WTO and New Surface in Entrepreneurship Schema


By

Dr. Vijay Pithadia
Assistant Professor & Kidevices Chair
School of Management Studies
Shri Lauva Patel Trust College For Women
Amreli-365601 GJ
E-mail:
vijaypithadia@lycos.com

Ashish Sharma
Lecturer
University Institute of Management
Jabalpur MP
E-mail:
ashu72_sharma@rediffmail.com

Hitendra Bargal
Research Associate
Indian Institute of Management Indore (IIM-I)
Indore MP
 


Acknowledgement:

We reconer Bakul Dholakia, Indian Institute of Management-Ahmedabad, Anil Gupta, Indian Institute of Management-Ahmedabad, Rekha Jain, Indian Institute of Management-Ahmedabad, Indira Parikh, Indian Institute of Management-Ahmedabad, Prem Pengotra, Indian Institute of Management-Ahmedabad, Vijaya Sherry Chand, Indian Institute of Management-Ahmedabad, I M Pandey, Indian Institute of Management-Ahmedabad, Ashok Jambhekar, Indian Institute of Management-Ahmedabad, M R Gopalan, Indian Institute of Management-Bangalore, Nagadevra, Indian Institute of Management-Bangalore, Ashok Banerjee, Indian Institute of Management-Lucknow, Devi Singh, Indian Institute of Management-Bangalore & Prakash Apte, Indian Institute of Management-Bangalore for conception and remarks.

Introduction:

Immediately after independence, Government of India and state governments became anxious to introduce several development program addressed to the have-nots, especially the rural poor. Five-year plans were laid down and program like community projects were introduced countrywide.

In later years and more recently, the methods for the development of strategies for the program have undergone series of important changes. However, the students and scholars of management practices have now recently recognized strategy as a key factor in the success of any program. The main reason for this recognition in our country has been environmental changes, which have taken place after Independence. People have developed greater expectations from their Government, which in return has to perform. It became necessary for the Government to give more serious and elaborate thought to the processes including management strategies and integrating the interests and the needs of diverse Homogenous and Heterogeneous groups requiring professional skill of highest order.

In an effort to address this need, Management strategies began to take shape. "This approach was a pattern based on the principle that the overall design of the organizations can be described, only if the attainment of objectives is added to policy and strategy as one of the key factors in management operation of the organization activities."

Alfred D. Chandler, a reputed exponent of management system considered strategy as "determination of basic goals and objectives of an enterprise and adoption of course of action and the allocation of resources necessary for carrying out the goals."

Some scholars assert that management strategic process is basically administrative task. A key question arises which is extremely important in the present scenario and my study. If strategy formulation is the product of rational analytical thinking, how can this be reconciled with the fact that Administrative tasks which cannot be performed independently of the organization are often achieved through internal processes (may be hidden). Some studies have revealed that Administrative structure, through the same organizational hierarchy, influences strategic decisions. This fact will also be under my observation and study for an answer.

This was happening program after program. The crucial management strategies seem dormant while other considerations seem to play truancy.

The researcher became interested in investigating why results were not coming in spite of genuine efforts and complete preparedness. It will be any body's conclusion that when decision makers and those who implement decisions are determined to work with all needed resources success can not elude. But perhaps it eluded. Crores were spent in this program.  Valuable 55 years were consumed. Why it could not deliver? Was it all a waste? Were the program hijacked by others? More powerful than the launchers and workers is management less important in rural areas which concern our 75% population. It is these areas, where program, need management of the highest order. Was there, no strategy in management and implementation?

The researcher studied various evaluation reports of major program, their findings. Could this ever be a possibility, that people are not concerned about their own welfare? Are they crossing the poverty line? Is there any line which can be drawn in real life scenario or it is a luxury exercise of the technocrats?

The Government in its wisdom closed down a number of programs that had a run for more than 20 to 30 years and became household names in rural areas and pride of our rural development efforts in post independence era. Can any popular Government risk closing down all such program meant for helping the poor, in enabling them to get over their poverty and yet it did and introduced a new holistic program called "Swarna Jayanti Gram Swarojgar Yojna" from 01-04-1999, through out the length and breadth of our country in rural areas. The basic declared objective was to enable people, living below the poverty line in a specified cluster of a block to cross over and obtain minimum income of Rs. 2000 per month in a period of 3 years with 30% coverage in that block in 5 years.

With an interest towards such program for the have-nots especially for poverty alleviation coupled with the present involvement with the management teaching and research, the researcher decided to take up a scientific study of the new program in its infancy, without delay. The impression testified through several instances is that we as a people posses a peculiar habit of introducing socio-economic program and publishing through all available platforms, media and print, as the best that could ever come and when results do not correspond with expectations, we do not hesitate to dump them and start denouncing the very salient features, as the factors of failure. A positive thought came to mind: "was Management strategy the major culprit"? Why well meaning, well construed well deliberated program could not deliver. This infect was the motivation for the present research.

Statement of problem

"Management strategy of Swarnjayanti Gram Swarojgar Yojna" to raise people above poverty line along with other aspects intimately associated with the problem

1. SGSY has adopted a very positive, transparent, participative strategy. All the inputs, knowledge, resources, expertise are pooled together to enable people below the poverty line to cross over in specified time frame by their own collective efforts.

2. The Management strategy is fully collective entrepreneurs occupying the driver's seat, with responsive, supportive infrastructure created through their own efforts.

3. All the partners in this common endeavor, are together from day-one to own responsibility, gain/loss.

4. All the marketing and management maneuvering will be taken care of by receiving relevant training of modern management.

The study has examined the salient features of the new program, concerning principally with the Management strategy without any bias, against the old and preference for the new. Tentative validity generalization has been tested. The study has been with a difference, that the hypothesis is not an imagined idea or a mere guess. The policy formulation desires us to understand them as true, but study will test it. The study has enabled to observe the facts through visits observation, discussion and interviews and then it tried to explain, the Hypothesis. All the three methods have led to unbiased conclusions.

Sampling:

The Hypothesis has been able to provide answer to the problem, which has necessitated the inquiry and have tried to limit the scope of my inquiry to a reasonably manageable area. I had interaction with about 30% of the functionaries SHGs and Swarojgaries, in a few villages of three blocks of Jabalpur.

Researcher has tried to do it in all the three Development Blocks of Jabalpur tehsil Panagar, Jabalpur, (Bargi) and Kundam, observed program in the field and its implementation methodology. Through personal observation, discussions with each level of functionaries Researcher have employed questionnaire method also for different levels of persons.

As said earlier Researcher has tried to meet not less than 1/3 of the total of functionaries & all the three blocks District officer/Block level Officers / Animators/Group leaders/ Swarojgaries/ Bank mangers/ NABARD/ understand their perspective and performance level. It has been on random sampling basis carried out with the help of random numbers, stratified random sampling. I have involved all units participating in the program to establish reliability and representative ness of all the units, located in different areas of a block.

The study got a unique advantage of personal interaction, intensive discussion with 38 Block Development officers, chief executive officers of middle level Janapad Panchayat who have studied this program, in the whole district of Jabalpur. In addition I also got the rare opportunity of interacting, for a good number of days with various functionaries like extension officers, Animators, men & women, approximately around 500. They are in the thick of program at the Ground level. This personal interaction, along with my own field study has given me deep insights of the program.

Specific Objectives of the Study:

[1] To study and investigate about the Management strategy involved in planning, organizing, and implementation of the SGSY program at ground level.

[2] To study and investigate process under Co-ordination especially in between principal participating components: the nodal development Agency, the Bank agency and the state holders and line departments.

[3] To study and investigate the impact of Democratic decentralized system especially in planning, implementation, including decision-making.

[4] To study & investigate the strong enabling factors and weak debilitating factor affecting the program

Data Analysis

Table 1 Status of Grade number II of S.H.G.

Block

No. of SHG I grade

No. of SHG II grade

Percentage

Jabalpur

99

17

17.17%

Panagar

88

15

17.04%

Kundam

61

11

18.03%


The data indicates poor progress. Study has revealed two reasons. Most of the groups were satisfied with the revolving fund only and were using it as the working capital. The Bank staff could not find time to associate themselves for II grading. The study revealed that the number of groups, were due to administrative orders. Most of them were not the result of evolutionary process.

Table 2 I-Grading of SHG

Block

Total no of groups

No. of I grading

% of grading

Jabalpur

515

49

9.51

Panagar

464

88

18.96

Kundam

388

61

15.72%


It is interesting to note that Jabalpur block leads in the formation of groups compared to Panagar and Kundam but story is very much different if we look at the scenario of grading.

Jabalpur with 9.51% of I grading compare to 18.96% of Panagar and 15.72% of Kundam

Table 3 II-Grading of S.H.G

Block

No. of I grading

No. of II grading

% of II grading

Jabalpur

49

12

24.48%

Panagar

88

15

17.04%

Kundam

61

11

18.03


The interpretation of above data does not present very encouraging picture of the situation.

Table 4 Progress of SHG grading

SHG completed grade I

18.96%

SHG completed grade II

3.23


There is clear, indication of statement of the groups after grading. It is a dismal picture as a whole.

Credit disbursement-

The following statistical inputs are available here.

Credit disbursement is 1.8 times higher than the subsidy disbursed to SHG. The implementation agencies seem to have expedited the process of credit disbursement.

Financial progress

Table 5 Jabalpur district

S.No.

Particular

Amount

1.

Subsidy Received

30.02 lakh

2.

Revolving fund received

3.08 lakh

3.

Infrastructure development

14.70 lakh

4.

Basic Orientation Program (B.O.P.)

0

5.

N.G.O. facilitator

0

6.

On developing skill training

0.40

 

Groups qualification of grading

 
 

I grading
II grading

17.17%
11.91%


Jabalpur district received Rs. 30.02 lakh subsidy amount. The amount of subsidy received through Revolving Fund is 3.08 lakh and Infrastructure development expenditure is 14.70 Lakh.

The expenditure B.O.P. and NGO facilitator is 0. There is a gross negligence on these factors.

Role of Banks

The pending rate loan is 93.33%. The banks are not keen in taking initiative for disbursing the funds. Individuals are getting preference over SHG. Out of the total 494 groups formed, only very few are working. The plan is in bad shape in Kundam block as there is NIL coverage of primary sector and secondary sector.

Note- In case of Kundam block data is not sufficient for any interpretation.

The indication is very clear about either the complexity of the process or lack of interest shown by the banks at various levels.

Groups which have taken up Economic Activities are 1.39%. The survival of the SHG is a problem. This it contradicts the progress of the S.H.G. Formation.

Assistance to SHG and individuals

The interesting and eye-opening fact is coming in picture is i.e. the number of SHG assisted for Economic activities are 575 as against the individual assisted are 3215. The strength of Swarojgaries is 5.59 times are more? This indicates the preferential treatment towards the individuals is same way.

Table 6  Treatment for Swarojgaries

S.No.

Particular

 

1.

Credit receiving

3.2 times

2.

Subsidy

2.07 times


Banks have a pending rate of application is 95.92%. The important point to notice is that banks are strong partners in the S.G.S.Y.S.

Table 7  Progress of plan

S.No.

Particular

 

1.

% of SHG passed I grade

1.73

2.

% of SHG passed II grade

18.03

3.

% of SHG took Economic Activity

1.62


Normally economic activity should follow, after clearance of Second Grading. It is at this stage, line Department, management agency and Banks are expected to play proactive role. This has not been done. Banks attribute it to poor Project Reports or no reports for long, while implementation agency attributes it to non approval of loan by Banks.

Table 8 Sanction status

No. of loan sanction

No. of loans for which money disbursed

% of disbursement

169

49.842

29.49

131

38.505

22.7

69

18.356

26.6


Mean rate of disbursement is 26.26%.

The case seems to be that amount disbursement process is comparatively low compared to loan-sanctioning rate. This indicates overall slow and unsatisfactory process.

Table 9 Credit Disbursement (In Lakhs)

Block

SHGs

Individuals

Jabalpur

5.36

5.58

Panagar

2.50

5.155

Kundam

1.43

1.14


Credit loan, is the life line under S.G.S.Y. The disbursement size is not very encouraging.

Table 12 Loan sanction status of Banks

Block

Loan Application submitted

Sanctioned Loans

Jabalpur

25

5

Panagar

19

1

Kundam

16

1


The data indicates-

1. The number of loan applications is too small, looking to the number of groups formed per block. The reason is low grading status.

Loan sanctioned from the number of application is also miserably low. Only seven cases are sanctioned against 60 cases sent to the Banks.

Findings:

1.  Planning

There was no scientific planning at the ground level.

There was no village plan, prepared to include S.G.S.Y.

Easy method of developing an existing activity of an individual, into a group was adopted.

No group dynamics process was adopted.

No decision making powers with the group or local agencies or Panchayat Raj Institution.

3. Control mechanism

Control mechanism was in the hands of outside agencies.

4. Implementation

It was more an Administrative task of Bureaucratic machinery. Association of people was supplementary.

Women Swarojgaris and Women Groups, exhibited eagerness and anxiety to involve themselves in the program. Their enthusiasm was not reciprocated by the management agencies in equal measure.

A.DEOs stature got friendly recognition

5. Co-ordination

Co-ordination process was the weakest link, in between i) Development agencies ii) The financial Institutions-Bank iii) The stake-holders.

Impact of Democratic Decentralization was not reflected. Infect, they appeared sidelined.

The weak points outnumber strong points. They have been enumerate a in the detailed presentation.

Decision making was not in the hands of people, of their bodies. Committees were created at different levels, different from P.R.Is. Which were taking decision?

Data has been analyzed and interpreted. It does not reflect a very encouraging picture.

Hypothesis has been tested. It was not confirmed. Assumptions accepted in the Yojna were also not confirmed.


Bibliography

1 B C Tandan, Research methodology in  Social sciences, Publishing House, Allahabad
2 Devendra Thakur, Planning & Development Of key Sector in India ", Deep & Deep Publication, New Delhi
3 Shukla & Choubey, Strategies for Rural Development, Akashdeep Publishing House, New Delhi
4 Vasant Desai, Rural Prosperity Oriented, Volume-I,  Himalaya Publishing  House, Delhi
5 Alfred D. Chandler in "Strategy and Structure", Cambridge Mass. M.I.T. Press
 


Dr. Vijay Pithadia
Assistant Professor & Kidevices Chair
School of Management Studies
Shri Lauva Patel Trust College For Women
Amreli-365601 GJ
E-mail:
vijaypithadia@lycos.com

Ashish Sharma
Lecturer
University Institute of Management
Jabalpur MP
E-mail:
ashu72_sharma@rediffmail.com

Hitendra Bargal
Research Associate
Indian Institute of Management Indore (IIM-I)
Indore MP
 

Source: E-mail September 21, 2005

  

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