Thinking Made Easy

How managers and supervisors interact with employees in a creative environment

How managers and supervisors interact with employees in a creative environment

One of the best ways that managers can increase the level of motivation among subordinates is to be effective leaders. Leadership can be defined as a process of influence in which the leader is able to get the follower to stay on a prescribed path toward the attainment of specific goals that are desired by the leader. Thus, by definition the art of leadership is an important part of effective management.  The art of leadership may be inherent within the individual. If leadership can be acquired through education and training it may be the most difficult thing to learn (Shell, 2003). Managers in the professional environment are likely to have specialized training and are often preoccupied with the technical or scientific aspects of subordinate jobs. Consequently, they may pay little attention to the development and application of leadership skills (Shell, 2003). When overall organizational success is related to leadership qualities, it is clear that effective leadership can and does make a difference Leadership qualities assume great importance in the professional work environment because professionals are highly sensitive to how they are managed (Shell, 2003).

 

 A categorization of leadership types can be established relating to the institutional settings within which leadership is exercised and which allow or prevent feasible leadership action. Leadership styles by contrast can be categorized according to the actual behavior of leaders faced by particular situations. The leadership component is not much easier to identify. Traditional organizational culture is sometimes expressed in terms such as risk aversion, inertia, hierarchy and sometimes political clienteles (Haus, Heinelt & Stewart, 2004). Leadership styles associated with this kind of political culture are far removed from the values and expectations which might be linked to an effective complementarily between leadership and community involvement. A range of leadership styles may therefore be appropriate for joint working dependent on the personal characteristics evident in the leaders reflecting the degree of charisma, commitment, persuasion, ambition etc. which rest within any individual (2004). For different kinds of situation in the workplace environment, managers and supervisors use different strategies. In managing and supervising a creative environment, managers and supervisors can still use the leadership style they wish to use but they should maintain their discipline and they need to have higher rates of sensitivity since creative people tend to be more sensitive than others. The managers and supervisors of creative environments need to have high sense of discipline so that they can keep up with the demands of the employees working in a creative environment. The managers and supervisors of creative environments need to be aware of every need of the personnel in the creative environment.  The creative personnel have more needs than other personnel thus the manager and supervisor must be always ready to satisfy this needs.  Managers and supervisors must know their boundaries and limitations of dealing with personnel on a creative environment. The creative personnel sets a wider range of limitations and has the tendency to require more personal space, the managers and supervisors need to recognize the personal space demanded by the personnel.

How are employees rewarded and recognized for innovation

Venturing into new management territory can be daunting. The old haunts are familiar and comfortable  and, besides, they've worked fine for generations despite short-term thinking, turf wars, and fear of conflict just to name a few of the most obvious drawbacks. But the problem is that the old haunts are also limiting (1999). Remaining huddled inside them limits access to new realms of growth and value and does nothing to cope with the whole new set of circumstances facing business today. As the economy shifts from a product-based system to knowledge-based one, managers need ways to manage their investments in intangible assets that drive innovation. Keeping intellectual property or any kind of secret secure in this era of the Internet, high staff mobility, and open communication has become very difficult. And maintaining the loyalty of smart employees is a problem of major proportions ( 1999).

 

The innovation premium is about working smarter rather than simply working harder. Companies must become faster and more versatile. Companies do not need to dramatically restructure their company's entire strategy, reorganize all their resources, or completely change their processes and organizational structure. What should be done is to find ways to alter the business' approach and overlay new management practices that can create and capture more value from innovation (1999). Being creative is such a natural part of being human that we can view creativity much the way we view language; no human cultures, no matter how isolated, have ever been found that do not use language. The same may be said of creativity. Of course, some cultures may boast more extensive technological, scientific, literary, or artistic accomplishments, but this depends on the relative value societies place on innovation, not differences in the basic mental processes of which people are capable (Finke, Smith & Ward, 1995).

 

 Capitalizing on the techniques of creative cognition can help. It's no secret that business today is ruthlessly competitive. Corporate executives find themselves navigating a harsh landscape in which a single misstep, a slight misreading of their guiding compass, can spell disaster. At the same time, a successful journey, a mapping out of a new market, can secure extravagant monetary rewards, and bring immense personal satisfaction corporations must find creative new ways to quickly manufacture products, and more generally, to run their entire organizations (Finke, Smith & Ward, 1995). Innovation is important for business because it will help them increase their lead over rivals in the market. Innovation helps a company make moves that will affect the firm’s future. Innovation also helps the company to determine the future path of a department or the organization as a whole.  In all organizations a characteristic that an employee must have is innovation.  A company usually checks or asks for signs that will show them that a certain employee has implemented innovations in a product or a service.  Innovation in employees are recognized and rewarded through bonuses, public appreciation or other complementary gestures.

How administrative procedures must be changed to facilitate a creative environment

The process of strategic management involves the systematic examination of a number of interrelated elements, which results in an explicit statement of company objectives and how they are to be achieved (2002). In changing administrative procedures strategic management is used so that the changes would be done in an organized and acceptable way.  The administrative procedures should meet the demands set by the employees in a creative environment. The administrative procedures should be realigned with the characteristic of every personnel. Certain administrative procedures that deem too offensive or too insensitive should be replaced so that issues with the employees in a creative environment will be minimized.  In relation to dealing with employees in a creative environment, the article on better living through will be discussed. 

Better living through culture

Organizational culture helps in aligning the values and norms of the employees to the values and norms of the organization.  There should only be one dominant organizational culture for the company, having more than one culture can lead to arguments and fights even if there is already a strong structure.  The article talks about how culture has become one of the most important considerations in making sure that a firm maintains its focus and for a firm to have a good long term financial performance. The article discusses about how culture is seen as something that will become a much important consideration in determining corporate success or failure. For this reasons the culture of the firm should be always healthy and unique so that the company can work well in its industry. If a company has a culture that puts emphasis on creativity, the firm and its managers must know how to maintain that culture and not try to change it in their own idea of corporate culture.

 

Review of the culture of Hallmark

 Hallmark is one greeting card company that aims to connect people with each other through greeting cards that artistically voice out their messages. Hallmark have employees that care, have creativity, know about quality and innovation, v and makes use of the proper values that guided them in their daily activities.  Their culture is embedded in creativity, innovation, quality and caring. These characteristics guide the company in making decisions for the future of the firm and these characteristics helped the company to be trusted by their client base.    The characteristics of Hallmark’s culture are the ones that helped and will continue to assist the company in achieving their goals.  All companies need to be creative, innovative, have high sense of quality and must know how to care for their clients. No client would want to transact business with a company that has a weak customer service. No client would want to buy products that are just recycled from older products. The culture of Hallmark should be followed by all companies, one thing is missing though and that is good employee relations.  Good employee relations should always be an important part of a culture of a firm because the employees and the management need to have a good understanding and they need to work together to achieve overall goals.

The Exquisite arrangement of fruits,flower and objects can seduce her viewer with her inherent grace and tichnical virtuosity

Margaret Olley and Her Works of Arts

Margaret Olley is considered to be one of the most prized still and interior painters in Australia and born in Lismore in 1923. The exquisite arrangement of fruits, flower, and objects can seduce her viewer with her inherent grace and technical virtuosity. Her subject is her own home which is elegant. Her painting are also casually appended because it is not difficult to image just like the his famous figs and glassware who’s subjects are simply the fig fruit and the glassware which can easily be recognized and considered to be her still life elements. Her other set of common subjects in her other arts is table covered with tangerines and gourds, a Turkish pot, jars, and flowers, as well as raspberries (Eva Breuer Art Dealer, 2008).

            Olley is sensible and unique for conveying lights and colors that serves as medium for painting. It has also the tone in consummating skill that can draw from the understanding of the European painting’s long tradition. Besides, its placement of the objects within the composition had been done by with the aide of the exquisite eye in pictorial and detailed harmony as the figs and glassware wherein her objects had given weight, perspective, structure, form, and dimensionality. This implies that the viewer can reach in its painting and can grab that piece of the fruit into the table (Griffit, 2006).

            In the composition of Olley, her genres and subject matter had move across with the skies, buildings, and the land and are treated same as the human figure or still life painting of everyday life. The lights and the forms had been translated to the color of surface of the painting which can give three dimensions subject. From her past roller coaster experiences, her genres will reflects on doing whatever she wants by following her instinct and doing detailed sketch and all because of creativity (Ibid).

Tony Cragg and his Art

            Tony Craggs is British sculptor and acclaimed artists during his generation. His sculptures are organized and group in accordance to material used as the clay, stone, bronze, and glass and to the other synthetic materials. In his famous sculpture belongings his subjects are primary chairs, tables, bottles, jars, cabinets, and other this which can be seen at the living room. Though different materials can give different emotional experiences, he had been known for pictures and sculptures for the things he found as the furniture, plastic toys, and other households objects (Artmag, 2008).

            Cragg’s sculptures had been used by the industrial and urban detritus that had opened up in the new territory in the field of sculpture while dealing with the social and environment concerns in the Britain’s post industrial. In this way, he used the miscellaneous items as plastics, vacuum, axe head, figures, and vessels and others. In her sculpture belongings he used stones to form his subjects to use the aesthetic materials in sculpting (Sculpture, 2008).

            The life of Cragg had been spent for his big wave of people and therefore had been influenced by the works of other artists and he did not want to make their specified work. In this way, he has also his rules and what he did is to break up others’ rules due to his own terms. In his belongings it signifies that it has the freedom to do whatever subject he wants and go out in the studio. He also been aware on the culture of Europe wherein he strove hard to reflects his works on the said continent and to refer this in the development of economic, intellectual, genealogy, and climate. This also reflects his concerns and knowledge on scientific matter and vocabulary for bodily functions (Centre for Contemporary Art, 2008).

Frida Kahlo’s Art

An artist in many ways as in her mind and body is what can define to Frida Kahlo who is a native Mexican. Everyone was unaware that the art of Frida Kahlo were all because of her emotional background. This made her to decide to express what she felt and show it on her canvass. In this way, she can paint her anger, pain, happiness, physical and mental suffering and other emotions. In her painting Pitahayas, her still life elements are leaves, fruits, other plant, and the human skeleton and hook, and others.

In her life, she did not receive recognition as great artists while her painting as the Pitahayas, had been rooted for the Mexican portraits that introduce the culture of Mexican pop and pre-Columbian primitivism which had done before. In this manner, the simple yet simple and intimate painting will contrasted on the grand mural during her time and commonly done in the sheet of metal as canvass which has the style of the Mexican streets or the small paintings of votive (Lenin Imports, 2008).

In the year 1925, Kahlo experienced car accident that made her to hospitalize for long time and relapses in that fatal fatigue and suffering in her entire life. In this way, her emotions had been put all that out in the canvass that she painted. This also includes the emotional and physical suffering that she underwent due to the said accident. The work of Kahlo had been greatly influenced by the Mexican culture by using the dramatic symbolism and bright colors. This can also reflects to her painting that can also signifies death which had been caused for many reason as her stormy marriage, the accident, and childhood experienced. Though, bright colors and fruits signify her achievements, happiness, and all the people that touched her life (Olga’s Gallery, 2008).

 

The effects of critical mass change will be with society for a long time

The job position and roles

The effects of critical mass change will be with society for a long time. Change has rocked innumerable organizations as well as individual lives. People are feeling the cumulative effects of the various changes in economic, political, technical, competitive, social, and environmental spheres (Burack 1993). The impact of change has been intensified by the fluidity of the interaction among these spheres. For many companies, the seeming abruptness of change left few options short of radical surgery in the form of rapid downsizing. Doing whatever it took to buy time, consolidate, retrench, and eventually refocus on future possibilities resulted in the displacement of countless workers. Some were retired early even if they could not afford to or did not want to retire. Many who consciously chose retirement were disillusioned by the shortfall in retirement funds. The drama of these events has been played out in individual lives and chronicled in headlines, articles, and books. As organizations worked to meet the demand, layers of management were added to plan for and guide complex divisional networks, and hierarchical structures grew (Burack 1993).

 

From remodeling to reinvention, almost anything goes. Almost daily, creative thinking, penetrating analyses, and experience combine to discredit long-held assumptions about organizational structures, processes, and behaviors. Managing paradox is a growing challenge. The traditional economics of personnel administration and operational staffing is considered suspect. Intuitive thinking and questioning the assumptions of traditional approaches are welcome (Burack 1993). The stagnant straight-line thinking of past decades is shifting toward a more creative direction. Several major developments are driving these changes, long underway in some companies and industries. Key developments include the quality-value-service dictum, continuing cost containment and reduction, and the rediscovery of the value of human resources. All of these driving forces are interrelated. Critical mass changes have furnished the imperatives. Massive changes were not possible or considered necessary until economic imperatives intersected with social trends. Newer work life features, work arrangements, compensation approaches, worker involvement, benefit structures, leadership modes, and the like, are driven by technical, general administrative, managerial, and cultural imperatives (Burack 1993).

 

New paradigm organizations, unlike conventional ones, increasingly reflect approaches that are business sensitive are geared to longer-term profitable performance, and sensitive to human resource ends, preferences, and concerns (Burack 1993).The need to manage the personnel in the changing environment paved the way for the emergence of the Human Resources officer position.  This position requires one to have good people skills because he will relate with different kinds of people. The human resource officer makes sure that all activities done by the personnel are in agreement with the goals of the company. Moreover the HR officer provides a bridge of communication between the upper management and the personnel. Lastly the HR officer gives feedback and suggestions on the performance and activities of the personnel.

Key Elements in Recruitment and Selection Process

HR practices and its role in a company

Successful HR professionals will be those who can align their organizational HR practices with the unique demands of team-based organizational structures. In addition to recognizing and adapting the assumptions on which they base their practices, HR professionals must also modify those practices to support teams. The practices to be modified cluster in five areas: recruitment and selection; task design; training; evaluation; and compensation (Korman & Kraut 1999).The second set of practices that must be modified relate to task design. Effective teams are designed around the tasks they perform Training constitutes a third set of practice modifications for effective team implementation. There is often a mistaken belief that people who are highly educated have the basic skills to work effectively in team settings. In fact, highly specialized individuals are often used to working alone and may lack some of the basic interpersonal skills necessary for collaboration (Howitt 2001).

 

Training programs designed for interpersonal skills in teams take one of two approaches that includes traditional classroom instruction in which a lecturer delivers material about techniques or strategies for working in teams and creative off-site team-building sessions in which teams participate in athletic, artistic, or competitive activities unrelated to their actual day-to-day responsibilities (Korman & Kraut 1999).A fourth set of practices that must be modified involves evaluation. If organizations wish to motivate teamwork, they must incorporate teamwork into their appraisal systems. It is important that the appraisal system not only reward good team players but also discourage behaviors that are not conducive to team effectiveness. An organization-specific job analysis should be conducted to determine the precise nature of the behavioral and performance measures to be included in the appraisal form for each individual team member. A final set of HR practices that should be examined when implementing teams pertains to compensation. Good practices for rewarding team performance require good processes for defining what the performance should be and for measuring and evaluating the performance (Schminke 1998).The human resource management (HRM) strategies of the company are always aligned with how corporate governance is implemented. A change in the corporate governance means refurbishing of the strategies used in human resource management. When corporate governance is set on lessening the financial burden of the company the result will be downgraded budgets for HRM or decreased issuance of funds for HRM activities. When governance is aimed at internationalization of services the tendency for firms is to upgrade their HRM strategies in accordance with international standards. When the governance strategies is focused on making faster and more efficient deliveries the result would be some HRM strategies that serves as a block to the new goal would be scrapped to maintain a smooth flowing operation. The human resource (HR) group has an important role in the company. The role of the HR is to make sure that the employees will still listen and follow the changes initiated by the company.  HR has the role of recruiting and selecting the employees the company needs.

Recruitment

The purpose of the staffing process is to target workers most likely to perform the jobs in an organization efficiently.  This entails an attempt to identify the kind of information necessary for predicting each candidate's probability to succeed or fail in adjusting to work prior to being hired by the organization (Tziner 1990). Today’s successful organizations need to hire the most qualified people they can at the most competitive price. Before an organization is able to hire an individual, it must locate qualified applicants who are interested in working for the organization. How does an organization attract these qualified people? Through the recruitment process and it represents one of the major responsibilities of the HRM function. It is a responsibility that if not effectively and efficiently completed can almost single-handedly ensure limited success for the organization. Recruitment is the process by which organizations discover, develop, seek, and attract individuals to fill actual or anticipated job vacancies. Or from another perspective, it is a bridge-building activity with the purpose of bringing together those with jobs to fill and those seeking jobs (Sims 2002).

 

 Most organizations have an ongoing need to recruit new employees to fill job vacancies when employees leave or are promoted, to acquire new skills, and to permit organizational growth. In an era when the focus of most organizations has been on efficiently and effectively running the organization, recruiting the right person for the job is a top priority if organizations are to be successful. Recruitment is directly related to both HRM planning and selection. Recruitment can be quite expensive when one considers the cost of advertising, agency fees, employee referral bonuses, applicant and staff travel, relocation costs, and recruiter salaries. Although recruitment can be quite expensive, organizations have not always treated it as systematically as other HRM functions, such as selection. However, in recent years organizations have increasingly recognized that failure to systematically recruit employees can impact their success. There is every indication that organizations will continue to see the value of recruitment to their success. The magnitude of an organization’s recruiting effort and the methods to be used in that recruiting effort are determined from HRM planning. Recruitment follows HRM planning and job analysis and goes hand in hand with the selection process by which organizations evaluate the suitability of candidates for various jobs (Sims 2002).

 

 Many factors and issues must be taken into consideration by an organization if it is going to be successful in its recruiting efforts. Probably the most important factor affecting the success of the recruitment program is the organization’s reputation in terms of its products or services. Social attitudes about particular types of employment will also affect the supply of potential employees. If the job to be filled is considered uninteresting, oppressive, or unattractive, recruiting a large and qualified pool of applicants will be difficult. Cost is an important factor in recruitment. Recruiting efforts by an organization are expensive. Among the key issues in recruitment are the goals of the recruitment program. A successful recruiting program needs to serve many and sometimes conflicting goals. Another key issue is the organization’s recruitment philosophy or the idea of hiring from outside the organization for vacancies at all levels or to promote from within the organization (Sims 2002).Not all applicants are alike. Some are looking for the best long-term career, others for the best short-term stepping stone. Some prefer rigorous selection procedures that allow them to show their capabilities whereas others hope for warm smile interviews that favor charm over substance. Although applicants seem to prefer early contacts, prompt follow-ups, and early offers, most do not want to be pressured into making quick decisions (Farr, Schuler & Smith 1993).

 

Although there are wide individual differences in tolerance for prolonged search most applicants seem to want time to generate at least two offers so that there can be a real choice. Then, once offers are in hand, most want time to rationalize their decisions, which almost always involve accepting some suboptimal features along with the desirable ones. For these reasons, most applicants regard pressure to reach a quick decision as at best unappealing, and at worst coercive (Farr, Schuler & Smith 1993). The current recruitment process focuses on making sure that the most qualified personnel can be hired by the company. In this process various things are considered and that includes the educational achievement, capabilities, educational background and skills of the applicant.  Companies can either use their own HR to recruit personnel or they avail the services of employment agencies who will hire the staff for them. In some cases in house recruitment is used as an alternative recruitment process.

Selection and Training

The job of orienting hiring managers is one that can require a significant amount of competency and skill on the part of hiring process facilitators, typically HR professionals. Managers need to be educated and influenced so that they understand the need for and the benefits of a rigorous selection process (Zwell 2000). Selection and training goes together and they are both vital in determining the applicant most qualified to be included in the company. Today's and tomorrow's training efforts must take place within an overall framework for workforce development that directly contributes to the organization achieving its mission. The premise behind a strategic approach to training is that training decisions that fit the organization's conditions positively impact performance. A strategic approach to training begins with the relationship between the organization's mission, strategic agenda, and its HRD needs. Current and future HR workforce requirements are derived from a clear and widely shared understanding of what the organization does and how it does it (Sims 1998).

 

A strategic approach continues with an assessment of the current capacity of its workforce. Senior leadership, and a culture that supports ongoing learning and training initiatives, is a key to successful training in any organization. Improvements in HRD and training in particular will only make a marginal contribution toward increased employee and organizational performance if cultural barriers to sound training reinforcement exist in the organization (Sims 1998).If training is to truly add value to an organization, senior leadership must recognize that nothing short of a fundamental reengineering of the training system will enable them to meet the challenges ahead. Clearly, for training to be successful, it must be inextricably woven into the clarity of the organization's mission, its HR systems, and its culture. All key stakeholders must work towards the development of a strategic plan. Proactive planning for training must always involve some self assessment by the training function, looking at future trends that may impact the organization and the training function, determining goals for the function, setting objectives, and developing training plans that are responsive to the current and future training needs of the organization given its strategic agenda (Sims 1998).

 

Proactive planning enables the training function to be in a position of helping to make things happen in the organization as opposed to watching things happen. With proactive planning, training personnel view needs analysis as a tool for helping the organization identify problems and opportunities that may be best addressed by either training or non training interventions, or a combination of the two (Clardy 1996).A training plan provides a blueprint for training development. This includes providing a description of the training objectives, content, media, training aids, and other elements required for actual instruction and the estimated time required for each training topic (Bowers, Edens & Salas 2001).  Selection is one of the last processes in hiring an employee. In this part of the hiring process, the employees who showed consistency in every activity in the process is set aside for training to determine whether he/she can keep up with the demands of the job. Training helps a company create employees that can be relied upon and can create products that give satisfaction to the clients.  Training provides the company an opportunity to have globally competitive employees. Employees who are trained well can have an easier time to make products that can outdo other products offered by competitors. Employees who are trained well also have more capacities to adjust to abrupt changes. These employees are resourceful enough to create changes whenever they feel that the situation in the environment is a threat to the success of the company.

 

Whenever a development to management happens one thing that gets affected is training schemes used by companies. When the management changes its strategies into a financial oriented situation, companies tend to minimize the use of training strategies that can cross the new goal of minimizing financial expenditures. The training strategies will be done on what costs less rather than what can create immediate impact on the employee. When the leaders of a company become concentrated on maintaining a good reputation the first thing that is changed is the training strategies used on employees. When a company wants to use management to create a good reputation it uses training strategies to create employees that will treat the clients well and provide the best product. This will give the company a better image and reputation.  When a company wants to focus on providing customer loyalty, the training system of the company is altered in such a way that the actions of a company will focus on achieving customer loyalty.

Conclusion

The need to manage the personnel in the changing environment paved the way for the emergence of the Human Resources officer position.  This position requires one to have good people skills because he will relate with different kinds of people. The human resource officer makes sure that all activities done by the personnel are in agreement with the goals of the company.  Being in an HR officer is not an easy position, having that position requires a lot of responsibility to recruit, select and train the employees that will help the whole company reach its goals. The HR officer has to make sure that he/she follows the standards set by the HR group. The human resource group has an important role in the company. HR has the role of recruiting and selecting the employees the company needs. The current recruitment process focuses on making sure that the most qualified personnel can be hired by the company. In this process various things are considered and that includes the educational achievement, capabilities, educational background and skills of the applicant.  Companies can either use their own HR to recruit personnel or they avail the services of employment agencies who will hire the staff for them. In some cases in house recruitment is used as an alternative recruitment process. Selection is one of the last processes in hiring an employee. In this part of the hiring process, the employees who showed consistency in every activity in the process is set aside for training to determine whether he/she can keep up with the demands of the job. Training helps a company create employees that can be relied upon and can create products that give satisfaction to the clients.

Most of the early models of the international research methods were Western-centric

International Research Methods

 

Most of the early models of the international research methods were Western-centric. The said phenomenon is due to the fact that the idea as well as concept of internationalization had started or become famous in Europe and other Western countries. Furthermore, it is also observable that researchers used the educational system of the Western countries as a patter or basis for their research for different non-western countries such as East Asia, Arab world, India, Latin America, South East Asia and most of Africa.

In the study of Laishly regarding the comparative educational charts, and notes on education in the United States, the study, theories and hypothesis focuses on different countries: Great Britain, France, Switzerland, Italy, Germany, and Belgium. All of the said countries were compared with the educational system in the United States, the said study included only, with those western-countries, and there is no single non-western country in the list.  This shows that most of those, considered as poor countries, or particularly pertains on those countries that are not considered as industrial during that time, were rarely included in different studies.

Using different ideas and theories from different resources, it is obvious that one of the primary reasons behind this is the colonial mentality, where in those researchers think that Western regions, together with their cultures, customs and societies is the foundation of all knowledge and information about international education system. The said condition can also be seen in other fields of science and trends in the world. Furthermore, it can also be said that Europe and America is considered as the most powerful and wealthy regions during that time, that is why it had created the western world as the leaders in the education system. The said condition can also be seen in large numbers of respected and famous numbers are found in the Western regions, thus it can also be observed that there are more immigrant students in those countries than in other non-western countries.

The said situation can be seen in different studies where in most of comparative studies, compares western countries’ education with the non-western countries and created an idea regarding what are helpful educational policies that would help them to improve their education system.

As of now, globalization had affected each and every industry and sector in the world, and it is important for researchers and theorists to focus on research methods that will focus on different needs of non-western countries. It is also important to use non-Western countries as the basis for their comparative education, because, there are some educational policies and cultures in non-Western countries that can be applied by Western countries in order to improve their educational system.

 

 

 

 

 

The Correlation of Obesity to the Socio Economic Status

The Correlation of Obesity to the Socio Economic Status

 

Introduction

The rate of the obesity are now continuing to increase not just fro the childhood but for the adulthood as well (WHO, 2008). With the aide of Ethno methodology that examines how the people can make the sense base on their social life. It has been reported that there are interrelated facts and dilemmas regarding the relationship of obesity and socioeconomic status into the developed world (Gortmaker, et. al, 1993). In line with this, there are many environmental factors that can determine the human obesity prevalence and one of this is the environmental factor. To the extent of obesity, ignorance only exerts its effect, for most of the developed countries; the socio economic status is highly correlated to occurrence of obesity which signifies more obesity for the lower social class (Stunkard, 1996).

 

 

Discussion

There are noble studies that shown the correlation or the reflection as well as the causal relationship of the occurrence of the obesity and its socioeconomic status. One of these studies is the review of the landmark of the World Health Organization for the obesity and that relates to the socioeconomic status (SES) and supported to the idea that for most the developing world can determine the obesity which as essential disease for the economic elite. Based on this review, it shows for the different scenario regarding the relationship of SES and obesity. Despite for the reason that most of the studies are all necessary for the clarification of the exact nature of for these relationships, there are at least three main conclusions that emerge in the review of the study. In accordance to the study of World Health Organization (WHO), the obesity for the developing world is not considered to be as a disease for the higher SES groups. The other conclusion arrived to the burden that the obesity in the developing countries is tending to shift into the group that has the lower SES when the country increases is gross national product (GNP). This shift for obesity into the women which has the low SES is occurring at the earlier stage for the economic development as it compared for the men. This higher rate crossover for the obesity of women in the low SES can be found in the GNP and to the per capita of about US$2500 which is considered to be the midpoint value for the economies of lower-middle-income (World Health Organization, 2004).

 

Conclusion

Based on the result of the review that had been done, there are needs on the obesity prevention which is relevant in the public health topic for the developing countries. The improvement in the access of the social classes in the said countries needs to have the determinants and reliable information regarding obesity. Lastly, there must be designation for implementation of public actions in the economic, physical, and Sociocultural environment that can make healthy choices. 

The Global Intgration is being percieved by several challenges

 

Introduction

More often, the MNC’s global integration is being perceived by several challenges.  The global integration effort by most MNC’s, has acquired considerable emotive force.  For some, global integration effort is a process that is beneficial, i.e. a key to the future world economic development and also inevitable and irreversible.  Others regard it with hospitality even fear, believing that it increases inequality within and between nations or organisations, threatens employment and living standards and thwarts social progress.  Actually, businesses’ global integration effort has its own style of offering extensive opportunities for truly worldwide development but it can be seen that it s not progressing evenly.  Some nations or organisations are becoming integrated into the global economy faster than the others. Nations or organisations that have been able to integrate are seeing advance growth and reduced poverty. With the undying influence of globalisation to the world, there are many organisations that are striving to adjust with these influences. Thus this paper will tackle about global integration effort by MNCs, particularly from a mobile phone service company’s subsidiary perspective, its benefits and costs, the key challenges that it posed to mobile phone industry and its impact for the overall business development of the industry.

This research shows in detail the background and research questions of the study. Moreover, the hypothesis of the study and the key variables and research instruments are presented. Here, vital concepts, samples, methods, and analysis procedures are stated. Finally, the scope and limitation of the study are discussed.

 

Research Questions and Background of the Study

            Businesses are continuously developing. Multinational companies recognized the similarities between international markets and most of them tried it to integrate into the overall global strategy. Such changes actually affect the overall performance of a certain business.  With this regard, this paper will be discussing the impact of global integration to a mobile phone service company.  Global integration simply corresponds to the identification of similarities between international markets and integrates it to overall global strategy.  Meaning to say, different variables in global perspective should carefully assessed by businesses who wanted to adopt global integration.

            As revealed in the study of Morrison and Roth (1992), there is an increasing number of industries have recently become global in nature and that is because of the economic, political, social, and competitive forces for globalization. As compare to a multi-domestic industry in which the competitive forces are controlled by national boundaries, a global industry is 'a series of linked domestic industries' where competitive forces surpass national boundaries, thus producing a worldwide competitive arena (Porter, 1986, 18). In addition, global industries can be classified into a less advanced (or simple global) form and a more advanced (or integrated global) form of globalization (Makhija et al., 1997). A simple global industry has comparatively low pressures for geographic diffusion of business processes such as manufacturing but comparatively high pressures for global integration because of the strong common customer needs, high minimum efficient scale, and global economies of scale. On the contrary, an integrated global industry has strains for both global integration and geographic dispersion of business activities. In such an industry, let say in Mobile Phone Service industry, forces such as country differences in costs and skills, local government demands, developed customers’ rapid businesses to disperse their activities across borders. At the same time, forces such as general customer needs, cost diminution, and necessitates for innovation force businesses to incorporate their activities for global scale, scope and learning economies. This dual trend results in high interdependence in business operations worldwide. Per se, the forces of integrated global industries test the capacities of business administrators to integrate worldwide business activities (Porter, 1986).

For this research paper, the focus on the integrated global industry environment from the subsidiary perspective of Mobile Phone Service Company is presented as research context for two reasons. First, the importance and relevance of this environment as the operational context of multinationals have greatly increased in recent years. Many global industries have recently become integrated in nature as the environmental pressures of both geographic dispersion and global integration mentioned above have intensified over the years (Makhija et al., 1997). Second, the integrated global industry environment provides a suitable research context for this study, which investigates the performance implications of global integration of business functions that are dispersed geographically. Thus, this study will answer the following queries:

1. With reference to business management, do business performance appraisal and management development of Mobile Phone Service Company significantly affect its progress?
2. What are the variables that significantly affect the perception of the respondents regarding global integration of Mobile Phone Service Company?
3. Does global integration significantly affect the progress of Mobile Phone Service Company?
4. What are the recommended solutions to the problems of Mobile Phone Service Company in accordance to global integration?

 

Hypothesis of the Study

Based on the research questions the research project works out on the following hypotheses:

 

Ø      Global integration has no significant effect to the marketing process of Mobile Phone Service Company.

 

Marketing involves activities related to notifying current and potential customers of the product and services and inducing them to purchase it. Such activities include promotion, advertising, branding, market research, pricing, and channel selection.

With the pressure of integration, Jain (1989) justified that the activities of marketing need to be connected across borders through information flows and communications to enhance global marketing innovation and learning. Basically, information systems can satisfy this need (Carpano and Rahman, 1998). Information technology can efficiently transport information on market trends, pricing, competitor behaviour, sales trends, and changes of regulations and local laws, and can be a significant means of impersonal communications. Nevertheless, without mutual understanding and trust, managers are less willing to accept and/or less able to attach meaning to the information transferred from other units. Hence, as in R&D and manufacturing, shared strategic objectives, shared values and norms, and trust-building among members through socialization are desirable for effective integration of marketing worldwide.

For businesses like Mobile Phone Service Company operating in integrated global industries, unifying important decision issues in marketing such as brand names, product positioning, packaging, and pricing is effective (Laroche et al., 2001). The business head office, with a broader picture of worldwide processes, can make more organized marketing decisions. For instance, central coordination of service allocation and positioning permits for the transfer of a service that has been tested in other markets. Ultimately, the method of performing promotion seems to be comparatively amorphous because it engages subjective judgment, trial and error, and various contingencies. This recommends that it tends to be complex to codify its procedure into well-specified measures, policies and manuals. Therefore formalization is likely to be moderately less efficient in integrating marketing actions globally.

 

Ø      There is a significant relationship between global integration effectiveness and business management process of Mobile Phone Service Company.  

 

As revealed in the study of Hitt and Ireland (1985), the effective management of business functions contributes positively to firm performance. For multinational companies in integrated global industries, a vital part of the management of business functions is their efficient global integration, which fundamentally necessitates the employment of an ideal usage outline (configuration or pattern) of combining modes. This ideal outline signifies the extent to which companies should use the modes to efficiently incorporate a business function globally.

 

Key variables and Instruments to be used

As discussed previously, this research study aimed to assess the perspective of Mobile Phone Service Company in accordance to global integration.  With respect to this, this paper will consider the following Key Variables:

 

 

Dependent Variable

1.      Integration effectiveness – Integration effectiveness will be measured on a five-point scale ranging from 'strongly agree' to 'strongly disagree' by asking how effective in general the use of integrating modes was in globally coordinating and controlling the chosen function.

 

Independent Variables

2.      Marketing performance – Similarly, marketing performance will be also measured on a five-point scale ranging from 'strongly agree' to 'strongly disagree' by asking the current stance of marketing approaches performed by Mobile Phone Service Company.

3.      Business management performance – This variable will be measured using a five-point scale ranging from 'strongly agree' to 'strongly disagree' by asking the current stance of overall business management approach performed by Mobile Phone Service Company.

 

Basically, the respondents shall fill out a self-administered questionnaire. Ideally, the respondents will grade each statement in the survey-questionnaire using a Likert scale (Barnett, V. 1991), with a five-response scale wherein respondents will be given five response choices.

 

 

The equivalent weights for the answers will be:

 

Range                                    Interpretation

                  4.50 – 5.00                            Strongly Agree

3.50 – 4.00                            Agree

2.50 – 3.49                            Uncertain

1.50 – 2.49                            Disagree         

0.00 – 1.49                            Strongly Disagree

The researcher opted to use the questionnaire as a tool since it is easy to construct having the rules and principles of construction are easy to follow. Moreover, copies of the questionnaire could reach a considerable number of respondents either by mail or by personal distribution. Generally, responses to a questionnaire are objectified and standardised and these make tabulation easy. But more importantly, the respondents’ replies are of their own free will because there is no interviewer to influence them. This is one way to avoid biases, particularly the interviewers’ bias. The researcher will also use graph and charts for data presentation.

 

Samples

The general sample for this study is composed 30 administrative staff of Mobile Phone Service Company. Basically these respondents are asked regarding the current status of global integration and the current stance of Mobile Phone Service Company in global market and their personal views about it.

Basically, (1973), initiated that it is advisable to use the Slovin’s formula in choosing sample sizes. Thus, the sample size of the population in this paper was determined by Slovin’s formula. The formula of Slovin is given as follows:

Where:

      n = a sample size     

N= population size

e= desired margin of error (percent allowance for non-precision                             because of the use of the sample instead of the population). 

 

Data Collection Methods

The study intends to investigate the current stance of the perspective of Mobile Phone Service Company regarding global integration.  To do this, 30 administrative staff in the said business will surveyed regarding the effect of global integration. For this study, primary research and secondary research will be used. Moreover, the descriptive research method will be utilised. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. Thus, this study will use the descriptive approach. This descriptive type of research utilises observations in the study.  To illustrate the descriptive type of research, Creswell (1994) guided the researcher when he stated: Descriptive method of research is to gather information about the present existing condition. 

Primary research is conducted using questionnaire surveys that are sent to the 30 administrative staff. Here, the questionnaires will be used to collect quantitative data and the interviews will be used to provide qualitative insights into the data collected.  Apparently, secondary data are based from the recent literatures related to global integration, marketing and business management.

As stated above, this research will partially base its findings through quantitative research methods because this permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis.

 

Data Analysis Procedures

 

Limitations of the Study

The broad scope of the research topic is the foremost concern when it comes to the identifiable limitations and barriers of the research activity but the holistic approach likewise will enable the researcher to contribute fully to the academe as well as to the involved business industries that will be analyzed. Meanwhile, when it comes to the selected data gathering procedures, limitations and shortcomings could be expected in the data gathering procedures. Beginning from the sampling techniques that will be used to identify the participants of the study up to the facilitation of the survey forms and the interview sessions, difficulties will be expected. But with the support of the academe to the research activity and the explanations that will be provided regarding the important contributions of the study to the business industry upon completion, will serve as gateway to the successful research accomplishment. Other political, economic, as well as social issues and constraints are also expected while conducting the research activity which will be evident in the different stakes of the participants and the companies they represent.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer-driven service management was perceived to be a key towards achieving the competitive edge

Customer-Orientated Bureaucracy – Literature Review

 

Introduction

Customer-driven service management was perceived to be a key towards achieving the competitive edge. Service management refers to the interplay between the actual sales and the customer; to wit, customers were looking for personal yet accessible service. In the hospitality industry, service is the heart of the business; therefore, the management of such will be an important element on the success of the business. In an era of perceive sameness of products and services between companies, the strategic delivery of customer-perceived value is essential to which the paper will discuss in-depth.

Customer-orientated bureaucracy in hospitality context: Standardization vs. customization of services

Hospitality service management conforms to four attributes: intangibility, inseparability, variability and perish ability. According to Locker (2007), these characteristics will greatly determine on how hospitality players consider customer satisfaction as individualistic and as transient; customer needs as immediate, personal and uncontrollable, and on how customers influence other customers and how customer expectations can trigger ambiguity (pp. 1-4). Lowenstein (1991) maintains that “customer loyalty is perhaps the most desirable strategic objective for any business. Industries are beginning to understand the concept that their customers are the primary drivers of their position on the profitability ladder” (p. xiii). It is also becoming widely known that the support of the customer requires a complex infrastructure which should also contain a mechanism whereby the customer is effectively supported.

Customer needs are the driving standards of service and work requirement upwards, a reason why companies are continuously investing and striving to proactively respond to such through quality service. In lieu with this, the management does not always have to act in customer-oriented ways but rather on rationalized, efficient ways. As Ackers and Wilkinson (2003) put it, the management would want the image of the authoritative customer to be partly embodied, to garner moralized customer-oriented behaviour and to provoke workforce concerns for efficient customer handling (p. 274). This is customer-orientated bureaucracy at work, which:

“captures the requirements for the organisation to be both formally rational, to respond to competitive pressures to appeal to customers’ wishes for efficiency, and to be formally irrational, to enchant, responding to the customers’ desire for pleasure” (Korczynski, 2002, p. 64).

            Customer-driven system purports the continuous search for optimization of service features at the highest level of scale and cost position available to them. The trend is between standardization and customization. Segal-Horn and Faulkner (1999, p. 192) contend that standardization and customization vary among industries and resource emphasis, and this could be also combined. Standardization (one size fits all) and customization (one of a kind) are both value creation techniques. For instance, in the hospitality environment, processes, practices and systems could be standardized for back-office while customized on front-office (p. 190).

            Standardization or customization, these two empowers consumer through providing them the best value. Nonetheless, customers are after the security of a reliable brand but will not compromise the anonymity of treatment associated (Lashley, 2001, p. 240). The necessity for standardization is central on striking a balance between controlling the services and the flexibility within them with respect to the customer expectations. This can be done through controlling the actions and behaviors of the employees to ensure that both the needs of the organisation and the customers are met (Herath, 2007). Put simply, the purpose of standardization strategies is on controlling employee outputs to provide consistent quality (Sandoff, 2005).  

Customization seems to be getting momentum recently though customization utilizes standardization principles. Standardization has been superseded by customized goods and services since customization explicitly manifest the ability to be able to solve problem and empathies with customer wants and needs. Korczynski (2001) suggest that standardization and customization could co-exist in the model of customer-oriented bureaucracy (p. 81). Within this model, customization of services could be represented by customer-orientation and standardization of services is captured by the concept of bureaucracy without sacrificing any one of the technique.

For Kaczynski, the ability to provide to provide for customer-orientation within the standardized bureaucratic process allows the individual needs of the customers to be met. The levels of standardization and customization could be determined depending on the strategic direction and the levels of control required. Simons (2005) suggested that the strategy chosen by the management will determine how management wants employees to behave and therefore the control mechanisms required. Realizing this, the level of standardization and customization in service interactions is an important strategic decision that impacts on the hospitality organisation, employees and customers (as cited Goodsir, 2008).

In the hospitality setting, service standardization facilitates to minimize variation in human behaviour and provides the hospitality organisation to improve productivity and reduce cost while service customization involves the tailoring of services in order to meet the unique needs of individual customers and accordingly, requires the employees to align discretion over the type, nature and length of service interactions with customers (Ibid). As such, in the hospitality industry, high levels of customization and high levels of standardization is possible. According to Good sir, the completion of a hospitality encounter involves the disclosure of behaviors and characters which are reflected in their surroundings and intimate interactions.

Interaction between customers and customers is the central aspect that the industry is seeking to provide. Employees are entrusted to provide services to customers in the manner that reflects the character the organisation wants to portray. Within the hospitality organisation, every action that the customer service employee undertakes influences the customer’s perception of the organisation. Hence, it is critical to align employee behaviour with the image and personality of the organisation (Harris and Fleming, 2005). To do this, there are required customer service skills and competencies. Spencer and Spencer (1993) assert that competencies are individuals underlying characteristics that can predict behaviour. These are skills, knowledge, self-concept, traits and motives.

                       

Organization are Required to have their own strategies to make them achieve their goals

Pre-Course Assignment II

 Business Strategy

 

 

I declare that all the materials included in this essay/report/project/dissertation is the end result of my own work and that due acknowledgment have been given in the bibliography and references to ALL sources be they printed, electronic or personal.  

 

-By the Author

 

 

 

Introduction

            Organizations are required to have their own strategies to make them achieve their goals. Business strategy requires planning, formulating, implementing and evaluating. Strategy is a chosen technique for an organization to survive the competition. The implementation of a business strategy would require an organization to take certain risk because strategies may result to either a positive or negative outcome.

            The success of an organization relies on many factors that affecting it. Either way, consulting to a business strategy will also provide a big help to them especially today that the competition is fierce. There are rapid changes within the economy. In fact it was stated that utilizing a strategy is more of implementing new concepts. And these concepts should therefore match the internal capabilities of an organization and the external environment.  Understanding the true concepts of each business strategy will keep these organizations on the right track. 

            The continuation of this paper will discuss the significance of the implementing the right strategy in an organization. As a pre course assignment, this paper will also indicate the students’ idea about the course pertaining to business strategy.

 

Business and Strategy

            To be able to succeed in a particular business, some sort of strategies is usually implemented. The business world is very much competitive and conceiving. The concepts are changing rapidly and trend is continuously upgrading. Therefore, for a business to manage to stay in the competition they should utilized some strategies either within the whole organization or just within a particular component that needs improvement. Usually, the strategies of an organization are highly confidential and these require logical thinking of the persons responsible for it.

            Managing a strategy will enable an organization reach its goals. The proper formulation, implementation and evaluation will definitely contribute to the progression of the business. Planning is usually the first stage of the strategy. The plan includes the forecast of the activity of an organization. The target is always to have a long term engagement.

            Most of the strategies being implemented in an organization lead to certain transformation and changes. But before the actual implementation of a particular strategy, the whole business structure is being analyzed first. It would be better to have some ideas regarding the whole business structure before applying new concepts within it. The choice of strategy should be applicable to the nature of the entire organization so that the adaptations wouldn’t require much effort to everyone.  If a particular strategy is selected, its implementation is often the hardest part.  

            Unfortunately, business strategies also fail. The reason for such undesirable outcome is due to the underestimation and misinterpretations of the involve elements like the customers and the competitors. There should always be coordination all over the entire organization so that adequate understanding between the future goals and visions are being perceived.

 

Conclusion

            Just like any other things, strategies are needed to gain some improvement in a specific field or area. In a particular business, coming up with a new strategy is just part of the risk that they need to contemplate with. In this pre course assignment, the student has learned that the business strategies are essential to an organization but it is not enough bases to consider ones progression.  The whole course of strategic management has a wide scope. In fact there are a lot strategies involved in the entire course. Having the right knowledge about this strategy will sure help the students gain insights about it and they will be able to analyze each concept well. 

            However, a deeper understanding of the entire idea of the business strategy will obviously render positive outcome to the organization. Competition will always be part of the business world, that’s the truth and the only thing that will never changed. That is why before handling out the probable strategies, it would be better to acquire its relevance first to the organization.

 

 

 

 

 

The more media subscribed to entertainment programs the more people are hooked and hold to watch

Case Study of Video Game

 

 

Introduction

            Today, mass media become the primary source of entertainment and information. Most of the time, people are more entice to turn-on the television set to watch entertainment programs. The more media subscribed to entertainment programs the more people are hooked and hold to watch. The addiction of people on media especially those which produce entertainment lures is rooted from the hedonistic human nature of man—the desire to gratify our pleasures. In fact, media theorists believed that what predominantly preoccupied media is how to create programs which are entertaining. In fact, even the news programs are not devoid of entertainment. Moreover, we have now what we call infotainment—a combination of information and entertainment in a single unit of program.

            One of the enticing moments that man subscribes into is gaming. Studies revealed based on psycho-social researches that people adhere or even addicted to games because of the pleasure it ushers. More than the surface elements it revealed were the usefulness it afforded to cognitive development. Yet, with much exposure to gaming eventually lead to addiction and destabilizing behavior towards other human psychological aspects.

            On the other hand, let us see how the main propagators of medium on games with its great impact on people struggling to market their high-ends products and assumed a powerful place in their respective industry. The use therefore of environmental and organizational analysis is important in order to understand the internal and external processes organizations undertaken in order to be successful in marketing their own products.

Environmental Analysis

            The political, economical, social and technological factors are primary forces which affect the marketing strategies of any business company. Vital in establishing effective marketing strategies are the consideration on the PEST factors. It must be pointed out that the treatment in making strategies should considerably favorable to the forces embedded within the society and structures it interacts. Hence, the industry’s profitability level goes up when these forces are being taken seriously. The three business firms which marketed video game products waged a higher competition by exquisitely use technology as the powerful means to take a competitive advantage. The technological innovation sets the tone for each competitor to develop complex and intricate products that would strongly appear to the pleasure of people engaged on gaming.

            The basis of competition is grounded on technology and marketing strategy. The use of technology as a raw material becomes vital to the creation of video game products. We see how industries develop high-end software and create artistic and sophisticated hardware in order to take an advantage from other competitors regardless of the expenses it will consume. The evolution of video game products and the innovative strategies of different major distributors and makers provide us the idea that in business like this “winner takes all” is insufficiently viable. Moreover, competitors still believe that through the proper use of technology and utilization of it can gain a “winner takes all” status.        

Organizational Analysis

            The strategic moves of each business firms like Nintendo, Sony, Microsoft, and Senga are different. Each of them develops marketing strategies that primarily hampered the competitiveness and profitability of the competitors. However, more of the marketing strategy is the strategy method of use how to develop a quality product based on highly qualified technological raw materials. The availability of sophisticated and high-ends software enforce the quality of products and eventually attract consumers. The “consumer friendly” approach irregardless of its costs is very important. To take an example was the problem of Microsoft video products marketed in Japan when consumers reacted negatively about the incapability and low quality of the product. In contrast to other products, Nintendo and Sony set a competitive atmosphere to gain the status of being a leading manufacturer of video games. Some industry may have lost its competitive advantage, yet, struggling to regain the position of being in the same line of those still in the power house.

            The highly competitive performance of each business company is notable and the explicit appearance of each capabilities show how the company’s management deals on competition. Indeed the need of effective marketing strategies and sophisticated use of technology are vital elements to confront and establish a highly competitive advantage against other industries of the same manufacturing products. Hence, not only marketing and technology have the vital role but also the collective effort and performance of people utilizing resources and knowledge in order to gain consumers’ satisfaction and loyalty.

Recommendations

            The ever fast growing of trends and technology today would be an avenue for any organization to wage higher standard on competition. The fact that in order to stay at the global club of powerful businesses, the need of having foresight to be vigilant with the drastic changes in technology is significant. Organizations now in order to gain the attention of consumers are not merely dwell on how to develop and use exquisitely technology and marketing strategy but also on how to manage the organization culture within and the knowledge management.

            These I think are significant too in making abreast with the competitive world. Unexpected changes and trends brought about the magnificent construction of man’s ability to create and invent things are brought by the power of our knowledge. Thereby the need to have an effective management of knowledge, the use of technology, organizational culture, and the exploitation of media are recommendable to further enhance and maintain the business power.

            If  and Microsoft are businesses which contend to establish high competition the need for integration of different effective modes in production available outside can be used.

            Hence, not only technology and management skills can lead an organization to a higher prosperity and profitability. But, the determination and the significance of various entities which are effectively discharge information and attraction to consumers are highly recommendable. Lastly, deep evaluation and research analysis are important and significant.

 

Global Economic importance and connectivity are the key criteria for world city status

World Cities

            Global economic importance and connectivity are the key criteria for world city status. Most observers today, taking their lead from the ideas of Friedmann (1986), see world cities as the decision-making and control points for the world economy (Beaverstock et al., 1999). World cities are distinguished by their roles as sites for the accumulation and concentration of capital and as places from which its distribution and circulation are organized and managed. They are favored locations for the institutions of international production and consumption and the individuals and agencies that support and facilitate these activities. Function rather than size is critical. World cities are places in and from  which global business, finance, trade and government are orchestrated and arranged.

 

The command and control role is reflected in the activities that are typically located in world cities. These include corporate management, banking, finance, legal services, accounting, technical consulting, telecommunications, computing, international transportation, research and higher education. Concentrations of such functions are common in capital cities that serve as the highest-order service centres for their national urban systems. They are especially pronounced in the principal business centres of the richest and most advanced economies. The number and range of services do not of themselves, however, denote world status since outlook and orientation are key considerations. What distinguishes world cities is that they provide services for a world market and not merely for domestic or regional consumption.

 

World cities are characterized by concentrations of headquarters of global corporations, commodity, currency and securities exchanges, and head offices of producer services organisations. They are major centres for international government and administration and are principal junctions on the global conference and convention circuit. The importance and distinctiveness of these activities are conveyed by office and convention buildings of distinctive architectural design (Zukin, 1992). They give world cities an identity that symbolizes their economic dominance. The presence of global functions and institutions means that world cities have more in common with each other than they have with urban centres in their own countries and with places of similar size elsewhere. The strength of their interlink age means that it is often as easy to travel among them as it is to reach secondary centres in the same country or in adjacent territories. World cities are the principal foci for global business travel and telecommunications networks.

 

 

World City Hierarchy

Full Service World Cities

Score: 12

London, New York, Paris, Tokyo

Score: 10

Chicago, Frankfurt, Hong Kong, Los Angeles, Milan, Singapore

Major World Cities

Score: 9

San Francisco, Sydney, Toronto, Zurich

Score: 8

Brussels, Madrid, Mexico City, Sao Paulo

Score: 7

Moscow, Seoul

 

Minor World Cities

Score: 6

Amsterdam, Boston, Caracas, Dallas, Düsseldorf, Geneva, Houston, Jakarta, Johannesburg, Melbourne, Osaka, Prague, Santiago, Taipei, Washington

Score: 5

Bangkok, Beijing, Montreal, Rome, Stockholm, Warsaw

Score: 4

Atlanta, Barcelona, Berlin, Budapest, Buenos Aires, Copenhagen, Hamburg, Istanbul, Kuala Lumpur, Manila, Miami, Minneapolis, Munich, Shanghai

 

The Hierarchy of World Cities used today was identified by the University of Loughborough’s Globalization and World City Research Group. It reflects the views of Sassen (1991) that world cities are ‘postindustrial production sites’ in which global corporate services and financial services are developed and provided. The classification is based upon a scoring of places on a 12-point scale according to their importance as providers of global advertising, banking, legal services and accountancy (Beaverstock et al., 1999). At the apex are ten full-service world cities, each of global significance in all four service areas. London, New York, Paris and Tokyo score the highest, but Chicago, Frankfurt, Hong Kong, Los Angeles, Milan and Singapore are also included in this stratum. A second tier often major world cities, headed by San Francisco, Sydney, Toronto and Zurich, is of global significance in three of the four key world city functions. Beneath these in the hierarchy are 35 minor world cities, each of global importance in two of the key service functions. A further 55 places are identified which have some evidence of world city formation, but which do not merit a higher classification.

 

The Hong Kong banking sectors does have innovate opportunities for small and medium-sized enterprises

 

Abstract

The Hong Kong banking sectors does have innovative opportunities for small and medium-sized enterprises upon extending the customer base within the global marketplace. However, SCB and HSBC will need to adopt such approach to financial planning and management which deploy an effective banking network by linking towards a better financial approach determining financial statement in its value and strength. This research represents better framework for analysis and crafting of financial patterns of SCB and HSBC in their business strategy pointing to the management as well as execution of finance factors into SME context. This research investigation can be that the banks involved can achieve better financial status and competence without experiencing much delinquency of such financial statements found in cash flows and balance sheets with HK banking competencies for managing business relations as well as engagements with other banking sectors (in, Venkatraman and Henderson 1998).

 

 

 

 

 

INTRODUCTION

 

1.1  INTRODUCTION

Financial statement is an important indicator wherein the strength of SCB and HSBC is looked upon in its business strategy towards SMEs in Hong Kong, there can accounts for delinquency and such pricing relationships in such financial statement understanding. The comparative analysis of SCB and HSBC can be supported by such case study evaluation and is backed up with qualitative and quantitative approach for research study as the banking sector in HK is aware of determining strength over delinquency when talking to effective presentation of financial statements in such cash flows and balance sheets of the two banks that can be ideal for SME assimilation into the HK region.

 

 

 

 

 

 

Background for the research

Financial Institution such as the SCB and the HSBC incurs a useful potential to play major role in finance through SME companies in Hong Kong. With increased global competition, the finance function can be exploited to allow HSBC for instance, to gain financial advantage in the HK market stance as there can be delinquency of banking operations affecting the overall indication of the financial statement and its ways.  There has to be comparative case study between SCB and HSBC respectively. The methodology value by then, can be based on literature studies of the two banks through such reviewed studies on small and medium-sized in HK with the objective of understanding the background of the bank’s financial strength and how it relates to pricing opportunities as the banks do strive to become more finance competitive. The data required for case analysis have been collected by interviewing several senior managers of SCB and HSBC within a standard questionnaire. Aside, SCB and HSBC’s annual reports and statements have been referred for the collection of accurate data. The main objective of the research is to understand how the two banks developed good financial strength over the years, avoiding delinquencies to the financial statements. Thus, analyzing history of the company, its strategy and goals, strategies as well as the process they used to bring the company to the position as of the present.

 

For example, major banking decisions should involve the volume and timing of orders and deliveries and the packing of items in consolidation. There are several constraints influencing the level of stock and the speed of the material flow along the banking logistics chain. The level of stock and the speeds the material flow also depend upon the nature of the supply and demand. Transportation or shipping involves such matters as the modes of transportation, utilization of available capacity, scheduling of transportation equipment and maintenance of transportation facilities. Next comes capacity planning. The management of both long-term and short-term demand drives the level of capacity required.  The study examines different banking approaches to determine whether a bank will be associated with good financial concepts and will focus on certain clients. Hong Kong is a Chinese-dominated society with different types of banks and this allows for cross-section of cases in order to test the reality and applicability of research over financial statements with specific relationships such as pricing within the banking service ways. In order to clarify objectives of whether there is a indication of delinquency of SCB and HSBC statements that can adhere if there impose a good borrower of the banks into customer awareness and such hypothesis are developed as below.

 

 

 

 

 

 

RESEARCH HYPOTHESES

H1. There is effective strength into financial approach of SCB in comparison to HSBC knowing whether certain profitable company shown in the financial statement would be more attractive borrower

H2. There is no effective strength into financial approach of SCB in comparison to HSBC knowing whether certain profitable company shown in the financial statement would be more attractive borrower

 

CONTRIBUTIONS TO RESEARCH AND PRACTICE

 

The research calls for precise execution of factual knowledge supporting financial strength over delinquency within SCB and HSBC as geared towards SME’s in HK. Hence, for practice the recognition of resources to research and its evidences will amiably be a part of the whole continuum basically, achieving details of banking finance statements through cash flows and balance sheets and the underlying issues within finance sectors of SCB and HSBC in order to fully adopt and execute in the hope of maintaining good banking business in Hong Kong.

 

RESEARCH APPROACH

The ideal research approach significant for this study is by means of vivid realization and precise applications of a comprehensive and detailed research paradigm through assimilation, collation and clear understanding of research information and evidences in forms of relevant research materials as directed to financial aspect of the banks as supported by reliable case studies presented through academic journals and articles as based on the topic. The content involvement within the literature plays a vital factor also for the research approach to value application of financial approaches within SCB and HSBC case patterns and such financial context and principles.

 

 

 

 

 

 

THE REVIEW OF LITERATURE

 

SMALL AND MEDIUM SIZED ENTERPRISES

The ability of SMEs to gain competitive advantage is thought to be related to issues of marketing, market research, marketing strategy, new product development, the technologies and processes and, the manufacturing and operations strategy adopted and not only have SMEs limited financial resources in terms of acquiring suitable technology, but they also lack human capabilities, which contribute to a general lack of skills and knowledge within the organization to cope with new ideas, concepts and technologies. The relevance of innovation in gaining and maintaining enterprise competitiveness has been widely addressed in the managerial literature (in, Freeman, 1997; Chan et al., 1993; Grosse, 1996; Medina, 1996). Successful enterprise analysis clearly shows that triumph mainly derives from innovation oriented managerial and organizational processes. First, the innovation process involves huge financial resources, and is quite risky (in, Baldwin and Scott, 1987). Then, such elements are undoubtedly better managed by big firms because of the greater funds available and the possibility of diversifying risks implementing several research projects. Moreover, it often happens that innovations allow diversification strategies which may be better pursued by large organizations rather than SMEs. With specific respect to product innovation, it is critical to have already established commercial channels enabling economies of scale in production and sales activities. In particular, the primary research highlighted that the banks inability to allocate better finance ways will be in favour of more banking growth in certain areas.

INFORMATION ON SCB AND HSBC

 

Standard Chartered Bank (SCB)

SCB is known and trusted for having high standards of corporate responsibility as the bank is committed to building sustainable business through social inclusion, environmental protection and good governance, by combining the global capabilities with deep local knowledge, SCB develop innovative products and services to meet the diverse and ever-changing needs of individual, corporate and institutional customers in some of the world's most exciting and dynamic markets. There is about SCB in terms of their SME Banking which offers variety of products and services to help small and medium-sized enterprises manage the demands of growing business through providing global support in Standard Chartered, the bank knows that doing business in today's economic climate is challenging and situations as well as business needs can change overnight as the SCB can help SMEs in HK for such business expansion plans. The SME Banking team is dedicated to the people and the business thus, helping SME business reach ample potential by means of customize product packages, responsive services and access to expert advice incurring effective business operations. Thus, at SCB such benefits are possible such as enjoying of preferential pricing on business transactions, gain rewards on banking services rendered and have unlimited access to products and services through SCB  relations executives. Thus, there can be about cash management when dealing to SME ways such as for example, when making important business decisions, it's vital that the business have accurate and updated financial information in Standard Chartered, the bank provide tools needed to manage business cash flow efficiently and effectively. Then, at SCB SME Treasury Services plays a vital role, by having such international network of more than 1,500 branches in 50 countries across Asia, SCB gives unlimited access to expert advice and regular market updates at SME Treasury Services, the services and solutions are designed to help minimize foreign exchange risks and have competitive rates for a range of foreign currencies. Standard Chartered Bank, in their products will help businessmen to manage their exposure on the foreign currencies and interest rates that are associated with international trade. Thus, allowing cross-border financing by having products and services in order to meet cross-border financing needs of subsidiaries, affiliates or associates that are incorporated in diverse jurisdiction to that of the parent company. The presence of SME Mortgages can be effective through loans to help finance owner-occupied and investment property purchases ideal for commercial use within Hong Kong.

Adopted at: <http://www.standardchartered.com/about-us/en/index.html>

As the Standard Chartered Bank is one of the pace setters in Asian and African corporate citizenship. Its chief operating officer presented some of the company’s work at Ethical Corporation’s recent Asia conference in Hong Kong with the fact that Ben Hung, the Hong Kong-based chief operating officer of Standard Chartered bank, is well versed in corporate responsibility bodes well for the future of corporate citizenship awareness across the region. Hung’s brief was to discuss how the company handles its approach to corporate social responsibility across region where differences in operating environments are particularly marked. Standard Chartered has 12 senior managers in Hong Kong, the other of its two main bases being London. One third of the Hong Kong senior team are women. Hung acknowledged that although this is a start the company is “by no means perfect” on this area of diversity.

 

SAMPLE SCB FINANCIAL STATEMENTS

Cash flows from operating activities

Profit before taxation 629,526 561,759

Adjustment for :

Dividend income ( 713) ( 713)

Depreciation 18,491 30,372

Gain on disposal of property, plant and equipment (81) (259)

Gain on disposal of securities available-for-sale (33,479) (17,416)

Amortization of premium less accretion of discount

on securities available for sale 25,081 29,394

Operating profit before working capital changes 638,825 603,137

Changes in working capital:

Deposits and placements with banks and other financial (5,027,400) (1,486,186)

institutions

Securities purchased under resale agreement 13,524 862,851

Securities held for trading (1,034,043) 81,126

Loans, advances and financing 249,170 (2,257,691)

Other receivables (533,417) (254,483)

Statutory deposits with Bank Negara Malaysia (13,441) (92,000)

Deposits from customers 5,366,317 5,700,099

Deposits and placements of banks and other financial (597,271) (2,661,184)

institutions

Securities sold under repurchase agreements (1,177,842) 1,345,942

Bills and acceptances payable 136,865 347,201

Recourse obligations on loans sold to Cagamas (189,263) (10,750)

Other payables 571,000 306,527

Cash (used in)/generated from operations (1,596,976) 2,484,589

Income taxes paid (219,891) (201,763)

Net cash (used in)/generated from operating activities (1,816,867) 2,282,826

Cash flows from investing activities

Dividend received 713 713

Purchase of property, plant and equipment (12,845) (21,424)

Proceeds from disposal of property, plant and equipment 81 259

Purchase of securities available-for-sale (14,603,129) (12,133,870)

Proceeds from disposal of securities available-for-sale 16,067,641 10,782,002

Net cash generated from/(used in) investing activities 1,452,461 (1,372,320)

 

Assets

 

Cash and balances at central banks 8,991 11,813 7,698

Financial assets held at fair value through profit or loss 9 19,344 13,082 15,715

Derivative financial instruments 10 18,441 12,721 13,154

Loans and advances to banks 11 21,108 16,750 19,724

Loans and advances to customers 11 151,953 119,550 139,307

Investment securities 13 52,230 46,037 49,497

Interests in associates 257 206 218

Goodwill and intangible assets 6,217 4,459 6,179

Property, plant and equipment 2,302 1,767 2,169

Deferred tax assets 522 492 519

Other assets 11,890 7,653 8,601

Prepayments and accrued income 3,571 3,618 3,268

Total assets 296,826 238,148 266,049

Liabilities

Deposits by banks 14 26,846 21,994 26,233

Customer accounts 15 160,242 130,176 147,382

Financial liabilities held at fair value through profit or loss 8 13,117 8,420 9,969

Derivative financial instruments 10 19,235 13,390 13,703

Debt securities in issue 16 27,254 24,953 23,514

Current tax liabilities 131 410 68

Other liabilities 17 13,733 11,198 11,357

Accruals and deferred income 3,008 2,430 3,210

Provisions for liabilities and charges 42 56 45

Retirement benefit obligations 18 356 466 472

Subordinated liabilities and other borrowed funds 19 13,279 10,805 12,699

Total liabilities 277,243 224,298 248,652

Equity

Share capital 20 701 667 692

Reserves 21 18,324 12,683 16,161

Total parent company shareholders’ equity 19,025 13,350 16,853

Minority interests 22 558 500 544

Total equity 19,583 13,850 17,397

Total equity and liabilities 296,826 238,148 266,049

* Amounts have been restated as explained in note 30 on page 61.

 

 

 

 

 

 

Indeed, in Hong Kong, where Standard Chartered Bank PLC generates approximately one-third of its revenues, the banking environment has changed rapidly in recent years. This has forced financial institutions to become more nimble and creative with customer offerings or to pay  high price for failing to do so. Beginning in the mid-1990s, the Hong Kong Monetary Authority (HKMA) deregulated interest rates on short-term time and savings accounts, as well as demand deposit (checking) accounts. Interest rates became highly competitive, but parity products made it much more difficult to attract or retain customers based on rates alone. At roughly the same time, virtually all of Asia was impacted by the “Asian Economic Crisis,” a major economic downturn that sent property values plummeting by up to 60%. Sales volumes slowed to a trickle, creating fierce competition among banks for a smaller number of loans. This squeezed margins razor thin, as financial institutions fought to retain their customers.  There was also a considerable amount of industry consolidation, as financial institutions merged or acquired other banks that were a good fit. Even Standard Chartered got into the act, acquiring the assets of Chase Manhattan Bank’s Hong Kong-based retail banking business. Thus, Standard Chartered Bank knew that to stay ahead of some of its more agile competitors and retain its best customers, it needed to reinvent itself in the area of service. The company turned to Oracle [Siebel] to address these many challenges. “In the past, it was fine to have relatively standard products and sell them in standard ways--and the ample margins would ensure a profit,” Parker remarked. “We decided that, strategically, the ground that we needed to play on was brand assurance, customer focus, and quality service.” The bank recently moved swiftly and decisively to develop and implement a sweeping change program called Customer One. Designed to achieve market differentiation and enhance employee satisfaction, the ambitious business transformation strategy sought to strengthen the bank’s brand identity and help the bank become more customer-focused and performance-oriented. Apart from the Bank's on-going support in extending loans to small and medium-sized enterprises, SCB has also joined with the government and private sectors to set up various activities in support of SMEs, such as radio programs, exhibitions, seminars, advice on investment opportunities and SME fairs to promote the distribution of quality SME goods. In addition, the Bank has SMEs Online services, which allows SME customers to conduct financial transactions with the Bank through their personal computers.

 

 

HSBC

HSBC’s strategic direction reflects its position as ‘the world’s local bank’ with its uniquely cosmopolitan customer base. Group strategy is aligned with the key trends shaping the global economy. HSBC recognizes that emerging markets are growing faster than developed economies, world trade is expanding at a greater rate than GDP, and life expectancy is increasing virtually everywhere. HSBC is, therefore, reshaping its business by investing primarily in the faster growing emerging markets and, in developed markets, focusing on businesses which have international connectivity. The first half of 2008 saw the most difficult financial markets for several decades, marked by significant declines in profitability throughout much of  industry, with consequent recapitalization and restructuring as the HSBC was not immune from the turmoil.

 

 

 

Financial strength maintained

HSBC’s commitment to maintaining its financial strength is unwavering. HSBC remains both strongly capitalized and liquid. The tier 1 capital ratio was 8.8 per cent and tier 1 capital grew by US$6.2 billion during the period. We have maintained our key credit ratings, generated good profitability in adverse market conditions and continued to focus investment on our strategic priorities. The principal concerns in this environment have been risk management, strict cost control, supporting customers and continued investment to support long-term strategic ambitions in broad-based and resilient revenue streams continue to provide stable platform from which to achieve strong, long-term performance. The economic and financial environment in the first half of the year deteriorated progressively. In the major developed economies where we operate, economic growth slowed as asset prices, particularly of residential property, declined; this in turn affected consumer confidence and hence spending. In credit markets, illiquidity remained a major issue, with trading volumes low and no sign of resumption of normal activity levels in the securitization markets.

 

 

 

 

 

 

HSBC’s strategic direction reflects its position as ‘The world’s local bank’, combining the largest global developing markets banking business and a uniquely cosmopolitan customer base with an extensive international network and substantial financial strength. The Group’s strategy is aligned with key trends which are shaping the global economy. In particular, HSBC recognizes that, over the long-term, developing markets are growing faster than the mature economies, world trade is expanding at a greater rate than GDP and life expectancy is lengthening virtually everywhere.  HSBC’s strategy is focused on delivering superior growth and earnings over time by building on the Group’s heritage and skills. Its origins in trade in Asia have had a considerable influence over the development of the Group and, as a consequence, HSBC has an established and longstanding presence in many countries.  HSBC is progressively reshaping its business by investing primarily in faster growing markets and, in the more developed markets, by focusing on businesses which have international connectivity. Central to these reshaping activities is a policy of maintaining HSBC’s capital strength and strong liquidity position.

 

 

 

 

 

 

 

 

 

 

 

HSBC FINANCIAL STATEMENT

 

 

Depreciation, amortization and impairment ................................................ 1,766 1,184 1,338

Gains arising from dilution of interests in associates ................................. – (1,076) (16)

Revaluations on investment property .......................................................... (27) (48) (104)

Share-based payment expense .................................................................... 427 413 457

Loan impairment losses gross of recoveries ............................................... 10,436 6,635 11,547

Provisions for liabilities and charges .......................................................... 107 282 707

Impairment of financial investments .......................................................... 418 18 86

Charge for defined benefit plans ................................................................. 234 342 385

Accretion of discounts and amortization of premiums ............................... (461) (392) (57)

12,900 7,358 14,343

Change in operating assets

Change in prepayments and accrued income .............................................. 2,294 (2,280) (2,789)

Change in net trading securities and net derivatives .................................. (29,675) 10,487 (15,459)

Change in loans and advances to banks ...................................................... 1,605 (357) (8,565)

Change in loans and advances to customers ............................................... (76,452) (66,739) (65,147)

Change in financial assets designated at fair value .................................... 2,923 (5,872) (7,488)

Change in other assets ................................................................................. (1,826) (924) (11,405)

(101,131) (65,685) (110,853)

Change in operating liabilities

Change in accruals and deferred income .................................................... (4,219) 547 4,572

Change in deposits by banks ....................................................................... 20,947 29,661 2,933

Change in customer accounts ...................................................................... 63,277 84,496 115,310

Change in debt securities in issue ............................................................... (16,522) (1,086) (11,403)

Change in financial liabilities designated at fair value ............................... (181) 5,755 6,549

Change in other liabilities ........................................................................... 6,093 3,875 8,886

69,395 123,248 126,847

Cash and cash equivalents comprise

Cash and balances at central banks ............................................................. 13,473 16,651 21,765

Items in the course of collection from other banks...................................... 16,719 23,152 9,777

Loans and advances to banks of one month or less .................................... 244,608 220,136 232,320

Treasury bills, other bills and certificates of deposit

less than three months ............................................................................. 28,067 32,684 41,819

Less: items in the course of transmission to other banks ........................... (15,329) (20,339) (8,672)

287,538 272,284 297,009

Interest and dividends

Interest paid ................................................................................................. (31,752) (31,002) (32,624)

Interest received .......................................................................................... 53,945 47,423 55,970

Dividends received ...................................................................................... 1,339 1,426 407

 

 

 

 

 

 

The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history rich in variety and achievement. The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 in Hong Kong and Shanghai to finance the growing trade between China and Europe.  The inspiration behind the founding of the Bank was Thomas Sutherland, a Scot who was then working as the Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company. Then, HSBC helps SMEs grow as in addition to financial services, HSBC helps small and medium-sized enterprises grow their business by becoming more profitable and productive as well as by providing counseling services. Supported by the Business Environment Council and the Hong Kong Council of Social Service, the Living Business program have ideal components such as the annual HSBC Living Business Awards recognizes socially and environmentally responsible SMEs in Hong Kong, through seminars where SMEs can get practical advice on sustainable business practices and the website which provides information and advice on a range of corporate responsibility issues  The Bank provides various counseling services to help SMEs develop and grow their business. Since 2001, HSBC has supported the Business Advisory Service program organized by the Hong Kong Trade Development Council.

 

Financial Statements

Indeed, objective of financial statements is to provide information about the financial strength, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions and it should be understandable, relevant, reliable and comparable. Reported assets, liabilities and equity are directly related to an organization's financial position. Financial statements are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently. Then, SCB and HSBC require financial statements to make important business decisions that affect its continued operations. Financial analysis is then performed on these statements to provide management with a more detailed understanding of the figures as these banks are external users can be outside the business but need financial information about the business for diverse number of reasons. They are financial institutions able to decide whether to grant company with fresh working capital or extend debt securities to finance expansion and other significant expenditures.

 

 

 

 

Cash Flow Statements

In financial accounting, cash flow statement or statement of cash flows is a financial statement that shows company's incoming and outgoing money during a time period as the statement shows how changes in balance sheet and income accounts affected cash and cash equivalents, and breaks the analysis down according to operating, investing, and financing activities. As an analytical tool the statement of cash flows is useful in determining the viability of company, particularly there can be accounting standards that deal with cash flow statements. The balance sheet is a snapshot of a firm's financial resources and obligations at a single point in time, and the income statement summarizes a firm's financial transactions over an interval of time. These two financial statements reflect the accrual basis accounting used by firms to match revenues with the expenses associated with generating those revenues. The cash flow statement includes only inflows and outflows of cash and cash equivalents; it excludes transactions that do not directly affect cash receipts and payments. The cash flow statement is intended for providing information on the bank's liquidity and solvency and its ability to change cash flows in future circumstances as well as improve the comparability of performance by eliminating the effects of different accounting methods  and to indicate the amount and probability of future cash flows as involved as the standard financial statement because it eliminates allocations which might be derived from different accounting methods.

CONCEPTS OF FINANCIAL STRENGTH

 

The term “financial strength” is used in this paper to describe the extent to which an entity is constrained by its financial situation in pursuing its strategic goals or policies. An entity is financially strong when it is relatively unconstrained and weak when financial constraints are binding on policy choices. The financial strength of the banks is intimately linked to the successful management of the enterprise. Hence, enterprises with a large market capitalization have either been successful at generating earnings in the past and/or are expected to be profitable in the future. In a competitive market environment, profitability or market capitalization should be correlated with economic efficiency. Thus, these measures of financial strength would reflect efficient production of whatever good or service is produced by the enterprise. In less competitive markets, profitability is less likely to be correlated with economic efficiency and indeed, basic microeconomics demonstrates that a profit maximizing monopolist will produce an output at a lower than socially optimal level and charge a higher than socially efficient price. More generally, short-term profitability may not be reflective of economic efficiency. Random factors which management may not reasonably have been expected to hedge against can impact profitability even if management performance is exemplary and economic efficiency maintained. That said, enterprise financial strength and profitability over an extended period can be said to be accurate summary metrics of the relative efficiency and effectiveness of enterprise performance. Furthermore, what appears to be confusion over micro and macro performance is responsible for a certain lack of general understanding about the importance of central bank financial strength. SCB and HSBC financial accounts do provide useful information on the cost of achieving policy outcomes. Indeed they provide information vital to any discussion as to whether the outputs are being attained at least cost.  The bank deals in financial markets to achieve policy goals, not to maximize its revenues. For this reason the level of operating expenses is a better indicator of the bank’s stewardship of public resources.” In exploring precisely whether financial performance and financial strength of the bank impacts policy performance it must be noted that in a number of countries the bank is financially so strong that it is very difficult to imagine it becoming an obstacle to policy and the focus of the public discussion in those countries is squarely on the micro elements of central bank performance. When the issue of financial strength does arise in those countries, it is difficult to argue that a marginal deterioration in HSBC bank financial strength for instance would be inimical to macroeconomic performance—and indeed in those countries that is correct. For that reason, when central bank losses do occasionally arise there, the debate naturally tends to center not on policy constraints but on the rather remote notion of financial insolvency.

 

 

 

 

SCB and HSBC financial strength is positively associated with good policy performance. Financially weak central banks generate losses which undermine macroeconomic stability and call into question the credibility of their policies. In assessing central bank financial strength a careful examination of the policy regime and the volatility of the economic environment is necessary. Conventional measures of private enterprise financial strength, profitability and capital can be very misleading when applied to banks.

 

METHODOLOGY

 

Research Design

The descriptive method of research was used for this study. To define the descriptive type of research, Creswell (1994) stated that the descriptive method of research is to gather information about the present existing condition. The emphasis is on describing rather than on judging or interpreting. The aim of descriptive research is to verify formulated hypotheses that refer to the present situation in order to elucidate it. The descriptive approach is quick and practical in terms of the financial aspect.  Moreover, this method allows a flexible approach, thus, when important new issues and questions arise during the duration of the study, further investigation may be conducted. 

 

 

Quantitative data collection methods are centred on the determination of the weighted mean of the given statements. When these methods are used, the researcher is usually detached from the study and the final output is context free. Measurement, numerical data, and statistics are the main substance of quantitative instruments (2003). With these instruments, an explicit description of data collection and analysis of procedures are necessary. Quantitative approach is useful as it helps the researcher to prevent bias in gathering and presenting research data. Quantitative data collection procedures create epistemological postulations that reality is objective and unitary, which can only be realized by means of transcending individual perspective. This phenomenon in turn should be discussed or explained by means of data analysis gathered through objective forms of measurement. The quantitative data gathering methods are useful especially when a study needs to measure the perception of the respondents regarding the topic. The purpose of the quantitative approach is to avoid subjectivity by means of collecting and exploring information which describes the experience being studied (2003).  

 

 

 

 

 

The questionnaire was structured in such a way that respondents will be able to answer it easily. Thus, the set of questionnaire was structured using the Likert format with a five-point response scale. A Likert Scale is a rating scale that requires the subject to indicate his or her degree of agreement or disagreement to a statement. In this type of questionnaire, the respondents were given five response choices. These options served as the quantification of the participants’ agreement or disagreement on each question item. The following output was revealed:

 

Recommendations

In this research study, it becomes apparent that SCB and HSBC in their banking strategy is among the vital aspects for SMEs in HK to succeed and meet the goal of having satisfied clients. From this discussion, several important points had been suggested. In order for SCB and HSBC to stay competitive, their pricing strategy must comprise the requirements of the first two of the ten ways in varying the price (see, Appendix two) which are: keep the same price currently charged but give clients greater banking products quality and keep the same price currently charged but give  quantity of a particular item.  In this manner, SCB and HSBC are trying to keep their basic prices for that would meet the demands of the customers regarding music listening.  Great offers with affordable cost have been the basic pricing strategy used because SCB and HSBC knew that there are many competitors in the field.  SCB and HSBC must be able to utilize each chosen business model to generate loyalty among its customers.  They must have the capability of prioritizing their customers giving all they wanted and trying to provide a product that would get them involved in the process.

 

 

 

 

 

 

 

Appendix One

 

Research Questionnaire

Part I.  Demographic Profile

 

Directions: Please fill up in all the necessary information about yourself.  Don’t leave any item unanswered.

a.      Age  ________

b.      Gender

Male ( )                 Female ( )

 

Part II. Perception of the Study

Direction:       Check the number corresponding to your answer

 

                        5          -           Strongly Agree

                        4          -           Agree

                        3          -           Uncertain

                        2          -           Disagree

                        1          -           Strongly Disagree

 

 

1. Perception of Respondents Regarding SCB and HSBC

 

Statements	5	4	3	2	1
1. With respect to banking strategy, SCB and HSBC has been able to initiate efficient and effective strategy to meet the needs of the customers.
2. Staff or employees understand the mission, vision, and goal of their present organization as part of their efficient finance strategy
3. SCB and HSBC adopts a financial driven strategy to satisfy the needs of the clients.
4. HK banking industry handles customer relations effectively.
5. With the help of the current SME realization, SCB and HSBC enables to understand and reach out to the needs of clients
6. The management of SCB and HSBC address the need to cope with different financial statement for finance strength and development.
7. The banking management does respond to such ample need to have qualified and competent auditors and finance personnel as part of the business strategy.
8. SCB and HSBC used efficient banking communication approach to satisfy customers.

 

 

 

 

 

 

 

 

 

 

 

 

Appendix Two

 

Examples of Ten ways to vary the Price

Keep the same price currently charged but give the customer greater (or lesser) product quality.

Keep the same price currently charged but give the customer a smaller (or larger) quantity of a particular item.

Change the time of payment, such as by allowing a customer four months to make payment.

Offer a rebate or a dollars-off coupon.

Provide cash, quantity, and/or trade discounts.

Charge different prices to different types of customers.

Charge different prices based on the time of day, month, or year.

Offer to accept a trade-in from the customer.

Accept partial or full payment in the form of goods and services instead of money

Bundle the product or service with other products and services and charge a single price lower than the combined individual prices.

 

 

 

 

 

http://moneycentral.msn.com/investor/charts/chartdl.aspx?Symbol=hbc

 

 

 

http://www.corporateinformation.com/CompanySnapshot.aspx?cusip=C82641970

 

 

Principles of Medical Ethics

MEDICAL ETHICS
Table of Contents

 

I.      Introduction.. 3

II.     Medical Ethics.. 4

III.        Principles of Medical Ethics.. 5

A.    Salus aegroti suprema lex: The Best Interest of the Patient. 5

B.    Primum non nocere: Do no Harm.. 6

C.    Voluntas aegroti suprema lex: Right to Self-Determination. 7

IV.       Ethical Issues.. 8

A.    The Issue of Life. 8

1.     End-of-life. 8

2.     Beginning-of-life. 9

V.    Conclusion.. 9

VI.       References.. 10

 

I.        Introduction

The medical profession is considered to be one of the noblest professions known to man. Practitioners of this area has been curing illnesses and prolonging the lives of people for centuries. It is thus needless to say that the medical profession has a profound implication in the world. Its traditional and even the more cutting-edge innovations have saved thousands of lives and kept the world from experiencing a whole lot of harm and suffering, physically and emotionally speaking. Nonetheless, despite the magnanimity and apparent generousness of the spirit of the medical profession, it is not perfect. One must realise that the profession is still infused by the human element. Hence, it is subjected to the most basic human flaws. In the course of medical history, numerous medical blunders caused by human errors have been accounted for, both technical and ethical. It in this context that manifests the enormity of the responsibilities held by medical practitioners is appended on the practice of their profession. The following discussions shall cover the issue of medical ethics provided for medical practitioners. A basic description of these elements shall be provided below. In the same manner, certain medical issue shall also be given to highlight the problems encountered by the individual medical practitioner. The arguments and observations attached in the paper shall be supported by the existing literature on medical ethics. Moreover, recent reports on the medical profession shall also be added into the discussions to support the claims of this paper.

 

II.      Medical Ethics

The concept of what is ethical is pluralistic. Arguments on whatever they consider are appropriate and what is not varies in every society. This mans that what is regarded as ethical is influenced by certain elements that are present in a particular culture. In its simplest sense, ethics studies everything that involves morality. More specifically, it involves the reflection of decisions and behaviour of specific individuals primarily on the value dimension of these aspects. (Zussman 1997, 171) There have also been instances where the concept of morality is used interchangeably with the concept of ethics. The problem is that the two are completely different terms. Ethics is plainly implicated as the manner of knowing what is accepted as good and bad. On the other hand, the concept of morality deals specifically on actually doing what is considered ethical.

Hence, in the area of medical ethics, it is deemed as the manner of knowing what is accepted and appropriate in the area of medical profession. In the context of medical ethics, it is considered as a major area of applied ethics. This means that it involves primarily the consideration of values and morals which directly influence the practice of the medical profession. (Montgomery 2001, 36) It addresses the moral issues in the practice of medicine. In addition, it is important to take note however that the area of medical ethics does not only apply in the clinical aspect of the profession, but also in other fields like research and the pedagogical areas of medicine. Though closely related, the area of medical ethics is often mistaken with the idea of bioethics. The latter is concerned mainly with the moral issues of recent improvements in biological sciences whereas the former points to the general practice of medicine. The following discussions will discuss the specific tenets inherent in medical ethics.

III.    Principles of Medical Ethics

As pointed out in the earlier part of this paper, the context of medical ethics is subjected to a pluralistic and multicultural environment. It is this possible that specific elements of medical ethics may not complement a specific set of cultural standards of a specific set of norms in a particulate social setting. The discussions below shall cover the more general maxims that would readily be applicable in any society.  

A.    Salus aegroti suprema lex: The Best Interest of the Patient

The maxim pointed above plainly defines the ethical requirement of beneficence. In its roughest translation, the said maxim point to the obligation of the medical practitioner to “do good.” (O’Neal 2002, 35) In a profession where the industry rests mainly on the care, this should be inherent to the medical practitioner. Not that it is an indispensable element in the practice of the said profession, the inclusion of such an attribute to the individual physician or health worker would perform their respective jobs more effectively with the guarantee that the patients will be satisfied with the services rendered to them by these individuals. In a more practical sense, it is very unlikely that the beneficence would be absent to the common medical practitioner. (Cassel 2000, 12) Normally, those that go into the medical profession have the natural drive to help their fellow individuals. Their motivation to pursue a career in medicine or in healthcare all boils down to noble intention to heal and rid the world of any physical suffering. Though there has been account of psychological disorders of medical practitioners particularly in “overly helping” their patients despite the lack of the actual need, these are mostly isolated cases. (Benn and Boyd 1996, 222)

 

B.     Primum non nocere: Do no Harm

The Latin maxim above translates to “first, do no harm.” This is known primarily in medical ethics as non-maleficence. (O’Neal 2002, 35) One of the most common instances on which this maxim is in effect is the need for competence on the part of the medical practitioner. This manifests the obligation of each and every individual seeking to have a career as a medical practitioner to seek the best possible education they require so as to meet the standards of needed for actual practice. In the same regard, one must realise that the medical profession is a dynamic field. (Benn and Boyd 1996, 222) Developments take place at an exponential rate. This also obligates the common medical practitioner to keep abreast of all the developments in the processes discovered as well as the innovations that emerged to aid professionals to further improve the services that they render to their respective patients. Another element required in the realisation of this ethical requisite is the compassion of each and every practitioner. (O’Neal 2002, 35) Basically, this points to the identification of the practitioner on the distress felt by their patients. In the same regard, it is presumed in this level of identification that a greater desire to provide relief for the patient on the part of the practitioner is increased. At some point, one must realise that this requirement is one of the most basic of human emotion. Unless the practitioner is able to expressly manifest this attribute, then he/she have no business taking on the glory appended to the titles bestowed upon them by the society. Essentially, it is in this area that most of the ethical issues on the medical profession materialises. The latter part of this paper shall cover these ethical issues on the medical profession.

C.    Voluntas aegroti suprema lex: Right to Self-Determination

The maxim provided for above focuses on the autonomy of both patient and the physician to make decisions pertaining to their personal matters. On the part of the medical practitioner, the right to self-determination is based on the clinical autonomy with respect to the treatment that they provide to their patients. (Mantz 2002, 359) It is the freedom to choose what type of medical standard that they choose to implement with their practice. In some national regimes, the right of self-determination of the physicians are controlled by the state. This is tied to the attempt of the state to impose to the physicians and other healthcare professionals to strictly adhere to the previously mentioned maxims above. Nonetheless, the autonomy of the medical professionals is among the most revered privileges and rights in the said field. Another area pointed out in this ethical attribute of medical practice is the autonomy of the patient to decide the treatment carried out on them. (Osman and Perlin 1994, 245) In essence, this maxim highlights the patients being the ultimate decision makers on matters that affect their well-being. The rationale of this ethical requisite rests on the realisation that the healthcare profession tends to display a paternalistic attitude in the treatment of the patients. In a sense, this serves as a deterrent for practitioners in abusing their authority and the dependence of the patients on their professional knowledge. (Wesley 1996, 115) It is in this maxim that concepts of informed consent as well as confidentiality come up on a regular basis. Cases pertaining to the acquisition of informed consent as well as the sufficiency of the information given have hounded the medical community in the past years.

 

IV.   Ethical Issues

Medical ethics, like any other are subject to variety when immersed with factors like culture and other social standards. This variation tends to be adaptable in some cases but there are instances where issues arise because of the differences of accepted standards based on the social norms of a particular place. The following discussions shall highlight these issues.

A.    The Issue of Life

1.     End-of-life

In this area of medical ethics, the issues range from the prolonging of the lives of the patient to its actual termination. In the first element, prolonging of life could intimate the use of machines to continue resuscitation and even the use of experimental procedures. (Callahan 1992, 52) Normally, such use of machines is induced to aid in the respiration of the patient. On the other hand, experimental procedures signify the use of organs of species other than that of a human individual. However, the more controversial element of this issue is the use of euthanasia or inducement of termination of life through medical means.

2.     Beginning-of-life

The beginning of life issue also has its fair share of controversial issues. The news has consistently shown attempts of civic groups to inform the public about their stand on issues like pro-life issues. (Panicola 1999, 723) These issues amount to certain processes like contraception, the use of artificial insemination, and abortion. Basically, these are items that point to the right to life of the unborn child. The problems arise in instances where certain states allow for the termination of the foetus. The issue still is unresolved on whether the unborn child’s right should be considered or the right to choice of the mother. In this context, states have taken a hand in dealing with this ethical issue to help medical practitioners decide as these actions will thus have legal consequences.

V.     Conclusion

The duties and responsibilities of the medical practitioner is the crux of medical ethics. The issue on this regard is that despite the express provision of these liabilities, responsibilities and rights are also bestowed on the part of the medical practitioners. As stated above, it is comforting to know that the people in this line of work have encountered a whole lot of issues, anomalies and predicaments since the inception of medicine. This means that the field of medicine have accrued a great deal of experience as well as the necessary wisdom to address these problems head-on. Aside from the technical elements of the profession, medical practitioners are also guided by medical ethics. As seen above, these are predominantly based on traditions and are subjective in nature. Thus, conflict is always a recurring element in the conduct of the profession.

Based on the discussions above, one is led to believe that the bulk of the responsibilities and ethical requirements in the medical profession depend on the capacity of the individual practitioner to relate to his/her views and the views of his/her patients. Evidently, the views of the practitioner are far different from the patients as the latter tends to submit his/her welfare to will of the practitioner. It is in this situation that the emergence of conflict may take place. All in all, medical practitioners are given the task to bear the responsibilities appended to the authority and their supposed power over their fellow men. They must recognise that the encroachment of such ethical standards will invariably affect how society regards one of the noblest professions in the world.

Your main task is to develop an essay about an important problem in health sociology

 

   Major written assignment

 

Individual assignment

 

Value = 35%

 

Word length: 1500 – 2000 words

 

 

Your main task is to develop an essay about an important problem in health sociology. You are required to develop an argument that includes a wide range of possible explanations for a complex health and social problem. You need to explore the complexity of the issue and to demonstrate sound understanding of the multiple ways in which social, cultural, and personal factors influence health, behaviour and/or health care. Your essay must show evidence of systematic, scientific research through reference to academic peer-reviewed journal articles, books and book chapters (websites summarising research findings, such as might be found on government or NGO websites or other sites providing health information should NOT be used as sources of “evidence” in your essay).

 

Your assignment should contain the following elements (and include the headings shown below as sub-headings in your assignment):

 

Introduction

Provide a brief introduction to the topic, briefly outlining the importance of the topic and orienting your reader to the direction/nature of your argument.

 

Background

Provide available statistics or other data (eg morbidity and/or mortality data) which clearly identifies the relevance of your chosen topic to population health and why it is important within the field of public health or related disciplines.

 

Discussion

Examine the topic in relation to the following:

• Summarise what we know about the cultural, social, personal or other factors related to this issue.

• What are some of the strengths of the evidence related to this topic?

• What are some of the weaknesses and/or limitations of the available evidence?

 

Conclusion

Write a paragraph which outlines the conclusions you have drawn from your investigation and consider the extent to which sociological thinking provides answers about the topic. Discuss the implications of the evidence and theoretical perspectives you have considered in your essay.

 

See the marking criteria sheet on page 4 or the marking scheme being used for the major assignment.

 

 

 

 

 

 

Please note:

 

1. Your assignment must be written in accordance with QUT guidelines, as identified in the QUT Cite/Write document, using the APA referencing style.

 

2. Articles and book chapters cited should be recent (at least 10 sources are to be used, preferably those published within the past five years). If using sources published prior to five years ago, you will need to highlight the importance of this particular evidence within the text of your essay.

 

3. Word length should not exceed or fall below the required word length by more than 10% (200 words). Tutors will be advised not to read beyond 2,200 words. Any sections of an essay that are beyond this limit will gain a mark of zero.

 

4. Do not underestimate the time required for writing this assignment and ensure that you manage your time in order to allow for discussion with tutors, making revisions, editing and formatting. You are advised to do the final proofreading of your assignment from a hardcopy, and not an electronic version.

 

5. *An additional form must be completed by each student who chooses to write the major assignment as a group, and completed forms for all group members MUST be enclosed in the group’s assignment folder when it is submitted to Assignment Minder (see pages 5 and 9 for details).

 

 

 

Major essay topic

 

1.     Who is to blame for childhood obesity? Explain with reference to structuralism and individualist sociological theories.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PUB209 Marking Criteria Sheet for the Major Written Assignment

Student name/s:…………………………………………………………………………….. Marker:………………………..Date:…../…../08

           

Grade	7					6			5			4					3	2					1
Marks	10		9		8			7			6			5		4				3		2		1	0
Introduction (20 marks)
Introduces topic, clearly identifying the nature of the problem/issue
Introduction identifies the assignment as being sociological in orientation
Background (20 marks)
Importance of the topic to population/public health is highlighted
Data/statistics that demonstrate the importance of this issue are provided
Discussion (30 marks)
A wide range of sources are used to demonstrate the range of Sociocultural and other factors that are directly or indirectly involved in this issue
Discussion demonstrates the ability to analyse, synthesise and report research evidence related to the topic/issue
Strengths and weaknesses of the available evidence are identified and discussed
Conclusion (10 marks)
Provides sound conclusions, and highlights the implications of your argument and the evidence cited
Marks	10	9		8			7			6			5		4				3		2			1	0
Quality of written presentation (10 marks)
Adherence to guidelines for presentation; correct syntax, grammar, and spelling used throughout
Referencing (10 marks)
Quality of in-text referencing and reference list
Mark :                   /100 (weighting 35%)

Comments:

 

Statement of Contribution to Group Assignment*

(*Separate form to be completed by each group member)

 

 

I (insert your name)___________________________________confirm that I have met the necessary requirements for the group written assignment submitted by myself, _______________________________, and____________________________________ (3^rd group member if applicable). My contributions to the group assignment are identified below (please tick box where applicable):

Compulsory contributions:

 

q Literature searching

 

q Accessing academic journal articles, books or peer-reviewed materials

 

q Participation in discussions about the argument presented in the assignment (ie intellectual input) and the structure of the assignment

 

q Proof reading and editing of final draft of assignment

 

Other contributions (as agreed between yourself and other group members):

 

q Writing section/s of the assignment -  q Introduction

 

                                                                                                q Background

 

                                                                                                q Discussion

 

                                                                                                q Conclusion

 

q Creation and/or formatting of tables, figures, graphs, etc.

 

q Other (please describe)__________________________________

 

 

Signature:__________________________

 

 

Date:_______________________________

 

Transportation has played a part in human beings affairs over the years

Executive Summary

Transportation has played a part in human beings affairs over the years. It gave man a change to travel to different places. Transportation also provided man with the capability to transfer his/her goods, products, materials and belongings from one place to another without experiencing many difficulties. There are many kinds of transportation one of which is automobiles or cars. A company that sells cars and its parts in the US is Toyota Motor Sales USA. Inc. (TMS) The paper takes a look at the company and its background. The paper will also evaluate TMS's system of measuring, evaluating, and rewarding performances of the regional and general managers and whether or not TMS implement the proposal for change.

 

 

 

 

 

 

 

 

 

 

 

 

Case History

TMS and its managers have been discussing a change in organization that will give more responsibility to the company’s regional managers. For those who wanted to pursue the change, they believe that the change would force the regional managers to decide on the success or failure of their region. They believe that the change would reduce the bureaucracy at TMS.  For those who disapprove the change, they believe that the change would force regional managers to focus on short term profits and sacrifice long term commitment to clients.  Regional managers have outmost importance to the firm since they are the ones responsible for dealer related activities; they are also responsible for supervising, training and evaluating their personnel; moreover the regional managers are responsible for achieving sales penetration, customer satisfaction and other activities on operating budget objectives.  The implementation or refusal to undergo change would be vital to the operations and future of TMS and its local branches.

 

1. Measuring, evaluating, and rewarding performances

Developmental organizations embrace performance measurement and evaluation processes that enable employees to become their greatest asset. When managers function as performance coaches, they become trainers, confronters, mentors, and counselors, providing positive feedback and reinforcement to improve skills and competencies that ultimately enhance overall employee performance. Performance measurement and evaluation functions as an integral part of a comprehensive development strategy, although too few organizations subscribe to this philosophy (Gilley & Maycunich 2000). . Hence, the business world overflows with mediocre, stagnant, or failing organizations that stubbornly or ignorantly overlook their employees' potential. Companies believe that well-designed and well-executed performance measurement and evaluation provides an excellent vehicle for promoting continuous employee and organizational growth and development (Gilley & Maycunich 2000). Managers judge their subordinates during formal performance appraisals, evaluating quality, measuring performance, and discussing strategies for improvement and development. Given these responsibilities, it makes sense that managers are held responsible for development (Gilley & Maycunich 2000).  Every employee’s performance are always monitored and evaluated so that the weak spots they have can be analyzed. The personnel’s performance is not only the ones monitored, evaluated and rewarded. Even the regional and general managers undergo performance evaluation.

 

The role of performance measurement and evaluation is to help keep the organization on the operating on a straight and narrow track. The measures are used primarily by business specialists, and the action taken as a result of such analysis may also be exclusively good for the business. Nevertheless, it is also clear that evidence of business problems may occur because of deficiencies in other areas of business operations. In this case, the ratios can provide the company’s director with the information necessary to convince other managers that operating action needs to be taken in order to avoid any company problem. However, the primary role served by this type of performance measurement lies within the province of the business function, and is concerned with the effective and efficient use of the company’s resources (Neely 2002). Performance measurement and evaluation is designed for a company and its personnel to work well together.   Performance measurement and evaluation has the tendency to make it easier for all the employees to work together. Performance measurement and evaluation uses various strategies and techniques to determine the problems of educational institutions and then solve it for them to be united.  Performance measurement and evaluation checks the flaws that cause disunity in a business institution, it then checks for the probable actions that can be used to initiate unity in such organization. The use of Performance measurement and evaluation opens up the lines of communication that will be used by different business institutions so that they can work as one unit. 

 

The regional and general managers are important because they serve as cheerleaders when the company is in good economic shape and they serve as firefighters once the company is in economic turmoil. For this reason there is a need to evaluate and check the performance of regional and general managers. TMS’s regional and general managers are evaluated and measured by Al Wagner, the company’s group vice president for Toyota sales. Wagner uses the performance of a region as a measure of the performance of the regional and general manager. The performances of the regional and general manager are checked through various means that include the balance scorecard. The balanced scorecard have become a fertile field of theories and scholastic research, as times past the balanced scorecard was altered by various individuals depending on the need of the environment. The balanced scorecard was introduced to measure whether the activities of the company is meeting its objectives.  The balance scorecard uses financial and non financial measures.

 

 Wagner makes sure that he evaluates the regional and general managers subjectively.  They are evaluated based on the judgments they have made throughout the year and how Wagner observed the operations of their respective regions.  Four criteria are used as a basis for the Wagner’s evaluation of the general and regional managers. These criteria include total unit sales, market penetration, customer satisfaction and dealer profit.   Wagner doesn’t like to put up rankings of a region’s performance, he rather ranks the performance of the general and regional managers. After evaluating and measuring the performance of the personnel, they are rewarded based on how they performed. Rewards come in the form of bonuses and recognition.   When the regional and general managers perform well they earn bonuses, at midyear they are paid 45% of their projected bonus for the year.  TMS makes sure that they recognize the performance of the personnel. Sales meeting are done once a month to discuss the regional and general manager’s issue with the company’s president and executives.  This strategy causes a good relationship between the middle and top management team.

2. The proposal for change should be implemented

• When the concept of change management first took root, change was treated as a deliberate intervention by specified change agents who set out to design and implement new strategies and operational procedures in order to enhance organizational functioning (Naylor 1996). While some researchers recognize that even planned, strategic change has a procession and emergent character, there is still an underlying assumption in the change management literature that change is top-down and executive-driven. To the extent that change management is now very much associated with downsizing and reductions in headcounts ( 2002).  The change process is not an instant thing that will have an instant effect. It takes a lot of months for the change process to show its result. Organizational change is not just about work processes. It's also about what people feel and believe their hopes and expectations. And these feelings and beliefs are so strong that they can make or break a change effort. All too often, however, managers remain unaware of what their people really feel during organizational change. And it's not because they're bad managers (Butkus & Green 1999).

 

 There are certain companies that can be easily persuaded to fall into competitive traps and problems. These kinds of companies relax too much and are unprepared for changes in its environment. On the other hand there are some companies that know how to be creative enough to revolutionize their strategic thinking and innovate. Revolutionizing a company’s thinking can be good to counter any changes coming.  Various changes come to a company; these changes can be in the form of expansion or the resurgence of more problems. The problems vary on its effect on the firm and its operations. Corporate change will be no easy transition marked by minor modifications of a firm’s current lifestyle and ways of doing business. There is an argument for the need to change fundamental values and beliefs about companies and the world, to thoroughly overhaul and redesign the central production processes of society, to modify market capitalism so that it meets social and ecological objectives. Overall, this is transformative rather than evolutionary change (Benveniste et al. 2000). Usually when a company experiences more problems at shorter intervals this means the company has to undergo changes. In the case of TMS, change will be done because of the desire to bring a better future for the company globally and locally. These changes can bring both benefits for the company. The benefits that the company will acquire from the changes it has made may be present after some time. The changes can bring a better future for the company as long as it is gradually completed.

 

  Organizational changes should be finished with less time wasted and without any knowledge management, information tends to be scattered and disorganized causing more time wasted for the learning process. Organizations with the purpose of starting change need to have good leaders so that the learning process would be uninterrupted and cannot be influenced by outside forces. Outside forces can be in the form of questions about the change process and contradictions from different sectors in the firm. Good leaders can thwart the advances of such forces and can provide answers to the different questions they have regarding the change process. Good leaders can find sources of information that will be of great value to the change process.  They can make decisions that can help the change process to run smoothly and be equipped with appropriate information beneficial to the process.  The change proposal for TMS is to give the general and regional managers more authority and bottom line responsibility.  This kind of change was proposed because the proponents believe that the company had too much bureaucracy in it. They believe that by engaging in change the company can respond at a much faster rate towards local market conditions.  The proponents think that by making the regions into small profit centers, the general and regional managers would be motivated to observe the cost and trade offs of administrative and port functions.  For the proponents of the change proposal, making the regions into small profit centers would further develop the managerial abilities of the general and regional managers.

 

The change proposal should be implemented because the opportunity for growth and success is easier to achieve in smaller sectors.  If there would be smaller divisions of leadership, the general and regional managers can be given more leeway to use strategies that they believe can help the region achieve success in spite of the situation in that environment.   Al Wagner should be the one that will lead in implementing the change proposal because he has an idea on the capabilities and capacities of each general and regional manager and he can give advices on what they will be their next movement. He will give advices based on the capabilities of each general and regional manager. The change process is not an instant thing that will have an instant effect. It takes a lot of months for the change process to show its result. The first thing that will be done on the change process is analysis of the change that will be done and the probable effect of that change. This will take around 3 months. The next process will be determining the methods that will be used to implement the change. This will take 2 weeks. In this process the error free method of introducing change will be used. The third process is implementation of the chosen means to implement changes. This will take 3 to 6 months. In this process the most acceptable means to give additional power to the general and regional manager will be used. The last process is evaluation of the whole change process. This will take 3 months. In this process the problems of the method and the process involved will fixed.

 

Summary/ Conclusion

TMS wanted to implement change in the management of their regions.  For those who wanted to pursue the change, they believe that the change would force the regional managers to decide on the success or failure of their region. For those who disapprove the change, they believe that the change would sacrifice long term commitment to clients.   The change proposal should be implemented because the opportunity for growth and success is easier to achieve in smaller sectors.

Influences of Chocolate Purchasing Decisions Integration of Social

Influences of Chocolate Purchasing Decisions: Integration of Social

Judgment/Involvement Theory

1.0  Title

The working title of this research is initially drafted as Influences of Chocolate Purchasing Decisions: Integration of Social Judgment/Involvement Theory

2.0  Background of the Study

Understanding customer behaviour shall move along with customer expectations, customer requirements and their purchasing trend. Since there are several internal and external factors which impact the consumer buying decision, the consumer buying process is multifaceted. As such, these factors that influence the purchasing decision of an individual is manifested in the stages of consumer purchase behaviour as well as the type of buying behaviour the individual conforms to. Like any other commodity, the purchase of chocolate also kowtows with various influences and factors affecting the consumption behaviour. According to Lambin (1997, p. 175), chocolate is a mass-consumption product that is accessible to everyone. Further, consumers are demanding and desire variety. Making chocolate a luxury product gave confectionery a certain prestige. What give chocolate such status is the hand-made nature of their production and refined decoration.

Chocolates are offered and shared on a special occasion in an atmosphere of warmth. The consumption of chocolate of all categories is associated with pleasure that is connected with the ideas of refinement, the pleasure of taste and gift-giving as well. The strong and powerful taste and specific shapes, the consistency of chocolate that melts in the mouth, the feel of chocolate to the touch are also factors to which consumers are sensitive. The behaviour of the consumer of chocolates considers these factors. Moreover, the particulars do not only point to the physical aspects of purchasing as well as the ethical responsibility that comes with it. The price of chocolate does not inhibit consumers that are after quality; nonetheless, there are also consumers that specially consider the idea that chocolates are pure products devoid of chemicals.

Nevertheless, a vast of theory explains the purchasing behaviour and decision-making of the people. For the chocolate consumers purchasing, this study will utilize the social judgment/involvement (SJI) theory. SJI theory is a persuasion theory proposed by  in 1961. Such theory argues that the degree of personal involvement in an issue determines how the target will evaluate an attempt at persuasion. SJI theory has three basic principles: the latitude of acceptance, the latitude of rejection and the latitude of no commitment. In the first principle, the region of an attitude into which messages that one will accept fall; the region of an attitude into which messages that one will reject fall; and on the third, the region of an attitude into messages that one will neither accept nor reject fall.       

3.0  Objectives of the Study

There are two basic objectives that the research will seek to accomplish. The first one is to investigate the chocolate purchase decisions and behaviors of the people and the second, to integrate the Social Judgment/Involvement Theory with respect to the consumer behaviors and decision-making of the chocolate patrons. On the basis of the data collected and analyzed, the third objective is to propose a series of recommendations.

4.0  Research Plan

Cross-sectional design whereby a combination of quantitative and qualitative data is collected from a variety of sources at a single point in time will be used. The research will operate within the interpretivist paradigm which conforms to the constructivism theory. This theory claims that humans construct meaning from current knowledge structures. The research will begin with an expansive review of the literature (further to the above) which will be the secondary data of the research. This will incorporate the fields of consumer behaviour, consumer preferences, consumer decision-making, factors influencing the consumption, SJI theory and chocolate buying trends and statistics to which the paper will build its foundation on.

Primary research will be carried out through and thus it is likely to present findings that are of significant interest. It is also the best way to establish the accomplishment of the research objectives that the study poses. The first objective will achieved through primary research with survey and focus group interviews as the data collection methods in mind. For the questionnaire, the convenience sampling will be used and the participants of the focus group interviews will be drawn from the survey participants. Questionnaires will be arranged alphabetically, the plan is to collect 300 questionnaires and the 3^rd respondent of the survey questionnaire will be called to participate in the focus group interview.

After the survey and the interview, to accomplish the second objective, literature review will be updated and the responses will be analyzed based on the principles of the SJI theory. The research will meet the requirements of validity, reliability, and generalisability. The research will be carried out in such a way as to not skew the results in any manner.  It is important to appreciate the potential limitations of this research.  Much of the data collected via interviews may be affected by bias, as people may express opinions rather than facts.      

Quality and Customer Loyalty at Hong Kong Cable Television Limited

 

 

 

 

 

 

Strategic Management

 

 

 

 

 

 

 

 

 Service Quality and Customer Loyalty at Hong Kong Cable Television Limited

 

 

 

 

 

 

Abstract

 

 

Keywords:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acknowledgement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

 

 

 

 

 

 

 

 

 

1.0 Introduction

1.1 Background Outline

            Television operators industry in Hong Kong is facing a shift in competitive positions of the two largest cable television companies. In the past years, Hong Kong Cable Television (HKCTV) is the dominant cable television programming operator in Hong Kong controlling around 50 percent of the market. In late 2007, Pacific Cyber Century Works (PCCW) through its Internet protocol television (IPTV) or broadband television showed aggressive competitive stand to close the gap in the market share with HKCTV. Based on the performance of these closely competing firms, the firms tied with a 48 percent market share as 2007 ended. The fast uptake of IPTV in Hong Kong is expected to increase the lead of PCCW by as much as 5 percent with PCCW gaining a 51 percent market share and HKCTV retaining a 46 percent market share in 2008. Forecasts shows that based on current performance trends, PCCW would increase its market share to 54 percent leaving HKCTV with a 43 percent market share by 2012. (CableLabs 2007) This means the greater challenge for HKCTV to enhance its marketing strategy to maintain its market base and draw new consumers because of the close competition with PCCW for dominant position in the market. The competition is occurring in different areas including pricing as well as programming, technological innovation, and customer service that constitute quality of service. PCCW offers a lower price when compared to HKCTV so that the latter needs to bank of service quality to provide value acceptable to consumers as commensurate with the price they pay for cable television as and to provide a value that would distinguish cable television offered by HKCTV with IPTV offered by PCCW. With the present stringent competition that would determine competitive positions in the next years, it becomes all the more important for HKCTV to assess its current internal competencies and external influences to determine areas for improvement that meets the current and emerging demands of consumers. To maintain its dominant position, HKCTV needs to build on a loyal customer base through service quality.

1.2 Rationale of the Research

Determining the position of business firms in terms of service quality has important implication on the degree of customer loyalty. Service quality should be critically aligned with the competitive environment and the expectations of the target market. Reliability, responsiveness, assurance and empathy are business values that foster patronage and profitability. Likewise, corporate branding or imaging is increasingly becoming a vital point of success for companies. As such, the company that recognises the value of service quality not only ensures customer loyalty but also stands out in an increasingly competitive business environment. Since customer loyalty has a strategic purpose, the manner that modern organisation like Hong Kong Cable Television combat the challenges of maintaining high levels of service quality is also crucial.

1.3 Aims and Objectives

The aim of the investigative project is to determine the correlation between service quality of a company and customer loyalty to support strategic decision-making to develop a customer base, expand the market, ensure competitiveness, and increase profit. To achieve this general aim, this paper seeks to address the following specific objectives:

1. To determine concepts and theories explaining the nature and extent of the relationship between service quality and customer satisfaction;

2. To determine the importance of service quality in increasing loyalty among the customer base of Hong Kong Cable Television;

3. To demonstrate the impact of services quality in maintaining loyalty among the existing customers of HKCTV;

4. To evaluate the quality of service at HKCTV that influence customer loyalty; and

5. To analyse the level of customer loyalty among the customers of HKCTV based on the eight determinants of loyalty that also comprise the independent variables of the study.

1.4 Significance of the Study

            The results of the study provides information and insight into the role played by service quality in developing customer loyalty at HKCTV, especially in the context of the fierce competition with IPTV making it crucial for HKCTV to focus on building brand loyalty to prevent switching by focusing on quality enhancing activities. The study also benefits other service industries by providing an understanding of the impact of service quality on customer loyalty and the components of customer loyalty greatly influenced by service quality. Results support strategic decision-making on service quality areas to prioritize to maximize loyalty among the customers of service firms.

1. 5 Scope and Limitations

            The study focuses on the relationship between service quality and customer satisfaction, with customer satisfaction comprising the dependent variable and the determinants of service quality as the independent variables. By focusing on this relationship, an in-depth understanding of the correlation is achieved.

            The empirical investigation is limited only to Hong Kong Cable Television, the dominant cable television service provider in Hong Kong challenged by Internet protocol television (IPTV) by another company Pacific Cyber Century Works (PCCW). Focusing on this single company enables the investigation to derive insight from this fierce competitive context so that a decision could mean the loss or maintenance of the company’s dominant position. The competitive context also supports the importance of service quality in achieving customer loyalty.

2.0 Literature Review

            According to Lowenstein (1997), every business gains advantage by adopting the development of customer loyalty as its strategic purpose. It has a constructive effect on company culture, development and bottom line because all action serves the purpose of gaining loyal customers. This makes it important for business firms to understand customer loyalty and the factors that support the achievement of this strategic purpose. Chow and Holden (1997) explain the concept of customer loyalty as about establishing and maintaining behaviour influencing and long-term relationship with customers.

2.1 Dimensions of Customer Loyalty

            Customer loyalty has two dimensions. One is attitudinal loyalty and the other is behavioural loyalty.

Shankar, Smith and Rangaswamy (2000) explained attitudinal loyalty as the higher level of commitment of consumers exhibited in the long-term that develops from loyalty-building activities that extend beyond repeat purchases. Attitudinal loyalty means that customers actually align with the values of the company or brand equity and repeat purchases is just one expression of this. Liddy (2000) considers attitudinal loyalty as a key competitive measure since this reflects the extent that customers exhibit particular key behaviours including repeat purchases. Service firms need to focus on marketing stimuli that develop cognitive or emotional attachment on the part of consumers with the service, brand or company. Baloglu (2002) purported four factors measuring attitudinal loyalty, which includes commitment, emotional attachment, trust, and switching cost so that meeting these measures involves investment in these factors.

Building customer loyalty gives rise to the role of relationship marketing in building customer commitment based on factors that goes beyond the service itself (Bowen & Shoemaker 1998). It is also crucial for business firms to understand commitment, which is defined as the enduring willingness of customers to sustain a relationship with the company based on value (Moorman Zaltman & Deshpande 1999) to constitute the basis of the emotional attachment (Mattila 2001) to the service, the brand, and the company. Kumar, Hibbard & Stern (1994) stressed that emotional attachment is a more accurate predictor of consumer decisions in the future when compared to the other cognitive factors. Business firms need to focus on activities and value offerings able to stimulate emotional attachment.

Schultz and Bailey (2000) explained behavioural loyalty in terms of the intentions of customers to demand the service again, willingness to recommend the company and its services to their social network, and insensitivity with the prices of the service. This concept is important because it considers the link between providing value to customers and service brand. Behavioural loyalty is important because it has three dimensions. One is cooperation defined as business firms working together with customers to meet common goals (Morgan & Hunt, 1994) or the voluntary desire of customers to support goal achievement of the firm (Bowen & Shoemaker 1998). Another is voluntary partnership or mouth referrals done by customers on their own will (Bowen & Shoemaker 1998). This is achieved when customer feel that they are active contributors to the success of the company (Anderson & Narus 1990). Last is the provision of value that should always be equal or higher than the price. This is important in decreasing the sensitivity of consumers to price or the primary consideration of price as the determinant of repeat demand of the service. (Mooney 2002) By providing high value services, consumers develop the perception that the price they pay for the service equivocates or is less than the value gained. This supports behavioural loyalty because price is not a strong factor in determining a customer loyalty. This is important in firms competing based in differentiation and not on price or firms whose operations do not fit the economies of scale concept. As such, firms need to use value creation to decrease price sensitivity.

            Attitudinal and behavioural loyalty focuses on the different aspects of customer loyalty with the former covering the cognitive basis of loyalty and the latter the observable or physical aspect of loyalty. This means the importance of integrating both dimensions in developing loyalty-building activities and assessing the degree of customer loyalty achieved by business firms.

2.2 Benefits of Customer Loyalty

            Investing in activities that develop customer loyalty affords many benefits to business firms. Chow and Holden (1997) explained that achieving customer loyalty enables the business firm to maintain a customer base, or a group of consumers that regularly engage in services of the company. In addition, customer loyalty also supports the enhancement of brand equity since the pool of regular customers recognises the brand of the company and attaches high value to it. Brand equity then supports the competitiveness of the firms since brand recognition and a customer base are determinants of the extent of competitiveness. Moreover, another benefit of customer loyalty is cost-savings since having a customer base allows the firm to save on the cost of having to draw new customers frequently. The customer base of the firm constitutes its regular and dependable market that contributes to the continuous revenue generation of the company at a lower cost to the company when compared to the cost involved in having to encourage potential customers to try the service and drawing these customers to engage in the service on a regular basis.

            Ducques and Gaske (1997) explained that customer loyalty also supports cost-effective marketing since loyal customers are easier to convince to try new service features. In addition, customer loyalty also becomes less sensitive to future increases in price. Moreover, building customer loyalty also makes customers less sensitive to possible future increases in price. Apart from these, loyal customers are also willing referrals that further expands the pool of loyal customers of the company. This lessens marketing cost because of the free and voluntary advertisement of the company and its services based on word of mouth flowing through the social networks of the company.

            Peppers (1993) propounded that customer loyalty enhances the present and future value of customers of the firm by focusing business activities on strategies that targets the creation and enhancement of value to consumers

through improvements in customer relationship management, the quality of products and services, and other areas of value enhancement. The key to the development of a mutually beneficial relationship is the awareness of the preferences of the customers as well as the present and potential needs or wants of customers in relation to the different aspects of the business. Developing good relations with customers by meeting their needs is important to prevent turnover that leads to the decrease in profits.

            Bowen and Shoemaker (1998) explained another benefit of customer loyalty as steady cash flow for the company. Loyal customers are willing to pay even if competitors offer a lower price or the company increases the cost of its services. Loyal customers are also long-term partners giving the company a stable market in the long-term. By developing a loyal customer base at present, the company ensures its future market, especially with the potential of market expansion through the voluntary advertising of loyal consumers.

            Chow and Holden (1997) further explained that a loyal customer base also benefits the company through lesser issues with customers since loyal customers extend greater understanding of any mistakes or errors on the part of the company. This is because loyal customers feel a part of the operations of the business firm or empathise with the company making them perceive errors or mistakes as inevitable to business operations. In addition, when the business firm applies the practice or have a mechanism that allows front line employees to correct mistakes right there and then, loyal customers could even become more loyal. New customers also appreciate this practice and could become loyal customers.

            Peppers (1993) added that customer loyalty also reflects and builds employee loyalty. In turn, loyal employees can save the company money in a number of ways. The company can save on investments in attracting, hiring or training of new employees because loyal employees are likely to exercise effective and excellent customer service. In addition, the company also retains its pool of trained employees who have gained valuable knowledge of the company’s market. Employee loyalty also supports the continuous learning and improvement in employee performance and customer relationship management leading to further value creation for consumers, in terms of positive and accommodating attitudes towards customers. This means that customer loyalty affects employee loyalty and the other way around so that a cycle of improvement occurs in the organisation through the development of customer loyalty.

            Chow and Holden (1997) further explained that loyal customers have an understanding of the processes and systems of the company through their long and engaging relationship with the company. This means that loyal customers have an understanding of the difficulties, issues or problems experienced by the company and they are likely to express these to the company for purposes of supporting improvement in the company.

            Establishing the benefits of developing customer loyalty then necessitates the determination of the ways of achieving this goal.

2.3 Ways of Achieving Customer Loyalty

            Developing customer loyalty is a process that commences with the establishment of a relationship with consumers based on the values of emotions, empathy and trust. Business firms should focus on creating valuable relationships with customers that extend beyond collecting payments for service delivery. Every point of interaction with customers constitutes a potential point of positive connection. On the part of customers, engaging the services of the company is also a way of developing values. This makes customer service program, which is the venue for interaction with customers, and important aspect of customer loyalty. Employees servicing customer at the point of service delivery and after service delivery have to recognise the value of positive interactions with customers.

            The next step in the process is developing an understanding of the needs and wants of customers and an appreciation of emotional intelligence, which is the ability to perceive and assess one’s emotions and the emotions of the people around them. This knowledge and skill then allows the company to understand the needs and wants of its customers resulting to responsive services and service delivery processes. This highlights the importance of training employees to develop emotional intelligence so they can interact effectively with customers. Training program can also enable employees to determine ways of changing their attitude and behaviour so they know how to react to customers and to respond to customer in a controlled as well as proactive manner to have a controlled environment that fosters positive interaction with customers. By knowing ways of controlling points of positive interaction with customers, the company can succeed in enhancing the nature and extent of relationship it has with customers from positive first impressions to sustained relationship with the company.  

            The last step in the process is influencing the behaviour of customers to achieve improved results. Behaviour modifications are crucial in the development of customer loyalty. This is because positive changes in behaviour are learned. The company has to introduce means of influencing the behaviour of customers to engage the services of the company regularly in the long-term. Achieving this involves incentives and motivational activities such as an excellent customer service, customised service, or discounts and coupon promotions to draw customers and make them develop a deep appreciation and recognition of the value of the service, the brands, and the company. When customers become motivated, they exhibit attitudes and behaviour that constitute lessons for employees on activities or program that work for the different groups of customers and suggest changes in the other areas to ensure the same positive results. By taking cue from the responses and actions of customers, the company can determine what activities to retain and the programs to improve.

            The process occurs in a cycle so that business firms constantly establish and re-establish relationships with current and new customers, learn and update knowledge on customers, and carefully influence behaviour to achieve and expand a loyal customer base.

            Service quality encompasses the benefits of customer loyalty and the means of achieving customer loyalty. This is because service quality is a broad term that covers not only the service itself but also the aspects surrounding the system such as the manner of service delivery, after service delivery, and sustained quality for repeat service engagement.

2.4 Service Quality and Customer Loyalty

            The competitive environment requires customer orientation from business firms (Kotler 1997). This is because the identification and fulfilment of the precise needs of customers results to enhanced customer retention (Day 1994). It is common for business firms to invest highly on customer retention and customer loyalty. The returns of the investment are invaluable given the fierce competitive environment that many business firms and industries face. Achieving customer loyalty could be through improvements in service quality.

            Service quality refers to the judgment of consumers over the firm’s excellence or superiority. Service quality is an aspect of attitude that results from the comparison of the expectations and perceptions of performance of the firm relative to that of a competitor firm (Parasuraman et al. 1988). This implies that service quality is a concept that encompasses not only the nature and value of the service itself but also the value of the service and service delivery on the part of consumers.

            Due to the importance of service quality as a determinant of customer retention and loyalty, conceptualising and measuring service quality generated an ongoing discussion in studies on service management, marketing, and improvement that place emphasis on the salience of service quality in drawing, satisfying, and retaining consumers (Heskett et al. 1997; Schneider et al. 1998; Storbacka et al. 1994). Service quality plays the role of integrating the efforts of the company in the areas of firm service policies or practices in the sequence of service production and delivery to lead to value creation for consumers, satisfaction in service delivery, and customer loyalty (Storbacka et al. 1994; Zeithaml et al. 1996; Heskett et al. 1997; Cronin et al. 2000). Integration role establishes the link between service quality and customer loyalty.

            Measurements of service quality coincide with its components. Measuring service quality involves looking at various variables including: a) tangibles which represents whether the physical facilities, equipment and appearance of the personnel related with the service; b) is reliability which deals with the ability to perform the promised service properly at the first time; c) competence whereby consumers can measure service quality by the knowledge and skills possessed by personnel and their ability to convey both trust and confidence; d) credibility and e) trustworthiness concerned with whether the company always delivers what it promises to the consumers; f) empathy which measures whether the company provides its customers with individualized attention; g) courtesy that deals about customers’ perception on the service provided; and h) communication that delivers the information which the company circulates to the customers about the service offered (Proctor, 2000). These components of service quality that also comprise measures of service quality serve as the means of determining the extent of service quality of a business firm. The higher the degree of achievement of these factors indicates better service quality and better service quality then supports the retention of customers that also amounts to customer loyalty, although customer loyalty involves cognitive factors other than mere retention of customers or non-switching.

3.0 Research Methodology

3.1 Overview

            Investigating service quality and customer loyalty of Hong Kong Cable Television Limited involves the determination of the relationship of the independent variable customer loyalty with a group of independent variables, which are tangibles, reliability, competence, credibility, trustworthiness, empathy, courtesy, and communication. The research would determine whether customer loyalty has a relationship with these variables and if so determine the extent of relationship and draw explanations for the extent of relationship or if not to find reasons for the lack of or weak relationship between an independent and the dependent variable.

 

 

 

 

 

           

            Data requirements for the investigation involve secondary and primary data. Secondary data constitute information derived for a different and original purpose contained in books, journal studies, articles, papers and reports. Primary data comes from the first hand data collection made for the purpose of this study. Primary data collection in the study includes a survey of the customers of Hong Kong Cable Television Limited and interviews with selected respondents. The survey would determine the perspectives of the company’s customers on the firm’s service quality and the degree of satisfaction as well as the degree of customer loyalty while the interviews would provide explanations for the perceptions and assessment of the company’s customers on service quality and the extent of customer loyalty.

3.2 Methods

            On one hand, the secondary sources of data will come from the company’s annual report, published articles, business journals and theses and related studies on quality of service and customer loyalty. On the other hand, primary research involved using the survey strategy, which allowed the gathering of a large amount of data from a sizeable population in an economic way (Saunders et al. 2003). The interview method provides a means of collecting insights or descriptions of experiences of the respondents on a given phenomenon or situation with answers expressed in words and analysed to derive insight and meaning (Saunders et al. 2003).

3.3 Approach

            The study combines qualitative and quantitative approach. The qualitative approach is used to derive accounts and/or descriptions from people that can provide first hand information on the situation or phenomenon being studied (Saunders et al. 2003). The purpose of this approach is to draw in-depth information on a particular phenomenon to derive explanations, interpretations, and generalisations. The study uses qualitative approach to derive accounts and/or descriptions from the customers or subscribers of Hong Kong Cable Television Limited with regard to service quality that affects the extent of their loyalty to the company’s services and the company itself. The quantitative approach is used to draw measurable or quantifiable information on the phenomenon subject of the study (Saunders et al. 2003). This reason for gathering measurable data is to determine the relationship between or among variables through descriptive statistics expressed in the tables and graphs. In the study, quantifiable data is collected to determine the existence of a relationship between customer loyalty and the eights determinants of service quality as well as to determine the extent of the relationship. Information would provide insight into the aspects of service quality that impact customer loyalty the most.  

3.4 Sample Participants

            Towards the end of 2007, Hong Kong Cable Television had 882,000 subscribers. Of these subscribers, 300 respondents were selected to take part in the survey. Targeting 300 survey respondents provides acceptable representation of the subscribers of HKCTV. The selection of the respondents was through random sampling. This sampling method was applied by using the telephone directory listing to look for respondents. numbers are assigned to the alphabetically listed phone book and then numbers are drawn through a random number software. The number picked would correspond to a name in each page of the phonebook. The numbers would be called to ask whether they have cable subscription and whether they are using HKCTV services. If the answer is yes, they would be asked whether they want to participate in a survey. They will be mailed the questionnaire. The questionnaires were then mailed to the subscribers including a letter explaining the purpose of the study and the participation required from them. The mail includes a stamped and addressed envelope to be used in sending back the answered questionnaires.

            The interview follows the completion of the survey. This is necessary to learn about the demographic characteristics of the respondent and identify the respondents that purposively represent the different communities or geographic locations in Hong Kong and income groups. In case, there are too many for each group, representatives were selected randomly to ensure proportional representation. They were contacted through telephone for scheduling of the interview at a latter data or for the immediate completion of the interview depending on the preference of the respondents.

4.0 Data Collection

4.1 Survey

            The survey used a questionnaire, as shown below, composed of two parts. The first part of questionnaire contained demographic information while the second part involved the survey proper. The questionnaire was administered to the customers of Hong Kong Cable Television Limited. In addition, another primary data collection method is interview with selected survey respondents conducted to derive insight on the responses.

Survey Questionnaire

Instructions: Please place an answer on the line or place a check on the line provided following your selected answer.

 

I. Demographic Data

 

1. Name (optional): ________________________________________________

2. Age:

            25 and below_____                          26-35_____               36-45_____

                        46-55_____               56 and above_____

3. Gender:

            Male_____                Female_____

4. Family Income Level:

  below 10,000_____      10,001-20,000_____          21,001-30,000_____ 

30,001-40,000_____      40,001-50,000_____           above 50,000_____

5. Type of Subscription: _____________________________________________

6. Years as a Cable Service Consumer of HKCTV

Less than 1 year_____        1-5 years_____         6-10 years_____      10-15 years

7. Frequency of Viewing:

            24 hours_____          most of the day_____           half of the day_____

            a couple of hours a day_____

8. Favourite Cable Television Channels:

_______________________________     _______________________________

_______________________________     _______________________________

_______________________________     _______________________________

 

II. Service Quality

Instructions: Place a mark on the box representing your rating of the services and service delivery of HKCTV
	Very Low	Low	Moderate	High	Very High
1.equipment & facilities (cable connection and utility services)
2. reliability of service
3. competence of personnel and staff
4. credibility of the company to delivery cable services
5. trustworthiness of the company in service delivery
6. customer service
7. courtesy of service personnel
8. effective communication and information sharing to consumers about existing and future services and service features

 

III. Customer Loyalty

	Yes	No
1. Do you consider yourself a loyal customer of HKCTV?
2. Do you see yourself as a subscriber of HKCTV in the next ten years?
3. Would you refer HKCTV to people in your social circle?
4. Would you pay for quality service from HKCTV?
5. Would you switch to another cable company in the future?

 

4.2 Interview

            The interview questions, shown below, were intended to determine the extent of loyalty of the customers of HKCTV. The first question directly asks the respondents on whether they perceive themselves as loyal to HKCTV or not. The next four questions are intended to support the answers of the respondent by focusing on the factors that constitute consequences or comprise determinants of customer loyalty. The answers of the respondents to these questions would determine not only the extent of loyalty but also the areas in which loyalty is expressed or observed. The interview questions would support the answers in the survey questionnaire.

Interview Questions

1.                  How would you describe HKCTV as a company?

2.                  How would you describe the services of HKCTV?

3.                  How would you rate HKCTV services compared to other cable companies and similar services?

4.                  What issues or problems do you have with the services, service features and service delivery of HKCTV?

5.                  What recommendations do you have on the solutions to these issues or problems?

 

4.3 Ethical Considerations

            The ethical considerations arising in the investigation covers the consent of the respondents to the data collection process and the confidentiality of the information given by the respondents. This could raise concerns on the part of the respondents. In order to allay this concern, the questionnaire includes a letter explaining how their information was obtained, the extent of information obtained on them, the researcher, the purpose of the study, the participation expected from them, and an assurance that personal information obtained would be kept in confidence and used only for the purposes of the study. Answering and mailing back the questionnaires indicates consent and voluntary participation to the data collection process. In addition, protecting the confidentiality of identities of the respondents and the information given would also be assured the respondents during the interview process. These steps are necessary to ensure that the respondents knowingly and willingly extend their cooperation and participation to the research process.

4.4 Data Processing

            The method of data analysis for the qualitative data is deriving and interpreting meaning and deriving implications in relation to the aim and objectives of the study. Results and analysis are presented in text discussions and graphs or charts to facilitate readability. In relation to the quantitative data, correlation analysis determines the existence of a relationship between the dependent and the various independent variables.

5.0 Results, Discussion and Presentation

            Out of the 1,000 questionnaires sent through email and mail, with 230 questionnaires sent through email and 70 questionnaires sent through the post, only 180 returned mostly through email. The data presented below then constitutes the answers provided by the 180 respondents. Based on the demographic characteristics of the respondents, 14 interviewees were selected to represent the different communities or geographic locations and income groups.

5.1 Results

            Demographic information shows that most of the respondents belonged to the 36-45 and 46-55 age groups representing the adult working population and households. More than half of the respondents were males and the remaining are females indicating that cable subscription are take out mostly by the male members of the family usually the head of the family or the primary male breadwinners. Majority of the respondents belonged to the middle-income groups or the middle class and most of the remaining percentage represented the upper income groups. The type of subscription taken usually involve regular or basic cable services but there are also some that also engage in premium cable services. However, cable services are sustained in the long-term with many respondents continuing subscription in a span of 5 to 10 years. The frequency of viewing, for the entire household, ranges from half of the day to most of the day. Favourite channels provide sports, news, movies, and segment programs.

            Figure 1 below shows the answers of the respondents on the survey questions measuring the service quality of HKCTV. The graph shows distinct commonalities in the answers of the respondents in some service quality variables as well as differences in perception in relation to the other measures of service quality. Customers of HKCTV gave competence, trustworthiness, reliability and credibility with the highest ratings in this order so that competence is the service quality feature considered by HKTVC customers as the highest contributor to the quality of its services. Equipment and facilities also received a high rating but there are also a significant number of respondents placing a low and very low rating on this service quality measure. 

 

 

 

 

 

 

 

 

           

            There is a lesser degree of agreement on the service quality measures of customer service, courtesy and effective communication since majority of the respondents gave a moderate rating and the rest of the rating are almost equally divided into the other extreme ends of the rating. This implies that these areas of service quality do not appeal to customers in a positive way as the other measures.

            Figure 2 below shows the extent of loyalty of HKCTV customers. Although the issue of loyalty was asked directly in the questionnaire, other consequences or determinants of customer loyalty were also considered to support the determination of the extent of loyalty of HKCTV consumers. Most of the respondents perceive themselves as loyal customers of HKCTV but there are also a number of respondents that thinking differently so that this could be due to the lack of a solid connection with the company and its services to view themselves as loyal customers even if they have been subscribers for a number of years. Of the four consequences or determinants of customer loyalty, referral received the highest agreement, followed by retention or continuity of subscription, then by insensitivity to price, and lastly by switching.

            Customers think positively about the services of the company to refer this to their social circle. Most of the respondents are also middle class indicating the capacity to pay for cable services provided the price matches the value of service quality. Switching received the lowest number of agreement although majority of the respondents did not think they would switch to another service or company in the future. This could be because of the number of respondents that have not developed loyalty to the company or it could be that even with perceptions of loyalty to the company, customers would consider better service quality in the future even if this is offered by another company.

            Figure 3 below compares the ratings of the customers, considering themselves as loyal and not loyal to the HKCTV, of the eight measures of service quality. The graph was derived by assigning values to the ratings as follows: 1-very low, 2-low, 3-moderate, 4-high, and 5-very high. This means that higher average ratings for the customer groups would yield a higher value while lower ratings for the customer groups would result in lower values. Higher values then mean higher service quality and lower values means lower service quality.

 

 

 

 

 

 

 

 

 

 

            The reddish blocks in the table represent the ratings of the respondents that do not consider themselves loyal to HKCTV while the bluish blocks represents the ratings of the respondents who do not perceive themselves as loyal to HKCTV and its services. It can be observed that the reddish blocks are higher than the bluish blocks indicating higher ratings given to most of the determinants of service quality. This coincides with the high rating for five of the measurements of service quality, which are competence, trustworthiness, reliability, credibility and equipment and facilities, presented in Figure 1 above. This means that for these measures of service quality, there is a difference in the ratings of customers perceiving themselves as loyal and not loyal to the cable company, with loyal customers giving a higher rating for these determinants of service quality as compared to the lower ratings of respondents who do not consider themselves loyal to the company.

5.2 Analysis

5.3 Project Outcome

6.0 Conclusion

6.1 Summary

6.2 Conclusion and Implications of the Study

 

 

 

 

 

 

 

             

 

 

 

           

           

 

 

Motivation Theories and Practice a Criteque

Motivation Theories and Practice: a critique

 

This paper argues on the common idea about motivation as viewed by many managers and documented by  with Broadfield (2005). The following discussion agrees on this statement: motivation “as if it is some sort of medicine that can be dispensed in variable quantities to those who need it most. This is an impossibility.”

 

Motivation theory and its practice are among the most extensive area of study in several fields of specialization from social and applied sciences. Most literatures aim to formulate an all-inclusive body of knowledge ranging from the general concept of motivation up to the industry-based perspectives. Silverman and Casazza (1999) stated that “motivation is a process not a result” (p. 92). By understanding the motivation theories, it also assists HRD to prepare a better structure of training planning and design in an organization. It is fundamental to understand the motivation factor in order to examine the relationship between rewards system and working attitude of the people. According to the expectancy theory, employees expect and need to be rewarded according to the work they do, and will help them to develop their capability, help them to work up to a higher level so that they can be better rewarded. Employees expect organizations to have compensation systems that they perceive as being fair and commensurate with their skills and expectations (Sims 2002).

If the managers understand the employee’s underlying working motivator, it can improve the customer satisfaction in the long run. It is the role of HR Department to implement different kind of rewards system or recognition system in order to maintain the employee and organization morale. Various studies advocated this line of thinking about motivation. There are different perceptions and definitions of “motivation”. Some people might think that motivation is a view of personal trait as some have or some might not have it (Robbins and Coulter 1998). Motivation can be defined as the willingness to exert high levels of effort toward organizational goals, conditioned by the effort’s ability to satisfy some individual need (Robbins and Coulter 1998). Armstrong (1993) also defined motivation will cause people to act or behave in certain ways. Furthermore, Mullins (1999) defines motivation as ‘the degree to which an individual wants and chooses to engage in certain specified behaviours’ (p. 26). From this theory, Mullins identifies four common characteristics which underline the above definition of motivation:

• Motivation is typified as an individual phenomenon. Every person is unique and all the major theories of motivation allow for this uniqueness to be demonstrated in one way or another.

 

• Motivation is described, usually, as intentional. Motivation is assumed to be under the worker’s control, and behaviours that are influenced by motivation, such as effort expended, are seen as choices of action.

 

• Motivation is multifaceted. The two factors of greatest importance are (1) what gets people activated (arousal); and (2) the force of an individual to engage in desired behaviour (direction or choice of behaviour).

 

• The purpose of motivational theories is to predict behaviour. Motivation is not the behaviour itself, and it is not performance. Motivation concerns action, and the internal and external forces that influence a person’s choice of action.

From the definitions mentioned, it can be analysed that motivation is necessary for the growth of the employee in the organisation. The employee starts his/her career through learning, basically the culture of the organisation and his/her responsibilities. Motivation is a vital element to learning because if an organisation does not possess the ability to motivate its employees, the knowledge within the organisation is not practically used to the fullest (Streakier 1999). Thus, in every successful learning organisation, finding the factors that will motivate its employees to partake in continuous learning and to take advantage of this knowledge, accordingly, becomes their aim (Osteraker 1999). Former General Manager of General Electric, Jack Welch uses this approach to empower employees. Through this, little and huge issues that affect employees everyday work behaviours were identified and solved (Slater, et al. 1998). This is fundamentally a great way to identify employees’ needs.

On the other hand, leadership also plays a fundamental part in motivating employees. Today, leadership serves as a critical element of organisational success. In motivating employees to learn, leaders must set a way towards a given goal, inspire, or motivate them to follow (Prewitt 2003). The HR manager should know how to recognise success and how to praise those who deserve praises. Several studies found positive linkage between leadership styles and job satisfaction, except for the initiating structure leadership style, which similarly shows negative effect on job satisfaction (Pool 1997;  2004). Deserving employees can be effectively praised and recognised through awards and bonuses. Developing a program were a particular employee with good performance would be branded as employee of the week can also be a good idea. Of course, this should also come with small rewards to make employees feel that their efforts pay off.

Further, motivation is the interaction between the individual and the situation. Under different situations, individual will respond differently. It all depends on the individual motivational drive or individual needs and varies from situation to situation (Robbins and Coulter 1998).  It also leads motivation treated as a need-satisfying process; an unsatisfied need creates tension that stimulates drives within the individuals. These drives generate search behaviour to find particular goals that, if attained, will satisfy the need and lead to the reduction of tension (Robbins and Coulter 1998). The figure below illustrates the process of motivation.

Figure 1:        Motivation Theory

 

 

 

 

 

 

 

 

 

 

 

 

Understanding the motivation theory and practice is done through useful review of different and popular kinds of motivational theories. There are several types of motivation theories including the best-known and most typical examples are Maslow’s hierarchy of needs, Herzberg’s motivation and hygiene factors, McClelland’s three needs theory, and Vroom’s expectancy theory. These motivation theories are used because of their proven relevance and applicability to the concept of this research. Also, they are the most common theories in relation to employee motivation and reward system.

 

Maslow’s Hierarchy of Needs

Abraham Maslow (1908-1970), a psychologist, created one of the most well-known motivation theories called the Hierarchy of Needs (Fig. 2). Robbins and Coulter (1998) mentioned that Maslow generalized that every human beings exists a hierarchy of five needs, which are:

1. Physiological – Food, water, shelter and other bodily needs

2. Safety – Security and protection from physical and emotional harms

3. Social / Belonging – Acceptance and friendship

4. Esteem – Internal esteem factors like self-respect; achievement and external esteem factors like status, recognition and attention.

5. Self-actualization – Growth, achieving one’s potential and self-fulfilment

 

Figure 2:        Maslow’s Hierarchy of Needs Model

 

 

 

 

 

 

In order to apply an appropriate rewards system in an organization, it is essential to understand the idea of human needs and Maslow’s hierarchy of needs reflect the five general human needs. This theory is based on a progression hypothesis and it called content theory. Content theory seeks to examine the specific factors that motivate behaviours. In Maslow’s theory, people progress up the hierarchy as they successively gratify each level of need.

 

Herzberg’s motivation and hygiene factors theory

Motivation-hygiene theory was proposed by another psychologist Frederick Herzberg. It emphasized that the needs satisfactions are categorized into intrinsic and extrinsic factors. According to Armstrong (1993), motivation can take place in either intrinsic motivation or extrinsic motivation:

• Intrinsic motivation – the self-generated factors and influence people to behave in a particular way or direction.  Intrinsic factors motivate us from within personal interest, desire and fulfilment.  It has long-term and deeper effect.
• Extrinsic motivation – To satisfy indirect or instrumental needs.  It arises from some kind of ‘Do this’ and you will get that motivation.  It has an immediate and powerful effect but will not last long.

To a certain extent, part of the Herzberg’s theory is parallel to Maslow’s theory. It can be seen that the hygiene factors in the lower levels of Maslow’s hierarchy and the motivators in the higher levels. However, unlike Maslow’s hierarchy of needs, Herzberg’s two-factor theory argued that individual needs satisfaction does not process in a hierarchy (Wong, et al. 1999 cited in Brown, et al. 2003, pp. 753). The motivation-hygiene theory needs to hold management not only to provide hygiene factors and avoid employee dissatisfaction, but also provide factors intrinsic to the work itself in order for employees to be satisfied with their jobs. It can be argued that it does not mean that the employee is motivated to learn or work.  From Herzberg’s theory, it encourages the organisation to enlarge and enrich work responsibilities and pay more attention to goal-setting, appraisal, reward and recognition system.

 

McClelland’s Three-need theory

McClelland’s theory of needs that focuses on three needs: achievement, power and affiliation.  Need of achievement means people are striving personal achievement rather than the rewards.  People are highly motivated by challenge and competitive work situation (Stoner, et al. 1995).  Need of power is the desire to have impact or influence or control others.  Need of affiliation is the desire of friendship; prefer to keep good relationship instead of competitive environment (Robbins and Coulter 1998).  In McClelland theory, it contends that people with a high need for achievement make good managers. For instance, people with high need for achievement will eager to obtain feedback on their performance, willing to solve problem and exhibit moderate levels of risk taking (Wood 1992). In view of Herzberg and McClelland’s motivation theories, it shown that both theories are not defined ‘money’ as motivator. It means financial rewards are not the key motivation factor. On the other hand, Taylor (1991 cited in Brown, et al. 2003, pp. 753) disagreed that the need of affiliation is more important than monetary rewards. In earlier literatures, Graham and Kwok (1987 cited in Brown, et al. 2003, pp. 753) was conducted a research in Hong Kong, it found that the primary motivator in Hong Kong is the financial reward while Weaver (1988 cited in Brown, et al. 2003, pp. 753) stated that monetary compensation is the key motivator for Hong Kong’s hotel staffs. Findings argued the extent on how far can financial rewards like money can motivate hotel staff to learn. McClelland three-need theory (Wong, et al. 1999 cited in Brown, et al. 2003, pp. 753) is more focused on different kind of non-monetary human needs. Mayo (1945 cited in Brown, et al. 2003, pp. 753) commented that these three needs are more important than monetary compensation in motivating employees. It is worthwhile to look into the McClelland three needs theory in order to examine the importance of the non-monetary reward system. 

 

Vroom’s Expectancy Theory

The staff’s expectancy cannot be ignored. This is the idea behind Vroom’s expectancy theory. This theory is focused on the personal perceptions and it can reflect the individual concept instead of only concentrated on the monetary reward. Vroom’s expectancy theory of motivation focuses on personal perceptions of the performance process, “the more motivated the worker to perform effectively, the more effective his performance” (Vroom 1970, pp. 229).  Expectancy theory argues that the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual (Robbins and Coulter 1998). Expectancy is the belief that effort leads to performance, for example, ‘If I try harder, I can do better.’  It reflected this theory focuses on the following relationships:

1. Effort – Performance relationship – Individual perceived that exert a certain amount of effort will lead to performance;
2. Performance – Reward relationship – Individual believes that achieve the certain performance level will lead to attainment of a desired outcome; and
3. Rewards – Personal goals relationship – Organizational rewards satisfy individual personal goals or needs.

Figure 3:        Vroom’s Expectancy Theory Model

 

 

 

 

 

 

 

 

According to the expectancy theory, employees expect and need to be rewarded according to the work they do, and will help them to develop their capability, help them to work up to a higher level so that they can be better rewarded (Sims 2002, pp. 7). Employees expect organisations to have compensation systems that they perceive as being fair and commensurate with their skills and expectations. The compensation may, in some cases, act as employee motivators. These compensations that employees receive may be value-added compensation including direct compensation, such as salary, incentives and commissions; and indirect compensation, such as insurance benefits, employee recognition programs, flexible work hours, and vacation benefits (Burke and Cooper 2004). Similar to Maslow’s theory of needs hierarchy, the expectancy theory may also be applied in the organisational context. More specifically, it could possess vital implications with regard to corporate reward system as according to (2001, pp. 43):

·        a clear connection between rewards and performance must be determined;

 

·        the connection between rewards and performance must be relayed to the human resources;

 

·        the rewards must be provided based on performance;

 

·        the rewards must fulfil the specific needs of the employees so as to draw out a high level of motivation; and

 

·        barriers in organizations that hinder excellent performance must be eradicated to ensure motivated behaviour.

 

If the staffs in an organisation believe that it needs to put effort and lead to performance in order to achieve certain rewards and personal goals, reward system could motivate them to learn and work.

            In sum, the concept of motivation includes a lot of factors to consider. The continuous empirical explorations of management authors as well as psychology experts on the varying application of motivation and its theories expose the limitless ability of motivation and its practice to affect behaviour among people. Understanding motivation, may it be as generic or case-specified solution to organisational difficulties particularly on employees involves the knowledge of reward and reinforcement, extrinsic and intrinsic motivation, and self-control. It is argued that motivation is not always applicable to all cases in the organisational setting. The role of the manager including his/her skills to advocate the principles of motivations and use such in advantage is a factor to consider. While it is true that motivation acts as good organisational element when used properly and effectively, the limitations must be identified as people’s diversity is contributory to its effects. The resistance among people based on behaviours and attitudes is always obligatory.

 

 

The Previous year has been challenging yet rewarding for our company

Introduction

            The previous year has been challenging yet rewarding for our company. The company reached new heights with its new sales campaign. New accounts have been acquired and we were able to build strong relationships with our clients. Now more than ever, our attention must be turned to the source of our sustainable competitive advantage – Our People. The employees of this company were the ones that worked and labored towards the achievement of our organizational goals. We need to invest on our human resources. Our people – their knowledge, talents, skills, and abilities are the most important driving force to success. In our continuing commitment to the development, well-being, motivation and satisfaction of our people, we are constantly in the search for a more effective reward system that will best show the organization’s gratitude for their contributions, loyalty, dedication and efforts. As we mark a new chapter of our business, let us endeavor to create an environment where everybody’s contributions are valued and rewarded.

            Now we find our selves in a business environment where competition is intense and the race for labor is fierce. We need to value our human resources if we are to achieve sustainable competitive advantage over our competitors. Organizations do not compete on customers alone. Now originations are also competing for valuable talents. In order for the organization to succeed a reward system that is strategically aligned with the company’s goals and objectives must be established. We must take a more strategic approach to planning our compensation, incentive and benefit program. We must reward employees in ways that will enhance motivation, growth, and productivity while at the same time encourages them to integrate their efforts to the company’s objectives, philosophies, and culture. The company needs to update and modify its existing reward system in order to support our new goals and strategies.

 

Company Background

        XYZ Restaurant is one of the biggest Chinese restaurant chains in the world. The company has different business operations and it has expanded worldwide. Major operations include fast food outlets, institutional catering, specialty restaurants, food manufacturing, distribution and other overseas food and beverage business. XYZ is a premiere Chinese restaurant in Hong Kong that has an impressive experience in food and catering industry. Its expansion has led the company to seek for fresh talents that will make up its people. The company also invests in retaining its current employees who are constantly trained and developed in order to keep pace with the challenges and changes in the business environment.

 

The People at XYZ Restaurant

            The staff at every XYZ restaurant are friendly and war. They are dedicated and energetic. The company properly trains the staff in order to provide quality service and to make every dining experience at XYZ restaurant pleasant and satisfying.

 

Objectives of the Reward System

            The growth of the company means that it will need more people and fresh talents to add to the company’s service staff. The reward system of the company is aimed at:

1. Attracting qualified people to fill current vacancies and future positions in the organization

2. Keeping employees and minimizing absenteeism and turnover

3. Motivating employees in order for them to render high quality service

 

Definition of Terms

Reward        

            A company’s reward system is considered as an important tool in attracting, retaining and motivating employees. A total reward package includes base pay, performance based pay, compulsory employer-provided benefits and discretionary employer-provided benefits. The reward system is made up of compensation, incentives and benefits provided for the employee as a reward for their contribution to the organization (Sims 2002a). Now let us discuss these components of the reward system one by one.

Compensation

Compensation according to Sims (2002a) is the human resources management function that deals with every type of reward individuals receive in exchange for performing organizational tasks. Defined in its broadest sense, compensation is any reward or payment given to a person for services performed. It includes, but is not limited to direct or indirect financial rewards. Compensation encompasses all of the rewards or payments – tangible and intangible, monetary and non-monetary, physical and psychological – that an organization provides its employees in exchange for the work perform (Caruth and Handlogten, 2001 p. 1). The second major component of a total compensation system is indirect monetary compensation or benefits. This component consists largely of items of monetary value an organization provides to employees in addition to salaries and wages, the first component of a compensation system (Caruth and Handlogten, 2001 p. 153).

Incentive

            An incentive is any financial reward given to an employee for accomplishing specific results of a quantitative or qualitative nature. Incentives provide for variable rewards dependent upon the results accomplished, amount of work produced, or measurable performance (Caruth and Handlogten 2001).

Benefits

            Indirect monetary benefits, together with direct monetary benefits are used to attract employees. Indirect monetary compensation also helps a company retain the employees it hires. Benefits provide a sense of security, they improve an employee’s general feelings of satisfaction about the organization (Caruth and Handlogten 2001).

 

 

 

Reward Management

XYZ Restaurant’s Current Reward System

            The current reward system of the company needs to be modified and improved. The reward system was unable to keep pace with the changes that affected the organization.

 

 

Performance Appraisal: Forced Ranking

            The forced-ranking method of performance appraisal requires appraisers to assign a set pf proportion of employees to each of several performance categories (Rudman 2003). The categories that the company uses are top performers; above average performers; average performers and below average performers. This method of performance appraisal is considered as a tool for improving performance. Although this current method is considered effective, there a disadvantages that must be considered and addressed. These are:

1. This method fails to identify whether the employee performs his or job top the required standard, or if the employee is able to achieve job target. Perhaps one of these weaknesses is that it does not clearly determine whether the employee was able to work based in the required standard. It only ranks the employees based on their contribution and work performance.

2. This method will always put some employees on the lower-performing group without considering whether they were able meet the standard.

3. This method of performance appraisal gives way to unhealthy internal competition and weakens teamwork as employees are pushed to protect their positions even at the expense of their colleagues (Rudman 2003).

 

Merit Pay

            Merit pay is now considered as the most popular pay-for-performance scheme. Merit pay is a raise in salary that is based on the employee’s individual performance (Sims 2002b).

            Merit pay is considered as an effective strategy and is used by many organizations worldwide. According to Sims (2002b) when merit pay is tied to performance, the prospect for a merit raise may focus the employee’s attention on the link between performance and rewards (Sims 2002b). However, there are weaknesses that must be addressed. For example, over-reliance on merit pay may not be a wise idea since waiting for a year for a merit raise for an excellent performance may be too long. In addition, when coupled with an ineffective performance appraisal system, the benefits of merit pay may be undermined. The organization needs to redesign the merit pay scheme in order to better align it with the company objectives and goals.

 

Bonuses

            Bonuses can be based on objective goal attainment or a subjective rating. Generally, bonuses are less costly to the employer that other pay increases because they do not become part of employees’ base wages. A major advantage of a bonus plan is that it is based partly on organizational performance. Bonuses can also be used to reward employees for contributing new ideas, developing skills, or obtaining professional certifications. When the skills or certification requirements are acquired by an employee, a pay increase or a one-time bonus may follow (Sims 2002a).

 

Proposed Reward System

Planning for an Effective Performance Reward System

In order to ensure that the pay-for-performance plan of the organization is effective, several measures must be taken. The organization needs to:

1. Ensure that effort and rewards are directly related. The reward system must reward employees in direct proportion to their increased productivity. Employees must also believe that they can actually do the tasks required. Therefore, the standard has to be attainable and the manager and organization have to provide the necessary tools, equipment and training to meet it (Sims 2002b).

2. Make the plan easy to understand. The employees must be able to calculate the rewards that they will receive for various levels of effort easily (Sims 2002b).

3. Set effective standard that will benefit the organization. The standards should be viewed as fair by employees. They should be high but reasonable; that is, there should be about a 50-50 chance of success. The goal should also be specific (Sims 2002b).

4. Guarantee the program. The rewards offered for a particular level of work should be viewed as a contract between the organization and the employee (Sims 2002b).

5. Guarantee a base rate. The employees should be given a safety net by providing them with a base pay (Sims 2002b).

 

Pay-for-Performance coupled with Skills-based Pay

            In order for the reward system to be more effective, the current reward system must be modified. This starts with the modification of the performance appraisal and then followed by the modification of the pay-for-performance scheme. The goal is to integrate performance to the reward system. There is a need to align the performance appraisal process with the pay-for-performance scheme. According to Sims (2002a) pay-for-performance or merit pay is a major motivational device for employees at all levels – managerial, professional, and hourly. In order for it to fully achieve its capacity to motivate employees, the pay-for-performance scheme must be aligned with the performance appraisal.

            In addition to the modification of the pay-for-performance scheme, the organization can also integrate a skill-based pay scheme in the reward system. Skill-based pay according to Knouse (2002) compensates employees for the depth and breadth of skills they obtain that are valued by the organization. The emphasis is on skill mastery rather than on job performance, which is the focus of more traditional pay plans, such as merit pay. Skill-based pay programs tend to be found in high employee involvement organizations, where employees work in teams and actively participate in managing organizational processes. Skill-based pay is an innovative reward system that promotes workforce flexibility by rewarding individuals based on the number, type, and depth of skills mastered (Recardo and Pricone 1996).

            The aim of the skill-based pay is to encourage and reward employees who take the initiative to update their knowledge, skills and abilities. As employees acquire higher level of expertise, the origination must reward them in order to promote an environment of ‘continuous learning’. The skill-based pay, instead of being used as an alternative, will be implemented side by side with pay-for-performance pay. The goal of this strategy is to encourage better performance and continuous learning in the organization.

 

Bonuses for Obtaining New Skills

            In order to encourage the employees to acquire new knowledge, skills and to develop their skills, the management must give bonuses to those that will enrich their skills.

 

Spot Bonuses to Reward Valuable Contributions

            A spot award is a financial award given to an employee literally on the spot as soon as the laudable performance is observed. Spot awards have a sound basis in motivation. For example, to the extent that the rewards are both contingent on good performance and awarded immediately, they are certainly consistent with the expectancy approach, and provide the recognition most people desire (Sims 2002b).

 

Awards and Recognitions

            The aim of awards and recognitions is to make the employees feel valued and appreciated. Awards and recognitions are considered as a part of the reward system. Awards and recognitions are also tools in motivating employees. Immediate recognition can reinforce the effective behavior of an employee and can provide some immediate outcomes to reward the employees’ inputs and efforts. Recognition also underscores the performance-reward-expectancy link, and it helps appeal to and satisfy the need people have to achieve and be recognized for their achievement. LeBoeuf (1991) gave eleven types of employee behavior that must be recognized by organizations and individual managers. These are:

• Solid solutions instead of quick fixes 
• Risk taking instead of risk avoiding 
• Applied creativity instead of mindless conformity 
• Decisive action instead of paralysis by analysis 
• Smart work instead of busywork 
• Simplification instead of needless complication 
• Quietly effective behavior instead of squeaky wheels 
• Quality work instead of fast work 
• Loyalty instead of turnover 
• Working together instead of working against 
• Lack of absenteeism and tardiness (cited in Sims 2002b p. 70).

 

Motivation

Vroom’s Expectancy Theory

            Victor Vroom’s Expectancy Theory examines motivation through the perception of what a person believes will happen. According to the expectancy theory, human motivation is affected by anticipated rewards and costs. An employee will be motivated to work toward a particular goal if it is perceived that a personal need will be satisfied. The employee’s desire for a goal (valence) multiplied by what the organization expects (expectancy) will equal satisfaction and motivation.

            Expectancy Theory helps managers to identify key leverage points for influencing motivation. The following implications are crucial:

• Provide a work environment that facilitates good performance, and set realistically attainable goals. 
• Provide training, support, and encouragement so that people are confident they can perform at the levels expected of them. 
• Understand what people want to get out of work. Think about what their jobs provide them and what is not but could be provided. 
• Make sure that good performance is followed by personal recognition and praise, favorable performance reviews, pay increases, and other positive results. 
• Make sure that working hard and doing things well will have as few negative results as possible. 
• Ensure that poor performance has fewer positive and more negative outcomes than good performance (Sims 2002b). 

 

            Vroom’s Expectancy Theory lays the foundation for redesigning and developing the reward system of the organization. According the to the expectancy theory, employees will be motivated if they believe that performance is connected to rewards. The reward system of the organization must make it clear to the employees that it values the contributions of everyone and that rewards will be given to those that contributes to the success of the organization and to those that are able to show desired behavior and performance level. The performance appraisal is also seen as a tool that can affect employee motivation.

 

Performance Appraisal

            Performance appraisal is the process by which an employee’s contribution to the organization during a specific period is assessed (Sims, 2002b). Performance appraisal is integral to the successful operation of most organizations. During this process, employees are evaluated formally and informally to determine the nature of their contributions to the organization. Appraisal occurs during time periods and in meetings that are scheduled to produce reasoned consideration of contributions, but it also occurs informally as employee contributions are observed, or when an evaluation is brought to the attention of others (Dickinson, 1993).

            Performance appraisal is treated as an evaluation and development tool, as well as a formal legal document. Appraisals review past performance – emphasizing positive accomplishments as well as deficiencies and drafting detailed plans for future development. The performance evaluation also serves a vital organizational need by providing the documentation necessary for any personnel action that might be taken against an employee (Sims, 2002b). The performance appraisal can also serve as a motivation tool as it identifies the contributions made by every employee and determines the level of rewards every one deserves.

 

Performance Appraisal Tools to be used

 

MBO

            Management by Objectives involves a joint determination by subordinate and superior of common goals, major areas of responsibility, and results expected; these measures are used as guides for operating the unit and assessing contributions of members (Miner, 2002). MBO is the best known of result-oriented methods of performance planning and review and, in some form; probably the most frequently used approach to performance planning and review. MBO is a target-setting or results-oriented approach to performance management. It recognizes that employees perform better when they have targets, and even better, when they have participated in setting those targets.

 

Critical Incidents

            Critical incidents focus the evaluator’s attention on those behaviors that are key in making the difference between executing a job effectively and executing it ineffectively. That is, the appraiser writes down anecdotes that describe what the employee did that was especially effective or ineffective. The key here is that only specific behaviors, not vaguely defined personality traits are cited. To successfully conduct a critical-incident appraisal, a rating supervisor must keep a written record of incidents that show positive and negative ways an employee has acted. The record should include dates, people involved, actions taken and any other relevant details. At the time of the appraisal, a manager reviews the record to reach an overall evaluation of an employee’s behavior. During the appraisal interview, the manager should give an employee a chance to offer her or his views of each incident record. The incident method can be used with other methods to document the reasons why an employee was rated in a certain way (Sims, 2002b).

 

Paired-Comparison

            The paired-comparison approach measures the relative performance of employees in a group. The aim of the paired-comparison approach is to identify the best performer in a group. This approach can be useful in measuring the performance of the sales team and identifying the best person to be awarded and recognized. Although this approach has downsides, it must be used solely to identify the best performer and not to make one employee look good at the expense of others. The paired-comparison approach must not be used as a single performance appraisal method. It must be partnered with MBO and Critical Incidents.

 

The Enterprising attribute of man is innate

I.                   Introduction

The enterprising attribute of man is innate. It is based on the drive of man to develop and in the process acquire more wealth. Businesses has come and gone in since the dawn of the modern civilisation. In this day and age, one could not treat any business venture as some form of gambling. In this regard, the modern businessman will not immerse himself to a new venture without first closely consulting the market and research whether it would basically create some sort of sustainable returns on the part of the company. This is basically the intention of this paper, to determine the possibilities present for the business concept that shall be introduced in the market. In doing so, uncertainties shall be diminished significantly and the path of the newly formed business shall have a greater chance of surviving. The following report shall be divided into four major areas of study. The first part shall cover the introductions on the actual problem and the perceived solution proposed by this business concept. This will describe the current market and point out the environment on which this business concept shall operate. The second part shall be discussing the specific aspects of the environment. The market, customers and the industry will be considered with reference to the introduction of the business concept. The fourth part shall discuss the major players, or at least the closest substitute, in the said market. Lastly, the business model strategy shall also be discussed. The arguments and observations provided in this paper are to be supported by relevant studies and existing literature on the topic.   

 

II.                Business Concept: The problem and solution

The fast food industry in Australia is dominated primarily of western companies like McDonald’s, KFC, Subway, and Hungry Jack. These are the leading stores in the metropolitan areas on Australia. Seeing these names, specific products for specific names appears to be synonymous. McDonald’s has its burgers, KFC has its chicken, and Subway has its sandwiches. Looking at it closely, these stores offer products that are basically dry and systemically fit within the formulaic elements provided by the archetypal fast food chain.

Another element to consider is the emerging trend in Australia’s population where it is slowly becoming a melting pot of various race. Asians and other nationals from the Asia-Pacific region has been flocking the continent for intentions of employment and even migration. To this end, a new market has opened in the fast food industry. The only area lacking in the set of alternatives presented above are players who serve exotic cuisines who follows the fast food model.

In the emergence of the new market and the lack of such a company owning that particular niche, this presents itself as an opportunity for business to establish a specific type of fast food chain that will serve a specific exotic cuisine. For this proposal, it is proposed to introduce a chain of stores that would serve Asian cuisines in a fast paced setting. This will give the public a new alternative within the existing fast food industry players in Australia.

 

III.              Market, customer, and industry

For these stores, the target market would be those that live within urban areas of Australia. The target market would be individuals and families. Specifically, the intention of the company is to offer a place where meals are considered celebrations of the family with affordable prices and efficient service. Based on the discussions above, the market in Australia has been consistently been offered by the mundane sandwich-based meals and poultry products. The company offers a new line of products that would be significantly different than that provided for by the existing players in the food industry.

Added to the potentials of success in this field is the fact pointed out earlier pertaining the emerging Asian population in Australia. The emergence of such paying consumers manifests a demand of such dishes that are akin to what they have in their country of origin. Food products like rice recipes, soup and noodles would be the primary products offered in this new line of fast food chain.

However, one of the major drawbacks would be the company being a new entrant in the food industry. The potential is appealing, however there is the constant threat of the numerous existing players to adjust to the changing times and compete directly to its most imminent competitors. There is the possibility that these companies may take on ways to diffuse the company’s entry to the market. In any case, it is understandable that the company will have to build a name first and establish a good reputation in order to realise and consequently maximise the potentials of the newly found market.  

IV.            Organisation and key leaders

The key leaders on this industry are the major brand names in the market. As mentioned earlier, companies like McDonalds, KFC, and Subway are those that dominate the fast food industry in Australia. These companies have successfully integrated their name in the everyday lives of the modern Australian. Purchasing and repurchasing their products would come naturally to these people as they are already a part of the daily routines of the public.

In terms of marketing, these companies dominate mass media with their recognisable insignias and other means of advertisement. These companies, given their wealth in the Australian market, are among those that are able to afford product endorsers like local celebrities or sports icons. This would make their products more of an icon to the public. At some point, one recognises this attribute of the market as the primary barrier for entry.   

Nonetheless, the brunt of this barrier would be felt only if the new entrant would offer the same products and same services to the public. Fortunately, the company will be offering a whole different line of products which these existing players are not offering. This makes the entry of the company in the industry less complex as it would be marketing itself as an alternative to the bland tastes of the products offered by the existing companies. All in all, the company should work on this distinct attribute and develop it as its competitive edge over the existing players in the market.

 

V.               Business model/strategy

 

VI.            Conclusion

The fast food industry has become ingrained with the emergence of globalisation and the demand of a fast paced lifestyle that the modern individual possess. The discussions of the paper offer a new innovation for the Australian market. The introduction of a new line of fast food items allows for alternatives among the consumers in Australia. The discussions above show that majority of the key leaders in the industry are those that have immense financial backing and have a stable brand name that are already have a good recall on the consumers. This makes the entry of the proposed business more complicated.

As it stands, it appears that the company shall have to work doubly hard on its marketing strategy in order to effectively introduce and ingrain the company name in the popular culture of the company. Hence, this paper has established that the first step for the company to attain success in the market is through effective marketing. Though the competition is intense and the consumers deem fast food products as interchangeable, the introduction of the proposed business offers a new alternative for the market with its distinct line of products and a new line of taste that will enchant the mixed cultures of the metropolitan areas of Australia.  

Probelem Definition and Research Questions

TABLE OF CONTENTS

Chapter 1. 1

1.1        Introduction. 1

1.2        Background of the Study. 2

1.3        Aim and Objectives. 4

1.4        Problem Definition and Research Questions. 5

1.5        Scope of the Study. 6

1.6        Significance of Study. 7

1.7        Limitation of Study. 7

Chapter 2. 8

2.0 Introduction. 8

2.1 Intellectual Disability. 8

2.3 Obesity. 10

Chapter 3. 15

           

 

Chapter 1

PROBLEM AND BACKGROUND OF THE STUDY

1.1  Introduction 

It has been noted that people with disabilities, are often face more barriers to physical activity than those able-bodied individuals. In adults, one of the factors that hinder them to achieve optimum health is because there are some adults who have intellectual disabilities. Part of this inability is the incapability of these adults to do some physical activity.  Different researchers have mentioned the physical activity for adults with intellectual disabilities is important to let them maintain a healthy lifestyle. This is because participation in regular physical activity may help reduce the rate of occurrence of heart disease and cancer (Stalker and Harris 1998). The same relationship also exists between disease and physical activity, such as exercise because with increased levels of physical activity, there is a decreased prevalence for an individual to develop certain diseases (Draheim et al 2002). Currently, there is strong evidence that physical activity has powerful effects on mortality, and with other fatal diseases, such as coronary heart disease or CAD, blood lipid profiles, and colon cancer.

            Rimmer and Braddock (2002) stated that regular physical activity could help reduce high blood pressure, obesity, type 2 diabetes, stroke, and osteoporosis (Stear 2003). As such, it can be perceived that regular physical activity helps an individual to have a good health, having a sound body and sound mind. Given this, it can be emphasized that regular physical activity for individuals with intellectual disabilities can produce great effects. Adequate physical activity for adult with intellectual disabilities depends on having a well-rounded program that encompasses all aspects of improving health and preventing diseases. Such a well-rounded program must include cardiovascular fitness, and muscular strength and endurance, which may influence their quality of life in several ways. It can also be used to improve their self-image, self-esteem, physical wellness, flexibility, posture, and maintenance of body composition (Messent et al 1997; Hillsdon et al 2005). Thus, in this sense, not only an adequate physical activity program will produce physical and health improvements on the part of the individual, but can provide psychological and emotional benefits as well.

            Although many researchers and clinicians have been aware of these, it is still important to conduct this study to determine some of the barriers that hinder adults with intellectual disabilities.  In this particular study, the focus would be on the relationship between obesity and downs syndrome. Primarily, the main goal of this dissertation is to analyse if there is a reality with the notion that if an individual have Down ’s syndrome, such individual are more prone for becoming obese.

1.2  Background of the Study

            In relation to this is the fact that physical activity is related to health. The emphasis of this relation is based on the changing lifestyles of individuals during the course of human development. It has been reported that the analysis of evolutionary history in relation to current lifestyles stresses the central issue, indicating that human beings nowadays are living their lives, at least in developed countries, in ways that are largely unhealthy and different from what human beings have done for most of the past. It was suggested that four evolutionary periods are essential in considering the relationship between physical activity and health. The first evolutionary period is the pre-agricultural period, which is up until about 10,000 years ago, and characterized by hunting and gathering activities. In this particular period, exercise levels were high and diet was low in fat. The second evolutionary period is the agricultural period, which happened 10,000 years ago until about the beginning of the 19^th century, and was characterized by practically high physical activity levels and relatively low fat diets, similar to the pre-agricultural period. However, the fat content during this period probably increased. The third evolutionary period is the industrial period, which was from 1800 to 1945. This period gave way to the development of the ‘industrialized society’, along with social problems and issues, such as over-crowding, poor diet, poor public health measures, and inadequate medical facilities and care. In this particular period, infectious diseases were responsible for a high proportion of premature deaths, such as the bubonic plague. However, this trend was reversed in the fourth and last evolutionary period, the nuclear/technological period, which was identified as from 1945 until the present time. The major improvement in this evolutionary period is evident in its public health measures and medical advances, making infectious diseases less common in developed societies. However, the causes of health problems only shifted, making premature mortality being caused by changes in terms of lifestyle. Due to the change in lifestyle of many individuals around the globe, different health problems have emerged, including coronary heart disease, with risk factors, such as cigarette and tobacco smoking, fatty diet, and lack of physical activity and exercise (cited in Biddle and Mutrie 2003). In this sense, it can be analyzed that during the course of history, human beings have adopted different lifestyles, which may have contributed to the deterioration of health. This is supported by the fact that the average life expectancy of individuals decreased from 70 to 50 years old. Although physical and mental health's have shown improvements, such have only been observed in developed countries. Today, due to the change in lifestyle, changes in health and mental status have also been recognized, leading to identify different diseases and problems caused by the lack of physical activity, such as poor mental health, coronary heart disease or CHD, obesity, low back pain, osteoporosis, hypertension, diabetes, and cancers. In this regard, the relationship of health and physical activity can be recognized to be crucial in the growth and development of an individual, particularly of adults with intellectual capabilities.   

1.3  Aim and Objectives

            As individual ages, their physical activities are also changing, how much more with adults with intellectual disabilities.  Aforementioned, there are some relationship that should be given attention with regards to adults with intellectual disability’s health and obesity. This is because of some underlying factors that can be found internally and externally. Thus, the main goal of this study is to assess the relationship between obesity and Down syndrome. Specifically, the study aims on achieving the following:

·        To understand the context of learning disabilities,

·        To study the physical and healthcare needs of adults with intellectual disabilities

·        To know the context of obesity and how it is related with Down’s syndrome or vise versa.

·        To determine appropriate interventions that can be used to improve the physical and psychosocial health of individuals with down syndrome.

1.4  Problem Definition and Research Questions

            It is noted that the physical health as well as well-being of an individual with intellectual disabilities, specifically with Down’s syndrome has not been promoted as the same with people who are non-disabled. In the international level, there is an increasing awareness of the many health problems associated with intellectually disabled people ( et al, 2000) as well as the problems and difficulties that these population have been experiencing in terms of accessing or availing appropriate health care services (Kerr et al, 1996). In a study conducted by (1997) and their colleagues, the proportion of individuals with ID who are obese or overweight is noted ot be higher than that of the general public.  Previous studies have focused on people with Down’s syndrome and revealed that nearly all females and over 70% male from the studies population were noted to be either obese or overweight (1992). However, there are some other studies which have not been able to show some real connection with these two.

As of today, healthcare authorities are still attempting to identify the specific relationship between obesity and Down’s syndrome. According to the World Health organization (1997), there has been recent awareness about the effect of obesity upon health. Furthermore, there have been studies that highlights the negative effect of obesity on the health of individuals, specifically those with intellectual disabilities and these concerns have become a top priority for International Association for the Scientific Study of Intellectual disabilities (IASSID) (Lennox et al, 2002).

Specifically, this study aims on answering the following queries:

1. Is there a significant relationship between obesity and Down’s syndrome?
2. What issues need to be considered, learning disability or issues of Down’s syndrome
3. What are the factors that hinder intellectually disabled individuals (Down’s syndrome) to become physically fit?
4. What interventions can be done to improve the physical and psychosocial aspects of Down’s syndrome?

1.5  Scope of the Study

            For this research, the study will focus on assessing the relationship between obesity and Down’s syndrome. For this study, the researcher will only consider literature reviews that concerns obesity and Down’s syndrome among elderly people. In addition, this will also focus on the barriers to physical activity in adults with Intellectual disabilities, particularly Down’s syndrome.

1.6  Significance of Study

            This study will be significant in the society, particularly for the healthcare authorities in a sense that it will broaden their knowledge about knowing the relationship of these two contexts and will help them weigh if the current intervention program or the elderly people with intellectual disability are appropriate to avoid becoming obese or overweight. Furthermore, it will contribute to health research. This can be used as a future reference for other research that will focus on analyzing the relationship between obesity and Down’s syndrome.

In addition, this study might become of great use to different health care authorities to avoid the issues relevant to intellectual disabilities. Moreover, research materials are useful in persuading people to adopt something new like the health intervention programmed to be followed by elderly people with Down’s syndrome.

1.7  Limitation of Study

As stated before, this study provides significant role to the society since it depicts the future needs of intellectually disabled people in terms of being physically fit. Furthermore, this study will only consider qualitative analysis of the previous works to answer all queries. Because of ethical consideration and the inability of the researcher to conduct controlled study for individuals with Down’s syndrome as well as budget and time constraint, the researcher opted to use qualitative analysis. As the research was completed in a relatively short period of time other factors and variables are not considered. This might have an impact on the results of the

 

Chapter 2

LITERATURE REVIEW

2.0 Introduction

            The main goal of this paper is to determine the relationship of obesity with Down’s syndrome and to know the barriers for physical activities in adults with intellectual disability. In addition, this paper also aims on identifying some intervention programmed that can be used for intellectually disabled individual to maintain optimal health status. This part of the paper will provide important and relevant studies to help the research achieve the aims and objectives.

2.1 Intellectual Disability

            It has been reported that disability is a dynamic concept that has changed dramatically over the last half century and will likely continue to change. It has been defined in various ways, depending on conceptual view, research intent, or its purpose (Krahn et al 2006). It has been emphasized that in general, disability means, with respect to an individual, (a) a physical or mental impairment that substantially limits one or more of the major life activities of the individual; (b) a record of such an impairment; and (c) being regarded as having such an impairment. A number of causes have been identified, causing disability to many individuals. Such causes include musculoskeletal and connective tissue disorders, circulatory disorders, respiratory disorders, nervous and sensory disorders, endocrine, nutritional, metabolic and immunity disorders, mental disorders, and visual and hearing impairments (van der Ploeg et al 2004). From such range of disorders, it can be given emphasis that individuals suffering from disabilities, whether physical or mental can be viewed as individuals who less physically active, and may be more susceptible to problems with functioning, mobility, and other medical diseases that affect their lifestyles, such as coronary artery diseases (CAD), type 2 diabetes, osteoporosis, osteoarthritis, colon cancer, high blood pressure, decreased balance, decreased strength, decreased endurance, decreased fitness, decreased flexibility, plasticity, weight problems including obesity, depression, urinary infections, diminished self-concept, reduced ability for normal social interactions and greater dependence upon others (van der Ploeg et al 2004).       

            In addition, it has been reported that individuals with intellectual disability may be limited not only in their cognitive and adaptive behavior skills, but also by emotional and behavioral disorders that further limit their ability to learn new skills, adapt to changing environments, and develop appropriate social interaction skills. When such intellectual disorders are of a sufficient severity and intensity, they may constitute a diagnosable psychiatric disorder. In this sense, individuals with intellectual disabilities and mental illnesses present several challenges to both community and health services in terms of the difficult behaviors they present, the complexities of diagnoses and treatment, and the complex service needs they require. In addition, aside from such problems, individuals with intellectual disabilities may also be masked by poor language skills and life circumstances, where often reports of mental illness may be conveyed through a support worker rather than the individual him or herself (Hudson and Chan 2002).

Intellectual disability includes mental disorders such as mental retardation, learning disorders, and psychological disorders, such as schizophrenia, bipolar disorder, other psychotic disorders, gender and personality disorders, and anxiety and depressive disorders and also Down’s syndrome. With this, it can be perceived that an individual considered to suffer from intellectual disabilities refers to an individual that has an inability or has severe incapacity to deal with complex mental, emotional, and psychological matters at hand, in comparison to normal individuals.  

Down syndrome is a condition wherein extra genetic material causes delay in the development of a child and this often directs to mental retardation.   Down syndrome symptoms can broadly vary from child to child. While some child with DS required lot of medical attention, others lead very healthy and independent lives.  It can be said that even if Down syndrome cannot be prevented, they symptoms can be detected before a child is born.

2.3 Obesity

Obesity is a global problem and at the rate at which statistics are escalating, families, communities and governments can no longer ignore the problem. People need to be involved in the efforts to treat and prevent obesity. Involvement is achieved by making people aware of the concept of obesity, its causes, how it can be treated, how it can be prevented, and the role that each person plays in addressing this problem.  

Maurer and Sobal (1999) states that while body weight is a salient personal issue to many individuals, weight is also increasingly seen as a broader health issue. Numerous analyses of weight as a public health problem claim that there are "epidemics" of obesity and eating disorders (van't Hof and Nicolson, 1996; Jeffery and French, 1998; Rippe 1998).  

Obesity is the condition of having an excess of body fat because of the relationship of the genetic make-up and the lifestyle of a person. Obesity is being excessively overweight limiting the capabilities of the person to engage in different physical activity.   Researches indicates that health promotion programs can help to improve health, reduce disease risks, manage chronic illnesses, control obesity and improve the well-being and self-sufficiency of individuals, families, organizations, and communities (Jonas, 2003).  In England, one of the health promotion programmed initiated by the government is the “Healthy Weight, Health Lives” approach in January 2008 (HOWL, 2008).

In UK, it has been noted that the obesity rates of adults have almost increased four times in the last years. It is said that 22% of UK population are obese and almost three fourths are overweight (BBC, 2008). To most people, obesity is referred to the condition of being very overweight. Health professionals have defined this as an excess amount of weight of individuals which include water, bone, muscle, and fat.

2.4 Barriers to Physical Activities of Individuals with Intellectual Disabilities  

            Based on the first chapter, it can be seen from this paper has a number of themes, which would be tackled and addressed in this literature review and the rest of the paper. It has been listed that the unclear policy guidelines for residential services provision, financial support, social support, geographical location in relation to leisure center, and the physical active community leisure are considered to be the themes for this paper. In addition, these themes indicate the barriers to physical activities of individuals with intellectual disabilities.

            The first barrier to physical activities of individuals with intellectual disabilities is the unclear policy guidelines for residential services provision. Based on the different pieces of literature and journals on this matter, it has been reported that both the parents/caregivers of individuals with intellectual disabilities and the health care staffs believe that their skills would not be enough without the support of policy makers (Temple and Walkley 2007).This is because policies can influence the deployment of resources that would enable individuals with intellectual disabilities participate with physical activities in the community or society. In addition, public policies must be able to value the voices of people with intellectual disabilities and their carers or advocates and actively support partnerships between government sector and community organizations if the needs of communities and families are to be met (Hand and Reid 1998). Thus, in this sense, it can be perceived that the need for policies and policy guidelines for residential services provision must be achieved.

            In order to say that policies and policy guidelines support the engagement of people with intellectual disabilities, and that the lack of such policies and policy guidelines serve as one of the barriers to their physical activity, the many advantages or benefits of providing policies for residential services provision can be given emphasis. It has been stated that a greater resident involvement in policy-making within the residence was significantly related to greater levels of community integration at follow-up, and beyond size and facility, opportunities for choice and involvement in policy making, were related to outcomes of adaptive behavior and community integration (Bray and Gates 2003). Moreover, people living in either “village communities” or community-based residences had larger social networks than did people living in residential state campuses; people living in community-based residences had more people with an intellectual disability in their social networks than did people living in residential state campuses; people living in community-based residences had more people without disabilities, who were not family members, and who were not staff in their social networks than did people in either village communities or state campuses; people living in smaller community-based services had larger social networks and more non-disabled, non-staff, and non-family members in their social networks than did people living in larger residences; and people with an intellectual disability expressed greater satisfaction with their friendships and relationships if they had a greater number and proportion of people with an intellectual disability in their social networks (Bray and Gates 2003). From such advantages or benefits, it can be seen that through residential services provision, people with intellectual disabilities greater opportunities for physical activities can be provided for them. They are able to expand their social networks, be able to achieve greater satisfaction in terms of how they relate with other people, and be able to have more fun and enjoyment in life.

            However, Hand and Reid (1998) reports that the failure of policy as created by the governmental sector to support family caregivers and to take into account changes in the household/family sector reflects unexamined assumptions about the community and family. One of the reasons why policy has not effectively or efficiently achieved community integration for people with lifelong intellectual disability is that this real meaning of community has not been acknowledged. Costs to family and agency caregivers have been underestimated and unacknowledged. The assumption that resources of the community are available for care is doubtful, or at least not strategically established. The effects of social and demographic trends, as well as a decade of governmental restructuring and policy change on community organisations, are difficult to estimate. The issue is that unremitting demands and lack of support result in progressively negative effects and inability to sustain caring roles (Hand and Reid 1998). In addition, the National Survey of 1989 – 1991 identified a number of service needs that are not being met by individuals with intellectual disabilities from residential institutions, namely, membership in clubs, day programmers, recreational and retirement services, support and respite for families, review of medication, and regular health checks and treatment, vision and hearing services, education and learning of self care and social skills, transport (to increase independent mobility, to enable participation), and more choice in place of residence (Hand and Reid 1998). With such unmet needs, it can be recognized that if policies and policy guidelines would not be provided as soon as possible, death rates among individuals with intellectual disabilities will continue to increase. Currently, death rates in sedentary individuals are approximately twice as high as for active persons (Messent et al 1999 & 2000). In addition, it has also been stated that the life expectancy of persons with mental retardation is increasing, and accordingly, more attention has been given to preventing secondary disabling conditions, such as obesity, diabetes, and hypertension in efforts to improve the overall health and quality of life of such individuals (Temple et al 2006). Nonetheless, residential institutions and family members would not be able to manage without the policies to guide them.

 

Chapter 3

Research Methodology

3.1 Methodology

            Basically, such study can be classified as a descriptive research which objects on identifying the relationship of two variables (in this case obesity and down syndrome). The approach aims to establish causal relationship between these two variables (Robson, 2002; Saunders et al, 2003). It can be said hat with this approach, it is important to have clear picture of the situation on which the author wishes to collect relevant data (Saunders et al, 2003)

            In addition, the research described in this study is solely based on qualitative approach. This allows the study to be flexible with the analysis and presentation. During the collection of the data, the choice and design of the research are modified constantly based on the ongoing analysis. Through this, the researcher may also have the chance to investigate essential issues and questions as they arise and permits the analysis to drop irrelevant data from the original plan

            It cam be said that qualitative models are more suitable for this study than the conventional models to be able to express states of incomplete knowledge about continuous strategies  (Benjamin, 1994). Qualitative simulation assures to find all plausible behaviours consistent with the knowledge in the qualitative mode.  

            The qualitative evaluation of the data typically refers to raw, descriptive data regarding global phenomenon from different areas including health aspects.  Three data gathering approaches are considered in this model: this include direct observation, and in-depth, open-ended interviews.  This research intends to study the relationship of obesity with Down syndrome and to determine the barriers for physical activities for people with intellectual activities.  The main method to be used is based on qualitative approach in order to determine the relationship of both concepts.

 

.

The Digital and Information for that matter are equally shaping and determining the contemporary world

Chapter 1

Introduction

 

1.1 Overview

The world is fast entering the Information Age.  Transactions and commodities may be packaged through data.  There is a disintegration of the concrete to give way to what is abstract and digital.  The digital and information for that matter are equally shaping and determining the contemporary world.

 (2003) believed that any business in the world today cannot survive without information systems.  Information systems are essential for its role in making communication convenient and cheap significantly.  It allows information transfer in an efficient and fast rate.  Cost is reduced and communication is even improved and disseminated better.  Information systems made it possible for people in great distance to be closely linked together and allow them to truly convene with each other.  Transactions and agreements can be arranged swiftly without having to spend much.  What information systems bring is a new way of operating and managing a business, and that is through data transfer. 

Basically, information systems (IS) are often related to e-based business or e-business. E-Business is often described as the use of electronic data and gadgets in the transmission of information used in business (2003). This includes the usage of devices and databases.  It is more centered on man’s usage of the many machine and data benefits and advantages in the operation of a business. Meaning to say, e-based processes in businesses can also be applied to any industry, e.g. marine shipping companies in Hong Kong.

The adoption of a digitalized approach in business procedures however has its own pitfalls.  Communications arranged in a digital environment would certainly lessen personal relationships and reduce the participation of human elements.  Internet communication is complex and will not be comfortable to the inexperience.  It calls for a new approach to communication that relies on computer languages instead of the basic telephone alternative. 

On the other hand, the Internet is an open environment that may be used by anyone with a computer and a modem.  Therefore transactions must be made secure from outside interventions.  Security is very fragile as users capable of data manipulation in the Internet may just as easily do so unless steps are undertaken against fraud among other threats. An open environment would also mean that it would cater to all computer users in the world allowing the electronic medium to be the universal means of communication.  Internet allowed the bridging of the gaps that has been limiting individuals to gain access to a larger network of market and opportunities.   The Internet continues to expand daily as web sites are continuous in their composition. The biggest issue of e-based transaction and communication is trust.  This is a necessary ingredient in the completion of business agreements.  They are the medium and the connection of which two parties arrange bargains and settlements. With this regard, there are many small and medium size marine shipping companies in Hong Kong. However the system availability is low.  This research will be focusing on the system availability and how it affects the business.

 

1.2 Context

            From the previous discussion, this paper will be discussing the system availability management for small to medium-sized marine shipping companies in Hong Kong.  Basically, the research is set in two companies in Hong Kong, i.e. Transfixed ER Resources Limited (TER) and Clarksons Asia Limited (CAL). Actually, the word “small” and “medium” means the business and operation size in Hong Kong, not for the whole company.  TAR is a medium size marine shipping company with over 70 full time staffs.  The headquarters of CAL is in the United Kingdom, It has a representation office in Hong Kong with 15 full time staffs.  Both companies are well known in marine shipping industry in Hong Kong.  As previously stated, the research will focus on the system availability and how it affects the business.

Currently, Internet and other network systems connect people in the world, system breakdown means loss of business and loss of company reputation.  Companies cannot survive without computer system.  The vessels are running in different countries and different time zone.  Staffs are required to work at anytime, anywhere.  The demanding of the computer system is increasing and they don’t expect any down time.  However, small and medium sized marine shipping companies in Hong Kong are still having low system availability issue.  How can we improve the system availability and reduce the down time?

From the drawbacks of implementing an IS, it is unpredicted, frustrating, inconvenient, and the whole business will be shut down because everyone is relying on computer system. Actually, system unavailability can suddenly strike without warning. System downtime can be caused by natural disasters, system failure, user error or illegal intrusion and routine; however, every system requires off-line maintenance such as software and hardware upgrades and checking. Only prepared companies can continuously conduct business after system downtime as if nothing happened or with minimal outage; this is due to the reason that prepared companies have acquired technology that ensures continuous business operation even at system downtime and have taken well-planned steps in securing valuable company data and mission-critical applications are properly backed-up and continuously available anywhere in real-time.

From these issues, this research is hopeful to formulate set of guidelines for IS implementation. The guidelines will provide the system evaluation and recommendations.  It consists of three parts, they are Confidentiality, Integrity and Availability.  The research will focus on of Business Continuity Planning, Computer & Operations Management.  The set of guidelines is important to show business owner of marine shipping companies what the problem is and how can they improve the system availability

 

 

 

Chapter 2

Literature Review

 

The computer is one of the most widely used modern information technology devices in the world today. Companies and organisations need computers in order to manage data into an organized manner for the success of the business. According to Moshe (2003), information technology or information systems has become one of the main assets in information era. He also added that the efficient use of information is significant in determining the success of a certain organisation. Making awareness of information value and the ability to manage information organisation-wide will have great impact on organisation progress results. Since information is used in every feature of business and generated in every process, a centralized supervision function is needed to structure, combine and distribute it effectively and efficiently. As discussed, information technology development has become a standard practice in business and educational settings in industrialized countries and they have realized the potential of IT to yield tangible benefits for them.

Different countries are beginning to see the advantages of having suitable information system (IS) in business, government and commercial enterprises. One example is Hong Kong shipping businesses, which is the focus of the study. Its current economic condition and readiness to the implementation information technology development have caused problems in terms of communication progress which is important in any kind of society.

According to Check land and Howell (1998), Hong Kong is keen on taking advantage of the rewards of having a competent information system established in its government and commercial organisations. The said information system (IS) is expected to have positive implication to the development process of Small to Medium-sized Marine Shipping Companies in Hong Kong.

 

2.1 Management Support

The rapid development of IS has become the driving force for the innovation of every industry (Ataman et al., 2000). The belief is that the increased levels of information system (IS) usage and diffusion provide enhanced economic benefits and opportunities for economic growth (Nawawy & Is mail, 1999). The advances in information and communication systems are quickly transforming the industry through redefinition of products, services and markets. The underlying technologies provide a suitable environment for the creation of electronic markets, digital economies and new organisations within the enterprises. In this regard, it is very vital to consider the support of management of an organisation regarding IS implementation. To measure this variable, the researcher will conduct a survey and interview pertaining to this issue. The respondents and survey details will be described in methodology chapter. Actually, reliable subjects or respondents will also be considered to ensure the quality of responses.

During the turn of the century, the world experiences more drastic changes than before, which include changes in the environment, culture, education, knowledge, the society, and technology. The world has evolved into a massive ball of information and technology that led to the expansion and the development of the society in several aspects. However, despite the improvement of the performance of many companies, these changes also contributed to the distress of some, which are not apt for these changes. From this, it can be understood that, existing and persisting in the business industry is not as easy as it seems. Because of these, many business organisations and companies are encountering a variety of problems and issues that determine their success or failure in the business arena and in the industry. These problems and issues arise from the external and internal changes that the company encounters.

The business danger for an organisation engaged in technologically dependent business is normally greater than for one that is not. Business operations present a unique set of danger, including an increased reliance on technology and increased vulnerability to the rapid changes in technology. To deal with such challenges, an organisation needs to develop an efficient strategy. An effective strategy requires operational efficiency; within organization's information systems, this means an emphasis on information security and controls.

Apparently, Bailey (1998) stated that IS always present to almost all areas of business, industry, education and government. Increasingly far-reaching information networks linking computers and databases provide important benefits, including greater staff productivity and a sharper competitive edge. The more that we expand the reach of our information networks, the more important network security becomes.

During the early days of computer systems, software development consisted of a programmer writing code to solve a problem or automate a procedure (Kay 2002). This type of system development is said to be poorly planned, leading to inadequately designed systems, which are not user-friendly and not meeting the requirements of the organisation. Due to this problem, a myriad of changes have already taken place to accommodate the transformations being experienced by business organisations. In the current era, there are systems in the cyber world that need teams of architects, analysts, programmers, testers, and users in order to create millions of lines of custom-written code that helps the enterprises.  And from these changes, Kay 2002 stated that a number of system development life cycle (SDLC) should be created. These models comprise the fountain, waterfall, spiral, rapid prototyping, build and fix, incremental, and synchronies and stabilize (Kay 2002).

Basically, from these models, the most popular is the waterfall model in which comprises of sequences of stages. The output of each stage develops into the input for the next, and can be typified and turn down in to different ways (Kay 2002). With regards to the IS implementation management and other models in software development, it very important to evaluate the methods since it reflects to the possible output of the IS implementation. Software developers frequently confront the task of IS implementation and interface evaluation. Aside from these models and methods in software development, the interface in which the IS implementation is to be placed should be in good condition. The interface is a medium through which users communicate with a computer system. Specifically, it is a combination of hardware (e.g., visual display medium, input devices), software for controlling user-system interaction tasks, and information presented via the display medium (Kay 2002). Effective interface evaluation is critical to the eventual success of any system software because it provides a means of identifying both existing and potential deficiencies in the interface. Once interface weaknesses are correctly identified, a developer can focus efforts on improving the existing design.

According to Cleland and Agrees (1994), IS implementations should transform an unsatisfactory (existing or future) state to a better state within a certain time, using a limited effort. In a more pragmatic terms, a IS implementation means that there is someone who always has the unique needs for something new tangible outcomes (the creation) of it, and requires knowledge and resources to conduct the realization of the concept within the specific constraints of time, money and specifications (Cecil, 1997). Furthermore, required expertise and resources are needed, either in-house or from the market, need to be pooled together to create the change – the transition from the idea to the creation, according to the client’s expectations, which are provided by professionals, consultants, contractors and sub-contractors (Cecil, 1997).

In the study conducted by Davis (1998), he stated that “a study group of researchers was formed to discuss the software crises which happened in year 1967”. At the end of 1 year, the group concluded that building software is similar to other engineering tasks and software development should be viewed as an engineering like activity (Davis 1998). Thus, the phrase software engineering was born, along with the belief that programming was simply the application of certain scientific and engineering principles. As a result, texts were written and metrics established for the purpose of identifying the scientific principles of software engineering. The fact that programs still contain bugs, are delivered late, and are over budgeted should tell that many of the basic scientific principles of programming remain undiscovered. Yet the goal remains that software engineering is a discipline whose aim is the production of quality software, software that is delivered on time, within budget, and that satisfies its requirements. As a result, most software engineers interpret technology assessment as the set of procedures that are used to determine how well the software meets its initial specifications.

On the other hand, most software users maintain that technology assessment should be a measure of how well the software meets the user's needs. In order to meet each of these goals, the scope of software engineering has become extremely broad, encompassing every phase of the software life cycle, from requirements to decommissioning. It also includes different aspects of human knowledge such as economics, social science, and psychology. To this end, a variety of techniques have been developed for performing and evaluating various software production tasks, from requirements and specifications to maintenance. In addition to measuring the quality of software, there are numerous studies that compare different techniques and methodologies used to write, comprehend, and debug software. As a result, the relatively new challenge for software engineers is to develop assessment techniques that work and possibly reflect the more human aspects of software development, those that acknowledge the importance of both the programmer and the user (Davis 1998).

 

2.2 User Involvement

User involvement is very vital in determining the system availability management for small to medium-sized marine shipping companies in Hong Kong. Actually, the involvement of user is helpful since it defines their insights regarding IS. By examining the risks and other factors involved in IS implementation to public and private manufacturing businesses will be able to design measures to minimize the risks. Further, through the understanding of the needs of their customers in terms of security and satisfaction, this study will help manufacturers in the process of implementing IS. This variable will be measured using survey questionnaires and interviews to be discussed in methodology section.

 

2.3 IS maturity

IS maturity are issues in the modern world. With this devastating opportunity several manufacturing businesses tends adopt to these changes. Basically, there are some shipping companies that are very applicable for this system and others are laggards (Ghanem, 2001). In lieu to this, the IS maturity verification of a certain business should be considered in order to adjust the needs of development.

            Basically, IS maturity is shorthand for the degree to which a business surroundings is favorable to information-based commercial opportunities. According to the website entry of Jorgen's Pie terse, maturity level will determine the readiness or level of adaptation of a certain process regarding new technology solution.[1] It is an idea that spans a wide range of factors, from telephone dissemination to online security to intellectual property protection.

 

2.4 IT in Action

            Information technology (IT), also commonly referred to as information and communication technology (ICT) has been applied in various forms within different business industries (McCue, S, 2006). In the shipping sector for example, IT has played a significant role in business process. A number of information technologies had been made available to owners of business organisations for this purpose, from less-sophisticated to more advanced systems (Reynolds, J, 2004).

Basically, internet technology also led to the development of different companies. Through this innovation, product and service customization, information searches and online deliveries are some common services that are now available to the customers. Manufacturers, suppliers and distributors on the other hand, benefit from internet utilization through well-coordinated information sharing. Online auctions are even made possible with this technological development (Emiliani 2000).

            In addition to internet technology, specific programs and systems such as Enterprise Resource Planning (ERP) also became one of the most well-known strategies for applying IT within manufacturing enterprises, which helps in facilitating information exchange (Evans et al 1995 and Tisane, D, 2005). In addition to this, ERP also helps the business sector by improving various activities such as the monitoring of orders, materials, schedules and inventories as well as business process engineering. The Electronic Data Interchange (EDI) is yet another IT strategy that is applied by business organisations, particularly in improving their SCM operations. Private wide-area networks or value-added networks (VAN) were conventionally used to implement EDI. This however made EDI too costly for small and medium sized companies. With the introduction of the internet-based EDI, these enterprises are now able to acquire the benefits of EDI application (Johnston & Mark 2000).

            The retailing industry is also one of the business sectors that utilize various information technology strategies so as to enhance its operations. One of these strategies was the application of Electronic Point of Sale (EPOS), which was first introduced during the late 1980s. With this strategy, retail companies are able to acquire virtual online information about their respective customers, particularly their demands. These data are derived from the scanned purchases at the checkout counters of retail stores (McCall & Stone 2004).

            As retailers operate for several years, especially the food retailers, they were able to acquire a large customer database that can more or less give a good representation of their total demand. Customer data basically include information such as consumer sales in terms of brand, product, outlet and region. Information about the customers such as names, frequency of their visit to a particular outlet and payment method can also be obtained and stored in the database. With these data, retail companies are able to develop and make successful television campaigns based on the product sales obtained from a specific region (McCall & Stone 2004).

            The information that is stored on the database is mainly derived from the bar code reader. With this system, the reader, which is an electronic data input device, collects information and transmit it to the central computer. Aside from stock control, this data-gathering technique is also used to conduct market basket analysis, which is mainly used for developing profiles of individual shoppers (Czerniawska & Potter 1998).

            The introduction of information technology to business application even made the development of a customer database even easier and more effective. The incorporation of IT to customer data then led to the construction of the EPOS strategy. With this added feature, businesses now can make the most of the data derived from their customers. In addition, the development of results from analyzing these data is now easier and faster than before. Data storage and classification are no longer a problem either.

            In organisations that observe regular office settings, IT application strategies had also been used. One of which is the use of information technologies in developing virtual teams.  Business organisations have long been searching for mechanisms or systems that will make their operations work more efficiently (Biel ski, L 2004). In the past, industries had recognised the efficacy of creating teams from their workforce in achieving this objective (Bielski, L 2004). Based on corporate experience, organisations have witnessed that team-based working environment is capable of drawing productivity and creativity out of their employees. Moreover, a dynamic business environment exemplified by work teams enables the member to overcome challenges better (Bielski, L 2004).

            However, as teams are integrated into an organization's work operation, management had started to encounter several problems and dilemmas. For instance, some work assignments require frequent relocations. This then would call for expensive travel expenses to transfer a particular work team. Due to this, organisations are not able to maximize the use of team-based workforce as work teams tend to be constricted on small projects only. Furthermore, traveling causes much delay on work actions and decisions. Without the full and complete presence of the teams’ members in a common work site or location, no work progress is achieved. This has been the case until information technology was introduced.

            With new software programs, faster communication systems and more efficient processors, business sectors now have access to a useful technology known as virtual connectivity 2004). The access to these new technologies and innovations has allowed people all over the world to communicate even at great distances. This transition has given organisations the idea of creating virtual teams. Virtual teams are made up of organizational members whose main form of interaction is made via electronic communication means. Through the use of the telephone, fax machines, the internet or other computer-based media (1996), team members are able to communicate without actually seeing one another and even without being in one work location.

            By means of these virtual communication systems, team members can easily decide or select which information system is appropriate for particular work tasks. For instance, in a work assignment that needs the exchange of information, lean technologies, such as electronic mailing or instant messaging, are used. Complicated work duties on the other hand, like conflict resolution or brainstorming, require more advance technologies such as video conferencing. Leonard (1998) noted that as the members of the virtual team are aware of the resources available to them for specific tasks, they are able to develop a refined sense of efficiency in communicating and conducting business operations as a team.

            The application of information technology has also been used as a strategy for improving the businesses’ marketing efforts. For instance, internet technology may be integrated to other marketing tools in order to develop a strategy known as Integrated Marketing Communications (IMC). IMC is the strategic coordination of multiple communication voices. Its aim is to optimize the impact of persuasive communication on both consumer and non-consumer such as trade and professional audiences by coordinating such elements of the marketing mix as advertising, public relations, promotions, direct marketing, and package design (Moore & Thorson 1996). From these examples, it is clear that various strategies in applying information technology have been developed to address the different needs of business companies.

 

2.5 IS Implementation Process

Information has become one of the main assets in information era. The efficient use of information is significant in determining the success of a certain organisation. Making awareness of information value and the ability to manage information organisation-wide will have great impact on organisation progress results. Since information is used in every feature of business and generated in every process, a centralized supervision function is needed to structure, combine and distribute it effectively and efficiently. Where the finance department monitors and manages the financial aspects of organisation and the legal department handles all legal affairs, the Information Organisation should manage this important business asset.

With regards to the contents and quality of the new IS, one of the most vital and difficult tasks is determining important information and the proper way of using it. Where legal concerns and financial matters tend to identify themselves automatically, although often too late, with information this is not always simple. Data is engendered in all processes in and outside the organisation. Determining the possible information value of these processes and creating a system to effectively use it requires specialized skills. Meaning to say, we need to combine in-depth business knowledge with in-depth system/process knowledge. Eventually, when the information value is close to the procedure, e.g. obtaining direct process competence, this link can often be made by the organisation. This can be very difficult when information value is business-logically separated from the information source. Information is an asset that needs processing and care. Handling it wrongly can render valuable information useless where money can be transformed and traced easily. On the other hand, information can be copied and used on different locations multiplying its value. Like money the optimal use of information requires strict procedures for handling it. As for money this depends on the specific organisation.

            From the discussion, this paper aims to evaluate the system availability management for small to medium-sized marine shipping Companies in Hong Kong. Basically, an organisation may plan to have a complete of IS to suffice the needs of their employees and patients. Some of the activities needed to get the system started are:

Ø      Negotiation with the IS  company

Ø      Shipping the equipment

Ø      Recruitment of IT and  Staff

Ø      Installation of the system

Ø      Pilot operation

 

Making computer and IS more secure is both a technological challenge and a managerial problem. The technology exists to incorporate adequate safeguards within these systems, but the managerial demand for secure systems is virtually nonexistent outside of the Defence and financial industries. That so many of commercial systems provide marginal security at best is a reflection of the lack of managerial awareness and understanding of the need to protect the information stored in, and transmitted between, computers.

From this, it is essential to determine the technical and non-technical concerns of the possible e-project management system requirements of the company. Basically, the technical problems that may arise in this project include the suitability of the software and hardware to the type of information to be protected.

In addition, employees/members of an organisation should be aware on how this systems works. Apparently, issues such as system design, system capacity, system control, system maintenance, and system response to requests for information should also be considered. The systems to be used by the organisation must be appropriate, to capably meet the needs of both employees and customers.

With regards to non-technical issues of information management systems implementation, the inclusion of project constraints, such as money, time and staff must be analyzed. The company must be able to evaluate the financial aspect needing to accomplish the project. As part of non-technical issues in the project, time in accomplishing the project should also be observed. This is important since time and the amount of money the company will be spending to accomplish its projects are Interco related. Every organisation wishes to lessen expenditures, so identifying the project’s specific time frame would enable the company to allocate enough resources for the project. Lastly, staff participation is also essential in the project since they are responsible for making the project move forward.

Typically, the function of an information management system in an organisation is to optimize decision-making by delivering the right information in the right format at the right time. Basically, the information needs changes continuously. They explained that to be useful the supplied information must keep matching the evolving information need of the individual users.

Conversely, an information management system should understand the organization's need to deliver the right information. Interaction with users is critical to determine the best content and format for new information. Furthermore, to be able to continuously deliver necessary information, the system in an organisation should anticipate the future information needed and gathered data beforehand. Actually, the relationships with the data sources are necessary to maintain a reliable source for information. The relationships with business and sources together with organisation wide information value awareness are the base of e-based project management system.

Lamentably, organisation is not immune to e-project management system failures precipitated by inadequate management capacities. Many systems failed to perform up to specifications and, hence, had to be scrapped. The report attributes the difficulties squarely to poor management, ineffective planning, and lack of user involvement in implementation.

In addition, a certain organisation needs to create a data bank that enhances the production function of an information management system. It is a tool supporting the e-project management system since it consists of a centralized historical database with data management and reporting functions. Normally, the data bank maintains data integrity and consistency and supports the administration of business rules and information definitions. Currently most e-project management system in other organisations are built as Data Storages, i.e. a significant database with reporting effectivity.

From the list of activities presented, the critical path analysis as part of Task Management Plan is important. 

If an organisation wanted to reduce the completion time of the entire project, then they must reduce the completion times for some of the constituent activities.  Such an action is called crashing of activities.  If activity is to be crashed, it should be on critical path.

While every organisation seems to invest in technology, there are other aspects that should be considered in attaining a holistic performance of their respective organisation. One aspect that needs as much, if not more attention and investment than technology is human capital management. An organization's human capital management philosophy must value the workforce as a key asset that will define an organization's character and performance capacity (Lippie J 2001).  “In fact, human capital is a critical factor that would either lead the organisation to success or to failure,” as stated by Lippie.

Furthermore, organisations must realize that in order for them to recruit, develop, and retain skill employees for future missions, they need to unleash their human resource employee relation’s imagination to create capability and flexibility to institutionalize a well-defined system to expedite the handling of disputes and grievances. Therefore, it is imperative that human resource departments adopt a modern day progressive employee relation’s paradigm that embraces and enhances the recruitment, development, and retention of employees in concert with human capital strategic management planning initiatives.

According to Ward, the coach and a mentor frequently perform their work using similar skills tests, such as strong interpersonal and communication skills. Actually, effective mentors, like supervisors, managers, and executives also use effective coaching skills (Ward, 2006). Although analogous, these two terms are actually different in each other. Basically, coaching is teaching someone certain skills, techniques and other things to allow them to reach their full potential in activities. On the other hand, mentoring has to do with knowledge and helping them developing their thinking skills.

In any business organisations, there are lots of things that the company, managers and staff can do in order to arrive at a successful implementation of e-project management systems.  As part of coaching and mentoring capabilities of managers, they need to talk to people, inspire them and get them excited to the possible growth of the company. They may also use reward and recognition for good response. Apparently, team effect and inclusion of people from the union should not be neglected.

 

2.6 Crisis Management in Information Age

Information age provides a great impact in the current society.  Technologies, mechanism, network, online services and internet are the primary issues in the information era.  Basically, information age creates advancement and provides good communication that gives people a convenient lifestyle. However, these improvements possess some disadvantages or for worst a crisis. With the increase in usage of the Internet, certain concerns about security arise. Privacy violations, pornography, transaction security breaches, unsolicited e-mail (Koprowski, 1995) and other questionable or illegal activities being conducted on-line have become hotly debated issues. Some see regulation as the only answer to protection from unwelcome intrusion; but due to the universal nature of the Internet, regulation will be extremely difficult, if not impossible (Peeples, 2002).

According to a survey conducted by Udo (2001), security concerns are a major reason that users give for not shopping online. Many consumer organisations and government agencies provide tips on how to transact safely on the Internet by providing key information such as its return policy and privacy practices (Udo, 2001). In theory, consumers could choose not to patronize sites that fail to provide key information, but in practice, consumers do not search for this information, if at all, until after they have spent considerable time investigating a site's product offerings (Duo, 2001).

The purpose of Udo’s (2001) study was to investigate the privacy and security concerns of online IT users in order to establish a consensus among them. The survey data used in this study came from 158 participants. As indicated by the study findings, the majority of the online IT users today have serious concerns about their privacy and security while shopping on the Internet. They are also concerned about the safety and confidentiality of their e-mails. IT users do not only lose confidence in the technology but they also have very little hope that the government is capable of significantly reducing their concerns in the near future.

The majority of the online IT users who participated in Udo’s (2001) study believed that the advancements in such technology as encryption and other security features are not sufficient to reduce their privacy and security concerns. Based on the responses of those who took part in the study, an overwhelming majority of employees prefer the organisation to have policies for e-mail and Internet use and to also notify the employees of the policies.

Consumer privacy issues are not new (Rubin, 1995). Consumers have worried for years about how personal data are used by the government and, more recently, by businesses (Rubin, 1995). The consumer privacy issue is taking on greater magnitude, as the number of people accessing the Internet’s information resources grows exponentially and the public becomes more technologically savvy (Rubin, 1995). According to a 1999 report from the United States Department of Commerce (1998), information is gathered on the Internet both directly and indirectly. When a user enters a chat room discussion, leaves a message on a bulletin board, registers with a commercial site, enters a contest, or orders a product, he/she directly and knowingly sends information into cyberspace. The report further states that data can be gathered indirectly, without the user’s knowledge (Udo, 2001).

 

2.7 Synthesis

Based on the discussions above, it is found out that information is a key resource of the organisation, together with people, finances and material assets. Thus, it is accepted to state that information is a business issue. The discussion above revealed that through effective information management of the organization's resources and systems, organisation administrators can add value to the services delivered to customers, reduce risks in the organization's business, reduce the costs of business development and service delivery and encourage improvement in internal business processes and external service implementation. On the other had, it is recommended that when developing an information system just commence to make sure it produces important information and not data. It is better to build a report that is ideal for a specific need then to make a report based on a predefined concession between several users. The shaped information will have value and increases insight into information needs and the way the business is looked at. Adding more and more information to the system and solving the problems as they occur will eventually lead to a system as mentioned. In fact, that is the way any functional Information System is developed. Having an experienced team helping you take the first steps and educating your staff in the first period can make all the difference.

Apparently, the important role task managers play in information project management system design and implementation becomes clear. Due to the importance of their role in attaining project success, task managers must then be equipped with the right knowledge and skills, particularly in handling the different problems that could arise in the process. Task managers should not only be skilled when it comes to performing different tasks, but they must also be people-oriented, involved, committed, enthusiastic, creative and innovative. The different aspects of task management also indicated that while there are many methods or styles that a task manager may apply, no single method can be considered as the most effective or appropriate. Thus, it is recommended that task managers take an individualized approach in managing, leading, communicating, mentoring and coaching the project team. Through this, task managers will be able to employ the right project management practices as the situation requires it.

To completely evaluate the information management of the organisation, particularly in shipping business, it is advisable to adopt the devised decision making model. The model consists of the following steps:

Ø      identify and define the problem;

Ø      identify the desired goal or condition;

Ø      consider obstacles to the goal or condition;

Ø      identify alternatives;

Ø      examine alternatives;

Ø      rank alternatives;

Ø      choose the best alternative ;

Ø      evaluate the actions.

Finally, the use of the quantities in decision-making model helps us to minimize mistakes.  Aside from the steps above, it is also recognised to list all the alternatives, identify future events that may occur, and construct a pay-off table in making effective decisions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 3

Methodology

This chapter shall discuss the research methods available for the study and what is applicable for it to use. Likewise, the chapter shall present how the research will be implemented and how to come up with pertinent findings.

 

3.1 Method of Research Used

For this study, the descriptive research method was utilized. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. Thus, this study used use the descriptive approach. This descriptive type of research utilizes observations in the study.  To illustrate the descriptive type of research, Creswell (1994) guided the researcher when he stated: Descriptive method of research is to gather information about the present existing condition. 

The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.

 

To come up with pertinent findings and to provide credible recommendations, this study utilized two sources of research: primary and secondary.  Primary research data were obtained through this new research study. Questionnaire survey and in-depth interview were conducted. On the other hand, the secondary research data were obtained from previous studies on the same topic. 

The primary sources of data came from the survey-questionnaire and interviews conducted by the researcher. The secondary sources of data were based on published articles from business and IT journals, books and related studies on the system management, system networks, internet, e-commerce and its application to shipping business.

           

3.2 Respondents of the Study

The general population for this study is composed of managers, employees and clients from two different shipping businesses in Hong Kong who are engaged in systems availability management. The managers, employees and clients were also interviewed. Basically, (1973), advised to use the Slovin’s formula in choosing sample sizes. Thus, the sample size of the population in this paper was determined by Slovin’s formula. The formula of Slovin (1960) is given as follows:

 

 

 

 

 

Where:

      n = a sample size     

N= population size

e= desired margin of error (percent allowance for non-precision                             because of the use of the sample instead of the population). 

 

3.3 Instruments to be Used

To determine the effects of knowledge management in the financial sector, the researcher prepared a survey-questionnaire. The respondents graded each statement in the survey-questionnaire using a Likert scale with a five-response scale wherein respondents were given five response choices. The equivalent weights for the answers were:

 

Range                                                Interpretation

            4.50 – 5.00                                        Strongly Agree

3.50 – 4.00                                        Agree

2.50 – 3.49                                        Uncertain

1.50 – 2.49                                        Disagree         

0.00 – 1.49                                        Strongly Disagree

The decision was made to use a questionnaire for the data collection for this project due to the sensitivity of the information being obtained.  It is important for the respondents to be open and honest in their responses. The use of the questionnaire provides the project owner with the ability to test the views and attitudes of the managers. The questionnaire was designed to allow the collection of specific information about the participants to conduct statistical analysis, e.g. age, sex, length of time with the company and position in the company.

In the interview, open-ended questions were used to obtain as much information as possible about how the interviewee feels about the research topic.  Interviews took between 15 and 30 minutes. The questions being used during the interview have been based on the research questions for this project, they have been reviewed, refined and approved by the project supervisor. The researcher designed a semi-structured interview. Here, the researcher encouraged the interviewee to clarify vague statements and to further elaborate on brief comments. The interviewer did not share his/her own beliefs and opinions.

 

3.4 Validation and Administration of the Instrument

For validation purposes, the researcher initially submitted a sample of the set of survey questionnaires and after approval; the initial survey were conducted to five respondents.  After the questions were answered, the researcher asked the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument.  Afterwards, the researcher again examined the content of the interview questions to find out the reliability of the instrument. The researchers then excluded irrelevant questions and changed words that would be deemed difficult by the respondents, to much simpler terms. The researcher excluded the five respondents who were initially used for the validation of the instrument.  The researcher also tallied, scored and tabulated all the responses in the provided interview questions.

 

3.5 Statistical Treatment of the Data

When the entire survey questionnaire have been collected, the researcher used statistics to analyse all the data; and was assisted by the SPSS in coming up with the statistical analysis for this study. For the interview, a content analysis was drawn in order to identify factors pertaining to the system availability management of small and medium-sized shipping businesses in Hong Kong. Because of this research design, the results of the data gathered were limited to the determination of factors that affect the implementation of system networks to small and medium-sized shipping companies. Thus other possible findings in the field of system networks were not being pursued.

Moreover, this research will utilize the t-test and ANOVA statistics in order to determine the goodness of fit of the responses of the respondents regarding their perception on the study.

 

3.6 T-test[2]

            The t-test is the most commonly used method to evaluate the differences in means between two groups. For example, the t-test can be used to test for a difference in test scores between a group of patients who were given a drug and a control group who received a placebo. Theoretically, the t-test can be used even if the sample sizes are very small (e.g., as small as 10; some researchers claim that even smaller no's are possible), as long as the variables are normally distributed within each group and the variation of scores in the two groups is not reliably different. As mentioned before, the normality assumption can be evaluated by looking at the distribution of the data (via histograms) or by performing a normality test. The equality of variances assumption can be verified with the F test, or you can use the more robust Levine's test. If these conditions are not met, then you can evaluate the differences in means between two groups using one of the nonparametric alternatives to the t- test.

            The p-level reported with a t-test represents the probability of error involved in accepting our research hypothesis about the existence of a difference. Technically speaking, this is the probability of error associated with rejecting the hypothesis of no difference between the two categories of observations (corresponding to the groups) in the population when, in fact, the hypothesis is true.

            Some researchers suggest that if the difference is in the predicted direction, you can consider only one half (one "tail") of the probability distribution and thus divide the standard p-level reported with a t-test (a "two-tailed" probability) by two. Others, however, suggest that you should always report the standard, two-tailed t-test probability. When testing for a relationship between two variables, sometimes there is a 3rd variable, which we are not interested in at the moment, which influences our results.

So, the null hypothesis (Ho: x and y are independent), can also be written as:

Ho: mD= 0, where mD = population mean of difference scores

df = N - 1, where N = the number of pairs of participants

 

Then, using the standard "template" for our inference test, we have:

 

3.7 Analysis of Variance (ANOVA)

            To be able to determine if there is a significant difference between the assessments of the two groups of respondents the ANOVA was used (Guilford, J.P. and B. Fruchter, 1973).  To be able to determine if there is a difference between the assessments of the two groups of respondents the one-way analysis of variance (ANOVA) was used.

For the ANOVA calculations, the general form is summarized in the table below:

The Generalized ANOVA Table

ANOVA Table
Source of Variation	Sum of Squares	Degrees of Freedom	Mean Square	F
Treatments	SSTR	t-1	MSTR
Error	SSE	N-t	MSE
Total	SST	N-1

 

Where:

 

 

 

 

       

 

     

 

    

 

 

 

3.8 Ethical Consideration

The data generated will be used solely to understand the System Availability Management for Small to Medium-sized Marine Shipping Companies in Hong Kong. The researcher is solely responsible for conducting the whole research process and shall abide all the policies regarding the organization as well as the university. The data will not be transferable for any means in person or organization. The research is being done according to the guidelines and rules and regulations of the university. The researcher does not belong to any professional bodies to share the outcome of the research results. The four stages of ethics in doing research are followed by the way of a good design, modes of data collection, analysis of data and for proper dissemination. Both confidentiality and anonymity will be maintained of the informants who have participated or shared information in the research. There will be no Coercion or force to take advantage from the informants. Full voluntary guarantee will be taken from the informants. Due consideration and approval will be taken from the organisation which is being studied. Prior objectives and motive of the research will be intimated. There shall be no misrepresentation or misuse of the data collected from the organization. Strict confidentiality shall be maintained. Finally, the university for dissemination of academic purposes might take the data collected.

 

3.9 Summary

As stated in this methodology part, the research underwent stages. In the research design, the researcher collected secondary data and formulated and developed the questionnaire and interview. In this stage, these instruments were subjected to approval and validation. During the data collection, the researcher collated and summarised the data obtained from the questionnaire and survey. The researcher then analyzed these data and from these, the researcher came up with findings and recommendations that shall be presented in the next chapters.

 

 

 

 

 

 

 

 

 

 

Chapter 4

Data Collection and Analysis

 

4.1 Introductory Remarks

This chapter presents the data gathered from the questionnaire and interviews conducted by the researcher with managers, employees and clients, involved with the companies used in this study – the systems availability management research. The general population for this study composed of 40 individuals that are directly related to two different shipping businesses in Hong Kong. Some of these respondents were also interviewed. The findings of the study are presented in different sections.  Section one presents the profile of the respondents of this study.  The objective is to determine the current status of System Availability Management for Small to medium-sized Marine Shipping companies in Hong Kong. Section two, on the other hand, presents the perception of the respondents pertaining to System Availability Management which was divided into three (3) categories; Security and Privacy Issues, Personnel Qualification and System Satisfaction of Respondents. Section three discusses the results of the Interview. The final section, section four, evaluates the differences of satisfaction of the respondents in accordance to their age and gender.

The conduct of this study entails a detailed account of the demographic profile of the respondents.  It is assumed that the attributes of the respondents will influence their behaviour and answers on the survey questions.  Of particular significance to the achievement of the goals and objectives of the study – which is to be an instrument of analysis for the institution to gauge where it is now and where it is heading, thus what changes are to be made – is to be able to answer the following questions: 

1.      How applicable is System Availability Management for Small to Medium-sized Marine Shipping Companies in Hong Kong?

2.      What are the factors that affect the success of System Availability Management to the said industry?

3.      What measures should be done in developing System Availability Management for Small to Medium-sized Marine Shipping Companies in Hong Kong?

 

4.2 Demographic Profile of Respondents

The profile of the respondents is presented in terms of age, gender, civil status, educational attainment, occupation, and length of service in the company.

Figure 1. Age

Figure 1 shows the age range of the respondents. Almost fifty three percent (52.5%) of the respondents were between 41 and 50 years old, showing that most of them were already considered as adults. On the other hand, 20% of the respondents were between 31-40 years old. 17.5% of the respondents were between 20-30 years old.  Moreover, 10% of the respondents were in the 51-60 years old age range. The apparent diversity of the maturity of the respondents reflects several implications in the study’s findings. To illustrate, almost 90% percent of the respondents stated that they were currently occupying a managerial position in the company. In relation to the age bracket of the respondents, the researcher could presume that in the said percentage, a considerable number could be among the adult members of the population.  Therefore, these respondents were all mature enough to give some personal insights concerning the system availability management, thus they were all reliable.

Figure 2. Gender

 

Figure 2. The number of male respondents (67%) is quite far to the female (33%) with a total of 13 females and 27 males. Based on these figures, the dominant gender among the respondents are male. Based on the collated questionnaires, over a half of the population were composed of male respondents while 33% were female. Even though the male respondents dominate in terms of responses, the researcher made sure that this wouldn’t affect the overall study. Actually, there is also a good number of respondents that represents female category. Male respondents outnumbered female respondents by approximately 34%; this data provided a glimpse of the aggregate size of women in the workforce particularly in the business environment.

Figure 3. Civil Status

Figure 3 shows the civil status of the respondents.  As seen in the presentation 67.5% of the total respondents were dominated by married respondents and only 25% of them are single.  There is a little percentage of respondents who are separated and widow.  The figure shows that most of the respondents are both married and single.  This reason is due to the large number of adult in the sample as compared to those who are young participants.

 

Figure 4. Educational Attainment

Apparently, the respondents were also asked concerning their educational attainment.  As shown in Figure 4, 62% of the respondents which is also considered as dominant responses are graduate followed by 35% which are from college level. This values represent that majority of the respondents possess good educational background which heighten the changes of equality responses to the given survey questionnaire. The survey indicates that most of the respondents are college and graduate that is engage to the study. The diversity of the population is further asserted when the respondents were asked regarding their professional history. This data illustrate the maturity of the respondents particularly in terms of experience. On the other hand, the evident youthfulness of some the respondents, provided by their age and their lack of professional experience could not be considered as deterrence to their responses considering that the researcher has made sure that the respondents are all knowledgeable regarding system availability management.

With regards to the occupations of the respondents, majority of them are either in directorial or managerial positions.  Actually, the average number of years in the company is 5.9. Meaning to say, most of them are serving their respective companies in great number of years which reflects to their understanding towards the current stance of network systems.

 

4.3. Perception of the Respondents

            The following presentation indicates the perception of the respondents on System Availability Management for Small to Medium-sized Marine Shipping Companies in Hong Kong. This section is divided into 3 parts i.e. Security and Privacy Issues, Personnel Qualification and System Satisfaction of Respondents.

 

 

 

 

 

 

 

Table 1. Security and Privacy Issues

Security and Privacy Issues	5	4	3	2	1	Weighted Mean	Interpretation
1. With regards to System Availability Management, marine shipping businesses in Hong Kong is utilising a protocol for securing communications.	0	1	23	14	2	2.58	Uncertain
2. The IT systems within the region (Hong Kong) ensure that loss of assets and privacy due to breaches in the security of transactions is avoided.	0	2	25	10	3	2.65	Uncertain
3. Improving trust is vital to the development of information technology.	13	15	9	3	0	3.95	Agree
4. In accordance to System Availability Management, the use of passwords is utilized to ensure security of information and communication.	0	2	26	11	1	2.73	Uncertain
5. The marine shipping businesses in Hong Kong created a policy that ensures assets and privacy protection.	0	3	30	6	1	2.88	Uncertain

 

Table 1. The proliferation of information technology and in response to System Availability Management is bringing a string of fears about security and privacy issues for both for businesses and customers. The previous table shows the result of the survey questionnaire (see Appendix) towards the perception of the respondents in Security and Privacy Issues to different marine shipping business industries. The column 5, 4, 3, 2, and 1 signifies the 40 respondents who answered to the different degree of responses. For example, in question number 1, there are zero respondents who answered 5, 1 for 4, 23 for 3, 14 for 2, and 2 for 1. Apparently, the weighted mean column indicates the mean answer fora particular question.  For example in question 1, the computed mean is 2.58 and since 2.58 lies under “uncertain” category, then for that particular question majority of the respondents responded “uncertain”. Basically, the previous table shows that most of the respondents has different perception on the given survey statements. All the statements from the survey are clear to the respondents. According to some of the respondents, most of the companies is utilising a protocol for securing communications on the web. Apparently, majority of the respondents was also uncertain if the IT systems within the most shipping marine companies ensure that loss of assets and privacy due to breaches in the security of transactions is avoided which is justified by 2.65 weighted mean. On the other hand, majority of the respondents also accepted the fact (i.e. 3.95 mean) that improving trust is vital to the development of information technology.

Table 2. Personnel Qualification

Personnel Qualification	5	4	3	2	1	Weighted Mean	Interpretation
1. Most of the marine shipping businesses in Hong Kong in Hong Kong has qualified and competent personnel to implement effective network systems.	0	2	33	5	0	2.93	Uncertain
2. Most of the marine shipping businesses in Hong Kong provide effective employee training related to information technology.	0	1	32	6	1	2.83	Uncertain
3. Employees from marine shipping businesses are very much knowledgeable in system networks implementation.	0	3	28	8	1	2.83	Uncertain
4. Most of the marine shipping businesses in Hong Kong make sure that all personnel understand the importance of assets and privacy protection.	0	0	29	10	1	2.70	Uncertain
5. The employees from marine shipping businesses are considered competent in terms of technology usage.	0	1	36	2	1	2.93	Uncertain

 

Table 2. According to Robert H. Elliott and Siriwal Tevavichulada (1999), it is difficult to pick up any professional publication in the field of Human Resource Management (HRM) today without noticing the number of web pages available on-line for the use of personnel professionals, or without seeing advertisements by private companies touting the latest advances in software developments for a Human Resource Information System (HRIS). Moreover, computer technology has been available now for several decades, and HRM offices in the different sectors have increasingly made use of the new technology.

On the other hand, the previous table indicates the perceptions of the respondents pertaining to the enhancement of technology which is mainly about the creation of Enterprise System management in marine shipping business. The illustrated table presented the view of the surveyed individuals to the qualification of personnel of their respective companies. According to the number of respondents, they are not sure if majority of the marine shipping businesses has qualified and hired competent personnel to implement the technology system. On this particular statement, the statistics shows the weighted mean of 2.93 and interpreted as uncertain response. Majority of the respondents is also uncertain if most of the marine shipping businesses in Hong Kong was providing effective employee training which was verified by weighted mean of 2.83.  Moreover, they were also not sure if majority of employees in their companies are very much knowledgeable in IT. According to the surveyed individuals, the advancement of technology may teach the company personnel to cope up to the continuous change in the industry but it seems that the administrators doesn’t have accurate plan of IT training. Thus, according to them, majority of the employees is also uncertain if the company needs to undergo to special training of technology for the progress of both personnel and the marine shipping business.

 

Table 3. System Satisfaction of Respondents

System Satisfaction of Respondents	5	4	3	2	1	Weighted Mean	Interpretation
1. The current information system networks within Hong Kong shipping businesses has a customer satisfaction program.	0	1	32	5	2	2.80	Uncertain
2. The different shipping businesses in Hong Kong adopt a consumer-focused marketing model with respect to the implementation of system networks.	0	0	32	7	1	2.78	Uncertain
3. The company is handling consumers’ complaints effectively through effective system network implementation.	0	0	33	6	1	2.80	Uncertain
4. The current information system networks within Hong Kong shipping businesses offers excellent service to customer.	0	0	31	9	0	2.78	Uncertain
5. The current information system networks within Hong Kong shipping businesses enhance the capabilities of employees to serve their clients.	0	2	34	4	0	2.95	Uncertain

 

            With regards to the development of network systems in marine shipping companies, the respondents were also asked concerning the current stance of the system based on their view or satisfaction rate.  From the review of their responses, it seems that majority of them are uncertain if the current information system networks within Hong Kong shipping businesses has a customer satisfaction program. On the other hand, the idea about the adoption of shipping businesses in Hong Kong to a consumer-focused marketing model with respect to the implementation of system networks also receives uncertain response.  This result only reflects that majority of the respondents are uncertain if this system is for consumers but technically the system was designed to help the staff. As viewed by the respondents, it seems that the system is not quite effective because according to them, they can still handle consumers’ complaints effectively without the implementation of system network. Thus, the statement concerning the stance of current excellent service to customer of information system networks within Hong Kong shipping businesses receive uncertain average response.  In addition, they were also uncertain if the current information system networks within Hong Kong shipping businesses enhance the capabilities of employees to serve their clients.

 

4.4 The Interview

            In accordance to the development of network systems in marine shipping companies and effectively evaluate the current stance of the said industry, interviews to reliable personalities is very vital. From the review of the interview questions, the researcher asked the respondents regarding the age of their current system networks. And luckily, all most all of them stated that the system was working for about 10 years. For them, the adoption of this system as part of the changes in the company is due to their need to connect with the IT department of their other branches.  And with regards to this implementation, some problems also occur such as human resources of IT and miscommunication between IT dept. and users. In response to this problem, the company initiated some actions by requesting some IT experts in the headquarters to handle the project.  Even though this system is quite beneficial, majority of the subjects argued that they are not satisfied to the outcome since there are some system availability problems and the said outcome is still same whether there is a system network or none.

 

4.5  T-test and ANOVA

            It is often argued that satisfaction of an individual is related to their demographic profile.  With this regards, this part of the paper will evaluate the differences of perception of respondents concerning their satisfaction on the current system networks with respect to their age and gender.

            As stated in the previous chapter, the ANOVA statistics was used in order to determine if there is a significant difference between the assessments of the respondents (Guilford, J.P. and B. Fruchter, 1973). 

            Basically, the ANOVA static will determine the significant difference of the variables. However, the ANOVA statistic in this paper was used in order to determine the significant difference between the perception of the respondents regarding their current working schedule and suggested schedule.  Thus, the researcher compares the responses of the respondents to their current schedule and suggested work schedule.

 

            The table below shows the ANOVA table from the SPSS results.

 

 

            From the 40 respondents, the researcher analyzed the responses of the respondents using the ANOVA table above. Basically, in the above ANOVA the total variation is partitioned into two components. Between Groups represents variation of the group means around the overall mean. Within Groups represents variation of the individual scores around their respective group means.  Moreover, Sig. indicates the significance level of the F-test. Small significance values (<.05) indicate group differences. Since all of the variables in table have the significance level greater than .05 then we may conclude that at none of the regions differs from the others. Meaning to say, the perception of the respondents regarding their satisfaction is significantly similar to other in accordance to their age.  Meaning to say, no matter what age group they belong to, they responses towards satisfaction would be similar to each other.

            On the other hand, in order to determine the differences of perception with respect to their gender, the use of T-test analysis was utilized.  The results of t-test analysis are presented below:

 

This table displays the number of cases, mean value, standard deviation, and standard error for the test variable's) within categories defined by the grouping variable. Since the Independent Samples T Test procedure compares the two group means, it is useful to know what the mean values are.

On the other hand, The Independent-Samples T Test procedure compares means for two groups of cases. The mean values for the two groups are displayed in the Group Statistics table. If the significance value for the Levene test is high (typically greater than 0.05), then we may use the results that assume equal variances for both groups. However, if the significance value for the Levene test is low, we need to use the results that do no assume equal variances for both groups. And from the results of our data, all of the statements receives Levene’s .sig greater than 0.05, then we need to use the results that assume equal variances for both groups.

            Basically, a low significance value for the t-test (typically less than 0.05) indicates significant differences between the two group means. In addition, the confidence interval for the mean that contains non-zero values also indicates significant differences. But since all of the results got high significant values with nonzero confidence interval for the mean, then it justifies that there is a significant difference between the two group means.  Therefore, the responses of the subjects towards their satisfaction would be similar to each other regardless of their gender.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 5

Research Findings & Conclusions

 

5.1 Research Findings

Based on the gathered information, the respondents asserted that the System Availability Management for Small to Medium-sized Marine Shipping Companies in Hong Kong is in good condition however there is always a room for improvement. The qualitative interviews with these respondents indicated that it is important for them to have a system networks for good communication but still it seems that the outcome was still similar even tough there is no System Availability Management at all. The interviews highlight some related points: The customer is as an important source of valuable knowledge in terms of what they prefer, what they want in service, the price, the quality and the type of negotiation they want to take place, thus system innovation is needed.

Basically, with rapid economic growth in terms of network system, more IT-based consumer are becoming available. This also applies in different businesses not only in for Small to Medium-sized Marine Shipping Companies in Hong Kong. The changing market structure of the transitional economy in these countries makes it very difficult for consumers to choose products/services. This has also allowed them to be more critical on the quality and the price of the product/services they are buying especially in the network-based business.

            Apparently, this section of the study will focus on summarizing the intent of the paper and also include the needs of the paper, and as such will also compress the ideas presented in the previous chapters, its intent, and its intended outcome. As such, it will present the whole study in a few paragraphs for the recollection of the readers. Each chapter will be discussed accordingly based on their intended outcome and their intents in order to ensure that the readers will continue to assess the methods that were used for the completion of the study in order to ensure that they have been properly followed.

 

5.1.1 Chapter 1

            The first chapter focused primarily on the many ways in the statement of the problems that the study will have, as well as the hypotheses that were given for the completion of the study. It discusses that the IT has proliferated all over the world and has helped several companies into becoming more successful globally, especially by the services that they are promoting to their clients who are the millions of people now available for their market with this technological advancement. The focus of the study then is with regards to the status System Availability Management for Small to Medium-sized Marine Shipping Companies in Hong Kong; the first chapter concentrates on giving the research problems and the possible hypotheses on the outcome of the study. The purpose of the study was stated for gaining knowledge on the effect of System Availability Management and its advantages and disadvantages for the development of Small to Medium-sized Marine Shipping Companies; it is also for analyzing the effect of System Availability Management integration to Small to Medium-sized Marine Shipping Companies to this relationship as it made the changes, as well as the improvements and the defects that are thought to be found with the use of system networks. The purpose of this study was also included being that it focused on being able to assess the situation and thus be able to help other companies in knowing the advantages of system networks and how to avoid possible pitfalls and problems that may confront them especially with regards to advancement of Small to Medium-sized Marine Shipping Companies in Hong Kong.

 

5.1.2 Chapter 2

            The second chapter meanwhile focused on the related literatures and studies done that have almost the same theme as this research, or else studies that discussed factors that have affected this study. Although there have been several studies that focused on the effect of system networks to the business, the chapter focused primarily on the different aspects and elements that are included in this study, thus partitioning the discussion of the related materials to several sections: the first will be focused on the definition of information technology, which may include a short history and its direction for future use. There are some sections that focus on development and use of information technology.

 

5.1.3 Chapter 3

            The third chapter discussed the methods that the researcher has used in order to gain the information that will be used for the study. It is important to note that the researcher has used questionnaires and were presented to the respondents through the survey method to gather the information from notable respondents who will be part of the study, and that the analysis of the outcome is based on the interpretation with the use of the Likert Scale. The Likert Scale will be used to measure the opinions of the respondents with regards to IT integration to Small to Medium-sized Marine Shipping Companies in Hong Kong. There are 40 surveyed people as respondents of the study in order to gain validity in their answers for the study; all of these respondents were randomly chosen.

 

5.1.4 Chapter 4

            The fourth chapter, meanwhile, focuses on the presentation of the data that were garnished from the respondents who answered the questionnaire, and also presents the analysis and the interpretations of these data. The findings of the study showed the demographics of the respondents, who were made up mostly of the staff from a particular Small to Medium-sized Marine Shipping Companies in Hong Kong and who uses the IT to build strong affiliations and bonds with their customer, thus raising the possibility of them being able to answer the questions and be able to provide the needed information for the analysis of the data. This chapter then focuses on being able to provide the information and gathering them systematically for the formulation of the conclusion that will be presented in this chapter.

Apparently, it was illustrated that that System Availability Management is widely utilized in most marine shipping businesses. And in line with that, the respondents revealed that information technology systems is implemented in most businesses because of its timely and in-demand nature. It was all justified that there are evidence that most businesses utilized information technology. Thus, the respondents validated that information technology have an impact to most businesses but not necessary to marine shipping industry.

On the other hand, the respondents were also asked with their perception on the advantages that can be acquired in the application of information technology on different businesses revealing that the respondents agree that information technology can also be a symbol of power and control at the industry, class, or societal level; there will be mass customization of products and services, specifically tailored to different cultures or national idiosyncrasies, at no incremental cost relative to standardized mass production and companies that would increasingly be "born global", immediately having a global presence and avoiding the long and expensive process of building an international network of affiliates and personnel; and the application of network systems noted to appeal to people as entertaining or status-improving technology.

            However, the respondents are uncertain if the use of computers has been found to signal competence and rationality and managers and professionals associated having a computer in one's office with being more status conscious, career oriented, dynamic, logical, open-minded, younger, and less conservative. They also strongly disagree that the application of System Availability Management found to perform a descriptive function transmitting information about an organization.

            Basically, surveyed individuals believes that the advancement of technology may teach the company personnel to cope up to the continuous change in the industry but it seems that the administrators doesn’t have accurate plan of IT training. Moreover, majority of the employees is uncertain if the company needs to undergo to special training of technology for the progress of both personnel and the marine shipping business. Actually, the respondents were also asked concerning the current stance of the system based on their view or satisfaction rate.  From the review of their responses, it seems that majority of them are uncertain if the current information system networks within Hong Kong shipping businesses has a customer satisfaction program. They stated that, albeit this system is quite beneficial, majority of the subjects argued that they are not satisfied to the outcome since there are some system availability problems and the said outcome is still same whether there is a system network or none.

 

5.1.5 Chapter 5 and Chapter 6

            With these data gathered for the completion of the study, then these chapters will then focus on analyzing the outcome of the study and also with providing the necessary conclusions that were derived from the information gathered from the respondents. These conclusions will be helpful for the formulation of more data that will help Small to Medium-sized Marine Shipping Companies in Hong Kong in knowing what strategy they may use in order to gain better advantage over their competitors. Most of all, taking advantage of recent technology for communication may help save the company from spending too much money and also further advance their abilities to provide the necessary services for their partners and clients.

 

5.2 Conclusions

            This section will focus on the information that was derived from the respondents of the study. These were collated and put together, and finally assessed, especially based on the characteristics of the respondents and how they believe the outcome of the system networks has managed to alter the methods that the Small to Medium-sized Marine Shipping Companies in Hong Kong are making. It is through this that the researcher will be able to analyze the study and also be able to give the definite outcome of the conducted study to the readers based on the findings. These conclusions were derived from both the information gathered from the respondents while also integrating some of the data that were collected from the list of literatures that were reviewed in the second chapter. This method has helped with the integration of the study and also ensures that the information from previous studies and books were considered in order to derive the outcome from these facts.

            Moreover, these analyses will also be based on the combination of the information taken from these two sources, and will also further focus on the problems that were given in the first chapter. It is through these that the researcher was able to readily prepare which issues should be focused on and how they must be approached in order for them to be answered in this paper.  The following conclusions were derived based on the findings of the study regarding the impact of information technology on Small to Medium-sized Marine Shipping Companies in Hong Kong:

 

1. System Availability Management for Small to Medium-sized Marine Shipping Companies in Hong Kong widely utilizing and implementing information technology with the awareness of its impact to businesses development.

 

2. The advantages that can be acquired from the application of information technology are information technology can also be a symbol of power and control at the industry, class, or societal level; there will be mass customization of products and services, specifically tailored to different cultures or national idiosyncrasies, at no incremental cost relative to standardized mass production and companies that would increasingly be "born global", immediately having a global presence and avoiding the long and expensive process of building an international network of affiliates and personnel; and the application of IT noted to appeal to people as entertaining or status-improving technology.

 

Moreover, in the application of information technology on business industry, information technology transformation is very costly which makes a disadvantage; IT will not "change everything overnight"; improper use of Information Technology on how business is presently operates; and information technology application sometimes use to destroy other own interest.

 

3. Among the foremost advantages posed to the respondents were ease of transaction, flexibility in updating customers, cost efficiency and it saves time and effort. In all these propositions, the respondents exhibited high approval ratings which only corroborated the earlier assumptions on the advantages of doing business online. Such are the basic reasons why many are hopping along the boat of an Internet based industry. Except for ease of transaction where few of the respondents were somewhat disconcerted with the idea, none of the respondents disagreed on the proposed advantages, which have been assumed beforehand. This gives us reason to believe that in general, companies operating online agree that conducting business via the Internet offers farfetched advantages.

 

Alongside these farfetched advantages is the inevitable- the disadvantages. For the purposes of this study, we only included three ‘intellectually’ established disadvantages. These were isolation, information overload and the issue of establishing trust.  Among the three, the issue of establishing trust between two contracting parties appears to bear heavily. Majority of the respondents, fear that they might be cheated one way or another. Information overload and isolation from the social arena don’t seem to have much of an impact to the respondents. Quite surprising though is the result that majority of the respondents are not really baffled by these disadvantages. They somehow look at them as trifling to pose serious concern to the affairs of their commerce.

As far as this study is concerned, there is no strong evidence regarding the idea of IT based commerce being good to a certain business particularly in Small to Medium-sized Marine Shipping Companies in Hong Kong. Although a larger percentage of respondents believe that network based industries are good to business, those who say otherwise does not lag behind significantly to claim that the result is representative of the sentiments of the majority. In the long run, however, we can look at IT based businesses as becoming the more practical means of doing business.

As per findings of this study, the researcher came up with the concluding finale that IT-based business is considered as the more practical means of doing business in terms of its aforementioned advantages- speed, ease of transaction, saves time, money and effort, among others. But still, it seems that it is not beneficial to Small to Medium-sized Marine Shipping Companies in Hong Kong.

By and large, the bottom line of this study boils down to the conclusion that the IT is an important tool in business negotiations but not to all types of business. This study has confirmed the predetermined credence of the Internet being a significant dynamic in business enterprises. Furthermore, it has also verified the earlier assumptions about the relative advantages of IT as a communication tool. These advantages of the Internet in terms of communication extend beyond business implications. It’s precisely a direct upshot of this fact that the Internet has been deemed a vital necessity in contemporary business contracts. IT juxtaposed with business transactions proves to be an efficient combo.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 6

Evaluation

From the questionnaires given to the respondents and analysis conducted by the researcher, the researcher determines the problems encountered by the respondents and the solutions applied or suggested solution to do in order to resolve the said problem. Basically, the researcher identified the most common problems they’ve encountered with regard to the implementation of network-based services to the company and solutions would they suggest to solve these problems they’ve mentioned.

            According to the majority of surveyed individuals, there are several problems arises when it comes to the implementation of system networks to marine shipping businesses. The following list shows the summary of the most common problems they encountered:

·        lack of resources to implement system networks

·        lack of understanding of the system networks trend on the market

·        lack of funding to invest on system networks

·        ground staffs are resistance to change, mostly due to job security and cultural issues

·        senior management do not give full support on computerization

·        lack of long-term plan / vision on system networks

·        concerns about the infrastructure of on-going maintenance, both software and hardware

·        bad experience on application developer in delivering customized solutions

·        misunderstanding of 'plug-and-play' solution, as someone need to drive and responsible for the project

·        failed to communicate with the suppliers due to the limited knowledge of system networks

·        failed to specify the scope of work and to define the user requirements

·        project is aborted half-way through due to change of management team

·        implementation takes too long and management is loosing patient

·        management is often confused by state-of-the-arts system networks gadgets and business applications

·        management is hesitate to commit as they believe system networks may not be essential in service industry

·        difficult to justify the return on investment on system networks

·        lack of planning on change management

 

With regards to these problems, the following lists show the summary of suggested solutions based on the perception of the respondents.

·        outsourcing system networks infrastructure

·        employ team of system networks professionals

·        raise funding on system networks projects

·        employ system networks consultant

·        assign person-in-charge internally to collect user requirements

·        select off-the-shelf instead of customize solution.

·        look for one-stop-shop supplier to provide services on system networks infrastructure and applications

Based on the technicality with regards to the conduct of this study and the results obtained, the researcher formulated the following recommendations. The recommendations will be broken down into two parts. The first part will deal with the technical aspects regarding issues that are worth looking at beyond the scope of the study and the second part will be cored on the results obtained. The third part, meanwhile, will deal with recommendations with regards possible further studies based on the finding of this research.

 

6.1 Issues for Consideration

1.      Future researches in related studies should get hold of a bigger number of respondents coming from diversified business categories. A larger bulk of a wide range of respondents will have far greater implications at the same time the results will encompass a more extensive analysis of the objectives.

2.      This study was not able to take into account business patterns among the respondents. This is an interesting area to look at in future researches to examine correlations of business practices among industries operating through system networks.

3.      Evidence of businesses operating through system networks is also becoming apparent. These are personal ventures being operated by independent entrepreneurs. It would also be interesting to look at its implications to system networks based business in general.

4.      Competence between business categories is another important aspect to look at. Which business heads the queue of system networks based industries in terms of revenues and patrons? It’s also interesting to study the business patterns and management strategies of top earners as compared to the rest.

5.      ‘Regulatory laws’ concerning system networks based businesses is an important issue that’s worth taking into consideration. Are system networks based business practices bounded by international laws? System networks based businesses can pass through international boundaries through the World Wide Web- that means access to a global market. Isn’t the system networks governed by international law constraints with regards to conducting business?

 

6.2  Results of the Study

1.