Faculty Job Satisfaction Impacts Student Satisfaction

IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 3, Issue 4 (Sep,-Oct. 2012), PP 01-08 www.iosrjournals.
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A Study Of Faculty Job Satisfaction And Its Impact On Student Satisfaction In Management Institutes Of Nashik District Affiliated To University Of Pune.
Bhavna R Shetty1, Dr. Rajashree Gujarathi2
1
(Lecturer, Shri SPK & Smt GSK Institute of Computer Science & Technology Management, Nashik, India.) 2 (Professor, Sinhgad Institute of Business Management, Mumbai, India).
Abstract: Most of the higher educational institutes throughout the country are suffering from acute shortage of
faculty. The effect of high faculty attrition is borne by students for no fault of theirs. Teaching has also become an unattractive profession today for which young talents prefer other hefty paid salaried jobs and career options. Thus objective of this research paper is two folded; firstly to identify factors of faculty job satisfaction and students overall satisfaction in this knowledge economy, and secondly to examine the role of faculty job satisfaction in generating student satisfaction. Chi square test was used to test the hypotheses; to determine the association of facultys job satisfaction level with facultys salary and also with students overall satisfaction level. Results indicate that in todays fast changing economy, faculty members thrive for professional growth and development, not just salary; to secure better positions in future. The findings of this research paper also propagate the concept of Human Sigma within educational context, stating that a contended faculty is a source of students satisfaction, but for this faculties need to be retained and satisfied. Keywords: faculty job satisfaction, faculty retention, human sigma, management institutes, student satisfaction. I. Introduction Today more than ever before in human history, the wealth or poverty of a nation depends on the quality of the higher education (Malcolm Gillis, 1999). India has one of the largest Higher Education (HE) systems in the world. There are three principle levels of qualifications within the degree structure of Indian HE system; the bachelor/undergraduate level, master's/post-graduate level and doctoral/pre-doctoral level; also included are diploma courses at undergraduate and post graduate level. Management institutes a part of higher education system, determine the career paths of the youth and in turn the future of the country. Students, parents, teachers, staff and society in general are the stakeholders of these institutes. Faculty members, the core eighty percent human resource of any management institute, have the potential and power to transform the future generation of our country. The most important information to have regarding an employee in an organization is a validated measure of his/her level of job satisfaction (Roznowski and Hulin 1992). Behavioural and social science research suggests that job satisfaction and job performance are positively correlated (Bowran and Todd 1999). A better understanding of job satisfaction and factors associated with it is helpful to guide employees' activities in a desired direction. Job satisfaction, for example, is significantly linked to factors like employee motivation and performance (Ostroff, 1992), employee absenteeism (Hackett & Guion, 1985) and turnover (Griffeth, Horn, & Gaertner, 2000) and even positively influences organizational citizenship behavior (Organ & Ryan, 1995). Satisfaction is a relevant measure because many studies have demonstrated that other factors being equal, satisfied individuals are likely to be willing to exert more effort than unsatisfied individuals (Bryant, 2006; zgngr, 2010). The same holds true for satisfied faculty members and students as well in education institutes. The importance of this research paper is two folded; firstly to identify factors of faculty job satisfaction and students overall satisfaction in this knowledge economy, and secondly examines the role of faculty job satisfaction in generating student satisfaction. As employee turnover continues to be a serious business predicament, the concept of job satisfaction assumes significance not only for contemporary business scenario but also for educational sectors that are facing acute shortage of qualified and competitive teaching work force. Faculty job satisfaction levels seem to have direct bearing on the institutional as well as the student development and an understanding of job satisfaction, retention and employee turnover aspects of the faculties would help policy makers understand a very important organ of the society, responsible for future of the nation and generation. According to the Department of Higher Education, Ministry of Human Resource Development MHRD, educational sector has witnessed a tremendous increase in its institutional capacity since independence. Over the years, the number of management institutes for higher learning has increased tremendously; but this growth in number of institutes and enrollment of students has not been supported by proportionate growth in number of www.iosrjournals.org 1 | Page
A Study of Faculty Job satisfaction and its impact on Student Satisfaction in Management Institutes
faculties. Most of the higher educational institutes throughout the country are suffering from acute shortage of faculty, not to mention good faculty members. To face faculty crisis, educational institutes opt for ad hoc, part time or visiting faculties who teach only for a few couple of hours. These faculties are least committed towards the institute; as they work in multiple places to make a living. They are thus frustrated and not motivated. Ironically, the effect of high faculty attrition is borne by the students for no fault of theirs. There is need to identify the issues associated with faculty job satisfaction and retention and pave out proper solutions for the same. In an attempt to increase the Gross Enrolment Ratio (GER) in higher education to 21% by the end of the 12th five year plan period from the current 13.5%, MHRD has formulated an action plan to achieve this target. Raising the GER would entail an additional enrollment of over 26 million in higher education and almost one million school teachers by 2020. For faculty attraction and retention, the ministry is mulling Human Resource Planning and Management (HRPM) centers at the university level to assess teacher requirement and plan their professional growth research and faculty development programmes such as seminars, training, workshops, incentives and award schemes. It is being suggested that a concerted strategy to retain best talents in universities for faculty positions and preparing secondary teachers be formulated. The most important product of educational institutions is a qualified and satisfied student; the second concept under study in the research. Students satisfaction surveys are important in ascertaining whether colleges and universities are fulfilling their mission. Satisfied students are more likely to be committed and continue their studies (as measured by a higher retention rate) than unsatisfied students, who are likely to be less willing to regularly attend classes, and are more likely to quit their studies (Jamelske, 2009; Borden, 1995). Institutes have assessed students satisfaction for many reasons. Some have measured the levels of student satisfaction in order to examine accountability reporting and self-improvement process across departments and colleges; others have examined student satisfaction to determine if satisfaction ratings of college programs and services are associated with the satisfaction of the overall college experience. Still others have investigated student satisfaction items related to issues such as student retention and attrition. 1.1 Significance of the study Most of the research on job satisfaction is related to industrial or business organization; and even if faculty job satisfaction has been studied earlier, unfortunately not much attention is drawn towards studying the influence of having satisfied faculty upon student satisfaction level in education institutes. The following key benefits highlight the significance of this research effort: 1. Deal with faculty shortage: In order to survive, management institutes have to face several challenges and faculty crisis is perhaps the most critical. The current and predicted shortages of competent faculty members can go from concern to crises in coming decades. Faculty job satisfaction can improve faculty retention rate and arrest attrition rate. 2. Sustain Quality of education: Quality faculty is must for quality education. Quality is not inborn, it needs to be inculcated & practiced, which in turn calls for continuous training and commitment on part of the faculty members. A satisfied faculty will take initiative and keen interest towards training programs in true sense. 3. Student satisfaction: Faculty members working for the cause of higher education need to be retained with the view to providing top class education and satisfaction to the students.. 4. Organizational commitment: Better job satisfaction will provide current faculty members a reason to continue with the institute and stay committed. 5. Image building of the institute: Satisfaction and retention of qualified faculty is an important factor in maintaining the identity and professional climate of a management institute and to improve its reputation in the market. 6. Attract fresh talent towards teaching profession: Teaching has become an unattractive profession today for which young talents prefer other hefty paid salaried jobs and career options. Faculty retention strategies can improve the image of teaching as a profession and thereby make it an attractive career option for the youth of the country. Nashik is deemed "the third most industrialized city of Maharashtra after Mumbai and Pune", mainly due to extensive industrial development in recent times. Today, Nashik is rated as one of India's fastest growing cities. The city is gaining preference as an educational hub, becoming students alternative option to technical and management education; next to Pune. Thus the number of management institutes recognized by Pune University in Nashik district today has gone upto to 36. Despite of increased job opportunities in management institutes, faculty shortage remains central issue. Hence Nashik district was chosen as the study area for this research work. Keeping in view all the above mentioned factual and doubtful factors associated with the study, a detailed study of various factors of faculty job satisfaction and specifically its impact on students satisfaction level deserves a strong rationalization. The findings of the study will be of enormous use to the management as well as faculty of management institutes, in general. The report of this study may be useful for management www.iosrjournal.org 2|Pag e
institutes to develop work environment and culture that would allow higher levels of faculty job satisfaction and retention to enhance overall student satisfaction. On other hand, faculty members will become more aware of their expectations from the job. It will foster a better understanding between the management and faculty members so as to achieve institutional objectives in the long run.
II.
Literature Review
Three theoretical frameworks of job satisfaction can be identified in the literature (Green 2000). Framework one is based on content theories of job satisfaction. Content theorists assume that fulfillment of needs and attainment of values can lead to job satisfaction (Locke, 1976). Framework two is grounded in process theories of job satisfaction. Process theorists assume that job satisfaction can be explained by investigating the interaction of variables such as expectancies, values, and needs (Gruneberg, 1979). Framework three is rooted in situational models of job satisfaction (Thompson & McNamara, 1997). Situational theorists assume that the interaction of variables such as task characteristics, organizational characteristics, and individual characteristics influences job satisfaction (Hoy & Miskel, 1996). Locke and Lathan's (1976) defined job satisfaction as a "pleasurable or positive emotional state resulting fr om the appraisal of ones job or job experience. Many experts believe that job satisfaction is not only an indicator of overall individual well-being (Diaz-Serrano and Cabral Vieira, 2005), but also a good predictor of intentions or decisions of employees to leave a job (Gazioglu and Tansel, 2002). Teacher job satisfaction is often cited and rendered important in both research on teacher attrition and teacher retention (Roach, 1991; Voke, 2002; Stockard & Lehman, 2004). Researchers and scholars have tried to understand the high teacher turnover rate among beginning teachers by investigating the reasons and causes behind both teacher retention and teacher attrition (Connolly, 2000; Ingersoll, 2003; Ingersoll & Smith, 2003; Howard, 2003; Inman & Marlow, 2004; Heller, 2004; Stockard & Lehman, 2004). It must be taken into account that the source of job satisfaction is not always salary; but also the job content and context, that generates from working environment, management style, interpersonal relationship and organizational culture. Non-salary incentives like early promotion, research allowances, more frequent leaves of absence, and reduced teaching loads (Bowen & Sosa, 1989) can also help recruit and retain faculty without raising salaries. Hughes (1991) in his research found professional growth as fundamental motivators and component of teachers career development that gives them effectiveness and satisfaction in teaching. Teacher job satisfaction is frequently associated with burnout, work quality and professionality. A study by Gill (1992) reported that six of the top seven reasons for faculty departing were intangible benefits such as research opportunities; higher compensation levels increased the retention of assistant and associate professors, but had no effect on retaining professors. For the purpose of understanding how higher education institutions can retain women faculty members, Wenzel and Hollenshead (1994) studied attitudes of tenured women faculty and identified blocked career opportunities, receiving disrespectful treatment, insufficient personal or financial support, mismatched personal and institutional goals as negative aspects of the university work environment that influenced faculty attrition. Likewise, Lynn (2002) supported the idea that educational leaders should provide professional learning and growth opportunities in order to motivate teachers and to enhance their performance. The Emerging Directions in Global Education (EDGE) survey report 2009, on Faculty Recruitment and Retention-The Issues and Challenges throws light on the challenges involving faculty recruitment and retention in India. The survey reports that average attrition rate in academic institute was about 25 percent per annum. Compensation along with other employee benefits were the two major professional reasons for the faculty to leave the institute, whereas job security is another additional factor in case of private institutes. Factors like family living locally and availability of school in the locality are given more importance by the private institute faculties. According to students view 60 per cent of the faculty exit during the academic year which badly affects their studies. This trend was much higher in case of private institutes as compared to their government counterpart. Students also opined that availability of better compensation and career option and lack of growth opportunities in the existing institutes resulted in faculty exit. Strategies suggested by the report for faculty retention were promotion based on performance, faculty freedom, encouraging research programme, training, opportunities for career growth, transparent appraisal system and housing facility. The report finally concludes that introducing innovative HR tools in line with the corporate sectors may help in bringing down the attrition rate to some extent. College students satisfaction has been conceptualized by researchers in various ways as satisfaction with college experience (Elliott & Healy, 2001; Peters, 1988; Billups, 2008), satisfaction with quality of instruction (Aman, 2009), satisfaction with advising (Corts, Lounsbury, Saudargas, Tatum, 2000 ; Elliott, 2003; Olson, 2008; Peterson, Wagner, and Lamb, 2001), satisfaction with assessment (Kane, 2005; Ross, Batzer, & Bennington, 2002), satisfaction campus-wide (Benjamin & Hollings, 1997), and satisfaction with an academic department (Corts et al., 2000). Quality in higher education means enabling students to achieve learning goals and academic standards in effective educational environment (Venkatraman, 2007). Research has proved that faculty has a major impact on students learning (Hill, et al, 2003) and is the main strength in an www.iosrjournal.org 3|Pag e
educational institution (Gary, 2005). Quality in teaching and learning can only be enhanced if the faculty members are satisfied and content (Chen, 2006). In order to make students understand the value of their education and make them satisfied with their overall experience, satisfied faculty members are needed. A study by Peng and Samah (2006) that attempted to discover factors of education service contributing the most to students satisfaction level, identified lecturer and faculty as significant affecting factor. Faculty will be effective and competent in achieving the desired learning outcomes, provided they are satisfied with their profession. When students are satisfied with their faculty and institute; they are likely to become more involved with their studies and give better results.
III.
Objectives Of The Study
The primary research objective of this study was to provide more practical data on the job satisfaction levels of faculty and its influence on students overall satisfaction level. 1. To establish the importance of having satisfied faculty members and its role in overall students satisfaction level. 2. To identify and understand various factors affecting faculty job satisfaction, retention and attrition in management institutes. 3. To identify factors affecting students performance and satisfaction level in management institutes. 4. To suggest appropriate measures to improve the faculty satisfaction rate of management institutes, through the final study report.
IV.
Hypotheses For The Study
Hypothesis H1: In management institutes faculty job satisfaction is positively associated to facultys salary. Job satisfaction is a result of employee's perception of how well their job provides those things that are viewed as important. Hypothesis H1 is based on assumption that if faculty positions become less economically attractive, the level of dissatisfaction could rise substantially. As faculty compare their salaries not only to those in other professions, but also to other faculties, inside and outside of their institutions; salary becomes an important determinant of job satisfaction. Hypothesis H2: In management institutes high level of faculty job satisfaction is positively associated with high level of students satisfaction level. The assertion made in this paper is that there exists a relation between faculty job satisfaction and student satisfaction; that influences student performance, learning and motivation. If faculty members stay dissatisfied and disinterested with their jobs, it is apparently going to have direct consequences on students. To grasp the complexity of students satisfaction, it is not enough to know only the degree to which students are satisfied, but to understand the factors that contribute to their satisfaction. Most scholars agree that the relationships between students and faculty are vital to student success in college (Kuh, Kinzie, Schuh, Whitt, & Associates, 2005). In this study, student satisfaction is conceptualized as overall satisfaction with faculty and institute related factors. A score of seventy percent and more on respective satisfaction scales was considered as high level of satisfaction for the purpose of this study. The conceptual framework proposed for this research study is shown in fig 1.
Figure 1: Conceptual framework of faculty job satisfaction and student satisfaction.
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A Study of Faculty Job satisfaction and its impact on Student Satisfaction in Management Institutes V. Research Methodology
5.1 Survey instrument: The primary data for this study was collected from two important sources of management institutes; the faculty members and students. Non probability convenience sampling technique was adopted. Two separate self completion questionnaires were designed, based on earlier studies; one for faculty members and the other for students. A pilot study was carried out to test the reliability of the self developed scales and as the scales showed high reliability they were considered as good measures for main phase study. 5.2 Independent variable: The independent variable faculty job satisfaction was measured on five factors employment conditions (=0.81), work environment (=0.77), teaching climate (=0.80), professional development (=0.79) and institutes culture and value (=0.74); in all covering 28 items. Five-point Likert rating scale was used with 5 indicating highly satisfied and 1 indicating highly dissatisfied conditions. For the purpose of this study a score equal to or more than seventy percent was considered as high job satisfaction. Faculties were also asked to rank order six factors important from their retention and attrition point of view. 5.3 Dependent variable: Students overall satisfaction, the dependent variable was measured on two factors using a self designed scale. First factor related to faculty(=0.78), with items like facultys concern for students, competent and knowledgeable faculty, quality of interaction between faculty and students, facultys expectations from students and so on. The second factor of satisfaction related to institute (=0.76), campus interviews, availability of academic advisors or counselors, amount of financial aid/scholarships available, additional training in form of workshops & seminars, reputation of the institute. To test hypothesis H2, students were asked to rank following factors self interest and competency, faculty leaving during an academic year, faculty retention throughout the completion of course, facilities provided by institute and family support in order of its impact on their performance and satisfaction level. To understand faculty members perception about factors influencing students performance and satisfaction, they were also asked to rank order above five factors.
VI.
Results And Findings
The survey was conducted in management institutes of Nashik district affiliated to University of Pune; profile of the respondents included working professors, assistant professors, lecturers and students. 6.1 Findings related to faculty members: Out of the 100 questionnaires distributed; 48 faculty members responded (48% response rate) by returning completely filled questionnaires. Demographics of the respondents showed that 63% were female faculties. 76% of the respondents represented young faculty belonging to 26-35 years age group. Their level of experience showed that 42% had teaching experience of less than 1 to 2 years and only 2% had served more than 15 years. A high 58% of faculties were working on contract basis. 65% of faculty members were found pursuing a PhD degree; probable reason being e that achieving a PhD degree is now linked with promotion by University Grants Commission (UGC) of India. A substantial 78% of faculty members were dissatisfied with their jobs. High level of dissatisfaction was exhibited for professional development (M=2.33) and employment conditions (M=2.47), see Table 3. The major issues of concern were time provided for research work, availability of research support & facilities and promotion policy. Respondents opined that they cant carry out research activities with full efficiency in presence of high workload and non teaching activities. Faculty members when asked to rank factors that had significant impact on their intention to leave current position, the leading ones were no future growth, job security and lack of support & freedom (see Table 1). Faculty members were found somewhat satisfied with teaching climate (M=3.76), see Table 3, while respondents were contended with quality of students, availability of teaching aids, reputation & progress of the institute; they were not much satisfied with participation in decision making and freedom to choose subjects to be taught. Empowerment and recognition proves to be key motivators for job satisfaction. On exploring faculty retention factors, results identified career advancement & promotion (rank 1) as the foremost important factor, followed by salary and leave benefits (rank 2) and then co-operation & support (see Table 2).
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Table 1: Ranking of Attrition factors by Faculty Table 2: Ranking of Retention factors by Faculty RANK ATTRITION Factors RANK RETENTION Factors 1 No future growth 1 Promotion & career advancement 2 Job security 2 Salary and leave benefits 3 Lack of support & freedom by the 3 Co-operation & Support from higher director levels 4 Low Salary 4 Working conditions 5 Isolation/ Poor relationship with 5 Good relations & communication colleagues with colleagues 6 Personal/ Family reasons 6 Family support It seemed faulty members were hesitant to give their opinion about the work environment (M=3.07), refer Table 3, and chose to remain neutral for matters like support from colleagues or seniors, relationship with HODs/director and infrastructure. As main concern of most faculties was completing their PhD; less guidance or support in this regard can lead to more job dissatisfaction. Above mentioned findings clearly indicate that faculty members feel strong need of professional development culture, which is an important contributor in their retention and job satisfaction. Table 3: Mean Scores of factors affecting Faculty Job Satisfaction Factors N Mean (M) SD Employment conditions 48 2.47 0.98 Work Environment 48 3.07 1.02 Teaching Climate 48 3.76 1.23 Professional development 48 2.33 0.94 Institutes culture & values 48 3.24 1.15 6.2 Findings related to students: 250 questionnaires were distributed to students of which 147 students responded (59% response rate). 61% students were pursuing MBA course while the rest had taken up MMM, MPM and MCM courses. 64% students showed high levels of dissatisfaction with faculty related factors, consistency of instructional quality, facultys concern for students and faculty r etention. However students (73%) seemed somewhat satisfied or at least neutral with other institute related factors like additional training in form of workshops & seminars, extra and co-curricular activities, infrastructure and reputation of the institute. When we observe ranking of factors influencing students performance and satisfaction (refer Table 4); it appears that faculty and students share only one factor family support out of five. While students attach great importance to faculty attrition, faculty members seem to have underestimated its impact on students. Striking is the difference in importance attached to the factor faculty retention throughout the completion of course. Faculty members appear to view it differently, ranking it fourth against students ranking it as the top most factor influencing their overall satisfaction level. According to students when it comes to their performance and results, faculty leaving during an academic year is more significant than their own interest and competency. However, same issue is being viewed differently by faculty, as they consider students interest and competency responsible for students performance. On the whole there appears to be remarkable difference in the perceptions of faculty members and students regarding factors influencing students performance and satisfaction. Table 4: Comparison between student ranking and faculty ranking. Effect on Students Effect on Students Influencing Factors performance overall satisfaction Ranking Ranking Ranking Ranking by student by faculty by student by faculty Students self interest and competency 2 1 4 2 Faculty leaving during an academic year 1 3 2 3 Faculty retention throughout the completion 3 4 1 4 of course Facilities provided by institute 4 2 3 1 Family support 5 5 5 5
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6.3 Hypothesis testing Chi square test was used to test both the hypotheses; to determine the association of facultys job satisfaction level with facultys salary and also with students overall satisfaction level. Hypothesis 1: In management institutes faculty job satisfaction is positively associated to facultys salary. The computed value of chi square (2) at degree of freedom (df) equal to one and 5% significance level was 0.82. This value being much lesser than the table value 3.841, null hypothesis was accepted; indicating no positive association between faculty job satisfaction and facultys salary. Hypothesis 2: In management institutes high level of faculty job satisfaction is positively associated with high level of students satisfaction level. For hypothesis H2 the computed chi square (2) value 6.00 was greater than the table value 3.841 at degree of freedom (df) 1 and significance level alpha 0.05. Hence null hypothesis was rejected. This signifies a positive association of faculty job satisfaction with students overall satisfaction level.
VII.
Conclusions
It can be concluded that salary is not primary but the secondary determinant of job satisfaction for faculty in todays knowledge economy. This is in agreement with a Fuhrmann (2006) study which stated that although money is an influential factor at every stage but it is not necessary that money alone can increase motivation of every worker. There are intangibles (for instance growth & development, recognition and feedback) that are primary motivators for the workers inspiration to perform effectively. Salary does not always provide adequate recognition or ensure contentment (Nienhuis, 1994). Some research suggests that perceived equity of pay may be a more important determinant of commitment and satisfaction than basic level of pay (Mowday, 1982). Lack of professional development, time and support provided for research activities were factors responsible for highest dissatisfaction. In this fast changing economy, faculty members today thrive for professional growth and development to secure better positions in future. As most respondents were working on contract basis, the assurance of permanent job and job security could also compensate for lower pay. The findings of this research paper propagate the theory of Human Sigma as developed by Fleming and Asplund (2007) in educational settings. It proves a strong positive correlation between employee (faculty) satisfaction and customer (students) satisfaction. Employee and customer experiences need to be managed together, not as separate entities. The internal customer satisfaction would always be a precondition to orientation and satisfaction of the external customer (Shaney, Banwet & Karunes, 2008). The findings also demonstrate difference in views of faculty and students concerning factors influencing students performance and overall satisfaction. Students perceive both, faculty attrition during academic year as well as during the course as factors hampering their performance or satisfaction. A satisfied faculty is a source of students satisfaction but for this they need to be retained and satisfied. 7.1 Limitations The major limitation of this study is that it may not be appropriate to generalize its findings, owing to the small sample size and study area being limited only to Nashik district. Also the data obtained through questionnaires were all self-reports from the participants hence the findings may be subject to response consistency effect.
VIII.
Future Research
For further research a model which focuses on faculty need for professional growth and research opportunities is proposed; as these can achieve faculty satisfaction. A study on how to retain and attract talented faculty, especially the growing percentage of women faculty in other cities and states of India will be significant. Further research on the relationship between faculty satisfaction and students satisfaction in educational institutes can be of great importance to attract students in face of growing competition. Despite its limitation this study introduces the concept of Human Sigma in educational context and keeping in mind this concept is really in its infancy in education environment, the scope for future research and developments in this regard is enormous.
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IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 3, Issue 4 (Sep,-Oct. 2012), PP 09-19 www.iosrjournals.org
Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

K. M. Anwarul Islam1
1
(Department of Business Administration, The Millennium University, Bangladesh)
ABSTRACT : The main focus of this research is to show comparison about the performance of Banks
operating in Bangladesh. For this analysis we have used some most commonly used measures such as general business measures, profitability measures, management soundness measures and social profitability measures. Though, both conventional & Islamic banking have enormous contribution to the economy they have two major functional differences. First one is that where as the conventional banks follow borrowing and lending mechanism, the Islamic banks follow trading and investment mechanism and neither accept nor pays interest in any of its activities. And the other is conventional bank provide & receive interest for deposit & advance but Islamic banks are concerned with profit in case of both deposit and investment. For performance comparison both financial profitability & social profitability aspect of performance have been taken into consideration. The study shows that in spite of a few exceptions in general Islamic banks overall performance was better than the conventional banks. At the end, some lines of actions were mentioned to make necessary improvements. Keywords -FCBs, IBs, PCBs, SBs, SCBs
I.
INTRODUCTION
Banks play very important roles in the economy life of a nation. The health of an economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production distribution, exchange and consumption of wealth. In this way they become very efficient partners in the process of economic development. Today modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purpose. If there would no banks then a great portion of a portion of a capital of the country would remain idle. The number of banks is 47 in Bangladesh. Out of the 47 banks, four are state-owned commercial banks (SCBs), 30 private commercial banks (PCBs), 9 foreign commercial banks (FCBs) and the rest four are state-owned development financial institutions (DFIs). Sonali bank is the largest among the SCBs while Pubali bank is leading in the private ones. Among the 9 foreign commercial banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 7729, as of December, 2010. Of the branches SCBs hold 3,447, private commercial banks 2,828, foreign commercial banks 72 and DFIs hold 1382. Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform programme to ensure quality services by the banks. In our banking industry; we have different types of banks with different types of objectives, commitment and modus operandi. In order to streamline the working of commercial banks and financial institutions, BB issued a number of prudential guidelines during 2007 relating, among others, to bank management; branch expansion policy; loan write-off and loan rescheduling; legal steps for new loan to defaulters; foreign currency regulation; and anti money laundering activities.
II.
REVIEW OF LITERATURE
Bhattacharya (2007) pointed out that six major recent policy measures include: reduction of bank rate and lending rate, linking classified loans to large loan sanctioning; rationalization and merger of bank branches, measures for loan recovery, and demarcation of responsibilities between the management and the board and decision on cash reserve ratio. Pandey (2006) stated that the easiest way to evaluate the performance of a firm is to compare its present ratio with the past ratio. It gives an indicator of the direction of change and reflects whether the firms financial performance has improved, deteriorated or remained constant over time. Connelt, et al. (2009) observed how government ownership involvement in a countrys banking system affects bank performance from 1989 through 2004. Their study uncovers an interesting pattern of changing performance difference between state owned and privately owned banks around the Asian Financial Crisis. They found that
1
K. M. Anwarul Islam is Lecturer & Course Coordinator in the Department of Business Administration at The Millennium University, 5, Momenbagh, Dhaka -1217, Bangladesh. Email:ai419bankingdu@gmail.com
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State owned banks operated with less profitability, held less core capital and had greater credit risk than privately owned banks prior to 2001 and the greater performance differing more significant in those countries with greater government involvement and political corruption in the banking system. Kahlily (1997) observed that unlike urban credit market, rural credit market is generally repressed. Financial policies for agricultural credit are more subject to distortions. The major policies are: interest rate, loan targeting, refinancing of loans and interest and loan forgiveness program. Policies are formulated by Bangladesh Bank. These policies influence the behaviour of agricultural credit in formal financial markets. Jahangir, Shill and Haque (2007) stated that the traditional measure of profitability through stockholders equity is quite different in banking industry from any other sector of business, where loan-to-deposit ratio works as a very good indicator of banks' profitability as it depicts the status of asset-liability management of banks. But banks' risk is not only associated with this asset liability management but also related to growth opportunity. Smooth growth ensures higher future returns to holders and there lies the profitability which means not only current profits but future returns as well. So, market size and market concentration index along with return to equity and loan-to-deposit ratio grab the attention of analyzing the banks profitability.
III.
OBJECTIVE OF THE STUDY
The main objective of my research is to show the competitive position of the banks in terms of branches, personnel, profit & Growth. However, the objectives of this paper are enumerated: To measure the performance of cross section of banks from different angles. Identifying the possible reasons for variations in the performance of various categories of banks especially Islamic banks. Differentiating the Conventional & Islamic Banks Performances.
IV.
METHODOLOGY
My research seeks to identify the most widely used indicators of bank performance & applying the same to make a thorough examination of various performance dimensions for banking industry of Bangladesh. However, the sequential steps are discussed below: Relevant data were collected from a number of sources namely; various issues of i. Economic Trends ii. Scheduled Bank Statistics iii. Annual Reports Of Bangladesh Bank & iv. Bangladesh Bank Bulletin. General business measures, profitability, and social profitability were analyzed by using ratios. Market share & growth rate of different categories of banks against certain variables were also provided. Moreover, trend values were calculated to find the absolute changes of the variables & their direction of change.
V.
GENERAL BUSINESS MEASURES
Deposit mobilization & providing loans/investment are the principal functions of commercial banks. Deposits are the foundation upon which banks stand & grow. The ability of a bank to attract deposits from individual & businesses is an important measure of the banks acceptance by the publi c Growth of loans and Growth of loans and advances/investment is the primary source of income of a bank that ensures the viability and sustainability of the bank.
Table 1: Total Deposits By Type of Banks (Taka in Crore) Bank Types SCB's SB's PCB's FCB's IB's Total 2005 42585.86 4615.05 19579.86 5651.92 4687.37 2006 46764.43 5395.61 24410.31 6130.53 5947.24 2007 50911.8 5925.36 29150.03 6544.56 7997.62 2008 52792.39 6309.88 35684.24 7894.56 10756.09 2009 57166.9 7681.42 42568.58 8713.41 15764.76 2010 59551.2 8709.42 46911.74 9445.49 16969.11 2011 68200.2 10106.2 72902.4 14988.5 23970.4 190167.7
77120.06 88648.12 100529.37 113437.16 131895.07 141586.96 Source: Scheduled bank statistics by Bangladesh Bank (2005-2011)
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200000
Deposit Amount
180000 160000 140000 120000 100000 80000 60000 40000 20000 0
SCB's SB's PCB's FCB's IB's

2005 2006 2007 2008 2009 2010 2011
Total
Year
Figure 1: total deposits by types of banks Table-1 shows that there was a steady growth of the total deposit of the IBs. The total deposits of Islamic banks were 4687.37 million in the year 2005 that increased to 23970.4 million in the year 2011 showing a growth by almost 400% times within 6 years time. The possible reason for aggregate Deposit of SCBs to be higher than SBs, PCBs, and FCBs & IBs was its vast network and huge number of branches. The amount of deposit of IB is increasing at a rate greater than any other types of banks.
Bank Types SCB's SB's PCB's FCB's IB's Total
Table 2: Market share of deposit by type of banks (percent) 2005 2006 2007 2008 2009 2010 55.22 52.75 50.64 46.54 43.34 42.06 5.98 6.09 5.89 5.56 5.82 6.15 25.39 27.54 29.00 31.46 32.27 33.13 7.33 6.92 6.51 6.96 6.61 6.67 6.08 6.71 7.96 9.48 11.95 11.98 100 100 100 100 100 100 Source: Scheduled bank statistics by Bangladesh Bank (2005-2011)
2011 35.86 5.31 38.33 7.88 12.6 100
2005 60 50 40 30 20 10 0 SCB's SB's PCB's FCB's IB's

Catagories of Banks
2006 2007 2008 2009 2010 2011
Figure 2: market share of deposit by type of banks Table -2 indicates that market share of deposit by the SCBs have been decreasing over the years. It decreased from 55.22% in the year 2006 to 35.86% in the year 2011. Market share of deposit by Special Banks were almost unchanged while that of Foreign Commercial Banks were down until 2010 but increased a bit in. On the other hand during the same period the market share of Islamic banks went up from 6.08% in the year 2006 to 12.6% in the year 2011.
Bank Types SCB's SB's PCB's FCB's IB's
Table 3: Growth of deposit by type of banks (percent) 2006 2007 2008 2009 2010 2011 Average rate of Growth 9.81 8.87 3.69 8.29 4.17 14.52 8.225 16.91 9.82 6.49 21.74 13.38 16.03 14.06 24.67 19.42 22.42 19.29 10.20 55.40 25.23 8.47 6.75 20.63 10.37 8.40 58.68 18.88 26.88 34.48 34.49 46.57 7.64 41.25 31.88
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Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis Total 86.74 79.33 87.72 106.25 43.80 34.31 73.025 Source: Scheduled bank statistics by Bangladesh Bank (2006-2011)
100%
% Market Share
80% 60% 40% 20% 0% 2006 2007 2008 2009 2010 2011 Av g. Growth Year
Total IB's FCB's SB's SCB's
Figure 3: growth of deposits by types of banks Table 3 illustrates that the average rate of growth of deposit of the IBs was highest of all categories of banks. The average growth of deposit for the period under study for SCBs, SBs, PCBs, FCBs, and IBs were 8.22%, 14.06%, 25.23%, 18.88%, and 31.88% respectively. This indicates the trustworthiness of the Islamic banks. In this connection one thing should be kept in mind that is the growth of deposits of conventional banks includes both primary deposits and derivative deposits while the growth of deposits in Islamic banks is based mostly on primary deposits which is very much significant in terms of stability in the price level. Because, while conventional banks expanded their deposits by sanctioning loans and advances, Islamic banks for investment purpose depends mostly on trading mode which create little scope for creating derivative deposits.
Table 4: Total advances/investment by types of banks Crore) 2005 2006 2007 2008 2009 2010
(Taka in 2011 42481.07 12226.49 54035.67 9828.87 20877.67 139449.8
29795.4 32772.85 35586.42 36168.46 38108.89 40245.8 10206.06 10827.64 10921.64 9962.97 10795.33 10637.37 15371.16 19748.07 24112.13 28037.03 32895.81 37388.08 3502.59 3776.65 5092.13 6163.77 6905.16 7819.82 4297.05 5623.87 7318.51 9204.47 13731.62 15641.12 63172.26 72749.08 83030.83 89536.7 102436.81 111732.19 Source: Scheduled bank statistics by Bangladesh Bank (2005-2011)
150000 100000 Advances 50000 0
SCBs SB's PCB's FCB's IB's 2005 2006 2007 2008 2009 2010 2011 Total
Year
Figure 4: advances by types of banks

Table 4 shows a terrific growth of the total investment of the IBs. The aggregate investment of all Islamic banks were 4297.05 million in the year 2005 that increased to 20877.67 million in the year 2011 showing an increase of more than 400% within a short span of 6 years time.
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Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis Table 5: Market share of advances /investment by type of banks (percent) Bank Types 2005 2006 2007 2008 2009 2010 SCB's 47.17 45.05 42.86 40.40 37.20 36.02 SB's 16.16 14.88 13.15 11.13 10.54 9.52 PCB's 24.33 27.15 29.04 31.31 32.11 33.46 FCB's 5.54 5.19 6.13 6.88 6.74 7.00 IB's 6.80 7.73 8.81 10.28 13.40 14.00 Total 100 100 100 100 100 100 Source: Scheduled bank statistics by Bangladesh Bank (2005-2011) 2011 30.46 8.77 38.75 7.05 17.97 100
50 45 40 35 30 % Advances 25 20 15 10 5 0 2005 2006 2007 2008 Year 2009 2010 2011
Figure 5: market share of total advances

Table-5 shows the market share of advances by the SCBs have been decreasing over the years. It came down from 47.17% in the year 2005 to 30.46% in the year 2011. Market share of deposit by Special banks also came down from 16.16% to 8.77%. FCBs and PCBs also registered their growth of market share from 5.52% to 7.05% and 24.33% to 38.75% respectively. But during the period under study Islamic banks altogether grabbed the market share of deposit quite significantly from 6.80% in the year 2005 to 17.97% in the year 2011.
Table 6: Growth of advances/investment by type of banks (percent) Avg. rate 2006 2007 2008 2009 2010 2011 of growth 9.99 6.12 8.59 1.64 5.36 5.61 5.55 6.09 3.33 0.87 -8.78 8.35 -1.46 14.93 28.47 22.10 23.73 16.28 17.33 13.66 44.52 7.82 18.47 34.83 21.05 12.03 13.25 21.86 30.88 30.13 30.56 25.77 49.18 13.91 33.48 83.26 96.52 66.96 55.95 92.26 44.95 28.81 Source: Economic trends by Bangladesh Bank (2006-2011)
150
% Growth
100 50 0 2006 -50 Year 2007 2008 2009 2010 2011
IB's FCB's PCB's SB's SCB's
Figure 6: growth of advances by type of banks
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Table 6 indicates that Growth rate of advances of the IBs was highest of all categories of banks. The average growth of advances for the period under study for SCBs, SBs, PCBs, FCBs, and IBs were 6.12%, 3.33%, 23.73%, 18.47% and 30.56% respectively. This growth rate of advance (30.56%) is very close to their deposit growth rate (31.88%) that is a clear indication of how efficiently and effectively the Islamic Banks can invest their funds for the development of the business and industry.
Table 7: Total business (deposits + advances) by type of banks

(Taka in Crore) 2010 2011
2005
2006
2007
2008
2009
72381.26 79537.28 86498.22 88960.85 95275.79 110681.27 99797 14821.11 16223.25 16847 16272.85 18476.75 19346.79 22332.69 34951.02 44158.38 53262.16 63721.27 75464.39 84299.82 126938.07 9154.51 9907.18 11636.69 14058.33 15618.57 17265.31 24817.37 8984.42 11571.11 15316.13 19960.56 29496.38 32610.23 44848.07 140292.32 161397.2 183560.2 202973.86 234331.88 253319.15 329617.5 Source: Economic trends by Bangladesh Bank (2005-2011)
350000 300000 250000 200000 150000 100000 50000 0 2005 2006 2007 2008 2009 2010 2011 SCB's SB's PCB's FCB's IB's Total
Total Business
Year
Figure 7: total business by types of banks

In the above Fig.7, we notice that total Business of SCBs is higher than any other type of banks, which was reasonably expected because of their vast network. PCBs closely move with NCB in the later part of the period under study. The condition of Islamic banks was relatively better than PCBs, FCBs.
Table 8: Market share of total business by type of banks (percent) Bank Types 2005 2006 2007 2008 2009 2010 SCB's 51.59 49.28 47.12 43.83 40.66 39.40 SB's 10.56 10.05 9.18 8.02 7.88 7.64 PCB's 24.91 27.36 29.02 31.39 32.20 33.28 FCB's 6.53 6.14 6.34 6.93 6.67 6.82 IB's 6.40 7.17 8.34 9.83 12.59 12.87 Total 100 100 100 100 100 100 Source: Economic trends by Bangladesh Bank (2005-2011)
60 50 40
2011 33.58 6.78 38.51 7.52 13.60 100
Market 20 Share 10 of 0 Total Business
30
SCB's SB's PCB's

2005 2006 2007 2008 2009 2010 2011
FCB's IB's
Year
Figure 8: market share of total business by types of banks www.iosrjournals.org 14 | Page

Table-8 shows that market share of total business by the SCBs have been decreasing over the years. It came down from 51.59% in the year 2005 to 33.58% in the year 2011. Market share of deposit by FCBs were almost unchanged while that of SBs were down during the period under study. On the other hand, during the same period the market share of total business by Islamic banks went up from 6.40% in the year 2005 to 13.60% in the year 2011.
(percent) 2011 Avg. rate of growth 9.89 8.75 2.85 7.10 4.75 10.90 7.37 9.46 3.84 -3.41 13.54 4.71 15.43 7.26 26.34 20.62 19.64 18.43 11.71 50.58 24.55 8.22 17.46 20.81 11.10 10.54 43.74 18.65 28.79 32.37 30.32 47.77 10.56 37.53 31.22 82.70 83.04 70.21 97.94 42.26 30.12 67.71 Source: Economic Trends By Bangladesh Bank (2006-2011)
Growth of Business by Types of Banks
Table 9: Growth of total business by type of banks 2006 2007 2008 2009 2010
250 200
Total IB's FCB's
% Growth
150 100 50 0 -50 2006 2007 2008 2009 2010 2011 Avg. rate
PCB's SB's NCB's
Year
Figure 9: growth of business by types of banks Table-9 indicates that during the period under study the growth rate of Total Business of the IBs was highest of all categories of banks. The average growth rate of Total Business for the period under study for SCBs, SBs, PCBs, FCBs, and IBs were 7.37%, 7.26%, 24.55%, 18.65% and 31.22% respectively.
Table 10: Total income by type of banks (Taka in Crore) Bank Types SCB's SB's PCB's FCB's IB's Total 2005 2006 2007 2008 2009 2010 2011 5657.1 1035.2 9615.8 1854.6 2766.0 20928.7
3726.27 3878.16 3665.52 4165.22 4046.13 2343.6 598.45 820.34 636.39 738.53 695.92 665.3 2789.22 3715.6 4557 4506.25 5277 3654.9 967.5 1068.91 1061.9 772.93 997.58 787.6 478.4 605.4 464 1415.2 1939 1174.6 8559.84 10088.41 10384.81 11598.13 12955.63 8626 Source: Economic trends by Bangladesh Bank (2005-2011)
Total Income by Types of Banks
10000 8000 6000 4000 2000
Total Income
0 2005 2006 2007 2008 Year 2009 2010 2011
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Figure-10: Total income by types of banks In the above Fig.10 we find that Total income of PCBs and IBs are relatively higher in recent year. SCBs total income was higher in the past during the year 2005 to 2011. Whereas SCBs total income has a changed drastically in recent years. FCBs also show a positive change.
VI.
PROFITABILITY MEASURES
Profitability is an important index of operational efficiency of an organization. Analysis of profitability of an enterprise provides an insight into effectiveness in utilization of funds in the enterprise & also managerial efficiency. Because of shortage of space we have used only one indicator to measure profitability performance. Table 11: Return On Assets (ROA) By Type of Banks (Percent) 2006 2007 2008 2009 2010 0.06 0.1 0.1 -0.1 -0.1 0.67 0.33 0 -0.2 -0.1 1.12 0.75 0.7 1.2 1.1 2.8 2.36 2.6 3.2 3.1 1.57 1.95 1.25 1.34 1.56 0.69 0.52 0.5 0.7 0.8 Source: Economic trends by Bangladesh Bank (2006-2011)
SCB's SB's PCB's FCB's IB's Total
2011 .1 .87 .83 3.6 1.57 .09
The above Table-11 furnishes that SBs, SCBs have a very negligible return on assts. In recent time they have negative ROA. FCBs ROA is higher than any other bank. IBs and PCBs have a moderate but consistent return on assets that indicate their efficient management of fund. VII.
MANAGEMENT SOUNDNESS MEASURE
Bank Types SCB's SB's PCB's FCB's IB's
2005
Table 12: Total expenditure to total income ratio by type of banks 2007 2008 2009 2010 2006 0.96 0.90 0.71 0.55 0.80
0.93 1.18 0.80 0.54 0.64 0.93 1.04 0.74 0.33 0.86 0.92 1.12 0.67 0.34 0.87 0.93 1.22 0.73 0.47 0.75
2011 0.80 1.06 .73 .33 .81
0.95 1.28 0.74 0.57 0.83
Source: Economic trends by Bangladesh Bank (2005-2011)
Ratio
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2005 2006 2007 2008 Year 2009 2010 2011
Figure12: Expenditure-Income ratio by types of banks In the above Fig.12 indicates that both IBs and PCBs have a balanced income-expenditure ratio. Whereas SCBs and SBs have higher expenditure than their income causing accumulated loss and creating www.iosrjournals.org 16 | Page

burden for the national economy. FCBs expenditure-income ratio is comparatively lower that indicates their high profit margin and less commitment to the people and the economy.
VIII.
SOCIAL PROFITABILITY MEASURES
Social Profitability implies the contribution of a bank to the society. SCBs are mainly guided by social considerations. It constitutes an integral part of performance dynamics. Creation of employment, Expansion of branches etc are the key indicators of social profitability measures. % Market Table 13: Market share of branches by type of banks Share
(percent) 2011 51.57 20.63 22.55 0.73 4.52 100
2005 2006 2007 2008 2009 2010 Bank Types 58.96 58.33 55.90 54.71 54.14 53.62 SCB's 19.82 19.67 21.02 21.16 21.22 21.11 SB's 17.81 18.42 19.32 19.29 19.54 20.16 PCB's 0.56 0.53 0.50 0.52 0.59 0.62 FCB's 2.84 3.04 3.26 4.32 4.51 4.48 IB's 100 100 100 100 100 100 Total Source: Economic trends by Bangladesh Bank (2005-2011)
60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011
Year
Figure 13: Market share of total branch by types of banks The above Fig.13 shows that SCBs Market Share of total number of Branches has a slight declining trend but not alarming. SBs, FCBs & PCBs have an increasing trend in the market share of number of branches but the market share of Islamic banks increased quite significantly from 2.84% in 2005 to 4.52% in 2011.
Table 14: Total employment by type of banks 2006 2007 2008 2009 61325 16164 23521 1588 4547 60169 16475 23279 1305 5057 58629 15837 25980 1409 6596
Bank Types SCB's SB's PCB's FCB's
2005
62091 16036 22072 1280 3903
57894 15300 26640 1508 7440
2010 56797 15153 20367 1776 7907
2011 54591 15456 32671 2139 10793 115650
Total
105382
107145
106285
108451
108782 102000
Source: Economic trends by Bangladesh Bank (2005-2011)
120000 100000 80000 60000 40000 20000 0 2005 2006 2007 2008 Year 2009 2010 2011 SCB's SB's PCB's FCB's IB's Total
No. Of Employees
Figure 14: Total employment by types of banks www.iosrjournals.org 17 | Page
Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis The above Fig.14 shows that SCBs and SBs total number of employees have a declining trend over the period under study. FCBs have an increase in number of employment during 2005-2011 by 42% while IBs got the highest increase of employment (150%) during the same period. Table 15: Rural branches to total branches ratio by type of banks Bank Types 2005 2006 2007 2008 2009 2010 SCB's 62.97 62.98 62.30 63.20 63.37 63.37 SB's 87.63 87.75 88.55 88.58 88.63 88.68 PCB's 25.60 25.81 25.83 26.21 26.74 25.82 FCB's 0.00 0.00 0.00 0.00 0.00 0.00 IB's 25.86 25.53 25.62 25.75 25.89 25.80 Source: Economic trends by Bangladesh Bank (2005-2011)
2011 63.42 88.63 27.48 0.00 25.73
100 80 Number 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 Year SCB's SB's PCB's FCB's IB's
Figure 15: rural branches-total branches ratio by types of banks The above Table-15 shows that SCBs and SBs still dominant in maintaining rural branches. FCBs do not have any play in the rural areas. IBs and PCBs on the other hand have almost identical trend of maintaining rural branches in comparison to their urban branches.
IX.
CONCLUSION
My analysis on the factors of the performance clearly shows that during the period of study, the Islamic banks in Bangladesh were doing better in terms of deposit level, market share & performance & it is growing in respect of most of the indicators of banking performance analysis. It was possible partly because of the full of commitment and sincerest effort both from management and employees of Islamic banks and partly because of the huge friendly and motivated customer of Islamic banking system. The FCBs are totally absent in the rural area which means their aversion to risk. But those banks should be provided with incentives from the Bangladesh bank to contribute to the rural development process. Banks are also being CAMEL rated on the basis of performance so that those can be taken under supervision by BB. This supervision is not only for the banks themselves but also to safeguard the depositors interest.
X.
ACKNOWLEDGEMENTS
At the outset, all praise be only to Allah, the Omnipotent to accept this effort and to consider it for His sake only without whose grace this work would have not been accomplished. I would like to acknowledge with thanks all the institutions and individuals who helped me by providing resources, efforts and intellectual capital that resulted in this paper and comments published in this volume. I owe my greatest debts & thanks to my beloved wife Mahbuba Anwar, for her truly extra ordinary patience and emotional support. Last, but not the least, for any sort of error and omission in this research, I hold myself fully responsible.
References
[1] [2] [3] [4] [5] [6] [7] Shah Johir Rayhan, Performance Evaluation and Competitive Analysis of State Owned Commercial Banks in Bangladesh, Research Journal of Finance and Accounting, Vol 2, No 3, 2011 Dr. Tanbir Ahmed Chowdhury, Performance Evaluation of Agricultural Banks in Bangladesh, International Journal of Business and Management, Vol. 6, No. 4; April 2011 Financial sector review, Vol II, No 2, Policy Analysis Unit, Bangladesh Bank, Dhaka, BB 2007 Annual Report 2005-2011, Bangladesh Bank, Dhaka, BB 2011 BB, various issues, Economic Trends, Statistics Department, Bangladesh Bank, Dhaka. BB ,various issues, Bangladesh Bank Quarterly, Bangladesh Bank, Dhaka. BB ,various issues, Scheduled Banks Statistics, Statistics Department, Bangladesh Bank, Dhaka.
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[8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] BB, Agricultural Credit and Special Programs Department, Bangladesh Bank, Dhaka. Major Economic Indicators: Monthly Update, December, Monetary Policy Department, Bangladesh Bank, Dhaka BB 2007 DSE various issues, Monthly Review, Dhaka Stock Exchange, Dhaka. Garuda, G,' The Distributional Effects of IMF Programs: A Cross Country Analysis', World Development, 28, 2000 GOB, National Budget 2007-08, Ministry of Finance, Government of the People's Republic of Bangladesh, Dhaka, 2007 GOB, Report of National Taskforce on SME Development in Bangladesh, Ministry of Industries, Government of the People's Republic of Bangladesh, Dhaka. IMF, International Financial Statistics, International Monetary Fund, Washington, D.C, 2007 IMF, World Economic Outlook, October, International Monetary Fund, Washington D.C, 2007 IMF, Global Financial Stability Report, October, International Monetary Fund, Washington D.C, 2007 Roe, A. and Peachey, Bangladesh: Reducing Interest Rate Spreads, Scoping Report, Dhaka, 2005 SEDF, South-Asia Enterprise Development Facility (SEDF) website, 2006
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An Empirical Study on Perception of Corporate Professionals towards Individual Work Vs Group Work
Varalakshmi .T
Lecturer, MBA Department, DonBosco Institute of Biosciences & Management Studies, Bangalore, India
Abstract: In a wide variety of organizational settings, Organizations generate a number of possible solutions to
a problem; Here we examine the effectiveness of two creative problem solving processes for such tasks - one, where the group works together as a team (the team process), and the other where individuals work alone. The concepts of teamwork have penetrated nearly every segment of the business world in recent decades as a sign of efficiency but most of the times teams doesn't produce the required results as the group members remain focused on their individual needs and give rise to group conflicts. This is why the reasons many corporate professionals like to work alone which makes them more authenticate, elated and give recognition to their individual efforts. What therefore seems relevant by the study is How the corporate professionals perceive themselves being a team member or an individual performer? - "Which are better at performing tasks? - groups or individuals Keywords: Creativity, Brainstorming, Innovation, Team, Group, Team process, Individuals, Efficiency.
I.
Introduction
The value of the collaborative effort (teamwork) in business has gained significant popularity in the recent past. More and more businesses are introducing teamwork as a sign of efficiency in their production processes for improved quality. An obvious advantage of team work is the higher resources of a team as compared to the individual. A collection of individuals who have regular contact and frequent interaction, mutual influence, common feeling of camaraderie, and who work together to achieve a common set of goals. Success depends on group work' - we cant reach this conclusion too hastily, Teams are not appropriate for all organizations or in all types of businesses. In reality, the teamwork approach does not always work well. Apollo Syndrome is a good example of this - where a team composed of highly intelligent people often performs worse than teams made of up of less capable members. There are some corporate professionals who would like to work alone, especially (i) when group members are not cooperative, (ii) when task demands high degree of concentration, (iii) when individual performance has to be recognized, (iv)when an individual has to work at their own pace & (v) when the group members tend to escape from their work. 1.1 Individual Work Vs Group Work Registering a dramatic change, from the more overtly authoritarian structure of traditional firms to democratic style, companies have focused on group work for the following reasons. In order to be open to creativity, one must have the capacity for constructive use of solitude. One must overcome the fear of being alone. ~Rollo May 1.1.1 Advantages of Being A Team Member 1. Varied cultures, age groups, gender, etc all add to the diversity of group which gives us varied perspectives and enhances the ideologies. 2. An individual may forget a particular piece of information, but as there are a number of people involved here, there is the combined memory of all members to recollect data. 3. As everyone has made some contribution to the decision, people tend to accept the collective decisions. 4. The members together come to a decision after much deliberation and discussions and so everyone has a better understanding of the course of action to be followed. 5. With so many people involved, more creative and innovative solutions to problems may emerge than an individual may have been able to develop. 6. There are a number of people involved, so no one person has to shoulder the burden of work or of single handedly making a decision. 1.1.2 Advantages of Being An Individual Performer But working in groups is not always a pleasant job. Anyone who ever had to coordinate activities and come to decisions in conjunction with other people always like to work as an individual for the following www.iosrjournals.org 20 | Page
An Empirical Study on Perception of Corporate Professionals towards Individual Work

reasons. 1. Working alone gives more autonomy and power to decide. it enables acting according to one's judgment without facing criticism. 2. Entire responsibility lies in one hand, Hence an individual can set his own standards. 3. Results in self satisfaction and recognition of individual performance. 4. It helps an individual to connect with himself and assemble thoughts and ideas in a way that's unique to him.
II.
Objectives Of The Study
With the backdrop, the present study mainly focuses on achieving the following specific objectives: 1. To know how the corporate professionals perceive working in groups. 2. To study which is more productive being an individual performer or a team member. 3. To identify the factors that determines the employees perception to work alone.
III.
RESEARCH GAP
The above research study spotlights the two different but related areas (i) performing individually & (ii) performing as a team member. Furthermore, study was undertaken to investigate the area having high perceived value according to corporate professionals i.e., whether they prefer to work individually or as a team member.
IV. LITERATURE REVIEW Arthur Friedrich (2011) The value of a contributor decreases disproportionately with each additional person contributing to a single project, idea, or innovation. Cannon-Bowers, Tannenbaum, Salas, and Volpe, (1995) Individual competencies are those requirements that are needed for effective individual performance. Huey and Wickens (1985) The decomposition of teamwork competencies like, knowledge, skills, and attitudes, begins to open the door for understanding the relationship between human performance at different levels. Jeffrey Stibel (2011) Great individuals are not only more valuable than legions of mediocrity, they are often more valuable than groups that include great individuals. Katzenbach (1998) Individuals are more authenticate when they work alone as they have complete autonomy in determining how a task should be done. Livingstone and Lynch (2000) The composition of the group is a key consideration when choosing group work. Napier & Gershenfeld, (1999) Group members remain focused on their individual needs and conflict in the group increases, and the group members blame others for failures. Robbins and Finley, (2000) Group work is used for many reasons: to manage a large cohort; to develop appropriate skills in collaboration; to simulate a real work environment; etc, and is considered by some to lead to greater efficiency and effectiveness whilst others believe that teams are inherently inferior to individuals, in terms of efficiency V. RESEARCH METHODOLOGY This present research study was done using primary data. The instrument used to collect the data was online survey with a Structured Questionnaire. The data was collected from 3 different companies 1 and hence finally 106 employees were chosen as respondents through Convenient Sampling Method. The required data was captured and appropriately analysed by divided it into three different parts Part A - Chi square test to find out the relationship between the underlying dimensions & the preference of the respondents. Part B - Weighted Average Method & Ranking Method to know the factor which motivates the respondents to the highest resulting in their positive preference towards group work. Part C - Simple Average Method to know which is more advantageous & effective whether it is being a team member or an individual performer.
The data required for the analysis was collected from 3 different companies like, Accenture, Infosys & J.P. Morgan employees. www.iosrjournals.org 21 | Page
An Empirical Study on Perception of Corporate Professionals towards Individual Work VI. ANALYSIS AND INTERPRETATION
Table-1 Demographic profile of the Respondents No. Category Respondents Male 68 Female 38 Total 106 Below 25 yrs 25 35 yrs Age 35 45 yrs 45 55 yrs Above 55 yrs Total Married Marital Status Unmarried Total Graduation Educational Qualification Post Graduation Total Service / IT Sector Industry Manufacturing Sector Total Below 2.5 Lakhs Income (p.a) 2.5 3.5 Lakhs Above 3.5 Lakhs Total 60 38 02 02 04 106 36 70 106 50 56 106 92 14 106 54 20 32 106 of Percentage (%) 64.15 35.85 100 56.60 35.85 1.89 1.89 3.77 100 33.96 66.04 100 47.17 52.83 100 86.79 13.21 100 50.94 18.87 30.19 100
Demographic factors Gender
Table 1 indicates that (i) 64.15% of the respondents are male and the rest are female. (ii) Majority of the respondents i.e., 56.60 are below the age group of 25 yrs, where as 35.85% fall into the category of 25 -35 yrs rest are the respondents who are above the age group of 35 yrs. (iii) Nearly 66.04% of the respondents are unmarried and the rest are married. (iv) 52.83% of respondents are qualified with Masters Degree where as remaining 47.17% are only Under Graduates. (v) Among the respondents 86.79% are the employees in service / IT sector, remaining 13.21 are engaged in manufacturing sector. (vi) Majority of respondents fall into the income bracket of below 2.5 Lakhs p.a, 18.87% between 2.5 3.5 Lakhs remaining earn above 3.5 Lakhs p.a. PART A Table-2 Reasons as to why the respondents prefer individual work rather than group work H0 = There is no significant difference between the respondents preference towards Group work that it is impacted by the factors like task definition, confusion, less co-ordination. H1 = There is significant difference between the respondents preference towards Group work that it is impacted by the factors like task definition, confusion, less co-ordination.
Parameters Task not clearly defined Time Consuming O 06 20 E 21.2 21.2 (O E) 15.2 - 1.2 (O E)2 231.04 1.44 (O E)2 / E 10.89 0.07
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Confusion in assigning the work Less Co ordination b/w team members Non recognition of individual performance Total 14 21.2 - 7.2 51.84 2.45
32
21.2
10.8
116.64
5.50
34 O 106 =
21.2 E = 106
12.8
163.84
7.73
cal
26.64
The above table shows that, there is a significant level of inclination of the respondents towards group work, as (i.e., 26.64 > 9.488) Hence, H0 is rejected at 4 degree of freedom & 0.05 of level of significance. Table-3 Level of relationship between level of Creativity and Innovation fostered due to Individual work. H0 = There is no significant level of relationship between level of Creativity and Innovation fostered due to individual work. H1 = There is significant level of relationship between level of Creativity and Innovation fostered due to individual work. Parameters O E (O E) (O E)2 (O E)2 / E Strongly 10 21.2 - 11.2 125.44 5.91 Agree Agree 40 21.2 18.8 353.44 16.67 Neither Agree nor 38 21.2 16.8 282.24 13.31 Disagree Disagree 18 21.2 - 3.2 10.24 0.48 Strongly 0 21.2 - 21.2 449.44 21.2 Disagree = cal 57.57 The above table shows that, there is a significant level of inclination of the respondents towards group work, as (i.e., 57.57 > 9.488) Hence, H1 is accepted at 4 degree of freedom & 0.05 of level of significance. Table-4 Preference of Corporate professionals towards Group work H0 = There is no significant level of inclination towards group work. H1 = There is significant level of inclination towards group work. Parameters Group Conflict Social Loafing Shared Responsibility Role Ambiguity Feel Secured Base for Social contact O 06 18 62 08 06 12 06 E 17.7 17.7 17.7 17.7 17.7 (O E) - 11.7 0.3 44.3 - 9.7 - 5.7 (O E)2 136.89 0.09 1962.49 94.09 32.49 (O E)2 / E 7.733 0.005 110.88 5.34 1.84 Total O = 106 E = 106
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= cal 125.80 Here as the cell frequencies are less than 5, Pooling Method of Chi square distribution is used. The above table shows that, there is a significant level of inclination of the respondents towards group work, as (i.e., 125.80 > 11.070) Hence, H0 is rejected at 5 degree of freedom & 0.05 of level of significance.
2
Total
O = 106
E = 106
PART - B Table - 5 Motivating factors for Corporate Professionals to prefer Group work Neither Agree nor Disagree R a n k II
Parameters Working in a team boosts self confidence & self esteem Best way to reach their goals is thr team work Working in a team makes employees fell more authentic Brain storming in a group is more effective than Brain storming alone.
Strongl y Agree
Agree
Disagree
Strongly Disagree
Total Score
46
44
06
08
02
442 (25.67)
26
48
22
04
06
402 (23.34)
I V
34
48
18
04
02
426 (24.74)
II I
54
36
08
06
02
452 (26.24)
In the above table, different motivating factors favoring group work were given a weighted average. Starting from Strongly Agree to Strongly Disagree following the weights 5 1 respectively. The overall view of the above table indicates that, Brain storming is one of the very important factor which motivates the respondents to prefer group work as it has highest ranking with 26.24% followed by self confidence & self esteem with 25.67%. Authenticity stands in the third position with 24.74%. Finally group work as the better way to reach individual goals with 23.34%. PART - C Table - 6 Comparative Analysis between Individual work & Group work Parameters Individual work Group work Supports improved productivity & Quality 24 82 assurance Decision is most effective & 26 80 efficient More Advantageous 24 82 74 244 Total Calculation of Average no. of respondents favoring individual work vs. group work (i) Individual work = 74/3 = 24.6
2
Comparative Analysis was undertaken to know the factor having high perceived value, whether it is working alone or as a team member. www.iosrjournals.org 24 | Page

(ii) Group work = 244/3 = 81.3
The above table of comparative analysis indicates, that Group work is more advantageous & effective in terms of Decision making, Higher productivity & Improved Quality than Individual work as more no. of respondents (i.e., 81.3) prefer Group work as a best way to reach individual goals and finally succeed in their professional life.
VII.
Findings
Based on the summary of the analysis & interpretation of the above data, the following findings are compiled: 1. Majority of the respondents are Male & fall into the category of below 25 yrs. 2. Most of them are post graduates employed in service / IT sector thereby earning below 2.5 Lakhs p.a 3. Reasons as to why the respondents prefer to be an individual performer is a.Confusion in the work assigned b.less coordination between team members c. Non recognition of individual performance. 4. Respondents who agree as well as disagree in their opinion that the level of relationship between level of Creativity and Innovation fostered due to individual work are in equal no. 5. Majority of the respondents have positive preference towards being a team member as it results in shared responsibility. 6. It is the Brainstorming session followed by self confidence & self esteem that will be boosted up in group work which motivates the employees to the higher extent to prefer group work. 7. Its nearly 81.3% of respondents out of 106 who prefer group work & only minimal no. (i.e., 24.6%) who prefer to be an individual performer. 8. Both the individual work as well as group work both has its own pros & cons.
VIII.
Suggestions
Success behind these concepts of individual work or group work entirely depends upon the employees, as to how they would behave when they are a team member or an individual performer & what kind of attitude they hold towards these concepts. In light of this fact I would recommend the following suggestions to the corporate professionals: 1. Colleagues at their work centre should be well behaved, civilised & possess a character of good conduct with respect to the initial step of Gel - up with the other employees, working together towards the progression & contributing for the welfare of the company if the team work has to succeed. 2. In a Team work, there are few essential points to be kept in mind. a) Difference of opinion may arise amongst employees in terms of ideas, innovation, discovery & as on. Each one should be given a chance to exhibit their talent, capabilities which are beneficial to the organisation.All should adhere to their consent after a discussion amongst them based on judgement. (Right or wrong) b) Under estimating, rejecting or refusing will lead to conflicts & create an unhealthy environment. Hence the Team Lead (TL) should be very cautious about these things. c) All should be treated uniformly by avoiding the feeling of inferior or superior complexities which may arouse amongst working in a cluster of employees. 3. Finally, Unity is strength - holds good, only when all the team mates give up their ego, arrogance, being adamant, unfaithful to each other, concealing the facts that needs to be shared, grudge, envious & so on which can never form a healthy, inspiring, well-built, & a friendly team. Infact, each & every employee should show & take their personal interest, dedication, determination towards their work assigned to them. Employee-Employer relationship should also be in good terms. www.iosrjournals.org 25 | Page

Uniformity, Unity, toil... builds a better team
IX.
Conclusion
Differing personalities, tension for resources, conflict are all part and parcel of organizational life. If you want a high performance team it is imperative that you provide each and every person in the team with the skills to hold challenging and difficult conversations, to negotiate differences, to provide performance improvement feedback. In case if you expect to be an individual performer see to that you handle all the responsibilities well, without giving any chance for others to win over you or else blame you. Because Coming together is a beginning. Keeping together is progress. Working together is success ~Henry Ford
X.
Aknowledgement
I am Varalakshmi .T, Lecturer in DonBosco Institute of Biosciences & Management Studies, Bangalore, India. I assure that this is my original Study and the findings and suggestions of the above article are genuine.
References
[1] [2] [3] [4] [5] [6] [7] [8] Cannon-Bowers, J.A., Tannenbaum, S.I., Salas, E., and Volpe, C.E. (1995) Defining Competencies and Establishing Team Training Requirements in Team Effectiveness and Decision Making in Organization. Huey, B.M. and Wickens, C.D. (1995) Workload Transition: Implications for Individual and Team Performance. National Academy Press: Washington, DC. Katzenbach, Jon R., ed. The Work of Teams. Cambridge, MA: Harvard Business School Press, 1998. Livingstone, D. & Lynch, K. (2000), Group Project Work and Student-centred Active Learning: two different experiences in Studies in Higher Education, V25, No 3, October 2000, pp. 325-345. Napier, W.N. & Gershenfeld, M.K (1999), Groups: Theory and Experience. Sixth Edition. Boston: Houghton Mifflin. Robbins .H & Finley .M (2000), Why Teams Dont Work: What went wrong and how to make it right. West, Michael A. (1994), Effective Teamwork. The British Psychological Society. Websites-http://blogs.hbr.org/cs/2011/06/why_a_great_individual_is_bett.html
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Turnaround Management through Internal Corporate Venturing: A Case Study of a Seafood Company
Dr. Shilpa Varma 1, Dr. Rashmi Gopinathan 2
1, 2
(Department of Business Management, Padmashree Dr. D.Y. Patil University, India)
Abstract: New business creation is influenced by the five industry and competitive forces proposed by Michael
Porter i.e. bargaining power of customers, bargaining power of suppliers, threat of new entrants, threat of substitutes and intensity of competitive rivalry. There is a need for fostering innovation in the light of current competitive realities. Hence the key to success for any organization in the present competitive and dynamic environment is the need to adopt an entrepreneurial strategy by inducing intrapreneurial culture through internal corporate venturing and innovation . Growth of any organization is possible by effectively identifying and exploring opportunities that are market driven. This paper attempts to highlight as to how any innovation- be it product, process, material or any other type- can be converted into a sustainable competitive advantage to build a firm standing in the arena of business. In order to conduct the research the researchers have adopted a Case Study approach. In this particular study it was observed that the turnaround of the company was based on the innovative mindset of the intrapreneurs. This is done by studying and analyzing the innovation and success of Gadre Marine Export, Mirkarwada, Ratnagiri - Maharashtra. Keywords - Imitation crab stick, Internal Corporate Venturing, Intrapreneurship, Seafood industry, Surimi, Surimi Analogues. I. Introduction In a world of ever increasing global economy, the idea of corporate entrepreneurship has become a topic that leaders and managers must not only be aware of conceptually but also understand in order to be able to strategize and position for organizational viability. As a growing competitive advantage for organizations, succeeding in corporate entrepreneurship is a necessity in todays market place. In or der to succeed, the organization must set a vision that encourages growth, rewards risk taking and leverage innovation by adapting to the very changing global economy. The key success to any organization in the present competitive and dynamic environment is the need to adopt an entrepreneurial strategy seeking competitive advantage through continuous innovation by effectively identifying and exploiting opportunities in order to sustain and grow. 1.1 Intrapreneurial base in an Organization The notion of Intrapreneurship is typically associated with new business creation, new product development and offerings by individuals. With the onset of intensifying global competition there is an increasing need for business organizations to become more intrapreneurial to not only survive but to thrive and prosper. Hence corporate entrepreneurship has become an important paradigm in todays business environment. Corporate Entrepreneurship is a much broader concept encompassing innovation, creativity, change and regeneration within the corporate climate or entire organization. Intrapreneurship base in an organization is a concept by which corporate employees at any level of the company identify and construct a unique business model that offers significant growth opportunities for their company. 1.2 Internal Corporate Venturing (ICV) for Sustainability Out of the various models of successful corporate entrepreneurship, the most widely accepted one is the Burgelmans Process model of ICV (Fig. 1)
Source: Corporate Entrepreneurship, Effective Executive, The ICFAI University Press, April 2007. Fig.1: Burgelmans Process model of Internal Corporate Venturing www.iosrjournals.org 27 | Page
Turnaround Management through Internal Corporate Venturing: A Case Study of a Seafood Company As shown in the model, while going for internal corporate venturing, the key activities of the top management include rationalizing and structuring the plan of the new venture. The key activities of middle management or the new venture development management team are strategy building and delineating for the business activities. At the functional level, the group leader or the venture manager has to establish a link between technical requirements and need of the customer and strategically forcing the idea for adoption. There is also an overlap between the top and the middle management in terms of selecting the business plan or people and between middle management and lower management where both of them can act as a product champion. Burgelman was of the view that the motor of corporate entrepreneurship resides in the autonomous strategic initiatives of individuals at the operational levels in the organization. Therefore, organizations can build a competitive advantage by nurturing the people at the operational level. 1.3 Sustainability and Innovation An Organization can utilize innovations in all phases of its life. However most of the innovations take place when the organizations want to increase the competitiveness in the marketplace. Such innovations are generally of two types- Product Innovation and Process Innovation- both these innovations in the long run result in being Customer Centric and thus result in an increasing profit (Gopal, 2007). Implementing the innovation and leveraging the same essentially calls for two broad strategies: 1. The entrepreneur himself takes the risk and steers the organization in that direction with the support of employees. 2. The entrepreneur in consultation with the functional line managers invites a product, process or structural innovation leading to successful business plan and calculated risk. Strategically after a product has been established in the market place innovations occur when the entrepreneur desires to increase his sales which he achieves through product innovation. This strategically helps in an increase in the market penetration. With the objective of understanding all these aspects a study was conducted with special reference to the seafood industry.
II.
Rationale of the Research
The seafood industry in India is primarily an export based industry but also an industry which gives least preference to the area of innovation. A majority of companies are driven by the owners and their mindset for quick profits rather than emphasis on growth through innovation. Hence there is practically no evidence of the concept of ICV being applied. This study is an effort to explore the application of the ICV model in the seafood industry in India and its success or otherwise.
III.
Objective of the Research
It has been seen that the seafood industry has great potential for economic contribution by innovation of product or process. But no adequate study has been undertaken till now to understand the importance of innovation in product or process in the seafood industry. The objective of the study was 1. To understand the strategic benefits of Internal Corporate Venturing and innovation. 2. To study the key strategy of the management of Gadre Marine Export for rejuvenation. 3. To highlight the role of intrapreneurial innovation in successful Internal Corporate Venturing w.r.t. Gadre Marine Export. 4. To present the findings of the case study to encourage Indian seafood exporters to leverage innovations for successful intrapreneurial skill sets.
IV.
Research Methodology
An in-depth desk research through secondary data was conducted to understand the various aspects that are involved in the success of corporate entrepreneurship through innovation. Secondary data was also used to acquire an overview of the Indian seafood industry. Several reference books, MPEDA (Marine Products Export Development Authority of India) Journal, FAO Yearbook of fisheries Statistics, project reports of Surimi and Surimi Analouges (by Gadre Marine Exports) were referred to. In addition several newspaper articles as well as websites were searched. Field research comprised of detailed discussions by the authors with knowledgeable persons in the seafood Industry. A questionnaire was used for the discussion but this had to be discarded as exploratory research had to be undertaken. Later a pointer method had to be adopted to get a better perspective of the industry and its drivers. The main pointers used were: Factors which drive the seafood industry www.iosrjournals.org 28 | Page
Turnaround Management through Internal Corporate Venturing: A Case Study of a Seafood Company Problems faced by seafood exporters with special focus on Gadre Marine Exports Innovations used by the seafood exporters Strategic Leveraging of innovation A total of 50 knowledgeable persons were contacted. These comprised of: 15 persons from MPEDA (Marine Products Export Development Authority of India) 5 seafood exporters (Allana, FourStar, Chirag, CastleRock, Naik Seafood Exporters) 25 fisheries technologists from Gadre Marine Exports 10 persons who are importers of seafood products from Gadre Marine Exports
V.
5.1
Status of Seafood Exporterss in India
Steady Growing World demand for Seafood Year after year, since the end of World War II, human beings all over the world have increased their consumption of seafood. The production of seafood has grown from 19 million tones in 1950 to 39 million tones in 1961 and to 130 million tones in 2001. It represents a continuous increase at a yearly rate of 3.84 percent in average.
Source: FAO year book of Fishery Statistics, 2000-2001 India is the third largest fish-producing nation in the world, exporting to 73 countries. It has the potential to grow further in view of the growing demand in trading blocks such as the European Union, United States, Canada and Middle East. There has been huge transformation in the Indian seafood industry over the last few years many of which have not been highlighted or marketed in the international arena. In 1997 the EU banned Indian seafood, citing lack of hygienic and phytosanitary measures in the industry, this was a landmark as thereon India has come a very long way. The challenge was on and India spearheaded quality control and HACCP was put into place. Today we have excellent facilities, competitive labour and our infrastructure is catching up fast. Buffeted by the US anti dumping duty, Indian shrimp export is in a major revamp mode. Most of the top and middle level companies are going in for value added products to also create a niche in the global market and control cost effectiveness.
Source: www.seai.in/files/.../export%20performance%202011-12.pdf Table 1: Overall export of Marine products
5.2
Main Drivers for the Seafood Industry www.iosrjournals.org 29 | Page
Turnaround Management through Internal Corporate Venturing: A Case Study of a Seafood Company As per the discussions held with the various respondents and an analysis of the information collected by the authors, the following drivers (Strategic/Critical Factors) for the seafood industry were highlighted: The quantum of the catch Quality as per EU standards Marketing and Promotion Technology Customer Relationship Management
VI.
Gadre Marine Exporters: Innovators of Value added Product Surimi and Surimi Analog Products
Gadre Marine Processing Unit, Mirkarwada, Ratnagiri, was started in 1978 under the proprietorship of Shri Deepak P. Gadre. Initially the unit was processing prawns to export the same to Japan and various countries. The same was done from 1978 to 1993 but it did not prove to be economically successful and financially viable as was conceived originally. The unit had to face acute financial crisis and to recover it had no other alternative but to search for alternative methods in the same line of verticals. During this decline phase the entrepreneur along with his technical team looked for innovative methods to rejuvenate the existing business. The entrepreneur along with his team directed their attention to use materials which were available at lower cost and started exporting frozen fish namely Ribbon fish and Dhoma which were hitherto considered to be waste in India to S.Korea, Hongkong and Chin. The curiosity of this export process turned the entire organization to intrapreneurship which further lead to bring in the product and process innovation of Surimi -fish paste. In 1992-93 the entrepreneur visited South Korea to have a close look at the process and equipment required for manufacturing Surimi. In 1994 the first India Surimi production unit was set and GME dominated the market as Surimi manufacturers. There was a monopoly by them as suppliers from Indian market globally till 2000 after which there were followers for the innovation like HLL. Surimi was produced basically by using fish varieties which were not normally eaten in India and which were thrown back into the sea as thrash. The innovation further continued where other marine exporters were thinking of investing in Surimi plant GME further geared up to meet fresh challenges for value addition by manufacturing Imitation crab sticks from Surimi which had great market in USA and Europe. Constant up gradation and innovation has helped GME to obtain the status of 100% EOU with export house status from government. It also has the certification of HACCP & EU. Exports have been growing at a faster rate than the production. Table I gives the year wise turnover of the Unit and the Combined Annual Growth Rate. Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Financial year Production Quantity in MT. 91.32 2782.61 3890.00 5349.38 4647.54 3663.54 5826.74 8691.04 10248.16 12489.35 11576.70 13463.73 13031.90 13673.26 47% Export Turnover F.O.B. Rs.in Lacs. 21.05 938.46 1570.77 2015.76 2221.81 1833.04 3526.38 5325.54 5966.01 9077.45 6590.59 8531.37 7694.05 8137.22 57%
1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 CAGR Source: Industry Sources Table 2: The yearwise turnover of the Unit
VII.
Analysis and Findings
A detailed analysis of the strategies used by Gadre Marine Exports helps in revealing the following three Phases of Innovation in the Company. 7.1 Innovation: Phase I www.iosrjournals.org 30 | Page
7.2
Turnaround Management through Internal Corporate Venturing: A Case Study of a Seafood Company A careful analysis of all the situational factors by the company officials lead to the realization that Ribbon fish and Dhoma which were considered as waste fish in India and thrown back into sea had a vast potential in the Global market. This was never tapped by any Indian Seafood exporter earlier. These fishes were bought at very low price as they did not have any market in India. They were sold at cost benefit price to S.Korea,Hongkong, China and other countries.
Innovation: Phase II Success in the export of Ribbion fish and Dhoma by the entire production unit lead to the path way of innovative product and process. This led to the innovative idea of using the minced meat of thrash fish likeDhoma, ribbon fish, lizard fish, Rani, etc. to prepare a delicacy product known as Surimi(a Japanese term for purified fish i.e. skinless, bonless, fatless) is manufactured from fish and used for making various Surimi Products. The entire unit was involved in study of the new product, process, equipment and training required for the venture. 1994: the first surimi plant was set up in India Gadre Marine Exports became the first Indian Exporters in the global market. The product Surimi product was exported to S.Korea,Japan,Australia,Taiwan, European countries and USA market The company applied for and achieved the Status of 100% EOU,Certification of HACCP &EU Gadre Marine Exporters had the Monopoly as suppliers for Surimi from Indian market till 2000. 7.3 Innovation: Phase III Further innovation was Creating Surimi analogues. Surimi Analog Products are manufactured in various flavours and varieties from Surimi and other eatables and consumed mainly as salad. Imitation crab sticksis one of the most popular products and hence the highest revenue generator for the company. GME became the first Indian entrant in the global market for exporting Surimi Analogs in 2001. When competitors were working on Surimi, Gadre Marine Exports worked on the analogues. VIII. Learnings A detailed analysis of the three Phases of innovations and the discussions with the respondents indicated the following strategic factors for bringing about continuous innovations leading to competitive advantage and enhancement in the core competencies of the business: 1. Identifying and serving customers in a way that is distinct from competitors. 2. Ability to exploit business opportunity when it arises. 3. Right attitude of entrepreneur and the organisational employees. 4. Loyalty of Key Employees who see benefit in long term commitment of the business. 5. Lower cost of capital: Reinvestment of profits back into the business. 6. Keeping strategies well guarded. 7. Flexibility to leverage innovation. 8. Customer service which are closely tied. Through innovation as a strategic tool there were positive outcomes at several stages and GME created successful corporate environment and growth in business: Total turnaround in the business where the ROI increased every year. Cost effective operation, as very low cost fish which were considered as thrash were utilized for creating a new product. Delivering the product in the individual brand name in the global market which was a very rare achievement in the seafood industry could be made possible because of very few suppliers for the surimi product in the global market. Setting up the first Indian Surimi plant and creating a business model for the other seafood exporters. Creating a niche for themselves not only in the South Asian market but also in the European and American market which is very difficult. As they were initiators for surimi and surimi analogues in India, they held monopoly in the export market. GME created new roles in the organization. Technical innovators Business Innovators Product Champions. www.iosrjournals.org 31 | Page
Turnaround Management through Internal Corporate Venturing: A Case Study of a Seafood Company Generated huge employment opportunities in the peeling shed. Created value addition for fish suppliers making a strong bonding, creating a path to convert thrash fish to productive raw material. The organisation became a business model for MPEDA (Marine Product Export Development Authority) Government of India and other Seafood exporters.
IX.
The Future Issues
To manage expectations in the right way and keep the motivation towards ongoing innovation alive. To set of specific metrics to analyze and evaluate new businesses in their development and to decide when to abort a new initiative. Set quantitative and qualitative standards which are agreed by all in the organization to have hassle free operations.
X. Conclusion From the detailed study and analysis of concepts and theories of corporate entrepreneurship and innovation relating it to the case study which has been undertaken for study it can be concluded that the primary aim of internal corporate venturing is the revival and rejuvenation of organization resulting in growth and the prime source of it as explored in the above discussion is innovation. The innovation be it product, process or any other type of innovation can be converted into a sustainable competitive advantage to make a firm standing in the arena of business. Organization leveraging innovation, avoids one major organizational conflict associated with entrepreneurship i.e. the distinction between the entrepreneur supported business and corporate entrepreneurship. Entrepreneurs can develop conducive environment of trust and by leveraging innovation they can create collective wealth for the organization as well as contribute to the growth of the country.
References
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] Clark, Jon 1995 Learning Through Corporate Ventures. Managing Innovation, pp. 279-309. Pramodita Sharma, James. J.Chrisman, Toward a reconciliation of the definitional issues in the field of Corporate Entrepreneurship, Entrepreneurship theory and practice, 1999. Covin, Jeffrey. G. and Selvin, Dennis P. 1991. A Conceptual model of Entrepreneurship. FAO year book of fishery Statistics (2000-2001). MPEDA Journal. Project Report for Surimi and Surimi Analogues (Gadre Marine Exports). Corporate Entrepreneurship, Effective Executive, The ICFAI University Press, April 2007. C.J. Punnathara, Shrimp Exporters Turn innovative, The Hindu Business Line, http://www.thehindu.com, Major Brand building drive for marine exports planned 17/06/2006. Dr. R. Gopal, Innovation- The Key Strategic Weapon to Increase Competitiveness- A Model to Measure the Impact of Innovation on the Value of Business, Proceedings of the 10 th Strategic Management Convention, IIT Mumbai, 2007.
ANNEXURE I PROFILE OF GADRE MARINE EXPORT PVT.LTD.

1] Name & Address of the Company :- Gadre Marine Export Pvt.Ltd., Plot No.FP-1, Mirjole Block, M.I.D.C., Ratnagiri 415639Maharashtra. 2]Date of incorporation :- 12.05.1994 3] Date of establishment :- 21.03.2004 4] Chairman :- Mr.Deepak P. Gadre 5] Directors i) Managing Director :- Mr.Arjun D.Gadre ii) Director :- Mrs. Meena D. Gadre 6] Project :- 100% E.O.U. The project is in two phases:a] Production of Surimi Analog Products & b] Production of Surimi (Fish Paste). 7] Present Status of the project : - Both phases has been completed and Production & export has been also Started. 8] Industry a] Name of the Products : - a]Surimi Analog Products are To be manufactured and manufactured in various flavours and their use. Varieties from Surimi and other Eatables and consumed mainly as salad. b] Surimi (a Japanese term for purified fish i.e. skinless, bonless, fatless) is
32 | Page
Turnaround Management through Internal Corporate Venturing: A Case Study of a Seafood Company
manufactured from fish and used for making various Surimi Products. b] Project Plant Capacity (Annual) :- a]Surimi :- 71175 M.Tons b] Surimi Analog Products:-15768 M.Tons
c] Details of By-products if any d] Sector e] Nature of Business
:- 1] Fish Skin, Bones, Fish Oil, 2] Gelatin Product, Di Calcium Phosphate. : - Private Sector Closely held Private Limited Co. :- Manufacture and export of Surimi And Surimi Analog Products. :- Fisheries. :- Rs. 72.50 Crores appx. :- Rs. 60 to 65 Crores appx.
f] Nature of Industry 9] A] Investment made in the Project B] Present turnover of the Unit C] Projected turnover for the F.Y. 2007-08 10] Name of the countries where the product exported.
:- Rs. 100 to 125 Crores appx. :- 1] For Surimi - Japan, S.Korea, Singapore, Hongkong, Malaysia, Russia, Spain. 2] For Crabstick - European countries, America, S.Korea.
ANNEXURE II LIST OF AWARDS RECEIVED BY THE FIRM

Mr. Gadre has been awarded various prizes in India for excellent performance of export and product quality. The main awards received by the firm are as follows:a) CEU Awards, Confederation of Export Units award for excellence in exports during the year 1994-95 , 1995-96 , 1996-97, b) Awarded by Income Tax Office Kolhapur, under their scheme 'SAMMAN' for the Assessment Year 1998-99, c) National Productivity Council of India Award for Productivity performance during the year 1996-97, d) National Productivity Council of India - First Award for Productivity enhancement for the year 1999-2000, e) Awarded by The United Western Bank Ltd. in 2000-2001, f) National Productivity Council of India - Second Award for Productivity enhancement for the year 2000-01, g) National Productivity Council of India - Second Award for Productivity enhancement for the year 2001-02, h) National Productivity Council of India - Second Award for Productivity enhancement for the year 2002-03, i) Export House - Certificate of Recognition for two star export house, j) The Marine Products Export Development Authority (MPEDA) Export Performance Award for export to New Markets during - 2005-06.
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Customers Satisfaction towards Organized Retail Outlets in Erode City

U. Dineshkumar1, P.Vikkraman 2
1 2
Department of Management Studies, Erode Sengunthar Engineering College, Erode, India School of Management Studies, Anna University, Coimbatore Centre, Coimbatore, India
Abstract: Customer satisfaction is widely recognized as a key pressure in the formation of consumers' future
purchase intentions. Satisfied customers are also likely to tell others of their favorable experiences and thus engage in positive word of mouth advertising. The present study aims to investigate customer satisfaction in the organized retail outlets in Erode city of Tamil Nadu state in India. The objectives are to identify the determinants of customer satisfaction in the organized retail outlets in Erode city, to identify the attitude and behavior of the customers those who are purchasing in organized retail outlets, and to study about the future prospects of organized retail outlets in the city. Customer satisfaction is a significant subject for most marketers. A total of 200 questionnaires have been randomly distributed to retail customers. Using descriptive statistics method, cross table analysis, chi-square test and correlation method (to compare between different means) the data collected is analyzed. The result of this analysis suggests the degree of customer satisfaction in terms of services provided by organized retail outlets in Erode. Key Words: Attitude, Behaviour, Customer Satisfaction, Retail Outlets, Word of Mouth Advertising I. Introduction: Retailing is one of the oldest businesses that human civilization has known. It acts as an interface between the producer and consumer, improves the flow of goods and services and raises the efficiency of distribution in an economy. For a strong, stable and consistently growing economy, a well-organized and efficient retail sector is a must. Most of the developed and even emerging economies had adopted the organized retail long ago and percentage share of organized retail in total retailing has increased over the years. However, India, a land of self-sufficient villages, has continued to rely primarily on small, close to home shops. It is only off-late with pick-up in pace of urbanization and rising disposable incomes that the country started to take a few steps towards the organized retailing. A good progress has been made in the last few years, and the retail industry is off late being hailed as one of the sunrise sectors in the economy. Interestingly, for many years, retailers have been administering surveys to their customers to measure both their overall level of satisfaction and their opinion of various details of their store experience, service and merchandise provided at organized retail outlets but they are not able to retain all their customers by providing solutions to them. Satisfying customers is one of the main objectives of every business. Businesses recognize that retaining the existing customers is more profitable than having to win the new ones to replace those lost. Management and marketing theorists underscore the importance of customer satisfaction for a businesss success. Customer satisfaction is the key factor in knowing the success of any retail store or business; therefore it is very important to measure it and to find the factors that affect the customer satisfaction. Customers are most likely to appreciate the goods and services they buy, provided if they are made to feel special. This occurs when they feel that the goods and services that they buy have been specially produced for them or for people like them. It should be always keep measuring in order to get feedback for the products and services in order to develop it further with wide customization. Customer satisfaction levels can be measured using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal, place repeated orders and use a wide range of services offered by a business. In the present days retail business, ensuring customer satisfaction in delivering the right product and service to the end-users is the major concern for the future growth of the organization. In the present study an attempt is made to find out the customer satisfaction during purchase in retail outlets based on customer survey. (Das Prasun, 2009). Literature on customer satisfaction is voluminous and spans several areas such as marketing, management and accounting. For example, numerous papers use the ACSI (American Customer Satisfaction Index) to study customer satisfaction at the company, industry and macroeconomic levels. This paper focuses only on customer satisfaction studies that are related to retailing and does not survey the literature that studies the design of satisfaction survey instruments, as there is no control over survey design. The basic www.iosrjournals.org 34 | Page
II.
Literature Review

tenet of this research stream is that higher service quality improves customer satisfaction, resulting in better financial performance, although the mechanisms by which this improvement happens vary. Iacobucci et al. (1994, 1995) provide precise definitions of service quality versus customer satisfaction. They contend that service quality should not be confused with customer satisfaction, but that satisfaction is a positive outcome of providing good service. Ittner and Larcker (1998) provide empirical evidence at the customer, business-unit and firm- level that various measures of financial performance (including revenue, revenue change, margins, return on sales, market value of equity and current earnings) are positively associated with customer satisfaction. However, in the retail industry they find a negative relationship between satisfaction and profitability which may be because benefits from increased satisfaction can be exceeded by the incremental cost in retail. Sulek et al. (1995) find that customer satisfaction positively affects sales per labor hour at a chain of 46 retail stores. Anderson et al. (2004) find a positive association between customer satisfaction at the company level and Tobins q (a long-run measure of financial performance) for department stores and supermarkets. Babakus et al. (2004) link customer satisfaction to product and service quality within retail stores and find that product quality has a six significant impact on store-level profits. Research on customer satisfaction usually views employees as facilitators of the sales process who are critical to improving the conversion ratio, by providing information to the customers on prices, brands, and product features and by helping customers to navigate store aisles, finding the product and even cross-selling other products. The unique feature of the retail store execution problem is that it combines the factory and the sales components, but this stream of literature focuses only on the latter.
III.
Objectives of The Study:
1) To identify the determinants of customer satisfaction in the organized retail outlets in the city. 2) To identify the attitude and behavior of customers in organized retail outlets. 3) To study the future prospects of organized retail outlets in the city. IV. Scope Of Study: The scope of this study is wide and valuable. The study deals with the customer satisfaction towards organized outlets which is very essential for retailing. Also, it deals with various problems in the present retail store products and promotional schemes.
V.
Research Methodology
5.1 Research design The main aim of this survey is to know the customer satisfaction towards organized retail outlets and find out the key factors for customer satisfaction. Therefore descriptive research is being adopted to find out the customer satisfaction and characteristics of consumers. 5.2 Area of the study The survey is conducted among all class of customers who are the regular purchasers and occasional buyers in the organized retail outlets in Erode. 5.3Research approach Survey method and questionnaires method Primary data is collected through survey method. All the respondents are asked to fill in the questionnaire by themselves. The questionnaire contains open ended and closed ended questions and it is in a structured format which is clear and simple to the respondents. 5.4 Sample Size Sample size taken in this study is 200. 5.5 Period of Study The study was conducted during the period January 2012 to April 2012 5.6 Sampling Technique As all the possible items are considered for research, the sampling method adopted is convenience sampling. 5.7 Data Usage: For analysis and interpretation, only primary data is used. However for conclusion and recommendations both primary and the secondary data along with the verbal knowledge and information although obtained from respondents, though they are outside the parameters of questionnaire were also included. www.iosrjournals.org 35 | Page

The data collected from these sources were analyzed using various tools like percentage analysis, chi-square test, correlation and cross table analysis method. 5.8 Research Instrument: A standard questionnaire is prepared for the collection of data from various respondents. The questionnaire is designed in such a way that the aim of collecting essential information for the study would meet the set of objectives. 5.9 Tools: SPSS version 20 is used to tabulate and analyze the valid responses. Initially, a comprehensive data file was created. Then, variables and their labels were defined. Few statistical tools such as Person's Correlation, Chi-Square and cross tabling were used for the analysis.
VI.
6.1 General Profile of the Respondents
Analysis And Interpretation
Particulars Age
Gender
Educational Qualification
Monthly Income
Total members in Family
Average monthly purchase at organized retail outlets
Table 6.1 General Profile of the Respondents Classification No. of Respondent Age 25 and below 48 Age from 26-35 64 Age from 36-45 51 Age above 45 years 37 Male 120 Female 80 School Level 15 Graduate 78 ITI/ diploma 33 Post Graduate 74 Below Rs 5,000 4 Rs 5,001 - Rs 10,000 22 Rs 10,001 - Rs 15,000 84 Rs 15,001 - Rs 20,000 47 Above Rs 20,001 43 5 One 23 Two 57 Three 99 Four 16 Five and Above Below Rs 1,000 14 Rs 1,001- Rs 2,000 26 Rs 2,001- Rs 3,000 108 Rs 3,001- Rs 4,000 49 Above Rs 4,000 3
Percentage 24 32 25 19 60 40 7 39 17 37 2 11 42 23 22 2 11 29 50 8 7 13 54 24 2
Interpretation: From the above table, it is clear that 60% of the respondents are male and 40% of the respondents are female. After dividing the respondents on the basis of gender, they are further divided according to their age. In this, it is found that out of total respondents 24% are 25 years old and below, 32% age between 26-35, 25% belongs to the age group of 36-45 and 19% are above 45 years. 39% and 37% of respondents are graduates and post graduates respectively. 42% of respondents are in the income level of Rs 10,001-Rs 15, 000, 23% of respondents are in the income level of Rs 15,001-Rs20, 000 and 22% of respondents are above the income level of Rs 20,001. Majority of the respondents (54%) spend Rs2, 001-Rs3, 000 of their monthly budget towards their purchase in the organized outlets. Only 2% of the respondents spend more than Rs 4000 of their monthly budget.50% of respondents family size is four.
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6.2 Stores before buying from Organized Retail Outlets Table 6.2 Stores before buying from organized retail Outlets S.No Shop No. of respondent Percentage 1 Neighbourhood Store 23 11 2 Wholesale Market 35 18 3 Convenient Store 128 64 4 Other Stores 14 7 Interpretation: From the above table it is clear that maximum (64%) of the respondents were purchasing from convenient stores before they have moved to organized retail outlets. 6.3 Satisfaction level towards service provided at organized retail outlets Table 6.3 Satisfaction level towards service provided at organized retail outlets Level of satisfaction (%) Parameter HS S N DS Quality of service 55 33 12 0 Self Service 25 43 18 9 Product price range 16 36 38 2 Visual merchandising 21 31 22 24 Time saving 22 46 22 4 Fast Checkout 17 38 26 13 Easy accessible layout 22 36 25 8 Parking facilities 7 21 24 33 Trolley facilities 17 40 31 6 Home Delivery facilities 18 53 21 8 Store Entrance & walkways 17 31 37 8 Variety of Mode of Payment 9 18 19 28 Fig. 6.1
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6.4 Chisquare Test Table Showing the Relationship between Satisfaction level towards quality of service & Education level of the Respondents Table 6.4 Case Processing Summary Valid Missing N Percent N Percent Total Percent
Education Level* 200 100.0% 0 .0% 200 100.0% Quality of service EDUCATION AND QUALITY OF SERVICE CROSS TABULATION QUALITY OF SERVICE HIGHLY NEUTRA SATISFIED SATISFIED L 11 3 1 40 30 8 21 9 3 38 23 13 110 65 25 Chi-Square Tests Value
a
EDUCATION LEVEL SCHOOL LEVEL GRADUATE ITI/DIPLOMA POST GRADUATE TOTAL
TOTAL 15 78 33 74 200
df
Asymp. Sig. (2-sided)
Pearson Chi-Square 6.186 6 .403 Likelihood Ratio 6.136 6 .408 Linear-by-Linear 1.537 1 .215 Association N of Valid Cases 200 a.) 3 cells (25.0%) have expected count less than 5. The minimum expected count is 1.88. Interpretation: From the above Pearson chi-square test the acquired value is 6.186 for satisfaction level towards the quality of service and the education level of the respondents and the table value for the degree of freedom 6 is 12.592 Taken: H0: There is no significant relationship between the two variables- satisfaction level towards quality of service & education level of the respondents. H1: There is significant relationship between the two variables- satisfaction level towards quality of service & education level of the respondents. Since the acquired value is less than the table value, H0 is accepted and there is no significant relationship between the two variables- satisfaction level towards quality of service & education level of the respondents. 6.5 Correlation: Table Showing the Correlation of Income Level of Respondents and their Average Monthly Purchase at Retail Outlet Table 6.5 CASE PROCESSING SUMMARY Valid Missing Total N Percent N Percent N Percent 200 92.6% 16 7.4% 216 100.0%
Income level of family and Monthly purchase at FMCG retail outlet
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AVERAGE MONTHLY PURCHASE AT RETAIL OUTLET MONTHLY TOTA BELO ABOV INCOME L Rs1001Rs2001Rs3001W E Rs2000 Rs3000 Rs4000 Rs1000 Rs4001 BELOW Rs 5000 0 4 0 0 0 4 Rs5000-Rs10000 3 14 4 1 0 22 Rs100013 7 69 5 0 84 Rs15000 Rs150013 1 25 18 0 47 Rs20000 ABOVE 5 0 10 25 3 43 Rs20001 TOTAL 14 26 108 49 3 200 Symmetric Measures Asymp. Std. Approx. Approx. Value Errora Tb Sig. Interval by Pearson's R .465 .076 7.400 .000c Interval Ordinal by Spearman .545 .066 9.136 .000c Ordinal Correlation N of Valid Cases 200 Interpretation : The above table values of Pearsons R & Spearman Correlation are 0.465 & 0.545. From this table it is obvious that the correlation between the monthly income of the respondents and their average monthly purchase in organized retail outlets constitute a positive correlation.
VII.
Results And Discussions
In this study it is found that organized retail outlets provide better quality of service, product range as compared to the unorganized retail outlets. Most of the customers are satisfied with the quality of service provided by the organized retail outlets. They are satisfied with self service, product price, visual merchandising, home delivery and fast checkout. They feel that the store layout is easily accessible to find the products. Some of the respondents are not satisfied with parking facility and variety of modes of payment. With the help of Pearsons R & Spearman Correlation test, it is found that there is a positive correlation between the monthly income of the respondents and their monthly purchase in organized retail outlets. By using Chi-Square test it is made clear that there is no relationship between satisfaction level towards quality of service offered and the education qualification of respondents. The organized retail outlets should provide good parking facilities to their customers. Also, they are expected to concentrate more on free home delivery and increase the number of billing counters, so as to ensure fast checkout. Most of the stores do not accept credit and debit cards. Since most of the customers are youngsters and employed, they feel more comfortable with card payment than cash, these stores are expected to make this facility available to all the customers.
VIII.
Conclusion
The root of the study is that most of the customers prefer purchasing from organized retail outlets than unorganized outlets. Also, most of them are satisfied with the quality of service, price and product range of the goods provided by organized retail outlets. Satisfaction of consumers in retail service is an important criterion for a marketer to understand for further strategic decision. This study also reveals that the customers prefer organized retailing over unorganized retailing, due to which the organized retailing become a threat to the unorganized outlets. The establishment of such organized retail outlets in tier-1 and tier-2 cities has proved to be successful, as it fulfills the needs of the customers. As an expansion, such outlets are being established in tier-3 cities like Erode and other places. Hence, its significant for such outlets to cater to the needs of the customers for its long run.
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Customers Satisfaction towards Organized Retail Outlets in Erode City References

Journals
[1] [2] [3] [4] Anderson, S. W., L. S. Baggett and S. K. Widener. 2006. The impact of service operations failures on customer satisfaction: the role of attributions of blame. Working paper, Rice University. Babakus, E., C. C. Bienstock, and J. R. Van Scotter. 2004. Linking perceived quality and customer satisfaction to store traffic and revenue growth. Decision Sciences, 35(4), 713-737. Das prasun.2009, Adaptation of fuzzy reasoning and rule generation for customers choice in retail FMCG business , Journal of management research,9(1) Iacobucci, D., K. Grayson and A. Ostrom. 1994. The calculus of service quality and customer satisfaction: theoretical and empirical differentiation and integration, in T.A. Swartz, D.E. Bowen, and S.W. Brown, eds., Advances in Services Marketing and Management: Research and Practice, Vol. 3, Greenwich, CT: JAI Press, 1-67. Iacobucci, D., A. Ostrom and K. Grayson. 1995. Distinguishing service quality and customer satisfaction: the voice of the consumer. Journal of Consumer Psychology, 4, 277-303. Ittner, C. D., and D. F. Larcker. 1998. Are non-financial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research, 36, 1-46. Kennedy, P. 2003. A Guide to Econometrics. 5th ed., The MIT Press. Sulek, J. M., M. R. Lind and A. S. Marucheck. 1995. The impact of customer service intervention and facility design on firm performance. Management Science, 41(11), 1763-1773. PhilipKotler, Kevin lane Keller, Abraham Koshy, MithileshwarJha,(2012) Marketing Management, 13 th edition, Pearson education Asia publication. C.R.Kothari, ResearchMethodology Method & techniques, new ageinternational (p) ltd.publishers,2 nd edition. Siva Kumar,(2007), Retail Marketing, Excel Books, First Edition. Michael Levy, Baston,Aweitz and Ajay Pandit,(2007), Retail Management, 6 thEdition, Tata McGraw Hill. SwapnaPradhan,(2009), Retail Management Text and Cases, 3rd Edition, Tata McGraw Hill. http://www.businessreviewindia.in/business_leaders/indian-retail-sector-set-for-higher-growth. http://thirdeyesight.in/blog/2011/06/27/suceeding-in-the-indian-market
[5] [6]
[7]
Books:
[8] [9] [10] [11] [12] [13] [14]
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The influence of culture on cosmetics consumer behavior

1
1 2
Mrs. HemaPatil,2Dr.BBakkappa
Assistant Professor,BIET-MBA Programme, Davangere-577004,KARNATAKA(state), INDIA. Registrar (Evaluation),Davangere University, Davangere-577004,KARNATAKA(state),INDIA.
Abstract:Culture is a pervasive influence which underlies all facets of social behavior and interaction. It is
embodied in the objects used in everyday life and in modes of communication in society. Cosmetics are ubiquitous elements of womens consumer culture one of the imperatives of contemporary life, and represent one of the most important ways women present and transform their public persona. In todays society, beauty and physical attractiveness are constantly emphasized as desirable and admirable characteristics. This research focuses on the influence of culture on consumers cosmetics buying decision making process. Key words:Consumer behavior, Cosmetics, Culture, Factor analysis.
I.
Introduction
Culture and consumption have an unprecedented relationship in the modern world. The rapidly increasing importance of international marketing has led marketers, practitioners and academicians alike, to seek a deeper understanding of how consumers and markets differ around the globe. The world economy is becoming increasingly cross-cultural. During the next decades, as marketers enter new international markets, an understanding of how culture influences consumer behavior will be crucial. Culture is a powerful force in regulating human behavior. Consumption decisions made in the market cannot be viewed as an independent event these are closely related with values and social relationship and cultural allegiance. According to past research, national culture has considerable influence on consumer behavior (Jaishankar, 1998). National culture of any country, as outer stimuli, influence on the diffusion of products across countries (Kumar et al., 1998). With globalization, culture becomes predominantly important strategic issue in market that has to be faced and properly managed. People of each country possess a distinct national character. Countries are a source of a considerable amount of common mental programming of their citizens (Hofstede, 1991). Core values of any country shape its national culture. Culture can be conceptualized as dynamic production and reproduction of meaning by concrete individuals activities in particular contexts (Kashima, 2000). It ensures a set of behavior patterns transmitted symbolically through language and other means to the member of a particular society (Wallendorf and Reilly, 1983). Culture generally refers to those aspects of human activities that are symbolic and meaningful and identifiable. Bartlett (1923) defined culture as a part of two components: firstly, cultural elements which denote material behavior and objects and secondly, cultural materials that cover forms of cultural practices, artifacts, social and religious rituals, customs. This article presents a framework that integrates and reinterprets current research in culture, sub culture and cross-cultural consumer behavior. The framework also serves to identify areas that need further research and can be used as a template for thosecosmetics marketers who seek to understand their consumers.
II.
Literature review
2.1 Cosmetics Women use cosmetics to audition various selves (Bolch P.H&SherrellRichins, M.L 1992) and cosmetics matter because they are a means of self-investigation (Beausolil N 1994).A number of studies have addressed the impact of the representation of attractive women on female consumers. The desire to improve ones physical attractiveness seems to be an inherent characteristic of most individuals (Adams, 1977; Etcoff, 1999; Winston, 2003). Cosmetics are traditionally been confined to female consumers, cosmetics have been traditionally used by women to control their physical appearance and, presumably, their physical attractiveness. Although, the literature is by no means voluminous, several researchers have examined the psychological correlates and consequences of cosmetic use (Cash and Cash, 1982; Miller and Cox, 1982; Graham and Kligman, 1985; Cash et al., 1985; Cox and Glick, 1986; Etcoff, 1999). Cash (1980) reviewed some of the available research evidence and, from a self-presentational perspective, argued that cosmetics use specifically and grooming behaviors in general function to manage and control not only social impressions but also selfimage (for example, body image, self-perceptions, and mood states).
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The influence of culture on cosmetic consumer behavior

Since grooming products are considered as a pervasive element of womens. As a general result, the exposure to pictures of good-looking and even slightly above-average-looking females lowered the self-image of exposed women and increased dissatisfaction with their own appearance (Pollay, 1986; Myers and Biocca, 1992; Martin and Gentry, 1997; Hawkins et al., 2004). The body image is an important component of the self-concept and has stimulated the demand of certain products and services, such as dietary, slimming, exercise and cosmetic items (Sturrock and Pioch, 1998). Featherstone (1991) also noticed that the self-preservation of the body pushes individuals to adopt instrumental strategies to combat its deterioration and combine them with the notion that the body is a vehicle of pleasure and self-expression. In western cultures, one of the commonly recognized reasons women uses cosmetics is to improve their physical attractiveness. For example, Cash and Cash (1982) found women to express a more positive body image and self-image when wearing makeup compared to when not wearing makeup (Cash and Cash, 1982). 2.2 Consumer Behavior The term consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using evaluating and disposing of products and services that they expect will satisfy their needs (Shiffman and Kanuk, 2010). Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items, That includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase and the impact of such evaluations on future purchases, and how they dispose it. Research in consumer behavior is a top priority for marketers both in the third world (Albaum and Peterson, 1984; Kanwar, 1993) and in Eastern Europe (Kaynak and Samli, 1986). Once a company has ensured both economic and physical access to its products it needs to evaluate the buying behavior of consumers in the country that it is seeking to enter. However, little is known about consumer attitudes, buying habits, purchase motives, lifestyles, etc. in Eastern Europe and Third World countries (Kaynak and Samli, 1986). Marketers who seek to enter these markets might therefore find it necessary to engage in some priority marketing research relating to such issues (Peterson, 1985).Consumers and their behavior represent an important arena for inquiry, which hasattracted researchers from several disciplines (Ferber, 1974). Consumer behavior is the active interplay of competing theories (Feyerabends 1975). 2.3Culture Culture has a profound influence on all aspects of human behavior. Its impact may besubtle or pronounced, direct or oblique, enduring or ephemeral. It is so entwined withall facets of human existence that it is often difficult to determine how and in what ways its impact is manifested. Adding to the complexity of understanding the impactof culture is its inherently dynamic nature. Cultural influences change and culture evolves as political, social, economic and technological forces reshape the cultural landscape. Culture is a pervasive influence which underlies all facets of social behavior and interaction. It is evident in the values and norms that govern society. It is embodied in the objects used in everyday life and in modes of communication in society. The complexity of culture is reflected in the multitude of definitions of culture. According to Herskovits (1955) culture is the manmade part of the environment i.e. what distinguishes humans from other species. Studies have shown that different cultures react differently to new product and technological innovations (e.g. Mahajan and Muller, 1994; Maitland and Bauer, 2001; Takada and Jain, 1991; Tellefsen and Takada, 1999; Tellis et al., 2003; Van Everdingen and Waarts, 2003). Meanings, values, ideas and beliefs of a social group are articulated through variouscultural artifacts, such as products, (Hasan and Ditsa, 1999). Douglas and Isherwood (1979) posit that people from different cultures use products as a means of communication. According to McCracken (1989), in a consumer society, cultural meaning moves from the culturally constituted world (the original location of cultural meaning) to consumer goods (carrying and communicating cultural meaning) and then from these goods to the individual consumer. The nature of cultural influence can be seen as a circular process from which meaning is created, maintained and transmitted within a society (McCort and Malhotra, 1993). There are over 160 definitions of the culture alone.Basically the characteristics of culture are identical in almost all the instances. Hofstede (1991), Trompenaars (1993), and Czinkota, M.R. and Johnston, W.J. (1981) all agreed that culture is based on languages, economy, religion, policies, social institutions, class, values, status, attitudes, manners, customs, material items, aesthetics and education, which subsequently influences managerial values. Cross-verging across culture has different aspects such as attitude, communication, conflict and negotiation, performance and compensation, which explain the ethical issues and how to appraise them. India, as a country, is so heterogeneous in nature that it is complex for a marketer toidentify common threads of Indian culture and core values. There are many differentsub-cultures coexist in Indian society with their own
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distinctive values, norms, beliefsand behaviors. So, In India, people are socialized by getting input from their culturesand core values. The better understanding of consumers needs brings growth to the company,along with needs it is important to study culture of the country because, needs are judged within the purview of culture. Therefore it is most important to understand the culture of the country, for the better understanding of consumer behavior which brings success to any of the company.
III.
Need of the study
IV.
1. 2. 3.
Objectives
To understand the cultural reasons for the selection of cosmetics. To understand the sub-cultural reasons for the selection of cosmetics. To understand the cross-cultural reasons for the selection of cosmetics
V.
2 2
Research methodology
The study uses both exploratory and descriptive research design to get clarity of research problem. The research tool used is Likert Scale and the statistical tool used is Factor Analysis. The sample size was finalized using the formula = 2 with 95% confidence level and 0.05 level of significance. The sample size finally obtained was 1024 and area is Davangere, Karnataka (state), and India. The sampling technique used was probabilistic Cluster Sampling (two stage cluster sampling) using systematic random sampling method. The primary data was collected with the help of a questionnaire from the woman ofDavangere. A total of 1200 women from different areas were contacted and aptly filled questionnaires were obtained. The respondents were given a list of statements that measured their extent of agreement towards the variables. The items were measured on a 5 point Likert scale with 1 representing low score (Strongly dis agree) and 5 representing a high score (strongly agree). These statements were selected after three rounds of pilot testing with the factor loadings above 0.70. For the reliability of the research tool Crown Basch alpha test was performed, and obtained the alpha value of 0.78, this shows the tool is reliable.
VI.
Analysis and interpretation
Consumer behavior is studied from two dimensions i.e., the behavior of consumer as an individual and the behavior of consumer in the social setup. Amongst the social setup culture has got considerable influence. To know the influence of culture on consumer behavior, cosmetics factor analysis was performed for the elements of culture, sub-culture and cross culture Table 1: KMO and Bartlett's Test KMO and Bartlett's Test Culture Sub Culture Kaiser-Meyer-Olkin Measure of Sampling .586 .669 Adequacy. 209.597 Approx. Chi-Square 101.041 Bartlett's Test of 3 3 Df Sphericity .000 .000 Sig.
Cross Culture .592 79.907 3 .000
The above table shows the KMO and Bartlett's Test in which the suitability of data can be checked. The KMO measure for sampling adequacy should not be less than 0.5. If it is less than 0.5, it indicates that results from factor analysis are not useful. In the above table for all variables culture, sub culture and cross culture KMO measure for sampling adequacy are above 0.5. Table 2: Communalities SlNo Consumer Behaviour Elements Culture 1 Ones own personal culture guides the selection of cosmetics. 2 The language and the symbols used on the package influences the selection of cosmetics. 3 The ritual which we perform has an effect on the use of cosmetics.
Initial 1.000 1.000 1.000
Extraction .496 .645 .442
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SlNo Subculture 4 5 Consumer Behaviour Elements Initial 1.000 1.000 1.000 Extraction .630 .658 .587
Our subculture influences the selection of cosmetics. The different states of our country have emerged as sub culture which influences my selection of cosmetics. 6 The religion to which we belong has a subculture which influences my cosmetics selection. Cross Culture 7 As global teenage category cosmetics tastes converge, the influences of other country teenagers are more on our country teenagers. 8 I Would like to buy cosmetics of most favoured world brand. 9 We like such global brand which study the needs of their customers and fulfils through quality product.
1.000
.602
1.000 1.000
.498 .427
The proportion of variance in any one of the original variables, which is being captured by the extracted factor, is known as communality (Nargundkar 2002). From the above table it can be understood that after three factors are extracted from marketing mixvariables; the communality is 0.496for Item 1, 0.645for Item 2, 0.442for Item 3 and so on for other factors also. Large communalities indicate that a large number of variance has been accounted for by the factor solution.
Table 3: Total Variance Explained(Culture) Extraction Sums of Squared Initial Eigenvalues Loadings Component % of Cumulative % of Cumulative Total Total Variance % Variance % 1 1.583 52.768 52.768 1.583 52.768 52.768 Total Variance Explained(Sub Culture) Extraction Sums of Squared Initial Eigenvalues Loadings Component % of Cumulative % of Cumulative Total Total Variance % Variance % 2 1.875 62.492 62.492 1.875 62.492 62.492 Total Variance Explained(Cross Culture) Extraction Sums of Squared Initial Eigenvalues Loadings Component % of Cumulative % of Cumulative Total Total Variance % Variance % 3 1.527 50.904 50.904 1.527 50.904 50.904 Extraction Method: Principal Component Analysis.
The above table explains the total variance explained for consumer behavior elements culture, sub culture and cross culture. From the table it can found that all the three factors have Eigen values more than1 for the influence of reference group. The Eigen values for three factors were 1.027, 1.875, and 1.527 for the factor 1, factor 2, factor 3 of the total variance, what the variables together presents can be understood form the total variance. The index for the present solution accounts 52% of total variance for choosing the influence of culture, 52% of total variance for choosing the influence of sub-culture, 51% of total variance for choosing the influence of cross culture. It is pretty good extraction as it can economize on a number of factors while we have lost48%, 38%, 49% of information content for factors in choosing the variable from culture, sub culture and cross culturerespectively. The factor of culture explains 52.768 percentage of variance, the factor of subculture explains 62.492 percentage of variance, the factor of cross culture explains 50.905 percentage of variance.
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Table 4: Rotated component matrixa Items loaded Culture Ones own personal culture guides the selection of cosmetics. The language and the symbols used on the package influences the selection of cosmetics. The ritual which we perform has an effect on the use of cosmetics. Sub Culture Our subculture influences the selection of cosmetics. The different states of our country have emerged as sub culture which influences my selection of cosmetics. The religion to which we belong has a subculture which influences my cosmetics selection. Cross Culture As global teenage category cosmetics tastes converge, the influences of other country teenagers are more on our country teenagers. I Would like to buy cosmetics of most favoured world brand. We like such global brand which study the needs of their customers and fulfils through quality product. Components 1 .705 .803 .665 2 .793 .811 .766 3 .776 .706 .653
From the above table the loading of the factors can be observed. The loading on factors can be positive or negative. The inverse relationship of variable with the rest of the factors is explained by negative loading. The Higher the loading the more important is the factor. According to the suggestions of statistician, anything above 0.44 could be considered salient; the increased loading becomes more vital in determining factor. All the higher loadings in the table are positive. The summary of the factor analysis can be seen in the below table. Table 5: Consolidated factor analysis for consume behavior Factor interpretation (%of variance explained) Loading Variables included in the factors Ones own personal culture guides the selection of .705 cosmetics. The language and the symbols used on the package .803 influences the selection of cosmetics. This factor explains The ritual which we perform has an effect on the use of 53% of variance .665 cosmetics. .793 Our subculture influences the selection of cosmetics. The different states of our country have emerged as sub .811 culture which influences my selection of cosmetics. This factor explains The religion to which we belong has a subculture 62% of variance .766 which influences my cosmetics selection. As global teenage category cosmetics tastes converge the influences of other country teenagers are more on .776 our country teenagers. I Would like to buy cosmetics of most favored world .706 brand. This factor explains 50% of variance .653 We like such global brand which study the needs of their customers and fulfills through quality product.
Factor
Culture State and religion as cosmetics SubCulture
Global brands as cross culture
The above table is the summarized table of the factor analysis, which explains the number of factors loaded, the percentage of variance, and the factor loading to the variables.
VII.
Findings
The factor Culture is explained by three items: Ones own personal culture guides the selection of cosmetics, the language and the symbols used on the package influences the selection of cosmetics, and the ritual which we perform has an effect on the use of cosmeticswith a cumulative variance of 53%. It means that according to consumers ones own personal culture guides the selection of cosmetics, The
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language and the symbols used on the package influences the selection of cosmetics, the ritual which they perform has an effect on the use of cosmetics. Our subculture influences the selection of cosmetics, the different states of our country have emerged as sub culture which influences my selection of cosmetics, the religion to which we belong has a sub culture which influences my cosmetics selection,are the key items obtained through factor analysis of state and religion as cosmetics sub - culture. The three items explains a cumulative variance of 62% of the total variance of state and religion as cosmetics sub - culture. It means that the consumers are of the opinion that their subculture influences the selection of cosmetics and the different states of their country have emerged as sub culture which influences their selection of cosmetics, and the religion to which they belong is also another type of a subculture which influences their cosmetics selection. This research has identified three items reasoning global brands as cross culture. The first item is as global teenage category cosmetics tastes converge the influences of other country teenagers are more on our country teenagers, the second item is i would like to buy cosmetics of most favored world brand, the third item is we like such global brand which study the needs of their customers and fulfills through quality product. Global brands as cross culture is explained by these three items together explaining with a cumulative variance of 51%. It can be understood that as global teenage category cosmetics tastes converge the influences of other country teenagers are more on our country teenagers, they would like to buy cosmetics of most favored world brand, they like such global brand which studies the needs of their customers and fulfills through quality product.
VIII.
Conclusion
According to consumers while selecting cosmetics, culture influences their selection. Cosmetics are selected in the framework of personal culture and rituals performed. Along with that the language and symbol on the package influences their selection.Consumers are of the opinion that their subculture influences the cosmetics selection and they have derived subculture from the culture of the state and religion to which they belong. Consumers are also getting influenced from cross-culture of different countries. Todays globalization has converged the global teenage category tastes and preferences, as a reasonglobal teenagers influence is on our countrys teenagers. As a result of that consumers would like to buy cosmetics of most favored brand because they know thatglobal brands fulfill the needs of their customers through quality products.For the inclusive growth of the countryseconomy understanding sectorial growth is important. This research brings the possibility of good growth of cosmetics sector with the study of culture. This research is carried out to study the general perspective of cosmetics consumers understanding of culture. The study would have been more interesting if it was conducted on some specific cosmetics brands.The same study would have been made still more interesting by comparing herbal and chemical cosmetics emphasize on culture.
References
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Production Coefficient Analysis of Indian Manufacturing Industry

1
1
Rajni Pathania, 2Saleem Anwar
Research Scholar Department of Business Economics Faculty of Commerce The M.S. University of Baroda ,Vadodara Gujarat India 2 Management Student Lovely Professional University Punjab
Abstract: This paper attempts to make a production coefficient analysis of the 2 digit manufacturing Industries
in India for the period 1998-99 to 2007-08. These relates to(i)Average and Incremental output-capital ratio(ii) Average and Incremental output-Labor ratio(iii)Comparison between the growth of total remuneration and Labor Productivity(iv)combined input efficiency and Annual Average growth rate of output and input variables(v)Return to Scale of Manufacturing Industries. This study shows that these manufacturing 2 digit industries are more capital intensive and experiencing increasing return to scale. Keywords: Coefficient, Efficiency, Productivity, Return to Scale, Capital Intensive
I.
Introduction
Manufacturing industries are the major wealth producing sectors of an economy. Manufacturing industry came into being with the occurrence of technological and socio-economic transformations in the Western countries in the 18th-19th century. This was widely known as industrial revolution. It began in Britain and replaced the labor intensive textile production with mechanization and use of fuels. The manufacturing industry accounts for an important share of the industrial sector in developing and developed countries. These industries use a variety of technologies and methods broadly known as manufacturing process management. Manufacturing industries are generally categorized into engineering industries, construction industries, electronics industries, chemical industries, energy industries, textile industries, food and beverage industries, metalworking industries, plastic industries, transport and telecommunication industries. Manufacturing industries are important for an economy as they employ a large share of the labor force and produce materials required by sectors of strategic importance such as national infrastructure and defense. However, not all manufacturing industries are beneficial to the nation as some of them generate negative externalities with huge social costs. The cost of letting such industries flourish may even exceed the benefits generated by them. Owing to the emerging technologies worldwide, the world manufacturing industry has geared up and has incorporated several new technologies within its purview. Economists consider the World manufacturing industry as a sector which generates a lot of wealth, Generating employment, introducing latest techniques, real earnings from shipments etc., have put the world manufacturing industry in a favorable position. The Indian economy is firmly on the path of steady growth. Even during the last decade when other countries were in the grip of a massive slowdown, India continued to enjoy a comfortable economic position. This recent spurt in growth is propelled by radical reforms such as the removal of restrictions on foreign investment and industrial de-licensing. The liberalization of the economy has opened new windows of opportunity for manufacturing sector. Increasingly the success of manufacturing industries is dependent on innovations, research and development. It is critical not only to remain competitive but also, significant advantages can be gained by developing and commercializing new technologies. With a size of US $ 22 billion, the engineering sector exports stood at US $ 6.6 billion in 2001-02 and imports at US $ 4.9 billion the same year. Indian engineering manufacturing sector employs over 4 million skilled and semi-skilled workers. The engineering manufacturing sector comprises of heavy engineering (70%) and light engineering (30%). The manufacturing sector grew by 8.9% in 2004-05, comfortably outperforming the sectors long-term average growth rate of 7%. The sector has remained one of the engines of economic growth since the start of 2005-06. I.I Review of literature A lot of studies have been done on the different aspects of manufacturing Industry at national and international level. A few studies have been taken for review: Page (1984), conducted study to examine the relationship between relative technical efficiency and firm size in four Indian manufacturing industries i.e. shoes, printing, soap and machine tools for the financial year 1979-80. www.iosrjournals.org 48 | P a g e

A frontier translog production function is used to derive measure of technical efficiency. This study found that there is considerable variation in the firm specific indices of technical efficiency within each industry and firm size is found to be positively associated with relative production efficiency in only one of the four industries. The study highlight that average experience of the labour force within the enterprises, experience of entrepreneurs, age of establishment of plant and equipment and level of capacity utilization were identified as significant source of variation in technical efficiency for one or more of the industries. Mahadevan (2002), examined the total factor productivity growth of twenty-eight Malaysian manufacturing industries from 1981 to 1996. TFP (Total Factor Productivity) growth was measured from two different models of the frontier approach: stochastic frontier model and DEA (Data Envelopment Analysis) model. The stochastic frontier model shown that output growth had been mainly input-driven rather than productivity driven, and that TFP growth had been consistently negative over time. On the other hand, the DEA model had shown consistently positive TFP growth rates. Due to the use of different methods and models, TFP growth rates differ but both models shown that TFP growth was low and declined over time. Hossain and Karunaratne (2004), examined the effects of the trade liberalisation on the technical efficiency in Bangladesh manufacturing Industry for the decade 1978-94. The estimates obtained from the stochastic frontier inefficiency model. The focus of the study was on panel data for 25 three digit level industries. The study had observed that the technical efficiency of the manufacturing industries had increased over time. The study also found that there was no neutral technical change occurred in the production technology of the Bangladesh manufacturing industries. This study suggested that improvement in technical efficiency of Bangladesh manufacturing sector may be attributed to the competitive push to domestic industries. Parameswaran (2004), discussed the total factor productivity of the capital goods producing industries. This study examines two components of the total factor productivity growth; one is technical change and second is technical efficiency change. The technical efficiency and technical change are estimated using a stochastic frontier production function. The main result of this study shows that all the industries studied experienced a significant improvement in the rate of technological progress during the post reform period. The result shows that the level of technical efficiency is lower during the post reform period in Indian manufacturing industries. From the literature review, it can be seen that most of these studies focus on the performance of manufacturing Industry. Study on combined input efficiency of manufacturing industries in India is a field where very little work has been done. Moreover, a lot of studies have been done on the performance of the Indian economy in the post and pre reform period. Most of these studies focus on the comparative analysis of these Industries. Our research study is somewhat unique in the sense that so far, no study has been covered during the period 1998-99 to 2007-08. There is enough scope of research in this area. I.II Objectives of study The specific objectives of this study are: 1. To analyze the average incremental output- capital ratio of 2 digit manufacturing Industries. 2. To analyze the average incremental output-labor ratio of 2 digit manufacturing Industries 3. To analyze the comparison between the growth of total remuneration and labor productivity. 4. To examine the combined input efficiency of 2 digit manufacturing industries. 5. To examine the return to scale of 2 digit manufacturing industries. I.III Hypothesis of the study We have proposed the following hypothesis for this study: 1. H01: There is significant difference between average incremental output- capital ratio and average incremental output -labour ratio. 2. H02: There is significant growth of combined input efficiency of 2 digit manufacturing Industries.
II.
Research methodology
II.I Data source The study mainly relies upon the Annual Survey of Industries (ASI) data, published by Central Statistical Organization (CSO). The study intends to examine the above-mentioned objectives at 2-digit level of Industry classification. The period of study is from 1998 to 2007-08. The study covers manufacturing industries at all India level. Till the year 1997-98 the ASI data is available in two-digit form. The data from 1998-99 onwards has been collected from ASI- Factory level summary sectors, which is available in three-digit form. These threedigit data have been transformed into two-digit with the help of appropriate concordance. II.II Research Technique We apply here Cobb Douglas production function to estimate elasticity of inputs and return to scale: www.iosrjournals.org 49 | P a g e

Q=AK L ln(Q)=ln(A K L =ln A+ln(K)+ln(L) =lnA+lnK+lnL Notice that the last line above has simply transformed the original Cobb-Douglas function to a linear form in logarithms. Hence, the transformed equation is a log-linear version of the original equation. Note that in the loglinear form, the exponent appears as a parameter (ln A is the intercept, and and are the slopes, in this log-linear equation). Value-added (Q), number of workers (L) and fixed investment (K) for various years in the Indian Manufacturing industry The second method used in this study is as: AOKR= Qt / Kt, IOKR= Q/K= Qt - Qt-1 /Int (where Int = FCt- FCt-1) Where AOKR is Average Output Capital Ratio, IO is Incremental Output, IK is Incremental Capital and IOKR is Incremental Output Capital Ratio. AOLR= Qt / Lt, IOLR= Q/L= Qt - Qt-1 / Lt - Lt-1 Where AOKR is Average Output Labor Ratio, IL is Incremental Labor and IOLR is Incremental Output Labor Ratio,
III.
Analysis of production coefficient
Table 1 Average and Incremental Output/ Capital Ratios in the Manufacturing Industries IOKR (Rs. Of VA AOKR (Rs. per IO(Rs.000s) IK(Rs. 000s) per unit of KYear unit of K- years) years) 1998-99 0.4 1999-00 0.4 951337 1071328 0.9 2000-01 0.4 -1135301 -226051 5.0 2001-02 0.3 68071 3235591 0.0 2002-03 0.4 2803792 1279925 2.2 2003-04 0.4 3059272 2857202 1.1 2004-05 0.5 5697410 3973785 1.4 2005-06 0.5 5195733 9387103 0.6 2006-07 0.6 8386107 10819111 0.8 2007-08 0.6 8586742 13000070 0.7 Source: Researchers own calculation based on ASI data 1998 -2007 Table 1 indicates the average and incremental output/ capital ratio in manufacturing industry, between years 1998 to 2008. For the period 1998-99 to 2000-01, one rupee of fixed capital on the average was associated with Rs. 0.4 of the value added. But whilst the 2001-02 points lie far below this line denoting a server deterioration in capital productivity, but the observation for the period 2004-05 to 2007-08 is above this line indicating an improvement. The evidence on the incremental output capital ratio of manufacturing industry indicates somewhat satisfactory performance after the year 2000-01. Table 2 Average and Incremental Output/ Labor Ratios in the Manufacturing Industries AOKR (Rs. per IO(Rs.000s) IL(Nos) Year man - years) 1998-99 2.3 1999-00 2.5 951337 -83805 2000-01 2.3 -1135301 -145421 2001-02 2.4 68071 -177390 2002-03 2.8 2803792 203645 2003-04 3.3 3059272 -74585 2004-05 3.9 5697410 512390 2005-06 4.4 5195733 536799 2006-07 5.0 8386107 744439 2007-08 5.9 8586742 317574 Source: Researchers own calculation based on ASI data 1998-2007 www.iosrjournals.org
IOKR (Rs. Of VA per man- years) -11.4 7.8 -0.4 13.8 -41.0 11.1 9.7 11.3 27.0
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From table 2, it is noticed that labor productivity or the average output/ employment ratio had, except for the years 1998-99, 2001-02 and 2003-04, shown wide variation; it was high in 2007-08, negative in 1999-00, 200102 and 2003-04. After 2003-04 it became positive. Table 3 Comparison between the Indexes of Growth of Remuneration/ wages and Labor Productivity Remuneration/Wage- Bill Labour productivity Index Year Index 1998-99 100.0 100.0 1999-00 106.0 98.7 2000-01 111.5 96.4 2001-02 110.5 93.6 2002-03 119.6 96.8 2003-04 122.8 95.6 2004-05 135.5 103.7 2005-06 151.7 112.1 2006-07 178.4 123.8 2007-08 205.5 128.8 Source: Researchers own calculation based on ASI data 1998 -2007 Table 3 reflects that the labor productivity index was 100 in the starting year 1998-99, thereafter, it declined almost consistently till the year 2003-04. In other words, during the period 1998 to 2003-04 there were full fluctuations in labor productivity. A sharp uptrend in labor productivity was noticed during the period 2004 to 2007, on the other hand the trend in the wage bills and total remuneration have been noticed increased in overall period of the study. Table 4 Indexes of Combined Input and Efficiency of the 2- Digit Manufacturing Industry Index of Index of Net Index of Index of Combined Index of Year Value Added Labor Capital Inputs Efficiency 1998-99 100.0 100.0 100.0 100.0 100.0 1999-00 106.5 98.7 102.7 99.8 106.8 2000-01 98.7 96.4 102.2 98.0 100.8 2001-02 99.2 93.6 110.4 98.2 101.1 2002-03 118.5 96.8 113.7 101.4 116.9 2003-04 139.5 95.6 121.0 102.5 136.1 2004-05 178.7 103.7 131.2 111.1 160.8 2005-06 214.4 112.1 155.2 123.7 173.3 2006-07 272.0 123.8 182.8 139.8 194.7 2007-08 331.1 128.8 216.1 152.4 217.3 Source: Researchers own calculation based on ASI data 1998 -2007 Table 5 Growth Rate of Efficiency, Combined Input, Net Value Assed, Capital and Labor Combined Efficiency Input Capital Labor Year 1999-00 6.8 -0.2 2.7 -1.3 2000-01 -5.6 -1.8 -0.6 -2.3 2001-02 0.3 0.2 8.1 -2.9 2002-03 15.6 3.2 3.0 3.4 2003-04 16.5 1.1 6.4 -1.2 2004-05 18.1 8.6 8.4 8.4 2005-06 7.7 12.6 18.3 8.1 2006-07 12.4 16.0 17.8 10.4 2007-08 11.6 12.6 18.2 4.0 Annual Average 8.3% 5.2% 8.2% 2.6% Rate of Growth: Source: Researchers own calculation based on ASI data 1998 -2007 www.iosrjournals.org
Net Value Added 6.5 -7.3 0.5 19.4 17.8 28.1 20.0 26.9 21.7 13.3%
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Table 4 and table 5 indicate that the annual growth rate of the composite index of labor and capital productivity in the 2 -digit manufacturing industry during 1998-99 to 2007-08, was 8.3. These tables also demonstrate that index of efficiency fell marginally to 100.79 in the period 2000-01. Thereafter, efficiency climbed steadily till 2007-08. The same fluctuation was seen in year to year growth rate. The annual average rate of growth of the combined input was observed 5.2% whereas the annual average rate of growth of capital, labor and value added was 8.2%, 2.6% and 13.3% respectively. III.I Production function analysis of 2- digit manufacturing industry in India Production function in a manufacturing Industry is a value adding process and it expresses the technical relationship that exists between factor of inputs and output. It is typical in economics to consider output as a function of two prime factor of production namely labor and capital. In this study, output has been defined as the net value added by manufacturing Industry, capital as fixed Investment and Labor units in terms of Number of workers in the Industry. The Cob Douglas form of production function has been used for this time series data of the manufacturing industries to estimate the productivity of the factors for the year 1998-99 to 2007-08. This form of production function not only satisfies the basic economics laws but also easy in its computation and interpretation of the estimated parameters. The estimated Equation is: lnQ = ln(-16.64) + ln(1.48)K + ln(0.463)L R2 = 0.97 (F- Value: 114.05) (t-value: 4.455 ) (t- value: .591) The estimated results for the factory sector of India make it clear that the elasticity of capital with respect to value added is about 1.48 and that of labor is 0.463. The estimated result make it clear that the Indian manufacturing Industry(Factory sector) is more capital intensive and are experiencing increasing return to scale. The significant negative coefficient of time indicates a downward trend in total factor productivity. The F- test for the model also indicates it is highly significant, F = 114.05 at sig F= .0000. this result also indicates that the t- test for the significance of individual independent variables indicates that at the significance level of 0.95(confidence level of 95%), only capital is statistically significant in the model, other variable i.e labor are individually not significant at 95 percent confidence limit. The explanatory power (R2) of the model is capable of explaining nearly 97 percent of the changes in the value added which are due to the changes in the labor and capital.
IV.
Conclusion, Limitations and Suggestions
IV.I Conclusion The objective of this study was to investigate and analyze the incremental output - capital ratio of 2 digit manufacturing Industries and to analyze the average incremental output-labor ratio of 2 digit manufacturing Industries. The findings of this empirical study show that all the formulated hypotheses were in the same direction as was hypothesized in the study. From the above results and analysis we could draw the conclusion as below: Incremental output- capital ratio has increased more than the average output- capital ratio. Average Output Labor Ratio has increased during the entire study period. Estimates of Total factor Productivity reveals a significant decline in Total Factor Productivity in 2 digit manufacturing Industries. According to the result of Cobb Douglas production function, Increasing Return to Scale is in operation in this industry. IV.II Limitation of the study: The limited database, short time period and selected variables are some of the major limitations of this study. However in future research scholars or students can work on more variables which will provide better experience to the students for their bright career. IV.III Suggestions It is obvious from the study that embarking upon changing macro policies will not be enough to improve efficiency and total factor productivity in this industry. There is need to restructure the Indian 2-digit manufacturing Industries. Emphasis should be given to technological progress, skill levels of the workers, foreign investment, and level of competition. Lack of availability of inputs, Inadequate infrastructure, inappropriate policy support from various government organisation are some of the challenges in front of these manufacturing industries, so alternative policies must be formulated by the policymakers for these Industries.
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Production Coefficient Analysis of Indian Manufacturing Industry References

[1] [2] [3] [4] R. Mahadevan, Is There a Real TFP Growth Measure for Malaysia's Manufacturing Industries?, ASEAN Economic Bulletin,19(2),August-2002,178-190. M. Page, Firm size and technical efficiency: Application of production frontiers to Indian survey data, Journal of Development Economics, 16(1-2),1984, 129-152. M. Parameswaran, Economic reforms, Technical change and Efficiency change: firm level evidence from capital goods Industries in India, Indian Economic Review, 39(1), 2004, 239-260. S. Hussain, Performance of Small Scale Industries in India and the Challenges Ahead, Indian Journal of Industrial Relations, 39(3), 2004, 391-401
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IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 3, Issue 4 (Sep,-Oct. 2012), PP 01-08 www.iosrjournals.

Objectives Of The Study

Hypotheses For The Study

Figure 1: Conceptual framework of faculty job satisfaction and student satisfaction.

Results And Findings

[14]. [15]. [16]. [17]. [18]. [19]. [20].

Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

(Department of Business Administration, The Millennium University, Bangladesh)

Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

OBJECTIVE OF THE STUDY

GENERAL BUSINESS MEASURES

Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

180000 160000 140000 120000 100000 80000 60000 40000 20000 0

SCB's SB's PCB's FCB's IB's

Bank Types SCB's SB's PCB's FCB's IB's Total

2011 35.86 5.31 38.33 7.88 12.6 100

2005 60 50 40 30 20 10 0 SCB's SB's PCB's FCB's IB's

2006 2007 2008 2009 2010 2011

Bank Types SCB's SB's PCB's FCB's IB's

Total IB's FCB's SB's SCB's

Bank Types SCB's SB's PCB's FCB's IB's Total

(Taka in 2011 42481.07 12226.49 54035.67 9828.87 20877.67 139449.8

150000 100000 Advances 50000 0

Figure 4: advances by types of banks

50 45 40 35 30 % Advances 25 20 15 10 5 0 2005 2006 2007 2008 Year 2009 2010 2011

SCB's SB's PCB's FCB's IB's

Figure 5: market share of total advances

Bank Types SCB's SB's PCB's FCB's IB's Total

100 50 0 2006 -50 Year 2007 2008 2009 2010 2011

IB's FCB's PCB's SB's SCB's

Figure 6: growth of advances by type of banks

Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

Table 7: Total business (deposits + advances) by type of banks

(Taka in Crore) 2010 2011

Figure 7: total business by types of banks

2011 33.58 6.78 38.51 7.52 13.60 100

Market 20 Share 10 of 0 Total Business

SCB's SB's PCB's

Figure 8: market share of total business by types of banks www.iosrjournals.org 14 | Page

Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

Bank Types SCB's SB's PCB's FCB's IB's Total

PCB's SB's NCB's

0 2005 2006 2007 2008 Year 2009 2010 2011

Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

SCB's SB's PCB's FCB's IB's Total

2011 .1 .87 .83 3.6 1.57 .09

MANAGEMENT SOUNDNESS MEASURE

Bank Types SCB's SB's PCB's FCB's IB's

2011 0.80 1.06 .73 .33 .81

0.95 1.28 0.74 0.57 0.83

Source: Economic trends by Bangladesh Bank (2005-2011)

SCB's SB's PCB's FCB's IB's

Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

SOCIAL PROFITABILITY MEASURES

(percent) 2011 51.57 20.63 22.55 0.73 4.52 100

60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011

SCB's SB's PCB's FCB's IB's

Bank Types SCB's SB's PCB's FCB's

62091 16036 22072 1280 3903

57894 15300 26640 1508 7440

2010 56797 15153 20367 1776 7907

2011 54591 15456 32671 2139 10793 115650