impact of training and development programmes on …

IJRCMEAS ISSN 2454-6593

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IMPACT OF TRAINING AND DEVELOPMENT PROGRAMMES ON BANK EMPLOYEES BY

THEIR EDUCATIONAL QUALIFICATIONS -A STUDY

P.K.Kulkarni

Assistant Professor , Commerce Department, Government First Grade College, Shahapur

Prof. H.Y.Kamble,

Commerce Department, Rani Channamma University, Belagavi

Abstract

Human factor has moved into the center of business in the recent days. Never before has the

contribution of human resource to the success of business been subjected to so much of debate and discussion.

This situation has developed as a result of some fundamental changes that have taken place, the most important

of which is the pervasive and intensive competition that banks are facing today. The research paper focuses on

the impact of training and development programmes on bank employees by their educational qualifications. The

study reveals that there is no relationship between the qualification and the training programmes. It highlights

the importance of training programmes and their need in the chaning scenario.

Introduction:

Human factor has moved into the center of business in the recent days. Never before has the

contribution of human resource to the success of business been subjected to so much of debate and discussion.

This situation has developed as a result of some fundamental changes that have taken place, the most important

of which is the pervasive and intensive competition that banks are facing today. Human being is an intelligent,

creative, artistic and a reactive resource. He/she has got a wonderful potential to do incredible things. In the

present competitive world, training, developing and management of human resources have been a matter of

crucial determination of success for the banking industry. Dynamic employees are essential for any organization

that would like to be dynamic and growth oriented (Rao 1997).1 Therefore, better management of human

resource has been more earnestly felt as a vital, in recent decade as before. Also socio economic environment

has been changing world over, and a favourable attitude is being built up towards globalization of the economy.

Presently the competition is sky high in banking industry. Only tough competitors can survive under

these rapid changes. Every bank has a dream to face this situation and emerge as victorious, but it is not as easy

as one could imagine. But a collective struggle, a desire to work altogether for transformation is essential. Bit by

bit approach never helps in this cause, this, too, is an occasion to think, plan and set strategies to reach the goal.

Banks can achieve their goals through an appropriate policy and practice regarding training and development of

their human resources. Every manager especially HRD executive has an immediate task to instruct, guide and

develop the work force, to bring changes in them by resorting to a viable tool of employee or staff training and

development therefore is deep rooted in every human activity and it is as old as human society itself. Whenever

man thought to create, doing, and mastering the technique of production or manufacturing, looked more towards

training and development. Success of any bank, organization and activities largely depends upon its trained and

developed human resource.

1 Rao. T.V., Verma, K.K., Khandelwal, A.K., E. Abraham, S.J. (1997): Alternative Approaches and

Strategies of Human Resource Development. Rawat Publications, Jaipur. ppvii.


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Transformation in the Indian banking industry, ever increasing competition, fast moving and complex

world of latest technology have compelled banks to think of and to adapt themselves to the changing banking

environment. There is a need to develop competencies i.e. skill, knowledge and attitude among the bank staff to

make them more suitable to the changing conditions, through proper training and development programmes.

Trained and developed people or knowledge workers have become basic or fundamental job of any bank.

Competent people can face any threats, risks, and changes in the banking industry and lead the bank. People

play a remarkable role, to achieve bank goals. Since every human being has potential to do remarkable things,

and to enable him to understand, develop and utilize his/her potential, bank should provide them learning and

developing climate as well as opportunities. Hence, training and development programmes have occupied a

major role in the human resource development. Human resource development is possible only through training

and development and also creating learning climate or environment as well as opportunities.

HRD- A New Revolution of Employees Development

HRD relates to develop people to grow with organizational commitment. Michael (1997)2 states in a

logical sense that HRD matches organizational need for human resource and the individual desire for a career

development. It enables employees to achieve best of his potential, to attain a total all-round development. It

also tries to ensure decorum of employment, and opportunity for teamwork. Nair (1990)3 appropriately felt that

human being is an important. Part of organizational resource, it helps to achieve higher level of production and

profit to the organization. In view of the greater convenience and contribution, which people can render to the

organization, awareness to the development of human resource at work is vital. Rao 4(1996) reflects that people

are most valuable and outstanding resource of every organization. The essential function which industry is

compelled to do is to adopt to new strategies to praise and recognize and appreciate human being especially the

employees at bottom level of hierarchy, this would boost up their morale to work enthusiastically, to achieve the

organization’s vision and mission. Krishnamurthy 5(1999) while acknowledging the above view states that a few

business organizations were set up in the eighties of the last century both in India and in the U.S.A. were

spectacularly flourishing, due to the reason like long term one man rule, and also due to the absence of attention

to human element and employees attitude by themselves to accept orders and tolerating abusive and unfair

treatment of their employers. But after eighties, the employers’ mind-set has changed towards their workers.

Because nowadays workers are better educated, technically trained have mechanical, and operational skills and

conscious about their rights and privileges. He/she is a knowledge worker, and an attritional asset.

Teamwork, conflict management, commitment of all workers or staff towards the success of

organization has become inevitable now a day. Because an organization can succeed only with a vital remedy

for them. Rao6 (1997) has endorsed this view and states that those organizations, which have skilled, happy,

devoted and self-motivated people, are likely to do better than an organization that scores low on these. Workers

attainment of competency, skills and capability, does not happen on their own, without all the way through

initiation of their respective organization.

2 Michael, VP (1997). Human Resource Management and. Human Relation, Himalaya, Publishing House,

Mumbai, Human pp 153-156 3 Nair, MRD.R.and Rao, T V(Ed) (1990); Excellence Through Human Resource Development, Tata Mc

Graw Hill Publishing Company Ltd New Delhi pp iii 4 Rao, T.V. (1996): Some Thoughts on HRD in Education, IJTD, XVI (3) 5 Krishnamurthy, M (1999): On Collective Decision Making, Deccan Herald, Hubli-Dharwar pp 22. 6 Rao, T.V. Verma, K.K, Khandelwal, A.K.E. Abraham, S.J.T (1997): Alternative Approaches and Strategies

of Human Resource Development, Rawat Publications, Jaipur, pp Vii


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Organizations vision and mission can be achieved possibly by the people who need to change

themselves, to feel optimistic, arrange themselves mentally, work hard and do it by innovative skills and

techniques. This can be done through training and development programmes. Therefore, it is an important sub

system of HRD and vital instrument of employee development. Now a days most of the people who enter the

work force of an organization are educated, qualified, having better skills. In addition to this, sophisticated

machinery and equipment are available at his work place, and various laws better protect his interests. All these

favourable reasons necessitate organization to place employee training and development on high agenda of its

expansion plan. Latif 7(1997) views that men in industry are acknowledged to be the most complex material to

be handled, more ticklish and more subtle than the most highly complex machine. This has converted labourers

or workers into human resource and improvement of its quality is essential in the changing business

environment. The issues of development of human potential, reduction of cost, improvement of productivity and

organizational development has occupied premier place in the corporate world. HRD is most widely spoken and

discussed term, as the traditional personnel management has found to be little inadequate to meet the new

challenges.

Training and Development as a vital sub system of HRD

Training and development is deep rooted in every human activity, and it is as old as human society

itself. Whenever human being has thought to create, doing, and mastering the technique, he/she has looked more

towards training and development. They have been associated with learning and mastering technique. Success

of any organization, institution, firm and their activities entirely depend on training and development. All jobs,

professions, roles, tasks require some type of training and development for their efficient and effective

performance. The need for systematic training and development has increased by rapid changes in the jobs.

Training and development of a human being is a process, which is very much associated with thinking,

feeling and willing unless these three aspects do go together it is really difficult to relish the true taste of them.

Training and development words differ in their meaning but still they can be used synonymously. Because

training results in development of human beings. The dictionary meaning of the word training implies:

instruction and discipline in a particular art, profession or in occupation. It means training relates to make a

trainee closely controlled in pursuit doing his work, updating knowledge to avoid obsolescence, enhancing

professional creativity. Training in the Oxford American disk dictionary, implies to teach (a man, animal,

oneself etc) a specified skill and mastering it through practice. Thus training results in learning than teaching.

Subba Rao 8(1996) considers this as a process to teaching. It helps an individual to learn and apply skill,

knowledge, improve ability and attitude for the performance of job. Success of training depends upon active

listening and learning skill and knowledge, put forward by a careful application in their work. Consequently,

training is at all times a means to an end but not an end in itself.

Success of an organization never comes without infrastructure and the good quality of human resource

at work. Both are very essential when someone feels that people are essential at work, but without giving them

the necessary equipment, raw materials, tools and proper guidance, and if any one of these is missing, it can

7 Latif, T.A.A. (1997): Training for Management, Sterling Publishers Private Limited, Safder jung Enclave,

New Delhi pp 20-30 8 Subba Rao, P and Rao, V.S.P. (1996): Personnel /Human Resource Management, Konark Publishers Private

Limited, Main Vikas Marg, Delhi. PP 14-20.and pp 256-335


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cause obstacle and contribute to organization failure. Jangam9 (1983) rightly feels, training is training of hand,

head and heart, training imparts skills to use hand, to work competently , import knowledge so that head can

think, and build positive attitude so that heart feels and with this individual capacity to produce more surely goes

up.

Thus, training and development is an organized activity and includes several steps. Conduct of such

programmes requires passing through different stages like, it begins from need identification, preparation of

calendar, budget estimation, deputation of trainees, evaluation and follow-up. Training and development is an

organized procedure for increasing skill and knowledge of people for a definite purpose. Employees in most

organization consist of many employees who differ in age, qualification, experience, designation, attitude and

interest. Therefore, training is required to all categories of employees.

Training serves many advantages both to the organization and to the employees. To make a mention

few of those premier benefits namely, it helps to achieve skill development of employee, it enables him to

perform his job satisfactorily, it helps to sustain production of quality goods with durability and also helps in the

better handling of tools and equipments promote safety and minimize accidents. It also influences to bring

change in the interest, attitude, motivation and morale of employee.

Training calendar of many organizations includes wide range of programmes suiting to the requirement

of various categories of employees in the organization. Programmes are organized for senior executives, middle

level executives, managers, supervisors and also to the workmen. Training topics relate to skill and knowledge

development, topics of management practices, marketing, technical information, technology and quality and

general topics, as well. All organizations look forward to see that their employees would develop and improve

their personal and technical qualification. Organizations help them by sponsoring them to premier institutions to

undergo training. This would help them to improve their academic and technical qualification, and also their

skill and knowledge. This facility is largely offered to the supervisory and managerial personnel than to the

workman.

Review of Literature

Mohanty Madhuchhabda,10 has taken into account NALCO, IDBI and BHEL to study their training

activities and the type of training information system they are using, She stressed the need for computerized

training information system which will help organizations to classify, reclassify and cross classify the training

relating information which enables the HRD department to be more efficient and effective and to provide a

positive service to the organization.

Rajesh Kumar R.L.11 in his paper highlighted that full fledged HR policies are essential to improve the

performance of Co-operative Banks in India. He strongly suggested the need of human resource training and

9 Jangam, R.T. (1983) : Introduction to the Study of Public Administration, Akalwadi Book Depot and

Publishers, Vijay Road, Dharwad pp 115-119 10 Ms. Mohanty Madhuchhanda, T raining Information system in perspective, IJTD Vol

XXVII No 3 July Sept 2007 pp 75-86 11 Rajesh Kumar R.L. HR Policies and training Needs in Co-operative Banks, Bank Quest,

the Journal of Indian Institute of Banking and Finance Vol 78, No 3 July – September 2007 The Arcade World Trade Centre II, 2nd Floor, East Wire Coffee Parade Mumbai 400005 libgen @ boms vsnlnet in www. Iibf org in pp – 59-66.


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development which in turn will result in Human Resource Development. He also felt the need of full-fledged

staff training centers well equipped with modern training aids in every District Co-operative Bank.

B.M. Vinod12 in his article analyzed Co-operative Banks in India. He observed that training and

development programmes are not sufficient to face the challenges in Indian Banking. In order to face these

challenges HR functions in the Co-operative Banks should be vitalized and strengthened for which training is

essential. There is also a need to give general and specialized training to the bank staff to patch up the present

tardiness in the co-operative banking sector as a whole.

Thiagarajan T.S.13 in his paper focused on the training needs for the banking personnel in the changing

scenario. Periodic training for staff is essential for the self development of the employee and for better services

to the customers. Post training review will assess whether there is improvement in terms of quality, quantity and

speed in the particular area where the staff has been trained. Training needs have to be assessed periodically

and programmes to be designed accordingly, which will ultimately benefit employees, bank and customer at

large.

Prasad. A and Reddy Ch Panduranga14 in their article have opined that HR practices and training needs

of the banking personnel would assume greater importance in the changing world. Training and retraining,

development of employees of the bank and promoting a culture of continuous learning would be a major

challenge for the banks in India. An equally important issue relevant to HRM is to create a conducive working

environment in which the bankers can take commercial decisions judiciously and at the same time, without fear.

Vinayagamoorthy A15 in his paper has made a careful study of development in Indian banking. Banks

have to deal with the sophisticated clientele with the help of latest technology. It is high time to train and retrain

the banking personnel on the acquisition, installation and use of the information technology. So that the benefits

of information technology will reach the customers.

Prakash B, Ali Mohmed and Gayathri C16 have conducted a study by selecting 160 respondents from

operational staff [conductors and drivers] at gross root level in Warangal division of APSRTC. The objective of

the study was to know the effectiveness of training programmes organized for the employees of APSRTC. The

study revealed that the training programmes organized by APSRTC are proved to be effective and knowledge

gaining to the trainees. Majority of the trainees have expressed that the training programmes are worth full and

very useful for updating the skills to meet the challenges of the changing environment in the present competitive

transportation industry.

12 B.M.Vinod, HRD Policies and Training needs in Co-operative Banks, Bank Quest, the

Journal of Indian Institute of Banking and Finance Vol 78, No 3 July – September 2007 The Arcade World Trade Controls II, 2nd Floor, East Wire Coffee Parade Mumbai 400005 libgen @ boms vsnlnet in www. Iibf org in pp 67-72

13 Thaiagarajan. T.S., Training needs of the banking personnel, Banking Finance, Kolkata, 4 April 2008, pp13-15.

14 Prasad A and Reddy Ch Panduranga Challenges in India’s Banking sector Southern Economist May 1 2008 Volume 47, No 9, I Main, Jamai Masjid Complex I Floor 10&11 Palace Guttahalli Bangalore- 3 pp 53- 54

15 Vinayasamoorthy A, Globalisation and recent trends in banking, Banking Finance February 2008, Vol XXI No 2 25 Baranashi Ghosh street Kolkata – 700, 007 pp 9-14

16 Prakash. B., Ali Mohamed and Gayathri .S, ‘Training in APSRTC – An Empirical Study,’ The Journal of Indian Management and Strategy, Volume 13, No 1, January – March 2008, Strategic Consulting Group OCF PKT – 9 Sector-B, Vasant Kunj, New Delhi – 110070 pp 11-14.


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Objective of the study:

1. To assess the impact of training and development programmes on bank staff with and without

completed degree or course after joining bank

2. To make suggestions based on the findings

Hypothesis: There is no significant difference between bank employees with and without completed degree or

course after joining bank with respect to training and development programmes (and its components).

Research methodology

The research work confines itself to an in-depth analysis of various aspects of training and

development policies and practices in State Bank of India. The study is based on primary data in particular and

secondary data in general. Primary data are collected through questionnaire, supported by personal interview

and discussion with the bank staff. Secondary data are collected by referring to books, journals, magazines,

research papers, articles and websites. The study is an empirical survey covering 10 districts and 480 employees

of State Bank of India. The study is based on both the primary data and the secondary data.

Primary Sources of Data

Primary source of data has been collected from 480 employees of the bank belonging to two categories

officer level and clerical level. The responses of the selected employees have obtained (collected) through

questionnaire interview schedule with them by the researcher on various aspects related to training and

development programmes. In addition to these, personal interviews were held by the researcher with the Chief

Manger, State Bank Learning Center, (SBLC), Chief Manager for Training (Training Manger), Faculty of the

SBLC and managerial level officers of other banks on different aspects of training and development policies and

practices and the programmes conducted in the training centre.

Secondary source of Data

The secondary sources of data included publications of the State Bank of India like Annual Reports and

other publications etc. Other sources of secondary data were obtained from books, research journals, magazines,

and publications of NIBM, IJTD, ASTD and others.

Selection of the Study Area

10 districts were selected for the field survey. The districts were selected randomly on the basis of the

jurisdiction of the State Bank India’s Bangalore circle for the research study.

Selection of the Branches

A total numbers of 46 branches of SBI were randomly selected for obtaining responses from the

employees. Due wastage has been given to the urban, rural and other areas in selecting branches.

Statistical Tools Used For Data Analysis

The data were analyzed with reference to the objectives and hypotheses by using descriptive statistics,

differential analysis including unpaired t-test, One-Way ANOVA followed by Newman-Keuls multiple post hoc

procedures and Pearson’s correlation coefficient analysis by using SPSS 16.0 statistical software and the results

obtained thereby have been interpreted.

Selection of Respondents


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A total number of 480 respondents were selected randomly from the bank. Of these 180 respondents

belong to the category of officer level and 300 belong to the clerical level

Table: Mean and SD of training and development programmes and its components of bank employees by

educational qualifications

Variables

n

Graduate Postgradua

te

Professiona

l

Total

378 77 25 480

Training and development programmes Mean 509.36 513.86 517.08 510.49

SD 33.83 29.44 25.37 32.80

Expectations from training and development

programmes

Mean 29.23 29.30 29.88 29.28

SD 1.80 1.72 1.69 1.78

Perception about training and development

programmes

Mean 36.85 37.43 36.80 36.94

SD 2.88 2.38 2.50 2.79

Impact of training and development

programmes on behavioral change

Mean 63.47 64.21 64.72 63.66

SD 5.24 4.65 3.92 5.09


programmes on job performance

Mean 54.59 55.13 55.56 54.73

SD 4.30 3.66 3.18 4.16

Perception about training and development

programmes administration

Mean 40.93 41.23 41.64 41.02

SD 3.58 3.10 2.96 3.48

Climate for transfer of learning after

attending training and development

programmes

Mean 40.65 40.40 40.56 40.61

SD 1.45 1.52 1.47 1.46

Overall opinion about training and

development programmes

Mean 26.28 26.12 26.08 26.24

SD 0.95 0.71 0.64 0.91

Perception about training centers

Mean 140.28 142.13 143.20 140.73

SD 12.23 11.01 9.27 11.92


programmes on self development

Mean 40.29 40.90 41.48 40.45

SD 4.17 3.72 3.25 4.06

Perception about the trainers

Mean 36.79 37.01 37.16 36.85

SD 3.15 2.83 2.27 3.06

The result of the above table represents the mean and SD of evaluation of training and development

programmes and its components of bank employees by educational qualifications. The mean of training and

development programmes is 510.49±32.80, in which the bank employees with professional educational degree

have higher mean of training and development programmes score (517.08±25.37) as compared to with post

graduate degree (513.55±33.72) and graduation degree (509.36±33.83). The mean and SD of components of

evaluation of training and development programmes are also presented according to gender in the above table

and in the following figure.


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Major Hypothesis: There is no significant difference between educational qualifications of bank employees

(graduate, postgraduate and professional) with respect to training and development programmes.

To achieve this hypothesis, the one way ANOVA test was applied and the results are presented in the

following table.

Table: Results of one way ANOVA between educational qualifications of bank employees with respect to

training and development programmes

Source of variation Degrees of

freedom

Sum of

squares

Mean sum of

squares

F-value P-value Signi.

Between educations 2 2439.28 1219.6414 1.1345 0.3225 NS

Within educations 477 512800.62 1075.0537

Total 479 515239.90

From the results of the above table we had seen that, the bank employees with educational

qualifications (graduate, postgraduate and professional) do not differ statistically significant with respect to

training and development programmes scores (F=1.1345, p>0.05) at 5% level of significance. Hence, the null

hypothesis is accepted and alternative hypothesis is rejected. It means that, the bank employees with different


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educational qualifications (graduate, postgraduate and professional) have similar training and development

programmes scores.

Sub Hypothesis: There is no significant difference between educational qualifications of bank employees

(graduate, postgraduate and professional) with respect to components of training and development programmes

i.e.

1. Expectations from training and development programmes

2. Perception about training and development programmes

3. Impact of training and development programmes on behavioral change

4. Impact of training and development programmes on job performance

5. Perception about training and development programmes administration

6. Climate for transfer of learning after attending training and development programmes

7. Overall opinion about training and development programmes

8. Perception about training centers

9. Impact of training and development programmes on self development

10. Perception about the trainers

To achieve this hypothesis the one way ANOVA test was applied and the results are presented in the

following table.

Table: Results of one way ANOVA between educational qualifications of bank employees with respect to

components of training and development programmes

Components Source of

variation

Degrees

of

freedom

Sum of

squares

Mean sum of

squares

F-value P-value Signi.

Expectations from

training and

development

programmes

Between

educations

2 9.95 4.9770 1.5683 0.2095 NS

Within

educations

477 1513.75 3.1735

Total 479 1523.70

Perception about

training and

development

programmes

Between

educations

2 21.81 10.9029 1.4016 0.2472 NS

Within

educations

477 3710.56 7.7790

Total 479 3732.37

Impact of training

and development

programmes on

behavioral change

Between

educations

2 64.33 32.1652 1.2407 0.2901 NS

Within

educations

477 12365.95 25.9244

Total 479 12430.28

Impact of training

and development

programmes on

job performance

Between

educations

2 37.22 18.6098 1.0767 0.3415 NS

Within

educations

477 8244.48 17.2840


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Total 479 8281.70

Perception about

training and

development

programmes

administration

Between

educations

2 16.10 8.05 0.6647 0.5149 NS

Within

educations

477 5777.76 12.11

Total 479 5793.87

Climate for

transfer of

learning after

attending training

and development

programmes

Between

educations

2 4.00 1.9985 0.9359 0.3930 NS

Within

educations

477 1018.58 2.1354

Total 479 1022.58

Overall opinion

about training and

development

programmes

Between

educations

2 2.27 1.1368 1.3862 0.2510 NS

Within

educations

477 391.17 0.8201

Total 479 393.45

Perception about

training centers

Between

educations

2 379.82 189.9076 1.3391 0.2631 NS

Within

educations

477 67644.98 141.8134

Total 479 68024.79

Impact of training

and development

programmes on

self development

Between

educations

2 51.40 25.7009 1.5606 0.2111 NS

Within

educations

477 7855.40 16.4683

Total 479 7906.80

Perception about

the trainers

Between

educations

2 5.76 2.8776 0.3061 0.7365 NS

Within

educations

477 4484.84 9.4022

Total 479 4490.59

From the results of the above table the researcher has observed,

� The bank employees with different educational qualifications (graduate, postgraduate and professional) not

differ statistically significant with respect to components of training and development programmes i.e.

expectations from training and development programmes scores (F=1.5683, p>0.05) at 5% level of

significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. It means that,

the bank employees with different educational qualifications (graduate, postgraduate and professional) have

similar expectations from training and development programmes scores.

� The bank employees with different educational qualifications (graduate, postgraduate and professional) do

not differ statistically significant with respect to components of training and development programmes i.e.


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perception about training and development programmes scores (F=1.4016, p>0.05) at 5% level of



similar perception about training and development programmes scores.



impact of training and development programmes on behavioral change scores (F=1.2407, p>0.05) at 5%

level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. It means

that, the bank employees with different educational qualifications (graduate, postgraduate and professional)

have similar impact of training and development programmes on behavioral change scores.



impact of training and development programmes on job performance scores (F=1.0767, p>0.05) at 5% level

of significance. Hence, the null hypothesis is accepted and alternative hypothesis is rejected. It means that,


similar impact of training and development programmes on job performance scores.



Perception about training and development programmes on administration scores (F=0.6647, p>0.05) at 5%



have similar Perception about training and development programmes administration scores.



climate for transfer of learning after attending training and development programmes scores (F=0.9359,

p>0.05) at 5% level of significance. Hence, the null hypothesis is accepted and alternative hypothesis is

rejected. It means that, the bank employees with different educational qualifications (graduate,

postgraduate and professional) have similar climate for transfer of learning after attending training and

development programmes scores.



overall opinion about training and development programmes scores (F=1.3862, p>0.05) at 5% level of



similar overall opinion about training and development programmes scores.



perception about training center scores (F=1.3391, p>0.05) at 5% level of significance. Hence, the null

hypothesis is accepted and alternative hypothesis is rejected. It means that, the bank employees with

different educational qualifications (graduate, postgraduate and professional) have similar perception about

training center scores.


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impact of training and development programmes on self development scores (F=1.5606, p>0.05) at 5%



have similar impact of training and development programmes on self development scores.



perception about the trainers scores (F=0.3061, p>0.05) at 5% level of significance. Hence, the null

hypothesis is accepted and alternative hypothesis is rejected. It means that, the bank employees with

different educational qualifications (graduate, postgraduate and professional) have similar perception about

the trainers scores.

FINDINGS AND CONCLUSIONS

1) The bank employees with different educational qualifications (graduate, postgraduate and professional)

have similar expectations from training and development programmes scores.


have similar perception about training and development programmes scores.


have similar impact of training and development programmes on behavioral change scores.


have similar impact of training and development programmes on job performance scores.


have similar Perception about training and development programmes administration scores.


have similar climate for transfer of learning after attending training and development programmes

scores.


have similar overall opinion about training and development programmes scores.


have similar perception about training center scores.


have similar impact of training and development programmes on self development scores.


have similar perception about the trainers scores.

SUGGESTIONS

The researcher had made the following suggestions based on the findings of the research study.

1) Top management should regularly get feedback from the branch managers also about the impact of the

training and development programmes on behavioral changes of assistants category.


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2) Top management should give necessary instructions to the branch managers to depute their

subordinates to training and development programmes. Bank staff can enhance their knowledge;

improve skills by attending more number of training and development programmes.

3) Pre-promotion training should be made compulsory for the entire bank by the top management.

4) Top management should create a post of training and development programmes evaluation manager at

local head offices who will continuously evaluate training and development programmes and gives

feedback to the top management.

5) Top management should see that trained staffs are retained in the same jobs at least for 5 years in order

to transfer the benefits of learning to the jobs.

6) Top management can make a better impact of training and development programmes on bank staff by

inviting resource persons premier educational institutions.

7) Top management should conduct more programmes on stress management, yoga and time management

in order to enjoy the jobs/tasks done by the bank staff. Because banking industry is undergoing sea

changes and putting the staff always under pressure.

8) Top management should insist the training colleges to conduct more programmes on behavioral

sciences, language skills, in order to make the bank staff more customers friendly.

9) Programmes like ‘Parivartan’ and ‘SBI Citizen’ should be conducted regularly to motivate the bank

staff and also to improve their behaviour.

10) Before posting newly recruited bank staff should attending training and development programmes. This

should be made compulsory by the HRD department so that trainees can learn about banking industry.

11) Top management should motivate bank staff including trainers to attend work shops, seminars,

conferences relating to the banking industry. For this bank staff should be given on duty leave.

12) Top management should select the trainers based on competencies skills, attitudes, and experience

rather than only on seniority basis.

13) Trainers should make the training and development programmes more enjoyable and also make

learning as a continuous programme.

14) Top management should also design programmes like training for promotions which will also help for

career development of bank staff.

15) Top management should consider trainers and trainees feedback about training and development

programmes while formulating future programmes.


14

TOURISM MARKETING

Chaitanya Laxmi

INTRODUCTION

A product can be “ideas, goods, or service”. Since tourism is primarily a service based industry, the principal

products provided by tourism businesses are recreational experiences and hospitality .These is intangible

products and more products such as automobiles.

• Evolution of tourism marketing:

It was started in the year 1995,Evolution-operating brand media performance-is an active presence in the world

of tourism in marketing consulting , integrate communication and organisation of events ;from its offices in

Trieste, main branch of the company, the spreads on both national and international territory. We are able to

understand the customer needs, to suggest valid targeted choices, and to suggest, in the end, the best operative

solution, satisfying this way the client’s request. Tourism is a serious matter, and we take it seriously.

• Meaning:

Tourism occurs when you leave your normal surroundings where you leave your normal surroundings where

you live and work to go to another environment to engage in activities there, regardless of how close or how for

it is. You are a visitor, and what you do while visiting his tourism.

• Importance of tourism marketing:

1. It is a fast growing industry in the world as well as the one of the world’s most competitive

one.

2. This competition is constantly growing as more as destinations planning.

3. Indian from tourism increased from USS 11.39 billion in 2009 to USS 14.19 billion in 2010.

All these figures giving an idea of growing market as well as the roll being played by tourism

in the economies of the nations

• Characteristics of tourism marketing:

Tourism products are intangible perishable .hetrozenous in nature, so selling once offering becomes

trickier as the proposition is mostly feeling and touch based.

India being such a diverse country poses big challenge to the destination marketers has how to brand and market

India as a unique destination. Can it be sold has a single unit or different states branded themselves in their own

ways like Kerala branding itself as Gods own country and Rajasthan as Padharo Mhar Desh.that’s why amithab

khant put his efforts to brand it has an incredible destination.

• Needs of tourism business and strategy for your business:

1. To identify your customer

2. To identify what you want to achieve from your marketing efforts

3. To articulate what sets you apart from competitors

4. To have an action plan to achieve your goals and objectives

5. To better understand your marketplace

6. To be in regular contact with public customers and agencies

7. To help you focus and hone in on the most important tactics


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8. To measure your return on investment

9. To remind you that you’re in business to stay in business

PLAN OF TOURISM MARKETING:

GOALS OF TOURISM MARKETING:

• IT increases non-resident visitation and increases non-expenditures from our markets, thereby

increases the tourism industry annul contribution to the economy

• The strategies and campaigns created to achieve these marketing objectives will also be guided by the

desire of government and the tourism board to extend the tourism season beyond the economic benefit

and the long term viability of the industries.

CONCLUSION ON TOURISIM MARKETING:

This is the wonderful contribution in today’s economy. It is a great way for people to spend their

money and for cities to attract other people. In doing so, cities across the world attract millions of

dollars just so foreigners get the chance to experience life in wonderful way of living life to the fullest.

Experiencing culture, religion, foods, sports, entertainment shows, and in general ways of life in a new

place is a great way to live life to the fullest.


16

FARMERS’ SUICIDES IN KARNATAKA: A CRITICAL ANALYSIS

Dr. Sharanappa Saidapur

Abstract:

Agricultural development is central to economic development of the country. Agriculture has always

been the backbone of Indian economy and despite concerted industrialization in the last six decades; it still

occupies a place of pride. It provides employment to around 60 per cent of the total workforce in the country.

Farmers are most integrated segment of the society, but they have been deprived of social and economic justice.

The low profile of agricultural people is a great threat to Indian economy and therefore their life system,

economic position, social status and educational level must be enhanced. The number of farmers, who

committed suicides because of crop losses, debt and drought, has crossed 400 this year in Karnataka. But 277

farmers have committed suicides in Hyderabad Karnataka. As many 135 taluks out of the 176 taluks have been

declared drought-hit in the state for last year, which experienced deficient rainfall this monsoon. This paper is

based on secondary sources-the secondary sources collected from the books, Journals, Reports, Census report,

magazines etc. This paper discusses with magnitude of suicides, problems and their solution for suicides. The

suicides point out two to things: first, a serious agrarian crisis shaped by an increase in cultivation costs and a

decline in agricultural income, which is pushing farmers into a debt trap; and second, the sociological pressures

that farmers face because of the big disparities between income and expenditure. Farmers’ suicides are more in

Hyderabad Karnataka region, because land reforms policy was not implemented properly. The big land lords are

more in these areas. The most of the fertile is land occupied by these Zamindars. ‘Tiller become owner’-is the

objective of the land reform which is not achieved in this region. The central Government and the State

Governments concerned must allot more financial aids and funds to the farmers for bearing loss. Agriculture is

the foundation of civilization and stable economy. It is man made problem and to be solved by man only.

Keywords: Farmers, Compensations, Financial, Backbone, Land, Agrarian, Crisis, Suicides.

Introduction:

Agriculture is our culture, not only culture, it is our future also. It is the backbone of our

economy. It continues to play a very significant role in overall development of the economy of our country by

contributing nearly 17 percent to GDP and engaging 50 percent of the country’s work force. The farmers are

backbone of agriculture. Indian agriculture needs to feed about 1.3 billion people and is burdened with the

responsibility of providing livelihood to 60 percent of the people 78 million people. No alien can meet this

mammoth food demand nor any sector outside agriculture has the capacity to absorb this big workforce. But

farming is in a deep crisis as indicated by the continued farmers’ suicides in addition to more then 3,00,000

farmers ending their lives in the last two decades.

There are 61 crore farmers in India including 137.37 lakh farmers of Karnataka. During the last 20

years around 3.05 lakh farmers have committed suicide of who 2500 belong to Karnataka alone. Every hour,

two farmers commit suicide in the country. The farmers depend upon agriculture for their livelihood. At the time

of independence more than 80 percent of Indians were farmers. Now their number is not even 23 percent. The

Government of India has given 100 per cent tax holiday to the farmers. The number of farmers is gradually


17

decreasing day by day, because most of them shifting to non-agricultural business. There is a serious agrarian

crisis with increasing agricultural costs and decreasing earnings. Therefore, farmers are facing the agrarian

crisis. The agriculture production is 264 million tonns food grain in India but entitlement of farmers on food

grain is vey low and their purchasing power is also very negligible.

Farmers are most integrated segment of the society, but they have been deprived of social and

economic justice. The low profile of agricultural people is a great threat to Indian economy. Therefore their life

system, economic position, social status and educational level must be enhanced. The suicide rate for farmers

throughout the world is higher than that of non-farming people. According to statistical report for the past 18

years nearly 3 lakh farmers have committed suicides in India on account of huge loss in agricultural sector.

Karnataka consists of North Karnataka and South Karnataka. Again North Karnataka divided into two parts i.e.

Hyderabad Karnataka and Mumbai Karnataka. Hyderabad Karnataka is most backward in terms of economic

indicators of the development. There is a large number of landlords in Hyderabad Karnataka Region. Land

reforms are not implemented in this region. Therefore, farmers’ suicide cases are more in this area. There is

absentia farmers are in this area and also loss incurred on absentee farmers not on real farmers. Therefore,

farmers are facing problems in agriculture sector. The number of farmers, who committed suicide because of

crop losses, debt and drought, has crossed 400 this year in Karnataka. But 277 farmers committed suicides in

Hyderabad Karnataka alone. As many as 135 taluks out of the 176 taluks have been declared drought-hit in the

state, which experienced deficient rain fall this monsoon.

Objectives of the Paper:

Objectives of the paper are as follows;

1. To know causes for farmers’ suicide.

2. To study the magnitude of farmers’ suicide.

3. To find out the solution for farmers’ suicide.

Methodology:

This paper is based on secondary sources. The secondary sources collected from the books, Journals,

Reports, Census report, Magazines etc.

Discussion and Analysis:

This paper discusses about magnitude of suicides, problems and their solution. The suicides point out

two things: first, a serious agrarian crisis shaped by an increase in cultivation costs and a decline in agricultural

income, which is pushing farmers into a debt trap; and second, the sociological pressures that farmers face

because of the big disparities between income and expenditure. Farmers are amongst the lowest earning class

with an average family income of Rs.3000/- per month. It affects their standard of living and their children’s

education. The size of the land holdings by different category of farmers in India can be seen from the table

below.

Table-1

Size of Land holdings in India

Sl. No. Category of Farmers Size of land Holdings Percentage of Land

Holding (%)

1. Marginal farmers 0-1.0 63.0

2. Small farmers 1.0-2.0 18.9

3. Semi – Medium farmers 2.0-4.0 11.7


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4. Medium farmers 4.0-10.0 5.4

5. Large farmers Above 10 1.0

Source: GOI. Ministry of Agriculture & Agriculture Statistics at a Glance (2007-10).

The above table shows that those farmers who hold less than 1 hectre (2.5 acres) of agricultural land

are treated as marginal farmers in India. They have land holdings of about 63 percent total agricultural land

holding in India. Hence, they represent a major segment of agricultural farmers in the country. The farmers’

suicide cases have increased after the implementation of the new economic policy (LPG) in India. Details of

agricultural land holdings in Karnataka are given in the table below.

Table-2

Size of Land holdings in Karnataka

(Number of operational Holdings(‘000)

Kinds of Farmers 1995-96 2000-01 2005-06 2010-11

Marginal (Below 1 ha) 2610 3252 3655 3849

Small (1to 2ha.) 1707 1909 2014 2138

Semi Medium (2to4 ha.) 1204 1259 1278 1267

Medium (4 to 10 ha.) 594 569 555 511

Large (Above 10 ha.) 106 90 79 68

Total 6221 7079 7581 7832

II. Areas of Operational Holdings(‘000)

Marginal 1248 1492 1651 1851

Small 2480 2742 2876 3020

Semi Medium 3298 3429 3468 3393

Medium 3490 3317 3206 2904

Large 1593 1327 1184 994

Total 12109 12307 12385 12161

III. Average size of Operational Holdings (hectares)

Marginal 0.48 0.46 0.45 0.48

Small 1.45 1.44 1.43 1.41

Semi Medium 2.74 2.72 2.71 2.68

Medium 5.88 5.83 5.78 5.69

Large 15.02 14.74 14.99 14.71

Total 1.95 1.74 1.63 1.55

Sources: Karnataka Agricultural Census Reports and Agriculture 2010-11

The above table depicts picture of the land holdings in Karnataka. 2010-11 Agriculture Census shows

78.32 lakh farm holdings operating 121.61 lakh hectares. Small and marginal holdings account for 76.44 percent

of total holdings and operate only 40.05 per cent of the total operated area, while semi-medium, medium and

large holdings account for 23.57 per cent of the total holdings and their operational land holding is 59.95 per

cent out of the total operational area. There are co-relations between size of land holdings and farmers’ suicides

in the State. Wherever the size of land holding is very small the higher rate of suicide cases are reported in

Karnataka. Only 27 per cent of farmers have got loan from the nationalized banks and remaining 73 per cent of


19

farmers have get loan from the landlords. This leads to over debt on farmers and they have committed suicide in

rural areas of Karnataka.

Table -3

Year-wise Farmers’ suicides in Karnataka

Year Reported Compensation

2004-05 271 114

2005-06 163 94

2006-07 346 176

2007-08 342 182

2008-09 337 156

2009-10 290 145

2010-11 242 117

2011-12 187 112

2012-13 130 77

2013-14 106 58

Sources: National Crime Record Bureau, Bangalore.

Above table clearly indicates the year-wise farmers’ suicides in Karnataka. Since from 2004 to 2013,

there are 19,483 farmers’ suicide cases reported in Karnataka.

Farmers’ suicides in Hyderabad Karnataka:

Farmers’ suicides are more in Hyderabad Karnataka region, because land reforms policy was not

implemented properly. The big land lords are more in this area. The most of the fertile land is occupied by these

Zamindars. ‘Tiller become owner’-is the objective of the land reforms which is not achieved in this region.

Moreover, 30.25 percent of scheduled castes and scheduled tribes population lives in this region. These

suppressed people had very small land holdings. Therefore, farmers’ suicides are more in this area. Details of

farmers’ suicide cases in Hyderabad Karnataka are given in the table below.

Table-4

Farmers’ Suicides in Hyderabad Karnataka

Sl. No. Districts Total Suicides Compensation given.

1. Bellary 27 11

2. Bidar 51 30

3. Kalaburagi 54 23

4. Koppal 34 09

5. Raichur 55 14

6. Yadgiri 56 31

Total 277 118

Sources: Prajawani, Kannada Daily, date: 24-3-2016

The above table reveals district-wise farmers’ suicides in Hyderabad Karnataka region. Farmers’

suicides are more in number because most of the people do not have agricultural land, even though some have

little land that too is barren land, they had small piece of land i.e. barren land (low fertile). As regards payment

of compensation to the families of farmers ending their lives in 2015-16 all the 118 cases have been given

compensation.

Causes for farmers’ suicides:


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Some of the important causes for farmers’ suicides are listed below;

1. Shortage of electricity, labour, pesticides and fertilizer,

2. Interference of middlemen.

3. Predominance of real estate and conversion of agricultural land into non-agriculture.

4. Non-availability of price for finished goods.

5. Lack of financial support from the Government.

6. Inadequate process of agricultural product.

7. Absence of proper crop planning.

8. Burden of debt.

9. Low production and lack of minimum support price,

10. Difficulties in marketing produces.

11. National hazards like storms, cyclones, droughts, fire, earthquakes, tsunami, etc.

12. Defection in man management.

13. Encroachments’ of water sources-lake, ponds, rivers, wells, canals, etc.

Suggestions:

Farmers are backbone of our country, without farmers we can not live in the world. The some of the

important remedies are as follows;

1. To introduce farmers insurance schemes for the sake of farmers at all the level.

2. The Government must create a special law for converting agricultural land into non-agriculture for

commercial purpose.

3. The central Government and the State Governments concerned must allot more financial aids and funds

to the farmers for bearing loss.

4. The land shall be let out to villagers without distinction of castes or creed and in such manner that there

will be no landlord, no tenant and no landless labours.

5. It shall be the obligation of the state to finance the cultivation of the collective farmers by supply of

water, animals, implements, manure, seeds etc.

6. Government should make policy on Nationalization of Agriculture and land,

7. To strengthen Public Distribution System,

8. Amendment of APMC Act and Essential Commodity Act on priority basis.

9. To stop the fertile agricultural land given to Special Economic Zone.

10. To encourage the dry land farming and also train the rain water harvesting management.

Conclusion:

Agriculture is the foundation of civilization and stable economy. More than 60 percent of the

Indian population is depending on the agriculture of which more than 80 percent are landless agricultural

labourers and small land owners. Prof.Amartya Sen said that “farmers’ suicides are human tragedies in human

history. Farmers are only a political raw material and all political parties have used them as ‘Vote Bank’

politics. It prevents by the active intervention of governments both by union and State governments. Indian

agriculture is gambling of monsoon. Therefore, it will affect production and income of the farmers. The distress

among the farmers is rising unabated which is evident in the soaring rate of suicides of farmers. In this way

farmers are born in debt, live in debt and die in debt. It is a curse of the society. It should be rooted out. It is man

made problem and to be solved by man only. The government should take a relook at its farm policies and


21

revise them in such a way as to cut the costs of farmers input, raise their revenue and thereby increase their

income to make farming sustainable, instead of seeking to install crop insurance business propped up by

actuarial premium rates and scheming to withdraw interest subvention benefit.

References:

1. Lakshminarayanan M.R. (2015) “Increased Number of suicides by Indian Farmers: An Assessment”

Southern Economist, Vol. 54, No.4, pp.19-27.

2. Achutha Poojary K. and Muniraju (2014) “Strategies of Bankers and Marginal Farmers Relationship

management: A Case Study” Southern Economist, Vol. 53, No.8, pp.15-16.

3. Karnataka Agricultural Census Reports and Agriculture 2010-11

4. Economic Survey of Karnataka 2015-16,pp.199-200


22

GREEN BANKING

Prof.(Smt)S.B.Badami

Head, Department of Commerce, Shri Shankar Arts and Commerce College, Navalgund

ABSTRACT

Ecological preservation and sustainable development are recognized globally as overriding imperatives for

protection of our planet from the ill efforts of global warming and climate change. Banks and financial

institutions can play a major role in global efforts to mitigar environmental risks and make this planet a better

place to live. In the environment friendly society,” GO GREEN” mantra has become relevant in each and every

aspect of business. There is a wave of change with all business activities not only focus on profit but also on

people and planet. Due to environment consciousness and awareness businesses can no longer run after profits

only. There is a more towards green economy and in every sphere organizations have to be environmentally

sensitive. One such area is Green Banking. Green Banking means ensuring environment friendly practices in

Banking Sector and thereby reducing internal and external carbon foot prints. Broader view is having green

criteria as landing principle. Green Banking is creating a Buzz in the financial world. Green Banking is an

umbrella term which refers to those practices and guidance’s that make banks environmentally, economically

and socially responsible. Green Banking is comparatively a new development in the financial world. In

December, 2007, the Reserve Bank of India issues a circular (RBI-2007-2008/216) highlighting the importance

of Banks to act responsibly and contribute to sustainable development and emphasizing the need for. Indian

banks to establish institutional mechanisms to enshrine sustainability, Going Green are more than just social

incentive. This paper is concerned with some main aspects of Green Banking.

Keywords: Carbon footprint, Green Banking, Sustainability, Climate change.

INTRODUCTION : “Earth Provides enough to satisfy man’s needs, but not every man’s greed”

Mahatma Gandhi

The most complicated issue that the world is facing today is climate change. The banking industry influences

economic growth and development, both in terms of quality and quantity, leading to a change in the nature of

economic growth. Banking sector plays a crucial role in promoting environmentally sustainable and socially

responsible investment. In the environment friendly society, “GO GREEN” mantra has become relevant in each

and every aspect of business. on such area is Green Banking”. Green Banking means ensuring environment

friendly practices in banking sector and thereby reducing internal and external carbon footprints. Broader view

is having green criteria as a landing principle. Green Banking is creating buzz in the financial world. To aid the

reduction of external carbon emission, banks should finance green technology and pollution reducing projects.

There are two ways of green banking practices, one is in house and another is practice by the bankers in their

business area. It creates clean and hygienic banking environment. Green Banking undertakes proactive

measures to protect environment and to address climate change, challenges while financing along with efficient

use of renewable, non-renewable, human and natural resources.

LITERATURE REVIRE: The concept of Green Banking was developed in the western countries. Green

Banking was formally started in 2003 with a view to protecting the environment. Then the Equator Principles

were launched and were initially adopted by some leading global banks, such as Citigroup Ine, The Royal


23

Bank of Scotland etc. Adoption of greener banking practices will not be useful for environment, but also benefit

in greater operational efficiencies. In the early 1990s, United National Environment Program (UNEP) launched

what is now known as the United National Environment Program Finance Institute (UNEPFI) with object of

integrating the environmental and social dimension to the financial performance and risk associated with it in

the financial sector. In march 2009, Chris Van Holien of USA introduced a Green Bank Act with the aim of

establishing a Green Bank under the ownership of US government. After introduce the Green Banking initial

decision was to minimize the paper use in banking works because to make all kinds of papers need to cutting

trees as raw materials and for this reason naturally it reduce the Oxygen and increase carbon dioxide. As far as

Green Banking in India is concerned, the Banking and financial institutions are running behind the schedules

compared to global trends (Nayak). Moreover there is a neglible awareness of green banking among the

customers even the bank staff (Verma M.K. 2012). In the context Indian policy making, National Environmental

Policy in 2006 brings out clear policies, principles and also rules to implement environmental rules and

regulations. India’s largest commercial bank State Bank of India, it leads first green banking services. Mr.

O.P.Bhatt, Chairman, SBI took initiative to establish it.

OBJECTIVES :

• To study the concept of Green Bank,

• To identify the steps necessary to adopt green banking,

• To check the awareness of green banking among bank employees, associates and general public,

• Need for Green Banking,

• To measure the green values.

RESEARCH METHODOLOGY: The research methodology used in this study is based on primary as well as

secondary data. The primary data is collected from the study conducted through telephonic interactions and

personal interview. The study examines major aspects concerned with the Green Banking. Specially structured

questionnaire and interviews with employees of well established banks and general public have been used for

survey purpose. Sample size includes Five Bank Managers, Twenty five Bank Employees and Twenty Five

customers. Method of sample selection based on random.

STEPS IN GREEN BANKING:

• Going online,

• Using Green Checking Accounts,

• Green Loans for Home Improvements,

• Power Saving Equipment,

• Use Green Credit Cards,

• Use of Solar and Wind Energy,

• Mobile Banking, Internet Banking and Direct Deposit through electronically.

GREEN BANKING AT STATE BANK OF INDIA: By using eco and power friendly equipment in its ten

thousand new ATMs, the banking giant has not only saved power costs and earned carbon credits, but also set

the right example for others to follow. SBI is providing many services like paper less banking, no deposit slip,

no withdrawal form, no cheques, no money transactions forms, all these are done through SBI shopping and

ATM cards. SBI launched Green Channel Counter facility at their branches in 2010 to change the traditional


24

way of paper based banking. SBI had spelt out several initiatives within the Bank to further the cause of Green

Banking by:

• The inauguration of a windmill at Panapatti village, Poll chi Taluk, Tamil Nadu,

• Sensitizing employees through training, workshops and education programs,

• Transaction through SBI – ATM – Cum- Debit Card,

• Green Channel Counter,

• Staff motivational activities,

• By investing in efficient lighting systems, energy savers and water waste management,

• Adoption of need based technologies,

• Market leader in education loans, auto loans and home loans,

• Bank has vast domestic network,

• It has number of rewards and recognitions to its credit,

• Distribution of one lakh of electric fans and ongoing distribution of water filters in schools in India,

• Girl Child Projects promoted etc.

REASONS FOR VENTURING GREEN BANKING:

• Social Responsibility,

• Competitive Pressure,

• Cost reduction,

• Government Pressure,

• Opportunity to provide quick services,

• Proactive idea,

• Ecological gains etc.

FINDINGS:

• Green Banking avoids as much paper work as possible and rely on online and electronic transactions,

so that we get green credit cards and green mortgages,

• Eco-Friendly business practices,

• It is a practice and smart way of thinking with a vision for future sustainability of our only spaceship

earth,

• Increase profitability by going green etc.

SUGGESTIONS:

• Construct a website and spread the News,

• Educate through the Bank’s internet and public website,

• E-Learning programs,

• Borrower must be encouraged about Green Banking,

• Social responsibility services provide by Banks.

CONCLUSION: Green is the word now. There is an increase in awareness regarding protecting and conserving

the environment. Green Banking is an emerging concept here. Green Banking still a major issue and can take

important part for development of our country. Now the future of green banking seen to be very promising in

India as lots of green products and services are expected in future. Thus Indian banks should realize their

responsibility towards the environment as well as the society in order to compete and survive in the global

market. Banks can act as a guideline toward the economic transformation and credit platform for financing and


25

investment policy that contribute towards creation of low carbon economy. Thus green banking as a concept is a

productive and smart way of thinking towards future sustainability.

REFERENCES:

• Raghupati M., Sujatha S. “Green Banking initiatives of commercial bank in India”, international

research journal of Business and Management,

• Websites, “The Indian Banker”, monthly journal published by Indian Banks


26

GENDER GAPS, GENDER EQUALITY AND EMPOWERMENT OF WOMEN:

ISSUES AND CHALLENGES

DR.U.K.KULKARNI

Asst, Professor, Dept. Of Education, Karnataka State Women’s University, VIJAYAPUR

Abstract

Gender equality is considered a critical element in achieving social and institutional change that leads to

sustainable development with equity and growth. Inequalities between men and women manifest themselves in

all areas of development. Inequalities are most obvious in: health and education, economic development,

violence against women, participation in public life and policymaking and social attitudes and gender

stereotyping. Health discrimination against women in India starts early and is evident in the skewed sex ratio of

933 women to 1,000 men (world average: 990:1,000). Maternal mortality in India is the second highest in the

world and close to 125,000 women die due to pregnancy and pregnancy-related illnesses every year. The present

study analyses the gender gaps and gender equality and challenges faced to overcome it.

Introduction:

Gender involves differences in power, “both power to and power over”. The concept of power to

encompass legal and informal rights, access to resources, and pursuit of knowledge and personal goals, and cuts

across most domains of human functioning, including familial, cultural, and institutional domains. Power over

refers to control over societal and household resources and decisions, cultural and religious ideology, and one's

own and others' bodies. Importantly, men tend to have greater power than women, and, in some domains, even

have power over women. Gender is not static or immutable‖. Being socially constructed, gender roles, rights,

and expectations can change over time and across geographical space as societal needs, opportunities, and

customs change.

Powered initially by the reformist movement in colonial India, women’s issues and concerns were taken

forward by the nationalist movement and subsequently sustained by the women’s movement. India being

predominantly an agricultural economy in the initial years after independence, the immense contribution of

women to the agrarian economy was insufficiently acknowledged by the economy. Many decades hence,

women in India continue to struggle for basic rights such as minimum wages, equal wages and property rights,

in spite of several protective legislations.

The position of women in India has transformed over the decades. Great strides have been made in

ensuring equality for women in Indian society. However, contradictions and gaps in protecting certain basic

rights of women continue to exist. The Government has actively – both through law and policy – sought to

improve the status of women. Keeping in mind the regional variations, religious, caste and class-based

differences that have a definitive impact on women in India; we draw some broad generalisations on the major

socioeconomic developments that have impacted women in the country. Women’s access to resources such as

land, credit, skill training and education in particular, is relatively poor, while they still carry the burden of a

‘double shift’ at home cooking, cleaning, caring for the young and the old, adversely impacting their abilities to

contribute effectively in the labour market.

The empowerment of women is fundamental to reduce poverty, hunger and malnutrition. Gender

equality and women‘s empowerment are important factors for the social and economic development of a nation.

The promotion of gender equality and empowering of women is one of the eight Millennium Development


27

Goals (MDG) to which India is a signatory. For which the first and foremost is the gender gap need to be

assessed.

Gender gap: The differences between women and men, especially as reflected in social, political, intellectual,

cultural , or economic attainments or attitudes. The Global Gender Gap measure was introduced by the World

Economic Forum to examine four critical areas of inequality between men and women:

1. Economic participation and opportunity – outcomes on salaries, participation levels and access to high-skilled

employment

2. Educational attainment – outcomes on access to basic and higher level education

3. Political empowerment – outcomes on representation in decision-making structures

4. Health and survival – outcomes on life expectancy and sex ratio.

The Gender Gap Index assesses countries on how well they are dividing their resources and opportunities

among their male and female populations, regardless of the overall levels of these resources and opportunities.

India ranks 123 in terms of economic participation, 121 in educational attainment, 134 in health and survival

and 17 in political empowerment. India, with 1.3 million elected women representatives, has the largest number

of women participating in local governance among the Asian countries, exceeding its own 33% reservation. A

study of Indian local governments by Munshi and Rozenweig (2008) said that women in local government roles

came out with better outcomes for communities in budgetary decisions and were more competent in procuring

resources despite significantly lower education and labour market experience, so politically empowering women

is a good thing.

Women’s empowerment may be defined as “a bottom-up process of transforming gender power

relations, through individuals or groups developing awareness of women‟s subordination and building their

capacity to challenge itof power relations (Baden and Reeves, 2000). Many United Nations (UN) conferences

have advocated that women‟s empowerment is central to sustainable development. The Copenhagen

Declaration of the World Summit on Social Development (WSSD) is a case in point. WSSD called for the

recognition that empowering people, particularly women, to strengthen their own capacities is a main objective

of development, and that empowerment requires the full participation of people in the formulation,

implementation and evaluation of decisions determining the functioning and well-being of societies. The report

of the United Nations Fourth World Conference on Women is another good example to mention. It called its

platform for action on agenda for women‟s empowerment (Baden and Oxaal, 1997).

Policies to bring down the gender gaps

The National Plan of Action for the Girl Child (1992) recognizes the right of the girl child to equal opportunities

and seeks to eliminate all forms of violence perpetuated against the girl child. India is a signatory to the United

Nations Convention on the Rights of the Child, 1989. The female literacy rate increased from 39 per cent in

1991 to 54 per cent in 2001 and the gender gap in literacy has thus come down from 25 to 21 per cent between

1991 and 2001.7 The 93rd Constitutional Amendment makes free and compulsory education a fundamental

right for all children in the 6-14 age group. The National Programme for Education of Girls at Elementary Level

(NPEGEL), a component of the Sarva Shiksha Abhiyan (SSA),8 provides region-specific strategies to enable

girls to come to school and also provides remedial teaching through bridge courses and residential camps. The

Government of India adopted a National Policy for the Empowerment of Women in 2001 to bring about gender

justice and gender equality. Several State Governments have also formulated similar policies for women’s

empowerment. Efforts to set up effective institutional machinery to address women’s issues are prevalent both

at the national and state level. Apart from NCW, the Department of Women and Child Development set up


28

within the Ministry of Human Resources Development in 1985 has since 2006 been upgraded to a full-fledged

Ministry of Women and Child Development that seeks to further the cause of women and children. At state

level, the State Departments of Women and Child Development and the State Commissions for Women are

important governmental bodies taking forth gender concerns. Women’s Cells and gender budgeting initiatives

have been set up in various ministries/institutions. Apart from regular commissions and committees seeking to

focus on gender issues, the Planning Commission regularly reviews the government programmes and policies

for women.

Political status: Though initially unrepresented, women are emerging gradually as a small but significant

political force in the country. The Women’s Reservations Bill has been passed in the Rajya Sabha (Upper

House), and is yet to be passed by the Lok Sabha (Lower House). In 1993, the 73rd and 74th Constitutional

Amendment provided for one third reservation for women in local bodies both urban and rural (panchayat).

Special reservations for women from Scheduled Castes and Tribes have enabled their active participation in

mainstream politics. Gender budgeting involving grassroots-elected women representatives are being used for

advocacy in several places. However, the overall scenario indicates underrepresentation of women in

governance and decision-making positions in all areas of public life in the country.

Economic status: The economic status of women in the country has undergone many changes. Up to 1991,

India had a planned economy which enabled planned growth. Post 1991, the liberalisation and globalisation

phase had a serious impact on women workers. While new work arenas such as information technology and

biotechnology absorbed more and more women, there was also a marked increase in the presence of women in

the unorganised or informal sector. Leading national financial institutions, like the Small Industries

Development Bank of India (SIDBI), the National Bank for Agriculture and Rural Development (NABARD),

Swayamsidha, or the Integrated Women’s Empowerment Programme (IWEP), and the Rashtriya Mahila Kosh

(RMK), have played a significant role in promoting micro-credit and the economic empowerment of women

Over the years, there have been a number of important ad hoc bodies that have reported on issues critical to

women in the world of work. Notable among these are: ƒ

� As noted above the Committee of the Status of Women in India (1971-74) was the first such effort

which raised women’s issues and the report led to new legislation such as the Equal Remuneration Act

1976. ƒ

� The National Commission on Self Employed Women and Women in the Informal Sector (1987-88) –

produced a report entitled Shramshakti which makes a number of important recommendations for

legislative changes. ƒ

� The National Commission on Rural Labour (1991) – produced a report which included the

consideration of rural issues as they affect women and recommended increased self employment, wage

employment and diversification in order to redress inequality. It called for the amendment of

matrilineal inheritance laws, training in technological skills, and increased legislative protection for

home workers. ƒ

� The National Commission on Labour (1966-69) established important principles of labour policy in

India which has included an emphasis on women. This was followed by the second National

Commission on Labour (2002) that set up a Task Force on Women and Children and examined

rationalization of labour laws and legislation for unorganized or informal workers ƒ

� More recently, the National Commission for Enterprises in the Unorganized Sector (NCEUS) (2007)

has acknowledged the need for separate policy attention for women, especially home based workers. ƒ


29

In spite of the many efforts at elevating the socio-economic status of women in the country, problems

continue to persist – the falling sex-ratio and the increase in female foeticide and infanticide in certain

parts of the country.

Various Articles of the Constitution of India attempt to ensure that there is no prevalence of gender pay gap.

Specific legislations also address gender pay gap. These articles of the Constitution are as follows:

Article 14: Men & women to have equal rights & opportunities in the political, economic & social spheres.

Article 15(1): Prohibits discrimination against any citizen on the grounds of religion, race, caste, sex etc.

Article 15(3): Special provision enabling the State to make affirmative discriminations in favour of women.

Article 16: Equality of opportunities in matter of public appointments for all citizens.

Article 39(a): The State shall direct its policy towards securing all citizens men and women, equally, the right

to means of livelihood.

Article 39(d): Equal pay for equal work for both men and women

Article 42: The State to make provision for ensuring just and humane conditions of work and maternity relief.

The analysis of gender pay gap in India based on a voluntary online Salary Survey conducted by Paycheck India

with 16,500 online observations (13,729 males and 2771 females) indicated that a wide gender pay gap exists in

India. The average gender pay gap is approximately 54% for years 2006 to 2011. The data also revealed that

gender pay gap has narrowed over the years. It was above 70% before 2008 and has come down to almost 40%

in 2011. Gender pay gap changes with increase in wages, for wages below Rs1 Lakh and above Rs 50 Lakhs,

the gender pay gap is negligible.

Conclusion: Empowerment is both a means to an end and an end in it self. The focus on empowerment has

given a new emphasis to the building of economic and social capabilities among individuals, classes and

communities. It is theories of social change in particular, a change from a hierarchical to and egalitarian type of

society. It is based on democratic society, which is based on recognition of equal rights to all individuals in its

place. Empowerment appears to be an alternative path for dismantling the old structure and putting new one in

this place. Empowerment is to change the society through re-arrangement of the power. So there is a need for

empowerment through civic, political and social rights of citizens.

References

� Agnes, F. 2000. Law and gender equality: The politics of women’s rights in India (New Delhi, OUP).

� Bhowmik, S.K. 1993. “Tea”, in C.S. Venkataratnam and A. Verma (eds.): Industrial relations: Current

perspectives (New Delhi, Allied Publishers).

� Breman, J. 1996. Footloose labour (New Delhi, Cambridge University Press).

� Chandrashekar, C.P.; Ghosh, J. “Women in India: A status report”, in Business Line, available at:

http://www.thehindubusinessline.com/2002/09/03/stories/ 2002090300080900.htm [03 Sep 2002].

� Chavan, P.; Bedamatta, R. 2006. “Trends in agricultural wages in India, 1964-65 to 1999- 2000”, in

Economic and Political Weekly, Sep.

� Census of India 2011,Primary Census Abstract, Data Highlights

� http:/www.ilo.org/wcmsp5/groups/public/-dgreports gender/documents/publications/wcms_150428

� http://www.peacecorps.gov/wws/articles/global-issues-gender-equality-and-womens-empowerment.


30

WORK PLACE FACTORS CAUSING STRESS AND ITS MANAGEMENT IN CO-OPERATIVE

SOCIETIES (BANKS) IN BELGAUM DISTRICT

PRAKASH B. KUNDARAGI

Research Scholar, KIMS, Karnatak University, Dharwad

DR. A. M. KADAKOL

Research Guide, Associate Professor, KIMS, Karnatak University, Dharwad-580003.

ABSTRACTS:

This study is an attempt being done to know deeply about the stress level of working employees in the

co-operative societies (Banks) in Belagavi district. The word stress has been taken from the Latin word

"Stringere". The term stress is universal in nature, which means, it is occurs to anybody irrespective of age,

gender, language, occupation, country, and so on. There are several factors which are contribute to the stress

level of employees, such as age, gender, income, co-workers, supervisor, employer, job involvement, work

overload etc. so researchers have an objectives to find out factors which are causing stress and to find out

mechanisms to overcome from such stressor of co-operative societies (Banks) employees. Researchers have

used convenient random sampling and well structured questionnaire for collection of primary data for 100

respondents. Simple percentage, average mean, cumulative frequency & rank were used to analyze data. Long

working hours, work load, poor pay are most impacting factors of stress and leisure, good communication,

motivation, congenial culture in the banks would help to manage or decrease stress among the employees of co-

operative societies (Banks).

KEY WORDS: Stress, causes, remedial measures, co-operative societies

INTRODUCTION:

Stress become a common observable factor in any type of industries (Manufacturing & Service) and

stress is universal in nature, which means, it is occurs to anybody irrespective of age, gender, language,

occupation, country, and so on. There are several factors which are contribute to the stress level of employees,

such as age, gender, income, co-workers, supervisor, employer, job involvement, work overload etc. Stress

occurs in many ways such as psychologically, emotionally, physically, socially, occupationally, etc. Stress can

be defined “as non-specific response of the body to any demand made upon it” (Hans Selye, 1956). Which

means we must adapt both good things (e.g. Job promotion) termed as Eustress and Bad things (e.g. death of

loved ones) termed as distress. Batliwala, 1990, viewed that, stress is both a friend and a foe.

Stress may occur by different pressures from different sources or combination of sources, so that stress

is unhealthy state of mind or body or both. Stress manifests as a physical, psychological or social dysfunction

resulting in individuals feeling unable to bridge the gap with the requirements or the expectations placed upon

them.

Stress could be due to factors intrinsic to the job, such as poor physical working conditions, work

overload & time pressure. (Rosanna et al., 2004), in his research identified classification of work-related

stressors. Those buildup evidence that six particular stressors are/demands, control, support, Relationships at


31

work, Role and Organizational change /have potentially a negative impact on well-being (& productivity) of

employee, regardless of type or size of organization. It can be defined further as unwanted reaction of people.

Several researches have done and noted that, there are many key Factors which make people in to pressure such

as work environment, lack of management support, work overload etc (Ashfaq Ahmed & Dr.Mohmmad (2013).

In the words of WHO (2011), stress arise from a wide range of work circumstances and becomes worse due to

lack of support, low skill discretions, high job demands and organizational conditions.

Co-operative societies in Belgaum district: In 1906, Urban Co-operative Bank was opened, which was calling

as pioneer of urban co-op banks and later it was constituted as Urban Credit Bank in the year 1921-22. Presently

there are 5192 are co-operative banks/ societies are working in the district. Mudalagi is one of the towns in

Belgaum district having highest i.e. nearly around 60 co-operative societies (Banks).

Stress Model for the Study: Figure No: 1

LITERATURE REVIEW:

A literature review is a body of text which has an objective to review the significant points of current

information including substantive findings as well as theoretical and methodological contributions to a particular

topic.

S Uma Mageswari & Dr N R V Prabhu (2014) have studied abut occupational stress with reference to bank

employees; they used a structured questionnaire based on Likert’s Scale for collection of primary data. They are

analyzed and interpreted the collected data using statistical tools such as weighted average mean, Correlation

analysis, Regression Analysis. ANOVA, Critical ratio analysis and percentages. Further they found that,

employees with more experience feel more stress due to increase in the responsibility, satisfied employees

express less stress than, dissatisfied employees, and Some of the respondents viewed 'Rational Task Oriented &

behavior to cope with stress. K.Kumar and R.Saminathan (2016) have used random sampling method for

collecting data from 243 bank employees. Researchers have found that, lack of ability & skills have significant

relationship with stress. Poor infrastructure, communication gap, unhealthy environment, etc also have

significant relationship with stress. More than 50% of employees suffering from frustration, anxiety, tension,

back aches, diabetes & so on. Dr. Manisha & Reena K.S (2016) have used exploratory research method &

• Poor pay

• Work Overload

• Co-worker

• Long working

hours

• Recognition&

rewards

• Supervisor

• Employer

• Family

responsibility

Stress

Manageme

nt

Eustress

Distress


32

collected data from 71 respondents with the help of questionnaire and chi-square test was used to analyze data.

They found that, majority of them are graduates having less than 3 years of experience. Further researchers

found that, married women are more stressed than unmarried. Time management, overwork, work schedule,

working in house are the main reason for their stress. Abdul Moeed et al (2013) have used questionnaire

method to collect a data from 300 respondents. The researchers found that, majority (44.7%) of workers’ age is

18-25, 55% among them are 3-10 years experienced. Further they found that, employees are stressed because of

their relatives and married women feel more stress than unmarried, some suffered from stress because of non-

supportive of their husbands and 82% of them are stressed because of time management between family life and

work life. Usman & Muhammad (2010) have found in their study that, organization should provide supportive

culture to working employees to increase their performance and Ashfaq Ahmed & Dr. Muhammad (2013)

organizational assistance, management support for work acts positively in decreasing work related stress.

OBJECTIVES:

This research work is mainly aims to study the “WORK PLACE FACTORS CAUSING STRESS AND ITS

MANAGEMENT IN CO-OPERATIVE SOCIETIES (BANKS) IN BELGAUM DISTRICT”. With this end in

view, the following objectives are formulated.

� To study the Stress level among employees

� To analyze the factors which are causing Stress.

� To find out measures to coping with stress.

METHODOLOGY:

Non-probabilistic Convenient sampling was used to choose the 100 respondents (including Male &

Female) from co-operative societies (Banks) in Belagavi district. Primary data was collected through structured

questionnaire which has included demographic & stress related questions. Questionnaire was distributed among

employees and suggested them to choose the Stressors or factors which are contributing most to their level of

stress and personal interaction with the employees. Secondary data was collected through websites, books,

journals etc. Simple percentage, average mean, cumulative frequency & rank were used to analyze data.

FINDINGS:

Table No. 1. Composition of Samples by Demographical Features. (N=100)

Demographical features Frequency Percentage Cumulative

Frequency

Gender

Male 70 70 70

Female 30 30 100

Total 100 100 --

Age

20- 30 40 40 40

31-40 35 35 75

41-50 20 20 95

51-60 05 05 100


33

Total 100 100 --

Marital Status

Married 90 90 90

Unmarried 10 10 100

Total 100 100 --

Educational

Qualification

Post Graduation 15 15 15

Degree 80 80 95

PUC 05 05 100

Total 100 100 --

Experience

(in Years)

Less than 5 40 40 40

6-10 20 20 60

11-15 15 15 75

16-20 15 15 90

21-25 10 10 100

Total 100 100 --

Source: Primary data

Most of the respondents are male; aged between 20 & 40 i.e. 75%; 90% among them are married; most of them

are i.e. 80% among them are graduates and about 60% are experienced less than 10 years.

Researchers have been asked respondents to choose the factor/s among the list of stressors which are most

impacting their stress level. The stressor which is chosen highest by employees, that is selected as number one

stressor causing their stress level. On the basis of respondents’ response ranks have made. That is explained in

Table no. 2.

Table No. 2. Composition of Stressors most impacting on working women (N=100)

Sl. No Stressors Mean Rank

01 Work Overload 1.5 II

02 Poor Pay 1.4 III

03 Lack of Job Stability & Security 0.33 VII

04 Lack of Academic support from Colleagues 00 XII

05 Ineffective Management 0.16 X

06 Lack of Career Development 0.16 VIII

07 Lack of Social Relationship 0.58 VI

08 Lack of Social Status 0.16 IX

09 Lack of Resources 00 XI


34

10 Long working hours 1.58 I

11 Family responsibility 1.08 V

12 Recognition & rewards 1.16 IV

Source: Primary data.

� Long working hours as most impacting & causing factor on their stress level. It has significant impact

on stress level of employees.

� According to St. Paul Fire & Marine Insurance Company report, around 30,000 deaths occurs every

year in Japan Due to ‘Karoshi’ which means over work. In the banking sector employees are stressed

because of work overload.

� Poor pay and recognition for their performance are also effects on their stress.

� Women employees are stressed more because of long working hours, family responsibility and work

load then the male workers.

� They are very less or not stressed about Lack of Resources and Lack of Academic support from

Colleagues. They are happy with these factors.

� Some of the factors are moderately impacting on the stress level of employees in the co-operative

(Banking) sectors such as social status, social relationship, career development etc.

CONCLUSION:

As we know that, stress is common in all the organization irrespective of position, language, age, gender,

occupation, etc. It can impact on their satisfaction level and also work performance. Women are stressed more

than the men employees and Married are stressed more compare to unmarried. Stress in the working premises

cannot be removing completely but can be easily decreased while just providing Leisure and rest for employees,

motivating and need to maintain good communication in the working premises.

REFERENCES:

Abdul Abid, Jabbar, Ambreen, Naveed & Javed (2013), “Problem Faced by Working Women in Banking sector

of Bahawalpur”, Interdisciplinary Journal of Contemporary Research in Business, Vol-5, No-1, pp.490-503.

Ashfaq Ahmed & Dr.Mohmmad (2013), “Effect of job stress on employee performance: A study on banking

sector in Pakistan”, Journal of Business and Management, Vol.11, Issue.6, pp.61

Batliwala, S., (1990). Stress: Your Friend or Foe? Wagle Process Studies and Press Pvt. Ltd. Mumbai.

Dr. Manisha, Reena Kumari Singh (2016), “Problems Faced by Working Women in Banking Sector”,

International Journal of Emerging Research in Management & Technology, Vol-5, issue-2, pp-41-47.

K.Kumar & R. Saminathan (2016) “Job Stress among the Employees of Selected Nationalized Banks in

Thanjavur District, Tamilnadu-A Study”, Tactful Management, Vol.4, Issue.8, pp.1-9.

Rosanna Cousins et al (2004), “‘Management Standards’ and work-related stress in the UK: Practical

development”, WORK & STRESS, APRIL_/JUNE 2004, VOL. 18, NO. 2, 113-136.


35

S Uma Mageswari & Dr N R V Prabhu (2014), Occupational Stress - A Study With Reference To Selected

Bank Employees in Chennai Region, IOSR Journal of Business and Management (IOSR-JBM), Volume 16,

Issue 5. Ver. II, PP 115-125.

St. Paul Fire & Marine Insurance Company report.

World Health Organization (2011). Occupational Health: Stress at the Workplace. Available:

http://www.who.int/occupational_health/topics/stressatwp/en/.


36

Empowerment of Women In Relation To National Integration

Dr. Jyoti S. Pattanashetti

Faculty in Research Methodology

B.L.D.E.A’s J.S.S. College of Education

P.G. and Research Centre in Education

VIJAYAPUR,

ABSTRACT

Empowerment is the context of gender and development is most usefully defined as a process rather

than end product; it is dynamic and changing and varies widely according to circumstances. Empowerment

process will take place a form which arises out of a particular cultural, ethnic, historical, economic,

geographical, political and social location; out of an individual’s place in the life cycle, specific life experience

and out of the interaction of all the above with gender relations prevailing in society. Nationalism means love

and devotion for one’s country but not at the cost of hatred for others. A true nationalist is a well wisher of

everyone and he strongly believes in world peace. In fact, the spirit of true nationalism in person tends to make

him a lover of internationalism.

The present study concentrates on the working and non-working women. The research investigator

attempts to explore the relationship between women empowerment and national integration among working and

non-working women and; teaching and non-teaching women. The study comprises of 68 working and

30 non-working women of Vijayapur city, who were educated. Descriptive survey method was employed to

collect the data from secondary school, college women teachers and non-working women. Stratified random

sampling technique was employed to draw the samples from the population. Tools used were standardized

scales, to measure women’s relative empowerment in urban families-M.Sarada Devi and National Integration

Questionnaire- Dr.S.C.Gakhar and Dr.Manjula Narola.

The present study reveals the following findings: There is no positive correlation between

empowerment and attitude towards national integration of women. There is no positive correlation between

empowerment and attitude towards national integration of working women. There is no positive correlation

between empowerment and attitude towards national integration of non-working women. There is no positive

correlation between empowerment and attitude towards national integration of teaching women staff. There is

no positive correlation between empowerment and attitude towards national integration of non-teaching women

staff.

The role of women as teachers also could pave the way for development of communal harmony and

national integration in the society. The influence of teachers on children is very strong only next to the influence

of family especially that of mothers. The value education along with scientific education both are desirable in

making a future citizen who can resist pressures and temptations from various divisive groups and take

decisions based upon the facts of the situation and on that of his or her own secular values rather than basing

them upon narrow parochial interests of religious groups. The aim of education is to develop a scientific temper

and the ability to see the situation from different perspectives. The education could also provide a check on the

development of prejudices and biases among the people. Therefore the women as teachers could provide the

desired education to the children for enabling them to develop as responsible citizens of the country contributing

to its harmonious and integrated development.

INTRODUCTION

There is no chance of the welfare of the world unless the condition of the women is improved. It is not

possible for a bird to fly on one wing.-Swami Vivekananda


37

Women in the society are given less of importance and they are deliberately kept aside in social spheres and

they are practically dumped without having any empowerment to establish their identities in the society, thereby

causing much of exploitation and humiliation. It is for the long status of woman was different from that of men

in terms of their roles and responsibilities both in family and society. Many of their tasks and responsibilities as

well as their needs and constraints had been seriously undervalued. They have to spend excessive amounts of

time and energy in unpaid domestic work such as child care and kitchen work. The cultural, environmental,

social values and legal systems are often biased against women. In contrast, a male is considered as a guarantee

of power, prestige, authority and responsibility in the family and society. This discrimination against women

adversely affects the distribution of economic, social and political powers throughout the world. In the past,

poor women’s lives were nothing but the stories of pain, suffering humiliation and broken dreams.

The recent and rapid change in women’s roles and responsibilities has shown that if women are properly guided

towards productive and useful skills, they can be a formidable resource for national development. The last

hundred years may rightly be called ‘the age of women’s awakening’ in this world. Any exploited society needs

urgent correction. Weaker sections should not be converted into tortured pockets. The status of a better half is

met not just socially but also emotionally and economically. A coin is valid only when both sides are good and a

scissor is effective only when both blades are fine, otherwise erosion and ineffectiveness are the result. A

woman is both valuable and inevitable. It is an accepted fact that a woman plays a matchless role in the progress

of a man and the family. She is Jeevan Shakti of the family. The family, the society and even the country can

draw valuable benefits from a woman. She assumes the roles of the leading force and a balancing factor in the

society. The fraternal fragrance which emanates from a woman in a country is endowed with the prosperity to

make her depends dynamic and economically prudent.

Empowerment is something that makes a person capable to perform or to act according to his/her own choices

and value judgment. It is empowerment that releases one from lack of power, lack of speech and lack of

freedom. These three are the basic components of human rights to maintain a sustainable life amid all societal

hazards and disturbances. Women empowerment is now considered to be supported so as to authorize the

women in exchanging their views with the society, to combat with societal customs and prejudices that prohibit

their overall development and prosperity. It is highly realized that when women are given education and training

and are fortified with power, they can become more valuable and active members of the society. Their

empowerment concerning social and political issues will help to reduce the imbalance existing in the society.

The empowerment of women is fundamental to reduce poverty, hunger and malnutrition. Gender equality and

women‘s empowerment are important factors for the social and economic development of a nation. The

promotion of gender equality and empowering of women is one of the eight Millennium Development Goals

(MDG) to which India is a signatory. For which the first and foremost is the gender gap need to be assessed.

Women’s empowerment may be defined as “a bottom-up process of transforming gender power relations,

through individuals or groups developing awareness of women’s subordination and building their capacity to

challenge itof power relations (Baden and Reeves, 2000).

Many United Nations (UN) conferences have advocated that women’s empowerment is central to sustainable

development. The Copenhagen Declaration of the World Summit on Social Development (WSSD) is a case in

point. WSSD called for the recognition that empowering people, particularly women, to strengthen their own

capacities is a main objective of development, and that empowerment requires the full participation of people in

the formulation, implementation and evaluation of decisions determining the functioning and well-being of


38

societies. The report of the United Nations Fourth World Conference on Women is another good example to

mention. It called its platform for action on agenda for women’s empowerment (Baden and Oxaal, 1997).

Political status: Though initially unrepresented, women are emerging gradually as a small but significant

political force in the country. The Women’s Reservations Bill has been passed in the Rajya Sabha (Upper

House), and is yet to be passed by the Lok Sabha (Lower House). In 1993, the 73rd and 74th Constitutional

Amendment provided for one third reservation for women in local bodies both urban and rural (panchayat).

Special reservations for women from Scheduled Castes and Tribes have enabled their active participation in

mainstream politics. Gender budgeting involving grassroots-elected women representatives are being used for

advocacy in several places. However, the overall scenario indicates underrepresentation of women in

governance and decision-making positions in all areas of public life in the country.

Economic status: The economic status of women in the country has undergone many changes. Up to 1991,

India had a planned economy which enabled planned growth. Post 1991, the liberalisation and globalisation

phase had a serious impact on women workers. While new work arenas such as information technology and

biotechnology absorbed more and more women, there was also a marked increase in the presence of women in

the unorganised or informal sector. Leading national financial institutions, like the Small Industries

Development Bank of India (SIDBI), the National Bank for Agriculture and Rural Development (NABARD),

Swayamsidha, or the Integrated Women’s Empowerment Programme (IWEP), and the Rashtriya Mahila Kosh

(RMK), have played a significant role in promoting micro-credit and the economic empowerment of women

Over the years, there have been a number of important ad hoc bodies that have reported on issues critical to

women in the world of work. Notable among these are: ƒ

� As noted above the Committee of the Status of Women in India (1971-74) was the first such effort

which raised women’s issues and the report led to new legislation such as the Equal Remuneration Act

1976. ƒ

� The National Commission on Self Employed Women and Women in the Informal Sector (1987-88) –

produced a report entitled Shramshakti which makes a number of important recommendations for

legislative changes. ƒ

� The National Commission on Rural Labour (1991) – produced a report which included the

consideration of rural issues as they affect women and recommended increased self employment, wage

employment and diversification in order to redress inequality. It called for the amendment of

matrilineal inheritance laws, training in technological skills, and increased legislative protection for

home workers. ƒ

� The National Commission on Labour (1966-69) established important principles of labour policy in

India which has included an emphasis on women. This was followed by the second National

Commission on Labour (2002) that set up a Task Force on Women and Children and examined

rationalization of labour laws and legislation for unorganized or informal workers ƒ

� More recently, the National Commission for Enterprises in the Unorganized Sector (NCEUS) (2007)

has acknowledged the need for separate policy attention for women, especially home based workers. ƒ

In spite of the many efforts at elevating the socio-economic status of women in the country,

problems continue to persist – the falling sex-ratio and the increase in female feticide and infanticide in

certain parts of the country.

National Integration:


39

Education Commission Report (1964-66): ‘National Integration includes a confidence in nation’s future, a

continuous rise in the standard of living, development of feeling of values and duties, a good and impartial

administrative system and mutual understanding.’

National Integration Conference Report(1961): ‘National Integration is a psychological and educational

process involving the development of a feeling of unity, solidarity and cohesion in the hearts of people, a sense

of common citizenship and a feeling of loyalty to the nation.’

The development of an ability, to accept the differences with other members of larger society belonging to

different groups , will go a long way in preventing communal clashes as well as boost national integration.

The role of women in this regard becomes important as they are the ones who takes the maximum responsibility

of upbringing of the child during the child`s formative years of life. These early years of child`s life are crucial

for the mental development (including attitudes and prejudices) of the child. Therefore it’s the women, who

could develop sound mental health among children who would become the future citizens. The secular values

(like tolerance, respect of others etc) inculcated in these formative years among children prove to be a deciding

factor in the child`s development in later years. It also depends upon the continuous learning which the mother

provides to the children throughout its initial learning stage as well as moral and emotional support from mother

which makes the child feel secure, thereby reducing the tendencies of developing aggression towards other

people, in the future

NEED FOR THE PRESENT STUDY

Women are looked upon as inferiors in almost all societies and groups. The present study helps to recent

recognition of women in all progressive societies and groups. No development is complete without women. But

their role was ignored generally. It slowed down the pace of progress and even reduced the progress. The study

concentrates on working and nonworking women.

The greatest need of the country is to strengthen itself through national unity. National unity is essential for our

country at any time. It is doubly so for India in view of varied compositions of her population, the vast distance

that separates her different parts, the vastly varying climate, physical features that condition the daily fires and

occupations of the people and above all, because of the period of rapid change –social, political, economic and

technological through which she is passing to discover her bearings in the modern world. We should have full

faith in nationalism and national understanding. The time has surely come when every Indian must look within

and ask for himself whether he is with the nation or with a particular group. This is the challenge of our time

that every man, woman and child must face.

.The role of women as teachers also could pave the way for development of communal harmony and national

integration in the society. The influence of teachers on children is very strong only next to the influence of

family especially that of mothers. The value education along with scientific education both are desirable in

making a future citizen who can resist pressures and temptations from various divisive groups and take

decisions based upon the facts of the situation and on that of his or her own secular values rather than basing

them upon narrow parochial interests of religious groups.


40

The research investigator attempted to study the correlation between women empowerment and national

integration. It not only adds to the pool of scientific knowledge in social sciences but will also result in the

meaningful conclusions with their level of empowerment as well as their level of patriotism. It may reveal the

aims of empowerment. Empowerment may be different at different groups. It may merely aim at improving

women’s self decision and joint decision in personal affairs, children’s affairs and household affairs.

Empowerment process starts from one woman either individually or collectively and then reaches other women,

so it is rather a horizontal approach than top down approach.

OBJECTIVES OF THE STUDY

1. To investigate the correlation between Empowerment and Attitude towards National

Integration of women.

2. To investigate the correlation between Empowerment and Attitude towards National

Integration of Working women.

3. To investigate the correlation between Empowerment and Attitude towards National Integration of

Nonworking women.


Teaching women staff.


Non-Teaching women staff.


University women lecturers.


College women lecturers.


Secondary School women Teachers.


women students.


Housewives.

VARIABLES USED IN THE STUDY

Independent Variable:

Gender-Women

Dependent Variable:

1. Empowerment: To analyze the correlation between the impact of occupational status of women and their

empowerment

2. National Integration: To analyze the correlation between the impact of occupational status of women and

their attitude towards National integration

Moderate Variable:

• Working Women and Non-Working Women

• Teaching and Non- Teaching

• Students and Housewives

• University Women Lecturers, College Women Lecturers and Secondary School Women Teachers


41

DESIGN OF THE STUDY

Research Method: The research investigator selected the Descriptive Survey method for the data collection,

which deals with the relationship between Variables, the testing of Hypotheses and the development of

generalization, principle or theories of universal validity.

Population and Sample: The Qualified women in Vijayapur city comprise the population of the present study.

The Stratified Random Sampling Technique was employed to draw the sample of 98 women of Vijayapur city

SAMPLING DESIN

Tools: In the present study, the following tools were used to collect the data.

• Standardised Scale to measure Women’s Relative Empowerment in Urban Families- M.Sarada Devi

The empowerment Scale was validated against self-esteem scale developed by Kapadia Verma(1989). As the

scale was found to be both reliable and valid, it evolved as a standard empowerment scale for women. The

empowerment scale studies the construct of power consciousness and power awareness among women. This

standardized scale includes the following dimensions in the empowerment scale.

• Self Decisions- Personal Affairs, Children’s Affairs and Household Affairs

• Joint Decisions- Personal Affairs, Children’s Affairs and Household Affairs

Scoring Key

Items Resources available

Access to Resources Decision making

Action

A S N A S N A S N A S N

Numerical Value 3 2 1 3 2 1 3 2 1 3 2 1

� A-Always

� S-Sometimes

� N-Never

2. National Integration Questionnaire –Dr.S.C.Gakhar and Dr.Manjula Narola

The tool consists of 82 questions

Statistical Techniques employed: Mean, Standard Deviation, Carl Pearson’s Coefficient of Correlation

ANALYSIS AND INTERPRETATION OF THE DATA

Research investigator collected the data and framed the research hypotheses on the basis of objectives of the

study and translated into null Hypotheses to test statistically. The collected data was systematically organized

and tabulated for the analysis as follows.

Hypothesis 1. There is no positive correlation between Empowerment and Attitude towards

National Integration of Women

Table 1.Correlation between Empowerment and Attitude towards National Integration of Women

Independent Variable

Dependent Variable

N Mean S.D. r-Table Value@ 0.05 level

Obtained r Value

Level of Significance

Empowerment

98

69.6

14.7

Non


42

Women National Integration

98

54.9

10.5

0.196 0.098 significant

Interpretation: From the table it is evident that, the obtained r-value is less than the table r-value. So the empowerment and

attitude towards national integration are insignificantly correlated at the 0.05 level of significance. Hence the

formulated null hypothesis is accepted, Therefore, it was concluded that there is no positive correlation between

empowerment and attitude towards national integration of women,


National Integration of Working women

Table 2. Correlation between Empowerment and Attitude towards National Integration of

Working women

Interpretation:

From the table it is evident that, the obtained r-value is less than the table r-value. So the empowerment and


formulated null hypothesis is accepted, Therefore, it was concluded that there is no positive correlation between

empowerment and attitude towards national integration of working women,


National Integration of Nonworking women


Nonworking women

Interpretation:




Dependent Variable


Obtained r Value


Working women

Empowerment

68

68.6

10.5

0.235

0.112

Non significant

National Integration

68

56.31

11.0


Dependent Variable


Obtained r Value


Nonworking

women

Empowerment

30

75.06

12

0.361

0.145

Non significant


30

51.7

8.7


43

formulated null hypothesis is accepted. Therefore, it was concluded that there is no positive correlation between

empowerment and attitude towards national integration of nonworking women.


National Integration of Teaching women staff


Teaching women staff

Interpretation:




empowerment and attitude towards national integration of Teaching women staff.


National Integration of Non-Teaching women staff


Non-Teaching women staff

Interpretation:


Dependent Variable


Obtained r Value


Teaching women staff

Empowerment

33

70.76

7.14

0.333

0.019

Non significant


33

56.5

7.8


Dependent Variable


Obtained r Value


Non-Teaching women staff

Empowerment

35

66.78

10.1

0.333

0.062

Non significant


35

56.4

2.2


44




empowerment and attitude towards national integration of Non-Teaching women staff.


National Integration of University women lecturers


University women lecturers

Interpretation:




empowerment and attitude towards national integration of University women lecturers.


National Integration of College women lecturers


College women lecturers

Interpretation:




empowerment and attitude towards national integration of College women lecturers.


National Integration of Secondary School women Teachers


Dependent Variable


Obtained r Value


University women lecturers

Empowerment

11

73.6

8.4

0.602

0.440

Non significant


11

52

30


Dependent Variable


Obtained r Value


College women lecturers

Empowerment

11

69.5

8.6

0.602

0.527

Non significant


11

63.3

9.8


45


Secondary School women Teachers

Interpretation:




empowerment and attitude towards national integration of Secondary School women Teachers.


National Integration of women students.


women students

Interpretation:




empowerment and attitude towards national integration of women students.


National Integration of Housewives.


Housewives


Dependent Variable


Obtained r Value


Secondary School women Teachers

Empowerment

11

72

8.4

0.602

0.226

Non significant


11

57.4

5.2


Dependent Variable


Obtained r Value


Women Students

Empowerment

15

69.8

13.5

0.514

0.128

Non significant


15

55.16

9.6

Independent

Variable

Dependent

Variable

N Mean S.D. r-Table

Value@

0.05 level

Obtained

r Value

Level of

Significance


46

Interpretation:




empowerment and attitude towards national integration of Housewives.

CONCLUSION

The study was intended to see whether there was a positive relationship between the empowerment and

national integration among women, either working, or teaching at various stages or nonworking or nonteaching.

But the study revealed that working and teaching women in secondary schools, college and university;

nonworking and nonteaching women were not possessed any positive correlation between empowerment and

national integration.

It is not that the empowered women will have more positive attitude towards national integration or even it is

not that working women will have more positive attitude towards national integration or it is not that

nonworking women will have more positive attitude towards national integration or it is not that teaching

women will have more positive attitude towards national integration or it is not that nonteaching women will

have more positive attitude towards national integration.

The women play an important role in resolving various types of conflicts which endanger the social integration

and could lead to balkanization of society. The different roles which the women play in creating communal

harmony are that of a mother, teacher, wife, friend, executive, member of self help group etc. The women can

play similar as well as other different roles in resolving newer conflicts thereby contributing to the national

integration.

The women directly influence the future generations of any society through their everlasting influence on the

children in their crucial formative years. The mothers are the first school of children for inculcation of social

values of the society and for giving the direction of growth and development of the child. The inculcation of

attributes of national character among children will develop citizens who are better integrated in the social fabric

of the nation, thereby strengthening the national integration. Thus the women play a multifaceted and

comprehensive role in national integration. So proper training regarding National integration should be given at

every stage of her formal education.

The aim of education is to develop a scientific temper and the ability to see the situation from different

perspectives. The education could also provide a check on the development of prejudices and biases among the

people. Therefore the women as teachers could provide the desired education to the children for enabling them

to develop as responsible citizens of the country contributing to its harmonious and integrated development.

Housewives

Empowerment

15

72.5

12.5

0.514

0.410

Non significant


15

48.6

6.12


47

REFERENCES

• Aggarawal Y.P., (1986), ‘Statistical Methods’, Sterling publishers Pvt Ltd, New Delhi.

• Best, J.W., & Kahn,J.V.,(2009), Research in Education, Prentice Hall of India, New Delhi

• Buch, M.B,(1983)., Third Survey of Research in Education, New Delhi NCERT

• Buch, M.B. (1991), Fourth Survey of Research in Education, Vol I NCERT, New Delhi.

• Chandrashekar, C.P.; Ghosh, J. “Women in India: A status report”, in Business Line, available at:

http://www.thehindubusinessline.com/2002/09/03/stories/ 2002090300080900.htm [03 Sep 2002].

• Confederation of Indian Industry. (2005), Understanding the levels of women empowerment in the

workplace: A study (New Delhi, CII)

• Digmurti Bhaskar Rao Digmurti Pushpalata, (2003), International Encyclopedia of Women, Education

and Empowerment, Vol.II, Discovery Publishing House, New Delhi

• http://www.peacecorps.gov/wws/articles/global-issues-gender-equality-and-womens-empowerment.

• Laxmidevi,(1998), Women Empowerment Social Improvement, Anmol Publications Pvt Ltd New

Delhi

• Laxmikantam, M,(2014), Status of Women in Society: R& D Initiatives for Women Scientists nd

Technologists, University News, October,15-19,52(41)

• NCERT (2000), Fifth survey of Educational Research (vol. II, Abstract), New Delhi.

• O.R. Krishnaswamy and M.Ranganatham(2009),‘Methodology of Research in Social Sciences’,

Himalaya Publishing House Pvt. Ltd, Mumbai

• Piu Sarkar,(2015),Destitution of Women for Lack of Empowerment: Its Reflection in Literature,

University News, April,53(13)

• P.L. Bhandarkar and T.S. Wilkinson(2009), ‘Methodology and Techniques of Social Research’,

Himalaya Publishing House Pvt. Ltd, Mumbai

• Ram Ahuja (2001), ‘Research Methods’, Rawat Publications Jaipur

• Sangeeta Purushottam, (1998),The Empowerment of Women in India, Sage Publications New Delhi

• Saima Siddiqi,(2014), Women Empowerment in Higher Education, , University News,October,6-

12,52(40)

• Siegel, A.F. (1988), ‘Statistics and Data Analysis An Introduction’, John Wiley and Sons, NewYork.

• Soti Shivendra Chandra (2004), ‘Research in Education’, Atlantic Publishers, New Delhi

• .http://www.education.nic.in

• http://www.educationtimes.com

• http://www.educationworld.com

• http://www.nationalintegration.com

• http://www.peacecorps.gov/wws/articles/global-issues-gender-equality-and-womens-empowerment

• http://www.womenempowerment.com


48

GLOBAL ECONOMIC CRISIS

Prof. Veerabhadrappa I Tilaganji,

Asst Prof. in Economics, Govt. First Grade College, Dist :Belagavi

Global Economic Crisis

Economic Crises is defined as a state of great disturbance, conversion or uncertainty. Some would like to

characterize the current situation as a newer version of volatility, uncertainty, complexity and ambiguity.

In 2008-09 the global financial crises engulfed the entire banking sector with some exceptions in Asian

countries like India and others. Especially banking sector world over collapsed due to default of mortgage loans.

Lehman Brothers was reduced to milestone to carbonate the melt down. The present situation though not

completely similarly is seeing the global economy falling off a cliff. It is said that the obstacles faced by global

economy are not rooted in economies but in politics and ideology.

The private sector is responsible for creating an atmosphere of inequality and environmental degradation.

More than eight years have passed since the onset of the global financial crises in 2007. Yet the world

economy is not out of the woods yet. Central banks of Europe, UK and Japan continue to remain in an

accommodative mode, a clean indication that growth and inflation have not recovered to sustainable level.

China started showing signs of weakening /, and fears of further weakening of Chinese economy, its falling

equity market and the depreciation of its currency loom large over global economic prospects.Apart from

uncertain recovery prospects in the major reason behind such turbulence is the real prospect of a China

slowdown. Global financial crises has been largely supported by Chinese growth and demand particularly for

commodities like oil , indust5rial metals etc., needed to support the huge infrastructure build up during period

2005-14. There are now indications that China’s efforts of rebalancing its economy are facing serious

challenges, at least in the near term. An out flow of capital from China, particularly in last one year. China’s

forex reserves have come down from US$39 trillion to US$ 32 trillion. The Chinese currency has under

increasing pressure. The stick markets have sole off and lost nearly 50 per cent of their value since 2015 . The

prospect of effectively containing the pressure of a more open capital account also looks uncertain.

Economic performance of commodity exporting economies like Australia, Canada, Brazil, Russia etc has

taken a beating and this has added to the weakening global outlook. Money has started to move out of risky

assets like, equity, commodity etc to safe heaven currencies like US dollar, Euro and Japanese Yen. The high

segment of the financial sector has already been suffering over 2015.But lately the health of banks, especially

the ones who had large exposure to commodities including energy sector,has also called into question. Top

banks in Europe have seen their stock prices falling sharply and they go near to criseslevels. In UK,

US,Australia, Japan are all to a lesser extent similarly affected.

The financial sector is thus again under pressure. The emerging market currencies and equities have come

under pressure. Some of the emerging market and developing economies, commodities exporting countries have

however seen their currencies recouping a part of the losses during lost few months on the back of recovery in

international crude and commodityprices.

So the global economic growth has slowed down but has not really reversed the direction. The IMF in its

January 2016 Fears of a 2008 like crises may still be a long way of unless things get a lot worse in china


49

Deflationary period and the increase in the real value of debt could weaken the debt repayment capacity of many

economies and corporations. Low interest rates which cast the shadow on the capabilities central bank to

stimulate growth and stability make the outlook on global financial market’s highly un-certain.-critical issues

relating global geo-political developments and idiosyncratic, socio-political challenges being faced by many

advanced economies would have a spill-over impact on the economic out-look and have to be view.

-----

Global Economic Crises and Its Impact on India

India has been variously hailed as “beacon of stability”, “heaven of stability “and “bright spot” amidst a

slowing global economy. This flows from the fact that India is the best performing large economy [GDP close to

US$ two trillion]With a 7.6 per cent estimated growth rate for financial year 2016 Both IMF and World Bank in

their January 2016 and 17. Inflation has been controlled and the balance of payments position looks healthy.

Current Account Deficit [CAD] has narrowed to 1.4 per cent of GDP[FY 16] from the high of 4,8 per cent in FY

13.

Another area that has been affected by global weakness is the exports sector. India’s exports have been in

contraction mode for fourteen successive months although there are indications of a sequential bottoming out.

While the CAD has improved, the external sector has been contracting. Though India’s foreign exchange

reserves.

The inter linkage of Indian economy with the rest of the world has been growing at a rapid pace and

therefore, global developments influence the domestic economy in a much bigger way than before. The falling

export for a prolonged period is an issue that needs serious attention. What is worrying is the fact that our

market shares have fallen from 1.7 in 2011 per cent to 1.6 per cent in 2015. Indian goods exports are sensitive to

external demand and international relative price competitiveness.

The retail inflation in India as measured by consumer priceindex rose from for the sixth straight month in

January 2016. The CPI for January at 5.69 per cent was the highest figure recorded since August 2014. Similarly

food inflation at 6.85 per cent in January was also highest In 17 months. Despite these numbers we are on track

as far as meeting the inflation targets is concerned in near term. The reserve Bank has taken various steps to

address this issue of stressed assets of the banks. After a comprehensive asset quality review, banks have

initiated the process of cleaning up balance sheets by March 2017.

Implementation of Reforms

There is an imperative need to implement the regulatory reforms at the global level with emphasis on the

transformacy. Countries need to improvement policies that are growth oriented. More focus needs to be given

on fiscal rebalancing by introducing tax and energy price reforms. It is also important that countries lay

emphasis on upgrading their economic structures by legislating their labor reforms, infrastructure, health care

and education, besides bringing positive changes in their trade policies. It is a fact there are several road blocks

in implementing reforms considering issues like trade migration and global climate changes which can be

mitigated by international co-operation.

Conclusion

The current situation as a great opportunity for India to position itself as a leader who would shape the world

economic order in years to come. But the real challenge would be to sustain the improved fundamentals over a

longer period and contain the spill over effect from other parts of the world. While other countries may take

measures best suited to them our Focus should continue remain improving domestic macro-economic


50

fundamentals including addressing the infrastructure bottlenecks , ensuring price stability , narrowing current

account deficit, continuing fiscal reforms, increasing the competitiveness of our products and services for

global market and improved governance.

References; ----

1...Yojana

2. The Economic Times

3. Business Line

4. Southern Economist

5. Newspapers.

6. Economic Surve

y-2016.


51

AN EMPERICAL INVESTIGATION ON WORK LIFE BALANCE OF KSRTC EMPLOYEES

Prof. Brijmohan Vyas Assistant Professor

Department of Management Studies Basaveshwar Engineering College, (Autonomous) Bagalkot-587103

Karnataka, India Abstract: In terms of Indian Context, the concern over work-life balance is gradually becoming a common talk. When employees go back to their homes, they should not carry any organisational stress with them. An individual has two roles to play Personal and Professional; each role having set of demands. When such role demands overlap, multiple problems are faced leading to losses for all concerned: the individual, the family, the organization. With the increasing levels of stress in the work life and at the same time necessity to manage the household has given tremendous boost to the concepts like work life balance (WLB). This study aims to examine the importance of work life balance of male bus drivers and conductors. Work- Life Balance means, meaningful daily achievement and enjoyment in each of four life quadrants work, family, friend and self. To analyse the work life balance of the male KSRTC employees and to identify the key factors influencing their work life balance is the main objective of this study. The Sample size is 20 percent of total male bus drivers and conductors. Questionnaire method is used for the survey. 30percent of male bus drivers and conductors accept that, they are able to balance their personal life and work life. The Employees who have the tools to balance their professional and personal lives are healthier, happier and more productive. Employers can assist employees to experience work-life balance by offering such opportunities as flexible work schedules, paid time off policies and company-sponsored family events and activities. Keywords: Work-Life balance, Male Bus Drivers and Conductors, Personal life, Work life. I. INTRODUCTION Work- Life Balance is abroad concept including proper prioritizing between ‘Work’ such as career and ambition, on the other hand and ‘Life’ such as health, pleasure, leisure, family and spiritual development. The expression "work–life balance" was first used in the United Kingdom in the late 1970s to describe the balance between an individual's work and personal life. In the United States, this phrase was first used in 1986. It means creating a balance to schedule an equal number of hours for each of the various work and personal activities. The right balance professional and personal life of today will probably be different tomorrow. Thus the core of effective work life balance definitions is two key concepts: daily achievement and enjoyment. Work-life balance is a concept that supports the efforts of employees to split their time and energy between work and the other important aspects of their lives. Work-life balance is a daily effort to make time for family, friends, community participation, spirituality, personal growth, self-care, and other personal activities, in addition to the demands of the workplace. Achievement and enjoyment are the front and back of the coin of value in life. Person can’t have one without the other. According to various surveys conducted on Work-Life Balance near about 60 percent of respondents said that they are not able to find out a balance between their Life and Work. Achieving Work- Life Balance is easy. Work-Life Balance is about effectively managing the juggling act between paid work and other activities that are important to us, including spending time with family, taking part in sports and recreation, volunteering or undertaking further study. Organizations have started introducing various schemes to attract, retain employees and increase productivity.

Work-Life initiatives improves employee performance by reducing absenteeism, lateness, health care and sick-leave and hence their related costs. To remain competitive Companies have started implementing flexible work options like: Childcare, Wellness programs, financial planning and Concierge services. These work/life benefits encourage employees to be more productive and committed to the company.

A) SCOPE OF THE STUDY Work/life balance is gradually becoming a major issue in India. This study focuses on finding out the factors affecting the Work Life Balance of KSRTC employees. Further, this study could come up with identifying work life balance policies, enhancement of working relationships between colleagues and increase in level of production and satisfaction, and point out ways to decrease the stress and burnout in work/life.


52

B) OBJECTIVES OF THE STUDY

1. To know the perception of the employees towards their personal life and work life.

2. To identify the key factors influencing their work life balance.

3. To analyze the work life balance of the male KSRTC employees.

C) LIMITATIONS OF THE STUDY

1. The undertaken study is only related to work life balance issues of employees employed in KSRTC sector.

2. It excludes the female employees.

3. Only Drivers and conductors are considered in this study.

4. Route allocation for drivers and conductors is not considered in this study.

II.REVIEW OF LITERATURE

Prof. B. S. Kadam (2012) “Work-life balance: Dilemma of modern society” stated that work life balance of women bus conductors and said it is important to achieve a balance between paid employment and personal life. Delecta.P (2011) in his article “work life balance” stated that Work life imbalance affects the overall well-being of the individual causing such problems as dissatisfaction from life, prolonged sadness. Steven Sauter, chief of applied psychology and ergonomics, states that, the work place has become the source of stress and problems caused by stress have become a major concern to both employers and employees and Symptoms of stress are manifested both physiologically and psychologically. Dr. Smita Singh (2014) “Measuring Work-life Balance in India” The study focuses on understanding the work/ life related issues for working professionals. Deepti Sinha, in her article “Study of Work Life Balance” states that many employees today—both male and female—their lives are becoming more consumed with a host of family and other personal responsibilities and interests. Keneya Research Institute reveals that, the employees, who were more favorable towards their company’s efforts to support Work-Life Balance. They have great pride in their organization. It was indicated a much lower intend to leave organization. It increased more job satisfaction. Kathleen Gerson, sociologist, recently states that, young people are searching for new ways to define care that do not force them to choose between spending time with their children and earning an income and are looking for definition of personal identity that do not pit their own development against creating committed ties to others.

III.RESEARCH DESIGN & METHODOLOGY a) Research Type: Descriptive Research

Research design proposed for the study is ‘Descriptive’ type of research design. This type of research deals with quality of responses from the respondents, attitudes, interests, technical skills, experience, behavioral, beliefs and values, emotions, personality, self-concept etc.

b) Target Population

The target populations of the research are employees in KSRTC depot.

c) Sampling Technique and Sample Size

Sampling Technique: Simple random Sampling Sample Size: 100 Drivers-50 and Conductors-50

d) Data Collection Method: Data is collected through primary as well as secondary sources. Through

primary source the data is collected through filling of questionnaire from male employees. The structured questionnaire is prepared. Secondary Data is collected from journals and Research articles to support the research.

IV.DATA ANALYSIS AND INTERPRETATION

Socio-demographic profile of the male bus Drivers and Conductors

TABLE NO. 1

AGE WISE DISTRIBUTION OF RESPONDENTS

Age Group Percentage

Less than 25 years 10

25-35 40

35-45 25

45-55 17

Above 55 years 8


53

TABLE NO. 2

EXPERIENCE WISE DISTRIBUTION OF RESPONDENTS

Experience Percentage

Less than a year 10

1-5 years 38

5 years and above 52

TABLE NO. 3

INCOME WISE DISTRIBUTION OF RESPONDENTS

Income Percentage

Less than 1 lakh 15

1-2 lakh 53

2-3 lakh 24

More than 3 lakh 8


54

Table no 1, 2, and 3 shows that 40 percent respondents are in the age group of 25 to 35 years. 52 percent respondents have experience more than 5 years and 53 percent respondents are earning income between 1 to 2 lakh per annum.

TABLE NO. 4

WORRY ABOUT WORK WHEN THEY ARE NOT ACTUALLY AT WORK PLACE

Worry Percentage

Never 10

Rarely 10

Sometimes 15

Often 15

Always 50

The above table shows that, 50 percent of the respondents always worry about work when not at work and 15 percent of the respondents sometimes worry about work whereas only 10 percent respondents accepts that, they never worry about work when not at work.

TABLE NO.5

ABSENT DURING IMPORTANT EVENTS OF PERSONAL LIFE

Absent Percentage

Never 5

Rarely 10

Sometimes 10

Often 15

Always 60


55

The above table shows that, 60 percent of the respondents always remain absent during important events of their personal life and it can be interpreted that most of the Drivers and Conductors missed important events of their personal life due to their work. The reasons might be travelling away from home and they are not getting enough leaves.

TABLE NO.6

FACTORS WHICH AFFECTS IN BALANCING WORK & FAMILY COMMITMENTS

The above table shows that, 50 percent of the respondents said compulsory overtime always affects, 45 percent of the respondents said shift work affects many times, 45 percent of the respondents said meetings after office hours always affects, 50 percent of the respondents said long working hours always affects, 42 percent of the respondents said negative attitude of peers affects many times, 38 percent of the respondents said negative attitude of supervisors affects many times, 60 percent of the respondents said work pressure always affects in balancing their work and personal life.


56

The above table shows that, 30 percent of the respondents said Excessive household work always affects, 35 percent of the respondents said travelling away from home always affects, 28 percent of the respondents said attending social function always affects, 30 percent of the respondents said negative attitude of family always affects and 53 percent of the respondents said family responsibility always affects in balancing their work and personal life.

TABLE NO.7

FACTOR WHICH MOTIVATES THEM TO WORK

Factors Percentage

Personal Satisfaction 25

Financial Independence 50

Support from family 25

The above table shows that, 50 percent of the respondents said financial independence is a factor which motivates them to work, 25 percent of the respondents said personal satisfaction and support from family motivates them to work.

TABLE NO.8

ABLE TO BALANCE WORK AND PERSONAL LIFE


57

Balance Percentage

Yes 30

No 70

The above table shows that, 30 percent of respondents accept of that, they are able to balance their personal and

work life where as 70 percent of respondents stated that they were unable to balance their personal and work

life.

Following Factors have been identified which will influence the work life balance

Professional Factors- Compulsory overtime, Shift work, Meetings/training after office hours, long working

hours, Negative attitude of peers and colleagues at work place, Negative attitude of supervisors, Work pressure

etc.

Personal Factors- Excessive Household work, travelling away from home, Attending social function, Negative

Attitude of family, Parenting issues, Negative Attitude of spouse, Family responsibility etc.

V. FINDINGS AND SUGGESTIONS

The major findings of the study work life balance of KSRTC employees are as follows:

� 68% of the KSRTC employees are married and 32% of the KSRTC employees are unmarried Marital

Status also one of the important factor.

� 40% of the employees are belonging to the age group of 25 to 35 years.

� 52% of the employees have experience of more than 5 years.

� 53% of the employees are earning income between 1 lakh to 2 lakh per annum.

� 50% of the employees always worry about the work when they are not at work,

� 60% of the employees always get absent during important events of their personal life.

� 50% of the employees said professional factors like compulsory overtime always affects, 50% of the

employees said long working hours always affects, 60% of the employees said work pressure always

affects in balancing their work and personal life. 53 % of the employees said personal factors like

family responsibility always affects in balancing their work and personal life.


58

� 50% of the employees said that financial independence is a factor which motivates them to work.

� 30% of male drivers and conductors accept that, they are able to balance their personal life and work

life where as 70% percent of male conductors and drivers said that they are unable to balance their

personal life and work life.

It has been suggested that employees can keep track or maintain a record of their weekly performance in work

life and also in family life. It will help to correct their mistakes. Most of the employees are unaware about the

work-life balance and its policies. So, the organization should create awareness and give special work family

classes for them. The organization may concentrate on create a separate counseling department for asking

employees difficulties and problems. To reduce stress, the organization must provide proper training to improve

their mental and physical health. Leave work at work they should not carry their mental strain and worries from

the work even after they finish their duty. Further, performance linked pay or at least additional

rewards/incentives for superior performance can be initiated. Right now, in absence of such incentives, the

Drivers and Conductors of State transport undertaking have developed an impersonal detached view and are not

really inclined to achieve benchmark results in terms of increased route income, reduced accident and

breakdown rates, higher KMPL (Kilo Meter per Liter) etc. So, appropriate scheme for rewarding their efforts

with monetary incentives must be initiated.

VI.CONCLUSION

From the above discussion, it is reasonable to conclude that Wok life Balance of Male Bus Conductors and

Drivers in the Karnataka State Road Transport Corporation it was found that, among the respondents 30% of the

employees accept that they are able to balance their personal life and work life. The study reveals that the

existing levels of work life balance among the Class-III-Operative level employees (Drivers and Conductors) of

the KSRTC. There is an expectation among staff that an employer should be sympathetic towards employees’

needs by providing work life balance policies and flexible working arrangements. Work life balance enables

them to work better. Careful planning and personal effort is important for balance in work and personal life.

It has been suggested that the Male bus conductors should plan, prioritize and schedule as efficiently as possible.

It has been suggested that, the employers can facilitate work life balance with many schemes that can attract

employees and satisfy their needs. Life as a whole is composed of many other aspects along with work. An

individual’s well-being is concerned with both domains work as well as family. Balancing work and family is

essential for the life satisfaction which includes job and family. So, the organizations are in need to concentrate

on work-family balance policies which leads an employee’s satisfaction.

References

1. Kadam.B.S 2012, “Work-life balance: dilemma of modern society a special reference to women bus

conductor in Maharashtra state road transport”, International journal of Business Economics &

Management Research, vol.2 issue 2, ISSN 2249 8826.

2. Duxbury and Higgins 1984, Frone and Russell 1978.

3. Sinha Deepti 2013 “Study of Work Life Balance @ CCIL (India), NOIDA”, Journal of Management

Sciences and Technology.


59

4. Clutterbuck, David. (2003). “Managing the Work-Life Balance”, UK: Chartered Institute of Personnel

and Development

5. Singh Dr.Smita 2014 “Measuring Work-life Balance in India”, International Journal of Advance

Research in Computer Science and Management Studies, Volume 2, Issue 5 ISSN: 2321-7782.

6. P.Delecta, “WORK LIFE BALANCE”, International Journal of Current Research, Vol. 33, Issue, 4,

pp.186-189.

7. Lakshmi.K.Santhana 1 and Gopinath.S.Sujatha 2 2013 “Work life balance of women employees – with

reference to teaching faculties”, International Monthly Refereed Journal of Research in Management &

Technology, ISSN – 2320-0073.

8. Frankel and Barbara, 2007. Who Really Benefits From Work/Life?” 6 Diversity lnc. 20 (March).

(Available via Ohio link).

9. Adelman PK. Multiple roles and health among older adults. Res Aging 1994; 16:142-66.

10. Greenhaus J H, Beutell N J. Sources conflict between work and family roles. Acad Manage Rev 1985;

10:76-88.

11. Fu CK, Shaffer MA. The tug of work and family. Personnel Rev 2001; 30:502-22.

12. Reskin B, Padavic I. Women and Men at Work. Thousand Oaks: Pine Gorge Press; 1994.

13. Hughes, J. and Bozionelos, N. (2007). “Work-life balance as source of job dissatisfaction and

withdrawal attitudes: An exploratory study on the views of male workers”,


60

IMPACT OF EDUCATIONAL STATUS ON WOMEN’S EMPOWERMENT

Dr(Smt) B.Y.Khasnis

Asst Prof., BLDEA’s JSS College of Education, VIJAYAPUR

Abstract

In the past, poor women’s lives were nothing but the stories of pain, suffering humiliation and broken and

broken dreams. The recent and rapid change in women’s roles and responsibilities has shown that if women are

properly guided towards productive and useful skills, they can be a formidable resource for national

developments. The nineties was the decade of woman. Women empowerment means emancipation of women

from the vicious grips of social, economical, political, caste and gender-based discrimination. It means granting

women the freedom to make life choices. Women empowerment does not mean ‘deifying women’ rather it

means replacing patriarchy with parity. It is difficult to measure empowerment. There is no single method for

measuring it. It should be understood and defined through indicators. Indicators of empowerment should

encompass personal, social, economic and political change .Empowerment is a term generally used to describe a

process by which powerless people become conscious of their own situation and organize collectively to gain

greater access to public service or to the benefits of economic growth. The subject of empowerment of women

has becoming a burning issue all over the world including India since last few decades. Many agencies of

United Nations in their reports have emphasized that gender issue is to be given utmost priority. It would help

the innumerable women in the country who get abandoned by their husbands and have no means of proving

their marital status. It would also help check child marriages, bigamy and polygamy, enable women to seek

maintenance and custody of their children and widows can claim inheritance rights. The Act is applicable on all

women irrespective of caste, creed or religion. It would truly empower Indian women to exercise their rights.

Educated women now feel that there is more to life than marriage. They can get most of the things they want

(income, status, identity) without marriage, while they find it harder to find a suitable accomplished mate. This

is why their marriage is delayed. With increasing literacy among women in India, their entry into many types of

work, formerly the preserve of men, women can now look upon the bearing and raising of their children not as a

life’s work in itself but as an episode. It women have started taking men’s work, it could be said that men have

taken over women’s. Based on the ideas championed by our founding fathers for women empowerment, many

social, economic and political provisions were incorporated in the Indian Constitution. Women in India now

participate in areas such as education, sports, politics, media, art and culture, service sector and science and

technology. The most widespread and dehumanising discriminations against women are on the basis of the

biased perspective. The discrimination against the girl child begins from the birth itself. Boys are preferred over

girls; hence, female infanticide is a common practice in India.

Introduction:

In the past, poor women’s lives were nothing but the stories of pain, suffering humiliation and broken

and broken dreams. The recent and rapid change in women’s roles and responsibilities has shown that if women


61

are properly guided towards productive and useful skills, they can be a formidable resource for national

developments. The nineties was the decade of woman. There is no avenue she had not trodden on, no obstacle

she had not overcome and no job that was still taboo for her. Today’s woman has scaled every peak, both

literally and but to-day the pursue a career also for the challenge and satisfaction a job provides. One of the

memorable changes that have taken place in the world is the growing status of status of women. The level of

economic equality and independence are the real indications to measure the status of women in any society. She

alone knows how to save the erring from humiliation, how to educate disadvantaged children and many such

things. Women are in all spheres of life and living. The implication is that development should ultimately

become a process of empowerment of women. The empowerment process encompasses severally mutually

reinforcing components but begins with and is supported by economic independence’ which implies access to

and control over production resources. A second component off empower is ‘knowledge and awareness’, the

third is ‘self-image’ and the final is autonomy.

Women Empowerment:

Women empowerment means emancipation of women from the vicious grips of social, economical,

political, caste and gender-based discrimination. It means granting women the freedom to make life choices.

Women empowerment does not mean ‘deifying women’ rather it means replacing patriarchy with parity.

Human Rights or Individual Rights: A woman is a being with senses, imagination and thoughts; she

should be able to express them freely. Individual empowerment means to have the self-confidence to articulate

and assert the power to negotiate and decide.

Social Women Empowerment

A critical aspect of social empowerment of women is the promotion of gender equality. Gender

equality implies a society in which women and men enjoy the same opportunities, outcomes, rights and

obligations in all spheres of life.

Educational Women Empowerment

It means empowering women with the knowledge, skills and self-confidence necessary to participate

fully in the development process. It means making women aware of their rights and developing a confidence to

claim them.

Economical and occupational empowerment

It implies a better quality of material life through sustainable livelihoods owned and managed by

women. It means reducing their financial dependence on their male counterparts by making them a significant

part of the human resource.

Legal Women Empowerment

It suggests the provision of an effective legal structure which is supportive of women empowerment. It

means addressing the gaps between what the law prescribes and what actually occurs.

Political Women Empowerment

It means the existence of a political system favouring the participation in and control by the women of

the political decision-making process and in governance.

The position of Women in India:

The position enjoyed by women in the Rig- Vedic period deteriorated in the later Vedic civilization.

Women were denied the right to education and widow remarriage. They were denied the right to inheritance and


62

ownership of property. Many social evils like child marriage and dowry system surfaced and started to engulf

women. During Gupta period, the status of women immensely deteriorated. Dowry became an institution and

Sati Pratha became prominent.

It is difficult to measure empowerment. There is no single method for measuring it. It should be understood and

defined through indicators. Indicators of empowerment should encompass personal, social, economic and

political change .Empowerment is a term generally used to describe a process by which powerless people

become conscious of their own situation and organize collectively to gain greater access to public service or to

the benefits of economic growth.

The components of empowerment are:-Women’s and men’s sense of internal strength and confidence to face

life.

� The right to make choices

� The power to control their own lives within and outside the home.

� The ability to influence the direction of social change toward the creation of a more just social and

economic order nationally and internationally

As far as women’s empowerment is concerned Hapke M says “ is restructuring of gender relation

within both family and society at large and it is society’s recognition of women’s equality with men in term of

their worth to society as independent person”.

Naila Kabir defines women’s empowerment as “a process whereby women become able to organise

themselves to increase their own self reliance to assert their independent right, to make choices and to control

resources which will assist in challenging and eliminating their own subordination”.

The subject of empowerment of women has becoming a burning issue all over the world including

India since last few decades. Many agencies of United Nations in their reports have emphasized that gender

issue is to be given utmost priority. It is held that women now cannot be asked to wait for any more for

equality.Inequalities between men and women and discrimination against women have also been age-old issues

all over the world. Thus, women’s quest for equality with man is a universal phenomenon. What exists for men

is demanded by women? They have demanded equality with men in matters of education, employment,

inheritance, marriage, politics and recently in the field of religion also to serve as cleric (in Hinduism and

Islam). Women want to have for themselves the same strategies of change which menfolk have had over the

centuries such as equal pay for equal work. Their quest for equality has given birth to the formation of many

women’s associations and launching of movements.

The position and status of women all over the world has risen incredibly in the 20th century. We find

that it has been very low in 18th and 19th centuries in India and elsewhere when they were treated like ‘objects’

that can be bought and sold. For a long time women in India remained within the four walls of their household.

Their dependence on menfolk was total.A long struggle going back over a century has brought women the

property rights, voting rights, an equality in civil rights before the law in matters of marriage and employment

(in India women had not to struggle for voting rights as we find in other countries). In addition to the above

rights, in India, the customs of purdha (veil system), female infanticide, child marriage, sati system (self-

immolation by the women with their husbands), dowry system and the state of permanent widowhood were

either totally removed or checked to an appreciable extent after independence through legislative measures.

Anything that makes a woman feel inferior and takes away her self-respect is abuse. Compulsory Registration of


63

Marriage Act can be beneficial in preventing the abuse of institution of marriage and hindering social justice

especially in relation to women.

It would help the innumerable women in the country who get abandoned by their husbands and have no

means of proving their marital status. It would also help check child marriages, bigamy and polygamy, enable

women to seek maintenance and custody of their children and widows can claim inheritance rights. The Act is

applicable on all women irrespective of caste, creed or religion. It would truly empower Indian women to

exercise their rights. To what extent legislative measures have been able to raise the status of women in India?

Are women now feel empowered in the sense that they are being equally treated by men in all spheres of life

and are able to express one’s true feminine urges and energies? These are the important questions to be

investigated with regard to women’s empowerment in India.

We all know that girls are now doing better at school than boys. The annual results of Secondary and

Higher Secondary Board examinations reveal this fact. More women are getting degrees than men, and are

filling most new jobs in every field. There was a time when women’s education was not a priority even among

the elite. Since the last quarter of the 20th century and more so after the opening up of die economy, post-1991,

a growing number of women have been entering into the economic field, seeking paid work (remunerative jobs)

outside the family. Women are playing bigger and bigger role in economic field: as workers, consumers,

entrepreneurs, managers and investors. According to a report of The Economist, ‘Women and the World

Economy’, in 1950, only one-third of American women of working age had a paid job.

Today, two-thirds do, and women make up almost half of American’s workforce. In fact, almost

everywhere, including India, more women are employed, though their share is still very low. Manufacturing

work, traditionally a male preserve, has declined, while jobs in services have expanded, reducing the demand for

manual labour and putting the sexes on equal footing. We can now see women in almost every field:

architecture, lawyers, financial services, engineering, medical and IT jobs. They have also entered service

occupations such as a nurse, a beautician, a sales worker, a waitress, etc.

They are increasingly and gradually seen marching into domains which were previously reserved for

males (police, driver’s army, pilots, chartered accountants, commandos). In spite of their increasing number in

every field, women still remain perhaps the world’s most underutilized resources. Many are still excluded from

paid work and many do not make best use of their skills.

The rapid pace of economic development has increased the demand for educated female labour force

almost in all fields. Women are earning as much as their husbands do, their employment nonetheless adds

substantially to family and gives family an economic advantage over the family with only one breadwinner. This

new phenomenon has also given economic power in the hands of women for which they were earlier totally

dependent on males. Economically independent women feel more confident about their personal lives. Hence,

they are taking more personal decisions, for instance, about their further education, marriage, etc. More and

more women want freedom of work and control their own reproduction, freedom of mobility and freedom to

define one’s own style of life. It is contended that freedom leads to greater openness, generosity and tolerance.


64

This new pattern of working wives and mothers has affected the status of women in many ways.

Women’s monetary independence leads them to the way to empowerment. Sociologist Robert Blood (1965)

observes, ‘Employment emancipates women from domination by their husbands and secondarily, raises their

daughters from inferiority to their brothers’ (Blood and Wolfe, 1965). In brief, economic independence of

women is changing their overall equations, perspective and outlook. Economic independence of women has also

affected the gender relationships. New forms of gender relationships (live-in relationship are challenging the

long-rooted conception of marriages as a permanent arrangement between families and communities. In

traditional marriages the relationships were hierarchical and authoritarian. The modem conjugal relationships

are based on freedom and desire rather than convention. People’s attitudes about marriage are also changing.

Educated women now feel that there is more to life than marriage. They can get most of the things they

want (income, status, identity) without marriage, while they find it harder to find a suitable accomplished mate.

This is why their marriage is delayed. With increasing literacy among women in India, their entry into many

types of work, formerly the preserve of men, women can now look upon the bearing and raising of their children

not as a life’s work in itself but as an episode. It women have started taking men’s work, it could be said that

men have taken over women’s.

Young fathers could be seen wash up and making beds, caring of the young and doing many other

domestic works. The division of labour between sexes has changed somewhat. They do similar work and share

both household activities and tastes. Women wear trousers, jeans, suits and put on ties. The facts about working

wives suggest a basic change in Indian family. The traditional (nuclear) household, in which the husband works

and the wife remains at home to care for the children, though still a dominant pattern, is changing gradually but

steadily.

A new pattern is emerging in which both partners work outside the home but do not share equally in

housework and child care as we see in Western families. In India, the paternalistic attitude of the male has not

undergone much change. In spite of such drawbacks and hurdles that still prevail, Indian women (especially

educated) are no longer hesitant or apologetic about claiming a share and visibility within the family, at work, in

public places, and in the public discourse.

Current Scenario on Women Empowerment:

Based on the ideas championed by our founding fathers for women empowerment, many social,

economic and political provisions were incorporated in the Indian Constitution. Women in India now participate

in areas such as education, sports, politics, media, art and culture, service sector and science and technology. But

due to the deep- rooted patriarchal mentality in the Indian society, women are still victimised, humiliated,

tortured and exploited. Even after almost seven decades of Independence, women are still subjected to

discrimination in the social, economic and educational field.

Major landmark steps taken for women empowerment.-

Provisions made under the Constitution of India such as: Right to equality under Article 14 of the

Indian Constitution guarantees to all Indian women equality before law; Equal pay for equal work under Article

39(d), guards the economic rights of women by guaranteeing equal pay for equal work; and Maternity Relief


65

under Article 42, allows provisions to be made by the state for securing just and humane condition of work and

maternity relief for women.

Acts like the Dowry Prohibition Act, 1961, prohibits the request, payment or acceptance of a dowry.

Asking or giving dowry can be punished by imprisonment as well as fine; Protection of Women from Domestic

Violence Act, 2005, provides for a more effective protection of the rights of women who are victims of

domestic violence. A breach of this Act is punishable with both fine and imprisonment; Sexual Harassment of

Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013, helps to create a conducive

environment at the workplace for women where they are not subjected to any sort of sexual harassment.

Panchayati Raj Institutions

As per the 73rd and 74th Constitutional Amendment Act, all the local elected bodies reserve one-third

of their seats for women. Such a provision was made to increase the effective participation of women in politics.

Women’s Reservation Bill: It is a pending Bill in India which proposes to reserve 33% of all seats in the Lok

Sabha and in all State Legislative Assemblies for women. If passed, this Bill will give a significant boost to the

position of women in politics.

Various Government Policies and Schemes-.

The Government of India is running various welfare schemes and policies, both at State and Central

levels for the empowerment of woman. Some of the major programmes and measures include Swadhar (1995),

Swayam Siddha (2001), Support to Training and Employment Programme for Women (STEP-2003), Sabla

Scheme (2010), National Mission for Empowerment of Women (2010) etc. All such policies and programmes

focus on social, economical and educational empowerment of women across various age groups.

Thus, there have been no dearth of social, economic, political, legal and Constitutional efforts made for the

empowerment of women both prior to and post-Independence. However, women in India continue to face

atrocities such as rape, dowry killings, acid attacks, human trafficking, etc. According to a global poll conducted

by Reuters, India is the “fourth-most dangerous country in the world for women”.

Women Empowerment — Challenges:

Perspective: The most widespread and dehumanising discriminations against women are on the basis of the

biassed perspective. The discrimination against the girl child begins from the birth itself. Boys are preferred

over girls; hence, female infanticide is a common practice in India. The ordeal that an Indian girl faces at birth is

only the beginning of a lifelong struggle to be seen and heard.

Patriarchate Bottlenecks The traditional Indian society is a patriarchal society ruled by the diktats of self-

proclaimed caste lords who are the guardians of archaic and unjust traditions. They put the burden of traditions,

culture and honour on the shoulders of women and mar their growth. The incidences of “honour killing” reveal

the distorted social fibre in the male-dominated society.

Economic Backwardness: Women constitute only 29% of the workforce but forms majority of the destitute in

the country. There has been a failure in transforming the available women base into human resource. This, in

turn, has hampered not only the economic development of women but also of the country’ as a whole.

Implementation Gaps Through all these years, the attention is only on developing and devising new schemes,

policies and programmes and have paid less attention to the proper monitoring system and implementation

short-sightedness, for e.g. despite the presence of The Pre-Natal Diagnostic Technologies Act and various health


66

programmes like Janani Suraksha Yojana and National Rural Health Mission (NHRM), our country has a

skewed sex ratio and a high maternal mortality . rate (MMR).

Loopholes in the legal structure Although there are a number of laws to protect women against all sorts of

violence yet there has been the significant increase in the episodes of rapes, extortions, acid, attacks etc. This is

due to delay in legal procedures and the presence of several loopholes in the functioning of a judicial system.

Lack of Political Will: The still- pending Women’s Reservation Bill underscores the lack of political will to

empower women politically. The male dominance prevails in the politics of India and women are forced to

remain mute spectators.

Way ahead starts with bridging the deep-rooted biases through sustained reconditioning. It is only possible by

promoting the idea of gender equality and uprooting social ideology of male child preferability. This concept of

equality should be first developed in each and every household and from there, it should be taken to the society.

This can be achieved by running sustained awareness programmes with the help of Nukkad natak or dramas,

radio, television, Internet, etc. across the country.

Replacing ‘Patriarchy’ with Parity: A strong patriarchate society with deep- rooted socio-cultural values

continues to affect women’s empowerment. The need of the hour is an egalitarian society, where there is no

place for superiority. The Government should identify and eliminate such forces that work to keep alive the

tradition of male dominance over its female counterpart by issuing inhumane and unlawful diktats.

Education is the most important and indispensable tool for women empowerment. It makes women aware of

their rights and responsibilities. Educational achievements of a woman can have ripple effects for the family and

across generations. Most of the girls drop out of schools due to the unavailability of separate toilets for them.

The recently launched ‘Swachh Bharat Mission’ focusing on improving sanitation facilities in schools and every

rural household by 2019, can prove to be very significant in bringing down the rate of girls dropping out of

school.

Political Will: Women should have access to resources, rights and entitlements. They should be given decision-

making powers and due position in governance. Thus, the Women Reservation Bill should be passed as soon as

possible to increase the effective participation of women in the politics of India.

Characteristics of women empowerment:

� Women empowerment is giving power to women. It is making women better off. It enables a greater

degree of self confidence and sense of independence among women.

� Women empowerment is a process of acquiring power for women in order to understand their rights

and to perform her responsibilities towards oneself and others in a most effective way. It gives the

capacity or power to resist discrimination imposed by the male dominated society.

� Women empowerment enables women to organize themselves increase their self reliance and it

provides greater autonomy.

� Women empowerment means women’s control over material assets intellectual resources and ideology

. it challenges traditional power equations and relations.

� Women empowerment abolishes all gender base discrimination in all institutions and structures of

society. it ensures participation of women in policy and decision making process at domestic and

public levels.

� Women empowerment means exposing the oppressive powers of existing gender an social relations.


67

� Women empowerment makes women more powerful to face the challenges of life, to over come the

disabilities, handicap and inequalities . it enables women to realize their full identity and powers in all

spheres of life.

� Empowerment also means equal status to women . it provides greater access to knowledge and

resources greater autonomy in decision making greater ability to plan their and freedom from the

shackles imposed on them by custom belief and practice.

� Women empowerment occurs within sociology , psychological , political cultural , familial and

economic spheres and at a various levels such as individual, group and community.

Objectives of Study:

1. To identify the empowerment among women

2. To find out difference between working and non-working women in their empowerment

3. To investigate the difference between teaching and non teaching women staff in their empowerment.

4. To identify the difference between women lecturers of university and college in their empowerment

5. To find out difference between University women lecturers and high school women teachers in their

empowerment.

6. To identify the difference between college women lecturers and high school women teachers in their

empowerment.

Design of the study:

The present study deal with descriptive method.In this method investigator selected 98 sample of respondent

and administered standardized empowerment scale prepared by M.Sarada Devi and questionnaire to collect

information. The date collected is analysised using mean, SD and t- significance.

Hypothesis:

1.There is no significance among women.

Table-1 Mean score of women empowerment

S.lno Dimensions N Mean S.D.

1 Self decisions-Personal affairs

98

78.0 10.1

2 Self decisions-Children affairs 66.2 16.4

3 Self decisions-Household affairs 76.6 12.0

4 Joint decisions-Personal affairs 75.6 12.1

5 Joint decisions-Children affairs 60.5 13.1

6 Joint decisions-Household affairs 45.8 8.5

Interpretation

The above table reveals that the role of women in self decisions and joint decisions. The framed null

hypothesis is rejected and accepted alternative hypothesis. Therefore it was concluded that there is

empowerment among women.


68

2. There is no significant difference between working and non working in their empowerment

Table-2 significant difference between working and non working in their empowerment

Variable Sample N Mean S.D. t-value Obtained

t-value

Level of

significance

0.05

occupation

working

68

68.66

10.5

1.99

0.21

Not

significant at

0.05 level

Non

working

30

71.06

12

Interpretation

The above table reveals that the obtained t-value is lesser than the table t-value at the 0.05 level of

significance. So the null hypothesis is accepted .Therefore it was concluded that there is no significant

difference between working and non working women in their empowerment.

3. There is no significant difference between teaching and non-teaching women staff in their empowerment.

Table-3 significant difference between teaching and non-teaching women staff in their empowerment.

Variable Sample N Mean S.D.

t-value Obtained

t-value

Level of

significance 0.05

occupation

Teaching 33 70.76 7.14

2.00 0.39

Not

significant at

0.05 level Non

Teaching 35 66.78 10.1

Interpretation



difference between teaching and non teaching women staff in their empowerment.

4. There is no significant difference between women lecturers of university and college in their empowerment.

Table-4 significant difference between women lecturers of university and college their empowerment.

Variable Sample N Mean S.D. t-value Obtained t-

value

Level of

significance 0.05

occupation

University

women lecturer

11

73.6

8.4

2.09 1.60

Not

significant

at 0.05 level

College

women lecturer

11

69.5

8.6

Interpretation


69

The above table reveals that the obtained t-value is lesser than the table t-value at the 0.05 level of significance.

So the null hypothesis is accepted .Therefore it was concluded that there is no significant difference between

women lecturers of university and college in their empowerment

5. There is no significant difference between University women lecturers and high school women teachers in

their empowerment.

Table-5 significant difference between University women lecturers and high school women teachers in

their empowerment.


value

Level of

significance 0.05

occupation

University

women lecturer

11

73.6

8.4

2.09 0.06

Not

significant

at 0.05 level

High school women

Teachers

11 72.0 8.4

Interpretation



difference between university women lecturers and high school women teachers in their empowerment.

6. There is no significant difference between college women lecturers and high school women teachers in their

empowerment.

Table-6 significant difference between college women lecturers and high school women teachers in their

empowerment.


value

Level of

significance 0.05

occupation

college

women lecturer

11

69.5

8.6

2.09

0.97

Not

significant

at 0.05

level

High school women

Teachers

11

72.0

8.4

Interpretation



difference between college women lecturers and high school women teachers in their empowerment.

7. There is no significant difference between women Students and housewives in their empowerment.


70

Table- 7 significant difference between women Students and housewives in their empowerment.

Variable Sample N Mean S.D.

t-

value Obtained t-

value

Level of

significance 0.05

occupation

women

Students

15

69.8

13.5

2.05 0.89

Not

significant at

0.05 level

Housewives

15

72.5

12.5

Interpretation



difference between women Students and housewives in their empowerment.

Conclusion:

The present study reveals that there is empowerment among women. Women who score higher on

empowerment scale are the ones who have higher levels of empowerment. In this regard women are no more

confined to the kitchen and four walls of their homes. Hence they are contributing significantly to the modern

business and commercial world in their own way by talking self decision and joint decision in personal affairs,

children’s affairs and household affairs. The present study also reveals that their is no significant difference

between working and non working women, the reason may be increasing opportunities for learning, economic

compulsions of nuclear family and growing rate of urbanisation have all contributed to the empowerment

.Educational status of women respondents is an indicative factor, which is expected to help women’s

empowerment. By the analytical study it is made clear that the two groups of women the impact of their

education status may be the reason for there is no significant difference between teaching and non teaching

women staff in their empowerment. Regarding the occupational status and its influence over women

empowerment, it is not found significant difference between women lecturers of university and college in their

empowerment .Hence it is not to be considered as a positive factor affecting empowerment. The study also

reveals that there is no significant difference between university women lectures and high school women

teacher.

REFERENCES:

1. Arun Kumar: Empower women ,published by Sarup and Sons New Delhi (2002 )

2. Carmen Barrora Jodi.L.Jacobson: Population Policy and Women’s empowerment,Prentice Hall of India

Pvt Ltd,NewDelhi

3. Dr.P.Shivaprakasham,Dr Mrs .R.Surikala: Women employees (Status ) and Satisfaction,Kanishka

Publishers,Distrbutors,New Delhi ( 2003 )

4.Jaiswal R,P: Professional stastua of women,rawat Publications,Jaipur,New Delhi (1993 )


71

5.Latika menon : Women Empowerment and challenges of chage,Kanishka publisher,Distributors,New Delhi

(1992 )

6. Sushma sahay : Empowerment of Women approaches and strategies,Discovery Publishing House,New Delhi

(1998 )


72

BEHAVIOURAL FINANCE WITH REFERENCE TO INVESTOR BEHAVIOUR

RAJESH S KINNI

Research Scholar, Dept of Commerce, Gulbarga University Gulbarga

Dr. SANGAPPA S RAMPURE

Asst Professor and HOD, Department of Commerce, GFGC Shorapur Dist: Yadgir

ABSTRACT

Behavioral finance is a new approach in the analysis of capital market. It is a branch of finance that studies how

the behavior of agents in the financial market. Behavioral finance is the study of the influence of the

psychological factors on financial markets evolution. It is part of finance that seeks to understand and explain

the systematic financial market implications of psychological decision processes. It utilizes knowledge of

cognitive psychology, social sciences and anthropology to explain irrational investor behaviour that is not being

captured by the traditional rational based models. This paper examines the meaning and importance of

behavioral finance and its principles and implications and theories of behavioral finance. This study is based on

descriptive as well as conceptual study.

Keywords: Behavioral Finance, Capital Market, Financial Market, Investor, Psychology.

INTRODUCTION

Behavioral finance is a branch of finance that studies how the behavior of agents in the financial market and

influenced by psychological factors and the resulting influence on decisions made while buying or selling the

market, thus affecting the prices. The science aims to explain the reasons why it’s reasonable to believe that

markets are inefficient. Behavioral finance is the study of the influence of the psychological factors on financial

markets evolution. Financial investors are people with a very varied number of deviations from rational

behaviour, which is the reason why there is a variety of effects, which explain market anomalies. Classical

finance assumes that investors are rational and they are focused to select an efficient portfolio, which means

including a combination of asset classes chosen in such a manner as to achieve the greatest possible

returns over the long term, under the terms of a tolerable level of risk. Behavioral finance paradigm suggests

that investment decision is influenced in a large proportion by psychological and emotional factors.

Behavioral finance is the study of the influence of the psychological factors on financial markets evolution. In

other words, financial markets inefficiency is analyzed in the light of the psychological theories and

perspectives. Behavioral finance is a relatively recent and high impact paradigm which provides an interesting

alternative to classical finance. The classical finance assumes that capital markets are efficient, investors are

rational and it’s not possible to outperform the market over the long-term. Psychological principles of

behavioral finance include among others heuristics and biases, overconfidence, emotion and social

forces. A very important step for an investor is to understand his financial personality. In other words, in

the posture of investor is vitally important to understand why you make certain financial decisions or how you

are likely to react in common conditions of uncertainty. This form of analysis is useful in an attempt to

understand how you can temper the irrational components of investment decisions while still satisfying your

individual preferences and requirements.


73

Behavioral finance provides a different perspective, very complex and unconventional. Behavioral finance

paradigm suggests that investment decision is influenced in a large proportion by psychological and emotional

factors. Human emotional complexity includes the following primary feelings: fear, panic, anxiety, envy,

euphoria, greed, satisfaction, ambition or vanity. Very likely that all these emotions interfere in certain

proportions in a financial investment decision making.

Behavioral finance attempts to explain and increase understanding of the reasoning patterns of investors,

including the emotional processes involved and the degree to which they influence the decision-making process.

Essentially, behavioral finance attempts to explain the what, why, and how of finance and investing, from a

human perspective. For instance, behavioral finance studies financial markets as well as providing explanations

to many stock markets. Lastly, behavioral finance studies the psychological and sociological factors that

influence the financial decision making process of individuals, groups, and entities.

Meaning

Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory

with conventional economic and finance to provide explanations for why people make irrational financial

decisions. It is very popular in stock market across the world for investment decisions.

Figure 1.1: Meaning of Behavioral Finance

Behavioral finance is the study of psychology and sociology on the behavior of the financial practitioners and

the subsequent effect on the security market. It helps to understand why people buy or sell stock without doing

fundamental analysis and behave irrationally in investment decisions. Some important definitions of behavioral

finance are discussed below:

Olsen (1998): “Behavioral finance seeks to understand and predict systematic financial market implications of

psychological decision process.”

Belsky and Gilowich (1999) have referred to behavioral finance as a behavioral economics and further defined

as combining the twin discipline of psychology and economics to explain why and how people make seemingly

irrational or illogical decisions, why they save, invest, spend and borrow money.

Shefrin (2001) says, behavioral finance is the study of how psychology affects financial decision making and

financial markets.

Verma (2004) has defined behavioral finance tries to understand how people forget fundamentals and make

investment based on emotions.

Swell (2005) asserts that behavioral finance is the study of the influence of psychology on the behavior of

financial practitioners and the subsequent effect on markets. Further in 2007, he has stated that behavioral

finance challenges the theory of market efficiency by providing insights into why and how market can be

inefficient due to irrationality in human behavior.

Forbes (2009) has defined behavioral finance as a science regarding how psychology influences financial

market. This view emphasizes that the individuals are affected by psychological factors like cognitive biases in

their decision making, rather than being rational and wealth maximizing.

Finance Behavioural Finance

Sociology

Psychology


74

Thus, behavioral finance is the application of scientific research on the psychological, social and emotional

contributions to market participants and market price trends. It also studies the psychological and sociological

factors that influence the financial decision making process of individual groups and entities.

BEHAVIOURAL FINANCE PRINCIPLES AND ITS IMPLICATIONS

Below the traditional financial theory, the decisions makers are rational. In contrast, modern theory suggests

that Investors financial decision-making are not driven by due considerations. The decisions are taken by them

are also often inconsistent. Put in another way, human decisions are subject to several cognitive illusions. These

are grouped into two and have been depicted in figure

Figure1.2: Cognitive Illusions

COGNITIVE ILLUSIONS

COGNITIVE ILLUSIONS

HEURISTICS PROSPECT THEORY

Over Confidence

Representativeness

Anchoring

Availability Bias

Loss Aversion

Regret Aversion

Mental Accounting

Self Control

Gamblers Fallacy Forming


75

Heuristic Decision Process

The decision process by which the investors find things out for themselves, usually by trial and error, lead to

the development of rules of thumb. In other words, it refers to rules of thumb which humans use to made

decisions in complex, uncertain environments. The reality, the investors decision making process are not strictly

rational one. Thought the investors have collected the relevant information and objectively evaluated, in which

the mental and emotional factors are involved. It is very difficult to separate. Sometimes it may be good, but

many times it may result in poorer decision outcomes. It includes:

� Overconfidence: There are several aspects to confidence.

Confidence might have several dimensions, giving more courage, plays a vital role in gaining success.

Although confidence is often positive and celebrated, it is not the only factor to success. The investors

who are cautious and analytical can achieve success and others have to withdraw. Yet, self-confidence

is always considered to be a positive trait. In certain cases, investors while overestimating their

skills and knowledge indulge themselves into excessive trading.

� Representativeness: The investors’ latest success; tend to continue

into the future also. The propensity of decisions of the investors to make based on past experiences is

known as stereotype. Kahneman & Tversky (1982) first proposed it by defining

representativeness as; (a) the level to which an event’s characteristics are similar to its parent

population, also (b) contemplates prominent features of the procedure by which it is yielded.

� Anchoring: It describes the common human tendency to rely too

heavily, or ‘anchor’ on one trait or piece of information when making decisions. When presented with

new information, the investors tend to be slow to change or the value scale is fixed or anchored by

recent observations. They are expecting the trend of earning is to remain with historical trend, which

may lead to possible under reactions to trend changes.

� Gamblers Fallacy: While coming to probability, when lack of

understanding leads to an incorrect estimation and prediction regarding the onset of events. That

one incorrect assumption is called gambler’s fallacy. It arises when the investors inappropriately

predict that tend will reverse. It may result in anticipation of good or poor end.

� Availability bias: Availability bias occurs when the evidences that

come to our mind are easily overweighed. This biasness causes overreaction by the investors to the

market results whether they are positive or negative. Availability bias is a cognitive bias that drives

to human to overestimate the probabilities of the events affiliated with memorable or vivid happenings.

Investors aim excessive weight on the most information available while making decisions.

Prospect Theory

This theory is developed by Kahneman and Tversky the second groups of illusions which may impact the

decision process are grouped in prospect theory. He discussed several states of mind which may influence an

investor’s decision making process. The key concepts which he discussed are as follows:


76

� Loss aversion: It is an important concept in psychology which

receives a visible attention in analyzing the economic conditions. When an investor faces loss the he

may become a risk-seeker, but becomes a risk-averse while enjoying gains. Such phenomenon can be

called loss aversion (Venkatesh, 2002). Schmidta & Zankb (2002) discussing the loss aversion theory

agrees to the views of (Kahneman& Tversky, 1979).

� Regret aversion: This type of aversion arises when an investor

desires to avoid the pain of regret occurring from a bad investment decision. This aversion

encourages investors to hold poorly performing shares as avoiding their sale also avoids the recognition

of the associated loss and bad investment decision. It creates a tax inefficient investment strategy

because investors can reduce their taxable income by realizing capital losses.

� Mental Accounting: This is the set of cognitive operations used by

the investors to organize, evaluate and keep track of investment activities. Three components of mental

accounting receive the most attention. This first captures how outcomes are perceived and experienced,

and how decisions are made and subsequently evaluated. A second component of mental accounting

involves the assignment of activities to specific accounts. Both the sources and uses of funds are

labeled in real as well as in mental accounting systems. The third component of mental accounting

concerns the frequency with which accounts are evaluated and 'choice bracketing'. Accounts can be

balanced daily, weekly, yearly, and so on, and can be defined narrowly or broadly. Each of the

components of mental accounting violates the economic principle.

� Self-control: The all investors are assumed to avoid the losses and

shield their investments. According to the views of Thaler & Shefrin (1981) investors should always

show some sort of tolerance and should be looking for improving their self-control. Psychologically it

is also known as self-regulation.

� Framing: It is the first part of the prospect theory which leads to outcomes and contingencies

associated to a particular problem. It is the way facts are presented which influences the choice of an

investor.

CONCLUSION

Behavioral finance is a new approach in the analysis of capital market. It is a branch of finance that studies how

the behavior of agents in the financial market. Behavioral finance is the study of the influence of the

psychological factors on financial markets evolution. In present changing economic scenario, investment in

various companies has become complex as people invested large sum of money even when there is a little

change of company being, profitable. Most of the investors have rational expectations and maximize their

utility. However, behavioral economist argues based on their active studies that market are not efficient,

especially in the short-run and people do not make rational decisions to maximize profits.


77

REFERENCE

1. Agha Jahanzeb, Saqib Muneer and Saif-ur-Rehman(2012), “Implication of Behavioral Finance in

investment decision-making process” Business and Management Review Vol. 2(8) pp. 01 – 04

2. Amar Kumar Chaudhary(2013) “Impact of Behavioral Finance in Investment Decisions and Strategies

– A Fresh Approach”, International Journal of Management Research and Business Strategy, ISSN

2319-345X, Vol. 2.

3. Ms. Kavita Shah(2014) “Study of Behavioural Finance with Reference to Investor Behaviour”,

IIJAIEM, Volume 3, Issue 9, September 2014.

4. Madha Vidhole(2014)” Impact of Behavioural Finance on Portfolio Decision Through Financial

Instruments-A Study of (Private Practising Graduate Doctors) Selected Professional in Mumbai City”,

ISSN :2319-7943, Vol. 2 , Issue. 5.

5. Anjum Raza(June 2014) “ Review of Behavioral Finance as an Emerging Field of Investment Decision

Making,”, Journal of Business and Management (IOSR-JBM),ISSN: 2319-7668. Volume 16, Issue 6.

Ver. II (Jun. 2014), PP 156-172

6. Sudhindra Bhat “Financial Management Principles and Practices”, Exel Books Publishers’, First

Edition-2007.

7. M Y Khan and P K Jain “Financial Management” McGraw Hill Publishers, Sixth Edition-2013.

8. www.behaviouralfinance.net

9. www.investopedia.com


78

Financial Inclusion in India

Miss. Madhumati. R. Shettar

Assistant Professor, Dept. of PG studies in Economics K.L.E’s Lingaraj college, Belagavi.

ABSTRACT

The term "financial inclusion" has gained importance since the early 2000s. It is supposed to

ensure all citizens of the country have a saving bank account to enable crediting of the income to

economically weaker section. Financial inclusion is seen to be something more than opening bank

branches in unbanked areas to take formal financial services across the length and breadth of the country.

RBI has initiated several measures to achieve greater financial inclusion, such as facilitating no-frills

accounts and GCCs for small deposits and credit. CRISIL, India's leading credit rating and Research

Company launched an index to measure the status of financial inclusion in India. Its report highlights

many hitherto unknown facets of inclusion in India. It contains the first regional, state-wise, and district-

wise assessments of financial inclusion ever published, and the first analysis of trends in inclusion over a

three-year timeframe. The present paper studies the financiail inclusion in India and it focuses the reality

of financial inclusion, .

Key Words: Financial Inclusion, Financial Inclusion Index, Know-Your-Customer (KYC),

Business Correspondents (BCs), Deposit penetration.

Introduction

In the Indian context, the term ‘financial inclusion’ was used for the first time in April 2005 in

the Annual Policy Statement presented by Y.Venugopal Reddy,the then Governor, Reserve Bank of

India. Later on, this concept gained ground and came to be widely used in India and abroad. While

recognizing the concerns in regard to the banking practices that tend to exclude rather than attract vast

sections of population, banks were urged to review their existing practices to align them with the objective

of financial inclusion. The Report of the Internal Group to Examine Issues relating to Rural Credit and

Microfinance (Khan Committee) in July 2005 drew strength from this announcement by Governor Y.

Venugopal Reddy in the Annual Policy Statement for 2005-06 wherein he had expressed deep concern on

the exclusion of vast sections of the population from the formal financial system. In the Khan Committee

Report, the RBI exhorted the banks with a view to achieving greater financial inclusion to make available

a basic "no-frills" banking account. The recommendations of the Khan Committee were incorporated into

the mid-term review of the policy (2005–06). Financial inclusion again featured later in 2005 when it was

used by K.C. Chakraborthy, the chairman of Indian Bank. Mangalam became the first village in India

where all households were provided banking facilities. Norms were relaxed for people intending to open

accounts with annual deposits of less than Rs. 50,000. General credit cards (GCCs) were issued to the poor

and the disadvantaged with a view to help them access easy credit. In January 2006, the Reserve Bank

permitted commercial banks to make use of the services of non-governmental organizations

(NGOs/SHGs), micro-finance institutions, and other civil society organizations as intermediaries for

providing financial and banking services. These intermediaries could be used as business facilitators or

business correspondents by commercial banks. The bank asked the commercial banks in different regions


79

to start a 100% financial inclusion campaign on a pilot basis. As a result of the campaign, states or union

territories like Puducherry, Himachal Pradesh and Kerala announced 100% financial inclusion in all their

districts. Reserve Bank of India’s vision for 2020 is to open nearly 600 million new customers' accounts

and service them through a variety of channels by leveraging on IT. However, illiteracy and the low

income savings and lack of bank branches in rural areas continue to be a roadblock to financial inclusion

in many states and there is inadequate legal and financial structure.

1. Statement of the Problem:

There is a long history of financial inclusion in India. It has traditionally been understood to mean

opening new bank branches in rural and unbanked areas. Nowadays, however, financial inclusion is seen

to be something more than opening bank branches in unbanked areas to take formal financial services

across the length and breadth of the country.

1.1. Need for the study:

Financial inclusion in India is often closely connected to the aggressive micro credit policies that were

introduced without the appropriate regulations oversight or consumer education policies. The result was

consumers becoming quickly over-indebted to the point of committing suicide.

1.2. Objectives of the study:

a. To study financial inclusion in India.

b. To focus on the reality of financial inclusion

c. To know the challenges of financial inclusion and to suggest measures.

1.3. Data Collection:

The present study has used the secondary data, Journals, RBI reports and internet is used for the collection

of data.

2. Financial inclusion in India:

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of

disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are

not available or affordable. An estimated 2 billion working-age adults globally have no access to the types of

formal financial services delivered by regulated financial institutions. For example, in Sub-Saharan Africa only

24% of adults have a bank account even though Africa's formal financial sector has grown in recent years. It is

argued that as banking services are in the nature of a public good, the availability of banking and payment

services to the entire population without discrimination is a key objective of financial inclusion. The term

"financial inclusion" has gained importance since the early 2000s, a result of findings about financial exclusion

and its direct correlation to poverty. The United Nations defines the goals of financial inclusion as follows:

• access at a reasonable cost for all households to a full range of financial services, including savings or

deposit services, payment and transfer services, credit and insurance;

• sound and safe institutions governed by clear regulation and industry performance standards;

• financial and institutional sustainability, to ensure continuity and certainty of investment; and


80

• Competition to ensure choice and affordability for clients.

The government of India recently announced “Pradhan Mantri Jan Dhan Yojna,” a national financial inclusion

mission which aims to provide bank accounts to at least 75 million people by January 26, 2015. To achieve this

milestone, it’s important for both service providers and policy makers to have readily available information

outlining gaps in access and interactive tools that help better understand the context at the district level. MIX

designed the FINclusion Lab India FI workbook to support these actors as they craft strategies to achieve these

goals.

In India, RBI has initiated several measures to achieve greater financial inclusion, such as facilitating no-frills

accounts and GCCs for small deposits and credit. Some of these steps are:

a. Opening of no-frills accounts: Basic banking no-frills account is with nil or very low minimum balance as

well as charges that make such accounts accessible to vast sections of the population. Banks have been advised

to provide small overdrafts in such accounts.

b. Relaxation on know-your-customer (KYC) norms: KYC requirements for opening bank accounts were

relaxed for small accounts in August 2005, thereby simplifying procedures by stipulating that introduction by an

account holder who has been subjected to the full KYC drill would suffice for opening such accounts. The banks

were also permitted to take any evidence as to the identity and address of the customer to their satisfaction. It

has now been further relaxed to include the letters issued by the Unique Identification Authority of India

containing details of name, address and Aadhaar number.

c. Engaging business correspondents (BCs): In January 2006, RBI permitted banks to engage business

facilitators (BFs) and BCs as intermediaries for providing financial and banking services. The BC model allows

banks to provide doorstep delivery of services, especially cash in-cash out transactions, thus addressing the last-

mile problem. The list of eligible individuals and entities that can be engaged as BCs is being widened from

time to time. With effect from September 2010, for-profit companies have also been allowed to be engaged as

BCs. India map of Financial Inclusion by MIX provides more insights on this. In the grass-root level, the

Business correspondents (BCs), with the help of Village Panchayat (local governing body), has set up an

ecosystem of Common Service Centres (CSC). CSC is a rural electronic hub with a computer connected to the

internet that provides e-governance or business services to rural citizens.

d. Use of technology: Recognizing that technology has the potential to address the issues of outreach and credit

delivery in rural and remote areas in a viable manner,banks have been advised to make effective use of

information and communications technology (ICT), to provide doorstep banking services through the BC model

where the accounts can be operated by even illiterate customers by using biometrics, thus ensuring the security

of transactions and enhancing confidence in the banking system.

e. Adoption of EBT: Banks have been advised to implement EBT by leveraging ICT-based banking through

BCs to transfer social benefits electronically to the bank account of the beneficiary and deliver government

benefits to the doorstep of the beneficiary, thus reducing dependence on cash and lowering transaction costs.

f. GCC: With a view to helping the poor and the disadvantaged with access to easy credit, banks have been

asked to consider introduction of a General purpose Credit Card (GCC) facility up to `25,000 at their rural and

semi-urban branches. The objective of the scheme is to provide hassle-free credit to banks’ customers based on


81

the assessment of cash flow without insistence on security, purpose or end use of the credit. This is in the nature

of revolving credit entitling the holder to withdraw up to the limit sanctioned.

g. Simplified branch authorization: To address the issue of uneven spread of bank branches, in December

2009, domestic scheduled commercial banks were permitted to freely open branches in tier III to tier VI centres

with a population of less than 50,000 under general permission, subject to reporting. In the north-eastern states

and Sikkim, domestic scheduled commercial banks can now open branches in rural,semi-urban and urban

centres without the need to take permission from RBI in each case, subject to reporting.

h. Opening of branches in unbanked rural centers: To further step up the opening of branches in rural areas

so as to improve banking penetration and financial inclusion rapidly, the need for the opening of more bricks

and mortar branches, besides the use of BCs, was felt. Accordingly, banks have been mandated in the April

monetary policy statement to allocate at least 25% of the total number of branches to be opened during a year to

unbanked rural centres.

Financial Inclusion Index

On June 25, 2013, CRISIL, India's leading credit rating and research company launched an index to measure the

status of financial inclusion in India. The index- Inclusix- along with a report, was released by the Finance

Minister of India, P. Chidambaram at a widely covered program at New Delhi. CRISIL Inclusix is a one-of-its-

kind tool to measure the extent of inclusion in India, right down to each of the 632 districts. CRISIL Inclusix is a

relative index on a scale of 0 to 100, and combines three critical parameters of basic banking services — branch

penetration, deposit penetration, and credit penetration —into one metric. The report highlights many hitherto

unknown facets of inclusion in India. It contains the first regional, state-wise, and district-wise assessments of

financial inclusion ever published, and the first analysis of trends in inclusion over a three-year timeframe.

Some key conclusions from the study are:

*The all-India CRISIL Inclusix score of 40.1 is low, though there are clear signs of progress – this score has

improved from 35.4 in 2009.

• Deposit penetration is the key driver of financial inclusion – the number of savings accounts (624

million), is almost four times the number of loan accounts (160 million).

• 618 out of 632 districts reported an improvement in their scores during 2009-2011.

• The top three states and Union Territories are Puducherry, Chandigarh, and Kerala; the top three

districts are Pathanamthitta (Kerala), Karaikal (Puducherry), and Thiruvananthapuram (Kerala).

The basic objective of all these programmes chalked out under financial inclusion from the macro point of

view of the economy is to promote financial inclusion in the country by bringing the people and sections of the

society within the banking fold. The following table shows centre-wise distribution of new branches opened

during 2010- 13:

Table- 1- Centre-wise Distribution of New Branches opened during 2010-11 – 2012-13

Centre 2010-11 2011-12 2012-13P Total

Tier-1 1,942 2,235 1,752 5,929

(34.2) (29.9) (24.3) (29.1)

Tier-2 449 642 791 1,882

(7.9) (8.6) (11.0) (9.2)


82

Tier-3 1,167 1,241 1,006 3,414

(20.6) (16.6) (13.9) (16.8)

Tier-4 663 823 727 2,213

(11.7) (11.0) (10.0) (10.9)

Tier-5 580 979 1,114 2,673

(10.2) (13.1) (15.5) (13.1)

Tier-6 877 1,553 1,823 4,253

(15.4) (20.8) (25.3) (25.9)

Total 5,678(100) 7,473(100) 7,213(100) 20,364(100)

Source: Reserve Bank of India, Report on Trend and Progress of banking in India, 2012 -13, P- Provisional

Note 1 : Figures with brackets indicate percentage to total.

2 : Tier 5 and 6 centres together are rural centres with a population of less than 10,000.

As is clear from table – 1, out of a total of 20,364 branches of commercial banks opened in the country since

2010-11, as large as 7,926 branches forming 34.0% of the total were in tier-5 and tier-6 centres which

together form centres with a population of less than 10,000.

Table – 2- Progress of Financial Inclusion Plans. All Scheduled Commercial Banks including RRBs,

From 2010-2013

Variable – Banking outlets in

villages

Mar

2010

Mar

2011

Mar

2012

Mar

2013

Increase

over 2010

Percentage

increase

A. All Modes

A. 1. In villages with

population greater than

2000

37,949

(56.1)

66,605

(57.3)

1,12,288

(61.8)

1,19,453

(44.5)

81,504

(40.6)

214.8

A. 2. In villages with

population greater than

2000

29,745

(43.9)

49,603

(42.7)

69,465

(38.2)

1,49,001

(55.5)

1,19,256

(59.4)

400.9

Total of A (A1+A2) 67,694

(100)

1,16,208

(100)

1,81,753

(100)

2,68,454

(100)

2,00,760

(100)

296.6

B. Mode-wise B 1. Branches in

Banks

33,378

(49.3)

34,811

(30.0)

37,471

(20.6)

40,837

(15.2)

7,459

(3.7)

22.5

B. 2. Banking Correspondents (BCs) 34,174

(50.5)

80,802

(69.5)

1,41,136

(77.7)

2,21,341

(82.5)

1,87,167

(93.2)

547.7

B. 3. Other Modes 142

(0.2)

596

(0.5)

3,146

(1.7)

6,276

(2.3)

6,134

(3.1)

4,319.7

Total of B (B1+B2+B3)

67,694

(100)

1,16,208

(100)

2,68,454

(100)

1,81,753

(100)

2,00,760

(100)

296.6

Banking outlets in villages- total

67,694

1,16, 208

1,

2,68,454

2,00,760

296.6


83

(100) (100) 81,753

(100)

(100) (100)

Source: Reserve Bank of India, Report on Trend and Progress of banking in India, 2012 -13,

Note: Figures with brackets indicate percentages to respective totals.

With the use of ICT and Banking correspondents (BCs) banking facilities are now made available to

people through different modes.Table-2 reveals that the mode-wise spread of banking facilities in the country

during 2010-2013. The data shows in table-2, the predominance of the business correspondents and other

modes in the opening of banking outlets in the villages in the country during the period.

3. Reality of Financial Inclusion in India: The economic development of a country got the meaning only

when it is inclusive. The benefits from the economic development should reach the households. In the last

few years a plethora of new measures have been announced and ushered in to promote financial inclusion.

The following points opened up the reality of financial inclusion in India:

a. According to a study made by B. Chandrashekhar (2014), 22.3 million out of the nearly 66 million rural

labour households report being in debt in 2009-10.

b. There are 65.7 million rural labour households constituting 46% of households in rural India. But, in the

context of their financial inclusion, beyond advocating the rural development of the joint liability group

model, the issue has not got merit. One recent reference to these households is in the report of the Working

Group to Examine Procedures and Processes for Agricultural Loans set up by the RBI has made the

following observation; landless labourers , share croppers form the lowest strata of the farming community.

Their share in the bank credit is not adequate. The main problem facing the above category of farmers is the

lack of land documents or any other documents verifying their identity. So they remain deprived of bank

loan ( B. Chandrashekhar, 2014).

c. Pradhan Mantri Rozgar Yojana(PMRY) launched during 90’s, was to help unemployed youth aged 18-35

years, in starting their own venture/enterprise with the help of loan sanctioned under the scheme. A study

on evaluation of this PMRY scheme in 1994-95, revealed that banks rejected many applications stating lack

of collateral security (Vijayalakshmi V. 2015).

d. According to a report published by the Housing Bank of India 80% of low income groups and

economically weaker sections in urban areas do not have access to institutional finance.

e. We know that slum residents are generally employed in unorganized sector or small time vendors, whose

monthly income is very meager or irregular. So the EMI model of banks is difficult to adhere to by these

slum residents.

4. Challenges of Financial Inclusion in India

There is a long history of financial inclusion in India. It has traditionally been understood to mean opening

new bank branches in rural and unbanked areas. Nowadays, however, financial inclusion is seen to be

something more than opening bank branches in unbanked areas to take formal financial services across the

length and breadth of the country. In the context of the various shortcomings in delivering subsidies, direct

transfers using technology have been thought of. The beneficiary needs to have at least one bank account.

Since in a logistics point of view it is impossible to open that many physical branches — the brick and

mortar type — the accent will be on opening electronic accounts. Technology adaptation would be a key

feature in this scheme for financial inclusion.


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1. The RBI has, in the recent past, taken several steps to further inclusion. Very recently, it circulated for

public comment two sets of draft guidelines for issuing licenses to payment banks and small banks.

2. These niche banks with lower entry-level norms than for normal commercial banks are meant to further

inclusion. While it will take a while for these banks to come up, it is obvious that the RBI is betting on them

to provide banking services to those who remain outside the purview of formal banking.

3. Understanding the financial inclusion: Recently, the RBI Governor Raghuram Rajan outlined, in

conceptual terms, what inclusion should be. “Simplicity and reliability in financial inclusion in India,

though not a cure all, can be a way of liberating the poor from dependence on indifferently delivered public

services and from venal politicians,” he said. Further, “in order to draw in the poor, the products should

address their needs — a safe place to save, a reliable way to send and receive money, a quick way to

borrow in times of need or to escape the clutches of the money lender, easy to understand life and health

insurance and an avenue to engage in savings for the old age.” The RBI will accordingly nudge banks to

offer a basic suite of services.

4. While over the years the government has taken several steps to spread the banking habit, formidable

tasks lie ahead. Of the 24.67 crore households in the country, 10.19 crore do not have access to banking

services. In rural areas, 44 per cent households and in urban areas 33 per cent still do not have a bank

account.

5. The government’s latest plan of action, as envisaged in the CFIP or Sampoorn Vittiya Samaveshan,

hopes to extend coverage of basic financial services all excluded households. In the first phase, the CFIP

will endeavour to provide universal access to all the beneficiaries through sub-service areas (SSAs). Each

SSA will consist of 100-1,500 families in a cluster of villages and each SSA will be serviced by a BC agent

(BCA) whose task it will be to facilitate account opening and smooth banking operation.

6. The latest inclusion plan will have as its focus households rather than geographical areas. After

satisfactory conduct of accounts it is proposed to offer reasonable need-based credit facilities for which

overdraft facilities will be sanctioned. A smart card (RuPay card) will be issued to enable customers to

operate their accounts even without BCs. Simultaneously suitable awareness will be created among the

financially excluded.

7.In the second phase, there is a proposal to make available a pension scheme for identified individuals in

the unorganized sector and offer microfinance products through government-owned insurance companies.

5. The following steps can be taken to face the challenges of financial inclusion: indicated:

(1) The business correspondent model should be extended to include entities such as kirana shops, corporates

and others. It is obvious that BCs need to be properly remunerated and have the full support of banks. Banks

have tied up with Common Service Centres (CSCs) as BCs.

(2) Insistence on KYC (know your customer) norms has hindered the opening of new accounts even in urban

areas. Great significance is, therefore, attached to e-KYCs. The Aadhaar can play an extremely useful role.


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(3) Since mobile banking through phones is to play an increasingly important role in a scenario where physical

bank branches will be few, greater co-ordination between mobile telephone companies and banks will be

necessary.

(4) It goes without saying that State governments’ support will be crucial.

(5) Commercial viability will be the key to the programme’s success. Past experience suggests that without

proper incentives, the facilities on offer will not be used by the really needy. Banks will be saddled with a large

number of dormant accounts.

By far the biggest challenge is one of altering the mindset — of banks, policy makers and bank customers, both

potential and existing.

Conclusion:

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections

of disadvantaged and low-income segments of society. The United Nations defines the goals of financial

inclusion mainly access at a reasonable cost for all households to a full range of financial services, including

savings or deposit services, payment and transfer services, credit and insurance etc. RBI has initiated several

measures to achieve greater financial inclusion, such as facilitating no-frills accounts and GCCs for small

deposits and credit. The basic objective of all these programmes chalked out under financial inclusion from

the macro point of view of the economy is to promote financial inclusion in the country by bringing the

people and sections of the society within the banking fold. But the reality of financial inclusion in India:

a. According to a study made by B. Chandrashekhar (2014), 22.3 million out of the nearly 66 million rural

labour households report being in debt in 2009-10.

b. Landless laborers , share croppers form the lowest strata of the farming community. Their share in the

bank credit is not adequate. The main problem facing the above category of farmers is the lack of land

documents or any other documents verifying their identity. So they remain deprived of bank loan

c. A study on evaluation of this PMRY scheme in 1994-95, revealed that banks rejected many applications

stating lack of collateral security.

d. The EMI model of banks is difficult to adhere to by the slum residents.

Financial inclusion can be a way of liberating the poor from dependence on indifferently delivered public

services and from venal politicians. Of the 24.67 crore households in the country, 10.19 crore do not have access

to banking services. In rural areas, 44 per cent households and in urban areas 33 per cent still do not have a bank

account. Commercial viability will be the key to the programme’s success. Past experience suggests that without

proper incentives, the facilities on offer will not be used by the really needy. Banks will be saddled with a large

number of dormant accounts. Mere opening of accounts and announcement of employment generation schemes

will not ensure financial inclusion. There is a need for a dialogue between several government departments and

banks about the need for loan provision for low income people.


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References

*B.Chandrashekhar (2014), “ Reading the Tea Leaves on Financial Inclusion :The Case of Rural Labour

Households”, Economic & Political Weekly, Vol. 1. January 18.

*Sukanya N (2015),” Banking Innovations and Financial Inclusion in India A Reviewof the Recent Tre nds”,

Southern Economist, vol. 54, No. 16, December 15.

*Reserve bank of India (2007), “Report on Trend and Progress of Banking in India”, 2006-07.

* Reserve Bank of India (2013), “Report on Trend and Progress of Banking in India”, 2012 -13.

* Vijayalakshmi V. (2015),”Reality of Financial Inclusion”, Southern Economist, Vol. 54, No. 7, August 1.


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BEHAVIORAL FINANCE ON INDIVIDUAL INVESTOR’S DECISION-MAKING

Prof. Nameet Ijari

Gogte College of Commerce, Belagavi

Abstract:

The author of this paper chose the topic of behavioral finance theories for the reason of studying the

controversial relevance of these theories in relation to investment strategies. Reading investment books and

newspaper articles has been a part of the writers' daily life for many years. Hence, the writer’s interest towards

investment strategies and behavioral finance theories has grown over time. Behavioral theories are seen as a

relatively new phenomenon in the security markets. Therefore, examining the subject is essential in order to

understand the changing world of investments. In today's world investing in stocks and funds is made easy.

Investors do not need any specific education or knowledge in order to purchase stocks. Current technology

enhances fast trade between individual investors. The concept of investing is seen as trendy. Therefore, people

have a tendency to make illogical decisions not based on true knowledge or information of a certain investment

ob-ject. These decisions are explained via several behavioral finance theories. The outcome of poor knowledge

is that investors allow these theories to effect on their decision-making process, thus resulting in major losses.

The behavioral models can effect on individuals’ decision-making whether actual investments are conducted via

professionals or not. The concept of investing is extensive as it can include all the aspects of purchasing items

expected to gain more value in the future (art, antique, securities etc.). Therefore, the author has decided to

narrow down the subject to concentrate on stock trading and the impact of behavioral finance on individual

investors and money markets. The concept of money markets is misleading as the market itself does not consist

of cash, but objectives having high liquidity are therefore referred to as money. The concept of behavioral

finance theories is relatively new and complex. The amount of existing studies is limited. However, behavioral

finance has a major impact on peoples' everyday decisions regarding their purchasing habits. In the field of

investments the direct and indirect implications of behavioral finance are remarkably strong. Therefore,

examining investor behavior in order to understand the fluctuations of money markets is essential. This

information may provide significant advantages in the future. The author of this paper examining the issue from

her own perspective is expected to provide useful knowledge for the future investment decisions. Studying the

correlations of investment strategies and behavioral finance theories enhances uneducated investors to be aware

of the issues related to the investment strategy they have implemented. In the long-term identifying these issues

may ease the distortions on money markets.

Literature Review

Introduction:

The following research paper provides material used as a basis for achieving the aim of this dissertation. The

material is divided into four sub-headings to logically construct the path towards the main objective of

examining the existing studies of correlations between investment strategies and behavioral finance theories.

These sub-headings provide information of the theoretical and empirical studies conducted on the area of

examination. Previous work on behavioral finance theories on investment perspective concentrates on providing

the necessary background information for the study. The overall objectives presented as sub-headings in this

paper were firstly to discuss individual investor issues and their relation on behavioral finance theories. The

second part examines the implications of irrational investor behavior on money markets and individual

perspective. The third part provides the minor existing research conducted in the area of behavioral finance


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theories’ effect on particular investment strategies. It justifies the rationale of the study. The material presented

was used to set limitations to the methodology is limited to Herding Theory, Anchoring Theory, Prospect

Theory and Regret Theory.

Previous work on behavioral finance theories from an investment perspective

The association between behavioral finance and investment strategies is disputed since the psycho-logical aspect

of investing questions the Efficient Market Hypothesis (hereafter may be referred to as EMH). EMH has a major

impact on profitability of the money market. The more efficient the market is, the less probable it is for an

investor to benefit from other investors’ miscalculations The Efficient Market Hypothesis and behavioral

theories are strongly negatively correlated as one excludes the other.

The issue of behavioral finance theories has become more prevalent during the past two decades. Investors have

only recently acknowledged their poor decision-making has originated from the psychological aspect of

investing. Catherine New (2011) introduces the example of Dr. Maggie Baker who wanted to gain more profit

with her investments in the mid-1990s. She allocated the majority of her stocks to the technology sector, which

had grown its popularity amongst investors. However, the price bubble of the technology sector broke in the

beginning of January 2000. Dr. Baker lost the majority of the value of her investments. She claims behavioural

finance theories controlled her decision making. Therefore, she made an error of judgement.

Economic bubbles have constantly threatened the world. The on-going recession is a direct cause of the credit

and housing bubble of the mid-2000s. Examining these bubbles in the context of behavioral finance may aid in

the avoidance of major economic disasters in the future. Especially now in the midst of an on-going recession

many investors question their investment logic and decision-making abilities. The majority of investors with or

without relevant education are intelligent people. However, these past years have destroyed their self-

confidence. Loss-making investors are desperate to know the reason for this. Behavioral finance is the key for

interpreting investor behavior that leads to financial crisis.

Individual investor issues and their relation on behavioral finance theories

The first articles concerning the psychological aspect of investing were published 1979. However, the concept

of behavioral finance theories has remained relatively unknown ever since. Economists have trusted in the

Efficient Market Hypothesis for a long time and have just recently admitted to investors having irrational

aspects in their investment decision-making behavior. Several journalists have studied the illogical aspects of

investor decision-making. Many of these journalists have implemented behavioral finance theories to explain

the irrationality of small investors. However, their perspectives differ. The first part of this section concentrates

on identifying the major issues individual investors face. The latter discusses the relation of their issues on the

four behavioral finance theories used for interpreting illogical decision-making of investors in this paper.

Aim and Objective of the study

The core aim of this paperis to study the correlations of major stock investment strategies and the most common

behavioral finance models effecting on investor behaviour. The relevant behavioral finance models addressed in

this paper are Anchoring Theory, Herding Theory, Prospect Theory and Regret Theory (hereafter may be

referred to as Regret Aversion). In order to reach the target the aim is divided into three minor objectives.

The first objective of this paper is to reveal the main issues of individual stock investors and examine whether

they may be explained with the four behavioral finance theories mentioned above. As the articles provided to


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introduce the subject of behavioral finance demonstrated on the previous section, there is significant evidence

major investor issues are related to psychological aspects of investing.

The second objective of this paper is to expose the implications of individual stock investors being affected by

behavioral finance models. This study is divided into two parts. The first part examines the effect of illogical

investor behavior on money markets. The second part focuses on how poor decision-making effects on an

individual level and whether it has an impact on the future investment decisions in terms of compounding

misleading information.

The third objective addressed is studying whether there are any positive correlations between major stock

investment strategies and behavioral finance theories. There are major gaps in the research in the area of

interpreting the effect of behavioral finance models on investors applying a certain type of investment strategy.

Therefore, the author decided to conduct a 10 question survey published on a beginner investor web page

Investor Posts. The target of the survey is uneducated individual investors. The survey does not reveal the core

purpose of the study to the target group. The reason for this is to prevent any influence such information may

have on the respondents.

Methodology:

Major parts of the research are conducted based on a comprehensive study of books and articles concerning

investment strategies and behavioral finance theories. The study of the first and second objectives of the

paperwill be based on qualitative research methods in order to understand the behavioral theories effecting on

individuals decision-making processes. The main focus of the third objective is on semi-quantitative research

methods. The reason for this is to successfully link certain investment strategies and behavioral models in order

to reach the main aim of this paper

Data and sources:

The collection of data was conducted through primary and secondary sources. Primary data consists of a self-

completion questionnaire conducted on the beginner investor web page Investor Posts. The purpose of the

primary data collection was to gather information in order to achieve the main aim of the dissertation. As stated,

the main aim of this paper is researching objective. Correlations between investment strategies and behavioral

finance theories. Researchers around the world have acknowledged that the Internet provides various

opportunities for conducting surveys. Several types of groups and organisations meet each other online. They

provide researchers with rapid access to a specific group. Often communities this large exist only on the

Internet. The web page selected as a source of primary data.

The methods adapted in the primary research were semi-quantitative. In other words, the results of the

questionnaire are to be treated as a guideline for forming patterns. Constructing a survey to measure human

behavior with quantitative or qualitative methods was not an option. Firstly, adapt-ing quantitative methods

requires a larger number of respondents. Secondly, forming patterns is not possible using qualitative methods.

Secondary data applied in this paper mainly consists of investment journals and books. The material researched

provided essential theoretical and empirical knowledge of the objectives

1. Individual investor issues and their relation on behavioral finance theories

2. The implications of irrational investor behavior.

Secondary data was used to provide basis for the primary research. It enhanced the formation of pattern between

uneducated investor behavior and behavioral finance theories. The information gathered on secondary research


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methods introduced Anchoring, Herding, Prospect and Regret theories. It justified the selection of these theories

to interpret investor behavior in this paper and revealed any interrelations and further issues they may have

caused. Gather-ing this information was crucial in order to conduct the primary research.

Research approach

As stated, the field of behavioral finance theories is relatively new. This has an impact on the amount and

reliability of earlier studies. Therefore, the decision of research methodology was not self-evident. The author of

this paper decided to use multiple methods to study the research problem. This approach is called

methodological triangulation. In order to achieve the aim the research of the subject was divided into three

stages. The first stage examined the main issues of individual investors and studied their relation on behavioral

finance theories. The second stage revealed the consequences of irrational investor behavior from an individual

investor and money market perspective. The aim of the final stage was to form a pattern between the most

common investment strategies and the four behavioral finance theories mentioned in the Aims of this paper. The

first and second stages were based on qualitative research methods. The examination of the third stage was

executed implementing semi-quantitative research methods.

The research method of any academic work is dependent on the nature of the study. The material provided in the

Literature Review clearly high-lights the gaps in the research conducted in the field of behavioral finance before

this dissertation. The main aim of this paper is not to be achieved adapting only secondary research methods. In

this case, it is highly encouraged to adapt primary and secondary research methods on the data collection phase.

The majority of researches concentrated on behavioral sciences are conducted using qualitative research

methods. However, some exceptions exist. The primary focus of the survey is not to examine the underlying

reasons for investor irrational behavior. The core aim of the questionnaire is to examine whether certain

investment strategies are more exposed to certain behavioral finance theories than others. Quantitative research

methods are used to find correlations and “Fashions” in human behavior. Hence, examining the aim of this

paper requires semi-quantitative research methods.

Methodological framework

The author used methodological triangulation in order to gain all essential knowledge for the pri-mary research

objective. The following section identifies and details the framework implemented for the primary research

conducted in this paper.

The selection of the major investment strategies was based on their popularity and different types of approaches.

Buy and hold investors often believe in EMH and their security holding periods are long. Technical and

fundamental analysis investors are the opposite of buy and hold investors. They predict market fluctuations with

certain methods. Technical and fundamental analysis investors have an opposite approach to predicting money

markets. Technical analysis is based on forecasting stock price fluctuations where fundamental analysis attempts

to process all information effecting on stock prices. In order to form a comprehensive pattern between certain

investment strategies and behavioral finance, it is essential to select different investment approaches.

Sample


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The target of the primary research conducted was uneducated stock investors. The source of primary data was

an Internet web page Investor Posts. The survey was published under the heading 'Survey on Stock Investors

Investment Behaviour'. The title excluded other types of security investors. The sample size was 20 respondents.

The nature of the survey required the author to examine all the respondent’s answers individually. The reasons

for this were to firstly form patterns between the behavioral finance models examined and secondly between

these models and major investment strategies. The analysis of the results had to be approached with due care

and attention. Therefore, surveying a greater number of respondents was not a viable option. However,

surveying a smaller number of investors would not have provided sufficient amount of information. In order to

form patterns it is essential to be able to generalize respondents’ answers.

The selection of material studied in Literature Review was based on a preliminary study of articles and books in

the field of behavioral finance theories’ relation on stock investment strategies. Criticism and historical analysis

of the literature is a crucial part of any research conducted. The purpose of the preliminary study was to limit the

behavioral finance theories to the most relevant ones' in terms of their impact on individual stock investor’s

strategies. The study limited the behavioral finance models to Anchoring, Herding, Prospect and Regret theories

introduced in. The material regarding the four theories mentioned above was gathered from various writers to

ensure an inclusion of all perspectives in the complex topic.

Data analysis

The results of the survey were gathered and processed with Microsoft Excel. Firstly, the data analy-sis consisted

of examining the questionnaires in order to ensure the completeness of the responses. Incomplete surveys were

not considered in the final results. Secondly, the data was divided into three main categories according to the

investment strategy the respondent had implemented. The purpose of this was to form patterns of behaviour

around certain investment strategies. Thirdly, the data connected to each investment strategy was analysed and

the results were compared to each other. This procedure was mandatory in order to examine whether certain

investment strategies were related to certain behavioural models.

Limitation of the study:

This paper does not cover behavioral finance models concerning corporations’ investment strategies. A majority

of large and medium sized corporations invest their funds via several channels. Therefore, the decision-making

process of large companies is more complex as there are a large number of people involved.

The target of the research conducted is mainly limited to uneducated stock investors. The second objective of

exposing the implications of irrational investment behaviour also examines the overall impact of behavioral

finance on money markets. When examining the first and the third objective the money market perspective will

be excluded.


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HUMAN RESOURCE AUDIT

Prof. Shweta S. Prathamashetti

S.K. College of Arts & Commerce Talikoti

The Human Resource Audit is an organized official process, which is designed to investigate the

strategies, policies, procedures, documentation, structure, systems and practices with respect to the

organization's human resource management. It is based on the principle that human resource processes are

dynamic and must constantly be redirected and revived to remain responsive to the changing needs. HR audit is

an important management control device. It is a tool to judge organisations performance and effectiveness of

HR management. It is an analytical, investigative and comparative process. It gives feedback about HR

functions to operating managers and HR specialists. A periodic Human Resource audit can qualify its

effectiveness within an organization. Human Resource auditing is something that many companies do annually,

just as they audit their financial information. This gives them an accounting of their workforce and the

efficiency with which the organization as an entity deals with its people, from recruiting to firing. There are five

approaches to HR Audit. This paper attempts to compare the strength and problems of HR Audit practice of two

companies, one state owned BSNL and another private company Reliance communications Ltd. The HR

management system in state owned company is not satisfactory and no control over non-executives. Where as

Reliance has excellent working atmosphere.

Introduction

The word “audit” comes from the Latin verb audire, which means, to listen. Listening implies an

attempt to know the state of the affairs as they exist and as they are expected/ promised to exist. Auditing as a

formal process is rooted in this feature of listening. Consequently, it is a diagnostic tool to gauge not only the

current status of things but also the gaps between the current status and the desired status in the area that is being

audited.

Human resource audit is conducted to ensure compliance, improve HR practices, train managers of

company, prepare for potential government audit or litigation, gain an understanding of department's

environment, and show a "good faith effort and correct errors. Basic principles of audits are to identify the

Scope, develop a Questionnaire, collect Data, benchmark Findings, provide Feedback about Results, create

Action Plans and foster Climate of Continuous Improvement.

The main intent of audit in human resource is to clarify desired practices of HR work and roles within

the organization (HR Department, Line Managers), to establish a baseline for future improvement, to evaluate

current effectiveness, to standardize practices across multiple sites within a division or company, to assess

current knowledge and skills required of HR practitioners and to improve performance levels to key customers

within the organization. HR audit is a periodic review to measure the effectiveness of personnel management

and to determine the steps required for more effective utilisation of human resource

There are two types of audit that include internal and external audit.

Internal audit: The internal audit is conducted by the company's own staff as a part of their control activities.


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External audit: The external audit is conducted by outsiders specifically employed for this purpose. The

advantage is to get the employed for this purpose is unbiased evaluation by competent people of the manpower

management function.

Meaning of Human Resource Audit:

Human Resource Audit means the systematic verification of job analysis and design, recruitment and

selection, orientation and placement, training and development, performance appraisal and job evaluation,

employee and executive remuneration, motivation and morale, participative management, communication,

welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their

resolution. HR audit is very much useful to achieve the organizational goal and also is a vital tool which helps to

assess the effectiveness of HR functions of an organization.

Objectives of Human Resource Audit:

(1) To review every aspect of management of HR to determine the effectiveness of each programmes in an

organisation.

(2) To seek explanation and information in respect of failure and success of HR.

(3) To evaluate implementation of policies.

(4) To evaluate the performance of personnel staff and employees.

(5) To seek priorities, values and goals of management philosophy.

Benefits of Human Resource Audit :

• Identifies the contribution of Human Resource department to the organization.

• Improves the professional image of the Human Resource department.

• Encourages greater responsibility and professionalism among member of the Human Resource

department.

• Clarifies the HR department’s duties and responsibilities.

• Stimulates uniformity of HR policies and practices.

• Finds critical HR problems.

• Ensures timely compliance with legal requirements.

• Reduces human resource cost through more effective Human Resource procedure.

• Creates increased acceptance of needed change in the Human Resource department.

• Requires thorough review of Human Resource department’s information system.


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Human Resource Auditing Process :

1) Briefing and orientation:

This is a preparatory meeting of key staff members to:

• discuss particular issues considered to be significant,

• chart out audit procedures, and

• develop plans and programme of audit.

2) Scanning material information:

This involves scrutiny of all available information pertaining to the personnel, personnel handbooks

and manuals, guides, appraisal forms, material on recruitment, computer capabilities and all such other

information considered material.

3) Surveying employees:

Surveying employees involves interview with key managers, functional executives, top functionaries in

the organisation, and even employees’ representatives, if necessary. The purpose is to pinpoint issues of

concern, present strengths, anticipated needs and managerial philosophies on human resources.

4) Conducting interviews:

What questions to ask? The direction which audit must follow is based on issues developed through the

scanning of information gathered for the purpose. However, the audit efforts will get impetus if clarity is

obtained as to the key factors of human resource management selected for audit and the related questions that

need to be examined.

The following model depicts the various key factors on which information needs during human resource audit

need to be focussed. It is developed from the interview guide used in an electronics company. It covers a wide

range of topics of profound interest relating to human resource management practices in the organisation.

The questions to be asked on these topics need to be framed very carefully. These questions may be

developed by the interviewer/audit team on the following aspects as indicated against each topic.

The process of the interview and the sequence of questions is often as important as their content.

Another effective method is the ‘focus interview’. A focus interview involves meetings between a trained

interviewer and selected members of the organisation. Here the interviewer asks a variety of questions planned

and prepared in the same fashion as the interview questionnaire explained earlier.

5) Synthesizing:

The data thus gathered is synthesized to present the

• current situation

• priorities

• staff pattern, and

• issues identified.


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• Similarly, future needs are identified and appropriate criteria developed for spotlighting the human

resource priorities and specific recommendations made.

6) Reporting:

Just as the planning meetings of briefing and orientation, the results of the audit are discussed within

several rounds with the managers and staff specialists. In the process, the issues that get crystallized are brought

to the notice of the management in a formal report. Follow-ups are necessary after an audit to see if the action

plan used to solve problems found this the audit worked or not.

Approaches to Human Resource Audit:

(1) Comparative Approach:

Under this approach auditors identify one model company and the results obtained of the organisation under

audit are compared with it.

(2) Outside Authority Approach:

In outside authority approach a benchmark is set to compare own results. A standard for audit set by outside

consultant is used as benchmark.

(3) Statistical Approach:

Under statistical approach the statistical information maintained by the company in respect of absenteeism,

employee turnover etc. is used as the measures for evaluating performance.

(4) Compliance Approach:

Under compliance approach the auditors make a review of past actions to determine to see whether those

activities are in compliance with the legal provisions and in accordance with the policies and procedures of

the company.

(5) MBO Approach:

Under MBO approach specific targets are fixed. The performance is measured against these targets. The

auditors conduct the survey of actual performance and compare with the goals set.

Important Areas of Human Resource Audit :

(1) Planning:

Planning is one of the major areas where human resource audit can be conducted. Planning of HR

requirement and effectiveness of forecasting and scheduling can be ascertained through HR audit. It is to be

seen whether the needs of HR were identified in time or not. If there is an indication through audit about

inaccurate forecast, the efforts can be made to improve the forecasting techniques for accurate results in future.

Through audit management knows whether there is surplus or shortage of manpower.

A review of recruitment and selection practices can be made to meet the future HR requirements.

Better programmes and procedure can be adopted by way of cost benefit, budgets. The training programmes can

be reviewed in terms of results obtained. Motivation of employees at all levels is the key aspect in HRM.


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Evaluation of employee motivation will show whether they feel at ease at work and have better prospect if they

work hard.

HR auditors should evaluate the communication in the organisation which is one of the major criteria

of failure or success. HR auditors should find out the causes of absenteeism, rate of accidents, labour turnover

and can make suggestion to improve them. In respect of all these appropriate policies can be formulated by the

management.

(2) Staffing and Development:

Staffing and development is yet another are a need to be evaluated with reference to results obtained,

programmes and procedures adopted and policies framed. Staffing is done through recruitment and selection.

Here the HR auditors need to evaluate the sources of recruitment and the number of persons hired by the

organisation. The success of these programmes depends upon the contributions made by the hired persons in the

achievement of organisational objectives.

Auditors have to see whether committed workforce is procured through recruitment and selection

programmes. They can then make appraisal of recruitment and selection policies, practices and results. As for

results are concerned they depend upon the effectiveness of H.R. policies and practices adopted by the

enterprise. For conducting the audit of results the HR auditors need to adopt the methods such as questionnaires,

checklists, personal data, and attitude and morale surveys productivity data, and costs, time.

The auditors should thoroughly check the records and statistics and should stress on their accurate

maintenance. The information in respect of disciplinary actions, absentees, transfers and promotions are

available in records. HR auditors have to examine the procedure and programmes adopted in respect of career

and succession planning. The policy for staffing should be formulated in to achieve organisational goals. In this

case cream should get due consideration that too without any discrimination.

As for training and development, proper policies need to be formulated by making the SWOT analysis

of the existing staff and training and development programmes should be prepared to meet the organisational

needs. The cost of training is increasing day by day.

Hence there must be evaluation of specified training and development programme. Auditors should see

whether the best practice is adopted or not. They should evaluate the training results in terms of cost per trainee

hour, average training hours per employee and revenues per employee per year etc. They can obtain the

feedback from reports and records available in the organisation.

(3) Organizing:

Organisational structures are meant for facilitating coordination, communication and collaboration. HR

auditors have to evaluate effectiveness of organisation structure in attaining the results. They can obtain

feedback from the employees and from reports and records. They can check the jobs assigned to the individual

employees, authority delegated to the subordinates, special task forces etc. H.R. auditors can also evaluate the

policy formulated for encouraging employees to accept change. They can also verify effectiveness of three way

communication.

(4) Commitment:

Enterprise wants committed employees. Efforts are taken by the management in this respect for

motivating individual and groups of employees. HR auditors have to examine the results of motivation through

increase in productivity, improvement in performance and costs. They also have to examine the programmes

and procedures followed for job enrichment, wage and salary administration, fringe benefits, morale of


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employees. They have to verify the satisfaction level of employees through the HR policies adopted by the

organisation. A satisfied employee is committed to the work.

(5) Administration:

HR auditors have to examine the style of leadership adopted by the management in dealing with the

subordinates. Leadership may be authoritative or participative should be evaluated. One of the benchmark in this

respect is delegation of authority.

Delegation is more in participative style. Auditors can assess the results of style of leadership adopted

in getting the things done through others by inviting suggestion, going through grievances of the staff,

disciplinary actions taken against the subordinates etc. Leadership results can also be visualized if auditors

examine the union management relationship and the employees getting promotions.

The auditors also have to examine the position of collective bargaining and its procedure to assess the

effectiveness of administration in the organisation. They have to look at the policy of the management in respect

of collective bargaining and employee participation in decision making.

(6) Research and Innovation:

Research and innovation is yet another area of HR audit. Here several experiments are conducted and

theories are put to test by the experts relating to quality design, marketing etc. Results obtained through this

Endeavour can be evaluated on the basis of changes brought about, experiments made and reports and other

similar publications.

Auditors can evaluate the results. They can also examine the programmes and procedures adopted for

R and D efforts. The management’s policy in respect of R & D efforts can be examined by the auditors and

necessary suggestions can be made by them in this regard.

HR Audit Practices of Public and Private Companies

Statement of the Problem

The HR Practices of Public and Private Telecom Companies.

Scope of the Study

For the research, Human Resource departments of BSNL and the Reliance Communication published

information is taken into consideration.

Objectives of the Study

a. To know the strength & weaknesses in HR Practices

b To suggest Remedies

Research Methodology

Sources of data

Secondary data are collected through books, journals, magazines and HR auditing websites.


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BSNL

Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian state-owned telecommunications

company headquartered in New Delhi, India. It was incorporated on 15 September 2000. It took over the

business of providing of telecom services and network management from the erstwhile Central Government

Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect from 1 October 2000 on

going concern basis. It is the largest provider of fixed telephony and fourth largest mobile telephony provider in

India, and is also a provider of broadband services. Recently BSNL faces many financial and people

management problems. And the following is the report of HR audit conducted in BSNL.

KPMG, a global management consultant firm was appointed by BSNL at a cost of Rs 64.20 lakhs to

realizing the need for strengthening the HR functions in the organization to achieve the goals. The HR auditing

committee submitted two sets of their reports on five human resource deliverables that are: 1) Personnel policy

2) Manpower planning 3) Norms for staffing 4) Incentives/performance appraisal and 5) Conduct and

disciplinary rules. The following are few of the recommendations of the HR audit process to the company:

a. The company was advised to prepare man power planning and manuals.

b. The Company was advised to formulate a recruitment policy to give a definite direction to the

process of recruitment to its different cadres.

c. The Company should formulate a well-defined, fair and transparent transfer policy based on the

consultant’s recommendations.

Strengths of HR System Problems

• By new recruitment cell, fresher’s are recruited through Union

Public Service Commission (UPSC).

• Effective training program to each cadre of employees.

• BSNL has pool of more than 3 lakhs of highly talented

employees.

• Among 30,000 executives, 10,000 are Graduate Engineers.

• A proposal for providing uniforms to 50,000 linesmen across

the country.

• Awards to recognize the employees in sales and marketing.

• Poor Grievances solving procedure.

• Laws and regulation, policies are not

formulated well.

• Poor HR management.

• Poor leadership. Different unions for

different cadres of employees.

• Poor working environment.

Reliance communication

Reliance Communications Ltd. (commonly called RCOM) is an Indian Internet access and

Telecommunications Company headquartered in Navi Mumbai, India. RCOM is India’s second largest telecom

operator. It is the 15th largest mobile phone operator with over 150 million subscribers. It is a subsidiary of

Reliance Group.


• Ranked as 6th ‘Best Companies to Work for in India’ by Business • Inadequate procedures to reduce


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Today on 2011.

• People friendly HR policies.

• Attractive salary package.

• Good working environment and culture such as Fun Fridays, Monthly

celebrations, parties and festival celebrations.

attrition rate.

• Incentives are not adequate.

• HR policy is not reviewed and

restructured frequently.

• Poor HR policies.

Findings

BSNL

a. Interview conducted from employees of BSNL revealed the dissatisfaction towards the HR

management system. The grievances are not rectified and many cases are still in pending against BSNL

administration by their employees.

b. There is no control over non-executives (Group C and Group D) in BSNL and it leads to disciplinary

issues, they are directed and backed by Trade unions.

Reliance communication

The Reliance has been offering excellent working atmosphere to their employees and also many

training programs to enhance the technical skills. Some issues related to the HR system such as poor incentives

causes low level of dissatisfaction among employees.

Recommendations

a. As a public sector entity, the problems regarding HR system of the public company could be

regulated and systemized by Ministry of Communications and Information Technology, Department of

Telecommunication.

b. Disciplinary mechanism in the public company can be strengthened.

c. The working culture of Reliance Communication is difficult for the employees to adopt and they

need minimum 3 years to adopt themselves to the organization culture. To avoid this problem,

orientation training to the fresher’s will be helpful.

Conclusion:

HR Audit is to get a clear judgement about the overall status of the organisation and also to find out

whether certain systems put in place are yielding any results. HR Audit also helps companies to figure out any

gaps or lapses and the reason for the same. It is concluded that Self-development, Skill development and Self-

evaluation are good predictors for Individual performance. Moreover, Growth & Development and Strategic

control measures are good predictors for organizational performance. Further it is concluded that Venturing into

new business and verticals, Attitude of the top management towards organizational and human capital

development are the key discriminate factors among the Practicing HR Audit.

References :

1. www.google.com

2. www.scribd.com

3. www.wkepedia.com


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4. Personnel & Human Resource Management - P. Subbarao

5. Human Resource Management – Dr. G.B. Baligar

6. Department of Management Studies – Jyotilaxmi M.


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A STUDY ON HUMAN RESOURCES ACCOUNTING AND ITS NEED FOR ORGANIZATIONS

CASE STUDY OF INDIAN ORGANIZATION

Ameersab L.Multani

Lecturer Dept of Commerce , Swami Vivekananda P U college-Bilagi

Savita Nayak

B com 2nd year student, BVVs college –Vidyagiri

Abstract

Without human resources the other resources cannot be operationally effective. The original health of the

organization is indicated by the human behavior variables, like group loyalty, skill, motivation and capacity for

effective interaction, communication and decision making. So the people are the most important assets of an

organization but the value of this asset yet to appear in financial statements Human Resource Accounting

(HRA) is the measurement of the cost and value of the people to the organization. It involves measuring costs

incurred by the organizations to recruit, select, hire, train and develop employees and judge their economic

value to the organization. With the accelerated growth in science and technology, the value of human capital is

gradually increasing and hence it is essential for a company to reflect the investment in human resources.

Introduction

All the processes of the organization are operated by human resource, hence valuation of this resource is very

necessary and information about the valuation should be given to the investors the management and others

through financial statements. Human resource accounting is basically an information system that tells

management what changes are occurring over time to the human resources of the business. In the early 1990s

industries were recognized the value and importance of human assets.

Need for the study

Human Resource Accounting is the process of identifying and reporting the investments made in the Human

Resources of an Organization that are presently not accounted for in the conventional accounting practices. But

it started gaining popularity in India. No model of HRA is accepted by the accounting bodies all over the world.

Considering the significance of human resources in knowledge based sectors initiatives should be taken by the

government along with other professionals, researchers and accounting bodies both at the national and

international levels for the measurement and reporting of such valuable assets. Researchers should come

forward to review the models as per the requirements of our country.

Objectives of study

� To study the Human Resources accounting practices.

� To study the purpose and need for HRA.

� To inspect the human resource accounting practices in Indian companies.


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Research methodology

The present paper is based on secondary data. The secondary data was also collected from annual reports of

various companies, reference books related to E-Commerce, M-Commerce, Information Technology, Human

Resource, Human Resource Accounting and Management etc as well as collected from the various National and

International Research Journals of related fields.

Origin of Human Resource Accounting

Recognizing human being as asset as old one. Form the observation of Indian History; it is evident that Emperor

Akbar gave importance to the nine jewels. Freedom fighters in India cannot be removed from the historical

pages of freedom movement of India. Sir William Petty was the pioneer in this direction. The first attempt to

value the human beings in monetary terms was made by him in 1691. Petty considered that labor was “the father

of wealth‟ and it must be included in any estimate of national wealth without fail.

Rensis Likert in the 1960s was the first to research in HR and emphasized the importance of strong pressures on

the HR's qualitative variables and on its benefits in the long-run.

Concept of Human Resource Accounting

What is HRA?

According to the AAA Committee on Human Resource accounting (1973) Human Resource Accounting is

nothing but “the process of identifying and measuring data related to human resource and communicating this

information to interested parties”. From this definition, we could recognize that HRA is not only involved in the

measurement of data related to placement, training and development of employees but also involved in the

evaluation of financial condition of people in an organization.

So we can define the HRA as the process of identifying and measuring data related to human resource for the

development and enhancement of economic value of interested parties associated with corresponding

organization.

In short, human resource accounting is the art of valuing, recording and presenting systematically the worth of

human resources in the books of accounts of an organization

Why? Human Resource Accounting:

Human Resource Accounting provides useful information to the management, financial analysts and employees

as stated below:

1. Human Resource Accounting helps the management in the Employment, locating and utilization of

human resources.

2. It helps in deciding the transfers, promotion, training and retrenchment of human resources.

3. It provides a basis for planning of human resources.

4. It helps to identify the causes of high labor turnover at various levels and taking preventive measures to

contain it.

5. It helps in understanding and assessing the inner strength of an organization

6. It provides valuable information for persons interested in making long term investment in the firm.

7. Further, it is to help the organization in decision making in the following areas:

� Direct Recruitment V/s promotion.

� Transfer V/s Retention.


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� Retrenchment V/s Retention

� Impact on budgetary controls of human relations and organizational behavior.

Human resources accounting practice in selected Indian companies

An increasing trend towards the measurement and reporting of human assets, particularly in the public sector, is

noticeable during the past 25 years. The companies, who are presently reporting human-asset valuations,

include:

a. Infosys Technologies Ltd.

b. Steel Authority of India Ltd (SAIL)

c. Bharat heavy Electrical Ltd (BHEL)

d. Oil and Natural Gas Commissioning (ONGC)

e. Oil India Ltd.

f. Project and Equipment corporation of India.(PEC)

g. Engineers India limited

h. Mineral and Metal trading Corporation of India.(MMTC)

i. Electrical India Ltd

j. Hindustan Shipyard Ltd

k. Cement corporation of India. (CCI)

l. Tata Engineering and Locomotive Works

m. Southern Petrochemicals Industries Corporation Ltd

Methods of valuation of human assets:

There are a number of methods suggested for the valuation of human assets. Many of these methods are based

on the valuation of physical and financial assets while others take into account human consideration. Major

methods of valuation of human asserts are historical cost, replacement cost, standard cost present value of future

earnings and expected realizable value. On scanning through literature, the approaches to HRA can be broadly

classified as follows:

1) Cost based approaches:

� Historical Cost

� Replacement Cost

� Opportunity Cost

� Standard Cost

2) Monetary value based approaches:

� The Lev and Schwartz Model

� The Eric Flamholtz Model

� Morse Model

3) Non- monetary value -based approaches:

� Likert Model

� The Flamholtz Model

� Ogan Model


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Cost based approaches:

Historical Cost approach: Brumnet, Flamholtz and Pyle have developed this method. Under this approach

actual cost incurred towards recruitment, hiring, training and developing human resources of the organization

are capitalized and amortized over the future expected useful life of the human resources. Certain part of costs

will be written off in proportion to the income of the future years which those human resources will provide

service.

Replacement Cost approach: Rensis Likert & Eric G.Flamholtz propounded it. This is a measure of cost to

replace a firm‟s existing human resources. Human Resources are to be valued on the assumption that a new

similar organization has to be created from scratch and the cost to the firm is calculated if the existing resources

were required to be replaced with other persons of equivalent talents and experience. It takes into account all

costs involved in recruiting, hiring, training and developing the replacement to the present level of efficiency.

Opportunity Cost approach: Heckiman and Jones first advocated this approach. This is also known as “Market

Value Method”. This method of measuring the value of human resources is based on the economist’s concept of

opportunity cost.

Standard Cost approach: David Watson has suggested this approach. Instead of using historical or replacement

cost, many companies use standard cost for the valuation of human assets just as it is used for physical and

financial assets. For using standard cost, employees of an organization are categorized into different groups

based on their hierarchical positions.

Monetary value based approaches:

According to this approach, the value of human resources of an organization is determined according to their

present value to the organization. For determination of the present value, a number of valuation models have

been developed. Some of the important models are as follows –

The Lev and Schwartz Model (Present value of future earnings method)

This model has been developed by Lav and Schwartz (1971). According to this model, the value of human

resources is ascertained as follows –

1. All employees are classified in specific groups according to their age and skill.

2. Average annual earnings are determined for various ranges of age.

3. The total earnings which each group will get up to retirement age are calculated.

4. The total earnings calculated as above are discounted at the rate of cost of capital. The value thus arrived at

will be the value of human resources/assets.

Flamholtz Model (Reward Valuation method)

This model has been suggested by Flamholtz (1971). This is an improvement on present value of future earnings

model since it takes into consideration the possibility or probability or an employee’s movement.

Morse Model (Net Benefit Model)

This approach has been suggested by Morse (1973). According to this approach, the value of human resources is

equivalent to the present value of net benefits derived by the organization from the service of its employees.

CONCLUSION

The Indian Companies Act does not provide any scope for furnishing any significant information about human

resources in financial statements. Human Resource Accounting is the process of identifying and reporting the

investments made in the Human Resources of an Organization that are presently not accounted for in the


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conventional accounting practices. But it started gaining popularity in India. No model of HRA is accepted by

the accounting bodies all over the world. The models devised so far for valuation of HRA have been developed

in the USA taking into consideration the prevailing environment. Most of the companies are using the Lev and

Schwartz model with or without modifications as per their convenience. Considering the significance of human

resources in knowledge based sectors initiatives should be taken by the government along with other

professionals, researchers and accounting bodies both at the national and international levels for the

measurement and reporting of such valuable assets. Researchers should come forward to review the models as

per the requirements of our country.

REFRENCES

Journals

�� Dr.Partap Singh,Mr.Virender Singh, Mr.Joginder Grewal(2016) Human resources account in India a birds

eye view

�� Prabhakar Rao (1993) “Human Asset Accounting: An Evaluation of the Indian Practices”

Books

� Advance accountancy vol-2 by S N Maheahwar-Vikas publication.

� Advance accountancy by Dr S.K. Singh-SBPD Publication.

Websites

��www.articlesnatch.com

��www.google.com

��www.wikipedia.com

��www.slideshare.com


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AN EMPIRICAL INVESTIGATION ON THE COMPARATIVE STUDY OF GOVERNMENT AND

PRIVATE HOSPITAL ON THE BASES OF SERVICE QUALITY DIMENSIONS

Dr.Rashmi Ram Hunnur

Associate Professor, Department of Management Studies, Basaveshwar Engineering College

(Autonomous), Bagalkot, Karnataka, India.

Dr.Sanjay V Hanji

Associate Professor, Department of Management Studies, Basaveshwar Engineering College

(Autonomous), Bagalkot, Karnataka, India.

ABSTRACT

The fundamental needs of an individual are food, water, shelter, clothing and air. In addition to this, health

is also the most basic and primary need of an individual. It makes the nation progress in socio-economic,

scientific, literary and culture sphere. Health is an input as well as an output. An adequate and equitable

health care system stimulates the development through improving human productivity. Investment in health

is an investment in human capital. A healthy individual is an asset to a community while a sick person is

liability. The service dimensions play a very important role in the effectiveness of the service delivery. It

has been observed that even the facilities are same in government and private hospitals but still the service

delivery differs. Hence the study, “An Empirical Investigation on the Comparative Study of Government

and Private Hospital on the bases of Service Quality Dimensions”

Key words: Empathy, Reliability, Responsiveness, Assurance, Tangibles.

INTRODUCTION

(Zarei A, et al. 2012), Highly competitive market in the private hospital industry has caused increasing

pressure on them to provide services with higher quality. The aim of this study was to determine the

different dimensions of the service quality in the private hospitals of evaluating the service quality from the

patients' perspective. The outcome of the study shown a significant difference between the expectations

scores based on gender, education level, and previous hospitalization in that same hospital. Also, there was

a significant difference between the perception scores based on insurance coverage, average length of stay,

and patients' health conditions on discharge. Service process has been identified as the core of service

delivery, not only frequently visible to customers (patients), but often constituting the very service itself

(Johnston and Clerk, 2000). Unfortunately, many private organizations and government outfits devote little

attention to understanding and designing this very aspect of their businesses. Research has found that 4

percent of hospital patients suffer an avoidable injury, 7 percent experience medication error, and 45

percent experience some medical mismanagement (Andrew et al 1977). In a recent study conducted by

(Lagasse et al. 1995), 8 percent anesthetises error were found to be due to human error and 92 percent due

to system error. (Prabha Ramseook-Munhurrun et al. 2010) Patients dissatisfaction occurs when

expectations of the consumers are greater than actual performance of service delivering by Government

hospital and perceived service quality is less than the satisfactory level. The behavior of the nurses, doctors,

and facilitation payments (staff expectation of extra payment for normal services that were provided to the

patients) had been appeared as statistically significant determinants of patients’ satisfaction. Tangibles

composite (all the items that were related to the cleanliness of the hospital and staff) and input adequacy

(availability of medicines and equipment whenever needed), appeared as statistically insignificant.


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Service Quality Dimensions

� Empathy: Caring, individualized attention the firm provides its customers.

� Reliability: Ability to perform the promised service dependably and accurately.

� Responsiveness: Willingness to help customers and provide prompt service.

� Assurance: Knowledge and courtesy of employees and their ability to convey trust and confidence.

� Tangibles: Physical facilities, equipment, and appearance of personnel

PROBLEM STATEMENT

Many people are suffering from various diseases, accident etc. Hospitals should give prompt treatment to

patients. Some of the problems are lack of adequate and timely medical treatment to the patients. The other

problems are non-availability of medical facility, inadequate competent doctors, nurses and employees, etc.

Many of the time the people fail to understand the reasons for service failure. It has been witnessed that,

even though the government is providing facilities and is appointing qualified doctors but still, the services

provided in government hospitals are drastically poor than the services delivered in private hospitals.

Hence, the study “An Empirical Investigation on the Comparative Study of Government and Private

Hospital on the bases of Service Quality Dimensions”.

OBJECTIVES OF THE STUDY

• The objective of the study is to analyze the factors influencing the service quality dimensions in

government hospital and private hospital.

• To do a comparative study on government and private hospital on the bases of service quality

dimensions.

RESEARCH METHODOLOGY

Pilot Study

A pilot study is carried before the actual study to establish the feasibility of the study and to identify any

problems that may exist (Mauch and Birch; 1998). The questionnaire was distributed to 20 respondents in

Bagalkot of Karnataka State, before the actual study commenced.

Sample for Pilot Study

The respondents were asked to identify any problems that they may have had with the questionnaire. After the

discussion with these respondents and as well as discussion with the hospital staff, the questionnaire was

amended and the consequent concerns or additional contributions were taken into consideration.

The Research Sample

The study was conducted in Bagalkot. The sample size is 50 for government hospital and 50 for private hospital.


108

DATA ANALYSIS AND INTERPRETATION

Table No.1: Gender

Analysis:

• Government Hospital: Among 50 respondents, 82% of the respondents are male, and only 18% of

respondents are Female.

• Private Hospital: Among 50 respondents, 56% of the respondents are female, and 44% of the

respondents are male.

Interpretation: By the analysis it can be interpreted that the most of the respondents in Government

hospitals are male where as in Private hospital most of the respondents are female.

Table No.2: Education

Analysis:

• Government Hospital: Among 50 respondents, 64% of the respondents are illiterate, 24% of the

respondent’s educational level is primary, 8% of respondents belong to the group of secondary

education and only 4% of the respondent’s education level is Graduation.

• Private Hospital: Among 50 respondents, 44% of the respondents have completed their graduate, 36%

of the respondent’s educational level is primary, 10% of the respondents have completed their

secondary education, 4% of the respondents are illiterate, and further 4% of the respondents are post

graduate.

Government Hospital Private Hospital

Government Hospital Private Hospital


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Interpretation: By the analysis it can be inferred that most of the respondents in Government hospital are

illiterate; they choose Government hospitals may be because of the cost, whereas in private hospital most of

the respondents are educated, where they are more conscious about the health rather than the cost

Table No.3: Preference

Analysis:

• Government Hospital: Among 50 respondents, 54% of the respondents said they prefer Government

hospitals , whereas 46% of the respondents said private hospitals.

• Private Hospital: Among 50 respondents, 96% of the respondents said they prefer the private hospitals

,whereas 4% of the respondents said Government hospitals.

Interpretation: By the above analysis it can be inferred that, the respondents from the Government hospitals

said they want to prefer private hospital because they might know that the services given in the private are much

better than the Government but because of the high prices they still prefer Government hospitals. But still if we

see, most of the respondents from Government hospitals said they will prefer Government hospital, the reason

might be that they are happy with service because of cost free treatment, food, medicine, and other benefits.

Whereas the most of the respondents from private said they will prefer private hospitals only, the reason might

be because of hygiene, quality, modernised treatment and good service with special concerned patients.

Government Hospital

Private Hospital


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Table No.4: Reliability

Interpretation:

Government Hospital : Form the above analysis it is interpreted that most of respondents from Government

hospitals said that it is difficult to say whether the Government hospital is providing the services right the first

time or not, they also say that it’s difficult to say whether the Government hospital is considering the best

interest of their patient’s while providing the treatment, where as they also said (38%) that the Government

hospital understands the requirement of the patients and give individual attention to them, further, they also said

its undecided whether the hospital is providing them the detailed information about government facilities or not.

The reasons might be, more number of patients in Government hospital is the one why they are not able to give

personal attention. As the employees belong to government hospital they are least bothered about the

competition faced by the private hospitals. Overall it can be inferred that the respondents are not relied on

Government hospitals

Private Hospital: Form the above analysis it can be interpreted that, most of respondents believes that the

private hospital is providing the services right the first time, they consider the patients interest and then provide

the treatment, where as they also agreed that the employees of private hospital understands the requirements of

the patients and give them the individual attention. The reason is the private hospital employees take more

concern towards their patients, it become compulsion for them because of huge competition among private

hospitals, the management personally take care about the staff behaviour with their patients. And there is a

compulsion rule for the private hospitals that they have to make aware about the medical benefits provided by

the government like Yeshaswini Yojane , Bala Sanjivini, etc.

Comparative statement: By comparing both the data of Government and private hospital, it can be inferred

that the private hospital is providing better services at the first time, they are also considering the interests of the

patients, the employees understands the requirements of the patients and also give them individual attention, and

they also provide the information about the government facilities. Overall, the respondents are more reliable on

private hospital rather than Government hospital.

Table No. 5: Responsibility


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Interpretation:

Government Hospital : From the above analysis it can be interpreted that most of the respondents said they

neither agree nor disagree for the statements like the hospital employees takes immediate action , employees of

government hospital are always willing to help their patients, employees respond properly to the patients

problems inspite of their busy schedule. The reasons might be because of the improper management, and also

because of over flow of the patients and inefficient tools and medicines and lack of concern towards the patients

and their feeling of secured job.

Private Hospital: From the above analysis it can be interpreted that most of the respondents strongly agreed that

the private hospital employees take immediate action, the employees will provide good service, employees are

always willing to help their patients, and the employees of private hospital always respond properly to their

patient’s problems in spite of their busy schedule. The reason might be, because of the high involvement of

management, the employees feel that if they fail to perform they will be terminated from their jobs; the

management takes serious action against the employees when they get complaints from the patients. Overall the

respondents feel that the employees of private hospital know their responsibilities and work accordingly, and the

respondents are very happy about the employee’s behaviour.

Comparative statement : In private hospital employees take immediate action on the patients problems, the

management takes action when they get complaints about their employees, the employees respond properly to

their patients problems, whereas in Government hospital they don’t even attend the patients properly, the

employees are not willing to help their patients, and even they don’t respond properly. Overall, the respondents

of private hospital are very happy with the dimension of responsibility rather than Government hospital.

Table No.6: Assurance


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Interpretation:

Government Hospital: After the analysis it can be interpreted that most of the people neither agree nor disagree

that the doctors are qualified to provide the service in Government hospital, the reason might be because the

respondents might not be aware of the qualification of the doctors, so it’s difficult for them to say about the

same. The respondents feels that the doctors are not able to solve their problem as the doctors are busy with

their schedule, they also feel that the employees are not helpful, they don’t greet the patients, and the doctors

don’t maintain the confidentiality about their patients personal information. The respondents said the doctors

don’t have consulting hours convenient to their patients; the reason might be because the doctors don’t stay for

long time in the Government hospital because they are committed to their private hospitals.

Private Hospital: After the analysis it can be interpreted that most of the people strongly agree that doctors are

qualified to provide the service to their patients, because in the private hospital the doctors are from good

background like MD Specialists hence they understand the core problem of the patient and this makes the

people feel positive about the hospital and doctors. Many respondents strongly agree that doctors solve their

problem, as the doctors are committed even though with their busy schedule, the employees are help full in

private hospital, because they feel that they have to work and they should have helping nature, and this is

strongly agreed by many people that doctors greet during the time of checking, which creates belongingness

among the patients, the private hospital doctors maintain secrecy about personal information about their

patients, it is agreed that the hospital provide significant rewards through membership cards for the regular

visiting patients, the hospital have convenient consulting hours to their patients, because the doctors stay for

long time in the hospital as they are committed to their work as these hospital generate their bread and butter.

Comparative statement : In private hospital doctors are more qualified, they approach the patients and greet

them in a very well manner, the private hospital provide membership cards for the regular visiting patients,

whereas the Government hospital does not provide proper service neither they treat their patients with personal

care and attention. Overall, the respondents are more assured about the private hospital staff rather than the

Government hospital staff.

Table.No.7: Empathy


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Interpretation:

Government Hospital: From the above graph, it can be interpreted that most of the respondents said they neither

agree nor disagree about Government hospital employees take immediate action, the reason is because of the

improper management and also over flow of the Patients and inefficient tools and medicines and lack of concern

towards the patients and their feeling of secured job. whereas most of the people also said it is undecided to say

whether the employees will be providing good service or not after complaining to the management, the reason

they mentioned is, sometimes when they complain to the management, the management takes the action and

sometimes does not, the reason may be shortage of employees, lack of concern towards the patients, the

management is not interested in the complaints and they believe in their employees. Most of the employees

disagree that employees are always willing to help their patients; the reason might be the employees may be

busy with their work. The number of employees is very less compared to the patient’s regular inflow, and they

feel exhausted with their existing work.

Private Hospital: After the graph, it is interpreted that most of the people strongly agree that doctors will listen

carefully to their needs because the doctors are available most of the time. Most of the respondents strongly

agreed that doctors pay individual attention to their patients, management people take personal care, doctors

understands the specific needs of their patients, medical staff is consistently courteous with their patients, and

further, overall hospital provides quality service to their patients. The reason might be, because as there are

many numbers of private hospitals the competition is more and it becomes necessary for them to treat their

patients in well manner, if the patients feel comfortable and properly treated than only they visit the hospital

again and again during their ill health. Overall, all the private hospitals empathy dimension is satisfied.

Comparative statement: The doctors in private hospital understand the needs of the patients and take personnel

care and staffs supports the patient, whereas in government hospital they do not provide individual attention to

their patients and don’t provide quality service. Overall, the private hospital staffs are more empathetic towards

their patients rather than government hospital.

Table No.8: Tangible

impact of training and development programmes on …

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