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Akshaya International Journal of Management

www.akshayapublications.com

Volume : 01 Issue : 02 Sep. - Oct 2011

CONTENTS PAGE NO.

1. A Study on Motivation and Total Employee Involvement 1

2. A Study on Influence of Attitude on Performance of 12

Employee in Engineering Industry

3. A Study On Stock Price Behavior Of Dividend Yielding 23

Stocks During Announcement (Result And Dividend) Period

4. A Study On Retailer As A Route To Rural Market 33

5. A Study On Organization Culture Of Employees And 41

Its Influence On Employee Engagement

6. Global Trends in E-recruitment and its outcomes 51

7. A Study On Women Entrepreneurs In Coimbatore District 55

8. Rural Transformation Through Self Help Groups (Shg) 64

In Mayildathurai, Nagapattinam District

9. A Study On Internet Usage Among Research Scholars 76

In Coimbatore City

10. A Study On Comparitive Analysis Of Share Prices 87

In Various Sectors Such As Banking, Petroleum, Software,

Telecom, Textiles And Logistics

11. Innovation for a cause Mini sanitary napkin making machine 94

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Akshaya International Journal of Management Studies - Vol. : 01 Issue : 02

1

A Study on Motivation and Total Employee Involvement

Y. Benazir

Assistant Professor,

P.S.G.R Krishnammal College for Women

Department of management studies

Coimbatore. Mob : 7708366760

E-mail: [email protected]

ABSTRACT

A STUDY ON MOTIVATION AND TOTAL

EMPLOYEE INVOLVEMENT is to study the various

factors that are concerned towards the motivation and

total employee involvement. The analysis is mainly based

on the primary data that is by the interviewing the

employees. The researcher has taken a sample size of

164 and has used the stratified random sampling method

to select the samples from the total population of 1620.

The statistical tools like Percentage Analysis, Score Value

analysis method, Cross tables, ANOVA, Correlation and

t-Test were made use of for the analytical purpose. The

study gives the opinion of employees about the HR

functions like working environment, nature of work

performed, working hours, remuneration, working

atmosphere, relationship with superiors, internal

motivators and external motivators, which contributes

towards the motivation of the employees and about the

total employee involvement in their work. The researcher

from the findings, reveal that the motivation factors such

as, working environment, working atmosphere,

relationship with superiors, working hours, nature of

work performed, remuneration and Total Employee

Involvement are above the satisfactory level, except for

a few factors like internal motivators and external.

Meaning of motivation

Motivation originally comes from the Latin word

mover, which means to move. It is derived from the

word motive. Motive may be defined as an inner state

of our mind that activates and directs our behavior. It

makes us move to act. It is always internal to us and is

externalized via behavior. Motivation is ones

willingness to exert efforts towards the accomplishment

of his/her goal. A few important definitions on motivation

that will help us to understand the meaning of motivation

in more clear sense are:

MOTIVATION CYCLE OR PROCESS

Motives

Almost all human behavior is motivated. It requires no

motivation to grow hair. But getting a hair cut does.

Motives prompt people to action. Hence, these are at

the very heart of motivational process. Motives provide

an activating thrust towards reaching a goal. The

examples of the needs for food and water are translated

into hunger and thrust drives or motives. Similarly, the

need for friends becomes a motive for affiliation.

Goals

Motives are directed towards goal. Motives generally

create a state of physiological or psychological

imbalance. Attaining goal restores balance. For example,

a goal exists when the body of the man is deprived of

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food and water or ones personality is deprived of friends

or companions.

Behavior

Behavior is a series of activities to be undertaken.

Behavior is directed to achieve a goal. For example, the

man goes to saloon to cut his hair.

NEED FOR MOTIVATION

Organizations are run by people. Hence,

managers cannot afford to avoid a concern with

human behavior at work. This is because the

motivated employees are more productive and

quality conscious than the apathetic ones.

Motivation as a pervasive concept affects and

is also affected by a host of factors in theorganizational milieu. It enables managers to

understand why people behave as they behave.

Organizational effectiveness becomes, to some

extent, the question of managements ability to

motivate its employees. Hence, an appreciation

of motivation helps the managers know how to

motivate their employees.

Machines become necessary in case of complex

technology. However, these remain inefficient

vehicles of effective and efficient operations

without man to operate them. Therefore,

organizations need to have employees with

required capability and willingness to use the

advanced and complex technology to achieve

the organizational goals.

THEORIES OF MOTIVATION

From the very beginning, when the human organizations

were established, various thinkers have tried to find out

the answer to what motivates people to work. Different

approaches applied by them have resulted in a number

of theories concerning motivation. These theories are

broadly classified into three categories:

1. Theories based on human needs (theories by

Maslow, Herzberg, and McClelland);

2. Theories based on human nature (theories by

McGregor, Urwick, and Argyris);

3. Theories based on expectancy of human beings

(theories by Vroom and Porter and Lawler).

Need for Achievement

High-need achievers have a strong desire to assume

personal responsibility for performing a task or finding

a solution to a problem.

1. High-need achievers tend to set moderately

difficult goals and take calculated risks.

2. High-need achievers have a strong desire for

performance feedback.

Need for Power

People who have a high need for power are characterized

by:

1. A desire to influence and direct somebody else.

2. A desire to exercise control over others.

3. A concern for maintaining leader- follower

relations.

Need for Affiliation

1. They have a strong desire for acceptance and

approval from others.

2. They tend to conform to the wishes of those

people whose friendship and companionship

they value.

3. They value the feelings of others.

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EMPLOYEE INVOLVEMENT

Employee involvementmeans that every employee is

regarded as a unique human being, not just a cog in a

machine, and each employee is involved in helping the

organization meet its goals. Each employees input is

solicited and valued by his/her management. Employees

and management recognize that each employee is

involved in running the business. Employee involvement

is an empowerment technique where employees

participate in actions and decision making that was

traditionally reserved for management. It is when

employees are included in all issues of their interest. It

is therefore both individualistic, and direct, yet it includes

every other member making up the involvement

constitution. It is therefore, championed by, and led by

management with individual employees, getting included

and subsumed to achieve some specific goal. It thus

assumes common interest between employees and

management. Its main functions are to elicit and to grow

employee identification and commitment. There are no

specific rules to grow involvement. Employee

involvement thus spells out the worthiness of an

individual in including them in a certain activity. A typical

example is Management by Objectives. Adapted from

Human Resource Management in a Business Context,

2nd edition (2004) Ichniowski et al review a number of

theories as to why high skill, high involvement

workplaces are believed to be more effective than

traditional top-down management regimes.

They divide these theories into two basic groups:-

1. Those focus on the effort and motivation of

workers and work groups and suggest people whowork harder.

2. Those focus on changes in the structure of

organizations that produce improvements in

efficiency.

3. In the first group, the emphasis may be working

harder and working smarter.

Working Harder

People may work harder if they find elements of a job to

be interesting or enjoyable, and this may come from

rewards or feedback. They are also less likely to resent

aspects of the job if have contributed to its design.

Working Smarter

1 Cross-training and flexible job assignment may

reduce the costs of absenteeism.

2. Delegating decision-making to self-directed teams

can reduce the number of supervisors or middle

managers and improve communication.

3. Training in problem-solving, statistical process

control and computer skills may enhance the

benefits of information technology.

4. Involving workers and unions in decision-making

can reduce grievances and other sources of conflict.

Benefits of Employee Involvement

Employee involvement can:

Improve efficiency

Improve quality and competitiveness

Increase job satisfaction and motivation

Encourage co-operation and improve employee

relations.

METHODS OF INVOLVING EMPLOYEES

There are two methods of involving employees:

Indirect involvement where a representative

acts on behalf of employees, for example

through collective bargaining or joint

consultation

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Direct involvement where employees are

involved in decisions about how they work, for

example through quality circles or autonomous

work groups, as described on the next page.

EMPLOYEE REPRESENTATION

Involvement through representatives can take a variety

of forms. The most common form of representation is

through trade unions and employees have the right to be

a member of a trade union, or not to be a member. In

some companies representation is through works or

office committees or staff associations. Collective

bargaining - the principal method of involvement through

representatives - is dealt with separately.

JOINT CONSULTATION

How can joint consultation be made to work

effectively?

Senior managers should attend regularly

There should be a written constitution

Make sure there is an agenda for each meeting

Establish a procedure for reporting back to

managers and employees

Provide training for committee members and

chair holder

See that the committee meets regularly,

normally not less than once every two months.

QUALITY CIRCLES (Autonomous Work Groups)

Commitment of senior management is crucial

Time and money must be allocated for training

and meetings

Senior managers should be available to attend

meetings as appropriate

Management must be prepared to support the

implementation of the circles solutions to

problems, with resources as necessary.

Quality circles should operate openly with full

recognition given to the groups achievements

The circle should be able to select its own

problems to solve, not just those identified bymanagers and the facilitator

Trade unions should be consulted and

encouraged to become involved

Begin modestly - perhaps with a pilot scheme

FINANCIAL PARTICIPATION

Employees and their representatives are

consulted before schemes are put into effect

Schemes are clearly understood by employees

Schemes are reviewed regularly

It is part of an overall programme of measures

to involve employees.

Schemes provide equal pay for equal work

OTHER FORMS OF INVOLVEMENT

Other forms of employee involvement include:

Autonomous work groups which have some

degree of autonomy or responsibility within a

defined area, for example responsibility for

work organization, quality and output

Job enlargement, job enrichment and job

rotation which seek involvement and motivation

by improving job satisfaction and effectiveness

Joint working parties which involve

representatives of management and employees

seeking joint solutions to problems. They are

non-negotiating forums in which participants

work together.

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The employee involvement model developed by

Tannenbaum and Schmidt in the year 1958 acts as an

effective guide for the accomplishment of the employee

involvement. The model provides the method which the

organization is involved in the decision making process.

There are four levels which the organizations follow

depending on the mode of operation.

REVIEW OF LITERATURE

Mr. M. Sevika (2000) has made a study on employees

motivation in English Tools and Castings Private

Limited, Thamaraikulam, Pollachi. To collect the

necessary information from the worker, the investigator

asked questions in the area of family data, job contents,

recruitment, promotion, transfer, management style,

wages, individual factors, working conditions, welfarefacilities, industrial relations, opinion factors, leave

facilities, etc., The study revealed that almost 70% of

the respondents are highly motivated with high level of

job performance.

Maslow (2008) proposed that employees needs emerge

in a hierarchical fashion and it is important for the

organization to satisfy their needs, failing which the

employees may exhibit non commitment which may

result in loss of productivity and effectiveness of the

organization.

Fleishman (1953) has studied the relationship of

supervisory behavior with the productivity and

motivation of subordinates. Supervisors who show

consideration to subordinates create certain climate in

their department and high consideration which result in

high productivity and motivation.

Hack Ananetalm (1971) the nature of the relationships

between jobs characterizes and employees relation to

their work (including satisfaction, performance, and

absenteeism) will depends upon the need status of the

employees. If employees deserve higher order need

satisfaction, there should be a positive relationship

between the dimensions like autonomy, task identity and

feedback and motivation, satisfaction, performance and

attendance.

OBJECTIVES OF THE STUDY

To study the factors contributing towards the

motivation of employees and their opinion

towards it.

To know the level of employees involvement

in the organization.

To study the relationship between the personal

factors and the motivation of the employees.

To study the relationship between the personalfactors and the employee involvement in the

organization.

To find out the relationship between the level

of motivation among the employees and its

influence on the total employee involvement.

To identify the gap between the opinion on

motivation among the workers and staff.

To suggest the management, based on the

findings, the areas to be improved to increase

the level of motivation and employee

involvement.

RESEARCH DESIGN

Research Design is the arrangement of conditions for

the collection and analysis of data in a manner that aims

to combine relevance to the research purpose with

economy in procedure. The researcher had a little

knowledge about the employees motivation and Total

Employee involvement in general and wanted to find

out its effectiveness in the organization. Since, the study

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has been made explore new facts; the research design

followed is Exploratory Research Design. This study is

in the nature of preliminary investigation wherein the

researcher himself is not sufficiently knowledgeable.

This study involves qualitative research design.

Limitations of the Study

The result of the study is completely based on

the responses of the respondents. There may be

Table No: 1 Respondents Opinion about Nature of Work Performed

some chances where the respondents may not

be serious in giving their opinion.

The researcher was not able to collect the

information from all employees due to non-

availability of time.

As there were limitations in time, the coverage

of information is also limited.

ANALYSIS AND INTERPRETATION

S.

No

Factors

SA % A %

N

AND

% D % HD

%Total

Score

1.

Independency

in work andusage of

competencies.

64

39

82

50

16

10

2

1

nil

nil

164 700

2.

Over-challengesin work.

62

38

68

42

32

19

2

1

nil

nil

164 682

Grand total 1382

Note: SA- Strongly Agree; A-Agree; NAND-Neither agree nor disagree; D-Disagree; HD- Highly Disagree

The above table reveals that 50percentage of the

respondents agree that the employees can work

independently and sufficiently use their competencies

at work, 39percentage of them strongly agree,

10percentage of them neither agree nor disagree,

1percentage of them disagree and none of them highly

disagree to it.42percentage of the respondents agree that

the work over-challenges for employees, 38percentage

of them strongly agree, 19percentage of them neither

agree nor disagree, 1percentage of them disagree and

none of them highly disagree to it.The total score value

is 1640. Regarding the employees who work

independently and sufficiently use their competencies

at work, the score value is 700, which is 85percentage,

regarding the work that over challenges, the score value

is 682, which is 83percentage. The score value for this

factor is 1382, which is 84percentage and hence the

employees motivation regarding nature of work

performed is interpreted as Very Good.

Table No: 2

Relationship between Working Environment and

Total Employee Involvement

Null Hypothesis (H0)

There is no significant relationship between the working

environment and total employee involvement.

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Alternate Hypothesis (H1)

There is significant relationship between the working environment and total employee involvement.

Level of Significance

0.05 Or 5percentage

Factors WE TEI

Tot

al

Pearson

Correlation

Sig(2-Tailed)Pearson

Correlation

Sig (2-

Tailed)

We

1

Nil

0.604

0.000

164

TEI 0.604 0.000 1 Nil 164

Note: WE-Working Environment; TEI-Total Employee Involvement

From the above table it is found that there is a significant difference between working environment and total employee

involvement and the level of significance is 0.01. This infers that the correlation is a positive type and having direct

relationship between the two variables. Hence, it can be concluded that there is a positive relationship between the

working environment and total employee involvement.

Table No: 3

Relationship between Nature of Work Performed and Total Employee Involvement


There is no significant relationship between the nature of work performed and total employee involvement.


There is significant relationship between the nature of work performed and total employee involvement.


0.05 Or 5percentage

Factors NW TEI

Total

Pearson

Correlation

Sig(2-Tailed)Pearson

Correlation

Sig (2-Tailed)

NW

1

nil

0.494

0.000

164

TEI

0.494

0.000

1

Nil

164

Note: NW-Nature of Work Performed; TEI-Total Employee Involvement

From the above table it is found that there is a significant difference between the nature of work performed and total

employee involvement and the level of significance is 0.01. This infers that the correlation is a positive type and

having direct relationship between the two variables. Hence, it can be concluded that there is a positive relationship

between the nature of work performed and total employee involvement.

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Table No: 4

Relationship between Working Hours and Total Employee Involvement


There is no significant relationship between the working hoursand total employee involvement.


There is significant relationship between the working hoursand total employee involvement.

Factors WH TEI

Total

Pearson

Correlation

Sig(2-

Tailed)

Pearson

Correlation

Sig (2-

Tailed)

WH

1

nil

0.343

0.000164

TEI

0.343

0.000

1

nil

164

Note: WH- Working Hours; TEI-Total Employee Involvement

From the above table it is found that there is a significant difference between the working hoursand total employee

involvement and the level of significance is 0.01. This infers that the correlation is a positive type and having direct

relationship between the two variables. Hence, it can be concluded that there is a positive relationship between the

working hours and total employee involvement.

Table No: 5 Relationship between Marital Status and Working Atmosphere

Factors Marital Status

t df Sig(2-tailed)

WA

Equal Variances Assumed

1.754

162

0.081

Equal Variances not Assumed1.994

26.987

0.056

Note: WA-Working Atmosphere

The above table reveals that there is no significant difference between working atmosphere with marital status of the

respondents.

Table No: 6 Relationship between Marital Status and Relationship with Superiors


t df Sig(2-tailed)

RS


3.925

162

0.000

Equal Variances not Assumed 5.381 32.935 0.000

Note: RS-Relationship with Superiors

The above table reveals that there is a significant difference between relationship with superiors with marital status

and the level of significance is 0.01. Hence, there is significant difference between relationship with superiors with

marital status of the respondents.

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Table No: 7 Relationship between Marital Status and Internal Motivators


t df Sig(2-tailed)

IM


-1.327

162

0.186

Equal Variances not Assumed

-1.301

24.277

0.206

Note: IM-Internal Motivators

The above table reveals that there is a no significant difference between internal motivators with marital status of the

respondents.

Table No: 8

Relationship between Marital Status and External Motivators

FactorsMarital Status

t df Sig(2-tailed)

EMEqual Variances Assumed -2.427 162 0.016

Equal Variances not Assumed -2.805 27.379 0.009

Note: EM-External Motivators

The above table reveals that there is a significant

difference between external motivators with marital

status and the level of significance is 0.01. Hence, there

is a significant difference between external motivators

with marital status of the respondents.

Findings:

45percentage of the respondents are sometimes

needed to be in an authority position.

33percentage of the respondents are often

having interesting nature and type of work.


having opportunities for group identity.


having positive interpersonal relationships.


have their personal needs.


having their personal values.


having their personal attitudes.


having their personal interests.

45percentage of the respondents agree that in

some situations, the organization has given

them the right to take decision in order to

complete the work, 35percentage of them

strongly agree.

36percentage of the respondents agree that

while making the process of compensation

decisions, the organization consult the

employees.

45percentage of the respondents agree that their

organization can act immediately regarding the

feedback given by them.

43percentage of the respondents agree that the

appraisal provided by the organization is in

compliance with the effect of the employee.

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45percentage of the respondents have an

Average opinion regarding external motivation.

85percentage of the respondents have a Very

good opinion regarding Employee Total

Involvement in the organization.

There is a significant negative relationship

between the total employee involvement and

the internal motivators.

There is a significant difference between the,

Age of the respondents and the remuneration.

There is a significant difference between the,

Marital status and the working

environment.

Marital status and the relationship with

superiors.

Marital status and the external motivators.

There is no significant difference between the,

Gender and the internal motivators.

Gender and the external motivators.

Marital status and the working

atmosphere.

Marital status and the internal motivators.

Discussions

With regard to the opinion about their Labor Welfare

Officer and Personnel Manager, most of the respondents

do not have a favorable opinion. Therefore, the Personnel

Department on a whole with the help of their

Departmental Heads identifies the areas of difference

between them and the employees. These differences of

opinions may be sorted out through open discussions or

through employee opinion method. The managers may

have to come out with solutions that may bring them

close to the workers which is the ultimate factor that

contributes towards motivation.

The other areas which may be still nurtured to

increase the motivation of the employees are

that,

Suggestion schemes may be coupled with

rewards/monetary benefits.

Safety Officer may provide regular safety

training programmers to create goodwill

among the employees and contribute to the

healthy life of the employees.

Rewards and recognition may be made in

public and immediately which gives

recognition to the employees and

ultimately motivates them to perform well.

Conclusion

The study is carried out at with the objective to study

about various factors which determine the motivation

of the employees and Total Employee Involvement. The

study on a whole reveals that the motivation level of the

employees is above the satisfactory level in most of the

areas that contribute towards motivation.

Organization develops only when people develop and

for this, motivation becomes an important contributing

factor. The motivation factors such as working

environment, working atmosphere, relationship with

superiors, working hours, nature of work performed and

remuneration are above satisfactory level among the

employees, except for a few factors like internal

motivators and external motivators are at satisfactory

level. The researcher hopes that the suggestion brought

forward may be implemented by the organization to

improve the motivation of the employees and get

employees total involvement.

BIBLIOGRAPHY

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Books

Aswathappa, Human Resource and Personnel

Management, Tata McGraw-Hill Publishers,

New Delhi, 1987.

S.K.Bhatia, Managing Organizational

Behaviour, Deep and Deep Publications Pvt.

Ltd, 2008.

Karam Pal, Management process and

Organizational Behaviour, IK International

Publishing House Pvt. Ltd., New Delhi, 2007.

C.R.Kothari, Research Methodology, Second

Edition, Wishwa Prakashan, New Delhi.

S.S.Khanka, Organizational Behaviour,

S.Chand & Company Limited, New Delhi,

2004.

L.M.Prasad, Organizational Behaviour,

Sultan Chand & Sons, New Delhi, 2001.

Stephen P.Robbins, Organizational Behavior,

Tata McGraw Hill Publishers, Second Edition,

New Delhi.

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A Study on Influence of Attitude on Performance of Employee in Engineering Industry

12

A Study on Influence of Attitude on Performance of

Employee in Engineering Industry

P. Divyapriya

Ph.D Research scholar


Karpagam University

Coimbatore.

ABSTRACT

Work Performance in most organizations is determined

in most cases by performance appraisal. The

Implementation of performance appraisal on employee

work performance and subsequently the derived

feedback from the process have recently derived

attention from both researchers and the management of

any organization. However the knowledge of gaining

the trust of employees as well as getting the appropriate

feedback is seriously lacking. This thesis tried to review

the attitude of employees to work as a result of

performance appraisal within an organization. To review

the effects of performance appraisal on employee work

performance and work effectiveness. The primary data

for this work was collected from the survey received

from the employees of Unique Assurance Company and

also secondary data was collected from journals, books

and other research works

KEYWORDS :Work Performance, Performance

appraisal, employees attitude, motivation

INTRODUCTION

The importance of attitude in understanding

psychological phenomenon was given formal recognition

early in the history of social psychology. From the time

of the concepts entry in to the language of psychology

until now, interest in attitude has been strong and

growing. However, over the years attitudes have been

studied with differing emphasis and methods. It is

necessary to be precise in defining attitudes, because

the variety of published definitions and descriptions is

almost endless. Like any other concept, attitude may also

be defined in two ways, Conceptual and Operational.

There is quite a difference in the conceptual definition

of the term attitude, and divergent points of view

regarding the concept of attitude have developed.

Major Aspects:

When the term first entered the field of social

phenomenon, it was natural to conceive of attitude as a

tendency, set or readiness to respond to some social

object. For the first time, ALLPORT noted the definition

of attitude, which he had observed contained the words

readinesses, set or disposition to act. Even

ALLPORT has used these terms in defining attitude. He

defines attitude as follows:

Attitude is a mental and neural state of readiness

organized through experience, exerting a directive or

dynamic influence upon the individuals response to all

objects and situations with which it is related.

Features of Attitude:

Attitudes affect behavior of an individual by

putting him ready to respond favorably to things

I his environment

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Attitudes are acquired through learning over

period of time. The process of learning attitude

starts right from the child hood and continuous

throughout the life of the person.

Attitudes are invisible as they constitute the

psychological phenomenon which cannot be

observed directly. They are observed by

observing the behavior of an individual.

Attitudes are pervasive and every individual has

some kind of attitude towards the objects in his

environment. In fact, attitudes are forced in the

socialization process and may relate to anything

in the environment.

Factors in Attitude Formation :

The attitudes are learned. Though there are different

approaches as how learning works and is acquired by

an individual, generally it is held that individuals learn

things from the environment in which they interact. Thus,

for attitude formation, all these factors must be taken in

to account from which people learn. Such factors may

be analyzed in terms of groups starting from the family

as a group, an individual moves in a close group, then to

longer groups, and finally to the society as a whole. A

part from these groups, the individuals psychology

which makes up particularly his personality, is also

responsible for behavior and attitudes.

Methods of Attitude Change :

There are various methods through which a positive

change in attitudes may be brought. In the social context,

Cohen has suggested four methods for attitude change.

They are

Communication of additional information

Approval and dis approval of a particular

attitude

Group influence and

Including engagement in discrepant behavior.

Group action

Persuasion through leadership

Persuasion through communication and

Influence of total situation.

These actions involve the analysis of different variables

affecting a particular action.

Values and Attitudes:

Some researchers see values as consisting of large sets

of related attitudes. For example, Fishbein and Ajzen

have included two components in attitudes-

informational, emotional. Thus, they have taken values

as a part of attitudes. However, some differences existbetween values and attitudes. Attitudes are specific and

related to distinct objects; people, or ideas. Values are

more general than attitudes; values often contain

statement of goodness or badness associated with the

attitudes which people hold. Values are, then, beliefs

about which attitudes we should have or how we should

behave.

Values and Behavior:

Behavior of people is influenced by the values which

they hold, particularly in terms of those stimuli which

have some value orientation in the organizational

context, understanding the influence of individual value

system on the behavior of individuals in the following

manner :

Values influence an individual perception about

the problems he faces and consequently thedecision he makes to overcome those problems.

Values influences the way in which an

individual looks at the other individual and

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groups of individuals, that is, interpersonal

relationship. Values become the basis of such

interpersonal relationship interactions.

Individuals judge organizational success as well

as its achievement of the basis of their value

system. Thus, for some individuals,

organizational success may be in the form of

high- profit earning irrespective of the means

adopted whereas, this may be a mean thing for

other individuals.

Individuals set limit for the determination of

what is ethical or unethical behavior for

themselves as well as for the others

Values determine the extent to which individuals

accept organizational pressures and goals. If

these do not match with the value held by them,

they thwart the organizational pressures and

goals, and even leave the organization.

Employees Attitudes towards the Organization :

Attitudes are not the same as values, but the two are

interrelated. You can see this looking at the three

components of an attitude: cognition, affect and behavior.

The belief that discrimination is wrong is a value

statement.

Performance :

Performance management is an ongoing, continuous

proc ess of co mmun icat in g an d cl ar ifyi ng job

responsibilities, priorities and performance expectations

in order to ensure mutual understanding between

supervisor and employee. It is a philosophy which values

and encourages employee development through a style

of management which provides frequent feedback and

fosters teamwork. It emphasizes communication and

focuses on adding value to the organization by promoting

improved job performance and encouraging skill

development. Performance Management involves

clarifying the job duties, defining performance standards,

and documenting, evaluating and discussing

performance with each employee.

Objective of Performance :

The objectives of Performance Management are to:

1. Increase two-way communication between

supervisors and employees

2. Clarify mission, goals, responsibilities, priorities

and expectations

3. Identify and resolve performance problems

4. Recognize quality performance

5. Provide a basis for administrative decisions such

as promotions, succession and strategic

planning, and pay for performance.

6. Principles of developing a performance

management plan.

Development of a performance management plan should

be consistent with the following principles:

1. Performance management is considered a

proc ess, no t an even t. It fo ll ows good

management practice in which continual

coaching, feedback and communication are

integral to success.

2. The Performance Management Plan is primarily

a communication tool to ensure mutual

understanding of work responsibilities,

priorities and performance expectations.

3. Elements for discussion and evaluation should

be job specific not generalized personality

traits. The major duties and responsibilities

of the specific job should be defined and

communicated as the first step in the process.

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4. Performance standards for each major duty/

responsibility should be defined and

communicated.

5. Employee involvement is encouraged in

identifying major duties and defining

performance standards.

6. Professional development should be an

important component of the plan.

7. The formal evaluation period should be long

enough to allow for full performance and to

establish a history such that evaluations are fair

and meaningful. One year is a common

evaluation period.

8. Documentation of performance will occur as

often as needed to record the continuum of

dialogue between supervisor and employee.

9. If formal ratings are included, they should

reflect the incumbents actual performance in

relation to the performance standard for that

major duty.

10. The supervisor should be evaluated on the

successful administration of the plan and

ongoing performance managementresponsibilities.

Supervisors responsibilities

1. Communicate and clarify major job duties,

priorities and expectations.

2. Establish and communicate performance

standards.

3. Monitor employees performance through

observation, discussion, etc.

4. Document good and unacceptable

performance.

5. Provide continuous coaching and constructive

feedback in a timely manner.

6. Hold performance discussions (at least

annually).

7. Correct poor performance and reinforce good

performance.

8. Help employees to develop skills and abilities

for improved performance.

9. Provide necessary information, resources and

opportunity to allow accomplishment of key

results.

Objectives of the study

To study the opinion of the employees towards

life attitude ,work attitude and Performance

To analyze the influence of personal factors

towards life attitude and work attitude and

employee Performance.

To study the gap on the opinion between life

attitude and employee performance and work

attitude and employee performance.

To suggest the management, based on the

findings, the measures to be taken to improvethe life attitude, Work attitude, and employee

performance among the employees of the

organization.

Research Design

Research design is the arrangement of conditions for

the collection and analysis of data in a manner that aims

to combine relevance to the research purpose with

economy in procedure. The researcher had a littleknowledge about the Attitude and Employees

Engagement in general and wanted to find out its

effectiveness in the organization. Since, the study has

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been made to explore new facts; the research design

followed is Exploratory Research Design.

This study is in the nature of preliminary investigation

where in the researcher he is not sufficiently

knowledgeable. This study involves qualitative research

design. The researcher has used Stratified Random

Sampling Method in which the population is divided into

strata (groups) before the sample is drawn. Strata are so

designed that they do not overlap stratified sampling

which is suitable in those cases where, the population is

heterogeneous, but there is homogeneity with in each of

the groups or strata.

Limitations of the Study

The result of the study is completely based on

the responses of the respondents. There may besome chances where the respondents may not

be serious in giving their opinion.

The study was conducted from March to May.

So, the researcher was not able to collect the

information from all employees due to non-

availability of time.

As there were limitations in time, the coverage

of information is also limited.

Table: 1

Basis of Classification

Based on an interval of 20, the following classification

has been made.

20% and below-Very poor; 21% to 40%- Poor; 41%

to60%- Average;61% to 80%- Good; 81% and above

Very Good

Respondents opinion about Life Attitude

Life attitudes SDA % DA % NAND % A % SA % Total % Score

Financialsecurity

0 0 1 2 1 1.7 32 53.3 27 45 60 100 143

Trustworthy

&honest

0 0 0 0 0 0 44 73.3 16 26.7 60 100 256

Changing is

too fast today0 0 0 0 0 0 33 55 27 45 60 100 417

Family ismost

important

0 0 0 0 6 10 26 43.3 28 46.7 60 100 262

Achievements

are ahead of

me

0 0 0 0 0 0 31 51.7 29 48.3 60 100 269

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Conventional

thanexperimental

0 0 0 0 0 0 37 61.7 23 38.3 60 100 263

Family is

important

thing to me

0 0 0 0 0 0 38 63.3 22 36.7 60 100 262

I like to think

I am bit of

swinger

0 0 0 0 0 0 45 75 15 25 60 100 255

Social status

is important0 0 0 0 0 0 37 61.7 23 38.3 60 100 263

Total 2390

NOTE: SA-Strongly Agree; A-Agree; NAND- Neither agree nor dis agree; DA- Disagree; SDA- Strongly dis agree.

Interpretation:

The total score value is 3000.Regarding the option about financial security, the score value is143, regarding mostpeople are trust worthy and honest the score value is 256,regarding everything is changing too fast today, the score

value is 417, regarding their greatest achievements are head of them the score value is 262, regarding they are certainly

more conventional than experimental the score value is 269,regarding they like to try new things, the score value is

263 ,regarding their family is single most important thing to them the score value is 262, regarding they like to thing

think they are a bit of a swinger, the score value is 255, regarding their social status is an important part of their life,

the score value is 263.

Table No: 2

Respondents opinion about Working Environment

WE SDA % DA % ND % A % SA % TOT % SCORE

performance

0 0 0 0 0 0 27 45 33 55 60 100 273

Resource0 0 0 0 0 0 40 67 20 33.3 60 100 260

Balance thework

0 0 0 0 0 0 32 53 27 45 60 100 263

Effectiveness

0 0 0 0 0 0 33 55 27 45 60 100 267

Potential 00

0

0

0

0

48

80

12

20

60

100

252

Total 1315

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Interpretation:

The total score value is 1500.Regarding the results that is expected from the employees, the score value is 273,

regarding they have resources, tools and information they need to do their job the score value is 260, regarding they

are generally able to balance their and personal life, the score value is 263, regarding relationship enables to be

opened while discussing work problems, the score value is 267.

Table No: 3: Respondents Opinion about Employment Condition

EC SDA % DA % ND % A % SA % TOT % SCORE

Motivation 2 3 4 7 4 7 25 42 25 42 60 100 247

Safety

measures 0 0 6 10 5 8.3 30 50 19 31.7 60 100 242

Training &

development

0 0 0 0 0 0 35 58 25 41.7 60 100 265

Good

grievance0 0 2 4 8 13 23 38 27 45 60 100 255

Working

atmosphere 0 0 0 0 8 13 25 42 27 45 60 100 259

Total 1268

Interpretation

The total score value is 1500. Regarding the employees working hours influences the motivation of employees, the

score value is 247, regarding grievance procedure, the score value is 242, regarding safety measures provided by the

company will influence the motivation of the employees, the score value is 265, regarding training and development

is required to motivate employees, the score value is 255, regarding the work atmosphere on a whole helps in balancing

their personal life, the score value is 259.

Table No: 4

Relationship between Life Attitude and Working Environment


There is no significant relationship between life attitude and working environment.


There is a significant relationship between the life attitude and working environment.


0.05 Or 5 percentage.

Factors LA WE Total

Pearson

Correlation

Sig(2- Tailed) Pearson

Correlation

Sig(2- Tailed)

LA 1 Nil -0.041 0.756 60

WE -0.041 0.756 1 Nil 60

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Interpretation:

Correlation of co-efficient in the above table lies between -1 to +1. From the above analysis, it is found that, at 1

percentage level of significance, the correlation r value = -0.041 p > 0.01. This infers that the correlation is a negative

type and having inverse relationship between them.Hence, there is no significant relationship between the life attitude

and the working environment.

Table No: 5

Relationship between Life Attitude and Employment condition


There is no significant relationship between life attitude and Employment condition.


There is a significant relationship between the life attitude and employment condition.


0.05 or 5 percentage.

Factors LA EC Total

Pearson

Correlation

Sig(2- Tailed) Pearson

Correlation

Sig(2- Tailed)

LA 1 Nil -0.130 0.324 60

EC -0.130 0.324 1 Nil 60

Interpretation:

Correlation of co-efficient in the above table lies between -1 to +1. From the above analysis, it is found that, at 1

percentage level of significance, the correlation r value = -0.130 p > 0.01. This infers that the correlation is a negative

type and having inverse relationship between them. Hence, there is no significant relationship between the life attitude

and the employment condition.

Table No: 6 Relationship between Gender and Attitude factors

Factors Mean T df Sig. (2-tailed)

Gender

Life attitude

Work attitude

1.2167

1.6167

1.8033

22.684

76.930

98.801

59

59

59

.000

.000

.000

Null Hypothesis (H0) = There is no on an average same opinion between Gender of respondents based on attitude

factors.

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Alternative Hypothesis (Ha) = There is an average same opinion between Gender of respondents based on attitude

factor.

From the above table, it infers that, there is an average same opinion between Gender of respondents based on

attitude factors. So Alternative Hypothesis (Ha) is accepted.

Table No: 7

Relationship between Marital Status and Employee Performance Factors

Null Hypothesis (H0) = There is no on an average same opinion between marital status of respondents based onEmployee Performance.

Alternative Hypothesis (Ha) = There is an average same opinion between marital status of respondents based on

Employee Performance.

Factors Mean t df Sig.(2-tailed)

Marital Status 1.4167 22.072 59 .000

Working Environment 1.6167 76.930 59 .000

Employment Condition 1.8033 98.801 59 .000

Working Condition 1.6667 24.567 59 .000

Inter Personal Relationship 1.5467 55.907 59 .000

Employee Leader Relationship 2.1333 45.643 59 .000

Welfare 1.5000 54.516 59 .000

Decision Making 1.9667 33.537 59 .000

Commitment To the Organization 1.7433 38.424 59 .000

From the above table, it infers that, there is an average

same opinion between Marital Status of respondents

based on Employee Performance factors. So Alternative

Hypothesis (Ha) is accepted.

Findings:

50% of the respondents agree that they

communicate directly with the boss who

motivates them.

46.7% of the respondents strongly agree that

their superior shows genuine interest in the

employees department.


superiors are actively involved in their

department.

46.7% of the respondents agree superior is fair

& consistent in applying the rules.

55% of the respondents strongly agree that

superior keeps them informed about matters

that affect them.

58.3% of the respondents agree that superior

provides performance feedback that is fair.

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48.3% of the respondents agree that liaison with

the government officials in getting statutory

benefits is given utmost importance

53.3% the respondents agree that voluntary

welfare measures are provided based on the

employees needs

55%of the respondents neither agree nor

disagree that funding for voluntary welfare is

strongly made to avoid discontinuance


top management emphasizes on the continuous

administration.

46.7% of the respondents agree that people with

same nature recognize the work performed.


they have had opportunities to learn and grow.

There is an average same opinion between

marital status of respondents based on attitude

factors.

There is an average same opinion between

gender of respondents based on employee

Performance factors.

Suggestion

Most of the respondents are not happy with the

organization atmosphere. The organization may

encourage employees interpersonal

relationship by conducting monthly/ weekly

meetings and recreation facilities.

Most of the respondents are satisfied with their

potential and prospects known by their boss.

There is a negative relationship between the life

attitude and working condition. The

organization may improve employees work

attitude by conducting grievance redressal

programs.

There is a negative relationship between the

work attitude and welfare. The organization

may improve the welfare measures like canteen

and statutory welfare benefits.

There is a positive relationship between the

work attitude and working environment.

Because they have all resources, tools,

informations to their job.

CONCLUSION

The study carried out at Ultimate Alloys Private

Limited, with the objective to study about various factors

which determine the employees attitude and their

engagement. The study on a whole reveals that, the

engagement level of the employees at Ultimate Alloys

is above the satisfactory level in most of the areas that

contribute towards the employees engagement.

Organization develops only when people develop

and for this, engagement becomes an important

contributing factor with regard to Ultimate Alloys. The

Engagement factors such as working environment,

employment condition, working conditions,

interpersonal relationship, rewards recognition, welfare,

development opportunities, decision making, culture, job

satisfaction are above satisfactory level among the

employees. The researcher hopes that the suggestions

brought forward may be implemented by the organization

to improve their attitude and employees total

involvement and engagement.

BIBLIOGRAPHY

Aswathappa,Human Resource and Personnel

Management, Tata McGraw Hill Publishers,

New Delhi, 1987.

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S.K.Bhatia, Managing Organizational

Behaviour, Deep and Deep Publications Pvt,

Ltd., 2008

Karam Pal, Management process and

Organizational Behaviour, IK International

Publishing House Pvt.Ltd., New Delhi, 2007.

C.R Kothari, Research Methodology Second

Edition, Wishwa Prakashan, New Delhi.

S.S.Khanka, Organizational Behaviour,

S.Chand & Company Limited, New Delhi, 2004

L.M Prasad, Organizational Behaviour,

Sultan Chand & Sons, New Delhi, 2001.

Stephen P.Robbins, Organizational

Behaviour, Tata McGraw Hill Publishers,

Second Edition, New Delhi.

Hrm Review Vol: xii, no: 1, Sep-Nov2006 pp-

32

Nipm Review Vol: xviii, no: 2, Oct-Dec2009

pp-25

Manaual of HRM Vol: xiv Jan 2000 pp-30

HR Magazine, Vol: xv Dec, 2002 pp- 28

WEBSITES:

http://www.articlesbase .com/human

resources-ask/risk management in-hr-and its

roles -1005182.html

http://wwwstrtegichrinc.com /may 2006.html

http://wwwtheirm.org /publications/documents/

risk-management-030820-pdf

http: / /wwwwork911.com/cgi-bin/ l ink/

jump.cgi?10=3792

http://wwwinstanthrsolution .com/2010/

management-tips.

http://www.citehr .com/human resources .html

http://www.mbaguys.net/-risk management-

tips.html

www.learnmanagement2.com

www.absolutehrsolution.com

www.livestrong.com

www.informaworld.com

www.wikipedia.com

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Investors determine stock price on the basis of

the expected cash flows to be received from a stock

and the risk involved. Rational investors should use all

the information available with them or can easily obtain

through other sources. This information set consists of

both known information and beliefs about the future

prospects. An efficient market is defined as one in which

the prices of all securities quickly and fully reflects the

available information about the assets. This concept

postulates that investors will assimilate all relevant

information into prices in making their buy or sell

decisions. Therefore, the current price of stock reflects:

i. All known information including:

(a) Past information (e.g. last years quarterly

results.)

(b) Current information as well as events that

have been announced but are still

forthcoming.

ii. Information that can reasonably be inferred.

The present study is conducted to know the dividend

yield stocks behavior using quarterly results and

dividend announcement because it helps to update and

adjust projections of future performance. Moreover,

these are the key sources of information to determine

the stock price.

NEED OF THE STUDY

The present study on the dividend yielding stocks

behavior helps us for the following purposes:

i. Helps to assess the performance of the

dividend yielding stocks during results and

dividend announcement periods.

ii. Helps the investors to select the stocks which

would give good returns.

iii. Helps to build strong portfolio.

INTRODUCTION TO THE VARIABLES STOCKS

In finance, a stock represents a share in the ownership

of an incorporated company. In industrial societies

wealth used in production is owned in the aggregate

mostly by corporations rather than by individuals because

of the huge investments required. This trend began in

17th-century England when merchants formed JOINT-

STOCK COMPANIES, pooling capital to be used jointly

in trading and manufacturing. Participants then received

dividends, shares of the common PROFIT proportionate

to their original investments

The wealth of individuals includes claims against, or

investments in, corporations. These are called securities,

the two most common being bonds and stocks. Corporate

bonds are evidences of corporate debt to the bondholder.

Stocks are evidences of ownership, or equity. Investors

A Study On Stock Price Behavior Of Dividend Yielding Stocks

During Announcement (Result And Dividend) Period

R. Thiyagaraj MBA., PGDED

Research Scholar - Business

Sheffield hallam University, United Kingdom


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A Study On Stock Price Behavior Of Dividend Yielding Stocks DuringAnnouncement (Result And Dividend) Period

24

buy stock in the hope that it will yield income from

dividends and appreciate, or grow, in value.

DIVIDEND STOCKS

Dividend stocks are less volatile due to the fact that

companies that pay out cash result in investors more

willing to hold dividend stocks through bear markets.

Dividend stocks tend not to rise as quickly as non-

dividend stocks during roaring bull markets. Dividend

stocks also do not fall as far as rapidly as non-dividend

stocks. Investors are now looking for downside

protection due to slow economic growth.

Dividends are paid on earnings per share meaning the

more shares of a particular stock that we have the more

we will receive when dividends are paid. This normally

occurs quarterly, during earnings season, and when

businesses report earnings and profits or losses on

dividend stocks. Some dividends are paid on certain

bonds or other investment options that are done through

a money market account. These dividends are a form of

interest for the investment. In most cases, dividends are

paid into a money market account so that they can

withdraw them reinvest them.

DIVIDEND YIELD

The dividend yield on a company stock is the companys

annual dividend payments divided by its market cap, or

the dividend per share divided by the price per share. It

is often expressed as a percentage. Historically, a higher

dividend yield has been considered to be desirable among

investors. A high dividend yield can be considered to be

evidence that a stock is under priced or that the company

has fallen on hard times and future dividends will not

be as high as previous ones. Similarly a low dividend

yield can be considered evidence that the stock is

overpriced or that future dividends might be higher.

Dividend yield fell out of favor somewhat during the

1990s because of an increasing emphasis on price

appreciation over dividends as the main form of return

on investments. The importance of the dividend yield in

determining investment strength is still a debated topic.

The persistent historic low in the Dow Jones dividend

yield during the early 21st century is considered by some

bearish investors as indicative that the market is still

overvalued.

SHARE PRICE/ STOCK PRICE

A Share Price is the price of a share. These are usually

quoted with two prices the Buy and Sell price. The Buy

price is the first, and lower, price and represents the

amount that we would receive if we sold the share. It is

the price that someone else is prepared to pay to buy ourshare. The Sell price is the amount that we would need

to pay to obtain the share. It is the amount someone is

asking to sell the share to us. There is also a Mid Price,

which is the middle amount between the Buy and Sell

prices. This is usually used to quote the current value of

the share. For example a price of 110/120p would

generally have a Mid price of 115p. It is this price that is

generally quoted in newspapers and used for calculating

the Indexes.

TECHNICAL ANALYSIS

Technical analysis of the market is based on some basic

tenets, namely, that all fundamental factors are

discounted by the market and are reflected in prices.

Secondly, these prices move in trends or waves which

can be both upward and downward depending on the

sentiment, psychology and emotions of operations or

traders. Thirdly, the present trends are influenced by the

past trends, and the projection of future trends is possible

by an analysis of past price trends. Analysis of historical

trends confirmed the above principles and the Random

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Walk Theory explaining the randomness of price changes

has been found to be not applicable by the technical

analysts in practice.

History of Technical Analysis

The technical analysis is based on the doctrine given by

Charles. H. Dow in 1984, in the Wall Street Journal. He

wrote a series of articles in the Wall Street Journal. A. J.

Nelson, a close friend of Charles Dow formalized the

Dow Theory for economic forecasting. The analysts used

charts of individual stocks and moving average in the

early 1920s. Later on, with the aid of calculators and

computers, sophisticated techniques came into vogue.

CANDLESTICK

Introduction to Candlesticks

A candlestick chart is a style of bar-chart used primarily

to describe price movements of equity over time. it is a

combination of a line-chart and a bar-chart, in that each

bar represents the range of price movement over a given

time interval. It is most often used in technical analysis

of equity and currency price patterns. They appear

superficially similar to error bars, but are unrelated.

REVIEW OF LITERATURE

Benjamin Graham has described the nature of equity

shares, referred to as common stocks in the U.S. very

aptly as that it have one important characteristic and one

important speculative characteristic. Their investment

values and average market price tend to increase

irregularly but persistently over the decades, as their net

worth builds up through the re- investment of

undistributed earnings. However, most of the time

common stocks are subject to irrational and excessive

price fluctuation in both directions, as the consequence

of the ingrained tendency of most people to speculate or

gamble, i.e. no give way to hope, fear and greed.

Ball and Brown (1968) studied the effect of annual

earnings announcements. They divided firms into two

groups. First group consisted of firms whose earnings

increased in relation to the average corporate earnings

and the second group consisted of firms whose earnings

decreased in relation to the average corporate earnings.

They found that before the announcement of earnings,

stocks in the first group earned positive abnormal returns

whereas stocks in the second group earned negative

abnormal returns. After the announcement of earnings,

however, stocks in both groups earned normal return.

Rose (1977) proposed an incentive- signaling model

whereby firms use their decisions regarding capital

structure and dividend policy to convey information to

the investing public. Specifically, the firm was pictured

as providing information concerning the firms future

earnings prospects via the setting of its dividend policy.

The basic premise here is that the firms management

cannot simply announce its expectations concerning the

firms future earnings prospects, for they have an

incentive to paint a very rosy picture and the public may

not believe them. Hence, management must turn to the

use of signals that cannot be manipulated or imitated by

unsuccessful firms. Thus, a glowing earnings report

issued by management is more likely to be believed if it

is accompanied by an increase in cash dividends.

OBJECTIVES

1. To analyze the performance of dividend yielding

stocks during announcement (results and

dividend) periods.

2. To find whether the results and dividend

announcements would give a positive effect on

the price movements

3. To identify whether the dividend yielding stocks

would give a high return during the

announcement period.

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4. To find the strength and weakness of the

dividend yielding stocks during the study period.

RESEARCH METHODOLOGY

RESEARCH DESIGN:-

The study aims at analyzing the behavior of dividend

yielding stocks during results and dividend

announcements. As the study describes the existing facts

and figures, the research design followed is exploratory

in nature.The data is collected secondarily. The data is

collected through magazines, journals and newspapers.

The index data is collected through the Internet source.

The period of study taken to analyze the stock price

behavior is for 3 years (2005, 2006 and 2007). The stock

price of 1 month, before and after the announcements

of results and dividend declared is taken for data

consideration.

TOOLS FOR ANALYSIS:-

i. The simple moving average model is applied to

selected companies of BSE companies.

ii. The Candlestick charts are used to know the

particular trading days Open, High, Low and

Close price.

SAMPLING TECHNIQUE:-

The technique used here is Random Sampling.Samples

of 3 High dividend yield stocks and 3 low dividend yield

stocks under Group A from BSE Companies are selected

for comparison using Simple Moving Average Model

analysis.

High Dividend Stocks:-

i. Wyeth Ltd.

ii. ICI India Ltd.

iii. Hindustan Petroleum Corporation Ltd.

Other Stocks (Dividend Yielding below 0.50%):-

i. Bharat Heavy Electricals Ltd (BHEL).

ii. Reliance Industry.

iii. Reliance Capital.

LIMITATIONS

i. The study is based on secondary data and hence

it has its own limitations.

ii. The scope of the study is limited to simple

moving average.

iii. The study is limited to SENSEX indices only

for the analysis.

iv. Behavior analysis of dividend stock is

conducted by taking selected companies.

ANALYSIS AND INTERPRETATION

Introduction to Technical Analysis

It is a process of identifying trend reversals at an earlier

stage to formulate the buying and selling strategy. With

the help of several indicators they analyze the

relationship between price- volume and supply- demand

for the overall market and the individual stock. Volume

is favorable on the upswing i.e. the number of shares

traded is greater than before and on the downside the

number of shares traded dwindles. If it is the other way

round, trend reversals can be expected.

Tools of Technical Analysis

i. Daily fluctuation or Volatility.

ii. Floating Stock and Volume of Trade.

iii. Price Trends and Volume Trends.

iv. Rate of Change of Prices and Volumes or the

ROC Method.

v. Japanese Candlestick Method.

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vi. Moving Average

vii. Dow Theory.

viii.Elliot Wave Theory.

ix. Theory of Gaps.

x. Advance Decline Line or Spread of the Market.

xi. Relative Strength Index (RSI).

Among the above technical analysis tools,

moving average was used for the analysis and

candlestick charts are used to describe the price

movements of equity over time.

Moving Averages

The analysis of the moving averages of the prices of

scrips is another method in technical analysis. Generally,

7 day, 10- day and 15- day moving average are worked

out in respect of scrips studied and depicted on a graph

along with similar moving averages of the market index

like BSE Sensitive Index. There will then be two graphs

to be compared and when the trends are similar, the scrip

and BSE market index will show comparable average

risks.

The theory of moving averages also lays down the

following guidelines for identifying the buy and sell

signals. Whenever the moving average price line cuts

the actual price line of the scrip or of the market index

from the bottom, it is a signal to sell shares. Conversely,

when the moving average line cuts the actual price line

from above, it is the right time to buy shares. Here the

comparison can be made separately for the BSE market

index moving average with its actual price index and

the moving average price of any scrip with its actual

price.

CHART 1: Chart showing quarterly results of Wyeth India

Wyeth - Quarterly Results

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CHART 2: Chart showing cumulative performance of Wyeth India

CHART 3: Chart showing dividend yield of Wyeth India

Wyeth - Cumulative

Wyeth - Divided Yield

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CHART 4: Chart showing dividend in Rs. of Wyeth India

CHART 5: Chart showing price behavior of Jun05 quarterly result of Wyeth India

1. Net Profit of the quarterly result Jun05 increased to Rs.27.38 Cr. The EPS was at Rs.12.05 and the P/E

ratio increased to 38.28.

2. Before 15 days of the quarterly result (Jun05) announcement, the prices were at Rs.84.25. On the

announcement day (28 Jul05) it got increased by 11.63% (Rs.94.05). After 15 days of the announcement it

moved downward by 4.62% (Rs.89.7).

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S.

N

Quarterly

results/

Dividend

Announcement

Day

Announcement

day Price

Before

15

days

Percentage

of increase/

decrease

After

15

days

Percentage

of increase

/decrease

1 Jun05 28 Jul05 97.1 84.25 ? 11.63 89.7 ? 4.62

2 Sep05 26 Oct05 557.15 600.4 ? 7.2 607.2 ? 8.9

3 Dec05 25 Jan06 740.65 710.15 ? 4.29 606.9 ? 18.05

4 Mar06&

Dividend.

9 Jun06 523.7 591.35 ? 11.4 513.1 ? 2.02

5 Jun06 26 Jul06 479.5 522.95 ? 8.3 569.7 ? 18.82

6 Sep06 27 Oct06 564.8 591 ? 4.4 522.5 ? 7.47 Dec06 19 Jan07 533.3 498.5 ? 6.98 499.9 ? 6.2

8 Mar07 &Dividend.

13 Jun07 558.25 510.45 ? 9.36 568.7 ? 1.87

9 Jun07 30 Jul07 557.15 560.4 ? 0.57 501.9 ? 9.9

10 Sep07 27 Oct07 477.55 482.5 ? 1.02 444 ? 7.02

11 Dec07 24 Jan08 458.05 525.95 ? 12.9 469.9 ? 2.5

INTERPRETATION:

The above table gives the overall picture of the price

behavior of Wyeth India. There is a heavy fall of 18.05%

in the prices after Dec05 result announcement and there

is a large increase of 18.82% in the prices after Jun06

result announcement.

FINDINGS

From the analysis the following findings has been

derived:-

High Dividend Yielding Stocks:-

The performances of quarterly results high

dividend yielding stocks are poor and also

incurred losses during the study period. Among

the sample stocks, HPCL incurred huge loss of

Rs.1077.75 Cr in the Dec05 result.

Among the high dividend yielding samples, P/

E ratio of Wyeth is highest of 809.74 during

Mar 06, followed by HPCL in Dec07 result is

802.6.

EPS of ICI India is good during 2006 when

compared to 2005 and 2007

P/E ratio and EPS are in negative for HPCL

during 2005.

Dividends are high where as the share prices

are low and hence dividend yielding ratios are

good for these stocks.

The share prices are moving around 500 points

during the study period.

During result announcement, there are no

excessive price movements in both directions.

(Hardly little or no fluctuations.)

Because of high dividend yielding ratios, these

stocks are performing well during dividend

announcement.

Investor can earn moderate income from the

dividend. They cant earn huge return from the

cash flow of the share prices.

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Low Dividend Yielding Stocks: -

The performances of low dividend yielding

stocks in the quarterly results are good.

Particularly BHEL is the highest earner of Net

profit in 2006- 2007 cumulative results.

P/E ratio and EPS are also good for these shares.

EPS of Reliance Industry is increasing gradually

year by year. P/E ratio of Reliance capital during

Dec07 result is highest among the low dividend

yielding samples.

Dividends are moderate and the prices of these

stocks are high. Hence the dividend yielding

ratios of these stocks are low.

Share price of these stocks crossed 2500 points

in 2007 from 150 points in 2005.

There is an excessive price fluctuations in both

directions during the result announcements and

the price movement is highly depending on the

EPS, P/E ratio and demand and supply factors

Dividend announcements of these stocks have

a minor impact on the price. Usually, it has an

adverse effect on the prices of these stocks.

Investor can earn huge profit through cash flows

than from the dividend.

SUGGESTIONS

Investor can select low dividend stocks like BHEL, RIL,

and Reliance Capital to build their portfolio when:-

i. They requires high rate of return

ii. The investment is for short period

iii. The market is bull.

iv. They are ready to take high risks

Investor can select High dividend stocks like Wyeth

India, ICI India, HPCL etc. to build their portfolio when:-

i. The market is bear

ii. They want moderate return as dividend from the

investment.

iii. They like to reduce the risks of their investment.

iv. They want long term investment

CONCLUSION

The study was conducted to analyze the price behavior

of dividend yielding stocks during result and dividend

announcements. Three day moving average and candle

sticks charts are used to analyze the price behavior. The

study reveals the fact that the share price movements

are depends mostly on the announcements made by the

company, particularly P/E ratios and EPS of the quarterly

results. Because, EPS is the profit that the company made

per share on the last quarter and P/E gives us fair idea of

how a companys share price compares to its earnings.

Apart from these two factors the share price is directly

affected by the trend of stock market trading. When more

people are buying a certain stock, the price of that stock

increases and when more people are selling the stock,

the price of that particular stock falls. On the other hand,

dividend has lesser impact on the prices of the shares.

The study also proves that the high dividend yielding

stocks can be able to withstand in both bull and bear

period. But, the low dividend yielding stocks gain largely

during bull period and fall heavily during bear period.

Hence low dividend yielding stocks give more returns.

But the high dividend yielding stocks are safer for the

investment because it is less risky and price movements

are less in both bull and bear market.

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BIBLIOGRAPHY

BOOKS

1. Ross, Westerfield, Jordan, Essentials of

Corporate Finance, 3rd Edition.

2. Oswald.D.Bowlin, John. D. Martin, David.

F.Scott, Financial Analysis, 2nd Edition,

McGraw Hill.

3. Charles.P.Jones, Investment Analysis and

Management, 9th Edition, John Willy & Sons,

Inc.

4. Donald.E.Fisher and Ronald. J. Jordan,

Security Analysis and Portfolio Management,

6th Edition, Eastern Economy Edition.

5. Prasanna Chandra, Investment Analysis and

Portfolio Management, McGraw - Hill

WEB SITES

1. ht tp:/ /www.candlest ickforum.com/PPF/

Parameters/11_2126_/candlestick.asp

2. http://www.montacute.net/markets/definitions/

shareprice.htm

3. http://www.geocities.com/WallStreet/Bureau/

1729/stock.html

4. http://www.behaviouralfinance.net/

5. http://www.bseindia.com/

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A Study On Retailer As A Route To Rural Market

V. Indhumathi

Assistant Professor,

P.S.G.R Krishnammal College for Women


Peelamedu , Coimbatore.


Abstract:

Rural markets are an important and growing market for

most products and services including telecom. The

characteristics of the market in terms of low and spread

out population and limited purchasing power make it a

difficult market to capture. The Bottom of the pyramid

marketing strategies and the 4 As model of Availability,

Affordability, Acceptability and Awareness provide us

with a means of developing appropriate strategies to

tackle the marketing issues for marketing telecom

services in rural areas. Successful cases like the Grameen

Phone in Bangladesh and Smart Communications Inc in

Philippines also provide us with some guidelines to

tackling the issue.

Introduction

From the strict marketing point of view, the market

structure in India is dichotomous having rural and urban

markets. But many do not concur with this view as they

contend that consumer everywhere is a consumer and

hence their needs, aspirations, beliefs and attitudes will

also be the same. The fact, however, remains that there

are certain unique characteristic features which call for

separate marketing strategies to be distinctively

developed to suit the rural and urban market behaviour.

Marketing today has changed the dynamics of the

business. As the consumers are getting informative, the

business is becoming competitive day-by-day. Marketers

are seeking fresher challenges everyday and are looking

to increase their realm. The urban consumer has been

coddled till now but this market is shrinking, prompting

the marketer to now explore the rural consumers, which

promises a huge potential.

Rural Marketing

Rural marketing is promotion of a companys products

in the rural market buy using strategies which differs

from that of urban market, the rural market is more price

sensitive but it has preference for quality.

What Constitutes the Rural Market?

The census of India defines rural as any habitation where

the population density is less than 400 per sq. km, and

where at least 75 per cent of the male working population

is engaged in agriculture, and where there isnt any

municipality or board. Having said that, there are about

600,000-odd villages in India Leaving aside Hindustan

Lever and ITC, most FMCG Sector would define rural

as any place with a population below 20,000. Similarly,

durable and agri-input companies consider any town with

a population below rural, primarily because the adjoining

villagers come to shop there for say a television set.

The Rural Market Potential

The rural market has been growing steadily over the past

few years and is now even bigger than the urban market.

At present 53 per cent of all FMCGs and 59 per cent of

all consumer durables are being sold in rural India. The

biggest FMCG Company in India HLL derives more than

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A Study On Retailer As A Route To Rural Market

34

half of its Rs. 12,000 crore revenues from the rural

markets. Though there is a high component of sales in

some particular product categories like radios, watches,

casette players, the penetration levels are abysmally low,

and therefore, offer tremendous potential for growth.

The Traditional Rural Market

Since ancient times, Indian villages had the concept of

village markets popularly known as the village Haats.

The haats are basically a gathering of the local buyers

and sellers. The barter system was quite prevalent, which

is still continuing in a number of places even today. Haats

are basically a weekly event and are central to the village

economy.

Rural Consumers Buying Behavior

With the increase in the rural literacy levels and the

exposure to media, people in rural media are also

becoming conscious about their buying decisions like

their urban counterparts. There has been a significant

rise in the brand awareness among the people. As a result

they are becoming choosier and demanding than ever

before, so any company has to properly analyze the

psychographics before entering this market. Infact, if

we look at the rural consumers shopping basket, we can

see that of the expenditure on consumer goods in rural

household, approximately, 44% is on food articles such

as biscuits, tea, coffee and salt, 20% on toiletries, 13%

on washing material, 10% on cosmetics, 4% on OTC

products, and 9% on other

Documents

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