bluuebunny/crossref_metadata_2025 huggingface dataset:
Theorization of New Practices in Emerging Organizational Fields
Authors: Kumar Sarma Sushanta
Published: June 2019

Executive Summary

Organizational actions are subject to multiple interpretations by the constituents of organizational field and are often prone to lose legitimacy in an uncertain environment. To ensure that organizational practices are given meaning in a deliberate way, actors resort to ‘theorization’. The institutional theory literature looks at theorization as a legitimacy seeking strategy. IT defines the goal of theorization as mobilizing support and justifying new courses of action. By linking legitimacy, theorization, and emerging field, this article explores the question of how do the organizations theorize a new practice in an emerging field.

Emerging organizational field is distinguished from a mature organizational field across four dimensions: extent of interactions among organizations, defined structure of domination and pattern of coalition among organizations, information sufficiency within the organizational field, and existence of commonly shared purpose among organizations. Theorization would focus on two important questions for justifying a new practice: ‘base of legitimacy’ and ‘audience for seeking legitimacy’. The article argues that in an emerging field, organization would theorize new practices with variants of moral and pragmatic legitimacy as base and would target the constituents of normative and market governance structure as the intended audiences.

The article presents four propositions linking each of the dimensions of the emerging organizational field. It suggests that organization would theorize new practices by focusing on exchange, procedural, structural, and consequential legitimacy. The article contributes to existing literature by linking the characteristics of the emerging field to focus and audience of theorization strategy. With the growing prevalence of hybrid organizations, organizations are commonly exposed to multiple and even contradictory institutional demands. Understanding the focus of theorization and the intended audience can help these organizations to be more persuasive in seeking legitimacy.
Blueprint for Effective Trade Negotiations
Authors: Singh Bhupinder
Published: June 2019

Negotiations are so common in business that managers often fail to recognize the elements of negotiations in their processes of interaction. The development of the necessary negotiation skills among managers is also neglected. In the USA and other advanced countries, academics actively study negotiations as an art and a science. Managers take training programmes to improve their negotiating skills.

In this article, Bhupindar Singh, based on his study and extensive experience in both the public and private sectors, provides a blueprint for effective trade negotiations. He illustrates the concepts and tactics from actual cases.
Flexible Access to Models and Data through Decision Support Systems
Authors: Rao V Kenkata
Published: June 2019

Although computers have entered the Indian scene in a big way, their applications are either mundane or characterized by rigidity. Decision Support System (DSS) is a new departure: it is a computer application that supports decision making in managers by providing them with flexible access to models and data. Its potential in India for application is vast, but largely untapped, argues V Venkata Rao. The author goes on to explain the reasons why organization have been slow in adopting the DSS and gives guidelines for designing one.
Critical Success Factors and Effective Strategies in the New Environment
Authors: Shah A M
Published: June 2019

The reduction in protectionist barriers in India has made the Indian business environment more competitive. For surviving and growing in the new scenario, Indian companies need to improve their competitiveness and choose effective strategies. This paper attempts to identify critical success factors and key strategies to be pursued by companies. Based on questionnaire data collected from 125 CEOs, the study spells out 11 critical success factors⁄areas for companies operating in the Indian market. While improvement in all these critical areas is necessary for strengthening the competitiveness of organizations, a relatively greater emphasis on one or the other depends upon the strategies pursued by an organization at a particular period of time. This paper identifies five key strategies for competing successfully in the Indian market. The strategy ‘good quality and low price’ was ranked first in importance, followed by ‘product innovation,’ ‘cost leadership and differentiation,’ ‘niche-marketing,’ and ‘superior quality and premium price.’
Building NGO-Corporate Partnership: An Alternative Perspective
Authors: Mote V L
Published: June 2019

In its Perspectives section, Vikalpa (Vol 25, No 2, April-June 2000) had published the views of Anil Bhatt on the theme “Building NGO-Corporate Partnership for Social Development.*” In this issue, V L Mote, while agreeing with Bhatt's observations that the corporate sector must involve itself with social development, warns against the cor porate sector entering into hasty collabora tion with NGOs to achieve this purpose. Drawing on the Arvind Mills' experience, the author pleads that the corporations and the NGOs should join hands only after they have known each other well and make sure that they supplement each other's skill and resources.
Reforms, Restructuring, and Infrastructure Sector: A Study of Initiatives in Orissa Power Sector
Authors: Rajan A Thillai
Published: June 2019

In 1994, the Government of Orissa initiated power sector reforms and restructuring. The reform programme resulted in vertical unbundling of the state-owned integrated electric utility, corporatization of the resultant entities, and constitution of an autonomous regulatory commission for power sector regulation in the state. One of the key features of the reform programme was the privatization of distribution activity. To make the process successful and obtain more revenues, there was a need for the distribution entities to change the existing culture and approach to management. The Government of Orissa undertook a process of organizational strengthening to develop appropriate organizational structure, systems, and business processes suitable to the new environment. This study describes the various strengthening measures implemented by Grid Corporation of Orissa to make it commercially viable and function effectively in the new environment following power sector reform.
Creative Restructuring
Authors: Khandwalla Pradip N
Published: June 2019

In the context of liberalization of globalization of economy, the changes required in the functioning of corporates need to be vast. Corporate restructuring has become an important means for achieving such changes in India and elsewhere. The restructuring paradigm of western international management consultants (WIMCs) has come into vogue among large Indian public and private corporates. One major restructuring choice is between the WIMC paradigm and a creative, participatory, largely self-help mode of corporate restructuring. Creative restructuring is illustrated by three case studies. Another major restructuring choice is between creative and non-creative modes. Based on a study of 120 turnarounds from a number of countries, 42 creative restructurings for turnaround are contrasted with 47 non-creative restructurings for turnaround along 14 categories of turnaround action. The necessity of creative, participatively improvised restructuring to institutionalize adaptive capabilities and achieve quantum leap in corporate excellence in a hyper-competitive environment is highlighted. Several steps are suggested for practitioners seeking effective creative restructuring.
Effect of Mergers on Corporate Performance in India
Authors: Pawaskar Vardhana
Published: June 2019

This paper studies the impact of mergers on corporate performance. It compares the pre- and post-merger operating performance of the corporations involved in merger to identify their financial characteristics. Also, the effect on merger-induced monopoly profits is identified by looking at the persistence profile of the profits. Taking a sample of 36 cases of merger between 1992 and 1995, it is seen that there are no significant differences in the financial characteristics of the two firms involved in merger. The mergers seem to lead to financial synergies and a one-time growth. The analysis of the regression to norm shows that there is no increase in the postmerger profits. The competitive process is not impeded with merger even when no strong anti-trust laws are present.
Scooters India Limited
Authors: Kumar Krishna , Srivastava Ritu
Published: June 2019

Scooters India Ltd. (SIL) was established in the year 1972 by the Government of India as a public sector enterprise by importing old plant and machinery from a defunct automobile company in Italy. The company incurred losses ever since its inception so much so that at one point of time (in 1989–90), it made a loss of Rs 404 million against a sale of Rs 103 million. It had accumulated losses to the tune of Rs 2125 million. The worker unions were agitating and fought pitched battle amongst themselves, against the management, and the government. The government almost made up its mind to wind up the company and appointed a new Chief Executive, Dr Sahay, who pleaded against winding up and worked for the revival of the company. In 1992, the company got covered under BIFR which reinforced the government's stand that the company cannot survive. Undeterred, Dr Sahay took up the challenge of turning around the company. After seven years of slogging, the company earned a net profit for the first time, in its silver jubilee year, breaking many myths in the process.
Application of Analytic Hierarchy Process to Benchmarking of Project Management Performance: An Application in the Caribbean Public Sector
Authors: Dey Prasanta Kumar
Published: June 2019

Benchmarking can be described as the search for the best practices leading to superior performance of an organization. This study demonstrates how analytic hierarchy process (AHP), a multiple attribute decision-making technique, can be used for benchmarking project management practices. The methodology has been applied to benchmark project management practices of Caribbean public sector organizations, organizations in the Indian petroleum sector, and infrastructure sector organizations of Thailand and UK. This study illustrates the effectiveness of a proposed benchmarking model using AHP and suggests measures for effective project management.
Amtrex Hitachi Appliances Ltd: Competing for the Future
Authors: Sridharan Anand , Ravichandran N
Published: June 2019

The October-December 2001 (Vol26, No 4) issue of Vikalpa had published a Management Case titled “Amtrex Hitachi Appliances Ltd: Competing for the Future” by Anand Sridharan and N Ravichandran. In this issue, we feature two responses on the case by Prafull Aiiubhai and Subramaniam Sridhar.

Amtrex Hitachi Appliances Ltd presents the history and managerial initiatives of a fast growing organization in the consumer durable industry. The industry is characterized by the presence of several competing (national⁄multinational) players, changing consumer needs and preferences and MNC's access to national market and vice versa. The organization needs to take stock of what it has achieved so far, what needs to be done, and how?
Indian Management Research
Authors: Sarkar Mitali
Published: June 2019

This section features abstracts of articles covering empirical studies, experiences, ideas, and theories published in Indian and international journals. Sponsored by the Indian Council of Social Science Research, New Delhi, this service is intended to facilitate Indian management research.

Authors desirous of having their publications considered for inclusion in this feature may please send reprints of their articles to Vikalpa Editorial Uffice.
Venture Capitalists' Screening Criteria
Authors: Kumar A Vinay , Kaura Mohinder N
Published: June 2019

Indian venture capital industry is one of the predominant players among South Asian countries. New funds have opened their shop here and are continuing to bring in more funds. The industry has undergone a major shift in focus. India is not a country which offers lower-cost production alternatives but is a high-tech and global outsourcing centre.

The present study reports four factors which are used by the venture capitalists to screen new venture proposals. Using Kendall's tau-c analysis, the study brings out strong association between several variable pairs. Broadly, the analysis finds that: Successful venture teams put in sustained efforts on identified target markets. They are highly meticulous while attending to the details. These teams are adept at dealing with risk because of their impeccable past experience. Indian venture capitalists do not seem to be much enamoured of technology venturing; at least some of the successful ventures funded by them do not seem to show signs of being hi-tech.

The study brings out four important variables which are highly unique to successful venture in India. They are: ability to evaluate and react to risk attention to details market share profits.

Evaluating risk seems to be an area where unsuccessful ventures fail. Since successful teams focus on established markets and meticulously pursue these markets to gain market share, they achieve desired profits.

The future research may explore the process of screening and evaluation by investigating the same through other means such as qualitative technique and techniques from cognitive psychology. The aspect of accuracy of venture capitalists' introspection would be an interesting area to study. Unless more research is conducted in the cognitive process of venture capitalists' decision-making, our understanding would remain insufficient.
Re-evaluating Diversity Measures: Calibrating for Scope to Capture the Distribution Effect
Authors: Acar William , Bhatnagar Pankaj
Published: June 2019

This paper has practical implications in three areas of application in corporate management: strategy research corporate planning governmental regulation.

The authors' review of the literature reveals a trend toward an increased use of the uncalibrated Herfindahl Index by regulators and of the uncalibrated Entropy measure by researchers. This trend involves considerable risks if it continues unabated into the new century. In the latter domain, the lack of discrimination power of current indices of concentration or diversification is becoming a major problem in that limit values specified by regulations are based on biased indicators. These are compounded when the Herfindahl Index becomes the sole anti-trust instrument for industry regulation as has been codified in the US by the guidelines jointly issued in 1992 by the Federal Trade Commission and the US Department of justice.

Complementing the empirical investigations published in the research literature over the last ten years, this paper examines the existing measures of industry concentra- tion or product-line diversity on theoretical grounds and found them wanting in certain respects: There is a lack of calibration with respect to the effect of the number of product lines or scope variable n. Diversification studies are distorted by the fact that these diversity measures of firms with several product lines become unreliable and biased toward the high end of their range. There is a lack of sensitivity with respect to capturing intermediate load distributions Sbetween the two extreme cases of a single firm (or product) or of a very large number of them.

This article presents clear criteria for designing diversity indices and gauging them. Industrial Organization (IO) economists appear to have been suspicious of these problems for a number of years, yet very little has been done to warn regulatory agencies and strategy researchers of the problems inherent in their increasing use of the uncalibrated indices. In contrast, this article develops two intrinsically calibrated indices, A1 and A2, for use by researchers, strategic planners, and industry regulators. An ideal composite measure should incorporate both the effect of cardinality or scope and the effect of shape or distribution. The existing indices bundle these two effects; the objective of this research is to ‘unbundle’ them.

Most large North-American firms tend to be multi-product corporations for which the measurement of product-line diversity as well as social diversity will be affected by the above considerations. Chances are that the same holds true in the Indian context. However, this is partly an empirical question that could be further investigated by follow-up studies on databases such as Capital-Line and Prowess, leading to some useful information for strategic and legal considerations.
Changing Mindsets of Middle Level Officers in Government Organizations
Authors: Ramnarayan S
Published: June 2019

This paper uses a simple system of classification for examining mindsets of middle level officers in government organizations. It proposes that a middle level officer may assume or take on a spectator mindset or an actor mindset. With a spectator mindset, the person may pick up a signal from the environment or get an idea for improvement but he/she does not act on that learning or insight. As a result, organizational learning does not occur and this is reflected by organizational inaction or inappropriate action. On the other hand, with actor orientation, the individual acts on his/her learning and this leads to the right organizational action.

This paper proposes that spectator orientation is rooted in four major factors: organizational characteristics nature of relations with superior the way work is performed the nature of middle management role.

When the organization is perceived as conflict-ridden, rule bound, having too many free-riders and not oriented to customer and stakeholder requirements, there is a tendency for spectator mindset to predominate. This mindset also results in hierarchical, impersonal, and non-appreciative relations with superior.

The third factor that leads to spectator mindset is the way work is performed. When the emphasis is more on performing activities in a ritualistic mode rather than to have impact and when there is inadequate attention to linkage, integration, and people management issues, spectator mindset is more likely. Finally, the nature of roles at operating levels such as fragmentation and segmentation of functions and excessive preoccupation with fix-it type of activities can lead to spectator orientation. Any attempt to change the mindset has to therefore address these four important factors.

This paper reviews some change experiments and experiences in governmental organizations in India to propose two broad approaches to bring about organizational and mindset changes: Transformational approach which aims to bring about new strategy, management processes, and approaches by creating a new equilibrium for the organization. Continuous improvement approach which focuses on small doses of incremental changes that affect only part of the organization by modifying ways and means of doing work. It builds on the efforts of organizational members.

This paper discusses these two approaches in some detail and examines the factors that are critical for the success of each of these approaches. It looks at how these approaches can also complement and strengthen each other. There can be no two opinions on how important it is to change mindsets in government organizations. This paper is an attempt to review some recent change experiences to shed some light on this important issue.
Incentive Outlay Ratios in Fast Moving Consumer Goods Sector in India
Authors: Vyas Preeta Hemang
Published: June 2019

Inflationary trends in the economy have led to increased media costs forcing many companies to increase their expenditure on sales promotion activities. It has been recognized that well-planned sales promotion activities have a strategic role to play in brand building and enhancing customer loyalty.

This study examines the nature of schemes offered in the fast moving consumer goods (FMCG) category, finds out the ratio of incentive and outlay (which the consumer is expected to make/pay to avail sales promotion offers), explores the relationships, finds out the rationale behind these offers, and provides guidelines to managers designing sales promotion activities. Eight different product categories were selected for the study. Information on actual offers made in these categories in a quarter was compiled and tabulated through content analysis in terms of brand, maximum retail price (MRP), offer (size of the incentive offered), nature of the scheme, pack being promoted, and outlay.

The following findings emerged from the data gathered and analysed: Variations in incentive outlay (I/O) ratios across product categories revealed that non-food category exhibits more variations (range) than food category. The level of incentive offered in non-food category was higher than that of food category. Bonus pack followed by free gift and price-offs were the popular tools used across product categories indicating use of similar type of schemes without much innovation. More often, medium to large pack-size was promoted in all categories except the toilet soap category indicating �load the consumer� as the main objective and thereby warding off competition temporarily.

The findings suggest that managers need to be creative to create an impact; otherwise, consumers would tend to be less loyal to any brand in a category and drift from one promoted brand to another. They need to give careful thought as to what objectives need to be achieved from whom (loyal, competitive loyal, switchers or non-users). They also need to do a proper analysis by linking sales during promoted period to overall sales, baseline sales, competing brand sales, and impact on trade and consumer behaviour and evolve guidelines with respect to terms and conditions of the offer in terms of size of the incentive, terms, whether immediate or delayed incentive, what efforts are required on the part of the consumer, etc. Before determining the size of incentive to be offered to the consumers, managers need to consider several factors such as level of competition, available budget for the brand, reputation of the company introducing a brand, consumer behaviour, competitive promotional offers, and level of price of a brand vis-�-vis competition.

A study of I/O ratios across product categories reveals interesting practices followed by companies. Exploring reasons behind such practices would give insights to managers as to why practices differ from theory and provide guidelines in managing these activities.
Emerging Options in Doctoral Study in Management for International Executives
Authors: Burrell Darrell Norman
Published: June 2019

University business schools are facing intense criticism that their traditional MBA and other graduate management curriculum fail to teach change management skills, employee development skills, employee recruiting skills, team-building skills, and the importance of ethical behaviour. Due to increasing technology, competition, and workforce diversity, today's leadership decisions are more complex than they were five years ago. The need for today's middle managers, senior managers, vice presidents, COOs, and CEOs to have more advanced leadership education has become critical, but the traditional Ph.D. and even the Doctor of Business Administration (DBA) have not become a recognized and acceptable viable solution.

In contrast to the traditional Ph.D. and DBA which is geared towards the engagement of theory and research, the advanced leadership knowledge involved in the Doctor of Management (DM) encompasses advanced leadership training that is practical and focused on leadership's complex impact on improving organizational culture and human resources development. While MBA programmes or the traditional business Ph.D. programmes are focused on finance, accounting, marketing, operations strategy, and quantitative research, DM goes a step further by also considering the importance of developing employees, organizational culture, and teams as a major aspect of strategy execution success. DM looks at management almost in an interdisciplinary way by blending leadership courses that touch on psychology, human resources management, communications, human relations, employee development, organizational behaviour, and traditional management science.

While traditional business Ph.D. and DBA programmes focus on skill development in order to effectively manage organizational operations and organizational process, DM focuses on people because without a properly developed and appropriately constituted staff, success will only be limited.

For many years, it was assumed that a doctorate degree was not applicable in the international business world. DM is a major departure of tradition by enabling executives to use a combination of pure leadership theory and applied research methods to define, implement, and evaluate the strategies necessary for organizational growth and survival in a 3-4 year programme without having to leave their full-time jobs. DM addresses the question: If the definition of management is getting work done through people, then why are traditional Ph.D. programmes so heavily focused on business and so little on employees and organizational development?
A Decision Theoretic Estimation in Exponential Product Life Testing Model Using Guesstimate
Authors: Saxena Sharad
Published: June 2019

In today's technologically advanced world, everyone depends on the continued working of a widevarietyofproductslikecomplexmachinery and equipment for theireverydayrequirements pertaining to health, safety, mobility, and economic welfare. We expect our cars, computers, electrical appliances, lights, televisions, etc., to function whenever we need them — day after day, year after year. When they fail, the results can be catastrophic: injury, loss of life or may be some costly lawsuits. More often, repeated failure leads to annoyance, inconvenience, and a lasting customer dissatisfaction that can have an adverse impact on the company's position in the marketplace. It takes a long time for a company to build up a reputation for reliability and only a short time to be branded as ‘unreliable’ after shipping a flawed product. Continual assessment of new product reliability and ongoing control of the reliability of everything shipped are critical necessities in today's competitive marketplace.

The mean and variance of an exponentially distributed random variable are of interest in numerous life and reliability testing problems as measures of various characteristics like expected life, failure rate, reliability, future mean, etc., and, thus, it is of practical importance to estimate these unknown parameters. Situations frequently arise where one has an initial estimate that combines reasoning with guessing called the guesstimate. The guesstimate may be based on a calculation of sample observations or a conjecture that comes from past experience about similar situations involving similar parameter or from the association with the experimental material or from any reliable source. It is in the form of a point value arising from either statistical investigation or sources other than that and thus should also be incorporated in any of the estimation procedure. This paper is intended to propose some improved estimators by considering guesstimate and thereby employing the results in the estimation of mean and variance in an accelerated life testing experiment of breaking strength of transformer oil at different voltage levels. The approach is very generic and the suggested estimators are shown to be better than the other estimators in the sense of having a smaller mean squared error as well as a smaller bias.
Child Malnutrition: An Overview of Trends, Issues, and Policy Prescriptions
Authors: Khan Akram A , Bano Nazli , Salam Abdus
Published: June 2019

Child malnutrition is the most neglected form of human deprivation and is one important cause of more than half of all child deaths worldwide. For nearly half of the 2.2 billion children in the world, childhood is starkly and brutally different from what we all aspire. With the childhood of so many under threat, our collective future is compromised damaging the children and the nations. The cost of hunger is extremely high, costing the poor countries up to 3 per cent of their yearly GDP. Improving nutrition could add 2 to 3 per cent a year to a poor nation's GDP. Only if we move closer to realizing the rights of all children will we move closer to our goals of development and peace.

The optimistic scenario projects Latin America as completely eliminating child malnutrition, West Asia and North Africa experiencing a decline to 1 million malnourished children, and China reducing the number of malnourished children to 3 million in 2020. The progress in the optimistic scenario is significant, yet, 94 million children would be malnourished by 2020. The pessimistic scenario reveals devastating results. Under all the scenarios, South Asia will continue to be the region with the highest prevalence and number. South Asia is also the only region in which girls are more likely to be underweight than boys.There will be very little progress in reducing the prevalence of child malnutrition in Sub-Saharan Africa.

Unless action is taken within the first two years of a child's life to improve nutrition, the children will suffer irreparable damage. Given the magnitude of the problem and its consequences for economic development, there is a need for immediate and large-scale action. Significant reduction in child malnutrition is possible but will require renewed efforts from various quarters.

The world must alter its priorities so that the problem of child malnutrition is placed at the centre stage. A concerted effort to eliminate childhood malnutrition would require policy reform and more public investment producing dramatic long-term gains in income growth, agricultural productivity, and social indicators.

Understanding the plight of excluded and invisible children and the factors behind their marginalization, efforts to focus initiatives on these children must form an integral part of national strategies on child rights and development such as: child-focused budgets capacity building encouraging children to participate.

If national capacities are not built up and processes are not driven by national governments and local communities, even those interventions that are initially successful risk failure when international assistance diminishes or political priorities change.
Please Work from Home: The Immobility of Labour in the Age of Globalization
Authors: Srinivasan Shiva Kumar
Published: June 2019

The Questions:

How are we to come to terms with the immobility of labour in the age of globalization? How is this ‘immobility’ related to the ‘fantasy of mobility’ that is underpinned in the process of immigration to affluent countries like the United States? What are the differences between the internal and external forms of mobility in emerging economies like India? How does the dominant role of the United States as the primary driver of the international economy help us to differentiate between the tenor and vehicle of globalization? What, finally, is the link between the contemporary ‘discourse of management’ and the political economy of ‘globalization’?

The Answers: Labour suffers from a relative immobility due to cultural factors, but this problem is endemic to not only external mobility (i.e., immigration) as a demographic process, but also to the persistent differences and value systems of internal mobility between managers and workers within a given economy. The traditional fantasy of external mobility is underpinned in a socio-economic structure. Being able to traverse this structure is seen as a function of the worker's ‘motivation’ to get on in life. Immigrating to affluent nations (especially the United States) in pursuit of the ‘American Dream’ is the historically privileged example of external mobility. Off-shoring works with the fantasy of internal mobility. Hence the idea of ‘working from home’ by accessing the Internet to take advantage of ‘cost arbitrage’ initially, but of local ‘knowledge and talent’ eventually in order to successfully straddle the BPO-KPO value chain in the emerging economies. The ambivalence at the heart of the projects of globalization stems from the American mediation of this project. Governments in emerging economies find this mediation difficult to come to terms with because of their colonial past and the domination of the international economy by the United States. The ‘trade-off’ between control and growth will have to be negotiated by emerging economies within the ‘discourse of management.’ To do this, emerging economies will have to develop a high level of comfort with the international division of labour (without dismissing the off-shoring process as the exploitation of the knowledge worker at the bottom of the value chain). Emerging economies will also have to work-through the idea that the modalities and processes of modernization that have kept them busy in the post-independence era has now morphed itself into the ‘discourse of management’ as the vehicle of globalization. Globalization therefore marks continuity with the process of modernization that stems originally from the project of the Enlightenment in Europe, but which found its most successful expression in the American project of ‘liberal democracy’; hence, perhaps the persistence of the American flavour of globalization.
Impact of Monetary Policy on Banks' Growth Path
Authors: Tarapore S S
Published: June 2019

With the liberalization of balance of payments, the monetary policy scenario in India underwent a sea change. While the merits and demerits of capital account liberalization have been debated, it is still not clear as to what extent the Indian economy has integrated with the global economy. There are basically two choices: either integrating with the international economy at a measured and orderly pace, or letting the world integrate with us in a disorderly manner on terms dictated by the international economy. The objective of macroeconomic management is to tailor the policies so as to maximize the gains of global integration while minimizing the adverse features of globalization.

This article captures the dilemmas and challenges of formulating a favourable monetary policy and studies and projects the implications of the changing dimensions of monetary policy on the different parameters determining the banks� growth path.

In the absence of RBI�s intervention, persistent capital inflows into the country could result in an unrestrained monetary expansion and a real effective exchange rate (REER) appreciation which in turn is likely to end up in a crisis. RBI has used a combination of the market stabilization scheme (MSS), the reverse repo, and the cash reserve ratio (CRR) to tackle the problem of excess liquidity. As CRR is considered a blunt instrument, RBI is suggested to use incremental cash reserve ratio to immobilize the excess liquidity from where it is lodged. In an extreme situation of excessive capital inflows, the author suggests the use of unremunerated reserve requirements on fresh inflows by foreign institutional investors. For the banks, large capital outflows could lead to a more difficult situation as pumping in of created money to restore liquidity could trigger further capital outflows. Remedial measures such as raising of interest rates, tightening of liquidity, and depreciation of exchange rate will have to be implemented in a non-disruptive manner so as to ensure that the economy does not go into a state of panic.

For formulating a viable monetary policy, what is most important is to set objectives in such a way that there is a clear agreement between the government and the RBI. The present structure of the banking system is not conducive to the development of a strong and vibrant financial structure. There have been repeated recommendations to reduce government holding in public sector banks because of the government�s inability or reluctance to provide more capital to these banks. In the overall rapidly changing globalized scenario, the banks cannot remain isolated; they too need to keep pace and should therefore join the bandwagon.
Advantage India
Authors: Seshasayee R
Published: June 2019

India has been on a world trip�all-pervading, ubiquitous, appropriately qualified to be in the global race. There has in fact emerged a tremendous opportunity for the country to be a potential winner in the big race. The question that arises now is how to turn this opportunity into a winning proposition. This is precisely the focus of this paper.

The author identifies some of the current core competencies that can be leveraged to build India's future and help the country win the global race. It draws from some of the achiever nations' and company's examples and tries to formulate a success strategy for India. The key lies in strategizing for the future, designing the rules of the game�away from the confines of the current market, industry, and customer requirements towards defining the market space for dominating the future market. The author cites the example of Singapore�a small island that has grown enormously on the foundation of competitive infrastructure. Core competencies are considered the tools for positioning the country strategically so that it succeeds. Three core competencies are identified: Power of youth Power to gain knowledge Power of enterprise.

Power of youth gives the energy and the conviction to change and challenge the existing. Power of knowledge enables tapping of huge potential market through creative abilities. What is required is a hunger for knowledge in the relevant area and using the acquired knowledge creatively to produce market solutions. Finally, the highest value comes from an entrepreneurial perspective�what an individual does by way of entrepreneurial value addition makes a difference to him and to the organization competing in the industry.

The entrepreneurial spirit in India is believed as being at a much higher level than many other countries including China. India is all ready to take risks and is thus going head on with its foreign direct investments without worrying about failures. And, it is this spirit that is unleashed to help the country in the game of winning.
Pay Satisfaction of Software Professionals in India
Authors: Bhal Kanika T , Gulati Namrata
Published: June 2019

This study explores pay satisfaction-related issues of software professionals in India, specifically assessing the impact of different dimensions of pay satisfaction on intent to leave. Since satisfaction with pay is an emotional/affective reaction and is likely to be influenced by personal and environmental factors, the study explores some social psychological processes like leader-member exchange, justice, and voice that are likely to impact pay satisfaction of these professionals. Using a sample of 306 software professionals drawn from various organizations, the study tests the various hypotheses.

Three broad trends emerge from the data: First, process dimensions of pay satisfaction are better predictors of the professionals' intention to leave the organization. Second, distributive justice predicts both the amount and process dimensions of pay satisfaction whereas procedural justice predicts only the process dimensions. Finally, the hypothesis that LMX leads to voice which leads to procedural justice which in turn leads to satisfaction with the process dimensions of pay satisfaction found support from the data and the strength of relationships was stronger for structure and administration dimension as compared to raises dimension of pay satisfaction.

The findings suggest that though pay levels are important, the HR Department needs to make additional efforts towards the processes through which pay and raises are determined as these processes might provide the crucial advantage for retaining software professionals in an environment where salary levels are competitive. Additionally, since both the pay-related processes and procedural justice are important, these processes need to be both effective and fair. Though fairness in appraisal and pay- related processes can be built through various HR systems like participation (voice), the results show that these processes will be effective only if they are implemented well by the immediate leader. The results have implications for leadership development and training on appraisal and pay-related processes. Unless the leaders are trained appropriately and made aware of the social psychological processes that go on in a team, the design of systems by the HR Department may not be effective.

Since distributive justice is an important predictor of pay satisfaction, comparison with relevant others plays an important role in pay satisfaction. The HR Departments in these organizations needs to identify pay levels that compete in the market. Indians are shown to have a familial identity and value the opinions of their kith and kin; hence, acknowledging and incorporating the inputs of social comparison person (family and friend) might provide more useful insights into how these professionals perceive distributive justice.
After Market Pricing Performance of Initial Public Offerings (IPOs): Indian IPO Market 2002–2006
Authors: Sahoo Seshadev , Rajib Prabina
Published: June 2019

This paper is motivated by the apparent belief that IPOs are underpriced on the initial listing day and thereafter underperforms compared to the market benchmark. While evaluation of the listing day performance seems straightforward on surface, it actually invokes several complications for the subsequent performance measurement. This paper focuses on the evaluation of price performance of IPOs up to a period of 36 months including the listing day. It also examines the usefulness of IPO characteristics at the time of issue to seek an explanation for the post-issue price performance.

The paper presents fresh evidence on IPO performance, i.e., short-run underpricing and long-run underperformance for 92 Indian IPOs issued during the period 2002–2006. It is reported that on an average the Indian IPOs are underpriced to the tune of 46.55 per cent on the listing day (listing day return vis-à-vis issue price) compared to the market index. Another contribution of this paper is the evaluation of the long-run post-issue price performance of Indian IPOs. The long-run performance of IPOs up to a period of 36 months are measured by using the two most promising evaluation techniques, i.e., wealth relative (WR) and buy-and-hold abnormal rate of return (BHAR), both being adjusted with market index, CNX-Nifty. Further, the results evidence that the underperformance is most pronounced during the initial year of trading, i.e., up to 12 months from the listing date followed by over�performance.

To get possible explanations for long-run underperformance for Indian IPOs, factors like underpricing rate (listing day return), offer size, leverage at IPO date, ex-ante uncertainty, timing of issue, age of IPO firm, rate of subscription, promoter groups retention, and price-to-book value (as proxy for growth) are considered. Evidence is found, that initial day return, offer size, leverage at IPO date, ex-ante uncertainty, and timing of issue are statistically significant in influencing underperformance. However, there is no evidence favourable to the age of the IPO firm, rate of subscription, promoter group's retention, and price-to-book value impact on the long-run underperformance.

The empirical results suggest that the investors who are investing in IPOs through direct subscription are earning a positive market-adjusted return throughout the period of study. But investors who have bought shares on the IPO listing day are earning negative returns up to 12 months from the listing date and expect to earn positive market-adjusted return thereafter. For future research, we suggest the extension of this analysis for additional explanatory variables including issue fundamental characteristics of IPO firms. The scope of the research study could even be improved by extending the time period of study prior to 2002.
How Celebrities are Used in Indian Television Commercials
Authors: Jain Varsha , Roy Subhadip , Daswani Aarzoo , Sudha Mari
Published: June 2019

The usage of celebrities by the Indian advertising agencies has experienced a phenomenal increase in the last five years. Effective communication between the marketer and the consumers is the need of the hour and celebrity endorsement is a strategy that is perceived as making full use of this opportunity. Most of the countries have adopted this strategy as an effective marketing tool and even India is carving out space for itself in this arena.

The present study attempts to meet three objectives: to identify the mode⁄s in which a celebrity is depicted in Indian television commercials to ascertain relationship (if any) between the category of product endorsed and the type of celebrity used to identify the correspondence between product categories and mode of celebrity presence.

For the first objective of identifying the nature of celebrity portrayal, four modes given by McCracken (1989) were used: Explicit mode (the celebrity overtly declares the product endorsement) Implicit mode (physical or verbal communication is used by the celebrity) Imperative mode (the celebrity suggests the viewers to use the product) Co-present mode (the celebrity only appears with the product).

For the second and third objectives, cross-tabulated frequency distribution method was used.

Content analysis of Indian television commercials was done for the period 1995–2007. The criterion used for selection of advertisements was the presence of celebrity in any form in the ad. On this basis, 558 television commercials (TVCs) were selected featuring a total of 56 celebrities.

The findings of the study indicated that: Around 64 per cent of the commercials used the implicit mode of celebrity portrayal for different product categories. Usage of film celebrities was more extensive than sports celebrities in major product categories. This was probably because the shelf life of fame for a film celebrity is more than that of the sports celebrity. Male celebrities dominated the product categories like food and beverage, automobiles, and consumer durables. The female celebrities were featured majorly in beauty products. No distinct association was found between the product categories considered and the mode used for celebrity portrayal.

The study findings contributed to the academia as well as practitioners. For the academia, the study identified the most dominant mode of celebrity advertising in India and found that there was no correspondence between the mode in which a celebrity was portrayed and the product category endorsed. For the practitioners, the study identified the lesser used modes of celebrity endorsements which could be used as opportunities.