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Working Papers | 2002

Capital Structure and MarketPower

Pandey I M

This paper provides new insights on the way in which the capital structure and market power and capital structure and profitability are related. We predict and show that capital structure and market power, as measured by Tobins Q, have a cubic relationship. That is, at lower and higher ranges of Tobins Q, firms employ higher debt, and reduce their debt at intermediate range. This is due to the complex interaction of the market conditions, agency problems and bankruptcy costs. We also show saucer-shaped relation between capital structure and profitability because of the interplay of agency costs, costs of external financing and debt tax shield. To our knowledge, we are the first to uncover these results.

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Working Papers | 2002

New Trends in SensitivityTraining

Parikh Indira J and Jayavelu S

Sensitivity Training (ST) is process through which an individual explores the journey of human existence to ask some basic questions of life, life space, role space, relationships, nature of relationships, nature of interface across many roles, relationships & spaces and above all questions about ones own life and purpose of life. ST has many forms; each of the form has its own philosophies. This paper traces the historical roots of sensitivity training in Tavistock Institute (UK) and the National Training Laboratory (USA). The historical development of (ST) in India from 1957 and the formation of Indian Society for Applied Behavioral Science (ISABS) in 1971, Indian Society for Individual and Social Development (ISISD) in 1979 and later in 1996 Sumedhas - The Academy of Human Context are discussed. Human Processes Approach (HPA) as practiced by Sumedhas is elaborated and its departure from the traditional sensitivity training methodology and new applications of sensitivity training like Bindu Lab and Learning Theatre is elaborated. The Indian and western forms of sensitivity training differ the content, process and the underlying perspectives. The two perspectives of sensitivity training are compared along with the differences in application in organizations. The HPA can be applied in organizations through unstructured sensitivity training labs, semi-structured labs and structured workshops. Unstructured labs are those that are called as Personal Growth Lab, Explorations in Roles and Identity, Interpersonal labs and so on. Semi-structured labs include Interface labs, Leadership labs, Self-renewal labs and Visioning & Co-creating labs. Structured workshops address managerial and leadership roles, team building & building a cross-functional team, integrating EQ across multiple roles and systems, managing cross cultural diversity, interpersonal and group dynamics, and dynamic equilibrium between personal and professional lives.

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Working Papers | 2002

An Optimization Based DecisionSupport Systemfor Strategic and Operational Planning inProcess Industries

Goutam Dutta and Robert Fourer

Working Papers | 2002

Obtaining Near OptimalSolutions for the Binary Knapsack Problem

Diptesh Ghosh and Boris Goldengorin

In this paper we consider the well-known binary knapsack problem. We propose a method of embedding heuristicsi in a branch and bound framework to optain solutions with profits within a pre-specified quality parameter within very short times. Our computational experiements on the more deficult problems show that algorithm can genrate solutions with profits within 0.01% of that of an optimal solution in less than 10% of the time required by exact algorithms based on similar priciples.

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Working Papers | 2002

Air-Cooling and Heating Systemfor Tiger in Zoo using Earth Tube Heat Exchanger

Girja Sharan, Sahu R K, and Jadhav Ratan

A specially designed air-cooling (and heating) system using Earth Tube Heat Exchanger (ETHE) was installed in the dwelling of a 15-year old white tiger (Panthera tigris) named Mahesh at Kamala Nehru Zoological Garden, Ahmedabad (India) in October 2000. This was done to alleviate the stresses experienced by Mahesh in summer, which is long and hot; and in winter nights, which can be quite cold. Summer temperatures in Ahmedabad remain around 40oC for a long time and can reach as high as 45oC. Night temperatures in winter can drop to 10oC or below. The system does both--provide cooling in summer and warming in winter. In winter the system warms up the ambient (cold) air by as much as 10oC at night. In summer the system cools the ambient (hot) air also by as much as 8 - 10oC during the day.

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Working Papers | 2002

Knowledge Flows and IndustrialClusters: An Analytical Review of Literature

Rakesh Basant

The dynamism and persistence of competitiveness among industrial clusters, even in the wake of globalization and liberalization in the 1990s, has led researchers to explore the causes of dynamic efficiencies at the cluster level. Cluster studies in the 1980s focused on static advantages of clustering that essentially emerge from lower transaction costs, vertical disintegration of production, availability of skilled manpower and inter-firm interaction. Recent studies have focused on dynamic efficiencies that emanate from learning at the cluster level. The "knowledge focus" of cluster studies is of recent origin and we know very little about the nature of knowledge flows and their determinants. This paper reviews the available literature to identify key processes at work and the gaps in the understanding of these processes. It is suggested that the nature and quantum of knowledge flows in a cluster would depend upon its (a) internal characteristics, (b) external linkages and (c) external policy and economic environment. Using available studies, the paper highlights the role of these characteristics in the generation and flows of knowledge within the cluster. Many of the relationships are still being explored and no consensus has emerged. Future efforts at analyzing these issues will need to systematically capture the knowledge embodied in products, processes and practices and the variety of sources that contribute to the development and diffusion of this knowledge. Apart from other issues, a research focus on the role of "external" linkages of a cluster in knowledge flows will be extremely useful and should be accorded top priority. In the process, the linkages between "internal" and "external" sources of knowledge should also be systematically analyzed. Some methodological issues that will need to be addressed while pursuing research in this direction are identified.

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Working Papers | 2002

Recent Developments inMacroeconomics

Gupta G S

The paper presents the subject matter of macroeconomics and the developments that have taken place in macroeconomic theory and policy since the Keynesian theory of 1936. In particular, it highlights the problems in data measurement, describes the business cycles and the roles of stabilisation policies in countering them, and delineates the factors determining economic growth.

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Working Papers | 2002

Lay-offs in the Blended Economy

Singh J P

Recent reports suggest that the Government of India is favourably inclined to change policy and enable establishments employing less than 1,000 workers to lay-off employees and undertake retrenchments or closures without prior permission. Corporate lay-offs in the U.S. indicate an ever-increasing trend and do not make a comforting reading. The year 2001 for example, saw the highest number of job cuts in the Fortune 500 companies than in any year ever since the survey of lay-offs were launched. Japan, despite its tradition of high employee concern, seems also to be overwhelmed with this new trend at least in the I.T. industry. In India, it appears that pressure is building up to similarly allow this enabling facility to all corporations. Prima facie, it appears as if the business is moving towards a state where manpower in an organisation is kept eternally in the transient state. In the process not only ensuring short-term profits but also as a way out of the long-term social security and welfare benefits obligations towards the employees. The paper examines the impact of lay-off and suggests that while individual impact is important in its own right, the research suggests that the effects of lay-offs go well-beyond the physical, material and psychological state of the individual to the organisation, community and the nation. Literature review suggests that several alternatives to lay-offs are available and examples of implementing these alternative solutions are available around the world. The literature also negates the general view that the unions will not cooperate in finding solutions. Example in industry clearly show that unions and workers are not only willing to cooperate but even show new ways of coping with the business problems to avoid lay-offs. The paper examines various reasons proffered in favour of lay-offs and argues that they are not necessarily a good option for an enterprise faced with business fluctuations. The crux of the issue is as to what is more important: the short-term gains in the stock market or the longer term financial health and stability of an enterprise. The paper suggests that a clear, agreed, rational policy that addresses concerns of management, labour and the general society be developed to address the issue.

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Working Papers | 2002

Neighborhood Search Heuristicsfor the Uncapacitated Facility Location Problem

Diptesh Ghosh

The uncapacitated facility location problem is one of choosing sites among a set of candidates in which facilities can be located, so that the demands of a given set of clients are satisfied at minimum costs. Applications of neighborhood search methods to this problem have not been reported in the literature. In this paper we first describe and compare several neighborhood structures used by local search to solve this problem. We then describe neighborhood search heuristics based on tabu search and complete local search with memory to solve large instances of the uncapacitated facility location problem. Our computational experiments show that on medium sized problem instances, both these heuristics return solutions with costs within 0.075% of the optimal with execution times that are often several orders of magnitude less than those required by exact algorithms. On large sized instances, the heuristics generate low cost solutions quite fast, and terminate with solutions whose costs are within 0.0345% of each other.

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Working Papers | 2001

Women in Management Challenges and Opportunities

Parikh Indira J

Women roles and so also men roles exist in the context of a society and culture, which allocates and defines roles for both. Society and culture provide myths and epics depicting the journey of a hero as he unfolds his life to seek the answers to the questions of who am I and what is the purpose of life. However, there are no epics or myths where women take a journey and an adventure to unfold their lives to discover who they are. Their stories and their life are always around relationships, search for meanings in relationships and sacrifice or investment in relationships. The women have lived contained within a narrow space, shrunken roles and frozen initiatives. After centuries of agrarian living technological revolution and industrialization opened the minds of women shattering the myths that they need to walk a few steps behind. Women journeyed into educational fields and then organizations and work outside home. This journey was undertaken in four stages over five decades. In this time women have found answers to questions about their identity. It is now time for all womankind it is their role to build a new heritage, new role models and give shape to the destiny of the girl child of tomorrow and in the centuries to come.

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