July 2017 issue

i
GLOBAL JOURNAL OF
MULTIDISCIPLINARY AND
MULTIDIMENSIONAL STUDIES
Dr. N.M.Lall
B.com, M.A.(Eco), Ph.D.
FRAS (LONDON)
Patron
Dr. A.K.Jha
M.A.(Eco), Ph.D., PGDM
Managing Cum Chief Editor
Dr. Suresh Sachdeva Dr. Brajesh Mishra
M.A.(Eco), Ph.D., D.Lit., MBA MOT
Prof. of Economics HOD (OT)
Govt. SLP College Smt.K.P.P.I.P.O
Gwalior (M.P.) Annand (GUJRAT)
Editor Editor
ISSN No.2394-8965
SHRUTAAYUSH PUBLICATION
GREATER NOIDA

ii
Member of Editorial Board
----------------------------------------
Dr.V. D. Sharma
(M.Sc. M.A, B.Ed, PGDFM, Ph.D)
A Gandhian Professor,
Faculty of Management Studies & Ex Proctor
Gen. Secy, Rashtriya Shaikshik Mahsangh (University Campus)
VBS Purvanchal University Jaunpur-222003 (UP)
Dr. H.K.S.Kumar Chunduri
Sr. Faculty Member,
Department of Business Studies,
Ibra College of Technology, IBRA,
Sultanate of Oman
Dr. Violetta Gassiy
Associate professor,
Public administration department,
Kuban State Univer-sity, 149,
Stavropolskaya st., Krasnodar Russia
Prof (Dr) Ramesh Balkrishna Kasetwar (Retd Colonel)
PhD, MPM, BE(Elect), MIMA, FIE(India), Dip TQM
(Former Vice Chancellor)
Founder Trustee and CEO
Quality Plus, Pune 411040 (MS)
Vineet Jain,
Asstt. Prof. (Mechanical)
Amity University Haryana, Gurgaon
Dr. Rushiraj Upadhyay,
Asst. Professor, M.S.W Department,
Gujarat University, Ahmedabad
Deepak Pathak
Assistant Professor,
Mechanical Engg Dept., FET Agra College Agra
Mahendra N. UmareAssociate
Professor & HOD (Civil) at NIT, Nagpur
ROB WOOD
Department of Global Strategy & Management 2010
presentWestern Carolina University, Cullowhee, NC
Judi Krzyzanowski
B.Sc, M.SC., Environmental scientist
Dr. Vijay Pithadia,
PhD., MBA, Electronics Technician
Director & Professor, SHG MBA Women college, Amreli

iii
Dr. Dheeraj Pawar
Amity Institute of Telecom Engineering and Management,
Amity University, Noida
Raymond W. Thron, Ph.D
Faculty
College of Health Sciences, Walden University
Dr. Mwafaq M. Dandan
Associate Professor
Department of Banking and Financial Sciences
Amman University College for Banking and Financial and Sciences
Albalqa applied universityJordan
Professor (Dr) Rajesh Arora
Director
Dr D Y Patil Institute of Management Studies, Pune.
Dr. L. Govinda Rao,
PG in Mgt.(XLRI), Ph.D.,
Chairman & CEO,
Matrix Institute of Development Studies, Kameswari Kuteer,
Secunderabad 500 011 AP India.
Shailkh.Shoeb Anwer
Aurangabad
Dr.C.B.Singh,
Ph D, M A, (Economics), M Sc (Ag Eco.), MBA (FM, MM),
Associate Professor
Institute oF Economics & Finance
Bundelkhand University, Jhansi 284128 (UP) India
Dr. David Nickerson,
Distinguished Professor,
Department of Finance and Real Estate,
Rogers School of Management,
Ryerson UniversityToronto, Ontario M5B 2K3, Canada
Dr Dilip Kumar Vinnakota
Principal,
Govt Junior College SATHUPALLY
Khammam District, Telangana State
Steve Pyser
Fellow, Caux Round Table and Lecturer (PTL),
Rutgers University School of Business – Camden

iv
Bocar Samba Ba
(Research scholar Economics) 2 place viala, 34060 montpellier, France
Mahendra N. UmareAssociate
Professor & HOD (Civil) at NIT, Nagpur
Charles "Randy" Nichols, Ph.D.,
Louisville, KY, Professor of Management Author, Educator, Speaker
Shabnam Siddiqui,
FMS-WISDOM, Banasthali University,
P.O. Banasthali Vidyapith 304022Rajasthan, INDIA,
Monika Hudson, DM
Assistant Professor, Director,
Gellert Family Business Resource Center/
Public Service Internship Program,
University of San Francisco
Juan Carlos WANDEMBERG –
Ph.D. WANDEMBERG Sustainable Development Quito -
ROB WOOD
Associate - Graduate Faculty;
Department of Global Strategy & Management 2010
presentWestern Carolina University, Cullowhee, NC
Dr. Mohammed Rizwan Alam,
Assistant Professor
Marketing University Of Modern Science Dubai
Avil sinha
Fellow (ECONOMICS), IIM, Indore
Mary Manana
University of South Wales
Dr. Stefan Walter,
Heidenrod, Germany (Economics and Management)
C.H.Raj
Marketing professional Noida
Greg Benzmiller
Ph.D. MA, MBA Colorado Springs, CO 80919
Hazra Imran (PhD)
Post-Doctoral Fellow,
Funded by MITACS Elevate (Canada),
Athabasca University, Edmonton, AB, Canada
Indrajit Bandyopadhyay,
Registrar, Usha Martin Academy, Kolkata, India

v
Rijo Tom,
Asst. Professor , Dept. of ECE, Kalaivani College of Technology, Coimbatore
S.Praveen –
HR & Administration Executive – FDC International FZE (Dubai)
Anil kumar. S Hagargi,
Research scholar,
Dept of Management Studies and Research,
Gulbarga University,Gulbarga, Karnataka,
Ihor Yaskal,
PhD in Economics,
Yuriy Fedkovych Chernivtsi National University, Ukraine
Nilesh Borde,
Assistant Professor at Goa University
Dr. Kiran Mehta,
Associate Professor (Finance),
Chitkara Business School, Chitkara University
Dr. Renuka Sharma,
Associate Professor (Finance),
Chitkara Business School, Chitkara University
Pradeep Kumar
Owner ASPIRE OVERSEAS CO, Noida
Dr.prof.V.Raghu Raman,
Senior Faculty (Business Studies),
IBRA COLLEGE OF TECHNOLOGY, OMAN
PAZIENZA,
Department of Economics,
University of Foggia, Foggia, Italy
Dr. Tiyas Biswas,
Assistant Professor
Department of Business Administration
Bengal College of Engineering and Technology, Durgapur
Devanathan Elamparuthy
B.E.,M.B.A.,M.Phil.,P.G.D.P.E.,D.I.S.,(P.hd).,
Asst.Professor Business Administration, Annamalai University
MUFTI MD. IBRAHIM,
Faculty of Education
,Ahsanullah University of Science and Education.
Ahsanullah Teachers’ Training College,Dhaka

vi
SUDHASHREE PARVATI,
Lecturer,
Department of English,
Adi Keih College of Arts and Social Sciences,
Adi Keih, Zoba: Debub, State of Eritrea, N.E.Africa
Dr. SHAUKAT ALI,
M.Con., M.Phil., Ph.D.
Associate Professor and Head, Commerce Department.
Anjuman-I-Islam’s Akbar Peerbhoy College of Commerce & Economics,
University of Mumbai, Mumbai
Indrani Ganguly,
M.A. B.Ed. (Geography),
Principal of Shri Shikshayatan School., Kolkata.
Nagori Viral Y.,
Assistant Professor
GLS Institute of Computer Technology (MCA), Ahmedabad .
Dr. L. Govinda Rao,
PG in Mgt.(XLRI), Ph.D.,
Chairman & CEO,
Matrix Institute of Development Studies,
Secunderabad 500 011( A.P.) India

vii
Editorial
-------------
The current changes and challenges experienced by the
contemporary world have been an inspiration for us in elaborating
this new forum of discussions on the real world issues affecting or
having a meaningful impact on the different segment of society and
on our lives. This is an attempt of boldly and unrestrictedly
contributing to new Ideas through research findings and doing things
differently, thereby providing quality and value. Scholars, re-
searchers, young researchers worldwide are encouraged to join
efforts in find-ing solutions for the common issues raised by the
recent social and environ-mental changes. It aims to be a dialogue
between the scientific community and the citizens, as a testimony of
their concern to place the results of their work in the service of the
society. A new orientation in research policy is imperative to respond
to the new needs of the society to guarantee environ-mental
sustainability and economic growth in the knowledge society. The
purpose of the Global Journal of Multidisciplinary and
Multidimensional Studies is to make an area of free circulation of
ideas and knowledge, of sharing experience and finding effective
solutions for real-life problems, to under-stand their causes and
foresee the consequences. While the society needs and calls for
research, research needs to be accountable to society. To this end, the
journal publishes Research papers, survey, articles, research findings,
book reviews, and annotations of new books.
Dr.A.K.Jha
Managing and Chief Editor
GJMMS

viii
GLOBAL JOURNAL OF MULTIDISCIPLINARY
AND MULTIDIMENSIONAL STUDIES
Vol. 3 Issue No. 3 July- September 2017
1. A CRITICAL ANALYTSIS OF CORPORATE SOCIAL 1
RESPONSIBILITY AND ETHICS IN INDIN COMPANIES
KIRTI SHARMA & DR. POONAM GUPTA
2. A CONCEPTUAL STUDY BETWEEN THE WORK LIFE 13
BALANCE AND EMPLOYEE ENGAGEMENT
RUCHIKA DHAKA & DR. A.K.JHA
3. PHILOSOPHICAL APPROACH OF HRD PRACTICES IN INDIA 19
HARENDRA SINGH RAWAT & DR. P.K.AGARWAL
4. OPERATION AND RECENT DEVELOPMENT IN DTH TECHNOLOGY
VIJAY RAJ & DR. P.K.AGARWAL
5. STATUS OF MICROFINANCE IN SYANGJA DISTRICT 46
CHANDRA PRASAD DHAKAL & DR.A.K.JHA

1
A critical analysis of corporate social responsibility and ethics in
Indian companies
ISSN NO. 2394- 8965 GJMMS
Vol. – 3, Issue – 3, July-September-2017
A CRITICAL ANALYTSIS OF CORPORATE SOCIAL
RESPONSIBILITY AND ETHICS IN INDIN COMPANIES
KIRTI SHARMA
&
DR. POONAM GUPTA
Mewar University, Rajasthan, India
Abstract
Corporate Social Responsibility (CSR) has become popular all
over the sphere. In the developing countries like India, there are various
formal and informal ways in which a business can make a contribution
towards CSR practices. CSR can be regarded as a way by which the
companies are integrating their social, environmental and economic
concerns into their values, culture, strategy, decision making and
operations to improve the society and the society's wealth. With
deliberate and sincere efforts of the companies, they are attaining success
in achieving their corporate goals in terms of social development, and
are also able to enhance their corporate reputation. The ethical aspects
related to CSR have become more apparent due to globalization and laws
relating to social responsibilities and developments.
Ethics and Corporate Social Responsibility are recognized as
important concerns in making decision in all aspects of our life. And it’s
contributing to accelerate the process of overall development of a nation.
India being the second most populous country in the world, and have the
largest number of people in need of basic amenities call for more
intensive efforts as part of such initiatives in the health care space of the
nation. We all know that people engage in business to earn profit.
However, making profit is not the sole function of the business. It
performs number of social function as it is a part of society. It takes care
of those who are instrumental in securing its existence and survival.
Business ethics are nothing but the application of ethics in business. It
proves that business can be and have been ethical and still make profits.

Sharma
& Gupta 2
Today more and more interest is being given to the application
of ethical practices in business dealings and the ethical implications of
business. The research paper delves into a comprehensive understanding
of how Business Ethics and Corporate Social Responsibility involves as
concept and the reason that encourage company in India to be socially
responsible. The paper has also tried to give a thought to this present
fiery issue and to investigate some of the factors why is it happening to
the mankind, why they have turned so inhumane that social responsibility,
ethics are becoming the topics of discussion rather than their natural
flow in their lives.
INTRODUCTION
In any company, from the top management to employees at all
levels, ethics is considered as everybody„s business. It is not just only
achieving high levels of economic performance, but also to conduct one
of business„s most important social challenges, ethically. Ethics in
business is nothing but the do„s and don„ts by the business users in
business. It is based on a set of moral and ethical values. These values
must be absolute - that is, you must take them seriously enough to have
priority over any human rationalization, weakness, ego, or personal
faults. When all else fails, you will always look back to these core values
to guide you or take you through. Unfortunately, life is not that easy and
there's always disagreement about what values should reign supreme. A
moral or ethical statement may assert that some particular action of
certain kind is right or wrong, which may offer a distinction between
good and bad characters or dispositions; thereof, may propound some
principle from which more detailed judgments of these sorts might be
inferred – instance one ought to always aim at the general happiness or
try to minimize the total suffering of all sentient beings, or ... That it is
right and proper for everyone to look after himself. All such statements
express first order ethical judgments of different degrees of generality. If
we examine the current literature on ethics, the focus is on lines given by
philosophers, academics and social critics. However, leaders, managers
and engineers require more practical information about managing ethics.
Ethical management in the workplace holds tremendous benefit to all

3
Indian companies
including engineers, managers, organizations and society. This is
particularly true today when it is critical to understand and manage highly
diverse groups, with different values at the workplace and operating in
globalize economic conditions of Socrates and Plato guidelines for ethical
behavior. Ethics involves learning what is right or wrong, and then doing
the right thing -- but "the right thing" is not nearly as straightforward as
conveyed. Most ethical dilemmas in the workplace are not simply a
matter of yes or no, on situation? Business Ethics denotes not only how
the business interacts with the world at large, but also their one on-one
dealings with a single customer, resulting in the business justification in
terms of economic, ecological and social spheres. Today, we live in an
age where businesses and society are more connected and interactive than
ever before. The triple bottom line approach has been, and remains, a
useful tool for integrating sustainability into the business agenda. It has
now become imperative that sustainability forms an integral part of
strategic planning of contemporary business organization. To be precise,
ethics is considered to be the "Science of Conduct.‖ Ethics includes the
fundamental ground rules by which we live our lives. Philosophers such
as Socrates and Plato have given guidelines for ethical behavior. Many
ethicists consider emerging ethical beliefs to be legal principles, i.e., what
becomes an ethical guideline today is made into to a law, regulation or
rule. Therefore following law of the land is one of the basic virtues of
ethics. In fact, Values, which guide us how to behave, are moral values,
values such as respect, honesty, fairness, responsibility. Many of these
values are self-evident to the intuition of our higher nature. It is widely
acknowledged today that Gandhian philosophy, particularly Ganghi„s
Doctrine of Trusteeship played a pivotal role in the shaping of the
contours of modern corporate ethics.
SOURCES OF ETHICS
Genetic Inheritance: It is the genes present in body inherited by
parents that act as traits followed by the presence of ethics and values in a
person.

Sharma
& Gupta 4
Family: “Matru Devo Bhava”. House is the first school and
mother acts as the first teacher for every child. They learn what they see.
Morals are taught in the house by the parents especially mother.
Religion: religion binds people together. It enlightens us with the
knowledge, values and morals.
Philosophical System: They teach us the pleasure of being
good. They help us in developing an understanding for self actualization
and self realization.
Culture: The society within which one grows and develops
directly plays a big role in mounting ethical know-how.
Organization: Place from where one generates its lively hood
and opportunity to grow in professional life have a critical effect on value
building.
Legal System: Rules and regulations of the country from which
an individual belongs also play a source of ethic building in one‟s life.
CSR GAINS MOMENTUM
Indian Tradition of Ethics and Responsibility: Rigveda spreads
the dignified notion “let noble thoughts come from every side”
Loksamgraha (Gita) aims at working for good of all without any
proclivity to exclusively for your own sake or for the good of your own
people. It aims working for the benefit of whole community.

5
Indian companies
The great epic Ramayana exposes different characters depicting
values and ethics throughout their lives. Rama, Lakshmana, Bharat, Sita,
Hanuman and many others are the epitome of idealism and values.
Epic of Mahabharata is composed of numerous stories related to
the philosophy of human relations and their role in the society,
governance; judiciary etc.
Steps to be Ethical: “Act in a way you expect others to act
towards you.” It is not hard to be ethical, what is required is just to
understand ourselves, purity of spirit, sense and respect for their culture
and its values and love for nature and humanity. Managers face ethical
dilemma and challenges due to Globalization and work force diversity
Ethical judgment could be made with the help of Ethics analysis
and Ethics resolution. Ethic analysis is the rational step of moral
argumentation and dialogue designed to identify, interpret, prioritize, and
weigh the key resources for managing and resolving ethics conflict. Ethic
resolution is the rational step of meeting a firm justified decisions and
bringing ethics analysis to a final conclusion.
Business Ethics v/s Social Responsibility: Business ethics and
social responsibility are commonly used in everyday parlance almost
interchangeably. While social responsibility is self explanatory, ethics is a
word that puts one in a dilemma. Social responsibility looks clearly
defined and demarcated. Companies have a policy of social responsibility
known as corporate social responsibility whereby they commit to follow
their businesses in such a way so as to benefit the community at large.
But ethics is a loose term that is dependent upon a person‟s conscience.
There are certain differences between the two and the two are not
overlapping completely.
Business Ethics: Before moving to business ethics, we need to
spell out clearly the word ethics. Derived from ancient Greek word ethos,
ethics has come to mean moral character. Ethical behaviour is what is
good or right. Ethical senses always make use of good, bad, right and
wrong. Applying this definition to business, we come to a conclusion that
though the primary objective of any business or company is to maximize

Sharma
& Gupta 6
the profits to shareholders, stakeholders also need to be kept in
mind; they are directly or indirectly affected by the decisions taken by the
company for the operation of business.
Business ethics is the behavior of any business that it indulges in
its dealings with the community or society. For some, making money is
all they are interested in, and this is capitalism in its dirtiest form. These
people are least concerned with the bad effects of their business practices
and the harm they are doing to the society at large.
When companies do not engage in good business ethics, they are
penalized by the law. But such cases are rare and the profits of companies
engaging in unethical behavior are far more than these punitive fines.
Social Responsibility: Man is a social animal and cannot live in
isolation. He is expected to behave in a manner that is socially and
morally acceptable to others. The same applies to businesses. Though the
primary objective of any business is to earn maximum profits for the
owners and shareholders, it is also expected to conduct its operations in a
manner that it fulfils its social obligations also. For example, though it is
not binding on any private sector company to provide employment to the
disabled or weaker sections of the society, it is considered to be a part of
the social responsibility of the company to absorb people from such
sections of the society. Similarly though there is not written law to
compel a company to engage in acts to do something to reduce pollution
or to do something for the betterment of environment, taking up projects
to clean up environment are considered to be a part of the social
responsibility of the company.
ANALYSIS AND FINDINGS
Existing CSR Activities of some companies
ONGC CSR projects focus on higher education, grant of
scholarship and aid to deserving young pupils of less privileged sections
of society, facilities for constructing schools etc.
SAIL has taken successful actions in environment conservation,
health and medical care, education, self employment programmers, sports
and games etc.

7
Indian companies
BHEL has developed a CSR scheme and its mission statement on
CSR is "Be a committed Corporate Citizen, alive towards its CSR".
BHEL undertakes socio economic and community development
programmes to promote education, improvement of living conditions and
hygiene in villages.
Reliance Industries initiated a project named as “Project-
Drishti” to bring back the eyesight of visually challenged Indians from
the economically weaker sections of the society. This project has
brightened up the lives of over 5000 people so far. This project has also
creating awareness about the compelling need for eye donation
Mahindra & Mahindra launched a unique kind of ESOPs-
Employee Social Option in order to enable Mahindra employees to
involve themselves in socially responsible activities of their choice. It
also contribute under Mahindra Hariyali, Mahindra pride school,
Mahindra Education Trust. under Mahindra Hariyali, over one million
trees have been planted across the country, to increase the country green
cover.
Tata consultancy services is India‟s largest software service
company and has won the Asian CSR award for initiating community
development work and implementing various programs and devoting
leadership and sincerity as ongoing commitment in incorporating ethical
values.
Major focus of the company is on education sector. Company is
working upon literacy program that cares TCS designed computer based
literacy model to teach adults and this program is known as a adult
literacy program. Company also working upon environment policy and
has been developing environment friendly products and services.
Infosys: As a leading software company Infosys is into the
providing language and computer education. Company has special
program for unprivileged children by which company teaches them
various skills and change their outlook too. Company also donates carom,
chess board, chocolates etc. to the needy ones.CSR activity includes
Blood donation camp and Infosys foundation has been working in the

Sharma
& Gupta 8
sectors of health care, education, environment preservation and social
rehabilitation.
Wipro: Company has taken various initiatives to women
empowerment. Three main CSR activities include environment sector,
education sector and energy conservation.
ITC: ITC Limited (ITC) is among one of India's leading private
sector companies having a assorted portfolio of businesses. ITC is
working with the concept of „Triple bottom line‟ that will contribute to
the growth of economy, environment and social development. Major
focus area of the company is on raising agricultural productivity and
helping the rural economy to be more socially inclusive.
Maruti Suzuki a automobile industry works upon global
warming and global issues like climate change Company has been
strongly investing on environmental friendly products and manufacturing
best products for the society. Maruti Suzuki is working upon conserving
environment and preserving natural environment. Concept of reduce,
reuse and recycle has been promoted by company in all the
manufacturing units.
Gail ltd is largest state owned natural gas processing and
Distribution Company. It contributes towards corpus of GAIL charitable
and education trust, natural calamities or disaster, SC/ST minorities‟
population. Its objective is to satisfy its entire stakeholder. It participates
in an activity which is directly or indirectly benefits the communities. It
enhances the quality of life and economic well being of local population.
In Reliance the areas approximately of its organize plant areas in
Rosa, Sasan, Krishnapatnam, Chitrangi, Butibori, and the others, Reliance
Power has been actively concerned with the various social and
environmental organizations to address of the issue of sustainable growth
and social uplift. The Company discharge of its liability as a corporate
resident actively contributes to community welfare procedures or takes up
some societal initiatives each year. Reliance Power Ltd. has been almost
working with institutions and societal organizations and supporting of
their programs for its social development adult literacy, receiving of rural

9
Indian companies
society tree plantation schemes etc and it is includes strength education
and service.
IBM is a software company. Company is committed towards the
implementation of its environment policy, health services, provide
hygiene and safety work place to its employee.
Though business ethics and social responsibility seem to be
overlapping, there has always been a contradiction between the two.
Companies, though they are committed to be socially responsible for their
behavior have been found to be engaging in acts that cannot be called
ethical.
What is good for the society is sometimes not good for the
business, and what is good for the business is almost always not good for
the society.
If the society is conscious, it responds in such a way that
businesses are forced to behave responsibly. The same applies to the
administration and the judiciary of any country.
Selling of liquor and tobacco in any society is not against
business ethics though it may be against the principles of social
responsibility. The same applies to lotteries and gambling. But it is
certainly against business ethics as well as against social responsibility to
entice minors to engage in smoking and drinking.
McDonald: The impact of Corporate Social Responsibility has
been very much embraced by Mc Donald‟s and shows in a concrete way
the impact of such responsibility.
McDonald‟s is the world‟s largest chain of hamburger fast food
restaurants.
According to the McDonald Corporate Social Responsibility
website, McDonalds is all about taking action in order to achieve results.
They believe that it is vital to always keep open lines of communication
with customers and other key stakeholders. In 2007 McDonald‟s began a
sustainability project with the aim of improving conditions for farm
workers in the Florida tomato industry, they realized that these workers
and the land they still were all a vital part of the Mc Donald‟s industry,

Sharma
& Gupta 10
even though they were far removed from the actual burger outlets. This in
turn promotes good environmental practices in the land-based agricultural
supply chain and makes the farm a sustainable business, which in the
long term is of benefit to Mc Donald‟s. McDonald‟s purchase only 1.5%
of Florida‟s tomatoes annually, but their actions spread out like the
ripples from the stone thrown into a pond and have lead to industry-
leading grower standards that improved working conditions in other
farms in Florida and have made the farms a sustainable business. There
are other corporate bodies that were not involved in social responsibility
and are now becoming involved perhaps because of “corporate
accountability strategies by civil society groupings…can play a role in
altering the context, facilitating improvements in the way corporate
activities affect local workers/communities.”
Avon Cycle Limited : They adopted the responsibility to provide
healthcare solutions to poor and ignorant of India‟s rural population at
their reach. The Mata Kausalya Devi, Pahwa Charitable Hospital run by
the organization formulated a scheme titled 'Celebrated Female Child' to
inspire positive and enduring environment for society's all–consuming
passion for 'sons only' to end.
CONCLUSION AND RECOMMENDATIONS
From the limited experience over the last few years, some
lessons nonetheless emerge. Government introduce CSR because they
wants corporation to become more responsible for the society or for its
stakeholders itself. As we know, CSR offer real opportunities for the
corporations to contribute in various activities which directly or indirectly
help welfare of the society. Corporations are social entity so they must
take care of all stakeholders, it is vital for them to take charge of this
responsibility in efficient way so that all participant of corporation feel
satisfied. As we know corporates can't stand alone they also needs the
support of their society at large which is important for their development
and goodwill. Many large corporations now taking steps to improve their
environmental and social performance through the use of voluntary
initiatives such as codes of conduct, environmental certification and

11
Indian companies
reporting, social audits, fair trading schemes and social investment
programmes.
Samasta Jananaam Sukhino Bhavantu : It is the moral duty of
being a human being that our actions should be guided for the welfare of
the whole community. Many of the problems of the contemporary society
like domestic abuse, violence, crime, drug addiction, verbal
aggressiveness, suicide etc are the results of lack of ethics both
individually and society as a whole. When managers deal with poor work
habits, disrespect for authorities, employee sabotage, sexual harassment,
antisocial hostilities, all these can be viewed as results of lack of self
control. Sometimes anger arouse out by something unjust, mean,
intolerable or unworthy act and known as resentment. Such resentment is
caused basically due to unethical act or behavior of others. Time has
come to understand the fact that business can survive in long run only if
they ensure the well being of the society in which they activate their
functions. Thus we should avoid practicing unethical means.
Ethics and values are the most important aspect of every society
and society is developed by its members who further join organizations or
business world to exploit their potentialities. Thus how an organization
behaves (ethical or unethical) largely depends on its employees and
overall management. Religious and spiritual understanding helps us to be
ethical and developing a code of conduct accepted and respected by all.
REFERENCES
Tomba Singh, Sanjoy Singh, Ethics in Corporate Social
Responsibility, Journal of Business and Management, Volume 9, Issue 2
(Mar. - Apr. 2013), PP 16-21
Jose & Saurabh Saraf (2013),” “Corporate Sustainability
Initiatives Reporting:A study of India‟s most valuable companies”, Indian
Institute of Management Bangalore, Working paper no 428,September
2013.
Yasmin Begum R. Nadaf Shamshuddin M. Nadaf, Corporate
Social Responsibility: Issues Challenges and Strategies for Indian Firms,

Sharma
& Gupta 12
Journal of Business and Management. Volume 16, Issue 5. Ver. III (May.
2014), PP 51-56
Chandrakanta Sahoo (2011) “Corporate Social Responsibility:
Issues and controversies”, Journal of Business and Management Vol 3,
No 2, ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online),pp 1-4.
Akanksha Jain (2014) “The Mandatory CSR in India : A Boon or
Bane”, Indian Journal Of applied Research , Volume : 4, Issue : 1, pp
301-304.

19
Philosophical approach of HRD practices in India
PHILOSOPHICAL APPROACH OF HRD PRACTICES IN INDIA
Harendra Singh Rawat
And
Dr. P.K.Agarwal
Abstract
Over the years there has been a growing interest in the Fields of
HRD practices in Indian organization mainly due to prominent changes
in the organizational and socio-economic environment the period of time.
The main object of this paper is to analysis the philosophical approach
behind HRD practices.
Keywords: HRD, HRM, Market, Industry.
The changes in the market scenario have necessitated the Indian
industry to look inward for the development of human resources (HR). If
the Indian organizations are to develop and maintain their competitive
edge, the potential value of the employees needs to be increased by
enhancing and linking their skills and capabilities in tune with the
contemporary requirements of the market. Barney (1991) felt that firms
could develop strategic capability and, for attaining this, the strategic goal
will be to create firms which are more intelligent and flexible than their
competitors.
The human resource management (HRM) function has emerged
as one of the most important areas of organizational practice. It has not
been developed in isolation but rather in the context of industrial change
and economic development. The uniqueness of HR requires a totally
different type of attention from management. The HR function has the
characteristics that provide the greatest challenge as well as the
opportunity. A company‘s HR is fragile, relationships are deli-cate,
contributions are unpredictable, and stability is uncertain. Youndt (2000)
felt that since employees are free, within limits, to leave their firm, there
is a significant risk of organizations incurring an intellectual capi-tal loss
unless individual knowledge is transferred, shared, transformed, and

Rawat
& Agarwal 20
institutionalized. The crucial inputs to an organization include, among
others, its human resources. People bring to their jobs diversity of skills,
needs, goals, and expectations. Barney (1991) proposes that sustainable
competitive advantage is attained when the firm has a human resource
pool that cannot be imitated or substituted by its rivals. The employees
are socialized into the organization first by way of recruitment and then
through continuous functioning in the organization. According to
Schuller (2000), ―skills, knowledge, and competencies are the key factors
in determining whether the organizations and nations will prosper.‖
The interface between the individual and the organization is
critical to full utilization of human re-sources. The individual and the
organization establish a ‗psychological contract.‘ The individual member
expects to make contributions to the organization and receives certain
rewards in return. The organization provides certain rewards and expects
in return certain contributions from the individual. This interface can be
effectively handled with the help of HR planning, work analysis, career
development, leadership, job motivation, appraisal-reward process, and a
favorable organizational culture. As suggested by Spindler (1994),
psychological contract creates emotions and attitudes which form and
control behavior. Sims (1994) felt that balanced psychological contract is
necessary for a continuing, harmonious relationship between the
employee and the organization.
The idea that individuals are capable of development is founded
on the conviction that people are important and their involvement is
necessary for an organization to be effective. This conviction is translated
into practice through a variety of programmes that facilitate individual
development and lead to better adjustment with the environment. Thus,
human resources are a company‘s most valuable and strategic asset and
the focused involvement of the top management with institutionalized
leadership down the hierarchy is a pre-requisite to attract and retain
people. The patterns of work relationships at work reflect the HR
philosophy. The managers who are encouraged to follow the role model
of their seniors perpetuate the philosophy and practices of HR. In the
process of organizational socialization, they internalize the values and

21
attitudes of their leaders. The entire process is thus institutionalized.
Schein (1990) indicates that people identify with the visionary leaders —
how they behave and what they expect. Enterprise vision and mission will
not become a reality unless employees are involved and integrated with
the company‘s goals. HR provides the enabling work climate of the
organization comprising of managerial values, attitudes, and styles.
With the ‗license system‘ being replaced to a great extent by the
‗market system,‘ the new economic environment is primarily marked by
the freeing of shackles for entrepreneurship and economic growth. The
challenge of human resource development (HRD) practices would be to
create an environment of resilience which can successfully accommodate
and assimilate changes in systems, structures, technologies, methods, etc.
The pressures of change are most likely to be felt by those who have to
lead and manage the change process in such a volatile economic
environment. HRD would have the ability to attract and retain people and
is the key to manage this macro change—both in terms of pace and rate.
The change leaders would be confronted with the need to reorient culture,
thinking, and paradigms. The challenge is for the change agents to get
individuals who would have a sense of belonging and commitment to the
organization and who would welcome the impending changes. Hamel and
Prahalad (1991) contend that a firm would achieve competitive advantage
if it can obtain and develop human resources which would enable it to
learn faster and apply its learning more effectively than its rivals.
Managing in a turbulent environment is not easy and managers
are constantly looking for new concepts, tools, and techniques to help
them cope with the demand of accelerating change. There are 25 leading
management tools and techniques and according to an annual survey, the
average company used 11.8 of these tools in 1993, 12.7 in 1994, and 13
in 1997 (Micklethwait and Wooldridge,1996; Rigby, 1998).
Unfortunately, managers often find that the management tools that they
adopt are not magic bullets. A study by Rigby (1998) found that 77 per
cent of the executives reported that these tools promised more than they
delivered. This finding is consistent with other accounts of

Rawat
& Agarwal 22
implementation failure across the range of managerial innovations (e.g.,
reengineering, TQM) and technological innovations (e.g., flexible
manufacturing technologies, enterprise resource planning systems) where
failure rates are above 50 per cent. The result is that managerial
innovations become management fads which are tried and then
abandoned. These failures may be attributed to an organization‘s HR
practices and the underlying philosophy of management (Barley and
Kunda, 1992).
HRM DEBATE AND HR MODELS
The debate about HRM could be regarded as an outcome of the
current interest in corporate and business strategy. Strategic management
has assumed an overwhelming significance among practitioners partly as
a result of being heavily promoted in the management literature (Peters,
1988; Peters and Waterman, 1982). Mintzberg (1978) and Porter (1985)
have also contributed to the populism of the concept of strategy in the HR
lexicon. A number of researchers‘ abroad (Ichniowski, Delaney and
Lewin, 1989; Ichniowski, 1990; Huselid, 1993) and in India related a
comprehensive measure of HR practices to the firms‘ financial
performance (Rao, 1982; Rao and Pereira, 1987; Business Today, 1996;
Singh, 2000). The impact of HR practices on organizational level
outcomes such as productivity, turnover, performance, and profitability
was an important research issue in the early nineties. Most of the work
was undertaken to study the relationship between HR practices and firm
level out-comes like productivity, turnover, and market value (Becker and
Gerhart, 1996; Becker et al., 1997).
In the US, there are two opposing models of HR: the Harvard
model (Beer et al., 1985) which stresses on the developmental aspects of
HR and the Michigan model or the ‗matching model‘ (Fombrun, Tichy
and Devanna, 1984) emphasizing its utilitarian/instrumental functions in
the achievement of managerial objectives. Arguments made in related
research are that a firm‘s current and potential human resources are
important considerations in the development and execution of its strategic
business plan. This literature, although largely conceptual, concludes that

23
HRD practices can help create a source of sustained competitive
advantage.
The Harvard model is conceived as an analytical framework
which is premised on the view that if general managers develop a
viewpoint of how they wish to see employees involved in and developed
by the enterprise, they would solve most of the problems of HR.
Compared to the matching model, this model is termed as the ‗soft
variant.‘ It stresses on the human aspect of HR and is more concerned
with employer-employee relationship. It also highlights the interests of
different stakeholders in the organization, This model allows for multi-
level analysis of these outcomes. It can provide a useful basis for
comparative analysis of HRM (Poole, 1990). Such an approach is
completely missing in the matching model. The main criticism of this
model is that it does not explain the extensive relationship between
strategic management and HRM (Guest, 1991).
The Michigan model is based on the paradigms developed by
Chandler (1962) and Galbraith and Nathanson (1978). It is argued that an
organization‘s structure is an outcome of its strategy (Chandler, 1962).
This argument was extended by linking different personnel functions
such as career paths, rewards, and leadership styles to the organization‘s
mission (Galbraith and Nathanson, 1978).
The matching model has been criticized as being too prescriptive
by nature mainly due to the fact that its assumptions are too unitary
(Boxall, 1992). It emphasizes a ‗tight fit‘ between organizational strategy
and HR strategies and, while doing so, completely ignores the interest of
employees and hence considers HR as a totally passive, reactive, and
implementations function. The model‘s emphasis on tight fit makes the
organization inflexible and incapable of adapting to the required changes
and hence is a ‗misfit‘ in today‘s dynamic business environment. The
very idea of the model to consider and use human resources like any
other re-sources in an organization seems undramatic as it misses the
human aspect.

Rawat
& Agarwal 24
Despite many criticisms, the matching model pro-vides a good
framework to theory development in the field of HRM. It also provides a
promising schema to look at the HR practices in universal and generic
term. It, however, ignores the cultural processes.
The matching model and the Harvard analytical framework
represent two very different emphases — the former is closer to strategic
management literature while the latter to human relations tradition.
Some aspects of the basic philosophy of ‗soft HRM‘ can be
traced back to the writings of McGregor (1960) who, as mentioned by
Truss (1999), even used the terminology ‗hard‘ and ‗soft‘ to characterize
the forms of management control. McGregor‘s Theory X describes the
‗control‘ model of management (Walton, 1985) while Theory Y
emphasizes the importance of integrating the needs of the organization
and those of the individual — the principle of mutual trust again being
expressed by Walton (1985). The soft model of HRM traces its roots to
the Human Relations School. It involves ―treating employees as valued
assets, a source of competitive advantage through their commitment,
adaptability, and high quality of skills, performance etc.‖ (Storey, 1992).
HRM as a concept emerged in the mid-1980s with the efforts of the
writers of management of that decade including Pascale and Athos (1981)
and Peters and Waterman (1982) who listed the attributes which they
claimed as characterizing successful companies. The ‗school of
excellence‘ writers may have exerted some influence on management
thinking about the need for strong culture and commitment (two features
of HRM) but, they were ‗right enough to be dangerously wrong‘ (Guest,
1993).
It has, however, been observed that ―even if the rhetoric of HRM
is soft, the reality is often hard with the interests of the organization
prevailing over those of the individual‖ (Truss,1999). Gratton et al.
(1999) identified a combination of soft and hard HRM approaches in the
eight organizations studied.
The Western countries, especially the US, have done a lot of
empirical studies in the area of HR practices. In India, on the other hand,
no attempt has been made to systematically evaluate the extent of HRD

25
function orits components or practices, its expected impact on the
organization, and its internal working and support provided to it by the
management (Pareek, 1997). In an era of competitive market,
implementation of HRD practices without extensive empirical studies
may turn out to be disastrous for the Indian organizations.
MANAGERIAL PHILOSOPHIES
The managerial philosophy is based upon the top management‘s
assumption about people working in the organization. Whether managers
are aware of these assumptions or not, they decide how to deal with their
superiors, peers, and subordinates. In the words of Schein (1970), the
kinds of assumptions a manager makes about the nature of people will
determine his managerial strategy and his concept of the psychological
contract between the organization and the employee. Schein (1970) also
felt that the tradition of philosophy of management underlies the doctrine
of rational-economic man derived originally from the philosophy of
hedonism which argued that man calculates the actions that will
maximize his self-interest and behaves accordingly. The economic
doctrine of Adam Smith which was built on this assumption led to the
theory that relationships in the market-place between organizations and
customers or buyers should be left alone because the separate pursuits of
self-interest would regulate market relationships. The ideas of Adam
Smith propounded in his Wealth of Nations have served for about two
hundred years as the basis of our capitalistic system.
The modern philosophy of management is based upon an
optimistic view of the nature of men and women. They are considered to
be potentially creative, trustworthy, and cooperative. McGregor (1960)
has labelled this managerial philosophy as ‗Theory Y.‘ The traditional
managerial view that the average human being working in an
organization has an inherent dislike for work, avoids responsibility, lacks
ambition, and wants to be closely directed is termed ‗Theory X.‘ Faced
with this fundamental ‗fact,‘ the only option open to management is to
exercise close control and to coerce and threaten people working in the
organization in order to attain the organizational objective. A basic tenet

Rawat
& Agarwal 26
of the traditional point of view is that the authority of the employer is
supreme, is synonymous with power, and that authority comes from the
top and is transmitted down through the organization structure. Control is
exercised through command. The power and the right to make decisions
must be centralized at the top.
‗Theory Y‘ holds that all motives — economic, social, egoistic
— must be activated. The employee is highly motivated to work when he
derives satisfaction from doing it himself. Emphasis is placed upon
activating the higher needs such as responsibility, recognition,
achievement, and innovation. People are taught to accept responsibility
and exercise self-control. The philosophy of management reflects the
attitude of the top management towards the human resource of an
organization.
Argyris (1964), McGregor (1960), and others felt that the jobs in
modern industry are so specialized that they neither permit the people
working in the organization to use their capacities nor enable them to see
the relationship between the job done by the human beings working in the
organization and the overall organizational mission. In the self-
actualizing man theory, the contract involves the exchange of
opportunities to obtain intrinsic rewards (satisfaction from
accomplishment and the use of one‘s own capacities) for high-quality
performance and creativity. Herzberg, Mausuer and Snyderman (1959)
found that the self-actualizing man felt good about his job which
invariably had to do with accomplishments and feeling of growth in job
competence. Pelz and Andrews (1962) confirmed the findings that
productivity and creativity are strongly related to challenge, job
accomplishment, and autonomy.
In summary, the assumptions underlying the concept of self-
actualizing man emphasize on higher order needs for autonomy,
challenge, and self-actualization. Such needs exist in all men and become
active as lower order security and social needs come to be satisfied.
Organizations and managements have both tended towards a
simplified and generalized conceptualization of man. Consequently,
many decades of research has resulted in vastly complicated models of

27
man and attitude of the management towards the human resources of the
organization. Schein (1970) felt that man is a more complex individual
than the rational-economic, social or self-actualizing man. Not only is he
more complex within self, being possessed of many needs and potentials,
but is also likely to differ from others in the patterns of his own
complexity. It has always been difficult to generalize about man.
The top management of an organization makes assumptions
about the human resources. Managerial effectiveness will depend on the
degree to which these assumptions fit empirical reality. Historically, the
assumption about people in organizations largely reflected philosophical
positions on the nature of man. On the one hand, there is a genuine
interest in human beings and, on the other; there are fears about the
consequences of human growth and deep pessimism about human beings
changing their behavior.
Tannenbaum and Davis (1969) do see a trend to-wards
acceptance of ‗Theory Y‘ as a philosophy of management. They assert
that growing evidence sug-gests that humanistic values not only resonate
with an increasing number of people but are also highly consistent with
the effective functioning of organizations built on the newer organic
model.
Hofstede (1987), who surveyed employees from 50 countries,
suggests that American management theories are not universally
applicable. He points out that McGregor‘s ‗Theory X‘ and ‗Theory Y‘
reflect the American‘s cultural emphasis on individualism and hence do
not apply in South East Asia. According to him, people in South East
Asia behave as members of a family and/ or group and those who do not
are rejected by the society. Haire, Ghiselli and Porter (1966) found that
the Indian managers report the highest degree of fulfilment of security
needs as compared to the managers in any other country; the lowest
degree of fulfilment of esteem and autonomy needs; and the second
lowest fulfilment of self-actualization needs in comparison with managers
from all the other 13 countries. This points to the fact that people working
in the Indian organizations are in the category of ‗Theory X.‘

Rawat
& Agarwal 28
The liberalization, privatization, and globalization of the Indian
economy has resulted in a competitive market economy. The need of the
hour is to attract high level of initiative and innovation. Before recasting
the philosophies and practices, there is a need to understand the
philosophy of management of Indian organizations. The initial stimulus
came from the realization that the paternalistic philosophy of
management in the past gave little momentum for growth in future.
Managements had developed plans for growth but they have now realized
that they had not developed the attitudes and skills within them to take
initiatives, make decisions, and take risks (Theory Y).
While there is empirical evidence of relationship between the
philosophy of management and organizational culture, in the Indian
context, one finds little evidence of research on the relationship between
the philosophy of management and HR practices. It is in this context that
this paper examines the relationship be-tween HRD practices and the
philosophy of management. In other words, it explores the impact of
HRD practices on the philosophy of management and, at the same time,
maps the attitude of the management to-wards employees working in the
private and the public sector organizations.
HRD PRACTICES AND MANAGEMENT PHILOSOPHY
IN INDIA
The objectives of this study are to:
1) Examine the assumptions of the top management about
the people working in the organization
2) Understand the social organization through HRD belief
and the philosophy of management in the organization
3) Examine the nature of differences in the philosophy of
management subscribed to by the organization towards employees
working in the public and the private sector
4) Examine the nature of relationship between HRD
practices represented by planning, recruitment, se-lection, performance
evaluation, training and development, career management and rewards
5) and the philosophy of management in the private and the
public sector organizations.

29
We hypothesize that HRD practices in terms of planning,
recruitment, selection, performance evaluation, training and development,
career management, and rewards are significantly related to the
philosophy of management.
Measures
Measure of Human Resource Development Practices
For the purpose of measuring HRD practices, the questionnaire
developed by Gordon (1986) was used. The questionnaire was
standardized and spilt half reliability was calculated to be 0.81. It
consisted of 69 items including the following variables:
Human resource planning: The items focused on the process of
analyzing an organization‘s human resource needs and developing the
activities necessary to satisfy these needs under changing conditions.
Recruitment: The items focused on identifying and attracting
candidates for current and future jobs.
Selection: The items focused on obtaining employees who are
most likely to meet the desirable standards of performance.
Training and development: The items related to the set of
activities designed to increase an individual‘s skills, knowledge or change
an individual‘s attitudes to pre-paring individuals to assume higher level
or different responsibilities.
Performance evaluation: The items focused on measuring and
evaluating an employee‘s past performance against a standard of
performance.
Career management: The items related to the process of
designing and implementing goals, plans, and strategies to satisfy the
organizational needs while allowing individuals to achieve their career
goals.
Rewards: The items focused on repaying equitably for a service
based on the quality of service.
Measure of Philosophy of Management
The management belief questionnaire examined the theory and
beliefs of managers regarding the top management‘s philosophy on

Rawat
& Agarwal 30
people working in the organizations. Haire, Ghiselli, and Porter
developed this questionnaire in 1966 and surveyed the attitudes of 3,000
managers in 14 different countries across the world. This questionnaire
consisting of eight items is used in this study to examine the philosophy
of management to-wards people working in the organizations.
The questionnaire probed four areas of management belief
system:
1) Belief in individual‘s innate capacity for initiative,
individual action, and leadership
2) Belief in the value of sharing information and objectives
3) Belief in participative management
4) Belief that individual control should be by self-control
rather than control by supervisors.
Characteristics of Organizations Studied
The sample consisted of 214 participants working in four
different organizations — two belonging to the public sector and two
belonging to the private sector (see Box for a profile of the
organizations). There were 95 respondents from the private sector
organizations (Organization ‗A‘ and Organization ‗C‘: 54+41) and 119
from the public sector organizations (Organization ‗B‘ and Organization
‗D‘ = 68+51).
All the organizations in the sample were either listed in Group A
of the Bombay Stock Exchange or contributed significantly to the
development of the nation. At the time of selection, all the companies
were profit-making organizations. The sample size consisted of
executives in various positions (right from entry level to top position).
We collected the data personally and also by mail using non-probability
incidental sampling with an assurance that information obtained would be
kept confidential. The sample size comprised of all management levels
but most of the respondents were from middle level management with an
assumption that they would possess an accurate perception of HRD
practices employed in their organizations. The sample also included other
departments such as production, marketing, finance, HRD, etc. The
purpose of including managers other than the HRD function was to get an

31
honest account of HRD practices in their organizations; it was felt that
their personal involvement in policy formulation would be much less than
the HRD department.
RESULTS AND DISCUSSION
We analyzed the data and computed the correlations considering
that our main objective was to examine the nature of relationship between
various aspects of HR practices and the philosophy of management. The
findings are presented in Tables 1 and 2.
Table 1: Correlations between HRD Practices and the
Philosophy of Management for the Private Sector
Variables Philosophy of Management
Planning -.23
Recruitment -.23
Selection -.23
Performance evaluation -.07
Training and development -.24*
Career management -.11
Rewards - 27*
No. of cases = 95.
*1-tailed significance = -.01
Table 2: Correlations between HRD Practices and the
Philosophy of Management for the Public Sector
Variables Philosophy of Management
Planning .09
Recruitment .15
Selection .19
Performance evaluation -.01
Training and development -.16
Career management -.02
Rewards .17
No. of cases =119

Rawat
& Agarwal 32
The perceived negative correlation of philosophy of management
with HRD practices showed that the private sector organizations still had
belief in ‗Theory X‘ of McGregor. In the fast changing scenario of the
Indian economy, especially after liberalization and globalization, it is a
cause for concern that Indian private sector organizations still have faith
in ‗Theory X.‘
The philosophy of management projected a blurred picture in the
public sector organizations. Though the top management‘s views and the
balance sheet emphasized the belief of the organization towards ‗Theory
Y,‘ the response showed that the management philosophy was not clear to
managers working in the organization.
Contrary to the hypothesis, the results showed that there was no
significant relationship between the variables of HR practices and the
philosophy of management in the public sector organizations whereas, in
the private sector, the variables of HR practices, particularly training and
development and rewards, were highly but negatively related to the
philosophy of management. Thus, the hypothesis has been partially
proved by this study.
The issue of HRM practices in large business organizations was
explored in this study to determine whether organizations were practising
traditional or modern philosophy of management. The findings pertaining
to private sector organizations reflected that Indian organizations were
practising traditional philosophy of management. The traditional
philosophy of management depends primarily upon economic motivation,
i.e., ‗the carrot and stick‘ policy — the rewards go to the performers who
are retained and promoted while those who are less efficient are not
rewarded and, at times, demoted, laid off or discharged.
The results are paradoxical: on the one hand, while managers
believed in shared objectives, participation, and individual control, yet
they tended to have serious doubts about the capacity to demonstrate
initiative, individual action, and leadership.
The top managers of the public sector and their public documents
show belief in modern philosophy of management; however, the survey
results project a blurred picture of the philosophy of management. It has

33
also been observed by Micklethwait and Wooldridge (1996) that
managers often find themselves ―living in dual world: the real world and
the world of officially sanctioned ideology. Thus, they talk about
‗empowerment‘ but habitually hoard power or they proclaim that they are
‗reengineering‘ their organizations when they are really just firing a few
of the lackluster workers.‖
Haire, Ghiselli and Porter (1966) suggested that managerial
beliefs can be better understood by having knowledge of cultural
traditions. They felt the need to consider both economic and cultural
traditions as they were broadly taken as determinants of managerial
philosophies, values, and the concept of man.
Looking back, the origins of the modern Indian organization can
be traced to the British rule. The British were the first to introduce the
Western type of administration in India. The belief that the colonizers are
superior to the colonized on the scale of social evaluation is part of the
colonial psychology which legitimizes colonial rule and coercive ways of
dealing with those ruled (Nandy, 1982). This psychology requires the
rulers to maintain their distance and yet keep a close control over the
ruled lest the latter defy their authority. Hence, emotional aloofness
combined with high control of subordinates characterized the British style
of Indian management. This was the model that Indian managers
inherited from the British (Sinha, 1990).
On the other side of the parallel stream emerged a contrary trend
particularly after the opening up of the economy. It provided conditions
where the outward-looking market-oriented globalized economy
constituted the bulwark of economic transition. The Indian organization
could compete in the global market in which maximum utilization of
human resource is possible by adopting the modern philosophy of
management. In this era of globalization, organizations will have to deal
with the convergence of technologies and a mature set of customers and
employees.

Rawat
& Agarwal 34
Organizations would have to design managerial philosophy
which is sensitive to human existence. The managerial philosophy in the
organization has an impact on the organizations of the future. HR
concepts that get packaged along with modern managerial philosophy are
likely to revolutionize the workplace. The bottom line is that people want
to be cared for and respected. On their part, organizations want
commitment and integrity. A successful combination of committed
people and a benevolent organization would be beneficial in the long run.
This is possible only if organizations adopt HR practices with modern
managerial philosophy.
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Argyris, Chris (1964). Integrating the Individual and the
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Barley, S R and Kunda, G (1992). ―Design and Devotion:
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Becker, B E and Gerhart, B (1996). ―The Impact of Human
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35
Fombrun, C J, Tichy, N M and Devanna, M A (1984).
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Raj & Agarwal
36
OPERATION AND RECENT DEVELOPMENT IN DTH
TECHNOLOGY
Vijay Raj
And
Dr. P.K.Agarwal
Abstract
Direct to home technology refers to the satellite television
broadcasting process which is actually intended for home reception. This
technology is originally referred to as direct broadcast satellite (DBS)
technology. The technology was developed for competing with the local
cable TV distribution services by providing higher quality satellite
signals with more number of channels.
This paper described the needs that demand continued
development of DTH, and explains some background on who is involved
and what is currently happening in bringing DTH world DTH has made
the hopes of the people of rural areas to come true. In near future, launch
of DTH internet service is expected in our country. It provide the wide
thinking of rural people which helps to develop the culture of society
DTH connects to every part of the country and provides desire
information communication, education and entertainment to next
level with just a click of a button.
INTRODUCTION
Direct to home technology refers to the satellite television
broadcasting process which is actually intended for home reception. This
technology is originally referred to as direct broadcast satellite (DBS)
technology. The technology was developed for competing with the local
cable TV distribution services by providing higher quality satellite signals
with more number of channels.
In short, DTH refers to the reception of satellite signals on a TV
with a personal dish in an individual home. The satellites that are used for
this purpose is geostationary satellites. The satellites compress the signals
digitally, encrypt them and then are beamed from high powered

37
Operation and recent development in DTH technology
geostationary satellites. They are received by dishes that are given to the
DTH consumers by DTH providers.
Though DBS and DTH present the same services to the
consumers, there are some differences in the technical specifications.
While DBS is used for transmitting signals from satellites at a particular
frequency band [the band differs in each country], DTH is used for
transmitting signals over a wide range of frequencies [normal frequencies
including the KU and KA band]. The satellites used for the transmission
of the DTH signals are not part of any international planned frequency
band. DBS has changed its plans over the past few years so as to include
new countries and also modify their mode of transmission from analog to
digital. But DTH is more famous for its services in both the analog and
digital services which includes both audio and video signals. The dishes
used for this service is also very small in size. When it comes to
commercial use, DBS is known for its service providing a group of free
channels that are allowed for its targeted country.
WHAT IS DTH
DTH stands for Direct-To-Home television. DTH is defined as
the reception of satellite programmers with a personal dish in an
individual home. DTH does away with the need for the local cable
operator and puts the broadcaster directly in touch with the consumer.
Only cable operators can receive satellite programmers and they then
distribute them to individual homes.
DTH – HOW IT WORKS
Early satellite TV viewers were explorers of sorts. They used
their expensive S-Band, then C-Band dishes to discover unique
programming that wasn‘t necessarily intended for mass audiences. The
dish and receiving equipment gave viewers the tools to pick up foreign
stations, live feeds between different broadcast stations and a lot of other
stuff transmitted using satellites.
Some satellite owners still seek out this sort of programming on
their own, but today, most satellite TV customers in developed television
markets get their programming through a direct broadcast satellite (DBS)

Raj & Agarwal
38
provider, such as DISH TV or the recently launched Doordarshan DTH
platform. The provider selects programs and broadcasts them to
subscribers as a set package. Basically, the provider‘s goal is to bring
dozens or even hundreds of channels to the customer‘s television in a
form that approximates the competition from Cable TV. Unlike earlier
programming, the provider‘s broadcast is completely digital, which
means it has high picture and stereo sound quality.
Early satellite television was broadcast in C-band - radio in the
3.4-gigahertz (GHz) to 7-GHz frequency range. Digital broadcast satellite
transmits programming in the Ku frequency range (10 GHz to 14GHz).
There are five major components involved in a direct to home (DTH)
satellite system: the programming source, the broadcast center, the
satellite, the satellite dish and the receiver.
Fig. working procedure of DTH
i. THE COMPONENT
Programming sources are simply the channels that provide
programming for broadcast. The provider (the DTH platform) doesn‘t
create original programming itself; it pays other companies (HBO, for
example, or ESPN or STAR TV or Sahara etc.) for the right to broadcast
their content via satellite. In this way, the provider is kind of like a broker

39
between the viewer and the actual programming sources. (Cable
television networks also work on the same principle.)
The broadcast center is the central hub of the system. At the
broadcast center or the Play out & Uplink location, the television provider
receives signals from various programming sources, compresses I using
digital compression, if necessary scrambles it and beams a broadcast
signal to the satellite being used by it.
The satellites receive the signals from the broadcast station and
rebroadcast them to the ground. The viewer‘s dish picks up the signal
from the satellite (or multiple satellites in the same part of the sky) and
passes it on to the receiver in the viewer‘s house. The receiver processes
the signal and Passes it on to a standard television. Let‘s look at each step
in the process in greater detail.
ii. THE PROGRAMMING
Satellite TV providers get programming from two major sources:
International turnaround channels (such as HBO, ESPN and CNN, STAR
TV, SET, B4U etc.) and various local channels (SaBe TV, Sahara TV,
Doordarshan, etc.). Most of the turnaround channels also provide
programming for cable television, so sometimes some of the DTH
platforms will ad in some special channels exclusive to itself to attract
more subscriptions. Turnaround channels usually have a distribution
center that beams their programming to a geostationary satellite. The
broadcast center uses large satellite dishes to pick up these analog and
digital signals from several sources.
iii. THE BROADCAST CENTER
The broadcast center converts all of this programming into a
high-quality, uncompressed digital stream. At this point, the stream
contains a vast quantity of data — about 270 megabits per second (Mbps)
for each channel. In order to transmit the signal from there, the broadcast
center has to compress it. Otherwise, it would be too big for the satellite
to handle. The providers use the MPEG-2 compressed video format —
the same format used to store movies on DVDs. With MPEG-2
compression, the provider can reduce the 270-Mbps stream to about 3 or

Raj & Agarwal
40
10 Mbps (depending on the type of programming). This is the crucial step
that has made DTH service a success. With digital compression, a typical
satellite can transmit about 200 channels. Without digital compression, it
can transmit about 30 channels.
At the broadcast center, the high-quality digital stream of video
goes through an MPEG-2 encoder, which converts the programming to
MPEG-2 video of the correct size and format for the satellite receiver in
your house.
iv. ENCRYPTION & TRANSMISION
After the video is compressed, the provider needs to encrypt it in
order to keep people from accessing it for free. Encryption scrambles the
digital data in such a way that it can only be decrypted (converted back
into usable data) if the receiver has the correct decoding satellite receiver
with decryption algorithm and security keys. Once the signal is
compressed and encrypted, the broadcast center beams it directly to one
of its satellites. The satellite picks up the signal, amplifies it and beams it
back to Earth, where viewers can pick it up.
v. THE DISH
Fig : The dish
A satellite dish is just a special kind of antenna designed to focus
on a specific broadcast source. The standard dish consists of a parabolic
(bowl-shaped) surface and a central feed horn. To transmit a signal, a
controller sends it through the horn, and the dish focuses the signal into a

41
relatively narrow beam. The dish on the receiving end can‘t transmit
Information; it can only receive it. The receiving dish works in the exact
opposite way of the transmitter. When a beam hits the curved dish, the
parabola shape reflects the radio signal inward onto a particular point, just
like a concave mirror focuses light onto a particular point. The curved
dish focuses incoming radio waves onto the feed horn.
In this case, the point is the dish‘s feed horn, which passes the
signal onto the receiving equipment. In an ideal setup, there aren‘t any
major obstacles between the satellite and the dish, so the dish receives a
clear signal.
In some systems, the dish needs to pick up signals from two or
more satellites at the same time. The satellites may be close enough
together that a regular dish with a single horn can pick up signals from
both. This compromises quality somewhat, because the dish isn‘t aimed
directly at one or more of the satellites. A new dish design uses two or
more horns to pick up different satellite signals. As the beams from
different satellites hit the curved dish, they reflect at different angles so
that one beam hits one of the horns and another beam hits a different
horn.
The central element in the feed horn is the low noise block down
converter, or LNB. The LNB amplifies the signal bouncing off the dish
and filters out the noise (signals not carrying programming). The LNB
passes the amplified, filtered signal to the satellite receiver inside the
viewer‘s house.
vi. THE RECEIVER
The end component in the entire satellite TV system is the
receiver. The receiver has four essential jobs:
1. It de-scrambles the encrypted signal. In order to unlock
the signal, the receiver needs the proper decoder chip for that
programming package. The provider can communicate with the chip, via
the satellite signal, to make necessary adjustments to its decoding
programs. The provider may occasionally send signals that disrupt illegal

Raj & Agarwal
42
De-scramblers, as an electronic counter measure (ECM) against illegal
users.
2. It takes the digital MPEG-2 signal and converts it into
an analog format that a standard television can recognize. Since the
receiver spits out only one channel at a time, you can‘t tape one program
and watch another. You also can‘t watch two different programs on two
TVs hooked up to the same receiver. In order to do these things, which
are standard on conventional cable, you need to buy an additional
receiver.
3. Some receivers have a number of other features as well.
They pick up a programming schedule signal from the provider and
present this information in an onscreen programming guide. Many
receivers have parental lock-out options, and some have built-in Digital
Video Recorders (DVRs), which let you pause live television or record it
on a hard drive.
4. While digital broadcast satellite service is still lacking
some of the basic features of conventional cable (the ability to easily split
signals between different TVs and VCRs, for example), its high-quality
picture, varied programming selection and extended service areas make it
a good alternative for some. With the rise of digital cable, which also has
improved picture quality and extended channel selection, the TV war is
really heating up. Just about anything could happen in the next 10 years
as all of these television providers battle it out.
RECENT DEVELOPMENTS
With the advent of HDTV many changes took place in DTH
world, to understand it we should learn about HDTV
1. HDTV
HDTV Stands for "High Definition Television." HDTV is a
high-quality video standard developed to replace older video formats
often referred to as SDTV (standard definition television). While HDTV's
video quality is one of the most noticeable improvements over SDTV,
HDTV includes a number of other important improvements as well.
First of all, the HDTV signal is digital. Instead of an analog
signal, used by traditional NTSC broadcasts, HDTV is always digital.

43
This eliminates analog interference caused be electrical currents and
magnetic fields. Secondly, HDTV uses a different aspect ratio than
SDTV. While previous broadcasts used a 4:3 ratio (4 units wide for every
3 units tall), HDTV uses a ratio of 16:9. This wider aspect ratio more
closely emulates how humans see the world, making the image appear
more realistic. This ratio is also better for watching widescreen movies,
which are recorded in widescreen for the same reason. [5]
True to its name, high definition television offers a much higher
resolution than standard definition video. While a typical analog
broadcast in the U.S. contains a maximum of 525 horizontal lines of
resolution, an HDTV signal supports up to 1080. The three formats used
by HDTV are 1080i (interlaced), and 720p and 1080p (progressive).
HDTV's higher resolution produces images that are much finer and
contain more detail and more color than previous formats. HDTV also
provides a higher- quality digital audio signal than SDTV and supports up
to six audio channels compared to the two channels allowed previously.
To watch HDTV, you need an HDTV-compatible television and
a means of receiving an HDTV signal. HDTVs come in both 16:9 and 4:3
formats (for backwards compatibility). Some HDTVs include HDTV
tuners for receiving over-the-air broadcasts, but others require the
receiver to be bought separately. Fortunately, most cable and satellite TV
companies offer HDTV-compatible boxes with their digital service plans.
2. Pause/Record/Rewind live TV:
This makes the DTH more interesting. One of the biggest
benefits of the Advanced HDPVR is that you can pause and rewind live
TV. It really makes the most of your viewing experience. You can choose
to record at any time and if you have been watching from the beginning,
the complete program will be added to the PVR list. Live program
recording when you turn on your TV, your Advanced HDPVR will start
recording your current channel. The recording will be saved to a special
temporary part of the disk, allowing you to rewind or pause. you can save
the program you are watching to your PVR list, by simply pressing
RECORD. Your program will be stored in hard disk/USB provided for

Raj & Agarwal
44
storage DTH companies provide these services at no extra cost. You just
have to buy a set top box with storage capacity which is a bit costly.
3. 3D TV
3D television (3DTV) is television that conveys depth perception
to the viewer by employing techniques such as stereoscopic display,
multi-view display, 2D-plus-depth, or any other form of 3D display. Most
modern 3D television sets use an active shutter 3D system or a polarized
3D system, and some are auto stereoscopic without the need of glasses
Many DTH services are beginning to introduce the 3D channels also.
4. Internet through DTH
Satellite internet is very popular in the US and some parts of
European countries hilly areas where setting up lines is expensive and
time consuming. It could be a boon for India if implemented properly .
5. Advent of 4k TV:
Technically speaking, 4K denotes a very specific display
resolution of 4096 x 2160. This is the resolution of all 4K recordings,
though many people use 4K to refer to any display resolution that has
roughly 4000 horizontal pixels. Ultra HD TVs have a resolution slightly
lower than that - 3840 x 2160. That's exactly four times higher than the
full HD resolution of 1920 x 1080. U.K. pay television provider
BSkyB successfully demonstrated what it claims was the
world‘s first satellite broadcast done in 4K resolution. The event took
place Aug. 31 and featured coverage of a soccer game between two
British teams, Stoke City and West Ham. The match was linked via
satellite to BSkyB‘s main office and broadcasting
facility located in Osterley
VIII. CONCLUSION
This paper described the needs that demand continued
development of DTH, and explains some background on who is involved
and what is currently happening in bringing DTH world DTH has made
the hopes of the people of rural areas to come true. In near future, launch
of DTH internet service is expected in our country. It provide the wide
thinking of rural people which helps to develop the culture of society
DTH connects to every part of the country and provides desire

45
information communication, education and entertainment to next
level with just a click of a button.
REFERENCES
[1] Raychaudhuri, Dipankar, et al. "An HDTV compression
system." U.S. Patent No. 5,122,875. 16 Jun. 1992.
[2] Benzie, Philip, et al. "A survey of 3DTV displays:
techniques and technologies."Circuits and Systems for Video
Technology, IEEE Transactions on 17.11 (2007): 1647-1658

Dhakal
& Jha
46
Status of Microfinance in Syangja District
Chandra Prasad Dhakal
&
Dr.A.K.Jha
Mewar University, Chittorgarh
Abstract
Microfinance is one of the integral parts of formal
financial system that provide financial access to poor,
marginalized and women. It appears as main tool of new way of
economic development in south Asia including Nepal,
Bangaldesh and India. The study focuses on the status of
microfinance in Sayngja district, western hill area of Nepal.
Before two decade ago microfinance had been started limited
parts of Syangja district now that spread all households of the
district it brings positive change among people. This paper
analyzes the status of microfinance in the study area on the basis
of the perception of people who have taken benefit from
microfinance. More than that, the paper analyzes the current
scenario of the microfinance in Syangja district. In the process of
study it has been followed both descriptive and analytical
research design by using both primary and secondary data.
Conclusion of the study has been drawn on the basis of data
analysis and presentation.
Key-word: Microfinance, status, Syanja district
Introduction
Microfinance is a system that distributes small loans to
poor people in order for them to generate income and start their
own small businesses (Lapenu & Zeller, 2001). Correctly point
out that this kind of keenness for microfinance rests on an

appealing win-win proposition that the poor lack access to
institutional finance institutions, such as banks, because they are
47
unable to provide collateral and the rules and regulations to get
loans is too complicated to understand for the uneducated poor
(Roy, 2003). Many stake holders in the microfinance industry
especially donors and investors argue that, “Microfinance can
pay for itself, and must do so if it is to reach very large numbers
of poor households” (Murphy, 2006, p. 32). Given the
assumption that microfinance is already beneficial to the poor,
the “win-win” proposal further assumes that the amount of
household poverty reduced is directly comparative to the number
of households reached with microfinance (Murphy, 2006). But
some of the previous literature has reported that there was no any
contribution of microfinance for poor people. It is stated that a
number of studies found that several microfinance programs did
not help the poorest, as is so often claimed (Coleman,
2006;Kondo, 2007). Though, many literatures and practices also
had shown the positive impact of microfinance to change the life
of poor people.
In the contextof Nepal, modern concept of microfinance
had been developed during 1960s with evolution of small farmer
bank join in hand with agriculture development bank. Since 1968
microfinance had been introduced inNepal with objective of
poverty elimination and economic upliftment. During the decade
of 1970 and 80s agricultural development bank had run small
farmer development program. Small farmer development
program had been run across the nation through agricultural
development bank. After restored the democracy in 1990, Nepal
government adopted new concept of microfinance. Nepal
Rastrya Bank made the provision of Rural Self-Reliance Fund
(RSRF) in the year 1991. In the same line Small Farmers
Development Bank (Sano Kisan Bikas Bank Limited) was
established in July 2001 under the Company Act. Since the time

many financial institutions, non-government organizations and
cooperatives run microfinance program in Nepal. Small farmer
Dhakal
& Jha
48
development bank lunched microfinance program in Syangja
since the time of it's' establishment. Within few years
microfinanceprogram has been expanded across the district.
During the period of Maoist insurgency financial
institutions and non-government organizations were centralized
into headquarters and microfinance program had faced crisis in
hill area of Nepal including Syangja district. Maoist captured
various branches of small farmer development bank of western
regionin Nepal. Since 1997 to 2002 most of financial institution
and non-government organizationstopped the microfinance
program in rural area. After the end of Maoist people war again
microfinance program activate rural area of western Nepal
Sayngja district. The study highlights the brief scenario of
microfinance in Syangja district.
Study Area
Syangja district is located in province no. 4 western part
of Nepal. On the basis of administrative division of 2015 the
district has been divided in 11 local bodies including five
municipality and 6 village municipality. Syangja bazaar is
district headquarters, covers an area of 1,164 km² and had a
population of 289,148 as census of 2011. It lies in the hilly
region at an altitude.The socio-demographic characteristics of
Syangja districts shows that many ethnicities of people live in
this district,major group consists of Brahmin,
Chhetri,Gurung,Magar and others. The people are famous for
their unique identity. Brahmin and Chhetri (Kshetriya) are
renowned by their representation in the governmental jobs and
Indian army respectively
Micro-finance institutions were providing the saving and
credit service to whole population of district since the South Asia
Poverty Alleviation Program (SAPAP) of the United Nation
Development Fund (UNDP). The program had been run during

the period of 2001. Syangja's model has proved so successful
that the Government of Nepal joined forces with the SAPAP to
49
extend the project to other districts and make it a model for
national development. Since the time Micro-finance activities
were initiated before two decades with the objective of poverty
reduction in the study area. Poor, disadvantage, marginalized and
women were the main target group of micro-finance activities.
Around all areas were covered by micro finance.
Map of Study Area
Methodology
The study has been based on qualitative research
paradigm and both secondary and primary sources of data were
used for this study. Books, articles, thesis, dissertations and
reports were the main secondary source of data. Secondary
information has collected through library research method.
Primary data were collected through field observation and
interview questionnaires. Questions were asked to the
respondents who are directly involved in microfinance program
in Syangja district.
Status of Microfinance Institution in Syangja

Microfinance programs and institutions have become an
increasingly important in Syangja district to reduce poverty and
Dhakal
& Jha
50
promote micro and small enterprise development. It provides the
small scale saving and credit facilities to small farmers. The
latest data shows that all the households of Syangja are
participated in the program of microfinance.
Microfinance institutions have been regulated function on the
basis of Government acts such as The Bank and Financial
Institution Ordinance (2004), The Cooperative Act (1991), The
Financial Intermediary Act (1998). The various non-
governmental organizations are also providing the microfinance
services through the skill based vocational training to the
community people to empower their economic status in Syangja.
Even community-based organization provides small amount of
loan to the community user group with the purpose to run the
cottage industry or self-employment activities.
Table:1
Background information of microfinance
Minimu
m
Maximu
m
Mean Std.
Deviation
Year of
establishment
2.00 20.00 12.3750 6.11643
Service coverage
VDCs
5.00 58.00 24.7500 18.28934
Number of
members
660.00 12000.00
3538.00
00
3639.80231
% customer ask for
loan
50.00 92.00 71.5000 16.52703
(Source: Field Survey 2016)
For the first time Small Farmer Development Bank(SanaKisan
Bank) lunched Microfinance program around 2002 in limited
area of Putalibazar and Walling. It is the continuation of small
farmer development program run by agricultural development

Bank sine long time. Same user groups were participated in new
program lunch By SFDB. They had covered
51
5 village municipalities (as the former administrative division)
for the micro finance activities. As the data given by the
institutions, they were giving services to around 12000
households. The following table indicates the background
information of microfinance activates in Syangja district.
In the present study, 8 microfinance institutions were
selected. The data in Table 1 shows that minimum time span
analyzed after the establishment of MFI is 2 years and maximum
is 20 years. The mean year of establishment is 12.375
years.Similarly, the table shows the results of service coverage of
village municipality by selecting 8 microfinance institutions from
the study area. There are minimum 5 village municipalities
analyzed and 58 maximums, where those selected MFIs provide
their services. Thus, the mean point of coverage of village
municipalities is 24.75. It also shows the results of minimum,
maximum and mean numbers of membersfrom the selected
microfinance institutions. The result shows that minimum
numbers of members of an MFI is 660, maximum is 12000 and
mean is 3538.
In order to assess pressure of customers for loan and
other forms of credit facilities from the selected 8 MFIs from the
study area, the result shown in Table1 indicates that minimum 50
percentage, maximum 92 and mean 71.5 percentage customers
were found asking loans. It is found from the general discussion
with members of microfinance that the main objective of saving
the money either in microfinance or in cooperative or any bank is
to get the loan service. The expectation of loan is for business
promotion. Mostly, microfinance institutions provide loans for
them who even do not have collateral.

Perception of Microfinance about their own working status
The study had covered the 8 Micro finance institutions
of Syangja district of Nepal. In average, the institutions were
working from 2 to 20 years (mean 12.3750). They had covered 6
Dhakal
& Jha
52
village municipalities for the micro finance activities. As the data
given by the institutions, they were giving services to around
12000 households. The data showed that minimum 50% to
maximum 92% members of microfinance asked loan for the
purpose of farming, petty trade, small-scale manufacturing and
Artisan.
The data presented in the table below collected the
opinion of managers of microfinance institutions to explore the
contribution of micro finance in socio-economic status of
beneficiaries. In total, 25% agreed followed by 75% strongly
agreed in regarding the contribution of micro finance to uplift the
income status of beneficiaries. This result is supported by
Taiwo's research "An analysis of loan received by the
respondents from MFIs shows that about 64% of them have
benefitted from one form of loan or the other from their
respective microfinance banks"(June, 2012, p. 134). Similarly,
micro finance agreed that community people had used the loan
for the same purpose for which they were given by micro
finance. In total 100% micro finance agreed, that microfinance
could be effective means to reduce poverty. "Microfinance
institutions can really get people out of their poverty level with
consistent utilization of loans for developmental activities by
their customers. This also affects greatly on Customers' savings
habit and income generation. By financing more small and
mediumscale enterprises, the MFI has made a significant
contribution to creation of employment and improving household
income"(Taiwo, June, 2012, p. 156). Micro finance
institutions should be established in the rural areas so that it can

provide the saving and credit service to the needy people. The
statement was strongly agreed by the micro finance itself also.
100% microfinance disagreed on the charging of the
same interest rates by microfinance as the mainstream banks
were charging because as their experiences, microfinance had to
charge more interest rate in loan than the other bank. It was also
53
interesting that people withlow-incomewere also paying
the loan in time, which could build the trust of microfinance on
their customers of different income group. In total 87.5%
microfinance were not ready to give loan for the household level
expenditure, e.g. food, children education, minor house repairs,
farming, fishing, health matters and other emergencies.
Microfinance was interested to finance only in those sectors from
where farmers could earn; only in productive sectors so they
used to discourage the use of loan in daily expenditure. It was
also one good practice to reduce the unnecessary burden of loan
for farmers. Around 88% microfinance said that Nepal
Government has given support to microfinance for their program
implementation. Nevertheless, 100% microfinance institutions
agreed in unison on the point that 10 million Nepalese rupees
were not sufficient to run the microfinance.
Table: 2
Perception of Microfinance about their own working status
SD = Strongly disagree, D = disagree, N = Neutral, A = Agree, SA =
Strongly Agree
Statements SD D N A SA Total
Microfinance has
improved the lot of the
low-income group in
service area
N 2 6 8
% 25.0 75.0 100.0
Funds disbursed are
applied for the purpose
for which they were
given
N 6 2 8
% 75.0 25.0 100.0

Microfinance is really
the answer to poverty
alleviation if properly
practiced
N 1 7 8
% 12.5 87.5 100.0
Dhakal & Jha 54
Strongly Agree
More microfinance
banks should be
established, particularly
in the rural areas of the
country
N 1 1 6 8
% 12.5 12.5 75.0 100.0
Microfinance Banks
charge same interest
rates as the mainstream
banks
N 8
% 100.0
Microfinance banks
charge higher interest
rate than the mainstream
bank
N 6 2 8
% 75.0 25.0 100.0
Low-income group repay
loans extended to them
by microfinance banks
satisfactorily
N 7 1 8
% 87.5 12.5 100.0
Households use loans
given to them for food,
children education,
minor house repairs,
farming, fishing, health
matters and other
emergencies
N 7 1 8
% 87.5 12.5 100.0
The Government has
done enough to support
microfinance sector in
Nepal
N 1 7 8
% 12.5 87.5 100.0
Main-customers are
women
N 1 1 6 8
%
12.
5
12.5 75.0 100.0
Bank provides services N 5 2 1 8

in the areas of money
transfer, savings etc.
% 62.5 25.0 12.5 100.0
55
Strongly Agree
Total Rs.10 million
capital basesare adequate
for the operations of
microfinance banks
N 8 8
% 100.0 100.0
Many microfinance
banks are a failure as a
result of fraud and
insider abuse
N 7 1 8
%
8
7
.
5
12
.5
100.
0
Easy to facilitate loan
packaging to Group
membership
N 2 6 8
%
25
.0
75.
0
100.
0
Microfinance banks can
really promote business
development and bring
about economic
development
N 5 3 8
%
62
.5
37.
5
100.
0
Source: Field Survey, 2018
In Syangja district apart from savings and credit, Micro-
finances are involved in the different social development
activities too because micro-finances are committed to reduce the
level of poverty in society.From the study, it was also reported
from the 87.5% microfinance that microfinance activities failed
and could not achieve the goal because of the fraud and insider’s
malpractice. Therefore, it was also recommended to formulate
the very effective management team who could work
transparently, visibly and result oriented. Microfinance
institutions of Syangja are providing the banking services for the

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