bailed out Goldman Sachs, J.P. Morgan and the rest of the criminal banking cabal in October of 2008 they also bailed out the Bank of Libya where socalled alleged Al Qaeda terrorists had bank accounts.Yes, this is the most unbelievable massive ponzi scheme of all time We now see why are at at war in Libya and why it is so important that the New World Order (NWO) elite kill
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Muammar Gaddaffi holds evidence, which absolutely EXPLODES the 9/11 myth. Osama bin Laden ,Tim Osman, has been dead since December of 2001.We can now divulge that proceeds of the J.P. Morgan illegal derivative trading their counterfeit currency carousel utilized the London office of the Bernard Madoff ponzi scheme to funnel BILLIONS of dollars through the Federal Reserve Bank of New York and eventually into the coffers of the extortion-friendly, corporate fascistU.S. media, with the cable networks. NWO Obama made a claim that he saved the financial system. No he didnt. He saved the financiers, and he doesnt seem to understand there is a difference between financiers who were bailed out and the financial system. Try to get a loan today. Try to get a mortgage today. You cant. If youre a small business you cant borrow money today. Its impossible. No one will give you money. There is no cr...No one will give you money. There is no credit in the system. Thats why were on our knees.

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The financiers at the Federal Reserve who are holding America hostage and destroying the American economy can be classified as financial terrorists and war criminals. They are engaging in economic warfare against the American people. Other nations that are ruled by the IMF and private global central banks are also being financially conquered. USA "DEMOCRATIC"IMPERIALISM:"The Democratic Revolution"[arabspring,occupy, global democracia realetc..] & "Creative destruction" is our middle name, both within our own society and abroad. We tear down the old order every day, from business to science, literature, art, architecture, and cinema to politics and the law. Our enemies have always hated this whirlwind of energy and creativity, which menaces their traditions and shames them for their inability to keep pace. Seeing America undo traditional societies, they fear us, for they do not wish to be undone. They cannot feel secure so long as are there for our very existence our existence, our politics threatens their legitimacy. They
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must attack us in order to survive, just as we must destroy then to advance our historic mission.. [NOW Ledeen]

Monetary policy has become politicized. The Fed pretends to be "independent," but in reality Bernanke and Co. have become part of the Obama Cabinet&USA exists only as the ALTEREGO of the IMF and WORLD BANK under NWO United Nations!The term 'dollar' was thereafter valued in direct and inseparable proportion to Special Drawing Rights, NOT TO 'DOLLARS,' go...ld and silverCoin. The 'dollar' became mere 'book entries in special accounts of the International Monetary Fund!!!!!!!! The IMF issues an international letter of credit called a 'Special Drawing Rights certificate' to the Federal Reserve banks 'in such form and in such determination as HE may determine'. The SDR is then deposited in the Federal Reserve banks, which in turn credits the account of the Exchange Stabilization Fund with Federal Reserve Notes in an amount equal to the value of the SDR certificate. SDR's became the 'collateral
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security for Federal Reserve Notes'!!Theres is no longer any obligation to stabilize the exchange value of the 'dollar'.Who has control or authority over the de facto monetary system? It has ALL been transferred to the IMF and WORLD BANK via the 'Governor' of the same Federal Reserves..The lack of any monetary rule to constrain the Fed and the lack of any convertibility principle, as existed under the classical gold standard, means the Fed has a monopoly on base money (currency held by the public plus reserves), the supply of which is determined by a 'SMALL GROUP'of Fed officials who presume to be able to forecast the world future.
Unseen mechanism of society constitute an invisible government that is the true ruling power. You are governed, your mind is molded, your tastes formed, your ideas suggested, largely by people you have never met or heard of before. This is the logical result of the way in which society functions today. Vast numbers of human beings must cooperate in this controlled manner if they are to live together in peace and prosperity.. .. The real issue or concern is whether or not you are aware of the fact that your freedom has been substituted by mind enslavement.

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Claudia Kling, MIT, USA ENDING CENTRAL BANKS,FEDERAL RESERVES, AND GOVERNMENT MONOPOLY OVER THE PEOPLE!!FIGHT FOR MONETARY REGIONAL FREEDOM!! Each region as an essential element of true liberty and of the pursuit of happiness in a free society, all people enjoy the inherent and unalienable right to lawfully acquire, hold and use as a medium of exchange whatever form or forms of money t...hey may prefer, including especially gold and silver coin. All free and sovereign states bear the moral, political and legal obligation not only to refrain from debasing their own currencies (each region will be autonomous to print their own currency!) and from erecting barriers to the unfettered circulation of monies issued under the authority of their sovereign trading partners, but also to affirmatively defend and protect against fraud, counterfeiting, uttering, passing off, embezzlement, theft or neglect by requiring full transparency and accountability of all state chartered financial institutions. No tax liability nor any regulatory scheme promoting one form of money over another should apply to: the holding of any form of money, in a financial institution or otherwise; the exchange of one form of money for any other; or the actual or imputed increase in the purchasing power of one form of money as compared to another.Except in the case of government assessed taxes, fees, duties, imposts, excises, dues, fines or penalties, the authority of government should
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never be used to compel payment of any obligation, contract or private debt in any specific form of money inconsistent with the parties written, verbal or implied agreement, or to frustrate the intent contractual obligations discount or surcharge particular medium of employed. of contracting parties or impair by invalidating the application of a agreed to be dependent upon the exchange or method of payment

The extent and composition of a persons monetary holdings, including those on deposit with any financial institution, should not be subject to disclosure, search or seizure except upon adherence to due process safeguards such as requiring an adequate showing of probable cause to support the issuance by a court of competent jurisdiction of a lawful warrant or writ executed by legally authorized law enforcement officers. We hereby urge business leaders, educators, legislators, government officials as well as judicial and law enforcement officers to use their best combined efforts to reinstate and promote the legal and commercial framework necessary to establishing and maintaining wellfunctioning, sound monetary systems based on choice in currency, a free choice...of who will continue to fight for monetary freedom in perpetuity as one of our most important missions!!!!http://online.wsj.com/article/SB10001424053111 904583204576542851688284590.html Example well done in Brazil!!! Instead of Brazilian reais, though, the 11-year-old prefers payment in capivarisa local currency emblazoned with the
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face of a giant rodent. Bills in hand, Carlos then heads to a local grocer and buys ingredients, at a special discount, for another batch of grandma's goods. The capivari circulates only in this dusty, agricultural town 60 miles north of Rio de Janeiro. The money is an effort by the town, one of the poorest in southeastern Brazil, to encourage its 23,000 residents to spend locally. Cash, Credit, or Capivaris? The capivari is one of 63 local moneys now circulating in needy towns and neighborhoods throughout Brazil. View Slideshow Diego Campos Locals exchange capivari bills, emblazoned with the face of a giant rodent. Ten months after introduction of the capivarinamed after the capybara, a pig-sized rodent common in a local riverthe currency is lifting fortunes of local retailers and gnawing holes in the pockets of consumers. Capivaris pay for everything from haircuts to restaurant tabs to tithing at churches. The mayor even has plans to open a "Capivari Megastore," where local artisans and growers can showcase wares. The capivari is one of 63 local moneysincluding bills named after the sun, cactus and the Brazil nutnow circulating in needy neighborhoods throughout Latin America's biggest economy. The idea is gaining currency as towns seek a share of current economicgrowth. This month, a new local currency
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hit the streets in Cidade de Deus, the Rio slum that was the subject of a blockbuster film and a stop on President Barack Obama's South American tour this year. While equal in value to the real, local currencies gain traction because local merchants offer discounts when using them. No one is forced to quit the real, but shopkeepers say greater volumes make the markdown worthwhile. "It brings customers through the door," said Roseanne Augusto, manager of a Silva Jardim hardware store, where a builder one recent afternoon set aside 2,700 reais in supplies, about $1,520 worth. He then left the store, went to trade reais, and returned to pay with capivaris, saving 5%. Capivaris are managed by a new, community-run Capivari Bank. Inside its one office, a brightly painted space the size of a small fast-food joint, are the bank's employees, three women in their 20s. For each of the 50,000 capivaris first circulated, Capivari Bank holds an equal number of reais on deposit at a traditional bank. Tatiana da Costa Pereira, the bank manager, says she sees as many as 60 clients a day. A local police car patrols outside and a state policeman comes in regularly.

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PROJECT TO STOP GLOBALISM!! THE R WORD FOR REGIONALISM !PART ONE--Claudia Kling, MIT, USA THE REGIONALIST PROJECT TO STOP GLOBALISM NOW!!!!!!!!!POLITICAL PROJECT FOR RE-DESIGN WORLD REGIONS AND ABOLITION OF COUNTRIES!!!COUNTRY IS AN OLD CONCEPT THAT MUST BE CHALLENGED BY THE REGIONALISM AUTONOMOUS!!THE R WORD WORD THE WORLD DIVIDED IN REGIONS WITHOUT COUNTRIES!!!ps;concept of country is an old principle! MON PROJECT of REGIONALIZATION& AUTONOMY OF WORLD REGIONS!!! DE/CENTRALIZATION ! NO/GLOBAL! Regionalization Sovereignty is the quality of having supreme, independent authority over a geographic area, such as a territory. It can be found in a power to rule and make law that rests on a political fact for which no purely legal explanation can be provided. In theoretical terms, the idea of "sovereignty", historically, from Socrates to Thomas Hobbes, has always necessitated a moral imperative on the entity exercising it. For centuries past, the idea that a state could be sovereign was always connected to its ability to guarantee the best interests of its own citizens. Thus, if a state could not act in the best interests of its own citizens, it could not be thought of as a sovereign state.In politics, regionalism is a political ideology that focuses on the interests of a particular region or group of regions, whether traditional or formal (administrative divisions, country subdivisions, political
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divisions, subnational units). Regionalism centers on increasing the region's influence and political power, either through movements for limited form of autonomy (devolution, states' rights, decentralization) or through stronger measures for a greater degree of autonomy (sovereignty, separatism, independence). Regionalists often favor loose federations or confederations over a unitary state with a strong central government. Regionalism may be contrasted with nationalism. The concept of sovereignty has been discussed, debated and questioned throughout history, from the time of the Romans through to the present day. It has changed in its definition, concept, and application throughout, especially during the Age of Enlightenment. The current notion of state sovereignty is often traced back to the Peace of Westphalia (1648), which, in relation to states, codified the basic principles: territorial integrity border inviolability supremacy of the state (rather than the Church) a sovereign is the supreme lawmaking authority within its jurisdiction. An autonomous region is a territorial entity that, within the constitutional and is endowed with legislative autonomy and executive powers, as well as the ability to be administered by their own representatives, a small government....

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The structure of the Autonomous Communities recognizes and guarantees the right to autonomy of the regions and nationalities that make up the regions!!in contrast with federal powers and global centralization system In geography, it has two ways: the process of delineating the Earth, its small areas or other units into regions and a state of such a delineation. In globalization discourse, it represents a world that becomes less interconnected, with a stronger regional focus. In politics, it is the process of dividing a political entity or country into smaller jurisdictions (administrative divisions or subnational units) and transferring power from the central government to the regions; the opposite of unitarization Regionalism (politics). In sport, it is when a team has multiple "home" venues in different cities. In linguistics, it is when a prestige language adopts features of a regional language, such as how, in medieval times, Church Latin developed regional pronunciation differences in the different countries it was used, including Italy, France, Spain, Portugal, England, Germany, Denmark, Hungary, and Slavic countries!! Produce bridging social capital social trust, norms of cooperation, shared values, social networks across the cleavages of clan, tribe, ethnicity, religion, race,class and ideology intra-group reciprocal cooperation
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 Create & reproduce conditions for promoting institutional development & goodgovernment Promote political stability, unity, convergence and integration Foster social connectiveness, public spiritedness, commitment to public causes and civic engagement Pursue open system of recruitment inclusiveness Autonomous from government control Counteract state & government officials power Promote 'democracy/autonomy' civic culture, pluralism, diversity, respect, tolerance, peacefulconflict resolution and post-conflict peace-building Commitment to liberty and individual freedomIt didnt involve depriving cities of their civil rights; on the contrary, as it happens with regard to this issue as well as to many others, we have everything to gain if we abstain from imposing a fictitious unity[one world power system] through the use of sheer force!!!!

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Bibliographic Citation References should relate only to material cited within the manuscript and be listed in alphabetical order, including authors name, complete title of the cited work, title of the source, volume, issue, year of publication, and, where appropriate, pages cited. Please do not include any abbreviations. The following conventions should be used. Single Author Chase, J.A. 1979. Advertising: the hits and myths. New York: Doubleday. Multiple Authors Van Schalkwyk, H., Viviers, D.A. & Van Aswegen, E.S. 1986. Language communication - English: language skills and practical communication for students, public servants, professional people and businessmen. 2nd ed. Johannesburg: McGraw-Hill. No Author Shorter Oxford dictionary. 2nd ed. 1993. Oxford: OUP. Edited Book: Du Plessis, I.P. (ed.). 1981. Bemarking en reklame. 2de uitg. Kaapstad: Human & Rossouw Gardner, B.P. & Smith, G. (eds). 1984. Child psychology: an introductory guide for parents and teachers. Harmondsworth: Penguin. Journal Articles Kirn, W. 2000. Globalization: the new radicals. Time, 155(16):26-30, April 24.
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Internet Citation African National Congress. 1994. The reconstruction and development programme. http://www/polity.org.za/govdocs/rdp/rdp/html [last accessed on 21 June 2010]. Authors with more than one publication in a single year Pringle, G.S. 1982a. The allegorical novels of J.M. Coetzee. Unpublised PhD thesis, Rhodes University, Grahamstown. Pringle, G.S. 1982b. Aspects of style in the novels of J.M. Coetzee. College English, 35(6):34-41, September. Chapter in an edited volume Puttnam, R.A. 1981. The place of values in a world of facts. In Duff, A. & Smithson, W.O. (eds). The nature of the physical universe. Englewood Cliffs, N.J.: Prentice-Hall: 124-139. Corporate Author Sanlam. 1998. Annual report: 1998. Bellville: Sanlam. Recorded interviews Smuts, D. 1987. Interview with the author on 4 August 1987, Cape Town. [Cassette recording in possession of author]. Formatting guide to Authors for IJBD Published Conference Proceedings Truter, M. 1994. The role of the court interpreter in the new South Africa. Proceedings of the 1994 Conference of the South
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African Institute of Translators, Bloemfontein, 18-23 June 1994. Johannesburg: The Institute: 46-59. Government Publications South Africa. Department of Housing. 2003. Strategic plan: 1 April 2003 to 31 March 2006. Pretoria: Dept of Housing. [Textual reference: South Africa. Department of Housing, 2003:13] Authors Profile In order to facilitate the compilation of JMP volumes it would be appreciated if author(s) could include a brief curriculum vitae/profile as part of submission together with a recent photograph. Biographies should be no more than 250 words. Photographs should have the following specs: Size: minimum 1000px wide by 800px height Resolution: minimum 72dpi File type: JPG or TIFF Please also include photo credits if possible. For any queries, address your communication(s) to: EDITOR, International Journal of Business Derivatives Email: editor@ijbd.org , manideepap@yahoo.com Web: www.ijbd.org, http://www.ubiqusgroup.com/ijbd

International Journal of Business Derivatives (IJBD)

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Call for Papers for No. 1, Vol II, 2012 ABOUT IJBD is being launched as a global initiative that aims to present, share, review all Management and Social science related concepts, ideas, experiences and views. Its platform will provide an avenue for Management & Social science researchers, thinkers & philosophers to publish their original research work in form of articles, cases, monographs, concept papers, working papers, white papers, book reviews and other related forms. Our long term aim is to provide an open access sharing platform for the management and social science academicians, practitioners, students and researchers to enable them to create and review management knowledge. Headed by leading international academicians and practitioners of management, JMP strives to be a leading resource in the field of social science, focusing on management related knowledge.

DESCRIPTION The goal of IJBD is to bring fresh perspectives to the field of management & Social Sciences thinking and also applications. The scope, hence, is not restricted to evidence-based research and the authors are welcomed to submit qualitative, quantitative, conceptual, empirical, technological, literary and any other types of papers in tune with the theme of IJBD. The official language of IJBD will be English.
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CALL FOR PAPERS IJBD accepts submissions for publication all year around against specific advertised themes. However in order to be included in the Vol.1, No.1, Year 2011, the authors can send the full paper or a proposal as per the important dates below. Articles/Papers are encouraged to draw upon diverse theoretical perspectives and methodologies. Studies may be conceptual or empirical; and they may involve combinations of methodological approaches including literature reviews, comparative studies, observational and ethnographic studies, naturalistic, laboratory, or field experiments, etc. EVALUATION A panel of expert reviewers will evaluate submissions. IJBD will follow a double blind review process to ensure the highest quality output. In the process, the authors will also be peerguided to make their entries up to the required level, if required. Original knowledge creation is especially encouraged. IMPORTANT DATES Invitations to write articles: Open Manuscripts due for review: Open Articles sent for review: Open Review completion: Open CONTACT
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Editor-in-chief, International Journal of Business Derivatives Email: editor@ijbd.org manideepap@yahoo.com mgmtperspectives@gmail.com Journal URL www.ijbd.org http://www.ubiqusgroup.com/ijbd

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