Management Book(F).indd

Emerging Perspectives in Management, Entrepreneurship and Innovation

Emerging Perspectives in Management, Entrepreneurship and Innovation

Editors Ashita Chadha, Ritu Sharma and Dr. Shashi Singhal

Emerging Perspectives in Management, Entrepreneurship and Innovation Editors: Ashita Chadha, Ritu Sharma and Dr. Shashi Singhal

www.whitefalconpublishing.com All rights reserved First Edition, 2018 © Chandigarh University, 2018 Cover design © White Falcon Publishing, 2018 Cover image © freepik.com No part of this publication may be reproduced, or stored in a retrieval system, or transmitted in any form by means of electronic, mechanical, photocopying or otherwise, without prior written permission from the University. Requests for permission should be addressed to [email protected] ISBN - 978-81-938624-3-8

Preface

The 21st Century is turbulent times for business due to volatile and complex challenges, a consequence of disruptive innovations. Management as a science and art is growing at a phenomenal pace such that the depth and width of management knowledge is doubling every few years. The global business environment has seen a paradigm shift from being human centric in the past decades to becoming technology centric, affecting all management resources from man, money, machine, methods to material. Talent acquisition and talent management are now focused on hiring and retaining human resources with innovative ideas and expert knowledge skills. Money for funding enterprises is being availed through financial markets across the globe wherever the finance costs are minimal. Machines are now transformed, being technology driven and digitalized for increasing efficiency and reducing human effort. Methods are being benchmarked and standardized for decreasing procedural costs and time to increase effectiveness. Newer materials are being patented for producing products and services for customer consumption. Multifaceted transformations occurring in the world are accountable for the development of new Business Models. The emergence of novel business ecosystem of globalization, technological advancements, quick product obsolescence and rapid changes in markets have given rise to innovative product development, strategic financial inclusion, agile human resources, supply chain integration, nimble technology start-ups, concurrent engineering, augmented and artificial intelligence, cloud infrastructure, knowledge management and swift organizational learning. Any organization not continuously evolving and keeping abreast with the opportunities and challenges in the present business environment will surely reach obsolescence. This publication is an endeavour to compile management knowledge influencing current changes occurring in business and industry. Innovation and Entrepreneurship are considered the driving forces of these dynamic changes and thus sections on these are imperative for a holistic understanding of the management perspective.

Organization of the Book Chapter 1 titled as ‘VUCA Challenge: Transforming Business Models in the Current Era’ assess the Volatility, Uncertainty, Complexity and Ambiguity in the environment impacting work across governments, sectors, industries, businesses and organizations. It questions the ability of leadership in conducting business and probes the way they lead their human resources and companies towards sustainability. The chapter assess strategies leaders can adopt proactively to encounter fast paced transformations and technological disruptions in the VUCA environment. Chapter 2 titled ‘Celebrity Endorsement: A Tested Advertising Weapon’ focuses on the influence Human brands have on purchase intent of consumers. It aims at understanding the influence of celebrity endorsement with celebrity factors, attitudinal factors and consumer involvement on the brand intentions. Going further, the chapter highlights the managerial implications of various aspects of celebrity endorsements in promoting a product, service, also entertainment and sports events. Chapter 3 titled ‘Knowledge Management Strategy: Putting Knowledge to Work, Wisely!’ provides a brief overview on acquiring, storing and distributing knowledge as an important function of a business organization answering questions on whether organizational culture promotes knowledge creation, assist to bridge the knowledge gap, help in application and transfer of knowledge. The work reviews literature to interpret knowledge management in different fields, identifying its scope and importance providing a comprehensive summary of different knowledge taxonomies and their implications.

viPreface Chapter 4 titled ‘Role of Independent Financial Advisors in Mutual Fund Industry in India’ discusses the influence independent financial advisors (IFA) have in the mutual fund industry. The chapter describes the benefits of becoming a mutual fund advisor and explains the requirements to become a Mutual Fund Distributor. The chapter explains the role of Independent Financial Advisors in assisting investors manage their money as investment in individual stocks is much more risky than investment in a diversified portfolio. Chapter 5 titled ‘Digital Marketing: Tool to leverage Competitive Edge in the Banking Industry’ creates an understanding of Digital Marketing particularly focusing on Banking Industry and usage of tools of digital marketing to leverage the competitive edge. The chapter discusses how tools like Search engine optimization, pay per click, content marketing, mobile marketing and social media marketing are benefitting marketing in banking industry. Along with the benefits of digital marketing, the chapter discusses few challenges while adopting digital marketing tools. Chapter 6 titled ‘Green HR-An Initiative towards Environment Sustainability’ recognizes environmental damages to our planet and the necessity for organizations to participate in green initiatives. Green HR deals with HRM policies focused on sustainable use of resources within business organizations and propagate environmental sustainability. Green HR includes initiatives for environment friendly HR practices and preservation of knowledge capital. The chapter explains the concept of green HR and various HR processes with green initiatives taken by various organizations Chapter 7 titled ‘Global Management’ finds the opportunities companies are getting to expand their business globally due to technology. Global management assists in combining knowledge with culture, tradition and other practices which can help companies establish their business internationally. The chapter aims to explain the concept of Global business, business strategies, roles and responsibilities of a Global Manager. Chapter 8 titled ‘Stock Exchanges and its Recent Developments’ evaluate the importance of stock exchange as an important institution for the development of capital market of India. The chapter describes the structure, function and impact of global changes on capital markets of developing countries, particularly Indian Capital Markets. It discusses the usefulness of information systems for the growth and implementation of the stock exchange the realization of which require key financial resources, as well as human and technical resources. The chapter gives the functions and structure of Indian stock exchanges and its recent development. Chapter 9 titled ‘Indian Financial Market and Mutual Fund: A Review’ gives an overview of financial system and in the elements of financial system have been elaborated that are investors, borrowers, regulatory bodies and intermediaries. The chapter articulates that mutual funds have sufficient rack space to develop into an industry and can be classified on the basis of various heads like investment objectives, asset class and structure. It concludes that the conduct of the investor can be influenced by an internal and external environment. Chapter 10 titled ‘An Overview of GST in India’ has provided the crux of GST since its inception. So, GST is a consumption tax which stands for Goods and Services Tax levied by the Indian Government on sale of goods and service. The comparison of GST in India has been done with other countries and the overall impact of GST on Indian Economy has been explained to establish India as a true common market through the pipeline of GST by avoiding the double taxation from India. Chapter 11 titled ‘Digital Marketing’ explains digital marketing or online marketing or internet marketing adds value for industries as it is cost efficient and promotes the brand through electronic media to communicate the message to the target audience. The purpose of the chapter is to elucidate the benefits of digital marketing in developing new customers and improving retention of existing consumers. It concludes that companies should focus on creating easy understanding for consumers and perfect plans for media in order to promote digital marketing performance of the firms.

Prefacevii Chapter 12 titled ‘Impact Investing in India - A Silent Revolution’ studies how impact investing has revolutionized in India. Impact investments are those investments which create social or environmental impact and also generate a financial return. This chapter explains the features of impact investing like intentionality, investment with return expectations and explained the ESG concept and it uses ‘do-no-harm’ approach or passive approach. The recommendations to promote the investing impact are also given like to pursue transparency measures, to expand funds and governance reporting. Chapter 13 titled ‘Way Forward in Overcoming the Digital Divide in Business: A Review’ is related to overcoming the digital divide in business in coming future. It has explained the concept of innovation and steps that can be taken in future to eliminate the digital divide like Partnerships, Ventures, Accelerators and Acquisitions; Open Innovation; Integrated Supply Chain Approach; and Reach of Artificial Intelligence. Hence, the chapter concludes that technology challenges traditional thinking as profitability does not rest on incremental innovation and diversification alone but digital reinvention is the need of the hour. Chapter 14 titled ‘Industrial Development: A Key towards Economic Development’ raises the employment prospects through industrialization and benefits to national growth and upgrading standard of living. The chapter through literature overview discusses how industrialization offers significant dynamic benefits essential for altering the traditional structure of less developed economies. Taking evidence from history, countries with strong industrial sector have shown speedy economic growth bringing about perceptible rise in national income of the population. It concludes by elucidating the barriers to the process of industrial development. Chapter 15 titled ‘Patenting Business Methods in India’ describes business method patents as new strategies for incorporating web based business (e-commerce), banking and tax compliance etc. that are critical resources for both autonomous creators and major corporations. Business Method Patents have been incorporated into WIPO agreement which fundamentally fall in G06Q class. The chapter through an overview of literature discusses cases where business methods can be patented in India. Chapter 16 titled ‘Promoting Organizational Citizenship Behaviour (OCB) In Indian NGOs for Sustainable Development - A Theoretical Framework’ highlights how to promote organizational citizenship behaviour among the employees of NGO’s. OCB is extra role behaviour or voluntary acts beyond the role specifications shown by employee in an organizational environment. The chapter frames some strategies in respect with all five dimensions of OCB which may help management of NGO as well as other stakeholders to promote OCB. Chapter 17 titled ‘Psychological Factor and Role of Interventions for Employees in an Organization’ analyzes various psychological factors such as stress, motivation, expectations, skills and abilities that foster the potential and output of employee. The chapter identifies Psychological interventions, training and development in the field for bettering the performance of individuals and groups in organizational setting. Chapter 18 titled ‘Spiritual Approach of Leadership in Educational Management’ provides the way to manage leadership in educational management with help of spiritual approach. The chapter explains concepts of educational management and leadership in educational management elaborating on developing transformational leadership as essential to do the situation analysis, to create school based vision and many more. It is concluded that there is crisis of good leadership in all spheres of education. But effective leaders exceptionally a few in number can be groomed to become spiritual that has a multiplier effect. Chapter 19 titled ‘Impression of Pre and Post Training On Women Development from Skill Development Programmes’ presents the impact of training and development measures/schemes on the skill development, self-reliance, decision making power and verbal ability of women entrepreneurs, pre and post these training measures. The chapter discusses the influence of skill development training programmes on economic and social development of women in Indian society at large.

viiiPreface Chapter 20 titled ‘Challenges and Opportunities with IT Cloud Capability’ elaborates the concept of cloud computing with its challenges and opportunities. Services being provided by cloud computing has been stated. The impact of cloud computing has been explained like Restructuring of business model, Digitalization of business model, Workforce/Jobs creation and others. Hence, it can be concluded that cloud computing allows companies to focus on doing what they know best, and not on spending a lot of money and time on IT processes Chapter 21 titled ‘Cyberloafing: A Transpiring Rage’ illustrates cyberloafing as the unauthorized exercise of roving cyberspace visiting non-task linked websites for private concerns & reasons. Cyberloafing is categorized in two parts: hierarchical factors and personal/individual factors. The arguments in favour and against are examined. This chapter discusses effects of cyber-loafing on employee productivity. More specifically, efforts have been made to highlights the leading factors of cyber loafing & its impact on performance & productivity of taskforce in organizations. Chapter 22 titled ‘Automation and Financial Planning’ explains the role of a financial planner in documenting financial planning services and compares Robo Advisors with Human Advisors The road of success for robo advisors in India is a difficult one unlike in USA, UK or Japan where people are comfortable with automated mode of financial planning. The chapter discusses roles and responsibilities of start ups in India providing online financial advisory cum execution services Chapter 23 titled ‘Prospects of Cloud Computing in Business’ explains the advantage and disadvantage, type of cloud computing in small and medium scale organizations. The cloud computing term is type of network which helps in business to providing different type of services like: creating new apps and services, storage, backup, and recover data, hosting of websites and blogs, streaming of audios and videos, delivering software on demand. The chapter creates awareness for adoption of cloud computing to increase growth and development for small scale organization. Chapter 24 titled ‘Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier in Supply Chain Network’ introduces a new methodology for supplier selection, unifying numerous techniques viz. Factor Analysis, FAHP (Fuzzy Analytic Hierarchy Process), TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) and DEA (Data Envelopment Analysis) to analyse and select the best supplier. The chapter exhibits a real world case to enable manufacturing organizations to select best supplier for their business. Chapter 25 titled ‘Business Process Reengineering - Challenges in Family Business’ elaborates business process reengineering techniques used to build family owned business. Every business organization has a unique arrangement of difficulties and issues. Family business goes through different phases of development and improvement over the time. The chapter discusses the challenges faced by family owned business and redesigns business process through reengineering techniques. Chapter 26 titled ‘Women Entrepreneurship: Challenges and Issues’ considers Women Entrepreneurship as a vital technique in poverty reduction and unemployment. The need of the hour is to motivate and empower them to set up their own enterprise. Support of family and government policy is useful to beat different challenges. The chapter concentrates on opportunities for economic empowerment and challenges faced by women entrepreneurs at present. Chapter 27 titled ‘Women Entrepreneurs and Society: The role of government’ looks towards the opportunities that a women entrepreneur can provide to the society and economy, the barriers that women face in becoming an entrepreneur. The chapter discusses the support of government towards women by introducing various schemes which helps women to become entrepreneurs. Chapter 28 titled ‘Farm Entrepreneurship: A Path for Doubling Farmers Income’ discusses conventional methods of farming and farmers opting for single crop or enterprise at a time in the present, but in integrated farming system, farmers can choose more than two enterprises at one time. In states like Punjab and Haryana, farmers opt for dairy, poultry, pisci-culture, forestry, olericulture, floriculture, mushroom production & orchards along with agronomic crops. The chapter helps to identify profitable farming approach which will increase income and provide better opportunities to the farmers.

Prefaceix Chapter 29 titled ‘Human Resource Practices: A Case Study on Swan Group of Companies’ describes human resource policies established at Swan Group Mohali and how these policies and Human Resource practices help in increasing the efficiency of the employees and retaining them for longer period of time. The chapter establishes a point of view that stress free and competent environment is helpful in retaining and acquiring best talent for any organization and such an environment can only be created through efficient and effective HR policies and practices. Chapter 30 titled ‘Business Model analysis for online shopping companies: Case study of Flipkart’ illustrates the Electronic commerce as a unique business model innovation with Flipkart as the case identifying its Company profile, Payment Gateway, Logistics, Digital Media, Product Launches, Wholesale (Cash and Carry) business, website etc. The chapter compares its operations to that of Alibaba and Amazon. Chapter 31 titled ‘Effective and Efficient Management of Rural Water Resources – A Case Study of Garhshankar Region’ discusses water, a key resource for human survival being under severe threat of unavailability. The case gives a three-point strategy for promoting human endeavour towards coming to terms with this vital Earth issue. The chapter is an examination of levels of awareness of rural youth, as well as analyzes their views on conservation of precious resources through the adoption of innovative water purifying mechanisms like Root zone or Reed Zone technology. Chapter 32 titled ‘Push Factors in the Management Dynamics among SHG’s of Punjab: A Case Study’ is an empirical study on the manner of operations adopted by members of women Self Help Groups in Punjab. The case depicts how women who live in their homes have brought about a veritable revolution by adopting the approach of Self Help Groups’ casting the spotlight on positive and negative features of the women’s struggle to find acceptability. It examines the hierarchical factors of husband, family and social setting that pull back a woman from participating in the SHG movement examining the fragile substratum of self-doubt, fear of rejection and recrimination. Chapter 33 titled ‘Conditional Cash Transfer Schemes in the Indian Context: Key Takeaways from Brazil and Mexico Conditional Cash Transfers (CTs)’ considers opinions, political, financial and functional challenges that hinder the implementation of conditional cash transfers in the Indian context. It uses a three-pronged approach to arrive at a conclusive verdict on introducing cash transfer programs in India by utilizing secondary data to evaluate the impact of cash transfers on poverty alleviation while systematically analyzing CCTs in Brazil and Mexico The chapter concludes its findings with suggestions on key policy dimensions to be kept in mind while designing and launching a CCT for India. Editors

Foreword

In the era of digitization new developments taking place in the area of management and technology at a very fast pace. The Internet, social media, smart phones and tablet computers are become the vital tools to gather information about the happening on the globe. There is an urgent need to disseminate and exchange information on these developments. Such an exchange can help the researchers and academicians in attaining greater level of success in their chosen fields of activities and help the researchers in applying this information in achieving goals of higher productivity and better resource management. Besides, the curriculum of technical and education needs to be updated at regular intervals, by incorporating these developments so that graduates coming out of the portals of technical institutions are equipped with most modern information. I am pleased to write the foreword for the book entitled Emerging Perspectives in Management, Entrepreneurship and Innovation. The book includes the book chapters on the various topics ranging from women Entrepreneurship to Social media, Cash transfer system to Industrial development. After reading the book I have found that various chapters of this book cover much needed topics in the field of management and technology. The book also helps the researchers who wish to work on the multidisciplinary research areas. I am sure that the book will not only provide a useful forum to the author’s to share their expertise in the field of management but also be professionally beneficial to them.

Dr. R.S. Bawa. Vice Chancellor. Chandigarh University

Contents

Part I Emerging Management Perspectives 1.. VUCA Challenge: Transforming Business Models in the Current Era�� 3 Ashita Chadha and Ritu Sharma 2.. Celebrity Endorsement: A Tested Advertising Weapon�� 9 Dr. Nilesh Arora and Dr. Gagandeep Kaur 3.. Knowledge Management Strategy: Putting Knowledge to Work, Wisely!�� 15 Chitra 4.. Role of Independent Financial Advisors in Mutual Fund Industry in India��20 Tejinder Singh and Dr Rahul Hakhu 5.. Digital Marketing: Tool to leverage Competitive Edge in the Banking Industry�� 24 Dr. Bhupinder P S Chahal and Rupali Khanna 6.. Green HR- An Initiative towards Environment Sustainability�� 33 Ritu Sharma and Vishal Choudhary 7.. Global Management�� 43 Parmod Kumar and Nikita Sharma 8.. Stock Exchanges and its Recent Developments��50 Geetika Madaan 9.. Indian Financial Market and Mutual Fund: A Review�� 58 Annu Purthi 10.. An Overview of GST in India��64 Diksha Ahuja 11.. Digital Marketing��68 Kritika Gupta 12.. Impact Investing in India - A Silent Revolution��73 Pooja Bhanot 13.. Way Forward in Overcoming the Digital Divide in Business: A Review��77 Gaganjot Kaur, Dr. Nancy Bawa, Neelam Sharma and Naveen Garg

xivContents 14.. Industrial Development: A Key towards Economic Development�� 82 Dr. Gurpreet Kaur 15.. Patenting Business Methods in India�� 87 Ankita Mehta 16.. Promoting Organizational Citizenship Behaviour (OCB) In Indian NGOs for Sustainable Development - A Theoretical Framework�� 92 S Ahmed Mozumder and Dr P.Ramlal 17.. Psychological Factor and Role of Interventions for Employees in an Organization��99 Dr Sukhmani Singh and Raskirat Kaur 18.. Spiritual Approach of Leadership in Educational Management��108 Kamal Batta, Dr. Praveen Kumar, Veena Panjwani and Dr. Rupali Arora 19.. Impression of Pre and Post Training On Women Development from Skill Development Programmes�� 113 Era Arora

Part II Emerging Innovation Perspectives 20.. Challenges and Opportunities with IT Cloud Capability�� 121 Pankaj Bhardwaj 21.. Cyberloafing: A Transpiring Rage�� 127 Preeti Sukhija and Dr. Pawan Kumar 22.. Automation and Financial Planning�� 132 Tejinder Singh and Deepika Sohal 23.. Prospects of Cloud Computing in Business�� 136 Atul Sharma, Deepika Sharma and Gurmandeep 24.. Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier in Supply Chain Network�� 142 Simranjeet Kaur and Jaskirat Singh

Part III Emerging Entrepreneurship Perspectives 25.. Business Process Reengineering - Challenges in Family Business�� 163 Dr. Neha Kumari and Dr. Manmohan Singh 26.. Women Entrepreneurship: Challenges and Issues�� 167 Dr Pawan Kumar 27.. Women Entrepreneurs and Society: The role of government�� 171 Swati Aggarwal, Damini Chopra and Anchit Jhamb 28.. Farm Entrepreneurship: A Path for Doubling Farmers Income�� 177 Jagjeet Singh Gill and Dr Surabhi Sharma

Contentsxv

Part IV Management Case Study 29.. Human Resource Practices: A Case Study on Swan Group of Companies��185 Dr. Gagandeep Kaur, Dr. Nilesh Arora and Dr. Rahul Hakhu 30.. Business Model analysis for online shopping companies: Case study of Flipkart��189 Dr. Shalini Aggarwal and Dr. Jagmohan 31.. Effective and Efficient Management of Rural Water Resources – A Case Study of Garhshankar Region��196 Dr. Manbeer Kaur, Mona Prashar and Dr S Ramachandran 32.. Push Factors in the Management Dynamics among SHG’s of Punjab: A Case Study��203 Mona Prashar and Dr S Ramachandran 33.. Conditional Cash Transfer Schemes in the Indian Context: Key Takeaways from Brazil and Mexico�� 212 Shagun Tripathi, Priyanka Panday and Dr. Gagandeep Kaur

Part I Emerging Management Perspectives

Chapter 1 VUCA Challenge: Transforming Business Models in the Current Era Ashita Chadha* and Ritu Sharma**

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” –Alvin Toffler The VUCA World is considerably impacting work across governments, sectors, industries, businesses and organizations right from multi-national companies, public sector corporations, small and medium enterprises to not-for-profit organizations. The affect is seen in changing business models, organizational designs, structures and performance. The volatility and uncertainty in the business environment has confronted leaders with difficulty in predicting future competitive conditions. The complexity and ambiguity in understanding technological advances, customer markets and digital media have complicated strategy formulation and implementation that appear to be an exercise in futility. Leadership is not only increasingly challenged in conducting business but also being probed the way they lead their human resources and companies towards sustainability. The purpose of the study is to assess strategies leaders can adopt proactively to encounter fast paced transformations and technological disruptions in the VUCA environment.

Introduction The modern world has ushered in the Fourth Industrial Revolution - one of progressive, cutting-edge technologies. India has once missed the industrial revolution and is already lagging the technological revolution. TCS, Infosys, Wipro etc. are multi-billion dollar companies yet innovative technologies are not their forte. They seem complacent and contented in providing lower-end services to tech giants of the world. Innovations happening in India are few and far between, inadequate to generate an impact on the global business platform. The conundrum is that India has the highest number of techies represented in the Silicon Valley, yet India has not been able to reverse the brain drain where China has been successful. Chinese companies Alibaba and Tencent are already providing worldwide competition in game changing technologies of Artificial Intelligence, Drone technology, robotics etc. and project to become world leaders in AI by 2030 (South China Morning Post, Aug 2017). The acronym VUCA - Volatility, Uncertainty, Complexity and Ambiguity is being used much too frequently to describe our current world. It was originally used in the American Military to define extremely complicated positions in Iraq and Afghanistan. The competencies, skills and knowledge of corporate leaders, once winning mantras have unexpectedly become bare minimum requirements to succeed in the business world. This much talked about catchphrase discussed by today’s leaders in annual meetings describes current business affairs. Any efforts to analyze and formulate future strategy and plans to respond to changing environment are rendered useless in VUCA conditions. *Assistant Professor and HoD, University Institute of Liberal Arts, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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Part I: Emerging Management Perspectives

The VUCA world is causing unexpected commotions in government functioning and strategy with Brexit (withdrawal of United Kingdom from European Union), first ever meeting between America and North Korea on denuclearization, China slowly diluting economic sanctions against North Korea, India standing up to Chinese military might at Doklam and Russia’s increasing closeness to North Korea and Islamabad. The evolving geopolitical environment is sending mixed signals requiring reorientation and reorganization of countries towards these disruptive events in the world order.

Transforming Business Models In today’s business scenario, VUCA is not voluntary and neither is it avoidable. Its impact is tremendous, altering rules of carrying out business. In recent times, highly successful business painstakingly built over time, Nokia had to sell their mobile division to Microsoft due to their inability to adapt to Smartphone technology. Kodak could not survive in this turbulent environment as it did not evolve to digital technology although it invented the digital camera but did not pursue its own innovation. So in 2012, Kodak a company worth $28 billion market capitalization with 95,000 employees went bankrupt while Instagram, a digital photo sharing app, at the time was a startup with 13 employees was acquired by Facebook for $1 billion. VUCA has greatly affected rules of conducting business, ascertaining leader’s expertise to manage human capital, technology and lead organizations successfully. VUCA needs leaders to unfreeze traditional functioning philosophy, learn to think futuristically and adapt new competencies. It’s becoming important for organizations to identify competencies and knowledge suitable for surviving in the VUCA world and developing their leaders accordingly. Ten years ago, disruption meant bringing a product or service in the market that people needed but didn’t have, finding a way to produce it with higher quality and lower costs than the competitors. This entailed hiring hundreds of employees, requiring large physical space to put them in and waiting years for hard work to pay off in profits. Today, digital technologies are developing at exponential rates of change; the landscape of 21st-century business has taken on a dramatically different look and feel. The structure of organizations is changing. Instead of thousands of employees and large physical plants, modern start-ups are small organizations focused on information technologies. They dematerialize what was once physical and create new products and revenue streams in months, sometimes weeks. It no longer takes a huge corporation to have a huge impact. Technology is disrupting traditional industrial processes, and they’re never going back. This disruption is filled with opportunity for forward-looking, progressive entrepreneurs. The potential for entrepreneurs to disrupt industries and companies, who unexpectedly go extinct, has never been greater. Powerful technologies that were once only available to huge organizations and governments are becoming more accessible and affordable thanks to digitization. Anything that becomes digitized grows exponentially as digital information is easy to access, share and distribute spreading at the speed of the internet. The technological progression has been leading to enormous upheaval and opportunity.

Review of Literature Manwani (2013) believed that uncertainty and volatility are the norm in today’s era. Companies once synonymous with their product categories till some time ago are no longer inexistence E.g. Blackberry. It is suggested that with this unpredictably changing world, there are important underlying megatrends that shall shape business models in the future. Coldwell, et al. (2012) sensed that identifiable business peripheries have been recurrently shifting. Hence, a leader needs to sense, adapt and formulate strategic plans to make it a win-win situation. Das & Ara (2014) found that there is acute transformation from the problematic world which requires speed, analysis and uncertainty to an era of dilemma which demands patience, sense and engagement with uncertainty Therefore, this VUCA environment requires specific skill set as well as orientation to survive. Petrie (2014) observed that managers today are facing diverse challenges but approaches to manage the same have not seen similar modifications nor any standardized techniques or methods to deal with them. Sarkar (2015) opined that business now-a-days has undergone huge transformations. A wide change in the political, social, economic and technological environmental factors has led to an increase in VUCA.

Chapter 1: VUCA Challenge5 Mishra & Joshi (2016) observe that the increased pace of change in global business environment has created greater problems to leaders who are struggling to help their organizations to adapt change; lack of effective change leadership is the reason for failure of organizations in sustaining in global environment. Raghuramapatruni & Kosure (2017) believed leaders need to strike a balance between role clarity along with a simultaneous operation of what trend is prevailing or what changes are occurring in the environment.

The VUCA World The once protected boundaries of markets and industries have become highly accessible due to opening of economies and advancement of technology. In the current environment, leaders believe a sustainable future is possible for organizations only if they can sense, adapt and respond to change rapidly. In business, survival of fittest is possible for those who evolve fastest as VUCA is so demanding that an organization which takes time to adapt has to face severe consequences (Johnson, 2012). For succeeding in this VUCA world, organizations must be adaptive and agile focusing on following parameters: 1. Create an environment of openness that values innovation, diverse perspectives, and experimentation. 2. Identify weak indicators that forecast shifts in customer loyalty or opportunities enabled by new technology 3. Conduct interactive dialogues that put new ideas into context of the company’s work and translate new information into differentiating capabilities 4. Explore business challenges to find the learning gaps for individuals, teams, and the organization’s practices, processes, and systems 5. Strengthen thoughtful decision making in the organization.

VUCA comprises four distinct challenges needing deep understanding Volatility: It means nature, speed, volume and magnitude of change that is not in a predictable pattern (Sullivan, 2012). Volatility is turbulence, a phenomenon occurring at frequent intervals due to digitization, increased connectivity, trade liberalization, global competition and business model innovation leading to financial instability in an organization. For instance, a fluctuation in share price of an organization due to change in its leadership.

Challenge due to Volatility a. The frequency of change is more now days than it used to be in past and more rapid also making it difficult to manage. b. Changes that take place are of large scale and occur so suddenly demanding leaders to act on emergency basis. c. The increased pace of change demands that leaders should take decisions instantly. d. Leaders are caught off-guard when unprepared and they get confused with the magnitude of the changes, often feel anxious and stressed out; therefore, cannot lead effectively. e. To move from being reactive to proactive in handling change is a challenge. f. Command & Control structures become unmanageable due to the frequency of changes. Uncertainty: The lack of predictability of issues and events making it difficult for leaders to use past experiences as predictors of future outcomes, making forecasting extremely difficult and decision-making challenging.

Challenges due to Uncertainty a. Not enough indication but too much of noise and chaos. b. It becomes difficult to comprehend what is happening at present. c. Leaders are more likely (to tend) to rely on previous trends and data. d. Leaders are often required to act upon, based on incomplete or insufficient information. e. No logic to connect the dots and understand the output of an effort.

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Complexity: There are often numerous and difficult-to-understand causes and mitigating factors (both inside and outside the organization) involved in a problem. This layer of complexity, added to the turbulence of change and the absence of past predictors, adds to the difficulty of decision making. The sheer volume and the nature of the problem could prove to be overwhelming.

Challenges due to Complexity a. Increased complexity makes it difficult to understand from where to start and initiate/drive a change. b. Leaders are compelled to act too quickly due to lack of time, reflect and think through the complexities of issues. c. Root causes of problems are not addressed as the orientation is to act for “mitigation‟. e. Getting stuck with analysis leads to paralysis and actions take place too late. Ambiguity: It is the lack of clarity about the meaning of an event or, as Sullivan says, the “causes and the ‘who, what, where, how, and why’ behind the things that are happening are unclear and are hard to ascertain.” The causal relationships are completely unclear.

Challenges due to Ambiguity a. Too much of difficulty to understand the events and their meaning. b. Leaders find themselves placed too far from the source/context of events. c. High risk of misinterpretation of events & ineffective responses that can be viewed as inappropriate. d. Other aspects of VUCA feed in and create mishmash, making it too difficult to choose a course of action. e. Leaders are forced to adopt unconventional methods of problem solving, under high pressure.

VUCA Models- Strategies to overcome VUCA world Is it really possible to prepare for a VUCA world? Well, it certainly is. Applying critical thinking in order to better tackle apparently challenging situations and make well-thought-through decisions in a VUCA world is the answer you’re looking for. Following are few Strategies available for managing VUCA: 1. VUCA Prime Model Johansen (2007), fellow at Institute for the Future, developed an effective leadership framework as a “VUCAcounterweight” and called it VUCA Prime. Johansen’s VUCA Prime requires leaders to focus on building Vision, Understanding, Clarity and Agility as the pathway to coping and overcoming the intimidating impacts of the VUCA World. VUCA Prime is the reverse mirror of VUCA and speaks about required competencies to handle the VUCA environment. 1. Vision: Volatility is countered with vision because vision is even more vital during turbulent times. Leaders with a clear vision of where they want their organizations to be in three to five years can handle sudden economic downturns and new competition in a more efficient manner. Vision requires explicitness to answer the three questions - Why are we here? How will we be successful? What are our success measures? In turbulences, organizations should keep their eyes on the final goal. 2. Understanding: Uncertainty is managed with understanding, the ability of a leader to stop, look, and listen beyond their functional areas of expertise to make sense of the uncertainty. Leading by example the leader need to network for building teams across levels in the organization. Understanding focuses on bringing team members into a shared mindset and understanding of how they can contribute to success. 3. Clarity: Complexity is answered with clarity, a deliberative process to make sense of the chaos that comes swift and hard. Leaders need to swiftly and clearly understand core elements of the situation associated with the chaos for more informed business decisions. 4. Agility: Ambiguity is responded with agility, the ability to communicate across the organization and move quickly to apply solutions in changing circumstances. Prepare a range of potential responses after systematically examining threats. When the future contains multiple alternatives, be ready to adapt the approach to match the eventual outcome.

Chapter 1: VUCA Challenge7 2. AGILE Model The AGILE Leadership Model provides five drivers for dealing with VUCA, as follows: 1. Anticipate Change: Interpret the potential impact of business turbulence and trends along with the implications to the enterprise. 2. Generate Confidence: Create a culture of confidence and engagement with all stakeholders especially associates in effective and collaborative teams. 3. Initiate Action: Provide the fuel and systems to enable things to happen proactively and responsively, at all levels of the organization. 4. Liberate Thinking: Create the climate and conditions for fresh innovative solutions by empowering, encouraging, teaching and expecting others to be innovative. 5. Evaluate Results: Maintain a strong focus and feedback system to continuously learn and improve from actions and changing dynamics. 3. LIVED Model The LIVED model provides a framework for Leadership Assessment in a VUCA World. 1. Learning: Willing and able to adapt to new environments and challenges by drawing on learning and feedback from previous experiences 2. Intellect: Thinks incisively, deals effectively with complex and ambiguous information, sees issues in a broader context and takes sound decisions based on this analysis 3. Values: Acts in an authentic and consistent way, inspires trust and demonstrates integrity, courage and respect for others 4. Emotions: Manages own emotions effectively, builds positive relationships and uses emotions to influence and inspire others 5. Drive: Sets challenging goals, takes an action-oriented approach and shows passion and determination to overcome obstacles, act decisively and achieve results

Leadership Competencies for VUCA World Leadership Competencies with change management capabilities are needed in VUCA as per specific needs of organizations. Leaders require an adaptive mind-set to navigate successfully, being comfortable with unclear situations and ready explore novel paths (Prakash & Sindhu, 2017). They need to be in a constant self-learning mode and remain curious learner of new concepts, techniques etc. Anticipating change with futuristic vision and strategic foresight to estimate the possible changes will be an added capability in successful leaders. Some success factors identified around leading effectively in a VUCA world are: • Always retain a clear vision against which judgment can be made, with agility to respond appropriately to rapidly unfolding situations. • Anticipate risks but don’t invest too much time in long-term strategic plans. Don’t automatically rely on past solutions and instead place increased value on new, temporary solutions, in response to such an unpredictable climate. • Think big picture. Make decisions based as much on intuition as analysis. • Capitalize on complexity. If the talent management is good then you should be confident that you have the right people in the right place enabling to rapidly break down any challenge into smaller dimensions. • Be curious. Uncertain times bring opportunities for bold moves. Seize the chance to innovate. • Encourage networks rather than hierarchies as they achieve interconnection and interdependency collaboration in competition. • Leverage diversity as networks of stakeholders increase in complexity and size, be sure to draw on multiple points of view and experience they offer. • Never lose focus on employee engagement. Provide strategic direction, whilst allowing people the freedom they need to innovate processes, products and services. • Get used to being uncomfortable. Resist the temptation to cling on to outdated, inadequate processes and behaviours. Take leaps of faith and enjoy the adventure.

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Conclusion The VUCA world is not going to disappear. Change is relentless and the landscape in which we work is constantly shifting. As technology advances swiftly and the world becomes a global market place, businesses will have to transform and perform or perish. The leadership role becomes increasingly one of creating moments of clarity and focus, whilst at the same time keeping an eye on what is shifting and preparing to react to it. Reacting without having vision leaves people feeling confused and de-motivated. Rigidly adhering to a chosen strategy leads to missing out on opportunities or failing to respond in time to environmental changes. Somehow leaders need to walk a fine line between these two positions in order to be flexible and yet sufficiently focused to keep people motivated. VUCA is complex and challenging, but it is also an environment that can allow true leadership talents to emerge at all levels of the organization. Indeed one of the major lessons of the VUCA world is that leaders need to engage all employees at all levels to gain their trust and contribution in dealing with the great range of challenges that VUCA poses. Seen from this point of view VUCA becomes an opportunity for development and greater collaboration, rather than a risk to be mitigated.

References 1. Coldwell, D.A.L., Joosub, T. and Papageorgiou, E. (2012). Responsible leadership in organizational crises: an analysis of the effects of public perceptions of selected SA business organizations reputations, Journal of Business Ethics, 109(2), 133-144. 2. Das, K.K. & Ara, A. (2014). Leadership in VUCA WORLD: A Case of Lenovo, International Journal of Current Research, 6(04), 6410-6419. 3. Johnson, C.E. (2012). Meeting the Ethical Challenges of Leadership: Casting Light or Shadow, Sage Publications: London. 4. Johansen, B (2007). Exploiting Future Uncertainty with VUCA Prime, The Risk Doctor Partnership. 5. Manwani, H. (2013). Speech delivered at the Annual General Meeting, Hindustan Unilever Limited. 6. Mishra, V and Joshi, G. (2016). The VUCA World in IT Industry, Paripex Indian Journal of Research, 5(8), 22-29. 7. Petrie, N. (2014). Future Trends in Leadership Development, White Paper by Centre for Creative Leadership. 8. Prakash, M.S. and Sindhu (2017). Leadership Challenges in A VUCA World & Competencies Required to Overcome the Challenges, International Journal of Science Technology and Management, 6(7), 267-272. 9. Raghuramapatruni, R. and Kosuri S. R. (2017). The Straits of Success in a VUCA World, Journal of Business and Management, 16-22. 10. Ramirez V. B. (2016). The 6 Ds of Tech Disruption: A Guide to the Digital Economy, Retrieved from: https:// singularityhub.com/2016/11/22/the-6-ds-of-tech-disruption-a-guide-to-the-digital-economy/#sm.000s89wp7fjacts10d p27bv4fsgl2 11. Sarkar, A. (2015). We live in a VUCA World: the importance of responsible leadership, Development and Learning in Organizations, 30, 3, 9-1. 12. South China Morning Post (Aug 27, 2017). How China’s AI experts can beat Google and Microsoft at their own game by 2030. Retrieved from: http://www.scmp.com/comment/insight-opinion/article/2108318/how-chinas-ai-experts-canbeat-google-and-microsoft-their Accessed on: May 18, 2018. 13. Sullivan, J. (2012 October 22). Talent strategies for a turbulent VUCA world—shifting to an adaptive approach. Retrieved from: http://www.ere.net/2012/10/22/talent-strategies-for-a-turbulentvuca-world-shifting-to-an-adaptive-approach.

Chapter 2 Celebrity Endorsement: A Tested Advertising Weapon Dr. Nilesh Arora* and Dr. Gagandeep Kaur**

Associating well known celebrities with a brand for endorsing it has become a very common feature in the present advertising context. A good amount of research has supported the influence of Human brands on the purchase intent of the consumers. The growing use of celebrities in endorsing brands invites the researchers to explore more in this area. The global advertising patterns show the emergence and rising use of human brands not only in promoting a product but also various services, entertainment and sports events. The present chapter aims at understanding the influence of celebrity endorsement with celebrity factors, attitudinal factors and consumer involvement on the brand intentions. The chapter explains the concept of human brands, the theoretical framework and the various factors associated with the endorsement by the celebrities affecting the buying intentions of the consumer. The work also highlights various studies already conducted in this area and further explores the various research avenues in the area of celebrity endorsement. Further, the managerial implications of various aspects of celebrity endorsements have been discussed.

Introduction Human brands have always been appealing to the consumers and have rewarding for the marketers for past many decades. Choosing the right celebrity for endorsing a brand is a significant and prodigious task for every marketer as this is directly linked to their business bottom lines. Marketers consider that the use of a celebrity influences the consumers purchase intentions and impacts the promotion effectiveness and brand recall (Spry et al., 2011). Celebrities directly reflect their personal characteristics on the brands they endorse (McCracken 1989). Brands recommended by celebrities tend to impress the consumers and lead to trust in the brands and create better brand familiarity (Fence 1991). Also, celebrity endorsements let shoppers to have better brand and promotional recall (Harmon and Coney, 1982). Moreover, celebrities help in reducing the cultural obstructions (Mooij, 2004), help in rebranding and improving the brand image of the firm (Till and Shimp, 1998), and finally, improve the top lines of the brand supported by the celebrity (Kaikati, 1987).

Conceptual background: Celebrity Endorsement A human brand or a celebrity is “an individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” (McCracken, 1989). “Celebrity endorser is an individual who is known to the public for his or her achievement in areas others than of the product class endorsed” (Friedman and Friedman 1979). Individuals assign sense via discussions and communications they do with other people in social settings (Blumer, 1969). Thus, audience, in this case, the consumers can assign meanings to the celebrity through their individual and public communications. Unsurprisingly, research suggests that celebrity endorsers can use their popularity and attractiveness to sway people to like or consider a product (Kahle & Homer, 1985). Similarly, Chang, Ko, *Professor and Additional Director, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Associate Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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Tasci, Arai, and Kim (2014) found that preexisting popularity of the athlete endorser affects how favorable an associated product is received. Celebrities have great influence on the audience and their behavior and when a celebrity whom one admires endorses a brand. It positively influences the consumers’ attitude towards the brand. Celebrity power pushes the consumer to follow and develop inclination towards a specific brand endorsed by the celebrity. According to Boon & Lomore (2001), people devote time and resources to attain a professed relationship with the celebrity and they may also develop an attraction to him or her. Moreover, Celebrities convey symbolic presence through their lifestyles and media presence. This helps people to use human brands to augment or sustain their self-identities, (Choi & Rifon, 2012). Such levels of attachment even can build up into a feeling of attachment that leads to consumer’s perception of his congruency with the celebrity. The research on celebrity endorsement area revolves around certain key constructs including source credibility, source attractiveness, expertise of the celebrity endorser, endorser identification, meaning transfer and match – up hypothesis. Perceived level of proficiency and reliability of a celebrity impacts the effectiveness of marketing communication (Ohanian 1991; Dholakia and Stemthai 1977). Celebrity expertise, credibility, and attractiveness have favorable relationship with the effectiveness of celebrity endorsed marketing communication (Amos, Holmes and Strutton 2015). Besides this they also find the celebrity endorser-brand congruence and the advertisement effectiveness are positively related. An attractive endorser influences the brand attitude and purchase intentions of the consumer positively (Erdogan, 1999). A celebrity who is knowledgeable and reliable is able to alter the attitude of the consumer and buying behavior (Liu & Teo, 2007). Attractive celebrities tend to change attitude (Debevec and Keman 1984) and activating purchase intentions (Petty and Cacioppo 1980). Few studies found match up hypothesis as a key for advertising effectiveness. Congruence between the brand and the celebrity is imperative for consumers’ positive attitudes (Brian, Sarah and Randi 2006). Meaning transfer is another area augmented by McCracken (1989) where in the celebrities illustrate diverse senses or meanings and these senses are moved on to the brands through endorsements (Langmeyer and Walker 1991a; Erdogan 1999). Social identity theory advocates individuals are motivated to connect with things to augment one’s own identity (e.g., attractiveness, reputation; Tajfel & Turner, 1985). Consumers may satisfy their need to be unique by identifying with entities that have distinctive identities (Bhattacharya & Sen, 2003).

Diverse facets of Celebrity Endorsement Meaning Transfer Meaning initiates as anything that rests in the core culture of the world and also in the corporeal and societal world comprising of the categories and philosophy of the existing culture (McCracken 1988). Promoting brands using celebrities facilitates the transfer of the meaning from the value and culture driven social settings to the goods, services and brands. This further is shifted to the consumer through personal efforts of the end user (McCracken 1989). Langmeyer and Walker (1991a and 1991b) also supported the practicality of the concept to real life wherein, they used Cher supporting Scandinavian Health Spas (1991a) and in (1991b) used celebrities-Madonna and C. Brinkley for endorsing bath towels. The findings of the research deciphered that products endorsed by the celebrities, have an influence on meanings perceived by the consumers in products. Celebrities illustrate diverse meanings and these meanings are transferred to brands endorsed by them (Erdogan 1999). Wheeler, (2003) also confirmed that celebrities are capable of passing on their image to a definite brand which is being endorsed.

Match-up Hypothesis Congruency or fitment is an area where good amount of literature is available in celebrity endorsement. According to the match-up hypothesis the efficiency of a marketing communication relies on the subsistence of an apparent ‘match’ between the endorser and the brand promoted by him (Till and Busler 1998). The fitment of the brand and the celebrity depends on the similarity in the characteristics between product attributes and endorser’s image (Misra and Beatty 1990). Endorsement by a well known person with comparatively high product fitment leads to effectual advertising viz. a viz. a communication featuring less matching celebrity (Kamins and Gupta 1994).

Chapter 2: Celebrity Endorsement11 A positive relationship exists between the celebrity endorser-product congruence the advertisement effectiveness, (Hakimi, Abedniya, and Zaeim (2011). This was also supported by Amos, Holmes and Strutton (2015). Lynch and Schuler (1994) also revealed the significance of fit between celebrity and brand by condition of “match-up hypothesis”. A fit between celebrities and the kind of products/product categories is vital for influencing the attitude of the consumers (Brian, Sarah and Randi, 2006).

Source Attractiveness The source attractiveness model principally focuses on 4 aspects; that is: familiarity‖ (endorser expertise), likeability‖ (liking for celebrity based on his/her bodily manifestation or conduct), congruence‖ (matching of the endorser and the consumer), and pleasant appearance‖ (McCracken 1989). Ohanian (1990) also suggested that the efficacy of a marketing communication relies on endorser’s knowledge, congeniality, congruence, and pleasant appearance to the receiver of the message. Attractiveness plays an important role in persuasion and altering attitudes (Baker and Churchill 1977) and prompting buying intents (Petty and Cacioppo 1980). Also, according to Cohen and Golden (1972), consumer associate himself/herself with the celebrity through a process of identification based on the physical attractiveness of source, this in turn positively affects the advertising effectiveness. Attractiveness of the source stimulates the receiver to identify himself with the source and accepts the information (Erdogan 1999). A large gamut of research support that celebrity attractiveness or the bodily attractiveness of the celebrity has favorable influence on consumer attitude towards brand, attitude towards the ad and the buying intents in most conditions, (Chao, Wührer, & Werani, 2005). Chang, Chen, & Tan, (2012) and Chao et al., (2005) supported the impact of celebrity’s attractiveness, knowledge, and credibility on advertising effectiveness within online context. The attitude and buying intents of shoppers can best be altered by using physically attractive endorsers (Baker & Churchill, 1977). Petty et al., (1983) also supported that a good looking endorser affects the consumer’s attitude and purchase intentions positively.

Celebrity Expertise Another area that has been very important in the celebrity endorsement literature is the expertise of the celebrity in the specific field. An expert is someone on whom the consumer can rely and he can treat him as a reliable prediction source (Hovland et al., 1953). Expertise of a human brand has supporting effect on the consumer when it comes to influence his attitude or buying intentions (Ohanian, 1990). Belch and Belch (2013) said that information receiver have strong trust in the person who is practically having allied knowledge, expertise in encourage area. Celebrity having good amount of knowledge and skills has better judgment as compare to the celebrity with low level of knowledge and expertise (Ohanian, 1990). Celebrities who are known to be experts in a specific area are considered to be more convincing and have a favorable impact on consumers’ attitude and buying intent (Goldsmith, Lafferty, & Newell, 2000; Ohanian, 1991). Liu & Teo (2007) too have supported this as by saying, endorser with high level of knowledge and credibility is capable of altering the consumer’s attitude and buying intentions. Expert celebrity endorsers are considered to be more convincing and may impact the shopper’s purchase decision (Ohanian 1991). Expert celebrity endorsers have the power of producing higher recall value of brand information than less knowledgeable celebrities (Speck, Schumann and Thompson 1988). The level of expertise of a celebrity is an important reason to identify its influence on receiver of communication. The expertise, reliability, and attractiveness have favorable relationships with the advertisement effectiveness of the ad using a celebrity (Amos, Holmes and Strutton, 2008). Thus, if the celebrity endorsing the product has more knowledge and experience, then he/she has differential power to seek due to strong reliability.

Source Credibility Credibility of the celebrity endorsing a product is also a very significant factor in changing the attitude of the consumer. Various studies in the past have proven the influence of this aspect on the consumers’ buying behavior. Exchange of information via a reliable celebrity has the power to impact view, attitudes and/or behaviour through the process of internalization (Kelman, 1961). The credibility of the source is transferred to the brand and the

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communication made by the celebrity of the brand, becomes more believable (Hovland and Wiess, 1951) Amos, Holmes and Strutton (2015) found a favorable association between knowledge, trustworthiness and attractiveness with effectiveness of the advertisements using the celebrities. Dholakia and Stemthai (1977) also suggested that the efficiency of an advertising communication depends on the professed level of knowledge and reliability of a celebrity. Miller and Baseheart (1969) also suggested that if the professed reliability of the celebrity is high; the likelihood of alteration in the attitude of the consumer is more.

Discussion Understanding consumer behavior is of utmost importance for the marketer in the present times. The factors influencing consumers’ buying behavior have always been of interest for the academic researchers as well as the market strategy makers. The behavior of the consumer is extremely dynamic and this entails for the equal strength of dynamism in the area of advertising and consumer influence. Human brands are used to influence the consumer attitude towards the advertisement, attitude towards the brand and the purchase intentions since ages. With the easy access of celebrities and their frequent public presence on various platforms including social media and their multiple endorsements capabilities, their influence on consumer attitude has been very quick and also, at times positive. Celebrity endorsement has been an area of interest for many researchers for a long time now. A large gamut of studies have proved the favorable impact of the celebrities on the consumers’ buying behavior and bringing attitudinal changes in favor of the brand. Various aspects have been studied in this area which primarily include; Meaning transfer, match-up hypothesis or congruence, source attractiveness, celebrity expertise and credibility. Various other areas which include; celebrity worship, intense attachments, entertainment, consumer involvement and brand familiarity has also been studied to some extent. Still a good amount of research gap exists in the endorsement literature which include; influence of endorsement on a firm’s valuation (share prices), multiple endorsement effects (by the same celebrity), target audience factors like age, gender etc., celebrity visibility, celebrity and the target audience match. Research on these areas will help the marketers to have better understanding on the celebrity endorsement effects.

Managerial Implications Managers across the globe always use celebrities to promote their brands in various categories and generate profits for the brands endorsed. Celebrity endorsement has become a key strategy for the marketers to have a quick following of their brands in a short time. The managers must understand various aspects of endorsement before choosing a celebrity. The choice of celebrity for endorsing a brand is an important strategic decision as this sets the tone for the expected outcome of the campaign to meet business objectives. Apart from the various celebrity facets discussed above in the chapter, the marketer must take consumer aspects into consideration while deciding on the celebrity. Other factor which may play a moderating role like the level of consumer involvement, the familiarity of the brand or the celebrity, over-endorsement by a celebrity must also be considered thoroughly to have a rewarding outcome in terms of acceptance of the brand, converting non-buyers, retaining the existing consumers and generating sales and profits.

References 1. Amos, C, Holmes, G & Strutton, D 2015, ‘Exploring the relationship between celebrity endorser effects and advertising effectiveness- A quantitative synthesis of effect size’, International Journal of Advertising, vol. 27, no. 2, pp. 209-34. 2. Baker, M.J., Churchill, M.A., (1977). The impact of physical attractive models on advertising evaluation. Journal of Marketing Research, Vol. 14, 538-555. 3. Belch, G.E. and Belch, M.A., (2013). A content analysis study of the use of celebrity endorsers in magazine advertising. International Journal of advertising, 32(3), pp. 369-389. 4. Bhattacharya, C.B. and Sen, S. (2003), Consumer-Company Identification: A Framework for Understanding Consumers’ Relationships with Companies. Journal of Marketing, Vol. 67, No. 2 (Apr., 2003), pp. 76-88. 5. Blumer, H. (1969), Symbolic Interactionism: Perspective and Method, Prentice-Hall, Englewood Cliffs, NJ. 6. Boon, S. D., & Lomore, C. D. (2001). Admirer-celebrity relationships among young adults.

Chapter 2: Celebrity Endorsement13 7. Human Communication Research, 27(3), 432-465. 8. Brian, D. T., Sarah, H., & Randi, P.(2006). Understanding Celebrity Endorsement: A Classical Conditioning Approach. Johnson, Jean L.& Hulland, John(Ed.), 2006 AMA Winter Educators’ 9. Conference in Chicago (pp. 241), Chicago: American Marketing Association. 10. Chang, Y., Ko, Y. J., Tasci, A., Arai, A., & Kim, T. (2014). Strategic match of athlete endorsement in global markets: An associative learning perspective. International Journal of Sports Marketing and Sponsorship, 15, 253-270. 11. Chang, K. T. T., Chen, W., & Tan, B. C. Y. (2012). Advertising effectiveness in social networking sties: Social ties, expertise and product type. IEEE Transactions on Engineering Management, 59(4), 634-643. 12. Chao, P., Wührer, G., & Werani, T. (2005). Celebrity and foreign brand name as moderators of country-of-origin effects. International Journal of Advertising, 24(2), 173-192. 13. Choi, S., & Rifon, N. J. (2007). Who is the celebrity in advertising? Understanding dimensions of celebrity images. Journal of Popular Culture, 40(2), 304-324. 14. Choi, S. M., & Rifon, N. J. (2012). It is a match: The impact of congruence between celebrity image and consumer ideal self on endorsement effectiveness. Psychology and Marketing, 29(9), 639-650. 15. Debevec, K. and Keman, J.B. (1984). More Evidence on the Effects of a Presenter’s Physical Attractiveness: Some Cognitive, Affective and Behavioural Consequences, In: Advances in Consumer Research. (Ed.) Thomas C. Kinnear, Vol. 11, Provo, Utah: Association for Consumer Research, pp.l27-132. 16. Dholakia, R and Stemthai, B., (1977). Highly Credible Source: Persuasive Facilitator or Persuasive Liabilities? Journal of Consumer Research, 3, No 4 pp. 223-232. 17. Erdogan, B.Z., 1999. Celebrity endorsement: a literature review. J. Mark. Manag. 15(4), 291 e314. 18. Evans, R.B., (1988). Production and Creativity in Advertising. Pitman Publishing, London. 19. Fence, Zhi-Yu (1991), Advanced Advertising, Taipei: Sanmin. 20. Friedman, H. H., & Friedman, L. (1979). Endorser effectiveness by product type. Journal of Advertising Research, 19(5), 63-71. 21. Goldsmith, R., Lafferty, B. and Newell, S. (2000), “The impact of corporate credibility and celebrity credibility on consumer reaction to advertisements and brands”, Journal of Advertising, Vol. 29 No. 3, pp. 43-54. 22. Hakimi, BY, Abedniya, A & Zaeim, MN 2011, ‘Investigate the impact of celebrity endorsement on brand Image’, European Journal of Scientific Research, vol. 58, no. 1, pp. 116-132. 23. Harmon, R. R. & Coney, K. A. (1982).The persuasive effects of source credibility in buy and lease situations. Journal of Marketing Research, 19 (5), 255-260. 24. Hovland, C.I., Wiess, W., 1951. The influence of source credibility on communication effectiveness. Public Opin. Q. 15 (4), 635e650. 25. Kahle, L. E., & Homer, P. M. (1985). Physical attractiveness of the celebrity endorser: A social adaptation perspective. Journal of Consumer Research, 11, 954-961. 26. Kamins, MA & Gupta, K 1994, ‘Congruence between spokesperson and product type: A matchup hypothesis perspective,’ Psychology & Marketing, vol. 11, no. 6, pp. 569-586. 27. Kelman, H.C. (1961). Processes of Opinion Change. Public Opinion Quarterly, 33 (Spring), 57-78. 28. Langmeyer. L. and Walker, M., (1991a). “A First Step to Identify the Meaning in Celebrity Endorsers,” In: Advances in Consumer Research. (Eds.) Rebecca R Holman and Michael R Solomon, 29. Liu, J., Teo, T.S.H., (2007). Consumer trust in e-commerce in the United States, Singapore and China. Omega, Vol. 35, 22-38. 30. Lynch, J. & Schuler, D. (1994).The Matchup Effect of Spokesperson and Product Congruency: a Schema Theory Interpretation. Psychology and Marketing, 11 (5), 417-445. 31. McCracken, G., (1988). Culture and Consumption: New Approaches to the Symbolic Character of Consumer Goods and Activities, Indiana University Press, Bloomington, IN. 32. McCracken, G. (1989). Who is the celebrity endorser? Cultural foundations of the endorsement process. Journal of Consumer Research, 16(12), 310-321. 33. Misra, S., and Beatty, S. E., (1990). Celebrity spokesperson and brand congruence. Journal of Business Research, 21, 159-173.

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34. Miller, G.P. and John B., (1969). Source Trustworthiness Opinionated Statements, and Responses to persuasive Communication. Speech Monographs, 36 (1), 1-7. 35. Ohanian, R. (1991). The impact of celebrity spokespersons’ percieved image on consumers’ intention to purchase. Journal of Advertising Research, 31(1), 46-53. 36. Ohanian, R. (1990). Construction and Validation of a Scale to Measure Celebrity Endorsers’ Perceived Expertise, Trustworthiness and Attractiveness. Journal of Advertising, 19 (3), 39-52. 37. Petty, R.E. and Cacioppo. J.T., (1980). Effects of Issue Involvement on Attitudes in an Advertising Context In: Proceedings of the Division 23 Program, (Eds.) Gerald G. Gom and Marvin E. Goldberg, Montreal, Canada: American Psychological Association, pp. 75-79. 38. Speck, P.S., Schumann, D.W., and Thompson, C., (1988). ‗Celebrity endorsements-scripts, schema and roles: theoretical framework and preliminary tests,‘ In: Advances in Consumer Research (Ed) Michael, J.H, vol. 15, p. 68-76. 39. Spielman, H.M., (1981). The celebrity sell: making it work. Marketing Times 28, 13-14. 40. Spry, A., Pappu, R. and Cornwell, T.B. (2011), “Celebrity endorsement, brand credibility and brand equity”, European Journal of Marketing, Vol. 45 No. 6, pp. 882-909. 41. Solomon, M., Ashmore, R. & Longo, L.(1992).The beauty Match-Up Hypothesis: Congruence Between Types of Beauty and Product Images in Advertising. Journal of Advertising, 21 (4),23-34. 42. Tajfel, Henri and John C. Turner (1985), “The Social Identity The- ory of Intergroup Behavior,” in Psychology ofl Intergroup Rela- tions, Steven Worchel and William G. Austin, eds. Chicago: Nelson-Hall, 6-24. 43. Till, B.D. and Michael, B. (1998), “Matching products with endorsers: attractiveness versus expertise,” The Journal of Consumer Marketing, 15, 576. 44. Wheeler, R 2003, ‘Choosing celebrity endorsers: Tips and Trap’, Journal of Advertising, vol. 21, no. 4, pp. 17-20.

Chapter 3 Knowledge Management Strategy: Putting Knowledge to Work, Wisely! Chitra*

“To share an asset, usually it must first be divided. But knowledge is one of the few assets that multiply when shared.” - Gaurav Dalmia Acquiring, storing and distributing knowledge is an important element in any business organization. Everyday people working in organization need knowledge and also make use of and create it. A firm should have well defined objectives to be achieved and needs to identify its core competency and areas lacking behind to achieve the goals and targets formulated. Organizations should also identify significant knowledge that needs to be transferred and shared with the one who needs it. Basically, knowledge that organization possess is nothing but its employee’s know-how and all what is accumulated in various depository like various folders, emails, files and documents etc. It exists as a fluid mix of frames experience, values, contextual information and expert insight to comprehend expensive knowledge. This chapter review different literature and also interprets knowledge management in different fields, identifying the scope and importance of knowledge management It provides a comprehensive summary of different views of knowledge and knowledge taxonomies and their implications with a view to know several important research issues surrounding the knowledge management processes and its role.

Introduction Organization is nothing but a body of knowledge which comprises of various inter-related departments. But at the same time, organizations are unaware, whether it exists or not; as it’s difficult to access and also the people having expertise knowledge are unwilling to share due to the competitive environment. This is the only reason why universities can never make an experienced manager as it’s difficult to dig out expert knowledge from the persons mind and document it for further usage. But if it could be done so, then it is the best way to transfer the knowledge of an expert and by using it a beginner can also become an expert. This kind of knowledge is called tacit knowledge. The objective of this chapter is to facilitate knowledge management by studying and understanding: 1. Whether organizational culture promotes knowledge creation 2. How outside knowledge is useful for internal use 3. What effective mechanisms to be used. 4. How transfer of the knowledge can take place. 5. How to encourage people for the application of knowledge available 6. How to bridge the knowledge gap 7. What factor are responsible for creating gap and measures to eliminate *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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Scope of Knowledge Management People argue about the scope of knowledge management. Generally, it comprises of understanding what type of knowledge firm needs in order to be more competitive in both, short and long term, which depends on companies corporate strategy. It is always in debate regarding understanding of what knowledge the firm actually possesses and whatever knowledge found helps in getting the right knowledge of the right people at the right time making sure that valued knowledge is not misplaced, for example, if key employees leave or retire and creating an environment where new relevant knowledge can be created to achieve this knowledge, necessities to ensure that an organization has the precise organizational culture where people actually wants to share, work in partnership, associate and learn, has the true processes for direction and classification of knowledge has the right processes and environment where people work in partnership, learn and renovate these could include various cross functional project teams, employee rotation, across department common with documentation requirements, master apprentice relationships and so on. Ultimately, it has the right technology infrastructure that delivers and categorized knowledge to whomever require it, at the right time and associating the whole progressions in environment and culture for the transfer of tacit knowledge. Therefore, in this context, the role of technology is a fiercely debated issue and it is something that we will return to later. We can also find an in-depth discussion of knowledge management to say that if technology is properly designed and aligned to the processes in the firm thereby executed in a way that does not interrupt the existing culture and practices, but supports them, then it can be a very valued tool in the transmission and sharing of knowledge. So, Knowledge management is all about establishing and generating the right organizational processes, environment, culture and technological infrastructure. It helps us to understand what we know, relative to what we need to know and then share, protect and further develop key knowledge and knowledge assets. The framework of the knowledge management can be used for enhancing and exploiting knowledge, sharing experiences and learning good practices. Now question arises, “can we really do apply knowledge management”? As it resides in the heads of employees and is shared primarily through conversation. Therefore to have effective application of knowledge management, we can manage the environment in which knowledge can be created, discovered, captured, shared, distilled, validated, transferred, adopted, adapted and applied. Therefore to create business value, we need to make certain arrangements, so that, the knowledge can rapidly superfluities as below: • • • •

The favourable conditions Adequate resources Implementation of Plan of action and Immense leadership

The methodology provides a great number of tools and techniques that help organizations to learn before, during and after activities. From these interventions the organizations can have multiplied benefits, if they are shared more extensively as good practices either through people-networks or through the capture and codification into regularly updated knowledge products.

Review of Literature In this business world of 21st century knows as the era of knowledge things are changing. More and more research and development is taking place. According to Friedman, 2005, it is now moved to period of knowledge as from earlier which was period of natural resources. Jelenic, 2011; Khan, 2014 emphasized that knowledge is one of the greatest important and extremely appreciated asset and service. Knowledge has become one of the important economic resource apart from natural and capital resources and labor factor. Schultze 2002, Bhojaraju, 2005, established that knowledge has turn out to be center to transform the global economy, by creating and utilizing it considering as main source in organizations. Carneiro, (2000), Kakabadse, (2003) analyzed that in global economy, to bring innovation knowledge has developed as main significant basis for economic growth of organizations which can be referred as information.

Chapter 3: Knowledge Management Strategy17 According to Marwick (2001), Alavi, (2005) knowledge management is nothing but it is the information which is possessed in the minds of the people and their understanding and the experience they have. Walsh & Merlo, (2016), asserted that knowledge contains information, skills and expertise. The knowledge is distributed to make it noticeable in order to show the role of knowledge in organizations and inspire employees to recommend behaviors like that of knowledge sharing and building knowledge infrastructure. Ansari et al., 2012; Karimi & Javanmard, 2014 laid emphasis on proper management functioning. Without that knowledge is obsolete. Thus, organizations need to implement and apply a series of processes for them to manage their knowledge. Gold (2001), had defined that knowledge management as the capability to manage knowledge such as gathering internal or external knowledge of organizations, converting them to new idea or strategy and applying them and protecting them. Lytras (2002) has stated that KM is a systematic, explicit and application of knowledge that help the organizations to make best use of organizations’ knowledge and gain effective returns from the knowledge. It also helps in creating new capabilities, encourage innovation increase value to the customer. Leidner (2006) & Lin (2015), from their study come up with the view that knowledge management is a process of capturing, storing, sharing and using knowledge. Moreover, according to, Schultze & Leidner (2002), it can also be defined as a systematic process for gathering, organizing and communicating both tacit and explicit knowledge of employees which can be used in their works. Kankanhalli (2005) & Greiner (2007), studied that organizations by turning to knowledge management initiatives and technologies will able to sustain, increase, and influence their knowledge resources. Newell (2004) & Alavi (2005), emphasized that, in order to use the knowledge effectively and efficiently, the goal of knowledge management is to enable the organizations to be aware of their knowledge and shape the knowledge. Griffiths and Lemenyi (2008) studied and analyzed that KM helps business organizations to create; share as well as produce combined information, approaching and experience and combine them with knowledge from external sources, and put all this knowledge to use in solving business problems. Halawi, 2005, defined Knowledge management as a managerial activity that develops, transfers, transmits, stores and applies knowledge, and also provide members with real information to act wisely and make right decisions, enabling them to fulfill organizational goals.

Assumptions • Organizations accomplish goals and objectives only if they work more effectively and efficiently • Business organizations have more faith on benefits derived from knowledge management rather then that provide time-based

Framework of knowledge management (collision and parcel) • • • • • •

Avoiding controls on re-invention in large as well as international organization, speed up the absorption process subsequent with merger and acquisition Identifying, confining as well as allocation of good-quality practices in the organization Tracing out various organizational barriers that set back the organization and dealing with them Building carefree and supporting system building a learning environment with continuous improvement

Steps involved in of knowledge management process • • • • •

Setting of common organizational goals Focus on knowledge base learning Connecting learning activity to knowledge bank. linking the people (who hold key knowledge) and system and Right leadership behaviors

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Four Major Elements in Knowledge Management Process 1. Knowledge Creation: This process involves new implementation of knowledge or replacing the current content within the organization’s explicit and tacit knowledge. It requires the organizations to search for new knowledge and information, both inside and outside of the organizations. The organizations can acquire new knowledge through imitation, benchmarking, replication or outsourcing. This process has been considered as important role as it generates new knowledge within organization and this can be switched to key success factor and continuous innovation. Knowledge is able to be created, shared and enlarges through collaborative processes within organizations. 2. Knowledge Storage: Both explicit and tacit knowledge obtained by individuals within organizations should be stored. The organizations should arrange and manage the knowledge thus it can be accessed easier. When the knowledge is integrated, it helps to reduce the redundancy thus enhance efficiency. Knowledge storage is not only vital for effectiveness of usage but also vital for reusing the knowledge. 3. Knowledge Dissemination or Knowledge Transfer: This process involves sharing and exchanging knowledge among individuals or network of individuals, a group of people to the organizations and individual to explicit sources. During the process, the organizations must ensure that the knowledge is transformed from tacit knowledge to explicit knowledge to prevent the loss of tacit knowledge. 4. Knowledge Application: This process involves the usage of knowledge in adjusting the strategic direction, solving the problems, making decision, improving the efficiency and reducing costs. The individual can make use of the knowledge possessed by other individuals without actually learning that knowledge. However, if the organizations want to capitalize the knowledge, they should know how the knowledge is created, disseminated and used as these processes are the basic for an effective organizational knowledge management. Benefits and Strengths of knowledge management framework are • • • • • • •

More Deliverance Better recognition and relocate good practices Leading to improved product development and continuous improvement Prevention from repeated mistakes Helps in identifying the gap and measures to overcome Improving and finding new ways of sharing knowledge Realistic move for a wide range of organizations.

It is accepted largely that knowledge, is one of the vital and imperative assets for a business organization. Awareness about that is what keeps managers going. Information shared is knowledge acquired. Managers always need to be informed and to inform creating a bigger picture of the importance of communication in organization. Loopholes in organization can only be identified through sharing information with the relevant stakeholders or concerned parties.

Conclusion Sharing information is then the beginning of an organization’s knowledge management process. The practice of organizing, storing and sharing of vital information for the benefit of ever individual is the key to the success and performance of any organization. It is important for organization to share information across internal organizational boarders. Also they need to consider regarding the usage of knowledge like that will going to use and how, what benefits can be derived, how the target group can be beneficial, how the information will be transformed for the required purpose. “Organizations invest too little in developing leadership behaviors and competences of their employees”

Chapter 3: Knowledge Management Strategy19

References 1. Alavi, M., and Leidner, E.D. (2002). Knowledge Management and Knowledge Systems. In Barnes Stuart (ed) Knowledge Management Systems: Theory and Practice, Thomsen Learning 2002. 2. Davenport, T.H., & Prusak, L. (2000), Working Knowledge: How Organizations Manage What They Know, Harvard Business School Press, Boston, MA. 3. Fontaine, M. and Lesser, E. (2002) ‘Challenges in managing organizational knowledge’, IBM Institute for Knowledge Based Organizations. 4. Carlucci, D., Marr, B., and Schiuma, G. (2004) ‘The knowledge value chain: how intellectual capital impacts on business performance’, Int. J. Technology Management, Vol. 27, No. 6/7, pp. 575-590. 5. Akhavan, P., Jafari, M., and Fathian, M. (2005), ‘Exploring Failure-Factors of Implementing Knowledge Management Systems in Organizations’, Journal of Knowledge Management Practice, vol. 6, May, pp. 1-8, 6. Gamelgaard J. (2007), Why Not Use Incentives To Encourage Knowledge Sharing?, Journal of Knowledge Management Practice, Vol. 8, No. 1, March 2007. 7. Claver-Cortés, E., Zaragoza-Sáez, P., Pertusa-Ortega, E. (2007). Organizational Structure Features Supporting Knowledge Management Processes. Journal of Knowledge Management, Vol. 11 Iss: 4, pp. 45-57. 8. Chan, J.O. (December 1, 2009), Integrating knowledge management and relationship management in an enterprise environment, Communications of the IIMA. 9. Altaher, A.M. (2010) ‘Knowledge Management Process Implementation 2011’, International Journal of Digital Society (IJDS), Vol. 1, Issue 4, December, pp. 265-271. 10. Andreeva T. & Ikhilchik I. (2011), Applicability of the SECI Model of knowledge creation in Russian cultural context: Theoretical analysis, Knowledge and Process Management, vol. 18, issue 1. 11. Al-Hakim, L.A.Y. and Hassan, S. (2011), ‘The role of middle managers in knowledge management implementation for innovation enhancement’, International Journal of Innovation, Management and Technology, vol. 2, no. 1, pp. 86-94. 12. Allameh, S.M., Zare, S.M., and Davoodi, S.M.R. (2011) ‘Examining the Impact of KM Enablers on Knowledge Management Processes’, Procedia Computer Science, vol. 3, pp. 1211-1223. 13. Cronk, M. (2011), “Social Capital, Knowledge Sharing, and Intellectual Capital in the Web 2.0 Enabled World”, in David Gurteen (ed. 2012), Leading Issues in Social Knowledge Management (pp. 74-87). Academic Publishing International Limited.

Chapter 4 Role of Independent Financial Advisors in Mutual Fund Industry in India Tejinder Singh* and Dr Rahul Hakhu** Introduction Mutual fund business is distributed by banks, non-banking financial companies, brokers, independent financial advisors in India. The importance of the role played by the independent financial advisors (IFA) in the mutual fund industry can be gauged from the fact that in February, 2018, Foundation of Independent Financial Advisors (FIFA) has requested the Chairperson of SEBI Mutual Fund Advisory Committee (MFAC), Arundhati Bhattacharya to consider inducting a representative of IFA community on its board. The request has been acknowledged by the chairperson. With various government initiatives aimed at increasing job creation, mutual fund business can prove to be very important where start-ups along with the support of educators, industry can help in the penetration of this business model. The mutual fund industry has been witnessing continuous growth in the number of folios. The folio count has registered an addition of 1.6 Crore in 2017-2018, taking the total number to over 7 Crore (Source: Press Trust of India, Business Standard). The increasing attractiveness of the investor towards modern financial asset class i.e. mutual fund investment has attracted many people to start their entrepreneurial venture of becoming mutual fund distributor. To register as a Mutual Fund Distributor (MFD), there are two requirements: first being NISM (National Institute of Securities Market) certification and second being formal registration with Association of Mutual Funds of India (AMFI). The SEBI circular of September 13, 2012 also stipulates that employees who are having the job profile of sale and promotion of financial products i.e, mutual funds on behalf of companies and individual ARN holders are also required to be registered with AMFI by obtaining “Employee Unique Identification Number” (EUIN), although the requirement for AMFI Registration Number will be for the distributor only. Mutual fund schemes need to clearly mention EUIN of the employees doing sales and promotions of mutual funds in the application form but the ARN required to be mentioned will pertain to the distributor only. AMFI has till date issued over 1.1 lakh EUINs of which 53% are individual distributors and 47% are employees of corporate who are having the job description of sales and promotion of financial products i.e, mutual funds on behalf of the financial institutions. (Source: www.amfiindia.com)

Role of SEBI Till May 2010, AMFI used to conduct the AMFI Certification Examination through NSE/BSE/ICM/CIEL. But with effect from 1 June 2010, this function was assigned to National Institute of Securities Markets (NISM) by SEBI, by a Gazette Notification dated May 31, 2010. AMFI has been issuing AMFI Registration Numbers (ARN) to intermediaries since the year 2002. Without ARN, it is not possible for the intermediaries to do the distribution of mutual fund products. AMFI introduced AMFI Code of Conduct for MF Distributors in the year 2002 to ensure minimum standards of services to the customers. The role of AMFI in monitoring of the compliance of the Code of Conduct, including the suspension of MF Distributors and putting on hold the payment of commission by way of disciplinary action arising *Assistant Professor, Apex Institute of Technology, Chandigarh University, Punjab. E-mail: [email protected] **Associate Professor, Apex Institute of Technology, Chandigarh University, Punjab. E-mail: [email protected]

Chapter 4: Role of Independent Financial Advisors in Mutual Fund Industry in India 21 out of fraud or breach of Code of Conduct. AMFI ARN Committee has been set up since 2002 to deal with different issues with respect to review of code of conduct, matters involving MF Distributors including carrying out disciplinary actions against MF Distributors for fraud or breach of Code of Conduct. The role of AMFI has been broadened to cover the implementation of Know Your Distributors (KYD) process with effect from September 1, 2010, including carrying out of biometrics of MF Distributors. AMFI not only facilitates the interactive meetings with various associations of MF Distributors on quarterly basis, but also helps in addressing the operational issues faced by them. The present rules of Securities Exchange Board of India (SEBI) stipulate the registration process and membership criteria as per different categories as explained in Table 1 below: Table 1: Eligibility for Membership as a Mutual Fund Distributor Entity

Required Documents

Additional requirement

ARN Registration Fees (Rs)

Banks (Other than those specified below)

Copy of license issued by RBI, Copy of Board Resolution & List of Authorized signatories with Specimen signature

AMFI/NISM Certified 4,00,000 & AMFI Registered Corporate Employee.

Non Banking Finance Company (NBFC)

Copy of Certificate of Registration issued by RBI, Copy of Articles/Memorandum of Association, Copy of Board Resolution, List of Authorized Signatories with Specimen signature

AMFI/NISM Certified 1,00,000 & AMFI Registered Corporate Employee.

Public Ltd. Co.

Memorandum and Articles of Association, AMFI/NISM Certified 4,00,000 Copy of Board Resolution & List of & AMFI Registered Authorized signatories with Specimen Corporate Employee. Signature

Employees

Copy of AMFI/NISM passing Certificate.

Two stamp size photographs

1,500

Individuals

Copy of AMFI/NISM passing Certificate.


3,000

Senior Citizens Criteria to apply for allotment of ARN under this category:

a) Proof of age


3,000

a) A person who has attained age of 50 years as on May31, 2010 OR b) A person who has at least 10 years experience in the securities market as on May 31, 2010 AND/OR c) A person who has at least 10 years experience in distribution of Mutual Fund Products as on May 31, 2010

b) Copy of CPE certificate c) Certificate from a member AMC (Mutual Fund) certifying that he/she has worked for Ten years as mutual fund distributor/agent as on May 31, 2010. AND/OR d) Certificate from a Stock Exchange/ member of Stock Exchange, certifying that he/she has experience of Ten years in the securities market as on May 31, 2010.

Any individual satisfying any of the above mentioned criteria is eligible to register himself as ARN holder under senior citizen category. Source: www.amfiindia.com

In order to encourage the mutual fund distributors including the individual distributors, AMFI has slashed the fees for renewal of ARN to the 50% of the amount of the fees payable at the time of registration.

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Impact of GST on Mutual Fund Distributors GST is payable by any person including artificial persons who are indulged in taxable supplies of goods/services with turnover exceeding INR 20 lakhs per annum on pan-India basis. In addition, the government has also imposed the concept of reverse charge mortgage wherein the tax on some of the goods and services. Under reverse charge mortgage, buyers of goods or services will directly pay tax to the government; normally the tax is collected by the seller from the buyer for further submission to the government. Before the GST Bill, reverse charge was applicable in case of services only but not the goods. But now the GST has been made applicable in case of goods also. For the purpose of identification, a separate HSN (Harmonized System Nomenclature) has been assigned for all the goods and services. IGST is the Integrated Goods and Services Tax, a part of GST under the concept of one nation one tax. It is charged on the goods and services supplied from one state to another. With the imposition of IGST, the income of the distributors has been adversely affected in those cases where the area of operation of the distributors and the Asset Management Company is in different states. Although, in an effort to provide some relaxation to the mutual fund distributors, the GST council headed by the Finance Minister Arun Jaitley had put on hold the application of reverse charge mechanism (RCM) until March 2018. Table 2: Number of Distributors in India- Individual and Non-Individual Category

August 2017

December 2016

Incremental Increase

Individual ARN

75,866

68020

7846

EUIN holders

116,735

90,229

26506

Total

1,92,601

1,58,249

34,352

Source: Association of Mutual Funds in India (AMFI)

It is clearly evident from Table 2 that the incremental increase in the registration of individual ARN is a healthy sign for the mutual fund industry as more and more people are making their career in financial services sector. The government should provide special financial assistance to those who are willing to take the mutual fund business as a distributor so that competition can be given to the foreign players. A number of regulations that have been introduced in India in the last few years lay down the focus of financial advisors building longer term relation with their clients and having a stake in the financial success of the investors. IFAs should synchronize themselves with the industry trend and accordingly plan the business strategy. MUDRA Bank set up by the Government of India can earmark a separate outlay for the distribution business by the independent financial advisors.

Role of Independent Financial Advisors in Mutual Fund Industry in India A variety of products are available to the investors in mutual funds. Independent Financial Advisors offer these products on the basis of risk and return expectation, investment time period and the style of investment. While majority of the senior citizen section of society prefer mutual funds for their retirement needs, others may be looking for investment in mutual funds for the purpose of a short holiday. The ability of the independent advisors to analyze the market outlook given by the Chief Investment Officer of the fund is also very crucial for proper guidance to the investor. Independent financial advisors help the investors manage their money since the investment in individual stocks is much more risky than investment in a diversified portfolio. Independent financial advisors need to clearly differentiate between need-based investing and view-based investing. Need based investing is known as strategic one where investment is done for specific financial goals. A financial advisor therefore must lay stress on the funds which are according to the risk profile of the investors. However, in case of view based investing which can also be called tactical asset allocation, a financial advisor clearly make the investors aware of the risk involved if the markets does not perform in line with the expectations. The Securities and Exchange Board of India is playing a crucial role in the introduction of regulations in the mutual fund industry for the promotion and protection of the welfare of the Indian Investors. For the purpose of interaction

Chapter 4: Role of Independent Financial Advisors in Mutual Fund Industry in India 23 of the Independent Financial Advisors with the policy makers and to strengthen the members to give proper direction to the investors in India, Foundation of Independent Financial Advisors has been formed as a Non-Profit Organisation under Section 25 of the Companies Act, 1956 which officially got its Certificate of Incorporation on 15th February 2012. With such initiatives, the future of the capital markets in India is indeed bright, not only helping the investors reap good returns but also providing the opportunities for entrepreneurs to set up their own ventures which will further the make the capital available for the industry leading to increase in Gross Domestic Product.

References 1. Press Trust of India, New Delhi, April 30 2018 (Business Today).

Web-portals 1. www.amfiindia.com, accessed on 30-05-2018. 2. www.fifaindia.org, accessed on 01-06-2018.

Chapter 5 Digital Marketing: Tool to leverage Competitive Edge in the Banking Industry Dr. Bhupinder P S Chahal* and Rupali Khanna** The purpose of this chapter is to create a basic understanding of Digital Marketing particularly focusing on Banking Industry and to create an understanding of tools of digital marketing that can be used to leverage the competitive edge in the banking industry. The chapter discusses how tools like Search engine optimization, pay per click, content marketing, mobile marketing and social media marketing are benefitting the marketing in banking industry. Along with the benefits of digital marketing, chapter also discusses few challenges that are seen while adopting digital marketing tools.

Introduction The popularity of social media and mobile banking are fusing together. The growing trend of mobile banking threatens to overshadow its brick-and-mortar counterparts in the near future. The penetration of smart phone use is pushing forward what we call as mobile finance management. As a result of growing number of users of mobile and internet banking, financial organizations are altering the way the carry out business and communicate the consumers. According to a report drafted by the Facebook, the number of users opting for internet banking is expected to double to reach to 150 million by 2020, from the current 45 million active users in India. India is in the midst of a digital revolution with mobile users increasing the quality of their internet usage from just ‘search’ or social networking to more mature activities of banking and shopping. The Boston Consulting group (BCG) in a report titled ‘Encashing on Digital: Financial services in 2020’ has highlighted the digital influence on financial services mentioning that ‘India could not be more ready for the digital revolution in financial services-with government interventions on one hand and growing consumer awareness on the other hand. India is set to leapfrog many advanced countries in this regard’. From creating a Digital India to setting up open architectural layers like Aadhar, GST, Bharat bill payment system etc., and Indian government is slowly evolving the Digital ecosystem. With technology changing constantly, it is important that banks just not track but become the ‘first movers’ or at least the ‘first followers’ of these technologies to attract more customers. The ubiquitous nature of internet has made the communication easier and necessary. The trends of promoting a product have changed with the revolution of internet.

What is Digital Marketing? Digital marketing is the promotion of products or services through one or more electronic modes, separating from the traditional modes in the sense that it uses channels and methods to understand and operate in real time scenario. It may include efforts made to communicate about the product or services through social media, mobile phone, electronic *Professor and HOD - MBA, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

Chapter 5: Digital Marketing25 billboards etc. While internet is the most closely related channel for digital marketing, other channels may be text messages, electronic mails, digital televisions, podcasts and mobile apps. Thus, the fundamental of Digital marketing is no different from traditional marketing but it is just promoting and selling by leveraging on internet marketing tactics.

Why Digital Marketing in Banking? Digital marketing is not only developing quick power in today’s world but it is eventually the fate of marketing. Digital marketing ways are quicker, adaptable, and quantifiable and result driven. The following figure is a simple and visible example that thrusts upon the adoption of digital marketing practices.

Fig.1: Source: www.thefinancialbrand.com With the unfolding of modern technologies, businesses are changing the plans of action from manual to digital one or modifying the existing marketing strategies to keep up the pace with the world. Here are some most important reasons for the banking industry to adopt digital marketing Strategies. 1. Growing number of Internet Users: An opportunity to harness benefits of technology The mounting figures of number of users depending upon internet are bringing an opportunity for banks to avail the benefits of technology at low cost. Not only just the internet banking, but the financial literacy among the Indian population, especially youth, is bringing an opportunity to accelerate business growth. The numbers don’t lie- the projected figure of internet users by 2021 is almost 200 million whereas 536 million are only Indian language

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internet users. Growing dependence on e-wallets and online transactions especially after demonetization have made people habitual of avoiding the distance to travel to bank branches and developing them to stay glued to their phone screens for day to day activities. Thus, in order to reach to customers, the banking industry cannot stay aloof from the crucial influence of technology.

Fig.2: Internet users in India 2. More Cost Effective than Traditional Marketing Digital Marketing generates better cost per lead (CPL) contrasted with other marketing channels. After all, the accomplishment of any business is measured by the rate by which the approaching traffic is converted into interested lead, which should be low. If there is no conversion, all the activity or effort done to promote the product goes futile. Digi-Marketing is an easy tool to chase the traffic and customize the efforts to affiliate personally with the targeted leads. The cost attached to chase a lead is low as the efforts are more digitized rather than in traditional form. 3. Brand Reputation The importance of digital marketing lies in its capacity to attract audience who are in all likelihood and intrigued to buy what you bring at their table. It helps in creating awareness among people about the brand. Banking industry can harness the benefits of digi-marketing by being in touch constantly with consumer and updating them on their products (services) bought. A Constant connection with the customer assures him full time involvement of the seller catering to his needs round the clock. This adds in building a good reputation of the business and likelihood of conveying about the brands to further individuals by them. According to Neilsen Global Online Consumer survey that included 25 thousand purchasers originating from almost 50 nations- “90 percent of respondents claimed they would trust information about a particular brand, product or service if data comes from people they know.” A good word of mouth puts an influential impression on the mind of potential customers who are shown the way by the existing users, hence escalating and optimizing brand reputation. 4. Better Return on Investment Digital marketing is a rocket fuel for development of ventures. Along with better conversions, they ensure better return on investment. With the same pie of efforts, it opens bigger and better gateways to global audience too. The cost involved in marketing the products diminishes with large scale benefits generated hence leading to better return on investment. In a survey, Google along with IPSOS, Hong Kong affirm that organizations utilizing digital marketing techniques generate 2.8 times better revenue than those who don’t.

Chapter 5: Digital Marketing27 5. Leads the way for IoT (Internet of Things) Internet of things (IoT) can be understood as inevitable biological system of interconnected devices that include cell phones, tablets, PCs and so on. Such devices can communicate with each other by using internet. IoT aids ubiquitous existence of interconnected environment that penetrates through day to day routine o individuals. Digital Marketing lets you be equipped with adaptability for IoT that ensures online business survival and long term benefits.

Tools of Digital Marketing in Banking Industry To remain competitive for the modern updated consumer, banks need to set aside a large chunk of budget towards online advertisement such as digital ads, content marketing and search engine optimization. These are investments that will lead to increased revenues and enhanced brand recognition. It is a way to integrate the banking business to the online word to have a global visibility of the name and building relationships with the customers. Following is how digital marketing works via its tool kit step by step.

Fig.3: Source: www.nefma.org 1. Search Engine Optimization (SEO) The purpose of SEO is to be upfront when somebody talks about the brand. Customers have always been pennywise and take time to decide before giving their money in good faith to any bank. Due to internet, all that a customer does is spending much time searching and collecting information about products. Let’s consider a customer looking for fixing his money for a term at particular interest rate. The first thing that he will do is searching ‘interest rate in fixed deposit’ in a search engine. A bank’s goal, in order to convert customer’s intention into decision, is to be on the first page (probably among topmost) when someone searches for banks. Research indicates that more than half of the traffic comes through organic search i.e. people clicking on links through search engines. Thus banks need to be visible on search engine. SEO includes optimizing pages such as keywords in the description, the page title and the URL. It’s not easy to be optimized by a search engine because the language chosen in the online content should match the vocabulary employed by the customer base.

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2. Pay per Click (PPC) Ever seen those sponsored ads on the top of Google’s search page or on the right of Facebook or many other websites like below:

Fig.2: Pay per click ads as appearing on the top of Google page Pay per click is the way of buying visits to the website rather than earning those visits organically. Advertisers are offered a unique medium to advertise their products to reach to the audience who are seeking the product. PPC enables search engines to cater to the searchers and advertisers simultaneously. It requires advertisers to pay only when their advertisement is clicked by an online user. Search Engines like Google and Bing may click advertising available on auction basis where the highest bidder typically earns the most prominent placement. For Exampe, If someone searches ‘credit card’ and your bank has bid for say $2.50 maximum on the keyword, then your bank name will appear first. So if 100 people click that link, the search engine will charge you $250 and likewise. PPC marketing is easy quick and economical. 3. Social media Marketing Customers are already interacting with brands through social media. Business are directly pursuing their customers more through Whatsapp, Liknedin, facebook, twitter or any other social platform. Social media marketing is an influential way of marketing as the message can be posted in the form of an image, text, video or clipart that drives audience engagement. Viral, Buzz, hastags, Memes have become lingua franca of the branding on social media. Being active on social media gives following benefits: • • • • •

Large reach out Increased Brand Recognition as social medias are just new channels for the voice and content to the brand Improved brand loyalty Encourages Sharing Better Opportunity of conversion

Chapter 5: Digital Marketing29 Example: The social media marketing channel adopted by ICICI via its Facebook page.

Fig.4: Facebook page of ICICI Bank 2. Twitter Account of State Bank of India

Fig.5: Twitter Page of SBI

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4. Content Marketing Customers search for quality content online. They always look for a brand that will answer their question and provide them with value. In order to generate more traffic and encourage people to the website, the company needs to consistently publish articles on the topics that customers are regularly searching. The content might include things like tips for first time homebuyers or a discussion on increase in deposit rates or the choice between various investment options. The content can also be used in other marketing and promotional materials, such as social media sites and email newsletters. These sources can be used to acquaint people to the content and encourage them to further engage with the website. These postings help to build the authority and encourage people to contact them with questions or possible leads. Content can also be used as a means of converting into leads and building the relationships. For example, a person reading an article about interest rates is likely interested in making an investment decision. Inviting them at the end of the content to speak with a specific representative of the institution for more information can help converting the leads into customers. 5. Mobile Marketing Everything that could be done on a desktop is available on mobile now. Mobile phone usage is disrupting the way people engage with brands. Mobile Marketing is a multi channel digital marketing strategy aimed at reaching a target audience through mobiles or tablets via SMS, E-mails or apps. Mobile Marketing is understanding the mobile audience and designing a mobile friendly content keeping in mind the mobile display and design. Mobile friendly website is no more an option- infact its must. Mobile friendliness comprises appropriate fitting of the content on the screen without side to side scrolling or zooming; quick loading of the content and quick site-returns with no mobile specific errors. According to a research consisting of more than 5000 smartphone users, 64% of the users abandoned the mobile pages which do not load within 10 seconds and further recommended to people to not to navigate the website of the same brand. Other important channel of Mobile Marketing is SMS which is more personal channel of targeting audience than any other channel. SMS marketing is a powerful tool and makes the advertisers to be very thoughtful for the brevity of the message to make it appealing as the message is supposed to reach to his personal space.

Fig.6: An example of mobile banking of SBI

Challenges of Digital Marketing As said by Ivan Menezes, CEO at Diageo, “it’s not about doing Digital Marketing; it is about marketing effectively in a digital world.” Though Digital Marketing is an important tool for reaching customer in the modern age. Due to a vast drift in the marketing landscape and the way consumers interact online, Digital Marketing has some challenges to pose to advertisers.

Chapter 5: Digital Marketing31 1. Big Data Management: Digital Marketing is based upon huge amount of information of customers that companies have to store to observe the behavior of their customers. Organizations have to collect and work with large amount of data. Ineffective data management defies company’s elevation. Data needs to be centralized so as to be accessed by all units of organization simultaneously. Efficient data storage requires huge investments in software and timely updating too. 2. Understanding Digital Customer’s Behavior: Customer is the central point to drive all the transformations in digital marketing. To observe and understand the digital behavior of customer is a challenge. Not all customers are consistent using digital means. To develop digital marketing strategies, it is important to outline the digital journey of customers. Keeping a track of their routine transactions and nature of buying or surfing is a herculean task. 3. Cyber Security: Amidst floating spam and malware in the form of ads on internet, it is important to make the ad appeal trustworthy. Hackers and spammers not only infect the ad but also indulge in creating the dummy ads by using the same brand name. The y may even block the original ad and display the dummy infected with virus. Thus, ad needs to be safeguarded against possible attacks and needs to have an authentic visual appeal. 4. Multiple Channels: Choosing the most suitable channel to digitalize is a question. There are multiple channels out there in the digital world. Whether a business should choose mobile media or social media or email newsletter or all, depends upon its capacity to invest and suitability of the targeted audience. The choice of right medium can make the advertisement more influential. Unsuitable channel will increase the cost of investment with negligible returns.

Future of Digital Marketing Digital Marketing is a hot trend in the market not only as a career opportunity but also from viewpoint of expansion of business and brand visibility across globe. With its in-seeding stage since 1990s with growing companies like Amazon, Snapdeal etc. till date, digital marketing has remained one of the fastest growing industries. Businesses cannot ignore the presence of over 462 million internet users in India, which is the second largest number of internet users in world after China (Source: Statisa Report, June 2017). The report mentions that this number should be annually growing at the rate of 31% for next five years, which itself is an opportunity for digital marketing to grow. This can make a huge contribution in the nation’s growth by becoming a vital ingredient in the making up of ‘Digital India’ and of course generating employment opportunities. With a merger of ideas, technology and data analytics, Digital Marketing is going to get rooted and play a major role in the future with the emerging concepts. As marketing is becoming intoxicated by the digital transformation occurring to day to day, digital marketing will leave an impact with its advantages of cost efficiency, flexibility, convenience, and large reach and real time operations.

References 1. Bhattacharya, C B and Ruth N. Bolton. (2000). Relationship marketing in mass markets. Handbook of relationship marketing Eds Sheth, Jagdish N and Parvatiyar Atul. Sage Publications. 2. Balasubramanya S.(2002). IT wave breaks over banking. THE CITY. 3. Jayachandran, Satish., Sharma. Subhash., Kaufman. Peter, Pushkala. Raman.(2005). The role of informational processes and technology in customer relationship management. Journal of Marketing 69(October):177-192. 4. Leeflang. S.H., Verhoef. P. C, Dalstrom. P, Freundt, T. (2013). Challenges and solutions for marketing in digital era. European management journal, 32 92014 1-12 4. 5. Meenu, Arora. Sangeeta. (2012). Microfinance interventions and customer perceptions: a study of rural poor in Punjab, Decision (ISSN 0304-0941), Vol. 39 Issue 1, p. 62 (April). 6. Palani A., Yashodha. P. (2012). A Study on Customer Perception towards mobile banking in Indian overseas bank. International Journal of Marketing & Technology, Vol II Issue IV, April.

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Weblinks 1. 2. 3. 4. 5. 6. 7.

www.tandfonline.com/doi/pdf/10.1080/08911762.2017.1365991 May 17,2018. www.cognizant.com/whitepapers/digital-marketing-in-banking-evolution.pdf May 18,2018. thefinancialbrand.com/60269/digital-marketing-revolution-banking.pdf May 18-22,2018. www.ijept.org/index.php/ijept/...Banks...Online Marketing...to.../pdf_134 May 21,2018. www.nefma.org/resource/resmgr/.../A_Farley_Digital_Marketing_P.pdf May 22,2018. www.digitalvidya.com May 18-23,2018. www.contenttools.com May 18-23,2018.

Chapter 6 Green HR- An Initiative towards Environment Sustainability Ritu Sharma* and Vishal Choudhary**

In the last few years, globalization and industrialization has caused huge damage to our planet and to do the much needed effort in this regard, researchers believe that employees should be motivated, empowered and environmentally aware to participate in green initiatives. There is rising demand for the integration of environment management into human resource management-Green HR. Green HR is the use of HRM policies to focus on the sustainable use of resources within business organizations and, more generally, to propagate the cause of environmental sustainability. Green HR includes two major elements-environment friendly HR practices and preservation of knowledge capital. It involves undertaking environment friendly HR initiatives resulting in greater efficiencies, lower costs and better employee engagement and retention. The objective of this chapter is to understand the concept of green HR and to study various HR processes (from recruitment to exit) involved in green HR on the basis of available literature. It also analyses the nature and extent green initiatives taken by various organizations

Introduction Sustainable development is concerned with fulfilling the needs of people today without compromising the ability of future generations. Companies now feel that they have to develop a powerful social conscience and green sense of responsibility where corporate responsibility is not just a brand building technique to have, but also one of the elements essential for organizational growth. The HR function will become the driver of environmental sustainability within the organization by aligning its practices and policies with sustainability goals emphasizing an eco-focus. Sustainable development is mostly identified by referring to the establishment of a balance between 3Ps Profit, Planet and People- known as the “Triple bottom line. HRM plays the critical role in embedding sustainability strategy of the organization for creating the skills, motivation, values and trust to achieve a triple bottom line (People, Planet and Profit). In order to implement an effective corporate green management system it is important to promote a great deal of technical and management skills among all employees of the organization. Organizations look at development of innovative tools and initiatives of environment management which will significantly impact sustainability of the firm and promote a competitive advantage. Therefore to develop such a framework it becomes ideal to have effective human resource management practices including presentation of strict recruitment strategies, appraisal and reward systems which include environmental awareness and implementation in their evaluation process and training and empowerment programs which will enable the development of new set of skills and competencies amongst the employees of “pro green” firms. *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Head-HR, Bharti Airtel Limited, UP and Uttarakhand.

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Companies that have effective green policies generally get benefits of increased sales and branding recognition along with desirable employee outcomes. So it is employees who are involved in the implementation of organizational green policies, it important for companies to promote and finally change employee behaviour so that it can be aligned with organizational green objectives. Most of the organizations are adopting Green HR practices to enhance green behaviour in the workplace. By inculcating green attitude and behaviour in employees it enhance their motivation and more and more people search for significance and self-actualization in their jobs. There is a growing need for the integration of environmental management into Human Resource Management (HRM) practices; such effort is known as Green HR initiatives. Green HR means using every employee interface in such a manner in order to promote and maintain sustainable business practices as well as creating awareness, which in turn, helps organizations to operate in an environmentally sustainable manner. Hence, Green HR encompasses two major elements: environmental-friendly HR practices and the preservation of the knowledge capital. It is the responsibility of present day HR managers to incorporate green HR in the corporate mission statement and HR policies. The methods used under green HR initiatives include educating employees about global warming and other environmental issues, training in adopting various methods that reduce the use of energy and other resources, promoting and inculcating more sustainable means of travel to work and auditing of employee benefits to minimize those that are not environmentally sustainable.

Concept of Green HR Green HR is defined as HR activities which enhance positive environmental outcomes. Green HR means to integrate human resources with environment sustainability for optimum utilization of resources. The term ‘green HR’ is often used to refer to the contribution of HR policies and practices towards the environmental issues and which mainly involves environment friendly HR practices and preservation of human capital. Green human resources emphasize in using every employee interface to promote sustainable practices and increase employee awareness and commitments on the issues of sustainability. It involves undertaking environment-friendly HR initiatives resulting in greater efficiencies, lower costs and better employee engagement and retention. Green HR initiatives and practices are also instrumental in creating competitive advantage for the organization. All of these researchers promote the ideology that is important for proper alignment of human resource management principles with objectives of green management in an organization. It is identified that the greater the strength of green human resource policies the greater is the intensity of adoption of environment management systems (EMS) and policies by the different companies. Green HR initiatives help companies find alternative ways to cut cost without losing their top talent. Green HRM has got different meaning for different people, Ashok Ramachandran, Director HR Vodafone Essar Ltd defines green HR as using every employee touch point to espouse sustainable practices and raise employee level of awareness, Anjana Nath Regional Head HR, Fortis healthcare Ltd defines Green HR as environmentfriendly HR initiatives leading to better efficiencies, lesser cost and heightened employee engagement levels.

Green HR Processes Recruitment: General Job descriptions can be used to specify a number of environmental aspects. These include environmental reporting roles and health and safety tasks, which staff are exposed to harmful substances/potential emissions (and their extent), and matching personal attributes to needed environmental competencies. Therefore sustainable development issues must be integrated into the recruitment process. This involves monitoring the long-term competency requirements for the company, providing new employees with information about sustainable development policies and commitments, using recruitment procedures which support the equitable representation of applicants and recruits in terms of gender, age, racial and ethnic groups, sexual orientation, disabled people and other relevant groups. For this the company’s job descriptions should reflect the sustainability agenda and the company’s website and other research tools available for candidate access should clearly outline its greening endeavors. Finally the interview questions should be tailored to flesh out potential compatibility with the company’s green goals. The common sections of job descriptions can be used to specify a number of environmental aspects. The job title and chain of command must include environmental reporting roles and health and safety tasks, which staff are exposed to harmful substances/potential

Chapter 6: Green HR- An Initiative towards Environment Sustainability 35 emissions (and their extent), Job purpose must contain a reference to sustainability, the functions of the job list the primary duties associated with the position and highlight the specific eco-aspects of the job and matching personal attributes to needed environmental competencies, i.e. buying-in specialist competencies via new hires or investing in training. These then should be explained in the company’s want ads reflecting the company’s commitment to sustainable development and ask that all resumes contain evidence that the prospects have contributed to triple-bottom-line enhancement in prior positions. Some online websites include green dream jobs, GreenBiz.com providing green jobs. Survey data in the United Kingdom (U.K.) show that high achieving graduates judge the environmental performance and reputation of a company as a criterion for decision making when applying for jobs. A survey by the British Carbon Trust shows over 75% of 1,018 employees considering working for a firm see it as important that they have an active policy to reduce carbon emissions. In fact becoming a green employer may improve employer branding and be a useful way to attract potential employees. The latest CIPD/KPMG survey of 1,000 respondents states that 47% of HR professionals feel that employees would prefer working for firms that have a strong green approach and 46% stating that having one would help attract potential recruits. Overall, being a green employer may help to increase employee motivation and engagement (through a shared set of values), create competitive advantage from the opportunities presented by changing markets, with the desire to learn from customers, consumers, suppliers and colleagues, reduce labour turnover (because the organization is one in which people want to work), and improve the health of the workforce (for example, by encouraging cycling to work, car sharing, public transport). Induction for new recruits is seen to be needed to ensure they understand and learn their corporate environmental culture in a serious way. In nutshell the recruitment aspect of green HR can be achieved in the following way: • • • • • •

To develop green employer image. To clearly define the greening endeavours in organization’s job description. To identify green criteria for job screening. Tailoring interview schedule with green goals of the organization. To give some preference to the resumes of ‘Green-aware’ candidates. To familiarization new recruits with green aspect during induction.

Performance Management System: Using performance management in environmental management poses the challenge of measuring environmental performance standards across different units of the firm, and gaining important data on the environmental performance of managers. Firms like Tata Group of Companies have implemented environmental performance standards at corporate level (which cover on-site use, waste management, environmental audits, and the reduction of waste) to measure environmental performance standards, and developing green information systems and audits (to access useful data on managerial environmental performance). One way in which performance management systems can be successfully initiated in an organization is by linking the performance evaluations to the job descriptions mentioning the specific green goals and tasks. For example Performance Appraisal can include such topics as environmental incidents, usage of environmental responsibilities, reducing carbon emissions and the communication of environmental concerns and policies. HR systems such as e-HR can be introduced to be able to help management and employees track their own carbon emissions. There is also a need to bridge any differences in corporate rhetoric and action, and develop HR systems in performance appraisal, and reward so that environmental management initiatives are not seen simply as a management ‘fad’. It is suggested that if environmental criteria are integrated into the process of employee appraisal (by writing such responsibilities into all staff action plans), then a learning culture in environment management can be encouraged. Also the managers can ask employees to bring specific green ideas pertaining to their individual jobs to their performance evaluation meetings. These ideas can be brainstormed together to include them into the objectives for the upcoming year. Attaining these objectives would be the basis of performance evaluation. Companies should focus on following areas for implementing green performance management system • To identify green performance indicators for performance management system. • To integrate green standards with performance appraisal system. • To communicate roles, responsibilities and targets in achieving green-outcomes.

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To develop green information system and audits. To enable management and employees to track their own carbon emissions through e-HR. To encourage suggestion schemes for innovative ideas in green HR. To penalize employees for non-compliance of green standards and targets

Training and Development: Employee training and development programmes should include social and environmental issues at all levels, from technical health and safety considerations on the shop floor, to strategic sustainability issues at executive management and board level. They should cover the full range of social, environmental and economic risks and opportunities involved with the business and the means to identify them. The focus should be on developing competencies for different business functions and different levels of seniority. Green orientation programs for the newly hired employees should be an integral part of the training and development process. HR should inform the employees about the green procedures and policies including the vision/mission statement of the company, the sustainability oriented benefits, company-wide initiatives like reducing greenhouse gases, creating green products etc. Training is a key intervention to manage waste (in terms of both prevention and reduction), and occurs through organization’s training teams of front-line employees to produce a waste analysis of their work areas. Such employees are considered to be important source to identify and reduce waste as they are closest to it, but they must be trained on how to collect the relevant data. Examples of best company practice in training and development in environment management in the U.S. comes from Allied Signal Inc., which includes a Total Waste Minimization (TWM) component into their training. Training methods like job rotation provides a useful way to train green executives or future board members in environment management, and is seen as a crucial part of successful environmental programmes. A number of steps may be used to establish an environmental training system, such as an audit of existing training system resources and activities, forming a corporate environmental committee (with HR representatives, environmental professionals/ consultants and other executives on it), a job analysis producing a job description, and environmental awareness as part of induction/orientation training especially for new employees (as done at the Body Shop in the U.K.), or to use a performance management system to monitor and review performance on productivity, quality, wastage and accidents. This may be followed by training to do the job, and an assessment of the attitudes, knowledge and skills staff may need for future green roles. The timing or sequencing of training then needs to be assessed, as it could be that the firm can build it into their existing provision (as health and safety training could include an environmental element, or management development programmes could include environmental exercises), with organizations need to evaluate and review the success of the training they have provided. It is suggested that ‘green teams’ can be established in each department, producing general awareness and specific training in environment management designed to increase personal ownership and motivation. Some other ideas include bringing in general interest speakers like local contractors who work on green buildings, recycling coordinators or experts on alternative transportation, reducing greenhouse gases, creating green products etc. Also the company can subscribe to popular industry based sustainability journals to update the employees about latest sustainability trends. One person in the office can be designated to answer daily sustainability questions like what can be recycled, green office supplies, using two sided printing etc. In addition, to assess the training required in environmental management, a training needs analysis (TNA) can be done in terms of assessing what environmental knowledge and skills employees need. Training and development under green HR can be summarized in the following manner • • • • • •

To analyse environment management training needs. To focus on green orientation programs to generate eco-values. To form ‘green teams’ to create general awareness and organize specific training on environment management. To provide opportunities to develop green personal skills. To do job rotation to train future green managers. To develop resource data on aspects of safety, energy efficiency, waste management and recycling.

Employee Involvement and Participation: An important way in which employee involvement and participation can be encouraged within the organization is to seek entrepreneurs within the company who are socially or ecologically

Chapter 6: Green HR- An Initiative towards Environment Sustainability 37 oriented known as eco-intrapreneurs. They have the ability to organize existing financial, human and natural resources in a way that enhance value to the company’s products or services where it did not exist previously. Apart from this employee involvement teams in environment management can reduce waste (as employees are expected to have the more knowledge of the work processes and products involved); can manage such complex work well; and using them helps in building employee pride and commitment in their work. Employee involvement teams can not only bring about a change in how work processes are performed, but also instrumental in improving employees’ health and safety. American Airlines claim their flight attendants recycle over 616,000 pounds of aluminum cans, earning at least $40,000 to them in one year, and Dow Chemical’s Waste Reduction (WRAP) programme was set up as a contest for all employees to engage with, and from which Dow claim a 173 per cent Return on Investment (ROI) from their first year of operation. Eco-initiatives occur from creative ideas from all employees, and hence mechanisms need to be made to involve employees in it – which include handing a role for managers in giving employees independence to generate innovative solutions to solve problems (which encourages their environmental management concern), and make utmost effort in implementing their skills. An employee involvement approach in environment management motivates the worker, allows them to detect problems like leakages in the process of production, and that delegating responsibilities to workers is based upon team knowledge of the causes of waste and how to reduce them as seen in EI in waste reduction at Kodak, DuPont, and Procter & Gamble. The two key gains from introducing Green EI initiatives are seen to be improvements in environmental and worker health and safety, and the development of more knowledgeable employees and supervisors. The findings suggest that employees need to be involved in formulating environmental strategy, so that they can create and expand the knowledge needed to market ‘green’ products. Organizations are encouraging employees to think of ideas to reduce carbon emissions and save energy. A recent HSBC initiative in the U.K. found benefits in carbon saving being seen to come from employee initiatives, including one where staffs at first direct can bring rubbish in from home and recycle it at work. The use of Employee Participation in employee participation has been noted to help prevent pollution from workplaces14. Employee parturition makes a contribution to improving environmental performance as employees possess knowledge and skills that managers lack. There are two ways in which the workers can participate on environmental projects: a suggestion programme and problem solving circles wherein the specialist staff is more involved in project initiation while line level workers are more likely to participate in project implementation. Other ways in which employees can be encouraged are to pursue green commuting habits like allowing flexible work weeks, establishing a car poolprogram, offering free or discounted free transportation passes, adding car sharing as a employee benefit and setting up transportation savings account. One of the major changes in the HR policy has been the growth of telecommuting or e-work an arrangement whereby workers perform tasks for their employers via a telecommunication link at their home which decreases the cost of commuting both in rupees or dollars and emissions. Grievance and Discipline: In general terms, grievance and discipline in environment management has seen few firms following the footsteps of the British firm National Westminster Bank in which internal ‘whistle blowing’ regarding environmental breaches is encouraged. The need to raise grievances is seen in high risk operations (for their safety record), and in such cases disciplinary procedures are attached to environmental rules and duties where non compliance occurs. Indeed, expert legal opinion is that some firms may eventually move to ensure that environmental obligations are secured by including clauses in staff contracts to do so, i.e. that environmentally unfriendly behaviour may constitute a breach of contract and therefore possible grounds for dismissal. Green Jobs: Green businesses have also been growing at a rate of about 5% annually during the last three years. Two particularly growing areas are global carbon credit trading, and construction and services associated with ‘green buildings’ that meet industry standards. The other area is the renewable sector like wind energy and ethanol production. Green employment gains may be made from using bio-mass as it increases the number of farming jobs, and work in the petrochemical industry for converting and mixing processes. Recycling is another area where the waste management industry may create many jobs. It is estimated that up to 35,000 people will be working in ‘green’ jobs in Britain by 2020, especially in the energy industry (an increase from 8,000), in wind and solar power, hydrogen, bio fuels, and coal-to-liquid technology, and also from existing mainstream organizations wishing to save energy.

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Compensation Pay and Reward Systems: Attainment of specific sustainable initiatives should be incorporated into the compensation system by offering employees incentives and rewards for adopting green practices and moving towards green behaviour. A variable pay element can be added to the compensation system by linking the pay to ecoperformance. Work organizations can benefit from rewarding waste reduction practices that teams develop. For example, when implementing a green suggestion a portion of the savings that accrued from its results can be returned back to the team or the employee who suggested the idea. DuPont has an Environmental Respect Awards program which recognizes employee environmental achievements, and both Nordstrom and 3M offer rewards for suggestions that individual employee contributes towards environment management and helps in increasing company profitability. Reward packages are related to acquiring designated skills and competencies (and not just for performance), as they are seen to be important factors in performance over the long-term, an example being that knowledge of environmental legislation or chemistry may prevent serious accidents or illegal emissions occurring. In general, such organizations are seen to need to develop reward systems to produce desirable behaviours in environment management, and doing so requires effective employment of both incentives and disincentives. Disincentives include negative reinforcements like suspensions, criticisms and warnings and may be needed to get employees to make environmental improvements, e.g. if employees engage in lapses in the handling of hazardous waste. Organizations may wish to engage in giving employees positive rewards in terms of verbal feedback from supervisors, as such informal verbal and written feedback will go a long way in motivating employees towards environmental improvements. Above mentioned initiatives can be summarized in the following way: • • • • • • •

To link pay with eco-performance. To offer incentives for rewarding green initiatives of employees. To reward waste-reduction practices. To promote recognition based rewards for sustainability competitions in green initiatives. To link suggestion scheme to reward system. To reward managers for motivating green practices among employees. To reward packages for acquiring designated skills and competencies that provide knowledge of environmental legislation or chemistry to prevent serious accidents or illegal emissions occurring.

Performance-Related Pay (PRP): Monetary-based environmental reward systems have been developed, where for example, an important proportion of monthly managerial bonuses are dependent upon performance outcomes in environment management, and company practice in the U.S., Europe and Britain has examined the Greening of Performance-Related Pay. In the United States, companies such as Du Pont base their executive compensation and bonus system for middle managers and senior officers in part on environmental stewardship practices, where bonuses can be over 10 per cent if they develop an environmentally benign pesticide for agriculture or a non-polluting product. In addition to promote green product sales the commission structure of the sales executives can be restructured so that they get the most commission money for pushing green products. While some firms have started to include environment management issues into their systems, as an extra performance criterion or as a baseline standard to be met to qualify for, it is important to consider the successful linking of contingent remuneration for senior managers and the higher performance produced in environmental management, and the successful use of public recognition systems that include financial compensation for employees. Recognition and Awards: Recognition-based rewards for example in the U.S. and U.K. include senior managers at presenting awards in public meetings, and via news articles. Recognition-based rewards in environment management can be offered at different levels within companies, for example by CEO‟s annually for individual, team, and divisional contributions to waste reduction, company-wide team excellence awards at Xerox, and in non-traditional forms like paying their employees for performing community service, and giving them opportunities to attend green events and rallies. Indeed, some U.S. companies like Federal Express are offering employees sabbaticals which enable them to take up to 3 months paid leave every five years to work on jointly-agreed projects with the firm. Other innovative non-monetary rewards that are being used by U.S. firms include paid vacations, time off, favoured parking, and gift certificates – with them all seen to encourage employees on environmental performance, whereas in Europe, the use of

Chapter 6: Green HR- An Initiative towards Environment Sustainability 39 environmental rewards and recognition (like daily praise and company awards) are seen to have a significant impact on employee willingness to generate eco-initiatives. Employee anniversaries can be celebrated with eco-friendly gifts like gift certificates to local natural food store, free bus pass etc. In Britain, companies are allowing employees to build up points for positive behaviour regarding emissions reduction on a ‘carbon credit card’ to earn extra benefits. There are many ways in which incentives can be provided in an environmentally friendly way. For example, car mileage for company cars can be extended to bicycle journeys and loans, staff can be offered financial substitutes for car allowances, car pooling/sharing provisions can be encouraged, and company cars can be limited to journeys beyond public transport only1 or employees can be rewarded green points through an accrued point system for using alternative transportation. They can then redeem these points for example for onsite massages, company merchandise, gift cards to local shops or public transportation passes. Organizations can also place financial incentives into their reward strategies, as tax incentives or for embracing energy efficient cars like the Bank of America does for employees who purchase hybrid cars or Google that provides cash to buy cars that get aggressive mileage. Incentives can also be provided to employees who carry green behaviors at home for example using water solar heaters at home, downsizing the family car, personally recycling, increasing home energy efficiency etc. Exit Interviews: Environmentally unfriendly behavior may constitute breach of contract and possible ground for dismissal. In terms of employee exits, where dismissal occurs, it may be that any ‘general debriefing should include an environmental dimension, and if employee resigns, then HR managers need to discover why or that whistle-blowing green employees (who highlight bad practices), are seen as at risk, as there is no legal protection for them, meaning that they could be dismissed for breach of confidentiality. In short following steps should be taken to strengthen green HR practices: • To conduct exit interviews to gauge employee’s perceptions on organizations green practices. • To provide legal protection for green whistle-blowers The HR Role: It has been observed in general that the personal values that employees demonstrate to EM have not been exploited fully towards achieving corporate environmental initiatives, even though they look to have positive effects for managers. Indeed, many organizations are adopting an integrated approach to implement environment management programmes. But achieving this integration of HR and environment management involves importantly changing the approach of some HR staff themselves to green issues as well as changing the unsustainable practices that all levels of staff may have learned over decades. A key role for HR environmental executives could be to guide line managers in terms of gaining full staff co-operation towards implementing environmental policies which means HR needs to nurture supporters and create networks of problem-solvers willing to act to change the current status quo. This can only take place if the company establishes formal and informal communication networks with their employees highlighting the company’s green efforts for example in the company newsletter and website. Some other ways could be to share research, model green behavior, working with internal marketing staff to circulate informational and inspirational articles, columns and other materials to employees on a regular basis. HR foci as knowledge management, employee involvement, employee participation, employment screening, training, redundancy, reducing status differentials, and management style can be integrated together to produce environmental improvements for the firm. In addition, HR can generate an environmental report that includes a policy statement, targets, progress measures, overall impact which will encourage line managers and employees to take pride in sustainability initiatives. The Human resource department of organizations has the ability to play an important role in the design of their organization’s sustainability culture.

Some latest developments in the field of Green Green HR policies focus on collective and individual capabilities to bring about green behaviour. Such policies aimed at developing an environmental corporate culture. It has been seen that environmentally relevant behavior can be practiced by the employees in working life and private life. Hence, Green HRM focuses on employee’s environmental behavior in the company, which in turn, employees can carry on such pattern of consumption in their private life. (Viola Muster and Ulf Schrader, 2011)

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Sources: Viola Muster and Ulf Schrader (2011)

Environmental Attitudes and Behaviour as Composition of Experiences Gained in Working Life and Private Life Suhaimi (2011) proposed a strategic model of green human resource management that contributes to the implementation of Environment Management System (EMS), green intellectual capital (IC) and corporate environmental citizenship (CEC). Thus this study says that assessment based HR interventions will contribute to the effective implementation of EMS and the development of green Intellectual capital (GIC) and in-turn contributes to the achievement of corporate environmental citizenship (CEC). The concept of CEC has been defined as “all of the precautions and policies corporations need to implement in order to reduce the dangers that they give to the environment” Gurlek and Tuna (2011) studied the relationship among green organizational culture, green innovation and competitive advantage. The results indicate that green organizational culture has a positive effect on green innovation and competitive advantage. Accordingly, green organizational culture is an important determinant for green innovation and competitive advantage. In addition, green innovation acted as a full mediator of the effects of green organizational culture on competitive advantage. Specifically, green organizational culture predicted green innovation, which in turn predicted competitive advantage.

HR Green initiatives taken by various organizations In the year 2013 HCL won the Asia-Pacific Enterprise Leadership Award (APELA). This award recognizes and honors the achievements of companies in the areas of sustainable development and corporate responsibility. HCL runs a multi-layered corporate program “Go Green” to drive its sustainability initiatives. It has green processes across facilities & in the areas of travel, IT and events. The company commits to compliance with ISO 14001 standards. It runs campaigns to initiate individual action towards environmental issues.HCL views Green initiatives enterprise wide and understands that Green goals can be set oat an organization strategy level and then top down approach could be adopted for its implementation, which would create green business processes and Green workplace for employees. Recently HCL has been honored with the ‘Global Sustainability Leadership Awards 2014’ under the category ‘Best Community Action’ at the World CSR Congress. The award recognizes Best Practices & Outstanding Individuals engaged in Corporate & Social Responsibility.

Chapter 6: Green HR- An Initiative towards Environment Sustainability 41

Green Data Center at HCL HCL follows a three phased methodology to provide Green DC solutions that are cost effective, lend sustainability to business operations, and ensure a healthy bottom-line. The first phase is the Assessment Phase. In this phase a baseline of energy usage and carbon footprint of the current environment using HCL’s assessment framework (Green IT Scorecard) is developed. This baseline is used to audit the existing environment. This is followed by Gap analysis and Feasibility study to identify transformational activities, perform impact analysis and assess cost structure. The second phase is Planning and Design Phase. In this phase a detailed roadmap for specific Green IT initiatives like procurement, DC optimization, recycling, financial and resource planning is developed. Finally in the Implementation Phase, specific technologies for Datacenter consolidation, virtualization, power and cooling management, IT infrastructure management are implemented. This phase would also involve initiatives that would enable an enterprise to get LEED certificate. The LEED certification endorses the Green Data center of HCL Info-systems, having demonstrated performance in site sustainability, water and energy efficiency, material and resource reuse, Indoor Environmental Quality, Design Innovation and many other parameters.

HCL’s E-Waste Management Initiatives HCL has adopted diverse initiatives to reduce operational impact on the environment. These include various energy saving initiatives at their offices, IT infrastructure, efficiency improvement, environmental practices at manufacturing plants and green products and services for customers. HCL has also started the “Green Bag Campaign”.

Internal Waste Management at HCL HCL Eco-Safe programme emphasis on reuse and recycling internal waste - ‘Internal Waste Management’. The internal waste management system focus on recovery, reuse and recycling of waste generated from within the organization.

HCL-Green Belt Creation HCL has organized a Go-green campaign across the country where HCL employees across India have planted trees.

Employee Involvement in Green Management Initiatives at HCL HCLs’ Responsible Operations Strategy provides safe and comfortable work-environment for employees, water and indoor air quality, waste disposal from the facilities, reduction in employee travel and preventive health-care for employees. At HCL employees are empowered to provide ideas, run campaigns and implement actions to conserve natural resources. An example of employee-managed annual campaign for environment protection is the annual ‘Earth Hour’. On this day, all employees resort to minimal lighting both, in the offices and at their homes.

Green initiatives by ITC • • • • • • • • • •

Only company to be carbon, water and solid waste recycling positive in the world More than 40% of the energy consumption is from renewable sources. ITC Hotels- Greenest luxury hotel chain in the world. Creating over 5 million sustainable livelihoods. An exemplar in Triple Bottom Line. Watershed Development initiative brings precious water to more than 116,000 hectares of moisture stressed areas. Social and Farm forestry initiative has greened over 142,000 hectares. Ethos of ITC Gardenia-‘Forward to Green, Back to Nature’. ‘WOW’- Wealth out of Waste- encourages recycling in schools, offices and homes. ITC PSPD (Paperboards and Speciality Papers Division) inaugurates a new 60,000 sq./ft. QSC (Quick Service Centre) in Talegon which reduces lead time of 2-3 days with additional turnover, thereby doubling the capacity to supply. • Launched “Paperkraft Premium Business Paper,” a multipurpose green paper which is created with the “Ozone Treated Elemental Chlorine Free Technology” for the first time in India. This has helped to drastically reduce the volume and toxicity of effluent discharged, as well reduce the consumption of certain chemicals in the process.

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• First mill to adopt ECF (Elemental Chlorine Free) technology for the bleaching process, ahead of legislation. • The use of Super batch digesters has helped to reduce specific power consumption from 35kWh/BD MT to 25kWh/ BD MT, while reducing MP steam consumed from 1480 kg/BD MT of pulp to less than half of this.

Green initiatives by ONGC • Receives ‘Greenies Eco Award’ for green initiatives and practicing best policies for environment protection amongst PSUs. • A comprehensive GHG accounting exercise to assess overall carbon footprint of the organization and help identify mitigation opportunities. • National Gas STAR Program to promote development, implementation and reporting of profitable, voluntary methane emission mitigation activities. • Sustainable water management strategy aiming at reduction in specific fresh water consumption and reporting on water footprint based on internationally recognized standards and practices. • Global Reporting Initiatives (GRI-G3) to assure sustainability reports to improve overall engagement with stakeholders, be accountable for triple bottom line performance and help improve the same. • ONGC Energy Centre (OEC) conducts research on marketable solutions in renewable and alternate energy sources beyond hydrocarbons. • Development of Green Building with due compliance with GRIHA compliance which ensures to save 50-60% energy and 30% water; harvest 100% rainwater and discharge zero sewage. • Developed Safety Management system based on OHSAS 18001 to identify all hazards and associated risks with emergency preparedness campaign like ‘HUMSAFE’.

Conclusion It is concluded that the social and environmental consciousness emphasized by the organizations and the new millennial workforce have promoted initiatives in various HR processes (from recruitment to exit) to achieve sustainability. These environment-friendly HR initiatives result in greater efficiencies, lower costs and better employee engagement and retention which in turn helps to build competitive advantage by reducing carbon footprints, preserving natural resources and exploring alternate resources. These Green HRM initiatives have become a pre-requisite for the organization’s long term sustainability.

References 1. Gill. M. (2012). Green HRM: People Management Commitment. Research Journal of Recent Sciences, 244-252. 2. Shaikh, M. W. (n.d.). Green HRM, a requirement of 21st century. Abhinav Journal Of Reasearch in Commerce & Management, 122-127. 3. and, (2017). Impact of green HRM practices on organization sustainability and. International Journal for Innovative Research in Multidisciplinary Field, 152-156. 4. Sharma. R. and Gupta. N. Green HRM: An innovative approach to environment sustainability, Twelfth AIMS International Conference on Management, 825-830. 5. Rani.S abd Mishra.K. (2014). Green HRM: Practices and strategic implementation in the organizations, International journal on recent and recent innovation trends in computing and communication, 2(11), 3633-369. 6. Kumari.P. (2011). Green HRM: Issues and challenges, GRA-Global Research Analysis, 1(5), 80-83. 7. Nijhawan.G. (2014). Green HRM: A requirement for sustainable organization, PARIPEX, Indian journal of research, 3 (10), 69-70. 8. Douglas R., Tom R. and Stuart M. (2008). Green HRM: A review, process model, and research agenda, Discussion paper No 2008.01. 9. Dutta.S. (2012). Greening people: Strategic Dimension, Zenith international journal of business economics & management research, 2(2), 143-148. 10. Sudin.S. (2011). Strategic Green HRM: A proposed model that supports corporate environment citizenship, International conference on sociality and economic development IPERD, Vol 10, 79-83.

Chapter 7 Global Management Parmod Kumar* and Nikita Sharma**

Global Business Management is a term which refers to managing business in a Global environment with respect to Marketing, Sales, Finances or Human Resource on a Global platform. The advancement in technology has given many companies the opportunity to expand their business globally. Global management assists in combining knowledge with culture, tradition and other practices which can help companies establish their business internationally. The chapter aims at explaining the concept of Global business, business strategies, roles and responsibilities of a Global Manager.

Introduction Global Management broadly deals with the techniques and practices that are involved in directing and controlling multinational organizations. In every business organization the strategies and the management practices are co related therefore the concept of global management covers all the issues that arise as a consequence of global business practices. For example: • Vistara - Indian corporate TATA Sons has a JV with Singapore Airlines. • Bharti AXA is a JV between Indian giant Bharti Enterprises and insurance major from France, AXA. • Mahindra Renault Ltd founded in 2007 is another example of a joint venture between India’s largest automobile manufacturer Mahindra & Mahindra and world renowned vehicle maker of France, Renault SA. All these joint ventures stated above highlight the significance of the careful global business management for the operations to run effectively.

Perspectives of Global management There are different functions of the organization like-marketing, operations, human resources, finance and other support activities like research and development and legal compliances. From an international perspective, each of these functional areas will have more complex issues at an international front. Therefore global management involves in depth analysis of these issues and resolving the complexities of the management in international ventures.

Multinational Enterprises (MNEs) A multinational corporation is a company with headquarters in one country but they operate in many countries. A multinational firm influences the pattern of world trade in a very powerful way. *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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Multinational enterprises (MNEs) play a leading role in technological innovation, R&D investment and patenting. MNEs serve various markets and their size therefore they often reap the benefits from economies of scale and scope. MNEs have a stronger financial capacity and potential to invest in innovation technology including risky innovation projects. They are in a better position than small and local firms to attract talent, acquire sophisticated equipment, adopt comprehensive technology management tools, and build innovation networks with suppliers, customers, strategic partners, universities, and public research institutes.

Need to focus on MNEs Multinational organizations are responsible for 50% of the world trade therefore it can be clearly stated that the importance of global management in the business corporate cannot be ignored. World’s leading commercial banks are responsible for most of the world’s finance and cash flow in order to provide a robust system of economic development and international growth. Global management also provides an opportunity to the small business enterprises to grow from a domestic front to an international front. It paves way for the corporations with unique business ideas to thrive in the dynamic business environment. Example: Facebook.

Effects of MNCs: Multinationals are often seen locating from one country to another creating a problem of increased competition which further creates balance of payments problems and leads to undue concentration of economic and political power domestic and internationally. Advocates argue that they often increase competition, accelerate the transfer of financial capital and modern technology and help promote free multi-lateral trade.

Competition: Multinational corporations ‘shake up’ sleepy domestic competitors, forcing them to try harder when they can no longer hide behind a protective tariff veil. MNEs often buy out local competition or in other cases they completely make them incapable to handle the potential threats arising due to increased competition. In some cases multinationals increase competition and sometimes they reduce it.

Transfer of Technology: Developing countries like India often argue that the technological transfer does not spill over to other industries for maximum benefit. MNEs which are generally from developed industrial countries do not put any effort to adapt technology to the resources available domestically in order to reduce the complexities in operations. MNEs often speed up flows of technology between countries by using various processes, techniques and methods that the firm would not share with a competitor but will make available to its own subsidiaries to grab a possible business opportunity.

Global Strategies Global Strategy is a strategy which is adopted by the company to define its plans for achieving its objectives, improving its financial position and strengthening its performance. On the basis of the type of operations performed by the companies, strategies can be categorized into three types. 1. International Strategies 2. Multinational Strategies 3. Global Strategies International Strategies: If the main focus of the company is the home market then the strategies that are prepared outside the limit of home market will be seen as international strategies. For Example if a company mainly deals in making and selling of cold drinks within the boundaries of a country then the strategies prepared for selling its excess supplies outside the country will be seen as International Strategies.

Chapter 7: Global Management45 Multinational Strategies: When a company entered into various markets, then it needs different strategies for different markets. Together these Strategies are known as Multinational Strategies. For Example if a car manufacturer sells his cars in different countries then the price, specification and other requirement will be according to the needs of the customers residing in those countries to have competitive Edge over others. Global Strategies: When one organization treats the whole world as one market and supply of products done with little variation. Competitive Edge is taken globally. Such strategies are known as Global Strategies.

Significance of Global Business Management In a dynamic business environment when world is becoming more connected, it’s very critical than for global organizations to recruit, develop, and retain leaders who can navigate the myriad opportunities and challenges their companies face. Management often focuses on recruiting multicultural leaders who are experts in the domestic markets and can adequately adapt themselves to the culture of the foreign entities. The best example that can be stated in the above context would be of KFC. KFC has grabbed a 40 percent share of the Chinese fast-food market by building a strong network of domestic management and local linkages that enabled the company to tailor its fast food products according to local tastes.

Benefits Senior management teams give have a fair idea of the cultures of MNEs and therefore they provide global company a competitive advantage over the other corporate enterprises. Following points highlight the benefits of global management in MNEs: • Geographical Advantages: Management executives know the geographic area and the culture of the region which helps in identifying the potential areas which could be used to establish and develop the operational areas of the MNEs. It also helps to identify the target customers in a region to execute the business activities. • Reduced turnover and absenteeism: Multicultural management helps in eliminating the possibilities of employee turnover and absenteeism. Management teams take up various activities in order to bridge the gap between the diverse workforce and helps in establishing strong work teams. • Flexibility in management: Due to a flexible approach in managing the operations worldwide MNEs end up attracting the best candidates and greater marketing capability. Multicultural leadership is often viewed as more flexible and less biased due to its senior management team’s divergent approach, which stems from the understanding and incorporation of the different cultures by all the team members in an organization.

Global Manager Global Manager is the one who has the capability to manage the complexities of the business across the globe. A global Manger has multi-dimensional skills such as technical, HR and Soft skills in order to organize analyze and motivate people.

Role of Global Managers Global business managers play a pivotal role in the functioning of multinational organizations. They identify the complexities in the functioning of the organizations and take crucial steps in reducing these complexities. Global business managers have certain critical roles that help in the management of the organizations. The following points highlight the role of global business managers in detail:

Diversity Management Diversity management is a very challenging task for any manager. An organization comprises of cultural differences that create substantial obstacles to effective teamwork in an organization which often results in generating

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miscommunication and conflicts. Empathizing with employees of diverse cultural backgrounds is very crucial for the multicultural managers. For example, multicultural managers are very flexible in relocating from one location to another, thus helping other immigrant employees in adjusting in the new environment.

Equity Principle of equity plays a significant role the management of the workforce. Global managers often follow various policies of establishing equity in the organization, one of them being promoting the employees of various backgrounds to top management in order to send a message of cultural harmony, cooperation, trust and unity to all the employees in the organization and to the ones who might look out for the opportunity to work there in future. It also highlights that the company encourages promotions based on merit, irrespective of ethnicity or race. Promoting a culture of mutual respect and ethnic tolerance helps in attracting potential employees in the organization and helps in smooth functioning of the organization

Leadership Global managers are very flexible, dynamic, and tolerant in their approach towards managing the organization. This helps in projecting a positive image about the organization on a global front. Their main role is in understanding different cultures and bridging the differences in these cultures so as to establish a feeling of mutual trust and companionship among the workforce.

Competitive Advantage Global managers introduce creative insights and practices in MNEs which helps in gaining competitive advantage as they end up attracting multicultural customers to simulate growth and productivity. Former linkages of global managers with their clients, suppliers and subcontractors helps in gaining access to world markets. These linkages also help in expansion activities due to the understanding of the counterparts’ different cultures.

Talent Talent till date proves to be a powerful sustainable competitive advantage tool used by the global managers as it is ingrained capability of the employees of the organizations and it cannot always be bought easily by the competitors. Multicultural leaders bring in new competence, skills and methods which allows them to work efficiently in crosscultural situations. Having worked abroad global managers understand the cultural sensitivity and implications of cross boundary engagements better than the managers who have not worked in a multicultural environment.

Challenges in Global Business Management In a dynamic business environment there are many business challenges that are faced by the MNEs on a global front. A global business manager is has to be proactive in his approach to minimize the threats and to grab the potential business opportunities in order to thrive globally. Knowledge, technology and innovation pose a potential challenge in everyday working of the organization. These challenges are discussed as below:

Knowledge “Knowledge is a fluid mix of framed experience, values, contextual information and expert insight that provides a framework of evaluating and incorporating new experiences and information.”- Davenport and Prusack. It is stated that the most useful knowledge is the most difficult to understand, replicate and codify as it is the knowledge that delivers and extracts the sustainable competitive advantage. It is a challenge to extract the most useful information and to collect and share such knowledge on a global front. Now a day with the advent of ICT knowledge

Chapter 7: Global Management47 is available in just a click of the button but the real challenge lies in understanding the most authentic information and putting it to use in the most efficient manner so as to gain a competitive edge. Knowledge is of two types: Tacit knowledge- This kind of knowledge is often difficult to specify and often difficult to understand as it is unrecorded and very complex. Explicit knowledge- This kind of knowledge is comparatively easier as it can be easily collected, analyzed, precisely defined and easily written down. Tacit knowledge is difficult to communicate globally due to this reason MNEs have set up internal company structures like intranets to accomplish this task.

Technology “Technology is a perishable resource comprising knowledge, skills and means for using and controlling factors of production for the purpose of producing, delivering to users and maintaining goods and services for which there is an economic and/or social demand.”- Robock and Simmonds

Main technology challenges include: • Foreign technology acquisitions: Developing or buying joint technology with companies with whom they do not compete directly. • Maintaining technology advantage: the biggest challenge faced by the companies is to rapidly advance in the field of technology to avoid the risk of being overtaken by other MNEs. • Research and development: It is crucial for MNEs to locate R&D facilities outside the home country where other countries have a technology edge. • Growth of ICT: With rapid growth in information & communication technology to be utilized for strategic development, companies these days are investing more and more in ICT in order to attain sustainable development. • Government attitude: The attitude of the foreign host governments influences a great deal in the strategies adopted by the MNEs. Some of these strategies adopted by the governments are discussed below: a) Putting a limit on certain product sectors to domestic ownership. b) More and more encouragement to home technology development. c) Putting a restrictive clause on the companies which indulge in foreign technology transfer. d) Limiting the amount of inward technology investment by the companies. e) Deciding the T&C in foreign technology transfer. f) Specifying the standards of the performance for the companies.

Innovation “Turning an idea into a solution that adds value from a customer’s perspective”

- Nick Skillicorn

The word innovation originally comes from Latin word ‘innovare’ which means “to make something new”. The U.K. department of trade and industry has stated a definition of innovation as “the successful exploitation of new ideas”. Innovation basically involves generation and exploration of new ideas. Innovation is the prime restructuring process in any organization because it helps an organization to grow. In a dynamic business environment it should aim at offering new services to its stakeholders in order to manage its operations. Management of information is one the key strategic aspects followed by the organizations in order to stay in the market. MNEs now days are exploring different factors in order to mould the ideas into successful outputs, these arescanning the economic environment, selection of key resources, selecting the most economical option, implementing the new ideas in order to ensure success till the final presentation of the consumables in the market. Innovation

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management is about finding the most apt solution for the difficulties of the MNEs and managing the whole process of innovation. Innovation management and planning is not an easy task to accomplish as it involves a lot of effort on the part of the management to sustain the business in the market. Thus organizations need to thrive for the development and implementation of new strategies in order to meet emerging challenges. Some of these challenges are discussed below in detail-

What is the need to change? Macroeconomic environment is very dynamic these days and the only certainty which remains is that change is bound to take place. If an organization does not put any efforts to research and innovate then they might lose themselves in the competition. Change helps the MNEs to stay in the market for a long term and helps them in attracting new clients. Adopting latest technology and redesigning the existing products helps the organization to add the element of innovation in their products. They can do this by redesigning products, making different processes to execute the operations or exploring new markets.

What is to be changed? Framing an appropriate innovation agenda after finding the need to innovate is the next biggest challenge for the firms. After choosing a feasible agenda an attempt is made for continuous and radical improvement to ensure success.

Understanding the intricacies of innovation The process of innovation is very crucial for the organization as it focuses on adding value to the customers in the best possible manner. In order to retain the existing clients and to attract new customers the innovation process highlights the most crucial task that is faced by the top management these days. Therefore understanding the latest inventions and how they can be resourceful for the MNEs to innovate the products is very important.

Building a culture of innovation Building a culture to incorporate new innovation in an organization is not an easy task and it demands an immense effort from the research and development team. Repetitions, reinforcement of the patterns of behavior - which define a specific approach to the problem, are very crucial for building the culture of innovation.

Continuous learning approach Learning is a never ending process at it aims at continuous development of the organization. Team building, continuous developmental operations, training exercises, brain storming activities, inter departmental work teams help an organization to take up a proactive approach in the process of innovation.

High involvement innovation Innovation has traditionally been the area of the specialist who often works apart from the mainstream organization’s operations and focuses on new ideas and developments. Innovation is primarily about problem-solving in such a way so that the new opportunities are explored in the best possible way. Government regulations and the threats that pose as a significant challenge for the MNEs cannot be ignored. Therefore in order to face the competitive challenges and threats of the environment the MNEs should focus on high involvement in innovation.

Managing inter-organizational networks Inter-organizational connections are emerging as new concerns of significant interest amongst the MNEs. It is very crucial for the organization to have strong connections of network communications within an organization in order to disseminate the innovation in each and every corner of the organization. There are certain methods which solve the

Chapter 7: Global Management49 trouble of inter organizational connections and establish thinking relationships, these are virtual enterprises, boundaryless organizations and networked companies.

References 1. Cohen, S.L. (2010). Effective global leadership requires a global mindset, Industrial and Commercial Training, 42(1): 3-10. ISSN: 0019-7858. 2. Kalkan, V.D. (2008). An overall view of knowledge management challenges for global business, Business Process Management Journal, 14(3): 390-400. ISSN: 1463-7154. 3. http://www.global-strategy.net/what-is-global-management/ 4. http://www.indianmba.com/Articles_on_Management/AOM26/aom26.html 5. http://www.global-strategy.net/what-is-global-management/

Chapter 8 Stock Exchanges and its Recent Developments Geetika Madaan*

The stock exchange serves as an important institution for the development of capital market of any country. Therefore, working of each stock exchange must assuage very strict international specifications. The advancement of these exchanges is notably difficult in countries in transition, because of reinforcement of economic and legal changes, inadequacy of technical and financial resources, dearth of experience and knowledge in the area of the capital market business, etc. In recent 1990s, the process of economic liberalization was started and brought fundamental changes in the operations of Indian stock market. Rising globalization, economic liberalization, and foreign institutional investments made the Indian stock exchanges vying and influential in their operations. Growth and implementation of the stock exchange represent as responsible and difficult assignments, the realization of which require key financial resources, as well as human and technical resources. Lack of material, staff and technical resources were the major determinants that persuaded many countries that were go through a period of transition to take over the stock exchange information systems of countries with developed market economies. Hence, it is imperative to study the functions and structure of Indian stock exchanges and its recent development.

Introduction In the last few years, Indian Capital Market has go through a tremendous transformation. Each segment of Indian Capital Market whether it is primary markets, secondary markets, derivatives, institutional investment and market intermediation all has witnessed significant impact of these transition. In recent times, markets are being recognized as one of the most clear, effective and orderly markets. Academicians, policy formulators, practitioners and investors test the degree of competitiveness of the market using numerous techniques and instruments. Stock exchanges are an integral element of the financial markets of all types of economies. They are the big houses of capital and stronghold of finance. Stock exchanges are the podium of trading in securities and they expedite and control the buying and selling of stocks. Securities and Exchange Board of India has described stock exchanges as, “an association of body of individuals whether incorporated or not, established for the purpose of facilitating, regulating and controlling business in buying, selling and dealing in securities.” Precisely, a stock exchange comprises a platform where shares are traded that is circulated by the public limited companies, central and state governments, public bodies and joint stock companies. Bombay stock exchange was the first organized stock exchange in India and was established in 1875 with the genesis of the ‘Native Share and stock Broker’s Association’. Hence, the Bombay stock exchange is the initial one in the country.

Review of Literature Over the past few years, the Indian capital market has changed tremendously. Transformations have also been witnessed in government regulations and technology. The attitude, expectations and perception of the investors are also changing. There is only one determinant that is ‘risk’ that has not yet changed and still involved in all types of securities. For both large scale and small-scale investors, managing the risk is emerging as an important determinant. Among academicians and capital market operators, risk management of investing in corporate securities is under comprehensive discussion. *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

Chapter 8: Stock Exchanges and its Recent Developments51 For this, various mutual fund companies in India have conducted various studies on the ‘risk element’ of investing in corporate securities. Grewal and Grewall (1984) also disclosed some basic investment rules on selling stocks that also help in managing risk. Researchers made the investors cautious for not buying unlisted stocks, as Stock Exchanges do not permit trading in unlisted stocks. Further, another rule that researchers specify is not to buy inactive stocks i.e. stocks in which transactions take place infrequently. Key logic why stocks are inactive is due to unavailability of buyers for those stocks (Yartey, 2008). Inactive stocks are mainly stocks of those companies that are not doing well. Lastly, researchers also identified not to buy stocks in closely-held companies reason for not buying these stocks is that, these stocks tend to be inactive than those of widely held ones because they have a fewer number of shareholders. Researchers also disclosed that not to hold the shares for a long period of time, expecting a high price, but to sell whenever one earns an acceptable return. Researchers indicated that the significance of the rate of return in investments and reviewed the possibility of bad debts and bankruptcy risks (Francis, 1986). Researcher suggested that in an uncertain world, investors couldn’t predict appropriately what rate of return an investment will gain (Shleifer et. al., 2006). Further, he disclosed that the investors could formulate a probability distribution of the expected rates of return. Researchers also suggested that an investor who purchases corporate securities must face the possibility of bad debts and bankruptcy by the issuer. Financial analysts can predict the bankruptcy. Researchers also further indicated some easily notable warnings of a failure of firm, which could be anticipated by the investors to avoid such a risk. Preethi Singh (1986) revealed some fundamental principles for selecting the company to invest in stocks. She found that understanding and measuring return and risk is basic to the investment process. As per researcher, most investors are ‘risk averse’. To attain maximum return, the investor has to confront greater risks. She also revealed that risk is fundamental to the process of investment. Each investor should have an extensive understanding of the various drawbacks of investments. The investor should carefully analyze the financial statements with special reference to financial competence, Profitability, Earning per share, and capacity of the company. Scott and Edward (1990) conducted a study to analyze the integral risks of owning common stocks and the ways to minimize these risks. Researchers revealed and indicated that that the grimness of economic risk depends on how heavily a business depends on debt. Economic risk is comparatively easy to lessen if an investor sticks to the common stocks of companies that occupy small amounts of debt. The previous research studies have been mainly focused on the origin, speculation and promotion of stock exchanges. However, a review of these studies revealed there has been very little literature on the functioning, structure and recent development of stock exchanges.

Objectives • To study the structure of stock exchanges in India. • To study the functioning of stock exchanges in India. • To study the recent developments in Indian stock exchanges.

Research Methodology Data has been taken from secondary sources like books, research paper and articles related to stock market and intermediaries. Various books on stock markets have been referred for in depth study.

Functions of Stock Exchanges The stock market has occupied a key position in the Indian financial system. It includes various economic functions and provides valuable services to the retail investors, corporate, and to the whole financial agents. The various functions of stock exchanges in India are explained as below: (i) Liquidity and marketability of Securities: As per the decision of the investor, stock exchanges supply liquidity to companies and investors so that securities can be easily converted into cash at the listed prices (Yasaswy and Tzlrnnrotrrzd, 1993). Thus, Stock exchanges assist in buying and selling of securities at the listed prices. Stock exchanges assist buying and selling of securities at listed prices by initiating consistent marketability to the investors with regard to securities they hold or wish to hold. Therefore, they provide a ready podium for dealing in securities.

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(ii) Supply of long-term funds: The attributes of securities that are traded in the stock exchanges are negotiable and exchangeable in nature and they can be transferred from one party to another with minimum formalities. When security is transacted, ownership of securities also changed and long-term availability of funds are assured by corporate. (iii) Profitability: The profitability of any company is mirrored through stock prices. Relative profitability and performance of corporate showed by quoted prices. Funds likely to be intrigued towards securities of profitable companies and ensured uninterrupted flow of capital into profitable ventures. (iv) Protection of funds: Due to day-to-day operations of investors under stringent rules and regulations, stock exchanges provide protection of funds invested by the investors. Moreover, byelaws are formulated to ensure safety of funds of investors. Through carefully designed set of rules, over-trading, insider trading etc. are obviated. This would promote larger investment and bolster the investor’s confidence. (v) Helpful in improved performance: The prices listed in stock market mirrored the performance of a company. These prices are more intrigued to investors for investment in stocks. Stock exchanges provide podium for the price quotation for those stocks listed by stock exchanges itself (Rousseau and Wachtel, 2000). A company will be more attentive of its status in the market because of public disclosure and motivates as well to enhance the performance persistently. (vi) Capital formation: Stock Exchanges act as a medium between the savers and investors and therefore, foster investment through capital formation. But in order to achieve this objective of capital formation by the stock exchanges, surplus funds available with investors both individuals and institutions would have been utilized in productive and remunerative ventures and projects. (vii) Marketing of new issues: Companies evaluate their listing by concerned stock exchange authorities and this help companies promptly acceptable by the public for their new issues (Rubio, 2001). Due to this underwriting for issues would be less. Public response to such new issues would be almost high. Therefore, a stock exchange provides assistance in the marketing of new issues also. (viii) Miscellaneous functions: With different yields and maturity period, stock exchange provides securities of different kinds. Stock exchanges allow the investors to diversify their risks by different portfolio of investment. Stock exchanges also develop saving habits among the community and provides medium for capital formation. Stock exchanges suggests the investors in choosing stocks by providing the daily pricing of listed securities and by disclosing the trends of dealing on the stock exchange (Jain, 1992). Stock exchanges allow companies and the government to raise funds by providing a podium of ready market for their securities.

Management of Stock Exchanges in India The recognized stock exchanges are managed by, “Governing Board.” Securities and Exchange Board of India has governing board, which comprise of directors, public representatives and government nominees. Governing board also has powers to elect presidents and vice- presidents of stock exchanges and to approve the appointment of the Chief Executive and public representatives (Mandell, 1992). Stock exchanges managed by an apex authority’s chief executive director.

The extensive powers experienced by the governing boards of stock exchanges consist of: (a) Appointment of office bearers and setting up of committees like Listing Committee, Arbitration Committee, Defaulter committee, etc. (b) Certification and expulsion of members, (c) Management of the assets and finances of the exchange,

Chapter 8: Stock Exchanges and its Recent Developments53 (d) Constituting and interpretation of rules, byelaws etc. for the regulation of stock exchanges. (e) Settlement of disputes among members or outsiders. (f) Management of the day-to-day functioning of the exchange

Working Of Stock Exchanges and Its Intermediaries

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Explanation: Buyer-B of Broker-B purchases 500 shares of ITC from Broker-A at the same time Seller- A sells 500 shares of ITC to Broker B through Broker-A then following procedure take place B pays to Broker-B the amount due on the shares purchased by him. Broker-B pays the settlement amount to National Stock Exchange that is called funds pay in. National Stock exchange pays the amount to the seller Broker- A. After that, Seller broker- A pays the amount to seller –A which is known as funds pay out. Simultaneously seller-A delivers 500 ITC to Broker-A in his depository account that is known as shares pay in. After that, Broker-A delivers the shares to National Securities Depository Limited (NSDL) through his Depository Participant (DP). National Securities Depository Limited (NSDL) then gives the shares to broker-B. After that, Broker –B delivers the shares to Buyer-Which is known as shares payout.

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An investor who wants to hold his securities in electronic form he has to access a Depository Participant and through him open an account at NSDL. After getting Client Identification number from National Securities Depository Limited, client goes to a registered broker of National Stock Exchange/Bombay Stock Exchange for investing in securities. The client gives the order to the operator seating on the National Exchange for Automated Trading (NEAT software) for particular stock at a determined price when the bid matches on the screen the confirmation tag displays with the scrip International Securities Identification Number (ISIN number) for which he has to take the delivery and make the payment on T+2(Trading day plus two days) basis, if he does not make the payment it goes to auction market and he has to pay the penalty fees and charges and the auction price for the shares traded.

Membership of Stock Exchanges A person must have below mentioned qualification, to become a part of recognized stock exchange member: • • • • • •

A person should be a citizen of India, A person should be more than twenty one years of age, A person must not be declared bankrupt or insolvent, A person must not have been find guilty of any offence including fraud and dishonesty, A person should not be involved in any other business besides dealing in securities, A person should not be eliminated by any other stock exchanges or stated as a defaulter by any other stock exchange.

Methods of Trading In Stock Exchanges The stock exchange activities involved various stages before transaction completes. Those activities or stages are purely vocational in nature and no non-member is allowed to enter without higher authorities’ permission. Various stages involved in the trading of stock exchanges are as mentioned as follows: (i) Choice of a Broker: Investors who wants to sell his shares or potential investors who want to buy shares cannot enter into exchange and do transactions directly. They have to transact through intermediaries. Intermediaries can be brokers or reputed bankers. Therefore, it is an imperative to choose a broker that can be a good repute banker also. Intermediaries assure precise and quick implementation of transactions from the exchanges. Brokers or bankers assure implementation of transactions at best possible and profitable prices. Once selection of broker is done, next task is to open an account with broker. In this stage, it has to see whether broker will open an account of investor in brokerage house. Broker will check the financial position of the investor and its related formalities and if found satisfactory, broker will open the account. (ii) Order placement: Order placement is the second step that involve buying and selling of securities with the broker. During order placement, order is generally placed through telephone or in person (Gupta, 1992). The facility of telephone is used for communication of buy/sell orders to avoid delays. In order to reduce costs, short abbreviations are used that are “Buy 100 HDFC @ Rupees places orders for buy/sell. 862.” It means, it is an order for the purchase of 100 shares of HDFC Bank @Rupees. 862. (iii) At Best Order At best order consists of an order, which does not specify any prefixed price. This type of order must be performed immediately at a best possible price. Investors/trader may also fix specified time frame within which the order has to be executed. E.g. “Buy 100 L&T shares at best.” (iv) Immediate or cancel order Immediate or cancel order is an order executed for buying and selling of securities at the price specified by the client. If the order could not be performed at stated prices immediately, it should be treated as cancelled for example. “Buy 100 DSW @ 65 immediate.” (v) Limit Order Limit order is an order for purchase and sale of stocks at a prefixed price that is specified by the client. For example, “Sell 200 ABC Ltd. shares @ Rupees 1286.”

Chapter 8: Stock Exchanges and its Recent Developments55 (vi) Discretionary Order: Discretionary order is an order of buying and selling of shares at a price quoted by the broker himself/herself. This is an order to purchase or sale shares at whatever price the broker thinks reasonable. Such type of orders is only executed when a client has full trust on broker. (vii) Limited discretionary Order: Limited discretionary order is an order of buying and selling of securities within a specified mentioned price range and this is also executed at the discretion of the broker as per his/her best judgments and within a given time period. (viii) Open Order: Open order is a type of order in which buying and selling of securities is executed without fixing any specified time frame or price limit. Such type of orders is similar to discretionary orders. (ix) Stop Loss Order: Stop loss order is an order to save the securities as soon as price falls up to a specific level or purchase the securities when prices of shares rises up to a specific level. Such type of activity is executed mainly to assure the clients against a heavy down or up in prices so that they may not suffer more than the pre-specified amount (Jack, 1986). On receiving the orders, they are first recorded in a rough memo book and then they are transferred to the ‘Order Book.’ (x) Execution of orders: The Bombay Stock Exchange has introduced screen – based trading from March, 1995, called BOLT (BSE on Line Trading). This type of trading helps the clients to get the best offers and bids from the order book. If the price does match with buyer and seller price, the order will remain in the system for the whole day, until it gets executed. (xi) Formation of Contract Notes: Generally, the brokerage houses enter the particulars of the business that is transacted during a particular day through e-contract. These electronic contracts commonly known as e-contract, emailed on the same day after market hour and physical delivery of contracts at client’s address sends within two days from his/her order execution. (xii) Settlement of transactions: In stock exchanges, settlements are done on rolling basis that is no account period settlement. Every order will be given unique settlement date that will be mentioned upfront at the time of order entry and this process used as a matching parameter (Sarr and Lybek, 2002). It is important for trades to be settled on the predetermined settlement date. At present, settlement period ranges from T+1 to T+2. T+2 is done for equity shares and T+1 for derivatives product. (xiii) Clearing settlement: In this stage, transactions for clearing settlement are routed through clearing corporations. In routine, traded securities are regulated and cleared through clearing house. These routine transactions are known as the transactions for ‘the account.’ Prior approval from the exchange needs to be obtained in case of delay of settlement and also cancellation of trade. The exchange rooted arbitration mechanism for solving disputes arising from trades or settlements.

Recent Developments Some of the recent changes in the developments of stock exchanges in India are as following: (i) Management of intermediaries: Securities exchange board of India has exercised stringent control on stock exchanges to enhance the functioning of intermediaries in the capital market. The intermediaries registered with Securities Exchange Board of India are merchant bankers; brokers, sub-brokers, underwriters, bankers to the issue etc. It is suggested that the registration required renewal from time to time in spite of making it a constant one (Grewal, 1984). SEBI has authority to suspend stock exchanges after conducting an enquiry. In order to enhance stock exchange’s financial adequacy, capital adequacy criteria have been fixed.

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(ii) Demand of Quality Securities: For efficient and efficient working of a stock exchange, quality securities are absolutely vital. Attaining this fact, the SEBI has announced recently amended criteria for companies accessing the capital exchanges (Scott. and William, 1990). Participation of financial institutions in the capital is vital for entry into the capital market. These measures ensure that only quality securities into the market. (iii) Use of blocked amount (ASBA) facility in public issues and right issues: Securities and exchange board of India has launched the ASBA (Application Supported by Blocked Amount) facility as on July 30th 2008 to make the existing public facility more efficient This type of ASBA facility is made available to individual investors also. Application supported by blocked amount (ASBA) is an application that is used as a sanction to crossbar the application money in the bank account. This application is used for subscribing to an issue (Galindo and Mico, 2004). If an investor is doing trading through Application supported by blocked amount (ASBA), then his application money will be taken from bank account only. This will be executed only if investor application is selected for allotment. (iv) Change in the management composition: In the early years, the boards of stock exchanges were domineering by brokers whose decisions were not fair and transparent. But now SEBI requires that 50 percent of the directors must be non-brokers directors or government representatives (Bamodar, 1993). Moreover, it is essential that non- broker professional shall be appointed as the executive Director. (iv) Injunction of insider trading: Earlier, insiders because of their position in the company easily enter into manipulative dealings. These dealings are contrary to the interest of the public and available to the public on the basis of unpublished price conscious information (Randall, 1992). On the basis of any unpublished price sensitive information, an insider is prohibited from dealing on securities of any listed companies. Therefore, there is a prohibition on insider trading. Now, Securities Exchange Board of India has been established new regulation that is SEBI (Insider Trading) Amendment Regulations, 2002. This regulation has given more powers to SEBI to control insider trading. The definition of insider trading have been established SEBI more firmly and enforceable in a court of law. (v) Quarterly informing by Foreign Venture Capital Investors: All Foreign Venture Capital Investors operating in India have to submit quarterly reports to SEBI, with effect from 31st March 2010. Within seven days from the end of each calendar quarter, the reports need to be displayed in the SEBI portal. These measures can be seen as making the working of FVCI more transparent and in order. One of the prompt reason for the fastest recovery of markets in 2008-09 was timely regulations and policies introduced by SEBI. (vi) Prohibition of price rigging: More powers have been given to SEBI that comes under SEBI (Prohibition of fraudulent and unfair trade practices relating to security markets) regulations, 1995 to control price rigging. In reality, the SEBI exercised its authority in 1996 for the first time by declare show- cause notices to the various parties- brokers, clients, promoters, and involved in price rigging. In addition, certain procedural changes have been planned in the auction route to control price rigging. Therefore, all efforts are being taken to protect the interest of genuine investors (Ayling, 1986).

Conclusion In any country’s economy, economic development is reflected by the development of the Stock exchanges. Stock exchanges consists of a place where shares, debentures, bonds and derivative products are bought and sold either in the form of investment or in the form of speculation. Stock exchanges are a market where transactions related to secondary markets are bought and sold. In order to ensure smooth functioning of stock exchanges, Securities Exchange Board of India come up with various regulations time-to-time. During financial crisis, expeditious recovery of the market was possible because of orderly and controlled regulations of SEBI.

Chapter 8: Stock Exchanges and its Recent Developments57

References 1. Ayling, I.E. (1986). Internationalization of Stock Markets: The Trend towards Greater Foreign Borrowing and Investment. 2. Bailey, W., Mao, C.X. (2006). Stock Market Liberalization and the Information Environment. Journal of International Money and Finance, 25, 404-428. 3. Carter Randall. (1992). Non-stop winning on the stock market. Vision Books, New Delhi, Bombay. 4. David. L. Scott and William E. (1990). Understanding and Managing lnvestment risk and return. MC. Graw Hill Book Co. (U.K.) Ltd. 5. Galindo, A., Micco, A. (2004). Creditor Protection and Financial Markets: Empirical Evidence and Implications for Latin America. Federal Reserve Bank of Atlanta Economic Review, second quarter. 6. Grewal and Navjot G. (1984). Profitable investment in shares. Vision Books Pvt. Ltd. 7. Jack C.F. (1986). Investment - Analysis and Management. MC Graw Hill, International. 8. Lewis Mandell. (1992). Investments. Macmillan Publishing Company, New York. 9. L.C.Gupta. (1992). Stock Trading in India. Society for Capital Market Research and Development, Delhi. 10. La Porta, R., Lopez de Silanes, F., Shleifer, A. (2006), What Works in Securities Laws?. The Journal of Finance, 61(2), 1-32. 11. Nabhi Kumar Jain. (1992). How to earn from shares. Nabhi Publications, Delhi. 12. Preethi Singh. (1986). Investment Management. Himalaya Publishing. 13. Rousseau, P.L., Wachtel, P. (2000). Equity Markets and Growth: Cross-Country Evidence on Timing and Outcomes. Journal of Banking & Finance, 24, 1933-57. 14. Rubio, L. (2001). A Rule of Law Emerges in Mexico, Slowly. Wall Street Journal Eastern Edition. 15. Sunil Bamodar. (1993). An Introduction to Derivatives and Risk Management in Financial Markets. State Bank of India, Monthly Review, 32(8). 16. Sarr, A. and Lybek, T. (2002). Measuring Liquidity in Financial Markets. IMF Working Paper, WP/02/232. 17. Yasaswy.N.J., Tzlrnnrotrrzd. (1993). Stocks, Big Profits for Bold Bargain Hunters, Vision Books, New Delhi, Bombay. 18. Yartey, C.A. (2008). Financial Development, the Structure of Capital Markets and the Global Digital Divide. Information Economics and Policy, 20(2), 208-227.

Chapter 9 Indian Financial Market and Mutual Fund: A Review Annu Purthi*

The Mutual Fund Industry in India was begun with a modest start by setting up of Unit Trust of India by the Government of India in 1963. Despite the way that the improvement was direct, yet it stimulated from 1987 when there was the entrance non-UTI players into the business. The fundamental point of the UTI was to empower the normal financial specialists to take an interest in the flourishing of capital market through portfolio administration went for sensible return, liquidity and security and to add to India’s modern improvement by channelizing family unit reserve funds into corporate speculation”. In this chapter efforts have made to highlights the importance of mutual funds its classification.

Financial System: An Overview The monetary structure of an economy plays an intermediate part in connecting medially the seekers along with the suppliers in reference to money for productive act. The savers of money could invest in financial resources which are made public by the seekers of money. The view of the financial system relies on such variables as the character, number of financial resources, the volume of transaction of these assets etc. The capability of the working of financial operation of a country notably influences its economic growth. The close relationship in the midst of financial structure and economic development is emulated in the prevalent institutional arrangement delivery structure and intermediation operation. Thus the financial structure is at a glance the most important institutional and functional wagon for fiscal revolution. Financial system includes distinctive markets, organizations, instruments, administrations and components, whichever shape the generation of reserve, investment, money formation and its growth. Indian financial system has alleged radical change, facts innovations since 1991 due to fiscal reforms initiated by the government. With the onset of liberalization, privatization and globalization, the financial services sector has become more productive and vibrant. Many modernized methods of finance services and products, business and regulatory bodies have emerged to make the Indian capital Market more quick and strong to deal with the global demanding situations. Emergence of increasing role of Mutual Fund industry in financial intermediation is one such development following the structural reforms initiated in the Indian economy.

Elements of Financial System The financial system is the channel through which funds flow from one market participants to another. There are four important elements in the financial system of an economy. They are: Investors- who are investing their savings in various financial instruments viz, Shares, Debentures, Mutual Fund units, Govt. Securities etc. The investors attempt to acquire wealth, to vary or steady their consumption, or to transform the risks attached to their consumption or portfolios of resources. *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

Chapter 9: Indian Financial Market and Mutual Fund59 Institutions (Borrowers)- corporate bodies say Business Houses, Financial Institutions etc who are mobilizing capital by way of issuing various financial Instruments. Borrowers transact to gain investable funds, to consume or to alter the risks attached to their liabilities. Intermediaries- who act as conduits between the investors and institutions. Financial intermediaries earn a return by packaging financial assets for borrowers or lenders increasing the variety of securities directly available in the market. They can act as brokers by arranging deals between borrowers and lender. Regulatory bodies- which promote, regulate and monitor the functioning of financial markets. Rules that insure the smooth functioning of the markets are developed and enforced. In addition these agencies can develop markets for new types of securities. The efficiency of financial system may be determined depending upon the nature of relationship and functional integrity among these elements of financial system.

MUTUAL FUND The Mutual Fund Industry in India was begun with a modest start by setting up of Unit Trust of India by the Government of India in 1963. Despite the way that the improvement was direct, yet it stimulated from 1987 when there was the entrance non-UTI players into the business. The fundamental point of the UTI was to empower the normal financial specialists to take an interest in the flourishing of capital market through portfolio administration went for sensible return, liquidity and security and to add to India’s modern improvement by channelizing family unit reserve funds into corporate speculation”. In any case, the extension and effectiveness of common assets are affected by general monetary basics, the between connection between the money related and genuine division and the idea of improvement of the investment funds and capital markets, showcase structure, institutional courses of action and general approach administrations’. In the event that we think about this a sign in the present loan cost situation, Mutual Fund has sufficient rack space to develop into an industry like the managing an account industry in India”.

Definitions: • According to Bharti V. Pathak “A Mutual Fund is a Financial Service Organization that receives money from shareholders, invests it, earns return on it, attempts to make it grow and agrees to pay the shareholders. Cash on demand for the current value of his investment”

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• According to Jitendra Gala &Ankit Gala (Guide to Indian Mutual Fund), “Mutual fund is nothing but pooling of money collected from investors by issuing units to them and is invested in marketable securities according to the investment objective.” • According to Indian Institute of Banking & Finance, “A mutual fund is a type of financial intermediary that pools the funds of investors who seek the same general investment objective & invests them in number of different types of financial claims (e.g. equity shares, bonds, money market instruments)” List of basic characteristics which can simplify the process of fund selection from the mass list of all funds available to be taken into consideration, thus, making an investor’s choices more profitable. • • • •

Low Expenses Strong Fund Management Consistently Good Performance Consistent Investment Process

TYPES OF MUTUAL FUNDS There is a wide variety of Mutual Funds in India, which is classified based on investment objective, asset class, and structure.

On the basis of Structure: • Open-Ended Funds • Closed-Ended Funds Table 1: Type of Mutual Funds Open-Ended Funds

Close-Ended Funds

These are the basic funds available to the investors. Fund houses purchase and offer units of mutual funds from investors directly at prevalent Net Asset Value (NAV). These funds also provide option to investors to quit the funds anytime at prevalent NAV, which is real value of unit of mutual funds.

When New Fund Offer (NFO)gets closed, investors cannot purchase or offer their units directly with the mutual fund house. These units are listed and traded in stock exchanges like normal shares. They do not provide liquidity as trade volume is less.

On the basis of Investment Objectives: • • • •

Growth Funds Income Funds Liquid Funds Hybrid Funds

ADVANTAGES AND DISADVANTAGES OF MUTUAL FUNDS Following are the benefits offered by Mutual Funds• Professional Management- Mutual Fund Management involves continuous monitoring of different securities to manage investor’s hard earned money with their skills and experiences. Mutual funds are managed by knowledgeable, experienced Professional who analyze the performance of various corporations and invest in such a manner that they yield high return of their investment. • Diversification- Diversified investment makes up an intelligent investment by improving the risk- return profile of the portfolio. Thus chances are very low that stocks will decline altogether.

Chapter 9: Indian Financial Market and Mutual Fund61 Table 2: Basis of Investment Objectives Growth These schemes invest majority of investors money in equity stocks. The essential goal is riches creation or Funds capital appreciation. They can possibly create higher return and are best for long term investment. Examples would be• “Large Cap” stores which put overwhelmingly in organizations that run huge built up business • “Mid Cap” stores which put resources into medium sized organizations. • “Small Cap” subsidizes that put resources into little estimated organizations • “Multi Cap” subsidizes that put resources into a blend of substantial, mid and little estimated organizations. • “Sector” stores that put resources into organizations that are identified with one sort of business. For e.g. Innovation finances that put just in innovation organizations • “Thematic” stores that put resources into a typical topic. For e.g. Foundation finances that put resources into organizations that will profit by the development in the framework section. Income These schemes let you invest majorly in fixed income instruments, such as debentures, bonds and so forth. The Funds purpose of these is to provide regular income and capital assurance to their investors. Liquid Funds

In liquid funds, the money is majorly invested in short term and very short term instruments like Commercial Papers, Treasury Bills etc. with the whole motive to provide liquidity. These schemes have comparatively low risk factor and provide moderate returns of investment. These are viewed as perfect for investors having shortterm investment plans.

Hybrid Funds

These put resources into the both Equities and Fixed Income, along these lines which offers the best of both, Growth Potential and furthermore Income Generation. Examples would be • Child Plans • Aggressive Balanced Funds • Monthly Income Plans • Conservative Balanced Funds • Pension Plans

• Affordability- The transactions involved in mutual fund are generally extensive. The extensive volume enables investors to get advantage for low trading cost, when contrasted with the littler volume of all the transactions entered into by the sole investors. • Tax Deductions- Investors do not have to pay tax on all equity purchases after March 1,2003 if investment is done for the period of 1 year or above in capital gains. Investment in Mutual Fund also makes you eligible for the advantage of tax deduction. • Liquidity- Open ended funds make you eligible to withdraw your investment anytime you want either partially or fully. Thus Mutual Funds gives you comparably more liquidity than most of the other investments like shares, bonds and deposits. • Flexibility- Mutual funds highlights such as regular investment plan, consistent plans for withdrawal and dividend reinvesting plan. In the light of these highlights, one can efficiently contribute or pull back assets as indicated by one’s needs and comfort. • Regulations- All mutual funds are enlisted with SEBI and they function within the provisions of strict regulations intended to ensure protection of the interest of investors. SEBI regularly monitors the overall trading operations of mutual funds. Inspite of so many benefits, we investigate a portion of the downsides of mutual funds• Locked in Clause. There are two distinctive mutual fund structures - one enables you to go in and out whenever. The other one is locked in for few years. With this one on the off chance that you attempt to take your cash out prior, you’ll get charged for it. Thus it blocks the funds of the investor for a long period. • Fluctuating Returns- Mutual funds resemble numerous different investments without an ensured return. There is dependably the likelihood that the estimation of your mutual fund will deteriorate. Mutual funds experiences price fluctuations alongside the stocks which generally do not take place with fixed-income funds.

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• Past performance: Ratings and advertisements issued by companies are only an indicator of the past performance of a fund. It is important to note that robust past performance of funds does not guarantee of a similar performance in the future. • Fund Evaluation: Many investors may find it difficult to extensively research and evaluate the value of different funds. A net asset value (NAV) of mutual fund provides investors the value of portfolio of funds. However, investors have to study various parameters such as Sharpe ratio and standard deviation among others to ascertain how one fund has fared compared to another which can be complicated to some extent. Net Asset value (NAV): The execution of a specific plan of a Mutual Fund is shown by Net Asset Value (NAV). In basic words, NAV is the market estimation of the securities held by the plan. Common Funds put the cash gathered from speculators in securities markets. Since showcase estimation of securities changes each day, NAV of a plan in like manner varies on regular preface. The NAV per unit is the market estimation of securities of a plan parceled by the total number of units of the plan on a particular date.

Various types of risks that arise out of some schemes: • • • • • • •

Credit Risk Business Risk Market Risk Foreign Exchange Risk Liquidity Risk Price Risk Interest rate Risk

Not all risks impact all the fund schemes. The Scheme Information System helps understand which risks apply to your selected scheme.

So how does the fund management team manage these risks? It all depends on what type of investments the Mutual Fund has invested in. Certain securities are more sensitive to certain risks and some are exposed to some other. Professional help, diversification and SEBI’s regulations help mitigate risks in Mutual Funds.

Top 10 mutual fund schemes • • • • • • • • • •

Motilal Oswal Multicap 35 Fund SBI Bluechip Fund Mirae Asset Emerging Bluechip Fund L&T Tax Advantage Fund DSP Black Rock Equity Opportunities Fund ICICI Prudential Bluechip Fund ICICI Prudential Equity & Debt Fund L&T India Value Fund SBI Magnum MultiCap Fund Aditya Birla Sun Life Tax Relief 96

CONCLUSIONS Indian mutual fund has picked up lot of popularity from the previous couple of years. Prior just UTI delighted the monopoly in the industry. Yet with the progression of time, many new players entered the market and many new schemes of mutual funds were launched because of which the UTI monopoly breaks down, thus, industry faces a

Chapter 9: Indian Financial Market and Mutual Fund63 widespread competition. The researcher examined that the conduct of the Investor can be influenced by a large number by many of internal as well as external environment. The demographical factors play a major role in deciding investors’ behavior while investing in Mutual Fund.

References 1. Goetzmann, William N.; Rouwenhorst, K. Geert (2005). The Origins of Value: The Financial Innovations that Created Modern Capital Markets. (Oxford University Press,. 2. https://economictimes.indiatimes.com/mf/analysis/top-10-mutual-funds/articleshow/58822349.cms 3. https://www.nasdaq.com/investing/disadvantages-of-mutual-funds.stm 4. Pozen, Robert; Hamacher, Theresa (2015). The Fund Industry: How Your Money is Managed (2nd ed.). Hoboken, NJ: Wiley Finance. pp. 4-5. 5. Investopidia (2108). Retrieved from https://www.investopedia.com/terms/m/mutualfund.asp

Chapter 10 An Overview of GST in India Diksha Ahuja*

The Goods and Service Tax is widely known as GST which was initiate on 1st July, 2017. The GST consists of two constituents- CGST and SGST which means a twofold structure. GST is surmise to unravel tax administration, remove cascading effect and foster ‘Make in India.’ On leading Goods and service tax into implementation, it is a combination of Central and State tax into an isolated payoff. It will further raise the position of India in National as well as International market. This paper emphasizes on the background, description and execution of Goods and services Tax (GST) in India. The real success of GST depends upon the impact on the common Indian consumer. Single tax for whole India proves to be a crunch point and favorable for all in a supportive way. It is our belief that effect of GST will be positive for an Indian economy. Lastly the paper scrutinizes and draws out an interpretation.

Introduction GST is basically a consumption tax which stands for Goods and Services Tax levied by the Indian Government on sale of goods and service to supersede all indirect taxes. In India the idea of adopting GST was first given by the 10th Prime Minister of India (Atal Bihari Vajpayee). A task was then headed by the advisory of finance ministry and he indicated many issues to implement this system. In 2009 Pranab Mukherjee, announced the principal aspect of GST. In 2010 the government introduced sortie task for GST with a budget of Rs. 1133 crore. In 2011 congress party lays the constitution bill and progress it to the committee for an examination. In 2014 this constitution bill lapsed and in the same year Prime Minister Narendera Modis voted into power and our honorable Finance Minister Mr Arun Jaitley submits constitution bulletin in the Parliament of India. In 2015 the bill is not yet passed in Rajya Sabha. In 2016 ministry of finance releases the model law to the general public and take reviews then after making four amendments the bill was passed by Rajya Sabha. The GST Council finalized the GST rules and the rates that will be applicable from 1 July 2017. The government has proposed the tax structure under 4 slabs 5%, 12%, 18% & 28%. This indirect tax is levied at every stage in production process and refund to each party at the end by the final prospect. It would also strengthen the condition of India in both national and international market. This Tax succeeds other Indirect taxes like custom duty, entertainment tax, intra state sale of goods, value added and other taxes. It avoids the cascading effect which overall multiply the tax burden of end consumer. Simply with the implementation of GST it helps the Indian economy to develop in more efficient way by removing all the obstacles in between states and impose one tax instead of all other taxes. In India 3 types of GST is proposed including: CGST: It is known as central goods and service tax which is administer through single statue and paid in consideration of central government. SGST: it is known as state goods and service tax which is administer through multiple statues and paid in consideration of state government. *Assistant Professor, University School of Business, Chandigarh University, Mohali. E-mail: [email protected]

Chapter 10: An Overview of GST in India65 IGST: it is known as integrated goods and service tax which is administer through single statue and paid in consideration of central government. IGST=CGST+SGST

Objectives: 1. To emphasis on the working mechanism with implementation of GST in INDIA. 2. To improve the competition among the states by focusing on the consumption based tax. 3. To learn the footprints of GST ON INDIAN ECONOMY. 4. To make sure the elimination of tax on tax i.e. Cascading effect. 5. To classify the expediency and threats of GST.

Comparison of GST in India with other countries Country

Implementation(year)

CURRENT RATE (%)

INDIA

2017

0-28

CANADA

1991

5

SOUTH KOREA

1977

10

JAPAN

1989

10

AUSTRALIA

2000

10

GERMANY

1968

19

FRANCE

1954

19.6

SOUTH AFRICA

1991

14.0

SINGAPORE

1993

7

SWITZERLAND

1973

20

MALAYSIA

2015

6

GREECE

1987

23

CHINA

1994

17

NEW ZEALAND

1986

15

INDONESIA

1984

10

Source: GST – Global Scenario

Impact of GST on pricing of products as compared to current system To understand this more clearly here is an example Present Tax System: 1. Product sold from Punjab to Delhi cost is Rs. 2000 2. VAT is @ 10% = Rs. 200 3. Product sold from Delhi to Mumbai. Cost is Rs. 2200. 4. Profit = Rs. 1000. 5. Sell Price = Rs. 3200 6. CST @ 10% =Rs. 320 7. Total Cost of the product = Rs. 3520

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Proposed GST System: 1. Product sold from Punjab to Delhi cost Rs.2000 2. CGST is @ 5% = Rs. 100 & SGST is @ 5% = Rs100 3. Product sold from Delhi to Mumbai Cost Rs. 2200 4. Profit = Rs. 1000. 5. Sell Price = Rs. 3200 6. IGST=CGST-SGST I.E@ 10% =Rs. 220 7. Total Cost of the product = Rs. 3420 Here we can conclude in the above said example that it lowers the burden to the common man. Sales tax which is to be paid by them is within the bounds which can be claim against tax paid on sale beyond the bounds in GST system, which is not incorporate in our tax system. The commendation of CGST and SGST cannot be hostile to each other but consider for IGST.

Impact of GST on Indian economy: Here we are considering the positive as well as negative impact for the better understanding on the implications of GST

POSITIVE IMPACT of GST ON the Indian Economy 1. Removing of cascading affect from the country which overall decreases the costs of the products and enhance the business conditions in India. 2. This makes the country tax system transparent because of the availability of online tax system from registrations to the payment by which customers have easy access. 3. It includes the Uniformity of tax rates and structures which make this country tax even handed. 4. It decreases the burden of common man because it overall decreases the manufacturing cost which leads to fall in prices of the products. 5. it eliminates all other indirect taxes like vat, service tax etc which saves the pocket expenses of a consumer which help to boost the Indian economy in long run. 6. It helps the country to expand the Indian market to the international market because it removes all the custom duties on products. 7. GST is a key for National GDP in times of exigent comprehensive environment. Through this GST will improve India GDP growth by 0.9-1.7%.

Negative Impact of GST on the Indian Economy 1. All the luxury products like jewels branded items including clothes become expensive as per the GST structure. 2. AIR tickets also become expensive because GST rate increases from 9% to 18% in a new tax regime. 3. Service tax for Indian market is also on hike in a new tax regime from 15% to 18% which increases the cost for loans and insurances also. 4. The implementation cost for starting of the business is going to be increases for first few months. 5. It increases the cost for the multiple business entities because there is a seprate registration for each business. 6. As per the new tax regime some states have to shared their tax revenue with the central government which overall decreases their state revenues 7. With a undeviating tax structure areas which could dodge from excise duties previously will now have to pay taxes, which increases the cost of some commodities.

Chapter 10: An Overview of GST in India67

Overall impact of GST ON Indian Economy: 1. GST will abolish the custom duties that will applicable on exports which enhance the nation’s competitiveness in international markets because of lower costs. 2. GST is a key for increases national GDP by 0.9-1.7% in times of competitive environment. 3. It helps to establish India as a true common market through the pipeline of GST by avoiding the double taxation from India. 4. It will eliminate all other indirect taxes like excise tax, Value added tax etc and reframing the previous tax structure by single tax called GST 5. In the new tax regime all other indirect Taxes are excluded which will restructure the previous tax structure. 6. Through the Implementation of GST all the companies gets a chance to expand their business worldwide because of removal of all other indirect taxes which reduces the cost of the product. In this competitive environment the instigation of GST in India will be a very significant stride in the area of indirect tax structure in India. It is merging of all other indirect taxes into one tax. It is expected to abolish double taxation from INDIA and makes it convenient and easy for the manufacturers and consumers by the way of decreases in overall tax liability. It is translucent character which helps India to make their products competitive throughout the world.

References 1. 2. 3. 4.

http://www.gstindia.com/basics-of-gst-implementation-in-india/ Das Gupta S. The historic GST has become a reality, Article from Economic Times, 2017. A quick guide to India GST rates in Articles from The Economic Times, 2017. Indirect Taxes Committee, Institute of Chartered Accountants of India (ICAI) Goods and Services Tax (GST). 2015. Retrieved from: http://idtc.icai.org/download/Final-PPT-on-GSTICAI.pdf

Chapter 11 Digital Marketing Kritika Gupta*

Digital marketing is also known as online marketing or internet marketing. It is the use of electronic media to communicate the message to the target audience. Digital marketing has developed since 1990 and a tremendous change has occurred in the way the technology is used by business for their benefits. The term digital marketing has gained popularity all over the world. Digital marketing is becoming more important day by day as an efficient way of introducing the product to the consumers. It provides a platform to gain information as the people can now prefer to use digital devices than going to the vendors and the shops. The aim of digital marketing is to focus on customers and to let customers have knowledge about the product by the use of digital media. Digital marketing acts as a support technique for the marketing of the goods and the services by the effective use of the digital technology, specifically by the use of internet. It has been more than a century that the use of internet is done for commercial benefits. This has also led to the improvement in performance of the firms. Digital marketing technologies help customers to gain knowledge about the company and its product. The digital marketing technologies develop value by consumer’s feedback. Digital marketing is affected by consumer behaviour, social media, search engines customers choices and the competitors. The improved value of the firm by use of digital marketing can be accessed by the firms improved sales, profits and growth rate. Secondary data is used like journals, books and internet for the study. The main aim is to study the advantages of the digital marketing on the firm. The study emphasis various forms of digital marketing and their effectiveness in firms. The chapter also lays down the important elements of digital marketing for the customers. The main use of the digital marketing is to attract consumers and allow them be familiar with products with the use of digital media.

Introduction Digital marketing combines both the internet technologies, the Push and Pull internet technologies in order to implement the marketing campaigns. The digital marketing describes the marketing of the products and services by the use of digital channels. It is the process where the use of digital technologies is made to attain consumers and build consumers likings, popularize the brands, retain consumer and to improve the profits of the firm. The Internet and the World Wide Web has been in use since more than a decade for commercial use by the business organizations. In more than a decade the way in which business activities are performed has changed. There are many multinational corporations like Google, Facebook and Ola etc which are the key players in the today’s economy. Digital marketing helps in providing immediate reporting and feedback to the customers by making use the internet to both Push and Pull marketing strategy. The purpose of digital marketing is to develop the new customers and also improving retention of existing consumers. The good digital marketing campaign can be achieved in such a manner that the overall business goals, measures the results for every channel used and has suitable strategies for the same. The important points to be considered in digital marketing are: • To clear and decide the marketing goals. • Know about the desired customers. *Assistant professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

Chapter 11: Digital Marketing69 • • • •

Look for various digital channels available and appropriately implement the strategy. The strategy should be unique with tactics for each digital asset. It’s important to define the success through industry specific and relevant metrics. And finally, to know the area and accordingly benchmark the results against competitors.

Digital marketing is to promote products or services by using various forms of electronic media and to influence customer in such a manner that they start using digital channels for buying the product and services of the company. The use of digital marketing has spread to a large extend as compared with the other forms of marketing. Through the use of digital media, the consumers can easily use the details available on websites for their benefit at any place and at any time according to their requirement. The use of the digital media the customers know what the company says about its brands, by following the media and friends etc. digital marketing has a broader meaning that is, it refers to the various advertising tools and techniques used to reach the customers with the use of digital technologies. Digital marketing varies from traditional marketing, as traditional marketing makes use of channels and methods to understand the real scenario. So that the companies can analyze the campaigns well. The digital marketing has worked effective for the industries. With the help of digital marketing one can get much faster results than one could get through offline marketing. The integrative and interactive base in digital marketing strategies helps companies to expand their business in short period of time. The marketers try to bring brands closer to the customers in the everyday life. The dynamic role of the consumers nowadays has added value in providing significant importance to customer’s likes and preferences. It is noticed that the random change in technology plays an essential part in improving the standard of the product and services available to the customers by the use of one or more electronic media. The use of the E-marketing started with the introduction of telegraphs in the 19th century and became a dominant marketing force by use and acceptance of the telephone, radio, television, and then cable television, electronic media. The dominos uses the online channel to send the new information to make the brand name more popular and to maintain healthy relations with the customers. They have also built online communities for children, for example the Happy Meal website with the entertaining and educative plays for the customers to keep them satisfied with the services of the company. The social media marketing reduces the cost and help to reach many customers. It also involves less cost in comparison to the various other forms of marketing like face to face sales etc. The main benefit of digital marketing is to drive business growth.

Objectives The main objectives of this chapter are: 1. To discuss the elements of digital marketing. 2. To study the advantages of digital marketing to the customers. 3. To discuss the ways to further increase the effectiveness of digital marketing

Elements of digital marketing The elements which are included in digital marketing are discussed below. All these forms of digital marketing function through electronic devices only. Some of the essential elements of the digital marketing are discussed below: 1. Online advertising Online advertising is the most essential element of digital marketing. It is also known as internet advertising by the use of which the firm can send the information related to the products or services to the potential customers. The advertisement which is internet based provides an appropriate content and the promotional advertisements that suits to the needs or demand of the consumers. The sellers put the details of the products on the website of the company so that the customers can be aware of the existing products in the market to satisfy their needs. The relevant information should be provided to the customers so that they can benefit maximum from the schemes and offers introduced by the companies from time to time. The online advertising plays a vital role in providing valuable and free information to the customers.

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2. Email Marketing The email marketing concept is gaining importance nowadays. The messages about product and services when transferred through email to the customers are known as email marketing. The direct digital method that is used for ads display, to develop customer loyalty and brand loyalty, to develop customer faith and to spread brand awareness among the customers around the world. The companies can nowadays popularize it products and services by using the element of digital marketing effectively. It is rather a cheaper method of advertising as compared to the other forms of media. The company tries to attract customers by use of attractive graphics, video, text and links related to the products and services of the company. 3. Social Media The social media marketing plays a vital role among the digital marketing channels. It uses technique that is basically technology based and that allows the company to exchange ideas, valuable info and images of the products and services provided by the company. It has been observed that the internet users are relatively more engaged with social media sites in comparison to other methods of advertisement. Social media marketing is very popular nowadays. Through the use of the Facebook, company can easily promote the events related to the promotion of the product and services and thereby explore new opportunities from it. The twitter company has improved the awareness of their brand. It is one of the important tools used by the company for increase in sales of products and services. The professionals use LinkedIn, to write their profile and share the important info with others. The company can easily create their profile in LinkedIn by which the professionals can view the details and can get more clear info. 4. Text Messaging Text messages are the most popular method to send information related to the product and services from the mobile phones or the smart phone devices. By the use of cellular phone devices, the information is send in the form of text (SMS) by the company or by the use of pictures, videos or audio (MMS). The use of cell phones for the Short Message Services (SMS) has become popular since many decades. The person can easily send text for approvals, transport etc. With the use of SMS, the campaigns get quicker and more effective outcomes. By the use of this technique, the company can send the messages to the customers, and can be confident with their dealings with customers. The company can also ask the customers to fill the questionnaire and gain valuable information for the development of better products and services in near future. 5. Affiliate Marketing: It is also known as performance-based marketing. In this marketing, the company has four main players: the merchant, the network, the customer and the publisher who is also called as affiliate. In order to have good affiliation program the company needs to pay affiliates a good commission fee on sale from company’s website. 6. Search Engine Optimization (SEO) It is the related to the process of increasing the number of visitors on a specific website by confirming that the site appears relatively high on the list when searched by a search engine. The main key is to get more traffic in searching more content with search engine optimization and by the use of social media marketing. The more or higher rank of page on search result page the more frequently the website appears in the search result list, and thereby it will have more visitors or search engines user. The Search Engine Optimization are of different kinds including image search, local search etc. 7. Pay Per Click (PPC) Pay-per-click (PPC) marketing is the way by which the search engine is used for advertising to generate more number of clicks on the website. The Pay per click is good for the search engines, the searchers and the advertisers. The pay per click is an effective and relevant useful method. It involves low cost and more engagement of the products and services of the company’s.

Advantages of digital marketing to consumers Digital marketing helps the business to have an access to the market at a reasonable price. The digital marketing technologies allow the customers to be updated about the company from time to time. The people nowadays can easily use internet at any place, at any time and can gain information related to the goods and services. The customers have an easy access to the internet and can do online purchase within seconds, thereby making it convenient for the customers. The following are the advantages of digital marketing to the consumers:

Chapter 11: Digital Marketing71 1. This method is Cost-efficient. The online marketing strategy is an inexpensive technique in comparison to the other advertising channels like radio, T.V etc. A good digital marketing campaign is the one which reach a large audience at low cost. 2. Helps to stay updated with products or services offered by the company. Digital marketing helps the customers to be updated with the latest schemes and offers offered by the company from time to time. With the passage of time many customers can use the internet at any time and at any place and the company’s keep on updating the relevant information about their products and services from time to time. 3. Promotes brand building Brand building is the important aspect what every business looks for, to accomplish its goals and objectives. The digital marketing helps to develop the brand by promoting it on various platforms, the more the brand becomes popular the more it can be seen in the search engines as well as users. 4. Provides detail information related the products or services. The customers get detail knowledge related the products or services, by the use of digital marketing technologies. The internet provides the all-important information for the customers on which they can rely and make good purchase decision. 5. The products can easily be compared with the other products. The companies are nowadays trying to promote the products and services by use the digital marketing methods, it provides advantage to the customers to make a comparison of the products with the other products available for them. It is cost effective and time saving method to buy the product to satisfy the needs and wants of the customers. 6. 24/7 Shopping and better exposure for customers. The internet facility is available throughout the day; the customer can use it at any time as they want to gain information about a product of the company. The use of internet facilitates the consumers with easy accessibility to information and latest schemes available to them with new festive offers from time to time. The customer feels delighted to avail such offers and schemes, which thereby help in promoting and building brand image or reputation of the company in the competitive world. 7. Facilitates quick purchase. In the traditional marketing, the customers initially use to watch the advertisement and then use to visit the relevant physical store to buy the products and services to satisfy their needs and wants. With the rapid change in the marketing techniques, the customers can purchase can now purchase the products or services instantly as per their demand.

Ways to improve the effectiveness of digital marketing The small and medium business has limited capitalization and need to efficiently manage budget allocation for marketing. So, it is important to focus on cost effective marketing channels. The following are the strategies to improve the effectiveness of digital marketing firstly, be socially involved through mobile with the potential customer through digital marketing strategies. Secondly, it is also important to implement a multi-channel digital marketing campaign. Thirdly, make efforts to change your digital marketing strategies as per the changing business environment in order to take proper timely decisions. Fourthly, important to create a good content strategy. Finally, make use of videos, images and links to enhance the content and the adaptation of the continuous improvement in the mindset of consumers about the product. In order to improve the effectiveness of digital marketing following points need to be considered: • Each customer must be an exclusive customer: A proper details of all the list of customers is required to inform about various offers, promotional schemes introduced by the customers. This is basically very effective in digital marketing as it helps to build the company’s goodwill and loyalty towards brand. • The Lack of Technical availability: In order to make full utilization of the digital marketing technique, it is important to have such advertising campaigns which have low technical requirements. • Always look forward for the rewards: The new attractive offers would help in making the digital marketing campaign a success. It is essential to provide with some rewards at the end of the campaign to make the campaign a complete success. This would promote the firm’s goodwill by the spread of goodwill by the word of mouth publicity.

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Suggestions to improve digital marketing The use of digital marketing is increasing at a rapid pace. There are number of ways by which the use of the digital marketing can be improved. Firstly, by improving the technique or making technological advancement in the promotion of the digital marketing. Secondly, it’s necessary to collect and implement the feedback provided by the customers. Thirdly, to have a transparent or clear and excellent service to the customers both before and after sales. Fourthly, by creating awareness in the customers about the digital marketing. And at last by providing a complete description of the products available for the online shoppers.

Conclusion Digital marketing is playing an important role in many companies. It has become an essential part of organisations strategy. The small business firms can nowadays easily, at cheaper and effective way promote the product or services in the market to gain or earn profits. There are no boundaries to digital marketing, it works beyond boundaries. The digital marketing can reach new heights if considers or focus on the user’s needs as a top priority. As we can say that the “Spain was not developed in a day,” likewise digital marketing positive responses will not come without any attempt or trial. The companies should focus on creating easy understanding by the consumers and perfect plans for media in order to recognize the finest way to promote digital marketing performance of the firms.

References 1. Kannan, P. K. (2017). Digital marketing: A framework, review and research agenda. International Journal of Research in Marketing, 34(1), 22-45. 2. Rowley, Jennifer. (2004). Online branding: the case of McDonald’s. British Food Journal 106 (3): 228-237. 3. Sathya, P. (2017). A Study on Digital Marketing and its Impact. International Journal of Science and Research (IJSR), 1-3. 4. Taken Smith, K. (2012). Longitudinal study of digital marketing strategies targeting Millennials. Journal of Consumer Marketing, 29(2), 86-92. 5. Vishal Midha, Article- Impact of Consumer Empowerment on Online Trust: An Examination Across Genders, Elsevier International Journal, 12(3), 2012, 198-205. [6] International Journal of Marketing Studies, 3(1), 2011, 128-139. 6. Yasmin, A., Tasneem, S., & Fatema, K. (2015). Effectiveness of digital marketing in the challenging age: An empirical study. International Journal of Management Science and Business Administration, 1(5), 69-80. 7. http://www.entrepreneur.com/encyclopedia/affiliate-marketing 8. http://www.sas.com/en_us/insights/marketing/digital-marketing.html 9. http://www.simplydigitalmarketing.com/what-is-digital-marketing

Chapter 12 Impact Investing in India - A Silent Revolution Pooja Bhanot*

Impact investments are those investments which create social or environmental impact and also generate a financial return. Conventional or traditional investments have already become ripe for further research but impact investments or socially responsible investments has been growing constantly and gaining attention from academic as well as corporate circles, the industry is still at a beginning stage in India. This paper takes a deep look at the status of impact investing in India. It also presents the potential ways for the industry to develop and grow taking into account some of the recent developments that has taken place in India.

Introduction In recent years, impact investments have become eminent on the global stage as a way to deploy funds while achieving social/environmental goals as well as financial goals. India, being one of the fastest growing economies in the world, is no exception. Investors are becoming more concerned about social impacts of their investments. The impact investing industry in India is growing rapidly. Average investment size rose to $ 17.6 million from $7.6 million since 2010.

Objectives of the study: The main objectives of this study area) To understand the concept of impact investing b) To know the status of impact investing in India c) To suggest the potential ways in which the impact investing can be develop and grow in India.

What is Impact investing? “Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return”. - Global Impact Investing Network (GIIN)

Key Features of Impact Investing (Global Impact Investing Network) Impact investing practice has four key features that differentiate it from other strategies of investment. These characteristics are as follows: 1. Intentionality- Intentions of the investors plays a major role in impact investing. Investors should have the intentions to create a positive social impact on the society. *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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2. Investment with return expectations- The idea of impact investing is very different from philanthropy or charity. Here investors invest their capital in such a way that enables them to earn higher returns while also generating social impact on society. 3. Range of return expectations and asset classes-Impact investing provides various avenues to invest in, as per the requirements of the investors. Investors can invest in securities, fixed assets that have low, medium and high risk expectations. 4. Impact measurement- One of the main features of impact investing practice is performance measurement by investors of their underlying investment assets. Since here we are talking about generating positive impact on society, so it becomes imperative to see if we have achieved our objective or not and this can only be possible if we measure the performances and report the same.

Data sources and methodology This study is based upon the secondary data, which has been collected from the sources such as Annual impact investor survey reports by Global Impact Investing Network (GIIN), Impact Investors Council (IIC), JP Morgan Chase’s Annual impact investor surveys.

Impact Investing Vs ESG Investing As investors are becoming more knowledgeable and aware, they are demanding more options for investing from their asset managers. The two terms pertaining to investment that we get to hear are: a) impact investing b) ESG investing. These two terms are often used interchangeably by many people across the world, because of the common mission i.e. to generate positive impact on the society. However, the difference lies within the procedure of strategies used to achieve those positive impacts. ESG Investors and SRI investors’ uses negative screening approach where they avoid investing in companies on the basis of social and environment factors, it is termed as ‘do-no-harm’ approach or passive approach. On the other hand, Impact investors uses more active approach towards screening of investments.

Recent developments in India that created a conducive environment for impact investing In India, there’s great potential for impact investing to grow because of its large investor base. That is the reason why Indian government along with other financial institutions, has taken various steps to aware as well as encourages the Indian investors. Some of the recent developments that have taken place are discussed below: 1. Setting up of India Inclusive Innovation Fund (IIIF) Approved by the Union Cabinet, the National Innovation Council and the Ministry of Micro, Small and Medium Enterprises (MSMEs) jointly set up the India Inclusive Innovation Fund (IIIF) on 27th January 2014 with a corpus of 500 crores. Indian Inclusive Innovation Fund (IIIF) is also planning to create a new kind of capital class which will help to set up the centres for developing entrepreneurial as well innovation skills. The fund will also invest in the ventures which are of sustainable nature and also profitable such as education facilities, healthcare facilities, financial inclusion, water, sanitation facilities for the unprivileged people. 2. Formation of Indian Impact Investors Council (IIC) In May 2013, nine different entities in the impact investing industry came together to form an industry grouping that will define self-regulatory practices for the industry to follow. The experience of Indian Microfinance industry in 2006 and 2010 highlighted the importance of accountability in the system and therefore, the IIIC acts as a SelfRegulatory Organization that enforces ethics, transparency and consumer protection and implements operating, governance and measurement standards. 3. Corporate Social Responsibility (CSR) The new Companies Act 2013 requires businesses to spend 2% of their average net profits of the past 3 years on social activities, making corporate social responsibility a legal requirement. As a result, the total annual spend on CSR is estimated to range between $2.5 billion and $3.3 billion. This CSR corpus would be useful in financing projects in sectors like water, sanitation, health care and basic education where access to capital in the form of traditional equity investments is extremely limited. Looking at the growth pattern of impact investing in India, it is expected to grow from 20 to 25 percent a year between now and 2025.

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Benefits of Impact Investing 1. Enhanced Financial Returns Most of the investors are not aware that through impact investing they can actually increase their overall returns. It provides the investors with the platform where they can diversify their investments, reduce the risk and at the same time can earn higher returns than conventional strategies. 2. Incorporating Personal Values into Investment Decisions Countries all over the world are facing sustainability challenges. Through impact investing we can make our contributions towards solving this problem. 3. Reduced Risk Through impact investment, our overall risk associated with the portfolio gets reduced, as it broadens the gamut of risks thus leading to the reduced volatility. 4. Niche Area Presently, if we talk about impact investing, its coverage is not as much as the conventional investing reason being, lack of awareness among the investors worldwide. Now, this kind of situation represents unique opportunities that can be availed by the first movers in the niche area. 5. Impact Reporting Since sustainability is quite a subjective topic, it calls for the need for proper reporting so that better transparency can be maintained. However Impact reporting is still in the developing phase. Impact investment strategies are of long term in nature, therefore it becomes the responsibility of the asset managers to provide verifiable track of records so that investors can review the performance of their investments.

Recommendations to promote the impact investing in India: Considering the growth that impact investing has seen in the past few years in India, it can be said that with the combine efforts of Indian government and industrial experts investors can be encourage to take the route of impact investing rather than conventional investment strategies. Following are some of the suggestions that can be used to encourage the impact investing in India: 1. Pursuing transparency measures- Just like we have standardized and well defined parameters of performance measurements in case of conventional investments, in the same way proper guidelines should be made for impact investing practice. 2. Expanding funds- Unraveling of additional sources of capital is required and in order to achieve that the major industry players can collaborate with the government of India. However, mutually they can channelize the funds towards impact investing ecosystem. Meanwhile, other approaches can also be used such as following: a. Contributors of funds can be educated b. Retail investors can be encouraged to participate like mutual funds etc. c. Collaboration with financial institutions to decrease the debt between banks and MSMEs d. Encouraging the impact investing firms to strengthen their credit rating scores. e. Expansion of avenues for investments such as social venture debt and crowd funding 3. Market-backed innovations-The industry can explore a wide range of market mechanism for investing, various other instruments can be develop with financial engineering such as green bonds, social or development bonds. These kinds of innovations will provide more options to the investors for putting their money. Since thematic stock exchanges are so in, a new platform such as social or impact stock exchange can be created. 4. Governance and reporting-The industry can develop higher and more transparent standards for diligence and reporting as in traditional investing so that investors trust can be retained.

References 1. “Impact investment: The invisible heart of markets”, 2014, Social Impact Investment Taskforce. 2. VCCEdge, McKinsey analysis (www.mckinsey.com). 3. (www.thegiin.org).

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4. Strengthening philanthropic giving & impact investing for development in India, Intellicap-McArthur, March 2016. 5. ‘Impact Investments: An Emerging Asset Class’ (2010), J.P. Morgan Global. 6. Research. 7. ‘Invest. Catalyse. Mainstream: The Indian Impact Investing Story’ (2014), Intellecap. 8. ‘India Venture Capital and Private Equity Report’ (2013), Department of Management Studies, IIT Madras. 9. ‘The Green Funds Scheme: A success story’, Ministry of Housing, Spatial Planning and the Environment, NL Agency. 10. Investment Funds’ (2014), Impact Investing Policy Collaborative. 11. THE LANDSCAPE FOR IMPACT INVESTING IN SOUTH ASIA- Global Impact Investing Network. 12. http://ifmrlead.org/publications/ 13. Impact Investing Reaches A Tipping Point In India, 2013 (UNITUS). 14. A Decade of Impact Investing in India Sharon Buteau, Pratibha Joshi, Sirish Dhurjety, Advitha Arun (2016).

Chapter 13 Way Forward in Overcoming the Digital Divide in Business: A Review Gaganjot Kaur*, Dr. Nancy Bawa**, Neelam Sharma*** and Naveen Garg****

Businesses world-wide are getting competitive like never before. Business incumbents need to be aware of innovations and challenges to remain relevant. If the product upgrade does not happen in time, there is a possibility of cannibalization of traditional revenue. In order to re-create themselves, businesses may need partnering, innovating or adopting newer technologies like IoT, predictive analytics etc. Innovation is the buzz word as it has been so historically. But routine incremental innovation these days has to be constantly supplemented with disruptive innovation. Information Technology is one fine example that has disrupted many business value chains. Analytical products which manage, process and analyze data help in predicting future outcomes and trends famously called the Big Data Predictive Analytics. These predictive tools can almost precisely tell the likelihood of a particular event happening. Globally, these tools have found use in almost all the business segments by now. Strategies based on analytics, help in efficient inventory management, budget optimization, cost control and performance management. Another method to stay afloat is the use of Open Innovation, a concept and practice famously propagated by Henry Chesbrough, an American organizational theorist. The main idea behind open innovation is to venture out of silos and explore a wide range of internal and external sources. Cisco’s Common Platform Architecture (CPA) for big data applications is an example of open innovation. It gives access to its search engines to software developers from all over the world. Technology use has been heavily integrated in the field of supply chain logistics. Logistics is the staple of e-commerce and by making it smart has not only saved costs for the e-commerce retail companies but has also increased customer delight by delivering products faster to the customer. It has to be noted that all companies do not adopt technology with equal enthusiasm. Delayed digitization is the biggest challenge in the way of business profitability. The onus of reinvention largely lies on the top leadership for transformation. CEOs and executive boards need to be thoroughly investigating artificial intelligence technologies like machine learning algorithms, deep learning and smart robotics.

Introduction The tempo of technology change is immensely fast in the twenty first century. In a 2016 research by McKinsey and Company, it was found that only 16% of companies had shifted to aggressive digital strategic business models. In mid-2017, data collected world-wide from 1,650 firms, by McKinsey and Company found that still less than 20% of *Assistant Professor, Apex Institute of Technology, USB, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor, Apex Institute of Technology, USB, Chandigarh University, Punjab. E-mail: [email protected] ***Assistant Professor, Apex Institute of Technology, USB, Chandigarh University, Punjab. E-mail: [email protected] ****Assistant Professor, Apex Institute of Technology, USB, Chandigarh University, Punjab. E-mail: [email protected]

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companies had reinvented themselves on the digital highway and the remaining incumbent firms were not rising up to the digital challenge. It was seen that the high-tech companies see the change coming sooner. They reinvent 2.5 times more and 40% more than all other firms and sectors to correspond to the digital turbulence. In comparison it was also noticed that the auto industry is barely half this rate of reinvention. To stay relevant, businesses need to follow a dual offensive as a part of re-invention strategy. The primary offensive is defending the core business which includes digital up-gradation and the parallel offensive is diversification. Aggressive digital reinventions assign equal amount of resources to strengthen both.

Innovation Innovation can be incremental or disruptive in nature. Incremental changes tweak the existing processes and products with self-appointed and self-paced efforts. But disruptive innovation shakes the core of traditional processes and products. It gives a totally new dimension to the way businesses are run. A new product may be plonked overnight on the corporate dish plate trilling the business incumbents to act there and then. Case in point is the generic example of smart phone. The advent of smart phone put many a gadget to disuse notably the calculator, alarm clock, regular digital camera, PDA etc. Another example is of 3D printing which for long had remained a bit of gimmick but of lately is challenging the traditional production methods. In healthcare, doing the unimaginable is a startup called Sensely. It has developed Molly, a digital nurse that helps in monitoring patient’s condition between doctor visits. The program is based on machine learning. Not heard even a decade ago, wearable health trackers like FitBit, Apple and Garmin monitor heart rate and physical activity levels. Based on Artificial Intelligence systems, these trackers send alerts to the user and to doctors for early medical intervention. Examples of many technology giants have set the tone for strategic reinvention for many a company. Apple successfully uses cutting edge technology to stay ahead of its competitors. Amazon sends friendly reminders for products to customers for which they had once shown interest in. IBM uses webinars on its website to capture a prospect’s attention. Banks and financial institutions are playing with blockchain technology to automate inter-organisational processes (Atwood, January 23, 2018). Originally devised by Satoshi Nakamoto to be used for digital currency (Bitcoin) transactions, it is finding new technological uses. Like a shared ledger, it tracks international remittances and trade finance. Another use of technology in banks is chatbots - the intelligent digital assistants. These self-learning programs better themselves with every customer interaction. Undoubtedly, it is an era of disruptive innovation. To stay abreast with this trend, competitive businesses also apportion an additional task of research to their managers. This includes keeping track of articles in the press, published research and studies. The managers are encouraged to partner and network. This helps in gathering useful insights right from the source and reduces the possibility of the missing the innovation bandwagon. The result is quicker identification of relevant developments, technologies and start-ups.

Way Forward: Partnerships, Ventures, Accelerators, Acquisitions Can you imagine iPhone or Facebook without apps? Or video-sharing website YouTube without private channels? There are various methods for companies to stay in tune with the times. A much tried and time-tested method is partnerships which brings together unique knowledge and resources of the participating partners. The team members feel inspired and motivated to work on projects with equally passionate field experts. This method not only saves time but is cost-efficient as well. Puratos, an international century-old patisserie and chocolaterie group, headquartered in Brussels (Belgium) with presence in over 100 countries has networked with local subsidiaries. It has also collaborated with the University of Leuven for fundamental research and applied nutritional research. The university gives them cues on new business opportunities and innovative products. Ventures are investments into early stage startups. As a bottomline, such investments provide revenue (if business is successful) and definite access to new technologies. For example, Samsung has benefited from investment in Mobeam, a mobile payment company.

Chapter 13: Way Forward in Overcoming the Digital Divide in Business 79 Accelerators are a step ahead. These not only provide initial investment but also provide facilities and resources in their company for facilitating business scale-ups. Microsoft offers millions of dollars to start-ups and New York Times simply offers office space. At times, accelerators also do acquisitions. Talent comes along as a complementary. Samsung acquired SmartThings, an IoT (Internet of Things) company as an accelerator and saved time on R&D. This accelerated their innovation agenda in an incredibly efficient way.

Open Innovation Historically, research and development has been shrouded under security protocols in major companies. Industrial espionage has always existed. Apple and Google have been no different. Apple is known for keeping its cards close to its chest. But, with the turn of this century, the concept of Open Innovation (Chesbrough, 2006) has gained momentum to stay competitive. Open innovation is a concept to challenge the silo mentality of corporate research labs. It promotes information age mindset to synthesize ideas across domains. It refers to “a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology”. (Chesbrough, Open Innovation: The new imperative for creating and profiting from technology, 1 March, 2003). The main idea behind open innovation is to make the benefits of innovation accessible to companies who cannot afford to do their own research. Successful examples exist in the IT and software field, wherein companies save on infrastructure development costs by licensing one another’s software for new product development. Android and Apple platforms are a perfect example. Cisco also provides UCS Common Platform Architecture (CPA) for big data applications. Developers from all over the world access Cisco’s analytics engines and processing capabilities through APIs (application programming interfaces) to bolster their services on top of their existing infrastructure. Another example is Quirky - a crowd sourcing site for product ideas. It invites inputs from the community members and develops the product collectively which is sold on the Quirky store without the needed for investing in own company. In return, the person who originally presented the idea gets royalties proportionate to the product’s success. In the healthcare field, “Open access malaria box” project is an example of Open Innovation. Medicine Malaria Venture provides free access to 400 anti-malarial probable. It is accessed by nearly 30 countries to produce cure for malaria, skin sores and sleeping sickness. (Alexander Schuhmacher, 2018). The United Genomes Project (UGP) trumped the costly and slow traditional method of medical research. It uses open innovation to source genetic database. Gaining knowledge of genomes is important as it can create personalized medicine. There are recent advances in ‘Genome-Driven’ cancer drugs which have been used to treat small minority of patients who did not respond to traditional drugs. Open innovation has its share of disagreements, exemplified by the famous patent violations dispute between Apple and Samsung. But so far, open innovation has done far more good than harm in the cause of development. Companies have gained by adding value to their existing hardware or developing new products.

Integrated Supply Chain Approach In the world of intensive competition, companies are expected to respond faster to customer needs. This means faster product development and still faster delivery of product to the customer. In India, retail e-commerce is huge. These companies are using all the tricks under their hat to drive product demand. They offering convenient payment options, easy return/refund policies, special discount coupons, cash back offers, grand festival offers etc. to entice the customers. To enable customer experience, supporting logistics have emerged as one of the key differentiator. Many e-commerce companies have also built their own logistics networks and capability. As market players are interdependent links in the supply chain, they have to work in collaboration with suppliers, retailers and delivery firms to effectively match demand with supply (Togar M. Simatupang, 2002). The availability of pick-up and drop-off (PUDO) centres allow online customers to collect or return ordered goods. 3PLs (third party logistics) are tying up with local kirana stores to act as PUDO centres. Currently, Amazon India has the largest network in the country with PUDO centers covering nearly 1000 cities.

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Another concept used by logistics companies is of secured lockers. It is a parcel locker facility from where the customer collects the e-commerce parcels as per convenience within a given time duration. This has been possible with the use of web/mobile-based applications ensuring last mile delivery success. In India, addresses have been obscure. It has been difficult to track the exact address of the customer resulting in multiple visits by the delivery staff. By adopting digitization, physical addresses have been aligned with that available on the web. The accuracy of address ensures reduction in time taken to deliver the parcel at its destination. Globally, the logistics companies are also toying with the idea of unmanned drones and driverless vehicles. These projects come with a huge investment cost and are embroiled in regulatory constraints for now. Another innovative revolution is the use of Internet of Things (IoT). It has taken parcel tracking to the next level. IoT monitors and facilitates everything from parcel contents, exact parcel location in the supply chain, parcel arrival and even condition of the parcel in real time. This connectivity is possible through sensors installed in vehicles and loading devices. An accelerometer identifies if the parcel has been dropped and a light detection system intimates when the parcel is opened. These breakthrough innovations have improved customer satisfaction levels. On the other hand, advanced algorithms such as Transportation Management System (TMS) have helped logistics companies to choose the optimal carrier mix and fleet size/location. E-commerce retail industry continues to expand on the wings of AI. These companies have taken the help of chatbots to facilitate quicker decision making by the customer. The visual research helps in forecasting demand for a product and automated recommendation engines help achieve the desired results.

Overall Reach of Artificial Intelligence It’s almost like mind reading to know what a customer likes or dislikes. E-commerce companies track a customer’s browsing history and know which dress, accessory, home product etc the customer is interested in. Soon after, the prospective customer starts getting personalized advertisements in the mail box or on the current webpage being browsed. At the back of this engaging experience are computer software based analytics tools. To put it in other words, it is data analysis that is churning out predictive models. At a time when similar products are offered and comparable technologies used, businesses take advantage of AI tools as product and service differentiators. Globally, consumer products, retail, finance, healthcare, travel, entertainment have harnessed the power of analytics. Amazon, the giant online retailer, uses data analytics to become a money spinner through improved process control. Their computer-aided algorithms help to know what the customers want, how much they can shell out and what will engage them to be loyal. Such algorithms also make suggestions to customers regarding allied or similar products in order to cross sell or up sell. Online retailers also use customer analytics to manage their inventory so that they are adequately stocked for future orders. Other businesses in the advanced countries use analytics for airline reservations, predictive maintenance for building installations etc. Business intelligence tools have become better predictors of process improvement and hence have created enormous wealth for their masters. Technology is harnessed as a facilitating tool into a strategic business decision weapon. Business Analysts or Data Scientists take raw numbers and turn them into actionable insights for the organization’s business and financial decision making. They have a natural eye for detail and are hired for their expertise in numbers. Predictive models are created by the analytics team and actionable are shared with the business executives in the form of dashboards and reports to highlight future business opportunities. These are also used to forecast future behaviour and trends of the people using World Wide Web. Using both new and historical data, data is integrated and stored in data warehouse for easy access for everyone in the organization. Auto insurance companies gain immensely from the use of predictive analytics. They take into account variables such as age, location, vehicle model and driving record of the driver to price their insurance policies. Other business applications include targeted online advertisements and pointing potentially fraudulent financial transactions. In healthcare, artificial intelligence provides predictive insights for identifying patients who are at a greater risk (predisposed) of developing a particular disease. It functions by analyzing notes and reports from patient’s file, applies external research and clinical expertise to suggest the best treatment option. It also manages medical records and helps in faster and consistent retrieval of data.

Chapter 13: Way Forward in Overcoming the Digital Divide in Business 81 Faster pharmaceutical discoveries are possible when technology companies like IBM Corp., Atomwise Inc., Insilico Medicine Inc., etc partner with universities. Using advanced deep learning, they help in biomarkers discovery for a customized approach to treatment. The drugs that earlier required millions of dollars and almost a decade to be discovered find a shorter period to come out and that too at a cheaper cost. The West African Ebola virus epidemic, that was responsible for thousands of deaths between 2013-16, found a quicker drug treatment because of artificial intelligence algorithms. In manufacturing industry, analytics helps in detecting chances of failures in industrial equipment before it actually occurs. Manufacturers are attaching sensors to machinery such as automobiles to collect data and predict when repair and maintenance (R&M) work should be done to avoid probable breakdowns and hazards. Sensor equipped data stations providing localized weather forecasts to farmers is another predictive modelling application. The list is getting longer by the day!

Conclusion Technology has challenged the traditional thinking. Profitability does not rest on incremental innovation and diversification alone. Digital reinvention is the need of the hour. Businesses, that have adopted technology early on, have shown phenomenal progress. Amazon, IBM, Uber, Samsung, Apple, Airbnb are known worldwide. In India too, local brands like Flipkart, Ola, Paytm, Swiggy, Zomato are extensively piggy backing the technology cart and winning. Simple social media platforms like Facebook, WhatApp, Instagram and Pinterest are also being used as a marketing tool to bolster a product at a lightning speed. Logistics being the strong arm of commerce has leveraged the power of technology in India and come up with innovative web and app-based online logistics platforms. Chennai-based FreightBro Bengaluru-based BlackBuck, Trukky, GoBOLT use data-driven decisions like right vehicle selection, route planning, rate index, live pricing etc. When businesses do not reinvent in a timely way, they cannibalize themselves into an early demise. So was the case with Kodak, the world’s biggest film company. It crashed as it did not reinvent itself when the world was turning digital. It had a number of opportunities to upgrade itself but it hesitated to fully transition its products to the digital format. Kodak’s main fear was the loss of its all-important film business. Its staunch competitor, Japanese firm Canon, seized this opportunity and established itself as the new giant. To remain in business and thrive, early adopters look for innovation, partnerships, ventures, digital adaptation etc. The business incumbent has to be bold and not risk averse. Integrating artificial intelligence tools and applications in existing businesses involve wise investments which in the long run increase the chances of business survival. Technology upgrades in this century are no more a matter of choice, as those who did not swim with the tide, perished sooner or later.

References 1. Chesbrough, H. (2006). Harvard Business Press. 2. Chesbrough, H. W. (1 March 2003). Open Innovation: The new imperative for creating and profiting from technology. 978-1578518371. ISBN Boston: Harvard Business School Press. 3. Togar M., Simatupang, R. (2002). The Collaborative Supply Chain, The International Journal of Logistics Management, Vol. 13 Issue: 1, pp. 15-30. 4. Schuhmacher, O. G. (2018). Open innovation and external sources of innovation. An opportunity to fuel the R&D pipeline and enhance decision making, Journal of Translational Medicine. 5. Atwood, M. (January 23, 2018). Blockchain Technology Explained. Create Space Independent Publishing Platform.

Chapter 14 Industrial Development: A Key towards Economic Development Dr. Gurpreet Kaur*

The industrial development raises the employment prospects and also provides leisure and lavishness. The objective of industrialization has been national growth and upgrading standard of living. Thus the industrialization offers significant dynamic benefits that are essential for altering the traditional structure of less developed economies. Industrial development is considered as a strong catalyst for economic growth. The industrial sector is characterized by high labor productivity. Therefore, it ensures higher wages, which result in a high standard of living. Historical evidence suggests that countries with strong industrial sector have shown speedy economic growth. Industrial development brings about perceptible rise in national income and improves the standard of living of the population. It reduces reliance on agricultural exports and earns the badly-needed foreign exchange in a developing country (Sutcliffe, 1971).

Industrial Development: A Key towards Economic Development Economic Development identifies a process in which a country’s real per-capita gross national product (GNP) enhances over a sustained period of time through continuous increase in per capita productivity. Apart from it, development can be perceived as a multi-dimensional process that involves the re-organization and re-orientation of the entire economic and social system apart from the structure of the economy because development undergoes a perceptible transformation. The concept of under- development is not purely quantitative but it is qualitative also concurring with welfare objectives. The Economic Development is a wide concept that considers economic growth, and this economic growth is measured in the terms of Gross Domestic Product which plays an important role in reducing poverty and inequalities in income-distribution. Economic Development does not focuson the aggregates and per capita income, but it focuses also on concern about economic, social, and institutional mechanism that improves the standard of living and also promotes innovation that leads to structural transformation (Todaro, 2001) During the process of economic development, the sectoral structure undergoes discernible transformation. The structural changes are indispensably relevant, as they elevate productivity and accentuate the process of economic development. Thus, both structural changes and economic development have a dialectal relationship. The pattern of development ensures that the focus of sectoral structural change remains on the sequential process through which the economic, industrial, and institutional structure of underdeveloped economies is transformed over time for allowing new industries to replace traditional agriculture set-up as the engine of economic growth moves. These changes entail transformation of ancillaryproficient technology, entrepreneurship, pattern of investment, variations in the composition of consumer’s demand, international trade, resource allocation, factor intensity, international specialism, efficient capital accumulation in physical as well as human capital, changes in such socio-economic factors as more urbanized, industrially assorted manufacture and service economy, growth and distribution of country’s population, and also the changes in standard of living. *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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The Structural Transformation and Industrial Development: Development means the suppression of the traditional sector by concentrating on modern sector and expanding that modern sector. These two sectors have little relation and interdependence, and each sector develops according to its own pattern. The interaction between agriculture and industries changes significantly over time during the process of economic development. However, as development takes place, the relative importance of agriculture declines sharply, while the importance of industry increases considerably. Industries develop on account of the impact of growth in agriculture sector. Industrial sector absorbs the surplus labor and increases the demand for agricultural products. Whereas, in turn, the agriculture sector provides raw material, a market for industrial goods and contribution to the industrial sector. The modern sector can be considered as an economic enclave of industrial countries, and this view is responsible for this sector’s multiplication and growth benefiting these industrial countries. Taking data from twenty-eight developed countries, Kuznets (1957) has observed a consistent pattern of structural changes. This pattern has demonstrated that when the per capita income increases, the share of agriculture in GNP decreases. But increase in the industrial sector is there. The proportion of labor force in the agriculture sector, which is already almost eight-tenth of the initial level, declines in countries like Great Britain and United States. Evidence also shows that in the year 1940, less than 20 percent and over 30 percent of labor was engaged in the agricultural sector and in mining, manufacturing and construction respectively. In developing countries with the rise in national output, the average share of agricultural sector declined by 45.6 percent, and it increased by 17.9 percent in an industrial sector. Based on linear logarithmic regression, Chenery (1960) made estimates from data taken from thirty- eight countries, including both developed and underdeveloped economies for the year 1950 and 1956. He used growth elasticity and size elasticity as variables, and concluded that the per capita value added depends upon per capita national income and population. During the process of industrialization, a number of structural changes have been observed like rise in the importance of manufacturing sector and changes in composition of industrial output and production techniques. Apart from it the demand and supply pattern of consumers’ commodities has undergone change because the industrial output has risen from 17 percent to 38 percent. Apart from its primary production has declined from 45 percent to 15 percent at an income level of $ 100 to $1000. Fisher (1939) observed a noticeable reduction in the proportion of labor force in agriculture sector in most of the countries. In the majority of these countries, except Australia and Canada, the productivity tends to be lower in agriculture than in industries. The shifts were considerable in the year 1820. In the United States, the labor force involved in agriculture was over 70 percent, but in 1940, it was less than 20 percent, and per capita income increased significantly. As the process of development proceeds, the pattern of industries undergoes changes. The demand shifts from basic necessities and less- value added goods to luxurious and high-value added consumer durable goods. Engel’s Law (1967) expounded that over the time, the terms of trade have set out in favour of industry, as the market demand has increased. Structural resources are increasingly allocated to the industrial sector. Thus, the importance of agriculture sector goes on diminishing during such a period. Lewis (1954) contented that an underdeveloped economy consists of two sectors, and they are featured as traditional agricultural and modern sectors. The primary focus of the model is on the migration of disguised unemployed workers whose contribution to agricultural output is zero or negligible, and who have been reallocated for the growth of output and employment to the industrial sector. The process of growth is expanded by the rate of investment and capital accumulation. Thus, the labor-land ratio, that is, the marginal productivity of labor at subsistence level is no longer zero as it accelerates at a wage equal to the institutional wage of agriculture. Owing to this, labor supply curve slopes positively, which marks the development from the take-off to self-sustained growth. Industrialization plays a vital role in providing employment opportunities, in generating incomes, in contributing to the maintenance and improvement of society’s capital assets, and in assisting the general improvement in economic and social welfare. Hence, industrial activity contributes to economic development, but at the same time, it is a product of economic development (Jones and Cockrill, 1985).It gives rise to desirable, social, psychological, and institutional changes (Kirkpatrick, et.al, 1985).

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Papola (2005) conducted a study by means of World Development Report (2004) for the time period of 1960 and 2002, about the economic transformation that occurred in some Asian developing countries like India, China, Indonesia, Thailand, Philippines, Malaysia, Republic of Korea, and Pakistan. The study concluded that the share of agriculture in GDP has slowed down in China, Indonesia, Thailand, Malaysia, Philippines, and India to 15, 18, 9, 9, 14, and 24 percent respectively. On the other hand, a noteworthy augmentation has been observed in their percentage shares in industry and services. Taking into consideration the case of India, Papola (2012) explores the structural pattern of economic transformation in four phases. These phases start from Independence. Firstly, in Mid-1960s (phase1), amid a momentous structural change with a great boost in the share of non-agricultural sector, mainly of the industry in the national output. Secondly, Mid-1960’s to 1980 (phase 2) described as a slower pace of structural shift from agricultural to non-agricultural, i.e. a very less increase in the share of industry in national output. Thirdly, 1980 to early 1990s (phase 3) experienced a large fall in the share of agriculture and vice versa in case of industry. And finally, early 1990’s onwards (phase 4) has shown a considerable rise in the share of service sector and very little ascend in industry as compared to agriculture sector from the 1990s onwards. It was observed that the share of agriculture has taken a rain check from around 20 to 16 percent, that of services sector has increased from 54 to 59 percent, and that of industry has stagnated.

Determinants or Causes of Industrial Development: The developing countries have diverted their activities from agricultural to industrial economy for the past few years (Kuznet, 1973). It happens due to several advantages like economic diversification, generating employment opportunities, and transformation in technology. Many socio-economic factors like human capital, financial institutions, and governments have contributed equally to promote industrialization in the developing countries (Beji and Aram, 2014) The process of industrialization was escorted with the rise of saving rate. The rise of the saving rate was quite ubiquitous during the Industrial Revolution. The saving rate rose from 3 percent to 6 percent in the end of the nineteenth century to 10 percent to 12 percent around 1900 throughout the process of industrialization (Deane and Cole, 1969). Chenery (1960) has made an attempt by using regression analysis to elaborate the causes of industrialization as the changes in demand-conditions. As the income level rose by $100 to $600, the substitution of domestic product for imports and the use of industrial product accounted for 22 percent and intermediate demand drove from the domestic product as well as the final use of product increased by 32 percent. As the population increases from 2 to 50 million and also the income level accelerates from $300 to $600, under the effect of economies of scale, the market expands triple in size and output 40 percent to 57 percent of manufactured products (Chenery, 1960). To reimburse the primary production and also the exports of domestic products, furthermore, due to lack of natural endowments, some of the countries prefer to engage in the production of manufactured goods (Chenery and Taylor, 1968). A sectoral link can also develop because manufacturing productivity exceeds that of agriculture and therefore, pulls labor out of the latter sector. This view holds that marginal productivity of labor in the modern sector is much higher than it is in agriculture. In fact, because of the unlimited supply of labor in agriculture, the marginal productivity is extremely low in it, if not negligible. Labor, therefore, has wage incentives to migrate from agriculture to manufacturing. This allows modern sector to grow further and develop economy (Lewis, 1954). There are additional reasons that link these two sectors. The agricultural sector’s exports provide foreign exchange, which can be used to import material and capital goods for industry. Furthermore, with successful functioning of banking sector, agricultural savings can be channeled to industry and invested by industry. Redistribution of the agricultural surplus can be taxed and provided as a support to manufacturing (Johnston et. al, 1961). International Integration is hypothesized to exert positive impact on industrial development. Small domestic market holds back industry in many developing countries, opening up to trade and creating exports opportunities that offer scale effects. This can come about by being able to lower unit costs of material by buying large amounts or producing at minimum efficient scale (Bernard et al, 2007). Furthermore, competing with foreign producers may force the domestic firm to become more efficient.

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Barriers to the Process of Industrial Development Industrialization is the process that accelerates economic growth, affects structural changes in the economy, particularly in resource utilization, production functions, income generation, occupational pattern, population distribution, foreign trade, and also the social changes. The most pressing need for rapid industrialization of the developing countries is to achieve the basic objectives of their economic and social progress. It has been recognized that industrialization is the surest solution to the problem of raising the standard of living of the people. Clark (1957) has pointed out that growth entails the movement of resources from low-productivity sector agriculture to high-productivity sector industry. The industrial sector in the developing countries has been facing a number of problems in industrialization and technological modernization. This has kept its production at devastating low levels. The appropriate financial resources and institutions become the most necessary condition for industrial development (UNIDO, 1979a), but the savings and capital do not get channeled properly for productive and profitable investment opportunities, and thus, slow down the process of industrialization. Taking evidence from forty-three companies of Kenya in 1960, Snowden (1977), has concluded that smaller and medium-sized enterprises depend heavily on the savings and profit, but larger enterprises prefer more loans, and as a consequence, this causes a little net contribution to industrial financing in Kenya. Key services called infrastructure such as transportation and communication network are necessary for efficient commerce. Roads, bridges, railways are needed to transport material and finished goods. Telephones, water supply, etc. are necessary for industrial development. An absence of a dependable infrastructure can impose several barriers to industrial development. The 1970s and early 1980s witnessed explosive growth in the external debt of many developing countries. Since the mid-1980s most of these countries have been experiencing difficulties in making the payments required for serving/ repaying their debt. Such types of debts are considerable hurdles in the process of industrial development. The developing economies face the problem in developing a strategy to become globally competitive. Industries in such economies face difficulties in attaching themselves with market forces and generating economies of scale, quality, and consumer satisfaction. In addition to these factors, these industries also pass through various obstacles like obsolescence of technology, non-availability of quality raw materials, high cost of basic and essential inputs, environmental issues, and lack of R &D facilities (Mathur.et.al.2009). Lethargic growth and productivity in manufacturing are fast eroding competitiveness of the industry, and these factors are bound to have serious implications on employment, investment, output, and thus income. A substantive improvement in the investment climate and a drastic enhancement in industrial productivity are the essential pre-requisites to compete in an increasingly globalized and competitive environment of production and trade (Hussain.et.al, 2012). A well-developed entrepreneurial class motivated and trained to organize resources for efficient production, is often missing in developing countries. The lack of skilled labor damages the prospects of SMEs. The poor health of the work force is another reason of inadequate human resources. When labor force is healthy, less working time is lost and effort is expanded. The underutilization of capacity of industries is also an obstacle in the path of setting up industries in developing countries. In such cases the performance of industries is not up to mark. The inadequate supplies of natural resources create difficulty in achieving industrial development as compared to the industry that is richly endowed with such resources. Well, management of these resources matters a lot. Economic inefficiency occurs when the factors of production are used to make an inefficient combination of goods. Thus, the society is at the wrong point of its production-possibility boundary, and productive inefficiency occurs when factors of production are used in some inefficient combinations like too much capital relative to labor and vice-versa. Thus, the society is inside the production possibility boundary. The vicious circle of poverty in developing countries causes the slow progress of industries, and this makes bad impact on the markets, and this limits the investment and capital formation in the developing countries. Due to large number of hurdles, the manufacturing sector faces laggardness and needs a balanced and sustained growth. The industry needs incentives for industrial development. Industrial Policy is considered successful, only if the implementing powers have either directly yearned for industrialization to happen as expected, or they possess the

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force to perform in this way by the engendered incentives (Robinson, 2009). New innovations in the economy are imperative for achieving balanced growth. For attaining global competitiveness, investment by industry in R&D sector should be encouraged in the state (Kaur, 2013). Generally, the investment in R&D sector in the state/country is low. High Productivity leads to growth of manufacturing sector, and this will only happen if the government realizes the necessity to increase their investment in such sectors. It will result in improved quality of goods.

References 1. Bernard, A.B., Jensen, J.B., Reddy S.J. & Schott, P.K., (2007), “Firms in International Trade”, Journal of Economic Perspectives, Vol. 21, pp. 105-130. 2. Beji.S & A. Belhadj (2014), “What Are the Determining Factors of Industrialization in Africa?” Université de Tunis de Mamar, ISAEG université d’Orléans, pp. 1-15. 3. Chenery, H.B (1960), “Patterns of Industrial Growth” American Economic Review, Vol. 50, pp. 624-654. 4. Clark, C.G (1957), The Conditions of Economic Progress, Third Edition, London: Macmillan. 5. Chenery, H.B. Hollis, S. Robinson & M. Syrquin (1986), Industrialization and Growth: A Comparative Study. New York: Oxford University Press. 6. Fisher, A.G (1939), “Primary, Secondary and Tertiary Production,” Economic Record 15, pp. 24-38. 7. Hussain.S.T, U.Khan, K.Z.Malikand & A.Faheem (2012), “Constraints faced by Industry in Punjab Pakistan”, Working Paper, International Growth Centre. 8. Hussain, M, R.A. Tenkorang, Ajmal M. and Kristianto Y. (2012), “A Study of Technology Adoption in Manufacturing Firms “, Journal of Manufacturing Technology Management, Vol. 23. 9. Johnston, F. Bruce, Mellor & W. John, (1961), “The Role of Agriculture in Economic Development”, American Economic Review, Vol. 51, No. 4, pp. 566-593. 10. Jones, T.T & T.Cockerill (1985), Structure and Performance of Industries, New Delhi: Heritage Publishers. 11. Kaur (2013), “Human Development and Economic Growth: A Comparative Study of Punjab and Haryana “, Thesis submitted for the award of Degree of Masters of Philosophy (Economics), School of Behavioral Sciences and Business Studies, Thapar University, Patiala. 12. Kuznets.S (1957), “Summary of Discussion and Postscript to W. W. Rostow, John R. Meyer, and Alfred H. Conrad – The Integration of Economic Theory and Economic History”, Journal of Economic History, Vol. 17, pp. 545-53. 13. Lewis, W.A (1954), Economic Development with Unlimited Supplies of Labor, The Manchester School: England. 14. Mathur, R.M., B.P. Thapliyal, & K. Singh (2009), “Challenges confronting Indian paper industry in changing scenario”. IPPTA J., Vol. 23 pp. 95-99. 15. Papola, T.S (2005), “Emerging Structure of Indian Economy: Implications of Growing Inter-sectoral Imbalances”, Presidential address of 88th Conference of the Indian Economic Association, Andhra University, Visakhapatnam, pp. 27-29. 16. Papola, T.S (2012), “Structural Changes in the Indian Economy, Emerging Patterns and Implications”, Working Paper, New Delhi: Institutes for Studies in Industrial Development. 17. Robinson.J (2009), Industrial Policy and Development - Apolitical Economy Perspective, Clibrary: World Bank. 18. Snowden, N. (1977), “Company Savings in Kenya’s Manufacturing Sector”, in W.T Newlyn (ed.), The Financing of Economic Development, Oxford: Claredon Press, pp. 287-310. 19. Staley, E. &Morse, R. (1965), Modern Small Industry for Developing Countries, New York: McGraw-Hill. 20. Sutcliffe, R.B. (1971), Industry and Under Development, London: Addison Valley. 21. Syrquin. M & M. Chenery, (1989), “Three Decades of Industrialization”, The World Bank Economic Review, Vol. 3, No. 2, pp. 145-181. 22. Todaro, M. (2001), Economic Development in Third World, London: Londman. 23. UNIDO (1979a), “World Industry since 1960: Progress and Prospects”, New York: United Nations. 24. World Bank (various years), World Development Report, Oxford, Oxford University Press.

Chapter 15 Patenting Business Methods in India Ankita Mehta*

Business method patents are a class of licenses which reveal and assert new strategies for working together. This incorporates new sorts of web based business (e-commerce), banking and tax compliance and so on. Business method patents are generally new types of patent and there have been a few surveys examining the appropriateness of protecting business strategies. In any case, they have turned out to be critical resources for both autonomous creators and major corporations. Business Method Patents have additionally been a piece of global talks and the same have been incorporated into WIPO agreement. As per global characterization done by WIPO Business Method Patents are separated into various classes which fundamentally fall in G06Q class and are characterized as: ‘Data processing systems or methods, specially adapted for administrative, commercial, financial, managerial, supervisory or forecasting purposes; not otherwise provided for. ‘According to Indian Patent Act Chapter II, Section 3, part (k) of the Indian Patent Act, business methods are not patentable per se. However they are patentable if a new method solves a “technical” problem and an apparatus/system is involved.

Introduction Business Method Patents is a standout amongst the most stunning themes in the patent business however in India as indicated by the Indian patent Act and Rules these are not patentable. A business strategy might be characterized as “a technique for working any part of an economic enterprise “. As a matter of first importance let us observe some fundamental focuses identified with Business Method Patents and how these Patents help in enhancing/developing business for both free innovators and significant companies. Business Method Patents are a class of Patents which reveal and assert new techniques for working together and incorporate new kinds of web based business, protection, charge consistence and so forth. Business strategy licenses are generally new types of patent and there have been a few audits examining the suitability of protecting business techniques. Each organization has its own particular procedure and objectives and as needs be develops a way to deal with accomplish them. The approach may include technique for advertising their item, strategy for giving significance and weight age to their customer, technique for doing business exchanges including money related exchanges and other such related viewpoints. Organizations contribute immense measures of their assets to advance and grow new and one of kind frameworks. These organizations might want to guarantee that their imaginative strategies and approach is be ensured. Business Method Patents can be one method for ensuring such frameworks. Consequently Business Method Patents encourage innovators or organizations to counteract or stop their rivals or different firms from making utilization of their extraordinary thoughts and work. A forefront issue concerning business-technique licenses is whether they are patent-ineligible in light of the fact that they are not “technological,” paying little heed to whether they meet the other criteria of patent-qualification and patentability. *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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A business framework is a strategy for working a venture, or of handling budgetary or administration information, in a field of financial undertaking. This definition envelops regions, for example, exchange, executing, back, asset administration, showcasing and client benefit. ‘Business Methods’ includes entire extent of exercises in a business or mechanical undertaking identifying with exchange of products or administrations. A ‘business method’ is delegated a procedure of working together and furthermore it doesn’t result to unmistakable, solid item like a mechanical procedure or concoction process. The lawful circumstance in the matter of whether new business techniques are permitted as patentable topic fluctuates from purview to ward. Trade-Related Aspects of Intellectual Property Rights (TRIPS) does not specifically address business method patents. Preceding the Federal Circuit’s decision in State Street v. Signature Financial business methods were considered by numerous to be un-patentable. The United States Patent Office issued Signature Financial Group a patent entitled “Data Processing System for Hub and Spoke Financial Services Configuration.” More particularly, the patent covers a PC modified to actualize a speculation structure that was created by the patent proprietor to oversee shared assets. Under current law, business techniques are patentable topic in the USA inasmuch as they are executed on a machine (e.g., a computer) and result in a tangible transformation. In Europe in the event that they give a non-obvious “technical contribution“, which decreases the shot of licenses being allowed on minor calculations with no specialized impact or the conceding of “trivial” licenses with no creative advance. Under the European Patent Convention, “Plans, principles and strategies for… ... working together” are not viewed as being innovations and are not patentable, “to the degree that a European patent application or European patent identifies with such topic or exercises”. Be that as it may, if another technique tackles a specialized, instead of an absolutely regulatory, issue then it might for sure be patentable. The United States, Australia, Japan and Singapore are viewed as “places of refuge” for business strategy licenses. The circumstance in Canada, Korea and Taiwan isn’t clear. Patent insurance for business strategy licenses in Israel, China, India, Mexico, and the majority of Europe is troublesome. The need to give more grounded security to programming innovations has been the subject of civil argument both locally and around the globe. In India, the Patents Act was amended in 2002. The alterations rethink a “creation” as “another item or process including an imaginative advance and equipped for mechanical application”, in accordance with Article 27 of the TRIPs Agreement. All the more imperatively, another Section 3(k) was presented, giving that numerical and business strategies PC programs fundamentally and calculations are not viewed as patentable creations. In like manner, business techniques have been completely barred from patentability. The Indian Patent Office views a specific strategy as a business technique on the off chance that it includes a financial exchange or unimportant promoting or deal buy procedure. In this manner the issues in the Indian law emerge from the way that it orders programming essentially, as a business technique as well, as not patentable. Business method patents are intended to empower development for the most part in process however as of late there has been a ton of verbal confrontation encompassing business strategy or programming licenses and its patentability. This paper tries to see if business strategy licenses is helpful and proper methods for security framework when all is said in done and furthermore how as of now it is utilized as a part of the zone of Information Technology division particularly in India. This paper investigates ambit and extent of business technique licenses, key components of business strategy patent framework that have been proposed in writing and utilized as a part of IT industry. It likewise evokes the difficulties and condition of routine with regards to business technique licenses in programming industry with particular reference to Indian IT enterprises.

Protection under TRIPS TRIPS also provide subject matter for patent protection. Article 27, Section 1 of the agreement to Trade-Related Aspects of Intellectual Rights (TRIPS) provides that “licenses should be accessible for any innovations, regardless of whether items or procedures, in all fields of innovation, gave that they are new, include an inventive step and are fit for industrial application...” Further, Article 27 paragraph 2 of the TRIPS agreement licenses Members to “bar from patentability developments, the aversion inside their domain of the business misuse of which is important to secure request open or ethical quality, including to ensure human, creature or vegetation or wellbeing or to dodge genuine preference to the earth, gave that such rejection isn’t made just in light of the fact that the abuse is precluded by their law.”

Chapter 15: Patenting Business Methods in India89

Cases in which Business Method was upheld Idea of Business method patent is presently 10 years old. State Street case is a critical choice in such manner. Assist improvements have occurred after this judgment. Business Method was considered as an exceptional case to Patent security until 1998. The fundamental occasion of this kind was archived in the year 1908. In Hotel Security case the request was whether business systems can be said to be patentable. Here the case expelled its conflict being prepared for security and made a generally exclusion to business procedures. It was until year 1998 that this position was recognized.

State Street Bank v. Signature Financial Group, Inc. In the present case the District Court had rejected application for Business Method Patent on the said procedure of “center point and space”. However, Later the Federal Circuit affirmed that there is no administer which restricts the patentability of “business strategies.” The Court expressed, the judicially-made business strategy special case to patentability is an unjustifiable encumbrance to the meaning of statutory topic in section 101 that ought to be disposed of as mistake inclined, excess, and out of date. It merits retirement from the glossary of section 101. Patentability does not turn on whether the asserted strategy does “business” rather than something different, however on whether the technique, saw all in all, meets the prerequisites of patentability as put forward in Sections 102, 103, and 112 of the Patent Act. Federal Court additionally cleared up that it was never proposed that business strategies ought to be kept out of the topic. Or maybe in prior couple of cases assert was dismissed because of inadequacy of those strategies to be taken as creations. Consequently, State Street affirmed that business strategies can be protected in the event that they meet the statutory prerequisites of utility, novelty and non-obviousness.

Amazon.com Inc. v. Barnsandnoble.com For this situation a single tick patent to Amazon.com was reprimanded by couple of scholars on its ground being “impromptu change”. Here an order was conceded to Barnes and Noble for not utilizing the said highlight. This case unmistakably reflects downsides that can emerge in the event that a business patent is ensured in nations which are as yet building up their advances. Later piece of my paper manages weakness that giving a business strategy patent can have.

Amendments Brought After State Street Case Since the circumstance is clear as for business strategy licenses in US laws, one might say that business technique are fit for giving patent insurance. Yet, all together that no vagueness remains the USPTO freely declared that regarding conceding security adequate earlier craftsmanship hunt ought to be embraced.

Literature Review Gene Quinn (2015) led an examination on business strategy licenses that business strategies ended up patentable topic prompted a regularly expanding number of business technique applications being documented at the United States Patent Office. The volume of business strategy licenses wound up stunning, to a limited extent an element of the way that business techniques were just patentable in the United States and to a limited extent in light of the fact that for all intents and purposes everybody can think of a procedure that somehow encourages the doing of business; everybody could be an innovator. Kris Rhu & Paul Gurzo (2017) revealed that On December 2016 the USPTO distributed three topic qualification cases concentrating on business technique claims. The motivation behind these cases is to give direction on how cases ought to be examined utilizing the 2014 Interim Guidance on Subject Matter Eligibility, late Supreme Court and Federal Circuit choices, and late Memorandums distributed by the USPTO. These illustrations appear to demonstrate that the energy of §101 to confine patentability has been whittled down since Alice and that the USPTO might want to lessen the quantity of §101 dismissals for mechanical cases in light of court choices post-Alice. Underneath, we

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depict every illustration gave by the USPTO and clarify the USPTO direction for every case to help professionals with diminishing and defeating §101 dismissals. Maulin Shah & Bruce Berman (2015) carried out research that software and method patents may seem to have dropped out of support on account of ongoing court choices and enactment. In any case, ongoing patterns show that they include shockingly high bits of four US organizations’ ongoing gifts. Superior to half of the licenses issued to Google and Microsoft by the United States Patent and Trademark Office (USPTO) in 2014 were techniques related licenses, and more than 33% to IBM and one-quarter to Apple. This is as indicated by information gathered and examined by Envision IP, a law office represent considerable authority in patent research. Kate Gaudry (2017) led an exploration that in the years after the Alice decision, it had appeared as if inspectors in the business technique craftsmanship units felt just as their situation is practically hopeless as for issuing applications. Regardless of whether they had suggested an application for stipend, it was regularly sent back by quality audit with a sign that a patent-qualification dismissal ought to be made or kept up. Be that as it may, in mid 2017 – at any rate concerning a modest bunch of uses – analysts› points of view appear to have changed, where they were all the more ready to work with the candidates to discover qualified claim material and additionally appropriate contentions to be put on the record that would do the trick for a stipend.

Research Problem The objective of this research study is to know the scope of patent law in India with special reference to business method patents as they are still not considered patentable as other innovative ideas. Moreover, this research paper also focuses on the rules and regulation followed for patenting business method globally.

Methodology The current research is based on the secondary study, for which the data is collected from various websites, magazines, journals, newspapers and reading material available on the internet.

Findings Disadvantage of Granting a Business Method Patent 1. Once a patent is conceded for an innovation it is fit for securing the privileges of patentee for a time of 20 years. Along these lines it can be surely knew that if patent is conceded for a business strategy then it would hinder new innovative research for the following 20 years to come. 2. Giving a patent on business method would make a monopolistic circumstance which would impede development. It would mean an undesirable rivalry.

Advantage of Granting a Business Method Patent: 1. Copyright insurance is deficient to secure Business method. All Research and Development that is done requires that something progressively that Copyright assurance ought to be given keeping in mind the end goal to remunerate Business thoughts. 2. New businesses ought to be empowered. New organizations would profit with an idea of such kind. At first patent assurance to such beginning gatherings would profit them with a specific end goal to have a solid remain before effective organizations. Business strategy licenses make the counterfeit shortage expected to safeguard showcase control and reestablish the motivation to improve.

Recommendations & Conclusion The chapter here acknowledges allowing of business patent however not at the cost of innovative or practical development. In this way so as to profit both creator and other co-designers in line it is smarter to give patent insurance just for a constrained time of 3 years for Business method Patents. Thus law should help in sustaining a collaborative effort.

Chapter 15: Patenting Business Methods in India91 Change in the Patent System at USPTO is likewise required. The one sentence run ought to be killed in order to facilitate clearer dialect. In this manner, it would encourage patent examiners and furthermore leave less extension for manipulation by patent legal advisors. Additionally individual applying ought to uncover his PC code to the patent analyst. Compensation of Patent analysts ought to be expanded. Additionally USPTO should give rewards on dismissing a patent application as opposed to on tolerating it as prior said in paper. While more grounded security is required for programming developments in India, the patentability of such innovations stays questionable. There is a pressing need to make the patent framework straightforward on an impartial premise and to give innovation particular preparing to Patent Office authorities, in request to develop a wide and inspirational viewpoint. It is trusted that the legislature will quicken its endeavors to accomplish an agreement inside the product business – and further, that the patent administration will be reshaped for the advantage of the product business overall.

References 1. Dr. Samiya Tabasum, Intellectual Property Rights & Theories, University Book House, Jaipur. 2. Graham Dutfield, (2013), Collective Invention and Patent Law Individualism: Origins and Functions of the Inventor’s Right of Attribution, The WIPO Journal ANALYSIS OF INTELLECTUAL PROPERTY ISSUES, 25-34. 3. Kate Gaudry, (2017, May 25), Is there a Tide-Change in the Prospects of Patenting Business Method Innovations? Retrieved from http://www.ipwatchdog.com/2017/05/25/prospects-patenting-business-method-innovations/id=83693/ 4. Kris Rhu & Paul Gurzo, (2017, March 20)ok6Examining USPTO Business Method Patent Eligibility Examples, Retrieved from http://www.ipwatchdog.com/2017/03/20/examining-uspto-business-method-patent-eligible-examples/ id=79612/ 5. Gene Quinn, (2015, August 29), Patenting business methods and software still requires concrete and tangible descriptions, Retrieved from http://www.ipwatchdog.com/2015/08/29/patenting-business-methods-and-software/id=54576/ 6. Ali F.and Rajagopal, S (2017, December 27), How India rejects bad Patents, The Hindu. 7. Mcneil Jr. D (2005, March 24), India Alters Law on Drug Patents, The New York Times.

Chapter 16 Promoting Organizational Citizenship Behaviour (OCB) In Indian NGOs for Sustainable Development - A Theoretical Framework S Ahmed Mozumder* and Dr P.Ramlal**

This theoretical paper highlights on how to promote organizational citizenship behaviour among the employees of NGO’s. OCB can be defined as extra role behaviour or voluntary acts beyond the role specifications shown by employee in an organizational environment. It means anything that employee wants to do, instinctively and their own desire, which regularly lies outside of their stated duties and obligations. NGO’s are constituted for serving as the supportive agencies as well as pressure group for concern government policies and accomplishment of the social welfare goals.Theses are backbone for nation’s development and upliftment of society. Generally NGO’s employees are less privileged in terms of job satisfaction, salary and other benefits than corporate world employees in Indian scenario. There for OCB kind of behaviour is very hard to exhibit among employees of NGO’s. Many researchers have proved that OCB is significantly related to indicators of both individual and institutional performance. High employee turnover and low performance have been persistent issues for both international and local non-government organizations. Organ (1988) proposed five dimensions model of OCB consisting of altruism, civic virtue, conscientiousness, courtesy, and sportsmanship. Through this paper it’s also trying to frame some strategies in respect with all five dimensions of OCB which may help to management of NGO as well as other stake holders to promote OCB.

Introduction In this era of competitive business environment, war of talent, retention of intangible asset and knowledge driven economy, Human Resources Management (HRM) has gained importance more than ever before. This is because organizations have realized that the most precious resource today is the human capital, and accordingly, one of the most popularly used concept today in HRM is Organizational Citizenship Behaviour (OCB). In everywhere organizational structures may be flatter, or less emphasized, particularly in trivial- or medium sized businesses, it is significant to have upright relations among co-workers, employer and several stake holders. As a part of OCB, employees can take various environmental initiatives for sustainability of the organization as well as surroundings. Employees green initiation and involvement have generally been linked with numerous eco-friendly best performance and key success aspects. As concern to OCB among employees of NGOs, organization should promote strategically such kind of behaviour among the employees because it has the capacity to increase firm’s sustainability performance as well as environmental sustainability from the purview of meeting numerous stakeholders’ needs and requirements. So it’s a big challenge especially for HR department of the organization to identifying, analyzing and integrating of OCB with various functions of organization to promote sustainability through OCB in NGOs. Many research studies *Research Scholar, School of Management, National Institute of Technology, Warangal, Telangana. E-mail: [email protected] **Associate Professor, School of Management, National Institute of Technology, Warangal, Telangana. E-mail: [email protected]

Chapter 16: Promoting Organizational Citizenship Behaviour 93 have demonstrated the requirement of sustainable development, therefore, identify the need to link human resource activity and institutions to reach sustainability goal.

Need for the Study In every country NGOs are constituted for serving as the supportive agencies as well as pressure groups for concern government policies and accomplishment of the social welfare goals. NGOs are the important institutional players in non-formal involvements including health, education, gender inequality, environmental issues etc. In developing country like India, their role and contribution is very vital to widely cover and deliver quality service. NGOs are backbone for nation’s development and upliftment of the society. Generally NGO’s employees are less privileged in terms of job satisfaction, salary and other benefits than corporate world employees in Indian scenario. There for OCB is hard to exhibit among employees of NGOs. India has more than 31 Lakhs NGOs (The Indian Express Report, August 2015) and it is also stated that less than 10% of the NGOs have fulfilled with the requirement of submitting balance sheets and income-expenditure declarations with the Registrar of Societies. Most of the NGOs are very affected by workforce turnover and so the superiority of the service they provide to the beneficiaries is influenced. Employee turnover and retaining are also key subjects for nonprofit organizations (Emmens & Parry, 2006). In a research of employee turnover carried out on an American NGO, International Relief Committee, the results exposed that the reasons of workforce turnover are a combination of factors. Family issues, leadership crises, discontent with the job, better opportunity in other organizations, displeasure with the area, and educational opportunity are some of the reasons (Debebe, 2007). Therefore, there is a need to promote OCB among employees of NGOs for increasing of organizational performance as well as sustainable development.

Review of Literature Many research studies have already proved that OCB has the possibility to increase organizations sustainability performance. Hart & Milstein, (2003) highlighted that organizations need to reflect its acquaintance to sustainability in socio-economic and environmental viewpoints for current and forthcoming as way of producing sustainable standards that could act as an ordered worth set for staffs. Schwartz (1977) argued that altruistic behavior arises when individuals holds own standards with regard to exact behavior. These norms are moderated by the awareness of the result of engaging or not engaging with specific behavior. Scholars (Hopper & Nielson, 1991; Vining & Ebreo, 1992) established such reclaiming behavior can be forecasted by applying Schwartz’s model. Dodge (1997) stated that culture base performance models are frequently the benchmark for organizations to advance and nurture of pro-social citizenship behavior that promote feeling of belonging and bonds corporate members to serve collective goals of sustainability. Andersson & Bateman (2000) stated that workforce environmental creativities are generally considered to be one of the core success aspects in organizational greening. Boiral (2005) noted that research has established the adjacent association between worker initiatives and the environmental outcome of organizations. Researchers (Ramus 2001: Ramus and Killmer 2007:) stated that ‘Individual and discretionary behaviour comprise diverse kinds of initiatives, such as sharing knowledge to prevent pollution in the office, provide solutions aimed at decreasing waste, expressive the institutes at an environmental conference and cooperating with the environmental department to initiate green technology. Taking individually, these behaviour may seem secondary and ordinary. However, their raise throughout the organization can have a noteworthy influence and contribute to cultivating environmental performance. According to Boiral (2009), there numerous motives why OCB and Environments have to give attention in both research and exercise, comprising the variety of environmental issues, the confines of formal management systems, the role of tacit knowledge, the status of helping relationships and association in pollution prevention actions, social acceptability and the civic nature of voluntary ecological initiatives. Daily et al. (2009) mentioned that ‘‘the achievement of environmental programs may hinge on worker behaviour that is beyond the choice of official reward and performance evaluation systems.’’ Linnenluecke & Griffiths (2009) supported that social values and civic virtues while devising the term “sustainability culture”. Numerous sustainable works has given stress on organizational culture as it provides an initial path to HR and organizational behavior to inspect organization’s sustainable outcomes.

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Joseph (2011) outcomes of his study shown that worker perceptions of artistic climates are moderately related to pro-social behaviors. For workforces, working in organizations that endorse a creative climate relates to having helpful social-exchange relationships and intrinsic motivation to do their jobs. Furthermore, practical inferences from this study suggest that organizations benefit as well. Worker perceptions of organizations with climates encouragement and supporting creativity were strongly related to reports of artistic output and productivity.

Objectives of Study 1. To study various prevailing and probable antecedents of OCB. 2. To understand the role & benefits of OCB in NGOs. 3. To analyses and suggest some strategies for promoting OCB in NGOs for improvement of organizational performance & sustainable development with the help of conceptual model.

Methodology This theoretical research study is purely based on secondary data. Data were collected through extensive review of literature like previous journal, articles, various companies & NGOs website, magazine, newspaper etc.

Analysis and Discussion Through this theoretical paper, it is trying to identify various prevailing and probable antecedents along with the roles & benefits of Organizational Citizenship Behaviour in NGOs. A model has been framed to show how OCB may help to gain sustainable development with the help of strategic planning. 1. Prevailing and probable antecedents of OCB: OCB is the outcome of many factors or antecedents whether because of individual employee characteristics or organizational initiatives. Most of the time it is a reciprocal process. Followings are some of major antecedents and description of OCB in table format which were found out through extensive review of literature. Table 1: Antecedents of OCB Antecedents

Researcher

Year

Description

Job satisfaction

Organ and Ryan

1995

They Conducted a meta-analysis of 28 studies and got a modest association between job satisfaction and OCB.

Leadership

Podsakoff et al.

2000

Established that leader-member exchange was positively linked to altruism and an inclusive composite measure of OCB.

Motivation

Organ Penner et al. Piccolo and Colquitt

1990 1997 2006

Projected that an individual’s motives may relate to his or her OCB. They Revealed the impact of motivation on OCB: value expressiveness knowledge (self-concept) and (goal internalization) Follower intrinsic motivation is positively related to follower task performance and OCB.

Individual Disposition

Bateman and Organ

1983

Mentioned the cause of personality might forecast OCB was that people with certain personality traits might have higher tendency to be pleased with their job whereas people with other personality traits are likely to be less satisfied.

Role Perception Podsakoff et al.,

2000

Role clarity and role simplification are positively linked.

Group Characteristics

2006

4 factors have been recognized in this regards (Organ et al., 2006) – group cohesiveness (enables trust and satisfaction; wish to remain in group), teammember exchange (TMX) (effects motivation and group cohesiveness), group potency (generates synergy and enables cooperation) and perceived team support (concern for each other’s wellbeing). Enhancements in any of these four areas will lead to an increase in (co-worker directed) OCB, especially if the organization is group- and teamwork-oriented

Organ et al.,

Chapter 16: Promoting Organizational Citizenship Behaviour 95 In our observation following could be the probable antecedents of OCB along with above listed in NGOs. Table 2: Probable Antecedents of OCB in NGOs. Antecedents

Description

NGOs Vision & Mission

Employees are directed and motivated by organizational vision, mission & objectives. Though NGOs are non-profit organization but still objectives must be clear and specific to the societal issues so that employees become more motivated and ready to do more than minimum.

Inner Feelings of Employees Towards Society

NGOs are set up to solve societal cause. So if employees of NGOs are deeply concern about the society then they may ready to adjust many things like helping each other employees, resource sharing among themselves, adjust with minimum facilities and benefit etc.

Training & Awareness on Sustainability

Though OCB is voluntary or spontaneous behaviour shows by employee but if they become much more aware about to conservation of environment through training on environmental issues and sustainable development then there is more chances to exhibit such behaviour among them.

Work Place Environment

When work place is safe and every minimum facility is available then functions performed by employee become smooth and may carry out beyond the limit.

Job Enrichment & Job Enlargement

Those employees who are enthusiastic to get extra role or get additional task, responsibility, power, autonomy with their job then it motivates them to do their level of best as well as beyond stipulated job. So from these kinds of employees OCB is expectable.

Transparency

This is adept in corporations, organizations, managements, and groups. It directs an organization’s resolutions and policies on the disclosure of information to its employees and the public, or simply the proposed recipient of the information. So when employees are aware every decision or action plan of the organization, it will bring trustworthy, mutual understanding among employees and owner of the NGOs. It may effect on employees behaviour in terms of performance through the OCB.

2. Roles & benefits of Organizational Citizenship Behaviour in NGOs: Through the help of review of literature, the role & benefits of OCB has been written and some other probable benefits has also been mention from researcher observation. OCB has been shown to have an affirmative impression on employee performance and wellbeing, and this in turn has visible flow-on effects on the organization. Many studies have proved that satisfied workers perform better. Podsakoff et al., (2009) stated that employee who involve in OCB incline to obtain healthier performance ratings by their supervisors and OCB is connected to minor rates of employee turnover and absenteeism, but on the organizational level increased productivity, effectiveness and customer satisfaction, as well as reduced costs, have also been observed.. Podsakoff & Mackenzie (1997) noted that OCB significantly increase the steadiness of organizational performance and capability to adapt to environmental changes etc. Employees’ environmental creativities are usually considered to be one of the key success aspects in organizational greening (Andersson and Bateman 2000; Walley and Stubbs 2000; Daily et al. 2009). Several researches have confirmed the close association between employee initiatives and the environmental performance of organizations (Boiral 2005). Organ et al. (2006 noted the subsequent benefits which are can bring by OCB:  Improve efficiency  Free up resources  Helps to attract and retain good employees  Create social capital

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Other Probable Benefits of OCB in NGOs If employees of NGOs show OCB then it may bring various benefits whether directly or indirectly to the NGOs. In our observation following could be the benefits of OCB in NGOs but benefits are not confine up to these listed in below. a) Charity & Prosperity: NGOs are majorly working for charity and prosperity of the society and when employees are ready to do beyond or extra role apart from their job it directly effect on achieving the goal of NGOs and bring prosperity. b) Family Commitment of NGO employees: When employees are very much enthusiastic towards their work and concerned about sustainable development, it may encourage family member of the employee to serve the society in every possible means. c) Less Conflict & a Systematic Grievance Redressal Procedure: Most of the time OCB is outcome of individual attachment as well as group cohesiveness in an organization. So it is obvious that where employees’ cooperation with coworker or employer is smooth then it reduces the chance of conflict and even if any conflict arises they can redress it systematically. d) Succession Planning: With the help of OCB employee can learn new knowledge, skill, techniques, leadership quality etc. from their colleague or superior to perform the jobs. So when there is a succession decision, management may find suitable candidate in the organization itself without any difficulties. e) Societal Balance: Though OCB is voluntary act perform by the employees, still organization can provide training on extra role such as environmental awareness program, health, education etc. related issues to their employees so that they can disseminate the information or educate the common people of society regarding various relevant issues to create balance among the society. f) Discipline: OCB may help to maintain discipline in the organization. When employees are helping each other in various way, it create integrity, mutual trust among the employees and if organization focus on pro worker work environment then it is very easy to maintain discipline in the organization. As OCB is beyond extra role behaviour, so it means there is no need to remind their target or objectives, they are ready to do more than that. It may reduce absenteeism, late coming and various excuses related to job. 3. Suggesting strategies for promoting OCB in NGOs for improvement of organizational performance & sustainable development: Organization can improve or promote OCB among employees through various strategies. Following are some suggestions which may help to promote OCB in the organization. a) Corporate Parenting: A corporate parent is an organization or person in power who has important duties to take care and look after its employees. In simple terms, a corporate parent is proposed to carry out several of the roles a parent would. So if organization look after their employees like corporate parent and concern about all around development of employees then it will bring OCB among them. b) Acquiring & Nurturing Young Talents: However the influence of personality on Organizational Citizenship Behaviour is minor, an outbound, focused, excited worker with a confident outlook and ‘can do’ assertiveness will be more motivated to involve in OCB. So during selection process, should search out for characters related to OCB, and have these employee inspire others to show OCB. c) Socializing of working atmosphere: A employed atmosphere that encourages or is favorable to staffs signifying OCB. The work place would be friendly and easily accessible. d) Linking OCB with Performance Appraisal: Though OCB is voluntary act perform by employee and there is nothing expectation but if management of organization include OCB in their act evaluations, or devise their own casual/informal compensation system to inspire OCB it will give well outcomes. e) Linking of OCB with Sustainable Development: Though OCB is voluntary or spontaneous behaviour shows by employee but if they become much more aware about to conservation of environment through training on environmental issues and sustainable development then there is more chances to exhibit such behaviour among them. So there should be proper link between OCB & sustainable development.

Chapter 16: Promoting Organizational Citizenship Behaviour 97 f) Organizational justice: Organization should take utmost care of justice in the organization, there should not be any biasness. If unfair practices are there then it will not only lead to a reduction in OCB however may have additional problematic related to alleged unfairness such as increase in counterproductive conduct, so organization should make rules for equality to bring OCB. g) Habituation: If OCB is compensated frequently, OCB levels will increase throughout the organization the period. What was once considered OCB (e.g. working overtime) may become an internalized organizational standard, and is no longer impulsive and voluntary but expected by worker. h) Employee Empowerment: It means giving freedom to employees in their work. For example if employee gets freedom to share their resource among themselves or in terms of decision making, it will boost employee’s moral and then it may leads to OCB among employees. i) Transparency: It guides a company’s choices and rules on the revel of information to its staff and the civic, or simply the projected receiver of the information. So when employees are aware every decision or action plan of the organization, it will bring trustworthy, mutual understanding among employees and owner of the NGOs. It may effect on employees behaviour in terms of performance through the OCB. Following is a conceptual model of OCB which has shown how organization can benefited from it. The outcome or performance of the organization has been divided in three aspect such as individual outcome (what benefits will get individual employees because of OCB), organizational outcome (what benefits will achieve by organization through OCB) and sustainable outcome.

Figure 1: Conceptual Model Source: Authors Assumption based on literature

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Conclusion OCB is optional behavior that is not part of a worker’s formal job necessities, but that nonetheless stimulates the effective functioning of the companies. Fruitful organizations need workforce who willing to do more than their normal job, responsibilities and perform beyond expectations. In short, in order to reach that goal, organization must focus on employees’ satisfaction aspect positively. If organization able to promote OCB fully among every level of employees surely it will contribute more in employee performance, organizational performance and sustainable development. As concern to Indian NGOs, their performance is below the standard; therefore they should focus on OCB which will bring efficiency and sustainable development.

Reference 1. Andersson, L., & Bateman, T. (2000). Individual environmental initiative: Championing natural environmental issues in U.S. Business Organizations. Academy of Management Journal, 43(4), 548-570. 2. Boiral, O. (2002). Tacit knowledge and environmental management. Long Range Planning, 35(3), 291-317. 3. Daily, B. F., Bishop, J. W., & Govindarajulu, N. (2009). A conceptual model for organizational citizenship behavior directed toward the environment. Business and Society, 48(2), 243-256. 4. Dodge, J, 1997. Reassessing culture and strategy: Environmental improvement, structure, leadership and control. In Corporate Environmental Management 2: Culture and Organizations, Welford R (ed.).Earthscan: London; 104-126. 5. Hopper, J. R., & Nielsen, J. M. (1991). Recycling as altruistic behavior: Normative and behavioral strategies to expand participation in a community recycling program. Environment and Behavior, 23, 195-220. 6. Linnenluecke, M. & Griffiths, A., 2009. Corporate Sustainability and Organizational Culture. Journal of World Business. ELSEVIER. 7. Organ, D. W., Podsakoff, P. M., & MacKenzie, S. B. (2006). Organizational citizenship behavior: Its nature, antecedents, and consequences. Thousand Oaks, CA: Sage Publication. 8. Organ, D.W., 1988. Organizational Citizenship Behavior: The Good Soldier Syndrome. Lexington Books, Lexington, MA. 9. Ramus, C. A. (2001). Organizing support for employees: Encouraging creative ideas for environmental sustainability. California Management Review, 43(3), 85-103. 10. Ramus, C. A., & Killmer, A. B. (2007). Corporate greening through pro social extra role behaviours—A conceptual framework for employee motivation. Business Strategy and the Environment, 16(8), 554-570. 11. Schwartz, S.H., 1977. Normative influence on altruism. Advances in Experimental Social Psychology. 12. http://indianexpress.com/article/india/india-others/india-has-31-lakh-ngos-twice-the-number-of-schools-almost-twicenumber-of-policemen/ 13. http://www.cypcs.org.uk/news/in-the-news/corporate-parenting-what-it-is-and-why-it-matters

Chapter 17 Psychological Factor and Role of Interventions for Employees in an Organization Dr Sukhmani Singh* and Raskirat Kaur**

Highly satisfied, motivated and loyal employees signify the basis of competitive corporation. The advancement of satisfaction is to be mirrored in the increase of productivity, improvement of the products’ quality or rendered services and higher number of innovations within the organization. Generally, contented employees form positive reference to the organization and thus increase its attractiveness for possible job seekers and fortify its competitive position in the market. However, a large number of factors come together to determine a peculiar pattern of employee behavior in every organization. It is important to understand their behavior, which plays a vital role to determine the relative success of organization. This chapter aimed to analyze or understand the various psychological factors such as stress, motivation, expectations, skills and abilities hamper the potential and output of the employee. Psychological interventions, training and development in the field is important which aimed at bettering the performance of individuals and groups in organizational setting. Thus, training focuses on doing activities to develop employees for their current jobs and preparing them for future roles and responsibilities. It is a process transferring information and knowledge to employee. It is equipping employees to translate that information and knowledge into practice with a view to enhance their organizational effectiveness and productivity, and the quality of their output.

Introduction Hierarchical as often as possible go up against complex choices including weakness, tradeoffs, and broad results, anyway responding to such conditions in ordinary ways can be hampered by solitary boss’ mental controls. In spite of defenselessness and change, executives must evaluate options, consider tradeoffs, and predict aftereffects of choices that can have broad effects. With a swarm of time, cost, and getting ready necessities, pioneers frequently come up short in regards to soundness (Walk and Simon, 1958). Various managerial assignments and conditions can benefit by sorted out instruments and procedures for evaluating, encompassing, and dismembering decisions (Clemen and Kwit, 2001). At exhibit, the task of looking frameworks and devices of agent potential commencement in creating new musings and down to business affirmation of improvements is winding up more vital. The delegates’ accessibility to execute headways is coordinated by their perspective of the improvement methodology and the progression situation. It portrays their improvement vulnerability. With a particular true objective to grasp innovative direct of specialists it is basic to understand inconveniences and obstacles which creating agents meet, the explanations behind mental obstructions, et cetera. Amid the time spent headway, some psychological limits can be survived, while others, in reality, increase, which in the whole deal prompts the ascent and spread of disputes in the work environment. The significance of this point raises uncommon excitement among operators of the consistent world who examines distinctive sides and associations of the innovative direct of agents with various parts of their *Assistant Professor of Psychology, UILA, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor of Psychology, UITTR, Chandigarh University, Punjab. E-mail: [email protected]

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social and work life. Thusly, a social event of makers, for instance, De Jong, and Hartog pondered the impact of the activity direct of directors who are accountable for the improvement methods in hierarchical on the imaginative lead of laborers. The results demonstrate the importance of the separated associations. Pioneers affect specialists’ inventive direct both through their consider exercises importance to strengthen thought age and application and furthermore by their more wide, step by step lead. The authentic setting of authoritative is apparently as long as the verifiable scenery of mankind. Early authoritative like families or social events of searchers progressed into tribes, kingdoms and domains. The need to make due in an antagonistic world, to finish missions unreasonably great for a lone individual and to share uncommon resources, are just a bit of the reasons behind the making of early hierarchical. Our front line society and its rapidly making, complex advancement, which achieves the specialization of masters in amazingly restricted fields, made an additional clarification behind the nearness of authoritative. Most things and organizations today rely upon the consolidation of gear, programming, data and human capacity – a blend which a lone individual for the most part does not totally pro. Thusly, hierarchical as ace gatherings are made to battle in the present markets. Hierarchical expected to convey stock and ventures are as old as the pyramids in Egypt or the Sanctuary in Jerusalem. Both required the sorted out work of various people with a particular true objective to be capable. A hierarchical or authoritative is a component containing various people, for instance, a foundation or an association, which has a total target and is associated with an external circumstance. There are a collection of authentic sorts of hierarchical, including undertakings, governments, nonauthoritative, political hierarchical, worldwide authoritative, military, philanthropies, not-income driven authoritative, authoritative, cooperatives, and informative establishments. A creamer hierarchical is a body that works as a rule society part and the private territory at the same time, fulfilling open commitments and making business exhibit works out. A ponder association is a hierarchical involving volunteers. Such authoritative may have the ability to work without true blue traditions, dependent upon region, including easygoing clubs. Examination of legitimate direct is greatly interesting. It is the craftsmanship regarding understand, depict, measure and change solitary direct. Bundle of studies has been grasped in the field of legitimate lead and enormous written work is open, which ought to be inspected by authorities in the field of managing HR. Distinctive models and research instruments are available to investigate human lead. Distinctive fields like mind examine, social cerebrum science, humanities, humanism, administrative issues, money related issues, and helpful sciences have added to the field of hierarchical lead. Diverse models in the above fields have improved the examination of authoritative direct. It is the field of focus that investigates the impact on individuals, social affairs and various leveled structure have on solitary lead with the objective that the adapting so proficient can be sensibly balanced and associated for definitive ampleness. The examination of definitive direct relates to the examination of air, acknowledgment, learning, values at solitary level. The examination is endeavored identifying with supervising weight, conflicts, intergroup direct, fundamental initiative at amass level. Organization of advance, headway of progressive culture, arranging and updating of occupations, and distinctive definitive change methods are required to be endeavored by pioneers for various leveled reasonability. It is the obligation of the chiefs to create fitting frameworks to examine various leveled parts. The primary part is people. The examination of various leveled lead incorporates perceiving need scope of the overall public, regulating social relationship, understanding of individual targets and co-relating legitimate procedures fittingly. The second part understands of definitive structure and its adjustment in perspective of the need of awesome significance. Chairman should pick structure and assurance solidarity of summon, number of levels that may be required for convincing request and control. Correspondence, task of expert, all around described courses of action, rules, heading, structures, methods and systems

Role and significance of an employee in an organizational The introduction of the organizational on the HR swung to be one of the key assignments of key administration and HR assume imperative part in every key choice. As Boudreau and Ramstad (2007) introduce: “Regardless of whether it is called “individuals,” “work,” “scholarly capital,” “human capital,” “HR,” “ability,” or some other term, the asset that exists in representatives and how they are sorted out is progressively perceived as basic to vital achievement and upper hand. Di Vanna and Rogers (2005) determine human capital structure, as delineated in Figure 1.

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Figure 1 Assessments of workers with respect to the organizational can bolster the organizational for the correct advancement and course. Following the previously mentioned there are factors which impact the execution of the worker and that is: 1. Both heading correspondence amongst unrivaled and subordinate. Over half of the representatives view the reality as educated to be an essential piece of their working execution. The outcome over half affirms the speculation No 1, i.e. that two-path stream of data amongst administration and representatives ought to be a segment some portion of each organizational way of life particularly on the off chance that that organizational means to build its execution. 2. Co-choice and commitment into the basic leadership process. 33.3% of the representatives view that factor as imperative one and 20.8% of the workers view it as essential. 3. Cooperation with coordinate better and support of the workers than satisfy undertakings. 4. Knowledge of the organizational system or all the more absolutely vision of the organizational, where the organizational is heading in here and now or all the more exactly long haul and in the meantime the learning of past periods comes about (72.7%). 5. Support of vocation development and training of workers. Representatives (70.8%) express that help of individual improvement or all the more exactly self-improvement fundamentally impacts working execution. This outcome appears and affirms the theory No 2 that if the individual arrangement is set effectively, i.e. individual arrangement even incorporates the help of possess representatives self-awareness, the inspiration of workers can be expanded. 6. Cooperation in the division or all the more absolutely among offices is thought to be an unequivocal factor which ensures effective working execution of the representative. As opposed to Borsíková (2008) (Gabcanova, 2011), the wage has not been the motivating force to achieve better working outcomes for quite a while in view of the examination. Non-financial types of inspiration are getting there in front of the pack. Agreeing the exploration interior correspondence, self-awareness and representatives’ instruction are the components of non-financial inspiration. Previously mentioned outcomes affirm the theory No 3 that money related inspiration is just a fleeting variable which impacts the execution of representatives. Organizational still contemplate with the need to put current dollars in preparing and affirmation forms, instead of here and now settles that tend to increase the value of our industry’s prosperity. Anybody dealing with a multi-million dollar open travel task today understands that this industry utilizes more than 450,000 individuals in North America and moves more than four billion individuals every year. Guaranteeing our workers have the devices should have been effective, enhancing their abilities through preparing and administrative devotion that will pay profits. Numerous pioneers think little of the significance of planning an organizational future in view of this. Nonetheless, I challenge our pioneers to find a way to have the objectives of preparing, advancement, and acknowledgment as a major aspect of our industry’s method for working (Stumpo, 2001). Organizational today comprehend that in information driven economy, speed in taking choices, effective strategies for working and creative thoughts enable them to pick up an edge over contenders. This view point that organizational is embracing a methodology of representative strengthening. “Worker strengthening” is a term that is utilized to express the manners by which non-administrative staff individuals can settle on choices without counseling their supervisors or directors. These choices can be little or huge, contingent on the level of energy with

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which the organizational wishes to contribute workers. Engaged representatives are not only pleased with their work they are more profitable than their weakened associates. When all is said in done, they are likewise more fulfilled, so they acquire more business by making clients more joyful, which converts into more prominent benefits. This remains constant in both the individual and aggregate detects. From a monetary viewpoint, representative strengthening is great business. Engaging representative’s prompts hierarchical consolation of entrepreneurial attributes and prompts workers to decide, make a move, and cultivate their conviction that they can take control of their own predeterminations. This conviction prompts self-inspiration and a feeling of autonomy that is converted into more noteworthy unwaveringness and additional exertion for the organizational. Engaged representatives come to trust that they control their own prosperity through their endeavors and diligent work, which thusly benefits the achievement of the whole establishment (Ramesh and Kumar, 2014). Psychological factors that enhance worker execution Human lead is the limit of Individual and Condition in which he/she is working. The going with two factors, exhaustively, overwhelmingly affects the individual direct which is the overall public around and nature of the workplace. a) Resilience – An interconnected world spots elite prerequisites on individuals. Working sufficiently to meet these wants requires adaptability, among various properties. Thusly, flexibility has gone into the space of various leveled and building organization. In any case, there are broad complexities among the couple of definitions and research streams concerning adaptability. A built up examine stream on strength exists in a few orders including youthful brain science (Haase, 2004), emotional well-being. The exemplary examination in flexibility is a 32-year exertion drove by Werner (1993), after 698 kids conceived on Hawaii’s island of Kauai. Her investigation members were presented to prenatal pressure, destitution, and a “family situation agitated by perpetual friction and parental psychopathology”. Her work surfaced the utilization of defensive factors because of unfavorable conditions by kids confronting these circumstances and energized resulting work by scientists endeavoring to manufacture legitimate and solid estimation instruments to describe a person’s level of flexibility. This examination has propelled understanding of flexibility in people being dealt with for extraordinary conditions, frequently identified with their emotional wellness. Work environments can advance flexibility in their representatives. The report prescribes the accompanying procedures: Flexibility preparing programs-These sorts of projects can assist you with dealing with business related burdens and difficulties in a way that is better for your psychological wellness. Training and tutoring Coaching and tutoring are particular connections that are useful in creating versatility. Instructing centers around change in current execution, expertise and prosperity while tutoring underpins longerterm aptitudes and vocation improvement. Physical movement programs-It’s notable exercise is useful for your emotional wellness, but on the other hand proves advancing physical action in the working environment can help enhance worker psychological well-being and flexibility. b) Personality There are five imperative estimations to be dependable sections of character. The Enormous Five personality estimations are dependability, extroversion/internal directedness, and responsiveness to understanding, eager security, and loveliness. Dependability - described as being strong and attempted and genuine, being mindful and dealt with, and taking care of business that plans - is the estimation most unequivocally associated with work execution. Extroversion/examination implies how much a man is pleasant, garrulous, confident, dynamic, and forceful. Responsiveness to experience is the amount some individual is innovative, dynamic, curious, and searches for new experiences. Energetic soundness is the amount some person is eager, demoralized, irate, and unverifiable. Fittingness insinuates how much a man is deferential, friendly, well meaning, and versatile. Directors must remember that the significance of any personality estimation depends upon the condition, the sort of business, and the level at which a man is working. Four character characteristics that have been dependably related to business related lead are locus of control, self-checking, and Machiavellianism. Locus of control shows a man’s sentiment of control over his/her life, the earth, and outside events. Those with an internal locus of control assume that their exercises impact the final product for them, while those with an external locus of control assume that outside

Chapter 17: Psychological Factor and Role of Interventions for Employees in an Organization103 components impact the final product for them. People who show attempt to achieve more in less and less time in a plainly anxious mission for everything. Individuals feel mind blowing time sincerity, are extraordinarily forceful, attempt to do various things promptly, and are opposing. Self-watching, the fourth personality quality is how much people are prepared for examining and using signals from nature to choose their own direct. Strong self-watching capacities can energize chiefs and laborers read biological and solitary flags quickly and correctly and alter lead as necessities. People with parts of a Cunning personality put self-energy over the social occasion’s preferences and control others for singular get. c) Motivation – Starting from Dwight D. Eisenhower’s declaration, “Motivation is the strength of moving people to do what you require them to would in light of the way that they jump at the chance to do it”, and examining it all around, we accomplish the conclusion that motivation, the capacity to affect people and their exercises is a workmanship that promotes various attributes. Building up the above, we may express that only one out of every odd individual can animate, but instead anyone can be propelled in various structures and ways. Knowing the potential results and kinds of reasoning which fit each specialist, as demonstrated by their wants and interests, we can stimulate the yearning to require more, in this way, the drive limit will occur in the best conditions for both delegate and companions. At one time, agents were seen as essentially one more commitment to the formation of stock and endeavors Inspiration is the course of action of states of the individual’s needs that require to be satisfied and thusly pushes, prompts and makes the individual play out a movement of exercises with a particular ultimate objective to satisfy them. To the exclusion of everything else, the motivational structure is proposed to meet all the employees’ needs. At the point when their satisfaction is fulfilled, the laborers will watch out for format a self-sufficient association between their programmed wish of playing out the master development and their perspective. Pondering this, the authoritative will get an important preferred standpoint from its employees’ displays. Specific research underlines that, in any activity, poor human motivation prompts the usage of only 20-30% of the point of confinement of the individual, while a strong motivation recovers 80-90% of their potential. (Achim, Dragolea and Balan, 2013) d) Control and affirmation – Affirmation is pondered confirmation or a remarkable notice or thought. In a reward and affirmation programs must impact direct quantifiably, upgrade comes to fruition and pass on both generous and slippery respects that everyone can pick up and that everyone increases in value. Remembering that: 1. People should like what they get; and 2. The affiliation should benefit by a more positive workforce. So likewise, the overall public in the affiliation must know where they remain reliably appeared differently in relation to the benchmarks through info. The target for both can be summed up in the going with condition: Right Rewards - Correct Human Right Reasons = Right Outcomes. A better than average reward and affirmation structure is a “pulling” framework. It moves people into it since they see what is being compensated and recalled that, it feels extraordinary to be a bit of both the tolerant (and preferably the giving) of the prizes and affirmation, and they should be a bit of it. Regardless, analyze exhibits that practices take around 20 attempts before they are acclimatized in a man’s standard illustrations. By the day’s end, to totally consolidate people into this kind of culture, both resilience and consistency are anticipated from the affiliation. a) Work-life balance: Work life adjust (acronym WLB) is the partition between work life and individual life of a worker in the association. It is the limit that one makes between the proficient life, professional success, individual life or whatever other portion that makes up the life of a person. Separated from the profession life these sections incorporate family, self-improvement, wellness and wellbeing, group relations and companionship. Finding the harmony amongst profession and individual life has dependably been a test for working individuals. Some generally utilized meanings of work and family issues or work-family adjust, found in the writing, and are recorded beneath. “Work-family

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strife is characterized as a shape of part strife portrayed by the incongruence between duties of the home and work environment which are commonly contradictory”. (Greenhaus and Beutell, 1985) WLB is characterized as “fulfillment and great working at work and at home with at least of part strife” (Clark, 2000).WLB is characterized as “the nonattendance of unsatisfactory level of contentions between work and nonwork requests. (Greenbatt, 2003).Work life adjusts as “the degree to which an individual is similarly occupied with – and similarly happy with – his or her work part furthermore, family part” (Greenhaus et al, 2003). Work life adjust is “the degree to which an individual’s viability and fulfillment in work and family parts are perfect with the individual’s life needs. Work– family adjust is characterized “as achievement of part related desires that are arranged and shared between an individual and his or her part related accomplices in the work and family areas” (Grzywacz and Carlson, 2007).

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Figure 2: Process for Setting up an Acknowledgment Framework

Role of mediations “Learning is a way of life in affiliations,” says Eduardo Salas, a psychological analyst from the University of Central Florida. “Everyone gets planning. Nevertheless, what is critical? What works? What impacts acknowledging and capacity acquirement?” In another report conveyed in Psychological Science in the Public Interest, a journal of the Association for Psychological Science, Salas and co-makers reason that when this money is well spent, “planning and headway practices empower relationship to alter, fight, surpass desires, create, convey, be protected, upgrade organization and accomplish goals.” A champion among the most basic things that “matters”, the experts found in their survey of the enormous intelligent composition on the investigation of getting ready is that human resource overseers, head learning officers and business pioneers should see setting up all things considered system and not a one-time event. This infers what happens when the veritable getting ready is comparably as crucial as the readiness itself. • Training is especially effective when distinctive occupations in the affiliation have been poor down, the scopes of capacities of its specialists are appreciated, boss and pioneers are all in understanding and understudies are energized to learn.

Chapter 17: Psychological Factor and Role of Interventions for Employees in an Organization105 • During the planning, paying little mind to whether it is PC and development based or in a classroom, sufficient structure and heading should be offered to understudies while so far giving those odds to settle on decisions about their learning information. • After the planning, understudies should have plentiful time and opportunities to use what they have acknowledged in all actuality with authentic feedback. The individual ascribes that understudies pass on to a learning area have showed up by mental specialists to be indispensable to consider. • Trainees who assume that their abilities truly affect getting ready outcomes will most likely hang on in learning works out, despite when they encounter challenges. • Trainees who are organized toward predominance or learning may perform better when they can control how they research and form getting ready material • Trainees who are masterminded toward execution seem to enhance the circumstance in extremely sorted out conditions that incorporate logically more astounding errands. The more broad mental examination of learning can moreover enlighten ground-breaking getting ready projects. Research exhibits that a gap exists between execution in planning and the joining of as of late learned aptitudes at work. Regardless, that opening can be restricted using distinctive tentatively attempted bits of information into learning. • Repeating errands inside logically puzzled settings ensures that learning continues pursuing some time. • Encountering botches in the midst of getting ready prepares understudies for honest to goodness conditions as they are required to apply thoughts learned in planning. • Watching someone else play out particular aptitudes can in like manner add to taking in, a thought specialists insinuate as lead part illustrating. Notwithstanding the wealth of judicious and coherent research in this field, as Paul W Thayer, instructor of cerebrum look into from North Carolina State University in Raleigh points out in his publication running with the article, “There is so far a tendency in business, government, and the academic network to get programs in light of negligible more than charm, modishness, or an aching to remain mindful of others in the field.” Salas and his partners have tips for policymakers who may need to study capacities over an entire country or geographic locale, and whose goals will likely consolidate aptitudes that are relevant to various occupations to ease specialist trades. Working up an especially masterminded work pool can attract authoritative, give occupations, and addition force in a given district or industry. In light of this, the makers underscore that “organization should not to progress or placing assets into getting ready undertakings that disregard to solidify the measures of good planning.” Policymakers can use the acknowledged systems of getting ready appraisal to examine sponsored planning programs for inefficient angles and choose if those ventures still authenticity financing.

Preparing Various new hierarchical clinicians are pulled in to this distinguishing strength in the field of planning and change. Preparing incorporates supporting overseers, business visionaries and others to accomplish their full employment potential. Generally a directing position and everything thought of it as licenses hierarchical clinicians to work with various people in different parts of the business world; thusly it can be a to a great degree interesting distinguishing strength. A preparation occupation can similarly join going about as an expert that is enrolled by various authoritative to perceive and select pioneers from the present pool of delegates. The consultant is then given the commitment of making and training the likelihood to enable their smooth change to the higher position. In such way the Coaching expert is also going about as a guide and educator to the person who is being prepared for an official position. While various non-degreed business preparing authorities exist in this market, a hierarchical specialist is considered to have the high abilities and direction imperative to play out this movement to its most astonishing standard. Various immense authoritative won’t get a business coach except if they have a Master’s degree in the field. Preparing can happen up close and personal, by phone, and through remotely planning. The cash related pay for a proficient business coach can be high.

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Planning Focusing on a specialization in planning can be different and interesting for a hierarchical examiner. This domain in a general sense includes setting up planning needs and realizing distinctive undertakings to help move the aptitudes, dominance, and preparing of specialists. So also similarly as with preparing, various positions and openings exist for free directing. Of course, positions may be had with one authoritative, regularly in Human Resources. Getting ready specialists use various strategies to develop planning needs; some of which fuse reviews, singular gatherings, work examination, and recognition. This is by and large an on-going technique as planning needs will change from year to year. Getting ready specialists are similarly blamed for making distinctive undertakings that are sensible and gainful to agents. A couple of undertakings and getting ready commitments may fuse e-learning, in-house classes, off-site classroom planning, CBT (PC based getting ready), and standard school classes.

Instructional Design Instructional arrangement is described from different viewpoints it resembles getting ready and change; in any case, it focuses more on definitive structure and completing learning systems into affiliations. In this way, a hierarchical clinician who invests huge energy here would be more required with the masterminding and meaning of instructional materials and learning. Instructional arrangement may be executed in schools, universities, and hierarchical. There is less relationship with understudies and more contact with educators and facilitators around there.

Organization Training The readiness and making of executives is more included and specific than more broad areas of getting ready. While preparing may be equipped towards official level agents, boss have their own specific remarkable needs regarding their positions. They are every now and again the inside people or contacts between upper organization and care staff. Managers are given a considerable measure of obligation inside hierarchical and affiliations including settling on fundamental decisions reliably. Most hierarchical offer remarkable planning for their organization gatherings. The authoritative experts are stressed over preparing this kind of getting ready for the specific commitments and obligations that a chief will look constantly. They are moreover arranged on the most capable technique to authentically deal with the people who work under them and given motivational heading. Getting ready and change is a broad and varied zone of focus inside hierarchical cerebrum science. There are various options and employment courses available here for the people who are involved with growing the advantages of affiliations and the people who work for them. Directing is routinely a probability for a noteworthy number of these areas, thusly, if working for various authoritative rather than one affiliation is addressing you, by then this is a region you should consider.

Conclusion The field of hierarchical conduct looks to supplant instinctive clarifications, for example, this case with deliberate investigation. The target, of this paper, is to reach more exact determinations (Wilson, 2008). The practices that get the main part of consideration in hierarchical conduct are three, which have ended up being critical determinants of representative execution. They are profitability, non-appearance, and turnover (Wilson, 2008). On the off chance that representatives feel great in my organization, they will without a doubt deal with my clients”. This should be one of the standards an administrator must form his/hers motivational framework. Yerkes-Dodson’s law ought not be overlooked: the execution becomes through expanding the inspiration, however just as far as possible. Surpassing that cutoff can prompt a reduction of productivity (the harmony amongst generation and creation limit will be bothered). The best possible employees’ inspiration is thought to be a philosophical administration issue, in regards to the associations with the subordinates.

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References 1. Achim, I. M., Dragolea, L., & Balan, G. (2013). The importance of employee motivation to increase organizational performance. Annales universitatis apulensis: Series oeconomica, 15(2), 685. 2. Benea, M. C. (2008). Internal marketing and performance in services organizations. ACTA TECHNICA CORVINIENSIS/ tome, 1. 3. Boudreau, J. W., & Ramstad, P. M. (2007). Beyond HR: The new science of human capital. Harvard Business Press. 4. Clemen, R. T., & Kwit, R. C. (2001). The value of decision analysis at Eastman Kodak Company, 1990-1999. Interfaces, 31(5), 74-92. 5. Darmon, R. Y. (1974). Salesmen’s response to financial incentives: an empirical study. Journal of Marketing Research, 418-426. 6. Das, R. C. (Ed.). (2016). Handbook of Research on Global Indicators of Economic and Political Convergence. IGI Global. 7. De Jong, J. P., & Den Hartog, D. N. (2007). How leaders influence employees’ innovative behaviour. European Journal of innovation management, 10(1), 41-64. 8. Denton, D. K., & Wisdom, B. L. (1991). The learning organization involves the entire work force. Quality Progress, 24(12), 69-72. 9. DiVanna, J., & Rogers, J. (2005). People-the new asset on the balance sheet. Springer. 10. Gabčanová, I. V. E. T. A. (2011). The employees–the most important asset in the organizations. Human Resources Management & Ergonomics, 5(1), 30-33. 11. Green, T. (2000). Three Steps to Motivating Employees. HR Magazine, 45(11), 155-157. 12. Greenhaus, J. H., & Beutell, N. J. (1985). Sources of conflict between work and family roles. Academy of management review, 10(1), 76-88. 13. Greenhaus, J.H., Collins, K.M., & Shaw, J.D. (2003). The relation between work-family balance and quality of life. Journal of Vocational Behavior, 63. 14. Haase, J. E. (2004). The adolescent resilience model as a guide to interventions. Journal of Pediatric Oncology Nursing, 21(5), 289-299. 15. Haynes, B. P. (2008). An evaluation of the impact of the office environment on productivity. Facilities, 26(5/6), 178-195. 16. Janssen, O., & Van Yperen, N. W. (2004). Employees’ goal orientations, the quality of leader-member exchange, and the outcomes of job performance and job satisfaction. Academy of management journal, 47(3), 368-384. 17. Jobber, D., & Lee, R. (1994). A comparison of the perceptions of sales management and salespeople towards sales force motivation and demotivation. Journal of Marketing Management, 10(4), 325-332. 18. Kondalkar, V. G. (2013). Organization effectiveness and change management. PHI Learning Pvt. Ltd. 19. March, J. G., & Simon, H. A. (1958). Organizations Wiley. New York, 262. 20. Ramesh, R., & Kumar, K. S. (2014). Role of Employee Empowerment in Organizational Development. International Journal of scientific research and management (IJSRM), 2(8), 1241-1245. 21. Stumpo, D. M. (2001, May). Performance Beyond Words: Are Employees Most Important?. In Bus and Paratransit Conference American Public Transportation Association. 22. Werner, E. E. (1993). Risk, resilience, and recovery: Perspectives from the Kauai Longitudinal Study. Development and psychopathology, 5(4), 503-515. 23. Wayne, J. H., Grzywacz, J. G., Carlson, D. S., & Kacmar, K. M. (2007). Work–family facilitation: A theoretical explanation and model of primary antecedents and consequences. Human resource management review, 17(1), 63-76. 24. Wilson, S. B., & Dobson, M. S. (2008). Goal setting: How to create an action plan and achieve your goals. AMACOM Div American Mgmt Assn.

Chapter 18 Spiritual Approach of Leadership in Educational Management Kamal Batta*, Dr. Praveen Kumar**, Veena Panjwani*** and Dr. Rupali Arora****

Education is considered as potential element for development of society. It is perhaps fourth need of human being. But it is examined that the current education system is examination based, job oriented and market regulated. It deals with external life only. There is no relation with inner being. It does not satisfy the true needs of the individual. It generates more gaps in individual and society also. In consequence, day to day human being is becoming more unstable. Anxiety, tension, worry, conflict, sufferings, unfairness and obstacles are felt acutely. There is more compartmentalization of subjects but no synchronization. How to cope up with these challenges? This is a great query. Hence, conscious citizens turn their faces towards ‘ethical’ and ‘holistic’ approach of learning and management. These terms are based on spirituality. Spiritual management needs spiritual leaders. A Spiritual educational leader can generate an environment by his actions and behaviors to inspire his colleagues, students and parents (stake holders). He must have reliability, keenness, self-assessment and aspiration for harmonious life styles. He should have a good character, integrity and intellectual honesty, selfless and objectivity. First he must form a positive attitude to develop his consciousness. He must aspire to invoke Divine grace towards progress & welfare of his institution or profession. The secret of effective functioning of schools depends on leadership of school heads to identify best in others and enabling them to constitute to carryout tasks facilitating achievement of goals. Leadership is good, Transformational leadership is very good and Spiritual leadership is excellent. It provides excellent result. From ancient time to modern time it has been observed that, Spiritual leadership provides wellbeing of individuals, societies and nations of the world. It is certain that spiritual leadership improves any organization. It is experimental fact. All educational institutions can reward this opportunity for their wholesome development.

Introduction Education is considered as potential element for development of society. It is perhaps fourth need of human being. But it is observed that the current education system is examination based, job oriented and market regulated. It deals with external life only. There is no relation with inner being. It does not satisfy the true needs of the individual. It generates more gaps in individual and society also. It appears wayward. In consequence, day to day human being is becoming more unbalanced. Anxiety, tension, worry, conflict, sufferings, unfairness and hindrances are felt acutely. It is felt that the prevailing education has length and breadth but no depth. There are many compartmentalization of subjects but no synchronization. How to cope with these challenges? This is a great query. Hence, conscious citizens turn their faces *Assistant Professor, University School of Business, Chandigarh University. E-mail: [email protected] **Assistant Professor, University School of Business, Chandigarh University. E-mail: [email protected] ***Assistant Professor, University School of Business, Chandigarh University. E-mail: [email protected] ****Associate Professor, University School of Business, Chandigarh University. E-mail: [email protected]

Chapter 18: Spiritual Approach of Leadership in Educational Management 109 towards ‘ethical’ and ‘holistic’ approach of learning and management. These terms are based on spirituality. Spiritual management needs spiritual leaders. Hence the paper is selected.

Meaning and Concept of Management The concept of management is broad and multifaceted, comprehensive, inclusive and complex in understanding, in composition, in structure, and in application. It is an art, science, technology and even philosophy, all merging together. It maintains high standards of quality, productivity, sustainability and efficiency. MC Farland has attempted to define the management. “Management is that process by which managers create, direct, maintain and operate purposive organisation through systematic, coordinated and cooperative human efforts”. Management may precisely define as (F W Taylor) ““Management is an art of knowing what is to be done and seeing that it is done in the best possible manner.” Management is an activity in which the utilization of human and non human recourses in an effective and a systematic manner which leads to accomplished work.

Educational Management In educational institution, management can act as the organizational process for formulating objectives acquiring the resources and make sure that the goals are truly achieved. It is a ongoing procedure through which associates of the educational institutions seek to organize various activities and use their resources that leads to accomplish the different tasks of the institution. It is a process through which individuals seeks to unearth educational goals and find out the best methods to convey the educational programs, along with complete the task to get effectiveness outcomes. Management delivers inputs to the educational institutions, and establishes a system of topdown supervision in an effort to ensure that the inputs are correctly deployed according to guidelines. The functional responsibilities of the management determine the failure and success of the educational institution.

Leadership in Educational Management It can be defined as process of influencing and directing group associates to attain the group’s goals. Healthy organizations need both effective leadership and good management. Some consider it as Divine or innate qualities (Trait approach), while other consider that it is result of social phenomena (situational approach). Some traits of leadership are: flexibility, a high intensity of individual drive, charisma, creativity, the wish to escort, self confidence, analytical ability, personal integrity and knowledge of the entire industry. The function of leader is to take his subordinates to their desired goals. It focuses on innovation, originality, development, long range perspective, people, inspiration, the horizon, his own person & doing the right things.

Transformational Leadership in Educational Management There is crisis of good leadership in all spheres of education. But effective leaders exceptionally few in number can be groomed to become transformational which will have a multiplier effect. The secret of effective functioning of schools depends on leadership of school heads to identify best in others and enabling them to constitute to carryout tasks facilitating achievement of goals. Once this is done, transformational educational leadership sets in taking over charge to make things happen and lead the school to enhance performance and continuous improvement by creation of a positive climate for making schools receptive to emerging demands and expectations of more conscious urban clientele. Hence developing transformational leadership is very essential. It is through the adoption of transformational approach that effective leaders can implement education policies into practical realities. Burns (1978) describes the concept of transformational headship as “a flow of indulging interrelationships in which heads are consistently involving motivational outputs from the others and change their behavior as they gather the results in an effective and efficient way”. Yuki (1989) advocates that transformational mentorship can be examined both as “small intensity process of individuals and small level manipulate process to activate power to alter social system and institutions” According to Bass (1985) “Transformational leaders influence followers by arising strong emotions and identification with the leaders, but they may also transform followers by securing as a couch,

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teacher and mentor.” Good lead (1990 : P27) asserts that transformational of leadership which helps for effective decision making, solving problems, planning for the future, communicating successfully, managing time efficiently and managing politics. Hence, the position school leads as educational leaders have become quite demanding as they are the ones who are expected to lay good systems and workable procedures within their school by re-organising their thinking and styles of functioning. Cambron and Cabe (1999) expressed the need to “re conceptualize school leadership fundamentally and radically.”

Functions of Transformational Leadership • • • • • • • • • • •

Understanding the School Situational Analysis Understanding others and self Creating School based vision Building Team Concept Development of Positive Outlook Providing Positive and Inspiring Feedback Modeling the Values of Vision Exchange and Share of Vision Cultivating a Climate of Risk Taking Speed against Perfection

Spiritual Approach of Leadership in Educational Management It is quite obvious that transformational leadership is more positive than ordinary leadership. But research is not ended here. Human’s wants are unlimited. He does not satisfy with such result. He enquires more and more. He wants to ride the next step of leadership. Some say that the next one is Spiritual aspect of leadership. Now it is being discussed somewhere. Let us discuss about it. Any good management aspires to achieve high degree of performance and productivity with peace and growth with harmony. One school of management says, production is increased by material incentives. Another school says, it is increased rather by impulsion of political and social idealism. But Gupta (2009, P.132) says, ‘spiritual approach of management based on consciousness-from within-to-without management-that stimulates real prosperity’. Modern management is materialistic, professional and felt as soulless. It is a technique imported from West. They concentrate on ‘production targets’ and ‘profit and loss account’. The maximizing of profit becomes the ultimate goal. Regarding this Capra Fritjof (1987) says; “This skill is smoothly divided rather than holistic, twisted on check and organize rather than support, self-assertive rather than reliability, and appropriate for federal management rather than regional function by individuals and modest groups. As an outcome the skill has turn into anti-ecological, anti-social, unhealthy and inhuman.” This materialistic management has lost belongingness, harmony, cooperation, fellow feelings, and as a whole the human values. On the other hand it generates conflicts, violence, strikes and breakdowns in industry or institution. The manager earns some dollars at the cost of his peace and harmony. He suffers from diseases and mental discomforts. Labour problems, loss of production, market declination, tax measures and reduction of profits hunt his brain, generate unrest, sleeplessness and make reliant on medicine. A good management needs a good manager or leader. A spiritual leader must have heightened consciousness who will dedicate himself to his profession. He must be a self-realized personality. Self-realization enhances selfmanagement. A self-managed person can lead others and manage institution properly. He is more stable and charged who can influence others. He generates positive climate by his positive thinking. He loves and respects both animate and inanimate objects. He deals with peace, truth, knowledge, power, beauty, love and bliss. There are number of (saints) spiritual leaders in the earth who are the glowing examples. There are innumerable scriptures available in our society, which give wide knowledge regarding this. If it is practiced sincerely it will give positive result. It increases belongingness, harmony, cooperation, fellow feelings, and as a whole the human values. It is experimental fact. The researcher has been practicing it for twenty five years. The result is wonderful.

Chapter 18: Spiritual Approach of Leadership in Educational Management 111 A spiritual leader must be free from flattery, greed, suspicion and fear. Rather, he should have hard-won knowledge, a total sense of responsibility, and an approach of consciousness. According to Gupta (2009), he must “consider over such ranking as fairness and equality, honesty of idea and language, beginning of realization, feelings of nationalism, impetuosity of events, visual ethics, formations and fulfillment of high responses, maintain of kindness and uniqueness, behavioral decencies, fulfillment of spiritual and right objectives, soul stroke and logic of purity through trained and behavioral events and managerial modifications.” In spiritual approach of management, it is focused on development of man and society rather to train or retain a worker. The management should do all that helps the workers to develop their physique, broaden their outlook, energize their mental faculties, grow their consciousness and enrich their soul. A true leader of education (ibid, 2009) “can also be a sage who commence with an inside devotion, so that he may find the best part in a company and committed himself as a leader or manager for his workplace to give this spiritual face to his work that lead to grow him in a way that he will satisfy all the stages of his life, workplace and all the relatedness of his company. A leader devotes his work to divine, trust upon inside power and check the movement when it comes under the growth and mutual happiness for society. While he acts in the world he remains in Divine consciousness through prayer, consecration and aspiration for progress and welfare of all concerned because ‘lacking is the enjoyment not shared by all’.” In his treatise Savitri, Sri Aurobindo states that: “A prayer, a master act, a king idea, Can link man’s strength to a transcendent Force Then miracle is made the common rule, One mighty deed can change the course of things; A lonely thought becomes omnipotent.” An educational leader can generate an environment by his actions and behaviors to inspire his colleagues, students and parents (stake holders). He must have reliability, keenness, observation, and aspiration for a harmonious living standards. He should have a good character, integrity and intellectual honesty, selfless and objectivity. First he must form a positive attitude to develop his consciousness. He must aspire to invoke Divine grace towards progress & welfare of his institution or profession. A leader in educational institution should take care of all the components in the educational enterprise, i.e. man, material, machines, methods and money. It should remember that the Divine is in all things and all things are Divine. By giving care and attention in the form of mental interest, loving care, enthusiasm and physical concern one can contact and respect the Divine in matter. The Mother, in Sri Aurobindo Ashram in her treatise ‘On Education’ states some qualities of skills to be developed by learners. It may be applicable to any spiritual leader. Those are given hereunder: (Dhal, 2011) A. Mental Faculties Concentration Observation Memory Reasoning Expression Intuition

B. Vital qualities: Enthusiasm Courage Equanimity Generosity Trust Honesty Nobility Perseverance Discipline Leadership

C. Physical skills: Eye hand coordination Body posture Fitness Agility Stamina and endurance

D. General Skills: Study skills: Research, referencing, laboratory, examination and computing Thinking skills: Problem solving, logic, concept formation etc. Social skills: Organization, communication, civic sense etc.

Source: Dhal, 2011

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Conclusion There is crisis of good leadership in all spheres of education. But effective leaders exceptionally a few in number can be groomed to become spiritual which will have a multiplier effect. The secret of effective functioning of schools depends on leadership of school heads to identify best in others and enabling them to constitute to carryout tasks facilitating achievement of goals. Leadership is good, Transformational leadership is very good and Spiritual leadership is excellent. It gives excellent result. From time immemorial it has been observed that, Spiritual leadership provides wellbeing of individuals, societies and nations of the world. It is certain that spiritual leadership improves any organization. It is experimental fact. All educational institutions can avail this opportunity for their wholesome development.

Reference 1. Bass, B. M. (1985), Leadership and performances beyond expectations. New York: Free press. 2. Boles, Harold, W and Davenport, James A (1975), Introduction to Educational Leadership, London: Harper & Row publishers. 3. Burns, J.M. (1978), Leadership New York; Harper. 4. Cambron, Nelda and H-Mc Cabe “Confronting Fundamental transformation of leadership preparation” in Murphy, Joseph and Forsyth Patrick B, Educational Administration: A Decade of reform, California: Corwin Press, Inc. 5. Capra Firth (1987), The Turning point. 6. Dale. B and Cooper. C, (1997) Human Resources of Total Quality, An executive Handbook, New Delhi. 7. Dhal, P.(2011), Psychic Education, New Delhi, APH. 8. Frazier. A (1997), Roadmap for Quality transformation in Education, Floride, St. Lucie Press. 9. Goodlad, J.L. (1990) Teachers of our nation’s schools, San Francico: Jossey-Bass. 10. Gupta, G.P.(2009), Management by Consciousness, Pondicherry, Sri Aurobindo Society. 11. Mukhopadhyaya; M. Groop and their operational Dynamics, mimeographed, NUEPA, New Delhi. 12. Sheldon and Govinde, R. (1998). Towards a New Francisco for school management: Creating stranger partnerships for better Education in innovations in school-based Management, UNICEF, New York, USA. 13. Yuki, Gary. A (1989), Leadership in organizations, New Jersey, Practice Hall. 14. Sri Aurobindo, Savitri, Pondicherry, Cent.Ed.Vol. 28, p. 20. 15. Wikibooks (2018). retrieved from: https://en.wikibooks.org/wiki/Management_Concepts_and_Applications/Management

Chapter 19 Impression of Pre and Post Training on Women Development from Skill Development Programmes Era Arora*

Women demand equal rights and respect in the society but Indian women still need to go a long way to achieve the desired position. Now the modern Indian society has brought the women out from the four walls of the house to participate in all the activities. This poses a great need for women to join skill development programmes which helps them to survive in this modern world which rural areas are still lacking. Due to mismatch between demand and supply of skilled manpower, the workforce felt that the skill development system is not that much responsive. Skill Development and training is considered as one of the strongest measure to develop women as it provides them the confidence to stand equally to men economically and psychologically in the society. The previous review of literature revealed about opportunities and challenges faced by women and how women can be empowered through skill development training centres. The previous studies show that very few studies conducted in rural areas regarding impact of these programmes on women development. The purpose of this study was to identify the impression of skill development training programme on Economic and Social development of women at Bathinda in Punjab. The sampling unit was the women trainees under skill development programmes. A Sample approximately of 115 respondents was surveyed into the field. This study considered pre and post trainees women perception regarding their development issues. The respondents were selected by using random sampling method. The tool used for collecting data was administered questionnaire and interview. The methodology used to analyze the pre and post impression on women development issues was frequency analysis and simple percentages method. The findings of the study revealed that skill development programme has a pivotal role in women upliftment in society and in family as well. The study concluded that these skill development programmes could help women in achieving their desires and empower themselves.

Introduction Women are an integral element of the society and undoubtedly the better half of men. But earlier, the story of Indian women was somewhat different. They were expected to take the role of family nurturing and caring on priority basis and keep their dreams and desires on secondary place, which deteriorated them both psychologically and emotionally. Women are demanded equal rights and respect in the society but Indian women still need to go a long way to achieve the desired position. This equality could only be gained through strong determination and by standing against the deep rooted traditions which were meant to suppress them. Women had minimal participation in the decision making process especially at the workplace due to which they became the least utilized human resource and lagged behind in the matter of economic opportunities. Therefore in order to restore their rightful and dignified status, the concept of women empowerment came into force which uplifted their self esteem, dignity, freedom, inner strength and creativity. This base enabled women to deal with the world with skills, grace and confidence. Therefore, since last few decades the subject of women empowerment, which is very important for the development of the nation as a whole, has become a burning issue all over the world, as a result of which the status and position of women has risen incredibly. Now the modern Indian society has brought the women out from the four walls of the house to participate in all the activities. *Research Scholar, Commerce Department, Punjabi University, Patiala, Punjab. E-mail: [email protected]

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Women are no longer forced to keep themselves behind the curtains and perform only domestic duties; instead they are participating in different activities and are proving themselves in almost all the spheres which were the exclusive domains of the males previously. Skill Development and training is considered as one of the strongest measures to empower women as it provides them the confidence to stand equally to men economically and psychologically in the society. Their earnings may be meager, but this financial freedom adds up a lot to their independence. Due to mismatch between demand and supply of skilled manpower, the workforce felt that the skill development system is not that much responsive. Therefore there is need to address these issues and avail the benefits of demographic dividend of the country. The skill development initiatives in India need to have quality and quantity both. As India faces the challenge of providing the adequate skills to the millions of people entering the workforce, there is need to have a system which should link skilled manpower to employability through available job opportunities in order to minimize the mismatch between supply and demand of skilled manpower. Some of the initiatives of the government are: • • • • •

National Skill Development Corporation (NSDC) The Deen Dayal Upadhayana Grameen Kaushalya Yojana (DDU-GKY) Nai Roshni Upgrading Skill and Training in Traditional Arts/Crafts for Development (USTTAD) Maulana Azad National Academy for Skills (MANAS)

According to the study of Boston Consultancy Group in 2007, while the world is expected to face the shortage of around 47 million of workforce by 2020, India will have a surplus of 56 million of workforce.

Review of Literature Aon Hewitt (2009) performed the talent projections and analysed the skill gaps in the infrastructure sector for the year 2022. The study found that all the skill training initiatives like Industrial Training Institutes (ITIs), Industrial Training Centres (ITCs) and Vocational Training Institutes (VTIs) along with other initiatives, failed to adequately respond to the demands of the industry. The labour force trained by a state also did not match with the labour demand of the state. Further, the ad hoc based skill development initiatives had no relation with the regional demands. It was suggested that the skill development initiatives should be aimed to satisfy the regional demands in order to achieve the inclusive growth of the country. Shamsuddoha, Parvez et al. (2011) in their study, appraised the entrepreneurial programmes and courses of prominent NGOs of Bangladesh like BARC and Proshika and also identified the various challenges and problems faced by the women entrepreneurs to propose policy measures regarding women empowerment in Bangladesh. The data was collected from 60 women entrepreneurs by conducting pre structured interviews. It was found that among various problems, lack of marketing knowledge and lack of governmental support activities were the two main problems confronted by 100% respondents. Micro enterprises stimulated the economic independence in the women of the country. Jacob and Hart (2012) conducted the study on the skill development in rural areas based on the research data published in between 1994-2012. The study concluded that due to increase in the rural population, the demand of the jobs also increased which resulted in the migration of the rural population to the urban areas. The rural population also faced problems to access the post school education, which was reason to halt the skill based development of the rural people. The study also found that by migrating to the urban areas, they got the chance to develop their skills properly to meet the industrial requirements hence resulted in increase in the living standard of the rural people. Verma Bhavna (2015) investigated the challenges of skill development and rural women entrepreneurship. The data was collected from secondary sources to study the status and problems faced by the rural women. Also the need of skill development and various challenges faced by rural women entrepreneurs in achieving the skill development was also discussed. It was found that the lack of confidence, dual responsibilities as wife and as mother, lack of sufficient funds, illiteracy, lack of adequate training, lack of cooperation from the implementing authorities, lack of infrastructure were the major hurdles faced by rural women entrepreneurs. It was observed that the rural women can better establish their business in the areas of their core competency and they needed more opportunities to prove their competencies. Parihar (2016) conducted the study by analysing the current situation of employment in the country and also evaluated the recent schemes of the government like Skill India and Startup India. The study concluded that there should be strict monitoring of the funds released under various schemes to avoid any kind of misappropriation. The study also found that

Chapter 19: Impression of Pre and Post Training on Women Development115 these schemes were a good initiative for providing skills to workforce, as the working age population of India is expected to increase with a high rate over a period of time. Ahamad, Sinha et al. (2016) studied the role of skill development and vocational education in the women empowerment. It was found that the training needs of women are different from that of men as they are more inclined towards being family workers, home based micro entrepreneurs, subsistence farmers etc. along with their additional responsibility of house making. The study observed the skill development focused on the specific needs of the emerging entrepreneurs which enhanced the employability and economic opportunities for the women entrepreneurs.

Objectives • To study the influence of skill development training programme on Economic development of women • To study the influence of skill development training programme on Social development of women

Research Methodology This study is an exploratory research to get the better vision of the women and describe their outlook before and after training from skill development programmes conducted in Multi Skill development Centre (MSDCs) situated at Bathinda in Punjab. The sampling unit taken was the women trainees of skill development programmes A Sample approximately of 115 respondents have been taken for the study. The sample of only 110 respondents taken into consideration due to missing response in the remaining 5 questionnaire. This study is primarily based on primary survey into the field. The respondents have been selected by using random sampling method. The tool used for collecting data was administered questionnaire and interview. They would be approached to fill up the questionnaires to collect the data. The skill training centre was personally approached and visited. The statistics used in this study was frequency analysis and percentages by making comparisons. The impression of pre and post training on women from skill development programmes are depicted through tables below.

Analysis and Interpretation of Data A. ECONOMIC DEVELOPMENT OF WOMEN 1) Monthly income of the respondents Respondent’s monthly income was evaluated to know whether there is any increase in the income of the respondents after being trained. Table 1: Pre and Post Training: Monthly income of the respondents Monthly Income of the Respondent

No. of respondents Pre training Monthly Income

Percentage of respondents No. of respondents Pre training Monthly Post Training Income Monthly Income

Percentage of respondents Post Training Monthly Income

Less than 1500

56

50.09%

12

10.90%

1500-3000

26

23.63%

37

33.63%

3000-4500

11

10%

54

49.09%

Above 4500

17

15.45%

7

6.36%

Total

110

100%

110

100%

Source: Primary Data

In Table 1, the data were collected from the sample and asked about their income patterns before and after the training. From the total sample of 110, pre training income of 56 (50.09%) respondents was less than 1500 and post training income of the same respondents tends to increase. After going through training only 12 (10.90%) respondents had less than 1500 income whereas in post training income of respondents there were 54 respondents (49.09%) which is highest who earn income between 3000-4500 This analysis states that income of post trainees is more than pre trainees which proves that skill development programmes play a pivotal role in income up-liftment of women.

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2) Monthly saving of the respondents Table 2: Pre and Post Training monthly expenses of the respondents Income

No. Of Respondents Percentage of respondents No. Of Respondents Pre training Monthly Post Training Monthly Post Training Savings Savings Monthly Savings

Percentage of respondents Post Training Monthly Savings

No Savings

45

40.90%

9

8.18%

Less than 500

21

19.09%

32

29.09

500-1000

13

11.81%

58

52.72%

More than 1000 31

28.18%

11

10%

Total

100%

110

100%

110


In table 2, The data about respondents monthly saving were collected which depicts that in pre trainees there were highest 45 respondents having no savings whereas in post trainees only 9 respondents are having no savings. In post trainees, there were 58 respondents which had highest saving of 500-100 whereas in pre trainees there were only 13 respondents saving 500-100. This analysis therefore, clearly states that post trainees had more savings as compared to pre trainees. Hence, Skill development training also helps in enhancing savings of women which would make them economically strong. 3) Self-reliance of Women In today’s scenario it becomes imperative for women to hold a power of independence against men which ultimately empower their economic strength. Table 3 depicts self-reliance of the post trainee’s respondents. Table 3: Response of self-reliance women Outlook of Women

No. of respondents

Percentage of f respondents

Yes

79

71.81%

No

31

28.18%

Total

110

100%


In Table 3, it clearly states that the 79 post trainees (71.81%) are more self-reliant through training of skill development. On the hand only 31 respondents (28.18%) depicts that training had no effect of self-reliance on them. Therefore it was found that training has an overall impact of self-reliance of women which gives them power to make their own economic decisions.

B. SOCIAL DEVELOPMENT OF WOMEN 1. Decision making power of the respondents Decision making power empowers women to live freely and take an active role in making viable decisions for them. This makes them to hold an important place in society and family Self Development training could play a pivotal role in enhancing decisions making power of women in a family and society. Table 4: Decision making power of the respondent Outlook of Women

No. of respondents

Percentage of the respondents

Yes

76

69.09%

No

34

30.90%

Total

110

100%


Chapter 19: Impression of Pre and Post Training on Women Development117 Table 4 depicts the influence of training on decision making power and self-sufficiency on respondents. It becomes clear from the table that 76 respondents (69.09%) has got a decision making power after going through a training programme and only 34 respondents (30.90%) are deprived of decision making power after receiving training. 2. Verbal Ability and Liberty to Expression of thoughts of the respondents This skill of verbal ability and speak with full of confidence is necessary for a women to express her thoughts with liberty. This would help them to speak freely and express their needs in family and society. Table 5: Verbal Ability and Liberty to Expression of thoughts of the respondents Outlook of Women

No. of respondents

Percentage of the respondents

Yes

75

68.18%

No

35

31.81%

Total

110

100%


This clearly states that out of 110 respondents, 75 (68.18%) said that skill development training helped them in increasing their verbal ability and liberty to expression of thoughts of the respondents and only 35 respondents (31.81%) sates that training had no effect in their verbal ability. Therefore skill development poses a remarkable impact on women’s verbal ability and freedom to express.

Conclusion It can be concluded from this study that women have been enormously getting advantage of economic and social development which was being seen through pre and post training results. This study explored that due to training women income source, savings and their self-reliance has been increased. This study also influence their social development factors such as Decision making power, verbal ability and Liberty to expression of thoughts. The skill development training programmes help women to feel more liberated which eventually lead to development of self and society as well. This study also states that women if trained accordingly have the power to contribute their efforts in economic development which ultimately uplift their position in the family as well. This would also help the future generation to adapt such attitude to respect women and flourish in their careers because women become the most prominent in the society welfare. These training programmes should be extended too many eclectic courses which provide women an opportunity to excel in their career or direction. These training programmes of enhancing skills proved to be a beneficial for economic and social development of women in the society.

References 1. Ahamad, T., Sinha, A., & Shastri, R. K. (2016). Women Empowerment through Skills Development and Vocational Education. SMS Journal of Entrepreneurship & Innovation, 2. 2. Das, A. K. (2015). Skills Development for SMEs: Mapping of Key Initiatives in India. Institutions and Economies, 7(2), 120-142. 3. Das, M. (2012). Women Empowerment through Entrepreneurship: A Case Study of Guwahati Municipal Corporation. International Journal of Computer Applications in Engineering Sciences, 2(1), 27-29. 4. Hayyat, A., & Chughtai, S. H. (2015). The Impact of Vocational Training on Poverty Alleviation through Moderation Role of Foreign Funds: Evidence From Southern Punjab. Management Studies and Economic Systems, 2(2), 157-171. 5. Jacobs, P., & Hart, T. (2012). Skill Development in Rural areas- A Brief Review of Evidence. Rural Innovation A2012ssessment Tools. 6. Jain, C. (2015). Training and its Impact on Women Empowerment (A study of Maa Durga Shakti Educational Welfare Charitable Trust). International Journal of New Technology and Research, 1(5), 55-58. 7. Kakakhel, S. J., Saeed, T., & Gul, S. (2016). Role of NGOS in the Women Empowerment through Provision of Rural Entrepreneurship Opportunities. Journal of Applied Environmental, 6(1).

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8. Khan, F. R. (2015). Women Entrepreneurship In Chennai, India – Factors Trigger And Prevent. International Journal of Management, Innovation & Entrepreneurial Research, 1(1), 29-43. 9. Nithyanandhana, S. H., & Mansorb, N. (2015). Self Help Groups and Women’s Empowerment. Institutions and Economies, 7(2), 143-164. 10. Okada, A. (2012). Skill Development for Youth in India: Challenges and Opportunities. Journal of International Cooperation in Education, 15(2), 169-193. 11. Palit, A. (2009). Skills Development in India: Challenges and Strategies. Institute of South Asian Studies Working Paper. 12. PSDM. (2016). Skill Training Centres. Retrieved March 10, 2017, from Punjab Skill Development Mission: http:// psdm.gov.in/skill-training-centers.php?city=amritsar 13. Raj, M. (2011). Women Participation in MSMEs. https://ssrn.com/abstract=1967757. 14. Ramakrishna, K., & Sudhakar, A. (2015). Women Empowerment through Skill Development: The Role of RUDSETIs. International Journal of Management and Social Science, 3(6). 15. Shamsuddoha, M., Parvez, S. A., & Nasir, T. (2009). Micro Credit Program of Selected NGOs: An empirical study on Rural Women of Comilla District in Bangladesh. http://dx.doi.org/10.2139/ssrn.1340542. 16. The Pioneer. (2016, Nov 13). Punjab Govt. set up eight skill development centres. Retrieved March 9, 2017, from The Pioneer: http://www.dailypioneer.com/state-editions/chandigarh/punjab-govt-sets-up-8-skill-development-centres.html 17. Upadhye, J., & Madan, A. (2012). Entrepreneurship and Women Empowerment: Evidence from Pune. International Conference on Economics, Business and Marketing Management, 29. 18. Verman, B. (2015). Challenges of Skill Development and Rural Women Entrepreneurship. International Journal of Multidisciplinary Research and Modern Education, 1(1).

Part II Emerging Innovation Perspectives

Chapter 20 Challenges and Opportunities with IT Cloud Capability Pankaj Bhardwaj*

The shift to cloud is not a recent development. The breakthrough in data processing, agile software development and speed of deployment of applications is fueling the digitization of companies. This in turn is changing market dynamics and disrupting the old economy enterprises. Internet penetration & bandwidth availability is making it possible to access applications and data in real time; opening up new vistas of services and business models. The availability of applications on the go with mobile devices is evolving rapidly. This ability to provide new feature and capability ahead of market has now become the differentiator and success metric for some companies and survivability for others. Disruption from this mode has clearly challenged age old industries like transportation with Uber and hospitality with Air BnB. In this Study we shall marvel at this trend, look at some of the basic IT building blocks to demystify the complexity and review what opportunities lie ahead for companies as the world reshapes. This change impacts the way we work across industries and organizations of all sizes. The change opens up new opportunities as it forces companies to change their structure, hierarchy, processes and complete go to market model. Cost of not adapting is oblivion as some industries recently faced. The change has impact on every piece of planning and process. However, the purpose of this study is to unravel technology components driving and supporting cloud services model.

Introduction What is Cloud? Cloud simply put is shared resources of computing, storage, networking and software platforms, where data and applications live. To simplify, cloud is of three types by ownership and accessibility; public cloud i.e. Owned by 3rd party with services largely designed for end user. A movie streaming app or taxi booking service on mobile would fit the bill. Private cloud are owned and run by companies mostly for internal consumption or B2Bservice delivery to gain internal efficiencies of speed to market, agility and data security &recovery. Hybrid cloud i.e. companies running a mix of public and private with some orchestration. Data does not move much in itself but its analysis and output of applications to a business result is what moves the needle. Streaming of content is another bigger way to consume services from cloud with TV, gaming and media taking the lead. Clearly going forward a mix of environments by each company will be needed to remain in sync with evolving IT strategies leading with service delivery strategy internally and to its customers

Objectives of the Study: • To understand innovation in building blocks of cloud IT Model • Impact of cloud computing model *Software Sales and Networking Transformation Lead, CISCO, South East Asia. E-mail: [email protected]

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Building Blocks of Cloud Model SERVICE OFFERING FROM CLOUD IaaS, PaaS, SaaS In this Journey first decision of the company is to move away from on premise deployment and consumption. Which means hosting IT separately in data center – self-managed (private) or outsourced (public). The data center might be on same premise or remote or many and we shall discuss separately about data center as the back bone. Service is definition by type and level of complexity resolved and also how & where services are created and offered w.r.t ownership & control. Infrastructure as a Service(IaaS): This can be looked as close to co-location of earlier days. Real estate, power, networking, storage and servers are provided by hosting party with management of this basic stuff for efficiency e.g. uptime & virtual machine for optimization. These are capabilities for companies to consume without investing upfront, getting access to latest infra without management costs and worry. These are pay per user base rate moving to operational expenses bucket. Microsoft Azure Cloud, Amazon Web Services, Google Compute are famous large scale multinational cloud infrastructure providers however there are many more catering to demand by specification, region, compliance etc. Platform as a Service (PaaS): We can look at platform as second layer build and provided on top of IaaS. This Service may be provided by same company as offering IaaS or by another company using 3rd party IaaS. This service now caters to software developers and companies a layer higher in hierarchy on software. Providing them language, code writing & testing tools with more orchestration of resources and run time analytics. This offers low cost complete capability for startups s as well as companies exploring new capabilities development without heavy investment and management headaches. So now companies can focus on core competency of writing codes and building applications. Largely this service is offered by most IaaS providers, having invested in infrastructure. But there are dedicated tools offered by specialized organizations for specific software codes e.g. ET, Java, PHP and Apache. Some famous names are Heroku, Force.com IBM Smart cloud, Red hat etc. Software as a service (SaaS): This is the applications delivery to the end user largely using internet and a web browser. This means that everything –from infra to middleware to tools to data and applications are sitting in cloud and you just consume with light app or browser on your device. Most widely used and largest part of cloud SaaS is just about a interface and plugins at end user side. Email and collaboration, CRM apps, Facebook, WhatsApp are known names leveraging this model. Companies delivering service through SaaS to employees benefit from on premise devices and maintenance. Salesforce, WebEx, Google apps leverage this model. This service also opens up opportunity for software companies, developers and startups to test and scale complete delivery without managing truck load of IT gear and tools. Build short term projects with speed and especially if consumption model is on mobile devices.

Data Center There are many ways to define data centers and classify them. They are large, managed, & secure facilities which house the most critical systems of the companies. We can see them as extension of network. They can be remote and dispersed as per data protection and fail over requirements. E.g. Data center delivering retail business for multinational chain with have many replications across globe to address scale speed and diversity vis-à-vis data center for defense in country will be highly secure and private. For scope of this discussion let’s examine Cloud Data centers and their IT components which have new model service delivery impact. Let’s call them public facing or internet driven. Basic components are large computing power created by CPU aggregation technologies, scalable storage which looks like one large disc across servers, network or nodes and networking gear to have all connected in a secure way. Virtual machines, a software computer with separate operating system and applications etc. This is exhaustive and complex technology deployment and management with tenant partitioning but looks like plumbing job when its data center.

Chapter 20: Challenges and Opportunities with IT Cloud Capability123 Here concept is speed and scale. Speed to execute hundred and thousands of repeatable commands across host of machines, servers and applications leading to need of automation in cloud data centers. Software centric infrastructure allows writing command centrally or programming a function for application or code to carry out and execute across machines and networks in consistent manner. It allows the administrator to write a policy and automate it. This need to manage complexity has led to what industry is calling hyper converged systems which is bringing network, compute and storage together as one system with management tools.

LOOK CLOSER AT DC IT COMPONENT To get functional clarity of major parts of data center lets study them as separate system at this stage.

NETWORKING The data center job is to bring all kinds of devices together; servers, racks, storage, other networks and finally end devices. This is achieved by switches which connect to large number and variety of different devices. This operation cannot fail; hence these switches are called core switches for the reason of scale, speed and resilience with advanced management capabilities. Think of this as backbone of company. There would also be other switches called access and edge depending on size and spread of data center connecting to end devices like PC’s. Routers to connect to other networks and internet etc. The Important thing is that these boxes are advanced and automated. The difference is that automation capability is built at hardware design and OS level. Think of how thousands of connections need to be made in flash of a second. Advanced, to be able to become intuitive about behavior of networks and intelligent on what flows inside, about source and destination. This step of data intelligence and analysis is close to next step what we call machine learning where the science fiction of machines taking control begins. Management Software layer on top further works to orchestrate among the Switches. Different switches from different companies following different commands talk to each other through API (Application programming interface)

STORAGE Digital Storage also takes an impressive planning and farming in data center. It starts with basic dumb chassis with power supply which is then populated with inexpensive discs and a operations system to power them on. Now think of this as rack after rack and room full in controlled environment. Next step is software defined storage a layer on top which now manages this farm as one large volume and partition as needed. May farms can we brought together in a virtual manner to pool resources of computer& networking for optimization. Here the storage is allocated to each process as per requirement and can be auto provisioned by writing a policy on top layer. Scale discussion lead to how many such nodes getting connected together. Data center demands failover hence data is stored after stripping across systems. Fault tolerance needs to be in place and so data is replicated to other multiple nodes as per importance called replication factor

COMPUTE Let’s look at the computing power of the data center sitting on powerful (servers) physical machines with lots of RAM & CPU and we realize we are now talking about server farms just like storage rack farms. Just having powerful machines is not enough it’s the need of a powerful computing environment, integrated yet isolated as per work to be performed. Leveraging common needs and protecting unique capabilities. An environment which can be scaled and managed cost effectively. This led to innovation of another kind. Power of aggregation of processors and resources mixed with uniqueness and agility of isolation of processes to execute in parallel than sequential manner. Logically disconnecting the various components from each other to remove dependencies and failure of one because of the other. This lead to concept of virtualization. Now servers can run virtual software and create virtual machine which can be moved to another server automatically in case of failure so service delivery does not get impacted. Important to review virtualization of machines as basis for further advanced techniques for optimization of resources.

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VIRTUAL MACHINES, CONTAINERS AND WORKLOAD OPTIMISATION VM are logically built independent computers like physical computer with their own operating system) on top of physical machines. It’s a technique or way to run multiple services on same machine and stay isolated from each other. All VM leverage common hardware capability but leverage their operating system as needed for the application. Classic example is to run windows OS on Apple machine by creating a virtual machine using VM ware software. This allows the same resources to be leveraged differently reducing infrastructure costs and management overheads. Virtualization needs processor capability to support virtualization of hardware. So now a single machine (server) acts like multiple machines, each running its own OS and applications or other service scripts (workloads). Hence we are able to a lot more with lesser resources. Now we have multiple servers running OS on which Virtual machines (VM) are running. VM can be ported from one server to another. VM run smaller scripts or complete applications independently of the physical server, let’s call them workloads e.g. email server, media server or codes to turn a service on or off. The success of SaaS Depends on the underlying compute power, to be able to execute hundreds of jobs in parallel with fail over simultaneously. Fast to be in real time and automatically expanding or shrinking as per requirements. Need for ever hungry developers processing requirements leads to modular approach to punch in more work out of same machines. However VM technique has its limits as each VM needs its own complete independent OS and abstract of hardware resources to be able to run. Which takes time to load and demand for underlying resources is higher. This is solved by most popular trend today in cloud computing i.e. containers. Containers are ways to further provide isolation to applications and provide virtual platform with even lesser recourses and more agility. Now even more workloads and applications can be loaded on a single server. Containers achieve this by using part of the underlying operating system, supporting programs, basic configuration data, prewritten codes etc. This small footprint makes it ideal candidate for scale as more containers can be deployed per hardware environment. Both methods have their own pro and cons around resources, speed and security and both have their respective uses.

Impact of Cloud Computing Model Restructuring of business model: The shift to cloud has already impacted all size and sector organisations directly or indirectly. Question is not if companies will move to cloud but what part and when. The larger companies can afford to build a parallel cloud and plan at structured pace whereas narrow IT services companies might need to move overnight. This shift of business model is of higher relevance for IT services companies in infrastructure management &software development as completion from cloud providers is disruptive. Amazon Web service is classic disruption story for large IT firms in Asia managing the Worlds backend operations. Skills & expertise Opportunity: With availability of new languages, tools and platforms companies are migrating process and legacy applications to reap the benefit of lower costs and better performance. This is leading to work being off loaded to another company altogether or being moved to cloud. Either ways traditional IT skills and know how around infrastructure creation & maintenance, add move changes, legacy coding and software testing is becoming irrelevant. New language and developer tools skill are needed. The risk is that the irrelevance is happening faster than skilling of manpower. Security: IT Industry has consistently faced two threats. One data theft of users and two, a complete system lock or shut down for a ransom. Data Privacy laws are being enacted across countries and stringent requirements are needed by companies to keep its user base safe way beyond internal leak, physical theft or yesteryears firewalls. It has taken scary dimension of a organised crime run by professional unethical hackers. The security solutions which is self-learning with every attack and addressing before, during and after attack contingencies would require a engine normally unaffordable by small companies. Cloud Solutions are normally being covered with such capabilities. A strength in numbers. Cost of Doing Business: Cloud based business model leveraging 3rd party SaaS reduces upfront investments, consuming only as much as needed and well as with operating lease with pay as you grow option making it affordable for smaller sized companies. A good option for entrepreneurs as well as developers to test waters with their ideas and tools before going full hog. Brighter side is also that a highly customised application can be development for niche users as well without escalating costs e.g. in medical field or for a specific underprivileged part of society.

Chapter 20: Challenges and Opportunities with IT Cloud Capability125 Digitalization of business model: The Corner Stone of digital transformation is cloud computing and data center innovations. We are moving to a paperless world. A world full of applications largely being used out of mobile devices to get day to day work done, to communicate and to entertain ourselves. More the innovation in this are better our chances of solving mass requirements around resources. New Product Release: Cars lasted one’s life time, manufacturing technology breakthrough would happen once in decades, IT hardware was upgraded and refreshed in 7 to 10 years, analog devices were more of less all same. What used to happen in decades started happening in couple of years to months and now onto the fly. Main frames to personal computers to tablets to wrist watch, that’s how we access and respond to data. A possibility yet unimaginable, all supported by innovation in cloud computing. Workforce/Jobs creation: The advent of Cloud computing with new languages, applications and tools will require new skills as discussed earlier. The model itself would require news roles to build, manage and run new tools. Programming skills would remain but with heavy automation and policy run networks jobs would be more on developer and operations mix as DevOps to leverage the complexity and towards analytics with machine reading and artificial intelligence driving intuitive work models. Lock in or Open source: The Constant question with respect to investment in infra or cloud 3rd party services remains is how much lock in comes to particular technology platform or vendor. As development happens in fast pace under particular company banner chances are we might be headed in a locked legacy environment or on a particular platform. This can create a situation very much like today where the next quantum jump to change game might need to migrate to yet another platform and hence all associated costs and risks kick in again. There are many independent IT tools which help companies to migrate data center workloads between on premise and clouds or among multiparty clouds. However, they are expensive requiring specialized skills to run. Many organizations and developer communities are leveraging open source tools, languages, data bases and filing formats or libraries but yet a streamlined platform or engine is needed to house all as level play. The complexity and need for security would in many ways keep players in silos. Governance & regulation: The Legal and regulatory framework is constantly shaping up around the digitization, data privacy and cloud computing led by Nordic countries. This take new dimension of complexity with customer’s data being collected and owned by a one company being processed by another company using 3rd party infrastructure in a data center sitting in another country. Recent revelations in media about social media SaaS company sharing data with its vendors across globe being scrutinized by different governments is uncomfortable example. Taxes & International Laws: Taxes and customs rules are being relooked at for lack of coverage of delivering such services across international border. Internet TV & Media content to be taxed on consumption i.e. viewing in a country or for streaming through another country or for hosting content in data center in another country creates interesting case for tax lawyers.

Conclusion We are witnessing a shift led by both demand for more computing power and tools on pay per use low cost model by the new generation of software developers and coders as well as complete overhaul of how service is created and delivered. We know that vast majority of IT work can be moved to cloud. As it further scales it will be more affordable at SOHO level. All managed out of cloud with no headaches of technology obsolete, new versions and security. However, there are various other factors that influence the decision to move to cloud. Safety of data, migration of legacy applications, success factor definitions, acceptance of new modes by end consumer in different sectors and country regulations comes into play. In the end, cloud computing allows companies to focus on doing what they know best, and not on spending a lot of money and time on IT processes. I believe that the companies which fail to adjust to this trend are going to face serious economic and business disadvantages.

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Reference 1. Seay, C., Washington, M. and Watson, R. J. (2016). Impact of the Cloud on IT Professionals and the IT Industry. In Encyclopaedia of Cloud Computing (Eds S. Murugesan and I. Bojanova). 2. https://hybridit.cio.com/assets/CIO_Playbook_eBook.pdf 3. http://www.fujitsu.com/lu/Images/wp-eiu-impact-of-cloud.pdf 4. https://technet.microsoft.com/en-us/library/hh994647.aspx 5. https://www.bloomberg.com/news/sponsors/features/imda/singapore-advancing-the-regions-digital-superhighway/? adv=17532&prx_t=r7QDAfZghAVUANA 6. https://www.businesstimes.com.sg/government-economy/singapore-budget-2018/netflix-tax-from-2020-for-a-new-revenuestream

Chapter 21 Cyberloafing: A Transpiring Rage Preeti Sukhija* and Dr. Pawan Kumar**

Cyber loafing is the unauthorized exercise of the Internet for own manners during job task. The environment of Internet practice creates Cyber loafing a large amount hard for colleague to distinguish by study. Employees are able to now keep up the appearance of being tough at job in the true world, whereas roving from side to side cyberspace visiting non-task linked websites for private concerns & reasons. This chapter attempts to shed some light on the effect of cyber-loafing on employee productivity. More specifically, efforts have been made to highlights the leading factors of cyber loafing & its impact on performance & productivity of taskforce in organizations.

Introduction – A Perspective Cyberloafing: Cyberloafing is the unauthorized employ of the Internet for non task or private activities through job time (Coker, 2011; Ugrin & Pearson, 2013). Cyberloafing: There is range of theories & descriptions for non-tasklinked Internet make use of in organizations. Generally accepted conditions utilized in the narrative are Cyber loafing, cyber slacking & non-task linked computing. Cyber loafing does not need single to be actually not present from the place of task for lengthy times &, so, is not as able to be seen as additional loafing performances. In detail, workers can use significant quantity of moment employed in individual tracking downs exclusive of even departure their counters. Not amazingly, the prices of such performance can have a important effect on an institute. Li & Chung (2006) described 4 main category of cyber loafing specified below: a) Social based b) information based, c) leisure time, d) Virtual based emotions. Cyber loafing is a phrase that shows use the Internet, even as at job, to do something that isn’t company linked. Such task out comprise: transfer personal communications, linking via web-based net tasking media locations like Face book or Twitter, watching movies or in spite of hunting down a home repair man. Cyber loafing is a vernacular phrase that appeared in the 1990s among the approach of the pioneering turmoil. The prefix “digital” eludes to anything accomplishment with PCs or the web. Cyber loafing signifies measured as contested to functioning. Late advancements in online advances have re-imagined the limits in which web can be gotten to, enabling us to knock on the universal net task in urgency. Associations, specifically, have rushed to distinguish & outfit the potential offered by the net task as a point for directing industry in non- traditional ways, & as mechanism for improving employee implementation. In any case, as extra new advances get fused to the tasking environment, new problems emerge. Web has additionally carried alongside it a few provisos, single of them being the utilization *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Associate Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected]

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of task environment net task access for non-business linked reasons. Episodic confirmation uncovered that a few workers use up as a great deal as six hours for each day surfing the web at their tasking environment. The non-task linked web use has prompt enormous financial & efficiency misfortunes for associations (Debt Cubed, 2006). In this way, it is evident that non-business linked web utilize comprise single of the mainly unmistakable oppose-gainful exercises that cutting edge associations need to think about. Albeit past examinations have analyzed non-business linked web use as a result of identity slight has been finished to research how different person identities & individual elements influence the man H&LE of web get to. This study endeavors to join together the consequences of earlier inquires about & dive profound into the subject & build up a new multi dimensional point of view on digital loafing by analyzing predecessors & results of digital loafing. Cyberloafing, or the utilization of Internet for non-task purposes amid available time, is a type of counterproductive tasking environment conduct (CWB).Cyberloafing prompts inefficient association & could even reason claims. Drawing on the CWB writing, this investigation estimates & inspects the impact of identity & authoritative factors on Malaysian workers’ dispositions toward cyberloafing. Pleasantness & scruples are the two identity attributes explored. Cyberloafing was initially characterized as the demonstration of delegates utilizing their boss s web use to take part in non-business linked exercises. All the more as of late, cyberloafing was characterized as the utilization of any Internet & versatile innovation amid task hours for non-task linked purposes. Notwithstanding how one decides to operationalize it, cyberloafing can be a diversion & genuine burden to the profitability of individuals in discipline & the taskforce. In spite of the numerous advantages of today s present day innovations, the consistent communal micromanagement, arrive at capability, & connectedness they concede may have downsides that contract & mischief regions of our communal exists & our exceptionally mental & substantial wellbeing. In his 2008 investigation, Michael Bugeja contended that albeit new advances counting phones, PCs, music players & diversion supports keep individuals associated, they likewise remain them always diverted. A large portion of the writing centres around cyber loafing in the tasking environment, however may give knowledge into cyber loafing in scholarly settings.

Forerunners: While Cyber loafing can prompt pessimistic outcomes for the associations, it is imperative for associations to comprehend why delegates participate in Cyber loafing in the task environment & comprehend the variables that add to this conduct with the goal that associations can successfully deal with worker’s Internet utilization at task (Liberman et al., 2011). With a specific end goal to get a worldwide point of view on digital loafing it is vital to investigate the individual & authoritative variables that impact digital loafing. Table 1. Factors leading the Cyber loafing 1. Organizational/Hierarchical

2. Personal/Individual

Limitations & foreseen results of Make use of internet

Extraversion

Occupation Commitment Job responsibility

Agreeableness

Occupation Satisfaction

Conscientiousness

Occupation Characteristics

Neuroticism Openness

Locus of control

Self-Efficacy

Uprightness

Accomplishment Orientation

Hierarchical Factors: A few hierarchical components may impact affinity of delegates to Cyber portion, a few factors are talked about underneath:

Chapter 21: Cyberloafing129 a) Limitations & foreseen results of Make use of internet- By restricting delegates’ utilization of task PCs, regardless of whether through approach, innovative impediments, or on the other h& both, managers decrease the advantages of utilizing the Internet for non task purposes while advancing worker self-direction. b) Occupation Commitment Job responsibility- It is another individual-level factor that may assume an intense part in forming individual make use of internet at task by affecting its normal advantages. It is contended that delegates who are frankly connected to their task association will observe individual Make use of internet to be less good with task schedules than the individuals who are most certainly not. c) Occupation pleasure- Occupation fulfillment is appeared to be a critical factor influencing Internet mishandles in connection to workers separation with parts of their activity & want to withdraw by substituting other exercises. d) Occupation Characteristics- It is attainable that particular employment qualities may prompt all the extra cyber loafing to exp& innovativeness or then again mitigate fatigue. Then again, innovative employments are probably going to have more shifted requests & be fewer exhausting, as are fewer inclined to inspire informative cyber slacking.

Individual Factors: Keeping in mind the end goal to get an entire comprehension of multi dimensional nature of digital loafing we ought to likewise investigate the individual factors that affect digital loafing. a) Extraversion depicts “the degree to which individuals are outgoing, self-assured, & agreeable v/s saved, hesitant, & calm”. b) Sociability is characterized as “how much individuals are helpful, warm & pleasant versus cool, repulsive, inconsiderate & opposing”. c) Conscientiousness alludes to the “how much individuals are dedicated, sorted out, tried & true, solid, & driving forward versus apathetic, sloppy, & inconsistent”. d) Neuroticism addresses “how much individuals are secure, non-on edge, quiet, fearless, & cool versus unreliable, restless, discouraged, & passionate”. e) Openness is characterized as “community who are imaginative, inquisitive, & refined vs rational with slight welfare”. Internet is an atmosphere in which socially is less needed as regards the lack of dealings as opposed to an interpersonal setting so the internet is more often used by less pleasant community, which is recognized by the study of Wyatt & Phillips (2005). f) Locus of control: Locus of control (Julian Rotter 1954) is the quantity of control that a human being suffers over the atmosphere. Community who are outwardly leaning known as externals distinguish small association between their own events & occurrence of plunder & tend to distinguish themselves as helpless. g) Self-Efficacy: Self-viability is described as the ability of individuals to observe them as Being remarkably busy & having a rational sight of their goals. Bandura contend that the individuals who achieve high on self-viability will have a propensity to belief that they will carry out well on a given task. h) Honorableness: As talked concerning in the 5 character factor, individuals high on this factor are high on how much they can control their behavior to attain their goals & not get affected by their dynamic forces & cyber loaf frequently. i) Accomplishment course: people who are high on accomplishment introduction are observed to be more resolved to seek after their objectives, see more noteworthy earnestness in seeking after their objectives & are eager to contribute occasion & push to seek after their goal. Outcomes of Cyber loafing: Cyber loafing may be practical when it helps delegates & the association. Despite, it can be destructive when it keeps delegates from being gainful. Many specialists contend that Cyber loafing is ineffective & opens the association up for claims. Arguments in favor of cyber loafing: productivity also, proceeds, linking with for brief timeframes on tasks not recognized with task may have optimistic impacts, including mitigation from exhaustion, weakness, or strain, more wellknown profession accomplishment growths in wealth, diversion & recuperation, & common extra wonderful delegates.

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Arguments against cyber-loafing: A segment of the pessimistic results experienced by organizations comprise: corrective actions, finish or failure of delegates, fractures of business categorization & dishonor hardship, or individual safety, individual & commanding compulsion & the linked legal expenditures, & also billions of dollars in vanished efficiency. Impact on Productivity & Performance: Gender dissimilarities in insights of Task position Cyber loafing screening the data, one can see that cyber loafing is common in the task position. Though, not each employee observes cyber loafing in the similar way, particularly when it comes up to gender. Cyber loafing in Academicians: professor are frequently penetrating for approaches to improve the knowledge for understudies, so it is nothing unexpected that mainly study with reference to electronic devices in the classroom centers around how it recovers understudies educational experience. For all intents & purposes unlimited admission to cell phones has not gone unnoticed in the classroom.

Should the manager be concerned? The hierarchical results of cyber-loafing can run from brief delegate diversion to more genuine deplete on organization assets or security (for instance, slower arrange execution or PC infections). Our investigation proposes that if a business needs to diminish cyber-loafing, methodologies that counter workers’ apparent capacity to hoodwink could be helpful. Focusing on responsibility could go about as a hindrance. Delegates could be educated that all electronic action will be observed, yet reconnaissance risks attacking worker protection & making an unpalatable taskplace. Luckily, cyber-loafing is anything but a simply negative task environment conduct. Web perusing can positively affect workers’ feelings, permitting a measure of pressure discharge. It can likewise help profitability in a few conditions by furnishing workers with a short break so they can recoup their fixation To counter this training, observation programming is here & there used to screen delegates’ online exercises. Another methodology is to introduce intermediary servers to avoid access to destinations & administrations, for example, AOL immediate courier, Internet pass on Chat, or Internet betting. Corrective appraises & financed online access after company hours have the same been utilized to shrink rates of cyber-loafing. Web perusing & sending individual messages while at task may be seen by most administrators as an abuse of time & friends assets, yet late research from one SIOP part & his teacher demonstrates that specific Internet exercises aren’t as impeding to worker execution as one may think. Keeping in mind the end goal to prevail with regards to controlling endeavours these techniques ought to be utilized together. • Educating & Informing: No procedures can be convincing if not they are acceptably oversee & rehabilitated into the modify of mindfulness or view of their merits. Concentration to the negative grades of the manner decrease quality. That is, some level of poise can be re established basically by making individuals mindful of the extent of their involvement with a regular faction & connecting its implementation to potential negative results, for instance missed payable dates & negative delegate appraisals. • Computer utilizes strategies: To reduce the adverse effects of cyber loafing & in adding up the affirmative ones, leaders should build & implement clear mechanism with the usage of the Internet at task. • Monitoring: Electronic checking frameworks might be utilized to battle cyber loafing practices of delegates in the task environment. It is revealed that scrutiny that whichever pathway or disallow access to locales along with observing communications narrowed cyber loafing. • Influencing Individual moral insights: An open conversation & expanded worker preparing, viewing both the worker & company side of the problems, will growth wisdom & help delegates by & by describe the legitimate & moral line between use in addition, misuse of the Internet. Building up arranged approaches & present delegate preparing on those policies will raise moral acquaintance with worker & trade problems recognized with Internet sufficient use approaches. • Penalty: Control frameworks are incompetent in preventing cyber loafing except being followed up by remedial outcomes. Blanchard & Henle (2008) noticed that for productive cyberloafing administration to happen, “observing exercises should be caught up with disciplinary activities.” It is discovered that indiduals that knew about others getting discipline for cyberloafing had a lower affinity to cyberloaf (Ugrin et al, 2008).

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Conclusion As cyberloafing is acknowledged as an undesired conduct at task, the members of the poll may underreport their cyberloafing practices yet review technique is a stand out amongst the most legitimate strategies to gauge these factors. A large portion of the linked writing centers around the negative impacts of cyberloafing & clearly administrators should attempt to diminish the negative impacts of cyberloafing by setting approaches containing occasional observing (Henle et al., 2009) or prepare workers, since the vast majority of them don’t know about the expenses of cyberloafing & don’t think they are accomplishing something incorrectly. So it is essential to examine cyberloafing to limit its negative impacts however this examination demonstrates that it may likewise has constructive outcomes like espying the inventive task conduct so it ought not be dispensed with totally. There are thinks about supporting these outcomes & asserting that there is a positive connection amongst social & instructive cyberloafing with inventive conduct (Yoğun, 2015; Van Doorn, 2011). This examination adds to the key administration writing by guaranteeing that administration ought to know about the constructive outcomes of cyberloafing & additionally its negative sides. As per these outcomes the supervisors ought to consider cyberloafing as a break for delegates to think imaginative & know that estimating genuine task hours may not be the right measure for profitability. They ought to characterize the points of confinement of satisfactory cyberloafing & not see individual use of web as an aggregate “loafing” or “slacking”. Likewise delegates endeavoring to build their own particular profitability could profit by this investigation to comprehend the cyber loafing factors influencing imaginative task conduct emphatically & adversely. In this examination, just minor cyber loafing exercises were incorporated. For additionally considers the impact of genuine cyber loafing exercises like betting on the web on creative task conduct may be looked into. The example may be extended or the overview may be connected to private segment to benchmark the outcomes. For most associations, the matter of what comprises sufficient & not allowed digital manner at task remains a foggy area, an spontaneous problem that is matter to management & workers’ deal & acknowledgment. This has encouraged much puzzlement among workers as to position on digital exercises at the tasking environment. Unmistakably, administration must create clear worthy Make use of internet arrangements. While this may not take out all cyber loafing exercises at the tasking environment, it would help ensure that delegates comprehended the organization’s position.

References 1. Cheng, L., Li, W., Zhai, Q., & Smyth, R. (2014). Underst&ing personal use of the Internet at task: An integrated model of neutralization techniques & general deterrence theory. Computers in Human Behavior, 38, 220-228. 2. Askew, K. L. (2012). The Relationship Between Cyberloafing & Task Performance & an Examination of the Theory of Planned Behavior as a Model of Cyberloafing. University of South Florida, Department of Psychology, Graduate Thesis. 3. Blanchard, A.L. & Henle, C.A. (2008). Correlates of different forms of cyberloafing: the role of norms & external locus of control. Computers in Human Behavior, 24(3),1067-1084. 4. Coleman, V. I., & W. C. Borman, W. C. (2000). Investigating the underlying structure of the citizenship performance domain. Human Resource Management Review, 10, 25-44. 5. Henle, C.A., Kohut, G. & Booth, R. (2009). Designing electronic use policies to enhance employee perceptions of fairness & to reduce cyberloafing: An empirical test of justice theory. Computers in Human Behavior, 25, 902-910. 6. Lim, V.K.G. & Chen, D.J.Q. (2009). Cyberloafing at the taskplace: Gain or drain on task? Behaviour & Information Technology. 1-11. 7. Ugrin, J.C., Pearson, J.M. & Odom, M.D. (2007). Profiling cyber-slackers in the taskplace: Demographic, cultural & taskplace factors. Journal of Internet Commerce, 6 (3): 75-89. 8. Van Dyne, L., Graham, J. W., & Dienesch, R. M. (1994). Organizational citizenship behavior: Construct redefinition, measurement, & validation. Academy of Management Journal, 37: 765-802. 9. Özler, D. E. & Polat, G. (2012). Cyber loafing phenomenon in organizations: Determinants & impacts, International Journal of E-business & E-government Studies. 4 (2): 1-15.

Chapter 22 Automation and Financial Planning Tejinder Singh* and Deepika Sohal**

A financial planner is the one who documents the services to be provided and defines his responsibilities along with the responsibilities of the client on the basis of terms and conditions and the consideration in terms of monetary payment. The entire process is known as financial planning. Robo Advisors in the context of insurance or investment assists in personal financial planning without intervention of a human being. The road of success for robo advisors in India is going to be very difficult unlike the countries USA, UK or Japan where people are comfortable with automated mode of financial planning. Financial planning is an essential part of everyone’s life, the execution of which is dependent on the expert who is well aware of the contemporary financial instruments. With the digitalization move in India, many companies have entered India providing online financial advisory cum execution services. In India many multinational companies have already started their services using online tools. Some of these robo-advisors in India are Arthayantra, Big Decisions and Funds India. Arthayantra is one of the oldest and India’s first online financial advisor platform - a Hyderabad based start up.

Introduction Automation can be defined as the emergence of IoT. The increased use of IoT in Banking and Financial Services Market is the outcome of convergence of operational and information technology. The services segment is expected to be the fastest-growing component in the IoT in Banking and Financial Services Market. The services segment consists of insurance, mutual funds, portfolio management services etc. Further, automation and financial technology are synonyms to each other. Tech or financial technology is one of the newly emerging industries in India. This industry includes companies that use technology for the purpose of providing financial services. These companies undertake the operations in insurance, asset management etc. According to the report of The National Association of Software and Services Companies (NASSCOM), India has a presence of roundabout 400 companies in the Fintech industry, with an approximate investment of about $420 million (in 2015). The NASSCOM report also estimated the Fintech software and services market to grow 1.7 times by 2020, making it worth $8 billion. (Source: The Economic Times)

Advantages of Online Investment: 1. No impact of Behavioural Biases: It is quite possible that a human advisor would be biased in his/her recommendations. Robo advisors on the other hand, act sensibly and help you create a financial plan to achieve your aim. 2. Convenient and Time-saving: Robo-advisors offer a user-friendly platform. There is no need to look forward for an appointment with a financial planner each time you need to review your goals. 3. Reach & Speed: Robo-advisors are likely to deliver plans, faster as they are based on some mathematical algorithms which are more of a scientific nature. 4. Cost Efficient: When planning your finances or investments, you may tend to ignore costs specifically when costs are mentioned in percentage terms; it may seem small and insignificant. *Assistant Professor, Apex Institute of Technology, Chandigarh University, Punjab. E-mail: [email protected] **Student, MBA-Banking and Financial Engineering, Apex Institute of Technology, Chandigarh University, Punjab. E-mail: [email protected]

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Robo Advisors and Human Advisors- A comparison The basic difference between a robo and human advisor is their quick response, fee structure along with other points. Development in technology and market growth has a major impact on productivity and employment in market sector. As per the Report released earlier this year of McKinsey & company that approx 60% of all occupation has been operated by technologies. Financial services sector is no exception. This sector emerges with the growth in financial planning in the form of robo advisor. But Robo advisory has not gained strong preferences even globally. Country like India where market is price sensitive the investor’s investment decision is based on the bases of value and more of human interaction. Of course, computers are better and quicker than humans at generating and analyzing data but they lack the judgment of a person and cannot provide the hands-on, in-depth service that a financial professional can. The main question arises is that how do you compete in a market where the product you sell (mutual fund) is the same as what hundreds and thousands of other sellers are offering in your city, where the product is also available online and is also being sold directly by manufacturers cheaper? The situation is related to “Perfect Market Situation” in Economics, where there are large number of buyers and sellers selling homogenous products. In case of financial planning, the challenge of perfect market situation can be handled by a financial planner by offering value addition like freebies etc. in order to have an edge over the competitors. Responsiveness also plays an important role while providing the service in a differentiated manner. Responsiveness is nothing but the ability to react quick manner. It is one of the key elements which help the business to compete in the market. It is the combination of two terms that is value and speed. Both value and speed are directly proportion, as if the value increases the speed automatically increases at its pace. Within responsiveness, value is determined as the information that a prospect can use to move forward in their buying process. (Source: https://www.mckinsey.com) Responsiveness boosts the ability to compete. To support this statement, for instance in an internal video to employees, Ginni Rometty, Chairman, President and CEO, IBM decried the absence of a sense of urgency among IBM employees in responding to prospects and customers and that the company was not being able to deal with the existing customers as well as potential customers in order to handle their queries. In response to customer complaints and dissatisfaction, Rometty unleashed a new rule where employees were asked to respond to customer’s questions or concerns within 24 hours. Advisor may be proving a valuable service. They should focus on core competency and client base they want to cater to. They may be quick to response to a client’s email or queries. Higher the responsiveness higher will be the chances of automation growth. Most of us are accustomed to poor responsiveness. Therefore, many advisors fail to recognize how essential responsiveness is to their efforts to build trust and credibility with prospects. Responsiveness, at every stage of interaction with the customer creates the foundation for true differentiation. Good responsiveness helps develop a level of credibility and trust and this can be used to build a tangible and sustainable competitive advantage and leverage to expand your customer base. When customers are happy with the service, they are willing to recommend an advisor’s services to their friends and family. In this technology advances era automation and artificial intelligence are rapidly growing the advisor will be more focusing on increasing the Responsiveness. So, there are further step followed to increase the responsiveness of clients towards automation with financial planning. The steps are as followsPrioritization of responsiveness: To increase the responsiveness, the first step in the process is to make responsiveness a priority likewise IBM’s CEO, the urgency for responsiveness must come from the top before it can trickle down through the firm. Advisors need to establish expectations for responsiveness within the team. Like IBM chief executive who spelled out to employees what she expects from employees, specific standards for responsiveness need to be created so that everyone has an understanding of what to do. Whether it is employees that engage with customers or the back office support staff, all have to be trained on how to be responsive. A common mistake is to not realize that responsiveness requires an artistic approach. For example, there is a huge difference between an auto-generated email that states “We will get in touch shortly” and a personal email from a team member assuring the client that their request is being looked at.

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Setting parameters for responsiveness: Most of the firms pursue responsiveness as a general idea which is not helpful in establishing trust with the clients moreover without defining matrices; the firm could not know whether they are truly responsive. Advisors can use a flow-chart for the purpose of explaining their existing sales processes and all of the steps required to finalize a sale. Once the process has been mapped, then metrics can be established for how long each of these steps should take. Team members can then be evaluated against these metrics on how fast they respond. By breaking down the sales process and reading the metrics, advisors will be able to see where the gaps in service lie and work towards proactively improving their service. Arming with knowledge: It is important for advisor to have deep knowledge about to aspect of financial planning linked with automation as it will help them to train their staff especially those who are engage with customer relationship. Exceed customer expectation: Customer is the core element for which the advisory puts their efforts to increase responsiveness. The more we fulfill the expectation of the client the more he will enhance the value and the speed will automatically increase which tends to higher the responsiveness. (Source: http://www.wealthforumtv.com)

Style of Recommendations Human financial advisors are human first and investment advisers later. If your advisor is risk averse, he/she will always discourage you from taking the risk, irrespective of your risk appetite. Similarly, his/her response to your queries may differ depending on market conditions, business targets they may be working towards and your rapport with him/her. Unlike this, robo-advisors offer you consistent and instant advice. Robo advisors do not provide service according to the investor’s net worth. Investors with nominal capital often feel dejected. It has been observed in the past that very few advisors are keen to offer their services to investors with small asset base. The focus of the human advisors is on the acquisition of High-Net-worth Individual (HNI) clients. With robo advisors, investment advice can be instantly and consistently accessed because of their omnipresence.

Regulatory Control of SEBI Code of Ethics lay down the principles to be followed by financial planners under a regulated board called Financial Planning Standards Board of India (FPSB). These principles are regulated by Financial Planning Standard Board of India (FPSB) which needs to be followed by Financial Advisors under Code of Ethics while rendering financial services to the clients keeping in mind their objectives and interest. Principle 1 – Prioritization of Customers Interest: Under this principle, the financial advisor has to give priority to the client’s interests instead of his own interests. To exemplify, the advisor should not focus on the revenue generation from the product to be sold. Principle 2 – Integrity: Under this principle, the financial planner needs to be honest and sincere in their dealing with the client keeping in view the professionalism. Principle 3 – Objectivity: The objectivity principle states that the financial planner should be independent and support his opinion with unbiased evidence. The opinion should be based on research and facts, not merely on the basis of planner’s opinion. Principle 4 – Provide impartial service to the clients: Under this principle, the financial planner should treat the clients in the same manner that they would want to be treated. Principle 5 – Professionalism: For the purpose of professionalism, the financial planner needs to keep their conduct with client full of dignity, respect and courtesy Principle 6 -Competency: It is the sum total of skills, knowledge and efforts to perform the job.The financial planner should aim to maintain an adequate level of abilities, skills and knowledge in the wake of dynamic changes in the financial services industry. The competency level of the financial planner shall help him/her in giving proper guidance to the investor.

Chapter 22: Automation and Financial Planning135 Principle 7 – Confidentiality: It is the primary duty of the financial planner not to share the information of the client with any unauthorized person. Principle 8- Diligence: The execution of the services by a financial planner to the investor must be carried out in a proper and timely manner. (Source: www.fpsb.co.in, https://www.sebi.gov.in, https://www.fpsb.co.in)

Limitations Despite many advantages, the robo-advisors suffer from the risk of online frauds, hacking of online portals especially in case of senior citizens. Even the sizeable portion of the young population of our country does not find the online versions of investment as not Safe Avenue for parking their hard-earned money.

The Road Ahead: Paytm whose promoter is One97 Communication Ltd. and has many investors backed with around 100 million wallet users. Paytm has the chances of writing a successful chapter in the history of wealth management business in India. The process of Paytm entry is on the finishing stages where necessary arrangements are being made with Asset Management Companies (AMCs). Paytm Money is going to start operations with 12 AMCs in the first phase of its entry into mutual fund business. The company is planning to set up mutual fund business especially in those areas where physical distributors are not present. The role of the online financial services providers is going to crucial in the penetration of financial services business like life insurance, general insurance, mutual funds, portfolio management services etc. With increase in the government initiatives for digitalization by the Indian government, automation in financial planning is going to be very helpful in the light of entrepreneurship opportunities. More and more people can be encouraged to start their own ventures in the field of financial services resulting into considerable increase of the contribution of financial services sector to the GDP of the country.

References 1. 2. 3. 4. 5. 6. 7.

https://www.economictimes.com (Retrieved 2018, May 20). https://www.sebi.gov.in. (Retrieved 2018, May 25). https://www.fpsb.co.in, (Retrieved 2018, May 31). https://www.amfiindia.com (Retrieved 2018, May 30). http://www.wealthforumtv.com (Retrieved 2018, May 27). https://www.mckinsey.com/ (Retrieved 2018, June 2). “Fintech sector proving to be talent magnet”. The Economic Times. 26 April 2016. Retrieved 22 May 2016.

Chapter 23 Prospects of Cloud Computing in Business Atul Sharma*, Deepika Sharma** and Gurmandeep***

Cloud Computing is the most emerging trend in the era of technology. It is driving the future and transforming the world into a digital world as it hosts and delivers services through internet. Business is considered as the backbone for developing a country and technology is playing a very keen role in every activity of the business. Small to medium size businesses (SMB’s) are getting benefits by enabling clouds to do their businesses where it is assisting in controlling the cost, scalability, security and deals with carbon footprints that are a major concern of any organization. To deal with such issues cloud computing can act as a catalyst. The main purpose of this article is to analyze the benefits of adopting cloud computing in business firms for their better growth and development. Moreover, the present research work also focuses on attaining competitive advantage. Every technology has both positive as well as negative impact so as of cloud computing. If organization cannot afford basic requirements like consistent Internet access, connection speed or bandwidth then cloud computing may not be suitable for your business. Further, the paper also depicts the architecture, various types of clouds and services offered by cloud computing. This paper is based on the secondary study. The data for concluding the topic is taken from various research papers, books, internet, journals etc.

Introduction Cloud computing is a set-up of remote servers facilitated on the Internet to handle, store, and process information, instead of a local server or a PC. In basic terms cloud computing is the conveyance of computing administrations like storage, servers, networking, databases, software and more over the Internet (“the cloud”). Different companies (Amazon Web Service (AWS), Microsoft Azure, Google Cloud Platform, Red Hat.etc.) which offer these computing services are called cloud providers and typically charge for cloud computing services based on usage.

Benefits of cloud computing to business: Just like any evolving technology cloud computing has some direct and indirect benefits to business firms. Starting from startups to big corporate cloud computing is beneficial in all business aspects as these firms can deliver services to their clients using the internet and without setting up hardware and software locally at their office. Following are the few services which a business firm can provide to a customer using Clouds: • • • • • •

Making new applications and administrations Storage, reinforcement, and recover data Hosting of sites and websites Flow of audios and videos Supplying software on request Analyzing information for patterns and making predictions

*Assistant Professor, USB, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor, USB, Chandigarh University, Punjab. E-mail: [email protected] ***Assistant Professor, USB, Chandigarh University, Punjab. E-mail: [email protected]

Chapter 23: Prospects of Cloud Computing in Business137 1. Control Cost: Cloud computing helps to reduce hardware equipment purchase and maintenance cost and software deployment and upgrade cost. Energy consumption and wages of IT staff reduced. 2. Scalability: Business can scale up as demand increases and scale down as demand decreases with the help of cloud computing efficiently without manual intervention. Cloud computing handle changing demand for storage, hardware or software up gradation, licensing etc. Cloud computing saves the time of businesses which can be utilized on business without worrying about purchasing and implementing expensive hardware and software things. 3. Security: Keeping data on cloud make it more secure than on local server of the business firm. Data is duplicated automatically so there are no chances of losing data in any crash. If any system gets damaged while working even then data can be easily recovered from a cloud. 4. Flexibility: Cloud computing gives flexibility to the employees as well as to the organization as employees can easily access any information through the internet. They can share files or documents easily from remote locations. Resources of the organization can simultaneously accessible on-demand by many employees. 5. Mobility: Cloud computing offers access to data and applications to users at anytime from anywhere which makes a business more productive. 6. Collaboration and Competitiveness: Cloud computing enhance collaboration by giving a platform to a diverse group of people to exchange their information and ideas. Such things improve customer service and competitiveness. 7. Carbon Footprint: It is one of the best solutions to save energy and reducing carbon footprint. Business can use resources according to their requirements so there will be no resources wastage.

Literature Review Xue and Xin (2016) carried a study to identify the limitations and advantages of adopting cloud computing in the business sector. Moreover, the researcher has also suggested some solutions to overcome the problems caused by cloud computing. The researcher used secondary data for conducting the study. The data was collected from various books, journals, research papers, magazines and internet. In the end, the researcher has suggested some solutions to tackle data stealing, malware attack, wrapping attack and authentication attack problems. Truong (2010) carried a study to find management perspective of cloud computing and its effects on small business. The main aim of the study is to generate a research model of cloud computing for small-scale business. The researcher has described various moderators like security, intellectual property and reliability. Further, the researcher has also mentioned some resources related to cloud computing in his model and further, he has also given various advantages from the model like advancement and association of cloud computing. The researcher used various research papers, journals, magazines in order to collect the data. Zhang and Cheng et.al (2010) conducted a secondary study to know the main concepts of cloud computing architecture, implementation and research challenges. Further researchers also described the challenges of cloud computing. In this, the researcher has identified three main types of models like SaaS, PaaS and IaaS. The researcher collected secondary data from books, magazines, journals and internet.

Research Problem The purpose of this research study is to know the advantages, disadvantages, various categories of clouds computing. Moreover, this research paper also concentrates on knowing the merits of cloud computing in small and middle scale organizations and their challenges.

Methodology The current research is based on the secondary study. For which the data is collected from various websites, magazines, journals, newspaper and reading material available on the internet.

Findings & Discussion In the present scenario, cloud computing is taking over each and every business. Now a day all the business activities are done digitally. This change has shown a positive effect on all the business firms. As the work is completed in a

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very short time, a large amount of data can be stored in one place. The above model shows the whole theory of cloud computing and how we can implement the same in our business.

Figure 1: Cloud-computing-architecture Cloud computing design involves numerous cloud parts, which are loosely coupled. Internet: Normally with the internet, each of the ends is associated with a network. The entire cloud configuration is away to furnish the customers with high transmission limit, enabling customers to have consistent access to data and applications, on-request agile network with likelihood to move quickly and viably between servers or even amongst clouds and specifically network security. We can extensively isolate the cloud design into two sections: 1. Front End: The front end implies the client part of cloud computing structure. It involves interfaces and applications that are required to get to the cloud computing stages, for example, Web Browser. 2. Back End: The back End implies the cloud itself. It contains the significant number of resources required to give cloud computing organizations. It incorporates a lot of data storage, virtual machines, administrations, security framework, servers and so forth. Cloud computing has turned out to be one of the transformational advancements that are very important to get better methods for working together. The main benefits business organizations get from cloud computing is reducing cost, more security, reducing carbon-footprints and better collaboration among business partners.

Types of Clouds: There are three main types of clouds: Public cloud, Private Cloud and Hybrid Cloud.

Chapter 23: Prospects of Cloud Computing in Business139 Public Cloud: A public cloud provides the services and infrastructure off-site over the Internet and it is accepted and deployed by the third-party called cloud service provider e.g: Microsoft Azure. Public clouds offer the greatest level of efficiency in shared resources. Private Cloud: Private clouds offer more security, privacy and control over resources used exclusively by business firms. So private clouds are built exclusively for one organization and physically located onsite or offsite. Hybrid Clouds: Hybrid Clouds combine public clouds and private clouds. A hybrid cloud gives more flexibility to business by permitting data and application between both private and public clouds. Architecture of Cloud Computing:

Services offered by cloud computing: The conveyance of cloud computing administrations can be separated into three models: 1. Software as a Service (SaaS) 2. Platform as a Service (PaaS) and 3. Infrastructure as a Service (IaaS).

Figure 2: Different-types-of-cloud-computing-service-models 1. Software as a Service (SaaS): SAAS (Software as a Service) is a software dispersion model in which applications are facilitated through a merchant or service supplier and made accessible to clients over a network, ordinarily the Internet. Software as a Service has turned out to be progressively pervasive conveyance model as basic advances that help Web administrations and Service-oriented engineering (SOA) develop and latest improvement approaches, for example, Ajax, become famous. SAAS is firmly identified with the ASP (Application service provider) and on request figuring software conveyance models. IDC recognizes two little various conveyance models for SAAS such as the facilitated application model and the software advancement model. Various advantages of utilizing SAAS are: a. Less demanding organization. b. Programmed updates and fix administration. c. Similarity: all clients will have a similar form of software. d. Less demanding joint effort, for a similar reason. e. Worldwide availability.

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2. Platform as a Service (PaaS): PAAS (Platform as a Service) is a cloud computing model that conveys applications over the web. In a Platform as a Service model, a cloud supplier conveys software and hardware tools, for the most part, those required for application advancement, to its clients as a service. A PAAS supplier has the software and hardware on its own framework. Subsequently, PAAS liberates clients from installing in-house software and hardware to develop or run the latest application. PAAS doesn’t supplant a business’ whole framework but instead, a business depends on PAAS suppliers for key services, for example, Java advancement or application hosting. However, a PAAS provider supports all the fundamental computing and software; clients just need to login and begin utilizing the platform usually through a Web program interface. PAAS providers at that point charge for that access on a for each utilization premise or on a month to month premise. Some characteristics are: a. Adaptability and auto-provisioning of the basic foundation. b. Security and excess. c. Construct and distribution tools for fast application administration and distribution. d. Mix with another framework segments, for example, web administrations, databases, and LDAP. 3. Infrastructure as a Service (IaaS): Infrastructure as a Service (IAAS) is a type of cloud computing that gives virtualized processing resources over the web. In this, an outsider supplier hosts servers, storage, hardware, software and some other framework mechanisms on the behalf of its clients. IAAS suppliers also host clients’ applications and manage assignments including system maintenance backup and resiliency planning. IAAS platforms provide extremely scalable resources that can be reasonable on-request which makes it a suitable for the workload that is temporary, assessment or change suddenly. Other features include the automation of managerial tasks, dynamic scaling, work area virtualization and approach based administrations. In fact, the IaaS advertise has a moderately low boundary of entry, but it may require considerable money related interest keeping in mind the end goal to construct and support the cloud framework. Mature open-source cloud management structures similar to Open Stack are accessible to everybody and give strong a software establishment to organizations that need to manufacture their private cloud or become a public cloud provider. But at the same time, cloud computing has many limitations as well.

Limitations and their solutions of cloud computing: Although it is claimed that adoption of cloud computing will bring your businesses to the path to more success due to benefits as mentioned, there are limitations which are not negligible. There are always chances of cloud crash, traffic over cloud and data loss. As data is one of the assets of any businesses and when this data is stored on clouds it gives an indirect invitation to hackers to steal the data like sales record, financial reports, profits reports etc. Following are the basic limitations of cloud computing: 1. Security and Privacy: Security and privacy are one of the most challenging things in cloud computing especially when data is too sensitive. It is very difficult to trust and rely on the cloud provider. Business organizations must be defined user’s access to data and services and there should be intelligence for network protection. 2. Vulnerability to attack: Some cloud attacks, for example, malware injection attack, authentication attack, SQL injection, wrapping attack and Denial of Service always gives the challenge to implement cloud computing in business. To tackle these attacks some solutions are offered by cloud providers like login session, via upgrading the security among the communication through the web server and a web browser by adding an extra bit, stronger authentication and ID management for both cloud suppliers and clients etc. 3. Expensive: Cloud computing is expensive due to setting up cloud cost, expenses to maintain the network, data storage cost and integrating and testing applications are the costs you need to plan for when moving to cloud computing. But cloud computing also reduced the cost of businesses like hardware, software, staff cost up to large extent. 4. Downtime: Cloud computing is dependent on internet and without internet; a business firm is unable to access data from the cloud. Due to any hardware failure, cloud platform failure or any other failure a business will have to face huge loss as a business can’t afford a prolonged delay of services. To overcome it agreements should be set up between clients and cloud providers to maintain uptime.

Chapter 23: Prospects of Cloud Computing in Business141

Conclusions Cloud computing is a rising innovation and draws a lot of awareness recently. It appears to be very valuable for organizations, but in the meantime, it demonstrates some confronts. Many businesses may see cloud computing as a predictable means of success but some others may still be uncertain in adopting it. This research attempts to find out the relationship between cloud computing and competitive benefit for small organizations. Although small businesses will advantage extensively from utilizing cloud computing, the main question is how cloud computing can allow small organizations to generate and maintain their competitive benefit while their competitors have the equivalent right of entry to this source.

References 1. Colin Ting Si Xue and Felicia Tiong Wee Xin2 (2016). Benefits and challenges of the adoption of cloud computing in business, International Journal on Cloud Computing: Services and Architecture, 6(6), 1-15. 2. Cloud ComputingArchitecture. Retrieved from http://www.w3schools.in/cloud-computing/cloud-computing-architecture 3. Dr. Dothang Truong (2010) How Cloud Computing Enhances Competitive Advantages. A Research Model for Small Businesses, The Business Review, Cambridge, 15(1), 59-65. 4. Dhillon B. (2005, December 10). Different types of cloud computing service models, Retrieved from http://www. bluepiit.com/blog/different-types-of-cloud-computing-service-models/ 5. Qi Zhang · Lu Cheng · Raouf Boutaba (2010) Cloud computing: state-of-the-art and research challenges, J Internet Serv Appl, 1, 7-1.

Chapter 24 Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier in Supply Chain Network Simranjeet Kaur* and Jaskirat Singh**

With the advent of technology and increase in competition the way manufacturing organizations choose suppliers to make purchase decisions has become important aspect of doing business. Since supplier selection is affected by multiple factors this paper introduces a new methodology for supplier selection, unifying numerous techniques viz. Factor Analysis, FAHP (Fuzzy Analytic Hierarchy Process), TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) and DEA (Data Envelopment Analysis) to analyse and select the best supplier. Primary data for analyses is collected using questionnaire. Then using Factor Analysis important factors are extracted out. Afterwards, extracted factors are taken as basis in FAHP where we use triangular fuzzy numbers in all pair wise comparison matrices to get criteria weights followed by TOPSIS. Then, these qualitative variables have been transformed into a quantitative output in DEA and final results are used for the ranking of suppliers. The complete methodology is exhibited with the help of real world case thus enabling manufacturing organizations to select best supplier for their business.

Introduction In today’s time with such intense competition each manufacturing organization is seeking to have long term relations with best suppliers because selecting the best supplier has become very crucial for longevity of a manufacturing organization (Chan, Kumar, Tiwari, Lau and Choy, 2008). Because a right supplier provides the competitive edge to manufacturing unit by providing raw material at optimum prices, place and time (Kang, Lee and Yang, 2012), as a result, the concern of supplier selection has attracted much attention in the field of Supply Chain Management. But supplier selection is tedious task since there are many factors that comes into picture while selecting one. Since 1960s may researchers have studied and understood how numerous factors impact the selection decision (Wang and Yang, 2009). Dickson (1966) identified over 20 attributes used by a firm to select the best supplier.

Literature Review As supplier selection is a Multiple Criteria Decision Making (MCDM) problem which deals with many factors affecting it but in case of large number of variables (out of which some are related to each other) it is not possible to evaluate suppliers by directly considering all those variables as criteria. Thus, to reduce the number of variables into relevant factors, factor analysis is used. Factor analysis primarily used for data reduction and summarization. By using factor analysis numerous variables are converted into few underlying factors by examining interrelations among variables. Generally, various variables exhibit correlation among themselves, factor analysis is used to explain and extract a new *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor, Apex Institute of Technology -MBA, Chandigarh University, Punjab. E-mail: [email protected]

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 143 set of factors to replace the original set of variables. Hence, researchers have applied factor analysis across supply chain systems many times. King and Jacobson (2001) used factor analysis on supermarket management practices. Ngai, Cheng and Ho (2004) reported the results of a survey on the critical success factors (CSFs) of web based supply chain management systems. AHP, one of the most popular MCDM methods for decision making is being used in many sectors. The AHP is the quantitative techniques which was developed by Saaty (1980) helps in the easing out the complex decision making process and gives framework to choose among number of solutions from set that best solves the problem (Cho, Lee, Ahn, Hwang, 2012). Though it is very easy to implement yet many researchers argue and question AHP’s ability to handle uncertainty in decision maker’s perception to nail a particular value. To overcome this limitation in this paper decision maker is using fuzzy scale. The method used in fuzzy scale is Chang’s Extent Analysis. Zadeh (1975a, b) showed the interrelation between the fuzzy set theory and decision-making problem. He used the fuzzy set theory to overcome the problem of uncertainty in decision making. So in given study we are using triangular fuzzy number (TFN). For a fuzzy event if a1 represent the smallest possible value, a2most promising value and a3the largest possible value TFN can be represented as a triplet (a1, a2, a3). The use of techniques analytic hierarchy process (AHP) and fuzzy AHP (FAHP) for supplier selection decision is widely used since last two decades. Chan (2003) used AHP method and constructed an interactive selection model to ease the supplier choosing process. Further, Chan and Chan (2004) with AHP introduced quality management system principles to improve the model. With the help of fuzzy extended AHP (FEAHP) Chan and Kumar (2007) demonstrated how to select the best supplier globally. In airline industry how AHP can be used to implement a decision support system (DSS) to obtain high quality supplier is proposed by Chan, Chan, Ip and Lau (2007). To address the problem of both quantitative and qualitative decision factors Chan, Kumar, Tiwari, Lau and Choy (2008) further gave a fuzzy modified AHP (fuzzy-AHP) approach. Lee (2009), with the help of extent analysis method (EAM) and the BOCR concept, contrived a FAHP model to study the impact of numerous factors that effects the supplier selection in supply chain management. TOPSIS, developed by Hwang and Yoon in 1981, is a classical MCDM method which may provide the bases for developing supplier selection models. (Behzadian, Otaghsara, Yazdani and Ignatius, 2012 survey of TOPSIS applications) explained that usage of TOPSIS to obtain an optimum solution from number of solutions across various areas. TOPSIS as mentioned earlier helps in selecting the best out of alternatives does so by ranking of alternatives cardinally (Chen and Hwang, 1992; Yoon & Hwang, 1995). Few other applications in the field of supplier selection using TOPSIS have been also given by researchers. Safa, Shahi, Haas & Hipel (2014) (Supplier selection process in an integrated construction material mgmt model) deciphered that in construction projects an ideal supplier plays vital role and if selected carefully helps in streamlining the procurement process. Singh, Rajput, Chaturvedi and Vimal (Supplier selection by TOPSIS method for automotive industry) applied TOPSIS for supplier selection in an automotive industry. DEA, given by Charnes, Cooper & Rhodes (1978), is a nonparametric mathematical method which calculates how efficient is the ability of each decision making unit (DMU) relative to the efficient frontier, determined by the most efficient DMUs under study, based on multiple observed inputs and outputs. As DEA evaluates multi criteria systems hence it is used in numerous decision making problems (Garfamy, 2006).It also helps in analysing the sources of inefficiency for every evaluated unit and eventually helps in quantifying. Since DEA helps in distinguishing the best decision making units and others thus giving the scope for improvement of non performing decision making units (Weber, 1996). In this study, DEA method is used to evaluate the efficiency and effectiveness of suppliers on the criteria where the input and output variables need to be selected for evaluating the overall supplier performance. From the discussion above it can concluded that a supplier selection problem is a MCDM problem and DEA can use used as one of the methods to select best from given set of supplier (Weber, 1996; Liu et al., 2000). Wu & Blackhurst (2009) implemented augmented DEA approach for supplier judging and selection. Toloo & Nalchigar (2011) gave a new insight and used integrated DEA model to obtain the efficient supplier when scale of data is different i.e. cardinal & ordinal data. Parthiban, Zubar & Katakar (2013) presents the integrated approach of MCDM techniques such as fuzzy logic, strength-weakness-opportunity-threat (SWOT) analysis, and DEA for the final selection of suppliers.

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Research Problem Objective: Primary objective of research is to asses & determine the best performing supplier using multiple techniques such as Factor Analysis, Fuzzy AHP, TOPSIS and DEA Approach. Since years, several techniques and models have been utilized for the selection and evaluation of suppliers by combining multiple techniques. The proposed hybrid method uses Factor Analysis to unearth factors and then fuzzy AHP is used to determine the weights of each alternative hence forth applying TOPSIS to find closeness co-efficient of all alternatives and after that using DEA approach to obtain the most efficient suppliers in the final selection of the process.

Methodology The research methodology pertaining to objective of the study is as following: Sources of Data: Research is carried out on Primary Data collected via structured interviews through questionnaire. Area of Study: The area from where the response is collected NCR Region Delhi. Number of Respondents: The primary respondents are suppliers in the steel industry. In total 160 suppliers were interviewed through questionnaires. Techniques Used: The techniques used to analyse the data are Factor Analysis, Fuzzy Analytic Hierarchy Process, Technique for Order Preference by Similarity to Ideal Solution and Data Envelopment Analysis. Tools Used: Microsoft Excel 2010, SPSS and DEA Solver are used to perform the above mentioned techniques on data. Process Flow Chart: The data analysis process flow chart is as following:

Fig. 1. Process Flow Chart

Findings and Discussion In this section, a stepwise demonstration of methodology is given to exemplify how the proposed approach can be employed for the evaluation of suppliers in a steel industry. Three suppliers, SP1, SP2, and SP3 are involved for evaluation, 30 qualitative & 2 quantitative variables will be used to evaluate & select the best performing supplier.

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 145

Extracting Factors from Qualitative Variables Factors are unearthed from the variables using factor analysis by following the steps: Step 1: Formulation of the Problem The variables to be included in the factor analysis should be specified which are appropriately measured on an interval or ratio scale. Step 2: Data Collection from Respondents. Response from 160 owners of the manufacturing firms were obtained with the help of structured interviews through questionnaire. Respondents were asked to answer questions on a 7-point Likert scale. How much rating does ‘quality management’ deserve from manufacturer’s point of view on a 7-point scale? Is ‘product price’ is important from manufacturer’s point of view on a 7-point scale? Pertaining to current study in Table 1 all the qualitative variables affecting supplier selection decisions and their definitions are given. Table 1: Qualitative Variables Affecting Supplier Selection Decisions and their Definitions Sr. No.

Variable Name

Definition

1

Quality Management System

Is a collection of business processes focused on achieving your quality policy and quality objectives

2

Environmental Management Includes the organizational structure, planning and resources for developing, System implementing and maintaining policy for environmental protection.

3

Information System

Focuses on integrating information technology solutions and business processes to meet the information needs of businesses and other enterprises.

4

Innovation Capability

Refers both to product and organizational innovation.

5

Honesty

The future success of managers and leaders center on their ability to develop and sustain the levels of trust in an organization and its leadership.

6

Procedural Compliment

A state of being in accordance with established guidelines and specifications.

7

Technical Problem Solving

Involves the gathering and processing of data to solve problems.

8

Infrastructure

Management of essential operation components, such as policies, processes, equipment, data, human resources, and external contacts, for overall effectiveness

9

Service Performance

Monitor, analyze, and report on the end-to-end service performance.

10

Product Price

The purchase cost of materials.

11

Logistics Cost

Cost of the flow of goods between the point of origin to point of consumption.

12

Value Added Cost

Resources consumed in enhancing the value of a good or service

13

Discount For Bulk Order

Discount given on an order to buy a large quantity of a good at once.

14

Discount For Early Payment Discount given on an order for early payment.

15

Ordering Cost

Costs of ordering a new batch of raw materials. It also includes order placing cost, inspection cost, documentation cost.

16

Order Lead Time

The duration time of setting an order to the receipt of the order.

17

On Time Delivery

The capability to follow a set delivery schedule.

18

Trade Restrictions

An artificial restriction on the trade of goods and/or services between two countries.

146


19

Reliable Delivery Method

Demonstrates the degree to which a supplier is able to serve its customers within the promised delivery time.

20

Error Free Product Type & Quantity

Errors out of the design process while insuring target costing and timely delivery.

21

Inventory Availability

The goods and materials that a business holds for the ultimate purpose of resale (or repair).

22

Customization

Adding extra capabilities that are not included in the off-the-shelf package involves writing additional software code.

23

Negotiability

Describing a good or security whose ownership is easily transferable from one party to another.

24

Variety Flexibility

Allows the system to react in case of variety changes, whether predicted or unpredicted.

25

Service Flexibility

Allows the system to react in case of service changes, whether predicted or unpredicted.

26

Product Reliability

The probability that it will perform satisfactorily under stated conditions for a particular period of time.

27

ISO Certifications

The International Standards Organization develops quality management guidelines for companies around the world.

28

Warranty

A guarantee or promise which provides assurance by one party to the other party that specific facts or conditions are true or will happen.

29

Return Rate

Rate of return is a profit on an investment over a period of time, expressed as a proportion of the original investment.

30

Long Durability

Affirmation material will have a relatively long continuous useful life, without requiring any uncalled maintenance.

Three Quantitative Variables used in this study are as follows: 1. Rejection Percentage (Output 1) – Refused part percentage in one million 2. Service Contract Cost Percentage (Output 2) – After Sale Warranty Claim Percentage 3. On Time Delivery Percentage (Output 3) – Percentage of Number of Units Delivered on Time Step 3: Apply factor analysis through SPSS In SPSS using factor analysis a correlation matrix is constructed and for the factor analysis to be appropriate, the variables must be correlated. Bartlett’s test of sphericity which is based on a chi-square transformation of the determinant of the correlation matrix is used to check the null hypotheses i.e. there is no correlation between the variables. A large value of the test statistic will favour the rejection of the null hypothesis. Kaiser-Meyer-Olkin (KMO) helps in determining if data can be used to perform factor analysis or not. Generally, a KMO value greater than 0.5 is desirable. Table 2: KMO and Bartlett’s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett’s Test of Sphericity

.662 Approx. Chi-Square

7267.441

Df

429

Sig.

.000

From Table 2 it is concluded that null hypothesis is rejected. Thus, concluding that the population correlation matrix is not an identity matrix, Moreover, the value of the KMO statistic is 0.662 hence required for factor analysis.

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 147 Step 4: The method of factor analysis chosen here is Principal Component Analysis (PCA) in which total variance in the data is considered. This method is considered here since our primary concern is to determine what are the least number of factors that will cause maximum variance in the data. Table 3: Description of Total Variance Obtained Using PCA Component Initial Eigenvalues

Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

Total

% of Cumulative Total Variance %

% of Cumulative Total Variance %

% of Cumulative Variance %

1

8.463

28.209

28.209

8.463

28.209

28.209

6.766

22.554

22.554

2

5.838

19.459

47.668

5.838

19.459

47.668

4.970

16.568

39.122

3

4.615

15.382

63.050

4.615

15.382

63.050

4.082

13.608

52.730

4

2.406

8.019

71.069

2.406

8.019

71.069

3.908

13.026

65.756

5

1.676

5.586

76.655

1.676

5.586

76.655

3.270

10.899

76.655

6

1.107

3.690

80.345

7

.975

3.250

83.595

8

.832

2.773

86.368

9

.779

2.598

88.967

10

.591

1.969

90.936

11

.523

1.743

92.679

12

.380

1.266

93.944

13

.316

1.053

94.998

14

.268

.893

95.891

15

.231

.769

96.661

16

.196

.655

97.315

17

.154

.512

97.827

18

.138

.459

98.286

19

.110

.367

98.653

20

.103

.343

98.996

21

.080

.265

99.261

22

.063

.211

99.472

23

.049

.164

99.636

24

.035

.116

99.752

25

.021

.071

99.823

26

.017

.058

99.881

27

.015

.052

99.933

28

.012

.040

99.973

29

.006

.021

99.994

30

.002

.006

100.000

From Table 3 it can be inferred that highest the factor’s variance value highest is its priority. Thus five components/ factors will be formed under which all the variables will fall.

148


Step 5: Now factors are rotated to obtain the factor loadings to check the correlation between factors and variables. Highest the coefficient value highest is the correlation between the factor and variable. This is done to obtain the better factors by rotating across the axis. Table 4(a): Rotated Component Matrixa Sr. No.

Variable Name

Component/Factors 1

2

3

4

5

1


-.374

.027

.084

-.129

.202

2

Order Lead Time

.258

.131

.735

.022

-.108

3

Environmental Management System

-.853

.090

-.054

-.314

.186

4

On Time Delivery

-.093

.021

.845

.362

.028

5

Information System

.936

.057

-.084

.054

-.136

6

Product Reliability

-.206

-.107

.245

.026

.838

7


.194

.050

.259

.863

-.064

8

Customisation

.132

.088

.098

.485

-.015

9

Product Price

-.077

.915

-.012

.058

.010

10

Logistics Cost

.113

.899

.068

.058

-.022

11

ISO Certifications

-.331

-.176

-.036

-.156

.687

12

Negotiability

.190

.073

.258

.878

-.023

13

Value Added Cost

.091

.876

.046

.097

-.010

14


.917

.073

-.034

.064

-.058

15

Warranty

-.051

.049

-.095

.052

.557

16

Trade Restrictions

-.071

.039

.838

.344

.100

17

Honesty

.947

.087

-.016

.025

-.086

18


.921

.093

.044

.006

-.067

19


-.835

.115

-.015

-.366

.200

20

Infrastructure

-.817

.098

.039

-.360

.204

21


-.036

.066

.856

.249

.070

22

Discount for Bulk Order

-.038

.881

.110

-.017

.008

23

Discount for Early Payment

.103

.907

.073

.026

-.031

24


-.045

.053

.886

.261

.075

25

Service Performance

.771

.084

.238

-.040

-.150

26

Ordering Cost

-.068

.863

.017

.090

.011

27

Variety Flexibility

.183

.062

.238

.905

-.050

28

Service Flexibility

.042

.040

.433

.717

.067

29

Return Rate

-.185

-.096

.203

-.016

.911

30

Long Durability

-.184

.222

-.072

-.062

.834

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 5 iterations.

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 149 Step 6: Categorization of Variables under the Factors. From Table 3 and Table 4 the four Factors obtained can be named as Management, Cost, Delivery, Flexibility, Quality. Under these four factors various variables which fall will be as following: Table 4: Categorization of Variables under the Factors Management

Cost

Delivery

Flexibility

Quality



Order Lead Time


Product Reliability

Service Performance


Trade Restrictions

Negotiability

Warranty

Information System

Infrastructure

On Time Delivery

Customization

ISO Certifications


Service Performance


Service Flexibility

Return Rate


Product Price


Variety Flexibility

Long Durability


Logistics Cost

Honesty

Value Added Cost

Infrastructure

Discount For Bulk Order

Environmental Management System

Discount For Early Payment Ordering Cost

Finding weights of alternative w.r.t each criterion In this section, as AHP criteria the factors obtained using factor analysis will be used and hence forth to obtain criteria weights fuzzy AHP will be applied. Fuzzy-AHP methodology is used to include both qualitative and quantitative aspects of decision maker knowledge in design models (Isaai, Kanani, Tootoonchi and Afzali, 2011).

For numerical illustrations five Factors obtained are renamed as Management (Mg), Cost (C), Delivery (D), Flexibility (F) and Quality (Q). As it is impossible to carry out mathematical operations on linguistic values thus linguistic scale must be transformed into a fuzzy scale. One can use different fuzzy scales. The scale used for analysis in this paper is shown as below: Table 5: Triangular Fuzzy Scale Linguistic scale

Fuzzy scale

Fuzzy reciprocal scale

Equal

(1,1,1)

(1,1,1)

Important

(4/5,2,2.99)

(1/2.99,1/2,1/0.8)

More Important

(9/5,3,3.99)

(1/3.99,1/3,1/1.8)

Very Important

(14/5,4,4.99)

(1/4.99,1/4,1/2.8)

Since we are using the Chang’s extent analysis (Chang, 1996) thus extent analysis is applied after getting the pair-wise comparisons between criteria and alternatives. Hence Table 6 depicts the fuzzy comparison matrix of the criteria with respect to the overall objective.

150

Part II: Emerging Innovation Perspectives Table 6: The Fuzzy Comparison Matrix of Criteria with Respect to the Overall Objective

O

Mg

C

D

F

Q

Weight

Mg

(1,1,1)

(0.8,2,2.99)

(1.8,3,3.99)

(1.8,3,3.99)

(2.8,4,4.99)

0.36

C

(1/2.99,1/2,1/.8)

(1,1,1)

(0.8,2,2.99)

(0.8,2,2.99)

(1.8,3,3.99)

0.27

D

(1/3.99,1/3,1/1.8)

(1/2.99,1/2,1/.8)

(1,1,1)

(0.8,2,2.99)

(1.8,3,3.99)

0.22

F

(1/3.99,1/3,1/1.8)

(1/2.99,1/2,1/.8)

(1/2.99,1/2,1/.8)

(1,1,1)

(0.8,2,2.99)

0.14

Q

(1/4.99,1/4,1/2.8)

(1/3.99,1/3,1/1.8)

(1/3.99,1/3,1/1.8)

(1/2.99,1/2,1/.8)

(1,1,1)

0.01

The steps of the extent analysis method on fuzzy-AHP are given as: If object set is defined as X = (x1, x2, . . ., xn), and a goal set is defined as U = (u1, u2, . . ., um). Using method of extent analysis, taking each object and with the Chang’s extent analysis for each goal, gi, is performed, respectively. Hence, for each object m extent analysis values can be calculated as:

(1)

are triangular fuzzy numbers whose parameters are l, m, and u. Where l is least where all the possible value, m is the most possible value, and u is the largest possible value, respectively. A triangular fuzzy number is represented as (l, m, u). The steps of Chang’s extent analysis can be given as: Step 1: We can define the fuzzy synthetic extent value with respect to the ith object is as

To get

(2) , perform the fuzzy addition operation of m extent analysis values for a particular matrix such that

(3)

and to obtain

perform the fuzzy addition operation of

values as given below

(4)

and then compute the inverse of the vector in Eq. (4) determined by

(5)

For each criterion the fuzzy synthetic extent value is calculated by using Step 1. Now for the value of (l1-u1) greater than 0we are considering normalized weight vectors for each attribute.

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 151 Different values of fuzzy synthetic extent with respect to the five different criteria are denoted by FZ1, FZ2, FZ3, FZ4 and FZ5, respectively. Using equation (2), we get FZ1 = (8.2, 13, 16.96) ⊗ (21.88, 35.08, 49.73)–1 = (0.16, 0.37, 0.78) FZ2 = (4.73, 8.5, 12.22) ⊗ (21.88, 35.08, 49.73)–1 = (0.10, 0.24, 0.59) FZ3 = (4.19, 6.83, 9.79) ⊗ (21.88, 35.08, 49.73)–1 = (0.08, 0.19, 0.45) FZ4 = (2.72, 4.33, 7.05) ⊗ (21.88, 35.08, 49.73)–1 = (0.05, 0.12, 0.32) FZ5 = (2.04, 2.42, 3.72) ⊗ (21.88, 35.08, 49.73)–1 = (0.04, 0.07, 0.17)

Step 2: The degree of possibility of M1 = (l1, m1, u1) ≥ M2 = (l2, m2, u2)defined as When a pair (x, y) exists such that x ≥ y and convex fuzzy numbers we have that

(6)

, then we have

. Since M1 and M2 are

, ,(7)

where d is the ordinate of the highest intersection point D between To compare M1 and M2, we need both the values of

(see Fig. 2). .

Fig. 2: M1 and M2Intersection The degree of possibility of FZi over FZj

is calculated by equation (7).

V(FZ1 ≥ FZ2) = 1, V(FZ1 ≥ FZ3) = 1, V(FZ1 ≥ FZ4) = 1, V(FZ1 ≥ FZ5) = 1, V(FZ2 ≥ FZ1) = 0.75, V(FZ2 ≥ FZ3) = 1, V(FZ2 ≥ FZ4) = 1, V(FZ2 ≥ FZ5) = 1, V(FZ3 ≥ FZ1) = 0.62, V(FZ3 ≥ FZ2) = 0.88, V(FZ3 ≥ FZ4) = 1, V(FZ3 ≥ FZ5) = 1, V(FZ4 ≥ FZ1) = 0.39, V(FZ4 ≥ FZ2) = 0.66, V(FZ4 ≥ FZ3) = 0.77, V(FZ4 ≥ FZ5) = 1, V(FZ5 ≥ FZ1) = 0.017, V(FZ5 ≥ FZ2) = 0.30, V(FZ5 ≥ FZ3) = 0.41, V(FZ5 ≥ FZ4) = 0.68, Step 3: The degree of possibility for a convex fuzzy number to be greater than k convex fuzzy numbers Mi (i = 1, 2, . . ., k) can be defined by

(8)

152


Assume that d’(SPi)=minV(FZi≥ FZk)(9) for k = 1, 2, . . ., n; k ≠ i. Then the weight vector is given by

W’= (d’(SP1),d’(SP2),………,d’(SPn))T(10)

where SPi(i = 1, 2, . . ., n) are n elements. The minimum degree of possibility of the superiority of each criterion over another is decided with the help of equation (9), and is given as d’(Mg) = min V(FZ1≥ FZ2, FZ3, FZ4, FZ5) = min(1,1,1,1)=1, Similarly, d’(C) = 0.75, d’(D) = 0.62, d’(F) = 0.39, d’(Q) = 0.02 Hence, the weight vector were calculated as

Step 4: Via normalization, the normalized weight vectors are

W= (d’(SP1),d’(SP2),………,d’(SPn))T(11)

where W is a non-fuzzy number. To determine the final weight of the decision criteria with respect to the goal, the weight vectors are normalized and are as follows:

With respect to criteria Management (Mg), Cost (C), Delivery (D), Flexibility (F) and Quality (Q)the fuzzy comparison matrices of decision alternatives and corresponding weight vectors of each alternative are shown in Tables 7-11 respectively. Table 7: The Decision Alternatives Fuzzy Comparison Matrix with Respect to Criterion Management Mg

SP1

SP2

SP3

Weight

SP1

(1,1,1)

(1/2.99,1/2,1/.8)

(0.8,2,2.99)

0.33

SP2

(0.8,2,2.99)

(1,1,1)

(0.8,2,2.99)

0.46

SP3

(1/2.99,1/2,1/.8)

(1/2.99,1/2,1/.8)

(1,1,1)

0.20

Table 8: The Decision Alternatives Fuzzy Comparison Matrix with Respect to Criterion Cost C

SP1

SP2

SP3

Weight

SP1

(1,1,1)

(1,1,1)

(1/2.99,1/2,1/.8)

0.25

SP2

(1,1,1)

(1,1,1)

(1/2.99,1/2,1/.8)

0.25

SP3

(0.8,2,2.99)

(0.8,2,2.99)

(1,1,1)

0.50

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 153 Table 9: The Decision Alternatives Fuzzy Comparison Matrix with Respect to Criterion Delivery D

SP1

SP1

SP1

Weight

SP1

(1,1,1)

(1/3.99,1/3,1/1.8)

(1/2.99,1/2,1/.8)

0.19

SP2

(1.8,3,3.99)

(1,1,1)

(1/2.99,1/2,1/.8)

0.39

SP3

(0.8,2,2.99)

(0.8,2,2.99)

(1,1,1)

0.42

Table 10: The Decision Alternatives Fuzzy Comparison Matrix with Respect to Criterion Flexibility F

SP1

SP1

SP1

Weight

SP1

(1,1,1)

(1/3.99,1/3,1/1.8)

(1,1,1)

0.14

SP2

(1.8,3,3.99)

(1,1,1)

(1/2.99,1/2,1/.8)

0.46

SP3

(1,1,1)

(0.8,2,2.99)

(1,1,1)

0.41

Table 11: The Decision Alternatives Fuzzy Comparison Matrix with Respect to Criterion Quality Q

SP1

SP1

SP1

Weight

SP1

(1,1,1)

(1/2.99,1/2,1/.8)

(1,1,1)

0.05

SP2

(0.8,2,2.99)

(1,1,1)

(1/3.99,1/3,1/1.8)

0.37

SP3

(1,1,1)

(1.8,3,3.99)

(1,1,1)

0.58

Step 5: Once weights of all the criteria and alternatives are obtained using TOPSIS Closeness Co-efficient of alternatives is found out using TOPSIS.

Finding closeness co-efficient (priority weights) of each alternative Step 1: Establish a decision matrix of each alternative w.r.t each criteria. The structure of the matrix can be expressed as follows:

Alternatives

Criteria C1

C2

……

Cn

SP1

K11

K12

……

K1n

SP2

K 21

K 22

……

K 2n

:

:

:

SPn

Km1

Km2

: ……

Kmn

Where SPi is the alternatives i, i = 1...,m; Cj is jth attribute or criterion, j = 1...,n, related to ith alternative; Kij is a crisp value indicating the performance rating of each alternative SPi with respect to each criterion Cj. After AHP calculations the decision matrix is as follows: Table 12: Summary Combination of Weights of All the Criteria & Alternatives Criteria

Mg

C

D

F

Q

Weights

0.3602

0.2717

0.2220

0.1401

0.0060

SP1

0.33

0.25

0.19

0.14

0.05

SP2

0.46

0.25

0.39

0.46

0.37

SP3

0.20

0.50

0.42

0.41

0.58

154


Step 2: Calculate the normalized decision matrix [Sij] which is calculated as follows:

(12)

The normalized decision matrix is given as:

Table 13: Normalized Decision Matrix Criteria

Mg

C

D

F

Q

Weights

0.3602

0.2717

0.2220

0.1401

0.0060

SP1

0.55028

0.41

0.31

0.22

0.07

SP2

0.76427

0.41

0.65

0.73

0.53

SP3

0.33628

0.81

0.69

0.65

0.84

For criteria Mg, use equation (12) to get the normalized values:

Similarly, we can find the values to construct the normalized decision matrix as given in Table 13. Step 3: With the multiplication of normalized decision matrix by its associated weights we obtain the weighted normalized decision matrix. The weighted normalized value Mij is calculated as: (13)

where Wij = weight of the jth criterion Now, we find the weighted normalized matrix as given in Table 14 below:

Table 14: Weighted Normalized matrix Mg

C

D

F

Q

SP1

0.1982

0.1121

0.0680

0.0304

0.0004

SP2

0.2753

0.1121

0.1448

0.1020

0.0032

SP3

0.1211

0.2206

0.1540

0.0910

0.0050

For criteria Mg and alternative SP1, we have

Similarly, we can find other values as given in Table 14 above.

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 155 Step 4: Determine the Positive Ideal Solution (PIS) and Negative Ideal Solution (NIS) respectively as

Where J is associated with positive criteria and J’ is associated with the negative criteria. Since, Management (Mg) is a benefit criteria so we find M+ and M- as:

The values are shown in Table 15 as below: Table 15: For All the Criteria Positive Ideal Solution &Negative Ideal Solution Values Mg

C

D

F

Q

SP1

0.1982

0.1121

0.0680

0.0304

0.0004

SP2

0.2753

0.1121

0.1448

0.1020

0.0032

SP3

0.1211

0.2206

0.1540

0.0910

0.0050

M+

0.2753

0.1121

0.1540

0.1020

0.0050

M-

0.1211

0.2206

0.0680

0.0304

0.0004

Step 5: Using the m-dimensional Euclidean distance we can calculate the separation measures. For each alternative can be calculated as: from the PIS the separation measure Also, For each alternative from the NIS the separation measure

can be calculated as:

(15)

The separation measure for alternative SP1 using Euclidean distance is calculated as:

and

(14)

156


The separation measure for each alternative is given in Table 16 below: Table 16: For All Alternatives Separation Measure Values Alternatives

Distance ( )

Distance ( )

SP1

0.1360

0.1331

SP2

0.0094

0.2158

SP3

0.1889

0.1053

Step 6: Calculate the closeness co-efficient (CCi) for each alternative and post that they must be ranked in descending order. CCi is obtained as:

(16)

Where the index value of CCi must be between 0 & 1. The larger the index value, the better the performance of the alternatives. For alternative SP1, the closeness co-efficient can be obtained as:

The closeness co-efficient of all alternatives as given in Table 20 below Table 17: Closeness Co-Efficient of All Alternatives Alternatives

CCi

EMS

SP1

0.4947

51.63

SP2

0.9581

100.00

SP3

0.3580

37.37

Step 7: After getting closeness co-efficient of each alternatives, DEA output-oriented BCC model has been applied for the evaluation and selection of suppliers. In Table 17, Efficiency Management System (EMS) is found by accepting that the biggest ratio of priority weights (0.96) is the point 100. EMS is compared with priority weights to obtain the other EMS values. In next step for DEA output they obtained Efficiency Management System Variable will be used.

DEA method for the evaluation and selection of suppliers In this stage, the quantitative variable weights obtained using fuzzy AHP are taken as an output variable. DEA output oriented VRS (Variable Returns to Scale) - BCC mathematical model will be used to check the efficiency of a supplier. Thus the DEA output-oriented BCC model for decision making units is (Banker, Charnes, & Cooper, 1984): Objective function

(17)

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 157 subject to

(18)

(19)

(20)

(21)

(22)

(23)

are slack and surplus β is the efficiency score; yrj is the output r for supplier j; xij is the input i for supplier j; corresponding to input i, and output r, respectively; λj is the weights attached to inputs and outputs of supplier j; xik, yrk are inputs (i) and outputs (j) of the particular supplier (for k) whose efficiency is being evaluated and ε is a non-Archimedean small and positive number. Thus results obtained from FAHP as measure of supplier performance, the first output variable called EMS and the other two quantitative variables are rejection ratio and service contract cost ratio. Since we are considering 30 qualitative variables which have been taken from 160 manufacturers. Hence it automatically takes us to the industry specifications pertaining to these qualitative variables. Inputs & Outputs of quantitative variables have been provided from industry directly. Therefore, the variables & their outputs are as per industry specifications & requirements. Table 18 depicts the manufacturing company’s input and output values. The inputs we have collected from the industry directly are: 1. Advance Payment (Input 1) – Number of times each supplier gets the advance payment. 2. Longer Lead Time (Input 2) – Number of times buyer provides the longer lead time. The model we consider here is BCC output oriented. Mathematical model for all the suppliers are given below. The efficiency and weights attached to the input and outputs of the respective suppliers obtained using LINGO Software is shown in Table 19. For a manufacturing company the supplier with the highest efficiency score is the best one. According to efficiency scores obtained from Table 19, SP1 has the highest efficiency i.e. the supplier SP1 is the most preferred one. Mathematical model for supplier SP1 is given as: Max β Subject to

158


Mathematical model for supplier SP2 is given as: Max β Subject to

Mathematical model for supplier SP3 is given as: Max β Subject to

Table 18: Input & output data for suppliers Supplier

Input 1

Input 2

Output 1

Output 2

Output 3

Output 4

SP1

10

15

51.63

28

5

80

SP2

12

10

100

34

3.26

70

SP3

13

9

37.37

15

6.7

70

Supplier

SP1

Efficiency

Table 19: Efficiency score & λ j’s SP2

SP3

0.53

0.34

0.13

λ1

1

0

0

0

1

0

λ3

0

0

1

λ2

Conclusion When we have multiple variables that affects the decision making process we get data with a lot of ambiguity. This constraint in multi-criteria problem can be overcome by application of fuzzy set theory. In this paper, a hybrid approach of factor analysis, fuzzy AHP, TOPSIS and DEA has been presented to choose the best supplier from given

Chapter 24: Integration of Methodologies in Fuzzy Framework to Assess and Determine Supplier 159 set of suppliers for a manufacturing firm. In today’s time the numerous variables which affect the supplier selection decision of the manufacturing organization are taken into account. These variables are clubbed to form factors using factor analysis through SPSS. These factors were then considered as qualitative criteria and fuzzy AHP was applied to get the weights of all the alternatives and criteria & TOPSIS was applied to get quantitative criteria weights and then DEA-BCC model has been applied to evaluate the suppliers in a structural & timely manner. In spite of the aforementioned proposed approach for the evaluation of the suppliers, this research can be extended by incorporating any DEA model with assurance region or cross efficiency for evaluation of the suppliers using more variables.

References 1. Banker R. D., Charnes A., & Cooper W. W. (1984): Some models for estimating technical and scale inefficiencies in data envelopment analysis, Management Science, 30, 1078-1092. 2. Behzadian M., Otaghsara S.K., Yazdani M., Ignatius J. (2012): A state-of the-art survey of TOPSIS applications, Expert Systems with Applications 39, 13051-13069. 3. Chan F. T. S. (2003): Interactive selection model for supplier selection process: An analytical hierarchy process approach, International Journal of Production Research, 41(15), 3549-3579. 4. Chan F. T. S., & Chan H. K. (2004): Development of the supplier selection model—A case study in the advanced technology industry, Proceedings of The Institution of Mechanical Engineers Part B: Journal of Engineering Manufacture, 218(12), 1807-1824. 5. Chan, F. T. S., Chan H. K., Ip R. W. L., & Lau H. C. W. (2007): A decision support system for supplier selection in the airline industry, Proceedings of The Institution of Mechanical Engineers Part B: Journal of Engineering Manufacture, 221(4), 741-758. 6. Chan F. T. S., Kumar N., Tiwari M.K., Lau H. C. W., & Choy K. L. (2008): Global supplier selection: A fuzzy-AHP approach, International Journal of Production Research, 46, 3825-3857. 7. Chan F. T. S., & Kumar N. (2007): Global supplier development considering risk factors using fuzzy extended AHPbased approach, Omega: The International Journal of Management Science, 35, 417-431. 8. Chang DY (1996): Applications of the extent analysis method on fuzzy AHP, European Journal of Operational Research 95, 649-55. 9. Charnes, A., Cooper, W.W. and Rhodes, E. (1978), “Measuring the efficiency of decision-making-units”, European Journal of Operational Research, Vol. 2 No. 6, pp. 429-44. 10. Chen S. J., & Hwang C. L.: Fuzzy multiple attribute decision making: Methods and applications, Berlin: SpringerVerlag (1992). 11. Cho D. W., Lee Y. H., Ahn S. H., Hwang M. K.(2012): A framework for measuring the performance of service supply chain management, Computers & Industrial Engineering 62, 801-818. 12. Dickson G. W. (1966): An analysis of vendor selection system and decisions, Journal of Purchasing, 2, 5-17. 13. Garfamy R.M. (2006): A data envelopment analysis approach based on total cost of ownership for supplier selection, Journal of Enterprise Information Management, Vol. 19 No. 6, pp. 662-678. 14. Isaai M. T., Kanani A., Tootoonchi M., & Afzali H. R. (2011): Intelligent timetable evaluation using fuzzy AHP, Expert Systems with Applications, 38(4), 3718-3723. 15. Kang H.Y., Lee A. H. I., Yang C.-Y. (2012): A fuzzy ANP model for supplier selection as applied to IC packaging, J Intell Manuf 23, 1477-1488. 16. King R. P., Jacobson E. M.(2001): A Factor Analysis of Supermarket Management Practices, Selected Paper at American Agricultural Economics Association Annual Meeting, Retrieved May 13, 2004 from http://agecon.lib.umn.edu/cgibin/ pdf_view.pl?paperid=2782&ftype=.pdf 17. Lee A. H. I. (2009): A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks, Expert Systems with Applications, 36, 2879-2893. 18. Liu J., Ding F. & Lall V. (2000): Using data envelopment analysis to compare suppliers for supplier selection and performance improvement, Supply Chain Management: An International Journal, Vol. 5 No. 3, pp. 143-50. 19. Malhotra N. K.(Ed.), Marketing Research: An applied orientation, 5th ed., PHI Publishers, Delhi (2007).

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20. Ngai E.W.T., Cheng T.C.E., Ho S.S.M. (2004): Critical success factors of web-based supply-chain management systems an exploratory study, Production Planning and Control 15 (6), 622-630. 21. Parthiban P., Zubar H. A. & Katakar P.(2013): Vendor selection problem: a multi-criteria approach based on strategic decisions, International Journal of Production Research Vol. 51, No. 5, 1535-1548. 22. Saaty T.L.: The Analytic Hierarchy Process, McGraw- Hill (1980). 23. Safa M., Shahi A., Haas C.T., & Hipel K.W. (2014): Supplier Selection Process in an Integrated Construction Materials Management Model, Automation in Construction, 48, 64-7. 24. Singh R., Rajput H., Chaturvedi V., Vimal J. (2014): Supplier selection by Technique of order preference by similarity to ideal solution (TOPSIS) method for automotive industry, International Journal of Advanced Technology & Engineering Research, Volume 2, Issue 2, ISSN No: 2250-3536. 25. Toloo M., & Nalchigar S. (2011): A new DEA method for supplier selection in presence of both cardinal and ordinal data, Expert Systems with Applications 38, 14726-14731. 26. Wang T.-Y., Yang Y.-H. (2009): A fuzzy model for supplier selection in quantity discount environments, Expert Systems with Applications 36, 12179-12187. 27. Weber C.A. (1996): A data envelopment analysis approach to measuring vendor Performance, Supply Chain Management, Vol. 1 No. 1, pp. 28-39. 28. Wu, T., & Blackhurst, J. (2009): Supplier evaluation and selection: An augmented DEA approach, International Journal of Production Research, 47 (16), 4593-4608. 29. Yoon K. P., & Hwang C. L.: Multiple attribute decision making, Thousand Oaks, CA: Sage Publication (1995). 30. Zadeh L.A (1975a): The concept of a linguistic variable and its application to approximate reasoning, Information Science, 8, 199-249. 31. Zadeh L.A (1975b): The concept of a linguistic variable and its application to approximate reasoning, Information Science, 8, 304-357. 32. Zeydan, M., Çolpan, C., & Çobanoğlu, C. (2011): A combined methodology for supplier selection and performance evaluation, Expert Systems with Applications, 38, 2741-2751.

Part III Emerging Entrepreneurship Perspectives

Chapter 25 Business Process Reengineering - Challenges in Family Business Dr. Neha Kumari* and Dr. Manmohan Singh**

The aim of this chapter is to discuss about business process reengineering techniques used to build the family owned business. Every business organization has a unique arrangement of difficulties and issues. Family business also goes through different phases of development and improvement over the time. A large number of these difficulties will be discovered once the second and resulting ages enter the business. In this chapter efforts have been made to elaborate the challenges faced by family owned business which will be analyze and redesign by the business process reengineering techniques.

Introduction Indian liberalization era brought with it various intrinsic challenges for the corporate world almost in all spheres of businesses. In the global context, the paradigm shift in business practices moving from the MRP II to ERP and evolving of SCM on the scene was also happening almost simultaneously in the early 1990’s. Notwithstanding the aforesaid challenges before the family owner business are to remain competitive, innovative and profitable, the major initiative need to be taken on the modern management techniques, prominent among business process reengineering which remains the corner stone for any other initiatives to be build upon. BPR also remains a significant aspect from the standpoint of implementing successful ERP or SCM system in place. In nutshell, BPR can greatly help these organizations to have a cut on wastage of time and other resources, cut on delivery periods, costs and improve ROIs. Business Process Reengineering is considered an important management technique adopted by various organizations currently whether commercial or non-commercial. With the advent of Knowledge Management Techniques and implementation, BPR has evolved to be an integral part of knowledge acquisition and dissemination processes. BPR as a management concept has taken roots in mid1980s to mid 1990s. Professor Michael Hammer from MIT and Professor Thomas Davenpor from The Babson College are generally credited for this concept while working on a research program called PRISM 1(Partnership for Research in Information Systems Management) sponsored by some big corporate in US. However it was in 1993 that the article in Fortune Magazine, “Reengineering the Hot New Managing Tool,” gave further boost to BPR. Soon thereafter all major ERP vendors piggy backed their products on BPR paradigms. In this article, the authors outlined Reengineering process as “innovation and core process redesign, is the search for, and implementation of, radical change in business processes to achieve breakthrough results” describing the chief tool is “a clean sheet of paper”. The authors further said that the “most change efforts start with what exists and fix it up”. It lay the foundation of Reengineering by emphasizing that it was “not tweaking old procedures and certainly not *Assistant Professor, University School of Business, Chandigarh University. E-mail: [email protected] **Professor, University School of Business, Chandigarh University. E-mail: [email protected]

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Part III: Emerging Entrepreneurship Perspectives

plain-vanilla downsizing, nor is it a program for bottom-up continuous improvement” but “start from the future and work backward, as if unconstrained by existing methods, people, or departments”. Indian corporate history began with the setting up of first cotton mills in Bombay in 1860’s and undeniably was concentrated in the hands of few family businesses. Over the years the opening up of the economy and spread of holdings brought new challenges regardless of whether the businesses are family owned or held by large number of share holders and professionally managed. Rising in popularity, BPR is widely acknowledged as an approach associated with downsizing, outsourcing and more primarily identify and study tasks needed, related workflows for specific business outcomes, radically incorporating changes to optimize why to and how to practices and eliminate non customer oriented and value adding tasks. Family-owned organizations are as vulnerable to various challenges as any other organization.

Peculiar are few of the challenges Family owned businesses encounter such as Openness to Change In a world of expanding multifaceted nature and consistent change, family owned business must be stronger, more versatile and more sustainable if they adopt the new ideas about how business should be run, how to develop new working practices, new employees, new loyalties etc. and are prepared to embrace the new era with openness. Openness to external change, to outside talents, to different societies and attitudes, and additionally to the family business network is the way to taking the family owned business to another level of advancement.

Family Dynamics Family dynamics are the patterns and collaborations we have with various individuals from our family. Every family has a one of a kind arrangement of dynamics, which will affect our advancement, thoughts, and methods for carrying on and how we connect with others. One of the greatest challenges in family businesses is managing relationships in the workplace. It is important to keep these parts of family and business separate to reduce pressure that could prompt further issues inside the family.

Leadership skills Leadership skill is one of the most examined challenges in family owned business. In the family business where every member of the family has the shares in the wealth it is important to develop the leadership skills. The leaders of the business need to make the business vision and mission. Effective leadership skill will inspire family members and employees to meet organization objectives. By utilizing the leadership skills one would be able to make strategies and rules to streamline the productivity of the business.

Apart from these some other challenges faced by the family business are: Family issues: Physical, passionate and monetary issues among relatives can enormously affect the everyday task of the business. Casual culture and structure: For some, organizations, having a laid-back culture are a positive. In any case, the casual structure and culture found in numerous privately-run companies can liken to an absence of documentation, approaches, and characterized technique and objectives. Strain to enlist relatives: It can be hard to oppose the weight that joins demands from relatives who need to join the business. This turns out to be particularly convoluted on the off chance that they do not have the essential abilities and experience required for the position. Absence of preparing: The casual culture found in numerous privately-run companies can bring about a remiss way to deal with preparing new representatives, regardless of whether they are relatives or not. High turnover of non-family workers: Non-family representatives may feel that more prominent open doors exist inside the business for the individuals who are a piece of the family and may become burnt out on the way of life.

Chapter 25: Business Process Reengineering - Challenges in Family Business 165 Hotspots for development: An enormous test for wholly owned business can be figuring out where and how to get the capital and assets expected to develop the business. Absence of an outer view: While relatives may not generally have similar feelings, they frequently have comparative childhood and beneficial encounters which may prompt a uniform perspective of the business. Organizations need outer perspectives of their organization and their opposition keeping in mind the end goal to flourish. Misconception the estimation of the business and how it is to be separated: Proprietors of privately-owned companies may have differing assessments on the estimation of their business, or much more terrible, they may have no learning about the estimation of the business and what things add to or cheapen that esteem. Additionally entangling this issue is deciding how to part the benefits of the business or proprietors’ stakes. Control over the business: It is essential for wholly owned business to prepare for business progression. Some family-claimed organizations don’t have an arrangement set up and this can be a wellspring of warmed civil argument and serious family governmental issues when the time emerges to choose new initiative. No leave design: Privately-owned companies do not have a characterized technique for what will happen if a proprietor needs to resign, offer the business, or exchange duty. This runs as one with progression design issues. All organizations require an arrangement for what’s to come. Close to the last millennium various studies carried out by Management scholars focused on these challenges for the family owned businesses. In this scenario, implementing BPR which entails its own pitfalls, the difficulties for family owned businesses face formidable tasks to successfully incorporate BPR for their organizations. Successful examples are of Mahindra and Mahindra where upon implementation of BPR even after reduction in manpower, the productivity went up in their Nasik engine manufacturing plant. The authors feel that for a successful implementation of BPR in family owned business organizations, the approach, the expertise and experience of the Business Process Engineers must guard against the following challenges: • BPR may not provide quick results and also not act as a panacea for obtaining instant competitive advantage. • BPR is not simple or easy to implement and not all organizations need similar approach and time frames • Organizations would need to invest in time, efforts and money or other resources including IT resources required to implement from a state zero approach. • Identifying intra and inter functional area needing improvement may need total change in the cross functional process design involving people who are apt at doing the work with better understanding of the processes rather than relying on functional teams or top management. • Improper knowledge of reengineering may restrict generation of innovative ideas or e break-through to alter the ways the processes are to be redefined. • Reengineering too many processes at initial stages may not make a practical sense, as the organizations may face unforeseen issues involving too much of efforts and difficulties to resolve such issues. • Lack of training for process owners is a prerequisite so that the team mangers who design the process have adequate skills and knowledge to develop the process and own it for implementation. • This requires appropriate monitoring of the usage of a reengineered procedure. Generally there will be an unfavourable effect on the reengineered procedure and the advantages may not be significant. • Wastage of time due to detailed process analysis: To comprehend the procedure before reengineering it, the detailed analysis of the procedure is required that takes a lot of time. A definite investigation of the procedure devours parcel of time. • Fear of failure: Because of fear of failure, the business process engineers endeavour to play safe and as opposed to going for the best arrangement, they numerous pick a problematic arrangement, which might fulfill. This will influence the nature of the result of reengineering exertion. • Unfavourable organisational environment could delay in achieving results particularly when in family owned business environment when the family members are not contributing to the organizational environment. This may result in further degradation of monitoring and appraisal system in BPR cascading into quantifies the intended improvement.

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• Family owned business are complacent when the business is going well but when they feel pressure of competition then they have to take initiative for the improvement. • Non-availability of adequate resources. • Representatives must understand that the association needs to lead its business based on business forms and not the assignments. They ought to have the capacity to comprehend the contrast between an assignment and a procedure. They have to comprehend their parts in the entire procedure and furthermore their parts in actualizing the procedure.

Conclusion BPR is ever evolving systematic approach to adopting and improving upon the best practices of the industry. It need for the family owner business organization is as relevant and important as to any firm of business organization. Though the ROI may be low in the initial years and payback period for the resources invested may look longish but it must be burn out by the family owner business that to remain competitive and innovative in the market place, BPR is a path worth trading.

References 1. Dutta Sudipt, August 1997, Family Business in India, Sage publication, ISBN – 10: 0803993277, ISBN - 13: 978-0803993273. 2. K.Ramchandran, Indian Family Businesses: Their Survival beyond Three Generation, Indian School of Business, Hyderabad. 3. Leaver Lindsay, 2010, Family Research Report on Family Owned Business in India- History and Present Day. 4. Obolensky, N., (1994)., Practical Business Reengineering., Gulf Publishing Company, Houston. 5. Harrison, B.D.. Pratt. Maurice.D., (1993), A methodology for Reengineering Business Planning Review 21(2). 6-11. 6. www.yourarticlelibrary.com/business/14-common-pitfalls-of-business-process-reengineering. 7. archive.fortune.com/magazines/fortune/fortune_archive/1993/08/23/.../index.htm

Chapter 26 Women Entrepreneurship: Challenges and Issues Dr Pawan Kumar*

Women Entrepreneurship is considered as vital technique in poverty reduction and unemployment. In the present time Women empowerment has become a catchphrase. Empowerment of women may not be feasible just by creating employment opportunities for them. The need of the hour is to motivate them to set up their own enterprise. Traditionally, women have been contributing vital role in the management of household as well as in the society. But women’s job has not been duly accepted. She is energetic in family, farm, store, and industry. Various awareness programs can be helpful for them by which they can exploit opportunities available in the societies and economy. Moreover support of family and government policy can be useful by which they can beat different challenges. The chapter concentrates on opportunities for economic empowerment and challenges faced by women entrepreneurs at present.

Women Entrepreneurship: Women Entrepreneurship means an act of trade and commercial activities by women to generate employment and eradicate poverty. Management and control on economic activities carried out by women’s in the society. Entrepreneurship by women, s empowers them for self-dependence and decision makers. Women entrepreneurship refers to raising the position of women in the society and economy. Role of Women in economy can be useful in the development of economy and society. Growth of venture culture and qualitative economic growth services are the main prerequisites for business development. Entrepreneurial skills originate individual’s inherent talent in to long period economic growth, job making, assets pattern and financial security. Entrepreneurship awareness is necessity for the commercialization and for improvement of job and reduction in the level of poverty. Women engagement in the economic activities is the application of all factors of productions. Origin: Though women engaged in self employment activities from long period of time besides their works is not recognized as employment. The common ‘domestic approach’ catalyses the decline of women’s inventive tasks as inferior and secondary to men’s occupation. Women’s roles fluctuate on the behalf of social pattern of any culture. In Babylonia, about 200 B.C., women were allowed to involve in commercial activities and to work as a subordinate. By 14th century, in England and France, women were normally acknowledged at same mostly in artisan’s activities along with men. They have competed with men in the area of like lace making tailoring carpenters saddlers and barbers. In 1950, women contribute p to 25 per cent of both in the production and service sectors in the underdeveloped nations. In 1980, their contributions reported mare than before to 28 per cent and 31 per cent respectively.

International Labour Organization and Women’s entrepreneurial development The ILO Women’s Entrepreneurship Development (WED) programme works for the empowerment of women’s in the field of economic activities. This is also empowered them through in setting up and development of their businesses. *Associate Professor, University School Business, Chandigarh University, Punjab. E-mail: [email protected]

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It includes: • Generating the best healthy environment for women’s to succeed in the economy. • Increase the capability of women’s for entrepreneurial development. • Providing platform to empower strength of women’s capacity. The ILO policies create awareness among the women’s trader and grant opportunities them so they can play vital role in the economy.

The solutions by ILO: The ILO provides a broad package of instruments, consultative services and ability. Systems of nationwide and global instructors and colleagues are recognized in ILO mechanism and approach for sustainability.

ENABLING atmosphere for WED • Style to commence WED appraisals that recognizes and prioritizes policy suggestions with countrywide stakeholders. • Gender-sensitive worth chain analysis to put together gender into dissimilar parts of the value chain. • Association of “Month of the Woman industrialist” movements to encourage women entrepreneurs’ involvements to the financial system and society.

A. INSTITUTIONAL ability BUILDING • Self-appraisal for service suppliers to build up accomplishment maps that role to improving service prerequisite and outreach to women industrialist users. • Capacity building component for legislators and implementers to identify with the precise requires of women industrialists.

B. Working out Mechanics: • Gender Sensitive industrial method for semiliterate industrialists (“GET Ahead”). • Economic literacy to boost capability to supervise their investments and facilitate them to choose the best suitable economic merchandises for their requirements. • Accomplishment My entrepreneurial development to recognizes and categorize the preparation for development. Significance of woman empowerment in economic activities: 1. To become decision-maker. 2. To use the market information and resources. 3. Start business by choice or need based. 4. Capability to implement boldness in group decision making 5. Having optimistic opinion on the capacity to transform 6. Capability to be trained for improving 7. Capacity to change others’ view by independent way. 8. Involving in the development process. 9. Growing self-representation.

Factors leading the women entrepreneurship: These can be categorized in two parts given below: 1. Choice based Factors

2. Need based factors.

1. Choice based Factors 1. For setting up of their own business 2. Social contribution 3. Self dependence

Chapter 26: Women Entrepreneurship169 4. To be the empowered 5. To gain social status 6. Achievement of acquaintances and family 7. Growth prospectus of the business. 8. To gain benefit from government policies. 9. Availability of natural and physical resources 10. Demand availability in market 11. To exploit opportunities idea into a capital 12. To prove herself among family members 13. To be decision maker. 14. Creation of employment

2. Needs based factors: 1. Disappointment from job 2. Need of hour 3. Healthy work environment 4. Improve standard of living 5. Carry on family trade 6. Support from friends and relatives. 7. back-up from support agencies 8. Ambition about my children Opportunities Available For Educated and Uneducated Women for Entrepreneurship Literate women entrepreneurship

Illiterate women entrepreneurship

1. Eco Friendly Technology 2. Biotechnology 3. It Enabled Enterprises 4. Event Management 5. Telecommunication 6. Herbal and Health Care 7. Heath and Education 8. Investment Management 9. Corporate Counseling

1. Hotel Industry 2. Tourism and travel industries 3. Mineral Water 4. Sericulture and horticulture 5. Floriculture and farming 6. Food, Processing industries 7. Shoe factories 8. Poultry and Silk farming 9. Animal Husbandries

Main Challenges/Problems Faced By Women Entrepreneurs Personal

Social

Financial

Marketing

Technological Based

1. No self-confidence 2. low level of Education 3. Inefficient communication skills 4. Society dominated by Male 5. Family boundaries 6. Resistence from society and family Resistance 7. Insufficient training 8. Work-culture of family 9. Social and economic security 10. Incapable in Developing Business networks 11. Knowledge about economic activities.

1. Change in approach 2. Self-Recognition 3. Interference made by males in women’s decisions. 4. Convention 5. Civilization 6. Socio-economic conditions. 7. Moral principles 8. Gender based aggression 9. Be short of community support

1. Paucity of funds 2. financial literacy 3. Not supported by banks 4. Shortage of resources 5. Lack of property

1. lack of marketing 1. lack of ideas 2. Lack of orientation 2. Tough technical Knowledge Competition 3. misuse by middle 3. Outdated men technology. 4. Growth of organized market 5. non availability of demand 6. stalking from cosellers

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Suggestions for development of women entrepreneurship: 1. Women should understand and implement the new way to balance work and life 2. Promote women’s education. 3. Be ready to tackle challenges. 4. To get training and attend seminars. 5. Women should begin their job from small level. 6. Women should avail assistance from other women businessmen. 7. Take the help from financial institutions. 8. Women should develop connect in market. 9. Governments should enhance promotional activities for women entrepreneurships.

Conclusion In this chapter I have evaluated the importance of women’s entrepreneurial skills. In the context of India this chapter highlights the role and contributions of women’s in economic activities. Nature of their businesses and various types of challenges faced by them also reported in this chapter. Issues exist in social pattern in form of beliefs, traditions and values also affecting the performance of women’s in business activities. Moreover policies relating to awareness and promotion of economic activities among the women’s should be enhanced by government. In this chapter efforts have been made to recognitions of Women’s problems challenges/issues faced by female business men. The SWOT Analysis of women’s strength, weakness, opportunities and threats. Low rate of education, lack of awareness and male dominating society are the major factors behinds the poor performance of women’s in economic activities. In this regard i have suggested that government should initiate fruitful policies and program for the development of role of women’s in economy. Moreover financial institutions should also promote the economic activities of women’s through liberal lending policies.

References 1. Pandian P. and Eswaran. R, ‘Empowerment of Women through Micro–Credit,’ Yojana, Vol. 46 (11), Nov.2002, p. 47. 2. Sumangala Naik, ‘The Need for Developing Women Entrepreneurs,’ Yojana, Vol. 47(7), July 2003, p. 37. 3. Schumpeter Joseph, The Theory of Economic Development, Oxford University Press, New York, 1961. 4. Medha Dubhashi Vinze, Women Entrepreneurs in India, Mittal Publications, New Delhi, 1987, p. 112. 5. Medha Dubhashi Vinze, op. cit., p. 115. 6. http://www.cipe. Org 7. Resource site on ILO’s Women’s Entrepreneurship Development programme – 8. www.ilo.org/wed ILO Strategy on Promoting Women’s Entrepreneurship Development. 9. www.ilo.org/gb/lang--en/WCMS_090565/index.htm ILO-WED on Facebook 10. www.facebook.com/ILO and WED

Chapter 27 Women Entrepreneurs and Society: The role of government Swati Aggarwal*, Damini Chopra** and Anchit Jhamb***

As in past few years the rise in the women fertility is seen to be very fast paced in various areas like leaders in big organizations, best performers in the sports and they have also proved that they are entrepreneurs as well but still Indian society being a male dominated society hinders the growth of women at various levels and also the few limitations created by the society like considering women only for house chores, disrespecting them and not preferred for higher posts in jobs as well. This topic Women Entrepreneurs and Society: The role of government has given a look towards the opportunities that a women entrepreneur can provide to the society and what will be its benefit to the complete economy, the barriers what the women faces which hinders her to become an entrepreneur, it also answers the question that what women fertility has done for itself and in the last this topic discusses that what is the support of government towards women by introducing various schemes which helps women to become entrepreneurs and to grow but above all the main point is how much society is interested in giving freedom to the women how willfully it can digest the growth of female fertility and support the same cause.

Introduction With the change in the society for the upliftment of women and to improve their standards the government of India has given a push from many years and also wherever the women have been given a chance they have proved their mettle be it any field from business house to sports and seeing these improvements banks were also motivated to support the initiatives by the government but that’s the later part of the story. This time the story was bit different women didn’t wanted to work someone else but they wanted to start their own business and to start a business with ideas and motivation the major requirement was money and Indian society is that much male dominated that you can’t expect a women to keep some lakhs as savings or even if that lady has money she would be requiring the approval from family for a chance let’s take that to be a family tradition still there were some cases that man of the house was not able to earn and female had no choice other than to do the family chores, the third scenario was man of the house was earning but was not earning that good that he can streamline his family with mainstream of the society also the problems like rise in prices of goods did more damage. So the government came up with the new ideas and schemes to help the women to start their own business with low money requirements and comparatively at less interest rate. There were few reasons where government of India thought to give the importance to women entrepreneurs a chance.

*Assistant Professor, University School Business, Chandigarh University, Punjab. E-mail: [email protected] **Assistant Professor, University School Business, Chandigarh University, Punjab. ***Assistant Professor, University School Business, Chandigarh University, Punjab. E-mail: [email protected]

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Fig.1: Scenario of Indian Women in relation to their families Those significant reasons are as follows: 1. Indian industries get bigger in gender equality: - With every time introduction of new women entrepreneurs the Indian industries will get bigger and better and Indian industries will have a chance to call themselves as gender equality preferring stage and as more and more diversity will be there on the basis of gender this will give a motivation to many younger females in the society and in turn it will be again an upliftment step in the society. 2. Better female employment opportunities: - If there is a rise in the female entrepreneurs in the society then there will be better options for the females because a woman can understand the other woman’s problem in much better way and can create a little chance of female securities as well a ray of hope of better future for the females. 3. Increase in per capita income: - With the women upcoming as entrepreneurs and providing employment opportunities to other individuals will give a rise to economy as well because all such employment and opening up of new businesses will generate income and per capita income for the economy will rise giving a helping hand to the society. 4. Spreading of awareness will be easier: - By seeing the rising scope of women as entrepreneurs the awareness of the various government schemes will be easier to spread and even the awareness of the scope of women in the various fields can be spread very easily. 5. Sense of self-realization: - When being a male the person earns bread and butter for the family its gives an immense pleasure to achieve something now relate the same thing to the women as well how much sense of self -realization will be there in a lady when she will make a complete business stand on her own and even providing jobs to various individuals and above all it will create a sense of honour, pride and existence for the complete society.

Opportunities to Indian Women Entrepreneurs Educated, gifted, and qualified females can enter virtually any business. Successful women have been representing and still continue to represent brands like Times of India, PepsiCo, ICICI, TAFE, HP, HSBC and J.P Morgan along with other names. The list in the lines to come puts forward few sectors where women entrepreneurs of India can excel as senior managers and owners. • • • • • • • •

Eco-friendly/Bio-friendly sectors IT sector Event Management Lifestyle sector Beauty and cosmetic Healthcare Travel and tourism sector Food, food processing and beverages

Chapter 27: Women Entrepreneurs and Society173 • • • • •

Telecommunications Financing Plastic manufacturing Local and international trading Property and estate

Barriers to women entrepreneurs in India The Indian society has seen much growth and development of women in various fields in past few years but still the problem which percolates in the society is that Indian society is still male dominated society still male is considered as the sole bread earner for the family. Women is only meant for house making tasks and women are even considered lower than men in the intellectual quotient. Which certainly gives a set back to the confidence, self -confidence, will power, mental composer to females. And there is very old age prejudice that women has the fear taking risk and cannot deal with the technology very safely. Other than following are few major barriers which Indian women faces and hinders very much in her growth.

Fig.2: Barriers to women entrepreneurs in India 1. House Making and Family Problems: - House making and to handle the family issues is considered as the foremost duty of the females and the its been assumption taken and implemented in the society that females are meant for the in-house chores and they cannot handle business and their family at one time so the females should only concentrate in their house chores and family issues. 2. Women insecurity and Disrespect: - With the rising figures in the crimes in the society against the women every male thinks it is better if the women remains inside the house and do their daily work but this was the problem created by the society and the females are facing dual problems it is the crime against them and they are only warned to be in the houses only which again stopping the women to create their own opportunities. 3. Management of Man power: - Females are generally considered to be soft by heart and they cannot be strict with the employees to get a job done which in the jobs also hinders a women to get promoted so if in the job only they are not preferred at higher posts so it becomes difficult for the society to digest that how that same women can handle a manpower in the business. 4. Financial Management: - Financial Management is very important for the business because it includes the financial decision from a day’s activity to the lifetime profitability of the business and on such intellectual grounds women are considered to be lower than men and society proudly creates the barrier for the females to become the entrepreneurs

Overcoming the Barriers It is generally said that every problem has the solution and there are various ways how the society can make the women feel empowered, confident and willful for their carrier development as entrepreneur and should give an equal respect

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to their growth and development. Following can be the few points of consideration by the society to make the women to overcome the barriers and to bring a new era in the Indian society. 1. Educational Opportunities: - Much change have been seen in attitude of the society towards the education of women but this opportunities must reach every household so that more opportunities can be provided to the women 2. Institutional Training and vocational Courses: - Society should give the complete respect to the Institutional Training and vocational Courses introduced by government and must help the government to execute these trainings in better manner. These trainings can be related to personality development, communication development skills; etc. 3. Providing big platforms: The society to empower the women should provide much bigger platforms like nationwide opportunity so that women can feel mentally composed, confident and willfully strong to do in their careers and society should have good digestive so that it can give respect to the women development

Women businessperson associations To supplement the initiatives of presidency of Bharat for the authorization girls|of girls|of ladies} as businesspersons their numerous women entrepreneur associations that work on the democratic lines of “of the ladies, for the ladies and by the women”. Following square measure the samples of such organizations. 1. Federation of Indian girls Entrepreneurs (FIWE) 2. Consortium of ladies Entrepreneurs(CWEI) 3. Association of woman Entrepreneurs of province 4. Association of ladies Entrepreneurs of Karnataka (AWAKE) 5. Self-Employed Women’s Association (SEWA) 6. Women Entrepreneurs Promotion Association (WEPA) 7. The promoting Organization of ladies Enterprises (MOOWES) 8. Bihar Mahila Udyog SanghBihar Mahila Udyog Sangh 9. Mahakaushal Association of girl Entrepreneurs (MAWE) 10. SAARC Chamber girls Entrepreneurship Council 11. Women Entrepreneurs Association of Tamil Nadu (WEAT) 12. TiE Stree Shakti (TSS) 13. Women authorisation Corporation

Various Government Schemes for the upliftment of ladies Entrepreneurs 1. Annapurna theme This theme is obtainable by the bank of Mysore for those girls entrepreneurs World Health Organization square measure putting in food line business so as to sell packed meals, snacks, etc. the number granted as a loan beneath this theme may be accustomed fulfill the capital desires of the business like shopping for utensils and different room tools and instrumentality. beneath this loan, a warrantor is needed together with the assets of the business being pledged as collateral security. Further, the most quantity of cash that’s granted is 50,000 that should re-paid in monthly installments for thirty six months, however, when the loan is sanctioned, the loaner doesn’t need to pay the EMI for the primary month. The rate is decided relying upon the market rate. 2. Stree Shakti Package for girls Entrepreneurs This theme is obtainable by most of the SBI branches to girls World Health Organization have five hundredth shares within the possession of a firm or business and have taken half within the state agencies run Entrepreneurship Development Programmes (EDP). The theme additionally offers a reduced rate of interest by zero.50% just in case the number of loan is quite 2 lakhs. 3. Bharatiya Mahila Bank loan This loan is for budding girls entrepreneurs wanting to begin new ventures within the fields of retail sector, loan against property, small loans, and SME loans. The loan quantity beneath this loan goes up to 20 crores for industries and additionally a concession is accessible to the extent of 25% on the rate and interest rates typically vary to 15% beneath the Credit Guarantee Fund Trust for small and little Enterprises (CGTMSE), there’s no demand of collateral security for a loan of up to 1 large integer.

Chapter 27: Women Entrepreneurs and Society175 4. Dena Shakti theme This theme is provided by Dena bank to those girls entrepreneurs within the fields of agriculture, manufacturing, micro-credit, retail stores, or little enterprises; World Health Organization square measure in want of economic help. The rate is additionally bated by zero.25% together with the most loan quantity being `20 lakhs for retail trade; education and housing whereas `50,000 beneath the microcredit. 5. Udyogini theme This theme is obtainable by geographic region and Sind Bank therefore on offer girls entrepreneurs concerned in Agriculture, retail and little business enterprises to induce loans for business at versatile terms and concessional interest rates. the most quantity of loan beneath this theme for girls between the people of 18-45 years is `1 lakhs however your family financial gain is additionally taken into thought and is ready at `45,000 once a year for SC/ST girls. 6. Cent Kalyani theme The theme is obtainable by the financial organization of Bharat with the aim of supporting girls in beginning a brand new venture or increasing or modifying AN existing enterprise. This loan may be availed by girls World Health Organization square measure concerned in village and house industries, micro, little and medium enterprises, freelance girls, agriculture and allied activities, retail trade, and government-sponsored programs. This theme needs no collateral security or warrantor and charges no process fees and therefore the most quantity that may be granted beneath the theme is Rs. 100 lakhs. 7. Mahila Udyam Nidhi theme This theme is launched by geographic region commercial bank and aims at supporting the ladies entrepreneurs concerned within the little scale industries by granting those soft loans that may be repaid over an amount of ten years. beneath this theme there square measure completely different plans for beauty parlors, day care centres, purchase of automobile rickshaws, two-wheelers, cars, etc. the most quantity granted beneath this theme is `10 lakhs and therefore the interest depends upon the market rates. 8. Gesture Yojana theme for girls This theme has been launched by the government of Bharat for individual girls eager to begin little new enterprises and businesses like beauty parlors, trade units, tuition centres, etc. similarly as a bunch of ladies eager to begin a venture along. The loan doesn’t need any collateral security and might be availed as per three schemes – i. Shishu – loan quantity is proscribed to `50,000 and might be availed by those businesses that square measure in their initial stages. ii. Kishor – loan quantity ranges between `50,000 and `5 lakhs and might be availed by those that have a well-established enterprise. iii. Tarun – loan quantity is `10 lakhs and might be availed by those businesses that square measure well established however need additional funds for the aim of enlargement If the loan is granted, a gesture card are given to you which ones functions constant means as a mastercard but the funds on the market square measure restricted to ten of the loan quantity granted to you. 9. Orient Mahila Vikas Yojana theme This theme is provided by Oriental Bank of Commerce to those girls World Health Organization hold a fifty one share capital singly or collectively in a very proprietary concern. No collateral security is needed for loans of `10 lakhs up to `25 lakhs just in case of small-scale industries and therefore the amount of reimbursement is seven years. A concession on the rate of up to twenty is given.

Steps taken by Government throughout twelfth Five-Year set up Economic development and growth isn’t achieved. The govt. of Bharat has introduced the subsequent schemes for promoting girls entrepreneurship as a result of the longer term of little scale industries depends upon the women-entrepreneurs: (a) Trade connected Entrepreneurship help and Development (TREAD) theme was launched by Ministry of little Industries to develop girls’ entrepreneurs in rural, semi-urban and concrete areas by developing entrepreneurial qualities. (b) Girls Component Plant, a special strategy adop0ted by Government to produce help to girls entrepreneurs.

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(c) Swarna Jayanti Gram Swarozgar Yojana and Swaran Jayanti Sekhari Rozgar Yojana were introduced by government to produce reservations for girls and inspiring them to begin their ventures. (d) New schemes named girls Development companies were introduced by government to assist girls entrepreneurs in composition credit and promoting facilities. (e) State Industrial and Development Bank of Bharat (SIDBI) has introduced following schemes to help the ladies entrepreneurs. These schemes are: i. Mahila Udyam Nidhi ii. Small explosive compound theme for girls iii. Mahila Vikas Nidhi iv. Girls Entrepreneurial Development Programmes v. Promoting Development Fund for girls 4. Pool of ladies entrepreneurs of Bharat provides a platform to help the ladies entrepreneurs to develop new, inventive and innovative techniques of production, finance and promoting. There square measure completely different bodies resembling NGOs, voluntary organizations, assistance teams, establishments and individual enterprises from rural and concrete areas that put together facilitate the ladies entrepreneurs in their activities. 5. Coaching programmes: The following coaching schemes especially for the self employment of ladies square measure introduced by government: i. Support for coaching and Employment Programme of ladies (STEP). ii. Development of ladies and kids in Rural Areas (DWCRA). iii. Little business Service Institutes (SISIs) iv. State money companies v. National little Industries companies vi. District Industrial Centres (DICs) 6. Mahila Vikas Nidhi: SIDBI has developed this fund for the entrepreneurial development of ladies particularly in rural areas. beneath Mahila Vikas Nidhi grants loan to girls square measure given to begin their venture within the field like spinning, weaving, knitting, embroidery product, block printing, handlooms handicrafts, bamboo product etc. 7. Rashtriya Mahila Kosh: In 1993, Rashtriya Mahila Kosh was created to grant small credit to pore girls at affordable rates of interest with terribly low dealings prices and easy procedures.

References 1. https://www.tomorrowmakers.com/articles/women/government-schemes-that-can-help-women-entrepreneurs-growtheir-small-businesses 2. https://www.news18.com/news/indiwo/work-and-career-9-schemes-for-women-entrepreneurs-in-india-1522125.html 3. https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/women-entrepreneurs-in-india-emerging-fast-nitiaayog/articleshow/63011056.cms 4. http://www.newincept.com/support-to-training-and-employment-programme-for-women-step-entrepreneur.html 5. https://www.reliancemoney.co.in/-/schemes-that-are-empowering-women-entrepreneurs-in-india?inheritRedirect=true 6. https://www.standupmitra.in/Home/SubsidySchemesForWomen 7. https://smallb.sidbi.in/%20/fund-your-business%20/additional-benefits-msmes%20/women-entrepreneurship 8. https://www.instaoffice.in/blog/featured/government-schemes-women-entrepreneurs/ 9. https://wit.tradekey.com/news/india/importance-of-women-entrepreneurship-in-india_4143.html 10. http://www.publishyourarticles.net/eng/articles2/step-taken-by-government-to-develop-women-entrepreneurs-inindia/2735/

Chapter 28 Farm Entrepreneurship: A Path for Doubling Farmers Income Jagjeet Singh Gill* and Dr Surabhi Sharma**

Agriculture is considered as a backbone of Indian economy. More than 75 percent of India’s population is directly or indirectly dependent on agriculture. The government of India announced the doubling of farmer’s income by the year 2022. The concept of entrepreneurship in farming is one of the major options for doubling farmer’s income. Now, farmers are using conventional methods of farming and they are opting only single crop or enterprise at a time but in integrated farming system, farmers can choose more than two enterprises at one time. In states like Punjab and Haryana, farmers opt for dairy, poultry, pisci-culture, forestry, olericulture, floriculture, mushroom production & orchards along with agronomic crops. These enterprises provide extra income to farmers and are able to use residue or by-product of one enterprise into another enterprise which will reduce input cost. The integrated farming system also helps farmers to lower down stress level of crop failure. The present study helps to identify profitable farming approach which will increase income and provide better opportunities to the farmers.

Introduction Agriculture is a chief engine of economic intensification in most of the developing countries. In India, it employs about 60 per cent of the workforce and contributes almost 18 per cent to the national gross domestic product (Government of India, 2011). Now, farmers are using conventional methods of farming and they are opting merely sole crop or venture at a time therefore, the chances of crop failure are more in conventional method. So, there is need of any extra income which provides money to farmer for seed, fertilizers for next crop in case of crop failure. The government announced the doubling of farmer’s income by the year 2022. The concept of entrepreneurship in agriculture is one of the key options for doubling farmer’s income. In north-Indian states like Punjab and Haryana, farmers opt for dairy, poultry, pisci-culture, forestry, olericulture, floriculture, mushroom production & orchards along with agronomic crops. These enterprises supply additional income to farmers and are capable to use residue or by-product of one enterprise into another enterprise which will diminish input cost. The integrated farming system also helps farmers to lower down stress level of crop failure. Rural entrepreneurship often includes agriculture-related enterprises, together with opportunities for family farms. The shift to larger farms means that families with smaller farms, to survive, must often become dual-career families. This can mean employment off the farm or expanding enterprises on the farm to intensify farm business management (Wortman, 1990). Entrepreneurship needs to be given greater recognition as a means to revitalize rural America.” Because of relative isolation, rural people tend to be more self-sufficient than their city cousins. However, the resulting sense of independence may reduce the likelihood of seeking support, and there is less awareness of available public and civic assistance (Dabson, 2004). *Assistant Professor, University Institute of Agricultural Sciences, Chandigarh University, Punjab. E-mail: [email protected] **Associate Professor, University Institute of Agricultural Sciences, Chandigarh University, Punjab. E-mail: surbhi.agri@ cumail.in

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Entrepreneurship: It has been described as the “ability and enthusiasm to build up, systematize and oversee a business endeavour along with any of its risks in order to make a profit

Farm Entrepreneurship: Entrepreneurship is very important for improving agriculture conditions. It is a key factor for the endurance of smallscale farming and complex global economy. Entrepreneurs are innovators who produce for the market. An entrepreneur is determined as risk bearer, passionate, creative leader, always looking for opportunities to improve and expand his business. This entrepreneurship includes mushroom, dairy, poultry, pisciculture, apiculture etc.

Review of Literature Lal and Miller (1990) reported the entrepreneurship consists of a array of resource-saving practices that aim to achieve satisfactory profits and high and sustained production levels, while minimizing the negative effects of intensive farming and preserving the environment. Riepponen’s (1995) study of 50 rural entrepreneurs from the zone of Mikkeli in South-East Finland, who were vigorous in food processing, wood processing or in the tourist industry attempted to investigate factors that influence the start-up and success of rural enterprises. The data was alienated into successful and non-successful entrepreneurs based on researchers’ and entrepreneurs’ hold subjective evaluations and the revenue derived from the business. The reasons to start a business distinguished the victorious entrepreneurs from the non-successful ones: successful ones were encouraged by market-related factors (e.g., demand, favourable location, appreciation of a market niche) and non-successful ones were encouraged by incomerelated factors (e. g. unemployment, need for compensating revenue, factors associated to health). Hanf and Muller (1997) recommend that in a vibrant environment with rapid technical progress, openminded farm entrepreneurs will identify more problems than they are capable to rationally resolve. Therefore, the farm entrepreneur has to classify exertion and work with them until decision making is possible. Carter (1998) draws parallels among assortment entrepreneurship in non-farm (business) sectors and farm pluriactivity suggesting that farmers have multiple business interests and these generate employment and rural costeffective development. MAFF (2000) suggested that the smaller units are more susceptible to the economic changes brought about by the market (CAP) and World Trade Organisation reforms in recent years. Larger farm units, mainly those over 100 hectares, gain from economies of scale, being enhanced capable to extend their fixed costs, and are often better equipped as far as buildings and machinery than small farms. Because of these economies, they are usually less susceptible to economic pressures and more able to gather the increasingly demanding market stipulation for farm products. Rantamäki-Lahtinen (2002) in a study of all Finnish farms stated that Agriculture and forestry have traditionally been the most vital sources of revenue in Finnish rural areas. Up until the late 1980’s, Finnish farms were reasonably diversified in agriculture (dairy, pigs, poultry etc.). However, increasing specialization has occurred although generally farms are pluriactive in the sense that they have forestry actions as well. Bock’s (2004) assessment of Dutch farmwomen’s entrepreneurial activity, which stresses that women entrepreneurs trail only small-scale activity and ensure that any fresh activities supplement their existing work ‘so that neither the family nor farm is anxious by their initiatives’. Bock encourages taking a more optimistic attitude towards woman farmer entrepreneurs.

DIFFERENT STEPS IN ESTABLISHING FARM ENTREPRISES: 1. Idea: It is the first step of entrepreneurship. Any thought that has the potential to be converted to a business is a lucrative idea. This idea needs a further analysis as to how the thought can be floated in the market and to check whether this is not already present.

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2. Market Study: It is the second stage of entrepreneurship. This shall include all the details related to the market. The idea or product to be launched by the entrepreneur should not be already available in the market and if there are competitors, then these should be thoroughly studied before actualization of the business idea. 3. Implementation: In this step challenges for farmers/entrepreneur is to borrow loan from banks and financial institutions to establish infrastructure for the enterprise. 4. Survival: Innovative enterprise started by farmer shows that the farmer has some entrepreneurial skills. Survival is the first stage of manufacturing of products and their marketing. In the survival stage, farmer makes relationship with customers, maintaining farm operations and also initiating market strategies. This stage is very crucial for farmer, if he will figures out how to build on the success of the enterprise then he will move to the next stage. 5. Growth: In this stage farmers tries to make enterprise profitable. During the growth stage the farmer is likely to delegate some managerial responsibilities. He will need to change the way communication is done, and to make some routine tasks. He ensures the efficiency of farm operation, decides to take enterprises beyond survival, trying to expand products according to the need of the customers to earn more money. As the scope of the farm enterprises increases, the entrepreneurial and professional skills of the farmer must also increase. 6. Maturity: Eventually, the farm business reaches maturity. At this point enterprise stops growing or escalating. It reaches a point of balance where farm size, market opportunities and the activities are in balance with the skills and visualization of the farmer. As long as the farm business continues in this balance the farm business will continue. If the enterprises are cost-effective and the farm is well managed, the business can be sustained.

Barriers and Challenges to entrepreneurship It is assumed that every enterprise cannot be successful. It needs the right environment, market strategies, planning, efficiency etc. But there is a number of barriers which are under control of farmers but there are some barriers which are outside control of farmer. The environment of farm enterprises is affected by government policy and the level of investment in agriculture. To create and maintain an environment that encourages profitability, market-oriented businesses and policymakers need to tackle the following barriers and challenges which are often faced by farmer entrepreneur: Lack of financial support: The main challenge for many farmers is to expand enterprise, production etc. Farmers who are starting new enterprises often face difficulty raising investment capital for the enterprise. Farmers borrowing loan from banks/financial institutes to fulfil their financial requirements. Lack of infrastructure: Farmer entrepreneur often lacks basic infrastructure like poor roads, poor market facilities, irregular supplies of electricity, insufficient storage for produce etc. create very real and practical barriers to developing farm businesses. Rules and regulations: Sometimes entrepreneurship environment is affected by rules and regulations of government. Sometimes, farmers are not very educated, so that they are not aware of banking laws, land tenure, ownership of land, tax and business law, rules and regulations related to trading, production standards etc. Countries need to look very suspiciously at rules and regulations to make sure that they make it easier for small-scale farmers to build up their farm businesses.

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Marketing: Production must always be linked to a market. Less education, knowledge level and exposure of farmers, poor communications, lack of reliable and timely market information, limited purchasing power and even negative attitudes of buyers in market acted as a barrier for farmer-entrepreneur. Lack of training and guidance facilities: To make farmer successful, entrepreneur training and guidance is very important by the expert person to improve farmer’s skills and help him to take better decision. Facilities and support for training must be easily available to farmers. Efficient and successful institutions need to be developed to provide assistance and training at the precise time in the right place. Social barriers: The fear of failure can be a barrier. Creativity and innovation are not always appreciated the character. Women as an entrepreneur are often less supported as compared to men. Extension workers will need to be aware of these social barriers and help farmers deal with them. Low bargaining power: Small-scale entrepreneurial farmers often have low bargaining power than large-scale entrepreneurial. If the production is low, usually the bargaining power is low. Low bargaining power often forces small-scale farmers to accept lesser prices for their produce. If the farmer had better bargaining power, he would have a healthier chance to settle on good market prices for their products. Competition: Competition with big players is a challenge for farmer-entrepreneur. A farmer started from basic level but big players have the proper manpower, cost-effective machinery, hold on the market, permanent costumers etc.

Future Strategies for Entrepreneurship Encourage Entrepreneurship: India has many entrepreneurs working in the villages of the country. It is very important to encourage the youth of the country to be an entrepreneur by providing subsidies, loans at low-interest rates, skill development of the youth so that youth become self-employed. Infrastructure: Good infrastructure is required for farm enterprise. Good roads, better transport facilities, storage for post-harvest of perishable crops and vegetable are required for farmers to connect with markets. Tax rebates and low paperwork: It is important to create interest in youth to become an entrepreneur. Perks in the form of tax rebate will be given to youth if they opt any self-employed business. Paperwork for getting permission, accreditation must be less and easy. Alternative Channels: It is very important to have alternate channels for farmer’s entrepreneur. Next level strategies for selling products and providing services by using the internet, direct contact with retail stores etc. helps farmers to get more income and expansion of enterprise to a larger area. Export-led growth: To provide better opportunities for market and price for farm enterprises government must create an environment for export of these farm products to other countries. Export of farm products provide better opportunities for farm entrepreneurship and enhance the income of the farmers.

Conclusion In this study it is concluded that entrepreneurship plays an important role in farmer’s life. If farmer grows sole crop the chances of failure are more which in turn puts pressure on the farmers. On the other hand, every enterprise cannot be successful. There is a need of proper training, strategies, market knowledge, labour, credit facilities, transportation, decision making capacity, market links and study of each step of entrepreneurship development properly so that success rate of entrepreneurship must be high.

References 1. Auerswald, P., Bayrasli, E., Shroff, S. (2012). Creating a Place for the Future Strategies for Entrepreneurship-Led Development in Pakistan. Innovations/Entrepreneurial Ecosystems, 7(2), 107-134. 2. Bock, B, B. (2004). Fitting in and Multi-tasking: Dutch Farm Women’s Strategies in Rural Entrepreneurship, Sociologia Ruralis, 44(3), 245-256.

Chapter 28: Farm Entrepreneurship181 3. Carter, S. (1998). Portfolio Entrepreneurship in the farm Sector: indigenous growth in rural areas? Entrepreneurship and Regional Development, 10(1), 17-32. 4. Charantimath, P, M. (2011). Entrepreneurship Development and Small Business Enterprise. Pearson Education. 5. Dabson, B. (2004). Supporting rural entrepreneurship. Federal Reserve Bank of Kansas City Proceeding — Rural Conferences, May, 35-47. 6. Government of India. 2011. Census statistics handbook, Office of the registrar general & census commissioner, Ministry of Home Affairs, Government of India, New Delhi. 7. Hanf, C., Müller, R. (1997). Schlüsselaktivitäten betrieblicher Anpassung: Informationsbeschaffung, Wissensakquisition, Erwerb von Fähigkeiten’ In: Schriften der Gesellschaft für Wirtschaft- und Sozialwissenschaften des Landbaus e.V., Vol. 33 (1997), p. 207-218. 8. Harper, M. 1992. Evaluating entrepreneurship development programmes in India. Small Enterprise Development, 3(4), 50-54. 9. Kahan, D. (2012). Entrepreneurship in farming, Food and Agriculture Organization of United States. 10. Lal, R., Miller, F, P., Singh, R, P. (1990). Sustainable farming for tropics. Sustainable agriculture, Issues and Prospective, Indian Society of Agronomy, IARI, New Delhi, 1 (1): 69-89. 11. Ministry of Agriculture, Forestry and Fisheries (MAFF) (2000). ‘Strategy for Agriculture: An Action Plan for Farming’, http://www.maff.gov.uk/farm/agendtwo/strategy/action.htm, 19/04/2000. 12. Newland., K., Tanaka, H. (2010). Mobilizing Diaspora Entrepreneurship for Development. Report from USAID and the Migration Policy Institute. 13. Pyysiäinen, J., Anderson, A., McElwee, G., Versala. (2005). Developing the Entrepreneurial Skills of farmers: some myths explored. International Journal of Entrepreneurial Behaviour Research, 12(1), 21-39. 14. Rantamäki-Lahtinen, L. (2002). Finnish Pluriactive Farms – the Common But Unknown Rural Enterprises. In Tanvig H. W. (Ed.), Rurality, Rural Policy and Politics in a Nordic-Scottish Perspective. Esbjerg: Danish Centre for Rural Research and Development, Working paper 1/02. 15. Riepponen, O. (1995). Maaseutuyrittäjänä menestyminen. (Succeeding as a Rural Entrepreneur), University of Helsinki, Centre of Rural Research and Training, Mikkeli, Publications 40. 16. Shahbaz., Ahmad, M, K., Chaudhary, A, R. (2008). Economic Growth and Its Determinants in Pakistan. The Pakistan Development Review, 47(4). 471-486. 17. Sharma, M., Tiwari, R., Sharma, J. (2010). Entrepreneurship in livestock and agriculture. CBS Publishers & Distributors, New Delhi, India. 18. Wortman, Jr., M, S. (1990). A unified approach for developing rural entrepreneurship in the US. Agribusiness, 6(3), 221-236.

Part IV Management Case Study

Chapter 29 Human Resource Practices: A Case Study on Swan Group of Companies Dr. Gagandeep Kaur*, Dr. Nilesh Arora** and Dr. Rahul Hakhu***

Swan group started its operations in the year 2005 in Mohali for providing infrastructure services to construction industry only. But, after some time, Swan group expanded its operations for telecom and power sector also. The group has started with an initial investment of Rs. 10000 only and currently, its annual turnover has crossed Rs. 100 Crore. The headcount was only 5 when the group started its operations in 2005 and it has now crossed 300 by the end of 2017, making it a good quality services provider for its clients. HR strategy at Swan group has always been focused on healthy working environment and strengthening employee engagement to leverage the limited human resources to achieve the group’s mission. According to Swan group, strong human resources have always been a backbone since its inception and the group is continuously flourishing further due to dynamic and motivated workforce only. The key point is the trust and employee empowerment given to the employees in their arena at Swan group. Set in a context of challenging business environment for MSMEs, the case discusses the HR practices being adopted by Swan group which have always been a driving force in its survival and continuous growth.

Introduction Swan Group has been creating and maintaining infrastructure services in telecom, power and construction domain. Presently, Swan group is providing the services to world’s largest telecom infrastructure companies such as Bharti Airtel, Vodafone, Indus Tower, Bharti Infratel, Reliance Jio in Northern region. The group is not confined only to telecom sector but it is offering services to various corporate and government departments in power infrastructure and building construction works. The group is empanelled as ‘A’ class contractor with many Government departments such as Punjab Urban Planning and Development Authority/Greater Mohali Area Development Authority, Punjab Police Housing Corporation, Punjab Mandi Board, Punjab State Power Corporation. Recently, the group ventured into the health industry also by inaugurating its first gym named as the code fitness gym in Ludhiana this year only. The group has revealed a number of factors for its success story. The most important factor behind the continued success is the workforce of multifaceted expertise. Our people have always been efficient and effective in terms to provide the clients prompt technical/quality services within the shortest possible time. The group has employees associated since its inception because of the reason of personal growth along with the healthy HR practices. A flat organization structure is followed. Any employee can meet the higher management at any time without any hassles into it. The office ambience is too good along with the organizational culture. Human resource department is quite agile and dynamic. The employees get wholehearted support not only by the HR department but management itself is quite supportive in all the initiatives taken by the employees. All the policies are drafted and implemented in a *Associate Professor, AIT-USB, Chandigarh University, Punjab. E-mail: [email protected] **Professor & Additional Director, USB, Chandigarh University, Punjab. E-mail: [email protected] ***Associate Professor & HOD, AIT-USB, Chandigarh University, Punjab. E-mail: [email protected]

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proper consultation with employees. A proper buy-in is also taken in case of change in any policy. The growth of Swan group is based on the strong and dynamic workforce inputs which in turn are linked to human resources practices being followed at Swan group. The next section deals with the HR practices in detail followed at Swan group.

Recruitment & Selection For recruitment, the group is inviting applications through consultants and print media such as advertisement in local newspapers mainly for junior and middle level positions. Apart from this, recently, the group has also started using social media such as Facebook to a reasonable extent for recruitments. But, most of the recruitments are done through employee referral system and the employees also get referral amount based on the level of the employee in the hierarchy. The reason for using employee referrals is the trust factor which they have already developed with the existing employees and HR department also revealed that existing employees gets connected in a better sense with their known ones which eventually brings win- win situation for our organization. In selection process, the employee is called for an interview after an initial screening is done by the HR department. A proper personal background of the employee is checked at this instance only. The second round is the technical round which is taken by the respective functional head. If he/she is found to be in synchronization with the requirements of the job, then a second round related to professional reference check is done at this juncture. This particular reference is checked either through telephone calling, e-mailing and social network profile at the end of the HR department. The social network profile is checked to explore more about the candidate in terms of his/ her psychometric profiling and this exercise is being done by a specialized team. After this, salary negotiations are done with the employee by the HR department and a final offer is made to the candidate.

Orientation Program at Swan Group It is well taken care by the HR department. The new joiners are exclusively given a two-week time to get along with people. It is done in a very informal and unique way. The motive is to just to make them feel at their second home. They are not driven by anybody during these two weeks. It is an employee himself/herself–driven induction program. They can go to any department for know-how at any time. The can click pictures with all the people in the team and in the organization also. During induction itself, one week day is exclusively kept for a city visit especially for the ones, those who are not from Punjab state. This is done to make them aware for nearby markets so that it can ease the new joiners in their initial settlement. Moreover, the group also provides one-week stay at their own arranged accommodation for an employee himself only including food also.

Training and Development Techniques Swan group strongly believes in the continuous learning and development of the employees. Training and development helps the growth of the business. The group provides training to its employees to improve their performance by imparting training in terms of aligning their skills as per the prevailing competent business environment. The group has a lot of emphasis on the training and development aspect. The group is providing training for behavioral as well functional aspects. Training is imparted through a number of methods. It starts immediately after the joining. An employee is imparted induction program for initial two weeks. Thereafter, one month exclusive on –job-training is provided under the guidance of a mentor. They have concept of mentor-mentee model, in which mentor may not be necessarily your functional head and he/she can be anybody from the same department who will always be there for your support in work pertaining issues for initial three months. The assigned mentor will help the new joiner in all possible ways related to initial settlement issues. At Swan, on-the-job training and off-the-job training techniques are conducted. The HR revealed that for managerial personnel, job-instruction, job rotation, workshops, seminar and technical training sessions are being conducted by the respective functional heads. Apart from this, trainers and experts are invited on regular basis to impart training on functional related aspects for managerial staff and in general after every six months, the responsibilities index gets increased to develop them further. The staff is frequently allowed for job rotation to gain new skills across the department in case an employee wants to

Chapter 29: Human Resource Practices187 opt. Most importantly, behavioral trainings session are conducted as and when they employees demand for it. Even if the employees do not demand, there used to be one behavioral session conducted every month including managerial, technicians and field workers. In fact, for technicians and workers, it is must to attend one behavioral session every month so as to improve their communication skills and confidence level. Eventually, these people are required to deal with the clients directly. Apart from this, safety training for field workers is imparted on regular basis and it’s mandatory for every field worker to attend. Time management and motivational training session are also conducted on regular basis in order to prioritize the tasks so that they feel energized and stay motivated.

Compensation and Rewards Management Today organizations are managing a diverse workforce and it is crucial to retain and acquire the best talent in the market. For this, organizations have to pay good compensation and benefits to its employees. The compensation and rewards management is essentially well taken care at Swan group. It also offers its employees not only good compensation but provides them a lot of benefits to ease them at work. It has already aligned its compensation strategy with the changing needs and demands of the workforce. It is paying its employees compensation in a way though fixed, variable and other tangible benefits. The employees are offered handsome pay packages linked to their experience, educational background and skill certifications. The employees are also covered for life and medical insurance where in only managerial staff has to contribute while for field workers, the entire amount for monthly basis is borne by the group itself. Apart from this, San group also contributes for provident fund at 12% on the basic salary and it gets deposited in EPFO. The field workers are also covered ESI Act. The group believes that field workers must take the monthly gross salary as it is to their homes. It must be exclusively for the family members. Based on this unique philosophy of Swan group, field workers are being paid for daily basis food expenses up to a certain limit and free shared accommodation is also provided. When the workers are travelling for any site, they are being paid for TA and DA on daily basis. Shared free accommodation is also provided to the managerial staff. Apart from this, if an employee wants to take some financial help for any personal reason, the group is providing in the form of advance loans and this can be deducted without any interest from the salary of an employee over a period of six months to one year.

Performance Management System They have already implemented a good performance management system. The appraisal process is very transparent. The employees get an annual increment within 10-15% depending upon their performance. Employees have also been given ‘employee of the month’ award. A cash prize is given along with the certificate to the employees and they make employees feel valued, respected and even loved. Poor performers are put under performance improvement plan also and as such, the group just does not sack the poor performers. They are given extra training sessions and their confidence level is raised by the guest motivational speakers. Moreover, in case an employee gets a very lucrative offer, they just retain him by offering the same salary and in most of the cases; the employees stay back if it is not due to an unavoidable family issue.

Working Environment and Workplace Culture The best thing of this group is that they call employees as ‘associates’ or ‘team’ and the management itself mingle with the team members. The philosophy of the Managing Director is that they people should work freely and if they are given free workplace culture, only then they can produce positive results. The funny workplace activities are conducted twice a month by the HR department to rejuvenate the employees. The official parties are organized sometimes in the office premises and sometimes away from the office. The employees are also taken away for one day trip along with the family members. The cake cutting ceremony is also performed once in a month for all the employees whose birthday has fallen in the same month.

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Moreover, a special care is given to the women employees. No stay back culture is encouraged for any employee but it is strictly prohibited in case of women employees even if the work is pending. The working environment overall found to be very satisfactory and pleasant. The employees are also given flexi-work timing policy and they are allowed to attend the office two hours on regular basis provided it is approved by the functional head in case of male employees to meet their personal needs. But, in case of female employees, no approval is required from the functional head. So, if in case any male/female have opted the flexi-work timing policy, male employee is required to stay back for two hours late in the evening and female employee is required to stay back for one hour in general and two hours only in case of an emergency. Leave policy is also good. All the employees are entitled for 12 casual leaves and 12 sick leaves in a year.

Communication and Feedback Surveys Every morning, they have a team huddle for day to day functioning and it os is conducted in the conference room. But, the prime objective is to make them express their issues in front of the team if any. This is done to ensure that the employees are eased in the morning itself and feel energized and comfortable throughout the day. An employee is free to ask the questions to anyone and the solutions are provided to the concerned employee by other team members. This is especially done to foster healthy team culture. The HR conducts surveys every month to take the feedback of the employees and the policies are framed/modified based on the feedback of these surveys and also in consultation with the employees and the employees’ ideas are encouraged through implementation in the organization. There is anonymous feedback system also so that employees can give true feedback about the culture and HR practices.rhhh Swan group has open door policy. An aggrieved employee can report the issue to any person either at middle level or report it to the higher management immediately to seek a solution for the same. Most of times, issues are resolved at the end of functional or HR department. But if required, Managing Director himself gets involved into it and sorts the problem. This unique issue handling system at Swan is an encouragement for all the employees.

Conclusion For the organizations to survive in the long run, it is important that they acquire and retain the best talent in the industry. They really need capable and motivated workforce to meet the dynamic needs of the business. For this, today’s business organizations need to inculcate stress free environment for the employees along with healthy work culture. Swan group has already been working around these parameters for the employees since its inception. As a result, they have almost 30% of the workforce associated with the group since its inception and almost 50% of the workforce has been associated since last 5 years. The data shows that the group has reasonably good retention rate. The group sets an example for other organizations as well. It has been growing on continuous basis due to its healthy working environment, unique orientation program, strong T & D practices, transparent appraisal systems, friendly atmosphere, open door systems and good HR policies etc. Above all, the employees feel at home while they are on duty.

Chapter 30 Business Model analysis for online shopping companies: Case study of Flipkart Dr. Shalini Aggarwal* and Dr. Jagmohan**

While we are living in the era of ‘digital disruptions’, e-commerce is an integral part of our lives. Electronic commerce is a unique business model, a 21st century innovation by some great minds. It is like a four pronged coverage of business by way of: Business to business, Business to consumer, Consumer to customer, Consumer to business thus completing 360 degree coverage to give it a complete meaning. It is a business model from a needle to an aero plane, a book to an educational service, a medicine to a medical advice and so on. E-commerce is a channel which facilitates the business to establish their presence to the world at large with the help of a virtual store which not only displays the products but also their specifications and consumer comments for good and bad both, a transparent business in the true sense. Another aspect is the price display which means the buyer has full exposure to different sellers and their offers for a given product. This aspect is important because the buyers are in the habit of bargaining with the shopkeepers. It satisfies that particular part of the buying habits. This has helped companies to enhance their business multifold by winning the trust of the customers and consumers. Taking the example of ‘Target’ Company, we can also have a dual business strategy, a combination of a physical store along with online store. On the contrary, organizations like Amazon have only online business approach. This has opened ways for some individual sellers who have established their own small time shops like eBay, Etsy etc. If we talk about the popularity of the ecommerce business we observe that it is a 24*7*365 category convenient business which provides you a very vast view of the things compared to a physical display store. It also has the convenience of selecting a specific segment of products.

Introduction FlipKart.com is the brain child of Sachin Bansal and Binny Bansal, an exemplary venture for many youth who dream business. It was launched in 2008, at a time when online business was just in infancy in India. This company has its headquarters in Singapore and is owned by FlipKart Pvt. Ltd., Singapore. FlipKart.com in fact is the name of the website which was bought by this Singapore based company from FlipKart Online Services Pvt. Ltd. FlipKart is a closely knit structure of different companies which have been owned and remodeled by FlipKart Pvt. Ltd., Singapore. FlipKart exemplifies a sales outlet for a wide range of goods between a needle and an aero plane, a unique model of an ‘E-Commerce’ company.

Flipkart It is a B2C e-commerce shopping portal which at the moment caters to the needs of inland customers. The modus operandi of this model is: to display sellers of desired products through a portal designed to attract customer base to browse through the same. Discounted prices and other promotional offers encourage them to shop *Associate Professor, Management Department, Chandigarh University, Punjab. E-mail: [email protected] **Associate Professor, Panipat Institute of Engineering and Technology, Haryana.

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the products. The seller is paid the price agreed by him after due deduction on account of services provided by Flipkart as middle man between the seller and the customer. We can derive that the ‘bread and butter’ formula is a certain %age of commission on the total sales volume. The sales may be affected via website, web-apps, mobile apps, tele-ordering or other affiliated networks.

Business Model of Flipkart (Company as a whole) FlipKart, a diversified business house which is registered in Singapore, plays smart move for its revenue model and has thus an upper edge over its competitors. The additional revenue source for FlipKart makes it a unique venture. The various revenue lines that FlipKart has for additional sources including its core business are as: 1. Web Portal (E-Commerce: mentioned above) 2. Web Portal Listing Fee and Convenience Fee (Sellers have to pay an amount of money as listing fee for selling on FlipKart while Customers have to pay Convenience Fee for faster Delivery) 3. Payment Gateway (ceased to operate) 4. Shipment fee is also levied on the sellers to cover the expenses. 5. Selling Ads (to sellers and brands) is another channel to earn money 6. Despite merger of Myntra FlipKart still maintains its identity and poses a tough competition to its own online fashion category companies while providing a big boost to the overall online fashion for FlipKart) 7. FlipKart also has a whole sale division named cash and carry. 8. FlipKart Nearby (ceased) 9. They also charge a launch fee to add to revenue 10. They also have an on line Wallet system to facilitate payments and thus earn commission.

Business Model of FlipKart from Listing and Convenience Fee Listing here means ‘Listing your products’ with FlipKart as a seller and convenience means ‘Convenience to buyers’ for speedy deliverances. This is particular method of revenue brings two way benefit to the company. The sellers have to pay a listing fee who wants to do business on FlipKart platform, which adds up to their income. Moreover, the customers who need additional services like gift wrapping, faster delivery etc. are charged more that adds to the total revenue of the web portal.

Business Model of FlipKart Payment Gateway – PayZippy Numerous Payment Gateways have made their way to help e-commerce players in collecting their sale proceeds from the customers. PayZippy is one of those which provides services to FlipKart and many other E-Commerce players out there. It is a very simple business model whereby they charge a nominal amount for every transaction made through them. It would make an interesting study to understand How payment gateways make money: There are different processing charges for different modes. In Debit Card and Net Banking the charges are around 0.75% to 1.00% of the transaction amount where as in Credit Card it is 1.5% to 2.25% and American Express Cards charges are 3.00% to 3.50%. Therefore the e-commerce companies will be paid after deducting the processing charges. e.g. I bought a headphone worth Rs. 1000. I made the payment using AMEX Cards via PayZippy. E-commerce company will get 965.65 Rs. (1000 * (1-3%*(1+14.5% ST))).

Business Model of FlipKart Logistics Initially, EKart Logistics was exclusively working for FlipKart to deliver Sellers’ and ordered products. However, in due course it got spun off FlipKart and starting operating as an independent entity and slowly extended its services to ship materials for all platforms. The logistics company charges the same amount for providing courier services and from e-commerce Player. The charges are same within city or inter-city or size of the package.

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Business Model of FlipKart Digital Media It is another facet of this business model. It plays the role of selling ads in three categories which are as: 1. Co-Branded Banner Opportunities on Home Page: Numerous sellers, products and brands get an opportunity to display and launch their products. FlipKart charges a huge fee from these companies that counts as the total revenue. 2. Co-Advertised Physical Product across Publications: Another source of revenue for FlipKart is the advertisements that they flash in the print media on front and other pages, which are very expensive. For example an adv. related to the launch of a new mobile through FlipKart will be flashed by them but the cost of the advertisement is shared by the brand for which they are advertising. 3. Targeted Search Results: Algorithm of the FlipKart site is also a means to earn revenue. The modus operandi is setting the priorities for products which are flashed first the moment you open the portal. They actually sell this space to the users for the highest bidding and thus add to their revenue.

Business model of Flipkart from Myntra: Myntra, a FlipKart owned website, is a renowned online fashion portal which has its independent identity for the fashion mongers. While Myntra earns an enormous amount of sales in its fashion products, which they say is much higher than fashion products sales of other brands by FlipKart, it also helps in boosting an overall sale and revenue trends of FlipKart earning graph. The current focus of FlipKart is to bring back local brands to its platform to help users enjoy a better buying experience. Although the departure of Punit Soni, CTO, is looked upon as a loss to the organization, some consider it a blessing in disguise because it would reduce the cost on one hand and would help in bringing back old employees who will strengthen FlipKart’s core business. Despite the fact that FlipKart has its own Fashion Category they are able to earn more revenue from the sales proceeds of Myntra, which have an extraordinarily flourishing business in this category, it being their specialization. That is the reason that FlipKart purchased this brand and even Jabong, which has been almost like a snatch away deal from Snap Deal.

Business Model of FlipKart from Wholesale (Cash and Carry) Further to its unique business model, FlipKart recently added another feature which is termed as ‘cash and carry arm’. In other words it is a sort of wholesale counter where one can buy bulk quantities on cash payment. These wholesale dealers are the seller base. It is a replica of business like ‘Metro Cash and Carry’ that is between Retailers and Wholesalers (Basically B2B). The revenue from this model is similar to the Web Portal Revenue that FlipKart gets from selling goods on its platform.

Business Model of FlipKart from Product Launch FlipKart enjoys the benefit of its enormous user base, which is its strongest point in the e-commerce business world. Daily visits and page views of FlipKart are amazingly unbelievable. Therefore, it offers a good opportunity to launch any new product in India. Xiaomi has launched all of its mobile phones and other products entirely in partnership with FlipKart in India. While Xiaomi as company was able to achieve high sales targets, this tie-up has brought FlipKart handsome amount of revenue in terms of margins on product sold for Xiaomi. Flipkart further charged the advertising charges to Xiaomi for launching the products on its own platform. This portal is a convenient B2C online platform designed to provide shopping opportunities to the Indian consumers. It provides a base to sellers for selling their collection of products by giving profitable discounts to its consumers who wish to buy them. The products ordered by buyers are shipped to them by Flipkart, for which. The sellers get an agreed price after deduction of Flipkart’s commission for the services provided.

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Various options for selling and buying through Flipkart are as: • • • • •

Flipkart website The web app The mobile app Social websites Affiliated networks like review websites, coupon websites, bloggers, etc.

The commission charged by Flipkart varies from 5-20% excluding taxes and discounts depending upon the types of products and sales. This is the how the Flipkart earn its bread butter. There is a big scope for Co-branded opportunities on the Flipkart’s homepage: The FlipKart homepage slider holds a host of opportunities for sellers to introduce their products and thus enhance their business manifold. This happens because products and brands are displayed on FlipKart page which is visited by millions everyday and many times a day. • Co-advertised products towards publications: co-advertised products are the ads that are shared by the newspapers and magazines’ front pages which can be used by the brands to advertise themselves. Taking an example of a new mobile phone launch through FlipKart. So FlipKart would flash the advertisement on the front page but eventually the cost would be shared by the phone manufacturer. • Target search results: Target results are the product of a search option for a particular item. FlipKart decides the priority list in which the product asked for by various sellers would be displayed. The most paying company would get the first slot and so on.

Areas that need attention While every business seems to be well planned but with the passage of time some changes, improvements and modifications are required to be effected. As for FlipKart, in our opinion, there are two very crucial aspects which seem to have been overlooked. These are: • They need to improve the user buying experience. • They need to invest in research so that they can innovate. They need to sell better than their competitor. • Align or partner with Brick & Mortar stores to extend Flipkart offline as well: To satisfy the ‘look and feel’ culture of Indian buyers, a partnership alliance with some brick and mortar stores will add to their business many folds and help them grow further to an extent that even their logistic issues are taken care of.

Results of Flipkart 2017 - FY results Basis documents sourced from data intelligence platform Paper Flipkart Group saw its overall revenues increase by nearly a third in the previous fiscal while losses ballooned on the back of falling valuation. According to the regulatory filings made by the online retailer’s parent company in Singapore, revenues rose by 29% to Rs. 19,854 crore in the financial year ending March 2017. At the same time the company suffered losses to the tune of Rs. 8,771 crore, which means an increase by 68% compared to the previous year. This is because the company spent huge amounts over marketing, improving technology, providing discounts and building warehouses. Funding received by FlipKart: Flipkart, a Singapore-based company has conceived a huge set-up of much interconnected and few allegedly independent companies accumulating a huge amount of money to develop an interspersed e-commerce business valued at App. 3.5 Billion USD. (As of January 2016, Excluding the Credit Line from ICICI Bank of 450 Cr) Flipkart’s valuation is slightly near to about $7.9 billion—which is way below the $11.6 billion valuation at which Flipkart raised funds earlier this year. In the previous quarter, Valic had valued Flipkart at roughly $8.5 billion. While

Chapter 30: Business Model analysis for online shopping companies193 technically Flipkart’s latest fundraising was a “down round” from its peak valuation of $15 billion, the fundraise was seen as a major victory for Flipkart, given its struggles in 2015 and the first half of 2016 when it made several strategic blunders and conceded significant market share to Amazon India.

Alibaba’s Business Model Alibaba is the Chinese synonym for the American company, Amazon. This name is the Titan of China’s e-commerce market. Elaborately speaking, Alibaba is a unique e-commerce company encompassing various business models. However its core business resembles that of eBay. It enacts middleman’s role between the two ends i.e. buyers and sellers. It provides an online platform to facilitate the sale of goods through its extensive network of websites. One of its largest sites, Tao-bao, provides free services to both buyers and sellers as neither of them are charged any levy for completing their transactions. However the company is compensated by the nearly 7 million active sellers on Taobao pay to rank higher on the site’s internal search engine, generating advertising revenue for Alibaba that resembles Google’s core business model. Alibaba has a different way of business in which the company has provided a special and dedicated space for big time retailers whereas Taobao website is used by small merchants. Tmall is the e-commerce site owned and operated by Alibaba that caters to well-known brands, including Gap and is successful because of the massive technology, the cluster effect, the extraordinary selection, ease of transaction, and so forth. Despite fewer customers, means the sellers that are listed on the site. Alibaba is able to generate revenue from deposits, annual user fees and sales commissions charged to retailers utilizing the site. Another glaring aspect of this Chinese site is that Alibaba is not just an e-commerce site but also a company who as a competitor in the Chinese financial system. A step further they have created Alipay, another website to support Alibaba, which addresses customer concerns over the security and validity of transactions completed online. It provides protection to buyers in case the sellers back out from the deal of delivering goods, a secure payment system. In addition to its PayPal-like platform, Alibaba also generates revenue from its newly launched micro-lending business arm that caters to individual borrowers.

Amazon Business Model Alibaba is the Chinese synonym for the American company, Amazon. This name is the Titan of China’s e-commerce market. Elaborately speaking, Alibaba is a unique e-commerce company encompassing various business models. However its core business resembles that of eBay. It enacts middleman’s role between the two ends i.e. buyers and sellers. It provides an online platform to facilitate the sale of goods through its extensive network of websites. One of its largest sites, Taobao, provides free services to both buyers and sellers as neither of them are charged any levy for completing their transactions. However the company is compensated by the nearly 7 million active sellers on Taobao pay to rank higher on the site’s internal search engine, generating advertising revenue for Alibaba that resembles Google’s core business model. Alibaba has a different way of business in which the company has provided a special and dedicated space for big time retailers whereas Taobao website is used by small merchants. Tmall is the e-commerce site owned and operated by Alibaba that caters to well-known brands, including Gap and is successful because of the massive technology, the cluster effect, the extraordinary selection, ease of transaction, and so forth. Despite fewer customers, means the sellers that are listed on the site. Alibaba is able to generate revenue from deposits, annual user fees and sales commissions charged to retailers utilizing the site. Another glaring aspect of this Chinese site is that Alibaba is not just an e-commerce site but also a company who as a competitor in the Chinese financial system. A step further they have created Alipay, another website to support Alibaba, which addresses customer concerns over the security and validity of transactions completed online. It provides protection to buyers in case the sellers back out from the deal of delivering goods, a secure payment system. In addition to its PayPal-like platform Alibaba have created a micro-lending business arm that caters to individual borrowers which is a source of revenue for the company.

194


Amazon Business Model Amazon, which has assumed the status of a big e-commerce company over the last two decades, is a proverbial name in online buying system. The moment we access internet we encounter an Amazon service. They own their success to a well-planned and well-designed business through which they are able to manage efficiently multiple and independent revenue sources which are somehow connected to one another. Amazon Marketplace: They generate revenue through commissions and other charges from sellers. Amazon Books: Books are sold on Amazon which generates revenue. They have book depository, and e-books, audio books, comics on ComiXology and through Amazon Publishing. It has created an all new e-book demand by introducing Kindle in the market. Amazon Music and Videos: It includes star websites like IMDB and twitch.tv which makes loads of money for Amazon. Amazon Music and videos adds to its revenue. Amazon Gaming: Amazon’s subsidiary, Amazon Game Studios is one of the popular names in the game development industry. Amazon Digital Game store sells third party games as well. Amazon Web Services: Amazon is among the top IT infrastructure providers in the world. It provide support to CIA and Netflix Amazon Fire Products: Fire range of products has been launched which include phones, tables, TV and mobile OS. Amazon Prime: The company provides premium membership to its every service through Amazon Prime. Amazon Patents: The company has 1000 patents many of which are licensed by other companies.

Conclusion FlipKart, a pioneer in e-commerce business in India and took the nation by surprise, and the nation in turn helped them to establish to an extent of 200% annual growth rate of GMV (Gross Merchandise Volume). The same company today faces a blizzard of its own making, a major shake-up at the top, which hindered the sales graph drastically. In a long innovation engine of the company there has been no growth since last year, a sign of danger. The management team has not been able to energies the sales channel and boost morale of the employees. As a result the very nation which brought to the level of a roaring success has become a barrier in its way. It is a situation where the company feels discomfiture for having wasted its first mover advantage to a company like Amazon, whom they had overtaken in terms of business and financial growth in a very short span of time. However, carrying along this feeling would only further intensify the crisis, which has by now already badly shaken the confidence and trust of the investors to an extent of ‘make or break’ solutions. Flipkart has been and still is very popular as a website with so many visits, views and likings by the visitors to their pages. It has always been and still is an amazing platform for the launch of new products by reputed companies. As we have all experienced, Xiaomi launched all its phones exclusively through FlipKart, an exclusive partnership relation in India, which helped FlipKart earn enormous revenue through sales and advertisements both. Despite huge losses FlipKart would be still able to make a comeback if they focus on their policies and working strategies, which need to be modified at a gross level. Some of the factors that could enable the company to reestablish itself are numerated below: • Flipkart must gather courage to directly tie up with more and more local vendors rather than depending on WS retails, who has grabbed 80% of its logistics and delivery networks. As a result the small time vendors have been compelled to play a second fiddle to WS, which is not a healthy business style. In this type of business WS has been able to transfer the losses to other vendors, which caused debacle to FlipKart. • Based on the online searches for products over the platform, the tech teams of Flipkart should build technology to serve paid ads product based on keywords.

Chapter 30: Business Model analysis for online shopping companies195 • Acquiring AdiQuiity, the mobile advertising technology firm, is another good move. It would further help in improving the customer data analysis and provide data relating to shopping patterns. • with the introduction of monthly and yearly subscriptions for the third party vendors to boost the earning level to a larger scale, the earning graph has further improved • The association between Flipkart and Airtel zero has started leading to huge profits due to the free app support. • Flipkart has emerged as a big brand for the Indian consumers who value this company. Now what they need is to work in a better way with its consumer base to encash its brand value. With an enormous customer base already visiting this site, FlipKart now just need to give an extra push to improve its services to get the best out of it. Going by the above findings it is clear that Flipkart is India’s top online selling web portals. it provides a great deal of consumer satisfaction and loyalty through its services by way of cash on delivery options, faster delivery options, great discounts, return policies, refund policies, etc. All these factors have led to the success of Flipkart and the company has earned the name of ‘one stop solution’ to all customer needs without much of searching problems. They have a beautifully designed logistics set up which facilitates the convenience for finding the product they need. These factors have led to better working of the company and the company looks forward to a much bigger success in the future.

References 1. https://www.feedough.com/amazon-business-model/ 2. https://unicornomy.com/amazon-business-model-how-does-make-money/ 3. https://www.investopedia.com/articles/investing/061215/difference-between-amazon-and-alibabas-business-models. asp 4. https://www.livemint.com/Companies/kcNbpF89GYRnGbKHrWqG1H/Flipkart-finally-seems-to-have-a-blueprint-ofits-business-m.html 5. https://www.investopedia.com/terms/e/ecommerce.asp 6. https://study.com/academy/lesson/what-is-electronic-commerce-definition-types-advantages-disadvantages.html 7. https://techstory.in/flipkart-business-model/ 8. https://unicornomy.com/business-model-of-flipkart/

Chapter 31 Effective and Efficient Management of Rural Water Resources – A Case Study of Garhshankar Region Dr. Manbeer Kaur*, Mona Prashar** and Dr S Ramachandran***

Water seems to be an unending resource whereas less than one percent of the world’s entire water reservoirs are comprised of drinking water. Most of the water that is available, comes from the ground water tables existent in various areas. Drinking water has become a world concern. The biggest problem faced by the world today is that several countries and specifically cities within them are under severe threat of dying off altogether. The current study is a look at the three-point strategy for promoting human endeavour towards coming to terms with this vital Earth issue. The three steps are: 1. Becoming aware of the seriousness of the issue 2. Understanding local practices that promote wastage of water knowingly or unknowingly. 3. Working out and adopting water construction and recycling strategies and innovating judicious water use. Punjab being an agricultural majority state, the irrigation needs of the crops are understood by the state fiscal system. However, the need to conserve water for domestic use seems to have by-passed all policy planners at the state and district levels. The present study is an examination of levels of awareness of rural youth, as well as analyzing their views on conservation of precious resources through the adoption of innovative water purifying mechanisms like Root zone or Reed Zone technology.

Introduction Water scarcity is a fact of life. It has been increasing all over the world and according to reliable estimates it stands to become an absolute scarcity in several countries by the year 2025. That is just 7 years from this year that is 2018. This problem becomes all the more compounded when looking at the severity of surface water pollution and even ground water contamination has been recognized as a critical worldwide problem. The sewage of villages, small towns and cities is flowing unchecked and un-treated through drains to join ponds, lakes and rivers. As a result of this constant contamination, both the surface and ground water is being polluted because of this untreated waste water. Also, the local municipal corporation’s sewage treatment plants in the region, are not equipped to treat such a heavy load of waste water. They need to be redesigned to process these vastly increased quantities of incoming waste water. This is a major reason why they have inadequate capacity and volume handling potential to treat the sewage as per standard requirements. The Department of Sciences, BAM Khalsa College, Garhshankar, conducted a study to ascertain the effectiveness of the RZTS (Root Zone Treatment System), a simple mechanism that has been developed to treat kitchen waste water by growing some pre-defined ornamental and aquatic plants. *Assistant Professor, Dept of Zoology, BAM Khalsa College, Garhshankar, Punjab. **Associate Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] ***Prof & Executive Director, University School of Business, Chandigarh University, Punjab.

Chapter 31: Effective and Efficient Management of Rural Water Resources197

Waste Water Reclamation Strategies The students and faculty of the Science Department felt it was essential to enquire into the current situation of water use and examine minutely the local attitudes towards water wastage before demonstrating how this enriched water could be used for irrigation of kitchen gardens and sundry foliage. In the past decades many and variant technologies have been developed, experimented with and utilized for waste water reclamation. Several strategies to judiciously utilize resources of sustainable water have been developed. However, reclamation of waste water and reusing it is largely based on advanced and optimized processes which may be microbial, chemical or physical in nature. They are technically very sophisticated and not affordable in countries like ours that are populated to a greater extent by financially weaker societies. Reclamation strategy to process waste water has been witnessing significant changes in the recent years. Currently, adaptable strategies are more environmentally sound. They are sustainable, entail low-costs and employ effective technologies that are based on ecological principles of Green technology (Fritsch 1989; Saha & Jana 2003). The objective is to improve the overall environmental quality for wide surface areas and diverse populations. Fresh water, which is essential for sustenance of life, is impossible to substitute. The precious reserves of freshwater across the globe are depleting very fast. China and India are countries known worldwide for their thick density of population, thus, they are at highest risk to be most severely impacted upon for lack of fresh water. Some of the prominent reasons for this are: • Increased volume, frequency and mindless pollution of the very resources of fresh water, complete apathy to conserving water, lack of efficiency in water use, water re-use, ground water recharge and eco-system sustainability, environmental degradation are all parameters for fostering global conflicts and competition for fresh water. • It is interesting to note that under Indian common laws, the landowner holds ownership of groundwater as per system of ‘water rights’, even though the common pool aquifers make ground water a shared resource. • Using borewell technology for irrigation has grown phenomenally. In many places, it has become so reckless that it has by far exceeded the capacity to naturally recharge fresh water resources itself.

Water Consumption Patterns Traditional India’s rural areas had been riddled by stringent caste considerations that extended to the allocation of various benefits or their withdrawal from certain communities. The rigid caste system had divided the use of water resources as also the many privileges of water use. Where on the one hand, communities were barred from use of particular water resources, on the other hand they were generous enough to construct huge water reservoirs called ‘baulis’ in Rajasthan, Gujarat and Madhya Pradesh. These were deep tanks of water that were recharged with natural water and were literally the life source of the population. Sadly, enough several of these almost indefatigable water sources were left to ruin, were ill-maintained and finally destroyed due to water wars and undeserved restrictive use. Over the years in some places water had become a political tool and its ownership spelt power and prestige in water starved communities. Many of the moneyed or politically endowed persons tended to take control and corner these vital life lines. This led to the larger number of communities experiencing a depravation that was new to the civilized word. Large magnitudes of the population came to experience “water poverty”. The United Nations New Commission on Sustainable Development had underlined in 1993 the vital roles played in the world’s lifeline by delineating the urgent and emergent need for water in: 1. Food Security 2. Sustain Life 3. National Environment Preservation 4. National Environment Conservation 5. National Environment Rejuvenation 6. Production 7. Economy 8. Politics

198


History is witness to the importance of water for civilizations as also the discord and dissidence recorded over waters. The decrease in drinking water resources has resulted in the internal stability of several South East Asian countries being threatened. This is relevant in the current times according to a UNICEF report: “There will be constant competition over water, between farming families and urban dwellers, environmental conservationist and industrialists, minorities living off natural resources and entrepreneurs seeking to turn it into a community resource base for commercial gain”.

Accessibility and Availability The presence of drinking water and its access by human beings are two variants that need to be recognized and understood astutely. There is a relation between presence of water reserves in adequate quantity and its availability for consumption. Accessibility, however, depends on the people’s ability to actually reach and partake of the bounty of a particular water reservoir. These two distinct types of problems are the harbingers of any region’s experiencing ‘water stress’ or ‘water scarcity’. Distinguish between “water stress” and “water scarcity” it can be said that ‘water stress’ happens when the country’s annual allocation of water supply per person drops below 1,700 cubic meters. Water shortages occur when the nation’s annual water supply per person is between 1,700 and 1,000 cubic meters. Yet, when the quota of water supply is less than 1,000 cubic meters per person, that country is hit with ‘water scarcity’. This is a threat to food production, the economic development is undermined, and the entire ecosystem is deeply injured. The environmental factors and physical factors determine the ‘availability’ of water (i.e., the geography and climatic changes of a country), and ‘accessibility’ depends on the social and political factors like the extent to which that country’s agricultural sector is based on irrigation, or how efficient is that country’s water supply and waste water management).

The Challenges India’s ‘water crisis’ situation is mostly a man made crisis. The monsoons are a boon to India’s climate. The monsoon add on session is conducive to rich reservoirs of pure drinking water. There is no dearth of rivers, natural water bodies and ample groundwater. Unfortunately, poor water management policies, hazy legal system, corrupt governments and pollution caused by industrial waste and humans’ poor waste management have resulted in this water being practically useless due to excess quantity of pollution. Water shortages in the form of ‘water stress’ and ‘water scarcity’ are increasing very fast in India. In 1998, a public warning was issued that as a result of rapidly increasing population and uncontrolled industrialisation, the per capita freshwater availability was fast declining. One of the ministers in Parliament, informed that the per capita availability of freshwater in 2025, would be expected to drop to 1,500 cubic meters per year. In comparison to the 2200 cubic meters per capita in 1997 and 5,300 cubic meters per capita in 1955. Even though, India’s irrigation infrastructure is the largest across the globe, it is also poorest according to the Union Finance Minister in his last budget speech, ‘There is no democracy in water resources development therefore the solution lies in changing that situation in fundamental ways’.

Irrigational Waters The Command Area Development Programme (CAD) is implemented by Government of India w.e.f. 1974-75. The program became the Command Area Development and Water Management (CADWM) since April First 2004. The main objective of the programme was utilization of irrigation potential and optimizing food grains production. The scheme is now implemented as a State Sector Scheme the XI Five Year Plan (2008-09 to 2011-12) onwards. Table 1 depicts the statewise funds released under CADWMP in India during 2007-08 to 2012-13.

Chapter 31: Effective and Efficient Management of Rural Water Resources199 Table 1: State-wise funds released under command area development (CAD) and water management programme (WMP) in India. No.

States

2007-08*

2008-09

2009-10

2010-11

2011-12

2012-13

1

Andhra Pradesh

-

-

-

-

-

-

2

Arunachal Pradesh

238.59

250

0

41

56.39

168.84

3

Assam

-

595

0

226

0

269.48

4

Bihar

-

-

6095

2669

2943.86

3000

5

Chhattisgarh

-

-

-

8285

1392.17

2000

6

Goa

-

-

-

81

6.42

178.85

7

Gujarat

3057.66

0

0

494

682

1791.5

8

Haryana

2332.22

4411

5451

4767

5800.62

5515.26

9

Himachal Pradesh

-

-

-

-

-

-

10

J&K

777.61

1293

1432

2250

2005.52

3156.69

11

Jharkhand

-

-

-

-

-

-

12

Karnataka

5771.29

1500

3170

5342

5308

3952.52

13

Kerala

-

-

-

106

418.08

28

14

Madhya Pradesh

490.07

0

590

1000

5510.11

2557.71

15

Maharashtra

622.27

2624

3405

0

2148.27

409.25

16

Manipur

184.07

554

939

1200

927.02

775.42

17

Meghalaya

-

-

4

26

-

-

18

Mizoram

6.43

-

-

-

13

-

19

Nagaland

19.43

-

-

-

15

-

20

Odisha

1101.91

2976

1578

3563

3102.85

2341.79

21

Punjab

3589.24

6091

0

6000

3000

0

22

Rajasthan

1804.38

4630

2981

-

2244.07

1744.41

23

Sikkim

-

-

-

-

-

-

24

Tamil Nadu

1740.48

0

4650

1500

2999.82

1030.82

25

Tripura

-

-

-

-

-

-

26

Uttar Pradesh

0

7095

9476

7000

10000

7597.79

27

Uttarakhand

5746.3

410

-

-

-

-

28

West Bengal

231.58

-

1600

690

-

-

29

India

27713.52

32429

41370

45640

48573.2

36518.73

Reclamation: Methodology, Experimentation and Results This study highlights the possibility of grey water treatment through the root zone treatment mechanism. The students were willing to set up and demonstrate an eco-friendly method for water recycling. They even persuaded and individual households to see if they were willing to adopt this method on a long term basis.

200

Part IV: Management Case Study Table 2: Setting up RZTs Mechanisms I to IV

No. Filter bed construction Materials

Set Up

1

Large gravel, Small gravel, Coarse sand, Fine sand, Soil Charcoal, Phragmites australis and Typha latifolia

Mechanism – I

2

Large gravel, Small gravel, Coarse sand, Fine sand, Soil Phragmites australis (Reed)

Mechanism – II

3

Large gravel, Small gravel, Coarse sand, Fine sand, Soil, Typha latifolia (Cattail)

Mechanism – III

4

Large gravel, Small gravel, Coarse sand, Fine sand, Soil, Ornamental plants – Lantana camera and Coleus forskohlii

Mechanism – IV

The process conducted for implementing these four mechanisms is explained in details: Tanks having uniform dimension (36 cm x 40 cm) were utilized to set up the waste water treatment units. A hole was made at the bottom corner of the tub and a pipe was fixed at it. This hole was covered from inside with a metal mesh of size 0.5 cm. The tanks were filled with four layers of different materials from bottom to top as per Table 1. The bottom most layer was comprised of bigger size gravel (4-10 cm), then layered with smaller size gravel (1-4 cm), over which was spread coarse sand, and then fine sand. Last was the soil cover. Each of these layers was of 6 cm height. The plants were planted in the sand layer. All treatment filter mechanisms were set up and maintained in triplicate. The filtering of the waste water was done through these four mechanisms. The quantity of waste water poured into the four tanks was the same 5 liters. After 24 hours the pipe was opened and the outlet waters were collected. Thus water was analyzed for pH, electrical conductivity, turbidity, dissolved oxygen, biological oxygen demand, total dissolved solids and E.coli. This analysis was conducted along Standard Methods (APHA) for the examination of water and waste water. The study results showed that the quality of water on passing through the various filter beds was effective in reducing the overall water pollution load especially with respect to pH, electrical conductivity, turbidity, total dissolved solids and BOD. All values were found to be well within permissible limits for general effluent standards for discharge into public sewers. Of all the four mechanisms of filter beds those having the plant P. Australis were found to be most effective in reducing the pollution load in water. However, none of the filter beds were effective in reducing the E. Coli count in the waste water. There was also observed the fact that none of the four mechanisms was effective in odour removal. Nevertheless, the conclusion drawn was that if waste water was passed through P.australis and T. latifolias’ filter beds, it would effectively decrease the burden of organic pollution on the public municipal plants for waste water treatment, ponds, rivers, lakes and ground waters. A survey was simultaneously conducted by the village in BAM Khalsa College, Garhshankar’s Science Department. The faculty and students took up a rapid survey on the vital question of water and its usage among rural populations. The tool of investigation was a questionnaire that involved open and close ended question of water, its scarcity and its use. The geographical area selected for the survey was the rural area of Garhshankar, development block of Hoshiarpur district in Punjab. The survey was conducted by the undergraduate students of the science faculty. The entire project was coordinated and managed by the Professor, Department of Environment Conservation and Department of Zoology. Table 3: Which the survey was conducted were: Sr. No.

Villages

Sr. No.

Villages

1

Bagwain

7

Garhshankar

2

Rurki

8

Boran

3

Garhi Mansowal

9

Chandpur Rurki

4

Jhungi

10

Ibrahimpur

5

Sadarpur

11

Sardowal

6

Roadmajra

12

Gogo

Chapter 31: Effective and Efficient Management of Rural Water Resources201 The students finally set up the water purification plant in-house to demonstrate what was being achieved by the water purification mechanism.

Conclusion Climate change is the driving force that has altered global weather-patterns, including the severe dry spells and droughts as well as tidal waves floods and deforestation. These are accentuated by perpetually increasing pollution, greenhouse gases, and wasteful use of water resulting in severely depleted vital resources like drinking water. The current rapid survey is an assessment of the levels of awareness the rural populations have towards this rare resource. Their views were tabulated and subjected to certain statistical states. The results of the survey are a potential eye-opener on how aware large sections of population are to this rare commodity that is drinking water. Many states of Africa and Asia have been earmarked for an acute water famine. If they do not work now they may be abandoned by populations seeking relocation to water plenty regions. Less than one percent of the water available is drinkable. It would have been adequate for humans populating the Earth until now. However, irrational and indiscriminate waste is fast depleting this resource. Of all the Earth’s water bodies 97% are saline and about 3% are hard to access. However, recent years have seen some unequal distribution due to extreme climate changes. Thus, there are some very wet and some very dry locations on the globe with an ever escalating global freshwater demand. Expansion of concrete, high rise cities, industries and leisure activities have pushed the expected demand for water which will exceed 40% in 2030, if these trends continue. Groundwater is a resource for the nearly half the drinking water of the world. As of 2010, the world’s aggregated groundwater was approximately 1000 km per year. The utilization of this water has been depicted in Table 4 Table 4: Utilization of Groundwater Sr. No.

Purpose of water use

Percentage %

1

Irrigation

67

2

Domestic purpose

22

3

Industrial purpose

11

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10. Saha, S. and Jana, B. B. 2003. Fish macrophyte association as a low-cost strategy for wastewater reclamation. Ecological Engineering, 21:21-41. 11. Seckler, D., Barker R. and Amarasinghe U. 1999. Water scarcity in the twenty-first century. International Journal of Water Resources Development, 15:29-42. 12. U.S. Environmental Protection Agency (EPA) (2002). Cases in Water Conservation (PDF) (Report). Retrieved 2010-02-02. Document No. EPA-832-B-02-003. 13. Vickers, Amy (2002). Water Use and Conservation. Amherst, MA: water plow Press. p. 434. ISBN 1-931579-07-5. 14. “Water conservation Defra”. defra.gov.uk. 2013. Retrieved January 24, 2013.

Chapter 32 Push Factors in the Management Dynamics among SHG’s of Punjab: A Case Study Mona Prashar* and Dr S Ramachandran** This is an empirical study on the manner of operations adopted by members of women Self Help Groups in Punjab over the past two decades. The systems adopted, modified, adapted and in place among Self Help Groups and how they influenced the lives of the members individually and collectively have been analyzed in minute detail. The study has been taken up to understand how women who live in a secluded, isolated environment of their homes have brought about a veritable revolution in their lives after adopting the approach of the Self Help Groups’ collective movement. The study casts the spotlight on the positive and negative features of the women’s earlier struggle to find acceptability. They did not set out to seek empowerment in the socio-economic sphere but ended up becoming empowered anyhow. What were some of the key factors contributing to the women conforming to group dynamics? Were they self-motivated or were they given the inducement of adequate incentives for joining a group and participating in its long term and short term objectives. What were some of the mechanism put into place to push the women’s socio-economic milieu well into the background and help them emerge as self-sufficient units successfully running their micro-enterprises? This study examines the hierarchical factors of husband, family and social setting that pull back a woman from participating in the Self Help Group movement of her own free will and also the push factors that take her to the length of ameliorating her lot. The paper looks at the three fold nexus of opportunity, threat and personal courage on the part of the rural women to overcome their difficulties and emerge as winners. The study also examines the fragile substratum of self-doubt fear of rejection and recrimination on which rests the psyche of the rural women who sets out to join a self-Help Group. The Methodology of empirical research has been adopted to collect the data and conduct statistical analysis.

Introduction “The strength and longevity of an SHG rests on two pillars. These pillars are: 1. Solidarity and unity of the SHGs members 2. Efficient and true book keeping” These words were spoken by the ex-CGM, NABARD, India, Mr. S.K. Sarangi. He was addressing the members of a pickle making Self Help Group in village Boothgarh at the Handicraft Centre created by the Ministry of Tourism, Government of India and made operational by the Ministry of Small and Medium Enterprises (MSME) through its implementing Agency the Rural Environmental Enterprises Development Society, (The REEDS). The CGM, NABARD, India, had travelled from Bombay to this remote village of Punjab when he became aware of the spirit of enterprise of these handful of women who were churning out quintals of pickle in a year through sheer word of mouth. They did not advertise neither did they use the conventional commercial route of supplying to shopkeepers, canteens, hostels or other such institutions. They catered to households across Punjab, Chandigarh and Haryana only on the basis *Associate Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Prof & Executive Director, University School of Business, Chandigarh University, Punjab.

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of a telephone call. They did, however, have a thriving highly functional network of mutual friends and relatives who took orders and ensured that payment channels were strong. The current paper is a longitudinal research into the management of this group of SHGs who are functioning on simple principles of business and yet selling tasty, home-made top quality traditional Punjab pickles by the bucket load. The findings of this study are based upon a series of interviews conducted over the past decade to understand the dynamics of management processes in place in this group of Self Help Groups.

The Methodology The universe of study for this piece of research is the three SHGs located in Chotta Bajwara of Hoshiarpur – I Block of Hoshiarpur District in Punjab. All three groups have initiated the micro-enterprise of pickle making. The researcher has used the empirical research tools of interview schedule to conduct In-Depth Interviews (IDIs) with the SHGs members and Key Person Interview (KPIs) with some of the clientele who were steady customers of the pickle making SHG members. The Focus Group Discussion (FGDs) method was also used to obtain the common views of the members belonging to these SHGs. These FGDs were conducted with the help of an interview guide. In the case of many of the IDIs, it was found they could open up only after having participated in the FGDs. The tools of investigation were prepared and three rounds of the investigative research was conducted on the SHGs between the years 2009 and 2015. In each round of investigations the researcher ensured that the same members participated in the FGDs. In case some SHG members could not attend due to an exigency like being out of town or attending to some personal emergency, they were later interviewed telephonically to corroborate their views with those collected in the fieldwork situation. There were three Self Help Groups participating in the pickle making. Their details are as follows: Table 1: Details of Pickle Making SHGs Sr. No.

Name of SHGs

Monthly Saving

Number of Members

1

Ekta SHG

Rs. 100/- per month

13

2

Guru Nanak SHG

Rs. 100/- per month

12

3

Mata Gujri SHG

Rs. 50/- per month

11

All three SHGs were credit linked with the Punjab and Sind Bank in Ram Colony Camp on the main Hoshiarpur Road. The SHG’s members had a history of not speaking up their mind at all under any circumstances. It is essential to understand the ethno-demographic details of the SHG members before examining their management tactics.

Ethnographic details of the Sample Population: The three groups had between them a total of 36 members. By the end of the study 3 members had decreased. Two had had to dropout due to health reasons and one of them had left the village to join her husband in Rajasthan. All three groups were homogenous because of the fact that their members’ background was similar. Most of them belonged to the Scheduled Caste category. Those few who belonged to the General Category were poverty stricken and backward. The homogeneity of the SHG was further accentuated by the fact that all members belonged to similar age groups, had similar academic qualifications and belonged to the similar income groups and occupations. This has been depicted in Table 2 Table 2: Age, Education, Income and Occupation of SHG members Sr. No.

Age Group

Percentage

1

Up to 20 years

3.0

2

21-30 years

42.0

3

31-40 years

48.0

4

41 years and above

7.0

Chapter 32: Push Factors in the Management Dynamics among SHG’s of Punjab205 Educational Attainment 1

Illiterate

7.0

2

Up to Primary School Level

21.0

3

Up to High School Level

70.0

4

Graduate

2.0

Occupation 1

Land less agricultural labour

43.0

2

Daily wages

37.0

3

Vegetable Vendor

18.0

4

Tea Stall owner

2

Income Category 1

Up to Rs. 3000 per month

17.0

2

Rs. 3001-5000 per month

32.0

3

Rs. 5001-8000 per month

39.0

4

Rs. 8001 upwards

12.0

Number of Dependents 1

Up to 2

14.0

2

2-4

48.0

3

4-6

28.0

4

More than 6

10.0

It must be noted here that in the income bracket the people who reported having higher income were mostly those whose husband had gone abroad for work. The Hoshiarpur region falls in the Doaba region of Punjab which has been traditionally renowned for sending a large number of its male population abroad for seeking lucrative jobs. These males go to countries in Saudi Arabia, Europe and Canada as semi-skilled and unskilled labour. Usually they sell their landholdings and assets to obtain the necessary papers. Most of these job seekers going abroad are neither welleducated nor well-trained. More often than not they work at low paying labour jobs but even then the remuneration received is much higher according to what they are able to earn here in India. The entire universe of study was included comprising 33 rural women members of Self Help Groups involved in micro-enterprises, i.e. pickle making.

Challenging First Steps The initial stages of the group formation were quite challenging. Most of the women were dependent upon their men folk totally for every little remuneration. To ask such women to take out a small amount every month as their monthly saving would have been virtually impossible. Secondly, the rural women live a highly socio-economically restricted and constrained life. They are rarely allowed to leave the village unaccompanied and even within the village, their movement is fairly restricted. There are always mothers-in-law, sisters-in-law, brothers-in-law who accompany them to do their errands in the village. Even the children are considered escorts. The women are very rarely seen to be moving about the village or near-about on their own. They cannot think of forming a group and participating regularly in its meetings without thinking of being interrupted by their family members. All their movements are monitored surreptitiously. Many a times their children are used against them by their families. Probably in the in-born fear is that if they participate in independent thinking, they will develop self-confidence and even raise their voice or collective voices

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against being subjected to domestic violence or even start claiming all forms of equality. This is basically a dogmatic mindset prevalent in Punjab and neighboring states that as long as the women are subjugated, they will not demand much. The indoctrination of the women is such that there is an age old saying that a woman enters her husband’s home on a palanquin and leaves it on a bier. The original Punjabi saying is: “Aurat apne aadmi de ghar doli vich aundi hai te arthi te jandi hai.” This intense behavioural trait on the part of the men and the elderly women is the result of socialization patterns that ensure the ascribed roles of men and women in a family setting remain as they are with very little change over time. Thirdly, education has been looked down upon disdainfully by the older set of women in the villages. The women in the age group of 20-30 years who have had some education (usually up to matric level) are considered very independent and too vocal. They are looked down upon by the older women who are either illiterate or less educated (up to Primary school level only) as they feel threatened by the erudite status of these younger women who are well- informed, can use labour saving gadgets like blenders, mixers, washing machines, etc. and have a much more easier life than their older counterparts. This necessarily creates a psycho-social rift in their interactions which becomes gradually apparent in a social setting. Fourthly, there is the factor of income. In most households, the men folk were daily wagers who were also addicted to alcohol. Thus, while on the one hand they provided a meager input to the household expenses, they made a major and severely undermining impact on the dignity and self-esteem of the women. They tend to have a very low opinion of themselves and are riddled with self-doubt and an overall feeling of being helpless, alone, inadequate and virtually incapable of doing anything themselves. On the other hand were the women whose husbands were abroad. They were almost totally confined within the four walls of their homes and worked from dawn to dusk satisfying the needs of the household. They hardly ever ventured out anywhere. Thus, seeing the state of affairs in Chhota Bajwara of Hoshiarpur- I Block of Hoshiarpur district, it was virtually impossible to envision any developmental activity oriented around and about women. The initiative to set up Self Help Groups was taken up with the encouragement of NABARD, an NGO called The REEDS and the bank personnel of the Punjab and Sind Bank in Ram Colony Camp.

Income Generation Activity (IGA) Promotion It took several meetings with the permission of the Sarpanch of Chhota and Bada Bajwara. It must be mentioned that the Sarpanch, a lady, made tremendous efforts to encourage the women to participate in these meetings. The only topic that drew the attention of the women was that they could indulge in income generation activities for earning enough to supplement their household incomes. This idea attracted them although they had doubts about the sale of products that they made. It was only after several discussions that the women first agreed upon the income generation activity (IGA) they would indulge in. There were several suggestions. Some of these were: • • • • •

Making crochet products. Making pickles, sherbets, sauces. Stitching frocks for children. Stitching ladies garments. Doing appliqué work on bed-spreads.

After much thinking, the women decided that making pickles and other preserves was the best IGA for them. Then, came up the issue of standardization of recipes. For this, the Krishi Vikas Kendra (KVK) at Bhongal, nearby village was selected for training. Three of the women who were considered adept at making various varieties of pickles volunteered to undergo training at the KVK. The NGO doing the hand- holding with the women who had not formally become a group as yet was instrumental in taking care of their expenses while taking these classes. This facilitation included the course fee, cost of the ingredients and condiments for experimentation as well as the transportation to and from the village. Once the initial trainings had been done, the women began coming forward and saying that they would like to form a group.

Chapter 32: Push Factors in the Management Dynamics among SHG’s of Punjab207

Nexus and Networking Even while forming the group, there were observed undercurrents of suspicion and doubt. These were exhibited by the families of the women. This was mostly in homes where the women had been married for only 2 to 3 years. They were relatively new to the household and the village. This was why the elders in their homes did not approve of these women joining any ladies group or going out regularly. The AGM, NABARD, the NGO representatives and many of the village women went to these homes, conducted demos of pickle making, jam making and sauce making. They convinced the householders that most of the activities of the group would be conducted within the group member’s households. There would be no outside interference. Thus, after much convincing, these women were allowed to join the groups. Interestingly enough, it was observed that during the demos, there were quite a few households that showed avid interest in paying for the products being made. This encouraged the group members who said that “if our products are so good, we can definitely get orders.” This proved prophetic because their products were observed to be: • • • • •

Made from pure products. All spices and condiments are cleaned thoroughly. The standard measures are followed with accurate weighing machines (which the NGO had donated to the groups) All utensils used were thoroughly cleaned, aired and sunned to get rid of pungent odours. Total hygiene was exercised all through the processes of peeling, cleansing, dicing, cutting, chopping of the fruits and vegetables being processed.

These practices endeared the women and their products to a wide range of people who gradually became regular customers. At this point, we made the first group called ‘Ekta’ and gradually within two months, we were three groups having 33 women who took orders and made pickles. The following Table shows the quantities of preserves made and sold by the SHG’s over three years from 2010 to 2012. Table 3: Sale of various products over three years 2010-2012 Sr. No.

Products Range

2010

2011

2012

A

PICKLES

1

Garlic Pickle

1 Kg

15 Kg

35 Kg

2

Mango Pickle

4.5 Kg

12 Kg

25 Kg

3

Dheau Pickle

1 Kg

3 Kg

6 Kg

4

Sweet Lemon Pickle

½ Kg

2 Kg

8 Kg

5

Carrot, Turnip, Cauliflower Pickle

5 Kg

13 Kg

25 Kg

6

Red Chilly Pickle

½ Kg

2 Kg

5 Kg

7

Green Chilly Pickle

1 Kg

3 Kg

7 Kg

B

SAUCES AND CHUTNEYS

1

Tomato Sauce

2 Kg

7 Kg

18 Kg

2

Tamarind Sauce

1 Kg

3 Kg

4 Kg

3

Mango Chutney

3 Kg

7 Kg

12 Kg

4

Apple Sauce

1 Kg

2 Kg

3 Kg

C

JAMS AND MURABBAS

1

Apple Jam

2 Kg

3 Kg

5 Kg

2

Mango Jam

4 Kg

5.50 Kg

8 Kg

3

Amla Murabba

15 Kg

22 Kg

27 Kg

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Thus, the Table 3 shows the gradual rise in sale of their various products over the three year period of 2010-2012. The projections of their productions show the specialties of the SHG’s because the sales are a reflection of their product popularity. Among all the products, the most popular was their Garlic pickle, Mango pickle, Mango jams and Amla Murabba, besides tomato sauce and mixed pickle. Most of these products are seasonal therefore their mixed carrot, turnip and cauliflower sweet sour pickle is a major attraction for most Punjabi households during winter. In fact, the winter has the women sitting on the string beds in the pleasant sunshine as they collectively peeled, cleaned, chopped and went about the various processes of their work success of the enterprise. Over the years, the group members realized that their success lay in the astute book and record keeping which was being done by the three office bearers of the ‘Pradhan’ or President, ‘Sachiv’ or Secretary and ‘Khajanchi’ or Treasurer. Also they were maintaining excellent books of accounts, where everything was meticulously jotted down. The costing of the pickles was worked out and the final pricing of the products arrived at. The unanimous consent of all other group members was mandatory. The books and record registers maintained by them were: 1. ‘Hazri’ or Attendance Register. 2. Meeting and Monthly Contribution Register. 3. Training activities and resource persons coming for the trainings, Register. 4. Purchase Register. 5. Sales Register. 6. Address and Record of Sale Register. (This register could be considered a duplicate of Sales Register. However, this register was unique because it carries all the contact details of the clientele including the references who introduced them. Phone numbers of all were mandatory.)

Rifts and the Final Divide Distrust and suspicion are at the root of most conflict. The large homogenous group of 33 women saw its heyday up to 2012. Then gradually problems began to arise. Some of these were:1. Differences of opinion on reducing costs of products. This divided the groups into two factions. There were those who refused to use anything but glass containers to store and sell their products. Obviously glass being fragile, there were incidences of breakage and damage to the products. While the customers supported this faction, there was much debate among the members because glass containers definitely worked out to be much more expensive. 2. Then there was the issue of subsiding the rate to SHG members. Thus, if Mango pickle was being sold at Rs. 100/- per Kg to the SHG members, it was given at the cost price which virtually was about Rs. 80/-. The debate by the handful of workers including the office bearers was that “when profits were already being divided within the group members, then where was the need to subsidize the product to them.” This would be eating into their resources. A larger part of the membership was adamant that where was the need for members to pay at all when they were also contributing regularly. The arguments were unending, resulting in the group’s cohesion suffering a major setback. 3. The undercurrents of doubt that had been already present in the minds of some of the households further fanned the fires. The infighting and bickering in the group led to tardiness, non-deposit of micro savings regularly and even mudslinging on the three office – bearers who had been earlier amazed at the status and respect given to them. Gradually, what had emerged as a promising rural women’s Self Help Group effort, was reduced to a constantly at-loggerheads bunch of women. 4. When all efforts at arbitration had failed, the group came to the bitter decision to totally dissolve and nullify the SHG’s. This was done by cancelling the bank accounts. Arriving at a formula for redistribution of the funds was one of the most difficult tasks. Finally, the three office-bearers duly gave to each of the women members her savings and part of the profits and end the three groups of 33 women. There were, no doubt, recriminations and ire hounding the women for a long time but those who had perpetuated the doubts and suspicions felt justified in what they had done.

Chapter 32: Push Factors in the Management Dynamics among SHG’s of Punjab209

Rising from the Ashes The SHG’s were finished but what about the micro enterprise? The erstwhile goodwill, trust and loyalty of the customers remained and they continued to demand the products. At first, the women kept up their opinion that all was finished and nothing more was to be done.

Loyalty of Clientele The office-bearers reported that they continued to receive calls from loyal clientele who refused to buy pickles and sauces from elsewhere. These office-bearers spoke to the buyers and explained the situation that they no longer functioned as SHGs. On seeing the raised demand for their products the women reconsidered the setting up and continuation of their micro-enterprise of pickles and other preserves. Few of the women got together and discussed the probability of continuing their work. There were only 7 seven women who were desirous of working on the microenterprise. They discussed the potential and then spoke to some of their clients. When they were convinced they could carry it through they requested the AGM, NABRAD to guide them and the NGO functionaries to facilitate them in becoming an Activity Based Group (ABG). The women received a loan of Rs. 50,000/- from the bank to restart and reestablish their micro-enterprise. They were, however, particularly, motivated: • Drawing up of a partnership document on the agreement that all 7 partners were jointly liable for all activities financially and otherwise of the pickle making business. • There was also a security clause wherein there was a sworn promise that all recipes and processes utilized by the group would be owned solely by the group and no other individual or organization would be party to it. These would not be sold, traded or outsourced in any way. • Sales of the products would be managed on priority basis with the members of the initial clientele getting preference over others no matter how big the order or how lucrative. • Quality will be maintained at all costs. It would never be comprised no matter how big or lucrative the offered order is. In this way the pickle making micro-enterprises was rejuvenated.

Conclusions - Future Prospects The above case study shows the dynamics of undercurrents within a group of rural women collectively working on a common enterprise. The success and failure matrix of the group’s management shows that:

(i) Most of the members could not be motivated enough to present their case to their families for allowing them to actively participate in the SHG activities on a sustained basis. (“We felt that we would incur the wrath of our families unnecessarily. If they forsake us the group will not take of us. There is much social stigma attached to women who have been thrown out of their marital homes. They are neither here nor there. Our natal families will also be unhappy but will not be able to take us back. They are afraid that they will lose face in society and the entire ‘beradari’ or clan. We could not take such a big risk and therefore decided to break away from the Self Help Group. It was indeed a very big decision for us”). (ii) The total membership of the three groups totaled to 33 women. This was an unwieldy number to hold on to. Differences of opinion were highly likely to arise and they did. Many of the women were young and easily manipulated by others. Thus, groupism within the group was becoming apparent. Splinter factions were formed and many minor conflicts began to arise on a day to day basis which threatened to blazon into full-fledged imbroglios that challenged the integrity and solidarity of the groups. Lack of leadership and poor maturity in management resulted in the splinter groups making a heyday (“We could hardly have a voice as the older women shut us down by saying we were two young and should not speak out of place. If we voiced an opinion it would be held against us as the report would go back to our in-laws. In our families younger’s women are only meant to be seen and not heard. We have to live in the village and cannot afford to antagonize the elders”).

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(iii) Dissolving all SHGs probably was not the best option. The dissident members could have been asked to step down and newer members inculcated. In fact, there were several women who had shown keen interest in joining the groups. This step of total dissolution of the SHGs sent the wrong message among the rural folk. As it is there is the general opinion that women are incapable of doing anything on their own. Now it is confirmed. Nobody will remember the good work we did when we were together. Everybody is ready to criticize. They say women can never be good in business- and this despite the fact that we have been bringing home lots of money in terms of profits. It may not be a regular steady income but it is substantial income nevertheless.” (iv) Consultations should have been taken with the NGO facilitators and NABARD officials. They could have helped with finding a more fruitful solution rather than closing the SHGs entirely. (“We had no choice. The bickering was too much. One day the in-fighting rose to such heights that it was unbearable for us to enter our homes without comments being made on our membership. In hindsight it does appear to have been a hasty step”). (v) Many of the group members were willing to rejoin the older group but they have been told to make their own groups anew. (“We will try and make our group once again. We have learnt our lessons and will make sure not to repeat the same mistakes. We had a lot of learning to do. It was our first experience. We are talking amongst ourselves and will form a strong group in a few days”.) (vi) The Activity Based Group (ABG) that was finally formed to continue making the micro-enterprise a success was determined to make it successful. They had the resources and were good book keepers. They were also well-trained. (“We are hardworking and know most of the recipes by heart. Our sales are going well. In due course we will look for branding, bar coding and proper wholesale and retail packaging. Our Quality is very good but we have still much to learn about domestic and international standards for packaging. We hope to expand but we will be going at a very slow pace. Firstly, we want to be sure of our work and secondly we have been burnt once we cannot afford to close down again. We have paid back our loan and are eligible to apply for another one. Thirdly, we have all promised to grow together. This will be a slow process and we understand that”).

Thus, the lessons learnt from the first micro-enterprise venture have taught the rural women about the threats to guard against and then the opportunities to be taken. Even the families have seen the successful model that was visible in front of them. The steady inflow of business and outflow of products was gradually increasing. Many of the women SHG members were determined to establish their SHGs and then come up with micro-enterprises based on their inherent skills. The management skills required for running the micro-enterprise need to be inculcated among the SHG members. There is tremendous scope for MBA students to take up SHGs management skills. This could be made an essential part of their course curriculum. In this manner both purposes would be served. Firstly, the semi-literate, rural women formed into SHGs would be able to learn the management skills while secondly, the students of management studies could obtain practiced hands-on training on live projects like SHGs – thus creating a totally win-win situation for both entities.

Reference 1. Number of SHGs Promoted (New and Revived) under National Rural Livelihood Mission (NRLM) in Punjab (2016-2017-upto June 2016). 2. Promotion of Self Help Groups (Target/Progress) under National Rural Livelihood Mission (NRLM) in Punjab (As on March, 2013, 2013-2014 and 2014-2015-upto June, 2014). 3. Number of Self Help Groups (To Whom Income Generating Activities Provided) in Punjab (2012-2013-Upto August, 2012). 4. Cheema, A., Khalid, L., & Patnam, M. (2008). The geography of poverty: Evidence from the Punjab [Special Edition]. Lahore Journal of Economics, (September), 163-188. 5. Khan Usman, Dan Aylward, Diagnostic and Research study on policy reforms for Punjab’s priority business sectors, report, Business Environment Reform Facility, The World Bank.

Chapter 32: Push Factors in the Management Dynamics among SHG’s of Punjab211 6. Achala Srivastava (2009),”Empowerment of Women –Need, Constraint and Government Efforts”, Micro-Finance and Women Empowerment, Rais Ahmed (ed), Mittal Publications, New Delhi, India, pp. 305-322. 7. Dipanjan Chakraborty and Ratan Borman (2012), “The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam”, The IUP Journal of Entrepreneurship Development, Vol. IX, No. 3, September, pp. 7-21. 8. Jaya Kritika Ojha and Binod Mishra (2013), “Building Capacities of Rural Women Artisans: Case Studies of Women Empowerment from Thar Desert of Western Rajasthan”, Journal of Rural Development, Vol. 32, No. 3, July-Sept., pp. 291-300. 9. Jayashree Roy and Joyati Bhattacharya (2013), “Micro-Enterprise and Women Empowerment- A Study of Badarpur Development Block of Karimganj District (Assam, India), International Journal of Scientific and Research Publications, Vol. 3, No. 12, December, pp. 1-4. 10. Kabeer N (2005), “Is Micro Finance a Magic Bullet for Women’s Empowerment? Analysis of Findings from South Asia”, Economic and Political Weekly, Vol. 55, Nos. 44 & 45, July, pp. 6116-28.0. 11. Kanwaldeep Kaur and Anupama (2013), “Women, Work and Employment Outcomes in Punjab”, International Journal of Management and Development Studies”, Vol. 1, No. 1, April, pp. 95-107. 12. Pradeep Kumar Singh and Poonam Sharma (2011), “Rural Women Empowerment through Entrepreneurship Development”, International Journal of Asian Social Science, Vol. 1, No. 2, pp. 24-26. 13. Sahab Singh et al (2013), “A Case Study on Empowerment of Rural Women through Micro Entrepreneurship Development”, IOSR Journal of Business and Management (IOSR-JBM), Vol. 9, No. 6, March-April, pp. 123-126. 14. Sudan K (2003), “Empowering Rural Women through Micro Enterprises Development”, Social Change and Development, Vol. 3. No. 6, July, pp. 54-74.

Chapter 33 Conditional Cash Transfer Schemes in the Indian Context: Key Takeaways from Brazil and Mexico Shagun Tripathi*, Priyanka Panday** and Dr. Gagandeep Kaur*** Conditional Cash Transfers (CTs) have attracted global policy makers due to increasing evidence suggesting that they foster pro-poor growth by providing poor households an opportunity to overcome poverty and break free of intergenerational poverty transmission trap. However, India has been witness to an escalating debate on social assistance through cash transfers and their desirability and feasibility in poverty alleviation. Although India reports the largest count of individuals sustaining life below the standards set by the international poverty line (one out of every three poor people in the world live in India), yet the country has not moved to cash transfer schemes substantially and witnesses increasing arguments on the model and feasibility of such an implementation within the country. This paper considers the disparate opinions, political, financial and functional challenges that hinder the implementation of conditional cash transfers in the Indian context. It uses a three-pronged approach to arrive at a conclusive verdict on introducing cash transfer programs in India a) It utilizes secondary data to evaluate the impact of cash transfers on poverty alleviation while systematically analysing CCTs in Brazil and Mexico b) It assesses the results obtained from pilot studies in India and challenges and opportunities that the Indian environment offers c) finally, it examines Brazil and Mexico’s successful programs to draw on the lessons learnt to offer recommendations based on systematic examination of good practices and potential constraining factors that emerge in the Indian context. The paper then concludes its findings with suggestions on key policy dimensions to be kept in mind while designing and launching a CCT for India.

Introduction India’s position in driving global poverty reduction is unique. As per a World Bank report, the country is home to the largest number of people living below the international poverty line (30% of the Indian population lives under $1.90-aday). Data also suggests that India is home to nearly 26% of the global extreme poor. This underscores the fact that the world’s ability to end poverty by 2030, which has been the key goal of The World Bank and is now highlighted by the United Nations as the first Sustainable Development Goal, depends largely on India’s ability to promote growth among its poorest and attain shared prosperity. This calls for major focus and strong policy measures to beat poverty that are effective in the context of the country and are suitable for its unique political, legal, and socio-cultural environment. Of the several innovative policies that have emerged in recent times, cash transfer schemes have grown in popularity. Social cash transfers are periodic, fixed, non-contributory allocations of money by government or non-government organizations to poverty-stricken, impoverished households with the goal of reducing or completely eliminating chronic or shock-induced poverty; meet the challenge of social risk and decreasing economic vulnerability (Samson, 2009). These transfers are of two types, conditional (beneficiaries must fulfil responsibilities towards human development responsibilities such as health of women and children, nutrition, education of children etc.) or unconditional transfers. The transfers may be targeted universally or at any specific section of the population meeting pre-determined criteria in terms of income or living standards. Some developing countries are known to enshrine the right to social protection *Assistant Professor, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] **Research Scholar, University School of Business, Chandigarh University, Punjab. E-mail: [email protected] ***Assistant professor. University School of Business, Chandigarh University, Punjab.

Chapter 33: Conditional Cash Transfer Schemes in the Indian Context213 constitutionally (e.g., Brazil and South Africa consider cash transfer schemes are rightful social claims that have significantly contributed to decreasing poverty). These schemes eliminate poverty by three distinct approaches. First, they support demand and consumption thus countering persistent poverty. Second, they diminish the worst-case outcomes of extremely risky poverty alleviation schemes. Third, their developmental impact helps households break free of the poverty trap by promoting physical well-being and literacy so that inter-generational transmission of poverty is avoided. However, these benefits of cash transfers do not come without controversies; most of which are not limited to India only. Although decades of experience in developing countries and impact assessments demonstrate the effectiveness of these schemes clearly, concerns are frequently raised that social schemes such as cash transfers shall lead to “dependency”. However, this term is not defined adequately. “Dependency from the state is not necessarily worse than being dependent on a husband, a rich relative or on begging the neighbours.” However, those who favour cash transfers argue that a rights-based entitlement replaces dependency with a reliable guarantee. Other fears include that the money may not be used for the intended purpose and may be squandered. Moreover, critics also question the utility of cash without essential capabilities and skills in the absence of backward and forward linkages. Such proponents argue that development should be concentrated on empowerment of the poor and fostering synergistic conditions that allow them to convert their ambitions for material and social well-being into tangible results. Mihir Shah, an economist and former member of the Planning Commission, India from 2009 to 2014 proposes that one of the most important aspects of these conditions is to ensure that these individuals possess relevant skills to be able to adapt and flourish in an evolving economy. Such an endeavour is distinctly different from merely transferring cash (Shah, 2015). To gain a closer perspective on the debate, consider the from Kapur, et al, (2008, p.38) who make a case for cash transfers: “According to the Economic Survey 2007-08, about 27.5 percent of India’s roughly 1.13 billion people are below the poverty line (BPL), i.e., about 310 million people or 70 million households. If the Rs.1,80,000 Crore spent on centrally sponsored schemes and food, fertilizer and fuel subsidies were distributed equally to all these 70 million households, it would mean a monthly transfer of over Rs. 2,140 per household3. This is more than the poverty line income for rural households and more than 70 percent of the urban poverty line income. Indeed, if the government simply gave eligible households the amount of money it spends on the Public Distribution System, this alone would entail a monthly transfer of more than Rs.500 to each household, i.e., about 40 percent of the entire food budget for a household at the poverty line. Alternately, if the amount was to be made available to Gram Panchayats, the estimated amount available per Gram Panchayat would be about Rs.1,00,000 Crore per annum.”

Statement of Problem Despite the rampant poverty in the country, India has not started cash transfer schemes, neither entirely nor substantially. The current discussion raises several important questions: Have the benefits of cash transfers in eradicating poverty been established? What factors affect the success of such schemes? How do we explain the success of such schemes in Latin America, notably Brazil and Mexico? Are cash transfers a feasible solution to the poverty trap in India? What factors should be accounted for in designing cash transfers schemes in India? What major leanings and best practices can be garnered from the experiences of Brazil and Mexico when approaching policy in India? Thus, the question that this study attempts to answer can broadly be framed as “How should cash transfer schemes be implemented in India to be instrumental in poverty eradication?” This is a composite of two major questions – firstly, are social cash transfers proven tools of poverty eradication? And second, how can they best be adapted to suit the Indian environment?

Limitations of Study A limited number of pilot projects have experimented with cash transfers schemes in India as the public debate on the topic has been highly politically charged. This restricts the possibility of an exhaustive evaluation of the potential of cash transfers in India. Also, the lack of clear definitions and mixed nature of schemes makes it challenging to evaluate any schemes as ‘cash transfer’ or not. For example, the MNREGA scheme, it associated leakages and evolution with changing governments saw critics tout it as the largest direct cash transfer mechanism as opposed to being the largest employment guarantee scheme as it should be. However, a 2009 ILO report performing comparative analysis of cash transfers schemes across nations counts the NREGA scheme under ‘cash transfer’, thus generating ambiguities. The ‘Janani Suraksha Yojana’ is till date the only conditional cash transfer scheme that India offers. These play as limiting factors to the study.

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Literature Review Over the last few years, social policy has seen much innovation beyond subsidies and non-monetary provisions. Latin America contributed to the landscape with the very popular CCT schemes which allocate cash directly to poor households in return of them fulfilling conditions such as regular check-ups at health clinics, attendance of children in schools, participation in immunization and the like. They aim at incentivizing homes to adapt their behaviour to nationally important goals. These programs have been implemented nationally and regionally in different time horizons and moved from less-accepted of development policy to conventional policy in several global regions. The following environment changes have contributed to this expansion: • Twin challenges of tackling both persistent poverty: research into various dimensions of poverty shows that poor households face a large number of risks (natural disaster, illness, unemployment, crop failure) which make it challenging to upgrade their standard of living, also since they do not have access to insurance facilities. • The global shortage of food, fuel and finance together with climatic changes has led to identification of the potential macro-economic stabilizing effect of social protection instruments. An increasing number of national and international leaders acknowledge high interdependence affects the form and risk of poverty and recognise the importance of social cash transfers. Similarly, it is accepted that climate change has great bearing in terms of stress o poor households due to impact on agricultural produce (for e.g. rainfall and irrigation in the Indian context where monsoon showers are the primary source of irrigation) and lack of hedges against weather related stocks such as floods and draughts. • Increased scale of cash transfers in middle income countries: a revolution driven primarily by willingness of developing country governments who are willing to trust the poor with cash and seek to empower them to be able to make effective use of the money. Table 1: Cash Transfer Schemes: Prominent Examples China

Minimum Living Standards Scheme

Brazil

Bolsa Familia

Mexico

Oportunidades/Progresa

Chile

Chile Solidario

India

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

• Declaration of zero poverty as sustainable development goal number 1 by the United Nations and increased impetus by World Bank towards alleviating poverty, financial inclusion and assistance provides a great impetus to cash transfers and their adaptation.

Figure 1: Categories of poverty against the poverty line Source: Jalan and Ravallion (2000)

Chapter 33: Conditional Cash Transfer Schemes in the Indian Context215 Countries located in the global south have shared their experiences with CCTs and have shown robust evidence of their effectiveness. Although they provide a completely new tool of social equity, CCTs are not the silver bullet for poverty alleviation completely. They are provisional short term redistribution of income. The main priorities for most developing countries are still related to issues of basic infrastructure, education, access to clean drinking water, and quality health (Stampini and Tornarolli, 2012). Extensive studies of poverty have shown (Figure 1) have identified the categories under which poverty can be classified. It is observed that CCTs help households transition progressively towards improved states of material and physical well-being.

Evolution of CCTs in Latin America The similarity in features such as poverty and inequality in Latin American Countries together with their collaboration is the cause behind the widespread popularity and success of CCTS in the region. The first set of CCTs in Latin America began in the mid-1990s, with Progresa (Mexico) and Bolsa Escola (Brazil) (Paes-Sousa et al., 2013). In these countries, a focus was built right from the start on close data collection and evaluation of the schemes. These CCT programs have been running for the longest time and most continuously while being thoroughly analysed empirically and through control trials. They have contributed to the great body of evidence on the success of these programs. A 2009 Policy Report by World Bank (Norbert Schady and Ariel Fiszbein) states that “what really makes Mexico’s program iconic are the successive waves of data collected to evaluate its impact, the placement of those data in the public domain, and the resulting hundreds of papers and thousands of references that such dissemination has generated.” These schemes were initially targeted mainly at women and children but have now expanded to include the elderly, displaced people, etc. and also, newer conditions have been added such as health check-ups, prenatal and post-natal care, vaccinations etc. Today, roughly one fourth of Latin America’s population is covered by these programs, leading to increased social mobility, redistribution of income and short term benefits such as increased school attendance, maternal and child health etc. Challenges remain in quantifying the effect of CCTs in inter-generational poverty transmission, but the generally positive impacts continue to be examined through robust impact evaluations, household surveys and data monitoring techniques. However, the debates surrounding cash transfers have not died down and are renewed in India as policy makers weigh the pros and cons of treading the social cash transfer scheme route. The debate hinges on the following points:

Development vs Dependency This has been a frequently raised concern, with emotional connotations of ‘dependency. However, to evaluate the significance of this concern, it is important to define dependency in a social cash transfer context – which is the choice of a cash transfer benefit recipient to forego a better sustainable way of earning. However, a study of the African countries tracking social grant recipients over time showed that revealed that workers in such households worked more extensively and found employment at better rates than workers from families without grants. Some studies also suggest with evidence that since these schemes reduce social risk and relax financial constraints on households they encourage job-seeking and migration for better prospects. (Posel, 2006; Keswell et al., 2005).

Affordability Although cash transfers can be expensive, their true nature depends largely on static and dynamic condition of the country’s treasury and availability of international assistance and credit. Also, the programs, on account of its economic impact can bear its own long-term financing needs. The base of resources available to a country is strengthened by stronger social protection that expands through various transmission mechanisms. (DFID, 2005; Devereux et al., 2005; Samson et al., 2004). “Putting money in the hands of the poor can yield very high rates of return, partly because they use their assets so intensively and partly because the cost of falling below a critical consumption level is so great, small amounts can yield a high effective return” (Subbarao, 2003). The increased consensus on the potential of these schemes can be seen in that World Bank and IADB (InterAmerican Development Bank) have progressively increased loans available for such strategies (Samson et al., 2006).

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Cash vs. Benefits (In-Kind) An increasing number of evidences suggest the effectiveness of cash or electronic money as superior methods to distribute social benefits (Samson et al., 2006; ODI, 2007). They are relatively inexpensive to transfer than in-kind benefits, the scheme also benefits immensely from innovations and technology led workflows that assist smooth transfers. Another argument in favour of cash vs. kind is that poor households are better aware of their needs and cash transfers help to obtain such information, besides proving flexibility and decision making ability to households to determine the priority of their needs, In-kind act as good substitutes when the required items of purchase are not available e.g. food when there is less or no availability of food in the market. Cash benefits act as multiplier effects, boosting economy. They are long term instruments of developmental protection.

Targeting The goal of targeting is to reach the reach the poorest and the most vulnerable to effectively allocate scarce social transfer resources. It involves the bureaucratic costs of assessing the applicants for receiving benefits, private costs that applicants bear in travelling to the venue of application, queuing and sometimes the bribes paid. Targeting has a significant set of challenges – sometimes, some applicants may change their behaviour to receive benefits. Targeting residents of specific areas may lead to increase in-migration. It also has some social costs- such as deterioration of unity within the community, erosion of informal support networks and stigma. “Self-targeting mechanisms that rely on social stigma, thereby reinforcing the social marginalisation of transfer recipients, are incompatible with current definitions of development that emphasise social objectives (e.g. empowerment and dignity) as well as economic objectives.” (Devereux, 2002). Political cots include elimination of beneficiaries from the middle class who could potentially help sustain social transfers. Targeting should be discreet; if there is a greater marginalization of the poor it can potentially reduce the transfer of benefits to them. It has been identified by Sen that: “The beneficiaries of thoroughly targeted poverty-alleviation programmes are often quite weak politically and may lack the clout to sustain the programmes and maintain the quality of services offered. Benefits meant exclusively for the poor often end up being poor benefits” (Sen, 1995). Targeting may sometimes become a point to gain political scores and vote banks by demonstrating effectiveness of schemes. It is therefore an important for Indian policy makers that targeting shall be the backbone of the CCTs in India which must encompass a large number of factors in its consideration before proposing a final solution. Given the diversity of the Indian populace, an adequate targeting method that does not rely on popularity for vote banks and does not discriminate on grounds other than need has to be devised to truly achieve success in the Indian context. The choice of a targeting method may be one of the following: Table 2: Choice of targeting methods for social cash transfers Assessments of Individual or Household

verification of household/individual’s income, assets

Categorical Approaches

Assessment based on geographic/demographic traits that are highly co-related with poverty

Community based mechanism

Community representatives are identified who can effectively assess poverty locally. However, there is the possibility that local elites skew results in their favour.

Research Methodology This paper uses internet and digital research methodology combined with observation to systematically analyse CCTs in Brazil and Mexico and combines these findings with results of pilot projects of CCTs in India. It evaluates reports, working papers, research papers, government websites and those of stakeholders involved in CCT programs to arrive at conclusions. Newspaper reports, web log posts, expert opinion and quantitative evidence from the internet are used to evaluate and understand the best practices and challenges to CCTs in the Indian context. This paper draws on secondary data sources (working papers, published research, expert opinion from newspaper articles and web log posts, government websites, World Bank Data, ILO estimates and UNDP reports)

Chapter 33: Conditional Cash Transfer Schemes in the Indian Context217

Research Question This paper seeks to evaluate CCTs in the Indian context. It studies how the role of cash transfers in eradicating poverty been established and what factors affect the success of such schemes, especially in Brazil and Mexico. It then evaluates the feasibility of CCTs as a solution to the poverty trap in India and the factors should be accounted for in designing CCTs in India, drawing lessons from Brazil and Mexico.

Subjects of Case Study Three countries shall be studied extensively in this discussion: Brazil, Mexico and India. A bird’s eye view of these economies is as follows: Table 3: Population, GDP, Poverty Country

GDP (Current US$)

Population (thousand)

Poverty Headcount Ratio (percentage of population below $1.90 per day)

Brazil

1,774,724.82

207,847.53

3.7%, 2014

Mexico

1,143,793.18

127,017.22

3%, 2014

India

2,095,398.35

1,311,050.53

21.2%, 2011

Source: World Bank Data, http://povertydata.worldbank.org/; viewed March 3, 2017

It is also important to identify the major schemes being run by all three countries along the lines of conditional cash transfer. Following are the highlighted programs: Table 4: Country-wise cash transfer schemes Country

Schemes

Year of launch

Brazil

Bolsa Familia

2003

Mexico

Progresa

1997

Oportunidades

2002

Indira Gandhi Widow’s Pension Yojana

2009

Indira Gandhi Matritwa Sahyog Yojana

2010

Janani Suraksha Yojana

2005

Mahatma Gandhi National Rural Employment Guarantee Scheme

2006

India

Source: https://www.samparkmp.org, accessed June 2, 2018

Case Study: Mexico Mexico launched its first conditional cash transfer in 1997, under the name of Progresa. The program was renamed in 2002 to Oportunidades. In 1997, the idea was simple: to provide mothers with financial aid to incentivize education and regular school attendance for children. Today, it is being re-branded as ‘Prospera’. It is the chief anti-poverty scheme run by the Mexican Government, benefitting 5.8 million families, i.e. approximately one fourth of Mexico’s population. The program aims at aiding poverty-stricken families in both urban and rural areas in nutrition and education for children so that human capital can be developed more effectively. The key idea behind Oportunidades was the recognition that since poor households lack the resources to invest in human capital, they remain trapped in inter-generational poverty trap. It was based on the finding that although the poor recognized the value earned and importance of children attending school, they lacked resources to be able to do so. The incomes earned by these families were meagre and required for household consumption; therefore they took children

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out of school at early ages and sent them to work in order to add to their family’s monetary resources. To discourage this and send children to schools, Oportunidades gave these parents a compensation for this income in cash benefits that would lead to improved nutrition and food security as additional benefits. Today the program allocates cash transfers to all participating families for every child (age less than 22 years), registered in school between third grade of primary school and third grade of high school. The count of beneficiary families is more than 4 million today. The scheme is favoured by the government and currently represents 46.5% of anti-poverty budget of Mexico. Key features of Oportunidades can be summarized as: • Family-compliance with the program is essential to the receipt of aid. This creates co-responsibility • Mothers are the recipients of the monetary benefit, identified as “right holders” as they are primary care-givers in a family • The transfers are made directly to the families in order to avoid corruption and overheads associated with transfers • Targeting mechanisms and selection of beneficiaries are done rigorously and after taking into consideration an array of socio-economic factors. • A thorough statistical control and monitoring system is used to track beneficiaries and the effectiveness of the program.

Information, Politics, Transparency and Effectiveness One of the principal pre-requisites for success of the program was dissemination of information on a broad scale to the families. For this, three major steps were taken: mass awareness through the use of internet, detailed information to government officials and public servants on budget and implementation and surprisingly, low-key public campaigns at the onset to avoid very high expectations. This turned out to be a wise choice which allowed for an initial phase of study and understanding by experimentation and adjustments. As the scheme progressed and found success, its public profile was raised significantly through extensive advertising on radio and television besides the internet. Another major feature of the program was that the program was kept away from party politics and not used as a means of political scores. In 2000 and 2003, restrictions were placed on program officials from signing up additional families as beneficiaries for a ime period of 6 months around the national elections to prevent the use of the scheme as a vote-bank tool. This allowed Oportunidades to survive the transfers of power and establish its credibility and long term sustainability. Its independent image allowed successors to continue it considering positive impact assessments by both, the program’s evaluators and international agencies who esteemed Oportunidades highly and supported its long continuation.

Evaluation Rigorous evaluation was Progresa’s chief focus right from the start. Due to its massive scale, it was necessary for the program to be rolled out stage-wise, with some key areas availing benefits in the initial phases and then extending them to all parts of the country. This approach, together with low-key launch with less public attention allowed the program to be implemented with slow, experimental understanding to ensure the best possible methods of implementation. It also allowed for quick comparison between regions receiving benefits and remaining regions and progressive evaluation of changes that were caused by the scheme. Additionally, data was gathered from households both previous to and after the receipt of benefits. Two years after the program was implemented, the IFPR (“International Food Policy Research Institute”) was the first body to evaluate the program and brought Randomized Controlled Trial (RCT) as a research design method to the forefront of policy evaluation techniques being used in the world. The IFPRI-Progresa team focused on determining whether or not the program was functioning in practice the way it did in design. IFPRI’s evaluations came out in the form of reports by the year 2000 reporting positive impacts on three core impact areas: health, education, nutrition. The evaluation of Progresa in its initial years revealed several areas for improvement. Several of these were considered and acknowledged in Oportunidades. For example, besides improving school enrolment, Progresa also focused on improving school performance which was left out by the earlier program. It was also observed that Progresa

Chapter 33: Conditional Cash Transfer Schemes in the Indian Context219 had much better impact on enrollments in secondary school as compared to primary school. Thus the program shifted emphasis to secondary school attendance (Levy 2006).

Key Stakeholders Following key stakeholders were identified for the program • Poor rural families: they have been the primary beneficiaries of the program and assessments of their perceptions show a positive inclination towards the scheme. (Levy 2006) • Urban Families: The earlier Progresa program did not provide benefits to urban families, irrespective of their income. However, the later Oportunidades program included them. • Teachers, Administrators: Teachers acted as sources of information on the increased attendance in schools. However it was identified that since students attending classes for the first time were lagging behind their peers, it was necessary to provide them extra attention and time thus creating a burden for teachers (Behrman et al. 2000; Escobar and González de la Rocha, 2000). • Health Care Professionals: They experienced increased caseloads and were assigned the responsibility of maintaining records of program participation. • Staff from previous poverty alleviation program: The introduction of the CCT as a replacement of earlier programs caused friction with other programs as different policy makers tried to arrive at their own suggestions and unique programs. The success of Oportunidades has put this friction to rest.

Key Policy Considerations • Targeting: The program was aimed at the poorest households from the very beginning and successfully identified those most in need. Political considerations went into targeting such as choosing constituencies, and avoiding local disputes between beneficiaries and non-beneficiaries. • Condition of Transfer: Ensuring compliance with program conditions incurs separate costs which were considered. Conditions have to be carefully designed because as observed in the case of Progresa, children were encouraged to attend school till beginning of high school but then attendance fell. Meanwhile, it also necessary to evaluate and understand the opportunity costs of alternate employments for these children. • Sustaining the program: Political neutrality and strong leadership in favour are key to sustenance of CCTs so that benefits are realized over the long term. It has been suggested to make the scheme an ‘entitlement’ by law. • Consistency of the program: Policy planners for the program are faced with the continuous of challenge of maintaining a neutral stance with governments and shifts in power so that residents can improve their lives in the long term.

Case Study: Brazil Brazil’s CCT called Bolsa Familia is presently the largest conditional cash transfer scheme in the world. It benefits 13.8 million households, or nearly 26 per cent of the Brazil’s population. In January 2003, President Lula, in his inaugural speech, promised to fight hunger and poverty. This resulted in several interventions and programs, including Brazil’s “Fome Zero” strategy and Bolsa Familia. The program has frequently been cited as the one major factor that led to decline in poverty in Brazil which fell 27.7% in President Lula’s first term. BFP was initially met with the usual scepticism that surrounded social expenditure besides the deep-seated resistance towards cash hand outs. This was amplified by the fact that Brazil was already a big spender in social sectors and had met with considerable disappointment in the lack of results. Years later, the program has assisted Brazil in more than halving its poverty. BFP is also unique as compared to other CCTs that income inequality was also observed to have fallen by an impressive 15 per cent corresponding to a Gini coefficient of 0.52. The BFP evolved from a long history of CCTs in Brazil (starting as early as 1995) which was also the first country to pioneer CCTs in Latin America. Mexico, on the other hand, was a pioneer in launching a program that covered the entire nation. These initial schemes that Brazil experimented with had several challenges: a) they lacked a uniform

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enrolment criteria b) their databases were not adequate. In early 2004, four disparate programs in Brazil were merged into the Bolsa Familia and largely expanded. Like the Oportunidades program, this CCT was also targeted at human capital development by providing cash transfers in return for adequate education and healthcare of children. Today, Bolsa’s budget is completely financed general government revenues through social security budget. Initially, the program was funded in part by a ‘financial transaction tax’, however it was rejected later and the government took to other means to finance the program. The BFP has well-regulated operations in all 5,564 Brazilian Municipalities. The average value of benefit allocated to household is US$68 (153 Brazilian Real) and has the following four parts: • R$70 as ‘basic benefit’ (per capita income is less than R$70 monthly for the given household) • R$32 as ‘variable benefit’ (per capita income is less than R$140 monthly for the given household, family has breastfeeding or pregnant women and children less than 15 years old, total number of children and women is 5 or less) • R$38 as ‘variable benefit for families with teenagers’ (household may have two or less number of teenagers aged 16-17 years) • Threshold of R$70 per person per month as ‘extreme poverty eradication component’ (paid to families struggling for sustenance below the poverty threshold) Like Oportunidades, this benefit is provided to a female head in the home though ‘Citizen Cards’ similar to a debit card issued by a government-owned savings bank called Caixa Econômica Federal. The card can be used to withdraw money and is one of the methods being used to overcome corruption which is a major problem in the country. The move is also directed at dissociating the receipt of the money from any politician or political party. To ensure transparency, the names of individuals enlisted in the program have been made publicly available at the program’s website Portal da Transparência. One of the key criticisms of the program included that ‘it gave people fish but did not teach them to fish’. But policy makers in favour argued that Bolsa recipients were not poor because they were lazy or didn’t know how to work, they were poor because there were not enough opportunities for them. Bolsa empowered them by giving them basic sustenance in a consumer society. Brazilian values are critical to the acceptance of Bolsa. In the World Values survey, it was found that 76% of Brazilians held the belief that that poverty was caused by an unjust society. Such a concern about social justice is reflected in the country’s constitution which greatly emphasizes the elimination of poverty, inequality and creation of a just society. The drawbacks of parallel development remain and comprise the current and future scope for improvement and progress in the country. Despite its relatively short life, Bolsa has provided impetus to CCT schemes in Latin America and around the world. More than 120 delegations from across the world visited Brazil in 2012 to learn about the program and its implementation methodology.

Political Structure and contributing factors Brazil is known to have a strong federal structure which allows state governors to constrain the central government. It is supported by weak and fragmented party system which makes it difficult for non-consensual ideas to find their way to the top of discussions. Lula’s scheme was to combine all extant programs instead of eliminating them and then providing a basic income that would assist households in moving beyond the poverty line. The redistribute nature of Bolsa depends largely on collaboration between centre and local authorities. Factors in favour of Bolsa include the power of centre to bypass states and fiscal incentives given to central-local collaborations. These unique environmental attributes helped Bolsa effectively tackle poverty and bring social inclusion to the region. The success of the schemes also draws largely form the direct interaction between the government and the citizens.

CadUnico: Finding and Targeting the Hardest to Reach Cadastro Unico or CadUnico in short is the cornerstone of Brazil’s Bolsa Familia nd nearly 30 other federal social policy programs. It is an organized, centralized and unified database of poor families in Brazil. The database stores

Chapter 33: Conditional Cash Transfer Schemes in the Indian Context221 key information such as income, number and age of members in the family. The total data covers nearly 40% of the households in Brazil. The exhaustive and precise data is the backbone of the program and its chief strategic tool in targeting the poorest families. It helps identify potential recipients of the cash transfers, understanding their requirements and financial estimation of the budget required to cover these families. It serves as a s source of both analysis and prediction. A major challenge for CadUnico is that many of the poor in Brazil live in slums, some are homeless, some others live in the poorest regions of the Amazon Rim and many do not have a formal address. Slums and rural regions in Brazil are like mazes, many “favelas” are technically illegal and informal settlements. But Bolsa requires government officials to know where the people live, without which data storage becomes a futile exercise when location of the poor becomes unavailable, since very little can be done with the remaining information when there is no way to reach these households. CadUnico has overcome this obstacle by designing its questionnaire to accommodate informal and unconventional arrangements of housing. Instead of an address, respondents are asked what kind of public space they live near, such as a park, market or river. It asks them to categorize their dwelling as house or an abandoned lot. The questionnaire also allows respondents to specify whether their home is permanent or a make-shift arrangement. This allows CadUnico to have clues or “indications” of where the respondents live. This allows greater reach and effectiveness for the Bolsa Program. The program itself, boasts of the fact that not having a home does not mean that Brazilians are left out of the social security program and exclusion errors (the error of overlooking deserving families) is avoided.

Criticism Initially, Bolsa was treated as a silver bullet which is not the right approach towards the scheme. Also, it has been identified that the expansion of the Bolsa scheme lead to the subsuming of several other distributed benefit schemes related to cooking subsidies, prevention of child malnutrition etc. Some evidence around the schemes suggest that due to the above scenario, the net benefit obtained by a family availing Bolsa is less than the sum of benefits under various schemes availed earlier (The Economist, 2010). Also, the program has not been very successful in mitigating child labour. Bolsa enrolled children are allowed to miss 15% of their classes in school, making matters worse. Finally, since the cash amount goes to the female heads of families who are mostly grandmothers in Brazilian favelas, it produces a kind of ‘double dependency’; on the grant made available to the family and the matriarch heading the household. Also, parallel development schemes such as schools, hospitals and employment opportunities have to be scaled up to complement the program.

Discussion: Feasibility of CCTs in India The success of CCTs in Latin America, pioneered by Mexico and Brazil has caused their proliferation across the world and especially in developing countries. There have been newer improvisations towards improving targeting and minimising leakages. The Latin American models show that if implemented strategically and with minute understanding of the country’s environment, CCTs can go a long way in increasing social protection nets, reducing poverty, increasing education and healthcare. But in India, the challenges rise to unprecedented levels. With a population of 1.3 billion where nearly 3.63 million live under the poverty line, the task is humongous. Added to this is the challenge of federal structure, multi-party politics, corruption, bureaucracy and exceptionally diverse populace in terms of religions, castes, tribes, income, age etc. The demographics of India are demanding. In light of these facts, the greatest challenges in administering CCTs in India are constrained by the following dimensions on an operational basis: “access, identification, classification, monitoring and evaluation of poor households”. Key questions that should be asked before designing programs include: should the program be implemented in topdown manner or should smaller implementation be scaled up eventually. The conditions to be enforced on beneficiaries is another question that must be addressed by evaluating what aspects of growth does the government want to stress on - education, nutrition, health etc. Finally, if CCTs are to be implemented, how should access to education and health facilities be ensured for the beneficiary families?

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Discussion: Challenges and Opportunities in India Key challenges cited in earlier studies and discussions said that the greatest hindrance stems from not having a nationwide unique identification scheme. Today, this challenge has been overcome. A twelve digit identification number called AADHAAR, identifying all Indian uniquely based on demographics and biometric information has emerged as a new possibility. It boasts of being the world’s largest biometric system with over 1.123 billion records as of 28 February 2017 – meaning that over 99% of Indians have an Aadhar ID. This paves the way for CCTs in the future while emphasis is laid on ensuring that the poorest of the poor have identification. Further, many of the poverty stricken individuals in the country do have any access to banks and other financial institutions. However, in India, the trend is to have one bank account per household as opposed to having a separate bank account for each individual. In a recent scheme called the Pradhan Mantri Jan Dhan Yojana, 26.20 crore bank accounts were opened for the unbanked section of the society. Guinness World Records has recognized the significant goals attainment by PMJDY stating in its certificate that: “The most bank accounts opened in 1 week as a part of financial inclusion campaign is 18,096,130 and was achieved by Banks in India from 23 to 29 August 2014” The government claims that 99.99% of households in both urban and rural India have a bank account today. Now that nearly all households in Indi have a bank account, the implementation of extant cash transfer schemes and future programs shall find a smooth path in the country. Further, the government’s impetus on linking bank accounts with Aadhar is another positive move in this direction. Both these benefits are being harnessed by the current MNREGA (an employment guarantee scheme) which has been allocated a whopping 43crore in India’s union budget for 2017. Meanwhile, Kartik Akileswaran and Arvind Nair, scholars of Indian origin at Hravard Kennedy School say that India is not in opposition to begin CCTs yet and that they can be beneficial to the country only if the amount of benefit matches the PPP (purchasing power parity) of earlier subsidies. Their suggestion is that India should emulate Brazil’s Bolsa approach of gradual bottom-up implementation The current penetration of mobile devices in India and the more recent push to mobile banks (such as the recent Airtel Bank) are brightening up the horizon for social cash transfers and financial inclusion in India. As of January 2016, India’s mobile phone subscriber base grew to more than 1 billion and by the end of 2016, India ranked number 1 in a global list of countries by number of mobile phones in use. This adds to the ease of connectivity, tracking and monitoring that CCTs require together with serving as a key platform for reaching out to the population. Although lack of basic healthcare for several poor sections of the country, India is famous for its excellent medical fraternity and often patients from other countries flock to India for treatment. Here, there lies an opportunity for privatepublic partnership to address the challenge of developing infrastructure and systems that allow these services to be accessed by the poorer sections of the population.

Pilot Projects in India UNDP launched a pilot project of cash transfers in Delhi in 2012 whereas UNICEF launched two pilot studies under SEWA in Madhya Pradesh in the form of unconditional benefit schemes. Both studies were aimed at assisting those trying to reach a judgement on whether cash transfers should be introduced in the country and what will be their impact. The pilots were designed to enable the study of transfer schemes and their impact on family behaviour, community behaviour and development, change in household consumption patterns and malpractices born out of cash transfers. In their summary reports, both projects show positive results on food choices and nutrition and family/community development together with significant women empowerment and by means of selecting a female beneficiary for the programs. The study also helped debunk the myth that cash transfers may incentivize alcohol consumption. Another observation was that a significant number of households with cash transfers switched from government treatment to private healthcare The Delhi pilot project with UNDP suggested governments provide a ‘choice’ option to poor households dependent on government ration which allows them to choose between food grains and cash benefits. This would allow a phase of study to further observe cash transfers without eroding the extant benefits of transferring food grains to the poor.

Findings: Key Lessons from Brazil and Mexico Lessons to be learned from Mexico and Brazil are abundant and relevant for India. Being developing economies, the challenges faced by them are very similar. Both Oportunidades and Bolsa Famili are among the top most successful

Chapter 33: Conditional Cash Transfer Schemes in the Indian Context223 cash transfer schemes in the world and have an array of excellent features that have contributed to their popularity and effectiveness. The drawbacks of both programs are lessons that should not be ignored and provide avenue for further improvement and innovation in policy making towards social inclusion. The number one learning from Oportunidades/Progresa is that monitoring and evaluation should be prioritized on the agenda from the very beginning. Close analysis is extremely important to analyse and identify the impact of these schemes. Constant vigil allows program features to be amended as per response elicited and changes observed. As mentioned earlier, Bolsa’s bottom up method of implementation i.e. beginning with a small community and the scaling up is recommended in the Indian context. This shall allow room for experimentation and customization of CCT (targeting, conditions imposed) gradually. Together with close monitoring and impact evaluation, it provides good ground for RCT and refined policy implementation in light of analytical feedback. Both Oportunidades and Bolsa Familia tried to keep the schemes away from political fanfare. Oportunidades was initiated as a low-key affair to avoid huge expectations from the start. This may serve as a key lesson for India. Its multi-party politics together with distributed centre-state control provides ripe conditions for CCTs to be used as political scores and threatens sustainability of a program with successive government changes. To keep the nature of the program neutral to political affiliations and focused on improving the lives of the poor would be the best approach to ensure consistency and sustenance in the long run which is crucial to the success of CCTs since results take time to start showing. Similarly, both programs identified a “female head” of the family as recipients of the benefit. India needs a similar structure in its CCT implementations to counter the misbalance created by a patriarchal family structure and to add benefits of women empowerment to its schemes. Being principal care takers of the family, mothers when empowered with financial support can take better decisions about health, well-being and education of children. However, the risk of matriarchal dependence as in Brail where grandmothers usually come into picture must also be evaluated. Bolsa’s unique method of storing beneficiary data even when they do not have a home is also a welcome learning for India which abides in slums and temporary settlements where large sections of the poor populations live. Collecting “clues” of the recipient’s location shall help in expanding the outreach of the program and include the neediest sections in social protection net. Further, the use of cards and debit balances in nationalized banks is a feasible mechanism in the Indian context, especially after Pradhan Mantri Jan Dhan Yojana has ensured at least one bank account for every home in India. Finally, the most essential take way from both Bolsa Familia and Oportunidades is that conditional cash transfer schemes should not be taken as the silver bullet to address poverty. Parallel development of employment opportunities, health care facilities, education and skills development is crucial to lifting large segments out of poverty. Cash Transfers have a positive impact in the long run, but if used as the only measure of poverty eradication they are ineffective. Besides due consideration has to be given to the conditions imposed on beneficiaries. For e.g. although CCTs may improve attendance in schools, they cannot do much to improve school performance and sustain education beyond the period when benefits are offered. This leaves opportunity of improvement and focus so that the benefits of basic education are carried forward to disrupt a vicious cycle of ‘inter-generational poverty transfers’.

Chief Considerations in India’s Context UNDP’s review indicates that both centre and state governments in India have been increasingly moving towards CCT like schemes. The Janani Surakhsha Yojana is a full-fledged CCT program promoted by the current government in the union budget 2017 which provides financial benefits subject to institutional child birth. An elaborate administrative structure that is constantly improving and including local authorities such as gram panchayats is observable in India. As of now, these changes are being leveraged by the MNREGA program. Use of Aadhar linked bank accounts to reduce leakages is also on the rise. Several national and state schemes today recognize the need for demand side stimulation and the potential of cash incentives to induce behavioural change. The introduction of CCTs however, represents a formidable capacity development challenge. Improved co-ordination between central finance and local delivery is also of paramount importance and is helped by the banking and identity inclusion that has emerged recently. Since financing has mostly been a central activity, this is an area where collaboration

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is crucial together with partnership with private and international agencies. Targeting the urban poor is another critical activity towards poverty elimination in India, and most pilot studies targeted in these regions have shown quick benefits and good positive response. Further, extant schemes are confined to the limits of ministries; larger schemes that transcend ministerial boundaries have not been devised with the exception of MNREGA. Also, the impetus on monitoring and evaluation is not adequate for most programs. A keen understanding of the schemes and their impact assessment being missing, the scope for development and improvement of programs becomes highly restricted. India’s political, legal, cultural and social dimensions must be keenly reviewed before launching any cash transfer scheme on a broad scale. Extant schemes target smaller sections of the vulnerable but a large full-fledged scheme shall have several intended and unintended consequences. Inequality is already a very large issue within the country and the diversity of castes, states, languages, religions only adds to the complexity. The lack of social support for those benefiting from the schemes due to erosion of familial ties, possibility of embitterment and community-based politics and discrimination against beneficiaries is very high and largely a cause of worry. This together with the lack of co-ordination between centre and state in several concurrent areas of governance raises doubts over the possibility of effectively implementing CCTs within the country. Also, there has been a tendency to discuss cash transfers in India as an alternative to a ‘food security policy’. This may not be the best perspective as both are largely different schemes and goals, one to pull people out of multi-dimensional poverty, the other to ensure basic availability of food grains without considering education/nutrition/standard of living etc. There are no well-established and significant arguments that completely dismiss the idea of implementing cash transfers in India. The arguments in favour make a strong case for India, principally state that CCTs are a feasible, transparent and equitable methods of reducing inequalities growing economies, lead to women empowerment, combat paternalism and limit bureaucrats’ discretionary powers, increasing social policy efficiency and boost human development for e.g. education.

Conclusion and Future Scope The success of CCTs in Latin America and their positive impact in pilot schemes provides a strong case for their implementation in India. However, blindly following the Latin American Models or failing to draw learning based on their experience can be huge pitfalls to poverty alleviation strides in India. Therefore, instead of replication, customization should be the focus. It is also important to recognize that the implementation of CCTs calls for a mature, stable cross-institutional operational structure and a substantial amount of human and financial resources. The lesson on bottom up scaling of social assistance is also clear and important in the Indian context. Also, it shall be wise to not look at social cash transfers as the cure-all solution to poverty alleviation but to complement with development in infrastructure, connectivity, employment and educational opportunities. Having said that, the role and potential of social cash transfers in breaking the cycle of inter- generational poverty transfers, women empowerment and as a medium-term solution to rampant poverty should be recognized and utilized to uplift the lives of the poor and create an inclusive society.

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