IIMS Journal of Management Science



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Vol.2, No.2, July-December 2011 Contents Employees Performance Appraisal and Improvement: A Composite Model T.R.Manoharan* C. Muralidharan* S.G. Deshmukh* Saving and Investment Relationship in India A Vector Error Correction Modelling P.K. Mishra Pay per Click Advertising- A Quantitative Perspective Gunjan Malhotra, U. Srivedi Framework for Purchase and Inventory Management Decisions in Two Academic Institutes Sharif The Meaning of Learning in Organisations and Knowledge Acquisition: A Competency Based Perspective M. Kameshwar Rao, Sasmita Palo SEZ (Special Economic Zones) in India: A Review of Macro Environment variables TarunDhingra, Tripti Singh, Ambalika Sinha Job Content and Job Context Dimensions of Employee Expectations in the Psychological Contract: A Cost- Reward Analysis in the IT Context V. Vijaya Testing Weak form Market Efficiency: A Study of Selected Indices of National Stock Exchange Anil K. Sharma, Neha Seth

Role of Manufacturing Competencies on Performance of Indian Manufacturing Firms- An Empirical Study Rameshwar Dubey IIMS Journal of Management Science Volume 2, Number 2, July-December 2011, pp. 130-141 Employees Performance Appraisal and Improvement: A Composite Model T.R. Manoharan* C. Muralidharan* S.G. Deshmukh* Performance Appraisal (PA) is being prided as one of the most critical among all HRM. An effectively designed, implemented, and administered PA system can provide the organisation, the manager and the employee with a plethora of benefits. This paper demonstrates how an integrated tool like Data envelopment analysis (DEA), fuzzy multi-attribute decision-making (FMADM), with fuzzy analytic hierarchy process (FAHP), fuzzy quality function deployment (FQFD) are applied as a fair evaluating and sorting tool to support PA system. The fuzzy linguistic approach has the advantage of reducing distortion and losing of information. FMADM focuses on the best practices of employees for the purpose of improving overall performance. Unlike traditional performance appraisals, FMADM searches for the highly skilled employees, those serve as peers. This study supports the ideas that rating formats need re-examination as an alternative to traditional rating methods. FMADM could overcome shortfalls of earlier adopted methods that seldom identified and quantified individual factors for improvement. Based on the results of FMADM improvement in employees performance are possible by way of providing training, talent enhancement and further qualification wherever required. Interpretive structural modelling (ISM) is used to analyse inter-relationships among PA factors to plan and design employees training programme for enhancing their knowledge, skills and attributes (KSA)

KEYWORDS: Data Envelopment Analysis, Fuzzy Analytic Hierarchy Process, Fuzzy Multi- Attribute Decision Making, Fuzzy Quality Function Deployment, Interpretive Structural Modelling, Knowledge, Skills and Attributes, Performance Appraisal. JEL CLASSIFICATION: O15 BIIOGRAPHICAL NOTE: Dr. T.R. Manoharan is a faculty member in the Department of Manufacturing Engineering at Annamalai University. His research interests are in Human Resource Management., CIMS. He can be reached at manoharantr@yahoo.com Dr. C. Muralidharan is a faculty member in the Department of Manufacturing Engineering at Annamalai University. His research interests are in Manufacturing Management and Quality Management. He can be reached at muralre@yahoo.co.in Dr. S.G. Deshmukh is presently Director of ABV-IIITM, Gwalior. He is former professor of Department of Mechanical Engineering at IIT Delhi. His research interests are in Supply Chain Management, Quality Management, Information Systems, and System Optimisation. He can be reached at deshmukhsg@gmail.com

Volume 2, Number 2, July-December 2011, pp. 142-154 Saving and Investment Relationship in India: A Vector Error Correction Modelling P.K Mishra* The study of the relationship between saving and investment has a wide relevance for developed as well as developing nations. Economists often claim that higher savings contribute to increased investment and growth of Gross Domestic Product in an economy and thus, savings and investment are key factors for the sustainable development of a country. So, the objective of this paper is to investigate the relationship between savings and investment in the context of the Indian economy over the period 1950 51 to 2008 09. The use of the annual data in their natural logarithms in co integration test provides the evidence of existence of long-run equilibrium relationship between saving and investment. And, the vector error correction modelling suggests that there exists long-run unidirectional causality between the variables running from saving to investment. The Granger causality test supports the existence of shortrun unidirectional causality running in the same direction too. This result disproves the classical theory, and establishes the Keynes view on saving-investment relationship. In addition, since higher economic growth warrants a balance between savings and investment, the policy makers should bring a trade off between monetary and fiscal policies. KEYWORDS: Savings, Investment, Co- integration, VECM, Granger Causality JEL CLASSIFICATION: C32, E21, E22 BIOGRAPHICAL NOTE: P K Mishra, Ph.D is currently Assistant Professor of Applied Economics at Siksha O Anusandhan University, Bhubaneswar, and Orissa, India. He has published more than 40 research papers in several indexed and referred journals. He has been

working as the member of editorial advisory board of Interdisciplinary Studies Journal, Finland and reviewer of African Journal of Business Management, Journal of Development and Agricultural Economics, and International Research Journal of Management and Business Studies. He has authored 9 text and reference books at the national level. He can be reached atpkmishra1974@gmail.com

Volume 2, Number 2, July-December 2011, pp. 155-164 Pay per Click Advertising- A Quantitative Perspective Gunjan Malhotra* U. Sridevi* Today most of our population uses the internet significantly and an advertiser cannot ignore this medium for advertising. One of the famous online advertising forms is the Pay per Click (PPC) advertising. Paid search advertising is commonly much simpler than any other form of advertising. The most striking feature of this type of advertising is total control on the costs. This study tries to analyse the Google PPC advertising function & attempts to provide a reasonable idea on how simple quantitative tools can help in making a wise decision on the allocation of funds to the PPC advertising. Further it tries to estimate the correlation between the average position of the ad shown & the number of clicks by using regression equation. The study concludes that marketer can manage the PPC advertising budgets judiciously. KEYWORDS: Online Marketing, Pay Per Click Advertising, Google Ad-words JEL CLASSIFICATION: M31, M37 BIOGRAPHICAL NOTE: DrGunjan Malhotra is currently working as Assistant Professor at Institute of Management Technology (IMT) Ghaziabad, India. Her research papers have been published in various international and national journals and conferences. She can be reached at gmalhotra@imt.edu, mailforgunjan@gmail.com. U. Sridevi is currently working as Ad words Account Planner; Google India Pvt. Ltd. She can be reached at sridevisarkar@gmail.com

Volume 2, Number 2, July-December 2011, pp. 165-172 Framework for Purchase and Inventory Management Decisions in Two Academic Institutes Sharif* Inventory management basically aims at providing both internal and external customers with the required service levels in terms of quality, quantity and order rate fill to ascertain present and future requirements for all types of inventory to avoid overstocking and keeping costs to a minimum. As customer satisfaction is given more importance in academic institutions, quality and timely material supply is the primary consideration today. The inventory management system has therefore, to be designed in such a way that it should provide higher customer satisfaction. This paper discusses the overall purchase and inventory management system followed in two academic institutions and provides set of legitimate suggestions to improve the system. KEYWORDS:Academic Institutions, Inventory management, Overstocking JEL CLASSIFICATION:M11 BIOGRAPHICAL NOTE: Dr. Sharif is currently working at Indian Institute of Technology Kanpur (IITK). His area of specialization is Operations Managements and is presently in the Dean of Faculty Affairs Office. He can be reached at sharif@iitk.ac.in

Volume 2, Number 2, July-December 2011, pp. 173-184 The Meaning of Learning in Organisations and Knowledge Acquisition: A Competency Based Perspective M.Kameshwar Rao* Sasmita Palo** For leveraging the competitive advantage, organisations have to necessarily depend on the new frontiers of knowledge. Hence, learning becomes an integral part of any organisation to generate superior performance. Learning plays a crucial role in creating and disseminating knowledge throughout the organisation. Knowledge has undoubtedly become a major source of competitive advantage for many industries. This paper highlights the relationship between learning, knowledge and managerial competencies in an organisation. Apart from this, the paper also argues that the organisation must focus on developing the managerial competencies to attain a competitive advantage in learning and knowledge acquisition KEYWORDS: Learning, Organisational Learning, Knowledge Acquisition, managerial Competencies JEL CLASSIFICATION: L20 BIOGRAPHICAL NOTE: M. Kameshwar Rao is working as an assistant professor in the department of management studies, at National Institute of Technology, Tiruchirappalli, Tamil Nadu. He has published many articles both at national and international level. He can be reached at mkameshrao@nitt.edu Dr. Sasmita Palo is Associate Professor & chairperson in the School of Management and Labour Studies at Tata Institute of Social Science, Mumbai. She has written many articles in both international and national level journals. She can be reached at spalo@tiss.edu

Volume 2, Number 2, July-December 2011, pp. 185-196 SEZ (Special Economic Zones) in India: A Review of Macro Environment variables TarunDhingra* Tripti Singh* Ambalika Sinha* This paper evaluates the concept of SEZ (Special Economic Zones), its classification, competitiveness in terms of exports and employment generated and also analyse the macro environment like Economic, legal, political and social issues of SEZ. The paper found from the analysis that success factors associated with SEZ are location decision of SEZ, linkages with domestic economy, Government and its institution support and ability of zones to attract factors of production (men, machine, money and materials) and macro environment issues dominate the SEZ policy formulation and execution KEYWORDS: Special Economic Zones, Macro Environment Variables JEL CLASSIFICATION: R3, F13 BIOGRAPHICAL NOTE: Dr. Tarun Dhingra is Assistant Professor of strategy at University of Petroleum & Energy Studies, Dehradun. He has published research papers in various international journals like Competitiveness Review &Foreigntrade review on the issues of competitiveness and special economic zones. He can be reached at replytarun@gmail.com. Dr. Tripti Singh is Assistant Professor in School of Management Studies at Motilal Nehru National Institute of Technology, Allahabad. She has published research papers in various

national and international journals in the area of Competitiveness, SHRM. She can be reached at tripti@mnnit.ac.in Dr. Ambalika Sinha is Assistant Professor at Department of Humanities and Social Science, Motilal Nehru National Institute of Technology, Allahabad. She has published research papers in various national and international journals in the area of Stress Management & HRM. She can be reached at ambalika. mnnit@gmail.com

Volume 2, Number 2, July-December 2011, pp. 197-214 Job Content and Job Context Dimensions of Employee Expectations in the Psychological Contract: A Cost- Reward Analysis in the IT Context V. Vijaya This paper uses factor analysis to identify dimensions of employee expectations in the psychological contract in the IT sector. The paper also provides an analysis of the cost-reward implications of fulfilling employee expectations. The study identified four factors of expectations: two related to job content and two related to job context. The study found that learning and project expectations emerge as strong job content expectations and Job context expectations are comparatively lower in strength. It also indicates that there is no direct and immediate connection in terms of the cost as well as rewards incurred. The study concludes that job content expectations are stronger than job context expectations KEYWORDS: Job Content, Job Context, Factor Analysis JEL CLASSIFICATION: M12 BIOGRAPHICAL NOTE: V. Vijaya is currently working as a faculty at T.A.Pai. Management Institute, Manipal and is stationed at TAPMI Centre for Executive Education,Plot #2, Block IV B, 100feet Road,Koramangala, Bangalore-560 034. She can be reached at Vijaya. dharmarajan@gmail.com or Vijaya@tapmi.edu.in

Volume 2, Number 2, July-December 2011, pp. 215-229 Testing Weak form Market Efficiency:A Study of Selected Indices of National Stock Exchange Anil K. Sharma* Neha Seth** Informational efficiency of the Stock market is an important parameter to determine the effectiveness of a financial system, especially in the Indian context. The efficiency of Indian stock markets, especially the leading stock exchange of India the National Stock Exchange (NSE), attracts the attention of researchers in view of recent instability in investment levels and the global financial turmoil. This paper therefore, attempts to seek evidence for the weak form efficient market hypothesis using the daily data for two stock indices of NSE i.e. S&P CNX Nifty and Nifty Junior from the National Stock Exchange for the period 1 st January, 2000 to 31 st December 2009. We have used Kolmogrov Smirnov test and Run test which is a nonparametric test and a Unit Root Test, which is a parametric test to examine weak-form market efficiency. KEYWORDS: Market Efficiency, National Stock Exchange, Efficient Market Hypotheses, Nifty, Nifty Junior JEL CLASSIFICATION: G14 BIOGRAPHICAL NOTE: Dr. Anil K. Sharma is currently working as Associate Professor at Indian Institute of Technology Roorkee. He can be reached at aanilkssharma@gmail.com Ms. Neha Seth is currently Research Scholar at Indian Institute of Technology Roorkee. She can be reached at neha_seth01@yahoo.com

Volume 2, Number 2, July-December 2011, pp. 230-246 Role of Manufacturing Competencies on Performance of Indian Manufacturing Firms- An Empirical Study Rameshwar Dubey* India is one of the fastest emerging global manufacturing hubs with a large number of firms shifting their manufacturing base to the country due to cheap labour and good suppliers base. Over the years, India has the largest number of companies, besides Japan, that have been recognized for excellence in quality. As many as 21 companies have received the Deming Excellence awards; 153 companies have achieved Total Productive Maintenance (TPM) Excellence Award for their total productivity management practices by the Japan Institute of Plant Maintenance (JIPM) committee (Source: IBEF, 2010).Here in this research article author conducted an empirical survey among Indian manufacturing firms to understand how manufacturing competency effects the firm performance. It has been observed that manufacturing competency has a negative impact on firm performance which is contradicting with the so far empirical studies conducted in European, Japanese and American countries. Here in this study authors have provided an in depth analysis to explain this negative impact and how this can lead to positive impact KEYWORDS: Manufacturing Competency, Manufacturing Sector, Firm Performance JEL CLASSIFICATION: N65, O47, O14

BIOGRAPHICAL NOTE: Rameshwar Dubey is currently Secretary & Head-Centre of Supply Chain Excellence, Asian Council of Logistics Management, Kolkata. He can be reached atrameshwardubey@gmail.com.his current research interest lies in World Class Manufacturing practices,total Quality Management,Lean Manufacturing,Green Supply Chain Management,Project Logistics and Supply Chain Skill Gap Study. He has been instrumental in promoting research culture among industry practiconers for which he in support with Asian Council of Logistics Management, AIMS International and Society of Operations Management has created a Centre of Supply Chain Excellence. He is also an Editor of prestigious Journal Logistics Today.Beside research he is actively involved in teaching and presently associated with premier B-Schools like IIMs,TAPMI,NSHM Business School,School of Logistics & Supply Chain Management,UPES,UTM