University of Phoenix and I Essay Example for Free

University of Phoenix and I Essay It is clear to me how University of Phoenix’ convenient and efficient educational program designed for working professionals, has helped me grow. I see tremendous change and development in myself. I have not only matured personally and professionally, but have also grown to believe in orderly goals and motives with respect to my existence. My life has been organized and I see greater potential for my progress. The outlook of the entire university, dedicated to the success of its students, may be viewed now in who I am as compared to who I was before joining the BS of Information Technology program. When I started the program at University of Phoenix, my professional attitude was unseasoned. I was an unsure person, someone who had not matured. My humble and uninformed self did not allow me to think much of my career. I had briefly dreamt of becoming a graphic designer. However, I had wrongly imagined that I would not go too far. My mind was set at thinking that I might have to do with unsuitable jobs. What else are high school graduates supposed to do? I did not aspire to be great or hold lofty goals for my career. My goals were in fact, not many. I only desired to keep myself employed. My knowledge base was limited. I was raw. To that end, I am absolutely honest to claim that I knew little or nothing about the things I have learned at the University of Phoenix. Knowledge has been added on to my life at a rapid pace with this great program. Before this, life could seem sluggish to me as an unaware person. At work, I did not consider myself a professional. I did not even present myself as such. I was simply working; holding a job because one has to do that in this uncertain world. I would describe my writing skills before the program as ranging from bad to good. This is one of the areas where I have experienced drastic change. Besides, I now have extremely different views about myself and my career. My verbal communication skills before the program may also be described as varying from bad to good. With less confidence, the way I presented myself was obviously poor. I did not grasp at the time that professionally, one must appear assertive and proficient to get the work done. At present, I like to view myself as a thorough professional. My critical thinking skills before the program were good. All the same, my â€Å"Critical Thinking† (PHL/251) general education course worked wonders to polish my skills. It was for this reason that I had chosen the course. I believe that my decision was absolutely correct. After all, critical thinking is crucial in both personal and professional life. My interpersonal skills were always excellent, according to my opinion. This is because I believe in people, trust them, and wish to know more about them in order to be of assistance to them. I chose the general education course called â€Å"U. S. History to 1865† (HIS/110) because I was deeply interested in understanding the mechanics of human relationships, as well as the causes and effects of human decisions. Learning about U. S. history was essential, seeing that the people I share my space with do also share the same history. Hence, I believed unconsciously that I would be able to improve myself in my relations with others if I studied human history. Once again, my decision to opt for this general education course was correct, seeing that I now deal even more effectively in my personal and professional relationships. The most important core courses with respect to my employment were â€Å"Critical Thinking: Strategies in Decision Making† (MGT/350) and â€Å"Project Planning and Implementation† (CMGT/410). I opted for these courses because I believe that professionals who know the functions of management are always more successful than the rest. Furthermore, these courses helped me to assimilate my ideas about team projects as well as leadership. I further believe that all professionals must be armed with knowledge of management, even if this knowledge is specialized in terms of Information Technology. What is more, decision makers, project planners and implementers must always bear in mind the people connected with the decisions and projects. Indeed, this idea connected with my love for people and interest in human relations. Moreover, I now connect better with the people at my workplace, and truly understand more about the mechanics of decision making and project planning as well as implementation. One of the terminal objectives of my program was, of course, for me to mature into a successful individual in my professional life. Even at my current organization – General Mills, where I presently work as a Network Engineer – development and innovation are priorities as well as major targets. Hence, both the University of Phoenix and General Mills have contributed to my current upsurge or growth. But the job without the education at University of Phoenix would definitely not be as good as it is at present. At this time, however, my job is a huge part of who I am and who I want to be. The program at University of Phoenix has really been a great source of inspiration for me. Employment may have helped me go on living. But the education here has helped me to live life fully, to enjoy my work and to be proper in all respects. It has shown me the way to live life in a way that is better, not just to live as I may have heard others living. Life does not just drag on anymore. It is full of enthusiasm and anticipation for a bright present and future. I am applying the tools that I have learned through the University of Phoenix, and there is hope to use them in better ways to achieve higher goals. I am eager to learn even more of that which would help me along. Learning should be a life-long process so that one’s intellectual powers do not rust. Before the program, it was as though I, as a resource, was underutilized. Now I feel fully functional. Just as General Mills thrives on research and development, I see myself flourishing with an increase in my knowledge base and the utilization of my mental resources to their fullest capacity. The Information Technology skills learned by me through the program at University of Phoenix are incomparable to anything I have ever been taught. I feel more grown-up now because of what this program has done for me. I have been shown much of my potential. It seems that I have learned a lot and there is excitement in me now to know more. Life does not seem like dreary employment anymore. I enjoy my personal and professional life much more now that I have been a part of the University of Phoenix. As far as my ethical outlook is concerned, I see no change between the past and the present, and I do not see it changing either. My values have not changed. My self-esteem has increased because the way I see myself has changed. Whereas I may have been covered by darkness in my mind, I now see myself in the light, capable of doing much, maintaining goals, and wanting to do all that is good. I certainly have become advanced in my professional attitude. With regards to my personal attitude, I even walk more confidently now and that has a serious affect upon my professionalism too. At work, I have to be responsible, knowing and showing that I can make it right and to the top. It is as though I have been cultivated and I know what I am doing now. My career views have changed so much that whereas I had seen myself doing basic jobs and not going too far in my professional life before I joined University of Phoenix, now I feel confident and able to be the leader at work. I feel that the axiom ‘the sky is the limit’ is working in my life now. Earlier I may have thought that it is impossible to have such an attitude unless one’s performance was really marvelous. But this program has been about trying to do one’s best and fulfilling one’s potential. It has made me open my eyes and view the world out there full of possibilities for a bright human being wanting to do more and wanting to do what is excellent. I feel capable of reaching the top of my company now. Furthermore, now that I have had a glimpse of my highest potential, I also feel self-assured and competent enough to be at the top of another organization, if not my present company. A part of this newly found confidence in me is a result of observation. Even so, the knowledge that has been imparted to me with the wonderful Information Technology program takes most of the credit for my motivation today. Resonant with my new goals is the fact that my knowledge base has grown impressively. I now know not only that which is taught at undergraduate level in my field, but I am also seen by others as a better professional. My professional sense is increasing, signaling that I must continue trying to do better. I do not see the way down now. What is more, I am now able to hold professional presentations and meetings with high level professionals at General Mills. I am also more interested in my work at present. Over the next five years, my professional and personal attitudes may become more refined. I hope to become more mature and confident. I now understand how learning more can make one grow. I do not only want to continue learning, but I also want to continue growing until I can become a self-actualized individual. I wish to develop my ability to move to higher levels in my career through greater productivity. My goal is to be my best and also to be the very best in others’ opinion. I would like to attend a graduate program. I have so greatly and positively been influenced by the undergraduate program at University of Phoenix that I hunger for more of education. I understand to an extent how much it can do for me. Before the program, I did not think much of education besides the fact that it is necessary to a certain level. But because I have been working and noticing the changes that education brings into my professional life, I long to gather more knowledge. Education is directly related to success. I love the changes higher education has brought to my life and I welcome this fantastic transformation on an ongoing basis. Thinking is the basis of our actions, and if the undergraduate program at University of Phoenix could do so much for my life and attitudes, I cannot yet imagine where a graduate program might put me with regards to my professional position. I need more guidance for the future though, to be specific about what I would really do. I see the possibilities laid open before me, but which way do I really go? Many ways seem important. Perhaps I would settle for an MBA. In any case, I would have liked the University of Phoenix to better assist me in getting to the right place at the right time in future. To get a clearer sense of my educational goal at present, I may have to go for education counseling. I would like to recommend at this point that the University of Phoenix should incorporate an extensive education counseling program for its students. Over the next five years, I wish to grow to have more business sense. This may happen through higher education and additional years of experience at work. In point of fact, I would like to improve in all spheres of my life, and in the areas of my being that are good now, I would like to keep a balance whereby I do not drift to the low side of things. With my new outlook, I feel ready to take responsibility to add value to the world, even if it is solely by way of doing my job well and showing others that honesty, hard work and learning can go a long way. I feel worthwhile now and am prepared to continue struggling through life with zeal. When life gets slothful, I know what I must do to change that and to be promoted learn. I must continue learning.

Relations Between Turkey and America Essays -- Cold War Turkish Americ

Relations Between Turkey and America INTRODUCTION The purpose of this paper is to look for the relations between Turkey and America from the cold war to current issues I will study on the situations that are developed between America and Turkey starts from the end of the cold war such as â€Å"Truman doctrine†, â€Å"missile crisis† and â€Å"gulf war†.   Ã‚  Ã‚  Ã‚  Ã‚  The policies of United States and the reactions of Turkey’s against that policies will take part in this paper. COLD WAR The Soviet Union and the United States, after World War II, began a military competition. The Soviet Union, after the end of World War II, wished to expand the buffer zone between itself and the Western world. In addition to the original Polish territory, the USSR established communism in Rumania, Poland, Hungary, Bulgaria, Czechoslovakia and East Germany. The Kremlin felt that The United States was going to try to spread its capitalist ideals into all of Europe and eventually, the Soviet Union itself. Also, the United States saw the Soviet occupation of Eastern Europe as the beginning of a plan to spread Communism throughout the world. This misconception was the beginning of the Cold War. The relation ship between America and Turkey has improved from 1947. In this relation the geopolitical position of Turkey plays a big role. The Truman Doctrine The first United States anti-Communist action was, in 1947, to begin providing economic aid to countries pressured by outside powers. When Britain announced that it would withdraw aid to Greece and Turkey, the responsibility was passed on to the United States. America was afraid of spreading of communism because of that President Harry S. Truman asked military and economic aid for Greece and Turkey and established a doctrine named as the Truman Doctrine that would guide U.S. diplomacy for the next forty years. The United States had also been following events in Turkey. The weak government of Turkey faced Soviet pressure to share control of the strategic Dardanelle Straits. Also Turkey could prevent the expansion of Soviet Union to the Mediterranean and Middle East and it could be a set for the Soviet Union in a probable war. Also Turkey had an important geopolitical position for USA, Turkey could provide an important geopolitical advantage for USA in a war with Soviet Union. These were the most important reasons for USA to help Turkey... ...all in 21st century they have good relations).Especially after September 11 attacks, declaration war against terrorism by USA, Turkey decided to be with the USA side. Turkey had lots of problems about terrorism (especially PKK). Turkey had important geopolitical position because of that USA would not want to lost turkey. As long as the economic crisis exists in turkey the Turkish foreign policy will be more depended on USA and IMF. But at the and when we look at the current events in international arena, especially the visit of president of Turkey Ecevit to united states in January 14, 2002 we see that the USA- Turkish relations becoming better. REFERENCES: Baskà ½n Oran, TURK DIÞ POLITIKASI, Iletià ¾im yayà ½nlarà ½, Istanbul,2001. Idris Bal, TURK DIÞ POLIIKASI, Alfa basà ½m yayà ½m daà °Ãƒ ½tà ½m, 2001. Doà §.DR. Oral Sander, TURK-AMERà KAN ILIÞKILERI, Ankara, 1979. Dr. A. Haluk ÃÅ"lman, TURK-AMERIKAN DIPLOMATIK MUNASABETLERI, Ankara,1961. Kamuran Gà ¼rà ¼n, DIS ILISKILER VE TURK POLITIKASI,Ankara,1983 William Hale, TURKISH FOREIGN POLICY, Frank Cass publishers, britain, 2000. http://www.Turkey.org http://www.turk-yunan.gen.tr http://www.yale.edu

Strategic Human Resource Management: a Paradigm Shift for Achieving

International Bulletin of Business Administration ISSN: 1451-243X Issue 7 (2010)  © EuroJournals, Inc. 2010 http://www. eurojournals. com Strategic Human Resource Management (SHRM): A Paradigm Shift for Achieving Sustained Competitive Advantage in Organization Benjamin James Inyang Department of Business Management, University of Calabar P. M. B. 1115 Calabar, Nigeria E-mail: benji1955. [email  protected] co. uk Tel: +234 8033773403 Abstract The human resource of an organization offered the potential synergy for sustained competitive advantage, when properly deployed, maintained and utilized.From the onset, the traditional HRM, the formal system for managing people in organization, concerned itself essentially with transactional and administrative support services. The emergence of SHRM, concerned with the relationship between HRM and strategic management of the organization, was a paradigm shift. The strategic business partner model emphasized the proper integration or fit of HR practices with the business strategies of the organization, to generate a competitive advantage.To perform successfully, the roles of business partner and change agent under SHRM, the HR practitioner must be highly knowledgeable, multiskilled and acquire core competencies like business knowledge, strategic visioning and global operating skills, credibility and integrity, internal consulting skills, among others. Keywords: Strategic human resource management, human resource management, competitive advantage, fit, integration, business strategy, strategic business partner. 1. IntroductionAn organization requires the utilization of a complex array of resources to grow, survive and achieve the ultimate mission or objectives that informed its existence or creation. The mobilization and deployment of these resources – human, financial and material – in the right resource-mix, gives the organization leverage toward the desired end. Of these resources, the human resource is t he most potent and central, contributing significantly to corporate bottom line and competitiveness.The organization therefore gains sustained competitive advantage through people, the organization workforce. Competitive advantage is simply defined as anything that gives an organization an edge over the competitors in its market. According to Porter (1985), the unique talents among employees, including flexibility, innovation, superior performance, high productivity and personal customer service are ways employees provide a critical ingredient in developing a firm’s competitive position.Similarly, Chiavenato (2001) notes that employees are purveyors of activities and knowledge whose most important contributions in the organization are their intelligence and individual talents. There is a 23 growing consensus that effective management of human capital is critical to an organization’s success (Barney & Wright, 1998; Jackson, Hitt & DeNisi, 2003; Akhtar, Ding & Ge, 2008). Managing the human resources in the organization is the traditional responsibility of the personnel manager, a precursor to human resource management (HRM).Some scholars however equate HRM with personnel management, concerned with providing staff support in the organization (e. g. Guest, 1989). Other scholars consider HRM as a natural development of personnel management practices in the face of changing economic and business environment (Armstrong, 1989 & 2004; and Fajana, 2002). The people-management discipline is undergoing continuous metamorphosis, with the recent emergence of strategic human resource management (SHRM) in organization and management literature.In a recent review covering 30 years, Lengnick-Hall, Lengnick-Hall, Andrade & Drake (2009) present an evolutionary and chronological perspective on the development of SHRM. The authors identify the following seven themes which influenced the development of the field of SHRM: (1) explaining contingency perspective and fit, (2) shifting from a focus on managing people to creating strategic contributions, (3) elaborating HR system components and structure, (4) expanding the scope of SHRM, (5) achieving HR implementation and execution, (6) measuring outcomes of SHRM, and (7) evaluating methodological issues.SHRM is evolving as a new approach to the management of people, and specifically focusing on integrating the human capital to business strategy to enhance organizational competitiveness. According to Aswathappa (2004:39), â€Å"the advent of SHRM has brought forward the issues of linkages between the employer-employee relationships and wider organizational strategies and corporate objectives†. â€Å"The field of strategic human resources management has enjoyed a remarkable ascendancy during the past two decades, as both an academic literature and focus on management practice† (Becker & Huselid, 2006:898).The transition from the older HR practice with focus on staff matter to a subject of re-birth which focuses on linking people as organizational asset with the business strategy of the firm (Niehaus, 1995) means that the HR professional is performing a new and more challenging responsibility that requires new competencies and skills. He has to think outside the traditional organizational box of HR – and develop a radically different approach to manage the human capital and create a fit between HR architecture and business strategy formulation and implementation in the firm.The HR architecture, according to (Becker & Huselid, 2006:899) â€Å"is composed of the systems, practices, competencies, and employee performance behaviors that reflect the development and management of the firm’s strategic human capital†. This paper discusses the emergence of SHRM as a paradigm shift and the pertinent issues raised or implied in this transition. It further presents the resource-based view (RBV) of integrating SHRM with business strategy.The organizational im plications of the strategic business partner model for corporate competitiveness, and the strategic skills and core competencies required of the HR practitioner are finally discussed. 2. Literature Review: Traditional HRM versus SHRM In their seminal thesis on the development of HR function, Jamrog & Overholt (2004:1) declare that â€Å"over the past 100 years the HRM professional has been continuously evolving and changing, adding more and different responsibilities†.The authors’ account shows that the HRM function has evolved through many stages, from the medieval time through the industrial revolution, the scientific management, the human relations movement, etc. , to the present strategic business partner model. For most of its history, HR has mainly focused on the administrative aspects of HRM, except recently, with the strident call for HRM to become a strategic business partner (Ulrich, 1997; Brockbank 1999; Lawler III & Mohrman, 2000; and Lawler III & Mohrman, 2003). 24Some scholars therefore, are wont to differentiate between the traditional HRM and SHRM. Traditional HRM is transactional in nature, concerned essentially with providing administrative support in terms of staffing, recruitment, compensation and benefits (Rowden, 1999; and Wei, 2006). Ulrich (1997) argues that the HR function has been an administrative function headed by personnel whose roles are essentially focused on cost control and administrative activities. Managing people is therefore the responsibility of HR manager.HRM is then a â€Å"formal system for the management of people within the organization† (Bateman & Zeithaml, 1993:346). For Inyang (2001:8), HRM is simply â€Å"organization’s activities, which are directed at attracting, developing and maintaining an effective workforce†. The many transactional or administrative activities involved in managing the human resources of an organization – training and development, staff motivation, compensation, staff commitment, quality performance, etc. are meant to be carried out effectively to influence the achievement of corporate objectives (Inynag, 2008a).The paradigm shift from the administrative aspects of HRM led to the emergence of SHRM as a new generation of value-added core responsibility or function of HRM. The emphasis of SHRM is that of a strategic business partner. It now supports the company’s competitive advantage by providing high quality people and by helping business managers strategically plan the functions of the human capital within the organizations (Rowden, 1999). SHRM strongly beliefs that critical organizational capabilities or performance behaviors are sine qua non, for the attainment of a particular business strategy or goal.Unlike the traditional HRM which covers a wide range of employment practices, including recruitment, selection, performance appraisal, training and development and administration of compensation and benefits, SHRM refl ects a more flexible arrangement and utilization of human resources to achieve organizational goals, and accordingly helps organizations gain competitive advantage (Wei, 2006). For Becker & Huselid (2006:899) the traditional HRM differs from SHRM in two important ways: â€Å"First, SHRM focuses on organizational performance rather than individual performance.Second, it also emphasizes the role of HR management systems as solutions to business problems (including positive and negative complementarities) rather than individual HR management practices in isolation†. This therefore reflects a shift of emphasis from operating efficiency of individual employees to managerial efficiency of the entire organization. The distinction presented in this review shows SHRM as a more systematic approach, which extends beyond the management of human capital and people – management activity to involve the integration of human factors to strategic business goals of the organization.The s trategic business partner focus of SHRM helps to add value to the organization – by contributing to the bottom line and competitive advantage. Despite its current popularity among academics and HR professionals, SHRM is still experiencing problems of status identity and precise definition (McMahan, Virick & Wright, 1999: 101). Dyer & Kochan (1994) note the problem of status identity as affecting the development of a systematic theory of SHRM.Even the definitions of SHRM vary in emphasis among scholars: Wright & McMahan (1992); and Lundy (1994) emphasize the elements of HR planning; Hendry & Petigrew (1990, 1992) stress the management of organizational change; Watson (1986) defines it as coordination mechanism of the organization; Beer (1984), Guest (1987), Dyer & Holders (1988), Lengnick-Hall & Lengnick-Hall (1990); Schuler, Dowling & De Cieri (1993), Truss & Gratton (1994); Ulrich (1997), Boxall (1999); Brand & Bax (2002) highlight HR policies as a tool for business strategy .Despite the differences in definition, a common thread that is emerging in the literature is that which stresses the relationship between business strategy and HR practices as the core of SHRM. What has also emerged from the literature is the broad agreement of the basic function of SHRM, which is concerned with designing and implementing a set of internally consistent policies and practices that ensure the human capital of an organization contributes to the achievement of its business objectives (Schuler & MacMillan, 1984), Baird & Meshoulam, 1988; Jackson & Schuler, 1995).On his part, Armstrong (2004:105) states that SHRM is essentially â€Å"concerned with the relationship between human resource management and strategic management of the firm†. Following from this, he defines 25 SHRM as â€Å"the overall direction the organization wishes to pursue in order to achieve its goals through people† (p. 105). SHRM is a strategic approach to manage human resource of an org anization. It concerns all organizational ctivities which affect the behavior of individuals in their effort to formulate and implement planned strategies that will help organization achieve the business objectives. According to the Gomez-Mejia, Balking, & Cardy (1995), SHRM implies a managerial orientation that ensures that human resources are employed in a manner conducive to the achievement of organizational goals and missions. SHRM must give careful consideration to the organizational import of all human resource decisions and to their links with the external environment and the organization’s competitive strategy (Beaumont, 1993).In their own contribution, Boxall & Purcell (2003) argue that SHRM is concerned with explaining how HRM influences organizational performance. It is obvious from this point that SHRM is based on the principles incorporating, the concept of strategy. Therefore, if HRM is a coherent approach to the management of people, then SHRM implies that this approach is done on a planned way that integrates organizational goals with policies and action sequences (CIPD, 2007). 3. SHRM and Business Strategy Fit or IntegrationThe new business context, which is characterized by increasing globalization, greater organizational complexity, market competitiveness and cutting-edge information communication technology, is prompting organization executives to take more interest in the deployment and utilization of their human resources. The HR function is therefore playing a far more strategic role in the business or corporate strategic planning process in the organization. The emergence of SHRM is increasingly adding more value to the organization. Thus, SHRM is based on HRM principles, which integrate the concept of business strategy.Strategy here refers to â€Å"the pattern of organizational moves and managerial techniques or approaches used to attain organization objectives and to pursue the organization’s mission† (Inyang, 200 4:20). Strategy is also considered as â€Å"the process by which the basic mission and objectives of the organization are set, and the process by which the organization uses its resources to achieve these objectives† (Tichy, Fombrun, & Devanna, 1982:47). Organizations must choose and follow the diverse approaches in order to achieve success or gain competitive advantage.Scholarly advocacy as already noted has consistently emphasized the need for HRM to become a strategic business partner. That means that SHRM has to be integrated with business strategy. This is also the issue of fit. Integration or fit refers to the involvement of SHRM in the formulation and implementation of organizational strategies and the alignment of SHRM with the strategic needs of an organization (e. g. Buyens & De Vos 1999; Schuler & Jackson, 1999). To become strategic business partner means that the HR managers should participate in strategic decision-making alongside other senior managers in the org anization.This, according to Ulrich (1997), would provide greater opportunity to align HR goals, strategies, philosophies and practices with corporate objectives and the implementation of business strategies. The involvement of HR managers would be to become members of senior or top management in the organization (Budhwar, 2000; Teo, 2000). Membership at this level in the organizational hierarchy offers opportunity for SHRM to represent its concerns and influence the direction of business strategy from the onset of the decision making process.This involvement from the crafting stage of strategy decision-making will enhance commitment on the part of the HR managers during implementation stage of such business strategy. Inyang (2008b) argues for the co-optation of the HR manager to business policy formulation as a business partner, to help drive policy implementation to success and attain competitive advantage. There is research evidence that integration tends to result in enhanced co mpetence, congruence and cost effectiveness (Black & Boal, 1994; Teece, Pisano & Shuen, 1997). 6 There is increasing attention being focused on SHRM discourse about congruence or fit† or integration between HR practice and business strategy (Baird & Meshoulam, 1988; Wright & McMahan, 1992; and Wei, 2006). The underlying assertion in the fit analyses is that the employment of effective HR practices and the design of an HR system compatible with the firm strategy are sine qua non for the successful implementation of the organization’s business strategies (Lengnick-Hall & Lengnick-Hall, 1988).Fit is therefore a fundamental feature of SHRM, which connotes the utilization of human resources to enhance the attainment of organizational goals. According to Wright & McMahan (1992:298), fit means â€Å"†¦ the pattern of planned human resource deployment and activities to enable a firm to achieve its goal†. Scholars of SHRM identify two kinds of fit: horizontal fit and vertical fit. Horizontal fit refers to the congruence among various HRM practices (Baird & Meshoulam, 1998), and vertical fit refers to the alignment of HRM practice with strategic management process of the firm (Schuler & Jackson, 1987).Generally, vertical fit or integration is necessary to provide congruence between business and human resource strategy so that the latter supports the accomplishment of the former, and helps to define it. Horizontal fit or integration with other aspects of the HR strategy is required so that its different elements fit together. The aim is to achieve a coherent approach to managing human resources, in a manner in which the various practices are mutually supportive.Both types of fit contribute significantly to the competitiveness of an organization and it is important for organization to arrange a variety of HR practices in a systematic way. According to Pfeffer (1994), a set of properly arranged HR practices can have a positive impact on a firm perf ormance when they are properly implemented. Creating a proper fit or integration is the key issue in SHRM and it is this congruence in organization’s HR practices that impact on the bottom line. Figure 1 below illustrates these concepts and their impact on the organization.Figure 1: Two Types of Fit Vertical: (Alignment of HR practices with business strategy) SHRM Integration/Fit Horizontal: (Congruence among HR practices) †¢ †¢ †¢ Bottom Line Competitiveness Performance SHRM is essentially about integration – integrating HR practices with the business strategy of the organization. Both the vertical and horizontal fits create the congruence between business strategy and human resource policies which jointly enhance the attainment of bottom line, competitiveness and performance.Thus SHRM helps the organization to achieve strategic fit with its market environment. One of the key policy goals of SHRM according to Guest (1989) is to ensure that HR is integra ted into strategic planning so that HRM policies cohere both across policy areas and across hierarchies and HRM practices are used by line managers as part of their everyday work. Walker (1992) points out that the HR strategies are functional strategies like marketing, production or IT strategies, but they are different in the sense that they are intertwined with all other strategies in the organization.Managing the human resource is a very unique function in the organization, and the human capital provides the 27 resources for implementing all business strategies. Therefore, HR planning should be an integral part of all other strategy formulations in the organization. 4. SHRM and the Resource Based View (RBV) of the Firm The RBV of the firm is based on the ideas of Penrose (1959), who sees the firm as â€Å"an administrative organization and a collection of productive resources†. A firm that obtains and develops the human resource can achieve competitive advantage (Hamel & P rahalad (1989).Other researchers have similarly advocated the need to align HR systems with the firm’s strategy to create competitive advantage (Barney, 1986, 1991; and Wright & McMahan, 1992). The underlying assumption of the RBV of the firm is resource heterogeneity. This means that the resources that different firms own are unlikely to be identical. Accordingly, these resources owned by the firm that help it achieve sustained competitive advantage must meet four requirements. The resources must be (i) valuable, (2) rare, (3) inimitable, and (4) non-substitutable.This follows therefore that if the resources a firm employs cannot be easily imitated by another firm or substituted by similar resources another firm employs the firm can easily take advantage of this to gain competitiveness not simultaneously pursued by other firms. Snell, Youndt & Wright (1996) argue that human resources meet these four requirements. Others have equally shown that the linkage of organizational r esources and firm strategy cannot be easily identified and imitated by other firms due to the social complexity and causal ambiguity (Barney, 1991, Boxall, 1998).Thus, the integration of human resource practices and policies with the appropriate strategy can generate a sustained competitive advantage for the firm (Wei, 2006). The firm’s HR policies, practices and strategies are a unique blend of process, procedures, personalities, styles, capabilities and organizational culture, which are difficult to imitate. As Purcell, Kinnie, Hutchinson, Rayton & Swart (2003) point out, the values and HR policies of an organization constitute important non-imitable resources, as long as they are enacted and implemented effectively.One of the most important factors of competitive advantage is the ability to differentiate what a business supplies to its customers from what is supplied by its competitors. Purcell et al (2003) maintain that such differentiation can be achieved by having HR st rategies, policies and practices which ensure that: 1. The firm has higher quality people than its competitors. 2. The unique intellectual capital possessed by the business is developed and nurtured. 3. Organizational learning is encouraged, and 4.Organizational specific values and a culture exist that ‘bind the organization together [and] give it focus’. The RBV of the firm is concerned with developing strategic capacity, making adequate investment in the organization’s human capital to add more value to the firm. According to Armstrong (2004:108), the aim of RBV â€Å"is to improve resource capability – achieving strategic fit between resources and opportunities, and obtaining added value from the effective deployment of resources†.It is generally acknowledged that the human resource is an organizational asset, and when it is adequately trained and effectively deployed can contribute immensely to the bottom line. Aligning the HR systems with busin ess strategy is therefore a sine qua non for organizational competitiveness. Business strategies designed to achieve organizational objectives are not likely to succeed when HRM is not involved in both strategy formulation and implementation. Organizations must create the conducive environment for integrating HRM with business strategy since the HR supplies the energies for driving organization strategies.Wei (2006) notes that the HR system and practices are crucial in facilitating the achievement of business strategy through the management of people. Several studies have shown that a firm’s HR creates value in the organization in different ways. The impact of SHRM on organizational performance is quite obvious. SHRM has positive effect on business performance (Martell & Carrol, 1995); SHRM can help an organization to allocate its human 28 resources more effectively, promote operating efficiency, and encourage creativity and innovation (Dyer, 1983; Walker, 1980); it enables t he firm ope more effectively with the challenges of environmental change (Cook & Ferris, 1986; Tichy & Barnett, 1985); encourages a more proactive management style, transmits organizational goals clearly and motivates greater involvement by line managers in HRM concerns (Gomez-Mejia, Balking & Cardy, 1995); enhances organizational morale, financial performance, and overall organizational performance (Huang, 1998; Anderson, Cooper & Zhu, 2007); brings about commitment, customer satisfaction and innovation (Pfeffer, 1994; Chew & Chong, 1999; Bowen, Galang & Pillai, 2000; Wright & Kehoe, 2008); enhances market value per employee (Becker & Huselid, 1998); creates value for customers and stakeholders (Ramlall, 2006); and brings about return on equity (Delery & Doty, 1996).Garavan (2007:11) sees strategic human resource development as contributing â€Å"to the creation of firm-specific knowledge and skill when it is aligned with the strategic goals of the organization†. Increased p roductivity has also been noted in small enterprises that align or integrate their formal and informal HR practices and strategies with the business strategies of the organization (Singh & Vohra, 2005). 5. The Roles of SHRM Professional The HR professional has more challenging roles to perform under SHRM – the emergent business partner model. Unlike the traditional HRM, which is transactional in nature and is concerned with administrative activities, SHRM is a value-added core responsibility that aligns the HR system, policies and practices with business strategy to gain sustained competitive advantage for the firm.In performing the new challenging roles, the HR professional must think outside the traditional organizational box of HRM and develop a more systematic and radically different approach to manage the human element to effectively support the firm’s business strategy formulation and implementation. For successful implementation of the business partner role, the HR manager needs to understand the company’s business direction and its competitive position in the market place. Apart from this, to become a successful strategic partner, the HR manager must have competencies that have to do with the business issues involved in strategy and strategy development, and ability to contribute to organizational design and change management (Lawler, III and Mohrman, 2003).The HR function, according to Rowden (1999) must change from a staff function that delivers prepackaged HR services to a service that helps managers create customized strategic plans to influence the effectiveness of company performance. The HR manager can play an important role in the formulation of strategy and providing the human resource required to support various strategies and strategic initiatives in the organization. He provides the leadership role in developing the human capital and the necessary capabilities to enact the strategy and drive the implementation and chang e management processes to success (Lawler III & Mohrman, 2003). Good human capital management is a prerequisite for successful execution of business strategies.According to Ulrich (1998), the modern HR professional must perform four complementary roles. The first role, administrative excellence, is important because it is an immediate way of contributing to the overall efficiency of the organization. As administration expert, he must rethink how work is done throughout the organization. The second role HR professionals must realize is that of employee champion. The HR manager must play the crucial role of employee advocate. He should be the employee’s voice in management discussion, offer employee opportunities for personal and professional growth; and provide resources that employees need to meet the demands put on them.The new role might also involve suggesting, that employees be given more control over their own work schedules. This is the issue of employee empowerment. Tw o additional roles the modern HR professional must realize are those of strategic partner and change agent. Being a strategic partner calls for an on going evaluation of the alignment between current HR practices and the business objectives of the firm, and a continuing effort to design policies and practices that maximize this alignment. HR practitioner should be held responsible for defining an 29 organizational architecture – that is, identifying the organization’s way of doing business.Such framework as looking at the organizational components – strategy, structure, rewards, processes, people, style and shared values may be adopted. This new knowledge will allow HR to add value to the executive team with confidence. Being a change agent the HR manager must play a key role in implementing and managing organization change, assessing potential, sources of resistance to change, and collaborating with line managers to overcome these barriers. The HR professionalà ¢â‚¬â„¢s role as a change agent is to replace resistance with resolve, planning with results and fear of change with excitement about its possibilities. These last two roles – strategic partner and change agent – are of particular interest to us because they represent the emerging strategic dimension of HR function SHRM.In addition to the above roles the HR practitioner needs to be a model and take on the specific role of integrating people strategies with business strategies in a way that advances the bottom line. Metzler (1998) adds that: the HR manager must play an active and guiding role in enabling the organization to choose its human resources well, invest in these people, support that growth and respect their needs, while fostering innovations needed to achieve the strategic business objectives. The HR professional operating under the SHRM system must chart roles that include early and active involvement in key strategic business choices. He must become the part ner of decision makers in the organization, and sharing accountability for organizing and performing work.He must carry out effective monitoring to see that everyone in the organization, and at every organizational hierarchy, stay focused on share strategic priorities. He must challenge old ways and constantly promote innovation to enhance corporate performance and the firm’s competitiveness. 6. Requisite Strategic Skill Development and Competencies To function as a strategic business partner and successfully execute the new critical and challenging responsibilities, to bring about the bottom line, the HR professional needs to possess the relevant strategic skills or core competencies. Ismail & Long (2009: 118) define competency in general term â€Å"as a personnel related concept referring to a set of behavioral dimensions of one’s effective performance work†.Inyang (2009:65) considers competencies as constituting â€Å"a cluster of related knowledge, attitude s, and skills, which an individual acquires and uses together, to produce outstanding performance in any given area of responsibility†. A lack of certain competencies may affect the HR professional in the performance of the strategic role in the organization (Aitchison, 2007). Zigarelli (1997) identifies seven strategic skills that can help the manager develop effective strategic plans to handle the emerging challenges in the organization: 1. Global operating skills: These skills enable him to understand the issues of globalization and how to do business with individuals of diverse background or nationalities. 2.Business and financial savvy: He needs to understand financial reports, business goals, and possess the business acumen necessary to understand and support the function. 3. Strategic visioning, critical thinking and problem solving skills: As a strategic business partner, he needs the skills to take the lead in contributing to strategy, vision, and critical thinking to gain credibility for the HR function. 4. Ability to use information technology: The HR professional must be well grounded in information communication technology (ICT) and leverage this for business results. ICT is the engine that drives the modern organizations to business success and offers them sustained competitive advantage. 5.Deep HR knowledge: He needs to be well grounded in the theoretical and practical fundamentals of HR to adequately articulate HR practices. He needs to invest more time and resources for training and development. 30 6. Change management skills: He needs these skills to move the organization to new and more efficient ways of doing business. He needs to show commitment to change management in the organization. 7. Organizational effectiveness skills: These skills enable him to diagnose the effectiveness of the organization as accurately as possible to portray the current and future state of the organization. He can then monitor and correct inefficiencies. Ye ung, Wolcock & Sullivan (1996) identify the following core competencies that effective HR professionals should develop: 1.Business knowledge: Capacity to understand competitive issues impacting the business (e. g. , market, products, technology, processes) and to understand how business can create profit and value. 2. Customer orientation: Ability to viewing issues from the perspective of customers. 3. Effective communication: The ability to provide both verbal and written information clearly, consistently and persuasively. 4. Credibility and integrity: To walk what you talk, act with integrity in all business transactions and honor personal commitments. 5. Systemic perspective: The ability to view problems and issues in the context of the bigger picture and understand the inter-relationships among sub-components. 6.Negotiation and conflict resolution skills: The capacity to reach agreements and consensus in spite of different goals and priorities. Similarly, Ismail & Long (2009) ex amine six competencies – business knowledge, strategic contributions, HR delivery, personal credibility, HR technology and internal consultation, which HR professional needs to possess in order to function in his strategic partnership role and to excel in the current competitive environment. These competencies are based on Human Resource Competency Study (HRCS) under the initiative of the University of Michigan in the year 2003 (Brockbank & Ulrich, 2003), except internal consultation.The HR practitioner must acquire consulting skills which constitute a combination of diagnostic and behavioral skills that enable the professional, who is in support function in the organization to collaborate with the line managers to develop strategic solutions to business performance problems. As an internal consultant therefore, the HR manager is in a better position to contribute significantly to the functioning of other departments, solving problems, and delivering enhanced performance (Ism ail & Long, 2009). The rapidly changing global business environment calls for high knowledgeablity on the part of the human resource managers, to function effectively as strategic business partners. According to Inyang (2008a: 61), â€Å"Human resources practitioners need to broaden their horizons, seek more knowledge and information to manage the intellectual capital effectively.This requires people who are multi-skilled, self-responsible, visionary and able to learn, to handle, to lead the organization to success†. The HR practitioner is also expected to develop a new mindset, as he becomes a strategic partner. In fact, to be a strategic partner, â€Å"the HR function must go beyond delivering services, maintaining records, and auditing. It needs to spend time being a member of the management team, doing strategic HR planning and making contributions to organizational design, strategy development, and strategic change† (Lawler III & Mohrman, 2003:4). 31 7. Conclusion The traditional HRM practices, which are concerned with the management of people in an organization, have contributed significantly to organization bottom line.HRM offers traditional and administrative support services in the organization, in terms of staffing, recruitment, training and development, compensation and benefits. It generally concerned itself with attracting, developing and maintaining effective workforce. The emergence of SHRM as a paradigm shift generated more value-added core responsibility, and emphasized the need to integrate HR practices with business strategy. SHRM is a strategic business partner model, which strongly beliefs that critical organizational capabilities or performance behaviors are necessary for the attainment of a particular business strategy or goal. SHRM is a more radical and systematic approach to the management of human capital, placing more emphasis on organizational performance rather than individual performance.It is this approach that help s to create a fit or congruence or integration of HR practices with business strategies that enables the organization to achieve sustained competitive advantage. The RBV of the firm highlights the strategic position of the human capital, as an organizational asset, that contributes significantly to the overall performance of the organization, when adequate investment is made on the human resources. The HR practices must be properly aligned with the strategic goals of the organization. To function as a strategic business partner and a change agent, to successfully handle the emerging challenges of SHRM, the HR practitioner must possess the requisite strategic skills and core competencies.The skills and competencies required include among others, being highly knowledgeable about business and its environment, developing a strategic vision, global operating skills, understanding and applying the ICT regime, organizational effectiveness skills, change management skills and ability to und erstand and manage conflict as well as possess internal consulting skills. References [1] [2] [3] Aitchison, D. (2007). â€Å"HR transformation: Myth or reality†. HROA Europe and sharedpertise forums in association with TPI. Survey Report January 2007. Akhtar, S. , Ding, D. Z . & Ge, G. (2008). â€Å"Strategic HRM practices and their impacts on company performance in Chinese enterprises†.Human Resource Management, 47(1), 15-32 Anderson, K. K. , Cooper, B. K. & Zhu, CJ. 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Potential And Growth Or Regional Rural Bank - Free Essay Example

Sample details Pages: 13 Words: 3844 Downloads: 5 Date added: 2017/06/26 Category Statistics Essay Did you like this example? INTRODUCTION Regional Rural Banks: These banks were first set up in the year 1975 particularly to give direct loans and advances to undersized and minor farmers, agricultural laborers as well as to rural artisans and other of small means. The loans are given for productive purposes to the farmers. There were around 196 RRBs which have been lending around Rs. 3600 crores annually by way of loans to rural people. Over 90 percent of the loans of RPBs are given to the weaker sections in rural areas. The regional banks, though basically scheduled commercial banks, differ from the latter in certain respects: Don’t waste time! Our writers will create an original "Potential And Growth Or Regional Rural Bank" essay for you Create order The area of regional rural banks is limited to a specified region comprising one or more districts of a State. The regional rural banks grant direct loans and advances only to small and marginal farmers, rural artisans and agricultural laborers and other of small means for productive purposes. The lending rates of the regional rural banks should not be higher than the prevailing lending rates of co-operatives societies in any particular State. The sponsoring banks and the Reserve Bank of India provide many subsidies and concessions to RRBs to enable the latter to function effectively Concessions to RRBs: From the beginning, the sponsor banks have continued to provide managerial and financial assistance to RRBs and also other concessions such as lower rate of interest on the latterà ¢Ã¢â€š ¬Ã¢â€ž ¢s borrowing from sponsor banks. Further, the cost of staff deputed to RRBs and training expenses of RRB staff are borne by the sponsor banks. The Reserve Bank of India has been granting many concessions to RRBs. Progress of RRBs: There are now 196 regional rural banks in 23 States with 14,500 branches. As at the end of September 1990 the regional rural banks had advanced Rs.3,560 crores by way of short-term crop loans, term loans for agricultural activities, for rural artisans, village and cottage industries, retail trade and self employed, consumption loans etc. Nearly 90 percent of the loans of RRBs, were provided to the weaker sections. State wise Uttar Pradesh found large number of offices. Objectives of RRBs: RRBs had followed instructions given by RBI and Government of India regarding loan policies, procedures, etc. The basic aim of setting up RRBs viz, developing the rural economy by providing credit for the development of agriculture, trade, commerce industry and other productive activities in rural areas, was being fulfilled and RRBs had successfully maintained their image as a small manà ¢Ã¢â€š ¬Ã¢â€ž ¢s bank by confining their credit facilities to the target groups viz, small marginal farmers, agricultural labourers, artisans and small enterprises for productive activities. The recovery position on the whole was not satisfactory. Problems in functioning of RRBs: On account of the many restrictions place on the business they can undertake, RRBs have low earning capacity. The wage and salary scales of RRBs have been rising and, in fact, with the recent award of a tribunal, their scales would approximate those of commercial banks; with the increase in salary scales, an important rationale for the setting up of RRBs has ceased to exist. The sponsoring banks are also running their own rural branches in the very area of operations of the RRBs; this has given rise to certain anamolies and to avoidable expenditure on controls and administration. Regional rural banks were established under the provisions of an ordinance promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The RRBs mobilize financial resources from rural, semi rural areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans. The area of operation of RRBs is limited to the area as notified by GOI covering one or more districts in the state. RRBs are jointly owned by GOI, the concerned state government and sponsor banks (27 scheduled commercial banks and state cooperative bank); the issued capital of a RRB is shared by the owners in the proportion of 50%, 15% and 35% respectively. Importance of the Study Scope of the study OBJECTIVE OF THE STUDY The study undertaken includes the study of Potential growth or Regional Rural Bank. Along with all this the basic objectives of the study undertaken are as follows: To understand the role of Rural banking in India. To find out those industries which are being facilitated by rural banks. To find out causes and reasons for being successful in micro-financing. To know the expansion rate of rural banking in India. REVIEW LITERATURE Chandrasekhar and Ghosh (1998) Classified the policies of financial liberalization in India in to three types: first, policies to curtail government intervention in the allocation of credit, secondly, policies to dismantle the public sector and foster private banking, and thirdly, policies to lower capital controls on the Indian banking system. Later in 2000, V. K. Ramchandran madhura swaminathan (Indian statistical institute, Kolkata) studied the formal sector of rural credit is the sector in which loan transactions are regulated by legislation and other public policy requirements. The institutions in this sector include commercial banks, Regional Rural Banks, cooperative banks and credit societies, and other registered financial institutions. The informal sector of credit is not regulated by the public authority, and the terms and conditions attached to each loan are personalized, and therefore vary according to the bargaining power of borrowers and lenders in each case. S. L. Shetty (2004) discusses the narrowing of the branch network in rural areas after the onset of financial liberalization. Such an à ¢Ã¢â€š ¬Ã…“institutional vacuum,à ¢Ã¢â€š ¬? he argues, is likely to affect outcomes of future policies in rural areas, even the new policy for provision of credit through self-help groups. Chandrasekhar and Ray (2004) point To the growing presence of foreign banks in India, their direct presence and their indirect presence through the purchase of shares in existing private banks. This expansion is not good news for the priority sector. When data for scheduled commercial banks are disaggregated by type of bank (public sector banks, regional rural banks, private banks and foreign banks), we find that foreign banks did not lend to rural areas or agriculture. Pallavi Chavan (2004) has examined The growth and regional distribution of rural banking over the period 1975-2002. Chavanà ¢Ã¢â€š ¬Ã¢â€ž ¢s paper documents the gains made by the historically underprivileged regions of east, north-east, and central India during the period of social and development banking. These gains were reversed in the 1990s: cutbacks in rural bank branches and in rural credit-deposit ratios were steepest in the eastern and north-eastern states of India. Policies of financial liberalization have unmistakably worsened regional inequalities in rural banking in India. History Of The Rural Economic Structure Of India Indian Economy in the Pre-British period:- The Indian economy in the pre-British period consisted of isolated and self-sustaining villages on the one hand, and towns, which were the seats of administration, pilgrimage, commerce and handicrafts, on the other. Means transport communication were highly underdeveloped and so the size of the market was very small.. Industries handicrafts in Pre-British India: The popular belief that India had never been an industrial country, is incorrect. It was true that agriculture was the dominant occupation of its people but the products of Indian industries enjoyed a worldwide reputation. The Muslim of Dacca, the calicos of Bengal, the sarees of Banaras and other cotton fabrics were known to the foreigners. The chief industry spread over the whole country was textile handicrafts. The textile handicrafts includes chintzes of Lucknow, dhotis and dopattas of Ahmedabad, silk, bordered cloth of Nagpur and Murshidabad. In addition to cotton fabrics, the shawls of Kashmir, Amritsar and Ludhiana were very famous. India was also quite well-known for her artistic industries like marble-work, stone-carving, jewellery, brass, copper and bell-metal wares, wood-carving, etc. The cast-iron pillar near Delhi is a testament to the high level of metallurgy that existed in India. In this way Indian industries, à ¢Ã¢â€š ¬Ã…“Not only supplied all local wants but also enabled India to export its finished products to foreign countriesà ¢Ã¢â€š ¬?. Agricultural Impact on National Economy Agriculture is a backbone of the Indian Economy. It is important to note that importance is given to industrialization in last four decades, agriculture is largest industry in the country. AGRICULTURAL PRODUCTION The agricultural sector as a whole is estimated to record a real growth rate of 6.6 per cent during 1998-99. The overall growth in agricultural production during 1998-99 has been provisionally estimated at 6.8 per cent, as against a negative growth rate of (-) 5.4 per cent during 1997-98.img_agr Foodgrains Production The production of kharif foodgrains estimated at 102.5 million tonnes during 1998 showed a marginal growth of 1.4 per cent over the production achieved (101.1 million tonnes) in 1997. The rabi foodgrains production for 1998-99 is expected to go up to 98.4 million tonnes compared to 91.3 million tonnes in 1997-98. The foodgrains production is estimated to be 200.9 million tonnes in 1998-99 compared to 192.4 million tonnes during 1997-98, recording an impressive increase by 4.4 per centimg_food Agricultural Production-Major crops (in million tonnes) Year 1995-96 1996-97 1997-98 1998-99 Crops Achiev-ement Target Achievement % change over 1995-96 Target Achiev-ement % change over 1996-97 Target Produ-ction (Adv. Est.) % change over 1997-98 Rice 77.0 81.0 81.7 6.1 83.0 82.3 0.7 84.2 84.5 2.7 Wheat 62.1 65.0 69.4 11.8 68.5 65.9 (-) 5.0 70.0 70.6 7.1 Coarse Cereals 29.0 29.0 32.5 34.1 17.6 33.5 31.1 (-) 8.8 34.3 30.6 Pulses 12.3 15.0 14.2 15.4 15.0 13.1 (-) 7.7 15.5 15.2 16.0 Total Foodgr-ains 180.4 193.5 199.4 10.5 200.0 192.4 (- 3.5 204.0 200.9 4.4 Oilseeds 22.1 23.0 24.4 10.4 25.5 22.0 (-) 9.8 27.0 25.3 15.0 Sugarca-ne 281.1 270.0 277.6 (-) 1.2 280.0 276.3 (-) 10.5 300.0 282.7 2.3 Cotton* 12.9 13.0 14.2 10.0 14.8 11.1 (-) 21.8 14.8 13.3 19.8 * Million bales of 170 kg. each. Agricultural Exports and Imports Agriculture Exports The share of exports of agriculture and allied products in the total exports had declined marginally, from 18.9 per cent during 1997-98 to 17.8 per cent during 1998-99. During the same period, the value of exports of agriculture and allied products amounted to US$ 5,994 million, showing a decline of 9.6 per cent from a level of US$ 6,634 million in 1997-98. Major items of agricultural exports were basmati and non-basmati rice, raw cotton, meat, oilmeals, tea, coffee, unmanufactured tobacco, cashew, spices, fresh and processed fruits and juices, vegetables and marine products, etc. Agriculture Imports Agricultural imports related to food and other items constituted 5.8 per cent of the total imports during 1998-99, as against 4.0 per cent during corresponding period of the previous year. Important agricultural items imported during the year were vegetable oils (edible), sugar, wheat and fruits nuts. During 1998-99, the volume of agricultural imports aggregated US$ 2,409 million, as against US$ 1,678 million during the corresponding period of the previous year, recording a growth of 43.6 per cent. Agricultural markets: There were 7,062 agricultural regulated markets operating in India, 162 agricultural commodities considered for grading standards and 3,253 cold storage with capacity of 8.73 million tonnes as on end March 1998. Role Of Rural Banking in Agriculture and in Indian Economy Agriculture for Industrial Development: Indian agriculture has been the source of supply of raw materials to our leading industries. Cotton and jute, textiles, sugar, plantationsà ¢Ã¢â€š ¬Ã¢â‚¬  all these directly depend on agricultural output. There are many industries, which depend on agriculture indirectly. Many of our small scale and cottage industries like handlooms, oil crushing, etc depend on agriculture for their raw materials. But then, in recent years, agriculture is losing its significance to industries such as iron and steel, engineering, chemicals, etc. However in recent years, the importance of food processing industries is being increasing recognized both for generation of income and generation of employment. Agriculture in economic planning: Importance of agriculture in the national economy is indicated by many facts. For example, agriculture is main support for transport sector as railways and roadways secure bulk of their business from the movement of agricultural goods. Further it is seen that good crops implying large purchasing power with the farmers lead to greater demand for manufactures and therefore better prices. In other words prosperity of farmers is also the prosperity of the industries and vice-versa. Agriculture is backbone of the Indian economy and the prosperity of agriculture can also stand for the prosperity of the economy. At the same time it is true that per capita productivity in agriculture is less than in the industry. Many scholars think that so long as the Indian Economy is dominated by agricultural activity, per capita income will not rise to an extent, which is necessary and desirable Structure of Rural Credit In India à ¢Ã¢â€š ¬Ã…“In the village itself no form of credit organization will be suitable except the Co-operative Societyà ¢Ã¢â€š ¬Ã¢â‚¬ Co-operation has failed, but co-operation must succeed.à ¢Ã¢â€š ¬? All-India Rural Credit Survey National Policy Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s Aim: Agricultural credit is one of the most crucial inputs in all agricultural development programmes. From olden days private money-lenders are main sources of credit towards agricultural or rural products . The basic aim of this Policy is as follows:- a. To ensure timely sufficient flow of credit to the farming sector; b. To avoid money-lender chain from rural scene. c. To reduce regional imbalance through their credit facilities. d. To provide larger credit support to areas covered by special programmes. e.g. National Oilseeds Development Project. SOURCES OF RURAL CREDIT There are mainly two sources available to the farmers private agencies institutional. Private agencies means relatives, landlords, agricultural moneylenders, professional private moneylenders, traders commission agents, others. Where institutional agencies are a. commercial banks, b. the state bank, c. co-operative societies land mortgage banks d. agricultural finance Corporation. Private agencies giving 93% of the total credit requirements in 1951-52 and institutional sources including government giving for only 7% of the total credit needs. But in 1960-61, the share of private agencies came down to 81.3 which was as follows:- Relatives 8.8%, Landlords 0.6%, Agricultural moneylenders 36.0, Professional private moneylenders 13.2%, traders commission agents 8.8%, other sources 13.9. that time institutionals sources were 18.7 and the break up was government 2.6%, Co-operative 15.5%, Commercial banks 0.6%. As per the All India Debt and Investment Survey (1981), estimated that the share of private agencies had further slumped to about 37% share of institutional credit jumped to 63% break up was 30% of co-operative 29% of commercial banks. Government Reserve Bank of India is supporting commercial bank co-operatives to meet the growing demand for agricultural credit. Role of reserve bank of India in development of rural banks RBI had shown keen interest in agricultural credit and maintained a separate department for this purpose. RBI extended short-term seasonal credit as well as medium-term and long-term credit to agriculture through State level co-operative banks and land developments banks. RBI had also set up the Agricultural Refinance Development Corporation (ARDC) to provide refinance support to the banks to promote programmes of agricultural development, particularly those requiring term credit. RESEARCH METHODOLOGY Research methodology is a systematic way, which consists of series of action steps, necessary to effectively carry out research and the desired sequencing to these steps. The marketing research is a process which involves a no. of inter-related activities, which overlap and do rigidly follow a particular sequence. It consists of the following steps:- Formulating the objective of the study Designing the methods of data collection Selecting the sample plan Collecting the data Processing and analyzing the data Reporting the findings Objective of Study Research Design Sample Design Data Collection Data Analysis Report of findings RESEARCH DESIGN Research design specifies the methods and procedures for conducting a particular study. A research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is broadly classified into three types as Exploratory Research Design Descriptive Research Design Causal Research Design DESCRIPTIVE RESEARCH DESIGN: Descriptive research studies are those studies which are concerned with described the characteristics of particular individual. In descriptive as well as in diagnostic studies, the researcher must be able to define clearly, what he wants to measure and must find adequate methods for measuring it along with a clear cut definition of population he want to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used must be carefully planned. The research design must make enough provision for protection against bias and must maximize reliability, with due concern for the economical completion of the research study. SAMPLE DESIGN A Sample Design is a definite plan for obtaining a sample from a given population. It refers to the technique to the procedure adopted in selecting items for the sampling designs are as below: SAMPLE SIZE Sample method Survey period SAMPLE SIZE: The substantial portions of the target customer that are sampled to achieve reliable result are 94. The cost and time limitation completed me to select 94 respondents as sample size SAMPLING METHOD: In this marketing research project, I am using Non probability sampling method SAMPLE DESIGN As complete enumeration of all the members of the population (Member and Non-member) I have understate sampling technique. SAMPLE SIZE 94 Customers SAMPLE TYPE AREA SAMPLING Sample area Agra SAMPLE SELECTION Simple random selection sampling SAMPLE TECHNIQUE I have taken the Statistical tool of percentage method to analysis and interpretation of the collected data. DATA ANALYSIS AND INTERPRETATION 1. Rural Banking has been a parallel banking stream in Indian Banking System. Response No % 1 Strongly agree 2 2 2 Agree 15 16 3 Neutral 19 20 4 Disagree 21 22 5 Strongly disagree 37 40 Fig.1: parallel banking Interpretation: Till today date rural banking is not able to compete with those of commercial banks. as 40% people are in against of this statement. 2. Rural Banking has contributed to economic growth equivalent to Commercial Banking Response No % 1 Strongly agree 1 1 2 Agree 5 5 3 Neutral 12 13 4 Disagree 32 34 5 Strongly disagree 44 47 Fig.2: economic growth Interpretation: Rural banking has not contributing equivalent to the commercial bank. Only 47% respondents are not in favour of this statement. 3.Rural Banking in India has been so far neglected by the Financial System Response No % 1 Strongly agree 35 37 2 Agree 13 14 3 Neutral 20 21 4 Disagree 14 15 5 Strongly disagree 12 13 Fig.3 neglected by the Financial System Interpretation: This chart is showing that most of the people think that rural banking is not being supported by commercial bank. 4. Rural Banking is risky venture as a business avenue. Response No % 1 Strongly agree 39 42 2 Agree 36 38 3 Neutral 10 11 4 Disagree 7 7 5 Strongly disagree 2 2 Fig.4 Risky venture Interpretation: Rural Banking is risky venture as a business avenue which is supported by 42 % respondents. 5. Commercial banks entered in to Rural Banking business voluntarily. Response No % 1 Strongly agree 15 16 2 Agree 19 20 3 Neutral 30 32 4 Disagree 11 12 5 Strongly disagree 19 20 Fig.5 commercial bank entrance Interpretation: Commercial banks entered in to Rural Banking business voluntarily. This statement is showing ambiguity. 6. Rural Banking has been successful in upliftment of the living standards of the poor people. Response No % 1 Strongly agree 29 31 2 Agree 32 34 3 Neutral 25 27 4 Disagree 6 6 5 Strongly disagree 2 2 Fig.6 Living standard Interpretation: Most of the people feel that rural bank has helped to living standard to grow, 34% respondents were agree with this statement. 7. Rural Banking has created sustainable development for rural people. Response No % 1 Strongly agree 14 15 2 Agree 27 29 3 Neutral 35 37 4 Disagree 12 13 5 Strongly disagree 6 6 Fig.7 sustainable development Interpretation: For developing the rural people rural banking is not successful, chart is showing 6% people were strongly disagreee with this statement. 8. Rural Banking shall emerge an equally commercially viable business stream in near future.. Response No % 1 Strongly agree 10 10 2 Agree 15 16 3 Neutral 28 30 4 Disagree 30 32 5 Strongly disagree 11 12 Fig.8 commercially viable business stream in near future.. Interpretation: 32% people are disagree with this statement and theythink that rural bank is not successful in this area. 9. Rural Banking has tremendous growth potential in Indian perspectives. Response No % 1 Strongly agree 11 12 2 Agree 23 24 3 Neutral 39 41 4 Disagree 9 10 5 Strongly disagree 12 13 Fig.9 tremendous growth Interpretation: Rural Banking has tremendous growth potential in Indian perspectives, 41% people are neutral with this point. 10.Less profitable Response No % 1 Strongly agree 21 22 2 Agree 18 19 3 Neutral 23 25 4 Disagree 17 18 5 Strongly disagree 15 16 Fig.10 Profitability Interpretation: Most of the people think that rural banking is less profitable, and 22% people are agree with this. FINDINGS This survey finds that rural banking has not been a parallel banking stream in Indian banking system even today. Contribution of Rural banking is not as significant as commercial bank, economic growth. Today also rural banking in India has been so far neglected by the financial system. Rural banking is becoming more risky ventures to step up in and that too in Business Avenue. Standards of poor people can be better boosted up and can be levered through rural banking. Rural Banking has created sustainable development for rural people. The near future shall be supporting rural banking as commercial business stream. Because of parting lesser profit and high of installation distribution of branches of the rural bank it faced lesser success. Because of the variability in the literacy and the status of the local customers it is very difficult to customize the product. People hesitate to take the services through banking because of lack of trust and time consuming facilities. Rural Banking shall not emerge an equally commercially viable business stream in near future. Recommendations suggestions As per the above evaluation of the major problems and issues relating to the rural financial system I can submit the following observations recommendations: Government support: to give proper guidance and knowledge to the local people government support is important. Integration with commercial bank: commercial banks are having more creditability among the customers so integration should be there of that rural banks with commercial bank. Awareness among the people: local people believe more on indigenous bankers cause of lack awareness, for this program must be organized. Agent system: In rural banking there should be agent system exists because the people who are shy in nature and donà ¢Ã¢â€š ¬Ã¢â€ž ¢t feel comfortable to go at bank and are unable to share their problem. Technology advancement: Now this is the age of technology so the infrastructure of rural bank should be modified, and new technical machines should be used like computer, printer, calculation machines, counting machines etc. Attractive offerings: whatever the product, policies rural banks are having they should be attractive, understandable, believable. Conclusion Agriculture and its associated activities are found constituting the economic base and the main source of livelihood and employment for the people in the state. However, unprecedented growth of population on one hand and decreasing rate of available agriculture land along with degradation of supporting natural resources as required for sustaining crop productivity on the other have been seriously forcing the problems of sustaining livelihood for farming communities. It is becoming difficult to do the farming activity without external or internal sources. In this context the significance of extending non-farm sector becomes only alternative but it also required finance assistance for its development. Means a lot of hard work government awareness is required to flow the finance assistance in Rural Economy. But various schemes which are provided by the various banks government should be specific in its eligibility criteria to stop the misuse of these funds by large farmers and to ensure that the credit reaches the farmers who are in need of finance. Questionnaire Respondentà ¢Ã¢â€š ¬Ã¢â€ž ¢s Profile: Name: . Phone No.: .. E-mail: . Address: Gender: .. Organizational Experience: ..    Attributes / Statements Strongly Agree Agree Neutral Disagree Strongly Disagree Total 1 Rural Banking has been a parallel banking stream in Indian Banking System 2 Rural Banking has contributed to economic growth equivalent to Commercial Banking 3 Rural Banking in India has been so far neglected by the Financial System 4 Rural Banking is a risky venture as a business avenue. 5 Commercial Banks entered into Rural Banking business voluntarily. 6 Rural Banking has been successful in upliftment of the living standards of the poor people. 7 Rural Banking has created sustainable development for rural people. 8 Rural Banking shall emerge an equally commercially viable business stream in near future. 9 Rural Banking has tremendous growth potential in Indian perspectives.