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40120140506002

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  • 1. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 10 GENDER EFFECT ON SOCIAL PRESSURE APPROACH TO DEBT RECOVERY – A CASE OF BSNL INDORE Mr. G.C. Pandey (PhD Scholorar) Dr. C.V.RAMAN UNIVERSITY Dr. Rajeev Shukla (Professor and Head of Business Management at Shri Vaishnav School of Business Management) Dharmendra Kumar Singh (PhD Scholorar) Dr. C.V.RAMAN UNIVERSITY, Kargi Road Kota Bilaspur (C.G) ABSTRACT The trend world over is to outsource debt collection. It is good. It has worked well in the western world where legal proceedings are systematically undertaken. There is a strong motivated force in the private debt collectors. In India too many private and even government organizations have outsourced the debt recovery. The private sector takes the help of specialist companies who have an organized set up with central support team with well informed debt collectors. In the event of mission failure the legal team jumps in to take over the debt collection. The main objective of this paper is to know the gender effect of debtors on Social Pressure Approach to Debt Recovery used by BSNL Indore. The present study has analyzed gender effect of debtors on Social Pressure Approach to Debt Recovery used by BSNL Indore. The study is descriptive in nature. Convenient Judgmental sampling method used for data collection for the study. Keyword: Debt Collection, Contract Enforcement, Consumer Credit Markets, Regulation of Credit Markets, Credit Cards, Bank Reputation. 1. INTRODUCTION The trend world over is to outsource debt collection. It is good. It has worked well in the western world where legal proceedings are systematically undertaken. There is a strong motivated force in the private debt collectors. In India too many private and even government organizations INTERNATIONAL JOURNAL OF ELECTRONICS AND COMMUNICATION ENGINEERING & TECHNOLOGY (IJECET) ISSN 0976 – 6464(Print) ISSN 0976 – 6472(Online) Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME: http://www.iaeme.com/IJECET.asp Journal Impact Factor (2014): 7.2836 (Calculated by GISI) www.jifactor.com IJECET © I A E M E
  • 2. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 11 have outsourced the debt recovery. The private sector takes the help of specialist companies who have an organized set up with central support team with well informed debt collectors. In the event of mission failure the legal team jumps in to take over the debt collection. Many specialist companies have followed their own ways of debt collection. However, the service sector PSUs have been traditionally relying on mainly three methods of revenue collection and debt recovery, • Delivery of invoices & waiting for customer to pay. • Reminders through phone and letters • Legal notices • Outsourcing the revenue collection and debt recovery. All these methods have limitation when applied in PSU. In BSNL the revenue collection is about 95% on an average that too over a period of six months. In BSNL on Pan India basis, there was a huge outstanding to the tune of Rs 4800 Crores till the end of Dec 2013 [1-4]. If customers don’t pay on time or if invoices have to be constantly chased then the company accounts could easily suffer, and in extreme cases it can have a company-wide impact on finances. That’s why debt recovery is so important. To overcome this problem of bad debts BSNL Indore has proposed an innovative method of debt collection named as EE-SPADR (Empowered Employees Social Pressure Approach to Debt Recovery). In which proximity of BSNL’s employees (empowered) to debtors were first mapped and then used to create a social pressure on debtors to settle debt quickly. The present study has analyzed gender effect of debtors on Social Pressure Approach to Debt Recovery used by BSNL Indore [4][5][6-10]. 2. HYPOTHESIS Following hypotheses were stated for the study and checked at 5% level of significance. H(0)1 Gender wise there is no significant difference in perception of debtors towards Behaviours of BSNL Employees while implementing Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)2 Gender wise there is no significant difference in perception of debtors towards Innovativeness of Employees while implementing Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)3 Gender wise there is no significant difference in perception of debtors towards Effectiveness of Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)4 Gender wise there is no significant difference in perception of debtors towards creation of adequate level of Social Pressure through Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)5 Gender wise there is no significant difference in perception of debtors towards Social Pressure through Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)6 Gender wise there is no significant difference in perception of debtors towards Inspiration of the Model of Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR).
  • 3. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 12 H(0)7 Gender wise there is no significant difference in perception of debtors towards Opportunity for Debt Settlement provided by Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)8 Gender wise there is no significant difference in perception of debtors towards Communication of Customer problems to BSNL through Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)9 Gender wise there is no significant difference in perception of debtors towards Improvement in image of BSNL due to Empowered Employee Social Pressure Approach to Debt Recovery (EE- SPADR). H(0)10 Gender wise there is no significant difference in perception of debtors towards Inconvenience caused by Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). H(0)11 Gender wise there is no significant difference in perception of debtors towards Ability of Employees handling Empowered Employee Social Pressure Approach to Debt Recovery (EE- SPADR). H(0)12 Gender wise there is no significant difference in perception of debtors towards applicability to other PSUs of Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR). 3. RESEARCH METHODOLOGY The study is descriptive in nature. The Convenient Judgmental sampling method used for data collection for the study. The data collected from 170 respondents. Sampling Unit are debtors of BSNL. Sampling Area is Indore City of Madhya Pradesh in India. 4. DATA COLLECTION The primary data for the study was collected with the help of structured questionnaire comprising 12 items. Indore BSNL territory was divided in to 26 zones. All the debtors (Around 10,000 in numbers) were mapped by address to these 26 zones. Internet, banking websites, books, magazine and journals were referred as secondary sources for collecting data for the study. 5. RESULTS AND DISCUSSIONS It is exhibited in Table 1 that 87.6% respondents were male and just 12.4% were Females. This might be because in India any public utility service is taken still taken in name of Male member of the family if they are mature. It is exhibited in Table 2 that Gender wise there was no significant difference observed in perception of debtors towards attributes of Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR) adopted by BSNL Indore. Findings of the study revealed that irrespective of gender male and female debtors have shown similar opinion towards attributes of Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR) adopted by BSNL Indore. And all the null hypotheses were not rejected at 5% level of significance. However, debtor gender wise mean and standard deviation towards attributes of empowered
  • 4. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 13 Table 1: Gender Profiling of Respondents Gender Frequency Percent Cumulative Percent Male 149 87.6 87.6 Female 21 12.4 100.0 Total 170 100.0 187.6 Table 2: Debtor Gender Wise T- Test for Attributes of EE-SPADR Questionnaires GENDER WISE Test Df Sig. (2-tailed) Q1 Equal variances assumed -.551 168 .583 Equal variances not assumed -.623 28.462 .538 Q2 Equal variances assumed -1.656 168 .100 Equal variances not assumed -1.710 26.517 .099 Q3 Equal variances assumed -1.768 168 .079 Equal variances not assumed -1.594 24.482 .124 Q4 Equal variances assumed 1.163 168 .247 Equal variances not assumed 1.207 26.625 .238 Q5 Equal variances assumed .629 168 .530 Equal variances not assumed .734 29.225 .469 Q6 Equal variances assumed .037 168 .971 Equal variances not assumed .036 25.915 .971 Q7 Equal variances assumed -.461 168 .645 Equal variances not assumed -.445 25.398 .660 Q8 Equal variances assumed .614 168 .540 Equal variances not assumed .821 33.885 .417 Q9 Equal variances assumed .846 168 .398 Equal variances not assumed 1.042 30.776 .306 Q10 Equal variances assumed -1.113 168 .267 Equal variances not assumed -1.973 57.129 .053 Q11 Equal variances assumed -.706 168 .481 Equal variances not assumed -.803 28.569 .429 Q12 Equal variances assumed .307 168 .760 Equal variances not assumed .461 40.172 .648 It is exhibited in Table A that 87.6% respondents were male and just 12.4% were Females. This might be because in India any public utility service is taken still taken in name of Male member of the family if they are mature. It is exhibited in Table 2 that Gender wise there was no significant difference observed in perception of debtors towards attributes of Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR) adopted by BSNL Indore. Findings of the study revealed that irrespective of gender male and female debtors have shown similar opinion towards attributes of Empowered. Employee Social Pressure Approach to Debt Recovery (EE-SPADR) adopted by BSNL Indore. And all the null hypotheses were not rejected at 5% level of significance. However, debtor
  • 5. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 14 gender wise mean and standard deviation towards attributes of empowered employee based social pressure approach of debt recovery (Table 3) revealed some degree of difference in opinion of male and female respondents, which were not significant at 5% level of significance. Male debtors very strongly believe (mean 1.71) that EE-SPADR is innovative though there are great opinion differences within male debtors as indicated by SD of 1.248. This means there are few debtors who believe that EE-SPADR is definitely innovative whereas there are few who have no idea about it. This shows variety of debtors with knowledge and understanding of EE-SPADR and its predecessors. Female debtors have less difference of opinion. They accept that EE-SPADR is innovative with more consistency. This kind of response from female debtors is probably female debtors have never been approached before by BSNL for debt recovery. They might have heard through their male family members about difficulty in debt settlement through traditional approach. Male debtors were also found to be relatively more satisfied with BSNL employee behaviour than female debtors. Similarly male debtors strongly believe that EE-SPADR is a good way of debt settlement though there are opinion differences within male debtors. This means there are few debtors who believe that EE-SPADR is definitely good way of debt settlement whereas there are few who have no idea about it. This shows variety of debtors with knowledge and understanding of EE-SPADR and its predecessors. However, Female debtors have shown greater difference of opinion. They accept that EE-SPADR is way of debt settlement with less consistency. This kind of response from female debtors is probably female debtors might not have liked being approached by BSNL for debt recovery. Female debtors have less difference of opinion in accepting that EE-SPADR has created required social pressure with more consistency. This might be due to female debtors have never been approached before by BSNL for debt recovery. EE-SPADR must have surprised them with some apprehension of neighbours coming to know indebtedness. They were also strongly accepted that EE-SPADR is a successful tool of recovery with more consistency In both male and female debtors group there were few debtors who believe that EE-SPADR motivated them to settle debt whereas there were few who have no idea about it. This finding revealed the varying understanding of EE-SPADR adopted by BSNL Indore. Similarly irrespective of gender variation in responses for both groups were observed that EE-SPADR provided an opportunity for debt settlement. Both male and female debtors have opined that EE-SPADR helped debtors to communicate their problems to BSNL and also that this effort of BSNL has improved debtors image towards BSNL services. However, female have stronger opinion with more consistency than males. This can be explained by the fact that female have less exposure to such issues as they handle only internal issues of families and seldom get chance to express their “emotional trauma” that they experience when unsettled dues keep their minds occupied. When BSNL employees approached them at their home, they might have found a channel to express themselves and this fact made female debtors respond strongly and more consistently than male debtors. Female have stronger opinion with more consistency than male debtors towards convenience caused by Empowered Employee Social Pressure Approach to Debt Recovery. The opinion difference between males & females is due to more convenience experienced by females in debt settlement through EE-SPADR as they did not have to go to any office of BSNL for debt settlement. The male debtors were found to be relatively more agreed than female debtors in saying that BSNL employees were empowered to handle EE-SPADR. This might be due to the fact male must have demanded on the spot commitment from BSNL employees which they unexpectedly got (which might have been opposite of what they perceived of a PSU employee). Normally females are not so demanding.
  • 6. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 15 Irrespective of gender debtors were also found to be agreed that EE-SPADR adopted by BSNL Indore is suitable for implementation in other PSUs where debt recovery has become a big problem. 6. CONCLUSION The present study has analyzed gender effect of debtors on Social Pressure Approach to Debt Recovery used by BSNL Indore. Findings of the study revealed that irrespective of gender male and female debtors have shown similar opinion towards attributes of Empowered Employee Social Pressure Approach to Debt Recovery (EE-SPADR) adopted by BSNL Indore. And all the null hypotheses were not rejected at 5% level of significance. However, some degree of difference in opinion of male and female respondents was revealed towards attributes of empowered employee based social pressure approach of debt recovery. Findings of the study can be incorporated for further implementation of Empowered Employee Social Pressure Approach to Debt Recovery (EE- SPADR) invented by BSNL for enhancing its effectiveness and for paving the path for its wider applicability in similar nature of other organizations. Table 3: Debtor Gender Wise Mean and Standard Deviation Towards Attributes of EE-SPADR Questionnaires Gender No of sample) Mean Std. Deviation Q1 Male 149 1.6309 .66117 Female 21 1.7143 .56061 Q2 Male 149 1.6242 .73039 Female 21 1.9048 .70034 Q3 Male 149 1.8926 .82315 Female 21 2.2381 .94365 Q4 Male 149 2.4899 .93446 Female 21 2.2381 .88909 Q5 Male 149 2.0403 .94354 Female 21 1.9048 .76842 Q6 Male 149 1.9597 .86117 Female 21 1.9524 .86465 Q7 Male 149 1.8255 .73274 Female 21 1.9048 .76842 Q8 Male 149 1.8725 .79940 Female 21 1.7619 .53896 Q9 Male 149 1.9396 .92436 Female 21 1.7619 .70034 Q10 Male 149 3.7450 1.03424 Female 21 4.0000 .44721 Q11 Male 149 1.7315 .77661 Female 21 1.8571 .65465 Q12 Male 149 1.9262 1.00736 Female 21 1.8571 .57321
  • 7. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 16 7. REFERENCES 1. Amita Goyal Chin and Hiren Kotak.2006. “Improving Debt Collection Processes Using Rule- Based Decision Engines: A Case Study of Capital One”. International Journal of Information Management, 26(1):pp. 81–88. 2. Chatterjee, Satyajit, Dean Corbae, Makoto Nakajima and Jose-Victor Rios-Rull. 2007. “A Quantitative Theory of Unsecured Credit with Risk of Default.” Econometrica 75(6): 1525– 1589. 3. Hunt, Robert M. 2007. “Collecting Consumer Debt in America.” Business Review Q2:11–24. 4. Livshits, Igor, James MacGee and Michele Tertilt. 2010. “Accounting for the Rise in Consumer Bankruptcies.” AEJ Macroeconomics 2(2):165–193. Joshi, Seema (2008), “Service Sector in India’s Economy: Performance, Problems and Prospects”, Country Paper submitted for “Study Meeting on Expansion and Development of the Services Industry in Asia”, organised by Asian Productivity Organization at Seoul, Republic of Korea, June 17-20, 2008. 5. Oliver Wyman, 2013, “Bad debt value management”, retrieved from on 26 Feb, 2014 http://www.oliverwyman.de/media/201304_POV_Bad_Debt.pdf. 6. TRAI (Telecom Regulatory Authority of India 2006) – “Guidelines on Debt Collection Outsourcing”, retrieved from www.trai.gov.in on 16 Feb, 2014. 7. Viktar Fedaseyeua and Robert Huntb, 2014, “THE ECONOMICS OF DEBT COLLECTION: ENFORCEMENT OF CONSUMER CREDIT CONTRACTS”, March 1, 2014, Ten Independent Mallb, Philadelphia, PA 19106-1574. www. Philadelphiafed.org/research-and- data. 8. Arvind Sahay and Nivedita Sharma Brand Relationships and Switching Behaviour for Highly Used Products in Young Consumers VIKALPA • VOLUME 35 • NO 1 • JANUARY - MARCH 2010. 9. Susan M. Keaveney, Madhavan Parthasarathy, “Customer Switching Behavior in Online Services: An Exploratory Study of the Role of Selected Attitudinal, Behavioral and Demographic Factors”, Journal of the Academy of Marketing Science. Vol 29, N0-4, pg 374-390, 2001. 10. Nita H. Shah, Digeshkumar B. Shah and Dushyantkumar G. Patel, “Optimal Shipments, Ordering and Payment Policies for Integrated Supplier-Buyer Deteriorating Inventory System with Price-Sensitive Trapezoidal Demand and Net Credit”, International Journal of Production Technology and Management (IJPTM), Volume 4, Issue 3, 2013, pp. 14 - 31, ISSN Print: 0976- 6383, ISSN Online: 0976 – 6391. 11. Sreekumar.D.Menon and Dr Baby M.D, “Customer Satisfaction of a Public Sector Telecom Company (BSNL) in Land Line”, International Journal of Management (IJM), Volume 3, Issue 3, 2012, pp. 62 - 71, ISSN Print: 0976-6502, ISSN Online: 0976-6510. ACKNOWLEDGEMENTS I am thankful to the staff of BSNL Indore for providing me feedback very readily. I am also thankful to my dearest wife Archana & daughter Ishita for encouraging me all the time during my research work. More than any one I am indebted to Dr Rajeev Shukla who has been my source of inspiration for all my research work and has guided me disregarding any inconvenience that I may have caused to him.
  • 8. International Journal of Electronics and Communication Engineering & Technology (IJECET), ISSN 0976 – 6464(Print), ISSN 0976 – 6472(Online), Volume 5, Issue 6, June (2014), pp. 10-17 © IAEME 17 BIOGRAPHIES Ganesh Chandra Pandey:- Mr. G C Pandey, born on 8th Jan 1958, obtained his BE Electrical in 1980 and M Tech degree in 1990 from MACT Bhopal under Barkatullah University Madhya Pradesh. He also passed Project Management Professional exam of PMI USA in 2009. He has undertaken many important assignments of Government of India overseas in Europe, Africa & Middle East. At present he is pursuing PhD from CV Raman University Chhatisgarh. Dr Rajeev Shukla:- Dr Rajeev Shukla graduated in Chemical Engineering from Government Engineering College Raipur in 1991. He completed is MBA from Pandit Jawahar Lal Nehru Institute of Business Management of Vikram University Ujjain in 1997. He obtained PhD degree in management from Pandit Jawahar Lal Nehru Institute of Business Management of Vikram University Ujjain in 2003. At present he is serving as Professor and Head of Business Management at Shri Vaishnav School of Business Management (Shree Vaishnav Institute of Technology and Science) Indore. He has served in the Industry for many years. He is a certified Energy Manager / Auditor by Bureau of Energy Efficiency (BEE), Ministry of Power, and Government of India. He has many important industrial Business Process Re-Engineering projects to his credit. Dharmendra kumar:- Dharmendra kumar obtained M. Tech. Degree in Electronics Design and Technology from Tezpur University, Tezpur, Assam in the year 2003.