Kindler January - December 2012

KINDLER
THE JOURNAL OF ARMY INSTITUTE OF MANAGEMENT KOLKATA

(FORMERLY NATIONAL INSTITUTE OF MANAGEMENT CALCUTTA)
VOLUME XII NUMBERS 1 & 2 ISSN 0973-0486 JANUARY-JUNE 2012, JULY-DECEMBER 2012
Page No.
EDITOR'S NOTE 3
STUDENTS CONTRIBUTIONS
Articles :
Social Media: A Business Perspective 7
W. Shalini
Key Performance Indicators 15
Warija Paurel
The Management of a Formula 1 Racing Team 21
Rahul Moitra
Role of Capital Market in the Economic Development of India 27
Sayak Naha
Poster Presentation on Exploring the Factors Motivating Consumers' 31
Buying Behaviour Towards Baby Wipes
W Shalini, Prerna Tyagi, Dr. Shovan Chowdhury

& Prof. Protik Basu
Maruti Suzuki Strike at Manesar: An Analysis 37
Sagun Sharma, Warija Paurel, Shweta Singh, Pinkey Biswas,
Varsha Nayer & Ritwik Ranjan
Workers Participation in Management: A Generic View 43
Anirban Saha, Anisha Sengupta, Debalina Chakraborty,
Koushik Sarkar, Namrata Banerjee & Priyadarshini Bharadwaj
Can HRIS Capture Human Imagination and Creativity? 61
Lavlesh Upadhyay, Amardeep Singh, Deepika Singh, Pankaj Sati,
Madhurima Roy & Amit Guha
Page No.
Project Synopses
Leveraging the Customer Service Point (CSP) Concept for 71
Economic Development of Rural Areas
Yugal Kishore Jha
Performance Management for Workmen Staff: How much Objective 75
the Model is? How can it be made more Objective?
Rajsekhar Mandal
Kara: Consumer Knowledge & Ways of Promotion 85
Amit Kumar
Market Research and Brand Promotion of Media Com Karaoke in Mumbai 89
Abdullah Qureshi
Youth Smartphone Usage, Behaviour and Relationship Study 93
S. Murali Choudhary
Editor's Note
16 December 2012: The brutal 'Nirbhaya' incident occurred which caused an uproar in
India with spontaneous and unprecedented mass uprising by the youth of India in Delhi
and in other states in solidarity. Thousands of protesters clashed with police and battled
Rapid Action Force units; they were lathi charged, shot with water cannons and tear gas
shells and arrested too but could not be contained. The uprising forced Hon'ble President
of India, Pranab Mukherjee to promulgate The Criminal Law (Amendment) Ordinance,
2013, which provides for amendment of Indian Penal Code, Indian Evidence Act and
Code of Criminal Procedure, 1973, on laws related to sexual offences. The Indian Parliament
considered dedicating a new criminal-law Bill in the name of 'Nirbhaya'. Indian Finance
Minister Mr. P. Chidambaram announced, in his annual budget speech, a Rs 10 billion
Nirbhaya Fund to empower and promote safety for women. On March 8, 2013, Michelle
Obama and Secretary of State, John Kerry posthumously honoured 'Nirbhaya' with an
International Woman of Courage Award. 'Nirbhaya' died of her injuries but awakened the
youth of India to realize that if they want they can bring about a change. This Special Issue
of 'Kindler' salutes that youth power of India and devotes the entire Issue to articles written
only by the students of Army Institute of Management, Kolkata.
Our students have shown their academic interests by participating in poster presentation
in International Conference and by winning the 2nd runner up at Money Matters essay
writing competition arranged by Calcutta Management Association. Both the contributions
are published in this Issue. Besides these, students have tried to find management lessons
in Formula 1 car racing and analyzed the reasons behind the Maruti Suzuki strike at
Manesar. The students have also delved into issues related to social media and Key
Performance Indicators. Whether technology in the form of HRIS can capture human
imagination and creativity has also been assessed. Using case studies, the students have
also given a generic view of Workers' Participation in Management. Synposes of summer
internship projects, ranging from topics on promotion of face wipes and Karaoke, behavior
pattern and usage of smartphone by the youth to leveraging Customer Service Point for
economic development of rural areas and Performance Management System for workmen
at SBI, have also been included in this Issue.
In view of the uncompromising standard that 'Kindler' has maintained so far in terms of
its quality of content, I understand that readers may find this issue a bit 'wanting'. However,
keeping in mind the broader objective of encouraging the young blood into the world of
academic publications, I am confident that the readers will overlook the shortcomings with
their own magnanimity.
Dr. Parveen Ahmed Alam
Editor, Kindler
ARTICLES
6 Kindler Vol. XII Nos. 1 & 2 January-June 2012, July-December 2012
Kindler Vol. XII Nos. 1 & 2 January-June 2012, July-December 2012 7
Social Media: A Business Perspective
W. Shalini*
INTRODUCTION
The mid 1990s saw one of the biggest surges in the world and that was the Internet
and the World Wide Web and everyone wanted a piece of the action. Investors were
giving millions away to start up companies embracing the web. However, in 2000-2001,
thousands of companies and billions of dollars were lost in what was infamously called
the dot-com bubble. The survivors of this burst bubble continued to help to improve
the infrastructure of the internet and with that Web 2.0 was born. Like any big phenomena,
Web 2.0 started out as a simple concept but later developed into a new advancement
in current technology.
The world saw the rise of blog technology taking form; web coding took a leap forward
with the use of AJAX (Asynchronous JavaScript and XML), RSS (Really Simple
Syndication) feeds being used to keep someone updated on the latest happenings
across the world in one location but more importantly social networking websites were
beginning to form.
In its current form, Internet is primarily a source of communication, information and
entertainment, but increasingly, it also acts as a vehicle for commercial transactions.
Since the explosion of the web as a business medium, one of its primary uses has
been for marketing. Soon, the web could become a critical distribution channel for the
majority of successful enterprises. One among them is marketing and spreading brand
communication through Social networking sites. Social networking websites are online
communities of people who share interests and activities or who are interested in
exploring the interests and activities of others. They typically provide a variety of ways
for users to interact, through chat, messaging, e-mail, video, voice chat, file-sharing,
blogging and discussion groups. As World Wide Web grew in popularity, social networking
moved to web-based applications. In 2002, social networking era really started. In
2006, anyone with an e-mail address could sign up in social networking sites.
Now advertisers are resorting to social media due to the availability of a diverse audience.
They utilize this fantastic platform to promote their brand and create a brand identity,
that is popular, through interactive communication strategy that is highly effective.
Most of the advertisers present their ads in an interactive form as people then tend to
*
Student, Batch - MBA 15 (2011-13): Email: wshalini24@gmail.com
pay more attention and find out more about the product. There are various forms of
brand communication available in social networking sites.
SOCIAL MEDIA
The meaning of the term social media can be derived from two words which constitute
it. Media generally refers to advertising and the communication of ideas or information
through publications/channels. Social implies the interaction of individuals within a group
or community. Taken together, social media simply refers to communication/publication
platforms which are generated and sustained by the interpersonal interaction of individuals
through the specific medium or tool.
Wikipedia defines the term as: Social Media is the democratization of information,
transforming people from content readers into content publishers. It is the shift from a
broadcast mechanism to a many-to-many model, rooted in conversations between
authors, people, and peers.
Social media uses the wisdom of crowds to connect information in a collaborative
manner. Social media can take many different forms, including Internet forums, message
boards, web blogs, wikis, podcasts, pictures, and video. It is made up of user-driven
websites that are usually centered on a specific focus (Digg = news) or feature (del.icio.us
= bookmarking). Sometimes, the community itself is the main attraction (Facebook and
Myspace = networking)
Social media is a media for social interaction, using highly accessible and scalable
publishing techniques. It uses web-based technologies to turn communication into
interactive dialogues.
Andreas Kaplan and Michael Haenlein defines social media as a group of Internet-
based applications that are build on the ideological and technological foundations of
Web 2.0, which allows the creation and exchange of user-generated content.
Social media represents low-cost tools that are used to combine technology and social
interaction with the use of words. These tools are typically Internet or mobile-based like
Twitter, Facebook, MySpace and YouTube.
SOCIAL NETWORKING SITES
A social networking site creates network communication among the user community.
Though social networking sites serve for communication purposes among special interest
groups, the marketing strategy has also entered this medium for its reach. People get
exposed to various kinds of brand communication through this media. They tend to
interact with the brand and acquire information about the brand and its service in an
interesting way.
SOCIAL MEDIA IN BUSINESS
Social media advertising is a paid form of brand, service or business promotion and
requires a proper and planned communicative message and budget. Advertising is
customer-centric in nature. Customers play an important role in any major or minor
communication because they are the ones who are going to decide the fate of the
advertising communication. Some benefits of social network advertising include:
1. Popularizing the brand, idea or service to the target group.
2. Informing target audience about the brand or services present in the market.
3. Encouraging healthy competition in the market.
4. Providing social benefits for the brand.
5. Encouraging the audience to interact and keep them intact with the brand.
Advertising on the Internet provides a major contribution to brand competition in the
market. Advertising here not only provides information about a product or service but
also promotes innovation. Besides, it also facilitates consumer satisfaction. Big and
small companies, individuals from all walks of life, major and minor events, concepts,
etc., now-a-days lay their base on social network advertising to get recognized in the
market. With over 200 million active users, Facebook, Twitter, YouTube and Google+
have become a personal, product and corporate branding hub in India. Every brand that
exists on social networking sites has the same core features and benefits, such as the
ability to create a page, share resources, add multimedia and much more. The effective
brand communication strategies are analyzed to find the impact among the users.
There are two benefits of social media that are important to businesses. They include:
1. Cost reduction by decreasing staff time.
2. Increase of probability of revenue generation.
Social media enables companies to:
1. Share their expertise and knowledge.
2. Tap into the wisdom of their consumers.
3. Enables customers helping customers.
4. Engages prospects through customer evangelism.
NEW TRENDS
Business in 21
st
century has had a paradigm shift in its approach in advertising, reaching
customers, being more customer-centric rather than product-centric. Some of them
have been mentioned which are more prominent in todays business world.
1. B2B (Business-to-Business) Websites have become the Ultimate Social Destination
In the consumer world, many companies send their visitors directly to Facebook.
This strategy seems to be based on the fact that people are already on Facebook.
Also many B2B companies not only need to update their websites on regular
basis, but add social components like Facebook and LinkedIn shares to allow
visitors to spread the word about a companys solutions to industry issues.
2. Blogging as Hub of B2B Social Media Success
A blog goes hand in hand with the B2B website as a social destination. Companies
that post valuable, educational content to their blogs at least once or twice a
week will drive traffic to their blogs (and websites) through a combination of
search and social media. Many B2B companies are challenged by the idea of
creating content, but there are enough resources and examples of compelling
content that marketers running blogs will publish posts that make a difference
in their traffic.
3. Social Media-led Generation
Many B2B companies launch dedicated programs to generate leads through social
media as a new strategy. This does not just need to apply for direct sales; companies
that have well-established processes for sharing leads in a variety of sales channels
can also benefit from social media-led generation. Every stage of the buying
process benefits from the kind of better educated customer that results from
significant social media content efforts.
4. B2B Marketers Expand Social Media Followers
Traditionally B2B marketers kept their social media follower counts to a minimum,
due to their limited customer base and prospect profiles; but lately they have
discovered the benefits of building greater reach through their social profiles.
Between the benefits of social search, a wider social graph and the necessity of
a broader audience in adjacent industries has become apparent.
5. Social Media Tree-huggers Lie Down in Front of Bulldozers
Brand awareness through social media is not a sustainable activity but has become
a must for ever industry apart from following traditional sales and marketing
approaches.
6. Measurement of ROI for Social Media
Measuring the ROI (Return-on-Investment) of social media requires one to
adequately bucket the expenses required to drive the results. This also means one
needs to have results that can be measured in Dollars/Rupees. Leads, which are
a proxy for sales, can be used for the return portion. These calculations can be
different for every B2B company, and one needs access to data as in the end it
will demonstrate the success of social media in the business.
7. Mobile Strategies Catch Up to Reality
As each mobile device is released, it sells more than its predecessor. B2B
companies are on course to develop their mobile strategies so they can move
forward with their customers.
8. The Beginning of the End for Twitter as a Social Network
Twitter will become more a place to go for news and information and less a social
network. Its minimalistic approach and reluctance to add features will ultimately be
its undoing.
9. Social Media Advertising
All social platforms have advertising components that let B2B marketers expand
their reach and get their content in front of their prospects and customers. As more
B2B companies show success with these methods, these auction style bids will
get more expensive which is still at its preliminary stage in India.
10. Social Media Adoption No Longer Driven by Hobbyists
Many marketers who were passionate about social media and had fun keeping up
with the latest platforms and over-shared with all the other early adopters moved
on and now work for agencies, technology companies and startups. People who
are most responsible for the broad support of social media in businesses are new
to this communication revolution and have not mastered the art of Social Media.
11. Social Media Support for Offline Activities
As social media has become a key component in the marketing mix, it has
become an important driver for offline activities like trade shows and direct mail.
This will not be competing for budget resources, but has become a part of a
coordinated plan to improve results of traditional tactics.
PROBLEMS WITH SOCIAL MEDIA
1. Social media works like a virus, i.e., once it has been uploaded or shared, it
spreads like wild fire, whether it is an advertisement, comment or blog. This can
act negatively for a companys image if not handled well, example: Volkswagens
advertisement blunder which was not handled well by the company made it on the
front page of Brand Equity blowing its reputation to the smoke.
2. Social media always gets pushed to the side in favour of other, more crucial
marketing tactics like advertising campaigns, Enterprise Data Management Solutions
(EDMs), Pay per Click (PPC), etc. This means that traditional marketers are not
able to properly immerse themselves in this field to become true experts.
3. Only 22% companies have a dedicated Social Media Manager which is not a good
sign in the current market scenario with cut-throat competition and increasing
social population.
4. Smartphone users have increased recently in the past 3 years. With this, the
number of applications and web-surfing has increased. There were around 100
billion Smartphone application sessions during Q1 2012. Smartphone owners spend
as much time using social networking applications such as Twitter and Facebook
as they do playing games. Many companies have not yet adapted to this change
and many do not have mobile compatible sites.
5. There are many risk management issue associated with social media and dangers
relating to privacy implications.
6. A Community Manager does not make a Social Media Manager. One must possess
knowledge from insights to Corporate Affairs to Public Relations to Marketing to
Customer Service and Recruitment and also manage campaigns, agencies
stakeholders, glean insights from monitoring and establish the right feedback process
to translate these to actionable improvements, etc.
7. Universities are too slow to catch up and have only recently added social media
to their curriculum, so no one is properly trained in this field within the current
workforce.
8. To be successful in social media, one must be a bit of an all-rounder. One needs
to be good at marketing, strategy, analytics, reporting, and customer service.
CONCLUSION
Social networking tools are spreading into core areas of the value chain, including the
Marketing and Communications, Human Relations, and Customer Service Departments.
Small and medium-sized businesses are actively using social networking channels to
generate leads, but this remains a growth opportunity for larger companies as they
are still traditional in their marketing approach.
Social Media is a great tool for businesses to get their message and brand out there.
It also helps build quality relationships with the younger generation of future consumers.
The question remains though, how long will these services last? MySpace has turned
into spam dump. Facebook is getting there slowly but surely, and Twitter is beginning
to.
Beyond all the positivity there are many negatives also associated with social media,
like risk management and educating people and companies about the danger and
privacy of information and data. Also most of the Social Media Managers are not
trained to exploit social media to their benefits. Information spreads like virus online
and hence sometimes wrong information or bad reputation or comments can spread
like wild fire and tarnish the image of an organization even before any damage
management can be done.
Gone are the days of print media, gone are the days for the need to travel halfway
across the world in order to hold a business meeting, and even the days when people
have to go to a mall to buy clothes. Organizations must realize that if they dont get
into the business of doing business through social networking websites like Facebook,
LinkedIn, MySpace, they will see their profits drop and what used to be household
names will be nothing but a past long forgotten by a technology-driven world.
Of course, there are the traditionalists and business leaders who think otherwise, but
that Draconian thinking will hurt and when those businesses who have been in business
for 50-100 years will realize too late that they made a mistake. So embrace the
social networking world, even though it is completely flawed and outright dangerous
to society. Businesses need to communicate with their customers and employees
somehow because that memo that was just sent 5 minutes ago will feel like you just
got it last week. That is how communication works and that is the core of how social
networking websites and businesses are being run.
REFERENCES
1. http://socialmediab2b.com/2012/01/b2b-social-media-marketing-statistics-revealing/12
Revealing Stats About B2B Social Media Marketing
2. http://socialmediab2b.com/2011/12/b2b-social-media-predictions-for-2012/12 B2B Social Media
Predictions for 2012
3. http://socialmediab2b.com/2011/12/b2b-social-media-predictions-for-2012/#ixzz27EmFxnnE
4. http://www.forbes.com/sites/gyro/2012/07/10/making-nice-social-media-and-its-big-impact-on-
big-business/FORBES
5. http://en.wikipedia.org/wiki/Social_networking_service
6. http://blogs.cisco.com/news/social_networkings_impact_on_modern_business/
7. http://businessimpactofsocialnetworking.wordpress.com/
8. http://www.bligoo.com/media/users/1/50369/files/Business%20-%20Social%20Networking
%20Impact.pdf
9. http://hbswk.hbs.edu/item/6187.html
10. http://businessimpactofsocialnetworking.wordpress.com/statistics-of-social-networking-and-
business/
11. http://thesocialskinny.com/99-new-social-media-stats-for-2012/
12. http://thesocialskinny.com/100-social-media-statistics-for-2012/
13. http://thesocialskinny.com/the-biggest-problem-with-social-media-today-and-how-to-turn-it-into-
an-opportunity/
14. http://www.ijecbs.com (International Journal of Enterprise Computing and Business Systems-
ISSN(online):2230-8849, Vol. 1 Issue 2 July 2011)
Key Performance Indicators
Warija Paurel*
ABSTRACT
Over the years, studies have shown on how performance and productivity rates shoots up when
workers know that they are being watched and evaluated. Thus, when we know that we are being
evaluated, we try our best to perform as productively as we can. Also the performance of any
business greatly relies on KPI or key performance indicators. Thus, knowing how to manipulate
these can bring significant results for businesss performance.
INTRODUCTION
To accurately measure, control, improve employee productivity there is a need to
implement productivity metrics. Key Performance Indicators, also known as KPI or Key
Success Indicators (KSI), help an organization define and measure progress toward
organizational goals. They are actually metrics used in quantifying corporate objectives
in line with the strategic performance of every worker and department in the workforce.
KPI help the company determine the strengths of the workforce and capitalize on them.
It also helps weed out the weaknesses in the workforce, and appropriate solutions can
then be determined.
OBJECTIVE
KPI aids in determining the proper course of action when certain situations take place.
In their most basic form, KPIs determine how the human assets of the company
contribute to the overall performance of the company itself.
HOW TO CONTROL BUSINESS PERFORMANCE WITH KPI
The underlying concept here involves a lot of factors. For business performance to be
controlled in a positive way, these factors have to be addressed. This includes:
*
Student, Batch - MBA 16 (2012-14); Email: anuwari10@gmail.com

The design of ones KPI
Data collection that is to be plotted
onto the KPI system
Analysis and usage of collected data
KPI design is the most important factor to be considered. There are a lot of indicators
that one can include however the selection of indicators according to their relevancy is
important. These can vary from one organization to another, since different companies
have their own definite goals and objectives. Taking these things into consideration the
organization can control business performance with KPI.
WHAT DOES A KPI REFLECT?
Key Performance Indicators are quantifiable measurements, agreed to beforehand, that
reflect the critical success factors of an organization. They will differ depending on the
organization, e.g.,.
A business may have as one of its KPIs, the percentage of its income that
comes from return customers.
A school may focus its KPI on graduation rates of its students.
A Customer Service Department may have as one of its KPIs, in line with
overall company KPIs, percentage of customer calls answered in the first minute.
A KPI for a social service organization might be number of clients assisted
during the year.
An organization that has as one of its goals to be the most profitable company in our
industry will have KPIs that measure profit and related fiscal measures. Pre-Tax Profit
and Shareholder Equity will be among them. However, Percent of Profit Contributed
to Community Causes probably will not be one of its KPIs. On the other hand, a school
is not concerned with making a profit, so its Key Performance Indicators will be different.
KPIs like Graduation Rate and Success in Finding Employment after Graduation,
though different, accurately reflect the schools mission and goals.
If a companys KPI is Increased Customer Satisfaction, that KPI will be focused
differently in different departments. The Manufacturing Department may have a KPI of
Number of Units Rejected by Quality Inspection, while the Sales Department has a
KPI of Minutes a Customer Is on Hold before a Sales Rep Answers. Success by the
Sales and Manufacturing Departments in meeting their respective departmental Key
Performance Indicators will help the company meet its overall KPI.
KPIs MUST BE QUANTIFIABLE
If a Key Performance Indicator is going to be of any value, there must be a way to
accurately define and measure it. Generate More Repeat Customers is useless as a
KPI without some way to distinguish between new and repeat customers. Be The Most
Popular Company wont work as a KPI because there is no way to measure the
companys popularity or compare it to others.
It is also important to define the KPIs and stay with the same definition from year to
year. For a KPI of Increase Sales, you need to address considerations like whether
to measure by units sold or by dollar value of sales. Will returns be deducted from sales
in the month of the sale or the month of the return? Will sales be recorded for the KPI
at list price or at the actual sales price?
You also need to set targets for each KPI. A company goal to be the employer of choice
might include a KPI of Turnover Rate. After the Key Performance Indicator has been
defined as the number of voluntary resignations and terminations for performance,
divided by the total number of employees at the beginning of the period and a way to
measure it has been set up by collecting the information, the target has to be established.
Reduce turnover by five percent per year is a clear target that everyone will understand
and be able to take specific action to accomplish.
HOW TO GO ABOUT IT?
Key Performance Indicators are used as a performance management tool. KPIs give
everyone in the organization a clear picture of what is important, of what they need to
make happen. It is used to manage performance. Everything the employees in the
organization do should be focused on meeting or exceeding those KPIs. KPIs can also
be posted everywhere: in the lunch room, on the walls of every conference room, on
the company intranet, even on the company web site for some of them. Both the target
and the progress towards that target for each KPI should be shown. People will be
motivated to reach those KPI targets.
Let us now understand the concept of KPI with the help of a corporate example.
KEY PERFORMANCE ANALYSIS OF TCS
TATA CONSULTANCY SERVICES
The comprehensive and independent EquaTerra survey reveals an 85% level of customer
satisfaction with Tata Consultancy Services (TCS), versus an industry average of just
66%. And TCS scored an unprecedented 93% on the recommendation index, the
measure of how likely Nordic IT decision makers are to recommend TCS to their peers.
In terms of meeting expectations (delivering on what was promised), TCS again ranked
first with 83% (versus an industry average of 64%), delivering on its promise of
Experience Certainty.
The annual EquaTerra Nordic Service Provider Performance and Satisfaction Study
takes into account customer satisfaction, quality, flexibility, innovation, risk acceptance,
and transition management. According to Jef Loos, Director at EquaTerra, these results
represent a very strong performance by TCS. The company achieved excellent results
in all key performance indicators.
Quality of Delivery + Quality of Experience = Customer Satisfaction
Across Sweden, Finland, Norway and Denmark, TCS is helping more and more
companies by delivering unique business value within IT.
TCS combines both quality of delivery and quality of experience. Throughout the
region our people are flexible, eager, open, collaborative, responsible and accountable,
claims Amit Bajaj, Director Nordic & Baltic Region, TCS. Its a powerful combination,
embedded in our corporate culture, which assures customer satisfaction.
Tata Consultancy Services is the # 1 Service Provider in the Nordic region:
Delivers on its promise of Experience Certainty
93% likelihood that IT decision makers will recommend TCS
Dominates the industry in customer satisfaction, quality, flexibility, innovation,
risk acceptance, and transition management.
TCS Performance on Selected Key Performance Indicators
KPI Description TCS TCS 2nd-best
Rank Performance Provider
1) Quality
In general, the service provider meets 1 84% 77%
the service levels as set out in the
Service Level Agreement
2) Risk
The service provider shoulders 1 73% 69%
reasonable commercial risk and makes
necessary investments to reduce that risk
3) Innovation
The service provider actively identifies 1 75% 64%
innovation opportunities
4) Flexibility
The service provider is flexible in bringing 1 80% 69%
changes to the contract
5) Transition
The service provider has completed the 1 83% 75%
transition successfully on time and budget
and with the required functionality.
Key to scores: Totally agree 100%; Agree 80%; Agree 60%; Somewhat Disagree
40%; Disagree 20%; Totally Disagree 0%
CONCLUSION
Performance Management is crucial to the success of any business, particularly where
pay for performance is concerned, but its equally difficult to translate that recognition
into action. Companies have to track and measure the right things and make sure the
metrics are top of mind across the organization. The measures have to be business-
based, of course, and reviewed frequently for relevance in todays churning, challenging
times.
REFERENCES
1. http://www.tcs.com/worldwide/europe/nordic/en/no1.html/ last accessed on 20.3.13
2. http://management.about.com/cs/generalmanagement/a/keyperfindic.htm/last accessed on
05.12.12
3. Parmenter, D. (2007), Key Performance Indicators, John Wiley & Sons, Canada
The Management of a
Formula 1 Racing Team
Rahul Moitra*
The year - 1906, the country - France, the place - Le Mans.
What started with 32 cars, years ago, has now grown into one of the most popular
sports in the world. It appeals to millions and attracts huge sponsorships and the
champions are looked up to as Super humans. Why? Because it feeds the human need
to push technology to the limit and see how far we can go. Formula One cars race at
speeds of up to 340 km/h and reach 5G in corners.
There are 12 teams in Formula 1 and each team has 2 drivers. Hence, 24 drivers
participate in a race.
WHAT IS FORMULA 1 ?
Formula One (F1 or Formula1) is the highest class of single seater auto racing sanctioned
by FIA (FdrationInternationale de lAutomobile).
The FIA is a non-profit association established as the Association Internationale des
Automobile Clubs Reconnus (AIACR) on 20 June 1904 to represent the interests of
motoring organizations and motor car users. To the general public, the FIA is mostly
known as the governing body for many auto racing events.
The F1 season consists of a series of races, known as Grand Prix, held on purpose-
built circuits and public roads (street circuits). There are 12 teams in F1. Each team has
2 main drivers who can take part in qualifying and on race day. In total, every race can
have maximum of 24 drivers according to present team structure and rules (2011).
According to the current point system, in each race, top 10 drivers are awarded points
from 25 to 1. The same score is being added to the drivers point scoring table and
constructor (teams) point scoring table. The results of each race are combined to
determine two annual World Championships, one for the drivers and one for the
constructors.
Each racing drivers, constructor teams, track officials, organizers, and circuits are
required to be holders of valid Super Licences, the highest class of racing licence
issued by the FIA to be part of F1.
*
Student, Batch - MBA 16 (2012-14); Email: why.yahoo@hotmail.com
Racing Calendar is the yearly championship calendar decided by FIA. The selection of
race tracks where the race will be held depends upon the contracts between the
Formula One Administration (FOA), tracks officials. FIA and teams put their say in
finalizing the calendar to suit the general public interest and F1 members that includes
drivers, teams, officials, administration, etc.
The circuit basically represent a country or a state. They are built as Government
projects or private companies projects. The complexity of final agreements can vary but
generally FOA demands a fees to conduct a race on a track with FIA race director and
his team looking after the safety issues concerned with the track.
Basically, FOA is an authority representing Formula One Group or a group of companies
that holds the commercial rights to conduct F1 World Championship. FIA is an authority
managing all the norms, regulations, protocols and safe happenings during a year.
Before moving into the detail of a race weekend, it is the sole responsibility or wish of
the team to select drivers to race for their team. Generally drivers give test before the
start of season and are selected to be part of the team.
Now, over a race weekend, there are three practice sessions, namely, Free Practice
Session 1, 2 and 3. Generally FP1 and FP2 takes place on Fridays unlike in Monaco
where it takes place on Thursdays. FP1 and FP2 are of 1hr 30min sessions. FP3 is
a quick 1hr session on Saturday before qualifying. All the races have same fixed time
according to their local time.
These practice sessions are meant for teams to get aware of the prevailing conditions
on the track, weather effect on machinery and tyres, petrol usage, to build strategies,
work on pit stop, drivers testing the new components, learning the track and behaviour
on track put into different conditions. But allowing a third driver (Reserve Driver) to
participate, this helps in grooming a new aspirant in F1.
Fastest times set by drivers are taken as final standing during practice sessions. The
number of laps run during any session is uncontrolled.
Qualifying, also record the fastest times set by drivers but in 3 parts. In Q1, all 24
drivers participate of which last 7 are knocked out. Rest 17 take part in Q2, where again
the last 7 are knocked out. In the final session Q3, 10 drivers fight for pole position (1st
position to start the race). The qualifying hour is split into three sessions of 20, 15 and
10 minutes, with a seven-minute break between the first and second sessions and an
eight-minute break between the second and third sessions. Like practice session, the
number of laps run during any session is uncontrolled.
In the first two periods, cars may run any tyre compound they wish, and drivers eliminated
in these periods are allowed to change their choice of tyres prior to the race. Cars
taking part in the final period, however, must start the race with the tyres used during
their fastest lap (exactly the same tyres, not just the same compound), barring changes
in weather that require usage of wet-weather tyres. Also, if driver had not participated
in the final session due to some reason (mainly slow cars refusing a challenge and
save tyres), he can use any type of tyre during the race.
Race day is the final showdown during a Grand Prix weekend. The race usually is of
1hr 30mins with 50-60 laps depending upon the time per lap and number of kilometres
to be covered during a race remain more or less around 305 kms.
Formation on the race track is done according to their qualifying positions. A formation
lap is done to warm the tyres, then the race is started as the five red lights illuminate.
Every driver is on his own on the track but the two drivers of the same team can drive
for each others benefit. Every driver has to use two compounds of tyres during a race.
For this, he requires at least one pit stop.
Pit stop is carried in a pit garage following a pit lane usually run beside start finish on
the track. Every team has their own pit crew who are responsible for carrying out body
work on car that normally includes tyre changes and adjustment of front wing. From
2010, re-fuelling during a race is banned, so cars have to be loaded with complete tank
before the race starts. During an accident or damage to the car, pit crew has to repair
the car within as minimum time as possible to bring the car back on track. This usually
includes removing busted tyres, front wing change, below the car minor repairs, etc.
Heavy damage leads to drivers retirement from the race.
There are various flags shown during a race. The most common ones are: Yellow Flag
(Slow down as caution), Red Flag (Session Stopped), Green Flag (All Clear), Chequered
Flag (Indicates session end).
Other than the normal scenario, there can be penalties during qualifying and race days
or penalties from last race can be carried forward to the next race. FIA is very particular
about the safety and protocols to be followed. Any discrepancies in the two can lead
to severe punishments during race, qualifying with fines. There can be ban from the
race or from the whole season also. Stewards are the race monitors/directors. Their
orders are mandatory for the teams to be followed. In normal cases, a drive through
penalty or a 5-grid penalty is given to a driver. This depends upon the unsafe release
during a race, unsafe driving, causing accidents, qualifying issues, penalties from last
race, gear box change, etc.
Most people do not realize Formula 1 is a Team Sport, and there is a dedicated team
of hundreds behind each driver. This article is focused on the management of the
Formula 1 teams and shed light on the heroes behind the curtains.
Formula 1 teams follow a hierarchical organization structure.
WHAT IS AN ORGANIZATION STRUCTURE?
Organization Structure is basically a framework, typically hierarchical, within which an
organization arranges its lines of authority and communications, and allocates rights
and duties. Organizational Structure determines the manner and extent to which roles,
power, and responsibilities are delegated, controlled, and coordinated, and how
information flows between levels of management.
The structure depends entirely on the organizations objectives and the strategy chosen
to achieve them. In a centralized structure, the decision making power is concentrated
in the top layer of the management and tight control is exercised over departments and
divisions. In a decentralized structure, the decision making power is distributed and the
departments and divisions have varying degrees of autonomy. An organizational chart
illustrates the organizational structure.
In a hierarchical organization employees are ranked at various levels within the
organization, each level is one above the other. At each stage in the chain, one person
has a number of workers directly under him, within his span of control. A tall hierarchical
organization has many levels and a flat hierarchical organization will only have a few.
THE HIERARCHICAL STRUCTURE OF A TYPICAL F1 TEAM
Team Boss
This varies from team to team. Some teams are owned by the car manufacturers, such
as Ferrari, which is managed by Jean Todt, the CEO of the company. Other teams are
privately owned, and hence the Team Boss is the owner himself; an example of this
is Sir Frank Williams of Williams F1.
Technical Director
The Technical Director is the Head of the Engineers, Designers and R&D Scientists
who construct the cars.
The Technical Director is the backbone of a F1 Team. The Chief Aerodynamicist, Chief
Designer and Chief of Research and Development report to the Technical Director.
Chief Aerodynamicist
The Chief Aerodynamicist is the leader of the team of Aerodynamicists whose job is to
ensure the car is designed in such a way that the wind resistance is low and the car
has high down force. When the car has low down force it sticks to the race track and
makes the car go faster.
Chief Designer
The Chief Designer determines the basic layout of the car.
Commercial Director
This person plays a very important role in getting revenue or the team. The Commercial
Director tries to get sponsorships. Many brands vie for positions on the cars to advertise
their products. Sponsorship is one of the main ways of earning for F1 teams.
Drivers
Each Formula One team has two drivers. A Formula One driver is out to beat his rivals,
including the other driver on his team.
Drivers have many qualities, including strength, endurance, mental alertness, quick
reflexes and a desire to be the best race car driver in the world.
The organisation structure is diagramnitically given below :
Team Boss
Technical Director
Chief Aerodynamicist
Chief Designer Commercial Designer
Pit Crew Drivers Engineer
In conclusion, it can be said that Formula 1 is a very challenging and ever evolving
sport and is slowly becoming popular in India and the rest of the developing countries.
REFERENCES
1. Hotten, R. (2000), Winning: The Business of Formula, Texere
2. Piola, G. (2012), Formula 1 Technical Analysis, Giorgio Nada Editore
3. www.formula1.com/last accesed on 14.10.12
4. www.f1fanatic.com/last accesed on 14.10.12
Role of Capital Market in the Economic
Development of India*
Sayak Naha**
The term Financial Market consists of two types of markets which are interrelated.
The first type of market we can talk about is the Money Market; from which the short
term financing is done by the companies (or specified types of organisation). The term
Capital Market refers to the long term financing market. Capital Market can further be
divided according to the type of financing done.
Firstly the Financial Institutions provide long term financing which is necessary for
economic development in India. Let us discuss about the structure of Financial
Institutions in India and their role in economic development of India.
The classification of Financial Institutions are as follows:
All India Development Financial Institutions like IFCI, IDBI and ICICI etc.
Specialisation Financial Institutions like EXIM Bank, TFCI ltd. and IDFC ltd.
Investment Institutions like LIC, GIC etc.
Refinance Institutions like NHB and NABARD.
State level Institutions like SFCs and SIDCs.
Other Financial Institutions like ECGC and DICGC.
These institutions have provided India a strong Capital Market and the financial assistance
they have provided has helped in developing industry in India which is of essence for
steady economic development. The financing done by such Financial Institutions has
grown by leaps and bounds in the last decade. The total assistance sanctioned by such
institutions in 1961-62 was Rs. 60.5 crores and the total disbursements was Rs. 29.8
crores. The growth in assistance has been huge as we can see that in 2004 the total
assistance sanctioned was Rs. 8,01,998 crores, of which Rs. 5,82,156 crores were
disbursed.
As far as the quantitative aspect goes, we can see that the institutions themselves have
grown along with the industry. However, qualitative aspect is more important as such
Financial Institutions have been crucial for developing industry as they were built with
development as their focus. These institutions provide long term assistance to new
*
2nd runner up at Money Matters essay writing competition arranged by Calcutta Management Association
**
Student, Batch - MBA 15 (2011-13): Email: sayak.n20@gmail.com
enterprises and small and medium-sized industry established in the backward areas.
The importance of the institutions can be clearly established by stating that developed
states like Maharashtra, Gujarat and Tamil Nadu had taken up 45.7 % of the total
assistance sanctioned in the year 2003. Thus, we can see the states who have been
financed by DFIs at a greater rate has also developed at a greater rate.
However, with all the positives that the DFIs have, they are facing great difficulties in
the post-liberalization (post-1991) period. They have now great competition in commercial
banks and NBFCs. The advantage that DFIs previously had by taking up loans at
concessional rates from government and Reserve Bank of India has been erased and
they now have to raise funds at market-related interest rates. Hence, in the current
scenario, commercial banks and NBFCs have become more relevant as a catalyst for
economic development.
Secondly, the greater part of the Capital Market is the securities market, which can be
further classified into:
Gilt-edged market
Corporate Securities market.
The Gilt-edged market is the market in government securities. Therefore, this is a risk
free market. The market is divided into primary (new issues) market and secondary (old
issues) market. The primary market is totally controlled by RBI and here is a basic
difference between India and other countries (UK, USA, etc.). Other countries also
allow other players into the Gilt-edged market, making it prone to market changes but
India does not do so. This helped in reducing the impact the recent recession had over
India. While many European and American economies really struggled, the secure
nature of this market provided some sort of stability to Indian economy.
The Corporate Securities Market is controlled by the rules and regulations of the Securities
and Exchange Board of India (SEBI). This is perhaps the most important part of the
Capital Market in the current free market system of economy. This is also segregated
into the primary and secondary market. The primary market is of utmost importance to
the newly formed ventures. Capital can be raised through prospectus, offer for sale,
private placement or offering rights issue. The secondary market is basically operated
through the stock exchanges which are highly organized markets for purchase and sale
of second-hand quoted or listed securities.
The primary market moves a large amount of resources and hence, it is so important.
Whereas in the pre-liberalization era, there were lower amounts raised by private players
(in 1990-91 they raised Rs. 4,312 crores) now the amounts have grown significantly (in
2007-08 they raised Rs. 63,638 crores). But due to the global slowdown, the resource
mobilization got reduced to just Rs. 14,671 crores in 2008-09. Hence, we can see that
resource mobilization from the hands of the saver to the hands of the investor is done
by the Capital Market.
The Capital Market in India has played a major role in fulfilling certain fundamental
duties which is very important for the economic development of any country. A few
of the important roles fulfilled by the Capital Market are discussed below:
Financing the five year plans- Government securities like treasury bills and
market loans sold to commercial banks and other institutions have played a
very important part in fulfilling the capital needs of the government, thereby
continuing to fulfill the five year plans which have been the basis of economic
development in India. In the past, the government has been able to appropriate
for itself more than 50% of the savings of the household sector.
Mobilization of savings and acceleration of capital formation- In developing
countries like India where demand for investments are continuously increasing,
Capital Market plays a very important role of mobilizing savings from different
sections of the population to the industry. In addition to this, the stock exchange
is a mechanism which ensures both reasonable return and liquidity, hence
capital formation is accelerated.
Raising of long term capital- Capital Markets basic function is to provide
long term capital to companies. Capital Market solves the conflict between
investors will of not tying up too much of their resources for too much time
and will of companies of having long term capital. This is done through the
efficient functioning of the primary and the secondary market together.
Proper channelization of funds- An efficient Capital Market not only creates
liquidity through its pricing mechanism but also functions to allocate resources
to the most efficient industries. This ensures effective utilization of funds in
public interest.
Provision of variety of services given by the Capital Market- There are
a variety of services which the Capital Market provides in order to ensure
smooth functioning of the economy. The services are as follows:
Provision of underwriting facilities
Assistance in the promotion of the companies
Participation in equity capital
Expert advice on management of investment in Industrial Securities.
In current days and age, Capital Market plays a huge role in development of the
economy. It not only provides resource allocation facilities but also provides a risk
management facility by diversifying the risk throughout the economy. The proper
functioning of Capital Market improved the financial information quality throughout the
economy as it played a major role in adopting stronger corporate governance norms.
Plus it is the structure of the Indian Capital Market which is not letting it go into spiral
of recession. The global slowdown is still having its effect upon the Indian economy and
whereas the FIIs (Foreign Institutional Investors) are withdrawing money from the
economy, the Indian Institutional investors like Insurance companies and mutual funds
came to the rescue under SEBI guidelines so that market sentiment does not go down.
Thus the confidence of the investors remained and the Indian economy was impacted
a little less than other world economies in its development.
Lastly we can see that how the Capital Market situation has changed in India and how
it has been beneficial. The spectacular development of the Capital Market in India
during the last decade is evidenced by the steady growth in the quantum of fresh
capital raised, as already brought out. This testifies the inherent strength and ability to
adapt the Capital Market to the emerging needs and challenges.
In spite of capital constraints, there has been massive growth of business and trade
world-wide. After own capital and loan capital, a new form of capital known as lease
capital has emerged in the Capital Market.
The economic growth has been driven by the expansion of services that have been
growing consistently faster than other sectors. It is argued that the pattern of Indian
development has been a specific one and that the country may be able to skip the
intermediate industrialization-led phase in the transformation of its economic structure.
According toIndex of Economic FreedomWorld Ranking, an annual survey on economic
freedom of the nations, India ranks 123rd as compared with China and Russia which
ranks 138th and 144th respectively in 2012.
Hence, we can say that the Capital Market has pushed the Indian economy in the
correct direction.
REFERENCE
1. Misra, S K and Puri, V K (2012), Economic Environment of Business, Himalaya Publishing
House
Poster Presentation on:
Exploring the Factors Motivating
Consumers' Buying Behaviour
Towards Baby Wipes
#
W Shalini
*
, Prerna Tyagi
*
, Dr. Shovan Chowdhury
**
& Prof. Protik Basu
***
BACKGROUND
REALITY
Wipes constituted less than 1% of retail hygiene value sales in India in 2010. With
such products not being traditionally popular in the country, the category still relied
on niche consumer segments or season-dependent sales.
Traditionally Indians never used wipes apart from a handkerchief and mothers
always used water to clean their babies. Many doctors also say that water is the
best practice rather than wipes. But lately with changing lifestyles wipes have
become more common in India.
Wipes can be a paper, tissue or nonwoven; they are subjected to light rubbing or
friction, in order to remove dirt or liquid from the surface.
Consumers want wipes to absorb, retain or release dust or liquid on demand. One
of the main benefits that wipes provide is convenience using a wipe is quicker
and easier than the alternative of dispensing a liquid and using another cloth/paper
towel to clean or remove the liquid.
Baby care industry comprises segments which address the needs of taking care
of an infant between 0-4 years of age.
Baby wipes are wet wipes used to cleanse the sensitive skin of infants. These are
saturated with solutions anywhere from gentle cleansing ingredients to alcohol-
based cleaners.
# The Poster was presented at International Marketing Conference (MARCON) 2012 at IIM Calcutta
*
Students, Batch 15 (2011-13), Army Institute of Management Kolkata Email: wshalini24@gmail.com;
prernatyagi_026@yahoo.co.in
**
Assistant Professor, IIM Kozhikode Email: meetshovan@rediffmail.com
***
Associate Professor, Army Institute of Management Kolkata Email: protik_basu@yahoo.com
REASONS
The birth rate has been growing since the early 2000s (and is expected to continue
until 2014) after a long period of decline in the 1990s.
Parents are using baby wipes for more reasons such as on-the-go cleaning after
eating or playing, so extending the use beyond the traditional nappy-changing
function.
Almost a third of parents buy whichever brand is on special offer although a third
opt for the most reliable regardless of price.
There has been a key observation on better absorption so extending the time
between changes and reducing overall volume.
About four in ten parents buy own-label and as they are becoming a more viable
alternative to the brands for many as retailers have improved the quality.
Baby wipes came into visibility due to increasing standard of living of people in
India and constant exposure to international culture and habits.
RESEARCH PURPOSE
To analyze the finer perspective for the consumer sector in India for baby wipes.
Translating consumer requirements into technical requirements so that researchers
and corporate strategies could interpret the same quantitatively.
To identify relevant factors which motivate consumers buying behaviour in baby
wipes.
RESEARCH DESIGN
Exploratory Study: Semi-structured in-depth qualitative interviews for consumers and
customers to get their insights on baby wipes.
Sample Size: Determined by confidence interval approach
Factor Analysis: Multivariate factor analysis has been used to condense the information
contained in a large number of original variables into a smaller set of variants with
minimum loss of information.
Quality Function Deployment: The process of QFD starts with Voice of the Customers
(VoC), the customers requirements are stated in their own language. It addresses the
customer satisfaction regarding the technical design of any product or service.
House of Quality: HOQ shows the way in which each of the customers requirements
is technically defined and how experts plan to design the product/service that fulfils the
customer requirements in a prioritized way.
EMPERICAL EVIDENCE
I love the smell of baby powder, but the scent on those wipes is EXTREMELY
strong. Its so strong that you could use the wipe, wash your hand twice and still
smell the scent on your hands for hours later.
These gave our newborn rashes. We now use them on our sensitive toddlers face
for wipe down and they work fine for that, just not sensitive enough for a new born
for the cost you might as well get something that works without the rashes.
They are thick so obviously they are not floppy and soft like fluff because theres
more of the actual wipe.
Occasionally they do leave a bit of white fuzz, but it doesnt seem to bother either
of my kids, who both have very sensitive skin.
Perfect for my son who has eczema and is allergic to everything. The wipes are
thick which makes cleaning up messy situations easier. And they dont leave as
much white residue on clothing when you wipe up messes on clothing, like the
cheap brands do.
They are also great for a quick clean up and the scent is strong but pleasant, very
similar to the Johnson & Johnson lotion, which is nice change from other alcohol
disinfectants.
These wipes are alcohol-free as well as flushable. Thats hard combination to find
and these wipes are also hard to find.
We dont have to use as many, thanks to how large and thick they are, and the
price is decent per wipe, so they also and up being the most economical.
HOUSE OF QUALITY
House of Quality for the study has been presented in Annexure-1.
IMPLICATIONS
The inference drawn from this research may be used widely for the baby wipes
industry.
Baby wipes industry is still in its nascent stage in India; based on the findings the
organization may create improvement plans for the future.
Ranking of the quality factors is a good reference as one of the major tasks for
improving the product design of baby wipes.
It would help bridge the gap between product design and customer requirement
in order to make a customized and superior quality product through listening to
Voice of Customers (VoC) and satisfying their requirements.
This research would be useful to guide similar research work in other baby care
products.
The technical characteristics ensued from the research would help guide corporate
strategists and inventors to optimize resources in order to generate additional
revenue, profitability and customer satisfaction.
This result of the research would help create a distinctive competitive advantage
and core competence within the industry.
REFERENCES
1. Dube, L. Renaghan, L. M. and Miller, J. M. (1994). Measuring Customer Satisfaction for
Strategic Management, Cornell Hotel and Restaurant Administration Quarterly, 35(1): 39-47
2. Hauser, J. R. and Clausing, D. (1988). The House of Quality, Harvard Business Review,
66(3): 63-73
3. Johnson, Richard A and Wichern, Dean W. (2007). Applied Multivariate Statistical Analysis
6/E, Pearson Education International
4. Kuo, Hui-Ming and Chen, Cheng-Wu. (2011). Application ofqualityfunction deployment to
improve thequalityof Internet shopping website interface design, International Journal of
Innovative Computing, Information and Control, 7(1): 253-268
5. Shil, Nikhil Chandra and Das, Bhagaban. (2010). Product Planning Through HOQ: An Algorithm,
IUP Journal of Management, 8(4): 61-75
6. Shahin, Arash and Chan, J. F. L. (2006). Customer Requirements Segmentation (CRS):A
Prerequisite Technique for Quality Function Deployment (QFD), Total Quality Management &
Business Excellence, 17(5): 567-587
7. Suhr, Diana D. (2006). Exploratory or Confirmatory Factor Analysis? SUGI 31 Proceedings,
San Francisco, California, Paper 200-31
8. Temponi, Cecilia, Yen, John and Tiao, W. Amos. (1999). House of Quality:A Fuzzy Logic-
based Requirements Analysis, European Journal of Operational Research, 117(2): 340-354
ANNEXURE 1
Maruti Suzuki Strike at Manesar: An Analysis
Sagun Sharma*, Warija Paurel*, Shweta Singh*,
Pinkey Biswas*, Varsha Nayer* & Ritwik Ranjan*
ABSTRACT
The latest Labour Bureau data point out that industrial disputes leading to strikes and lockouts are
on the rise, after registering a decline in 2011, and officials expect the trend to worsen in the
coming months. India is a continent whose least well known feature is its working class and the
struggles it engages in. Therefore this report aims at lifting the veil on the situation of industrial
disputes, from the example of a significant strike which took place three times (June, September
and October 2011). Also analysis of the situation is put forward to better understand the things
which are of major concerns.
INTRODUCTION
Maruti Suzuki is a subsidiary company of Japanese automaker Suzuki Motor Corporation.
It has a market share of 44.9% of the Indian passenger car market as of March 2011.
In February 2012, the company sold its 10th million vehicle in India. It is India and
Nepals leading automobile manufacturer and the market leader in the car segment,
both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of
the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The
Government of India held an initial public offering of 25% of the company in June
2003. As of 10 May 2007, the Government of India sold its complete share to Indian
financial institutions and no longer has any stake in Maruti Udyog.
The Indian labour it hired readily accepted Japanese work culture and the modern
manufacturing process. In 1997, there was a change in ownership, and Maruti became
predominantly government controlled. Shortly thereafter, conflict between the Government
and Suzuki started. Labour unrest started under management of Indian Central
Government. In 2000, a major industrial relations issue began and employees of Maruti
went on an indefinite strike, demanding among other things, major revisions to their
wages, incentives and pensions.
After elections in 2000, the new Central Government pursued a disinvestment policy.
It proposed to sell part of its stake in Maruti Suzuki in a public offering. The workers
union opposed this sell-off plan on the ground that the company will lose a major
business advantage if it does not remain in control of the government.
*
Students, Batch - MBA 16 (2012-14); Emails: sagun06sharma@gmail.com; anuwari10@gmail.com;
shwetasi ngh316@gmai l .com; bi swas.pi nkey5@gmai l .com; varshavarshanai r@yahoo.com;
ritwikranjan.13@gmail.com
The stand-off between the union and the management continued through 2001. The
management refused union demands citing increased competition and lower margins.
The Central Government prevailed and privatized Maruti in 2002. Suzuki became the
majority owner of Maruti Udyog Limited.
THE UNRESTS
Maruti-Suzuki workers went on strike first on 12th October, 2000 when nearly 4,700
employees of Maruti Suzuki (MSIL), formerly Maruti Udyog Limited, boycotted work,
protesting the companys demand for an undertaking of good conduct from them. Daily
output was cut by 86% as the company forbade entry to workers not signing the
undertaking. The MU Employees Union treasurer said that signing it would have meant
losing their fundamental rights. It was also a protest against the managements decision
to link bonus and incentives to productivity and efficiency. The primary concern of the
management was that production should not stop on account of agitation. Workers
from suppliers were roped in to do the work and along with supervisors and managers,
Maruti got the plant started within a weeks time. There was also indirect (political)
pressure from the BJP Government on the Union and the issue came up for discussion
in Parliament. The management meanwhile agreed to drop insistence on individual
workers to furnish a good conduct undertaking, but sought certain safeguards, and
stipulated that the law would take its own course in regard to disciplinary action. The
deadlock continued for 90 days. Finally on 9th January 2001, the strike broke on the
managements terms. The Union had to accept the new terms on production-linked
incentives and bonus. The face saver was that no undertaking had to be given. However,
the 2000-01 confrontation did not die down.
In August, 2005, the Maruti Udyog Employees Union (MUEU) sought the Prime Minister
Dr Manmohan Singhs intervention to resolve several issues with Suzuki management
since the Suzuki management had summarily dismissed 24 Union activists without
holding any enquiry, another 36 after ex-parte enquiry, and 32 more for not signing the
undertakings imposed by the management. Twenty-six were charge-sheeted and
compelled to take VRS, while hundreds of other employees also took VRS. The Union
also alleged that Maruti Udyog had replaced over 2000 permanent employees with
contract workers, following the October 2000 dispute. The PM met them on 3rd August
and voiced apprehension in taking up the issue, as the echo of the labour trouble at
Hondas facility had barely died down.
A Maruti spokesperson said the companys Union (formed by ex-employees of the
company) had long since been de-recognized and therefore was not representative of
the workers. The workmen had been notified that only those workers could enter the
factory who gave an undertaking in writing that they would not indulge in any activity
which adversely affected the production and discipline and that workmen who do not
give the undertaking would be deemed to be on illegal strike. In terms of the contract
of employment the workmen are duty-bound to adhere to norms of discipline and give
normal output. Suzuki, which had already increased production from 5,50,000 in
2005-06 to nearly 8,00,000 in 2008-09, decided to step up capacity further to one
million per annum by 2009, earmarking Rs 9000 crores investment for 2008-2011.
Exports had also risen significantly (The Economic Times 5/5/09).
MANESAR VIOLENCE: JULY 2012
On 18th July 2012, Marutis Manesar plant was hit by violence as workers at one of
its auto factories attacked supervisors and started a fire that killed a company official
and injured 100 managers, including two Japanese expatriates. The violent mob also
injured 9 policemen. The companys General Manager of Human Resources had both
arms and legs broken by his attackers; unable to leave the building that was set ablaze,
he was charred to death. The incident was the worst-ever for Suzuki since the company
began operations in India in 1983.
Since April 2012, the Manesar union had demanded a five-fold increase in basic salary,
a monthly conveyance allowance of 10,000, a laundry allowance of 3,000 a gift with
every new car launch, and a house for every worker who wants one or cheaper home
loans for those who want to build their own houses. In addition to this compensation
and normal weekend/holidays, the union demanded the current 4 paid weeks of vacation
be increased to 7 weeks, plus each worker have 40 days allowance of sick and casual
leave - for a total of 75 days.
Maruti said the unrest began, not over wage discussions, but after the workers union
demanded the reinstatement of a worker who had been suspended for beating a
supervisor. The workers however, claimed, harsh working conditions and extensive
hiring of low-paid contract workers as the reason for this. The management insisted that
they must wait for completion of inquiry underway before they can take any action on
the employee suspended for beating up his supervisor. The management was then told,
you will be beaten up after we get a signal. Thereafter, the workers broke up into
groups, went on to set the shop floor as well as all offices afire. They searched for
management officials and proceeded with a barbaric beating of the officials at the site
with iron rods.
The police, in its First Information Report (FIR), claimed on 21 July that Manesar
violence may be the result of a planned violence by a section of workers and union
leaders. The report claimed the workers actions were recorded on close circuit cameras
(CCTVs) installed within the company premises. The workers took several managers
and high ranked management officials hostage. The responsible Special Investigative
Team official claimed, some union leaders may be aware of the facts, so they burnt
down the main servers and more than 700 computers. The recorded CCTV footage
has been used to determine the sequence of events and people involved.
As per the FIR, police have arrested 91 people and are searching for 55 additional
accused. Haryana Government has started investigation and 90 odd workers have
already been picked up. FIR by Maruti named 55 workers and 600 others.
Maruti Suzuki, in its statement on the unrest, announced that all work at the Manesar
plant has been suspended indefinitely. A Suzuki spokesman said Manesar violence
wont affect the auto makers business plans for India. The shutdown of Manesar plant
is leading to a loss of about Rs 75 crore per day. On July 21, 2012, citing safety
concerns, the company announced a lockout under The Industrial Dispute Act 1947.
On July 26 2012, Maruti announced employees would not be paid for the period of lock-
out in accordance with labour laws of India. The company further announced that it will
stop using contract workers by March 2013. The report claimed the salary difference
between contract workers and permanent workers has been much smaller than initial
media reports - the contract worker at Maruti received about 11,500 per month, while
a permanent worker received about 12,500 a month at start, which increased in three
years to 21,000-22,000 per month. In a separate report, a contractor who was providing
contract employees to Maruti claimed the company gave its contract employees the
best wage, allowances and benefits package in the region.
Contact workers complained that they are made to work on all heavy and laborious
work while a permanent worker doesnt do such work but imposes his authority on
them. Moreover, the permanent workers are paid more than twice of what the contract
workers get.
FINANCIAL IMPACT
Maruti unrest has hit its net realization. For the quarter ended June 2012, its operating
margins slid by more than 200 basis points year-on-year (YOY). At 7.3%, the company
reported its lowest Q1 margins in the past 4 years.
Input cost (raw material) increased by 25% YOY
Employee cost increased by 33%
Employee cost/Sales = 2.2% (highest in past 4 years)
ANALYSIS
After scrutinizing the Maruti Suzuki strike, several issues have been brought to the
fore that have been silently plaguing Industrial Relations over the years, of which the
following are of particular interest.
Maruti Suzuki, like many other companies, engages over 50 per cent of its workforce
as contract labour and temporary workers. This is a common practice used by employers
to save on costs.
The problem is that in a country with great unemployment, the desire for permanent
employment, particularly in a blue chip company like Maruti Suzuki, is understandably
high. Reducing the permanent workforce is extremely difficult for industrial organizations
given the legal implications and business obligations. Consequently, employers have
realized that the archaic labour laws of the country are out of tune with the times and
changing business environment. Another factor that pre-disposes organizations to use
contract labour is that although the reduction of workforce or closure is allowed by law,
it is only after permission is granted by the Government which is often time consuming
and tedious.
As per reports, Maruti Suzuki did not recognise the union at its Manesar plant and
the authorities did not register it. While the Right of Association is guaranteed by the
Constitution of India, there is no concomitant right to represent at the bargaining
table. In other words, it is not mandatory for the employers to bargain with a union,
except in the State of Maharashtra, where the Court decides the representative status.
Another reason why collective bargaining is not welcome in the Indian context is that
unions often have political connections. Multinational organizations operating in the
country need to be sensitive to these cultural nuances.
The young workforce in India is marked by high aspirations and flexibility. This gives
rise to an opportunity to practice and shape industrial relations proactively. Gone are
the days when increasing productivity was resisted tooth and nail. There is, on the
contrary, a greater appreciation of the need to increase productivity. That several
organizations have productivity-linked incentives for workmen in new industries around
Pune is a testimony to the fact that a new era in industrial relations has arrived.
Organizations are increasingly appreciating that not just communication but a dialogue
with employees is essential. It calls for willingness to empathetically understand the
other point of view and act on it. This is the enlightened practice of industrial democracy.
CONCLUSION
High level of control exercised by management is an anathema to industrial democracy.
The soul of proactively managing industrial relations is promoting trust. Research
shows that increasing trust between the managers and workforce will lead to
strengthening corporate governance. Many industrial organizations have experimented
with redesigning jobs of employees to make them meaningful, and allowing greater
discretion in their hands.
The golden rule in resolving conflicts is that even disagreement must be arrived at
after an effort is made to understand the position of the other party. Sometimes there
are irreconcilable differences. Patience must be shown to talk, negotiate and resolve
the dispute.
Any partys conduct during the strife is indicative of its corporate persona, and a
certain brand is created in the minds of people at large. Moreover, it also creates a
mindset which employees at various levels tend to follow. It is imperative, therefore,
that the leadership knowingly takes steps to resolve the dispute.
Handling conflict does not end when people return to work. It is important to make
the employees feel engaged.
REFERENCES
1. Indo Asian News Service. Maruti violence may be planned: cops. New York Daily News, 21
July 2012
2. Police collect CCTV clips from Manesar MSIL plant. The Times of India, 21 July 2012
3. Maruti Suzukis statement on Manesar unrest. CNN-IBN, 19 July 2012
4. Maruti Suzuki declares lockout at Manesar factory. Report by Chauhan, C. P. The Economic
Times, 22 July 2012
5. Marutis Manesar plant closed for third day, Rs 210 cr loss so far. The Times of India, 21
July 2012
6. Maruti Suzuki to Stop Using Contract Workers in Direct Manufacturing. The Wall Street
Journal, 26 July 2012
7. Violence at Marutis Manesar plant: Bloodlust had taken over, eyewitness says. The Times
of India, 26 July 2012
8. We will de-recognise Maruti Suzuki Workers Union: Shinzo Nakanishi. Report by Mukherjee
S. & Das Gupta, S. Business Standard, 22 July, 2012
9. Manesar Red Alert. Indian Express, 23 July 2012
10. Beyond Maruti: Indias progress calls for a new set of labour laws and labour relations. The
Economic Times, 23 July 2012
11. Patwardhan,V. (2011) Four Industrial Relations Insights from the Maruti Suzuki Strike, SHRM
India
Workers Participation in Management:
A Generic View
Anirban Saha*, Anisha Sengupta*, Debalina Chakraborty*,
Koushik Sarkar*, Namrata Banerjee* & Priyadarshini Bharadwaj*
ABSTRACT
The participation of workers in management is a concept by which the principle of independent
and democratic administration of an organisation is ensured for attaining peace and harmony in
it. It is a symbol of joint and cordial relationship, which explains the extent of adjustment between
the workers and management for the maintenance of peaceful and harmonious environment in the
organisation. The technique of Workers Participation in Management (WPM) has been regarded
as the most powerful and strong behavioural tool for sustaining harmonious and cordial labour-
management relations in corporations. This article traces the growth of Workers Participation in
Management with detailed discussion on the practice of WPM in 3 different countries and in India
with the help of case studies.
INTRODUCTON
The concept of Workers Participation in Management (WPM) is a universally known
practise employed in one form or the other in most organizations particularly industrial
organizations. In France, it is known as the System of Works Committees, in the U.K.
it is referred as Joint Consultation, in Italy it is named as the System of Management
Committees, and in USA it is called Collective Bargaining. In the erstwhile Yugoslavia
where the practice has deep roots, it is known as the System of Self Management. In
the erstwhile Federal Republic of Germany, it was called Mitbestimmung meaning
nearer to the English expression of co-determination. Some observers argue that the
Japanese practise of Quality Circles is a form of WPM. The practice of WPM is known
as Histadrut in Israel, Party Guided Participation in Poland and Worker Partner
System in erstwhile Soviet Union. WPM is an extension of democracy to work place
to involve the people to work for the organization purpose.
Many observers opine that Participative Management is not alien to Indian culture and
Indian ethos. In the pre-Vedic period, when the social development was in the Gana
stage, people had gone for food gathering in groups after planning as to who should
*
Students, Batch - MBA 16 (2012-14); Emails : anirban.saha34@gmail.com; anishasen@gmail.com;
chakrabortydebalina920@gmail.com; koushiksarkar7@gmail.com; namrata.banerjee1@gmail.com;
angel.priya4u@gmail.com
do what and how. The same way the gathered food was also shared among them
mostly based on their needs after discussion among them. It is not uncommon that the
agricultural workers and the landlord of small holdings assemble in the paddy field and
discuss about work allotment and modus operandi, before commencing the actual
work.
EARLY FORMS OF PARTICIPATIVE MANAGEMENT
In 1910, it seems there was a system of informal consultation between management
and trade unions in the Cotton Textile Mills. In 1919, the Tata Iron and Steel Company
Limited had set up Works Committee with management and trade union
representatives. It was also reported that it did not last long due to trade union
rivalries. The Royal Commission on Labour (1931) had noted that Works Committees
can play an useful part in the Indian Industrial System. But Works Committees were
not established.
In 1920, Mahatma Gandhi had suggested that employers should not regard themselves
as the sole owner of mills and factories, of which they might be the legal owners and
that they should regard themselves as trustees. According to him, workers contribute
labour and brains, while shareholders contribute money to an enterprise and therefore
both should have a share in the prosperity. There should be perfect friendship and
co-operation among labour and employers. He advised that the Union should aim at
raising the morale and intellectual height of labour and thus by sheer merit, make the
labour master of means of production.
WORKERS PARTICIPATION IN MANAGEMENT DEFINED
WPM can be defined as a system of communication and consultation, either formal
or informal, by which employees of an organization are kept informed about the
affairs of the undertaking and through which they express their opinion and contribute
to the management decisions.
The genesis of the term can be derived from the Latin word participare, participation
means sharing/ taking part. Sharing, a bilateral process, has two aspects - functional
and motivational. WPM highlights both these aspects :
The functional aspect is the role in deciding.
The motivational aspect is the natural involvement after deciding.
Workers Participation in Management provides a chance to employees to take part
in the organisations decision making process. It assumes that there would be self
discipline and control among workers to ensure smooth running of management. On
the other hand, management would have the willingness to share the responsibility
and accept commitment by workers in executing decisions of management with
consultation of workers. The workers participation is conducted through the mechanism
of forums which provide for association of workers representatives. It may be at the
shop level, departmental level or at the top level.
OBJECTIVES OF WPM
The objectives of WPM are:
Pie enlarging NOT pie splitting.
Gain sharing - improving profitability.
Future sharing - improving competitiveness.
Power sharing - placing Stockholders and Stakeholders on an even keel.
Self actualization - availing opportunity to contribute meaningfully.
NEED FOR WPM
KF Walker Model
Theconcept of WPMcrystallizes the concept of Industrial democracy, and indicates an
attempt on the part of an employer to build his employees into a team which work
towards the realization of a common objective.
Theparticipation of each worker in management affairsshould strictly confine to the
field for which he is competent and concerned with. This must have been the reason
workers participation in management is defined as the involvement of workers only in
such areas of activities of the enterprises where they can make some positive contribution
for the betterment of the enterprise. Such participation should facilitate effective utilization
of available resources and effective execution of long-term expansion plans, including
diversification. It should facilitate the day-to-day functioning as well as inventions and
innovations.

Planning
Organising
Motivating
Controlling
Managerial
Hierarchy
Employee
Directors
Works
Council
Suggestions
Schemes
Area of
Collective
Bargaining
Union
Hierarchy
Participative
Supervision
and Job
Enlargement
Doing Workers
WPM in management has assumed great importance these days because of the following
advantages:
1. Reduced industrial unrest:Industrial conflictis a struggle between two organized
groups which are motivated by the belief that their respective interests are
endangered by the self-interested behaviour of the other. Participation cuts at this
very root of industrial conflict. It tries to remove or at least minimize the diverse
and conflicting interests between the parties, by substituting in their place,
cooperation, homogeneity of objects and common interests. Both sides are
integrated and decisions arrived at becomes ours rather than theirs.
2. Reduced misunderstanding: Participation helps dispelling employees
misunderstanding about the outlook of management in industry.
3. Increased organization balance:If workers are invited to share in organizational
problems, and to work towards common solutions, a greater degree of organizational
balance occurs because of decreased misunderstanding of individual and group
conflict. Participation leads to increased understanding throughout the organization.
People learn that others have problems beside themselves.
4. Higher productivity:Increased productivity is possible only when there exists
fullest co-operation between labour and management. It has been empirically
tested that poor labour management relations do not encourage the workers to
contribute anything more than the minimum desirable to retain their jobs. Thus,
participation of workers in management is essential to increase industrial productivity.
5. Increased commitment: An important prerequisite for forging greater commitment
is the individuals involvement and opportunity to express himself. Participation
allows individuals to express themselves at the work place rather than being
absorbed into a complex system of rules, procedures and systems. If an individual
knows that he can express his opinion and ideas, a personal sense of gratification
and involvement takes place within him. This, in turn, fortifies his identification with
the organization resulting in greater commitment.
6. Industrial democracy: Participation helps to usher in an era of democracy in
industry. It is based on the principle of recognition of the human factor. It tends
to reduce class conflict between capital and labour. It also serves as a support to
political democracy.
7. Development of Individuals: Participation enhances individual creativity and
response to job challenges. Individuals are given an opportunity to direct their
initiative and creativity towards the objectives of the group. This facilitates individual
growth.
8. Less resistance to change: When changes are arbitrarily introduced from above
without explanation, subordinates tend to feel insecure and take counter measures
aimed at sabotage of innovations. But when they have participated in the decision
making process, they have had an opportunity to be heard. They know what to
expect and why. Their resistance to change is reduced.
LEVELS OF WORKERS PARTICIPATION IN MANAGEMENT
Workers participation may exist at all levels of management; however it may vary from
management to management. Participation of workers in management is more likely at
lower level and less involvement at top level of management. Broadly speaking, there
are following the five levels of participation of workers in management:
1. Information participation of workers:It ensures that employees are able to
receive information and express their views pertaining to the matters of general
economic importance.
2. Consultative participation of workers:Under this kind of workers participation in
management, the participating workers may act as a consultant in the matters of
workers safety, health and their welfare at workplace. Even so, ultimate decision
lie in the hands of management, only employees views are considered as advice.
3. Associative participation of workers:This kind of workers participation in
management is next level to consultative participation. Under associative
participation of workers in management, the administration is morally bound to
accept and implement the opinion of employees.
4. Administrative participation of workers:Under this kind of participation of workers
in management, workers take part in discharge of managerial functions. Here
employees take part in decisions, which were already taken by the management,
thereupon employees have to select the best from those decisions for the purpose
of implementation.
5. Decisive participation of workers:Decisive participation is the highest level of
workers participation in management, where employees and management together
take decisions on matters related to workers welfare and production-related issues.
FORMS OF WORKERS PARTICIPATION IN MANAGEMENT
The forms of WPM vary from industry to industry and country to country depending
upon the political system, pattern of management relations and subject or area of
participation. The forms of workers participation may be as follows:
1. Joint Consultation Model
2. Joint Decision Model
3. Self Management or Auto Management Scheme
4. Workers Representation on Board
1. Joint Consultation Model:In the Joint Consultation Model, the management
consults with the workers before taking decisions. The workers represent their
view through Joint Consultative Committees. This form is followed in United
Kingdom, Sweden and Poland.
2. Joint Decision Model:In this form both the workers and management jointly
decide and execute the decisions. This form of participation is followed in U.S.A.
and West Germany.
3. Self Management or Auto Management:In this model, the entire control is in the
hands of workers. Yugoslavia is an example of this model where the state industrial
units are run by the workers under a scheme called Self Management or Auto
Management Scheme.
4. Workers Representation on Board:Under this method, the workers elect their
representative and send them to the Board to participate in the decision making
process.
Workers Participation in Management maybe informal or formal. In the formal form,
WPM takes formal structures such as Works Committee, Shop Councils, Production
Committee, Safety Committee, Joint Management Councils, and Canteen Committee,
etc. The informal form of workers participation may be such as the supervisor consulting
the workers for granting leave, overtime, and allotment of work/job or transfer of workers
from one department to another.
MODELS OF WPM
British System of Joint Consultation
Yugoslav System of Workers Council
German System of Co-determination or Mitbestimmung
The Japanese System of Quality Circles
The American System of QWL (Quality of Work Life)
DIFFERENT IMPLEMENTATION STYLES OF WPM
Different approaches are referred below to establish the fact that WPM is the ideal tool
for minimizing industrial conflict and maximizing productivity. Japanese approach of
Total Quality Management is given the prime focus. Alternative methods of Yugoslavian
approach are also brought into consideration. It further shows the contrasting American
approach of workers involvement in strategic level.
TOTAL QUALITY MANAGEMENT AT TOYOTA - A JAPANESE APPROACH
Toyota, the number one company in the Japanese automobile industry at present,
continues to strive daily to maintain and improve its current position. Competitiveness
in the Japanese automobile market is at a very high level, for it includes Nissan, with
high-level technologies; Honda, a worldwide known brand; Mitsubishi; Isuzu; Mazda;
and other major companies, including American and European giants. Among these
competitors, Toyota has maintained and improved the leading position over the years.
And this positioning has been the result of a harmonized effort, from the top executives
to the floor operators who work in the factories every day.
Toyota constantly strives to improve production and sales by viewing business in the
long term. The most important characteristic of Toyotas management is by all means
managements continued commitment to quality. Quality assurance at Toyota is
understood to mean the quality that makes customers willing to buy products, confident
in using them, and satisfied with their performance. To achieve this, in 1961 Toyota
introduced the Total Quality Control (TQC) method, which is considered one of the most
important factors of the companys success. TQC goes beyond product quality to also
include improvement in management as a whole. The impetus for introducing the
method was Toyotas poor results in its rivalry with Nissan, another major automobile
company in Japan. Compared to Nissans Bluebird (a particular cars name), Toyotas
Corona had many technical problems, and instead of gaining shares, Toyota only
gained a poor reputation. Toyota hoped to make use of TQC as a tool to increase both
the value of the company itself and the knowledge of each employee.
Toyotas TQC method requiring full-scale participation, from the top managers to
the floor operators soon proved to be successful and won the Deming Prize in
1965, followed by the Japan Quality Control Awards in 1970. The work towards the
Deming Prize had many effects on Toyota. The quality of products improved
remarkably and resulted in fewer defects in the production process. Maintenance
and improvement of quality went from an orientation on post-production inspections
to one emphasizing quality in the production process. Toyotas sales improved in
the domestic market as well as overseas. The reduction in production cost was
reflected in reduced car prices, which the customers welcomed, and sales improved.
Improvement was also seen at the management level from the viewpoint of human
relations and cooperation.
In the mid 1990s, TQC in Japan was reviewed, and the term control was changed
to management and the positive details of TQC were passed on to TQM. Also the
notion that TQM was not wholly equal to management was renounced, giving way
to the view that management must keep in mind the TQM way of thinking when
managing a company. So in 1995, TQC at Toyota became TQM, which was redefined
as an activity to energize people and organizational units and to change the nature
of the company so that it could respond flexibly to changes in the business
environment.
As shown in the figure titled, Toyotas 3 Basic TQM Perspectives, Toyotas TQM
consists of the integration of three main points that must be present in order for the
company to succeed: focus on customers, continual improvement, and participation by
all employees. Focus on customers means that customer needs are more important
than employee needs. As customers needs continue to increase, product quality and
operator skills must continue to improve. Also customer complaints cannot be answered
from companys point of view. The view of customers is likely to be different and must
be known if their trust is to be secured. Since customers are not likely to ever be
completely satisfied, the workplace must nurture a desire for continuous improvement.
The employees must keep thinking about how to obtain better quality, better evaluations,
and a better working atmosphere. If everyone is satisfied with the current status and
does not seek improvement, no kind of approach is likely to succeed.
Finally, TQM cannot be done by only a few employees; it must be accomplished by the
teamwork of the whole company. When all the employees understand their role in the
organization, the field and know what is expected of them, they are likely to have
confidence in themselves and will participate in further activities aggressively. As for
their daily work, employees need to know why they are doing a particular job and what
the intended result is. Without this vision they will not be motivated to think
unconventionally or to work extra hard for improvement. They need to feel trusted and
appreciated as employees.
QUALITY CONTROL CIRCLES IN TOYOTA
Toyota implemented QC Circle activity to educate its employees in the TQC method.
A QC Circle is a way to improve the work of each operator and the working place as
a whole by training everyone to think through and discuss solutions. With the spread
of this method throughout the company Toyotas quality improved remarkably.
From its beginning in 1962, the framework for Toyotas QC Circles involved all personnel
in every factory, from the top managers to the floor operators. The mere introduction
of QC Circles emphasized the importance being placed on quality improvement, and
the concept soon spread throughout the company. In 1967 Toyotas QC Circles adopted
a theme of Zero Defective Merchandise Activity, competing amongst themselves to
reduce the number of defective products. By 1974, the essential goals were met and
new Circles were formed and new themes were set. However, it was at this time that
the activity came to be systematic and more concerned with winning prizes than with
making good use of the QC Circle activity method. Despite the Circles well-deserved
reputations and highly refined presentation skills, the core of their activity had been
forgotten. In 1993, Toyota introduced New QC Circle Activity rededicating itself to
core objectives, such as improving both individuals skills and the working atmosphere.
The operators were to feel proud in being a part of the company and empowered to
set goals in their daily work mainly through a reshaping of attitude towards work,
quality, the company and customers. In essence, Toyota was saying, Lets return to
the basics and accept the challenge once more, and the result was improvement
both in the workplace and in corporate growth.
The employees were vital to the success of the New QC Circle Activity; they all had
to participate in creating an atmosphere of positive action and were provided many
opportunities to show their successes and exchange information with other Circle
members. As of 2001, Toyota had approximately 4,800 Circles, all of them continuously
aiming to improve the quality of their work and playing an important part in the
companys success. Figure below shows both the terminologies used in Toyotas QC
Circle hierarchy and the fact that all employees are involved. The figure is based on
Toyotas actual QC Circle Structure; the QC roles (right) are carried out by the personnel
indicated on the left.

Official Organization
Manager
Chief

Unit Leader
Senior Foreman
Foreman
Workers
Sub-Advisor
Assistant Caretaker
Adviso
r
Caretaker
Plant Promotion Committee
QC Circle Promotion Committee
QC
Circle leader
Circle Team
Circle Members
Leader
r
Organization of Toyotos QC Activities
WORKERS PARTICIPATION IN MANAGEMENT IN YUGOSLAVIA
In Yugoslavia, workers participation is known as self-management. The self-management
approach involves a mechanism where workers have a say in the organizational decision
making process. Unlike Japan, where the management takes suggestions from the
working group and then arrive at decisions on their own, in Yugoslavia, workers have
the right to take the final decision along with the management.
Workers participation, may broadly be taken to cover all terms of association of
workers and their representatives with the decisionmaking process, ranging from
exchange of information, consultations, decisions and negotiations, to more
institutionalized forms such as the presence of workers member on management or
supervisory boards or even management by workers themselves (as practiced in
Yugoslavia).- International Labour Organization (ILO).
The main implications of self-management system can be summed up in the following
points.-
Self-management concept considers workers as the integral part of the
organization and hence, allows them to formally participate in various aspects
of organizational functions.
Workers also develop the feeling of belongingness with the organization, and
strive together towards the achievement of common organizational goals.
In participative-management concept, the members of the organization assume
greater roles in managerial hierarchy after gaining ample experience from working
in the grass-root level to middle-level and finally to the higher level of
management. This long-time association with the organization further strengthens
the feeling of oneness among the members.
Self-management style gives immense importance to the workers and provides
them with the freedom of expression. The management and the workers are not
looked at separately. Workers have the equal opportunity to influence decisions
as that of the management.
The structure of such organization is that of an inverted pyramid, like the one shown
below.
FRONT-LINE WORKERS
MIDDLE LEVEL
MANAGEMENT
SENIOR
LEVEL
Therefore, this process provides an environment to include workers in the main stream
and creates a mode for better communication between all the three levels of the
organization. The work environment is designed in such a way so that the executives
and employees can work together to accomplish their tasks in participative and self-
managing way. This, by no way, means existence of laissez-faire management. Managers
and working class understand their own roles and responsibilities, and act accordingly
to achieve individual as well as organizational objectives.
AMERICAN SYSTEM OF QUALITY OF WORK LIFE (QWL)
Management styles are characteristic way of making decisions and relating to
subordinates. Managers have to perform many roles in an organization and how they
perform will depend on the various styles of management. It is an overall method of
leadership used by a manager. Management styles are profoundly influenced by the
social culture in which the organizations operate.
American management styles can be described as more individualistic in approach as
managers are responsible for decisions made within their areas of responsibility. It is
an authoritative style of management i.e. managers are single handedly involved in the
decision making process and then the subordinates are informed of the decision. They
believe in informative participation of workers in management. The workers have all the
right to information, all right to report their findings and suggestions but the decisions
are to be taken by the managers only.
Organizations in the United States have a formal bureaucratic organizational structure
and emphasize individual responsibility, with efforts to clarify and make explicit who is
responsible for what.
Managers in the US have a short-term orientation in planning and involve fewer people
in the decision making process. Decisions are made at the top-level and then they flow
down to the lower levels of the organization. They are solely held accountable for the
consequences of the decisions they make and therefore they are more likely to disregard
the opinion of their subordinates.
Although decision making is fast in the US organizations but since very few people are
involved in the decision making process so finally when the time for implementation
comes it is very time- consuming and requires compromises with those mangers having
different viewpoints. The same problem arises while communicating to the workers
down the line. It is because people come from varied cultures in an organization and
they have different perceptions of a particular problem.
As people come from diverse cultures and have different set of values it is important
to create a platform for shared interests. Managers in the US do not make an effort to
create a commonly shared organized culture within themselves as well as with their
workforce. It becomes difficult because professional managers as well as technical
people often have a closer identification with their profession than with a particular
company. The workers do not develop the sense of belongingness with the hierarchy
and hence with the company. They do not cultivate a sense of loyalty towards the
company.
The major distinguishing factor of American QWL System is that the managers in the
US use authoritative behaviour to make decisions i.e. the workers do not have a say
in the work related issues.
Planning in the Quality of Work Life is primarily short-term oriented. Decision making
is fast but implementation is slow as it requires compromise, often resulting in sub-
optimal decisions. Individual in the US organizations are responsible for their own
doings and are accountable for their own decisions.
There is a rapid turnover rate of the employees in the US organizations. The workforce
is not loyal to their organization but is loyal towards their profession. These managements
undertake training and development with hesitation as there is a fear of employees
switching over to other companies. The control is entirely in the hands of the superiors
and the control focus is on individual performance. The use of quality control circles is
very limited.
It can be clearly observed that the Americans do not quite believe in Workers Participation
in Management. They rather focus on expert solution to any specific or probable problems.
Instead of inculcating a sense of belongingness to the workers, they concentrate in
upgrading their standard of work life and safety of the work place. The abundance of
workforce ensures adequate replacements when someone leaves the organisation and
since they are only professionally involved in one specific job, replenishing ones absence
is much easier. They do not believe in workers active participation in managerial
decision making. It is because of this that the organizations in the US have a high
employee turnover rate. Americans stay in their managerial positions for a relatively
short period of time.
DIFFERENCE BETWEEN AMERICAN STYLE OF MANAGEMENT AND JAPANESE
STYLE OF MANAGEMENT
American style of management is often contrasted with the Japanese style of
management. The American and the Japanese styles of business management differ
broadly across the various managerial functions such as planning, organizing, staffing,
leading and controlling.
The major distinguishing factor between these two styles of management is that the
managers in the US use authoritative behaviour to make decisions while the Japanese
managers believe in participative decision making. Japanese management examines
the big picture and the long term when it comes to decision making. Subordinates are
involved in the decision making process.
Planning in the United States management is primarily short-term oriented. Decision
making is fast but implementation is slow as it requires compromise, often resulting in
sub-optimal decisions. Whereas the Japanese style of management it is of long-term
orientation, decision making is slow as subordinates are involved but implementation
is fast.
Individuals in the US organizations are responsible for their own doings and are
accountable for the same whereas in Japanese organizations, individuals are collectively
responsible and accountable. In Japan, there is an informal organization structure and
individuals have a common organization culture.
There is a rapid turnover rate of the employees in the US organizations whereas in
Japanese organizations people stay in the same company for many years. There is
slow promotion through ranks. Employees in the Japanese organizations are loyal to
the company unlike their US counterparts who are loyal towards their profession.
Organizations in the US undertake training and development with hesitation as there is
a fear of employees switching over to other companies whereas Japanese consider
training and development as a long-term investment.
The leaders of a group in US organizations act as decision makers and head of the
group whereas in Japanese organizations they act as social facilitators and group
member. In the US, the managers lay emphasis on face-to-face confrontation and
emphasize on clarity whereas in Japan, they try to avoid confrontation and lay emphasis
on harmony.
In the US, control is entirely in the hands of the superior whereas in Japan the control
lies in the hand of peers. In Japan the control focus is on group performance as
opposed to U.S. organizations where the control focus is on individual performance.
The use of Quality Control Circles is very limited in the US, whereas in Japan it is
extensive.
In all we can say that the US and Japanese styles of management differ significantly
from each other. They show that managerial perception of departmental effectiveness
differs in each country significantly.
CASE STUDIES: WORKERS PARTICIPATION IN MANAGEMENT- THE INDIAN
SCENARIO
CASE1: BHARAT HEAVY ELECTRICALS LIMITED.
Bharat Heavy Electrical Limited (BHEL) - the 7
th
largest Power Equipment manufacturer
of the world - is an Indian State owned integrated Power Plant Equipment Manufacturer
based in New Delhi, India. BHEL was established in 1964, ushering in the indigenous
heavy electrical industry in India.
Govt. of India granted Maharatna status to BHEL in February 1, 2013. BHEL is
engaged in design, engineering, manufacture, construction, testing, commissioning and
servicing of wide range of products for the core sector of the economy viz, power,
transmission, transportation, renewable energy, oil and gas, defence, etc . The products
mainly consist of gas and steam turbines, boilers, generators, heat exchangers, pumps,
programmable logic controllers, sensors, variable frequency drives, uninterruptable power
supplies, circuit breakers, switchgears, motor controllers, etc.
BHEL has 15 manufacturing divisions, 2 repair units, 4 regional offices and 15 regional
centres and currently operates on more than 150 project sites across India and abroad.
Most of its units are accredited to Quality Management System (ISO 9001:2008),
Environment Management System (ISO 14001:2004) and Health Safety Management
System (ISO 18001:2007).
A survey was conducted on the existing level of Workers Participation in Management
decision making within the BHEL Ramachandrapuram unit, Hyderabad. The sample
size included one hundred non management employees. The main research technique
that was adopted for data collection was in-depth interview. The major findings of the
study are given below:
Participatory machineries are implemented in BHEL as an initiative to incorporate
workers in organizational interest. This proved effective and efficient in
functioning of daily operations.
Management has a positive attitude towards their staffs and encourages them
in participative involvement in management decisions.
The organization conducts sufficient number of training programmes to a specific
target group followed by refresher sessions at fixed intervals. The employees
are happy and take pride in working at BHEL.
The implementation of Workers Participation in Management is improving
understanding between managers. This has reduced clash of interest between
the workers and the higher management. The method which is mostly used
in WPM in BHEL is Joint Management Councils.
There are Trade Unions to protect the interest of the workers but these Trade
Unions, unlike in other organizations, are encouraging workers to participate in
Joint Management Councils. Disclosure of meeting findings is given on regular
basis to the employees for reference.
Participation of employees in shop floor and plant management benefits the
organization significantly in economical, operational and welfare areas.
The management is looking forward to further improve the concept of Joint
Management Councils so as to ensure full cooperation from the workers in
participative management and convince small group of members who are
against the same.
Workers Participation in Management is respectable at BHEL and employees believed
that they will definitely get benefit hence, participation is open to all the members in
the organization and considers them at different levels of decision making. Employees
acquiesce that committee members share the information with their colleagues after
the meetings, the Workers Participation in Management improves understanding
between managers and workers and informed that Joint Management Councils is the
method of WPM which is used mostly in the organization.
CASE 2: MCC PTA INDIA CORP. PVT. LTD.
MCC PTA India Corp. Pvt. Ltd. is a direct subsidiary of Mitsubishi Chemical Corporation
in Japan. This is the first major Japanese investment in Eastern India. This company
is the perfect example of implementing the concept of Total Quality Management (TQM)
in full fledged manner making modifications to suit the Indian ethos and work culture.
Though the implementation does not hold good for contract labourers and small
contractors associated directly with the company for its smooth operation, but it has
brought a significant change in the clash of conflicting interest among the managers
and labours. The major findings of the study are as follows:
The organization has few Japanese workers along with a major proportion of
Indian workers. The Japanese workers are involved in taking key roles in critical
maintenance related decisions. But the Indian labors are not that confident
enough.
All workers are generally divided into groups of four and one among them
heads the group. He acts as the stand-in supervisor or manager by following
check sheets and other SOP required for job completion.
This actually reduces the workload of a manager who is not required to
continuously monitor the job. Thus, he can devote more time in analyzing the
critical problems and perform other managerial jobs.
Moreover each workers and managers are given responsibility of housekeeping
of a fraction of plant area. They are responsible for cleanliness of that area.
This gives the workers a feeling of belongingness to the organization.
Weekly meetings are conducted between the Plant Head, Department Head
and the workers about grievances, scope of improvement regarding any plant
or personal issues. And, generally, responsibility is given to any of the workers
to solve them depending upon the merits of the problem. A manager may be
assigned to act as a mentor or guide.
Workers are encouraged to conduct Kaizen, a Japanese tool for identifying
problems of day-to-day activities and finding solutions to them. The workers
are rewarded financially for these Kaizens based on the merit and criticality of
them. Top three workers photograph is published in quarterly magazine.
But the labor union poses a problem when it comes to contractual semi-skilled
and unskilled labors. Lack of knowledge actually turns them blind to every
approach from the organizations side.
Also, the political pressure of West Bengal deters the organization to take
certain steps to amend the problem as these are very sensitive issues and
small misinterpretation of terms and conditions can lead to a major IR issue.
Therefore, it can be concluded that though the Indian labors are not directly involved
in managerial decision making but they effectively follow the TQM procedure to help
the organisation to reach the pre-defined goals. Also, the management, in disguise of
prize and acclamation, takes out certain feedback and different viewpoints which actually
helps the organisation to grow in a more stable and refined manner. The Japanese
labors silently imbibes the job culture into their Indian counterparts to literally make
the company complete.
SOME FACTS THAT DEPICTS THE GENERAL SCENARIO OF WPM IN INDIA
Managers as well as non-managers of large and complex organizations like
Indian Railways opine that existing schemes of WPM only facilitate some
communication and consultation and not WPM as decisions are taken at
different levels of the hierarchy in the organization backed by the Railway
Ministry where workers involvement is not possible.
In ECIL (Hyderabad), managers as well as workers randomly expressed any
positive feelings about WPM. In other words, WPM helped both managers
and workers to attain more and more benefits to such an extent that the
organizations only mission is to line the pockets of workers and managers.
The story is same in other PSUs like HTL, OCF, Shipyards, Ports and the
rest.
In organizations like Ennore Thermal Power Station, WPM is hardly in shape
and whatever existing is present is an extension of Trade Union activity in the
realm of WPM.
In a nutshell, with few exceptions like BHEL, in many PSUs WPM is just a ritual and
nothing more. Many employees are not aware of the fact that their names are in the
list of members of participative forums.
But simultaneously the private sectors are implementing the concept of WPM in a
customised way to suit their organisation, the trade they follow, camouflaging with
their environmental conditions. Emerging Indian industry believes in the power of
oneness and thus in emerging big industries, the gap between hierarchical positions
is reducing.
CONCLUSION
WPM as a concept and practice is widely known among managers. In case of non-
managers, most particularly those in the category of workers, their awareness about
WPM is doubtful, with some exceptions in individual undertakings.
Managers in general are less enthusiastic about the concept and practice of WPM.
The reason for this state of affairs is the nature of WPM schemes itself. The schemes
are imposed from above and not developed out of organizational needs. Hence, they
could not take roots and remained out of shape. Apart from what is officially asked,
in actual conversations managers generally dislike the idea of WPM. Workers, in
general, are also less interested in WPM as it hardly gives any direct benefits to
them. Furthermore, WPM is not effective in service industry and in official and
administrative jobs where strategic decisions are taken.
By and large, the scope for participation is in few areas, viz, human resources
development, maintenance, shop floor and production planning, in organisations. The
coining of the concept WPM hardly helps in eroding worker-manager divide.
REFERENCES
1. http://bizshifts-trends.com/2011/01/10/management-styles-u-s-europe-japan-china-india-brazil-
russia/last accessed on 22/April/2013
2. https://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles.htm/
last accessed on 22/April/2013
3. http://www.businessdictionary.com/definition/participative-management.htm/last accessed on
23/April/2013
4. http://www.whatishumanresource.com/workers-participation-in-management/last accessed on
23/April/2013
5. Rathnakar, G. (2012), A Study of Workers Participation in Management Decision making at
BHEL, Hyderbad, International Journal of Marketing, Financial Services and Management
Research, Vol1 Issue 9, September 2012.
Can HRIS Capture Human Imagination
and Creativity?
Lavlesh Upadhyay*, Amardeep Singh*, Deepika Singh*, Pankaj Sati*,
Madhurima Roy* & Amit Guha*
ABSTRACT
HRIS had been given as a perception of software merely used for recording and tracking the
Human Resource related data. But now it has been recognized as a vital tool for tracking down
the imagination and creativity too. Its evolution as an instrument has helped to know about the
insights of the non-verbal data about human resources. Its guidelines have helped to analyze the
psychological and behavioral pattern to a significant level. Either it be resolving the issues related
to work or finding out the potential innovators, HRIS has been widely acknowledged. Although
creativity and imagination are not directly visible, they are being reflected through various indicators
like efficiency, performance, etc. So, there is a need to define the parameters to measure these
qualities.
INTRODUCTION
The Human Resource Information System (HRIS) is a software or online solution for
the data entry, data tracking, and data information needs of the Human Resource
management, payroll managemen and accounting functions within a business. Normally
packaged as a data base, hundreds of companies sell some form of HRIS and every
HRIS has different capabilities.
Typically, a HRIS provides the following:
Management of all employee information.
Reporting and analysis of employee information.
Company-related documents such as employee handbooks, emergency
evacuation procedures, and safety guidelines.
Benefits administration including enrollment, status changes, and personal
information updating.
Complete integration with payroll and other company financial software and
accounting systems.
Applicant tracking and resume management.
*
Students, Batch - MBA 16 (2012-14); Emai l s: l avl esh@ai mk.org; amar.mba16@ai mk.org;
deepika.singh@aimk.org; pankajsati88@gmail.com; madhurima.roy@aimk.org; amit.guha@aimk.org
HRIS that most effectively serves companies tracks:
attendance and Paid Time Off (PTO)
pay raises and history
pay grades and positions held
performance development plans
training received
disciplinary action received
personal employee information
and occasionally
management and key employee succession plans
high potential employee identification and
Applicant tracking, interviewing, and selection.
An effective HRIS provides information on just about anything the company needs to
track and analyze about employees, former employees, and applicants. Companies
need to select a HRIS package and customize it to meet its specific needs.
With an appropriate HRIS, Human Resources staff enables employees to do their own
benefits updates and address changes, thus freeing HR staff for more strategic functions.
Additionally, data necessary for employee management, knowledge development, career
growth and development, and equal treatment is facilitated. Finally, managers can
access the information they need to legally, ethically, and effectively support the success
of their reporting employees.
HISTORY
From 1960 to 1970, major companies were in search of a centralized Personnel
Management System. Software programs were then created in large computers to
facilitate storage of data mainly for payroll purposes. The Human Resource Information
System, also known as Human Resource Management System (HRMS), emerged as
the preferred main system for managing human resource data, using the new client
server technology instead of the old mainframe system. By the 1980s, HRIS was
equipped with new tools and capabilities that assisted the compensation scheme and
helped manage manpower. The system became more sophisticated by 2000 when it
became a tool for performance learning management.
HRIS PACKAGES AND SERVICES
Several major software companies provide HRMS packages. SAP, PeopleSoft, Oracle,
and ADP are the largest providers. Depending on the companys needs and size,
package options may include some or all of the following services:
Employee career cycle management
24x7 data access to authorized managers
Customized levels of access to confidential data
Pre-populated forms and templates
Access to real-time death instantaneous updates
Employee administration
Benefits administration
Compliance
Recruitment
Performance and development
Safety and health
Succession planning
Time-off management
Organization management
Payroll
Training
401k plan administration the feature of a qualified profit-sharing plan that
allows employees to contribute a portion of their wages to individual accounts.
The opportunities to add more services are endless and continue to improve. For most
companies, the hardware and software needed to run these programs are fairly standard.
Hardware and software is dependent on the complexity of the HRMS package; more
complex HRMS packages require more hardware (e.g., server space and speed).
IMAGINATION: CRISIS AND ISSUES
INTRODUCTION
One of the major problem that is being experienced by the HR leaders is crisis of
Imagination and Creativity in several behavioral aspects of HR. Some of the main
problems which are being faced by the HR managers are as follows:
1. Failure to realize HR as most valued asset.
2. Structural exclusion of HR from asserting its contribution and making it impotent.
3. Belief of HR leader as policy enforcers leading to ineffective culture of being rule-
bound at the expense of values.
4. Deficit-based view of workplace rather than a strength-based perspective due
to which organization and people are seen through a glass half-full lens.
Most of these problems arise due to the bureaucratic policies which dominates the
sense driven sensibilities. In order to solve these issues, many HR leaders have
suggested a need to change the values and have suggested the concept of Human
Resourcefulness as important asset.
Resourcefulness, is the human capability of being able to cope up with, and work
through challenges. Further, resourcefulness is defined as an ability to access imagination,
think and act creatively. This creative capacity provides the basis for innovation which
is needed to keep businesses and organizations competitive in the global economy.
The main focus of professional talent should be on developing organizations human
resourcefulness.
HRIS AS SOLUTION OF IMAGINATION CRISIS
HRIS has evolved as a tool to learn the traits of employees. With each version of the
HRIS packages, new parameters are coming into existence which are giving insights
to the non-verbal data about the employees.
HRIS offers the guidelines to HR managers that helps in analyzing the behavioral and
psychological aspect of the employees. It gives a platform to create a knowledge base
about a new employee and to design training for him/her.
Thus, HRIS as tool is used to identify the potential of an employee to come with
creative and innovative ideas. It also helps to know about the emotional quotient of a
worker. Work motivation inducing factors are also identified using various HRIS packages.
Interestingly these functions are used by the HR managers to motivate employees to
work under the ever-changing marketing scenario. Here are some cases mentioned
below:
ISSUES AT WORK
According to some CEOs, work consists of three core subjects: planning, development
and team. Planning is connected to the employees commitment. A manager knows that
commitment depends on how much or little the employee knows about the new tasks
or methods in use. If the work is too demanding or too easy, the employee will not be
committed. Also, if the person has already a lot of work due to the previous assignments,
the pressure and stress of new tasks will diminish commitment. Therefore, when planning,
the leader must know the competencies of the employees. A manager also knows that
if there are conflicts, the employees will not be committed enough. Therefore, a manager
must make very concrete working plans so that everyone knows their roles. It means
to plan simple and clearly describe tasks because they are easier to remember. People
know what they have to do and what the expectations are. In the meantime, the
manager wants to develop the employees competencies and career paths, for example,
by rotating the jobs.
Here a manager can use HRIS Performance Management Module to identify the key
areas of human resource which require immediate attention.
Performance Management Module
Performance management involves more than simply providing an annual review for
each employee. It is about working together with that employee to identify strengths
and weaknesses in their performance and how to help them to be a more productive
and effective worker.
STEPS:
1. Evaluate current performance appraisal processes
2. Identify organizational goals
3. Set performance expectations
4. Monitor and develop employees performance throughout the year
5. Evaluate their performance
6. Set new performance expectations for the next year
INNOVATION AT WORK
Innovative work practices increase employee discretion and opportunities to participate
in decision making, giving employees incentives to participate, and providing them with
skills needed to participate. Increased discretion often follows from participating in self-
managed teams, while incentives are usually financial, and sufficient skills are achieved
with employer provided training. Such work practices transform the work of employees,
especially in blue-collar occupations.
Source: Innovation and its scopes in an Organization. Adobe Patent Group
Adobe Patent Practice Group (PPG)
Adobe Systems provides an opportunity to its employees to come with patent asset
solutions. The motive is to create patent asset solutions to support the growth,
competitiveness, and profitability of Adobe businesses. Adobe is actively pursuing
patents on internally developed technologies in order to strengthen Adobe, and at the
same time provide inventors with the recognition that comes with an issued patent.
They identify the potential employees, who can be useful to them, through HRIS. These
employees are encouraged to continue their research work. If any of the work by these
employees gets patented, they get reward in both form: monetary and promotion.
CORPORATE SOCIAL RESPONSIBILITY
Human resource professionals have a key role to play to help a company achieve its
CSR objectives. Employee involvement is a critical success factor for CSR performance.
Human resource managers have the tools (HRIS, ERP and CRM) and the opportunity
to leverage employee commitment to, and engagement in, the firms CSR strategy.
High performing CSR organizations foster a culture of CSR and fully integrate CSR
throughout their operations, rewarding and incentivizing CSR decisions and initiatives.
Employees prefer to work for organizations aligned with their values; thus, incorporating
CSR into the employee brand can enhance recruitment and retention, particularly in
tight labor markets.
CSR can be applied to the HR toolkit, resulting in a roadmap or pathway for human
resource practitioners to follow who wish to contribute to the achievement of their
organizations sustainability and business aspirations, thereby improving social and
environmental conditions locally and globally.
CHHOTU-CEO
It is an initiative started by Corporate India along with SAVE THE CHILDREN INDIA to
fight against the problem of child labor. The main objective of this initiative is to involve
the employees of the organization to participate against the practice of child labor. Each
chhotu (chaiwalas, under age of 18, working near corporate offices) were invited in
corporate offices to work as CEO of the company for a day and give the message to
fellow office workers: now you have noticed me. Please notice the children working on
the streets as well. The program has been a success. The main focus of the program
is to encourage the emotional aspect of the corporate employees to work for the cause
of street children. The success of the mission can be estimated by the fact that above
350 child labors were able to be freed within 2 weeks of the start of the mission.
Although HRIS was not used in the initial stages of the program but later its use
indicated that employees tend to volunteer to fulfill their social duties and responsibilities.
Hence, it lead to expansion of this program to other parts of the country. Such programs
not only provides satisfaction to them but also help the organization to retain their
employees.
CONCLUSION
There is extensive complexity in the relationship between HRIS and Human imagination.
Although there is no direct parameter to measure the creativity and innovation, their
presence is reflected through the other qualities. So there is a need to do extensive
research in this field and more case studies should be conducted.
REFERENCES
1. Ball, K. S. (2001). The Use of Human Resource Information Systems: A Survey. Personnel
Review
2. Demo of HRIS. Accessed on Apr. 24, 2013 from:http://prophix.com/resources/interactive-
demo/index.html
3. Pierce, M., and Madden, K. (n.d.) Driving Success: Human Resources and Sustainable
Development. World Business Council for Sustainable Development.
4. Pool, S.W. (1997), The Relationship of Job Satisfaction with Substitutes of Leadership,
Leadership Behavior and Work Motivation, The Journal of Psychology
5. Redington, Ian. (2005). Making CSR Happen: The Contribution of People Management. The
Chartered Institute of Personnel and Development (CIPD). London, UK.
6. Skinner, C. (June 2002). Links between CSR and HR. Ethical Corporation Magazine
7. Toyne, P. (Feb. 14, 2005). History of HRIS. Accessed on Apr. 25, 2013 from: http://
www.ehow.com/ about_6576069_importance-human-resource-information-system.html
PROJECT SYNOPSES
Leveraging the Customer Service Point (CSP)
Concept for Economic Development
of Rural Areas
Yugal Kishore Jha*
ABSTRACT
The recent developments in banking technology have transformed banking from the traditional
brick-and-mortar infrastructure like staffed branches to a system supplemented by other channels
like Automated Teller Machines (ATM), credit/debit cards, internet banking, online money transfers,
etc. The moot point, however, is that access to such technology is restricted only to certain
segments of the society. The essence of financial inclusion is in trying to ensure that a range of
appropriate financial services is available to every individual and enabling them to understand and
access those services.
INTRODUCTION
Customer Service Point (CSP) concept is one of the concepts of the bigger vision of
the Government, the Finance Ministry and the Reserve Bank of India (RBI) i.e.
FINANCIAL INCLUSION. Financial Inclusion is the process of ensuring access to
financial services and timely and adequate credit needed by vulnerable groups such as
weaker sections and low income groups at an affordable cost.
The Finance Ministry and the Reserve Bank of India are keen that the benefits of
banking and other financial services should trickle down to all sections of society. In
order to build a cost effective reach and distribution capability, RBI has been promoting
the concept of Business Facilitators / Business Correspondents (BFs /BCs). BFs are
better informed locals, who can perform critical roles such as advising people on their
finances, appraising them as borrowers, helping banks in lending to the borrowers and
recovery, etc. BCs go beyond this to handle small value cash transactions in areas
where there is no bank branch.
Non-Government Organizations (NGOs), Community-based Organizations, Village
Knowledge Centres, Krishi Vigyan Kendras, Panchayats, Co-operative Societies, Post
Offices, insurance agents, IT-enabled outlets of companies, and employees in these
organizations can consider performing these roles. Even teachers, retired bank employees
*
Student, Batch MBA 15 (2011-13) Email: yugalkishorejha@gmail.com
and retired government employees, who enjoy a position of trust, are a candidate for
the role.
OBJECTIVES
To understand the concept of Customer Service Point (CSP)
To analyze the operations of a CSP in detail
To understand the concept of Financial Inclusion (FI)
To analyze both demand and supply factors of Financial Inclusion (FI)
To analyze awareness level of Know Your Customer (KYC) guidelines at various
Branches and CSPs of SBI
To analyze what KYC norms are followed at various CSPs and their linked
Branches
To analyze the problems faced by CSPs, BCs and Linked Branches in their
respective operations related to Financial Inclusion
To analyze Consumers awareness of Bank products in rural areas
To analyze the steps taken by Link Branches to spread Financial Literacy among
rural people
To analyze how CSP is helping rural or financial excluded people in their economic
development
SCOPE
The scope of this study is limited to the state of West Bengal. Here the main aim to
analyse how CSP is helping rural or financial excluded people in their economic
development and to suggest strategies for SBI which can help it to gain market share
and expand its business.
METHODOLOGY
PRIMARY DATA:
Four methods were used to collect Primary Data namely:
Questionnaire method
Personal Interview method
Indirect Oral Interviews
Observation Method
SECONDARY DATA:
Secondary data for the research was collected from NABARD, UBI and Internet.
FINDINGS:
A better alternative than bank branches - Normally a rural bank branch can
serve 3,000 to 4,000 families in 12 to 15 villages within a radius of 15 kms.
A Public Sector Bank branch may require more than 5 years to break even in
unbanked areas in India, while a private sector and foreign bank with IT
connectivity may require about 5 times more. Further, obtaining permission to
open a branch is a long and protracted process. The BC option potentially
enables banks to reach out much faster and at a much lower cost.
Reaching the unreached - The model enable banks to extend financial services
to the unreached clients beyond their branch network as beneficiaries of the
BCs are mostly located at unbanked and under banked areas.
Doorstep banking - Disbursement and loan recovery at the doorsteps of the
beneficiary.
Better quality of assets - Target clients are well known to local NGOs, Post
Offices, BDOs and similar local social bodies, thus loan facilitation by the NGOs/
BCs (who are the promoter/builder of the groups) enhances quality of assets.
Scaling up of this model is possible within a short span of time.
Viability problems - The commission paid by banks for BC services is not
adequate to produce viable business models. There are costs involved in staff
salaries and training and the current compensation structure does not cover
costs. A major BC and a number of CSPs under various state level BC have
reported significant losses and some have already suspended their operations.
Community mobilization - Mobilizing communities for banking services
especially savings is a big challenge for the BCs. Due to previous bad
experiences, potential clients were unwilling to accept BCs as deposit-taking
organizations.
RECOMMENDATIONS:
Proper monitoring is required.
Proper coordination between Link Branches and CSPs is required to ensure
smooth functioning of CSPs.
People from LHO should visit Rural Branches on a regular basis to ensure
acceptability of the CSP concept.
People from Link Branches should visit their linked CSPs regularly to ensure
proper functioning of CSPs.
SBI should appoint an officer at every Link Branch who will look after the CSP
matters.
BCs should give overdraft facility to their CSPs.
Link Branches along with BCs and CSPs should conduct financial literacy
programme for rural people on a regular basis.
Commission on Deposit which is withdrawn should be given.
CSPs should be allowed to give tiny loans and advances.
The excluded segments of the population require products which are customized,
taking into consideration their varied needs. The products and services offered
at present do not effectively meet these needs.
Savings: Savings products to meet the specific requirements of the poor
need to be evolved. SHGs may be utilized for tapping the small savings by
providing incentives to SHGs with suitable back-end technology support.
Credit: A savings-linked financing model can be adopted for these segments.
The approach should be kept simple which should guarantee the beneficiaries
a credit limit, subject to adherence to simple terms and conditions. Credit
within a specified limit can be made available in 2-3 tranches, with the
second and subsequent tranches disbursed based on repayment behavior
of the first tranche. This is to ensure that the vulnerable groups do not get
into a debt trap; it would also ensure good credit dispensation.
Insurance: Banks can play a vital role in this regard by distributing suitable
micro-insurance products.
REFRENCES
1. http://www.slbcbengal.com/stHistory.asp/ last accessed on 5/07/2012
2. http://www.unitedbankofindia.com/English/FinancialInclusions.aspx/ last accessed on 9/07/2012
3. http://www.slbcbengal.com/stDecisions.asp/ last accessed on 12/07/2012
4. http://www.slbcbengal.com/convener.asp/ last accessed on 12/07/2012
5. http://www.slbcbengal.com/stObjectives.asp/ last accessed on 13/07/2012
6. http://www.nabard.org/departments/FLdepartment.asp/ last accessed on 19/07/2012
7. http://www.nabard.org/pdf/report_financial/Chap_X.pdf/ last accessed on 19/07/2012
8. http://www.statebankofindia.com/user.htm/ last accessed on 25/07/2012
Performance Management for Workmen
Staff: How much Objective the Model is?
How can it be made more Objective?
Rajsekhar Mandal*
ABSTRACT
The project, Performance Management for Workmen Staff: How Much Objective The Model Is?
How Can It Be Made More Objective?, was done at 3 branches of SBI (JU Branch, Garia Branch
and Deshapriya PBB) in Kolkata. The objective was to find the loopholes of the existing Promotion
Appraisal Format (PAF) and reasons of dispute or dissatisfaction of the internal customers, i.e.,
workmen staff which is degrading their performance and, thereby that of the Branch & SBIs
performance. The objective also included recommending feasible solutions to those problems so
that the bank could maintain and improve its position, i.e., ranking in this highly competitive
market. Methodology included administration of a structured questionnaire designed on the basis
of 5 parameters of PAF. Analysis was done on the basis of feedback received from the employees
of the 3 branches.
INTRODUCTION
Performance Management (PM) includes activities which ensure that goals are
consistently being met in an effective and efficient manner. Performance Management
can focus on the performance of an organization, a department, employee, or even the
processes to build a product or service, as well as many other areas.
PM is also known as a process by which organizations align their resources, systems
and employees to strategic objectives and priorities.
OBJECTIVES
To understand the concept of Performance Management.
To analyse the operations of Performance Management in details.
To understand the concept of Workmen Staff.
To analyse the various categories of Workmen Staff i.e., sub-staff (security,
messenger, sweeper) and clerical staff [Assistant (Asst), Senior Asst, Special
Asst, Senior Spl Asst].
*
Student, Batch MBA-15 (2011-2013); Email: sm.rajsekhar@gmail.com
To analyse the 5 aspects of PAF i.e., Promotion Appraisal Format (Conduct,
Quality of work, Time Discipline, Special Contribution to Work and General)
To analyse the functions of various sections of a branch i.e., Savings, Deposits,
Advances, Govt. Businesses, Forex, SWOs, High Value Cash Receipt, Alternate
Channels (ATM, Kiosks, GCC, Internet Banking, Mobile Banking), etc.
To analyse the problems faced by Workmen Staff in their respective operations.
To analyse Consumers awareness of Bank products in the 3 branches under
the study.
To analyse the steps taken by Braches to spread Financial Literacy & hence
SBIs products & services among people.
To analyse how the concept of PM is helping Workmen Staff in their performance
development.
To find in details the reasons of degradation of performance of Workmen Staff.
To suggest feasible solutions to the problems faced by Workmen Staff in their
respective operations in order to improve their performance.
SCOPE
The scope included 3 branches of SBI (JU Branch, Garia Branch and Deshapriya PBB)
in Kolkata. The levels included Assistants, Special Assistants, Senior Arm Guard, Senior
Head Messenger, Head Sweeper, and customers.
METHODOLOGY
Primary Data:
Four methods were used to collect Primary Data namely:
Questionnaire method
Personal Interview method
Indirect Interviews
Observation Method
Secondary Data:
Secondary data for the research was collected from Internet.
Questionnaire Design:
The questions in the questionnaire were both open and close ended.
Scaling:
In close-ended questions relating to level of satisfaction, the Workmen Staff were asked
to rate their Promotion Policy as Excellent, Good, Satisfactory and Poor.
Sample Size:
The sample size selected was:
JU Branch:
Assistants 11
Special Assistants 2
Senior Arm Guard 1
Head Sweeper 1
Customers (Customers were selected randomly)
Garia Branch:
Assistants 5
Special Assistants 2
Senior Head Messenger 1
FINDINGS AND ANALYSIS
The analysis highlighted the problems which are affecting the performance of the target
group and thereby, that of the Branch and SBIs performance as a whole.
The operation-oriented problems identified are:
PAN Number-related:
When PAN No is fetched, in many cases, the 1st letter of the name doesnt
appear. But the name is correct in IT site i.e. NSDL site.
In case of joint A/c, if 1st holder has PAN card while 2nd holder doesnt
and submits FORM 60,1st holder gets ATM card issued but the 2
nd
doesnt.
The problem is with the system.
There is no space to enter PAN no. in the system while depositing or
withdrawing Rs. 50,000 or above.
Day Book Checking
In some cases there are problems of difference between hard copy and
soft copy, i.e., online VVR (Voucher Verification Report).
In such cases employees are checking the online VVR and writing online
checked on hard copy.
Draft/Bankers cheque
In case of issue of Draft/Bankers cheque in cash, for above Rs 10,000 the
system is showing the exchange amount plus the cash handling charges
of Rs10. But, for less than Rs10,000, the system is only showing the
exchange amount and not the cash handling one.
In such cases, in Garia Branch, the employees are typing the amount by
hand and taking it from the customer. However, in the other two SBI
branches employees are taking only the exchange amount.
PPF
In recent Training Programme named Back to Basics the employees
came to know that the PPF Penalty amount is of Rs. 100, which came into
effect from the year 2007. But they have checked Govt. Circulars, RBI site,
SBI Times and found that nowhere this point is mentioned.
Now, the branches are charging Rs.100 for PPF Penalty.
In the Penalty A/c, there is no provision for linking the corresponding PPF
A/c.
Multi-city cheques
Amount and advice Payable at par all Branches of SBI are mentioned
clearly in multi-city cheque leaves. Practice is 3rd Party non-home branch
payment is not allowed.
Fixed Deposit (FD) and Recurring Deposit (RD)
Govt. has imposed TDS which has Tax & Overhead Tax. The system is
showing the tax deducted but not the Overhead tax deducted. In practice
the Overhead Tax is deducted from principal amount and the customer in
turn gets loss in principal amount.
In case of premature closure of Senior Citizens Savings Scheme (SCSS),
rule is there for deduction of Penalty amount. But the system is not deducting
it.
There is clear circular mentioning that no tax would be deducted in RD, but
in practice tax is being deducted in some cases.
There is huge customer dissatisfaction and they become violent and it is
very hard to pacify them.
Cash Deposit
In circular there is restriction in Cash deposit in non-home branches of Rs.
25,000 but system has no restriction and deposit amount is unlimited.
Savings Bank (SB) A/c
The posting restriction that is applicable for the first 6 months from the date
of A/c opening often continues for a longer period, until it gets noticed by
the Bank staff. Customers face problems at times of cash withdrawal from
non-home branch.
SMS Alerts
Each and every query of customers cannot be solved by the system, such
as,
i. SMS alert. SMS alert for ATM withdrawal is not regular for many A/c
and SMS alert for A/c transaction also not available even though SMS
alert facility is enabled in this particular A/c when Mobile Banking
facility is also available for the A/c.
ii. Recent updates in A/c or CIF is not available in F7 window.
iii. Immediate issuance enquiry of ATM Card is not available (one has to
see in ATM switch centre).
TDS
Many customers are not submitting 15G/H form on time.
Others
In Garia Branch, nearby Garia-more ATM is under Ballygunge Branch. But
customers convey all the problems to this branch.
Ill-behaved customers create a problem and disrupts the banks environment.
Lesser amount of work-related knowledge. Whenever they are in need of
guidance they have to search for long hours in SBI Times and waste a
lot of time. Bank needs to provide thorough training to all employees,
specially the Supervisors, so that they are able to answer all questions
asked by the young tech savvy and updated customers.
Frequent link failure takes place specially on Saturdays. Also number of
branches are increasing day by day. Bank should improve the quality of its
main server which is not being able to take main load.
Even customers need to be guided properly about where to go and who
is the right person to deal with their problem especially in a large branch.
Changes in banking rules are not conveyed to the customers properly.
A lot of patience is needed to listen to customers irrational demands.
Ignorance about new and useful products launched by bank.
Disparity in opinions amongst employees at different ends.
Customers not encouraged to use alternate channels.
Pensioners dont understand the actual problem of the delay of their
payments. And it becomes really difficult to explain to them. As a result
they are dissatisfied and behave accordingly.
In JU Branch 5 guards are there. Only 3 days leave are available. So
responsibility on a single guard increases.
Employees are having spondilytis and breathing problems (needs inhaler).
The survey also shed light on the promotion policy of the SBI. As given in the following
chart, out of the 23 respondents, 8 (35%) are not willing to become supervisory staff
on account of age, family problems, and lack of interest in taking responsibilities of
management, etc.
The respondents also rated the promotion policy of SBI. According to them, out of 23
respondents, 13 (57%) rated it as good, 6 (26%) rated it as satisfactory, 4 (17%) rated
it as poor but nobody (0%) rated it as excellent. That means dissatisfaction regarding
promotion is high in SBI Branches. The following chart pictorially depicts the finding.
RECOMMENDATIONS
Garia branch requires 1 or 2 Assistants and 1 messenger more. There is an
urgent requirement of a guard. It requires an ATM under it. Visibility of the
branch is less.
Power should be given to Branch Manager so that PAN No. fetching rectification
occurs at the branch level.
The system should be rectified or upgraded properly.
Proper Circular should be given or employees should be notified at the branch
level for solving the problem of Day Book Checking, Draft/Bankers cheque,
PPF Penalty amount, Multi-city cheque.
A system should be made to pacify the violent customers especially in case of
FD otherwise it disturbs the banks working environment.
The delivery of ATM cards should be made more smoothly and timely. Alerts
should be sent to customers regarding 15G/H at the beginning of every financial
year, as it is quite impossible at branch level.
It would be good to have some system generated process that willl remove the
restriction once the period of 1st 6 months is over in case of posting restriction
of SB A/c.
Space should be provided to enter PAN No. with validate option so that the
genuineness of the PAN Card can be confirmed.
New branches with adequate number of staff should be provided to meet
customers need and grab maximum possible market share.
Proper Grahok-Mitra should be there who will have access to machine and
can answer the queries of customers as well as creating awareness regarding
alternate channels, filling forms, SBIs 24x7 products and services, etc. Then
only effective utilisation of products would be done.
All staff should be updated on a weekly basis by the management .
Immediate serious training programmes (not picnics as some people see it) are
needed specially for new recruitees. It should provide knowledge for all operations
done in the branch/bank. Also they need motivation, encouragement, support
and guidance, i.e. study material and training for promotional exam.
Regular evaluation of the employees and supervisors on the basis of their
performance should be done.
CBS facility for TDR/STDRs (updating 15G/H, renewal, closing, etc.) should be
provided.
Alternate channels are to be made more user-friendly as well as secured. Some
demonstration facility should be provided at the branches so that customers
accept the facility happily without fear. SBI should propagate alternate channels
more diligently and with door to door effect.
Proper management of resources in large branches should be done.
Charts indicating interest rates, various bank charges should be displayed.
Display screen should be kept/changes should be conveyed to customers
properly.
Bank should recruit more staff. Most of the branches are under-staffed. Acute
shortage of staff is leading to poor customer service. Banks image is getting
hampered.
Better marketing policies (more captivating and mass based).
Duty list for every employee where the scope and power of every employee is
mentioned with utmost clarity.
It would be great if the pension cell takes serious care about the various cases
sent upto them.
1 more guard is needed in JU Branch. There is a need of small arms.
There should be no delay in case of advances so that customers are retained
in this competitive market.
Since JU branch is the crowdest and busiest, they need Police force to control
the customers specially during office hours.
Young generation customers should be identified, created and kept satisfied
with SBI product and services.
People from Local Head Office (LHO) should visit Branches on a regular basis
to ensure smooth banking operations and transparency.
SBI should appoint an HR Officer at every Chest Branch who will look after the
PM matters ensuring more transparency.
Every customer wants individual attention so employees should greet them with
a smile and talk politely while looking into their eyes.
Quality display boards (for example messages by Mahatma Gandhi, Beware of
pickpockets, Have a nice day, etc.) should be provided on counter, as seen
presently in Garia branch.
Ultra-modern design of SWO counters should be implemented as present in
Garia branch.
Higher authority should make a plan to boost health (both moral and physical)
of the employees.
Cleanliness should be maintained throughout the branch as present in Garia
branch.
In Deshapriya branch RMPB (Relationship Manager Personal Banking) is required
to provide personalised service to high valued customers, say, top 100/200
customers (both advance and deposit).
Proper direction of branch through boards or signboards should be provided.
Self-work analysis to be submitted to Branch Manager. Then Branch Manager
verifies it with Reporting Officer. Final marks to be given by Branch Manager
after self-observation and analysis done with Officers.
Quarterly compounding in FD should be replaced by Annual compounding so
that 10% can be shown as 10.5% to customers like other banks.
REFERENCES
1. Aswathapa, K (2011), Human Resource Management Text and Cases, McGraw Hill,pp. 278-
327
2. http://www.statebankofindia.com/user.htm/last accessed on 28.08.2012
3. http://www.wikipedia.in/performance management/last accessed on 28.08.2012
4. http://www.wikipedia.in/SBI/last accessed on 28.08.12
Kara: Consumer Knowledge & Ways
of Promotion
Amit Kumar*
ABSTRACT
The study conducted on Kara is the primary source of market intelligence for the competition in
the skin care wipes segment and also include comprehensive analysis of the skin care wipes
market, the reason behind the current status of the market situation and the responsible features
of the brands that make them what they actually are. It also covers strategies or ways to challenge
the market leader, cut down the competition and overcome the present market leader through
making amendments in the present processes. A questionnaire survey of 200 people visiting the
retail stores in Allahabad was done and analysed. The major findings showed that concept of the
product is very new in the Indian market and people, especially middle income group, needs to
be informed about it through extensive promotion activities. Moreover, customers consider wipes
to be a non-essential item and are not willing to spend a lot of money on such a product.
INTRODUCTION
Consumer knowledge or consumer behaviour is the behaviour of the consumer towards
the various products, brands, stimuli, etc through its learning, perception, motivation,
etc. In other words, it is a mental and emotional process along with the physical
activities of the people who purchase and consume goods and services to satisfy their
needs. Behaviour of the consumer can easily get influenced by family, environmental
factors, friends, peers, relatives, social and reference groups, etc.
Grasim Industries Limited has come up with new division, Consumer Product Division,
and they have launched skincare wipes. The Division wanted to find out how far their
concept of such product is acceptable in the market by:
1. Understanding the perception and behaviour of consumers
2. Understanding the reaction and behaviour of retailers and distributors and
3. Analyse the impact of advertisement on awareness.
OBJECTIVES
The aim to conduct this marketing research or this study is to find out the perception
of the consumer towards the concept of the skin care wet wipes, whether they going
to accept this new concept of the wet wipes or not or whether they still believe in the
*
Student, Batch MBA-15 (2011-2013); Email:amitjha4243@gmail.com
traditional method of using the formulized based products and even to study how much
awareness of this product is there in the market and the brand image of it.
The second main aim to conduct this study was to understand the retailers reactions
and expectation towards KARA.
SCOPE OF STUDY
200 respondents were covered visiting the retail stores in Allahabad.
The study of consumers helps firms and organizations improve their marketing strategies
by understanding issues such as:
1. Psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
2. The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
3. The behaviour of consumers while shopping or making other marketing decisions;
4. Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
5. How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer;
and
6. How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer. The study of consumers helps
firms and organizations improve their marketing strategies.
METHODOLOGY
Market survey was conducted using in-depth interview and a structured questionnaire,
designed to
analyze the behaviour of the consumer towards the product named KARA for
which the entire marketing research has been conducted and
analyze the skills of the Sales Executives, Retailers and Distributors.
FINDINGS
1. Quality of the wipes is being appreciated by most of the customers (mainly fragrance
and material).
2. High competition from other brand of wipes as they are providing schemes at very
low prices.
3. People are getting more conscious regarding brands, quality, and hygiene.
4. Most of the people are aware of wet wipes but not about the whole skin care
regime in the format of wet wipes.
5. Retailer are not much interested in Kara as they get very low margin as compared
to other Chinese wipes.
6. Lack of promotional activity is also hurting sales.
Perception of the Consumers
Quality of the product is superior to other wet wipes.
Offer and schemes should be provided.
Concept is totally new and is not easily understood.
Customer feels that it can be used only while travelling.
Sudden increase of price has been hurting.
Perception of the Retailers
Margin is very less, get more in Chinese wipes.
Totally a new concept; needs time to increase awareness about Kara.
High competition from other brands like Chinese, Mystique, and Clarus, as
prices are relatively less and easily acceptable by customers.
RECOMMENDATIONS
Good concept in the Indian market to modernize the people and to improve the
standard of living.
Prices are relatively high as compared to the other wipes category like the
Chinese wipes available in the market at cheap prices.
In order to beat the Chinese wipes market competition, there is need to adopt
aggressive advertising, campaigns, free samples, penetration policies of pricing.
It is essential to invest in promotion activities especially for new markets, product
sampling and is required to create awareness for the products specially among
the middle income group.
Actively contact retailers directly, not only through importer or agent.
Retailers are getting very high margin from Chinese wipes, so company need
to take into account retailers expectations so that they feel motivated in selling
KARA.
In order to cut the market share of Chinese wipes, company need to increase
awareness about its long term harmful effect by organising campaigns at different
places.
Regular contact should be maintained with the retailer directly so that they can
give their feedback
Some schemes should be introduced on time basis in order to attract consumers.
KARA is the single brand which provides a variety in wet wipes but many
consumers have no information about it, so advertisement of each variety should
be telecast.
REFERENCES
1. Kotler, P. (2009) Marketing Management, Pearson Education (Thirteenth Edition)
2. Malhotra, N. K. (2007) Marketing Research, an Applied Orientation, Fifth Edition, Pearson
Education
3. Schiffman, L. and Kanuk, L. (2009) Consumer Behaviour, Pearson Higher Ed USA
4. www.adityabirla.com/ last accessed on 9/7/2012
5. www.grasim.com/ last accessed on 9/7/2012
6. http://marketingpractice.blogspot.com/2008/05/kara-skincare-wipes-at-your-best-always.html/
last accessed on 11/7/2012
7. http://www.indiaprwire.com/pressrelease/consumer/2008060410008.htm/ last accessed on 11/
7/2012
8. http://living.oneindia.in/insync/2008/aditya-birla-group-kara-skincare-wipes-070608.html/ last
accessed on 11/7/2012
Market Research and Brand Promotion of
Media Com Karaoke in Mumbai
Abdullah Qureshi*
ABSTRACT
The project entitled Market Research & Brand Promotion of Media Com Karaoke in Mumbai, is
a detailed study on the demand and the positioning followed for the promotion of Media Com
Karaoke in Mumbai. Due to the huge entertainment market in Mumbai, there is a huge demand
for products that provides any kind of entertainment to the people, thus creating a very lucrative
market for Karaoke. The main objective of the project is to find out the market potential and the
reaction of the customer to this new brand of Karaoke in Mumbai. At first, an extensive literature
survey was done about the product and market. Then a list of large, small, and medium scale
dealers and distributors were prepared from various sources. Then a specified group of people
were chosen representing each segment who was later contacted to know their preference among
the different Karaoke brands. Analysis was predominantly based on brand preference, price factor
and service provided by the existing Karaoke brands to the customers in Mumbai. Though it was
seen that Magic Sing is the market leader in the Karaoke sector, Media Com has a huge potential
for growth. The main hurdle in Media Com is the lack of brand knowledge in the market about the
various benefits and extra features that are provided by Media Com. For the purpose of creating
brand awareness in the market along with maintaining its USPs like best technology at the best
available price, Media Com is undertaking a lot of brand promotional activities like holding music
competitions and kiosk placements in big malls where the promotion will be huge as a large
number of people turn out at malls.
INTRODUCTION
In modern age the means of entertainment are immense. People move out to different
places and use different means in order to entertain them. Starting from iPods, music
players, mobiles, walkman, etc. the world has evolved a lot. Taking cue from this a new
means of entertaining people is the Karaoke. D&D Promoters has been involved in this
business of making people aware of this new concept. Karaoke serves the purpose of
entertaining the people by helping in creating an atmosphere that is heartily accepted
by all. D&D Promoters has been functioning for the past 5-6 years in the distribution
of Karaoke all over Maharashtra and Gujarat and are slowly expanding their business
all over India.
The operations of D&D Promoters started with Magic Sing Karaoke and today its
operations have expanded to the distribution of various other karaoke brands including
Kortek and the latest being Media Com karaoke. D&D Promoters is currently focussing
*
Student, Batch MBA-15 (2011-2013), E-mail : ahbkzain@gmail.com
its operations towards Media Com Karaoke, shifting its focus from Magic Sing and
Kortek. The project is directed at the brand promotion and market research of Media
Com Karaoke.
OBJECTIVE
To position the brand in the minds of the customer by promoting the brand.
METHODOLOGY
A questionnaire was prepared to match the requirements of the study. This was used
for the collection of data from various respondents. The various methods that were
used for the collection of data were:
1. Direct Interview Method
The customer already using a certain brand of karaoke were met personally with
prior appointment and interviewed one-to-one.
2. Tele-calling Method
The customers currently using karaoke were telephoned in to collect the necessary
data required for the study.
3. Direct E-mail Method
The questionnaires were e-mailed to the respondents and their replies were used.
FINDINGS
Media Com Karaoke
Media Com has a low market share: Media Com has only 10% of the total
market share in Mumbai karaoke market. A large 90 % of the market is untapped
which is captured by other karaoke brands. The increasing trend of using karaoke
as a means of entertainment has also created a huge opportunity. Another
factor that should be kept in mind is that Media Com also has a medium
dissatisfaction level among the existing customers. Not only expansion but
retention of the existing customers is also required.
Media Com has a huge potential to grow: In six months time the company
has grown to 10 % of the total market share and the market potential indicates
another growth by 10% which is a good indicator for the company. Media Com
is slowly and steadily becoming a preferred karaoke brand for the karaoke
market.
General Findings for Karaoke
Factors looked upon by various customers while choosing Karaoke: The
customers in the market prefer a lot of factors while purchasing karaoke and it
depends on the section of consumers that is whether he belongs to the high
income group or middle income group. In case of the high income group, they
look for quality while going for karaoke. This is because the price factor is not
a big issue for the high income group and they concentrate more on quality. The
middle income group takes into account a lot of factors and the most important
being price for them.
Expenditure decide medium: The level of expenditure that every customer
segment is ready to spend determines targeting. Therefore, karaoke brands can
find customer purchasing power in order to target them.
Level of Satisfaction: The level of satisfaction is a key variable that influences
the customers propensity to switch from the current brand to another brand.
This means that brand will have to maintain a good satisfaction level if they wish
to retain their customers and need to find out the dissatisfied customers of other
competitors and churn them to Media Com customer.
Competition: The main competitors for Media Com in the karaoke market of
Mumbai are Magic Sing, Kortek, and other small operators. In order to
eliminate competition, pricing and quality plays a very important role.
Lack of innovative products: The different brands operating in the market
should focus on adding some new features to their product as the current
customers are looking for some new added features like USB support, SD card
storage and recording.
Customers perception: Customers admire Media Com for its latest technology,
reliability and added features. Magic Sing is chosen for reliability and service.
Others are chosen for price.
Lack of customer awareness: Clear customer awareness on the functioning
is missing which is providing bad for the karaoke. Karaoke should be promoted
on a high platform and its benefits should be made clear to the customers and
it should be differentiated from iPods, Music players, etc.
RECOMMENDATIONS
Media Com
Concentrate on promotions: Media Com should concentrate on promotional
activities and that too aggressively in order to create brand image of the product
and to make the product get a hold of the market. Promotions help in making
the product known to the consumers.
Media Com should target other segments: As more and more customers are
becoming aware about the concept of karaoke, hence the brands should focus
the untapped sections of the market. They should tailor the products as per the
different customer segments in order to fulfill their desires.
Advancement in technology: There should be an advancement of technology
in the karaoke to develop better innovative products with lesser cost. That can
create a larger market opportunity for Media Com as it can cater to the
untapped sections of the market.
Pricing: Media Com should take care of their competitors price before pricing
their products as the price is one of the factors that convinces consumers to buy
the product. Pricing influences consumer decision making hence it is one of the
most important factors to establish oneself in the market.
General
Improve satisfaction level: Karaoke brands needs to improve the general
satisfaction level of the customer by providing them better services and better
products. Try to solve the problem as fast as possible and also keep in touch
with the customer through various medium so as to realize the problem faster
and resolve it.
Karaoke brands needs to concentrate on more than one segment: Karaoke
brands do concentrate on more than one segment but there are other segments
in consumers which have been left untapped by the karaoke brands. They
should focus their complete attention to the untapped segments as its potential
still remains unknown in these segments.
REFERENCES
1. Beri, G.C. (2000) Marketing Research, Third Edition, Tata Mcgraw-Hill Publishing Company
Ltd
2. Kotler, P. and Kevin, K. L. (2006) Marketing Management. Pearson Education
3. Malhotra, N. K. (2005) Marketing Research, Fourth Edition, Pearson Education
4. explore.oneindia.in/industry/karaoke/ last visited on 05.05.2012
5. wikipedia online encyclopedia en.wikipedia.org/wiki/d&d promoters/last visited on 15.08.2012
6. www.justdial.com/last visited on 04.08.2012
7. www.d&dpromoters.in/ last visited on 20.07.2012
8. www.sulekha.com/ last visited on 04.08.2012
Youth Smartphone Usage, Behaviour and
Relationship Study
S. Murali Choudhary*
ABSTRACT
The research was carried out for Leo Burnetts client Samsung Mobile India to get a
better understanding of its young target audience in India. This research tries to explore
the youths usage, behaviour and relationship with their smartphones and how this
understanding could help develop better advertising and future products.
INTRODUCTION
Nielsens December 2010 Whitepaper on Mobile Youth Around the World reveals
that most young people with mobile phones chose their own device. The smartphone
has become a personal device and has established its importance in the youths life not
only at a functional level, but also at an emotional level. Exploring the youths usage,
behaviour and relationship with their smartphones across different price bands and life
stages allows a deeper understanding of the segments within the whole chunk, that is,
the youth.
According to Cyber Media Research, Samsung topped the Indian smartphones market
with 40.4 per cent share during the January-March quarter in 2012. Total smartphone
sales touched 2.7 million units during the quarter. Nokia with 25.5 per cent was ranked
second, while BlackBerry-maker Research in Motion was third with 12.3 per cent share.
Mobile phone operators are operating in a market with abundant choice and increasing
customer power. Knowing your customers inside-out is the key to innovation and breaking
through the clutter. The key to achieving customer relevance means knowing ones best
customers even better in order to deliver on their current and future needs while
identifying new high priority segments for new growth. Identifying and focusing on core
segments is critical. Understanding needs and behaviours and translating those insights
into new business opportunities becomes the real foundation for achieving growth.
From a qualitative standpoint, an exploratory research explores the differences in needs
of ones customers with respect to various segments. Regardless of the fact that the
youth is looked at as one segment, the marketing messages and even the products
themselves should differ to meet their needs at different emotional levels.
*
Student, Batch MBA-15 (2011-2013); Email: muralisahukara@gmail.com
OBJECTIVES
To understand
The youths usage, behaviour and relationship with their smartphones.
The need of a smartphone in a youths life.
Why?
To map the findings of the research for better positioning and advertising
development.
To identify the needs of the youth and translate them into better future product
development.
SCOPE
The following questions were explored:
How are the youth using their smartphones and why?
How is their behaviour with smartphones as consumers and as emotional beings
and why?
How is their relationship with their smartphones on an emotional plane and
why?
The focus was on the different kinds of handset users within the youth segment. This
gave us a deep look across various price bands, who are using them, why are they
using them and what are they looking for. The phone market is divided in the following
price bands
Less than 10k
10k-15k
15k-20k
20k-25k
More than 25k
The research was focussed on the needs of the youth across these price bands and
how the device fits in their life. To be clearer, if the youth had to be divided into further
sub-groups, the research gave a clearer picture about the needs of these sub-groups
across the various price bands.
METHODOLOGY
Research Methodology
Exploratory Research
Qualitative Study
Research Design
Phase I 10 Interviews with mobile phone retailers to get an idea about what
kind of phones the youth are buying
Phase II 25 Individual In-Depth Interviews to gain an understanding about the
youths usage, behaviour and relationship with their personal smartphones
Sampling Criteria
18-25 years, Urban, Male/ Female
Smartphone owners for more than 6 months
Respondent Profile
Respondents with smartphones of different price bands - <10k, 10k-15k, 15-k-
20k, 20k-25k and >25k
Respondents from different life stages Under Graduate Students, Early Jobbers,
Post Graduate Students
Sampling Technique
Convenience Sampling
Snowball Sampling
As an aid to the individual in-depth interviews, projective techniques like Word
Associations, Draw a Picture, Cartoon Test, Sentence Completion, Personification were
used which helped in giving better and truer responses.
FINDINGS AND ANALYSIS
Grouping on the basis of Price Bands - Key Findings:
1. Less than 10k
What do they seek?
Latest Technology - Even though they do not understand technicalities, it gives
them a sense of moving with the age and being advanced.
Multiple Functionality - Gives them something more than the regular phone as
they can do more. However, being multi-functional is with respect to entertainment
and fun and not towards productivity and efficiency.
Connectivity - Allows them to connect with their circle on multiple platforms like
SMS, IM Services (like BBM and Whatsapp), SNS (like Facebook and Twitter),
E-mails, etc.
Why do they shift to a <10k smartphone?
Shift with Change in Lifestyle - The shift is taking place with change in
lifestyle. They are upgrading to a smartphone when they see the device is fitting
better in their lives.
Shifting due to Friends Circle - Friends circle is a major factor in play for the
shift. They are shifting to similar devices being used by their friends for easier
and cheaper connectivity.
2. 10k-15k
What do they seek?
Better Technology + Efficiency - They want to move with technology, but dont
want to settle for the entry level/ basic device as they want more out of their
phone for higher efficiency.
Entertainment + Productivity - They want their smartphone to be a jack of all
trades and thus go for a device that is capable of providing all such functions
satisfactorily, if not in the best possible quality.
Better Connectivity - Allows them to connect with their circle on multiple
platforms like SMS, IM Services (like BBM and Whatsapp), SNS (like Facebook)
& access e-mails in an efficient way.
Why do they shift to a 10k-15k smartphone?
Shift with Change in Lifestyle - The shift is taking place with change in
lifestyle. They are upgrading to a smartphone when they see the device is fitting
better in their lives.
Shifting due to Friends Circle - The friends circle is a major factor in play for
the shift. They are shifting to similar devices being used by their friends for
easier and cheaper connectivity.
3. 15k-20k
What do they seek?
Better Technology But Not Latest - They want to have better technology, but
their budget is tight. At some point, these phones were the flagship devices
which makes them settle for this range.
Entertainment + Productivity + Connectivity - They want the smartphone to
give them a taste of all aspects of a flagship device. So there might be certain
features that arent as advanced, but the device allows them to make the most
of it.
Efficiency + Reducing Stress - Its not about just having the features and
functions on the phone, but it is also about a better way of using them in order
to be more efficient, reduce stress
Shift with Need in Lifestyle - They shift to this device as they feel a strong
need for it and have evaluated how the device is going to fit in their lives.
Shifting with the Want for a Better Device - The ones having an entry level
smartphone, realize that more can be done on a phone with better technology
as the entry level is unable to do so.
4. 20k-25k
What do they seek?
Almost The Best Technology - They want the best tech but their pockets
arent that deep. They settle for a step below the high ends, saving grace being
they were the best just before the arrival of the latest.
Communication < Other Functions - They are using their smartphones not as
communication devices primarily. Other functions like camera, video, gaming,
browsing, reading etc. are way more advanced. So usage is more skewed
towards them.
Doing More - They want the smartphone to give them a similar experience as
that of a flagship device as they want all the possibilities in their hands.
Shifting with Alluring Technology - Newer technology seems more lucrative,
driving a change and shift to a new device.
Shifting with Affordability - As the newer high ends are being launched in the
market, the price of the older ones is falling, making these smartphones
accessible to more.
5. More than 25k
What do they seek?
The Best Technology - They want the best technology in terms of hardware
as well as software so as to push their device to the edge, getting more out of
the phone.
All-in-One - Their smartphone is about integration of multiple functions in one
single device and they want all the features, apps, specs on their handset
making it a fully loaded gadget.
Doing more - They are looking out for maximum use out of their smartphone
leveraging on the hardware, software and applications on it.
Why do they shift to a >25k smartphone?
Shifting with Alluring Technology - Newer technology seems lucrative driving
a change and shift to a new device. For them having the best technology in their
hands is of primary importance.
Shifting for something Specific - They shift to a particular device because of
its unique and advanced capability that some other device doesnt offer.
RECOMMENDATIONS
The findings of the research can be translated into ideas for small scale planning
projects or generating quick ideas.
Based on the findings of the research, the following recommendations could be made
for Samsung Mobiles India:
1. Less than 10k
Perfect Device for a new Life - Samsung should project their smartphones as
the perfect devices for a new lifestyle. Eg. Transition from high school to college.
Draw focus on Multiple Functionality - Samsung should focus on the aspect
of being multi-functional with respect to entertainment, fun and connectivity,
highlighting features like IMs, Social Networking, Music, Movies, Internet etc.
Connectivity and Social Circle - Samsung should focus on the aspect of
communication over various platforms like IMs, SMS, Social Networks, E-mail
etc. thus enhancing connectivity among the users social circle.
Moving Ahead with Technology - Even though users of this price band do not
understand technology that well, they feel the urge to be ahead in terms of
technology. Samsung can focus on the key benefits of latest technology.
2. 10k-15k
For the range between 10k-15k, Samsung may apply the first 3 recomendation
given in less than 10k category. In addition there hss to be:
Focus on Features & Specifications - Samsung can focus on the key benefits
of latest technology and project the device as a step higher than the basic/ entry
level smartphones by putting the spotlight on its features and specifications.
3. 15k-20k
Possibilities - Samsung should project their smartphones as a device with
multiple possibilities.
Draw focus on Performance and Efficiency - Since these devices are not
about the latest technology but are way better than the low end smartphones,
Samsung should focus on the performance of these devices and show how
efficient they are by simplifying daily tasks.
Entertainment, Productivity and Connectivity - Samsung should focus on the
aspect of these devices being multi-purpose, giving a slice of each aspect of a
high-end smartphone.
4. 20k-25k
Focus on Advanced Functions and Possibilities - Samsung should project
their smartphones being capable of advanced functions and should draw more
focus on the non-communication related functions and being diverse and multi-
purpose.
Draw focus on Performance and Efficiency - Since these devices are not
about the latest technology but they are better than the low end smartphones,
Samsung should focus on the performance of these devices and show how
efficient they are by simplifying daily tasks.
Affordable High End Technology - Samsung should focus on high end
technology being available at an affordable price to seek the attention on the
high end seekers.
5. More than 25k
Advanced Functions and Endless Possibilities - Samsung should project
their smartphones being capable of advanced functions and should draw more
focus on the non-communication related functions leveraging on the hardware,
software and app integration on the device.
Top Notch Performance - Since these devices are the most powerful
smartphones, Samsung should focus on the performance of these devices and
show how efficient they are by simplifying various tasks.
Multi-Faceted - Samsung should focus on the aspect of these devices being
a powerhouse of productivity, efficiency, utility, connectivity and entertainment by
giving a slice of each aspect of a high-end smartphone.
Differentiated High End Technology - Special features are the key differentiators
in this category and thus Samsung should focus on the key differentiating high
end technological features like for example S-Beam in case of Samsung,
Simultaneous Video Recording and Capturing Pictures in case of HTC etc.
SCOPE FOR FURTHER RESEARCH
The research is sufficient to generate quick ideas for small scale usage for planning
projects as it gives a better understanding of the youths usage, behaviour and relationship
with smartphones. However, in order to use it for large scale use further research is
recommended.
Smartphones have a large variety and today there are a lot of brands in the
market. To get a better picture, more individual depth interviews should be
conducted. Due to the constraint of time, this wasnt possible to that great an
extent.
India is a very large country and even more diverse culturally. Different regions
have different cultures, giving rise to different needs and wants, thus leading to
different consumer behaviour. The area covered by this research was in 5
different cities; however it would be better to explore more geographical regions.
The research was exploratory in nature. It might serve as a solution for generating
quick ideas but to help it translate for the use of a full-fledged campaign, the
findings will have to be verified quantitatively with a justified sample size.
REFERENCES
1. Nielsen Whitepaper on Mobile Youth Around the World December 2010 in http://
www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2010%20Reports/ Nielsen-
Mobile-Youth-Around-The-World-Dec-2010.pdf
2. Samsung l eads Indi a smartphones market i n Jan-Mar Li nk http://
www.thehindubusinessline.com/industry-and-economy/info-tech/article3598227.ece
3. http://psychsoma.co.za/files/15methods.pdf/ Methods of Qualitative Data Analysis
4. www.leoburnett.com /Information on Leo Burnett www.samsung.com/in/ Information on
Samsung
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