The WholeIISTE-call For Paper WWW - Iiste.org/journals

European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.
5, 2011
The Status and Prospects of the Licensed Pharmacist Qualification System in China
An Fudong1,2, Yu BoYang1 1. China Pharmaceutical University, International Pharmaceutical Business School, Nanjing 210009, E-mail: ybyang10@163.com
2. State Food and Drug Administration, Beijing 100810ChinaE-mail: afd20081@163.com

Abstract The Licensed Pharmacist Qualification System refers to a series of systems of Licensed Pharmacist management. The establishment and development of the Licensed Pharmacist Qualification System plays an unparallel role in the improvement of pharmaceutical care and the training of pharmaceutical professionals. This article generally describes the Licensed Pharmacist Qualification System in China, makes a comparison study between Chinese and American Licensed Pharmacist Qualification System and discusses about the future development of the Licensed Pharmacist Qualification System. Key words:licensed qualification; licensed pharmacist; pharmaceutical care 1. General introduction on the Licensed Pharmacist Qualification System in China Licensed qualification, the measure of access control implemented by the government in specific fields of great responsibility, social commonality or public interest, is the essential standard of knowledge, techniques and skills for setting up independent business or working in an independent way. Licensed Pharmacist Qualification System is universally implemented for the access of pharmaceutical professionals in different countries around the world. The Great Britain adopted the system in 1815 and various states in USA began to issue Pharmacy Act and Pharmaceutical Affairs Act successively since 1869, formulating that only those registered pharmacists who pass the Standardized National Examination for Licensed Pharmacist could work in related posts. 1.1 The Development of the Licensed Pharmacist Qualification System in China Drug Administration Law of the Peoples Republic of China issued in 1984 stipulates that a drug manufacturer or distributor shall have qualified pharmaceutical professionals required for drug manufacturing or distributing. Provisional Regulations on Licensed Pharmacist Qualification System promulgated in 1994 and Provisional Regulations on Licensed Pharmacist of Chinese Medicine Qualification System promulgated in 1995 symbolized that the Licensed Pharmacist Qualification System started to be carried out in an all-round way. A series of supporting regulations and regulatory documents on examination, registration and continuing education were published thereafter. Provisional Regulations on Licensed Pharmacist Qualification System was revised in 1999 and the national unified syllabus, examination, registration and management were enforced accordingly.
European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.5, 2011
1.2 The Management of Licensed Pharmacist Qualification System in China Ministry of Human Resources and Social Security is responsible for the coordination and management of the National Professional Qualification System. State Food and Drug Administration is responsible for the implementation of Licensed Pharmacist Qualification System and the formulation of relevant policies. Licensed Pharmacist Qualification Center affiliated to State Food and Drug Administration is responsible for the organization of the Licensed Pharmacist Examination and the coordination of the implementation of the pharmacist registration management, continuing education and other related work. Policy formulation, the examination proposition, the continuing education and other professional work are carried out with technical supports from the experts and professors from Medical Colleages and the senior management team from institutions of drug research, manufacturing, distributing and using. The drug regulatory departments of provinces, autonomous regions and municipalities directly under the central government are responsible for the registration management and continuing education of licensed pharmacists in their areas. In addition, Association of Chinese Licensed Pharmacist, which was founded in 2003, plays an important role in the development of professional norms and ethics as well as the trainings on continuing education and rational drug use. 1.3 The Implementation of the Licensed Pharmacist Qualification System in China 1.3.1 the Qualification Examination In China, licensed pharmacists refer to those pharmaceutical professionals who pass the unified national examination, obtain the Licensed Pharmacist Certificate, get registered in the local government and work in the institutions of drug manufacturing, distributing and using. The unified national examination of Licensed Pharmacist is held in October every year. Those who pass the examination could obtain the Licensed Pharmacist Certificate. There are seven subjects in the qualification examination: 1. Pharmacy administration and regulations; 2. Pharmacy knowledge (1); 3. Pharmacy knowledge (2); 4. Comprehensive knowledge and skills Pharmacy; 5. Pharmacy knowledge of Chinese Medicine (1); 6. Pharmacy knowledge of Chinese Medicine (2); 7. Comprehensive knowledge and skills Pharmacy of Chinese Medicine. Applicants of Pharmacist should choose subject one, two, three and four while applicants of Pharmacists of Chinese Medicine should choose subject one, five, six and seven. All examinations of the seven subjects are composed of objective questions which should be completed in the answer sheet. The examinations are arranged in for 4 separate half days, each lasting for two and a half hours. 1.3.2 Registration and Continuing Education After obtaining the Qualification Certificate, licensed pharmacists could apply for the registration in the drug regulatory department of province, autonomous regions or municipalities directly under the Central Government. They are allowed to work in drug related fields according to their registered category, scope and area after they obtain the Registered Pharmacist Certificate. A licensed pharmacist could register in only one department and work for only one organization. The registration of licensed pharmacist is valid for 3 years. The re-registration is required upon expiration of the certificate. Applicants for re-registration
should meet specific requirements and provide evidence of continuing education. Licensed pharmacist should receive continuing education and abide by registration regulations. 1.3.3 Roles Licensed Pharmacists should be responsible for the quality of drugs and ensure the basic principle of safe and effective drug use. In practice, licensed pharmacists should abide by Drug Administration Law and relevant regulations, be responsible for the supervision and management of drug quality, audit and monitor the prescription deployment, provide medical advice and information, guide rational drug use and conduct clinical works such as the monitoring of therapeutic drugs and the evaluation of the drug efficacy. 1.4 The Status of Licensed Pharmacists in China According to statistics, China has 174,000 licensed pharmacists by the end of 2009 and around 70,000 of them are registered. As to the distribution of registered licensed pharmacists, about 86% work for drug distributors, about 7%, work for drug manufacturers and the other 7% work in medical institutions. In terms of geographical distribution, there are great divergences between eastern China and western China because of the unbalance economic development levels in these regions. Most registered licensed pharmacists are employed in the eastern and middle parts of China while much less work in the western regions. 2. The Mmain Differences between Chinese and American License Pharmacist Qualification system Because of the great differences in social and economic development between China and the United States, the License Pharmacist Qualification systems in these two countries are undergoing different phrases. 2.1 Qualifications China, as a developing country, has insufficient licensed pharmacists, which means that the scale of pharmaceutical professionals can not fully meet the demands of the society. Therefore, the gaps in terms of qualifications for licensed pharmacists between China and the United States still exist. In China, whoever has a diploma higher than secondary specialized education and major in pharmacy or related disciplines (medicine, chemistry, biology, and nursing) can apply for the Qualification Examination. Howeverthere are requirements of working experiences according to the level of academic qualifications. Currently, people with secondary, tertiary, Bachelors or Master's degree, could apply for the examination after working for seven, five, three or one year respectively. There is no requirement of working experience for candidates with the Doctors degree. 2.2 Routine Management The Licensed Pharmacist Qualification System formulates that holders of Licensed Pharmacist Certificate could not apply for the position of licensed pharmacists before registration. Registered Licensed Pharmacists could work in drug manufacturers, distributors and medical institutions. The registration of licensed pharmacists should include the information of the institutions as well as the position. Working for
two different employers is forbidden. Licensed Pharmacists should apply for registration change if they want to work in a different area or different field. 2.3 Continuing education State Food and Drug Administration is responsible for the management of continuing education of licensed pharmacist in the country and the drug regulatory departments of provinces, autonomous regions and municipalities directly under the Central Government are responsible for specific works. In general, the provincial drug regulatory departments hold the training courses of continuing education with the support of accredited Medicine Collages. Continuing education adopts the credit system and mainly focuses on laws and regulations, ethics, Pharmacy, Chinese Medicine and related professional knowledge and skills. All courses are conducted mainly by lectures and divided into three types, compulsory, elective and selfstudy. Employers of licensed pharmacists should provide them with financial support, time and other necessary conditions for continuing education. 2.4 Responsibilities In China, licensed pharmacists play an important role in ensuring quality, safety and efficacy of drugs. After the implementation of Drug Classification System in China, licensed pharmacists make great contributions to guiding the rational use of drugs for patients, reviewing prescriptions and providing consulting services of medication. However, the licensed pharmacist is the pre-condition only for opening the business of one drug distributor. Most of Chinese licensed pharmacists work in drug manufacturers and distributors. In China's medical insurance system, 80% of the drug consumption is closely integrated with medical services of medical institutions. Medication of patients is mainly carried out by doctors. Besides, there are two types of qualification systems in China, namely the professional qualification system and the specialized qualification system. Therefore, the vast majority of pharmacists in medical institutions (medicine persons) have the specialized qualification of Pharmacy instead of the licensed pharmacist qualification. For example, in the end of 2009, there are 342,000 pharmacists (medicine persons) in Chinese medical and health institutions, among which only 47,000 are licensed pharmacist. 3 The Prospect of Licensed Pharmacist Qualification System in China Licensed pharmacists symbolize a vital and irreplaceable pharmaceutical strength in ensuring the quality of drugs and pharmaceutical care, the safety and efficacy of medication as well as the public health. As Chinas economy develops continuously, the living standards of people upgrade accordingly. Therefore, the public set up higher standards for medical services and health care and licensed pharmacists will play a more important role and rank a higher social position. There are three critical aspects for the future development of licensed pharmacist qualification system in China. Firstly, with a view to the rising demand of licensed pharmacists, there will be more licensed pharmacist and the licensed pharmacist qualification system will be legally established. Secondly, as the reform of Chinas government management system develops gradually, the licensed pharmacist qualification system should be implemented in medical institutions. Thirdly, as the public set higher requirements for health care, there will be a shift of attention from drug quality and safety to the quality of pharmaceutical care, and gradually to the requirements of
licensed pharmacist. These demands and changes will evoke a reform of Medical schools. Cooperation and support from all walks of the society will be needed for the cultivation and training of pharmaceutical professional as well as continuing education of licensed pharmacists so as to finally improve the level of rational use of drugs and facilitate the development of human health. Reference [1]Former Ministry of Personnel, State Drug Administration. " <Licensed Pharmacist Qualification Interim Provisions> and <Licensed Pharmacist Examination Implementation Measures> " (Ministry of Personnel, [1999] No. 34). [2] The former State Drug Administration. " <licensed pharmacist registered Interim Measures> " (SDA[2000] No. 156). [3] State Food and Drug Administration " <licensed pharmacist Continuing education Interim Measures> " (SFDA[2003] No. 298). [4] Development of Health Service, Statistical Bulletin of China. 2009.
Attrition in SMEs: The Cause
Bibhu Prasad Kar (Corresponding author) Indian School of Business, Hyderabad Gachibowli, Hyderabad 500032 Tel: +91-7799889715 E-mail: bibhuprasadkar@@gmail.com
Amalesh Sharma Indian School of Business, Hyderabad Gachibowli, Hyderabad 500032 Email: amleshsharma@gmail.com
Sourav Bikash Borah Indian School of Business, Hyderabad Gachibowli, Hyderabad 500032 Email: SouravBorah@isb.edu
Abstract Human Resource managers are devising ways to retain talent next year that will see companies paying annual increments up to 30%. The average attrition in 2010 was 10% across Indian companies, a rate that may rise to 25% in 2011-12 with improved salaries (The Economic Times, Dec 24, 2010) The SMEs sector in India has certainly been a very prevalent are of employment in recent years but one of the biggest encounters it is facing is a remarkable rise in attrition rate. There could be some common attrition factor across industry but every organization need to know the reason for attrition. India's economy is showing a healthy progress, but employers enjoying the bang have a offhand side: that of restless staff seeking for a hotter career option leading to increasing attrition in Indian SMEs. Authors have tried to find out the reason for attrition in SMEs, what the factors that are leading to attrition in SMEs in India? A conceptual framework has been developed to understand the relation between the factors affecting attrition. Our findings suggested some crucial factors affecting attrition in SMEs. This paper may be help for entrepreneurs to dealt with attrition in the organizations. KEYWORDS: Attrition, SMEs, Entrepreneurship, Indian Economy, India
1. Introduction Global staffing firm Kelly Services expects attrition levels to rise to 22% in 2011 and feels employees in customers dealings, team management and the niche technical roles will grab the lion's share of increments next year.
"These (attrition and salary increments) are signs of a growing and dynamic market. Sometimes HR experts even call them hygiene factors," the official spokesperson of Kelly said adding, "Sectors hiring first will face the monster (attrition) first, unless there are strong retention or job rotation policies".
Mr Goel of GlobalHunt however, views attrition as healthy. He says: "A balanced attrition is healthy for an organisation as it opens the avenue for fresh talent to come and create innovations and can add lot of value additions to an organisation".
"Low attrition will block fresh ideas and people will become too comfortable in their approach. But, high attrition may not give an opportunity to individual and organisation to understand and to optimise strength. Broadly speaking, quick job hoppers will have difficulty to get a good job as they are not widely accepted for long term or larger roles," Mr Goel remarked. (The Economic Times, Dec 24, 2010). The role and importance of Small and Medium Enterprises (SMEs) in the context of IndiasIndustrial development can be traced to as early as Industrial Policy Resolution of 1956 which Stated: They (SSIs) provide immediate large scale employment; they offer a method of ensuring a more equitable distribution of the national income and they facilitate an effective mobilization of resources of capital and skill which might otherwise remain unutilized. Some of the problems that unplanned urbanization tends to create will be avoided by the establishment of small samples of industrial production all over the country (Planning Commission, Second Five-Year Plan, p. 47).With relatively low capital investment, larger employment opportunities and unstinted official support, the small-scale sector maintained its growth momentum in the pre-reform period. In the post-liberalization era, its importance has not been undermined, and as late as the Ninth Five-Year Plan (1997-2002) document, it has been understood that: The (small) sector has matured and is in a position to make a much greater contribution to the national economy as well as to meet the challenge of large industry, including multinationals.
In their nature, scope and pattern, SMEs vary from country-to-country depending upon the economic, political and social environment, prevailing in that country. Broadly, SMEs are based either on the number of persons employed or on the amount of investment in fixed assets or on both. For example, in many developed countries it is the number of employees that determines the size of an enterprise, but in a developing country like India, the major determinant happens to be the investment size in an enterprise. Nonetheless, the limits in terms of investment and employment are directly related to the state of
economic development of a country. As such, a small scale unit in a developed country may be considered a large or medium-scale unit in a backward or a developing country. Time-to-time revisions in both these limits usually indicate performance and trends of SMEs, and policies of the government and its orientation toward the development of small-scale sector. For example, in European Union (EU), micro, small and medium-sized enterprises are crucial and provide around 65 million jobs representing two-thirds of total employment. In Japan, 81% of total employment is in SMEs, where on average the enterprise employs nine persons as opposed to four in the EU. In one of the Latin American countries, i.e., Colombia, SMEs account for 36% of all jobs and 63% of industrial jobs (Edit, 2005).
Today, attrition is one of the major problems faced by the various organizations across the globe. According to a recent survey conducted by All India Management Association (AIMA) on CEOs and HR managers of different IT organizations, attrition (also known as employee turnover) is the second important issue related to HR department. The impact of attrition has received considerable attention by senior management, HR professionals and industrial psychologists. It has proven to be one of the most costly and seemingly intractable human resource challenges confronting organizations.
The present paper is organized as follows: It presents the literature review, data and methodology, data analysis followed by a discussion. Subsequently, it highlights some of the major findings of the study, and finally, offers the conclusion. After doing a wide study on research on attrition, we found out some interesting rationales for attrition. With an objective to find out the factors leading to attrition we did a detailed explanatory study in SMEs. This study is both qualitative and quantitative in nature. The objective of the paper is as follows
To understand the reasons for attrition in SMEs. To identify the major problems faced by employees in the SMEs which lead to attrition; To understand the problems faced by the organization due to attrition; To suggest ways and means to check attrition.
2.
Theoretical Background
Employers have a need to keep the employees from leaving the organization in a short duration. Employers want their employees to build up a lifelong relationship with the organization, contribute to the performance and success of the firm and become the force behind the growth in long term. But modest aim generally ends with sorrow. Attrition is one of the most puzzling words in the management literature. It is because; the cause and effect relationship here is not absolute. Cause and Effect relationship is affected by multiple variables and it is difficult to build an empirical model/conceptual model on the basis of
experience/data. The saying, good help is hard to find, is even true these days because the job market is becoming increasingly tight (Eskildesen 2000, Hammer 2000). Employers fight to get skilled employees to maintain the prosperity of the organization (Eskildsen and Nussler 2000). Employee satisfaction and customer satisfaction varies proportionately (Mark Parrott 2000). Growing competitiveness in the market provides pressure on the employees. These pressures generally give birth to mental agony on the mind of the employees. Mark Parrott (2000) says that todays employees pose a complete new set of challenges. As a result, tapping of talent becomes more complex. Employees that are satisfied and happy in with their jobs are more dedicated and functional in customer service and business operation (Hammer 2000; Marini 2000; Denton 2000). Also it is proved that employees who are satisfied with their jobs are more productive, creative and be more likely to be retained by the company (Eskildsen & Dahlgaad 2000, Kim 2000; Kirby; Lee 2000; Money 2000; Wagner 2000). Again researches have proved that many environmental factors play significant role in the retention of employees such as Pay and benefits, communication (Brewer 2000; Wager 2000), motivation, justice (Kirby 2000; Tristram 2000) and leisure time (Rabbit 2000; Wilson 2000).
The key organizational (HR) issue being faced today by all the companies is attrition.The highest percentage of attrition is in voice-based processing of BPO industries.Career growth, compensation and supervision are the most important reasons which contribute to attrition. Due to monotonous nature of the job, employees change their jobs frequently and the average period is two years. Conditions of attrition vary from small to big companies. Here all companies felt that exit interview is the best way to control or maintain attrition rate in companies. Marketing departments of organizations speak on customer relationship management and their importance for the same. No organization can survive without giving importance to its employees. They are the first customers and their requirement should be identified and fulfilled. Like CRM, Employee Relationship Management (ERM) is the mantra an organization should follow to retain their employees. Fulfilling the reasonable expectations of employees should be a continuous process (Anantharaja, A. 2009).
Attraction-selection-attrition (ASA) model across 5 organizations (n equals 681). Organization membership and occupational attributes interacted with individuals' turnover intentions to predict several personality variables. Relationships among organization membership, occupation type, and personality were partially mediated by perceived structure. The 3-way interaction analyses indicated that occupation type may compensate for the effects of organizational characteristics in making particular traits more suitable for a given organization. The overall pattern of findings supports the more general ASA predictions, but the findings also suggest a need to develop a more refined conceptualization of the trait homogenization process (Schaubroeck, John; Ganster, Daniel C; Jones, James R, 1998)It is the talent attrition season of the year and HR managers are scratching their heads like never before. With bonus and increments being paid across sectors and management cadres, movement of talent has caught on big-time. While, last year, aviation and media were the flavours of the season, this year financial services, telecom, consumer goods and retail followed by real estate and media are expected to clock the biggest employee churn (McClatchy -
Tribune Business News, 2006) . There is considerable homogeneity across the firms in relation to their use of human resources (HR) practices providing support for the insights based on the new institutionalism. The factors leading to the homogeneity HRM are discussed. It is argued that theory-based empirical research on HRM in SMEs within the same industry enable us move towards a systematic understanding and explanation of HRM in SMEs (Tsai, Chin-Ju, 2010). SMEs align their HRM practices with their realized strategy within three configurations, namely local, international, and world-class SMEs. Regardless of their strategic choices, these SMEs achieve comparable levels of performance (Fabi, Bruno; Raymond, Louis, 2000). Due to their limited size, many small and medium enterprises (SMEs) cannot justify full-time HR professionals in their organizations. Thus, the complex and time-consuming nature of many HR activities can result in a significant drain on existing managerial resources. Professional employer organizations (PEOs), however, offer SMEs an alternative for handling their workforce by providing compensation programs, regulatory compliance, and other HR-related services. This study examines the satisfaction levels of 763 customers of one large PEO. Results show that firm growth, past HR problems, workforce size, contractual detail, service representative-client relations, value congruence, and overall PEO usage are significantly related to managerial satisfaction with PEO services (Klaas, Brian S; McClendon, John; Gainey, Thomas W, 2000). The existence of mission statements in the studied firms was associated with firm performance. It is also found that organizational performance is significantly associated with the degree of non-managerial employees' involvement in the process of mission statement development. Finally, the presence of financial goals in the studied firms' mission statements were negatively associated with firm performance (Karami, Azhdar, 200).
Industrial attrition literature also shows a few factors that affect the attrition which include employee turnover, commitment, motivation, changes in work place, training and development etc. To this level, all things are fine. These finding are valid for the employees who stay in the organization for long time. Unfortunately, no research has attempted to see the causal relationship between the attrition during probation and the probable reasons. Many Researchers say that the overall culture of the organization actually causes the attrition. But here again it is questionable that whether an employee staying only for a few months in the organization get affected by the so called culture. Following this puzzle, we attempted to find the probable reasons of attrition during the probation period. We took into account different time frame, different employees who left their organization in probation period for the research.
3. Gap There is no co-relation between the cause of attrition in SMEs and the steps taken to retain it. Since, it is not understood which factor makes the employee to leave the organization, measures cannot be satisfactory.
10
4. Methodology & Data Collection This research is undertaken to assess the causes of attrition in SMEs and its remedies. The main aim of such a design is to ensure that the required data are collected objectively, accurately and economically. Primary Data: Data regarding the causes of attrition in SMEs and its remedies was collected directly by interacting with the employees of the organization by a structured questionnaire. Secondary Data: The secondary data was collected from the existing data, company records, and the Internet. 5. Research Tools Questionnaire: The questionnaire used in this study was direct and structured. The types of questions asked in this questionnaire were both closed-ended and open-ended, and multiple choice. To test the validity and veracity of the structure of the questionnaire and to find out whether the purpose would be fulfilled, a pilot study was conducted where a sample of 20 questions was collected to find opinion of employees on the causes of attrition in a company. The main objective of using these techniques was to understand the current process of the company and whether the employees were satisfied. 6. Sample Size The scope of the study was limited to employees of different SMEs. The numbers of respondents in this were 120. The research work was carried out at Hyderabad, Ahmedabad in 25 engineering manufacturing SMEs and 25 SMEs food processing industries, Employees are one of the most critical stakeholders of an organization, thus understanding the behavior of the employees is critical for organizational success. The contextual implications, which most researchers have ignored earlier, we have tried to incorporate it our research. Researchers have taken into consideration some of the critical factors such as lack of resources, distance from home etc.
In the first step, broadly the qualitative research has been carried out. A total of 50 respondents have been interviewed across various organizations. The type of sampling used is mostly random. Researchers have approached a set of organization and interviewed employees in all level of management to ensure representation across various layers of management
Critical incidence technique is used to understand the perception of employees towards their employers. The interviews had dual purpose. The primary purpose is to understand various factors that influence employees behaviors which might lead to attrition. Again the researchers also wanted to see whether or not demographic variables play a role. Employees were asked to recall various instances where they felt that the behavior shown by their employers were not fair. Most of the respondents cited similar sort of incidences and believed that most of the commitments made during the recruitment havent been fulfilled. The key points have been listed immediately after the interview thus the results are consistent with 24 hours
11
rule by Eisenhardt and Bourgeois (1988).
The Cohen Kappa co-efficient is calculated based on coding done by two independent coders so as to identify different themes based on the responses from the interview. High inter coder reliability (Cohen Kappa co-efficient = 0.75) has been achieved. The research tries to find out the cause of attrition from practical standpoint. 6. Data Analysis In the second phase of the research, researchers concentrated on constructing a theoretical frame work which will be useful for small scale entrepreneurs which will be useful to understand the cause of attrition specific to SMEs. The component matrix (Table: 3) extracted five factors. The attributes in each factor have been mentioned below. FACTOR1: CONDITION FACTOR2: Pressure from entrepreneur, high pressure of sales, monotonous job, vague targets, Malleable working hours, availability of resources, working situation = WORKING
undistinguishable responsibility, multiple bosses = NATURE OF WORK FACTOR3: cooperative peers, cooperative supervisors, feedback mechanism, Approachable supervisor, permissible faults, tolerance level = ORGANIZATIONAL PHILOSOPHY FACTOR4: Remuneration at par with other company, payment on time = SALARY FACTOR5:Scope for career growth, Scope for skill development = CAREER PROGRESSION After identifying the factors we tried to find out the most important factors that are actually leading to attrition in SMEs. Respondents were asked to rate the factors on a five point scale. (Refer Table no: 3) After doing a regression analysis of the factors affecting attrition with the factors which have been obtained after factor analysis we got the following regression equation. Factors affecting Attrition level= 4.00+0.665* WORKING CONDITION + 0.143* NATURE OF WORK +0.483* ORGANIZATIONAL PHILOSOPHY +.211* SALARY + 0.510* CAREER PROGRESSION From the equation it can infer very easily that the most important factor for the respondents is the condition of the workplace, career growth opportunity and culture. The effect of salary and benefits on the motivational level is also small in comparison to the other 3 factors. The regression output has been attached below for reference as table no 4. The value of the R square is 0.972 which shows that the model able to explain 97.72% of the variance in dependent variable. Refer Table No 5.
12
Based on the equations, the theoretical frame has been developed. Refer Figure 1. In SMEs the attrition is due to the Working condition, Organizational Philosophy and Career Progression. From the regression equation it is clear that most important concern for a SME Employee is the Working Condition. It is a very important finding in context of SMEs as employees are giving higher importance to procedural justice. Again Organizational philosophy which is closely related to culture and interactive justice is considered to be much more important than Salary that includes both tangible and intangible benefits. To retain the employees and lowering attrition employers primary focus should be focused towards ensuring both interactive and procedural justice. Again salary and benefit which most entrepreneurs believe to be the most important cause of attrition seems to be less important in comparison to many other factors. It is clear from the research that employees are more concern about their career development as well as the flexibility they can enjoy in workplace that help them to balance their personal and professional life. Limitation of the study And scope for future research: Although the research has many interesting findings it has a couple of limitations. First of all the research is carried out only in two major cities. Thus more data may impact the findings of the study. Again research is lacking quantitative generalization. Thus researchers in future may concentrate on addressing these two areas of research. 7. Conclusion The key organizational (Attrition) issue being faced today by all the companies is attrition. The more percentage of attrition is in SMEs. Due to monotonous nature of the job, employees change their jobs frequently and the average period is two years. Conditions of attrition vary from small to big companies. Departments of organizations speak on customer relationship management and their importance for the same. No organization can survive without giving importance to its employees. They are the first customers and their requirement should be identified and fulfilled. Like CRM, Employee Relationship Management (ERM) is the mantra an organization should follow to retain their employees. Fulfilling the reasonable expectations of employees should be a continuous process.
References Buck, J. M., & Watson, J. L. (2002). Retaining staff employees: The relationship between human resources management strategies and organizational commitment. Innovative Higher Education, 25(3), 175-193. Ganesan, R., & Khan, T. F. (2010). Conceptual review on retention strategies - a practical approach. Allied Academies International Conference.Academy of Strategic Management Proceedings 9(1), 15-15-26. Glen, C. (2006). Key skills retention and motivation: The war for talent still rages and retention is the high ground. Industrial and Commercial Training, 38 (1), 27-45 Griffeth, R.W. and Hom, P.W. (1995), The employee turnover process, Research in Personnel and Human Resources Management, Vol. 13, pp. 245-93.
13
Harvard Business Essentials. (2002). Hiring and keeping the best people. Boston: Harvard Business School Press Johnson, J. T., Griffeth, R. W. & Griffin, M. (2000). Factors discriminating functional and dysfunctional sales-force turnover. Journal of Business and Industrial Marketing 15(6), 399-415. Kransdorff, A. (1996). Succession planning in a fast changing world. Management Decisions, 4(2), pp.3034. Mobley, W., Griffeth, R., Hand, H. and Meglino, B. (1979), Review and conceptual analysis of the employee turnover process, Psychological Bulletin, Vol. 36, pp. 493-522. Robinson, R. and Barron, P. (2007), Developing a framework for understanding the impact of deskilling and standardisation on the turnover and attrition of chefs, International Journal of Hospitality Management, Vol. 26, pp. 913-26. Smith, M., Kendall, L. and Hulin, C. (1969), The Measurement of Satisfaction in Work and in Retirement: A Strategy for the Study of Attitudes, Rand McNally, Chicago, IL. Tutuncu, O. and Kozak, M. (2007), An investigation of factors affecting job satisfaction, International Journal of Hospitality & Tourism Administration, Vol. 8 No. 1, pp. 1-19. India inc in attrition mode (2006). . United States, Washington: McClatchy - Tribune Information Services. Tsai, C. (2010). HRM in SMEs: Homogeneity or heterogeneity? A study of taiwanese high-tech firms. The International Journal of Human Resource Management, 21(10), 1689. Fabi, B., & Raymond, L. (2009). Strategic alignment of HRM practices in manufacturing SMEs: A gestalts perspective. Journal of Small Business and Enterprise Development, 16(1), 7-7-25. Tahir, P. R., Mohamad, M. R., & Hasan, D. B. (2011). A short review of factors leading to success of small medium enterprises. Interdisciplinary Journal of Contemporary Research in Business, 2(11), 519-519-529. Klaas, B. S., McClendon, J., & Gainey, T. W. (2000). Managing HR in the small and medium enterprise: The impact of professional employer organizations. Entrepreneurship Theory and Practice, 25(1), 107-107124. Anantharaja, A. (2009). Causes of attrition in BPO companies: Study of a mid-size organization in india. IUP Journal of Management Research, 8(11), 13-13-27. Ganesan, R., & Khan, T. F. (2010). Conceptual review on retention strategies - a practical approach. Allied Academies International Conference.Academy of Strategic Management.Proceedings, 9(1), 15-15-26.
14
15
Figure 1. The theoretical framework defines the relationship among various factors effecting attrition in SMEs.
16
EMPLOYEES SAMPLE SIZE SECTOR MANUFACTURING FOOD PROCESSING SERVICE MEDIA & PUBLISHING GENDER MALE FEMALE MANAGEMENT LEVEL TOP MIDDLE JUNIOR 30 30 60 80 40 30 30 30 30 120
Table 1: Demographic profiling of the Respondents
RESPONDENTS AVAILABILITY OF RESOURCES CAREER GROWTH SALARY WORKING CONDITION SUPPORT FROM THE MANAGEMENT BEHAVIOR OF PEERS 2 15 11 4 5 13
PERCENTAGE 20%
18% 36% 14% 9%
5%
Table 2: Themes
17
Component Matrix Component 1 Malleablehours Avilibiltyresources Wrksitution Highsalepr Monowrk uncertatargets undstngusalesponsibiliti multbos Cooperativeers Cooperativesuper Feedbackmech permissiblfault tolerancelev Remuerationwitcomany paymentontime scopeskilldev Training .668 .654 .468 .045 .385 .356 .314 .458 .376 .089 .456 .018 -.366 .189 -.161 .142 -.557 2 -.315 .056 .145 .925 .686 .915 .917 .765 -.460 -.199 -.226 -.020 -.389 .279 -.256 -.185 .078 3 .256 .526 .415 .262 .379 -.164 -.160 .013 .689 .989 .869 .756 .789 -.093 -.126 .685 -.365 4 -.296 -.258 -.126 -.256 -.556 -.165 -.165 -.006 .289 .156 .126 -.664 -.484 .918 .745 .248 .256 5 -.529 .129 -.260 .289 -.090 .089 -.096 .489 .456 -.369 .125 -.264 -.088 .256 .656 -.658 .789
Extraction Method: Principal Component Analysis. Table 3: Factor Analysis Output
18
Model
Unstandardized Coefficients B Std. Error 1.000 .000
Standardized Coefficients Beta
Sig.
1 (Constant) REGR factor score 1 for analysis 1 REGR factor score 2 for analysis 1 REGR factor score 3 for analysis 1 REGR factor score 4 for analysis 1 REGR factor score 5 for analysis 1
4.000 .665
0.007 .254 0.062
.143
.000
.042
0.060
.483
.000
.593
0.055
.211
.000
.583
0.082
.510
.000
.492
0.025
a. Dependent Variable Motivation level Table 4: The regression output
19
Model
R Adjusted Std. Error Change Statistics Square R Square of the R Square F df1 df2 Estimate Change Change .972 .954 .26094 .396 42.680 1 3
Sig. F Change
1.
.986
.007
Dependent Variable: motivation level Table 5: Dependent Variable: motivation level
20
Price-Earnings and Price-to-Book Benchmark Techniques as Predictors of Equity Returns in India

Chatterjee Ansuman (Corresponding author) Asst. Professor, Department of Management Studies, Kushagra Institute of Information & Management Science, Cuttack, Odisha, India. Email: c_ansuman@yahoo.com Abstract: Among the different benchmark techniques used by investors to determine the relative merit of equities, while the price-earnings is a favourite, recent studies report the overriding importance of the book value. Hence this study explores the comparative ability of the two techniques namely price-earnings ratio and price-to-book ratio, in reaping superior equity returns in India. The study considers 80 companies listed in Bombay Stock Exchange for a period of 8 years from 2001 to 2008 and identifies an inverse association between the benchmark ratios and the equity returns in India, which magnifies as the duration of investment period expands. On the basis of the lowest and highest rank of benchmark ratios value and glamour portfolios were constructed respectively. Comparing the annualised returns of these portfolios, the study concludes that though both the benchmark techniques are capable of identifying the value stocks that can earn significantly higher returns; the price-to-book is rather a superior technique in India. Keywords: Benchmark Valuation Techniques, Equity Investment Strategy, Price-to-book Ratio, PriceEarnings Ratio, Valuation Ratios.
1. Introduction:
With the ever increasing investment culture worldwide, the erstwhile rule of intuition based speculation is replaced by the conscious demand of research based investment. Economists and financial practitioners have sought to identify variables that predict equity returns in the market for the last two decades. After examining various metrics as future predictors of share price performance, they have found few benchmark techniques including size, interest rate, beta, price-to-book ratio (P/B), price-earnings ratio (P/E), and dividend yield (DY) to be rather good indicators among many others. According to the mispricing view, the stocks with low P/E or P/B ratios (or value stocks) earn significantly higher returns than stocks with high P/E or P/B ratios (or glamour stocks). Thus, there is an inverse relation between the P/E or P/B ratios and stock returns, and an investor can achieve systematically higher returns by investing the right stock having low P/E or P/B ratio (value stocks). Apart from testing the validation of this mispricing view, the aim of this study is to examine the comparative ability of the two popular benchmark techniques, namely the P/E and the P/B ratios to forecast stock return in India.
21
2. Relevance of the study:

While the price-multiple methods can be applied to many accounting variables, earnings have been the most common denominator. The importance of the P/E amongst investors and empirical success of the low P/E strategy lead naturally to the question that whether there are other measures of value that can be utilised to predict the performance of common stocks instead of the P/E. Any summary measure that claims to value equity accurately warrants critical examination before being accepted universally. Meanwhile any summary measure with implications similar to the P/E deserves publicity because the P/Es reliability is seriously limited as it cannot be applied in all situations. Recent empirical studies as well as investment analysis report the importance of the book value. Probably the strongest argument in support of the P/B ratio is that it can be used as a yardstick of value of firms with negative earnings whereas the P/E cannot. Hence it is a natural extension to investigate the accuracy of P/B strategy in contrast to the popular P/E strategy. In this respect, this study provides a test of these two valuation ratios comparative ability to predict stock returns in India. 3. Brief literature review:
In contrast to the earlier research in 1960's and 1970's, recent studies provide evidence that medium to long term stock returns can be explained by variables like dividend yields, price earnings ratios, price to book ratios among others (Fama and French 1988 and 1989; Campbell and Schiller 1988). Similarly, Harvey (1995) asserts that emerging market returns (the category that India belongs to) are more predictable than developed market returns. Empirical studies are flooded with the evidence that relative valuation techniques (including P/E and P/B) are pretty useful and can help the investors in picking the value stocks rather than glamour stocks, for reaping larger returns. Studies have identified that stocks with lowest P/E ratio (Basu 1977; Oppenheimer 1984; Basu 1983; Lakonishok et al. 1994) earn significantly larger returns than stocks with highest P/E ratio. Studies in other countries also confirm the finding that factors other than beta can explain returns. Chan et al. (1991) reveal a significant relationship between equity returns and book-to-market (reverse of P/B) ratio. Pandey and Chee (2002) used yearly panel data from 1993 to 2000 and found that size, beta, E/P (reverse of P/E) ratio, dividend yield and book-to-market (reverse of P/B) ratio play a significant role in predicting the expected stock returns in Malaysia. Comparing the valuation accuracy of different valuation techniques, while few studies claim that P/E benchmark valuation method performs better than P/B valuation method (Agnes and McNamara 2000); some other studies concluded that the P/B ratio better reflects expected future return on equity (Penman 1996; Chan and Chen 1991; Fama and French 1992 and 1995). These conflicting remarks on the superiority of P/E against P/B in predicting stock returns coupled with dearth of studies pertaining to Indian capital market in this regard raise doubt whether popular acceptability of P/E benchmark technique is challenged by the P/B benchmark technique in India, which is sought to be answered in this research study.
22
4. Study objectives and methodology:
The study is centred on the following research objectives;
i. ii.
iii.
To ascertain whether the price-earnings (P/E) and price-to-book (P/B) benchmark techniques can be a basis to identify value stocks that can earn larger returns in India. To compare the ability of the P/E benchmark technique against the P/B benchmark technique in reaping superior equity returns in India. To identify the impact, if any, of different investment periods on such benchmark technique based equity returns in India.
Data for 80 companies comprising of 8 different industries listed in Bombay stock exchange (BSE) using judgemental sampling technique are taken up from capitaline database for the time period of 08 years from January 1st, 2001 to December 31st, 2008. The industries considered were capital goods industry, finance industry, fast moving consumer goods industry, healthcare industry, housing related industry, information technology industry, metal & mining industry and oil, gas & power industry. For the sample equities, the P/Es and P/Bs have been calculated with half year intervals on January and July every year purposively, by dividing the market capitalisation of the equity for the corresponding month by the previous fiscal profit after taxes (PAT) and book values (BV) respectively (Aras and Yilmaz 2008). All the sample equities were ranked in the ascending order of their P/E and P/B respectively. The first ten equities with lowest P/Es were taken as P/E based equal-weighted value portfolio (value portfolio equal-weighted value portfolio (value portfolio (glamour portfolio P/B) were also constructed. The equity returns were computed individually for multiple investment periods of 6 month, 1 year, 2 year, 3 year and 4 year durations separately with half year intervals of January and July every year in terms of annualised changes in average market capitalisation, as it would then take care of adjustments for bonus, rights and stock splits. Subsequently annualised portfolio returns were also calculated for different investment periods. The statistical relationship between the financial ratios and equity returns for different investment periods were identified with the help of Karl Pearsons correlation analysis. The study examines the value-glamour return spread for each of the benchmark techniques and applies paired t test of significance to detect whether each of these two techniques can be a basis to determine the level of equity returns in India or not. Further comparison of value portfolio
P/E P/B P/E
) and the last ten equities with highest
P/Es were taken as P/E based equal-weighted glamour portfolio (glamour portfolio P/E). Similarly P/B based ) and P/B based equal-weighted glamour portfolio
- value portfolio
P/B
return spread and
paired t test is carried out to compare the ability of the benchmark technique P/E against the P/B in reaping superior equity returns in India. Finally the investment period return spreads of Value Portfolios were also examined to identify the impact of different investment periods on annualised returns of Value Portfolios. All calculations were carried out applying SPSS software. 5. Statistical relationship between the financial ratios and equity returns:
In confirmation to the mispricing view, the Karl Pearsons coefficients of correlations (Figure-1) between the benchmark techniques and the equity returns for different investment periods reveal that there exists an
23
inverse association between the benchmark techniques (both the P/E and P/B) and the annualised return % of the equities across all the investment periods. This means that as the benchmark techniques reduces the subsequent equity returns increases and vice versa. Moreover the declining linear trend lines hint that as the duration of investment period expands such inverse association also levers up. During longer investment periods (two to four years) the negative correlation coefficients are higher than the all period average coefficients (-0.358 in case of P/E and -0.437 in case of P/B) which is not true during relatively shorter investment periods (six months to one year). This means that the benchmark techniques and equity returns exhibit a stronger inverse association in case of longer investment periods (two to four years) than comparatively shorter ones. Further it is noticed that for all periods the P/Bs have greater negative association with subsequent equity returns rather than what the P/Es have, resulting almost parallel linear trend lines of respective correlation coefficients, where the correlation with P/B linear trend line lies below the linear trend line of correlation with P/E and this difference is found to be statistically significant at 1% level. This indicates a proportionate reduction in P/B suggests a reasonably higher proportionate increase in equity returns than what the same proportionate reduction in P/E suggests. 6. Portfolio returns:
The annualised returns of the portfolios are summarised in Table-1. It can be observed that whether on the basis of P/E or P/B, the value portfolios always earned more than the glamour portfolios. Across all investment periods P/B based value portfolio (value portfolio years the portfolio returns also scale up. 7. Value - glamour return spread:
P/B
) earned more than the P/E based Value
Portfolio (value portfolio P/E). Further as the duration of investment period expands from six months to four
In this section the annualised returns of P/E & P/B based value portfolios are compared with the annualised return of P/E & P/B based glamour portfolios respectively. The comparison would facilitate in identifying whether the P/E and P/B benchmark techniques can be a basis to determine the level of equity returns in India and to compare the ability of the P/E benchmark technique against the P/B benchmark technique in fetching equity returns in India. 7.1. P/E based value-glamour return spread: The comparison of P/E based value portfolio value portfolio
P/E P/E
and glamour portfolio
P/E
as well as their linear trends

P/E
(Table-1 & Figure-2) reveal that in all the periods the P/E based value-glamour spread is positive (i.e. annualised returns % are rather greater than that of the glamour portfolio
P/E
). The all
period mean annualised return of value portfolio
is 480.94%, which is almost six times of the all period
mean annualised return of glamour portfolio P/E (83.29%) and accordingly in terms of annualised return, the all period average P/E based value-glamour spread is 397.65% (the difference between all period mean annualised returns of value portfolio P/E and glamour portfolio P/E). But the paired t test unearth that the P/E based value-glamour spread is significant only in case of the longest four year investment period and insignificant for all other investment periods of lesser time duration
24
at 5% significance level. This suggests that the P/E benchmark technique of equity investment is significantly successful only in case of longest investment period (four year) rather than relatively shorter ones. 7.2. P/B based value-glamour return spread: Similarly the comparison of P/B based value portfolio (i.e. value portfolio portfolio
P/B P/B P/B
and glamour portfolio
P/V
as well as their linear
trends (Table-1 & Figure-3) unveil that in all the periods the P/B based value-glamour spread is positive annualised returns are rather higher than the annualised returns of the glamour
P/B
). The all period mean annualised return of value portfolio
is 834.17%, which is more than
thirty-four times of the all period mean annualised return of glamour portfolio P/B (24.05%) and accordingly in terms of annualised return, the all period average P/B based value-glamour spread is 810.12% (the difference between all period mean annualised returns of value portfolio P/B and glamour portfolio P/B). Further the paired t test bring to light that the P/B based value-glamour spread is significant in case of the longer investment periods of two to four years and insignificant for all other periods of relatively lesser time durations at 5% significance level. This suggests that the P/B benchmark technique of equity investment is successful only in case of longer investment period (two to four year) rather than shorter ones. 7.3. P/E vs. P/B based value-glamour return spread: Comparing the valueglamour spread of P/E and P/B in terms of annualised return, the all period average P/B based value-glamour spread at 810.12% is more than twice the P/E based value-glamour spread of 397.65%. Further, it can be said that the P/B valueglamour spread becomes significant relatively earlier in two or more years investment periods, whereas the P/E valueglamour spread becomes significant only in case of the longest four year investment period. Hence in case the P/E benchmark technique is followed significantly higher returns can be obtained from value portfolio rather than glamour portfolio only in case the investment is made for the longest four year period. Whereas in case the P/B benchmark technique is followed significantly higher returns can be obtained from value portfolio rather than glamour portfolio even in relatively shorter investment periods (two to three years) as well.
8. Value portfolio P/E - value portfolio P/B return spread:

Subsequently the comparison of P/E based value portfolio and P/B based value portfolio as well as their linear trends (Table-1 & Figure-4) reveal that during all investment periods, the annualised returns of the value portfolio P/B are higher than that of value portfolio portfolio
P/B P/E
. The all period mean annualised return of value

P/E
(834.17%) is 73.44% higher than the all period mean annualised return of value portfolio and value portfolio
(480.94%). Moreover the paired t test discloses that the value portfolio
P/B P/E
return spread is
significant irrespective of the investment period time duration at 5% significance level, whereas such spread becomes significant even at 1% level of significance in case of relatively longer investment periods (three to four years). This suggests that no matter what is the time duration of the investment period, the P/B benchmark technique of value stock investment is always capable of reaping significantly greater
25
returns than the P/E benchmark technique of value stock investment and more so significantly during relatively longer investment periods (three to four years). 9. Investment period return spread of value portfolios:
Next let us consider the changes in annualised returns of value portfolios based on both the bench mark techniques as the duration of investment period changes. As is earlier observed in Table-1, the value portfolio returns escalate as the time duration of investment periods increase from six months through four years. Both value portfolio
P/E
and value portfolio
P/B
earn greater annualised returns during longer
investment periods (three to four years) rather than the all period average annual returns (480.94% and 834.17% respectively), as well as than what they earn during relatively shorter investment periods (six months to two years). Moreover the paired t test (Table-2) suggest that during longer investment periods (three to four years) both P/E and P/B based value portfolios earn significantly higher annualised returns than what they earn during relatively shorter periods (six months to two years), at 95% confidence level. But during two year investment period, while P/E based value portfolio earns significantly higher annualised returns than what it earns during the shortest six month investment period, the P/B based value portfolio earns significantly higher annualised returns than what it earns during all relatively shorter periods (six months to one year). This again establishes the supremacy of P/B benchmark technique in contrast to the P/E. Summary and conclusion: The study identifies an inverse association between the benchmark techniques (both the P/E and P/B) and the annualised equity returns in India. Moreover as the duration of investment period expands such inverse association also magnifies and exhibits a stronger inverse association in case of longer investment periods (two to four years) than comparatively shorter ones. Further it is noticed that for all investment periods, the P/Bs have significantly greater negative association with subsequent equity returns rather than what the P/Es have. Across all the investment periods, in confirmation to the mispricing view both the P/E and P/B based value-glamour spreads are found to be positive. However the comparison of the value-glamour spreads reveal that P/B is superior with an all period average value-glamour spread of 810.12% which is more than twice the P/E based value-glamour spread of 397.65%. Additionally the P/B based valueglamour spread becomes significant relatively earlier in two or more years investment periods, while the P/E based value glamour spread becomes significant only in case of the longest four year investment period. Further irrespective of the duration of investment periods, the (lowest) P/B based value portfolios always earned significantly larger returns than the (lowest) P/E based value portfolios. Therefore it is conclusive that though both the benchmark techniques are capable of identifying the value stocks that can earn significantly higher returns; the P/B is a superior technique in India. The study also discovers that annualised returns of both the benchmark technique based value portfolios escalate as the duration of investment expands from six months through four years. During longer investment periods (three to four years) both the P/E and P/B based value portfolios earn significantly larger annualised returns than what they earn during relatively shorter periods (six months to two years).
26
But during two year investment period, while the P/E based value portfolios earned significantly larger annualised returns against only the shortest six month investment period, the P/B based value portfolios earned significantly larger annualised returns against all relatively shorter investment periods (six months to one year), which again confirms the superiority of P/B benchmark technique in contrast to the P/E benchmark technique. References: Agnes, Cheng C.S, and McNamara, Ray. (2000). The valuation accuracy of the price-earnings and pricebook benchmark valuation methods. Review of Quantitative Finance and Accounting, 15, 349-370. Aras, G. and Yilmaz, M.K. (2008). Price earnings ratio, dividend yield and market to book ratio to predict return on stock market: evidence from emerging market. Journal of Global Business and Technology, 4, 1, Spring, 21-30. Basu, S. (1977). Investment performance of common stocks in relation to their price/earnings ratios: a test of efficient market hypothesis. Journal of Finance, 32, 3, 663-682. Basu, S. (1983). The relationship between earnings yield, market value and return for NYSE common stocks. Journal of Financial Economics, 12, 129-156. Campbell, John Y., and Shiller, R. J. (1988). Stock prices, earnings, and expected dividends. Journal of Finance, 48, 661-676. Chan K.C., Hamao Y. and Lakonishok J. (1991). Fundamentals and Stock Returns in Japan. Journal of Finance, Vol. 46, No. 5, pp. 1739-1763. Chan, L.K.C and Chen, N.F. (1991). Structural and return characteristics of small and large firms. Journal of Finance, September, 46, 1457-1484. Fama, Eugene, and French, K. R. (1988). Dividend yields and expected stock returns. Journal of Financial Economics, 22, 3-25. Fama, Eugene, and French, K. R. (1989). Business conditions and expected returns on stocks and bonds. Journal of Financial Economics, 25, 23-49. Fama, E.F. and French, K.R. (1992). The cross-section of expected stock returns. Journal of Finance, June, 47, 2, 427-465. Fama, E.F. and French, K.R. (1995). Size and book-to-market factors in earnings and returns. Journal of Finance, March, 50, 1, 131-155. Harvey Campbell R., (1995). Predictable risk and returns in emerging markets. Review of Financial Studies, 8, 3, 773-816. Lakonishok, J., Shiller, A. and Vishny, R.W., (1994). Contrarian investment, extrapolation, and risk. Journal of Finance, 49, 5, 1541-78. Oppenheimer, H., (1984). A test of Ben Grahams stock selection criteria. Financial Analyst Journal, September- October, 27-36.
27
Pandey I M and Chee H K. (2002). Predictors of variation in stock returns: evidence from Malaysian company panel data. Global Business and Finance Review, 7, 1, 61-67. Penman, S.H., (1996). The articulation of price-earnings and market-to-book ratios and the evaluation of growth. Journal of Accounting Research, Autumn, 235-259.
Table- 1, Annualised returns (%) of benchmark technique based value and glamour portfolios. Investment period Annualised returns of P/E based portfolios Value portfolio
P/E
Annualised returns of P/B based portfolios Value portfolio

P/B
Glamour portfolio
P/E
P/E based valueglamour spread
Glamour portfolio P/B
P/B based valueglamour spread
(A) Six month One year Two year Three year Four year Average 260.76 181.59 421.12 662.91 878.31 480.94
(B) 49.56 59.19 72.75 94.86 140.11 83.29
(A-B) 211.20 122.40 348.37 568.05 738.20 397.65
(P) 306.92 246.92 622.48 1144.33 1850.21 834.17
(Q) 14.69 18.66 27.84 27.7 31.38 24.05
(P-Q) 292.23 228.26 594.64 1116.63 1818.83 810.12
This table represents the annualised returns obtained from the benchmark techniques based value and glamour portfolios as well as the value-glamour return spread during different investment periods, Source: Empirical Research.
Table- 2, Summarised paired t test of significance of mean differences of annualised returns of value
28
portfolios. Investment Period Pair Significance of Mean Differences of Annualised Returns of Value Portfolios P/E 6 Month & 1 Year 6 Month & 2 Year 6 Month & 3 Year 6 Month & 4 Year 1 Year & 2 Year 1 Year & 3 Year 1 Year & 4 Year 2 Year & 3 Year 2 Year & 4 Year 3 Year & 4 Year Insignificant Significant Significant Significant Insignificant Significant Significant Significant Significant Insignificant Value Portfolios P/B Insignificant Significant Significant Significant Significant Significant Significant Significant Significant Insignificant
This table summarises the results of the paired t test of significance of mean differences of annualised returns of the benchmark techniques based value portfolios at 5% level of significance, Source: Empirical Research.
29
Figure-1, Correlation of annualised returns (%) with P/E and P/B. The figure represents the coefficient of correlation between the annualised returns of equities and their benchmark ratios as well as their linear trends for different investment periods, Source: Empirical Research.
Figure-2, Comparison of annualised returns of P/E based value and glamour portfolios. This figure represents the annualised returns of P/E based value and glamour portfolios as well as their linear trend lines for different investment periods, Source: Empirical Research.
30
Figure-3, Comparison of annualised returns of P/B based value and glamour portfolios. This figure represents the annualised returns of P/B based value and glamour portfolios as well as their linear trend lines for different investment periods, Source: Empirical Research.
31
Figure-4, Comparison of annualised returns of P/E and P/B based value portfolios. This figure represents the annualised returns of P/E and P/B based value and glamour portfolios as well as their linear trend lines for different investment periods, Source: Empirical Research.
32
An Empirical Analysis of Women Participation in Farm Activities in Rural Kashmir

Bhat Arshad Hussain Post Graduate Department of Economics, University of Kashmir. Email bhatarshad09@gmail.com
Nengroo Aasif Hussain Post Graduate Department of Economics, University of Kashmir. Email asifnengroo.ku@gmail.com
W. Mohammad Yaseen Post Graduate Department of Economics, University of Kashmir. Email mohdyaseen7@gmail.com
Abstract The present paper analyses the participation of women in farm activities in Kashmir valley. Information has been collected from 200 households with the help of multi- stage sampling. Our analysis reveals that in Rice cultivation all the activities except weeding and ploughing is dominated by women in the sample area, likewise in maize all the activities are dominated by women. Only one activity in the sample area which is a joint venture is horticulture. It has been found that over load of work and extreme weather conditions affect the health of women workers as majority of them reported different types of ailments related to their work. Keywords: Women, Rice, Maize, Apple, Health, Farm activities. 1. Introduction
Women are a vital part of any society. Over the years, there is a gradual realization of the key role of women in agricultural development and their contribution in the field of agriculture, food security horticulture, processing nutrition, sericulture, fisheries and other ailed sectors. Comprising the majority of agricultural laborers, women have been putting in labour not only in terms of physical output but also in terms of quality and efficiency. Despite, all these strenuous efforts made by women, they are still not given their share and position in the society. There are various issues relating to women inferiority and complexes in the society, which need to be addressed in a proper way. This paper is devoted to highlight the participation of women in farm activities in rural areas.
33
The female participation rate in the agricultural labour force is highest in sub-Saharan Africa, Asia and the Caribbean and lowest in Latin America. Some 70 percent of women living in rural areas of the third world countries work on the land. Brazil shows that between 1970 and 1980 that total number of men economically active in agriculture fell, but the number of women increased and the female proportion of farm labour force rose from 9.6 percent to 12.7 percent. Similarly in Peru, the proportion of female population which was economically active in rural areas grew from 14 percent to 21 percent between 1971 to 1981. (Maithili 1994) In Kenya, as much of Africa, women are the primary cultivators; managers are co-managers of farm operations. Women are responsible to later stages of land preparation; they also plant, weed and harvest crops. Men, on the other hand, are responsible for early stages of land preparation such as clearing or burning bush, for plowing, and for cattle care. Yet despite womens extensive involvement in agriculture, Kenya shows the same tendency evident elsewhere in Africa. (Maithili 1994) The women are the backbone of agriculture work force, but worldwide her hard work has mostly been unpaid. In India around 70 percent of population earns their livelihood from agriculture (EIU, 1997). Rural population accounted for 71 percent (1991 census). In 1992 93 only 9.2 percent of the households were female headed (ESCAP, 1997). In the rural scenario, there is hardly any agricultural activity where women are not found contributing except probably plowing field. They have to do varied field operations like tilling, manuring, weeding, transplanting, harvesting, threshing, and storing. They also have to look after dairy animals, poultry, fuel needs, food processing, drawing and storing water activities within house are classified as housework and not considered as contribution to the economy and most of their work is invisible. The statistical data shows that poor the family, the more it depends on economic productivity of its women, which is true as per the present study as well. Women have key role to play in farming system throughout the world. In majority of the developing countries, women play too major roles in rural areas-household responsibilities for child rearing, food preparation and other chores; and other role they are paid or unpaid workers in agriculture of off the farm. Most of the areas in the world women are important to agriculture. Households headed by women make up 20-25 percent of rural households in developing countries, excluding china and Islamic countries. Women are active at every point in the food chain and are often responsible for protecting the integrity of food and ensuring its wholesomeness and safety. Women work remains invisible in family enterprises at present in rural India about 33 percent of cultivators and about 47 percent of agricultural labourers are women. Female agricultural labourers are high in some states compared to other. Agriculture in most backward districts attracts larger percentage of women than men at the same time; more prospective districts have less number of women than men. (Babita Agarwal 2008) It has been found that women from weaker sections of the society and possessing small or no land holding participate in large proportion in agricultural operations than women from middle class socio-economic status. They are actively involved in agricultural development and ailed fields including crops production (FAO, 1999).
34
The distribution of rural women by employment status (1992-93) indicates that 31.2 percent women works for someone else, 31.6 percent women work in their own family farm business units and 2.0 percent women are self-employed (national family health survey 1992-93). This could well, be read as almost 63 percent rural women are employed in agriculture and ailed sections. Thus this vast majority cannot be neglected at any cost. Over the years, percentage of women in agricultural labour has increased; in 1991 census women constituted 38 percent of agricultural labour and this figure jumped to 46 percent in 2001. Similarly women cultivators increased from 20 percent to 32 percent in the same period (M.S. Swaminathan Research Foundation) Another dimension of womens wellbeing is related to the unequal distribution of work and leisure according to gender. Women work longer hours than men and often carry a disproportionate share of the burden of coping with poverty. Usually women spent on an average 20 percent more than men in rural area and 6 percent in urban areas, because, of their reproductive roles, their responsibilities relating to rearing of children and serving the aged persons in the family, their greater responsibility for agricultural work in family owned farms and barriers to their entry in urban area markets (UNDP, 1995) Surviving through a normal life cycle is a resource poor womens greatest challenge the practice of breast feeding female children for shorter periods of time reflects the strong desire for sons. If women are particularly anxious to have a male child, they may deliberately try to become pregnant again as soon as possible after a female is born. Conversely, again women may consciously seek to avoid another pregnancy after the birth of male child in order to give maximum attention to the new born son. A primary way that parents discriminate the girl children is through neglect during illness. When sick, little girls are not taken to doctors as frequently as their brothers. 2. Farm women in third world India
Women are vital and productive workers in Indias economy. They make up 1/3 of the labour force. The five years plans have consistently placed special emphasis on providing minimum health facilities, integrated with family welfare nutrition and education for women and children. Various measures have been introduced to improve living conditions of women and to increase their excess to and control over material and social resources. An overwhelming presence of women is manifested in the unorganized sector, both in rural and urban areas. The national commission on self-employed women estimates that 94 percent of the total female work force is to be found in this sector (G.D.I. 1988). They participate extensively in agriculture, animal husbandry, dairying, social and agro-forestry fisheries, handicrafts, Khadi and village industries, handloom waving and sericulture. In agriculture their activities range from sowing to weeding, transplanting and harvesting. In agro forestry, they are engaged in the collection of minor forest produce and medicinal herbs as well as in afforestation programmes. Apart from this women have a great deal of involvement in handloom weaving and handicrafts and in a variety of Khadi & Village Industries. Rural area accommodates the majority of women work force and they work in large number in home based production and also under self-employment basis. Typically, they do work in small trades, making garments rolling bidis and in a plethora of other activities. Women also do work in innumerable number if hawkers, vendors
35
and domestic servants in both rural and urban segments of India. Available statistics also gives us the information that the percentage share of women in total labour force is 29 percent. Their share in agriculture 62 percent, in industry 11 percent and in semi-skilled sector it is 27 percent. (Tripathy 1996) The Indian work force participation rate is 37.7 percent. The rate for women is 22.7 percent, which is less than half the rate of 51.6 percent. The pattern of womens participation in the labour force varies across the country depends upon geographic region, cast, socio- economic lass and formal and informal sectors. The rural participation rate is 27.2 percent, nearly thrice as much as urban female participation rate of 9.7 percent. The percentage of labourers employed as main workers is higher among men than among women. In the case of marginal workers, this proportion is larger among women the majority of main workers (66.8 percent) are employed in agricultural and ailed industrial sectors. The proportion of women employed in this sector is 80.7 percent, compared to 62.7 percent for men. In rural areas 89.5 percent of the total females employed are engaged in agriculture and ailed sectors. (Census 2001) In a poor and developing country like India, the participation of women in the labour force is not only desirable, but also essential because it increases the level of food availability, nutrition, productivity and creates essential demands. Womens participation in the labour market also determines the structure of the household and the relationship within the family which are prime movers of the small family norms. It also results in the reduction in female fertility and improvement in the quality of lives. Thus, we can undoubtly say that womens participation in labour force seems to lead to multidimensional utilities relating to personal, economic social health and welfare sectors.
3. Participation of Women in Agriculture sector of Jammu and Kashmir.

Agriculture is the dominant and major sector in the state as well as in Kashmir and is considered the backbone of the state economy, in reality; however, it has been treated as a backbone without a spinal cord, because its position has been deplorable. From time immemorial rice has been the stable crop in Kashmir, grown throughout the valley of Kashmir and the staple food of indigenous population. Agriculture is the major contributor to the state domestic product; however, analysis of data reveals that the dependence on agriculture as a paramount occupation is continuously declining. Jammu and Kashmir State is predominantly an agrarian state; bulk of population is engaged in farming activities. Though the majority of population is engaged is farming but the production is still low due to low nutrient status of soil, poor and unassured irrigation facilities, imbalance in use of major synthetic fertilizers, lack of timely availability of major agricultural inputs, lack of timely and easily credit crop loan facilities and inadequate and unscientific storage facilities. Farming is an occupation of family as a whole and it is high time that we start realizing the importance of participation of women in this venture. If we take the example of a rural Kashmiri women engaged in farming and list out her contribution operation wise particularly for paddy crop it has been found that about 80-85 percent of the operations are conducted by women, either alone or along with men folk. The operations which merit a mention are seed-bed preparations, transplantation, weeding, harvesting, and to some extent application of fertilizers and insecticides, weedicides and fungicides along with men-folk and
36
threshing of grains. All does not end here and she continues to put in her bit in winnowing and bagging of threshed crop and its storage and after care in the home. Agriculture is the dominant occupation in the entire district of Pulwama and adjoining areas of Shopian, Budgam and Anantnag. District Pulwama is called The Rice Bowl of Kashmir followed by district Kulgam. In the district various crops are being cultivated but apple, maize and rice are the main and dominant ones. Apple and maize are cultivated mainly in the upper belts of the tehsil Pulwama and rice is cultivated in lower and plain belts of the tehsil. Therefore the present study has been conducted in two community development (C.D) blocks of the tehsil viz. Keller and Pulwama. Block Keller is famous for its apple and maize cultivation as the block is hilly in nature and the whole area is under the cultivation of fruits especially apple. Among cereals maize is produced at a large scale. The two villages- Qasbha Yaar and Kalampora which have been randomly selected for two crops are rich in quality as well as in productivity. The village, Tengpuna which has been selected for rice in block Pulwama has almost the whole agricultural land under the cultivation of rice and the people are mainly dependent on the agriculture. The soil in the village is somewhat marshy and is suitable for rice cultivation. The village is highly productive in terms of quantity and quality, as the villagers supply rice and fodder to the upper belts of the tehsil for their requirements. 4. Objectives
The specific objectives of the study are as under:
sex. 5.
To enquire into the participation of women in various farm activities in the sample area. To analyze the contribution of women labour in three major crops- rice, apple and maize. To study the ill-effects of work load on the health status of women as they are considered as weaker Methodology
In the present study multi-stage sampling technique has been used. At the first instance two blocks Keller and Pulwama of tehsil Pulwama were selected because of agrarian nature of the people of the tehsil and concentration of women workers in farm related activities. In the second stage 200 households from three villages which have higher concentration of women workers working in the fields have been selected randomly. Thus a sample of 100 respondents (50 male and 50 female) has been taken from the village Tengpuna of block Pulwama and 50 respondents (25 male and 25 female)from village Qasbha Yaar and 50 respondents (25 male and 25 female) from village Kalampora both from block keller has been selected. The respondents were interviewed as per the objectives of the study. 6. Discussion and Analysis
6.1 Activities performed in rice (paddy) cultivation
37
Generally in rural areas the majority of women are illiterate and women workforce is involved in agriculture and men are working outside home, same is the case with Pulwama district which is the base of the present study. The present paper analyses the women participation in three crops in tehsil Pulwama viz rice, maize and apple. The activities performed by respondents in rice cultivation are presented in table 1. Table 1: Activities performed in rice (paddy) cultivation S. No 01 02 03 04 05 06 07 08 09 10 Activity Male Ploughing Watering Field preparing Transplanting Weeding Harvesting Bounding of rice Threshing Transporting Storing of grains 0 24 18 17 57 15 23 6 19 51 (%) 0 24 18 17 57 15 23 6 19 51 Number of responses Female 0 21 18 83 6 22 10 15 81 59 (%) 0 21 18 83 6 22 10 15 81 59 Jointly 0 55 64 0 27 63 67 79 0 0 (%) 0 55 64 0 27 63 67 79 0 0 Total (%) 0 100 100 100 100 100 100 100 100 100
Source: Filed survey From the above it is clear that, ploughing an arduous task for men is done by tractors, meaning thereby that no responses in favour of any respondent. Watering of fields is other activity in rice cultivation and 24 percent respondents (men) say that they do lonely and 21 percent women respondents said that they do lonely and majority that is 55 percent respondents said that watering of fields is done jointly by men and women folk. Preparing of fields for planting seedlings is one more task and 64 percent respondents said that they do jointly this, while 18 percent men and 18 percent women respondents gave credit to themselves for preparing fields separately. Transplanting of seedling is done mainly by women as 83 percent responses comes in their favour, only 17 percent responses goes in favour of men (respondents). Weeding one of the difficult tasks in rice cultivation goes only in favour of male respondents as 57 percent respondents agree that weeding is done by men, 6 percent female respondents said that they do weeding themselves and 27 percent respondents gave joint responses, meaning thereby, women are not exempted even from weeding, a shabby and arduous task for women. After weeding comes harvesting of crop and women as 22 percent respondents do such an activity as well and only 15 percent male (men) respondents perform harvesting and 63 percent respondents, both men and women said that they harvest rice (Paddy) jointly. One more task in paddy cultivation is bounding of rice into sheaves and it is considered as males task, but in sampled area, 10 percent women respondents perform this activity as well and only 23 percent men respondents do this by their own and 67 percent that is majority of respondents accept that they perform this jointly, as they explained that, small stone cant stand alone as well as big stone cant also remain alone in the construction, both act as support to each other. After this comes threshing of grains and 15 percent women respondents
38
do this activity separately and 6 percent men respondents do threshing separately and 79 percent respondents perform threshing of rice jointly. After threshing, grains are transported to their suitable places (home) for storing. Women are considered as transporting agents as 81 percent women respondents, transport grains in bags on their heads and only 19 percent men respondents do help women respondents in transporting of grains. Lastly, grains are stored in grainry and this is also dominated by women respondents as 59 percent women respondents store grains as compared to men only 51 percent respondents do store grains. From, the above analysis it is clear that all the activities i.e. from watering to storing of grains in rice cultivation, except weeding are dominated by women respondents either, separately or working shoulder to shoulder with men respondents. 6.2 Activities performed in maize production. Maize is cultivated in hilly regions and is mostly rain fed. To know about women participation in maize cultivation, we take block Keller in consideration as this block is hilly and maize is cultivated in this block. Table 2 shows the participation rate of women in maize cultivation. Table 2: Activities performed in maize production. S. No Activity Male (%) Number of responses Female (%) Jointly (%) Total (%) 0 100 100 100 100
01 02 03 04 05
Sowing of seeds Digging plants Harvesting Threshing Storing under
12 9 5 2 7
24 18 10 4 14
16 40 45 41 43
32 80 90 82 86
22 1 0 7 0
44 2 0 14 0
Source: Field survey It is clear from table 2 there are numerous activities in maize cultivation as well and all these activities are dominated by women respondents. The table shows that 24 percent of male respondents sow alone seeds of maize as compared to this 32 percent women respondents do sow seeds of maize alone and 44 percent respondents sow jointly. Sowing of seeds is followed by digging under maize plant and 80 percent respondents (women) perform this activity alone, 18 percent men do this themselves alone and a mere 2 percent respondents do this activity jointly. After digging under plants, maize is harvested and 90 percent women respondents perform harvesting alone and 10 percent men respondents favour themselves. Threshing, one more activity in maize cultivation is performed by women folk as 82 percent respondents favour this and 4 percent men respondents favour themselves and 14 percent respondents perform threshing jointly. Lastly, storing of grains take place and 86 percent storing is done by women respondents as compared to 14 percent by men respondents.
39
6.3 Activities performed in apple cultivation Tehsil Pulwama is rich in apple varieties and many other fruits as well. Block Keller is having apple cultivation at its peak and this industry is the main source of livelihood in this region. Both men, women old or young and even children are associated with this industry. The historical tracing of womens status has revealed that women had higher status in horticultural societies than in agricultural and industrial societies and in the present study we came to the conclusion that the above fact seems to hold true as is clear from the table 3 Table 3 Activities performed in apple cultivation S. No 01 Activity Male Application of fertilizers and insecticides Plucking apples Packaging apples of of 11 (%) 22 Number of responses Female 3 (%) 6 Jointly 36 (%) 72 Total (%) 100
02 03
0 8
0 16
0 6
0 12
50 36
100 72
100 100
Source: Field survey Table 3 makes it clear that, in apple cultivation, both male and female respondents work jointly as this sector requires much time and more labour force. As is clear from the above table, 72 percent respondents apply fertilizers and insecticides to apple orchids jointly, 6 percent women respondents apply fertilizers and insecticides by them because of one reason or the other, despite women are aware of the danger to their unborn children of exposure to chemicals and only 22 percent men respondents do these activities by their own alone. Similarly, plucking of apples is one of the hectic tasks in apple cultivation and 100 percent respondents agree that they do perform such an activity jointly. In this task women pluck the apples from lower sides and also transport them to a safe place for further processing and packaging. Before packaging apples are kept either in boxes in big stalls or a heap is made and then grading takes place. After grading of apples in separate lots, packaging is done and from the above table we came to know about 72 percent work is done jointly and only 16 percent men respondents said that they do packaging alone and in the same way 12 percent women respondents gave credit to them alone. In packaging women respondents had two tasks to perform, one is to bring food for packagers at the work place that is orchids and second they act as helpers meaning that (women) they carry packed apples cases (boxes) to safer places and make stalls. 6.4 Effect of work on health of respondents After becoming aware about how much work load is on the women respondents in the sampled area, it becomes mandatory for us to know about the health standard and ill effects of work on both the respondents. There are many ailments associated with work, particularly women have been seen complaining that work load has deteriorated their health standards as they are being considered weak sex and they do not get time for maintaining their health. Table 4 highlights the ill effects of work on health
40
standards of respondents. Table 4: Effect of work on health of respondents S. No Health problem Male Percenta ge 31 6 4 Number of responses Female Percenta ge 60 3 19 Jointly/ Both 9 91 77 Percenta ge 9 91 77 Total (%) 100 100 100
01 02 03
Backache Vision problem Neck problem
31 6 4
60 3 19
Source: Field survey From the analysis of the table 4 it is clear that 60 percent of women respondents complaint of backache, as the majority of work they perform is done as bowing/bending on their back, which is a very serious matter of concern, compared to this only 31 percent male respondents have backache related to their work and 9 percent respondents (both) do not have backache like problem related to their work. Similarly, 6 percent male respondents have vision problem because of continuously looking/focusing towards their work and only 3 percent women respondents complaint of visionary defects because of work and 91 percent respondents (both) do not have vision problem related to their work. In the same way 19 percent women respondents do agree that they got neck problem due to carrying load on their head and only 4 percent men respondents have neck problem related to their work and 77 percent respondents (both) do agree that they do not have neck problem at all. From the above analysis it is quite evident, that agricultural work needs sufficient time and both men and women in particular work for whole day long and their health gets affected due to over load of work and extreme weather conditions do add to the miseries of workers. 6.5 Usage of spare time on women respondents The dedication and hard work of women folk does not end here, they devote their spare time in contributing the economic wellbeing of the household. The respondents were asked how they spend their spare time, they gave their responses which are depicted in the table 5 Table 5: Usage of spare time on women respondents S. No Activity Number of Responses Total percentage
01 02 03
Handicraft Knitting Watching TV
22 43 32
22 43 32
41
04 Any other Total Source: Field survey The above table reveals that 43 percent women respondents spend their leisure time in knitting sweaters, gloves, mufflers etc. for their husbands, in-laws and children, 32 percent respondents spend their leisure time in watching TV and other recreational activities similarly, 22 percent women respondents spend this time in handicraft activities in order to support their family financially and only 3 percent respondents do any other activity during leisure time such as reading books, stories etc. In addition to all these activities women respondents have one more task to perform at household during leisure time is taking care of cattle and poultry, which takes on an average 1 2 hours to each respondent (women). 7. Conclusion 3 100 3 100
In our society the women are considered as the caretaker of all domestic affairs and she is overburdened with the work at farm land. Women are having a busy schedule of work from morning till late in the night. It has become evident from the earlier analysis that the women in rural areas suffer from the problems of various kinds arising out of her familial and rural situation. We found that Women do much of the work either alone or with their family members in all the three activities. Our analysis shows that in rice cultivation all the activities i.e. from watering to storing of grains except weeding are dominated by women respondents either, separately or working shoulder to shoulder with men respondents. Similarly in maize cultivation all the activities except sowing of seeds are done by women folk. The historical tracing of womens status has revealed that women had higher status in horticultural societies than in agricultural and industrial societies and same is the case in our study. Bibliography Babita Agarwal (2008) Indian Women a Giant Power, Jaipur, ADB Publications, PP 66. E.S.C.A.P (1997) Women in India; A Country Profile, United Nations, New York. E.I.U (1997) India and Nepal: Country profile, The economist Intelligence Unit London. F.A.O. (1991) Womens Role in Dynamic Forest Based Small Scale Enterprises, case Studies on Uppage and Lacauerwar From India, Food & Agricultural Organization of the United Nations, Bangkok. Maithili Vishwanathan (1994) Women in Agriculture and Rural Development, Jaipur, Rapa offset press. Walter Lawrence (1988) the Valley of Kashmir, Chinar Publishing House, New Delhi. S.N. Tripathy (1996) Unorganized Women Labour In India, Discovery Publishing House, New Delhi, PP 44
42
Departmental Structure & Functions of Advertising Agency in Bangladesh
S.M. Sohel Ahmed Department of Marketing Northern College Bangladesh (Sister Concern of Northern University Bangladesh) Asad Gate Road, Mohammadpur, Dhaka-1207, Bangladesh. Cell: +88 01711053120 E-mail: smsohelahmed@gmail.com Alternative E-mail: smsohel_ahmed@yahoo.com Abstract Advertising is an expanding and important component in the context of any organization. It is a part of marketing strategy that an organization should apply in order to increase the consumer interest and thereby gain on market share. In Bangladesh advertising agencies are not well organized. Three advertising firms named Bitopy, East Asiatic and Interspan were established in 1967. Now the total numbers of advertising agencies are almost seven hundreds. Yet they are more competitive than previous. And new employment opportunity has been created & they have been performing in more professional manner. So it is important to know the structure of each department and functions of advertising agency. This study adopts with qualitative in nature. From the research, other researchers and policy makers will get an insight about the departmental structure and functions of advertising agencies in Bangladesh. Key Words: Departmental Structure, Advertising Agency, Client Service Department, Creative Department, Media Department. 1. Introduction The advertising agency may be referred to as a collection of specialized business brains. The functional organization of the agency is designed to facilitate the work of these specialists. It is vital, however, that the work of each person be directed toward one common goal the successful planning, development, and execution of the complete campaign (Sandage 1967). The main reasons outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields. An advertising agency staff may include artists, writers, media analysts, researchers, and others with specific skills, knowledge, and experience who can help market the clients products or services (Belch 2007). An advertising agency or ad agency is a service business dedicated to creating, planning, and handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is independent from the
43
client and provides an outside point of view to the effort of selling the clients products or services. An ad agency can also handle overall marketing and branding strategies and sales promotion for its clients (www.city-data.com) Typical ad agency clients include business and corporations, non-profit organizations and government agencies. Agencies may be hired to provide an advertising campaign (www.city-data.com). An outside agency can also provide an objective view point of the market and its business that is not subject to internal company policies, biases or other limitations. The agency can draw on the broad range of experience it has gained while working on a diverse set of marketing problems for various clients (Belch 2007). Developing and implementing an integrated marketing communication program is usually a complex and detailed process involving the efforts of many persons (Belch 2007). As consumers, we generally get little thought to the individuals or organizations that create the clever advertisements that capture our attention. But for those who involved in the marketing process, it is important to understand the nature of the ad agency and structure and functions. The advertising and promotions business is changing as marketers search for better ways to communicate with their customers. Every advertising agency must develop an organizational structure that will meet their clients need and serve their own internal requirements. Most medium and large agencies are structured under either a departmental or group system. Under the departmental system, each agency sets up a separate department and functions according to department. So the growing need of advertisement it is too important to understand the departmental structure and functions of each department, especially those who are involved in the marketing process. There were the days when most of the people didnt even know a bit about the advertising field, but with the pace of time, a huge change has been made in peoples thinking manner. Now a day, it seems as there is almost nothing that they dont gain knowledge about. There are numerous organizations that want to promote their business by hiring advertising agencies (Belch 2007). So, for the aforesaid reasons this research has been conducted on Departmental Structure and Functions of Advertising Agency in Bangladesh. 2. Objectives of the study The present paper seeks to highlight the structure of each department and functions of each department. The main objectives of this study are:
44
To detect the structure of each department of an advertising agency, To identify and assess the functions of advertising agency.
3. Methodology of the study According to the nature of the study and type of information required personal visit and interviews with the concerned executives was conducted. This study adopts with qualitative in nature. Besides primary information and secondary information was collected from the advertising firms and other sources. 4. Result Every agency has various types of departmental structure and they perform department wise. 4.1Client Service Department This department works with clients to identify the benefits a brand or product offers, to whom it should focus its message (the target audience), and the best competitive position. Then they develop the complete promotion plan. Client Service Providers learn about the target customer their wants, desire, fears and goals. After all this department acts as the clients representative at the agency. 4.2Media Department Media Department gathers information about peoples viewing or reading habits and combines it with information about media vehicles (such as specific magazines target audience, circulation size, and advertising space costs) in order to find the best placement for the advertising. They use their judgment to balance reaching the greatest number of people in the target group versus keeping the clients costs to a minimum. Media buyers purchase the advertising space and negotiate prices. They must be good with numbers but also skilled negotiators. They work with budgets and are responsible for spending their clients money wisely.
4.3 Creative Department The creative department generates the idea, images, and words of the advertisement. They develop the artistic strategy of the creative campaign, often presenting several concepts for the client to choose among. They do it based on the information of Client Service Department and Media Department. 4.4Script Department Script department is responsible for developing the words of the campaign; those are collected by creative department. 4.5 Graphics and Animation Department
45
After developing the words of the campaign staffs of this department select photos, choose the print size & type and oversee the actual printing, filming, or audio recording of the campaign. As such way a solid advertisement is produced. 4.6 Production Department Production Department makes sure work is done on time and on budget. 5. Findings Every agencies has various types of departments for instance Client Service Department, Creative Department, Media Department, Script Department, Graphics & Animation department, Production Department. Each Department has separate hierarchy & functions. Data were collected from primary and secondary sources. Method of data collection was personal interview. 5.1. Client service department Client service Director (1) Assistant Client Service Director (2/3) Client Service Supervisor (2/3) Client Service Officer (Few)
Client service department consists of one client service director, two or three assistant client service director, two or there client service supervisor and few clients service officers. Functions of Client Service Departments are to determine customer need, to collect data about the advertising company, to know the usefulness of the product, to find attractive side of the product, to know about the key competitors and their strengths & weaknesses, to monitor the total work as if the work is finished within the given time.
46
5.2. Media Department Media Director (1) Media Manager (1/2) Media Controller (1/2) Media Officers (Both for electronic & print media) In media department there are one media director, one or two media manager, one or two media controller, and media officers both for electronic and print media. Functions of the Media Department are to select the place of Billboard, to select spaces of print media, to select & purchase the time of electronic media, to find out the most effective medium for a specific product or service, to maintain good relationship with the print media & electronic media, to keep latest information about advertising market, to find ways how to produce the best advertisement, to do sourcing, to please the advertiser. 5.3. Creative Department Creative Director (1) Assistant Creative Director (1/2) Officers (2/3) Creative department has one creative director, one or two assistant creative director and two or three officers.
47
Functions of the Creative Department: This department generates new ideas for advertising, evaluates the script's attractiveness, to build strong and profitable relationship with the advertiser. Success of an advertisement depends on how effectively and efficiently creative department does its tasks.
5.4. Script Department: Script Director (1) Assistant Manager (1/2) Officers (2/3). Script department consists of one script director, one or two assistant manager, two or three officers. Functions of Script Department are to prepare script (script may varies according to the nature of customer and media), to prepare slogan, to produce jingle. This department is responsible for introducing customers taste, preferences and need within an advertisement.
5.5. Graphics & Animation Department: Art Director (1) Officers
48
Computer Operator
This department consists of one Art Director, few officers and computer operators. Functions: They perform various tasks like: Picture selection, Drawing Picture, Illustration, Layout, to determine size & length of advertisement, in a word this department make an advertisement presentable and easy to understand through graphics and animation.
5.6. Production Department Production Manager (1) Assistant Production Manager (1/2) Supervisor (few)
Production department consists of one production manager, one or two assistant production manager and few supervisors.
49
Functions: Functions of this department are to prepare marketing plan, to determine the advertising budget and to deliver the assignment to relevant person (advertiser). 6. Conclusion Name of the department varies from firm to firm. Few firms in our country consist of the above mentioned six departments. Some firms have client service, creative designing, copy writing, strategic, human resource department with accounts and administrative departments. As a result of the growing needs and the fierce competition of the market, the promotional activities of an organization need to be more focused towards segment to which the goods or services are produced. Advertising agencies perform several types of complex activities in corporate, business and social platforms. They do the challenging job with the help of various departments. And each department is committed about their job. Each advertisement firm ensures integrated marketing and total quality management through their work. As they know the main purpose of an advertisement is to inform, persuade and remind customer with generating new ideas as the market is competitive. From this research it is really clear that each department is equally important for accomplishing their tasks to obtain the desired goal that is clients satisfaction; and clients success depends on how efficiently and effectively an agency performs its work. Work Cited Belch, E. George, and Belch, A. Michael (2007), The Role of Ad Agencies and Other Marketing Communication Organizations, Advertising and Promotion, The McGraw-Hill companies, inc., pp. 66-99. http://www.city-data.com/fortune/business/319982-organizational-structure-advertising-agency. Html#ixzzOeyfb3n65. Sandage, C. H. (1967), Coordination of Complete Campaign, Advertising Theory and Practice, Richard D. Irwin, inc., p 637.
50
Comparison between the modern and Islamic concept of team building

Hafiz Muhammad Sufyan Khalid (Corresponding Author) Department of management sciences, The Islamia University of Bahawalpur, Punjab, Pakistan Mob: +92-300-8089899 Email: Sufyan.chaudary@gmail.com, Sufyan_chaudary@yahoo.com
Hafiz Muhammad Abdullah Shaiq Department of Management Sciences, Szabist Islamabad, Pakistan Mob: +92-334-7071759 Email: Shaiq_cresentsmile@hotmail.com
Abstract This paper tries to describe the different concepts of team building. It shows the Comparison between the modern and Islamic concepts of team building, function, norms and values and relationships among the team members and some differences. This paper also discusses the main issues and conflicts among the members of the group and organization. In the last section this paper describes the dissimilarities between the modern and Islamic function of the groups. Design/Methodology In this study I have analyzed and interpret the literature to discuss the Islamic and modern point of view about human team building. Findings This paper tries to conclude some comparisons between the Islamic and modern concept of team building Key words Team building, teams, work groups, organizations.
Introduction In this era when there are many changes happened in the market and also the competition among the organizations has increased. The changes are necessary in this regard. Teams are playing important role to face the different challenges of the current environment. It is well known saying that one is one and individual is considered to be eleven. When two or more people working at any task, they can get better results than an individual. Now the organizations are moving towards the concept of team building. Team is basically when people come from different backgrounds and work at a single task. All have different norms
51
and values and culture, so working together heaving different background is a difficult task. The leaders play an important role in this regard. To understand the working in the team first we have to know what team or team building is.
1. What is Team building? Team building is basically the phenomenon that people came from different places and work together for a single purpose or to achieve some goals. It is the process in which an organization joined some workers to fulfill any task. An organization is also a team and there can be teams in the organization. This phenomenon is called the team building between the team. It is also formed for improving the process of team (Heap, 1996). Nonaka and Takeuchi, (1995) cited in Castka, (2001) that individual is the basic element for knowledge interaction, while both are agree that with interaction of individuals in teams knowledge is spread through the organizations. Teamwork is the core element for this spread of knowledge. 2. Why and how to form teams? There are some reasons for building the team in organizations. These are listed below 1. Getting work done in a good manner
2.
Improving the communication
3.
Building the good relations among the team members
4.
Increasing the profit
5.
Motivating the members
6.
Improve the skills of the workers
Basically the purpose of the team building is to increase the abilities of the workers to work together in a group more effectively. Why we appoint assistant managers in the organization? The answer is simple that to manage the work more efficiently and more effectively (Rainey, 2009). Some teams are built officially by the leaders for completing any task or improving the work and some teams are built informally. Even in informal groups, members decide how to do work and how to resolve the conflicts.
52
3. Different types of team building There are different types of team building that are building for performing different tasks. Some of them build for improving the communication, some for completing the task effectively and some for achieving the goals. Some groups build for the benefits of the employees, and to resolve the different conflicts regarding workers issues. These types of team building are called the informal team. Examples of informal team building are the worker unions.
4. Who made and control the teams? Now the question is that who made and control the teams? This is based on the team that what type of team is. In official teams the upper level managers made the teams and the lower level managers control the teams. The duty of the manager is to control the team and motivate them and get work effectively. Manager will be the responsible person for everything done within the group. In some places there can be a facilitator that evaluates the teams performance. For controlling the team, manager should be more active then members. He knows that how to get work done from others. He must have the leadership abilities. Manager should know that how to motivate the employees and how to resolve any issue among the workers. Manager must have the ethical value and norms, because he or she has to deal with human beings.
5. Norms and values of the team Once the groups are form than the values and norms of the group also develop. Some researchers found the norms and values of the group that workers shared. Some psychologist found the problem in the group. Manager must have the leadership ability, because every person has its own thinking and the manager must know that what type of work is suitable for whom Rainey, (2009). When a person works in a group, his moral values grow up automatically. He teaches to collaborate with others and make relationships with others. His living standards will be high automatically.
6. Advantages and Disadvantages of team work Group work has advantage on individual. Work in a group is easier then as an individual, because when you work in a group then the chances of mistake is lesser than as an individual. Group has the ability of more talent, view points and ideas. As an individual you are one who has the all responsibility, but in a group the responsibility divided with others. Large group has the advantage on small group, because work is divided in more peoples Heap, (1996). Where there are advantages of group some disadvantages can also be found in the groups. The structure of the group also influence the group activities, like people come from different backgrounds and different place. They feel difficulty to interact with each other. Communication is a big issue in this regard. It is the era of globalization and in organizations people come from different place, the cultures are different from one another. In this regard the manager must consider that where, when and how groups can perform and in which conditions Gordon, (2002). All the pros and cones of the group are due to the skills of the manager. Manager can resolve many conflicts with his good communication skills. Team
53
work will not only promote the sense of friendship, norms and values but also transfers to all the customers and clients who do business with the organization. This shows the results that team building is truly amazing. Team building gives the less stress and greater enjoyment while completing the task at hand (Kleiner, H. Brian and Twomey, Karen, 1996).
7. Groupthink Groupthink is a process in which decision is made by all the members of the group, but the result is a poor and unchallenged decision. When all members of the group made the decisions than nobody can challenge it, either it is good or bad (Janis, 1971). Janis gave some suggestion to managers to avoid the groupthink. In these steps the manager can take the help from the members to avoid group thinking. 1. You must accept the criticism of your own actions
2.
Invite outsiders in the discussion
3.
Assign one work problem to many groups
4.
Break down the group into two sub-groups
5.
Take some time to review the threats to the decisions and to overcome the weaknesses
6.
In major decisions you must hold last chance, which members can made their reservations
8. Communication in the organization Graber, (2003); Pandey and Garnett, (2006) cited in Rainey, (2009) that Communication between the group plays an important role. If there is a good communication in the group than there will be less chances of conflict arising. Communication is a big source to avoid the conflicts and many problems in the group. There are two types of communication in the group. One is the horizontal and other is the vertical communication. Horizontal communication is among the members of the group and vertical/hierarchal communication is between the members and the leader or manager. The assessment of communication is very important in the group. In this regard you can assess the communication with the help of questionnaire. Managers have to rotate the questionnaire in the group to ask about the satisfaction, procedure, performance and environment in the group. After the response of the questions you can asses and audit the group performance and the level of communication. Other way to assess the communication is to track the message in the group and check that who communicate with whom and why.
54
8.1 Communication problems There are many problems in communication within the group and the organization. The main issue is to understand or to take it positively. The problem is that how you perceive the information. The communication is more difficult in bureaucratic or public organizations then in democratic organizations. In bureaucratic organizations there is a complex structure, and to communicate with your boss is a big issue for any employee.
8.2 Barriers in effective communication There are also some barriers in effective communication. First is that when receiver of the communication dont reply. When there is a lick of feed back in the communication. Second barrier is, the noise in the communication, when there is a interference in the communication. Third problem is the misuse of language and the last is the deficiencies in listening. There are some other barriers between the groups. When there is a problem of win-or-lose between the groups. When they use the threats, and when they exploit other groups benefits.
9. Conflicts and their types There are many types of conflicts in the group. Some conflicts are between the people, some are between groups and some others. Different types of conflicts occur differently. Conflicts can range horizontally between the managers or members and vertically between the managers and members. These are the main conflicts which occur between the higher level and lower level managers, for example the conflicts between the managers and labors (Rainey, 2009).
9.1 Basis of conflicts Basically the most of the conflicts occur due to the difference in culture, values, goal structures and tasks. It is because everyone has its different background. So to work together it is very difficult to understand others. In equality is another base of conflicts. When there is inequality in the group than there must be some conflicts. Power status is also a big source of conflicts. When you give the power to lower level employee to the higher, it will create conflicts. Not involving in decision making process is also creating conflicts. When you take decisions without involving all the members or without taking in confidence, it will create many problems in fulfilling that task. 9.2 Outcomes of conflicts There are many aggressive outcomes of conflicts which created the bad impact on the organizations. If you ignore the conflicts it will create many others. These types of conflicts create dissatisfaction, absenteeism, frustration, high turnover and poor performance among employees. If poorly managed the conflicts it will damage the organization. Managers have to face many difficulties in communication, to deal with peoples,
55
improving working process and to resolve conflicts while working in the organizations.
10. Islamic concept of team building Muslim state had unique history in the formation and evolution of groups in society. Muslims in various part of world consider as a part of inclusive group known as ummah. Ummah depicts as a community where equality of members and interaction among members is highly regarded. In the history of Islam, the basic reason of group formation was the necessity of building a team or group under adverse circumstance to cope up with situation. Muslims were divided into two social groups Al-mahajeerien and Ansar. Islamic teaching stresses on individuality and conformity at a same time. These two qualities contributed to the formation of groups and to interpret the role of individual and groups in Muslim societies Ali, (2005). The practices of pilgrimage and alms-giving emphasize on the importance of group. Personal responsibilities and ability to perform prayer individually affirms individualism. In the early period of Islam, Prophet Muhammad (PBUH) gave more emphasis on team work. For example the construction of Masjid-e-Nabvi, battles of Tabooq, Ohad and Bader. We are heaving many best examples of team work from the early period of Islam. After the victory of Madina there were many examples of team work. Unlike the Europe, Muslim societies did not develop tightly closed rank and classes. There was flexibility and class mobility in the society.
10.1 Team building from Quran and Hadith According to Quran Muslims have been forced to be united and dont be dispersed, as in groups they will remain powerful and save from the evil. (alimran: 102). This paper discusses many Ahadees and many remaining about team building. Many battles of the early Muslim history, like battle of Khandaq, construction of Kaabaa, and the process of puttind Hajr-e-Aswad. These all examples show the team work in Islam.
11. Types of groups Goitien, (1967) cited in Ali, (2005) said that In Islam professional occupation was not the only base of group formation. Goitien identified four factors which define the status and membership in group. These factors are origin of family, religiosity, business practices and generosity. He classified five groups among Muslim which are: upper class, businessmen, masters artisans, urban craftsmen and peasants. Imam Ali, as an administrator, defined several group of society: the soldiers, public and private secretaries, administrator of justices, social workers, tax collectors, craftsmen and poor. Both classification of society emphasize on the role of individual in society and profession. Political, social, religious and educational affiliations are the common basis of group formation.
56
12. Function of groups Major focus of the Muslim society is on personal relations. Relationship seems to be complex but communication and interaction makes it easier and remarkably simple. People came from different background in that network but not seem to be different. Even business transactions are conducted in the context of personal relations. Whether a person emphasis on business or humanity, it will not affect the business transaction. The relations and consequences are both focused in Islam. On who people are in relation to others, rather than where they are in set of life structure, and what consequences have befallen others by their acts Rosen, 2002 cited in Ali, 2005. There are two types of group; formal and informal which are shown below According to Gibson formal group are design deliberately but informal groups are evolved without any deliberate effort. In Muslim societies, formal groups can also be evolved as a result of dialogue. 12.1 Functions of informal group In Muslim societies, informal groups are common in organization. The existence of informal group shows the emphasis of Islamic society on personal relations. In organization, the existence of informal group both act as facilitator and obstacle. Some functions of informal groups are listed below:
It helps to reduce the fear and uncertainty of newcomers in organization. When he joins the existing group, he became familiarize with the norms and values of the organization. One can attain the sense of power by joining group. He can face the challenges easily as a member of group.
The informal group increases the socialization, self-respect and self-esteem of members. In Islamic setting socialization take much time but at the workplace it needs more concentration because it shows the sense of belongingness to the work group.
The informal group enables the member to understand the politics which is exercising in the organization. The membership in the group is open to every member whether they are from different backgrounds and ranks. This thing will generate a better understanding about the nature of politics in the organization and also sharpen their skills in dealing with others.
57
These types of group create awareness about job opportunities. In this case groups place an important role to communicate its members about existing work opportunities.
It strengthens the spirituality and commitment to the noble causes. The members of group discuss religious and political issue in free time and offer prayers together.
These groups are beneficiary for members but sometime it creates conflict in the organizations. Especially in the case when group think that organizational policies are not good for them. These groups are helpful in situations that are highly dependent and complex. 12.2 Functions of formal group Formal group are deliberately designed by management to accomplish complex task and to achieve organizational goals. Position or ranks in the organization is the basis of membership. Formal group can also be defined as hierarchal or task groups. Formal group give the impression that upper management is participative and it strengthen the formal and informal role of manager. Several functions of formal group are: When the operational activities and task are complex then formal group are designed to accomplish these task effectively. By the division of labor, organization facilitates the daily operations.
Formal group can also be formed to legitimize the decision or action taken by senior management. Management already taken the decision but they formed a group or committee to approve the action and check the validity of decision or action. This shows the manager consult the committee before taking decision and depicts the consultative environment of organization.
Formal group motivates the employees. Whenever new techniques introduce in the organization, group is formed to train employees. Group train them and share their responsibilities in the start. This gives the sense to the employee that he is valuable to the organization.
58
When new strategic decision implemented in the organization, it require support and acceptance of employee across the organization. So management designs the formal group of representative of various departments. This group motivates and influences the employees and makes them agree to implement decisions.
The activities of organization are closely monitored by political and social agencies. Senior manager form groups and committees to make decisions on the issue which are critical. In this way senior management shift its responsibilities and blame, in case of objections, to others.
Managers have to mobilize the members of group throughout the organization behind a new goal or mission especially when there is crisis in the organization or at a critical turning point. When the organization is at critical turning point, in other societies, member taken it impersonal but in the Muslim societies member takes it personally.
Management should include the dissatisfied employees in the prestigious group and involve them in the decision making process. This practice will help to reduce the dissatisfaction level among the employee. In Muslim societies, it is common practice to include the opponents in the group and then try to solve the conflicts by personal negotiations.
13. Factors affecting group effectiveness There are many factors which influence the group performance and organizational goals. These factors can easily affect the functioning of the group whether these are formal or informal group. The ideal no of group members are almost eight and you can improve that figure with the nature of task. Team performance is highest when the group members are limited for maximum interchange (Harris, R. Philip & Harris, G.Kevin,. 1996).
59
13.1 Socio-cultural factor In Islamic society, there are many assumptions regarding organization. The primary assumptions are (Ali, 2005). Employees are motivated by standardize and clear rules.
Employees should be treated equally with justices, kindness and mercy.
Organization has to fulfill the interest of society and work for the well being of community.
Formal group are controlled by the upper management and strict rules and regulation are followed to accomplish the assigned task. To maintain the effectiveness of group and to improve the performance of group, management should provide clear guidelines and directions to utilize the resources. Management align personal, organizational and societal goals and use organization as an instrument for society well being in long run.
13.2 Cultural factor The crucial determinant in understanding the group function is cultural factor. While addressing any problem, first develop a framework to get the core understanding of problem then plan to solve it step by step. Divide the major problem into interrelated sub-problems. Solve the one sub problem then move toward the next interrelated problem until reach to the solution of the whole problem. But in Islamic society this approach is consider as time and resources wastage.
14. Self-censorship In Muslim societies, there is tendency of strong personal relationship among members of group. So they do not criticize other on their mistakes and dont inform other their weakness. But in long term, this will adversely affect the performance of group.
60
15. Infatuation with ideal This is another factor which can affect the performance of group. This is common in Islamic societies, any deviation from ideal is considered as injustices, lack of morality and corruption. This feeling can motivate the members to take corrective step and to improve society. But in the adverse situation, it will cause frustration and dissatisfaction among members. This factor or conflict is not common in western societies. They are only concerned with reality and dont take ideal as an obsession.
Discussion and Conclusion Comparison between the modern and Islamic functions of team building There are some dis-similarities between modern and Islamic functions of tem building:
In western societies, group is considered as a mean of socialization among member of society but Islamic societies are built on the socialization.
Western and Muslim societies can be differentiated on the basis of leaders approach towards members. In Muslim societies, whenever conflicts and critical issues arises then managers appeals the member by personal relationships. He handled the member by emotions and friendship and influences them to move on. In contrast, in western societies, managers deal personal and business issues separately.
In Muslim societies, when crisis arises. Employees take it personally and put their all effort to resolve the issue. But in western societies, members take these issues impersonal.
61
In Muslim societies, individuals show their disapprovals by doing protest.
This paper tries to discuss the nature and types of groups in modern and Islamic societies. The primary functions of both the sides are similar. There are some functions which differentiated the modern and Islamic concept of team building. This paper helps to understand the team building and different issues of the teams in the organizations. The groups in the Muslim societies are placed at the centre of the social activities. Islam tells us the relationships among the people and also differentiates what is personal and what is business. There are some verses and Ahadees about the team work.
References: Ali, J. A., 2005. Islamic perspectives on management and organization. Norfolk: Edward Elgar publishing, inc. Castka,.P. et al, 2001. Factors affecting successful implementation of high performance teams. Team performance management. Volume (7). Pp.123-134. Heap. Nick., 1996 building the organizational team, Industrial and Commercial Training volume (28). pp. 3-7. Holton, J. A., 2001. Building trust and collaboration in a virtual team. Team performance management. Volume (7). pp. 36-47. R. Wayne Boss, 1991. Team Building in Health Care. Journal of Management Development. Volume (10). pp.38 - 44 Kelly, janet., 1996. Using the outdoor for team building. Management development review. Volume (9). Pp. 11-14. Naumani, s., 1985. seerat-u-nabi. Lahore: nizami press. Rainey, H. J., 2009. Understanding and managing public organizations. 4th Ed. John Wiley & sons, inc. San Francisco. Saeedi, G., 1995. shrah-e- muslim shareef. Lahore: fareed book staal.
62
Saeedi, G., 2007. Nimat-ul-Baari sharah Bukhiri. Lahore: fareed book staal. Kleiner, H. Brian & Twomey, Karen,. 1996. Teamwork: the essence of the successful organization. Team performance management. Volume (2). Harris, R. Philip & Harris, G. Kevin,. 1996. Managing effectively through teams. Team performance management. Volume (2). pp. 23-36.
63
Measuring Customer Satisfaction w.r.t Restaurant Industry in Bahawalpur

Hasnain Safdar Butt Department of Management Sciences The Islamia University of Bahawalpur E-mail: hasnainbutt@hotmail.com
Muhammad Murtaza Department of Management Sciences The Islamia University of Bahawalpur E-mail: relexman235@gmail.com
Abstract Purpose of the study The purpose of the study is to determine the factors that explain customer satisfaction in the restaurant industry in Bahawalpur. Methodology Structured questionnaire technique was used to determine the customer satisfaction. Data was gathered through snowball sampling and the model is tested. SPSS software analysis is used to determine the means and results are interpreted. Findings The average means of various restaurants in all five SERQUAL dimension suggested that which restaurant is more reliable, responsive, empathetic, assured and full of tangibles in the Bahawalpur Restaurant Industry. Limitations and Implications The research was conducted in particular geographical area. The findings help managers to invest their resources more efficiently, making changes to crucial quality attribute that elicit the customer satisfaction
64
level. Keywords: SERVQUAL Dimensions, Satisfaction, Quality, Price
1. Introduction The restaurants in Bahawalpur are not in a large number but there are few restaurants which provide a quality environment, food and services at reasonable price. People visit restaurants not on daily basis but occasionally. These restaurants are majorly used for family dinners, conferences and get together parties. Customer satisfaction should be the basic objective, while considering marketing in Bahawalpur. It depends on the perceived performance of product according to consumers prospects. The customer gets discontented, if the product performance fails to come up to the mark. If the consumers requirements are fulfilled, he gets satisfied and delighted. Why customers contentment is so important? Customer satisfaction is a secret of building lucrative relationship with consumers, growing them in number and reaping customers lifespan value. Satisfied customers buy a product again, talk constructive to others about it, and take less notice of the competing products. It is essential to satisfy customers due to a couple of reasons for instance, if the customers are not fully satisfied, they are definitely called in for recompense by the related authorities. (Oliver 1987; Nyer 1999). If the customer is not at all satisfied by the product, he might think bad of it abuse it. Service quality in the service setting is one of the major aspects of customer satisfaction. On the other hand for this issue, there is some disagreement, as whether customer satisfaction is a precursor of service quality. One of the ideas refers service quality as a comprehensive evaluation, regarding service category in a specific establishment (PZB 1988).In 1985, a research was conducted by Parasuraman, Ziethaml and Bitner, exemplified cases where respondents were, impressed to some extent but the service did not meet their expectations Because most events of customer satisfaction narrate a specific assessment of a service experiences, customers pleasure is analyzed as it relates to a particular transaction (Howard and Sheth 1969; Hunt 1979; Singh 1990). From this perspective, customer satisfaction is mere a minor aspect, its the service quality that counts most. Responsiveness of the service is major issue including staff being prompt, courteous, knowledgeable, and neat in appearance, helpful, attentive and customers needs should be understood. The main research question for this study is What drives customer satisfaction? , What are the factors affecting customer satisfaction? , What are the determinants, influencing customer satisfaction? or What explains customer satisfaction in the full service restaurant industry? In this research we have highlighted, the contributions of the service restaurant industry, which can be viewed as a mlange of service and product attributes. As a result, customers should take into account the food, quality, ambience, responsiveness, reliability, empathy, assurance and price, to be satisfied on the whole restaurant encounter. This study will be helpful for the restaurants owners and managers to stress more on continuously improving the quality of their service in order to satisfy their customers who in turn will help in customers loyalty and positive word of mouth.
65
2. Objective of the Study The objective of this study is to measure the customers satisfaction in full service restaurants in Bahawalpur.
3. Conceptual Framework Customer satisfaction: Everyone knows what satisfaction is, until asked to give a definition. Then, it seems, nobody knows. This is a quote of Richard L. Oliver, esteemed expert and long time writer and researcher on the topic of customer satisfaction, expresses the challenge of defining the most fundamental customers concept. From prior definitions, Oliver (1997) proposed his own formal definition: Satisfaction is the customer fulfillment response. It is a finding that a product or service malfunction, or the product or service itself, provides a pleasing level of utilization related fulfillment. It is normally observed that marketing practitioners anticipate customer satisfaction, by using slogans like Our focus is customer satisfaction or Customer is the king. Satisfaction is a persons feelings of delectation or despondence resulting from comparing a products apparent performance (or outcome) with respect to his or her expectation. Customer satisfaction in the marketing literature is time and again defined as a customers overall assessment of his or her purchase and consumption experience of a good or service. (Cronin and Taylor, 1992; Johnson et al 1995). According to Ziethaml and Bitner (2003), satisfaction is the customers evaluation of a product or services in terms of whether the product or service has met the customers requirements and expectation. Satisfaction occurs when the consumers expectations go beyond after using the product or services. According to Ziethaml and Bitner, there are two ways of viewing satisfaction: 1. 2. Services encounter satisfaction Overall satisfaction
Service encounter satisfaction: According to this satisfaction or dissatisfaction occurs with specific service encounters. Overall satisfaction: This kind of satisfaction is based on multiple encounters or experiences. In other words, a little satisfaction based on each service encounter directs to overall satisfaction. The customer forms an opinion about the quality of provided services, based on distinction between expectations and perceptions. Heskett suggested the concept of service profit chain, that sets up an association between profitability and growth as a result of customer loyalty and satisfaction, which in turn due to service provided by contented and productive workforce. According to transaction specific model, customers are likely to deem specific features of transaction for instance, product features (food quality, restaurant ambience), service features like (responsiveness of server) and price. According to QS9000 standard clause 4.1.6 which says:
66
"Trends in customer satisfaction and key indicators of customer dissatisfaction shall be acknowledged and supported by unbiased information. These trends shall be compared to those of contenders, or suitable benchmarks, and reviewed by superior management." The customer is always right. The suppliers should fulfill the demands of the customers and should keep in view their likes and dislikes. Customer Satisfaction is customers' awareness, that a supplier has met or surpassed the expectations. 3.1 Quality It is the way of supervising a business process, to guarantee absolute satisfaction at every level internally and externally. (Oakland 2000). According to Goetsch and Davis (1997) quality includes every aspect of your business and is in fact a touching experience for the consumer. Parasuraman et al. (1985, 1988) defined service quality is basically the overall assessment, which includes both, the firms performance and customer expectations. It can also be evaluated by the difference of perceptions and expectations. Service Quality = Perception - Expectation Service quality could be viewed, as the whole family picture album, while the customer satisfaction is just one snapshot. (Syed Saad Andaleeb, after studied the restaurant industry in USA.). The focus on service quality upgrading and enhancement is essential for a service providing firm to be competitive. (Stevens et al. 1995, Parasuraman et al. 1991). 3.2 Service Quality One of the most important features in the service world that drive customer satisfaction is service quality. High service quality results in higher customer satisfaction which consecutively results in high customer loyalty and eagerness to advice the first to other people (Bohon & Drew 1991; Boulding 1993; Rust, 1994). Undoubtedly service quality is a matter that has engaged academics leading to extensive debate over its conceptualization. The difference between customer expectations and perception is based on five basic dimensions of SERVQUAL (PZB 1985).
3.3 Dimensions of SERVQUAL 1Reliability. The ability to meet up the promised services accurately is generally defined as reliability. 2- Responsiveness. Responsiveness is eagerness to help customers with interest in order to satisfy the customers.
67
3- Assurance. The employees method including knowledge and courtesy in order to gain the customers trust. 4Empathy Empathy is defined as individual care and interest that a customer gets from the employees of the restaurant. 5- Tangibles. The tangibles include the appearance of physical amenities, equipment and written material. 3.4 External Quality Factors Customer satisfaction is also affected by some external service quality factors which are as follows, (Van Hsien Haung, 2008), 1. Safety and choice:
It means how secure a customer feels in terms of his dealing at the restaurant. 2. Organizational image:
It includes all the aspects of the restaurant such as environment, menu approach, waiters behaviour towards a customer. This would make a customer satisfied with the services offered at the restaurant to a greater extent. Service quality is counted more as compared to customer satisfaction. (Syed Saad Andaleeb).
3.5 Product Quality In a restaurant industry, the food and the physical dcor of restaurant are the products, so their quality should be in accordance with the name of restaurant. According to (Parasuraman 1988; Kivela 1999; Rajpoot 2002) following are the key factors which ensure synthesis of product quality. 1- Presentation: The food presentation is one of the most important features of the product quality. A well presented food item looks good to the eyes and to some extent, has ability to satisfy ones hunger.
68
2- Healthy option: Healthy option means offering nutritious and healthy food. Nowadays many people are important as one of the major factors of dining satisfaction. (Sulek and Hensley 2004). 3- Taste and Freshness: Taste is a key attribute in food. Tasty food has the ability to satisfy a persons hunger influences restaurant satisfaction and future behavior intentions. Freshness refers to food with crispiness, juiciness and its aroma. (Peneau et al. 2006). 4- Atmosphere Quality: The physical environment can create feelings of excitement, pleasure or relaxation atmospheric elements include space, design, color and music. Space creates a sense of coziness and intimacy. (Ching 1996), interior design of a restaurant may influence the customers stay in the restaurant (Wakefield & Blodgett 1996) and atmospheric design creates an impact on service satisfaction. (Andrus 1986), the physical design of a business, can also influence the degree of success consumers attain once inside. (Darley & Gilbert 1985). In other words, customers visit restaurants to pass and enjoy their time accompanied with delicious food and tension free environment. The better the physical design and appearance of the restaurant, the greater the level of satisfaction. Music also has positive effects and creates emotions and behaviors in service settings. (Dube et al. 1995; Mattila and Wirtz 2001; Milliman 1982, 1986). 5- Temperature: Temperature is related to taste, smell and sight of food, and it affects the evaluation of flavor of food (Delwiche 2004). 3.6 Price: Customer satisfaction is also effected by the price of the items present on the menu, because price is the factor that has the supremacy to attract or repel the customer. (Monroe 1989). According to Levis & Shoe maker (1997), Prices the means of exchange from which we get worth, that can be in the form of tangibles (goods), intangibles (service), price function is an indicator of quality. If prices are low, it may be a question on restaurants aptitude to deliver product and service quality. If price are high customers are likely to expect high quality. If the price is high than the customer expectation, customers satisfaction is adversely affected. health
conscious and are concerned about their health, so availability of nutritious food is becoming
69
Service Quality
Product Quality
Customer Satisfaction
Customer Loyalty
Price
Good service and food make customers satisfied but only good food makes then likely to return. Hence should management concentrate on making customers happy or making them loyal? Increasing loyalty and good that is better for profitability, high satisfaction and trustworthiness (Rust 1995). Prices vary according to the type of restaurant and if the price is high, the quality must also be high or sense of being deceived may not be encouraged. Many customers have perception of what a restaurant is likely to charge, and if the prices are higher than they expect, customer satisfaction is negatively affected. 4. Research Design and Methods 4.1 Methodology In this study the sample comprises of the customers of ten restaurants in Bahawalpur. Mostly restaurants in Bahawalpur are casual dining restaurant, which are situated along well known and famous routes of Bahawalpur City. The data for this study is collected from the customers to explain their dining experiences. We have also gathered some general information from our target restaurants in order to measure the customer satisfaction more effectively and efficiently. The restaurants are enlisted below with their particulars such as inception, sitting capacity, average customers in a day and number of employees.
Name of Restaurant
the
Year of Inception
Sitting Capacity
Avg. customers in a day
Number Employees
of
70
Four seasons Lataska Panda Tandoori Libra Taj Lataska village Luxury Bobbys Do piazza 1997 2005 1989 1999 2009 2007 2008 2000 2005 1993 200 275 125 250 200 230 300 350 70 325 70-80 90-100 150 200 120 150 100 70 40 60 50 70 40 25 30 50 25 20 15 35
The above mentioned information was gathered through valid and reliable sources, so there is no biasness as far as this data is concerned. A comprehensive questionnaire was developed after the thorough literature review. The questionnaire consists of three important factors in relation to customer satisfaction which are product quality, service quality and price. Whereas product and service quality were further dimensionalzed. The questionnaire inquired the respondents to evaluate their dining experiences by using the five point Likert Scale. Each scale item was attached at numerical 1 having verbal statement strongly disagree and the numerical 5 with the verbal statement strongly agree. Questionnaire also consisted of demographic questions in order to obtain the demographic profile of the respondents. A total of (200) questionnaire was floated by focusing, chain of references and covering all the demographic profiled respondents in order to lessen the biasness. 5. Analysis and Findings A total of 172 questionnaires were completed and it was found that a majority of respondents were willing to participate in the study. The sample had more males, 100(58.1%), and 72 females (41.9%). A significant difference between groups was identified by demographics like age, education and gender. The age group of 20-25 years forms a big part of our respondents with percentage of 47.1%. The major portion of occupation was students, teachers and bankers with a percentage of 44.2%, 15.7% and 12.8% respectively. The education level was classified in six categories among which Masters level with percentage of 55.25 and Bachelors levels with percentage of 31.4%, shared a large part of respondents. In this study we have used SERVQUAL as it is the available instrument to measure service quality from customers perspective. SERVQUAL is dimensionalized in further five service dimensions as: Reliability Responsiveness Assurance Empathy Tangibles
71
The questionnaire consisted of all the five dimensions of SERVQUAL as it is a valid tool to access whether or not the considered restaurants provided the service which a consumer desired. The questionnaire from this study is borrowed. The restaurants which were mentioned above are considered to be the top ten restaurants of Bahawalpur from which only the top five restaurants were selected for analysis an the bases of up to the mark services. The next part includes the calculated statistics and discussion on the basis of gender, incomes, lifestyle and SERVQUAL dimensions. 6. Discussion The questionnaires were completed and the data was gathered and entered in SPSS which helped in generating results. 6.1 Gender The results generated by applying the SPSS software for gender with respects to SERVQUAL dimensions includes the means, given in Table 1. Gender Male Female Reliability 3.415 3.457 Responsiveness 3.31 3.49 Assurance 3.42 3.65 Empathy 3.41 3.52 Tangibles 3.53 3.54
According to gender classification the calculated means for all the SERVQUAL dimensions provides a bird eye view that how males and females differently respond to these dimensions. As a whole females are more satisfied with the services of the restaurants in all five dimensions. 6.2 Income If we come to another demographic factor like income, the calculated means are as follows in Table 2: Income None Less 15000 15000 to 25000 25000 to 35000 35000 to 45000 45000 above than Reliability 2.94 2.93 3.39 Responsiveness 3.26 3.39 3.24 Assurance 3.60 3.58 3.32 Empathy 3.37 3.53 3.31 Tangibles 3.35 3.59 3.58
3.55
3.51
3.51
3.45
3.51
3.81
3.62
3.46
3.78
3.72
and
3.97
3.54
3.67
3.51
3.66
72
The results suggest that people having income ranging from Rs. 35000 to Rs. 450000 and Rs. 45000 and above, find the restaurants more reliable, responsive, assured, empathetic and have up to the mark tangibles.
6.3 Lifestyle Considering the people of Bahawalpur, we have estimated that they mostly and comfortably like to dine out firstly with friends and secondly with family, and their frequency to dine out depends on their mood, which in turn suggests that people are socialized and like changes, to hang out and enjoy quality food and time at the restaurants. Means with respect to SERVQUAL Dimensions of Restaurants Restaurants 4 seasons Lataska Panda Tandoori Libra Taj Reliability 3.55 3.48 3.46 3.34 3.54 3.29 Responsiveness 3.57 3.47 3.30 3.28 3.25 3.31 Assurance 3.67 3.33 3.38 3.58 3.59 3.39 Empathy 3.53 3.40 3.71 3.34 3.48 3.24 Tangibles 3.37 2.99 3.55 2.74 3.37 3.41
Table 3 given above, indicates that four seasons is more reliable than other restaurants with an average mean of 3.55, where as Libra comes second with average mean of 3.54 for reliability. As we move towards responsiveness, four seasons again has more average mean of 3.57 than other restaurants and Lataska stands second having average mean of 3.47, this shows that Four Seasons is good in providing responsive and receptive services than others, By analyzing further we come across assurance which is another dimension of SERVQUAL, tells that our respondents are assured and pledged by the services of Four Seasons and Libra with average means of 3.67 and 3.59 respectively. With respect to empathy dimension, Panda excels with an average mean of 3.71 and Four Seasons stands second with 3.53 as average mean. Now we come to the last but not the least SERVQUAL dimension, tangibles, here Panda comes first with average mean of 3.55 and Taj is at second place with average mean of 3.41. According to the respondents choice of restaurant, or in other words the restaurant which the most respondents like to visit to fulfil their desires in terms of food & environment, the data suggests is Four Season as it provides more variety in food, as price of food is in accordance with the food quality. But a lot of respondents do not agree with his statement. The restaurant owners and managers should focus on the major elements like service quality, product quality and price. The customer when makes the choice of a particular restaurant, he desires al kind of service and a positive behaviour. The customer also assesses the overall service of the restaurant as how the employees deal with customers, do they have enough knowledge about the product they are delivering.
73
Same is the case with prices of food in the restaurants as it is important for restaurants to assess competitive prices and customers reference prices for the targeted segment for their products. 7. Conclusion We summarize our main findings in the context of all the discussions and analysis. We conclude that satisfaction is at the heart of every restaurant service provider. These findings depict that the manager of restaurant should focus on internal service quality (to enhance internal communication and collaboration among employees) issues if they wish to improve service provided to customers. By above findings we have analyzed that Four Seasons is at the top by providing prompt services as a customer desired and a large part of customer are satisfied by its services. The result also suggests that the promised services willingness to help and competency are effective elements of service provide that creates high satisfaction in restaurants. The findings also conclude that managers of restaurant should have complete knowledge that the restaurant expect to provide for their customer. This also tells the restaurant managers to achieve a balance in their focus on three major factors of restaurant, product quality, service quality and price. Therefore the finding of this study can be extended and of value to restaurants by helping managers to understand the customer satisfaction. For a restaurant the key process are good service provisions as well as good food in order to make a customer satisfied. But only quality food enables the customer to return. As a result of which management should focus on establishing loyal relationships by providing good services and quality food in order to get better profitability. A quantitative assessment of service quality has potential benefits for restaurant customer. As part from the obvious enhancement of the dining experience which should result from identifying and improving service weaknesses. Therefore the use of SERVQUAL tool is not restricted by national borders or cultural differences but can have a global application. Nevertheless this study has contributed to this goal through an application of the SERVQUAL instrument to measure and compare service quality within one sector of the restaurant industry. 8. Limitations and Future Research There are many limitations of this study which are to be addressed. This study only focuses on a relatively smaller number of restaurants selected from geographic area of Bahawalpur city. So the generalization of the finding may not work. The results are also limited by the small sample size within specified
74
geographical area. Although it is not expected that findings would be significantly different, it would be worthwhile to expand this research throughout the country to improve the generalizability of results. The only limiting factor in the modification of the research tool is in restricting the ability to make comparison regarding quality across industries and cultures. Homogeneous part of all population exercised in regarding its conclusion as representative of all Bahawalpur top quality restaurants. The result of this study suggests that if it is useful to compare service quality of firms with the same industry sector. It will be interesting to investigate whether and how a firm can be benefited by marketing more than one product in an oligopolistic market. The second line of inquiry is the comparison between oligopolistic and monopolistic markets. Thus more studies on relationship between customer satisfaction and perception of quality are needed to cross validate the findings from different directions. Moreover more research can be done in order to determine other aspects of restaurants in industry by using the empirical means.
References
Ali and Seshadri 1993; Customer perception and competitive quality strategy. Anna S. Mattila 2003; The impact of service failures on customer loyalty, The moderating role of affective commitment.International Journal of Service Industry Management Vol. 15 No. 2, 2004 pp. 134-149.
Andaleeb and Conway 2006; Customer satisfaction in the restaurant industry, Journal of Services Marketing Volume 20 Number 1 2006 311.
Bojanic 2007; Customer profile of the carryout segment for restaurants, International Journal of Contemporary Hospitality Management Vol. 19 No. 1, 2007 pp. 21-31.
Bouranta, Chitris & Paravantis 2009; The relationship between internal and external service, International Journal of Contemporary Hospitality Management Vol. 21 No. 3, 2009 pp. 275-293.
75
Carton and Kleiner 1999; Discrimination in the restaurant industry. Clark and Wood 1998; Customer loyalty in the restaurant industry,International Journal of Contemporary Hospitality Management 10/4 [1998] 139144.
Danaher and Haddrell 1996; A comparison question scales used for measuring customer satisfaction.
Danaher and Mattsson 1998; Comparison of service delivery process of different complexity,International Journal of Service Industry Management, Vol. 9 No. 1, 1998, pp. 48-63.
Douglas and Connor 2003; Attitude to service quality, Nutrition and food science. Haung 2008; The impact of other customer failure on service satisfaction. Johns &Howard 1998; Customer expectation versus perceptions of service performance in restaurant industry, International Journal of Service Industry Management Vol. 9 No. 3, 1998, pp. 248-265,
Lee and Hing 1995; Measuring quality in restaurant operations: an application of the servqual instrument.
Longart Pedro 2008; What drives word of mouth in restaurants. Mack, Muller, Crotts and Broderick 2000; Perception and correction for service recovery in restaurant industry.
Namkung and Jang 2008 ; Are highly satisfied restaurant customers really different. A quality perception perspective.
Wisner and Corney 1997; An empirical study of customer comment card and design characteristic.
Winsted 2000; Service behaviours that lead to satisfied customers.
76
Historical Perspective and Evaluation of Advertising Firms in Bangladesh

S.M. Sohel Ahmed Department of Marketing Northern College Bangladesh (Sister Concern of Northern University Bangladesh) Asadgate Road, Mohammadpur,Dhaka-1207, Bangladesh. Cell: +88 01711053120 E-mail: smsohelahmed@gmail.com Alternative E-mail: smsohel_ahmed@yahoo.com
Abstract Advertising has become a part of the economic & social fabric of a nation. It provides information about the product, service, ideas etc. It influences the choices we make. A descriptive framework has been made in order to understand the history of advertising in Bangladesh, categories of advertisement, advertising prices of different mediums, major clients of advertisement in our country, and legal aspect of advertising in Bangladesh. This study adopts with qualitative in nature. This research enables researchers to understand the history, trends and influential aspect of an advertisement in our country. After all these research will unveil the overall trends and quality of advertisement in Bangladesh. Key Words Advertising History, Above Line category, Below Line Category, Advertising Agencies, Channels, Advertising Budget, Discount of Advertising, Advertising Tariff, Clients of Advertising Agency, Code of Advertising.
1. Introduction Advertising is non-personal communication of information, usually paid for and pervasive in nature, informing about product, services, ideas or experiences by identified sponsor through various media (Belch 2009). Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor (Kotler 1999). The advertising agency has evolved to provide the specialized knowledge, skills, and experience needed to produce to produce effective advertising campaign (Sandage 1967). The development of advertising agency can be divided roughly into four periods: Period of early growth
77
1841-65: The first advertising agency of record in the United States was Voleny B. Palmer. In 1841, Palmer organized a newspaper advertising and subscription agency. At this early date, there were no directories of newspapers and no published rates space to be sold to the advertiser. Wholesaling period 1865-80: The new competitive tool was supplied by George P. Rowell, who opened an agency in 1965. Throughout the wholesaling period, the agent continued as a seller of space for publishers. Semi service period 1880-1917: The wholesaling phase of agency work was checked when publishers began to establish their own sales departments for selling space. Some of these departments sold direct to the advertiser; others, to the general advertising agency. Early in the semi service period, agencies offered to write the copy for the advertiser, thus giving added weight to their claim of being servants of the advertiser. Service Period 1917-present: By 1917 the idea of service had grown until not only was copywriting done for the advertiser but many other things as well. During the service period, many agencies have grown to the position of advertising and marketing counselors for advertisers. Market research, media testing, merchandising service, lay out construction; art work, the supervision of engraving, etc. now constitute agency service (Sandage 1967). There was very little advertising practice in Bangladesh before independence (1971) due to inadequate industrialization and learning. Demands for specialized advertising agencies were very limited. Pioneers in the field such as Bitopi, East Asistic (now Asiatic), and Interspan entered the market almost in the year 1967. Other advertising companies started their business after independence. Now the total numbers of advertising firms are almost seven hundreds (Asiatic). 2. Objectives of the Study To find out the historical background of advertising agencies in Bangladesh; To find out trends and influential aspect of advertising agencies in Bangladesh;
3. Research Methodology This research is qualitative in nature. That is why this study required both primary and secondary information that has been collected from various advertising agencies, relevant persons, Ministry of Information, Ministry of Health and various Channels through interview.
4. Findings There is no formal way for tracking of advertising agencies in the country. According to formal media sources, a total of 150 agencies are registered with Bangladesh Television (BTV). However, maximum market share is hold by the top nine advertising agencies of the country. These agencies are Adcomm, Asiatic, Bitopi, Unitrend, Grey, Interspeed, Popular, Madonna and Matra. Other advertising agencies claim only a low share, while the rest is accrued to in-house advertisement of business firms and enterprises. There are various types of advertising agencies in Bangladesh. Advertisement media in Bangladesh can be classified in two categories based on the placement strategy Above the Line (ATL) category and Below
78
the Line (BTL) category. ATL includes newspapers, magazines, radio, television, and satellite & cable television. Placement strategies under BTL includes event management, in-house advertisement (company performing own advertisement) at point of purchase, outdoor advertisement (billboards, hoarding, neonsigns), innovative activities (jatra, streetdrama) and advertisement on vehicle bodies and fliers. The tariff structure of advertisement varies depending upon the type of media and the time or space used. A 30-seconds advertisement on Bangladesh Television is charged Tk.9, 450 at peak hours (7 PM till the end of days transmission) and the amount increases by surcharge (50 % for fixed time, 70 % for immediately before or after the news, 80 % for mid-breaks in films and 100 % for mid-break in news). Rates are almost half during transmission hours before 7 PM. The commercial time allowed to a sponsor in a 60-minute program is up to 180 seconds and the rate charged per episode or program is Tk.80,000 early time, Tk.1,00,000 for peak time. Bangladesh Television offers a discount of 25 % on advertisements of books and magazines not containing any advertisement and activities of registered cultural organizations. However, imposes an additional surcharge of 60 % on spot and sponsored advertisement for all products, which are produced or assembled outside the country. Rates charged by the Bangladesh Radio are much less: Tk.600 for each transmission of a 15-seconds advertisement from 1st to 51st time. Bangladesh Radio charges Tk.45, 000 for sponsorship of a cricket match and Tk.30, 000 for that of a football match (Bangladesh Betar). Private TV channels charges are more than above mentioned. Advertisement tariff for newspapers varies between Tk.400 and Tk.800 for per column inch in inside pages; it is about three times higher in back pages. The growth of advertising industry since 1967 demonstrates a direct relationship between the economic growth of the country and purchasing power. In our country economic growth of this industry is slow but rising. Informal advertising agencies are continually springing up in competition with formal ones. The clientele of advertising agencies primarily comprise of private national companies (PNCs), multinational companies (MNCs), and Non-Government Organizations (NGOs). The MNCs comprise maximum media share followed by the PNCs comprising. The major client of the print media is the government. The advertising business is governed by the competition prevailing in the market; products having high competition advertise more. Also consumer goods hold higher portion of the advertising budget. Also evident the industries having a very high local
79
demand depend on advertising. Export oriented companies having gradually started to use the expertise of the advertising industry especially in the area of brochure development. The legal aspect of advertising is controlled by the government through a requirement of the media to sign contracts with advertising agencies or the advertiser for all types of advertisement. The general terms and conditions of the contract are to conform to law and regulations relating to printing, publication and mass communication. The Ministry of Information is the primary controlling authority and may decide to change all or a part of terms and conditions of contracts with the advertising media. Advertisements related to drugs, cigarette and the like require prior permission of the Ministry of health. Also, the government has set an ethical code of conduct, although not adopted as a legal document, for advertising agencies and for the media. The code urges the agencies to refrain from advertising products like alcohol, cigarette, baby medicine, food and cereal, undergarments for both men and women, and contraceptives (except birth control pills). The media in general is expected to abide by social norms and moral value, refrain from direct attacks on any religion, person or organization, as well as from obscenity and vulgarism, and from using historical leaders and political leaders in advertisements.
5. Conclusion Advertising is the most difficult and challenging task of a firm. It is difficult to say that when and where advertising firms started their business in Bangladesh. Whatever Bitopy, East Asiatic, (Asiatic) started their business in 1967. Other firms entered into the market after independence (1971). Advertising firms in Bangladesh are not well organized. So it is hard to collect data from these firms. People of Bangladesh are well known to Above Line Category Advertisement (Newspapers, magazines, radios, televisions and satellite channels). Below Line Category advertisement is a new concept in Bangladesh. Few people are familiar with the concept of event management, in house advertising, at point of purchase etc. In Bangladesh price of advertisement depends on popularity of channels. Bangladesh government is the main client of print media on the contrary multinational companies bear advertisement than private national companies. Legal aspect is totally controlled by the Ministry of Information and Ministry of Health. Demand for advertisement has increased. In our country most of the advertisements are emotion based than
80
creative (GPs Adv). Maximum advertising companies pay more attention on product than the benefits and experiences are produced by the goods (Banglalinks Adv). Many advertising firms represent fake information in their advertisement (fair & lovely). In our country advertising is not pre and post tested by customers. They try to do link between product and advertisement. They forget that they should do link among publicity, product attributes, benefits, values, culture, personality, and customer. If we want to get retrieve from it, we need to acquire both theoretical and practical knowledge about it. If the students get modern lab facility from university then they will be able to produce effective advertisement. And this industry will be more attractive for career development. So each business faculty should introduce advertising laboratory for gathering practical knowledge. And that is expected to all of us. As it is a potential industry in Bangladesh. Works Cited: Belch, E. George and Belch, A Michael (2009), The Promotional Mix, Advertising and Promotion, 7th ed., the Macgraw- Hill Inc., pp.15-17 Kotler, Phlip and Armstrong, Gray (2004), Developing and Managing an Advertising Program, Marketing Management, (9th edition), Pearson Education Inc., p637 Sandage, C.H. (1939), The advertising Agency, Advertising Theory & Practice, (Seventh edition), Business Publication Inc., pp.625-647
81
Should Academic Institutions In Nigeria Use The 360-Degree Feedback System For Employee Appraisal?
John Egbeazien Oshodi Department of Psychology, Nasarawa State University
P.M.B 1022, Keffi Nasarawa State, Nigeria Tel: +234-81-26909839 E-mail: jos5390458@aol.com
Abstract
A performance appraisal system is significant to original work performance as it determines the success or failure of the institutions human asset. The aim of this article is to introduce the feedback appraisal procedure as a way to improve the competencies, skills, and behaviors of a single employee, staff, manager, or group of individuals. The advantages of the feedback performance appraisal system for public institutions like universities in Nigeria are given. The focus of the article is to introduce the use of a multi-metric staff appraisal in universities especially, and identify factors for realizing effective performance appraisal and management. In this paper it is argued that a performance appraisal system like the feedback is the only noticeable metric way by which an institution like a university can sensitively gauge, measure, and know the level of performance of its diverse staff. This paper seeks to bring to employees an awareness of a very unique type of performance management system that is based on psychological factors like personal development, self-motivation, constructive criticism, and wholistic feedback. This paper explains the need for human resource units and administrations to open up to an appraisal process that culturally aligns well with the diverse work environment of universities and other public institutions if they are to achieve the intended human resource benefits given in this paper.
Keywords: Performance, Appraisal, Staff, Lecturers, Universities, Psychological, 360, Nigeria.
1. Introduction
Okafor (2005) asserts that unlike many nations such as the USA, UK, and New Zealand, student feedback form an essential part of the management of human assets or resources in higher education institutions. Okafor reports that the Nigerian lecturers viewed students feedback as subjectively scary given the sometimes tense relationship between students and their instructors (Nakpodia, 2003; Yamoah, (2011). It is a historical alliance marked with interchangeable heated, distant, suspicious, or dishonest relationships. In general, a good number of Nigerian public institutions like universities continue to practice the 1960's staff appraisal system which usually utilize a from the top down approach. Under ordinary 82
European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.5, 2011 circumstances, a professional staff or lecturer receives an annual performance appraisal from his or her boss. A performance appraisal is generally the process of measuring, developing, and enhancing the work performance of staff (Akinyele, 2010). Within the university work environment, a staff member receives a written performance appraisal annually which provides a one-way opinion on performance and could be used for personnel and administrative purposes like promotion, demotion, pay raise, and even dismissal. A staff member is usually given an official form containing a self-assessment page for the staff or lecturer to complete, which is in turn sent to the respective division or departmental heads who state their view about the staff. The completed form then goes to the selection and promotions committee where it is reappraised and followed with recommended action. The performance appraisal approach (Nurse, 2005; Segal, 2000) is mechanical in formant as it contains specified behaviors and standards in a handbook that the staff member must follow in terms of actionable tasks. Some of the tasks include teaching, professional publications, and committee work. Performance appraisals have behavioral benefits like enhanced motivation in regards to acting as an incentive to become more efficient and effective in ones work as well as showing weaknesses that could be corrected through training. Within the Nigerian context, performance appraisal, especially for lecturers, could prove counterproductive as important resources to carry out adequate teaching, research, or publication, as well as community service, remain operationally nil. Specifically, these challenges include financial constraints and inadequate technology. Yet ones boss and the institutions authority use these same inconveniences as criteria for performance appraisal. The objectivity of the performance appraisal has been called into question (Nurse, 2005) as a result of the authoritarian and punitive pattern in its approach, as well other elements like favoritism-minded, and control driven process. The performance appraisal procedure is also known to be lacking longitudinal detains in terms of behavioral history as it is marked with first impression mistakes and it is criticism-focused and narrow in terms of collaborative assessment. In this paper academic institutions or public organizations are challenged to move away from the longstanding top down approach style of performance appraisal. Beginning in the 1980's, (Chaudron, 2010) the idea of doing away with an authoritarian style of employee evaluation was been replaced with strategy that honors an employees autonomy or empowerment in their course of receiving management feedback on his or her work. A process now known as performance management involves a procedure in which the boss, supervisor, or manager and employee establish initial goals and objectives, and make plans to achieve them. It is a management style that receives feedback from more than one source (Smither & Walker, 2004) and from those who knew the worker or instructor best, which could include students, subordinates, bosses, supervisors, peers, and themselves. The collective feedback from all the circle that knew the worker became termed as " feedback and the information was usually collected through numerical surveys and open-ended questionnaires. Performance feedback is a strategic way of measuring, evaluating, and influencing employee activities in the past, presently, and in the future (Mello, 2011). Specifically, the 360-feedback system is a process that involves an employee, a 83
European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.5, 2011 lecturer, or the manager receiving feedback about his or her competencies, activities, and performances. Mello (2010, p.439) stated that organizations need broader measures of employee performance to ensure performance deficiencies are addressed in a timely manner...employees behaviors are being channeled in the appropriate direction toward performance of objectives that are consisted with the work unitand employees are provided with appropriate and specific feedback.
2. 360 DEGREE ADVANTAGES The use of the feedback system serves important purposes and has advantages in a public setting like a university as it helps identify an employees weakness and strengths and helps facilitate appropriate development. It helps the employee or staff member understand how he or she is viewed by others; it enhances and improves communication following the identification of certain problems; and it helps determine appropriate rewards and compensations, in the form of promotions, wages, merit pay bonuses, and retention. It is particularly helpful for management as it helps identify specific training needed to correct an employees deficiencies and it is certainly helpful in raising an employees motivation. Contemporary performance evaluation methods like the 360-degree feedback system move away from the traditional way in which an employee is being assessed by one person (e.g., ones Head of Department or immediate Supervisor). It is simple to understand how the 360-degree feedback could be used as ones personal and developmental roadmap to plan ones career path. The fact that the 360-degree feedback system is all-encompassing, detailed, and focused, it allows the person being evaluated to chat an all-round corrective measure for him or herself. From the point of psychology this type of performance feedback could be highly intuitive, subjective, and open to personal bias or halo effect, whereby a rater lets one negative or positive characteristic of the person influence his total rating of the employee. However, with proper construction of the 360-degree feedback system its benefits remain profound. What is interesting about this feedback tool is that it is team oriented, involves a multi-rater (e.g., peers, students, secretaries, clerks, subordinates, managers, customers or clients, and oneself) approach, and involves feedback from anonymous persons. At the end of semester the Nigerian university instructors could find students evaluating their work or teaching (alone in the classroom) freely and anonymously commenting on their overall observation of the professor. While some of the comments could be very touching or even hurtful it makes one better as the feedback is coming from those who really know the person at the center of the evaluation (Tyson & Ward, 2004). It could result from peers or supervisors direct report and ones beneficiaries such as ones immediate students. This multi-level approach provides a complete reliable, richer, and open picture of feedback.
3. 360 DEREE LIMITATIONS
The 360-degree feedback does have some shortcomings as it could be time-consuming in terms of administration, and it could be costly as it requires addressing many characteristics of an employee. Some employees might view this system as a threatening evaluative tool as it could lead to personal attacks. The main problem comes when the 360-degree feedback system is not well designed and 84
European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.5, 2011 implemented, resulting in feelings of distrust and uncertainty between employees and among comanagers or heads of various departments. To limit some these noted worries an organization such a university could decide whose feedback to seek and management should understand that only raters whose ratings are beneficial and do not constitute personal bias or envy or have religious, punitive, or political motives would have a better, more positive outlook on the system. It is always good to include as many raters as possible as it broadens the scope of data and using anonymous raters could be a better source of valid, honest feedback (Chaudron, 2010).
4. OPERATING THE 360 DEGREE In terms of operation and designing a 360-degree feedback it should be inclusive in scope, easy to understand, and not too difficult for raters. It should be the type of appraisal that could be completed online in 20 to 25 minutes; consist of 20 to 25 behavioral items covering a broad range of instructional or leadership competencies; accommodate an unrestricted number of rater categories and up to 35 raters; contain academic grading of effectiveness (A to D); permit a "grade point" interpretation of every item and item cluster; allow for a global summary of essential strengths and key limitations; and permit allembracing, sketchy comments as they help provide added depth of understanding. As a powerful means (Rowson, 1998) for bosses and employees to get information on work performance the 360-degree feedbacks multiple-perspective and approach could help enhance self-awareness by revealing what supervisors, peers, subordinates, and customers see as an individual's strengths and development challenges. The 360-degree system helps employers avoid biases and discrimination (complaints of unfair treatment) especially when the feedback system is shared by multiple raters (Atkins & Wood, 2002; Carlson, 1998), thereby helping shifting all responsibility from one individual as in the performance appraisal system. The feedback system will need academic leaderships support in order for it to fully evidence excellent practices and results. It could gradually result in a more collegiate environment on campuses as well as sustained outcomes and well-defined changes in the university educational system in Nigeria. The longstanding, lamentable nature of Nigerian higher institutions in regard to student-instructors or administrators-lecturers relations could be reduced and help enhance the overall health of our universities. The feedback system could assist lecturers and other staff members to work beyond self-interest and focus more on matters of institutional interest.
5. Conclusion For the purpose of the future understanding of this system, lecturers will learn to apply their knowledge, skills, expertise, and experiences to help better their institutions. The system could slowly bring in a collective culture in academic leadership among lecturers and bring in meaningful, fundamental, and important progressive changes to higher education. The 360-degree feedback system is certainly expensive to manage as it requires the skills of a consultant to
85
develop and monitor the data but as a cutting-edge approach within the human resources management, universities should create a workable, collaborative, and cooperative spirit if the 360-degree feedback system is to be fully embraced in these periods of the 21st century educational system.
References Akinyele, S.T. (2010). Performance Appraisal Systems in Private Universities in Nigeria: A Study of Crawford University, Igbesa, Nigeria, Global Journal of Management and Business Research, 10(6), 1. Atkins, P., & Wood, R. (2002). Self-Versus others ratings as predictors of assessment center ratings: Validation evidence for feedback programs, Personnel Psychology, 55(2), 34, 871-907. Chaudron, D. (2010). 360 Feedback, Leadership, Management Style and Performance Improvement, http://www.organizedchange.com/Excite/360degreefeedback.htm. [accessed 3 Jun 2011]. Mello, J. A. (2011). Strategic human resource management, (3rd ed.). Mason, Ohio: South Western. Nurse, L. (2005, July). Performance appraisal, employee development and organizational justice: Exploring the linkages, The International Journal of Human Resource Management, 16(7), 1176 1194. Okafor, T. (2005). Conference on Trends in the Management of Human Resources in Higher Education: Performance Appraisal a chore or a cure A review of public sector approach, http//www.oecd.org/dataoecd [accessed 9 May 2011] Rowson, A. (1998). Using feedback instruments up, down, and around the world: Implications for global implementation and use of multi-rater feedback, International Journal of Selection and Assessment, 6(1), 45-48. Segal, J. (2000, October). Your Appraisal Process? HR Magazine, 45(10), 199. Business Source Premier Database, [online at http://search.epnet.com accessed 26 Jul 2007] Smither, J. & Walker, A. (2004). Are the characteristics of narrative comments related to improvement in multirater feedback ratings over time? Journal of Applied Psychology, 89(3), 575. Tyson, S. & Ward, P. (2004). The Use of Feedback Technique in the Evaluation of Management Development, Management Learning, 35(2), 205-223.
86
Balanced Scorecard for Superior Organizational Performance

Neeraj Kumari Assistant Professor (Humanities and Management), Manav Rachna International University, Sector -43, Faridabad, India. neerajnarwat@gmail.com
Abstract The capital you dont see on the Balance Sheet of an organization is in three forms: Human Capital (the collective skill, knowledge attitudes and behavior of the people in the organization), Information Capital (the resources and processes in place that ensure effective use of the human capital), and Organizational Capital (the values, working relationship and cultural norms at work in the organization). If you cant measure it. You cant manage it. -Kaplan & Norton A balance scorecard translates an organizations mission and strategy into set of performance measures that provide the framework for implementing its strategy. You must communicate strategy in operating terms if you expect people to execute on your strategy. The objective of the paper is to evaluate the effectiveness of using balance scorecard in order to improve the organizations performance. In collection of data both reactive and non reactive techniques were used. BSC is a conceptual framework for translating an organization's vision into a set of performance indicators distributed among four perspectives: Financial, Customer, Internal Business Processes, and Learning & Growth. The paper concludes that balanced scorecard is a productivity tool with multiple benefits. It is a strategic performance management tool for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy. It can be used as a Strategic Management System that will clarify and translate vision and strategy, communicate and link strategic objectives and measures, plan and set targets with aligning strategic initiatives, enhance strategic feedback and learning. Keywords: Appraisal, measurement measures, rectification, performance, quality, feedback, profitability.
1. Introduction A Balanced Scorecard is a framework that focuses on shareholder, customer, internal and learning requirements of a business in order to create a system of linked objectives, measures, targets and initiatives
87
which collectively describe the strategy of an organization and how that strategy can be achieved. It is a very important strategic management tool which helps an organization to not only measure the performance but also decide/manage the strategies which are needed to be adopted/ modified so that the long-term goals are achieved. The application of this tool ensures the consistency of vision and action which is the first step towards the development of a successful organization. Also, its proper implementation can ensure the development of competencies within an organization which will help it to develop a competitive advantage without which it cannot expect to outperform its rivals.
1.1 Balanced Scorecard Concept The long-term success of any organization is determined by the capabilities and the competencies it has developed. One of the tools for organizational appraisal that is gaining immense popularity is the Balanced Scorecard, developed by Robert S Kaplan and David P Norton in 1992. This innovative tool is unique in the following two ways compared to the traditional performance measurement tools: (i) It considers the financial indices as well the non-financial ones in determining the corporate performance level and (ii) It is not just a performance measurement tool but is also a performance management system. The aim of the Balanced Scorecard is to direct, help manage and change in support of the longer-term strategy in order to manage performance. The scorecard reflects what the company and the strategies are all about. It acts as a catalyst for bringing in the change element within the organization. This tool is a comprehensive framework which considers the following perspectives and tries to get answers to the following questions
1. Financial Perspective - How do we look at shareholders? 2. Customer Perspective - How should we appear to our customers? 3. Internal Business Processes Perspective - What must we excel at? 4. Learning and Growth Perspective - Can we continue to improve and create value?
The framework tries to bring a balance and linkage between the (a) Financial and the Non-Financial indicators, (b) Tangible and the Intangible measures, (c) Internal and the External aspects and (d) Leading and the Lagging indicators.
88
2. A balanced scorecard perspective on performance 2.1 The Balanced Scorecard Model An Explanation <Figure 1> To utilize the Balanced Scorecard as a strategic management tool, the following has to be done: 1. The major objectives are to be set for each of the perspectives. 2. Measures of performance are required to be identified under each of the objectives which would help the organization to realize the goals set under each of the perspectives. These would act as parameters to measure the progress towards the objectives. 3. The next important step is the setting of specific targets around each of the identified key areas which would act as a benchmark for performance appraisal. 4. The appropriate strategies and the action plans that are to be taken in the various activities should be decided so that it is clear as to how the organization has decided to pursue the pre-decided goals. Because of this reason, the Balanced Scorecard is often referred to as a blueprint of the company strategies.
<Figure 2> The Learning and Growth Perspective This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people -- the only repository of knowledge -- are the main resource. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode. <Table 1> The Business Process Perspective
This perspective refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission). These metrics have to be carefully designed by those who know these processes most intimately; with our unique missions these are not something that can be developed by outside consultants. <Table 2>
89
The Customer Perspective Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good. In developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups. <Table 3>
The Financial Perspective Kaplan and Norton do not disregard the traditional need for financial data. Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it. In fact, often there is more than enough handling and processing of financial data. With the implementation of a corporate database, it is hoped that more of the processing can be centralized and automated. But the point is that the current emphasis on financials leads to the "unbalanced" situation with regard to other perspectives. <Table 4>
There is perhaps a need to include additional financial-related data, such as risk assessment and cost-benefit data, in this category. An example will help the readers to understand it better. Some of the objectives together with a measurement measures are given below.
3. Utilizing the Balanced Scorecard as a Strategic Management tool <Figure 3> Translating the Vision
It is to be remembered that the vision of any organization should be understood by each and every employee of the organization. If it is understood by the top management only, then it is definite that the organization will fail to realize its goals. Hence, before starting with the strategic implementation process, the organizations needs to be clear about the reason for its existence, where it wants to see itself after a certain number of years and properly decide its business definition. The lofty statements must be translated into an integrated set of objectives and measures. Thus, by using this tool, the overall strategic objectives for the company gets clarified which helps to achieve consensus
90
across different business units on the overall strategic objectives for the company.
Communicating and Linking
Just communicating the vision and the strategies is not an end in itself. The strategic goals and the measures to be set in the different areas have to be decided upon. The long-term strategic goals have to be translated into both departmental and individual goals which should be aligned to each other in order to realize the long-term goals. In fact, each and everyone at different levels in the organizational hierarchy needs to be educated about the action plans and reasons for accepting the same. The tool contains three levels of information: (i) It describes the corporate objectives, measures and the targets (ii) It helps in deciding the business unit targets and (iii) It helps in framing the departmental and the individual objectives which will help in attaining the objectives of the business unit directly which would lead to the attainment of the corporate goals. The employees are given the freedom to decide their measures, objectives and the targets attainment of which would move the organization in the right strategic direction. Then the compensation level is linked to the performance level which in reality involves a lot of subjectivity.
Business Planning
This step helps in the resource allocation process. One has to keep in mind that objectives form an important criteria in deciding the quantum of resources that are required to be allocated to the various departments, activities and the processes. No strategy can bring successful results to an organization if the allocation is not in line with what is required to meet the results. This allocation is dependent on the budgeted estimates which are decided on the basis of the said objectives. Hence, through this step the Balanced Scorecard tries to bring about integration between strategic planning and the budgeting exercise. The short-term milestones are also needed to be figured out which in totality brings about a linkage between strategic goals and the budgets. This procedure helps in actualizing what has been set by the organization. Thus, this step brings about a shift from the thinking exercise to the doing stage and the organization tries to achieve the long-term goals through the short-term actions.
Feedback and Learning
The first three steps as mentioned above help in the strategic implementation process. But, for knowing whether the organization is in a position to achieve the strategic goals and whether it is in the right track, the process of feedback and learning is essential. The strategic learning consists of acquiring knowledge about which way the organization is moving to, testing whether the premises considered before hold true
91
even now and finally making adjustments wherever required. The corrective measures are required so that the necessary rectifications are made which will help an organization pursue the correct path.
4. Advantages of using the balanced scorecard This tool is being used by several organizations throughout the world because of its certain advantages which are cited below : It translates vision and strategy into action. It defines the strategic linkages to integrate performance across organizations. It communicates the objectives and measures to a business unit. It aligns the strategic initiatives in order to attain the long-term goals. It aligns everyone within an organization so that all employees understand how they support the strategy. It provides a basis for compensation for performance. The scorecard provides a feedback to the senior management if the strategy is working.
5. Indicators of a good balanced scorecard (i) Executive involvement- strategic decision makers must validate and own the strategy and related measures (ii) Cause and effect relationship- every objective selected should be part of a chain of cause and effect linkages that represent the strategy (iii) Balance between outcome and leading measures- there should be a balance of outcome measures and leading measures to facilitate anticipatory management (iv) Financial leakage- every objective can ultimately be related to financial results (v) Leakage of initiatives and measures- each initiative should be based on a gap between baseline and target 6. Balanced scorecard in action 6.1 Using BSC in library & information services function (LIS) at TCS
LIS function was started in 1970 in TCS. At present it has a network of 52 Libraries. It is solely involved in developing librarians as Business Domain Experts. Application of BSC in LIS 1) Users Perspective
92
Following are the objectives: 100% satisfied users (Demand Satisfaction) Increase the number of users (Demand creation) Thought satisfier (Proactive in understanding the needs of users) The LIS skills, operations, etc evolve with the users demand
Goals Vs Achievements Understanding the changing needs of the users associates satisfied with collection associates satisfied with Information Services satisfaction index overall Building confidence of the users in libraries compliance to SLAs response to users of their queries implementation of PIPs Converting non-users into users and converting partial users into active users motivate non user associates to use library services
Emerging Practices in LIS Conduct surveys at local, branch & corporate level Domain specific Information Services Keep track of best sellers acquisitions Extending working hours, library corners Track PIPs/SLAs quarterly Library Week, Screening of movies, book talks, book exhibitions / subscription drives Best user award, help in personal books purchase Knowledge sharing/ brainstorming sessions/Team meetings Feedback after every query based service
2) Financial Management Following are the objectives: Appropriate spending Value for Money Budget planning and allocation
93
Goals Vs Achievements Optimum utilization of budget on resources (collections) document usage within six months documents shared increase in document usage consumption of budget Reduce costs in areas exceeding users requirements document not repurchased/discontinued Optimum utilization of budgeted staff (1 Librarian for 600 staff) and, Job
rotation/Timesheet/Targets for staff
Emerging Practices in LIS Quarterly tracking of expenditure & savings Tracking of discounts/Indian editions on each heavy purchase Allocation of measurable goals & targets every six months to staff Star of the Month/other service awards/induction programmes/campus recruitments Resource utilization surveys Sharing of resources across branches/membership of good libraries
3) Internal Processes Following are the objectives: Best internal processes To deliver high quality services
Goals Vs Achievements Standard processes to handle all library activities, services, staff 2:1 collection minimum 100% compliances to library procedure manual & induction manual Compliance to TBEM, BSC, Dashboard, Annual Planner Save the time of librarians and users Service level agreement Processing time for new acquisition 24 hours Acquisition time for books available in market- 3 days
94
Process improvement two processes in a year Processing of suggestions/grievances 100% are communicated back & if possible action taken
Emerging Practices in LIS Quarterly audits Review of procedure manual at senior level once a year Centralized acquisitions, Integrated Information Services, control duplication of efforts of staff, library staff meetings Parameters defined for each library activity, quarterly tracking of SLAs Stretching of SLAs after achievement
4) Learning & Development Following are the objectives: Recruit, motivate and develop high quality library Staff
Goals Vs Achievements Support staff to meet the changing needs of users Mandatory ten days training for each staff Participating in PSU meetings Quarterly knowledge sharing and brain storming sessions Equal career growth opportunities to all staff members Track staff satisfaction index
Emerging Practices in LIS External/Internal/Classroom/Computer based training opportunities to all staff members Track gaps in competency, councilors availability, staff feedbacks in annual surveys
Best practice for one corporate library may not be a best practice for other corporate library. Every library should recognize their own best practices and further improve towards perfection. Continuous learning is the demand of the day for librarians. Libraries must align their services with the objectives of the parent organization.
95
6.2 Apple uses the scorecard as a device to plan long-term performance, not as a device to drive operating changes Apple Computer Adjusting Long-Term Performance Apple Computer developed a balanced scorecard to focus senior management on a strategy that would expand discussions beyond gross margin, return on equity, and market share. A small steering committee, intimately familiar with the deliberations and strategic thinking of Apple's Executive Management Team, chose to concentrate on measurement categories within each of the four perspectives and to select multiple measurements within each category. For the financial perspective, Apple emphasized shareholder value; for the customer perspective, market share and customer satisfaction; for the internal process perspective, core competencies; and, finally, for the innovation and improvement perspective, employee attitudes.
Apple's management stressed these categories in the following order: Customer Satisfaction: Historically, Apple had been a technology and product focused company that competed by designing better computers. Customer satisfaction metrics are just being introduced to orient employees toward becoming a customer-driven company. J.D. Power & Associates, a customer-survey company now works for the computer industry. However, because it recognized that its customer base was not homogeneous, Apple felt that it had to go beyond J.D. Power & Associates and develop its own independent surveys in order to track its key market segments around the world. Core Competencies: Company executives wanted employees to be highly focused on a few key competencies: for example, user friendly interfaces, powerful software architectures, and effective distribution systems. However, senior executives recognized that measuring performance along these competency dimensions could be difficult. As a result, the company is currently experimenting with obtaining quantitative measures of these hard-to measure competencies. Employee Commitment and Alignment: Apple conducts a comprehensive employee survey in each of its organizations every two years; surveys of randomly selected employees are performed more frequently. The surveys questions are concerned with how well employees understand the company's strategy as well as whether or not they are asked to deliver results that are consistent with that strategy. The results of the survey are displayed in terms of both the actual level of employee responses and the overall trend of responses. Market Share: Achieving a critical threshold of market share was important to senior management not only for the obvious sales growth benefits but also to attract and retain software developers to Apple platforms. Shareholder Value: Shareholder value is included as a performance indicator, even though this measure is a result-not a driver-of performance. The measure is included to offset the previous emphasis and focused
96
company, Apple has introduced measures that shift the emphasis toward customers on gross margin and sales growth, measures that ignored the investments required today to generate growth for tomorrow. In contrast, the shareholder value metric quantifies the impact of proposed investments for business creation and development.
7. Conclusion Organizations seeking to implement a Balanced Scorecard are striving to become a strategy focused organization. Strategy focused organizations exploit the Balanced Scorecard and technology to become more agile. These organizations attain incremental returns on their customers, processes, employees, and technologies. Organizations must develop the scorecard to fit their needs. Major challenges occur when developing measures, simplifying the process, handling resistance to change, building in flexibility, communicating organizational weaknesses, gathering data, adapting technology to the process and benchmarking. Considerable time and expense is customarily invested to maintain top management support, keep the scorecard current, and train staff and to maintain a positive organizational culture.
8. References Cherunilam, Francis (2003), Strategic Management, Himalaya Publishing House, Delhi, Fourth Edition, pp.1-5. Hunger, J. David and Wheelen, Thomas L.(1999), Strategic Management and Business Policy, Pearson Education Asia, Prentice Hall, Eighth Edition, pp. 250-251. Kaplan, Robert S. and Norton, David P. (1998) Putting the Balanced Scorecard to Work, Harvard Business Review on Measuring Corporate Performance, p. 179. Kaplan, Robert S. and Norton, David P. (1998) The Balanced Scorecard Measures That Drive Performance, Harvard Business Review on Measuring Corporate Performance, pp. 123-141. Kaplan, Robert S. and Norton, David P.(1998) Using the Balanced Scorecard as a Strategic Management System, Harvard Business Review on Measuring Corporate Performance, pp. 184-189. Martin, Rick and Arthur Schneiderman. (1999) American Productivity and Quality Center, GTE: Measure What Matters: Aligning Performance Measures with Business Strategy.
Figures and Tables:
97
How do we look to shareholders?
Objective Measures Targets Initiatives
FINANCIAL
How do our customers see us?
Vision and Strategy
What must we excel at?
Can we continue to improve and create value?
Figure 1: The Balanced Scorecard Model Source: www.balancedscorecard.org, Balanced Scorecard Institute, USA
LEARNING and GROWTH
98
CUSTOMER
INTERNAL BUSINESS PROCESS
M ission
Financial Sub-Goals C ustom er Sub-Goals Internal Business Sub-G oals Learning & G row th Sub-G oals
Clarify m Vision sta
Deve Strategic
Figure 2: Methodology overview; balanced scorecard
Sub-G oals
Deriv Sub-G o
M ap SubG oa each quadra Clarifyin Balanced Sc Translati

Vision &
Figure 3: BSC as a strategic management tool
For
99
Clarifyi each B Gaining
FINANCIAL PE
Table 1: Financial perspective
Objective Financial Perspective

Table 2: Customer perspective
Measures Operating income From Productivity Customer Gain
Ma Pe An Ca
100
Objective
Operating Income Measures
Bu
INTERNAL BUSINESS PR Objective Reduce Delivery Time Measures
Reduce Setup time

Automation of Orders
Table 3: Internal business process perspective
Meet Specified Delivery dates on time delivery
Improve post Sales Services
Service Response Time
Improve Processes
101
Number of Impv. In Business Processes
Learning and Growth P Objective Measures
Table 4: Learning and growth perspective
Align Employee Employee SatisfacAnd tion Rating Organizational Goals
Develop Process Skill
% Employees Trained in Process & Quality Mgt
Empower Work
102
% Workers Empowered to

The WholeIISTE-call For Paper WWW - Iiste.org/journals

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

The WholeIISTE-call For Paper WWW - Iiste.org/journals

Загружено:

Авторское право:

Доступные форматы

European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.

2. State Food and Drug Administration, Beijing 100810ChinaE-mail: afd20081@163.com

Attrition in SMEs: The Cause

Table 1: Demographic profiling of the Respondents

18% 36% 14% 9%

Extraction Method: Principal Component Analysis. Table 3: Factor Analysis Output

Unstandardized Coefficients B Std. Error 1.000 .000

Standardized Coefficients Beta

0.007 .254 0.062

a. Dependent Variable Motivation level Table 4: The regression output

Dependent Variable: motivation level Table 5: Dependent Variable: motivation level

Price-Earnings and Price-to-Book Benchmark Techniques as Predictors of Equity Returns in India

2. Relevance of the study:

The study is centred on the following research objectives;

) and the last ten equities with highest

return spread and

) earned more than the P/E based Value

and glamour portfolio

as well as their linear trends

period mean annualised return of value portfolio

is 480.94%, which is almost six times of the all period

and glamour portfolio

as well as their linear

). The all period mean annualised return of value portfolio

is 834.17%, which is more than

8. Value portfolio P/E - value portfolio P/B return spread:

. The all period mean annualised return of value

and value portfolio

earn greater annualised returns during longer

Annualised returns of P/B based portfolios Value portfolio

P/E based valueglamour spread

Glamour portfolio P/B

P/B based valueglamour spread

(B) 49.56 59.19 72.75 94.86 140.11 83.29

(A-B) 211.20 122.40 348.37 568.05 738.20 397.65

(P) 306.92 246.92 622.48 1144.33 1850.21 834.17

(Q) 14.69 18.66 27.84 27.7 31.38 24.05

(P-Q) 292.23 228.26 594.64 1116.63 1818.83 810.12

An Empirical Analysis of Women Participation in Farm Activities in Rural Kashmir

3. Participation of Women in Agriculture sector of Jammu and Kashmir.

The specific objectives of the study are as under:

6.1 Activities performed in rice (paddy) cultivation

Sowing of seeds Digging plants Harvesting Threshing Storing under

Backache Vision problem Neck problem

Handicraft Knitting Watching TV

Departmental Structure & Functions of Advertising Agency in Bangladesh

5.5. Graphics & Animation Department: Art Director (1) Officers

Comparison between the modern and Islamic concept of team building

Improving the communication

Building the good relations among the team members

Increasing the profit

Motivating the members

Improve the skills of the workers

Invite outsiders in the discussion

Assign one work problem to many groups

Break down the group into two sub-groups

Employees should be treated equally with justices, kindness and mercy.

Measuring Customer Satisfaction w.r.t Restaurant Industry in Bahawalpur

Avg. customers in a day

Winsted 2000; Service behaviours that lead to satisfied customers.

Historical Perspective and Evaluation of Advertising Firms in Bangladesh

3. 360 DEREE LIMITATIONS

Balanced Scorecard for Superior Organizational Performance