Ijmtr Vol1 No.3

International Journal of Management and Technical
Research (IJMTR)

EDITOR IN CHIEF
PROF. V.K. SRIVASTAVA
Ex-Dean, Industrial Research and Development
IIT, Delhi

Associate Editor Co Editor
DR. P.K. BHARTI DR. RAJ AGGARWAL
Ex Director, UCER Director, AIMA

EDITORIAL REVIEW BOARD

DR. A.K. TRIPATHI
Ex- Professor, IITD

DR. S.N. GUPTA
Ex- Professor, IT-BHU

DR. S. N. SINGH
Ex-Professor, IT-BHU

DR. PRAMOD KUMAR
Director,Tula's Institute, Dehradun

DR. ANOOP PANT
Professor, IME, Ghaziabad

DR. A.S. VIDYARTHI
Professor & HOD, BIT Mesra, Ranchi

DR. HAMID SAREMI
VC, IslamicAzad University of Iran -
Quchan Branch

DR. DAVID
Senior Lecturer, Deakin University,
Australia

DR. MOHAMMED USMAN
Assistant Professor,
King Khalid University, Abha, SA

PROF. R.K. SINGH
Professor, KNIT Sultanpur

PROF. VISHAL CHAUDHARI
Professor, Caledonian
College of Engineering (CCE), Oman

PROF. WALI MONDAL
Dean, School of Business and Management,
National University,
11255 North Torrey Pines Road

DR. OZGUR CENGEL
Associate Professor,
Istanbul Commerce University, Turkey

DR. PRAKASH NIMBALKAR
Professor, AIT, Bankok

DR. J.K. SHARMA
Ex- Professor, FMS, Delhi University

DR. AMOL SINGH
Assistant Professor
Indian Institute of Management (IIM),
Rohtak

DR. PRASHANT PRABHAKAR
DESHPANDE
Associate Professor, S.N.D.T.
University,Mumbai

DR. V. RAJESH CHOWDHARY

DR. NITIN KUMAR TRIPATHI

PROF. SUNIL KUMAR MISHRA
Professor, AIMT, Gr. Noida

PROF. (DR.) NILENDRA BADAL
KNIT Sulatanpur

DR. NEEHAR SINGHAL
AKG Engineering College, Ghaziabad

DR. SAMAR RAQSHIN
Associate Professor,
School of Management, GBU

April June - 2014
Vol. 1 Number 3
ISSN 2347- 9035
DR. VIDUSHI SHARMA
School of ICT, GBU, Gr. Noida

DR. SUNIL KUMAR
Professor, UCER, Gr. Noida

SHIVANI AGGRAWAL
Associate Professor, AIMT, Gr. Noida

DR. LOVY SARIKWAL
Assistant Professor School of Management,
GBU

SAMEER ASTHANA
Assistant Professor, UCER, Gr. Noida

VIJAY SINGH RAWAT
Assistant Manager, HCL

About the Journal

The International Journal of Management and Technical Research (IJMTR) is a Quarterly research
journal, which is committed to publish scholarly empirical and theoretical research articles that have
a high impact on the management and technical research field as a whole. The journal encourages
new ideas or new perspectives on existing research. The journal covers maximum areas of
management and technical researches.

International Journal of Management and
Technical Research (IJMTR)

CONTENTS

SPIRITUALITY AND HARDINESS AMONG ADOLESCENTS Shahana Anjum
Dr. (Mrs) Asiya Aijaz

01
MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN INDIA:
IN THE ERA OF GLOBALIZATION

Shobha.B.Hangarki 06
MICRO-FINANCE AND ITS ROLE IN WOMEN EMPOWERMENT-
AN OVERVIEW

Shailaja Kheni
Dr S H Honnalli
14
FUTURE OF GREEN CARS IN INDIA

Kavita Sagar 20
THE AGILE HEARTBEAT: DIFFERENT APPROACH TO SOFTWARE
TESTING

Pratima Mishra
Rohit Pandey
Sameer Asthana
29
IMPACT OF TALENT MANAGEMENT ON BUSSINESS PRACTICES:
A STUDY ON FACE BOOK

Miss R.S.V.Rama Swathi
Ms.Lopamudra Pattnaik
34
HUMAN RESOURCE PRACTICES AND ORGANISATIONAL
EFFECTIVENESS: A REVIEW, SYNTHESIS AND RESEARCH
IMPLICATION
Ms. Surekha V. Nayak
Dr. Anjali Ganesh

48
MARKET POWER

ndez

55

EFFECTIVENESS OF POVERTY ALLEVIATION SCHEMES FOR
PERSONS WITH DISABILITIES IN INDIA

Vinod Kumar Mishra 63
ABOUT THE CONTRIBUTORS 68
GUIDELINES FOR SUBMISSION OF PAPERS BY AUTHORS 69

April June - 2014 Vol. 1 Number 3
ISSN 2347- 9035

International Journal of Management & Technical Research (IJMTR)
Vol -1 No. 3 PP 01-05
Page | 1

SPIRITUALITY AND HARDINESS AMONG
ADOLESCENTS

Shahana Anjum
ABSTRACT

A spiritual person is like the mariner in a storm, he slackens sail, waits, hopes, and the storms do not
prevent him from loving seas. He would believe the unity in diversity and the oneness of all life on earth.
(Hussain, Luqman and Jahan, 2012). Hardiness is a cluster of characteristics that include essence of
commitment, a perception of difficulties as representing challenges and opportunities, and a belief in
spirituality and one important personality variable i.e., hardiness among adolescence For this purpose
two scales have been used namely Spiritual Personality Inventory (Hussain, Luqman and Jahan,2012)
and Singh Psychological Hardiness Scale (Singh, 2008). These tests were administered on 200 subjects,
consisting male and female, studying in 11th and 12th classes. The results were analysed by Pearson
Product Moment Correlation. The result showed significant positive relationship between spiritual
personality and hardiness.

KEYWORDS: Spirituality, Adolescents, Psychology, Hardiness

Spirituality is the positive dimension of human
life that it alone brings harmony, peace and
happiness. According to Swinton (2001/2003)
dynamic life-force which vitalizes human beings
and provides motivation to discover God, value,
Spirituality is a
most powerful weapon, according to Kabbani
(2008) we can call upon it as the struggle
between acceptance and non-acceptance, belief
or unbelief. A spiritual person has high degree
of unity within himself; he organized his lives
around some supreme values and achieved a
powerful concentration of purpose and drive.
He has positive emotions, desires and ideas and
his responses of life are well-established and
well-organized.

The spiritual personality may be defined as an
individual who knows how to anchoring his
lifestyles around his noble attitude toward
others and follow the path of moral rectitude
(Hussain, Luqman and Jahan, 2012). Spiritual
person keeps his thoughts anchored, focused
and disciplined. The essential characteristics of
spiritual persons are love, peace and unity. A
spiritual person is like the mariner in a storm,
he slackens sail, waits, hopes, and the storms do
not prevent him from loving seas. A spiritual
person constantly runs upon self-focused life
and lives miserably striving to find happiness
- Nevertheless, far
from being at loose ends within themselves,
such persons have organized their lives around
some supreme values and achieved a powerful
concentration of purpose and drive.

Hardiness is one of the positive personality
characteristic which has been conceptualized as
a combination of the three attitudes (3Cs) of
commitment, control, and challenge (Kobasa,
1979; Maddi & Kobasa, 1984).

1. Commitment: Commitment involves
ones feelings towards work, family,
social encounters, and self. Those with
the sense of commitment experience a
sense of purpose within themselves and
in what they do; they perceive
themselves to be a vital and active
participant in their own lives. The
hardy person believes in the truth,
importance, and interest of who he/she
is and what he/she is doing. Hardy
people have a strong commitment to
self, work, family, and other values and
are often role models for their children
and community.
2. Control: Control refers to a sense of
power. Those with a high profile of
control are able to take an active role in
and possess a sense of responsibility for
their lives. The attitude of those who
have high levels of control is one of
influence; they perceive they can

Vol -1 No. 3 PP 01-05
Page | 2

influence the outcome of events
affecting them. When control is low,
individual suffer from a sense of
helplessness and hopelessness
consumed by a feeling that they are
powerless to meet the situation. A
hardy person believes that he/she has
the power to influence the course of
events in his/her life, even unpleasant
events, and he/she accepts personal
responsibility for both the failures and
success in his/her life.
3. Challenge; Challenge is the ability to
view all situations as potentially
positive with successful outcomes.
Individuals who experience low levels
of challenge often perceive any given
situation as a threat to their well-being.
Hardy people see change in their life as
a challenge not a threat. They enjoy
facing challenges in their work and
lives. Change is seen by them as an
incentive for further growth and is
responded to by accepting the
unexpected, exploring the
environment and discovering which
resources to approach and use when
needed Kobasa, S.C (1979).

These 3Cs of hardy attitudes provide the
courageand motivation to do the hard work of
turning stressful circumstances from potential
disasters into growth opportunities instead
(Maddi, 2002).All three are needed in order to
be courageous. Hardiness is a combination of
attitudes that provides the courage and
motivation to do the hard, strategic work of
turning stressful circumstances from potential
disasters into growth opportunities. The
concept of hardiness involved viewing
hardships and new life experiences as
challenges. The foregoing discussion leads us to
assume that spirituality and hardiness both
gives positivity to personality and enhances the
coping mechanism of a person.

After reviewing large number of studies it is
suggested that personality variables are
primarily related to spirituality (Johnstone,
et.al, 2007) and leads to excellence in
performance, and enhanced physical and
mental health. With regard to everyday stresses,
hardiness operates as the courage to face and
cope effectively (Colvin & Block, 1994).These
beliefs are believed to buffer hardy people from
the negative effects of coping with stress and
change (Soderstrom, Dolbier, Lieferman and
Steinhardt, 2000).Spirituality has also been
found to be an important coping mechanism
for young adults, especially when it is
manifested as service towards others (Powers,
Cramer, &Grubka,2007).It has been suggested
that spirituality may actually characterize a sixth
personality dimension (Piedmont,1999).
Research with adults has found that higher
levels of spirituality have been related to life
satisfaction, psychological well-being, positive
mood, feelings of purpose, gratitude, lower
cortisol stress responses, lower blood pressure,
and lower mortality rates (Fehring, Brennan, &
Keller, 1987; Leak, DeNeve, & Greteman,
2007; McCullough, Emmons,& Tsang, 2002;
Tartaro, Luecken, & Gunn, 2005). Moreover a
good number of studies haveshown that people
who are high in hardiness tend to deal more
effectively with stressful situations into positive
& Diplacido, 2001; Williams,
Weibe & Smith, 1992).

A review of literature reveals that no study has
been conducted so far to see the relationship
between spiritual personality and hardiness
among adolescents. The present study was
undertaken to fill this gap.

METHODOLOGY
Sample: The total sample consisted of 200
Muslim adolescent students studying in XI and
XII standards were selected randomly. 100
students were drawn from Madarsa (Islamic
schools) and 100 were drawn from Aligarh
Muslim University.

Tools: Following tools were used in present
study:
1. Spiritual Personality Inventory (SPI):
developed by Husain, Luqman and
Jahan, (2012). It consists of 32 items
having two factors namely, noble
attitude toward others and moral
rectitude, reliability was found0.84
and 0.74 respectively. The factorial
construct validity of SPI reveals high
loadings of each item i.e. more than
0.40. The responses on items were
obtained on the 5-point rating scale.
2. Singh Psychological Hardiness Scale
(SPHS): developed by Singh (2008)
consists of 30 items. The test-retest
reliability was found to be 0.862 which

Vol -1 No. 3 PP 01-05
Page | 3

was significant at 0.01 level .It is Likert
type 5 point scale. The scoring of
SPHS possesses the trait of simplicity.
Every item has five response options:
Strongly Agree, Agree, Neutral,
Disagree, and Strongly Disagree.

Procedure: In order to collect the data,
random sampling technique was used, the
questionnaire were distributed individually to
the subjects. A good rapport was established
with the respondents before requesting them to
fill up questionnaires. Subjects were assured of
the confidentiality of their responses and were
requested to extend their cooperation. Each
respondent on an average took 20-25 minutes
to fill up the questionnaire. Finally, the
questionnaires were collected from all the
respondents, scoring done and the data was
analysed with Pearson Product Moment
Correlation.

RESULTS
TABLE 1: Showing correlation coefficients between dimensions of Spiritual Personality Inventory
[Noble Attitude (NA) and Moral Rectitude (MR)] and Spiritual Personality (SP) and Hardiness (H)
among Madarsa and AMU subjects.
SUBJECTS N NA/H MR/H SP/H
MADARSA 100 0.434** 0.601** 0.560**
AMU 100 0.237* 0.280** 0.287**
**Correlation is significant at the0.01 level.
*Correlation is significant at the0.05 level.

Table 1 shows the significant positive
correlation between noble attitude and
Hardiness (r =0.434, p<.01), moral rectitude
and Hardiness (r= 0.601, p<.01), spiritual
personality and Hardiness (r =0.560, p<.01) of
Madarsa group. For AMU group significant
positive correlation is found between noble
attitude and Hardiness (r =0.237, p<.05),
moral rectitude and Hardiness(r= 0.280,
p<.01), spiritual personality and Hardiness (r =
0.287, p<.01)
TABLE 2: Showing correlation coefficients between dimensions of Spiritual Personality Inventory
[Noble Attitude (NA) and Moral Rectitude (MR)] and Spiritual Personality (SP) and Hardiness (H)
with samples of boys and girls.
SUBJECTS N NA/H MR/H SP/H
BOYS 100 0.330** 0.407** 0.403**
GIRLS 100 0.368** 0.553** 0.500**
**Correlation is significant at the0.01 level.

In table 2 shows the relationship in boys and
girls samples, significant positive correlation is
found between noble attitude and Hardiness (r
=0.330, p<.01), moral rectitude and Hardiness
(r=0.407, p<.01), spiritual personality and
Hardiness (r = 0.403, p<.01) among boys
sample. For girls sample significant positive
correlation is found between nobleattitude and
Hardiness (r =0.368, p<.01), moral rectitude
and Hardiness (r= 0.553, p<.01), spiritual
personality and Hardiness (r =0.500, p<.01)
DISCUSSION

Vol -1 No. 3 PP 01-05
Page | 4

Results shows positive significant correlation
between the dimensions of spiritual personality
(noble attitude and moral rectitude) and
hardiness i.e., between spiritual personality and
hardiness among both Madarsa and AMU
subjects. Previous researches have also indicated
a positive relationship between spiritual well-
being and hardiness (Carson & Green, 1992;
Kamya, 2000 and Walker 2006) and spiritual
intelligence and hardiness (Akbarizadeh,
Hajivandi, Bagheri&Hatami, 2012and
Akbarizadeh, Jahanpour & Hajivandi, 2013).
These researches indirectly support our finding.
Our finding is in addition to these researches.
When we the relationship in male and female
subjects to Madarsa and AMU groups
combined, it is found that, there is also a
significant positive relationship between the
dimensions of spiritual personality (noble
attitude and moral rectitude) and hardiness i.e.,
between spiritual personality and hardiness.
Our finding suggests that both male and female
subjects who have spiritual personality are
hardy. This finding is inconsistent with the
findings obtained by Akbarizadeh, Hajivandi,
Bagheri & Hatami, (2012) and Akbarizadeh
Jahanpour & Hajivandi, (2013) who found that
gender is insignificantly correlated with
spiritual intelligence.
CONCLUSION
Results of our research indicate that spiritual
personality has a significant relationship with
hardiness among both groups (Madarsa and
AMU) and gender (male and female), it may be
due to people who are hardy have higher
control, more committed and accept the
challenges in their life events and have higher
resistance to tensions. So on the behalf of the
results we can suggest improvement of
spirituality and reinforcement of hardiness
could help increase in well-being of the subjects.
REFRENCES
[1] Akbarizadeh. F., Jahanpour. F., &
Hajivandi.A. (2013).TheRelationship of
General Health, Hardiness and Spiritual
IntelligenceRelationship in Iranian Nurses.
Iran Journal of Psychiatry 8,4, 165-167.
[2] Akbarizadeh.F.,Hajivandi A.,Bagheri.F.,&
Hatami H. (2012).Relationship between
general health. Journal of Kermanshah
University of Medical Sciences (Behbood),
January-February 15(6), 466-472.
[3] Carson. V. B., Green.H. (1992).Spiritual well-
being: apredictor of hardiness in patients with
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[4] Colvin, C.R., & Block, J. (1994). Do positive
illusions foster mental health? An examination
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Psychological Bulletin, 116, 3-20.
[5] Fehring, R. J., Brennan, P. F., & Keller, M. L.
(1987).Psychological and spiritual well-being
in collegestudents. Research in Nursing &
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[6] Husain, A., Luqman, N., & Jahan, M.
(2012).Spiritual Personality Inventory
(SPI).New Delhi; Prasad Psycho Corporation,
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[7] Johnstone, B., Yoon, D.P., Cohen, D.,
Schopp, L.H., McCormack, G., Campbell, J.,
& Smith, M. Relationships Among
Spirituality, Religious Practices, Personality
Factors, and Health for FiveDifferent Faith
Traditions. Journal of Religion and Health,
Vol. 51, 4, 1017-1041.
[8] Kabbani, S. M. H. (2008). Sufism and the
perennial conflict of good and evil. In A.
Husain, S. Jamaluddin, O. Hashim, L.S.

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Chong, M. Md. Nor, & H. Sulaiman (Eds.),
(pp. 3-48). Horizons of spiritual psychology.
New delhi: Global Publishing House
[9] Kamya H. A., 2006.Hardiness and spiritual
well-being among social work students:
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[10] Kobasa, S. C, (1979). Stressful lifeevents,
personality and health: An enquiry into
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[11] Leak, G.C., DeNeve, K.M., & Greteman, A.J.
(2007). Therelationship between spirituality,
assessed through self-transcendent goal
strivings, and positivepsychological attributes.
Research in theSocial Scientific Study of
Religion, 18, 263-279.
[12] Maddi, S.R. (2002). Thestory of hardiness:
Twenty years of theorizing, research, and
practice. Consulting Psychology Journal, 54,
173 185
[13] Maddi, S.R., &Kobasa, S.C. (1984).Thehardy
executive: Health under stress. Homewood, IL:
Dow Jones-Irwin.
[14] McCullough, M.E., Emmons, R.A., Tsang, J.
(2002). Thegrateful disposition: A conceptual
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[15] Ouellette, S. C., & DiPlacido, J. (2001).
enhancement of health: Wheretheresearch has
been, whereit is stuck, how it might move. In
A. Baum, T. A. Revenson, & J. Singer (Eds.),
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194).Hillsdale, NJ: LawrenceErlbaum
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[16] Piedmont, R.L. (1999). Does spirituality
represent thesixth factor of personality?
Spiritual transcendenceand thefive-factor
model. Journal of Personality, 67, 985 1013.
[17] Powers, D.V., Cramer, R.J., &Grubka, J.M.
(2007).Spirituality, lifestress, and affective
wellbeing. Journal of Psychology and
Theology, 35, 235-243.
[18] Singh. A. R. (2008).Singh Psychological
Hardiness Scale. Agra: National psychological
association.
[19] Soderstrom, M., Dolbier, C., Leiferman, J., &
Steinhardt, M. (2000).Therelationship of
hardiness, coping strategies, and perceived
stress to symptoms of illness. Journal of
Behavioral Medicine, 23, 311-328
[20] Swinton, J. (2001/2003). Spirituality and
mental health care: Rediscovering a
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[21] Tartaro, J., Luecken, L.J., & Gunn, H.E.
(2005).Exploring heart and soul: Effects of
religiosity/spirituality and gender on blood
pressureand cortisol stress responses. Journal
of Health Psychology, 10, 753-766.
[22] Williams, P. G., Wiebe, D. J., and Smith, T.
W. (1992). Coping processes as mediators of
therelationship between hardiness and health.
Journal of Behavioural Medicine15, 237 255.

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MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN
INDIA: IN THE ERA OF GLOBALIZATION

Shobha.B.Hangarki
ABSTRACT

In the era of globalization the Micro, Small and Medium enterprises areplaying a vital rolein the
development of the country like India, and significantly contributing towards industrial production,
export and employment generation. Micro, Small and Medium Enterprises are providing large-scale
employment, with lower investments and has proved to be the second largest manpower employer, after
agriculture and occupy a position of prominence in Indian economy. With the introduction of reform
measures in India since 1991, the Government has withdrawn many protective policies for the Micro,
Small and Medium Enterprise (MSMEs) and introduced promotional policies to increase
competitiveness of the sector. Keeping in view the importance of MSMEs, the Indian government has
included this sector in its five-year plans. Globalization has expanded the market facilitating supply of
superior technology that has forced the MSMEs to face stiff competition from large domestic firms and
the MNCs. With all this cut-throat competition MSMEs have grown exponentionally in terms of
industrial output, exports, innovation, employment generation, increasing accent on public-private
partnership, etc., which has led many developing countries around the world having benchmarked the
Indian MSME sector as thekey model for their own small sector development initiatives. The current
paper is an attempt to critically explore significant growth of MSMEs in India, the challenges faced,
Governments role in upliftment of MSMEs, success rate of MSMEs and recommendations for the
prosperity of MSMEs in the era of globalization.

KEYWORDS: MSMEs, Indian economy, Protective policies, Promotional policies.

INTRODUCTION
In the era of globalization MSMEs are playing
a very important role in socio economic
development of Indian economy and acting as
the back bone of the country. The small scale
industrial sector has emerged over five decades
as a highly vibrant and dynamic sector of the
Indian economy. It has inherent advantages
like low capital requirement, high employment
generation, decentralization of industrial
activity, utilization of locally available resources
and widening of entrepreneurial base, acting as
the back bone of the nation. MSMEs have a
place of pride in Indian economy. The growth
rate recorded by this sector has normally been
higher than that of the industrial sector as a
whole. The performance of MSMEs has
enabled the country towards industrial growth
and diversification. The nature of the
businesses in this sector plays an important role
to alleviate poverty and boost sustainable
growth and equitable distribution of income in
the country. Over the last two decades, the
Indian MSME sector has grown exponentially
in terms industrial output, exports, innovation
and employment generation, fuelled by
globalization, liberal domestic economic
policies and increased public-private
partnerships. Today, many developing
countries around the world have benchmarked
the Indian MSME sector as the key model for
their own small sector development initiatives.

REVIEW OF LITERATURE
Bhavani (2010), focuses on the issues related
to quality and quantity of employment
generated by small scale industries (SSIs). The
employment generated by SSIs, is high in
quantitative terms but low in terms of quality.
Technological upgradation would enable the
small firms to create quality employment,
improved remuneration, duration and skill.
This structural shift may reduce the rate of
employment generation in the short run but
would ensure high-income employment
generation in the long run.

Dixit and Pandey (2011), applied co-
integration analysis to examine the causal
relationship between SMEs output,
exports, employment, number of MSMEs
GDP, total exports and employment
(public and private) for the period 1973-74
to 2006-07. Their study revealed the

Vol -1 No. 3 PP 06-13
Page | 7

positive causality between MSMEs output

Subrahmanya Bala (2011), stated the
impact of globalization on the exports
potentials of the small enterprises. The
study shows that share of SSI export in total
export has increased in protection period
but remain more or less stagnated during
the liberalization period. However, the
correlation co-efficient in liberalization
period is higher than that of protection
period suggesting that the relationship
between the total export and SSI export has
become stronger in liberalization period.
This may be due to the drastic change in
composition of SSI export items from
traditional to non-traditional and growth in
its contribution to total export through
trading houses, export houses and
subcontracting relation with large
enterprises. Thus, the current policy of
increasing competitiveness through
infusion of improved technology, finance,
and marketing techniques should be
emphasized.\

Singh (2012) analyzed the performance of
Small scale industry in India and focused on
policy changes that has lead towards new
opportunities for this sector. The study
concluded that SSI sector has made good
progress in terms of number of SSI units,
production & employment levels. The
study recommended the emergence of
technology development and strengthening
of financial infrastructure to boost SSI and
to achieve growth target.

Venkatesh and Muthiah (2012) found
that the role of small & medium enterprises
(SMEs) in the industrial sector is growing
rapidly and they have become a thrust area
for future growth. They emphasized that
nurturing SME sector is essential for the
economic well-being of the nation.
CHANGING ASPECT OF MSMEs
The main criteria for the meaning of Micro Small Medium Enterprise was mainly based on investment
level and number of employees before the enactment of MSMEs Development Act 2006.

The changing pattern of Investment in SSIs
Year Investment Limit (In Rupees)
1950 Up to Rs.0.5 million in fixed assets
1966 Up to Rs. 0.75 million in Plant & Machinery
1975 Up to Rs. 1 million in Plant & Machinery
1985 Up to Rs. 3.5 million in Plant & Machinery
Source: Ministry of Small Scale Industries
CLASSIFICATION OF MSMES
ACCORDING TO ACT - 2006
A major change took placein 2006 with the
enactment of MSME Development Act, 2006.
In accordance with the provision of Micro,
Small & Medium Enterprises Development
(MSMED) Act, 2006 the Micro, Small and
Medium Enterprises (MSME) are classified
into two categories.
1. Manufacturing Enterprises- These
include the enterprises engaged in the
manufacture or production of goods
pertaining to any industry specified in
the first schedule to the industries
(Development and regulation) Act,
1951. The Manufacturing Enterprise is
defined in terms of investment level in
plant & machinery.

Vol -1 No. 3 PP 06-13
Page | 8

2. Service Enterprises: These are
enterprises engaged in providing or
rendering of services and are defined in
terms of investment in equipment. The
limit for investment in plant and
machinery / equipment for
manufacturing / service enterprises, as
notified are as under
micro, small and medium enterprises as per
MSME Act, 2006 are defined based on their
investment in plant and machinery (for
manufacturing enterprise) and on equipment
for enterprises providing or rendering services.

The defined limit on investment for enterprises to be classified as micro, small and medium enterprises
is as follows:

Classification Manufacturing Enterprises Service Enterprises
Micro Rs. 2.5 million / Rs. 25 lakh Rs. 1 million / Rs. 10 lakh
Small Rs.50 million / Rs. 5 crore Rs. 20 million / Rs 2 crore
Medium Rs 100 million / Rs 10 crore Rs. 50 million / Rs 5 crore
Source: MSME Development Act 2006, Ministry of the District Industry Centers (DIC) MSME,
Government of India.

SIGNIFICANCE AND
CONTRIBUTION OF MSMEs
The MSMEs play a significant role in the
development and employment to below poverty
line people, minorities, and backward class
people and also to women. Annual report of
Ministry of MSME (2010-11) show that, in
terms of value, the sector accounts for about 45
per cent of the manufacturing output and 40
per cent of the total exports of the country. The
sector is estimated to employ about 59 million
people in over 26 million units throughout the
country. There are over 6000 products ranging
from traditional to high-tech items, which are
being manufactured by the Micro, Small and
Medium enterprises in India.
In India, MSMEs has made significant
contribution to the economy:

domestic production

35-40% to the GDP and account for
more than 90% of all industrial
enterprises in India.

GROWTH OF MSMEs
Several key factors have influenced in the
shaping the growth of MSMEs,
1. Indian MSMEs account for over 40
output, exports and employment. The
sector commands a strong presence
across India, accounting for the bulk of
employment generation.
2. The MSME sector is a key GDP
growth driver, having 30 million
enterprises, creating some 1.3 million
jobs every year and producing over
8,000 quality products for Indian and
international markets.
3. The sector comprises a wide range of
enterprises, many of which are
competing with large enterprises in
sectors like auto components,
agriculture business, etc., on the base of
quality and innovation.
4. Today, Indian MSMEs are driving a
gamut of R&D and innovation
initiatives in both traditional and
emerging business sectors, besides
and manufacturing growth.
5. This sector acts as a highly innovative,
knowledge-driven startups for new
entrepreneurs.

OPPORTUNITIES AND
CHALLENGES OF
GLOBALIZATION FROM THE
VIEW POINT OF MSMES

Concept of Globalization
Globalization may be defined as the process of
integrating various economies of the world
without creating any hindrances in the free flow
of goods and services, technology, capital and
even labour or human capital

Vol -1 No. 3 PP 06-13
Page | 9

OPPORTUNITIES

Emerging Areas of Business
MSMEs have identified many highly
promising business areas such as, sub-
contracting, outsourcing, medical
transcription, clinical research trials
and many new technologies like
biotechnology, nanotechnology etc
which are promising businesses for the
new generation MSME entrepreneurs.

Exposure to Foreign Markets
The MSMEs enjoy the benefits of
selling their products and services to
the world market rather than being
confined into domestic market.

Flow of Foreign I nvestment and
Technology
In India, the MSMEs are suffering
from outdated technology and sub-
optimal scale of operation. In recent
years its found that, many foreign
companies have tied up with Indian
MSMEs and helped them to use better
technology, managerial skill, frame
better market strategies etc

Employment Generation
Since MSMEs are labour-intensive in
nature, the MSMEs make significant
contribution in employment
generation and expanding industrial
network in rural areas. The various
products produced by this sector have
good demand in market. The MSMEs
have been a good source of
employment generation, the workers
inherit transfer skills from generation
to generation and can be even more
successful if the sector gets support in
terms of capital, technology, and
innovative marketing techniques etc.

Better Performance by the MSMEs
Before globalization, the MSME sector
was a highly protected sector.
Suddenly, after globalization many
such protective measures were
withdrawn and they had to fight for
their existence. This competitiveness in
domestic and global market is bringing
out superior performance.

Export Contribution
The products produced by MSME
sectors such as, readymade garments,
woolen garments, sports goods, plastic
products, processed food and leather
products, handicrafts etc., have great
demand in the foreign market.

Removal of Regional disparity
MSME sector can take care of local
needs, improve economic condition of
the area and can bring a qualitative
change in the economy of the country.

CHALLENGES
An increasingly globalised world, marked by
competition and innovation, is posing newer
and varied challenges to the MSMEs. Because
of their small size, individual MSMEs are
handicapped in achieving economies of scale in
procuring equipment, raw materials, finance
and consulting services. Often, they are unable
to identify potential markets to take advantage
of market opportunities, which require large
volumes, consistent quality, homogenous
standards and assured supply. s
globalised economy, improvements in
products, processes, technology and
organizational functions such as design,
logistics and marketing have become key drivers
in delivering competitiveness, for the MSMEs.
Globalization has resulted in some serious
challenges on the MSME

Financial Problems
In India, finance has always been a
major problem for the small and
medium industries. The MSMEs
mostly depend on internal sources of
finance such as, personal savings, loan
from relatives, and loan from local
money lenders, than that of
institutional financing by banks and
other financing institutions.

Vol -1 No. 3 PP 06-13
Page | 10

Flow of credit from commercial banks to MSME sectors
Year Net Bank
credit
(In crores)
Annual
Growth
(percent)
Credit to
MSME
(In crores)
Annual Growth
(percent)
MSME as
percentage of
Net Bank
Credit
1994-1995 192424 ----- 29175 ----- 15.17
1995-1996 228198 18.75 34246 17.12 14.98
1996-1997 245999 17.89 38196 11.40 15.52
1997-1998 297265 21.20 45771 19.60 15.40
1998-1999 339477 14.14 51679 12.66 15.22
1999-2000 398205 17.40 57035 10.46 14.31
2000-2001 467206 17.33 60141 5.43 12.86
2001-2002 535063 14.56 67107 11.65 12.53
2002-2003 663855 25.04 64707 (-) 3.60 09.67
2003-2004 763855 14.20 71209 10.04 09.32
2004-2005 971809 27.22 83498 16.71 08.55
2005-2006 1350467 38.96 101285 21.30 07.5
2006-2007 1768376 30.95 127323 25.71 07.2
2007-2008 1840853 04.09 213539 67.72 11.6
2008-2009 2266611 23.13 256127 19.9 11.3
2009-2010
(provisional)
2716507 19.85 364012 42.1 13.4
Source: Annual Report 2010-11 Govt. of India, Ministry of Micro, Small and Medium Enterprises

Lack of Proper Infrastructure:
This includes good means of transport,
adequate electricity, and proper
location for setup of MSME. All these
factors help in reduce cost of
procurement of resources and thus
lowering the production cost for the
SMEs.

Knowledge of Prime Technology :
This is the prime component in
competing in domestic markets as well
as the international market. Though
Indian government has provided
technology up gradation fund to help
the MSMEs , it is imperative for
MSMEs to adopt information and
communication technology
applications due to lack of IT Support
which is the biggest hurdle for the
MSMEs in upgrading themselves to
compete with the global and domestic
markets players. It is expensive affair
and MSMEs are unaware of the latest
e is
also shortage of skilled IT and
management personnel who can help
the MSMEs to overcome the problems.

Access to Markets:
Due to limited budget MSMEs are
facing a serious challenge in creating
market access through marketing and
promotional activities. But, Internet
has in fact rendered a positive role and
impact on Indian MSMEs as it has
opened new ventures and expanded the
horizons for MSMEs. Online business
to business (B2B) is providing a viable
solution to problem of creating of
abundant market access and promote
instant access to global markets, market
and industry knowledge in terms of the
kind of products and services in
demand.

Lack of knowledge of Foreign
Markets
As world is a global market MSMEs
need to compete national and
internationally , MSMEs have in fact
helped to earn certain foreign exchange
via exports and for that they have to
take proactive view on the prevailing
opportunities and demand in
international market. Lack of
knowledge about foreign markets,
business practices, competition, ways
to locate foreign opportunities and
generate sales, etc.

Vol -1 No. 3 PP 06-13
Page | 11

Competition
MSMEs are weak due to limited
availability of finance, human
resources, knowledge about
competitive prices, tough competition
in export market, hamper in the
collection of adequate information,
etc.

Delayed payments
The small firms find it difficult to
recover their dues from the large firms
and even from Government
departments due to complex payment
procedure and corruption. Due to lack
of funds, they cannot employ credit
collection machineries (like factoring
services). The large firms force them to
offer long credit period and even pay
advance to ensure timely supply of
materials.

Mindset Problems
The mindset of the many MSME
entrepreneurs has not yet changed.
They still expect protection policies
and preferential treatment for the
MSMEs. Fortunately, this tendency is
low in the new generation
entrepreneurs. Workshops, success
story based approach are helping to
reduce this expectations from the
government.

Outflow of Wealth
Globalization process seems to favour
the developed countries and the
multinationals more than that of
developing countries and the MSMEs.
The MNCs use domestic wealth,
infrastructure, and local unskilled
workers at a lower cost and repatriate
huge profits to their own countries.

INITIATIVES TAKEN BY INDIAN
GOVERNMENT TO PROMOTE
MSMEs IN INDIA
Government has taken up one of the prominent
step in setting up of MSME Act 2006.As a
result of the globalization and liberalization of
the economy, the units in the sector were
increasingly called upon to face new and bigger
challenges not only from MNCs but also from
bigger domestic players. Recognizing the
dynamics of the new environment in which
they were operating, MSME are now focusing
on providing support in the fields of skill
development, credit, marketing, technology
and infrastructure. The emerging global trends
and national developments have transformed
the role of the organization into that of catalyst
of growth of MSMEs in the country.

The Ministry of Micro, Small and
Medium Enterprises (MSME) is
operating a Scheme namely Credit
Linked Capital Subsidy Scheme
(CLCSS) for Technology Up gradation
of Micro and Small Enterprises. The
Scheme aims at facilitating Technology
Up-gradation of Micro and Small
Enterprises. The revised scheme aims
at facilitating Technology Up
gradation of Micro Small and Medium
Enterprises by providing 15% Capital
Subsidy (limited to maximum 15.00
lakhs) for purchase of Plant &
Machinery.
Credit Guarantee Fund Scheme was
setup for Micro Small and Medium
Enterprises with the objective of
making available credit to MSMEs.
Loans up to Rs. 100 lakhs without
Collateral/third party guarantees were
provided to SMEs. The scheme is
being operated by the Credit
Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE) set up
jointly by the Government of India
and SIDBI.
The Micro Small and Medium
Enterprises Cluster Development
Programme (MSE-CDP) is being
implemented for holistic and
integrated development of micro and
small enterprises in clusters through
Soft Interventions (such as diagnostic
study, capacity building, market
development, export promotion, skill
development, technology up
gradation, organizing workshops,
seminars, training, study visits,
exposure visits, etc.), Hard
Interventions (setting up of Common
Facility Centers) and Infrastructure up
graduation rate/upgrade infrastructural
facilities in the new/existing industrial
areas/ clusters of MSEs).

Vol -1 No. 3 PP 06-13
Page | 12

SUPPORTING AGENCIES OF
MSMEs
Some of the important organizations that are
associated with SMEs in India are:
National Small Industries
Corporation Ltd. (NSIC)
Small Industries Development Bank
of India (SIDBI)
Small Scale Industries Board (SSIB)
Small Entrepreneurs Promotion and
Training Institute (SEPTI)
Small Industries Development
Organization (SIDO)
Confederation of Indian Industry
(CII)
Consortium of Women Entrepreneurs
of India (CWEI)
Indian Council of Small Industries
(ICSI)
Indian Institute of Entrepreneurship
(IIE)
Laghu Udyog Bharti (LUB)
Associated Chamber of Commerce
and Industry of India (ASSOCHAM)
National Institute of Small-Industry
Extension Training (NISIET)
National Institute for
Entrepreneurship and Small Business
Development (NIESBUD)
PHD Chamber of Commerce and
Industry (PHDCCI)
Federation of Indian Chamber of
Commerce and Industry (FICCI)
Federation of Indian Exporters
Organization (FIEO)
Federation of Associations of Small
Industries of India (FASII)
World Association for Small and
Medium Enterprises (WASME)

CONCLUSION
The role of MSMEs in the industrial sector is
growing rapidly but at the same time they are
facing a tough situation due to extreme
competition from the MNCs and large
industries due to globalization. Though
globalization has increased competitiveness
towards MSMEs, they still not adequately
prepared to compete with the global players.
The Indian market is growing and the Indian
industry is making rapid progress in various
Industries like textile and garments,
manufacturing, food processing, retail,
precision engineering, information technology,
pharmaceuticals, agro and service sectors.
Under the changing economic scenario the
MSMEs have both the opportunities and
challenges before them. The support given by
the national and the state governments to the
MSMEs is not adequate enough to solve their
problems. However for the sector to fully utilize
its potential, it is essential that the
entrepreneurs along with the government
support should themselves take necessary steps
for further development. It is quite evident that,
nurturing this sector is essential for the
economic well-being of the nation. The
MSMEs have to take steps to convert the threats
of globalization into opportunities through
increased productivity, product diversification,
supply chain management, Research and
development activities etc., and overcome the
challenges.

REFERENCES
[1] Annual report of Ministry of Micro, Small
and Medium Enterprise-[MSME] of
India, (2010-11), Introduction:
Background of MSMEs, Development
Commissioner (MSME), Government of
India.
[2] Annual report of MSME of India, (2010-
11), Growth and performance of MSMEs
and 4th Census of MSMEs, Development
Commissioner (MSME), Government of
India
[3]
Business Environments: What These
n
of Reforms: Keshab Das.
[4] Chandra, S., (2004), Small Industries
Development Organization (SIDO) in
Global perspective, Laghu Udyog
Samachar: Journal of Small Scale
Industries
[5] Development Commissioner of MSME
(2001), MSMEs in India: Performance,
Ministry of MSME, Government of India
[6] Development Commissioner of MSME.,
(2009), Micro, Small and Medium
Enterprises in India: An Overview,
Ministry of MSME, Government of
India.
[7] Government of India: MSME Annual
Report 2011-2012
[8] Ghatak, S., (2009), Micro, Small and
Medium Enterprises (MSMEs) in India:
An Appraisal

Vol -1 No. 3 PP 06-13
Page | 13

[9] Rai, D., (2009), Development Policies for
Micro, Small and Medium Enterprises
(MSMES) in India, Laghu Udyog
Samachar: Journal of Small Scale
Industries
[10] Sonia and Kansai Rajeev (2009),
Scale Industries India , PCMA Journal of
Bussiness, Vol. 1, No. 2 (June, 2009)
[11] Small medium business development
chamber of India
[12] S -Scale
Industry Development for Export

[13]
imes
News Bureau
[14] Small medium business development
chamber of India , available at
http://www.smechamberofindia.com/Abo
ut_MSMEs.aspx
[15] Thiripurasundari, K and V. Gurumurthy
Industries in the Era of Globalization
Globalization: Challenges and

Vol -1 No. 3 PP 14-19
Page | 14

MICRO-FINANCE AND ITS ROLE IN WOMEN
EMPOWERMENT-AN OVERVIEW

Shailaja Kheni
Dr S H Honnalli
ABSTRACT

Empowerment implies expansion of assets and capabilities of people to influence control and hold
accountable institution that affects their lives. Empowerment is the process of enabling or authorizing
an individual to think, behaves, take action and control work in an autonomous way. It is the state of
feelings of self-
(Physical, Human, Intellectual and Financial) and over ideology (Belief, values and attitudes)

Empowerment can be viewed as a means of creating a social environment in which one can take decisions
and make choice either individually or collectively for social transformation. It strength innate ability by
way of acquiring knowledge power and experience.

Empowerment is a multi-dimensional social process that helps people gain control over their own lives
communities and in their society, by acting on issues that they define as important. Empowerment
occurs within sociological psychological economic spheres and at various levels, such as individual, group
and community & also challenges our assumptions about status quo, asymmetrical power relationship
and social dynamics. Empowering women puts the spotlight on education and employment which are
an essential element to sustainable development.

women workers in unorganized sectors from bad to worse as most of the women who were engaged in
various self-employment activities have lost their livelihood. Despite in tremendous contribution of
women to the agriculture sector, their work is considered just an extension of household domain and
remains non-monetized.

Under the trickle-down theory in the planning process it was expected that women will equally benefit
along with men. This has been belied by actual development. The ninth plan document recognizes that
inspite of development measures and constitutional legal guarantees- women have lagged behind in
almost all sectors.

Therefore microfinance is emerging as a powerful instrument for poverty alleviation in the new
economy. In India, Microfinance scene is dominated by Self Help Group (SHGs)-Bank Linkage
Programme as a cost effectivemechanism for providing financial service
has been successful not only in meeting financial needs of the rural poor women but also strengthen
collective self-help capacities of the poor ,leading to their empowerment. Rapid progress in SHG
formation has now turned into an empowerment movement among women across the country.
self-
confidence, better status and role in household etc. Micro finance is necessary to overcome exploitation,
create confidence for economic self-reliance of the rural poor, particularly among rural women who are
mostly invisible in the social structure.

KEYWORDS: Micro Finance, Woman, Indian economy, Empowerment.

Micro finance for the poor and women has
received extensive recognition as a strategy for
empowerment. There are good reasons to target
women. Gender equality turns out to be good
for everybody. The World Bank reports that
societies that discriminate on the basis of gender
have greater poverty, slower economic growth,
weaker governance, and a lower standard of
living. Women are poorer and more
Development Report, 1995 found that 70% of
the 1.3 billion people living on less than $1 a
day are women. Studies in Latin America and
elsewhere show that men typically contribute
50-68% of their salaries to the collective

Vol -1 No. 3 PP 14-19
Page | 15

contribute decisively to the well-being of their
multiplier effect. Again, every micro finance
institution has stories of women who not only
are better off economically as a result of access
to financial services, but who are empowered as
well. Simply getting cash into the hands of
women (by way of working capital) can lead to
increased self-esteem, control and
empowerment by helping them achieve greater
economic independence and security, which in
turn gives them the chance to contribute
financially to their households and
communities.

While many micro finance institutions seek to
empower women as an implicit or explicit goal,
others believe they cannot afford to focus on
empowerment because it is incompatible with
financial sustainability or because it detracts
from the core business of providing financial
services. Yet, various studies have shown ample
evidence of efficient, sustainable micro finance
institutions whose programmes are
intentionally empowering. It is worth
mentioning some of the institutions that are
both focused on empowerment and are
financially self-sufficient, such as Working
organizes women to achieve better wages and
working conditions;.

PROBLEMS AND CHALLENGES
Surveys have shown that many elements
contribute to make it more Difficult for women
empowerment through micro businesses. These
elements are:
Lack of knowledge of the market and
potential profitability, thus making the
choice of business difficult.
Inadequate book-keeping.
Employment of too many relatives
which increases social pressure to
share benefits.
Setting prices arbitrarily.
Lack of capital.
High interest rates.
Inventory and inflation accounting is
never undertaken.
Credit policies that can gradually ruin
their business (many customers cannot
pay cash; on the other hand, suppliers
are very harsh towards women).

Other shortcomings includes,
1. Burden of meeting: Time consuming
meetings, in particular in programmes
based on group lending, and time
consuming income generating
activities without reduction of
traditional responsibilities increase

2. New Pressures: By using social capital,
in-group lending/group collateral
programmes, additional stresses and
pressures are introduced, which might
increase vulnerability and reflect
disempowerment.
3. Reinforcement of traditional gender
roles: lack of economic empowerment:
Micro finance assists women to
perform traditional roles better and
women thus remain trapped in low
productivity sectors, not moving from
the group of survival enterprises to
micro-enterprises. There are evidence
of men withdrawing their
contributions to certain types of
household expenditures.

CHALLENGING ECONOMIC
EMPOWERMENT
However impact on incomes is widely variable.
Studies which consider income levels find that
for the majority of borrowers income increases
are small, and in some cases negative. All the
evidence suggests that most women invest in
existing activities which are low profit and
many programmes and contexts it is only in a
minority of cases that women can develop
lucrative activities of their own through credit
and savings alone.

and their ability to increase incomes are
seriously constrained by gender inequalities in
access to other resources for investment,
responsibility for household subsistence
expenditure, lack of time because of unpaid
domestic work and low levels of mobility,
constraints on sexuality and sexual violence
which limit access to markets in many cultures.
These gender constraints are in addition to
market constraints on expansion of the informal
sector and resourceand skill constraints on the

Vol -1 No. 3 PP 14-19
Page | 16

ability of poor men as well as women to move
up from survival activities to expanding
businesses. There are signs, particularly in some
urban markets like Harare and Lusaka that the
rapid expansion of micro-finance programmes
may be contributing to market saturation in

CHALLENGING WELL BEING AND
INTRA HOUSEHOLD RELATION
There have undoubtedly been women whose
status in the household has improved,
particularly where they havebecome successful
entrepreneurs. Even where income impacts
have been small, or men have used the loan, the
fact that micro-finance programmes have
thought women worth targeting and women
bring an asset into the household may give some
women more negotiating power. Savings
provide women with a means of building up an
asset base. Women themselves also often value
the opportunity to be seen to be making a
greater contribution to household well-being
giving them greater confidence and sense of
self-worth.

income going into households does not ensure
that women necessarily benefit or that there is
any challenge to gender inequalities within the
replicate rather than counter gender inequalities
and continue to disadvantage girls. Without
substitute care for small children, the elderly
and disabled, and provision of services to reduce
domestic work many programmes reported
children and the elderly. Daughters in
particular may be withdrawn from school to
assist their mothers.

CHALLENGING SOCIAL AND
POLITICAL EMPOWERMENT
There have been positive changes in household
productive role, as well as changes at the
has been very circumscribed and women
previously had little opportunity to meet
women outside their immediate family there
have sometimes been significant changes. It is
likely that changes at the individual, household
and community levels are interlinked and that
individual women who gain respect in their
households then act as role models for others
leading to a wider process of change in
community perceptions and male willingness to
accept change.

Micro-finance has also been strategically used
by some NGOs as an entry point for wider
social and political mobilization of women
around gender issues. For example SEWA in
India, CODEC in Bangladesh and CIPCRE in
Cameroon, indicate the potential of micro-
finance to form a basis for organization against
other issues like domestic violence, male alcohol
abuse and dowry. However there is no
necessary link between
economic empowerment and/or participation
in micro-finance groups and social and political
empowerment. These changes are not an
automatic consequence of microfinance per se.
role has also often had it costs.

In most programmes there is little attempt to
link micro-finance with wider social and
political activity. In the absence of specific
measures to encourage this there is little
evidence of any significant contribution of
micro-finance. Micro-finance groups may put
severe strains on women's existing networks if
repayment becomes a problem). There is
evidence to the contrary that micro-finance and
income-earning may take women away from
other social and political activities. The
evidence therefore indicates that contributions
of micro-
empowerment cannot be assumed and current
complacency in this regard is misplaced. In
many cases contextual constraints at all levels
have prevented women from accessing
programmes, increasing or controlling incomes
or challenging subordination. Where women
are not able to significantly increase incomes
under their control or negotiate changes in
intra-household and community gender
inequalities, women may become dependent on
loans to continue in very low-paid occupations
with heavier workloads and enjoying little
benefit.

For some women micro-finance has been
positively disempowering, as indicated by some
of the cases shown above which are far from
isolated examples:

Credit (i.e. debt) may lead to severe
impoverishment, abandonment and put serious
strains on networks with other women.

Vol -1 No. 3 PP 14-19
Page | 17

Pressure to save may mean women forgoing
their own necessary consumption.

The contribution of micro-finance alone
appears to be most limited for the poorest and
most disadvantaged women.

All the evidence suggests the poorest women are
the most likely to be explicitly excluded by
programmes and also peer groups where
repayment is the prime consideration and/or
where the main emphasis of programmes is on
existing micro-entrepreneurs. It also suggests
that even where they get access to credit they are
particularly vulnerable to falling further into
debt.

FACTS & FINDINGS
A survey of 60 micro finance institutions by
Cheston and Kuhn found strong evidence that
micro finance institutions contribute to
finding was increased self-confidence and
increase self-
increased participation in decision-making.
for example,
showed 68% of women experienced an increase
in their decision making role in the areas of
and selling property, and sending their children
to school. World Education also found that the
combination of education and credit put
women in stronger position to ensure more
equal access for female children to food,
schooling and medical care. Other studies also
showed increased ability to make purchasing
choices, manage household funds, and manage
enterprise funds.

Women clients have also experienced improved
status and gender relations in the home.
earn greater respect from their husbands and
and avoid family quarrels over money. The
study also found increased respect from and
better relationship within extended family and
in-laws. Several studies show that women
received more respect from their communities
than they did before joining a micro finance
programme. They also show women taking
greater roles in giving advice within the
community, organizing for social chance, and
participating in community meeting in part
because they are now able to contribute
financially to community needs and activities.
A number of programmes also found increased
political participation, including involvement
in civic action and women clients being elected
to office.

There are also some negative impacts and
limitations to empowerment. A number of
workloads.
As they expand their businesses and participate
in micro finance meeting. Some women have
reported ill health and exhaustion. However,
the majority of women who experienced
increased workloads were happy to make that
choice and felt that the benefits out-weighed the
costs of participation.

There is also the issue of loans pass-through, in
which women receive a loan and hand it over to
their husband or another male in the
household.

Besides the above, there are other limitation
including limits to the level and kinds of change
-making
power limited to making small purchases or
withdrawing their support from the household,
and women hiding their savings or even their
businesses from their husbands.

ROLE OF MICROFINANCE
For micro finance programme to be cost-
effectivein bringing about the empowerment of
women, it would require
1. Providing business training,
2.
education and literacy,
3. Providing guidance in balancing family
and work responsibilities,
4. Providing a forum for dialogue on
social and political issues, such as,
problems,
5. Giving women experience in decision
ownership, control and participatory
governance in their micro finance
programmes.

CONCLUSIONS AND
SUGGESTIONS

Numerous traditional and informal system of
credit that were already in existence before
micro finance came into vogue. Viability of

Vol -1 No. 3 PP 14-19
Page | 18

micro finance needs to be understood from a
dimension that is far broader- in looking at its
long-term aspects too .very little attention has
been given to empowerment questions or ways
in which both empowerment and sustainability
aims may be accommodated. Failure to take
into account impact on income also has
potentially adverse implications for both
repayment and outreach, and hence also for
financial sustainability.

A conclusion that emerges from this account is
that micro finance can contribute to solving the
problems of inadequate housing and urban
services as an integral part of poverty alleviation
programmes. The challenge lies in finding the
level of flexibility in the credit instrument that
could make it match the multiple credit
requirements of the low income borrower
without imposing unbearably high cost of
monitoring its end use upon the lenders. A
promising solution is to provide multipurpose
loan or composite credit for income generation,
housing improvement and consumption
support. Consumption loan is found to be
especially important during the gestation period
between commencing a new economic activity
and deriving positive income. Careful research
on demand for financing and savings behavior
of the potential borrowers and their
participation in determing the mix of multi-
purpose loans are essential in making the
concept work.

The organizations involved in micro credit
initiatives should take account of the fact that:
Credit is important for development
but cannot by itself enable very poor
women to overcome their poverty.
Making credit available to women does
not automatically mean they have
control over its use and over any
income they might generate from
micro enterprises.
In situations of chronic poverty it is
more important to provide saving
services than to offer credit.

India is the country where a collaborative model
organizations is furthest advanced. It therefore
serves as a good starting point to look at what
to micro-
and how different institutions can work
together.

It is clear that gender strategies in micro finance
access to savings and credit and organizing self-
help groups to look strategically at how
programmes can actively promote gender
Moreover the focus should be on developing a
diversified micro finance sector where different
type of organizations, NGO, MFIs and formal
sector banks all should have gender policies
adapted to the needs of their particular target
groups/institutional roles and capacities and
collaborate and work together to make a
significant contribution to gender equality and
pro-poor development.

Micro finance programmes, thus, has been very
successful in reaching women. This gives micro
finance institution an extra-ordinary
opportunity to act intentionally to empower
poor women and to minimize the potentially
negative impacts some women experienced.

OPPORTUNITY - THE ROAD
AHEAD
There are still large sections of the population
without access to financial services. A
conservative estimate for example suggests that
just 20% of low-income people have access to
them. Thus, there is an urgent need to widen
the scope, scale and outreach of financial
services to reach the vast un-reached
population. In this context may we may quote
from the recent Annual Policy Statement of the
Governor RBI. Drawing attention to the
expansion, greater competition and
diversification of ownership of banks leading to
enhanced efficiency and systemic resilience in
the banking sector, the Governor has said that
concerns in regard to the banking practices that
tend to exclude rather than attract vast sections
of population, in particular pensioners, self-
employed and those employed in un organized
sector. While commercial considerations are no
doubt important, the banks have been bestowed
with several privileges, especially of seeking
public deposits on a highly leveraged basis, and
consequently they should beobliged to provide
banking services to all segments of the
that against this background, the RBI will

Vol -1 No. 3 PP 14-19
Page | 19

implement policies to encourage banks which
provide extensive services while dis
incentivizing those which are not responsive to
the banking needs of the community, including
the underprivileged. Further, the nature, scope
and cost of services will be monitored to assess
whether there is any denial, implicit or explicit,
of basic banking services to the common
person. Thus have advised banks to review their
existing practices to align them with the
objective of financial inclusion.

Ultimately the key players are banks, banks as
partners in the linkage programme and
emerging MFIs. Banks through their rural
branches have played and continue to play an
important role in providing financial services to
women on a stand-alone basis. Banks need to
introspect on the quality and coverage of these
portfolios. Further as key stakeholders in the
Bank-SHG linkage programme, they, together
with other partners need to take forward the
good work they have been doing. The SHG
Bank Linkage Programme has done well, has
is on a high growth path. However, the
programme is confronted with many challenges
and these needs to be addressed through
appropriately structured policies and strategies.
In so far as MFIs are concerned it is recognized
that they hold significant potential. However,
MFIs need to be challenged to make an
with cost, sustainability and efficiency of
operations. Finally let all deliberate the issues
involved and come up with appropriate
recommendations for policy formulation. We
are living through challenging and upbeat
times. Yet anyone who has worked in the field
working in this sector. Thus hope for the best
with the entrepreneurial spirit to be ignited
through the help of microfinance in India

REFERENCES
TEXTBOOKS
[1] Microfinance redefining the future by V S
Somanath
[2]
srinivas
[3] Fisher, Thomas and M.S. Sriram ed.,
2002, Beyond Micro-credit: Putting
Development Back into Microfinance,
New Delhi: Vistaar Publications; Oxford:
Oxfam.
[4]
Self Help Groups under the SHG Bank
presented at the Seminar on SHG-bank
Linkage Programme at New Delhi,
November 25-26, 2002.
[5] Mayoux, L. 1998a. Women's
Empowerment and Micro-finance
programmes : Approaches, Evidence and
Ways Forward. The Open University
Working Paper No 41.

WEBSITES
[1] www.chronicpoverty.org
[2] www.microfinancegateway.org
[3] www.oecd.org
[4] www.planningcommission.nic.in
[5] www.researchersworld.com
[6] www.careindia.org

Vol -1 No. 3 PP 20-28
Page | 20

FUTURE OF GREEN CARS IN INDIA

Kavita Sagar
ABSTRACT

The study explored the people perceptions about the green cars and its future in India. We all are aware
the conditions of the pollution and its hazards to health of the people. The study also focus on the urban
transport along with a sustainable path in cities is the foremost need of ours. Local pollution and green
house gas (GHG) emissions are of the global issues. Thus, the introduction of green transport is current
concern. Presently urban transport situation in India is quite unsustainable. The usage of cars and two
wheelers are rising as public transport an in adequate, while walking and cycling are becoming less
popular.

Air pollution, especially from road transport vehicles are fast turning into the major issues of urban air
quality, especially in the developed and developing countries. Random and purposive sampling
techniques were used to select sample. The sample was consisted 45 Managers of the three cars
manufacturing companies (MARUTI SUZUKI INDIA LIMITED, HYUNDAI MOTOR INDIA
LIMITED, MAHINDRA AND MAHINDRA LIMITED). Qualitativeand quantitative analysis was
used for data analysis. The responses were suitable coded and tabulated and the frequency of the
responses obtained. Questionnaire and interview schedule was constructed to conduct the study.

Ministry of New Renewable Energy was also chosen for data collection as per to know the schemes and
various providing from the government of India and to understand their initiatives to explore green
pollution becoming the wider problem in India.

The study revealed that government of India is actively taking part in generating the knowledge and
awareness in the society. Government of India (MNRE) is also providing the subsidies to the companies,
which are taking initiative, make green vehicles. These manufacturing companies are also taking
initiating to spreading awareness about sustainable transport/green transport. The study explored the
the public awareness about these cars. The findings also revealed that plug-in cars are not only solves the
problem of air pollution but also save money. The cost found as 40 paisa per kilometre as compare to
convention car price which are 5 rupees per kilometre. Due to not working efficiently on longer routes,
these cars can only use as secondary source of travelling in the house. The full battery charge goes to 80
kilometres at one time.

KEYWORDS: Green cars, Fuel Efficiency, Pollution.

INTRODUCTION
Sustainable development (SD) is a pattern of
growth in which resource use aims to meet
human needs while preserving the environment
so that these needs can be met not only in the
present, but also for generations to come
(sometimes taught as ELF-Environment, Local
people, Future). The term was used by the
Brundtland Commission which coined what
has become the most often-quoted definition of
sustainable development as development that
"meets the needs of the present without
compromising the ability of future generations
to meet their own needs."

Sustainable development ties together concern
for the carrying capacity of natural systems with
the social challenges facing humanity. As early
describe an economy "in equilibrium with basic
ecological support systems." Ecologists have
pointed to The Limits to Growth, and
presented the alternative of a "steady state
economy" in order to address environmental
concerns.

The history of the concept of sustainability is
however much older. Already in 400 BCE,
Aristotle referred to a similar Greek concept in
talking about household economics. This Greek
household concept differed from modern ones
in that the household had to be self-sustaining
at least to a certain extent and could not just be
consumption oriented.

Vol -1 No. 3 PP 20-28
Page | 21

The first use of the term "sustainable" in the
modern sense was by the Club of Rome in
March 1972 in its epoch-making report on the
scientists led by Dennis and Donella Meadows
of the Massachusetts Institute of Technology.
Describing the desirable "state of global
equilibrium", the authors used the word
"sustainable": "We are searching for a model
output that represents a world system that is:
1. Sustainable without sudden and
uncontrolled collapse;
2. Capable of satisfying the basic
materials requirement for entire
peoples.

MOST SUSTAINABLE COUNTRIES
The recently released Environmental
Performance Index 2010 is a comprehensive
sustainability rating system where 163 countries
were judged based on certain sustainability
performance indicators. Each country is
discussed in brief to highlight some of the
factors that make them the most sustainable
countries in the world.

The most sustainable countries in the world
are Iceland, Switzerland, Costa Rica, Sweden,
Norway, Mauritius, France, Austria, Cuba, and
Columbia.
Source:
Yale and Columbia University

INDIAN SCENARIO
has raised the prospect of eliminating extensive
poverty within a generation. But this growth
has been clouded by a degrading physical
environment and the growing scarcity of
natural resources that are essential for sustaining
further growth and eliminating poverty. It is no
coincidence that the poorest areas of the
country are also the most environmentally-
stressed regions, with eroded soils, polluted
waterways, and degraded forests.
Simultaneously, rapid growth has unleashed
greater public awareness and an unprecedented
demand for the sound management of natural
resources including air, water, forests, and
biodiversity. Environmental sustainability is
rapidly emerging as the next major
development and policy challenge for the
country, and will be central to the 12th Five
Year Plan which is currently under preparation.

INDIA
population is going to peak at around 1.3
billion people. This may be somewhat
underestimating reality, but everything that
follows can be proportionately increased based
on higher population projections.

Travel in the city has become more risky with
accident rates having gone up from 1.6 lakh in
1981 to over 3.9 lakh in 2001. The number of
persons killed in road accidents has also gone up
from 28,400 to over 80,000 during the same
period. This again has tended to impact the
poor more severely as many of those killed or
injured tend to be cyclists, pedestrians or
pavement dwellers. Priority to the use of public
transport.

It is well known that public transport occupies
less road space and causes less pollution per
passenger-km than personal vehicles. As such,
public transport is a more sustainable form of
transport. Therefore, the central government
would promote investments in public transport
as well as measures that make its use more
attractive than in the past. Towards this end,
the Central government would encourage all
State capitals as well as other cities with a
population of more than one million to start
planning for high capacity public transport
systems. In doing so, they should look at various
proven technologies around the world,
including the use of available water ways; they
should adopt a technology that would best suit
the city requirements in the next 30 years.
Comprehensive city wide plans should be
drawn up comprising trunk and feeder
corridors as well as good integration with
personal modes, suburban traffic, etc. High cost
trunk route systems should, through
appropriate hub-spoke arrangements be
integrated with feeder systems that enable
higher ridership on such trunk systems.

SUSTAINABLE TRANSPORT
Sustainable transport (or green transport) refers
to any means of transport with low impact on
the environment, and includes walking and
cycling, green vehicles, Car Sharing, and
building or protecting urban transport systems
that are fuel-efficient, space-saving and promote
healthy lifestyles.

Vol -1 No. 3 PP 20-28
Page | 22

Sustainable transport systems make a positive
contribution to the environmental, social and
economic sustainability of the communities
they serve. Transport systems exist to provide
social and economic connections, and people
quickly take up the opportunities offered by
increased mobility. The advantages of increased
mobility need to be weighed against the
environmental, social and economic costs that
transport systems pose (Lee, 2008).

Transport systems havesignificant impacts on
the environment, accounting for between 20%
and 25% of world energy consumption and
carbon dioxide emissions. Greenhouse gas
emissions from transport are increasing at a
faster rate than any other energy using sector.
Road transport is also a major contributor to
local air pollution and smog.

The social costs of transport include road
crashes, air pollution, physical inactivity, time
taken away from the family while commuting
and vulnerability to fuel price increases. Many
of these negativeimpacts fall disproportionately
on those social groups who are also least likely
to own and drive cars.
The term sustainable transport came into use as
a logical follow-on from sustainable
development, and is used to describe modes of
transport, and systems of transport planning,
which are consistent with wider concerns of
sustainability. There are many definitions of the
sustainable transport, and of the related terms
sustainable transportation and sustainable
mobility. One such definition, from the
European Union Council of Ministers of
Transport, defines a sustainable transportation
system as one that:
Allows the basic access and
development needs of individuals,
companies and society to be met safely
and in a manner consistent with
human and ecosystem health, and
promotes equity within and between
successive generations.
Is Affordable, operates fairly and
efficiently, offers a choice of transport
mode, and supports a competitive
economy, as well as balanced regional
development.
Limits emissions and waste within the
renewable resources at or below their
rates of generation, and uses non-
renewable resources at or below the
rates of development of renewable
substitutes, while minimizing the
impact on the use of land and the
generation of noise.

HISTORY OF SUSTAINABLE
TRANSPORT
Most of the tools and concepts of sustainable
transport were developed before the phrase was
coined. Walking, the first mode of transport is
also the most sustainable. Public transport dates
back at least as far as the invention of the public
bus by Blaise Pascal in 1662. The first passenger
tram began operation in 1807 and the first
passenger rail service in 1825. Pedal bicycles
date from the 1860s. These were the only
personal transport choices available to most
people in Western countries prior to World
War II, and remain the only options for most
people in the developing world. Freight was
moved by human power, animal power or rail.

The post-war years brought increased wealth
and a demand for much greater mobility for
people and goods. The number of road vehicles
in Britain increased fivefold between 1950 and
1979, with similar trends in other Western
nations. Most affluent countries and cities
invested heavily in bigger and better-designed
roads and motorways, which were considered
essential to underpin growth and prosperity.
Transport planning became a branch of civil
engineering and sought to design sufficient road
capacity to provide for the projected level of
traffic growth at acceptable levels of traffic
congestion - a technique called "predict and
provide". Public investment in transit, walking
and cycling declined dramatically in the United
States, Great Britain and Australasia, although
this did not occur to the same extent in Canada
or mainland Europe.

Concerns about the sustainability of this
approach became widespread during the 1973
oil crisis and the 1979 energy crisis. The high
cost and limited availability of fuel led to a
resurgence of interest in alternatives to single
occupancy vehicle travel.

DISADVANTAGES OF PETROLEUM
TRANSPORT
Transport systems are major emitters
of greenhouse gases, responsible for
23% of world energy-related GHG

Vol -1 No. 3 PP 20-28
Page | 23

emissions in 2004, with about three
quarters coming from road vehicles.
Currently 95% of transport energy
comes from petroleum. Energy is
consumed in the manufacture as well as
the use of vehicles, and is embodied in
transport infrastructure including
roads, bridges and railways
(Heimanen, 2008).

GREEN VEHICLES
A green vehicle is a vehicle that uses
alternative fuel sources to run.
Green vehicles are intended to have less
environmental impact than equivalent standard
vehicles, although when the environmental
impact of a vehicle is assessed over the whole of
its life cycle this may not be the case. Electric
vehicle technology has the potential to reduce
transport CO2 emissions, depending on the
embodied energy of the vehicle and the source
of the electricity. Hybrid vehicles, which use an
internal combustion engine combined with an
electric engine to achieve better fuel efficiency
than a regular combustion engine, are already
common. Natural gas is also used as a transport
fuel. Bio fuels are a less common, and less
promising, technology; Brazil met 17% of its
transport fuel needs from bio ethanol in 2007,
but the OECD has warned that the success of
bio fuels in Brazil is due to specific local
circumstances; internationally, bio fuels are
forecast to have little or no impact on
greenhouse emissions, at significantly higher
cost than energy efficiency measures.

BENEFITS OF USING A GREEN
VEHICLE
There are many benefits of using a green
vehicle. Here are just a few:
Decreases greenhouse gases and other
air pollutants released into the
environment
Cheaper to run and maintain than
traditional cars

oil imports from other countries
Creates less smog in the air
Reduces the risk of such health
problems as heart disease and lung
cancer
Provides renewable energy sources for
electricity
Does not contribute to acid rain
Not as threatening to natural habitats
and wildlife
Reduces global warming
consumers contribute to the sustainability of
the environment. As more cars go green, society
will be able to maintain a healthy quality of life
that will have a positive impact on future
generations (Black, 2010).

GREEN CARS
fuel efficient and which have low CO2
emissions. Most modern cars are built to be
kinder to the environment. This is not just
about saving the environment but also about
reducing fuel costs.

http://www.governmentsurplusvehicles.com

HOW IS A GREEN CAR DIFFERENT
FROM A REGULAR CAR?
A regular car uses petroleum fuel to run a car.
Petroleum fuel is also known as a fossil fuel.
Fossil fuels are non-renewable energy sources
that release harmful greenhouse gases in the air.
A green car uses alternative fuel sources, such as
bio diesel fuel, solar energy or rechargeable
battery electricity, to run the car.

DIFFERENT TYPES OF GREEN
CARS
There are few popular types of green cars:
Hybrid Car Features a gas engine
with an electric motor.
Electric Car Uses an electric-
powered motor and a battery to
operate.
Hydrogen Car Burns hydrogen to
fuel the motor.

Vol -1 No. 3 PP 20-28
Page | 24

Bio diesel Car Uses biodegradable
bio diesel fuel to power the car.
Fuel Cell Car Generates electricity
by forming a chemical reaction
between hydrogen and oxygen.
Solar Cars A solar vehicle is an
electric vehicle powered by solar
electricity.
CNG Cars - (CNG vehicle) A natural
gas vehicle or NGV is an alternative
fuel vehicle that uses compressed
natural gas (CNG) or, less commonly,
liquefied natural gas (LNG) as a clean
alternative to other automobile fuels.
India 2030: Vision for an
Environmentally Sustainable Future:
This study deals with a broader debate
on the implications of rapid economic
growth on environmental
sustainability and the need to rethink
arrangements in light of promoting
long-term environmentally
sustainability. The primary objectives
of the study are to identify
environmental challenges,
opportunities and constraints to
growth that will emerge in India over
the next few decades and suggest policy
responses and develop strategies to
harmonize the twin objectives of
growth and environmental
sustainability in urban and ecologically
fragile hill areas.

SITUATION OF DELHI
Delhi has nearly 6.1 million vehicles, mostly
cars and two-wheelers. Delhi has taken action
in nearly all areas to control air pollution over
the past decade; 15-year-old commercial
vehicles are off the road and transit freight
traffic passing through Delhi is restricted.
Nearly 300,000 buses, three-wheelers and a
great number of taxis and private cars run on
CNG. Other steps include pollution checks,
public awareness, the useof catalytic converters
and phasing out of old vehicles. Last year, nearly
0.3 million vehicles were checked and most had
being augmented by the Metro and buses, while
NMT has been promoted by upgrading
pedestrian and bicycle paths. In the context of
the 2010 Commonwealth Games in Delhi,
infrastructure has been upgraded through the
construction of flyovers and bridges, road
widening, junction and corridor improvements,
street-scaping, installation of new street lights
and signage, and the construction of new
parking sites. This will provide long term
benefits to the city.

METHODOLOGY
insight idea of whether green cars have any
future in India or not, in terms of initiatives
taken from government and car manufactures
companies.

This chapter elaborates on the developmental
stages of the research. In order to facilitate the
discussion of the various aspects in the
systematic manner, the study has been discussed
in the following sections:

LOCALE OF THE STUDY
The present study was conducted in the cars
manufacturing companies. Total three
companies were selected for conducting the
study. First company selected was Maruti
Suzuki India Ltd. which is situated in
Delhi/NCR. The study was conducted in
various showrooms of Maruti Suzuki India Ltd.
Secondly I had chosen Hyundai Motor India
ltd. It is the 2nd largest automobile
manufacturer in India after Maruti Suzuki.
Hyundai Motor India Limited was formed in 6
May 1996 by the Hyundai Motor Company of
South Korea. Hyundai is reputed car
manufacture company in India Hyundai is
making cars for all the categories lower as well
as higher. Third company selected was
Mahindra & Mahindra Limited which is
situated in Delhi/NCR.

I have also visited MNRE the Ministry of New
and Renewable Energy (MNRE) is the nodal
Ministry of the Government of India for all
matters relating to new and renewable energy.
The broad aim of the Ministry is to develop and
deploy new and renewable energy for
supplementing the energy requirements of the
country.

SAMPLE
In order to make an in-depth study as well as to
have a wider coverage of the concerned interest
area, the sample size comprised of:
Top Level Managers-15
Middle Level Managers-15

Vol -1 No. 3 PP 20-28
Page | 25

Lower Level Managers-15

Study Technique: For the purpose of data
collection questionnaire-cum-interview
schedule were used. Also the case studies of the
3 companies were prepared.

A. Tools for Data Collection
Keeping the objectives of the study in mind an
interview schedule was prepared and a tool to
future prospect of green cars in India was
constructed. Descriptions of the methods are
follows:
Questionnaire : A set of fifteen open-
ended questions were made by the
researcher on various areas related to
the Future Prospect of Green Cars in
India. The main areas covered in the
tool included the meaning of green car,
green cars are fuel efficient or not,
producing cost of green cars, efforts by
companies, check public awareness,
types of green cars, green cars are
successful in rural & urban areas, green
cars are safe and secure. This interview
schedule was administered on 15
Upper Level Managers, 15 Middle
Level Managers and 15 Lower Level
Managers.( N=45)
Interview Schedule : Interview
schedule were used to gather the
information for the study. The
interview was conducted on the
managers. The interviews were used to
get a deep insight and valuable
information required.
Visits : Visits to various showrooms of
the car manufactures companies were
done to conduct interview and took
their perception.

B. Pre-Testing
A pre-testing of the tool was done to check the
efficiency of the questionnaire and to check if
all the objectives are covered in tool properly.

C. Data Collection
The data was gathered from the managers over
the nine to ten visits. These visits were made on
working days keeping mind their availability in
the office. The study was conducted in the
Delhi/NCR, first took their appointment and
fixed meeting with them.

D. Analysis and Interpretation
Qualitative and quantitativeanalysis was done
on the data generated. The themes that emerged
from the interview were used to construct the
framework for analysis. The responses were
suitable coded and tabulated and the frequency
of the responses obtained.

RESULTS AND DISCUSSION
MSIL has been the leader of the Indian car
market for over two and a half decades. The
company has two manufacturing facilities
located at Gurgaon and Manesar, India. Maruti
has now come up with lots of new cars in the
market which basically are known as green cars
like Maruti SX4 Hybrid car.

The Company believes that investment in
environment friendly technologies makes
sustainable business sense as it caters to the
needs of environment-conscious customers.
Maruti Suzuki strives to minimize the
environmental impact of its manufacturing
facilities, products and supply chain operations,
and explores all possible means for improving
its environmental performance.

Hyundai Motor India Limited (HMIL), its
wholly owned subsidiary in India, is the second
largest car manufacturer in India. HMC has
taken on numerous activities to increase
sustainable value from our business activities
since we declared our global environmental
management philosophy and policies in 2003. I
firmly believe that the new management
philosophy and vision will guide us to stronger
sustainable management .As an automobile
manufacturer; HMC is pursuing the
development of a wide range of green vehicles
from hybrid electric vehicles to hydrogen fuel
cell electric vehicles in order to realize safer and
greener mobility solutions.

M & M are committed to making a positive
impact across the entire product life cycle, from
manufacturing to disposal. During the
production process, we striveto create local jobs
and minimize environmental impact by
conserving raw materials and energy,
eliminating toxic raw materials, and reducing
the quantity and toxicity of all emissions and
wastes. Our products support entrepreneurship
and prosperity while minimizing negative
environmental impact and our services
incorporate socioeconomic development and
green goals.

Vol -1 No. 3 PP 20-28
Page | 26

Graph1. What Do You Understand by the

Understand the term Green Cars
Understand the Term Green Cars
Eco friendly 35 77.77778
fuel Efficient 40 88.88889
money saving 15 33.33333
Zero Carbon
Emission 45 100

The term Green car, most of the people (group
of managers) are aware about the concept of
green cars.Out of 45 people 88.88% of the
people say that green cars are eco-friendly in
terms of reduction of pollution and reducethe
carbon emission.77.77% people say green cars
are fuel efficient as in, an electric car is totally
fuel efficient apart from full charging it goes
80KM and it cost only 40 paisa/KM. These
77.77% peopleare related to the Mahindra &
Mahindra India Ltd because M & M company
is making REVAi( An Electric Car). 33.33%
people believe that green cars are Money Saving
cars because alternative fuels are cheaper than
fossils fuels (petrol/ Diesel). 100% of the people
say that green cars are Zero Carbon emission
cars.

Graph 2. Are the public aware about the
concept of Green Car
Public Aware about the Concept
Public Aware the Concept of
Green Cars
Yes 37 82.2222
No 8 17.7778

Maximum people are awareabout the concept
of the green cars. As per my study 82% of
people are totally aware about the concept of
green cars. One of the respondent in M & M
Company was telling that now a days green cars
are becoming popular because of its publicity
and subsidies given on these cars. Even the car
holder gets a unique identity to have this car.
Now public are aware about the concept of
people are now understanding the term climate
change and global warming and everybody
wants to participate to help to save the
environment. Most of the people are moving
towards the CNG cars, LPG cars because not
only that they are cheaper but also they may
somewhat save the environmental problems.
Now a days CNG & LPG cars are very famous
and we see lots of these cars on road.

Graph 3.What is Government doing about
bringing awareness of Green car?
Government Initiatives
Government Initiatives
Advertisement 42 93.33333
Campaign 35 77.77778
Better Schemes 43 95.55556
Provide Subsidies 45 100

India is a developing country. The Government
wants that people should be made aware of
Green cars so most of the people would buy the
green cars and the valuablecurrency which is
used for importing petrol or petroleum
products can be saved. 94% are made aware of
green cars through the advertisement on the
television. Most of the people say that
Government provides subsidies to the people
who are manufacturing the green cars.
Government is coming up with the new and
better schemes in the market like giving
maximum discounts to the people who are
buying these cars. Ministry of Natural and
Renewable Energy has started advertisement

Vol -1 No. 3 PP 20-28
Page | 27

and campaigns for making people aware about
green cars.

Graph 4. Is The Green Cars Fuel Efficient?
Green Cars are Fuel Efficient
Are Green cars Fuel Efficient
Yes 42 93.3333
No 3 6.66667

Yes, green cars are the fuel efficient cars. 93%
people believe green cars are the fuel efficient
cars. They not only save fuel but green cars are
also cheaper than petrol and diesel cars. As per
my study petrol cars gives an average of around
12-15km/ltr., diesel cars gives mileage of 15-
16km/ltr which the cost around 5Rs/km but
green car (electric Car Mahindra REVAi) costs
only 40 paisa/ km. A conventional car is not
only consuming more fuel but even it costs
more. Petrol car which is the conventional car
petrol is used which is the natural resourceand
which cause maximum pollution in the
environment.

Graph 4. Green cars are highly successful in
environmentally aware country. Will it be
successful in India where people are
increasingly becoming awareof environment
and pollution free country?
Green Cars successful in our country

Green Cars are Successful In
our Country
Yes 38 84.44444
No 2 4.444444
May Be 0 0
Can't Say 5 11.11111

the environment. People arenow aware of the
term of green car and know that it is important
for our future to save and conserve natural
resources for our future generation. They are
safe for our environment as green cars are zero
carbon emission vehicles. I found in my study
that it is going to be successful in our country
as per 31% people answered in affirmative.

CONCLUSION
According to the study most of the people
(group of managers) are aware about the
concept of green cars. People understand the
term green car and people feel that these cars are
eco-friendly and fuel efficient. Yes, green cars
are the fuel efficient cars. 93% people believe
that green cars are the fuel efficient cars. It not
only saves fuel even green cars are also cheaper
than petrol and diesel. A conventional car is not
only consuming more fuel even if it charges
more for maintenance. Peterol which we used
in the conventional car is a natural resource and
produce pollution to the environment.
the environment. Most of the people believed
that these cars will besuccessful in our country
because of the rigorous awareness campaign
towards its benefits. Public is now
understanding the term green car and how it is
important for our future to save and conserve
natural resources for our future generation. As
Green cars are safe for our environment because
they are zero carbon emission vehicles and thus
helping in reduction of pollution.

Electric vehicle produces zero carbon emission
since they are propelled by electric motors that
run on batteries charged at home, or special
electric vehicle charging stations. Car
manufactures are actively developing a new

Vol -1 No. 3 PP 20-28
Page | 28

generation of electric cars by using new
technologies. In my research I mostly focused
on electric cars becausetill so far only electric
cars runs on road as a green car. CNG & LPG
are also common in our country but CNG &
LPG are not completely solving the pollution
problem t. 100% people say electric vehicle are
totally safe for the people. As told by Mahindra
people so far there is no report of any accident
in their electric cars.

We will see more green cars on road in the
coming years. Delhi is the first metro city where
you can find these cars on a large scale. Green
cars are going to be highly successful in our
country especially in the metro cities as per the
initiatives of government and big and
continuous efforts by the car manufacturing
companies. Government of India (MNRE) also
providing subsidies on these cars and launching
lots of other schemes on these vehicles for the
better future of our country. Metro cities are
preferred for launching these cars, may be
because of the proper land planning, good
infrastructure and comparatively high literacy
rate. After Delhi, Bangalore is the next city
where you can find these cars on road on a large
number. On the third number where we can
find these cars is Mumbai. Mumbai is on the
population density and congested roads.

REFERENCES
[1] 2008 bus survey.
http://www.fuelcelltoday.com/media/pdf/
surveys/2008-Bus-Survey.pdf on
29.11.2009.
[2] 2009 Light duty vehicle survey.
http://www.fuelcelltoday.com/online/surv
ey?survey=2009-05/2009-Light-Duty-
Vehicle-Free on 29.11.2009.
[3] Akansu SO, Z Dulger, N Kahraman, TN
Veziroglu (2004). Internal combustion
engines fueled by natural gas hydrogen
Mixtures. International Journal of
Hydrogen Energy 29 1527 1539
[4] Climate Change 2007: Synthesis Report.
Intergovernmental Panel on Climate
Change.
[5] Das LM (2002). Hydrogen engine:
research and development (R&D) in
Indian Institute of Technology (IIT),
Delhi. Int. Journal of Hydrogen Energy
27, 953-965.
[6] Das LM 92002). Near term introduction
of hydrogen engines for automotive and
agricultural application. Int. Journal of
Hydrogen Energy 27, 479-487.
[7] Facts about hydrogen fuel cell vehicles:
progress, potential and why wemust move
ahead. www.fuelcells.org/info/facts.pdf
on13.9.2009
[8] http://hyfleetcute.com/data/HyFLEETC
UTE_Brochure_November09.pdf on
28.11.2009
[9] http://www.automotive-business
review.com/news/mahindra_releases_the_
hyalfa_090826 on 29.11.2009
[10] http://www.siamindia.com/scripts/emissio
n-standards.aspx on 5.9.2009
[11] MNRE (2009). Annual Report 2008-09 of
the Ministry of New and Renewable
Energy, Government of India, New Delhi.
[12] State of Environment Report 2009.
Ministry of Environment and Forests,
Government of India.

Vol -1 No. 3 PP 29-33
Page | 29

THE AGILE HEARTBEAT: DIFFERENT APPROACH TO
SOFTWARE TESTING

Pratima Mishra
Rohit Pandey
Sameer Asthana
ABSTRACT

Software testing becomes an important parameter for assuring quality of the software product. This
research describes about the new and efficient technique of testing the software. To be effective we have
to take the best of different approaches and apply to our projects base on our specific needs. Many
traditional software processes are top heavy with documentation and rigid control mechanisms making
it difficult applying them to different software projects. New families of processes, referred to as Agile
Processes, are making headway into the software industry. These processes focus on coderather than
documentation calling themselves agile because, unlike the traditional processes, they are adaptable, not
rigid. This research discusses several of these Agile Processes, the philosophy driving them and the
challenges faced when implementing them. I will look at different methodologies that promote agility.

KEYWORDS: Software Testing, Agile, Technique, Software Development.

INTRODUCTION
This research introduces and discusses Agile
Software Processes. The research begins by
taking a brief look at agile process philosophy is
explored followed by an overview of four of the
more widely used agile processes. Following
this, the challenges associated with
implementing agile processes are presented and
experience with agile processes is outlined. The
research concludes with a summary and the
agile processes cautioning that while valuable
they are not a panacea capable of solving all
problems associated with software design and
development.

software development methods based on
iterative and incremental development, where
requirements and solutions evolve through
collaboration between self-organizing, cross-
functional teams. It promotes adaptive
planning, evolutionary development and
delivery, a time-boxed iterative approach, and
encourages rapid and flexible response to
change. It is a conceptual framework that
promotes foreseen tight iterations throughout

A project management process that
encourages frequent inspection and
adaptation.
A leadership philosophy that
encourages team work, self-
organization and accountability.
A set of engineering best practices that
allow for rapid delivery of high-quality
software.
A business approach that aligns
development with customer needs and
company goals.
MYTH: No documentation
MYTH: Undisciplined
MYTH: Agile is a process

AGILE SOFTWARE DEVELOPMENT
MANIFESTO:
Individuals and interactions over
processes and tools
Working software over comprehensive
documentation
Customer collaboration over contract
negotiation
Responding to change over following a
plan

Some of the principles behind the Agile
Manifesto are:
Customer satisfaction by rapid,
continuous delivery of useful software
Working software is delivered
frequently (weeks rather than months)
Working software is the principal
measure of progress

Vol -1 No. 3 PP 29-33
Page | 30

Even late changes in requirements are
welcomed
Close, daily cooperation between
business people and developers
Face-to-face conversation is the best
form of communication
Projects are built around motivated
individuals, who should be trusted
Continuous attention to technical
excellence and good design
Simplicity
Self-organizing teams
Regular adaptation to changing
circumstances

AGILE PROCESSES
There are many variations of agile processes this
research provides an overview of four of the
most popular ones used today. This research
introduces Adaptive Software Development
(ASD), Extreme Programming (XP),
Crystal, and the Rational Unified Process
(RUP) to the reader.
Adaptive Software Development (ASD)
places its emphasis on applying ideas
originating in the world of complex adaptive
systems. ASD provides the fundamental base to
develop adaptive systems from which arise agile
and adaptive processes.
It is learned that at the core of ASD is the
premise that outcomes are naturally
unpredictable and, therefore, planning is a
paradox. It is not possible to plan successfully in
a fast moving and unpredictable business
environment. Adaptive development is essential
when you have developers, customer, vendors,
competitors and, stockholders all attempting to
interact with one another at such a pace that
linear cause and effect rules cannot assure
success. ASD replaces the evolutionary life cycle
model with the adaptive cycle model.
Adaptive Life Cycle
EXTREME PROGRAMMING
Extreme Programming (XP) is a high profile
agile process known to many advocates and
novices alike and is likely the most widely used.
There are four basic values supporting XP:
Communication Without
communications project schedules slip,
wants and needs are misinterpreted or
overlooked.
Feedback The need to check our
results is important. Without feedback,
a project will most likely fail. Feedback
tells how a project is doing while
providing direction for future
iterations.
Simplicity Do not add unnecessary
artifacts or activities to a project.
Eliminate everything not completely
justified.
Courage Putting faith in the people
over the process requires courage. It is
important to realize, however, that if
processes do become more important
than the people do, a project is headed
toward failure.

Vol -1 No. 3 PP 29-33
Page | 31

CRYSTAL METHODOLOGIES
The multiple processes offered by the Crystal
methodologies are adaptive and agile. They are
adaptive because they offer multiple solutions
for projects having different criteria. They are
agile because they deliver work products at the
completion of each project increment and are
able to apply lessons learned to the next
iteration. Selecting a Crystal process requires
that a project be matched to one of four
criticality levels.
Comfort
Discretionary money
Essential money
Life

Crystal Orange Increment: Agile Software Development Methods

RATIONAL UNIFIED PROCESS
The Rational Unified Process, (RUP), is a
generic process framework that uses a specific
methodology to accomplish the tasks associated
with it. The RUP uses the Unified Modelling
Language developing usecases for the software
system design.
RUP is tailored
culture and by project complexity making it
highly versatile. The coreattributes are applied
to four unique phases occurring over the
lifecycle of a RUP project.

Vol -1 No. 3 PP 29-33
Page | 32

Workflows of RUP Model

CHALLENGES THAT AGILE PRINCIPLES PLACE ON TRADITIONAL TESTING
Agile Principle Challenge
Frequent deliveries of valuable software Short time for testing in each cycle
Testing cannot exceed the deadline
Responding to change even late in the
Development
Testing cannot be based on completed
Specifications
Working software is the primary
measure of progress
Quality information is required early and
frequently throughout development
Evaluating achieved quality Confidence in quality through tracking
conformance to a set of good practices

QUALITY ASSURANCE IN AGILE
DEVELOPMENT
Plan-driven quality assurance does not work
in an agile context
There is no V-model and waterfall
The role of documentation and
specifications is secondary
The rhythm of development is fast and
tight
Roles and responsibilities are assigned
differently

Cornerstones of agile quality assurance
Constant and tight rhythm
Collaboration and communication
Rigorous low level (quality) practices
Test-Driven Software Engineering

ROLE OF A SOFTWARE TESTER IN
AN AGILE ENVIRONMENT
The role of a software tester in an agile
environment - as with any other environment -
is whatever it needs to be for that specific
project. Sometimes there'll be a lot of close-up
work with design as well testing (I personally
think of design as the testing that happens
before you start testing, because that is where a
lot of the potentially problematic issues get
sorted out), sometimes less so.

Regardless of how your particular projects and
workplace sorts out, there are a few things that
need to happen:
There needs to be something that
documents what was tested, how, and
why. This is not so much for record-
keeping purposes unless the industry
you are working with requires that, as
for future reference. It is not
uncommon for someone to refer to old
test documentation to sort out how a
particular feature works and what areas
of it are likely to be problematic
There needs to be at least some
coordination with the programmers so
you're not duplicating work. If there
are a lot of unit tests in place covering
the logic of the feature, the tester can
focus much more on external
validations. The idea is to work with
the other members of the team so that

Vol -1 No. 3 PP 29-33
Page | 33

your specialty, testing, supports theirs
and theirs supports yours (this being
the world of theory, such wonderful
things are quite feasible. In the world I
live in, or at least the place I work for,
things are still somewhat in flux).
There also needs to be a fair amount of
communication and coordination with
the product owner. All the different
roles in the team should be working
together, and the product owner is the
effective oracle on whether the feature
you're building is the right feature.

In my experience with an employer in transition
between waterfall and agile, I've found that I
wind up initiating a lot of the communication
and coordination. That may be an artifact of my
employer's environment, where there is no
Greenfields development and the application
codebase includes routines that go back over 20
years - as a tester, I've worked across a large
range of it, and tend to have a broader view of
what interacts with which than programmers
(who naturally focus on the features they're
developing or the bugs they're fixing) or
product owners (who with my employer tend to
have deep knowledge of the feature
developments they've worked with but not the
broad base of interaction).

CONCLUSION
Agile testing involves testing as early as possible
in software development lifecycle. It demands
high customer involvement and testing code as
soon as it becomes available. The code should
be stable enough to take it to system testing.
Extensive regression testing can be done to
make sure that the bugs are fixed and tested.
Mainly, Communication between the teams
makes agile testing success.

REFERENCES
[1]
Approach; Pressman, Roger S. McGraw
Hill; 2001; p 20.
[2] The Manifesto for Agile Software
Development; http://agilemanifesto.org/;
last referenced Nov 1, 2002.
[3] http://en.wikipedia.org/wiki/Agile_softwa
re_development
[4] http://agilemethodology.org/
[5] http://www.testing.com/agile/index.html
[6] Agile Software Development Processes by
Everette R. Keith

Vol -1 No. 3 PP 34-47
Page | 34

IMPACT OF TALENT MANAGEMENT ON BUSSINESS
PRACTICES: A STUDY ON FACE BOOK

Miss R.S.V.Rama Swathi
Ms.Lopamudra Pattnaik
ABSTRACT

Talent management in an organization is an international human resource strategy that seeks to identify,
develop and retain talented and potential employees. Talent in an organization refers to core employees,
who drive the business forward (Hasen, 2007).They are the top achievers and the ones inspiring others to
superior performance. Talent is the core competencies of organization and represents a small percentage of
the employees (Berger & Berger, 2004). Talent management is considered as a critical part of the corporate
performance equation by many business and HR executives. But hard evidence of the better results
produced by talent management has been difficult to find. Companies with the most mature talent
management capabilities (called talent management maturity leaders, or TMMLs) achieved the best results
in each of these performance categories by developing and deploying diverse talent management capabilities.
The success of TMMLs is attributable to a strong belief in the importance of talent to business strategy;
consistent investments in building and maintaining key capabilities; use of advanced measurement
disciplines and metrics; and shared responsibility for talent management among senior company executives,
first-line managers. The purpose of the study is to identify the importance of talent management in attaining
the business strategy.

KEYWORDS: Management, Talent, Business, Facebook, Talent Management.

INTRODUCTION
Talent management is a set of human capital
management process designed to manage
greatest asset: employees. The set
of applications designed differs from industry
analysts, consultants, but the most common
view on talent management is: hiring i.e.,
recruitment, competency management,
performance management, succession
management, carrer development. Other
models of talent management includes:
Work force management
Goal management
Succession planning
Talent management as a strategy requires both
commitment and perfect systems to attract,
acquire, manage and measure the talent required
for organization. Without alignment of talent
management systems and business, companies
will sub optimize their goals and puts themselves
at risk? Talent management plays a vital role in
results, but there is rarely a consensus about what
constitutes talent management. Definitions often
vary even within the same organization. The
Hackett Group defines talent management as
the activities by which organizations identify
talent needs and acquire, develop, manage and
measure management systems are
rapidly nurturing through three stages:
Stage1: Companies haveautomated their
core HR system through a group of
manual and disparate human capital
management (HCM) systems and
processes.
Stage2: HCM systems are being
integrated and talent management suites
are being formed.
Stage 3: delivers a truly unified platform
for talent management and application
delivery.

The logic behind talent management is that
business is run by people, process, technology and
people are important. Its people who create value
by using these corporate assests to create products
and services that people need. This means the
better people an organization has, the better it
performs. This is the rationale behind talent
management to attract, develop and utilize the
best brains to superior talent.

"Only 41% of firms are confident that their
human capital strategy is truly embedded in their
finding from the study reveals that the most
senior business leaders C-level executives do

Vol -1 No. 3 PP 34-47
Page | 35

not just disagree with each other on critical
aspects of talent management, but they also are
unclear who should bear responsibility for these
issues in their organizations." Charted Global
Management, September 2012

TALENT MANAGEMENT FOCUS
AND LANDSCAPE IN 2013
Key finding 1: A continued focus on engagement
and leadership in 2013
Engaging the workforce (55%) and
developing leaders (52%) remain top
priorities for Organizations in 2013.
Performance management, workforce
planning/talent analytics and training
and development round out the top five
priorities.

TOP FIVE HR PRIORITIES TO
BUILD TALENT MANAGEMENT

1. Emerging Economies
Engagement/retention
Performance management
Leadership development
Workforce planning/talent analytics
Training

2. Established Economies
Leadership development
Engagement/retention
Performance management
Succession planning
Workforce planning/talent analytics

improvements, most HR executives still
in five havemade significant, costly changes to

TOP 10 TALENT MANAGEMENT
TRENDS

According to Future step
of the leadership team from countries across every
continent have debated the changing talent scene
and collaborated to forecast the landscape for the
coming year, based on the trends, developments
and challenges witnessed in 2012 and the

predictions, nothing more
(Future step
next year but a forecast by people who know
something about talent management and the
workplace, and who closely watch what is
happening with it every day.

Here are the trends that Future step believes will
shape the recruitment and talent management
industry globally in 2013:
1. Building the internal business case
Companies are already asking the insource vs
outsource question more than they have
historically, both to make more sense of what
outsourcing can mean for them but also to build
an internal business case to present to the key
decision makers and executive boards. As budgets
continue to be scrutinized during 2013,
organizations will increasingly ask for help in
making outsourcing make sense for them in their
specific situation, thinking more broadly about
the bigger picture rather than concentrating on
the detail of each individual tactic.

2. Balancing short-term challenges with
long-term positioning
A trend that will become more acute in 2013 is
the need to balance shorter term financial
challenges with longer term strategic needs such
as the imperative to build a brand that can attract
talent over the longer term. Due to the economic
climate, many companies are finding it hard to
dedicate the time, resources and budget to
develop and execute a talent strategy that will
continue to attract colleagues in the short and
long term.

But in the next 12 months we will see
organizations starting to put in place strategies to
overcome this as their focus shifts to recovery and
growth.

3. Global complexity in workforce
planning
The globalization of workforce planning is a
trend wewill see more of in 2013 as organizations
start both through desire and necessity to
think about their talent more globally. As
companies expand internationally, and different
markets present more attractive business
opportunities, they have to think about their
workforce and talent in this way too.

4. Consumer-grade employer branding
Businesses will start to treat candidates like true
consumers, drawing on the practiced arts of
product-orientated companies to attract and
engage talent globally. Smart employers are

Vol -1 No. 3 PP 34-47
Page | 36

recognizing that many of the strategies and tactics
used by consumer brands to attract and maintain
a relationship with customers can be applied to
the candidate experience.

5. The new talent battlefields
and dominant, will become more subtle and
focused in 2013. Businesses will not hire the
volume of talent they once did, but against the
current economic backdrop and the drive for
growth they will be focused on hiring critical
talent. Therefore, in the on-going war for talent,
we will see the emergence of some new, fiercely
fought, battlefields in 2013 such as the fight for
talent in tier 2 and 3 cities within emerging
markets.

6. The rise of talent communities
Consumerism will also underpin the continued
maturation of talent pool management and the
use of talent communities. The challenge, and in
fact the opportunity in 2013, will be to build a
sustainable strategy for engaging internal and
external talent. Organizations are battling with
the fact that they know they will need talent at a
when they first encounter them.

7. The engagement imperative; the new
norm of employee-driven
development
An engaged workforce is essential to drive growth
and innovation a continued struggle for
businesses in 2012. The economic uncertainty
has left workforces exhausted; employees feel
insecurein their jobs and many feel that there is
little to no commitment to them from their
organization.

In 2013 employers will need to become more
egalitarian in their engagement approach
engaging all employees to retain all talent. Linked
to this is the fact that over the next 12 months we
believe we will see employee-driven development
becoming the new normal. It remains true that
the majority of employees globally do not have an
actionable development plan they may know
where they are going career-wise but they are not
at all clear on the steps the need to take to get
there.

8. Closing the innovation gap
HR technology solutions are becoming more
engaging a shift away from the monolithic
systems that do little to engage the employee.
Driven by a global business arena that is crying
out for talent to reach its potential and excel
solutions providers are innovating at a rapid rate.

However the level of adoption within HR
departments is patchy and is not increasing at the
same rate we believe in 2013 the gap between
innovation and adoption will start to reduce
because it has to. More and more over the next
12 months, businesses will look to innovative
products to give them the edge.

9. Increased intention for diversity
Businesses will increasingly tend towards
demanding greater diversity in the workplace in
2013. This will be particularly apparent in sectors
such as engineering where there is a focus on
gender equality and in markets such as North
America where there is an all-industry push for
diversity.
The main driver behind this trend is its presence
in the boardroom, with business leaders looking
to HR to ensure their company represents
society.

10. Focus on internal mobility
The various pressures facing recruitment and
talent managers in 2013 will lead almost
inevitably to a greater focus on internal mobility
and up skilling employees. Tighter budgets, the
requirement for specific talent areas and increased
complexity in global workforce planning will
mean that many businesses look internally to
solve their staffing issues, rather than externally.

Almost everyone is aware of Facebook. Usually
that knowledge comes from either using its social
media product or by reading about its CEO.
However, the unique aspects of the firm that
almost no one is aware of are its distinct and
powerful talent management practices.

In most cases, it takes literally several decades to
develop an exceptional company that has a
unique set of talent management practices that
produce phenomenal business results. But
occasionally there are exceptions. Apple became
exceptional again in little more than a decade
after the return of Steve Jobs. Google developed
exceptional people management practices and
business results in much less than a decade. But
Facebook has gone from a college dorm room
idea to an undisputed social media dominance in
previously done case studies on the amazing

Vol -1 No. 3 PP 34-47
Page | 37

talent management practices of
both Google and Apple
cover the amazing talent management practices at
Facebook that result in breath-taking workforce
productivity levels.

Here within 15 months of its IPO, the average
employee produces over $1.3 million in revenue
global product reaches over 1.2 billion users, its
stock price has been on a tear, and it has
successfully shifted from an exclusively PC web-
based platform to one that instead relies on the
rapid growth of the mobile platform. Glass door
has rated the firm No. 1 for employee satisfaction
and its employees rate its CEO No. 1 with an
almost perfect 99 percent approval rating. If your
firm would like to learn from what I can only call
simply amazing and results generating talent
practices, read on.

Exciting Talent Management Practices of
Facebook
2008 (I have no financial relationship with the
of management and talent management
practices* that it has implemented. Most are
unique and many have clearly not been directly
copied from talent competitors like Google,
Twitter, and Apple. My primary contribution in
this case study is to provide insight into the
business reasoning behind each of its unique
practices. The 45+features are separated into 10
different categories. As you scan through these
unique in that they push the envelope.

Employees are a high value corporate asset
1. A powerful business case of all of the
things to remember about Facebook, it is
that someone in HR or lower
management convinced executives to
fund and implement each one of the
read about in this case study. Remember
that Facebook is no different than any
other firm; crazy ideas go nowhere unless
a compelling ROI business case is first
made to executives.
2. Quantifying the value of employees
nothing spurs executives to focus on
talent management like quantifying in
dollars the added economic value of
having top-performing versus average
ones. Facebook (along with Google and
Apple) has taken the time to put a dollar
value on its employee assets. For
of
Corporate Development Vaughan Smith
has estimated that when recruiting,
engineer is worth up to $1 million, you
strongly invest in recruiting and in
increasing their productivity, and you
miniscule cost per hire that it takes to
recruit them.

amazing choices
1. Extended six-week boot camp
onboarding with a choice most
corporate onboarding is a relatively
provides the needed paperwork to the
employee before they start). Its approach
is unique because it is extended over an
industry-leading six weeks. And during
that time, rather than watching videos
and hearing lectures, employees actually
work on teams that spend their time
working on multiple real projects. And
to demonstrate its trust in new hires,
during this time boot campers have full
access to the complete computer code
behind Facebook. Each employee is
assigned a mentor. But the most
powerful part of the onboarding is that
at the end of the process, each employee
within Facebook would you like to
s is powerful because when you
apply for a job, you really have no way of
knowing which team or project would be
a best fit for you. I know of no other
organization on the planet that gives new
hires a team choice.
2. Hack month self-directed internal
movement at most organizations,
getting approval to move to a new job is
a complex often political process where
the employee has little control. However
Hack month process is the
opposite because it is a self-directed
internal movement process. It allows
employees who have worked on a project

Vol -1 No. 3 PP 34-47
Page | 38

for a year to select their own next project
team and after working with them for a
month, if they like it, they can stay.
* Note: just like at any firm, benefits and features
are continually changing; however, unless noted
otherwise, those listed here were current at its
headquarters as of August 2013.

food
1. Free ice cream and cookies is a life-
changing experience Google is
justifiably famous for publicizing free
gourmet food, but Facebook wins the
award hands down for the most
compelling food. With a relatively young
and healthy employee population that
weight, what could be morecompelling
than a free ice cream store and bakery? A
dozen varieties of ice cream, low-fat
yogurt, milkshakes, sundaes, as well as
cakes, pies, and the absolutely essential
cookies, all unlimited and for free. After
one visit and without hesitation, I
classify this as the No. 1 most compelling

2. Free barbecue even though the
-pit
barbecue is particularly compelling
because it is centrally located, and as a
result, the smoke from the barbecue
waffles throughout the campus making
employees thinks of barbecue. You
barbecue is free but the best feature is
that the BBQ shack is in the middle of
an open courtyard, where employees can
collaborate while in line and then sit in
the California sun and eat on picnic
tables and chairs.
3. A global array of food keeps employees
on campus because 3,000+
employee population includes a large
number of younger people from all over
the world, it makes sense that it offers
there I had sophisticated French food
that was as good as I eat in Paris, and like
the French it also bakes all of its own
bread on site. But it also offers
hamburgers, pizza, and tacos as well as an
espresso bar and unlimited snacks
throughout the day. Being in California,
it of course also offers health food
including a salad bar, a juice bar, and
sushi, as well as vegetarian and vegan
options. Employees clearly take
advantage of the free food because its
roughly 2,400 employees at headquarters
eat an average of 7,200 meals a day. The
Facebook Culinary Team accepts food
requests from employees and it lets
using of course a Facebook page.
4. Happy Hour every Friday one of the
features that seem to startle most
corporate people outside of the Silicon
Valley is the availability of alcohol at
Silicon Valley firms. At Facebook it is
available on Friday happy hours and
during employee-generated special
events. A reason for allowing it at firms
employees to be reasonable in the use of
alcohol.

Its management approach focuses on speed
and risk-taking
1. Speed

in that speed is critical to being first to
market. At Facebook, management
proactively encourages employees to
move incredibly fast, even though it will
obviously result in some failures. Many
firms have slogans, but Facebook goes to
the extreme of painting corporate culture
slogans larger-than-life on walls
throughout the facility, and one of
mistakes than we are of losing
emphasizes the importance of getting
things finished and implemented rather
than waiting until they are perfect, and

Vol -1 No. 3 PP 34-47
Page | 39

2. and take risks most
corporate cultures are risk adverse, and in
many cases, to the point where everyone
is afraid to fail even once. Facebook is the
complete opposite; its culture
encourages bold decision-making and
risk-taking. Its approach is illustrated by
these less-than-
decisions, even if that means being
guaranteed to
being innovative is of coursefull of huge
risks, you have no choice but to find a
way to convince your employees to avoid
the more common and natural
conservative approach.
3. The strong culture enabled a 180-
degree shift in direction the real
strength of any company culture is its
ability to change and shift the focus of its
employees when the market requires it.
The Facebook product has always been a
website-housed product that was
accessed through a PC. However you
have to credit the CEO and the company
culture for quickly realizing that the
smart phone would eventually become
the dominant platform. And in a period
of less than two years, the company made
a successful shift so that its product is
now primarily accessed through the
mobile platform and the smart phone.
To make the 180-degree shift even more
impressive, the advertising revenue from
the mobile platform is now becoming a
culture has also survived the loss of
significant revenue from the decreased
popularity of Facebook-based games
from Zynga.

A focus on excellence in recruiting
1. It is ranked the No. 1 employer
brand Facebook excels at spreading its
image. In 2013 Facebook was listed as
the No. 1 employer brand by Glass door
for having the most satisfied employees.
It was No. 1 because its employees are
your best
leadership
make the world more open and
factors that attract and retain innovators
and top performers at any organization.
They received an amazing 4.7 rating out
of 5, where the next closest employer is
rated a 4.5 and talent competitor Google
received a 4.3.
2. Acqui-hiring is a unique corporate
practice
recruiting practice of acqui-hiring.
Acqui-hiring is where you acquire
(usually smaller firms) primarily for their
talent, rather than for their products or
customers. Until its recent Instagram
acquisitions had as a primary goal to
acquire technical talent. The added
advantage of this practice is that you get
correctly, can be productive almost
start-
ups
applying for a job at a large corporation,
even one as exciting as Face book.
3.
degree because obviously successful
CEO is a college dropout, it would be
glaringly inconsistent and perhaps a little
embarrassing to require a new hire to
have a college degree. As one of the
recruiters put it,
So
If you can
build awesome stuff and have big
Not requiring a completed degree
gives it a chance to land top talent long
before other firms, which must wait until
after they graduate.
4. Contest-based recruiting reveals what
a prospect can build Facebook, like
many other Silicon Valley firms, relies
heavily on Internet-based technical
-
talent from around the world. These
relatively inexpensive contests have

Vol -1 No. 3 PP 34-47
Page | 40

find people based on the problems they
can solve, and what you can build is a
major corporate focus. Because
contestants are initially anonymous, the
winners who are targeted for recruiting
are selected because of their work and
not as a result of their degrees,
experience, gender, or wherethey reside.
Facebook also recruits at algorithm
coding contests sponsored by others
including Top Coder and Kaggle.
5. Hackathon college recruiting each
year Facebook visits more than a dozen
college campuses and while there,
challenges self-selected teams to come up
with solutions to real technical problems.
The finalists are brought to the Facebook
where their solutions are judged and the
winners get a small prize and an offer of
a summer internship. The students get to
keep their ideas in case they want to
develop their own start-ups around it.
6. CEO as its chief recruiter most
organizations dream of having its CEO
occasionally involved in recruiting but
Mark Zuckerberg takes it to the next
level. He assumes the role of chief
recruiter by periodically speaking
publicly about the firm and by visiting
college campuses in order to directly
attract potential recruits from among
faculty and students.
7. hunts
Facebook, like most other Silicon Valley
firms, relies heavily on employee referrals
to identify top recruits. One of its
creative approaches for generating names

recruiters typically ask a gathered group
of employees to think about all their
friends to see if some of them would be
great engineers for Facebook (where
Ninja is their name for an exceptional
engineer).
8. Overall recruiting and retention
success overall, Facebook seems to
excel at recruiting as a result of a
combination of its powerful product and
employer brands. In fact, Mark
doing really well against the hiring goals
tell me
that Facebook has been able to largely
protect its staff from raiding, resulting in
a single-digit turnover rate.

Economic Rewards and Employee
Benefits
1. Facebook offers unlimited sick days
most firms would never even consider
offering unlimited sick days, but if your
work is truly exciting, your teammates
count on you, and you are rewarded for
performance, there are few who want to
miss much work for frivolous reasons.
There are also few better ways to
demonstrate your trust in your
employees than to offer them unlimited
sick days. Facebook also offers 21 days of
paid time off each year (essentially a
month off) for even new employees.
2. Amazing benefits for new parents
Facebook, like most tech firms, struggles
to hire and keep women engineers. So it
offers close-in reserved parking spaces for
those who are pregnant. It also offers
both spouses, reimbursement for some
daycare and adoption fees, and $4,000

3. Rewards are based on performance
the goal is for employee rewards to be
differentiated based on performance
results and from data from its
comprehensive coworker feedback
process. One internal source estimates
that the reward differential between a
bottom and top performer at the same
level can be up to 300 percent. Nothing
sends a clearer message to employees that
performance matters (over status and
tenure) than a large percentage
differential between top and average
performer rewards.
4. An opportunity for wealth although
the firm appears to offer competitive
salaries, the prime economic incentive
are Restricted Stock Units, which keep
employees focused on producing
business results. And that business results
focus also encourages cooperation and
sharing with among employees.
Everyone seems to agree that employees
get generous RSUs as part of their
regular pay package and as bonuses.

Vol -1 No. 3 PP 34-47
Page | 41

Obviously many employees got rich as a
result of the IPO; however, the
opportunity for wealth still exists because
the stock now exceeds the IPO level and
its value has been growing at a rapid rate.
5. It encouraged workers to drop by at
any time one of the most compelling
work-
ever come across occurred at Facebook in
its early years (2008 2009). Facebook
paid its employees $600 each month
extra for living within a mile of Facebook
headquarters. The goal was to subtly
encourage employees to live close by so
that it was easy for them to casually drop
in for free food but also for extra work
and collaboration. The unintended
impact on dramatically raising rents
around its Palo Alto headquarters was
one reason for eliminating this practice
in 2009.

Many studies argue that strategic approaches of
Human Resource Management align the internal
and external business dynamics into HR practices
which is not that easy as it seems (Baron &
Kreps, 1999; Baird & Meshoulam, 1988;
Zupan& Kase, 2005). Recent developments in
the social sciences have introduced new phases
and colors in management in general and in
human resources in particular. Now HR is not
only a macro spiral of hiring, recruiting
placements, compensation and finally
rationalizing labor under the shelter of
downsizing or rightsizing but HR is now more
scientifically controlled and monitored area and
not less important than to manage marketing and
financial issues of an organization.

A new term talent management has been
introduced in last decade with revolutionary
definition of talent and talent management.
Schon& Ian, (2009) worked on the issue titled
the last decade witnessed global changes that
intensified the competition in pooling the talent
internationally and talent management becomes
challenging aspect of organizational
development.

Chambers et al.,(1998)
2009) and McKinsey (2008) has evidently
claimed that next 20 years would be very smart
and demanding where technically literate and
intellectually equipped people will be placed in
driving positions.

McKinsey (2008)
of a person's abilities his or her intrinsic gifts,
skills, knowledge, experience, intelligence,
judgment, attitude, character and drive. It also
(Michaels et al., 2001: also cited in Schon & Ian,
2009). Global war for talent is also narrated by
Richard et al. (2011) in their white paper for
Development Dimensions International, Inc.
(DDI). DDI first defined talent as a mission
critical process that ensures organizations to have
the quantity and quality of people in place to
meet their current and future business priorities.
The process covers all key aspects of an
succession and performance management.

Richard et. al. (2011) evidently explain the need
the need for talent management in different
aspects, their plea for talent management magnify
the need of strong and robust HR structure in an
organization. They emphasized over six drivers
fueling the need of talent management. Firstly,
there is a strong plea for better talent and better
business performance endorsed by Bassi &
McMurre in 2006 (cited in , Richard et. al.
(2011) where they revealed that high score in
human capital posted higher stock market returns
and better safety records.

Axelrod et. al. (2002) conducted surveyed 1300
manager of 112 companies and found only 37%
companies identified the A, B and C grade
performers and 28% companies turned
assignment into action plans. Secondly, Talent is
a rapidly increasing source of value creation and
they referred brooking institution which found
that the dependency of talent resulted in an
20 years.

Another study conducted by Baling et al. (1996)
experimented a training sessions periodically for
20 Banks branches on transformational
leadership and found that the managers who
participated in sessions reported better financial
outcomes in their branches (F=7.69), for personal
loan sales (F=3.32) and for credit card sales
(p<0.10). Thirdly, the context in which we do
business is more complex, dynamic and
demanding in recent time, constantly innovative

Vol -1 No. 3 PP 34-47
Page | 42

capability of a firm should be increase and the
talent of idea generation is overwhelmingly
welcomed specially in western economies in last
few decades. Fourthly, boards and financial
markets are demanding more from their CEOs
and executives. Executives and leaders are in turn
more keen to have such personals either through
trainings or through external hiring who not only
facilitate them in achieving short term goals but
as well as keeping long term objectives of the firm
intact.

Howards & Wellins (2008) approved that the
development and organizational performance.
Fifthly, employer expectations from workers are
also changing, they are now looking for better
results in operations, they are fed up of obsolete
technologies, and they are more concerned about
the work life balance. Sixthly, Workforce
demographics are evolving. Organizations wage a
ays.

Noelle et. al. in their white paper for IPatInc. in
2004. They referred to the study of Michaels,
Hadfield & Axelrod, (2001) who found that in
last century, only 17% job were looking for
knowledge worker but in 2011 the ratio has been
mounted to 60%.

Noelle et. al. (2004) termed pool of talent as
intangible assets and all other monetary and
physical resources as tangible assets, they found
the percent of market value related to tangible
assets in 1982 was 62 percent, with 38 percent for
intangible assets. In 2000, the growing
importance of intangibles is demonstrated in the
fact that only 15 percent of market value is related
to tangibles, while a whopping 85 percent is
related to intangibles. The demographics are
undoubtedly indicating the diversion of
entrepreneurial and managerial psychology
toward strategic importance of talent
management.

SURVEY DESIGN
After an extensive literature review of the subject
area, questions were generated and a
questionnaire drawn up from a survey of 150
respondents. In this process, use was also made of
the 2006 Talent Management Survey undertaken
by the Society for Human Resource Management
(SHRM) in the USA (SHRM 2006).
The questionnaire consisted of various sections
like: HRM activity in the company, Staffing
Retaining employees, with the following
subsections:
Compensation, Performance appraisal, Labour
relations, Employee health and Innovation and
creativity, Motivation to commitment
Communication Culture, Involvement in
leadership, Policy and procedures, Management
involvement.

For the majority of the questions, use was made
of a four-point Likert scale. The scale ranged
from strongly disagree (1), disagree, (2), agree (3)
to strongly agree (4).And analysis was done with
the help of pie charts to draw the conclusion.

ANALYSIS
1. Reasons for using talent management
S.NO No. of employees Opinion
1 Retention 56
2 Performance management 48
3 Strategy 22
4 Succession 24
Total 150

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Page | 43

2. The process that management takes in employing talent management practices
S.NO Opinion No. of employees
1 Communication 78
2 Clarity 48
3 Buy in 18
4 Transparency 06
Total 150

3. The approach that companies take in identifying talent within organizations
1 Talent identification approach 97
2 Reactive approach 53
Total 150

4. Linkage Between Talent Management And Other HR Practices
1 Integration 01

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Page | 44

2 Management development program 01
3 Training program 148
Total 150

5. The Level of Sophistication of Talent Management Practices

S.NO Opinion No.of employees
1 Promotion 135
2 Talent management visibility 07
3 Development 04
4 Simplification 04
Total 150

6. The characteristics of talent management practices
1 Execution 06
2 Live Management Skills 48
3 Competency model 07
4 Reward 43
5 Performance 33
6 Employee Value Proposition 13
Total 150

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Page | 45

7. Desire for developing talent management practices in the organization

1 Desire to improve business results 51
2 Growth in business requiring better management of talent 23
3 Need for greater diversity in management 07
4 Company growth 33
5 Recent merger or acquisition 23
6 Need to increase retention of internal talent 13
Total 150

8. Proposed best strategy for talent management practice implementation

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Page | 46

CONCLUSION
Literature and above discussion is tending one to
believe in the importance of talent management
in modern organizational strategies. Human
resource undoubtedly is an unpredictable
resource with multicolored behavioral attributes;
if these attributes are truly discovered and utilized
then they definitely contribute in valueaddition
of an organization. Recent development in
managing talent is not only opening new shades
of talent management but also enlighten the need
to investigate its true practice currently under
operations and the need of research on its
implication and effects on organizational
developments. Also the need is felt to look into
the impact of talent management on employee
Though there are many studies which focused on
the talent management and its impacts in
different scenarios and environments. Luis &
Charles (2007) worked on gender based diversity
management and highlighted many constructs
which truly explained the elements of managing
talent but the study is limited to gender case.
Birdy et.al. (2008) work focused over employee
empowerment, Collins et. al. (2004) worked for
effect of knowledge outcome and leader
development programs in almost 308
organizations, Harter et.al. (2002) worked on
many variables which directly or indirectly
encompassing the practices of talent management
and its multiple effects on organizational
performance. If such kind of studies are
continued to different cases like placements,
hiring, promotions, training and workshops,
cultural diversity and all other factors that are
discussed in best practices given above, would be
really enriching the literature of talent
management which is recently quite needful.
Many other studies are there which magnified
multiple dimensions where talent management
can be evaluated and the need of research is
required.

REFERENCES
[1] Apron, P. (2008). Talent management
practices in selected companies listed on the
stock exchange of Thailand. Educational
Journal of Thailand. 2(1), 1-9.
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leadership training on attitudinal and
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does affect matter organization? The
Academy of Management Perspective, 21(6),
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[6] Bassi, L., & McMurrer, D. (2006). Human
capital and organizational performance:
Next generation metrics as acatalyst for
change. McBassi & Company white paper
available online at www. McBassi.com.
[7] Birdi, K., Clegg, C., Patterson, M.,
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[15] Luis, L. M., & Charles, K. P. (2007). Effects
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HUMAN RESOURCE PRACTICES AND ORGANISATIONAL
EFFECTIVENESS: A REVIEW, SYNTHESIS AND RESEARCH
IMPLICATION

Dr. Anjali Ganesh
ABSTRACT

The field of Human Resource Management considers people as a pivotal asset of an organisation thereby
making a major assumption that the way people perform has a major implication on theway an organisation
performs. But, the mechanism through which it happens is an under researched area, famously known in
the literature on how human resource practices influence organisational effectiveness. The author also
proposes a testable theoretical framework which contemplates that human resource practices influence
human resource outcomes, which in turn affects organisational effectiveness and argues the rationale of this
framework.

KEYWORDS: Human Resource Practices, Human Resource Outcomes, Organisational Effectiveness.

INTRODUCTION
Human resources are considered as strategic
business assets to drive corporate performance
and to achieve a distinct competitive advantage.
This has changed the whole perspective of human
resource management. Due to the emphasis laid
on human capital, organisations are now
formulating and implementing human resource
strategies to attain the organisational goals. A
business, o
requires flexibility and agility among employees
to adapt to the changes occurring in the
technology domain, customer and market
expectations and process alignment, to meet the
strategic objectives of the business. Thus, the
significance of Strategic Human Resource
Management. Formulating an appropriate
human resource strategy can be of utmost
importance because organizations are aware that
in the 21st century, a knowledge-based human
force is the most precious capital.

However, this capital is not achieved
spontaneously, but it must be obtained,
maintained and exploited in order to formulate
added value in an optimal way which needs
thought and action. The strategies underlying
human resource practices include analysing and
designing work, determining human resource
needs (human resource planning), attracting
potential employees (recruiting), choosing
employees (selection), teaching employees how to
perform their jobs and preparing them for the
future (training and development), rewarding
employees (compensation), evaluating their
performance (performance management), and
creating a positive work environment (employee
relations). A look into this widened spectrum of
human resource management invariably makes
one think that even though human resource
functions in an organisation are more or less clear
cut and precise, the strategies used in managing
these human resources vary. Implementing
human resource strategies, no doubt helps in the
accomplishment of goals of the organisation and
eventually its success. But, what needs to be
explored is whether human resource strategies
have a role to play in organisational effectiveness
as well.

While there is a growing body of theory and
empirical research demonstrating positive
relationships between Human Resource practices
and organisational performance, there is still a
lack of understanding as to the mediating
mechanism or process through which human
resource practices influence organisational
effectiveness. Thus, this research paper provides a
theoretical framework for examining the link
between Human Resource practices and
organisational effectiveness and examines the
mediating roleof Human resourceoutcomes in
this linkage.

The paper is organised as follows: Section two of
the paper will review the literature on the links
between HR practices and Organisational
performance followed by section three which
provides an insight into the various theoretical

Vol -1 No. 3 PP 48-54
Page | 49

models linking HR Practices and Organisational
effectiveness. In section four, the researcher
presents a theoretical framework that examines
the mediating mechanism that exists between
strategic human resource practices and
Organisational Effectiveness. Conclusions are
drawn in section five where theoretical
implications of the findings have been discussed.

Researchers have, time and again, tried to
establish the relationship between Human
Resource (HR) practices and firm performance.
HRM literature is rich with numerous research
studies that focus on a single or several HRM
practices and examine their effect on various
performance measures (e.g. Abowd, 1990;
Banker et. al., 1996; Delaney and Huselid, 1996;
Delery and Doty, 1996; Gerhart and Milkovich,
1990; Harel and Tzafrir, 1999; Koch and
McGrath, 1996; Terpstra and Rozell, 1993).
There are also studies examining the effect of
bundles of HRM practices on performance (e.g.
Arthur, 1994; Becker et. al., 1997; Hoque, 1999;
Huang, 2001; Huselid, 1995; Ichniowski et. al.,
1997; MacDuffie, 1995; Youndt et. al., 1996).
Dyer and Reeves (1995) reviewed four studies
and found evidence for a relationship between
(1996) review of the seven studies appearing in
the special issue of Academy of Management
Journal on HR practices and firm performance
revealed considerable evidence for this
relationship. In addition, Paauwe and Richardson
(1997) identified nine studies containing 22
empirically established relationships between HR
and performance. However, there does not
appear to be a clear theoretical or consistent
Resource Management (HRM) and its
performance (Dyer and Reeves, 1995), thus
most scholars agree that there are probably
mediating variables through which HRM
practices affect firm performance. According to
issues that must be settled in the effort to
understand how HR practices impact
performance is to theorize the means through
which this relationship occurs, in essence
specifying the intervening variables between the
measure of HR practices and the measure of firm
examined the relationship between HRM
practices, workplace climateand perceptions of
organizational performance, in a large sample of
Canadian nursing homes and found that nursing
homes, which had implemented more
a workplace climate that strongly valued
employee participation, empowerment and
accountability tended to be perceived to generally
perform better on a number of valued
organizational outcomes. Singh K. (2004),
studied the relationship between human resource
management practices and organisational and
market performance in India by selecting 359
firms from the Center for Monitoring Indian
Economy that had more than 1000 employees.
Senior manager, who had responsibility for
human resource management in each of the firm,
was surveyed. The study took into account seven
human resource practices job definition,
training, performance appraisal systems,
remuneration systems, career planning systems
suggested a positive relationship between human
resource practices and organisational
performance, particularly training and
remuneration practices had a positive and
significant effect on both organisational and
market performance. Chand and Katou (2007)
conducted a study to investigate whether some
specific characteristics of hotels affect
organizational performance in the hotel industry
in India; and to investigate whether some HRM
systems affect organizational performance. They
found that hotel performance is positively
associated with hotel category and type of hotel
and hotel performance is positively related to the
HRM systems of recruitment and selection,
manpower planning, job design, training and
development, quality circle, and pay system.
Joseph and Dai (2009) found that there are
significant connections between HRM practices
and firm performance; that the strategic
alignment of HRM is also a driver for firm
performance. Asta and Zivile (2010), in their
study, made an attempt to make HRM-
Performance link more evident by providing an
overview of a number of conceptual models that
try to depict the processes through which HR
practices ultimately impact organisation financial
performance, there by focusing on defining the
identification of the specific mechanisms that
mediate between HRM practices and

Vol -1 No. 3 PP 48-54
Page | 50

organisational performance should be considered
as a central issue in HRM literature. In the study
conducted by Nayaab et al (2011), it has been
found that HRM practices contribute to the
enhanced banks performance. Further, the result
indicated that HRM practices like training,
employee participation in decision making was
found significantly related with banks
performance. Further, Osman et al (2011) found
that the effectiveness of implementing HR
practices in a company does indeed have a major
findings also show that HR practices have an
impact of nearly 50 percent on firm performance.

Indeed, studies have been undertaken in this
regard, but still conclusive evidence is yet to be
found.

THEORETICAL MODELS LINKING
HUMAN RESOURCE PRACTICES
AND ORGANISATIONAL
EFFECTIVENESS
Lot of research work has been done to find out
the linking mechanisms between HRM and
organisational performance, but there is lack of
consensus as to the mediating variables. There are
models which attempt to map the relationships in
the HRM-Performance chain. Some of these
models are discussed here.

The HRM-Performance linkage model given by
Fombrun et al. (1984), called as the Michigan
Model, suggests that selection, human resource
development, appraisal and rewards were geared
towards organisational effectiveness.

The Harvard model (Beer et. al. 1984) of HRM
recognizes that HRM is influenced by a wide
range of stakeholder interests and situational
factors. The interaction between these factors
allow the organization to identify the most
suitable HRM policy choices, such as those relate
to employee involvement, HR flow (including
recruitment and selection, training and
development, and performance management),
reward systems, and work systems. This process
illustrates that HR activities need to be integrated
with the broader organizational strategy. The
outcome of implementing HR policies is
organizational commitment, competence,
congruence, and cost effectiveness that return
long-term consequences for individuals,
enterprises and society.

Becker et al., (1997) suggests that Business and
strategic initiatives influence the design of HRM
system; HRM system then influences employee
skills, motivation, job design and work structures,
which in turn influences productivity, creativity
and discretionary effort leading to improved
operating performance, which results in profit
and growth which finally impacts the market
value.

Guest (1997) model works on the premise that a
set of integrated HRM practices will result in
superior individual and organisational
performance. It examined the link by suggesting
that HRM practices affected HRM outcomes
such as commitment, quality and flexibility
which in turn led to behaviour outcomes such as
effort/motivation, cooperation, involvement and
organisational citizenship which influence
performance outcomes which will ultimately lead
to financial outcomes in terms of profit and ROI.

Paauwe and Richardson (1997) presented a
model of HR in which inputs consist of HRM
activities such as recruitment/selection, HR
planning, rewards, participation, internally
consistent HR bundles, decentralisation,
training, opportunity for internal promotion,
more autonomy, formal procedures and
coaching; the throughput is HRM outcomes such
as employee satisfaction, motivation, retention,
presence, social climate between workers and
management, and employee involvement/ trust/
loyalty /commitment; and output is firm
performance indicated by profit, market value of
the company, market share, increase in sales,
productivity, product/service quality, customer
satisfaction, development of products/services
and future investments. This model also focussed
on reverse causality and took into consideration
organisational level and individual level control
variables.

The AMO model given by Appelbaum et. al.
(2000) took into account High Performance
Work Practices such as Ability/ skills,
Opportunity to participate and
Motivation/incentives influences effective
discretionary effort which leads to firm
performance.

The People-Performance framework (Purcell et.
al.,2003) is based on two assumptions that central
-
Performance linkage: (1) the framework advances
the concept of discretionary behaviour by

Vol -1 No. 3 PP 48-54
Page | 51

suggesting that virtually all employees have the
capacity to engage in discretionary behaviour, (2)
the critical role of line managers because they
have discretion in the way that they apply HRM
and the way they behave towards employees. This
motivations and opportunities to participate
which leads to HR related outcomes which comes
up in the form of discretionary behaviour of the
employees leading to performance outcomes.

The standard causal model given by Boselie et.,
al.(2005) examined the unmediated effect of HR
practices on improved internal performance and
also the reversed causality of financial
performance on HR practices and HR outcomes.

Wright and Nishi (2006) examined the HRM-
Performance relationship at multiple levels of
analysis. Their model suggests that intended HR
practices leads to actual HR practices which then
leads to perceived HR practices which gets
reflected on employee reactions (affective,
cognitive, behaviour) which ultimately leads to
organisation performance.

Based on the these models that link HRM
practices to organisational performance, this
paper proposes a theoretical framework shown in
Figure 1 that links HR practices to organisational
effectiveness. HR practices have a direct effect on
HR outcomes and an indirect effect on
organisational effectiveness that is mediated
through HR outcomes.

PROPOSED MODEL A FRAMEWORK
FOR EXAMINING THE LINK BETWEEN
HUMAN RESOURCE PRACTICES AND
ORGANISATIONAL EFFECTIVENESS
As noted in the above discussed theoretical
models of Human Resource Management,
human resources rarely have a direct effect on
organisational performance. This gap in the
important part of the issues relating to the HRM
- Performance debate is the linkage between the
two (Paauwe and Boselie, 2005). Research
investigating the relationship between HR
practices and organizational performance
confirm the importance of human resources,
their management and their influence on
organizational performance. However two
different approaches exist (Chand and Katou,
relationship between HR practices and
organizational performance (Schuler, Jackson,
1999) and others stre
between HRM practices and organizational
performance (Ferris et al., 1998; Edwards,
Wright, 2001). In the first research approach,
three major perspectives emerge from the existing
literature: universalistic, contingency and
configuration (Katou and Budhwar, 2007). In
relation to the second research approach, the
general consensus developed among researchers is
that HR practices do not lead directly to business
performance (Katou and Budhwar, 2007) and it
has long been recognised that mechanisms of
HRM-Performance link and intermediate
outcomes are central to a more complete
understanding of how HRM drives firm
performance (Becker and Gerhart, 1996). Based
on the second approach different authors describe
ery similar statements (see
Table 1).

Table 1:
Author Statements
Becker and Gerhart
1996
There is a lack of understanding about the process (how and why) through
which HRM creates organisational value and increases performance
Huselid and Becker,
1996
Properly designed and deployed HRM represents a significant economic asset
for an organization. It does not, however, provide direct evidence of how such a
the e the
principal intermediate variables that ultimately affect organization performance
Delery, 1998
There is a little understanding of the mechanisms through which HRM
practices influence effectiveness
Purcell et al., 2003
Many previous studies have examined the link between HRM practices and
performance and shown there to be a positive relationship, but none has
explained the nature of this connection how and why HRM practices impact
on performance

Vol -1 No. 3 PP 48-54
Page | 52

Wright et al., 2003
Much of the research has demonstrated statistically significant relationships
between HR practices and firm profitability. While these studies have been
useful for demonstrating the potential value created through HR practices, they
have revealed very little regarding the processes through which this value is
created.
Boselie et al., 2005
Between the input (i.e. someform of HRM intervention) and output (i.e. some
indicator of performance) moderated possibly by intervening variables lies
what HRM does to improveperformance, how and why, but scant attention is
paid

Lytras and Ordonez
de Pablos (2008)
There is a gap explaining how HRM contributes to the creation of a sustained
competitive advantage
Theriuo and
Chatzoglou
(2009)
Despite the quantity and variety of empirical studies, examining the impact of
different HRM practices on organizational performance, little attention has
focused on the concept or understanding of the mechanisms through which
HRM practices influence performance. There appears to be only a limited
amount of research attempting to explore how HRM practices essentially work
and, hence, to pinpoint the processes through which these practices can lead to
competitive advantage

Consistent with the SHRM literature, this
research paper proposes a framework for
examining the linkages between strategic HR
practices and organisational effectiveness. These
linkages are outlined in Figure1 below.

Figure 1: A proposed model of the relationship between Human Resource Practices, Human Resource
Outcomes and Organisational Effectiveness

Some researchers have studied the impact of
individual HR practices on organisational
performance, while others have examined the
bundles or complementarities of the entirety of
HR practices on performance. The logic behind
the bundling is that HR as a system or a bundle
of practices is the appropriate level of analysis
when researchers want to examine the effect on
firm-level performance (Delaney and Huselid,
1996). Authors who adopted this approach
vouched for the synergetic effect of HR practices
on organisational performance, when bundled.
Thus, the researcher proposes bundling of HR
practices to find the effect on organisational
effectiveness.

Consistent with the second research approach the
above model purports to find the impact of HR
practices on Organisational effectiveness
indirectly by considering HR outcomes such as
Skills, Attitude and Behaviour as the mediating
factors. The positive outcomes of HR practices
are displayed in the form of improved skills by
way of being more competent and cooperative;
favourable attitudes through motivation,
commitment and satisfaction; and positive
behaviour by deciding to stay within the
organisation and decrease in absenteeism.

A good peek into the HR literature points out to
the fact that there is a practice among
academicians/ researchers to use the terms
Organisational effectiveness, Organisational
Performance and Firm performance
bly because
problems related to their definition,
measurement and explanation are virtually
identical (March and Sutton 1997). Thus,
organisational effectiveness can be measured in
terms of return on equity, return on total capital
employed, sales growth rate, earnings per share
growth rate.

CONCLUSION
Strategic Human Resource Management is a
challenging area to study. Research focussing on
proving the positive effects of HR practices on
organisational effectiveness will profoundly
benefit the HR practitioners. To conclude, this
HR
PRACTICES
HR
OUTCOMES
ORGANISATIONAL
EFFECTIVENESS

Vol -1 No. 3 PP 48-54
Page | 53

study offers a theoretical framework for expecting
positiveinterrelationship among HRM practices
that leads to positive HR outcomes which in turn
impacts the effectiveness of an organisation. The
elements proposed are not new, but are projected
in a new perspective to conceptualise the role of
Human Resource Management in a strategic and
productive manner.

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Vol -1 No. 3 PP 55-62
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ANALYSIS
FOR MARKET POWER

ndez
ABSTRACT

This article, through a qualitative and quantitative analysis, focuses on strategies that CEMEX has carried
out to determine how they influence their dominance index or market power. The qualitative analysis is
based on mergers and acquisitions; meanwhile, quantitative analysis is performed by means of calculations
ndustry
leader in building's materials with global presence as it produces markets and distributes cement in
approximately 50 countries, maintaining business relationships with approximately 108 nations. Its main
strategies are based on the expansion and acquisition of companies in the cement industry.

KEYWORDS: Acquisitions, strategy, expansion, market power.

INTRODUCTION
This work has an objective to depart from an
analysis of the cement industry, specifically in the
production and marketing of cement, for the
knowledge of the market structure of the industry
and the market power that companies have,
leading to have an extensive knowledge the status
of CEMEX and its environment. Finally, it is
analysed the strategies implemented by CEMEX
to see if they are determining the market power it
has today.

Mexican Cement, CEMEX is best known as the
industry leader in building materials. It has global
presence as it produces, markets and distributes
cement in about 50 countries and has
relationships with approximately 108 nations.
Given the history of its growth, its main strategies
are based on the expansion and acquisition of
companies in the cement industry.

Analyses are performed for both strategies as
calculations and data shown in this article were
obtained from the websites of the companies that
make up the cement market and CEMEX.
CEMEX strategies implemented in the last 4
years are considered, which will be analyzed
qualitatively, based on the theory of M & A, to
be determined by the results of the influence of
these on the market and their power
concentration index. Quantitative analysis was
performed with calculations Herfindahl
Hirschman Index (HHI) and the Index of
Dominance (ID), which will be analyzed.

BACKGROUND OF THE PROBLEM
CEMEX is founded i
Hidalgo plant in northern Mxico. En 1920
Portland Monterrey to meet demand in the
Northeast Mxico. As part of its strategy in 1931
Monterrey merge
SA. Through its focus to increase its production
Maya plant in Merida and thus meet the demand
from southern Mexico through Portland Maya
Cement brand and to meet the Huasteca region
began production in the Valles plant.

participation was 10.2% and covered the Bajio
region and the Pacific, getting to bethe largest
producer of cement in Mexico. In 1986 have
achieved one factory more, the Ahuachapn
cement plant which distributed cement in the
central region of Mxico. On the other way in
1986, CEMEX made joint ventures with
companies in North America, which were in the
same industry, to strengthen their export efforts.

Then, in 1987, CEMEX bu
which controlled 15.7% of the market operating
in the central and Gulf region. In turn, CEMEX
implemented its satellite communication system,
to have connected all company facilities. In 1989,
CEMEX became one of the ten largest cement
companies in the world, having acquired
Pacific coast region and controlled 25.8% of the
market being the second largest producer in
Mexico.

By 1992, CEMEX sought ways to expand its
market and its strategy to achieve this was the
acquisition of several companies in different
countries. The first acquisition performed as part

Vol -1 No. 3 PP 55-62
Page | 56

of this strategy was Valencian and Sanson, which
were the largest cement company in Spain, and
so was how CEMEX started its international
expansion in the European market. Then in 1994
it made three acquisitions. The first was the
purchase the company Vencemos in Venezuela,
which was one of the largest cement companies
in the country, which led her to spread through
South America. After acquires Bayano Cement in
Panama, making the entrance to Central
America. Finally, its third acquisition of the year
was Balconies in the United States.

Dominican Republic, settling in the Caribbean
region. After pu
Samper in Colombia, CEMEX becomes the
world's third largest cement company in 1996.
Starts Operations in Asia, through the acquisition
of Rizal Cement in 1997, and APO Cement in
1999, both in Philippines. It was in 1999 when it
began operations in the African market after
buying Assist Cement Company, Egypt lead
cement producer.

After several acquisitions and achieve
international expansion, the company was
looking to strengthen its presence in the regions
where it already was operating. So it begins to
step further acquisitions but not based on the
expansion, but acquisitions were based on
strengthening and make present this brand. That
Pacific, the largest cement producer in Costa
Rica, to be even more present in Central America
and the Caribbean. In 2000, strengthened its
presence in Central America initiating operations
in Nicaragua and started operations in 2001 in
the Asian market with the acquisition of Saraburi
Cement Company in Thailand. In 2002,
following the acquisition of Puerto Rican
Cement Company, CEMEX consolidated its
position in the Caribbean.

In 2000, the company launched CEMEX Way,
which was an initiative to identify, incorporate
and implement the best practices of the
organization. This launch that was innovative
presented weaknesses, such as debt and mistrust
generated by each acquisition made by the
manufacturer. That same year, CEMEX becomes
the largest cement producer in North America,
after having acquired Southdown Inc. in the
United States.

Subsequently, in 2001 CEMEX uses its
technology to initiate the online customer service,
allowing customers to place orders, purchase
products and access services electronically. Since
1993, CEMEX established itself as Neoris, an
internal supplier of its own information
technology services. By 2003, CEMEX grows
with the acquisition of RMC, achieving
operations in 20 countries, mainly in Europe;
finally in 2007, bought the Australian firm
Rinker.

Currently the cement industry in Mexico
produced aproximadamente36.2 million tons
annually through its 34 installed plants to cover
consumption equivalent to 34.6 million tons
(CANACEM, 2012) of cement. The industry has
an installed capacity of approximately 57.5
million tons.

All Cement production is supported by 6
companies competing: CEMEX, which has the
largest market share followed by Holcim Apasco,
Cruz Azul, cements Montezuma, cements
Chihuahua and Lafarge cements. Given the
market power that have some cement companies,
this industry is characterized by a highly
concentrated market structure in companies with
high dominance index.

DEFINING THE PROBLEM
The main strategy of companies, especially
CEMEX is the merger and acquisition of
companies and plants as expansion mechanism
and in turn as a means to strengthen its presence
which generated economies of scale. With this
strategy, the company achieved to face
competition both internationally and
domestically. CEMEX has taken every growth
opportunities that have arisen, and all the
strategies undertaken are performed under
control expenses and costs. As technological
advances are made present and the growth of the
company requires, it has strengthened
technological platforms to have
intercommunicated the company globally and in
turn to provide better customer service.

The strategy of growth and expansion that
CEMEX was performing through the
reinvestment of generated profits and also
funding through issuance of shares and bonds, as
from 1976, before CEMEX began with its
growth strategy, CEMEX already traded on the
Mexican Stock Exchange (BMV) and 23 years
later, in 1999, it was listed on the Stock Exchange

Vol -1 No. 3 PP 55-62
Page | 57

of New York. In 2000, CEMEX Way is launched
as an initiative to identify, incorporate and
implement the best practices of the organization
which had weaknesses as mistrust and debt. Even
with this, with all operations of performed
growth, cash flow of CEMEX reported a growing
trend. With this, the company managed to
strengthen financially that allowed it to continue
with acquisitions.

Its free cash flow the company took a major part
to invest in acquisitions and the rest of the flow is
destined to reduce the debt generated by the
acquisitions performed. As a result, CEMEX
managed to reduce its net debt to EBITDA of 3.2
to 2.7 times by the end of 2003. For that year,
increased to 5.3 times its interest coverage and
refinanced 2,400 million of debt maturities
(Informed Annual, 2003). This situation is
repeated in the following acquisitions. With the
implementation of the strategy of expansion and
growth, the company showed steady growth
which led her to become the world's third largest
cement manufacturer and first company which
marketed cement worldwide.

For the purchase of RMC Corporation in 2005
and Rinker in 2007, CEMEX had to acquire a
high debt to the bank, which was possible due to,
as it has been mentioned above; CEMEX was
supported by the generation of free cash flow. But
after the economic crisis of 2008, which started
in real estate, significantly decreased sales
company which eventually affected the debt at
that time it had acquired. In the same year with
the global crisis, CEMEX had lost its
international position.

Another strategy that implemented over time,
was the geographical diversification of its assets,
leading to new markets the production of cement,
concrete and aggregates. Another strategy was
vertical integration of its operations, and shares
acquired as part of the cement value chain, as
companies from drawing raw materials from the
mines. These strategies in addition to the others
already mentioned, which takes CEMEX to be a
competitor renowned worldwide.

JUSTIFICATION
The analysis focuses on CEMEX because it is the
company with the largest market share of
Mexican origin, so it is considered important to
know its status, and its performance over time, as
well as strategies that led to where is, and more
importantly, what has it done to overcome a debt
that has cost its stability?

It is also important to know how well-developed
and well-implemented strategy based on tight
control of costs and expenses, such as in the case
of acquisitions, can lead to bankruptcy for a
company well established and large that it is. And
more even when in an environmental analysis
regarding the debt acquired with each
acquisition, does not includes a possible
economic crisis.

HYPOTHESIS
A growth strategy based on the acquisition and
generating debt to a company, in this case
CEMEX, must integrate a rigorous control of
costs and expenses as well as an analysis of risk
and return considering internal aspects of the
company and the environment. Also it is
considered taking it to the end of an economic
crisis, which together can lead to better results
than those presented by CEMEX.

CONCEPTUAL THEORETICAL
FRAMEWORK
Peng (2010) defines acquisition as "the transfer
of control of the assets, operations and
management from one firm to another." There
are three types of mergers and acquisitions:

A. Horizontal: When firms competing in the
same industry are involved;
B. Vertical: When are involved suppliers and
buyers; and,
C. Cluster: When firms with unrelated products
are involved.

The motives driving these transactions are
synergy and administrative arrogance. Analysing
acquisitions that CEMEX has done, it can be seen
that its acquisitions in plants and businesses
around the world have been horizontal since all
these cement companies were acquired from
various countries, which had good position in the
local market. When CEMEX chose Neoris as
internal provider on Information Technology, it
was a conglomerate acquisition since the purchase
was based on technological developments. A
previously aforementioned strategy was vertical
integration of operations, where he acquired
shares as part of the cement value chain, as
companies from drawing raw materials from the
mines.

Vol -1 No. 3 PP 55-62
Page | 58

According to the theory based on industry, Peng
(2010) considers risk reduction, which CEMEX
not considered in full by not considering a
possible crisis. The resource-based theory
includes leveraging administrative capacity, and
access to complementary resources, what
CEMEX made to cover all their resources to pay
off the debt acquired after each acquisition

CONTEXTUAL FRAMEWORK
The construction industry, based on the 2009
Economic Census, recorded a GDP contribution
of 7.2%. (INEGI, 2009). Based on information
provided by the National Chamber of Cement
(Candace, 2012) the annual Grey Cement
consumption in 2012 was 34.6 million tons,
while the annual production was 36.2 million
tons throwing an annual per capita consumption
equivalent to 295 kg. Currently this Chamber
does not report figures on consumption of 2013,
nor disclose what companies like cements
Fortaleza, Montezuma, Cruz Azul, etc.

In Table 1, it has been recorded that from 2011
to 2012 there was a 0.8% increase in cement
production, as domestic consumption had
increased by 0.2%. With the production
generated in 2012, it was possible to meet the
demand of consumers, leaving a surplus for the
producer of 1.6%, representing an increase of
0.6% over the previous year's surplus.

Table 1. Production and domestic consumption of cement

In Mexico there are 6 major cement producing
companies that are part of the industry, which in
total have some of the 34 plants installed in the
country. The following table shows how many
plants are owned by each company. With the
integrated information in this Table 1 it was
designed Figure 1 conducted to analyse the
market share and see which layer contributes
more to the production of cement.

Table 2. Distribution of installed plants in Mexico
Firm
Number
of plants
1. Lafarge cements 2
2. Group cements Chihuahua (GCC Cement) 3
3. cements Montezuma 3
4. cements Concertos Nationals (CYCNA, Grupo Industrial Cruz Azul) 4
5. Holcim Apasco 7
15
Source Candace (2012) Total 34
Year
Production
(In million tons
cement gray.)
National
consumption
(millions tons.)
Inhabitants
Inhabitants/
kgs
2000 31.7 29.4 99,929,495 294
2001 30 27.7 101,208,925 273
2002 31.1 28.8 102,443,471 281
2003 31.9 29.6 103,636,353 285
2004 33.2 30.9 104,790,554 295
2005 34.7 32.7 103,946,866 314
2006 37.9 35.9 104,874,282 342
2007 38.8 36.8 105,790,725 347
2008 37.1 35.1 106,682,512 329
2009 35.1 34.4 107,550,697 321
2010 34.5 33.9 112,336,538 301
2011 35.4 34.4 114,975,406 299
2012 36.2 34.6 116,901,761 295
Source: Canacem (2012)

Vol -1 No. 3 PP 55-62
Page | 59

To analyze how the market is concentrated in this
sector, the following information, obtained by
INEGI (2009) and calculated with data from the
"Total gross output" on economic activity
"Manufacture of cement and cement based
products in integrated cement plants" as it is
where is classified the cement production. With
the integrated information in this Table 2 was
designed Figure 2 to determine the market power
of each stratum, based on gross production and
market share.

Market share by strata

Figure 1: Market share by strata
Source: Authors calculations based on data obtained from INEGI (2009).

Based on the chart on figure 1 above, it can be
seen that the market share of the cement industry
is distributed among medium and large
production strata. In 12 large companies is
concentrated 53% of production and 15 medium
enterprises 46%. From the above calculation,
based on gross output, it is shown that midsize
companies accumulate 59% of market
concentration, while large account for 41%. The
information is shown in Figure 2.

Contribution of Herfindahl Hirschman Index (HHI)

Figure 2: Contribution of Herfindahl Hirschman Index (HHI).

Based on the Herfindahl Hirschman Index (HHI) calculated, it follows that the cement industry tends to
perfect competition but, as indicated by the Index of Dominance (ID) it has an oligopolistic structure of a
HHI of 2785.97.

On the other hand it is considered that is an oligopoly because only 6 companies produce the total market,
which leads to a high degree of interdependence, as each company is awaiting the actions performed by
their competitors because they will influence the actions and decisions of all other firms involved. With the
integrated information of Table 3 was performed Figure 3, which was to see how support is distributed
about market power in companies that today are in the cement industry market. Based on data from 2012

Vol -1 No. 3 PP 55-62
Page | 60

on the market shareof 6 companies that currently rests in cement production, the following results were
obtained:

Figure 3: Market share and IHH and ID.

In the table above it can be seen how the
distribution market for the production of cement
in Mexico is. The results of both the IHH and ID
confirmed that the cement industry is an
oligopoly where CEMEX has a concentration of
49% of production compared to Lafarge
Cementos who is just 1%.

As for the important strategies CEMEX has made
a couple of years ago, is its strategy to expand its
distribution network. According to the magazine
Expansion (2012), in Mexico, 60% of cement
demand comes from the segment of self-
construction and of this amount approximately
85% is marketed by bags of cement, the
remaining 15% is sold bulk. From this demand,
for CEMEX, consumers engaged in housing
construction represent 30% of this; the sale of
cement lumps represents just over 60% of cement
demand which are marketed through its
distributors.

This growth in the market share of CEMEX is a
result of the strategy that the company
implemented in order to expand its distribution
network and expansion strategy and in turn as a
means to make their brand stronger. This strategy
consists of opening Construrama stores, which
are run by dealers who were already marketing
cement or are entering the market with this
strategy. The Construrama are shops dedicated to
retailing of building materials, aiming to sell a
certain amount of cement per month. With that
CEMEX has successfully expanded its
distribution network to meet the demand of a key
market. Through the annual report of the
company, CEMEX announced that 6 of every 10
sacks of cement sold in Mexico and Colombia are
through Construrama.

CONCLUSION
CEMEX has implemented significant strategies
for the company but the main error of its
acquisition strategy was to risk with debt through
recent acquisitions that weremade. All strategies
which has implemented CEMEX definitely led to
position itself as the cement company with
greater participation in Mexican industry.

The acquisition of Rinker could bethe point that
affected CEMEX leaving it in a state of financial
instability which in turn was pushed by
worldwide economic crisis into a huge debt.
Imagining that if CEMEX had not acquired the
company Rinker, its debt level would have been
much less than now it currently has, could have
stability with the implementation of appropriate
strategies. Currently its strategy of expanding the
distribution network covering CEMEX is making
much of the market, so the debt versus market
power may hold in the market.

Analytical method
The methods used for the analysis conducted
were qualitative and quantitative. Qualitative
analysis was performed with backed arguments
primarily on mergers and acquisitions theory,
which allowed reaching substantiated analysis.

Meanwhile the quantitative analysis was
performed with calculations based on data
obtained from the sources indicated in each table.
The following tables corresponding to graphic
information are displayed and described above.

Table 3. Market share based on the production of cement per stratum

Vol -1 No. 3 PP 55-62
Page | 61

Estate
Economic
units
Market
share
Total gross
production
(Thousands of
pesos)
Contribution
by strata
Firms strata
t o t a l 51 100.00% 53,696,769 100.00%
According to
INEGI
0 to 2 4 0.0002% 100
0.02% micro 3 to 5 * 0.0016% 850
6 to 10 4 0.0184% 9,900
11 to 15 * 0.0121% 6,500
1.01% small
16 to 20 * 0.0461% 24,766
21 to 30 6 0.3481% 186,898
31 to 50 * 0.6053% 325,035
51 to 100 * 5.5367% 2,973,016
45.70% medium
101 to 250 15 40.1623% 21,565,850
251 to 500 8 25.2447% 13,555,576
53.27% big 501 to 1000 4 21.4904% 11,539,632
1001 and more * 6.5342% 3,508,646
Source: Own calculations based on data from INEGI (2009).

Table 4. IHH and ID strata, based on the national cement production
Estate
Market
share
IHH (Square
share)
Contribution
to IHH
ID (Square contribution)
Total 100.00% 2785.979285748% 100.00% 4153.735934365180000000%
0 to 2 0.0002% 0.000000035% 0.000000001% 0.0000000000000000015%
3 to 5 0.0016% 0.000002506% 0.000000090% 0.0000000000000080896%
6 to 10 0.0184% 0.000339918% 0.000012201% 0.0000000001488649289%
11 to 15 0.0121% 0.000146531% 0.000005260% 0.0000000000276633673%
16 to 20 0.0461% 0.002127235% 0.000076355% 0.0000000058300877360%
21 to 30 0.3481% 0.121147093% 0.004348456% 0.0000189090727229762%
31 to 50 0.6053% 0.366407157% 0.013151826% 0.0001729705357682000%
51to100 5.5367% 30.654778613% 1.100323278% 1.2107113170393300000%
101-250 40.1623% 1613.009225940% 57.897387615% 3352.1074926275600000000%
251-500 25.2447% 637.293726849% 22.875034646% 523.2672100627520000000%
501- 1000 21.4904% 461.835815744% 16.577144637% 274.8017243023850000000%
1001and
more
6.5342% 42.695568127% 1.532515634% 2.3486041698283700000%
Source: Own calculations based on data in the table above.

Table 5: IHH and ID of the 6 companies producing cement.
Company
Number
of plants
Market
share
Total
production
(millions
tons)
IHH
(Square
share)
Contributi
on to
IHH
ID
(Square
contributio
n)
t o t a l 34.00 100% 36.2 3208.00% 100.00% 5864.10%
1. Lafarge Cementos
(Cementos Fortaleza)
2 1% 0.36 1.00% 0.03% 0.001%
2. Group Cementos
Chihuahua (GCC
Cement)
3 3% 1.09 9.00% 0.28% 0.079%
3. Cementos
Montezuma
3 10% 3.62 100.00% 3.12% 9.717%

Vol -1 No. 3 PP 55-62
Page | 62

4. Cementos y
concretes Nationals
(CYCNA, Group Cruz
Azul)
4 16% 5.79 256.00% 7.98% 63.681%
5. Holcim Apasco 7 21% 7.60 441.00% 13.75% 188.977%
6. Cementos Mexicans
(CEMEX)
15 49% 17.74 2401.00% 74.84% 5601.645%
Source: Own calculations based on data from the CANACEM and The Economist (2012).
REFERENCES
[1] Babu, G., and Martinez, S. (2008). Recent
developments in the cement industry: a
comparative study between Mexico and
India. Portes, Mexican Review of studies on
the Pacific Basin, 2: 165-202.
[2] CANACEM (2012). Consumers, accessed:
http://www.canacem.org.mx/la_industria_s
eg_consumo.htm, the May 31, 2014.
[3] CEMEX (2014). Our history, accessed at:
[4] http://www.cemex.com/ES/AcercaCemex/
Historia.aspx, on June 10, 2014.
[5] Expansion (2012). Slim-Del Valle make
cement business, accessed:
http://www.cnnexpansion.com/negocios/20
12/10/16/elementia-ventures-in-cement-
industry, on June 1, 2014.
[6] INEGI (2009). Economic censuses,
accessed:
http://www.inegi.org.mx/est/contenidos/esp
anol/proyectos/censos/ce2009/default.asp?s
=est&c=14220, the May 26, 2014
[7] INEGI (2009). Economic censuses;
Interactive data query, accessed:
http://www3.inegi.org.mx/sistemas/saic/,
the June 1, 2014.
[8] Annual Report (2003). CEMEX Annual
Report, accessed at:
http://www.cemex.com/ES/Inversionistas/fi
les/2003/InformeAnual.pdf, the May 31,
2014
[9] Annual Report (2013), Annual Report of
CEMEX, accessed:
http://www.cemex.com/CEMEX_AR2013/
ESP/index.html#!report=home, on May 31,
2014
[10] Peng, M. (2010). Global Strategy. Mexico,
Cengage Learning.
[11] Vargas, G., Luna, A. (2012). The role of
uncertainty in the crisis of CEMEX.
Informal Economics. No. 372, pp. 34-50.

Vol -1 No. 3 PP 63-67
Page | 63

EFFECTIVENESS OF POVERTY ALLEVIATION SCHEMES
FOR PERSONS WITH DISABILITIES IN INDIA

Vinod Kumar Mishra
ABSTRACT

Government of India is running a number of poverty alleviation schemes for poor and weaker sections of
society. As per the provisions of Persons with Disabilities Act 1995 government is reserving a percentage of
funds for persons with disabilities in above schemes run by Ministry of Social Justiceand Empowerment
and other ministries i.e. Ministry of Health & Family Welfare, Ministry of HRD, and Rural Development
etc. for this class of society.
Present paper analyses the effectiveness of above schemes in case of PWDs.

KEYWORDS: Poverty alleviation schemes, Persons with disabilities, Assistive technologies, MNREGA,
SGSY, Indira Awas Yojana, ADIP scheme.

INTRODUCTION
In post liberalization era some sectors of economy
enjoyed significant growth. However
unorganized sectors started facing
marginalization. Dr Arjun Sengupta chairman
National Commission for enterprises in the
unorganized sector concluded that there are 83.6
crores workers in India who have to live on an
income of less that Rs.20 day.
(www.infochangeindia.org). this is 77% of
Indian population. Large portion of weaker
sections come under this bracket i.e. 87% dalit,
80% OBCs and 84% Muslims. Although report
does not account for persons with disabilities
(PWDs) but it can be assessed that more than
90% of PWDs also come under this category.

For upliftment of above sections of society,
government of India and various state
governments are running a series of poverty
alleviation schemes and some of them has
completed a decade too.

As per Persons with Disabilities - Equal
Opportunities and Protection of Rights (PWD)
Act 1995 government is allocating minimum
three percent funds of aboveschemes for PWDs
so that the poverty in this class can be eliminated
primarily by providing basic health amenities
assistive devices, education (primary as well as
higher) employment, shelter etc.

Ministry of Social Justice and Empowerment
runs following major schemes.
ADIP scheme in which aids and
appliances are delivered either free of
cost or at 50% rates to extremely poor
PWDs to improve day to day living as
well as productivity.
Government reimburses the PF
contribution and ESI contribution to
employers for three years if they provide
employment of upto Rs.25000 per
month salary to PWDs.

Other ministries also reserve funds of their
schemes for PWDs such as
Ministry of Health and Family Welfare
allocates funds for health related issues of
PWDs
Ministry of Human Resources
Development reserves funds for students
with disabilities in school education as
well as higher education
Ministry of Rural Development reserves
funds for PWDs in Indira Awas Yojana
so that they can be delivered shelter
Ministry of Rural Developmeent also
reserve funds in its schemes i.e. Swarna
Jayanti Grameen Swarozgar Yojana and
Mahatma Gandhi National Rural
Employment Guarantee Scheme. While
SGSY gives financial incentives for self-
employment, MNREGA provides
employment for minimum 100 days at
certain wages
Nowadays the sports and recreation are
also considered necessary for PWDs and
incentives are given to the players with
disabilities who participate in special
tournaments at various level (i.e. state,
national, international level).
Aim of above is to develop PWDs in order to
maintain their positions in mainstream society.

Vol -1 No. 3 PP 63-67
Page | 64

METHODOLOGY
Allocations made in the scheme under eleventh
five year plan run by Ministry of Social Justice
and Empowerment and the actual expenditures
incurred are examined. Similarly the actual total
expenditure done in the above said period by
various ministries i.e. HRD, H&FW, Rural
Development, Sports and actual expenditures
done for persons with disabilities is analyzed.
Reasons for non-expenditure of reserved funds
are identified and assessed.

RESULTS
Rajiv Rajan et al (2012) presents the data
regarding allocations and actual expenditures
done in various governments schemes. According
to paper during eleventh five year plan Rs.1900
crores were allocated for PWDs under the
Ministry of Social Justice & Empowerment a
nodal ministry for persons with disabilities but
only Rs.1443.65 (75% of allocated funds) could
be spent. The major failure was under two major
heads as follows:

Source: website of MSJE and union budget and economic survey
Due to devices based on three decades old
technologies and irrational criteria set for
distribution only 61.91% allocated funds could
be utilised in distribution of aids and appliances.
This issue has been analysed by Mishra and
Bhanushali (2012). Due to this PWDs in general
are not empowered enough with the use of aids
and appliances and their employability and
productivity is much less than normal persons.
Due to this the scheme for employment of
physically challenged miserably failed despite
(8.33%) and ESI contribution (nearly 1%) to
employers in the private sector for 3 years if they
employ PWDs with a salary upto Rs.25000 per
month. Provision of reimbursement of nearly
10% emoluments was considered insufficient and
the private sector employers did not come
forward despite enormous advertisement done by
government of India. Primary reason was that the
productivity of general PWD is much less than
90% of normal being. However the same can be
brought upto 90% and even morewith the help
of appropriate assistive technologies. This issue
has been dealt with by Mishra & Dash (2013).

Responsibilities fulfilled by other
ministries
Other ministries were also allocated funds under
11th five year plan with a provision of reservation
of funds for PWDs. Their performance with
respect to PWDs as per Rajiv Rajan (2012) is as
under.

Vol -1 No. 3 PP 63-67
Page | 65

The expenditure in health related schemes for disabled persons was meagre. With this the upliftment/
maintenance of health of PWDs is difficult.

Extremely low percentage of fund was spent in school education and higher education of students with
disability. Due to this the employability of PWDs could not be sufficiently uplifted.

Very few percentage of PWDs could be covered under Indira Awsa Yojana. Dueto this the dependence of
PWD on their family members becomes more. Their self-respect is also hurt.

Vol -1 No. 3 PP 63-67
Page | 66

Both of the poverty alleviation schemes targeted to develop employment/ self-employment badly failed in
commitments towards PWD. Here also the productivity/ employability is the main reason.

The concept of sports and recreation etc for PWD is still in infancy stage. Most of the PWDs do not come
forward in this area.

Above study reveals that despite the fact that 3% funds of various schemes including poverty alleviation
schemes should bespent exclusively for PWDs but due to deficit in approach and the existing methods of
rehabilitation of PWDs, the same is not even being spent and real outcome is expected to be very poor.

DISCUSSION
Mishra & Bhanushali (2012) has analyzed the
delivery system of assistive technologies in India
under the ADIP scheme and concluded that due
to delivery of devices based on three decades old
technologies, the ADIP scheme has very limited
success rate. As per NSSO 2002 survey 17%
PWDs can augment their productivity with the
use of aids and appliances but on an averageonly
1.25% of PWDs population is covered at
national level under ADIP scheme. The success
rate of scheme is neither correlated with poverty
of state nor with population of PWDs in the
state. The services offered particularly in camps
organized in rural, hilly and distant areas are
extremely poor. The areas affected by external
insurgencies, terrorism, naxalite problems have
no coverage at all. The scheme is largely
contributed by the NGOs and competent NGOs
are non-existent in such areas.

For availing the benefits of above schemes
minimum empowerment of person with
disabilities is essential. Beneficiaries of such
schemes have to register their names for the
schemes, open their bank accounts in post office
or bank and reach their work place or office of
disbursing the benefit. For this certain amount of
vision, hearing power and mobility is essential.
This can be augmented by the use of appropriate
devices only.

Role of Barriers

Vol -1 No. 3 PP 63-67
Page | 67

Raheja (2012) narrates that several basic
amenities such as piped water supply, sanitation,
toilets and access to public facilities are not
available to rural, distant and poverty stricken
areas and most affected population is PWDs.
The design and adaptations in the rural
environment are based to the needs of normal
persons with least considerations to PWDs. Paper
has developed a comprehensive model for
enablement / empowerment of PWDs which is
yet to be considered.
Due to this the success rate of other schemes i.e.
MNREGA and SGSY is poor. Environment of
rural areas being full of barriers, prevents PWDs
to reach to designated places for availing the
benefits of these schemes. Whatever devices are
available with them for vision/ hearing/ mobility
are inadequately used due to of barriers.

Limited Efforts
Only in case of Sarva Shiksha Abhiyan there is a
provision of delivery of assistive technologies in
schools to the children with disabilities and
Ministry of Human Resource Development bears
a portion of fund under this scheme called SSA-
ADIP scheme but the devices being delivered are
of the same technology level as being delivered
under ADIP scheme and this is augmenting the
mobility etc of students to a limited extent only.
Mishra & Dash (2013) has revealed that the gain
from ATs is positively correlated with age of the
recipient. Hence if better device is delivered,
students can gain more and their academic
performance as well as employability can be
augmented in a big way.
Above reasons also adversely affect the
performance of Indira Awas Yojana and PWDs
are not able to become house owner leading to
loss of self-respect and dignity. Very few PWDs
come forward for sports and recreation.

CONCLUSION
The poverty alleviation schemes can be successful
only after delivering appropriate assistive
technologies. By introducing qualitative change
in the devices and services being delivered, PWDs
can be empowered and this will upgrade their
quality of life. They will also be able to avail the
other benefits being allocated for them.

For this two level efforts can be done. These are:
The technology level of the devices and
services being rendered under SSA-
ADIP scheme should be upgraded and
new devices i.e. dynamic response feet in
case of lower extremity prosthesis,
appropriate wheelchairs should be
included in the scheme. Thesalary limit
of parents and price limits of devices
should be reviewed logically bearing in
mind that expenditure in assistive
technologies is an investment and not
charity. It can deliver better results if
investment is done in an appropriate
manner and amount.
Similarly schemes of delivering the above
devices and services in MNREGA, SGSY
should also be added so that PWDs can
not only be empowered to avail the
benefit of scheme but they can also be
enabled to deliver more return to scheme

FUTURE SCOPE OF RESEARCH
Empirical data can be collected in every district
about the statistics of PWDs and PWDs
approaching for above schemes and in depth
analysis of above schemes can be done.

REFERENCES
[1] National sampleSurvey Report 2002
downloaded from
http://mospi.nic.in/Mospi_New/site/inner.aspx?s
tatus=3&menu_id=31.
[2] Census of India2001 report downloaded from
http://censusindia.gov.in/.
[3] WHO World Bank report 2011 downloaded
from
http://www.who.int/disabilities/world_report/20
11/en/index.html
[4] Interview with Dr. Arjun Senguptadownloaded
from www.infochangeindia.org .
[5]
http://www.undp.org/content/dam/india/docs/p
ub-povertyreduction/livelihood-opportunities-
for-persons-with-disabilities.pdf
[6] Rajiv rajan, Meenakshi & Ramamoorthy, Sudha
budget 2012-
chapter 13 Disabled People.
[7] Mishra, Vinod Kumar; Dash, Markanda
Railway Rehabilitation Center through
Orthotics and Prosthetics Association of India
June2013
[8] Mishra, Vinod Kumar; Bhanushali, Kishor
Delivery System of AssistiveTechnologies for
Persons with Disabilities in India A Critical
Association of India, June2012 issue.
[9] Mishra, Vinod Kumar dditional costs
due to disabilities and Government schemes to
meet the same
l June2013 issuepages 10
to 22

Vol -1 No. 3
Page | 68
ABOUT THE CONTRIBUTORS

Shahana Anjum
Ph.D. Scholar
Department of Psychology,
Aligarh Muslim University, Aligarh

Associate Professor
Department of Psychology,
Aligarh Muslim University, Aligarh

Shobha.B.Hangarki
Research Scholar
Department of Studies and Research in
Management, Gulbarga University,
Gulbarga.

Shailaja Kheni
Research scholar
VTU, PG Centre
Regional centre kusnoor road , Gulbarga

Dr S H Honnalli
Assistant Professor
Doddappa Appa Institute of MBA,
Gulbarga

Pratima Mishra
United College of Engineering & Research,
Gr. Noida

Rohit Pandey
Training and Placement Officer,
Gr. Noida

Sameer Asthana
Gr. Noida

Kavita Sagar
Research Scholar,
Department of Home Science,
Institute of Home Economics,
Delhi University, Delhi

Miss R.S.V. Rama Swathi
Research Scholar,
Dept of Business Administration
Sambalpur University -
Jyoti Vihar, Burla

Ms. Lopamudra Pattnaik
Research Scholar,
Dept of Business Administration,
Sambalpur University,
Jyoti Vihar, Burla

Research Scholar,
Dept. of Business Administration,
St. Joseph Engineering College, Mangalore

Dr. Anjali Ganesh
Professor,
Dept. of Business Administration,
St. Joseph Engineering College, Mangalore

Vinod Kumar Mishra
Professor & Writer
http://www.vinodmishra.in

Vol -1 No. 3
Page | 69
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Copy of the manuscript, typed in double space on A4 size bond paper allowing 1 inch margin on
all sides, should be submitted with a soft copy by e-mailed to the editor at conference@semsindia.org
or editorsems@gmail.com

However in this case two hardcopies of the manuscript have to be sent separately. Manuscripts
should follow British spellings throughout e.g. Programme, not program. The length of a paper
including tables, diagrams, illustrations, etc. should not exceed 20 double spaced pages or 5000
words. Short communications relating to book reviews, review articles, reports of conferences,
summary/ views on various government reports, debatable issues should not exceed more than 5
double spaced pages.

Originality Statement
Author(s) is (are) required to give an undertaking that the manuscripts sent for publication in this
journal have not been published or sent for publication elsewhere. Each Manuscript must be
accompanied by a Manuscript Submission Form, the Format for which can be downloaded from
here.

Review
All contributions submitted will be subjected to peer blind review and the decision of the Editorial
Committee will be final at all.

Preparing Manuscripts
First page should consist of the title of the paper, name(s) of author(s) with affiliations and abstract
not exceeding 150 words. Second page should start with the title of the paper again, followed by
abstract and the normal text of the full paper. Name(s) of author(s) should not appear anywhere in
the text from second page onward. At the end of the blind review, the editor will inform the
corresponding author about the acceptance or rejection of the manuscript. On acceptance, the
author is expected to incorporate the modifications suggested by the reviewers, if any, and again
submit a disk and hard copy of the revised manuscript. An author will receive a complimentary copy
of the issue in which his/her paper appears.

Captions, Footnotes and References
All the tables, figures and the graphs should havecaptions. In captions for tables, figures, graphs
and column heading in tables, the first letter of the first word should be capitalized and all other

Footnotes in the text should be numbered consecutively in plain Arabic superscripts. All the
substituted by relevant no. of references.

Editor-in-Chief

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