Governmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector

The Indian Manufacturing sector lags behind in contributing to economic devel- opment, as compared to its peer nations and therefore, to boost the sectorís contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively ináuenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact.

Mediating Role of Psychological Contract Fulfilment on the Relationship between Strength of HR Signal and Organisational Commitment: Evidence from the Indian Manufacturing Sector

This study examined the relationship between human resource (HR) signals’ strength and affective organisational commitment (AOC) through the mediating role of psychological contract fulfilment (PCF). Survey data were collected from 460 manufacturing sector respondents. Structural equation modelling confirmed that HR signals’ strength and PCF positively influenced AOC. PCF also mediated the relationship between the HR signal and AOC’s strength. Results have theoretical implications, as well as practical implications for the management to consider fulfilling its obligations to meet employee needs and expectations through appropriate HR strategies for enhancing employees’ AOC.

Measure human capital because people really matter: development and validation of human capital scale (HuCapS)

PurposeNotwithstanding the findings of several published articles on human capital, there is scarcity of a comprehensive instrument to measure it. In this direction, the objective of present research is to develop a valid and reliable scale to assess human capital.Design/methodology/approachThis research was divided into two parts. Study 1 focused on literature review of human capital measures, development of items and exploring the factor structure of human capital construct on a sample of 184 employees. Study 2 was based on the survey of 212 employees, and reliability assessment and confirmatory factor analysis was performed to validate the factor structure of human capital construct.FindingsThe findings can be summarized in two ways. Study 1 present that human capital scale is multidimensional consisting of employee capability, leadership and motivation, employee satisfaction and creativity. The findings of study 2 confirms the validity and reliability of three factor structure of human capital construct consisting of 18 items in total.Practical implicationsThe study provides a multidimensional psychometric instrument which can help in measuring the human capital of the organization from the perspective of capabilities, satisfaction and creativity and leadership and motivation. Moreover, it can serve as an aid to human resource (HR) and human resource development (HRD) professionals for human capital assessment in the organizations.Originality/valueThis study provides a measure to assess human capital in Indian manufacturing sector organizations that makes a novel contribution to the area.

Mergers, Acquisitions and the Financial Performance: An Empirical Analysis from Indian Manufacturing Sector

Mergers and Acquisitions (MandA) are one of the most preferred strategies of corporate restructuring across the globe. Companies opt for MandA as they tend to generate operational synergies as well as improve the financial performance of the firms. The present study evaluates the financial performance of fifty four acquiring manufacturing firms in India that occurred between the financial year 2006-07 and 2013-14. The study follows positivist approach with focus on quantitative analysis of financial data over the period of ten years (five years pre and five years post) for five parameters. Determinants of financial performance of acquiring firms before and after the MandA have also been examined. Paired Samples t-test, Principal Component Analysis and Principal Component Regression have been employed for the analysis. Findings suggest that profitability and cost of utilization significantly decline after MandA. Efficiency, Profit Margin, Cost of Utilization, Interest Cover have remained significant factors contributing to the Return on Capital Employed both pre and post MandA. Failure of MandA in creation of synergies in Indian manufacturing sector suggests lack of strategic fit between the firms. It is important for managers to clearly define the motives behind the MandA not just for growth but survival as well.

Indian study shows that encouraging knowledge sharing at work can help spark innovative behavior

Purpose The authors wanted to find out the most important mechanisms for encouraging innovative behavior in the Indian manufacturing sector. Design/methodology/approach The researchers collected data from Indian manufacturing organizations. They distributed questionnaires and received 288 complete ones. Items measured critical concepts. For OJ one example was “I have been fairly rewarded for the effort I put forth”. For KS, one sample was, “When I have learned something new, I tell my colleagues about it” and, “When they have learned something new, my colleagues tell me about it”. Meanwhile, IB was measured using items such as “I generate original solutions for problems”. Findings It highlighted the pivotal role of OJ in bolstering employees’ IB. When companies treat employees fairly, it encourages positive social interactions that lead to perceptions of supportiveness and trustworthiness. Employees reciprocate these sentiments with positive behavior. The study also showed the positive predictive influence of KS on IB. Finally, the results showed that the relationship between OJ and IB is complex, but KS is a pivotal mediator. Promotion of OJ, KS and IM is “vital” to spark innovation. Originality/value The authors felt their most important finding was to highlight the critical role of the underlying mechanism of KS, which is where individuals exchange implicit and explicit knowledge to create new knowledge. In addition, previous researchers have looked at the role of organizational justice in encouraging innovative behavior, but evidence from non-Western countries is scarce.