Showing papers in "Journal of business management in 2010"

Investigating Performance of Equity-based Mutual Fund Schemes in Indian Scenario

Abstract: In the backdrop of liberalization and private participation in the Indian mutual fund industry, the challenge to survive and retain investor confidence has been a prime are of concern for fund managers. For small investors who do not have the time or the expertise to take direct investment decision in equities successfully, the alternative is to invest in mutual funds. The performance of the mutual fund products become more complex in context of accommodating both return and risk measurements while giving due importance to investment objectives. In this paper, an attempt has been made to study the performance of selected schemes of mutual funds based on risk-return relationship models and measures. A total of 23 schemes offered by six private sector mutual funds and three public sector mutual funds have been studied over the time period April 1996 to March 2009 (13 years). The analysis has been made on the basis of mean return, beta risk, coefficient of determination, Sharpe ratio, Treynor ratio and Jensen Alpha. The overall analysis finds Franklin Templeton and UTI being the best performers and Birla SunLife, HDFC and LIC mutual funds showing poor below-average performance when measured against the risk-return relationship models. Key Words: Mutual Fund, Sharpe Ratio, Beta, Treynor Ratio, India, Risk, Investor

Opportunities for Micro and Small Scale Businesses in the Tourism Sector: The Case of The Kenya Coast1

Abstract: Tourism has been considered as an economic boon in Kenya as it is the largest contributor to the country’s foreign exchange earnings. In the past, Kenya has concentrated on developing large scale tourism but this has led to high foreign exchange leakages as well as minimum benefits to the locals. In order to benefit the local economy, focus is now shifting to developing linkages between tourism and the local economies. This paper analyzed the proportion of hotel products purchased from MSEs and the opportunities available to micro and small businesses (MSEs) in the hotel industry in Kenya. Data from a survey of 49 hotels was used to determine the opportunities for MSEs in the hotel sector in Kenya. From the analysis, MSEs were found to have most potential in hotel food supply, child care services, room cleaning services, garbage collection, handicrafts and souvenir as well as maintenance and repair services. The results have implications for the role of tourism in small business growth and improving rural livelihoods and poverty alleviation. Keywords: Tourism, Micro and Small Business, Opportunities

Perceived Organizational Support and Organizational Commitment: The Mediational Influence of Psychological Well-Being

Abstract: The relationship between individual and organization was explored by examining the influence of perceived organizational support (POS) and psychological well-being (PWB) on organizational commitment. 513 managers working in two large Indian manufacturing organizations were administered standardized measures of POS, PWB, and OC measuring affective commitment (NC), normative commitment (NC), high sacrifice (HiSac), and low alternatives (LoAlt). Regression analysis revealed that POS significantly influenced psychological well-being and all components of organizational commitment. PWB was found to have significant association with AC, NC, and LoAlt. Mediation analysis revealed partial mediation between POS and AC, and POS and NC, and full mediation between POS and LoAlt. A post hoc analysis was carried out to understand the impact of different dimensions of psychological well being on organizational commitment. The implications of the findings are discussed.

An empirical study on impact of index futures trading on spot market in india

Abstract: In this paper, an attempt is made to investigate the effect of futures trading on the volatility and operating efficiency of the underlying Indian stock market by taking a sample of selected individual stocks. Specifically, the study examines whether the index futures trading in India has caused a significant change in spot price volatility of the underlying stocks and how the index futures trading has affected market/trading efficiency in the Indian futures and stock markets. The effect of the introduction of futures trading is examined using an extended period of June 1995 to May 2009.We employ an event study approach to test whether the introduction of index futures trading has resulted in significant change in volatility and efficiency of the stock returns. The study compares spot price volatility changes before and after futures trading is introduced in the stock indices. The result shows that the introduction of Nifty index futures trading in India is associated with both reduction in spot price volatility and reduced trading efficiency in the underlying stock market. The results of this study suggest that there is a trade-off between gains and costs associated with the introduction of derivatives trading at least on a short-term perspective. This paper offers a unique contribution in examining the impact of introduction of index futures trading in NSE Nifty index and the index futures covering a period since introduction of index futures in Indian Capital Market. The results suggest that the market would have to pay a certain price, such as a loss of market efficiency for the sake of market stabilization. Hence, a desirable market policy for derivatives trading would be one that would preserve market stabilization while still not damaging market efficiency in the underlying spot market. Key Words: Futures, Financial Engineering, NSE Nifty, Event study, Market Efficiency.

Cultural Influences on Corporate Social Responsibility

Abstract: To date, research that demonstrates what Corporate Social Responsibility (CSR) actually means in terms of policies and practices in the pharmaceutical industries is scarce. Similarly, research that shows understanding or compares the cultural influences of the East and the West on CSR in the pharmaceutical industry is also scarce.

Impacts of Common Processes in Multistage Production System under Machine Breakdown and Quality Uncertainties

Abstract: The work desires to determine the optimum level of batch size in bottleneck facility and to analyze the effect of common processes on throughput and cycle time in a production system under uncertain situations created by machine breakdown and quality variation. Few simulation models are developed based on a live case from a company. The models are verified and validated with the historical data from the company and by face validity. Taguchi approach for orthogonal array is used in designing experiments. The experimental settings are executed in WITNESS, a simulation package. It is observed that the variation in level of common process in the system has significant impact on the production quantity and cycle time. The main contribution of this research is determination of the optimal level of batch size in a bottleneck resource under imperfect quality of product and resources breakdown uncertainties. This approach can be generalized to any multistage production system, regardless of the precedence relationships among the various production stages in the system.

An Examination of Female Participation on U.S. Board Subcommittees

Abstract: This study examines female membership on core corporate board committees (audit, compensation, and nominating). Individual committee characteristics were examined to determine whether gender influences core committee membership. Results show mixed support for the study’s hypothesis. Specifically, females are more likely to serve as members of the nominating and audit committees but less likely to serve as members of the compensation committee after controlling for experience. The study also evaluates the relationship between firm level characteristics and the likelihood of having female core committee members. Results suggest that larger firms are more likely to have female core committee members, while rapidly growing firms are less likely to have female core committee members.

The Effect of Followers' Behavior on Leader Efficacy

Abstract: This study tested the effect of followers' behavior on a leader's self-efficacy to lead (leader efficacy). A paired sample T-test and independent sample T-tests were conducted on data collected from 121 MBA students at four different universities in the United States. The results showed that leader efficacy was affected by follower behaviors. The more positive follower behaviors were, the more respondents indicated they would experience an increase in leader efficacy. The more follower behaviors were negative, the more respondents indicated they would experience a decrease in leader efficacy. Moreover, ethnic and gender backgrounds moderated the relationship between follower behaviors and leader efficacy. Specifically, negative follower feedback affected the leader efficacy of Hispanic leaders less than Caucasian leaders. Negative follower feedback also affected the leader efficacy of male leaders less than that of female leaders. In contrast to our predictions, positive follower feedback resulted in no significant differences in leader efficacy between male leaders and female leaders, or between Hispanic leaders and Caucasian leaders. The findings of this study provide evidence of a type of upward influence that has rarely been studied and may have implications for developing competent leaders, building positive leader-follower relationships, and promoting leadership diversity.

International and local students' satisfaction of healthcare services

Abstract: This research aims to measure the international and local students satisfaction toward university healthcare services provided by one public university. The study determines the students expectations, perception and the gap between them based on the five dimensions of service quality of a modified SERVQUAL instrument. A total of 273 respondents answered the questionnaires consisted of 134 international students and 139 local students. The study shows that both groups of students were generally not satisfied with the services provided by the healthcare centre. Dissatisfaction among the International students was more closely related to the assurance-dimension; while the local students were dissatisfied with the reliability-dimension. Furthermore, the results show significant differences between the international and local students satisfaction with regard to assurance-dimension only.

Exploring the effect of unfair work contexts on the development of fairness beliefs

Abstract: This paper examines what happens when individuals who perceive a fair situation discover that the situation is in fact, unfair. In a previous study, women who sued their universities discussed their initial expectations that the university would treat them fairly despite several studies that clearly indicated discrimination at universities is still a problem (Goltz, 2005a). Thus, using interview excerpts from this past study, the current paper explores how these women's expectations of fairness may have been formed, as well as how they changed after a discriminatory experience. Results suggest that the women's expectations of fairness arose in part from three values emerging during childhood: hard work, education, and self-sufficiency. In addition, the interviews indicated the women moved from stage 5 of Kohlberg's model of moral development, where the belief is that justice can be negotiated in accepted social systems, to a belief that this may not always the case, but if enough people continue to pursue justice through accepted means, then the systems will eventually change. Implications of these results for research into models of moral development, psychological contracts, and organizational justice are discussed.

Strategies For Entrepreneurship And Innovation - A Case Study

Abstract: Entrepreneurs all over the world have contributed to the economic development of their region. They play a major role not only in organizing production, but in a broader sense, promote the process of economic development. The function of an entrepreneur is to reform or revolutionize the pattern of production by exploiting an invention or more generally an untried technology possibly for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of raw materials or developing a new market. The factor responsible for change, development and ultimately economic growth is innovation. Innovation is the key for not only in developing, new products or (services) for the market but also in stimulating investment interest in the new ventures being created. Innovation is the principal ingredient of entrepreneurship.Tourism is a smokeless service industry as it consumes less energy and pollutes least compared to any manufacturing industry. United Nations, World Tourism Organization and Department of Tourism Government of India have bestowed 'Industry' status to tourism in order to enable the industry to enjoy all the incentives and grants offered to industries in general. Currently tourism enjoys the pride of being the second largest growing industry next to IT. Tourism promotes better national and international relationship through cross culture interaction. Backward areas with its residing people can be uplifted with tourism activities without investing in capital intensive industries. The importance of tourism industry is more pronounced as it employs the largest number of manpower and earns the maximum foreign exchange. Being a part of the services sector tourism has also given birth to innumerable entrepreneurs who thrived on their personal creativity and innovativeness.An effort has been made in this paper to present the career progress of Captain Gopinath who is undoubtedly one of the greatest tourism/ entrepreneurs of the 21s1 century in India. Gopinath sacrificed a secured career in the Indian armed forces to strike on his own and in the process established a number of entrepreneurial establishments in aviation and tourism industry. Captain Gopinath neither followed management theories nor had formal management qualifications. But his actions and achievements had close resemblance with the deliberations of the best management gurus. A study have been conducted to compare the behaviors, actions and achievements of Captain Gopinath with the works of great authors who have researched and contributed over the years on 'Entrepreneurship'.

New Generation Banks' Promotion Strategies for Banking Services

Abstract: One of the sectors within the service industry that has been influenced the most by the changes in the globalization process, and at the same time has been highly internationalized, is the banking sector. With the growing importance of the financial sector, pressures are escalating for more effective marketing management of the financial services. Despite the recent recessions, the financial services sector is continuing to grow in terms of turnover and profits and thus, has a supreme impact on the other spheres of the economy.

Rethinking Ethical Issues in Global Business Environment

Abstract: In the wake of globalization and liberalization policy, business ethics phenomenon in globalised business environment has become a critical issue that has attracted business and management research scholars to engage on crucial debates and discussion at both local as well as international forum. This is because globalization policy as it were has brought about business uncertainties, changing demographics, and a push for diversity that has resulted into corporate business cultures that are less homogeneous and increasingly competitive. This paper therefore finds its relevance in the day-to-day violations of business ethics in the globalised business environment and contends that business organizations must take responsibility of these violations or omit at their own peril. The malpractices that we continue to see in business world are centered upon the self-indulgent, introspective and myopic perspectives of the business organizations that are not able to transform their thoughts to consider all possible perceptions and ramifications of their actions. Despite the diverse ideals of relativism, imperialism and universalism as philosophies geared towards finding solutions to ethical dilemmas at global level, we contend that they are much far away from the solution. The impediment of global business ethics is the phenomenon that, unlike established laws whose violation is directly punishable in a court of law, business ethics is self-regulatory. What remains difficult is to determine exactly what is ethical or not ethical. Though an alternative approach-the relationship approach has been suggested in this article, we treat it as a traditional approach that has generated a glimpse support from current body of literatures. Key words: Ethical Dilemmas, Relativism, Imperialism, Universalism, Relationship Approach, Globalization Policy

Managing Employee Absenteeism

Abstract: Employee absence rate, causes of employee absenteeism and the effects of employee absences on productivity are topics of discussion in many organizations. One reason is that high rates of employee absence may signal weak management and poor labor-management relations. A second reason is that reducing rates of employee absence may be an effective way to improve productivity. This paper reports the results of a study of employee absences in education, a large, labor-intensive industry. Employee absence in education is a serious problem which adversely affects the curriculum, discipline of the students and academic achievements of the students. In addition to economic loss, teacher absences induces students' absenteeism and causes damage to the school's reputation and it may even affect the school's general existence. This research paper tries to find out employee absenteeism rate, analyse the causes of employee absenteeism and design suitable programmes for encouraging better attendance of employees. Correlation analysis revealed that employee absenteeism was significantly related to demographic variables, cultural factors, personal characteristics of employees, community characteristics and organisational factors.

A Study on Job Motivation of Employees in Thanjavur Spining Mill ltd., Thanjavur

Abstract: We are born in an organization (i.e.) family, live in organization (i.e.) society and work in organization (i.e.) business, college, schools, government. Each organization is a group of persons working together to achieve some common objectives. For the successful teamwork motivation of employee is the must. This topic at workplace has received considerable and sustained attention in recent years both by managers and organizational researchers. The present descriptive cum diagnostic study is an attempt to portions the contributing factors to motivation and also to find out the level of motivation. Researcher adopted simple random sampling method to find the sample. Self-prepared interview schedule were used for data collection. The study reveals 47 per cent of the employees were in the age group 21 yrs - 3 yrs. Majority of the respondents have low level of motivation. It is suggested that can provide small reward at initial stage to motivate them and training programmes can be given due consideration.