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    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Studying Efficacy of Organizational and Conceptual Factors on Manager’s Decision Amalendu Bhunia Reader, Department of Commerce Fakir Chand College, Diamond Harbour and IGNOU, Kolkata Chapter, India South 24-Parganas – 743331 West Bengal, India bhunia.amalendu@gmail.comReceived: 2011-10-23Accepted: 2011-10-29Published:2011-11-04AbstractThe purpose of the present research is to investigate the impact of organizational factors on the styles ofmanager’s decision makings and the difference between the perception of managers and employees of thestyles used by managers in India. On this basis, 100 manager and 500 employees has been chosen asstatistical sample. The analytical model of this study is based on General Decision Making Style by Scottand Bruce. Questionnaire validity, content validity and compatibility based on 10 experts and professors aswell as the experimental implementation of the questionnaire between 20 managers and 100 employees andalso analyzing exploratory factor for both questionnaires were checked. According to the Kolmogorov -Smirnov test results have confirmed the normal distribution of the data thus confirmed chi-square test,one-way multivariate analysis of variance (MANOVA) and the two samples T of Friedman were used.Keywords: General decision-making style, organization’s size, position of manager, perception difference,government organizations1. IntroductionDecision making in fact is the most difficult practice and sometimes the most dangerous work everymanager should do. A manager by an incorrect decision may cause irreparable damage to the body of his orher organization (Atayi, 2010). Environmental changes and shifts results in that organizations look at theirmanagers as an important factor to overcome alterations, demands and environmental challenges ahead. Insuch circumstances, managers need endless skills and capabilities (Gholi pour, 2008). Decisions are takenalong with achieving goals and by considering the available resources. Decisions determine the kind ofgoals and the way to achieve them. Therefore decision making is a mechanism which encompasses all theactivities of the organization, and indeed affects all members of the organization as an individual or as amember of the group. Organization collapsed without any mechanism to decide and to set its own target1|Pagewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011individuals who are looking for (Moorhead and Griffin, 2007).Stephen P Robbins thinks of decision as something present and relevant in all tasks. According to HerbertSimons decision means management and management means decisions for efficient use of energy andresources of an organization, which is essential for the manager. Kountz said the existence of plan; programand policies depend on the existence of the decisions. Studying of decision making processes is not a newtopic. In recent years, numerous studies in various fields and surrounding areas took place about decisionsmaking as a subject that results in offering several classifications so far in relation to style anddecision-making models which have been presented by experts (Olivera, 2007). Each of theseclassifications according to which categories of individual, organizational and environmental factors areimportant in the kind of reaction and behavior on how people face decision making situations are differentfrom one another (Karls et al, 2003). Corporate managers considering various influential factors such astheir personal details and their workplace organizational structure and cultural backgrounds of theenvironment use different decision making methods (Mortazavi, 2000).Hafstead (1980) believes the continuing use of a method of decision making to a considerable degreedepends on the subordinates. According to Hafstead classification from the field of culture, managerspracticing in the collectivist culture use different decision making methods in comparison to individualistculture. According to another study, four important environmental pressure factors, interaction with othermembers of the organization, responsibility requirements and characteristic peculiarities is effective inselecting the decision making method (Comer and Becker) decide how to respond to these four determiningfactors of the style by his decisions making. (Gholi Pour, 2008). Scott and Bruce paid great attention in hisstudies about decision-making styles of individuals and factors affecting its internal characteristics andindividual differences of the people. On this basis they introduced five styles of decision making as generaldecision making styles. These five styles are: rational decision-making styles, decision making style ofintuition, dependent decision making style, instantaneous decision-making style and avoidance style ofdecision making (Hadyzadh Moghaddam 2009).Its aim is to find checking the effect of organizational factors like (size, position in the organizationalhierarchy) and the difference of perception between staff and managers about decision making.2. Review of Related LiteraturesOn the subject of this study, the definition of decision making, decision making styles and empirical studiesof decision making are described as follows:2.1 Decision makingHarrison (1987) defines decision making in this way: ((.... a moment in a continuous process of evaluationoptions to achieve the goal of different expectations about how certain actions to decision makers choose theoption that is highly likely to achieve the goal one seeks)) (Roshandel 2009). Prediction, evaluation andcomparing the outcome of solutions available and choosing the available solution for certain to be able toreach an optimal outcome is called decision (Atayi 2010). Decision making is a process which according tothat a specific way of practicing for problem solving is chosen (Astuner, 1982). Munday assigndecision-making process to find various aspects, evaluate and select one among them. This process isobvious in all responsibilities of the manager and helps him in doing all those tasks. (Gholi Poor, 2008).2.2 Decision making Style2|Pagewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Decision making Style has been defined as a habitual pattern that people use when deciding (Driver, 1971)or is called special way of individuals to receive and respond to the decision-making tasks (Harn, 1979).Drive, Bursiue and Mansakar (1990) have noted that the style of decision-making is defined by the amountof information collected and the number of other solutions when the decision is considered. Althoughothers suggest that it is called the differences that people collect data (Hunt, Criztokhiat, Mindel, Viusery,1989, Mackenny and Kane, 1974, 1983 Bruce and Scott 1995). In other words, each individualdecision-making style approach and procedure shows his personality and his reaction to the decision task(Thunholm, 2003). Style of decision-making behavior from a perceptional point of view indicate the kindof behavior and the way people encounter situations when the decision is made (Spicer and Smith, 2005).2.3 Rational Decision Making StyleRational decision-making style conceptually represents a decision to follow a completely logical processwhen it is going to be made. According to rational style objectives are defined clearly, all possible solutionsare selected according to identified goals and finally the best solution is implemented. (Singh, Greenhouse1, 2004).2.4 Intuitive Decision Making StyleIntuitive decision-making style from a perceptual point of view shows the individual’s trust to hisawareness and internal intuition when deciding. Managers of the intuitive style when deciding withoutneeding rational reasons to be a just solution chosen, based on insights into consciousness and instinctschose a solution that seems to fit.(Falloup and et al, 2006).2.5 Dependent Decision Making StyleDependence decision making style from a conceptual point of view represents the mere reliance of thedecision maker to help and guidance from others when faced with decision situations. People, who enjoy thisstyle due to weakness in consciousness and inability to receive information from their environment, aretotally dependent upon others while taking decisions. (Singh and Greenhouse, 2004)2.6 Instantaneous Decision making StyleInstantaneous decision making style conceptually represent decisions as fast and short as possible andinstantly when facing decision situations.2.7 Avoidance Decision Making StyleAvoidance decision making style from a conceptual point of view means dodge any persons decision toadopt when faced with decision situations. In other words people who have this style when confronted withissues and topics that require decisions on their behalf delay the decision as far as possible (Spicer andSmith, 2005).2.8 Difference between managers and staff perceptions of the style used by the managerIt means the existing level of disagreements about the usage of general decision making styles amongemployees and managers. Style in terms of operational decisions is a score that a person gets on thequestionnaire of decision making style. Different perceptions of managers and staff in the style manager usein the organization: The difference from the operational point of view would be the amount of disagreementbetween two questionnaire of management and staff.3. MethodologyThis study made use of a quantitative research approach, and from the viewpoint of relationship between the3|Pagewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011variables (dependent and independent variables) is a type of correlation research.3.1 Population and SampleThe population for this study includes all employees and managers in the counties, governorships and in thegeneral-governor of India in the years 2010.Which according to 2010 statistics is 920 people among which352 are selected including 60 managers and 290 employees which have been classified through a randomsampling method with a simple proportional allocation.3.2 Research InstrumentThe measuring instrument used was a structured questionnaire which was developed and validated byBruce and Scott (1995); Hadyzadeh and Tehrani(2008) Of course with the help of this questionnaire thecontent validity were also approved by professors and managers too where for the structural validity ofexploratory and confirmatory factor analysis and the KMO index was used. The KMO value equals 0.852and the Bartlett test, even at a meaningful level of 0.99% (Sig = 0.000) is rejected. Note that the variancesare equal to 55.21 and specific values of each factor were greater than one, we conclude that the credibilityfactor of this variable is appropriate.3.3 ReliabilityReliability of questionnaires to measure the Cronbachs alpha was calculated that 0.817 of the reliability ofCronbachs alpha showed good general decision-making style questionnaire. Regarding the use ofKolmogorov – Smirnov test the normality of data distribution was confirmed and the appropriate tests wereused as follows. Chi-square test is used to check for the study of relationship status in decision making style.MANOVA or multivariate one-sided is used to investigate the relationship between style of decision-makingmanagers and size of organization. The two sample T test was used to check for homogenization of stylesused by managers and the style diagnosed used by the staff for managers. Friedman test was used for showingthe ranking of decision-making from the perspective of managers and employees and Pearson correlation testwas used to determine correlation between the styles used by managers. Using two software SPSS 18 andLISREL 8.5 analysis was developed and answers were codified with Likert’s range of five options.The collections of questions are offered in two questionnaires. The first questionnaire for managers andofficials, and the second questionnaire for employees and manager’s assistant. Each questionnaire includedtwo set of questions, the first part of the questions related to demographic data of the respondent and thesecond Part of the questionnaire to measure decision-making styles of managers and directors from theperspective of staff which includes 25 questions. 5 of 25 questions are related to the rational style, 5 tointuitive style, 5 to dependent style, 5 to instant style and 5 to avoidance style.3.4 ValidityWhen assessing validity, researchers determines whether a measure used in the study actually does measurewhat the researchers in tends in to measure. As already indicated, the measurement instrument developedby Bruce and Scott (1995); Hadyzadeh and Tehrani (2008) was used in this study. The instrument wasconsidered valid for the purpose of the present study.3.5 Research frameworkResearch framework developed in this study has used the theoretical principles which have been taken fromthe ideas and opinions of experts, scholars and scientists in management science. In designing variables andtheir dimensions we used Tanenbaum and Schmitt, path - goal theory, Heller theory, Fiedler leadership4|Pagewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011contingency theory and also to evaluate them in three stages by a number of university professors and anumber of senior managers. Dependent variables from general decision making styles that were introducedby Bruce and Scott (1995) were used because of completeness and relative comprehensiveness to theclassification with highest usage of in internal and external research was.Theories that have been mentioned above have been used as following in choosing the independent variables.From Tanenbaum and Schmidt theory, largeness and smallness (the size of the organization), nature oforganizational tasks (institutional status and hierarchy) and the theory of perception were used. From thepath-goal theory (House and Mitchell) in order to determine the environmental variables such as position inthe hierarchy, variable and size like the perception of the style used for this theory. This theory has been usedin this context that differences in decision-making skills exists among managers and subordinates(employees). Also under this theory, the leader and director’s responsibility is to match his actions to coupwith the contingency situations. But with using these cases, we recognize the importance of views andperceptions of employees and managers with decision-making styles. we choose it as the independentvariable and from the theory of Heller the position of manager as variable is emphasized. Because,according to Heller theory the importance of decision for the organization is crucial for choosing the style andthis related to the decision maker and his position.According to Heller another effective cases for choosing the style is the gaps in the hierarchy whichemphasis manager’s position.Heller mentions span of control as another important factor in choosing decision making style (Heler, 1998).This will confirm the size and position variable because the position in the hierarchy and the size andposition as a place that can monitor more or Less effectively (In the general-governor example according tothe size and position success of surveillance area is larger than the county governor and the governors staffand area monitoring is more than the county administrator. According to Heller who conceded that the timeand place specific requirements is very important in selecting the style of decision making procedure andalso the nature of the tasks (Project and Association Managers) has been noticed again and place has beenemphasized.3.6 Research HypothesesHypothesis IH0: There is relationship between organizational factors and management decision-making styles.H1: There is relationship between the position of managers in organizational hierarchy and decision makingstyles.Hypothesis IIH0: There is relationship between organization size and the style of decision making.H1: There is difference between managers and staff perceptions of decision-making styles4. Empirical ResultsAccording to chi-square test (Table 1) statistics and P-value = 0.015 which α = 0.05 is smaller, assumptionof zero meaning the independent position of managers and the tendency the type of decision making stylesrejected and meaningful correlation between these two will be accepted. Considering the above table it isobserved that most managers who are employed in the Governor-General (nearly 50 percent) use rationalstyle. It is seen that the dominant style in the governors management style used is intuitive. In the county it5|Pagewww.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 is also observed that the dominant style used by managers is dependent style Links to organization sizeManager’sManager’s Position Governor-General Governor County Total Decision making Style Rational 50.0 20 20 41.7 Intuitive 44.1 53.6 25 36.7 Dependent 5.9 16.4 50 21.7 Sum 200 200 100 100 Chi-Square results 12.327 df = 4 P =0.017 Table-1: Adaptive table and chi-square test to evaluate relationship of the position of managers and decision-making style 6|Page www.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 Table-2: Descriptive Statistics; Effect of Size of Organization on Decision Making Styles Organization Mean Standard Deviation Governor-General 2.71 0.64 Governor 3.30 0.63 Intuitive County 2.58 0.70 Total Sum 2.86 0.68 Governor-General 2.84 0.69 Governor 2.93 0.83Dependency County 3.55 0.69 Total Sum 3.53 0.71 Governor-General 3.46 0.76 Governor 2.24 0.98 Rational County 2.11 0.94 Total Sum 2.26 0.84 Governor-General 2.29 1.08 Governor 2.31 1.02 Instant County 2.17 0.72 Total Sum 2.38 1.00 Governor-General 1.65 0.77 Governor 1.76 1.03 Avoidant County 1.50 0.52 Total Sum 1.67 0.80 Table 2 indicates descriptive statistics based on the organization. It can be seen for each style based on organizations means are not equal and a difference between them is observed. According to Table 2 it can be seen that the rational style scores is greater for Governor-General, therefore it is said that Governor-general Managers have greater tendency to use a rational style. For intuitive style mean scores is greater for governor office, consequently it is said that governor managers have greater tendency to use intuitive style. For dependent style mean scores for the county is larger, therefore it is said that county managers have greater tendency to use the dependent style. For two style of avoidant and instantaneous we can’t say which organizations uses this kind of style more because approximately they have equal means. Table 3 show the homogeneity of variance tests indicated that homogeneity of variance test here will be accepted with regard to Sig = 0.142. Most often this test is rejected, in which the statistical population is non-normal; but data in this study is normal. Two indexes of Pillais Trace and Wilks Lambda are used to show this matter that weather the mean for the group offered are equal or not. Most social science studies use Wilks Lambda index. The Pillais Trace is also a good substitute for this. 7|Page www.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Table-3: Homogeneous variance test Boxs M 53.769 F 1.490 df1 30 df2 3658.630 Sig .142 Table-4: Multivariate analysis of one way variance to evaluate the relationship between the kind of management decisions style and size of organization Coefficients Coefficients F Valence Sig. Coefficient of Degree relationship between two factors aConsta Pillais Trace .987 811.083 5.000 .000 .987 a nt Wilks Lambda .013 811.083 5.000 .000 .987Amoun t Age Pillais Trace 1.202 8.212 10.000 .002 .401 a Wilks Lambda 1.802 7.238 10.000 .006 .405In this section it can be seen that the Wilks Lambda is equal to 1.802 and Sig = 0.006 showing that this testis statistically meaningful. (F (10, 106) = 7.24, P <0.05) shows that the hypothesis of equality between theaverage of three organizations for the styles used by managers can be rejected and it can be shown that inany organization of which style is used more. Also according to the last column of Table 4 (the relationshipbetween two factors) can be seen this ratio is equal to 0.405 which show a good relationship betweenorganization size and type of style management use.Hypothesis II: There is difference between managers and employees perception in the organizationdecision-making styles.To investigate this hypothesis, we first check it completely to decide if there is difference betweenmanager’s and the style of its managers told by the employees that there is a difference or not? If thedifference was meaningful we would use Friedman test and the gaps would be identified.If in this test α = 0.05 P-value < the assumption of equal means is rejected and the assumption of existingdifferences is accepted.8|Pagewww.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 Table-5: Two sample T test to evaluate homogeneity of style used by managers and the style diagnosed by the employees for the managers p-value T Valence Mean Standard Mean Number Group Title Degree differences Deviation and confidence interval 0.001 3.32 384 .21, (.086 , .69786 3.24 100 Managers Homogeneity of 0.34) Style used by .38379 3.03 500 Employees managers and the distinguished style used by Employees for managersAccording to Table 5 and test results it can be seen that according to values for t = 3.32 and P-value = 0.001 andthe value of the mean difference equaled to 0.21 the result is a meaningful difference between the style used bymanagers and the type style used by Managers from employees viewpoint. As it is observed, the style managershave offered about their decisions is different from the employees recognize for their managers.To show this difference it was acted as follows:Table-6: Friedman test ratings of decision-making styles from the viewpoint of managers and employees Style Used with Managers from Employees Style Used with managers Perspective Decision making Style Rank Coefficient Rank Coefficient 3 2.99 1 3.98 Rational 1 3.97 2 3.84 Intuitive 2 3.52 3 2.98 Dependent 4 2.70 4 2.13 Instant 5 1.83 5 2.07 A Table-7: Friedman test as a meaningful one on prioritizing the style used by managers and the style used by managers through employee’s viewpoint Style Used by Managers from Employees Viewpoint Style Used by managers 290 60 Number 319.291 102.385 4 4 Valence Degree .000 .000 9|Page www.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011The test results used for the styles of managers with value of chi-square = 102.385 and on the two-star level(sig = 0.000) is meaningful. Also test to see the style used by managers from employees viewpoint werechecked. The test result value chi-square = 319.29 and with the value of 0.001 at the two stars level ismeaningful.According to the coefficient table of Friedman test we can show the gap in the T-Test as indicated.Considering the table it can be concluded that the rational style is of the first priority or the dominant styleused by the managers. So it is observed regarding the employees opinion that is given if the test result inthe desired employee is observed that this style is located in the third rank. Intuitive style is ranked secondin place by manager’s opinion but it is in the first place by employee’s. Also it can be seen that the directorshave declared that their third priority in the decision making process is the dependency style, whileaccording to employees in management decision making process this style is in the second priority. Forinstant and avoidance style managers and employees ideas are the same, and they are given the same rank.Now that the overall gap and the difference between the viewpoints of employees were identified in thissection we investigate the difference and gap between the viewpoints of staff and managers in differentorganizations separately. In this test if α = 0.05 >P-value supposing equal means is rejected and theassumption of existing data is accepted.According to Table 8 and the test results, it is observed for the Governor-general according to t = 4.9 andP-value = 0.000 and mean difference in the amount equal to 0.46, we can conclude that there is ameaningful differences between the mean type of model used by managers and the average type of modelUsed by managers from employees viewpoint. A model that managers offer for their decision makingprocess is different from what employees distinguished for their managers.To show this gap and difference as before we use Friedman test as follow Table-8: The two-sample T test to evaluate the homogeneity of style of manager’s used and distinguished style used by employees for managers of Governor-General Decision making Style used by Decision making Style used by Governor-General managers through Governor-General managers Employee’s Viewpoint 144 34 Number 141.945 63.130 4 4 Valence Degree .000 .00010 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Table-9: Friedman rank test, decision styles from the viewpoint of managers and employees of the Governor-General Style used by managers From Style used by managers Governor-General Decision Employees perspective making Style Rank Coefficient Rank Coefficient 3 2.92 1 4.34 Rational 2 3.48 2 3.71 Intuitive 1 3.97 3 2.75 Dependent 4 2.69 4 2.65 Instant 5 1.94 5 1.56 Avoidant Table-10: Meaningfulness of Friedman test on prioritizing the style used by managers and the style offered for manager’s from employee’s viewpoint Decision making Style used by Decision making Governor-General managers through Style used by Employee’s Viewpoint Governor-General managers 144 34 Number 141.945 63.130 e 4 4 Valence Degree .000 .000The test results used for the styles of managers with much chi-square = 63.13 and at the two-star level (sig= 0.000) is meaningful. Also test for the style used by managers from employees viewpoint were checked.The test result value chi-square = 141.95 and 0.001 at the two star level is meaningful. According to thecoefficient table of Friedman test we can show the gap that was offered in the difference of T-Test indicated.By viewing the table it is concluded that the prevailing style of management used and to have the first priorityallocated to is the rational style. As with the following test result about the employee’s opinion, it can be seenthat the rational style for managers from employee’s viewpoint is located in the third place. From manager’sviewpoint dependency style have the third place in their decision making process; which employees in thisprocess are putting priority on dependency style for their managers. Intuitive style of the managers in theirdecision making process and from the viewpoint of employees in the process of decisions is in second place.There is no difference of opinion between managers and employees in both style avoidance and instantaneousone and both groups have put them in the fourth and fifth priority.In this test if α = 0.05> P-value, the assumption of equal means is rejected and the assumption of existingdifferences will be accepted11 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 Table-11: Two sample T test to evaluate homogeneity of style used by managers and the style diagnosed to be used by employees for their managers in the governorshipp-value t Valence Mean Standard mean Number Group Title Degree differences and Deviation confidence interval .003 2.99 127 .288, (0.097, .35 3.2857 14 Managers Homogeneity of Style 0.48) used by managers and the .34 2.9974 115 Employees distinguished style used by Employees for managers in the County According to Table 11 and test results, it can be seen that the results for governorship according to t = 2.99 P-value = 0.003 and mean difference equal to 0.288, we can conclude that there is a meaningful difference between the mean type of model used by managers and the average type style used by managers through the employees viewpoint. To show this gap and difference like the previous part we use Friedman test as follows. Table-12: Friedman test for the ranking of the decision styles of managers and employees in the governorship Styles used by managers through Styles used by managers Decision making Style employees viewpoint Governor Rank Coefficient Rank Coefficient 3 3.06 3 2.54 Rational 2 3.61 1 4.07 Intuitive 1 4.02 2 3.86 Dependent 5 1.66 4 2.34 Instant 4 2.65 5 2.00 Avoidant Table-13: Meaningfulness of Friedman test on prioritizing style intended for managers; the intended style for managers by the employee’s viewpoint Styles used by managers Styles used by managers through employees viewpoint (Governor-General) (Governor-General) Number 14 115 18.964 158.019 V 4 4 .001 .000 12 | P a g e www.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011The test results used for the styles of managers with value of chi-square = 18.96 and two-star level (Sig =0.000) is meaningful. Also the test used for managers model used from the viewpoint of employees waschecked. The test result value is meaningful for chi-square = 158.019 0.001 in the two stars. According toTable 13 Friedman coefficients test gap that has been indicated in T-Test exists a difference.With observing table 12 we can conclude that the dominant style used by managers with the first priority isthe intuitive style. While by considering the outcome of this test about the opinion of the employees it canbe seen that employee’s intuitive style of the managers from employee’s viewpoint is ranked second. On theother hand stuff believes dependence style to be in the first place, while the managers own opinion saw thedependency style in the second place.Managers have placed rational decision making style in the third priority and this is the same for employees.Managers in their process of decision making have placed instant style in the fourth place and theavoidance style in the last. In this test if α = 0.05> P-value the assumption of equal means is rejected andthe one related to existing differences will be accepted. Table-14: The two sample T test to evaluate homogeneity of style used by managers and the style distinguished by the employees for managers in the county p-value t Valence Mean differences Standard Mean Num Group Title Degree and confidence Deviatio ber interval n .013 -2.58 41 -.36, (.064-, -.07) .57 2.7 12 managers Homogeneity of style used by .33 3.03 31 Employees managers and styles diagnosed by employees for managers in the countyAccording to the above table 14 and test results we can observe that for the county according to t =- 2.58,and P-value = 0.013 and mean difference in the amount equal to 0.36-the result is a meaningful differencebetween the mean type of model used by managers and mean type of model used by managers throughemployee’s point of view.To show this gap and difference as part of the Friedman test like before we act as follow13 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Table-15: Meaningfulness of Friedman test on prioritizing the style used by managers and the style used by managers from employee’s point of view Styles used by Managers through Employees Styles used by managers County’s Decision Perspective making Styles Rank Coefficient Rank Coefficient 3 3.02 3 2.79 Rational 1 3.76 2 3.50 Intuitive 2 3.39 1 4.67 Dependent 5 1.97 4 2.58 Instant 4 2.87 5 1.46 Avoidant Table-16: Friedman test for ranking decision making styles from the view point of managers and employees in the countyStyles Used by Managers from the view Styles Used by point of Employees (Governor General) Managers 31 12 Number 23.747 28.157 4 4 Valence Degree .000 .000The results of this test is meaningful for the styles used by managers with value of chi-square = 28.16 andtwo-star level (sig = 0.000). Also the test was checked for the model used by managers through employee’sviewpoint. The test result is meaningful with the value chi-square = 23.75 and 0.001 in the two star model.According to the Friedman coefficient table test we can show the gap that exists in different outcomes ofT-Test.By observing this table we can conclude that most important and the first style in managers claimed to beimportant in their decision making style is the dependency one. While this styles enjoys the second placein the decision making process of the employees. Managers have stated that using intuitive style is in thesecond priority in which employees have given it the first priority. At the county managers and staff haveplaced the rational style in the third priority and in this case there is no difference of opinion betweenmanagers and employees. Managers have placed the instant style in the fourth priority but employees claimthat managers use the as their last priority. Also managers have placed the avoidance style in the last placebut employee stated that they use this style as their fourth priority.5. Discussion and ConclusionThe purpose of the present research is to investigate the impact of organizational factors on the styles ofmanager’s decision makings and the difference between the perception of managers and employees of thestyles used by managers in the Governor-General Office in India. Finding this research indicate there arerelationship between position of managers in organizational hierarchy and decision-making style. Thefollowing research results indicated that organizational factors such as size of the organization and position of14 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011director of the organization in organization’s hierarchy influence the style of overall decision makings by themanager. Also there is a meaningful difference between the perception of managers and staff about the styleof manager’s decisions.To testing the hypothesis, both Chi Square and one sample t is checked and is used in the status of eachorganization. Results of Chi Square test both with ((017 / 0 = P and 72 3 / 12 = X_14 ^ 2) showed that there ismeaningful relationship between the position of managers in organizational hierarchy and decision models.According to the table of results it can be seen the largest percentage of managers in the Governorate-generaluse rational style (50 percent) and the largest percentage of managers in the governors use intuitive style (6 /53) and the highest percentage for styles used by the managers in the county is the dependent style .(50percent).The t test results for each organization confirmed the chi-square test results. The average scores for theGovernor-General has the highest mean, which shows that in the governor-general rational style is usedwhich is the prevailing style. For the governor in the second row it shows that the majority of managers useintuitive style. Also for the county it can be seen that the mean of opinion offered was less than averagewhich shows the usage of managers from the next style or the dependent one.We survey relationship between the size of the organization (Governor – General, Governor and county) anddecision making styles. We used multivariate analysis of variance or MANOVA and due to this case that theseen meaningful is smaller than acceptable meaningful level of value (005 / 0). Therefore supposing equalmeans for all styles in any organization is rejected. So according to table results we can conclude that for therational style the highest mean is in the governor-general and for the governor the highest mean belong tointuitive style and for dependent style the highest mean can be seen in the county section of the study. But fortwo style of instantaneous and avoidant the meaningful difference between the organizations is not found. Inthis regard, I couldn’t find a research to compare the finding with. Also this research indicates there isdifference between managers and the staff perception of decision-making models in different organizations.To testing the above hypothesis in general the two-sample independent t-test and Freidman test was used.Then these tests were repeated separately to incorporate organizational hierarchy to identify differentperspectives of each organization and the following results be obtained.In the overall test the difference between the perception of management and staff from decision making stylewith values (001 / 0 = p and 32 / 3 = (348) t) were meaningful. Friedman test result showed that frommanager’s viewpoint the rational style has the highest priority, intuitive style second priority and the thirdpriority belongs to dependent style. While from staff viewpoint intuitive style highest priority, dependentstyle second priority and rational style is in the third priority. From the viewpoint of managers and employeesinstantaneous and avoidant style are in the fourth and fifth place respectively.Test results for the Governor-General with values (001 / 0> p and 9 / 4 = (76 / 0) t) has shown a meaningfuldifference for management and staff perception. Friedman test results indicated in this regard, rational stylefor managers in the highest priority, intuitive style in the second place and the dependence style on the thirdpriority. While from employee’s perspective dependent style in the highest priority, intuitive one in thesecond and rational is placed in the third priority. In instantaneous and avoidant style from the perspectiveof managers and employees are in the fourth and fifth place respectively.15 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011The test for governor with a value of (003 / 0 = P and 99 / 2 = t127) show a meaningful difference betweenmanagement and staff perceptions of the decision model.Freidman test result in this case shows from manager’s perspective intuitive style has the highest priority,second priority belongs to dependent style, the third priority goes to rational style and instantaneous andavoidance styles have the fourth and fifth priorities respectively. While the results of this test from theperspective of employees showed that; dependent style in the highest priority, intuitive style in the secondpriority, rational style in the third, avoidant fourth and instantaneous style is in the fifth priority. The resultsshowed that the in the governor, from the perspective of both managers and employees the dominant style(rational) is in the third priority.Test results for the county with values (05 / 0 = α> 013 / 0 = P and 58 / 2 - = t41 showed that there ismeaningful relationship between manager’s and staff perceptions of the managers decision models. Freidmantest results in this regard showed that from the perspective of managers in the county dependency style hasthe highest priority, intuitive style in the second priority, rational style in the third priority, fourth priority goesto instantaneous style and the fifth priority belongs to avoidance style. While from the perspective ofemployees, the intuitive style has the highest priority, dependence one second, rational style third, avoidancefourth and instantaneous style has the fifth place.The results showed that in the county like governor, the dominant style used from the viewpoint of both staffand managers is in the third priority.ReferencesAtayi, M. (2010). Multiple Criteria Decision Making, Shahrood, Deghat printing Company. Organizationalbehavior, Grid Publishing, Columbus, OH.Behling, o, Gifford, W.E, & Tlliver, J. M. (1980). Effects of Grouping Formation on Decision Makingunder Risk. Decision Sciences, 11, pp. 272-283.Driver, M.J. (1979). Individual Decision Making and Creativity, in Kerr, S. (Ed.), Harper Collins, pp.61-62.Driver, M.J., Brousseau, K.E. and Hunsaker, P.L. (1990). The Dynamic Decision-maker, Harper Collins, pp.9-11.Falop.janos, David, Roth, Sehweik, Charles (2006). What is Mean Decision Making in the Content of Eco– Infarmatic, www. Google.comGholipoor Rahmatullah, (2008). Organizational Decision-Making and General Policy, Tehran, publisherSamt.Harren, V.A. (1979). A Model of Career Decision Making for College Students, Journal of VocationalBehavior, Vol. 14, pp. 119-33.Harn, Michael and M. Ramesh (2002). The Study of Public Policy Translated by Mansourian, Abbas andEbrahim Golshan Tehran, Government publications Education Center., pp. 76-81.Hadyzadeh Moghaddam, Akram and Tehrani, Maryam (2008). Studying the Relationship between GeneralDecision Making Style in Governmental Organizations. Public Research Office, Pub 1, No. 1, Autumn andWinter, From Page 123 to 138Hatch, Mary Joe, Organization theory (2006). Translated by Danaifard Hassan, Termeh Publishing Company,16 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011first published in Tehran, pp. 6-7.Heler,Frank ; Drenth,Pieter ; Koopman Pool & Rus ,Velijko.(1988) .”Decision in Organization: A ThreeCountry Comparative Study” London, Sage Publication, P: 250Jean Lublan Veex,Silvi George, Holyfield C N, Lisi Stephen, Broodrick Sun Ardis (2009). Translated By Dr.Tahir Roshandel Arbtany, Tehran, Neil Printing Company.Koontz, Harold & Weirich Heinz, (1998), "Management", 9th, ed, pp. 51-54.Keen.P.G.W. (1973). The Implications of Cognitive Style for Individual Decision Making. Unpublisheddoctoral dissertation, Harvard University Graduate School of Business, pp. 13-21.Loizos Th. Haracleous, (1996). Rational Decision Making: Myth or Reality? Management DevelopmentReview, vol 7, No 4, p 16.Moreheadd and Griffin (2006). (Translated by Dr. Seyed Mehdi Alvani – Dr. Gholam Reza Memar Zadeh)Twelfth Edition, Organizational Behavior, Tehran, Golshan Printing Company.McKenney,J,.&Keen,P (1974). How Managers Minds Work. Harvard Business Review, 52, pp. 79-90Mitroff, I.I. (1983). Stake-holders of the Organizational Mind, Jossey-Bass, San Francisco, CA.New man, Seer, (1994). Strategic, Information Systems Competition through Information Technologies,New york: Macrmillan colleges,Oliveira, Arnaldo, (2007). A Discussion Of Rational And Psychological Decision Making Theories AndModels: The Search For a Cultural-Ethical Decision Making Model, Electronic Journal of Business Ethicsand Organization Studies, Vol 12, No 2, pp 12-13P. Robbins, Stephen, (2005). Organizational Behavior, Concepts, Theories and Applications, Translated byParsaiian, Ali, Mohammed, Arabi, Cultural Research Office, Eighth Edition, preface.Spicer, David P. & Sadler-Smith, Eugene (2005). An Examination of the General Decision Making Style,Journal or Managerial Psychology, Vol 20, No 2, pp 137-138.Singh, Romila and Greenhouse jeffryh. (2004). The Relation between Career Decision Making Strategiesand Person-Tohfit, journal of vocational behavior Bruce and Scott, pp. 1995 -15Scott, S.G. and Bruce, R.A. (1995). Decision Making Style: The Development and Assessment of a NewMeasure, Educational and Psychological Measurement, Vol. 55, pp. 818-831.Tehrani, Maryam (2006). Studying the Effect of Emotional Intelligence and General Style of DecisionMaking for Managers in Iranian Oil Company, Masters thesis, University of Shaheed Beheshti.Tatum, Charles B., Eberlin, Richard, Kottraba, Crin, Bradberry, Travis, (2003). Leadership, DecisionMaking and Organization Justice, Journal of Management Decision, p 1007, The current issue and full textof this journal is available at: http://www.emeraldinsight.com/0025-1747- htmlThunholm, Peter (2004). Decision-Making Style: Habit, Style or both?, Journal of Personality andIndividual Differences, pp 932-933.17 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Healthcare Management and Leadership: Managerial Challenges Facing Healthcare Professionals Vincent Sabourin GRES, University of Qué in Montreal (UQAM) bec School of Management, University of Qué in Montreal (UQAM) bec Correspondence: UQAM, ESG School of Management, 315 east St-Catherine Montreal Qc. Canada H3C 4P2. Suggestions are welcome: sabourin.vincent@uqam.caReceived: 2011-10-23Accepted: 2011-10-29Published:2011-11-04AbstractThis paper sought to study issues which may hinder leadership management by health care managers whenexecuting their management functions and objectives in practice. The managerial drivers included: rules,initiatives, emotions, immediate action and integrity. This paper describes the drivers of managementleadership by managers in healthcare institutions to implement their organizational objectives. The findingson perception towards delivery, performance and professional satisfaction by healthcare managers has put alot of emphasis on resistance to change and the lack of commitment of employees (the dimension ofemotions) to explain the obstacles faced by healthcare managers. The finding of our data suggests that adriver of emotions is the most critical obstacle to healthcare management .Purpose: This research was carried out to investigate on the impediments facing healthcare practioners withregard to their delivery, performance and professional satisfaction. The study involved effective drivers ofmanagement, which constituted individual obstacles that healthcare administrators and physicians faceduring their leadership and managerial execution.Materials and Methodology: A mixed method of qualitative (focus group discussion) and quantitative (asurvey with a questionnaire) approaches was applied to this study. These involved group discussion ofhealthcare employees and administrators in public healthcare hospitals in a Canadian province. The totalnumber of surveyed healthcare managers was 182.Results: The years of practice for most healthcare mangers was found to be a factor in delivery. Young andfresh graduates though are very productive cannot deliver not unless they have accumulated relevantexperience to master those disciplines of healthcare management and administration. Additionally it wasalso found that those managers who had held management position for over twenty years become lessproductive. Thus from the responses of healthcare managers, there should be rotational leadership andemployee growth to prepare young but able future leaders. With regards to the drivers of management, itwas established that the driver of emotions holds the highest consideration to delivery, performance andprofessional satisfaction with the kind of leadership exercised by healthcare managers. This driver had85.67% of the respondents who agreed, 11% were neutral and 10% disagreed. Other drivers were; driversof rules, which after analysis, was found to have 80% respondents who agreed with it, 8.33% were neutral18 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011while 11.57% disagreed with the driver. The driver of initiatives had 74.33% responses from agreeingmanagers, 20% were neutral while 17% disagreed. The driver of integrity had 75.33% respondents whoagreed with the driver, 20.67% were neutral while 4% disagreed. The driver of immediate action had66.67% of the respondents agreeing, 27.33% were neutral while 6% disagreed. The summary of the reporthas been presents in table 4.Conclusion: Our research discusses the significance of understanding the managerial obstacles faced byhealthcare managers when exercising their leadership roles so as to have effective delivery, performanceand professional satisfaction. We also discussed how the nature of healthcare managers’ measures variesbetween the managers employed in government and private institutions. Using descriptive Analysis, ourresearch studied the managerial obstacles that hamper the healthcare managers in implementing theirobjectives to achieve defined leadership. The findings supported our hypothesis that the main obstaclesfaced by healthcare managers are related to the drivers of emotions. Further this study also indicates thatthe category of immediate action such as too many emergencies and urgent issues going unresolved withoutsolutions would be perceived by healthcare managers as obstacles.Keywords: Healthcare leadership, Managerial execution, Professional satisfaction,1. IntroductionHealth care systems in most countries are under pressure to deliver better healthcare services to widepopulation of people. An improvement in healthcare services in any country requires a clear understandingof the human resources characteristics as well as the current working of the healthcare systems. As recentlydescribed by Fleishman et al., (1991), provision of an adequate health care workforce is now consideredone of the most pressing global human resource issues worldwide. To recruit and retain health care workersattention to the professional satisfaction of these workers is essential. Professional satisfaction is nowassociated with roles and responsibilities, interdisciplinary relationship, remuneration issues, and otherimportant factors like the public recognition of the health care discipline (Fielder 1967; Fiedler 1996).The healthcare system in any country depends highly on how well its managers and administrators areconstantly working with their employees to improve the quality of their services, which in turn helps in theimprovement of the quality of the life of the citizens (Fleishman 1953; Fairholm 1996). This is to mean thatjunior employees should be involved in key sectors of the hospital management despite having beenassigned routine tasks of treatment. This will help foster the morale of such usually less motivated staff(Fleishman & Harris 1962).A number of countries including Canada are hugely faced by staff turnover to other countries, and this iswidely contributing to a number of challenges in key areas such as healthcare systems. This therefore callsfor the healthcare administrators to understand, key employee factors such as push factors and pull factors(Pointer et al., 1988). They ought to understand what motivates employees, in terms of morale, supervision,career development and paths for growth, and job security (Morrissey et al., (1990). Accordingly, they alsoneed to be fully aware of pull factors such as better opportunities offered by other countries and NGOs soas to retain their well qualified personnel. A clear orientation with the managerial drivers such rules,initiatives, integrity, immediate action and emotions will be relative to administrators to better understandthe various obstacles that they face in their discipline (Becker & Huselid, 1998).Healthcare management is an immediate task that is currently facing modern professionals in that field ofhuman perpetuity and sustainability against premature deaths and other health contingencies. Thesemanagers have been faced with numerous challenges and obstacles which in management could be termedas managerial obstacles facing healthcare leaders as argued by Zuckerman (1989). It is evident in anyorganization that in order to achieve the organizational set goals and objectives, then effective strategyexecutions have to be formulated.19 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20111.1 Aims of the studyThis research was carried out to investigate on the impediments facing healthcare practioners with regard totheir delivery, performance and professional satisfaction. The study involved effective drivers ofmanagement, which constituted individual obstacles that healthcare administrators and physicians faceduring their leadership and managerial execution. The researchers employed managerial drivers whichincluded; rules, initiatives, integrity, immediate action and emotions to better identify key obstacles thatface healthcare managers and administrators.1.1.1 Conceptual FrameworkOur conceptual framework is inspired by the work of Kolb (1984) and Kolb and Boyatzis (1995) onexperiential learning and additional work on the topic (Richard and Sabourin, 2009a; Sabourin, 2009a). Wefound that the conceptual model of Kolb (1984) provided us with a completed spectrum of perspective onthe topic of strategy execution. Based on this perspective, our conceptual framework suggests that fivedifferent, but complementary drivers could be obstacles faced by managers when executing their strategy. Areview of the literature in management and of the Kolb model (1984) and subsequent work (Richard andSabourin, 2009; Sabourin 2009) has led us to develop a conceptual framework of five drivers adapted tomanagement leadership in healthcare domain. We labeled these drivers as follows:The first driver of rules deals with the clarification and alignment of the manager’s objectives. The firstdriver gathers variables that refer to factual and rational analysis of given situations. This perspective leadsto concept forming and formulation of generalizations that integrate the observations and the reflections.The economic planning and the analysis are prevailing in this dimension. Obstacles deal with figures,figures and protocols. Decision-making is based on facts and abstract principles.The second driver of emotions deals with getting a commitment to the manager’s objectives by itsemployees. This driver gathers variable dealing with topic such as fetching a commitment, clarifyingproblems, reconciling the divergent points of view and establishing consensus. In this second situation, wemake a thoughtful observation that consists of making observations on the experience lived by the personsand of thinking about their meaning.The third driver of initiatives deals with translating managerial objectives into concrete projects foremployees. It gathers variables dealing with introduction of new projects and ideas that results in morewilling and more capable employees. This third driver relies on the active experiment of initiatives; realizeprojects and continuous improvements to the existing activities.The fourth driver of immediate action gathers variables that reflect creating value-added action orimmediate actions in response to urgent matters in the execution of objectives. It addresses concrete actionand those that allows rapid actions on small scale to obtain quick results. Thus, the variables deal withquick decision taking without respect to an established plan.The fifth dimension of integrity deals with executing objectives in the context of integrity of values andprinciples. It gathers variables associated with executing objectives in respecting organizational values andprinciples. These variables refer to obstacles faced concerning organizational values. This is the capacity torealize the organization objectives in the respect of the integrity under pressure. The summary of the drivershas been presented in fig Hypothesis formulationBased on the preceding research model developed from the conceptual framework of Kolb (1984), fivehypotheses are formulated.20 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011With the assessment of the Kolb (1984) experiential learning model, there are a number of obstacles thatmanagers in any organization or institution would face while aiming to achieve their objectives and goals.These therefore would lead to the formulation of the following hypothesis.Hypothesis 1: In the context of management leadership in healthcare administration, healthcare managerswould face five categories of management obstacles while executing their objectives.Managers are always on the move to ensure that their employees are committed towards achieving set goalsand objectives. This involves reconciling divergent needs and ensuring that only organizational goals are ofpriority as opposed to individual goals and interests. This therefore leads to the formulation of the followinghypothesis.Hypothesis 2: With regards to the management obstacles faced by healthcare managers, the mostsignificant obstacle perceived would be the drivers of emotions.Besides stimulating commitments, managers have an overall role of ensuring that all the obstacles faced bytheir organization and employees in particular are given an equal measure and treatment so to have abalanced performance in their work and objective attainment. This therefore leads to the followinghypothesis formulation.Hypothesis 3: With the exception of drivers of emotions, the other categories of obstacles would beperceived and given equivalent weight age in terms of importance among healthcare managers.Managers have a greater role in taking immediate action and steps to settle urgent matters and decisionswhen striving to achieve their objectives. These steps involve rather rapid decisions to meet whatever is tobe realised in the shortest time possible. This statement therefore leads to the formulation of the followinghypothesis.Hypothesis 4: Given the volatility in healthcare environment, in the driver of immediate action, healthcaremanagers would perceive a number of emergencies.Managers dealing with their employees are at times forced to clarify their objectives in line with theanticipated actual results. This clarity of issues helps to develop focus and attention and even highercommitment by the employees, which are involved in the overall performance and execution of the setgoals. This therefore leads to the formulation of the following hypothesis.Hypothesis 5: Given the perception that no singular performance measure exist for healthcare managers ingovernment healthcare institutions compared to healthcare managers in private practice, lack of clarity inthe actual results expected would be perceived as a key obstacle under the driver of rules.1.1.3 Research Methodology and DesignThis study is a part of a broader research on managerial strategy implementation and implementation wasconducted in four major steps. In our study the dependent variable was strategy implementation andimplementation and the independent variables: (a) Dimension of rules, (b) dimension of emotions, (c)dimension of initiatives, (d) dimension of immediate actions and (e) dimension of integrity. We presentbriefly each of the major steps before examining them in details:Firstly, in a previous research and before undertaking the study of this article, we surveyed a sample of 182managers in organizations. This first step was completed to empirically support the four dimensions ofKolb (1984) using its measurement instrument. These four dimensions had a significant degree of varianceexplained.21 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Secondly, before undertaking this study, we developed a specific instrument capable of measuringmanagement leadership within their organization. To do so we completed a set of 12 focus groups withmanagers working to survey from a qualitative perspective, the set obstacles that they faced. They weregathered under the 4 categories of the conceptual framework of Kolb (1984). However, following thisqualitative survey of obstacles faced by managers, a fifth category of obstacle that did not fit within theconceptual framework of Kolb (1984) was added: that is the one of integrity of values.Thirdly, we used the qualitative survey of these 25 obstacles to develop a measurement instrument underthe form of a questionnaire to survey empirically the relative importance of the various categories ofobstacles. This questionnaire was previously validated with a sequential set of 5 small samples of managersto improve the formulation of the various questions and insure its statistical reliability.The following sections explain the details of each of these four methodological stepsStep 1: Empirical validation of the four dimensions of Kolb (1984)The objective of this first step before undertaking our study was to validate empirically the four dimensionsof the conceptual framework of Kolb (1984). The validation was based on the Learning Style Inventory ofKolb (1984) with some adjustments to the managerial context.1. Data was collected by managers through structured training in the countries of the Organization forEconomic Co-operation and Development (OECD). Three regions of the world, namely, Europe, NorthAmerica and Australia, were randomly selected. 168 respondents completed the questionnaire.2. The measuring instrument of (Kolb1984), which is the Learning Style Inventory, has been used since theinitial variables were related to the modes of learning. Our questionnaire was adapted to answer thequestions on the strategies of transformation, and we validated the questions during executive seminar withthe managers of the organization.3. To make sure that each of the questions was understood, the validation was preceded by a pre-testconducted on 15 referees of the Belgian Management Training Association. All questions were suitablyunderstood and adjustments were made with one to clarify its understanding from the respondents.4. Descriptive analyses were completed to identify certain characteristics of the sample. Frequency analysisand the test of Cronbach Alpha were completed. The results of R-square (degree of explained variance bythe model) and factorial analyses were used to verify the hypotheses. As shown in table 2, reference ismade to the Cronbach Alpha, an indicator of reliability with the measuring scale between 0 (not reliable ofthe whole) and 1 (reliable).5. Four of the five dimensions of our conceptual framework have been validated in previous research. Thefirst four dimensions had a positive Cronbach alpha and the fifth dimension (integrity) was addedafterwards following the qualitative research focus groups. Table 2 below presents the concept definitionalong with the variance and reliability obtained as shown in the next table. Each dimension (with theexception of the fifth one) was supported by a significant variance explained and a significant Cronbachalpha.Step 2: Focus groups with managers to identify managerial obstaclesIn the second step, and before undertaking this specific study, we completed focus groups with managers tolist the various obstacles they face for each of the dimensions previously identified. Twelve focus groupswere conducted with an average of 15 managers per group to identify obstacles faced by managers. Weidentified 5 obstacles for each of the 5 dimensions for a total of 25 obstacles. The obstacles were selected22 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011based on the frequency among the participants for each of the focus groups. The obstacles identified wereused as input to elaborate the measurement instrument related to obstacles.Step 3: Development of a measurement instrumentWe further developed an instrument tool to measure the role of the 25 obstacles that were identified withmanagers in focus groups. We used the verbatim of the focus group to elaborate a survey to validate theseobstacles. A pre-test of questionnaire was administered and the questions were sequentially adjusted withfive groups of approximately 25 managers per group before being rolled out to a larger sample of managers.Several adjustments were made in these 5 pre-test to insure the statistical behavior of each questions. Thetable below presents each of the 25 questions that were completed by the participants.The step 4 consisted of surveying a group of 322 managers in a governmental Department of a Canadianprovince. The participants were all managers and project managers with an information technologybackground and were in charge of supervising information technology projects. The group was selected toinsure the homogeneity of the respondents in terms of origins, task and functions.In the specific context of this research, we surveyed this specific group of managers to better understandobstacles facing managers.In our sample, an average of 36% of managers was responsible for 5 to 19 employees working under them.Median years of service at the current organization have been 5 to 10 years of which a majority (76%)having spent less than 5 years at their current managerial position. Majority of the respondents (80%) were49 years old or younger. There were no significant differences between this sample of 182 and the broadersample of managers (n=322) used in previous research.A selection of other methods was used in an attempt to interpretation. The investigators had no vestedinterest in the enhance response rates, including: 1) ensuring that the survey specific outcomes of the survey,was user-friendly, 2) ensuring anonymity and uncensored responses from our neutral academic unit, 3) theuse of several contact methods (meeting, telephone, fax, email, newspaper articles) to solicit participation,4) ensuring timely respondent access to survey results, and 5) promoting the potential benefits of the resultsto the profession within the country. This was a voluntary anonymous survey. Completion of the survey wasconsidered consent for the participant. Main outcome measuresThe main outcome measures for this study were professional demographics and the extent of agreement topositively phrased statements regarding their delivery, performance and professional satisfaction withemphasis on the management drivers. Data analysisFor the purpose of this research, data analysis was unfunded assessment solicited by the Canadian SupremeCouncil of Health. To minimize any perception of potential bias and loss of anonymity, the researcherswere solely responsible for the administration of survey questionnaires, data collection, analysis andinterpretation. The researchers had no vested interest in the specific outcomes of the survey.1.1.4. Findings and ResultsOne hundred and seventy two online survey accesses were recorded during the designated survey collectionperiod. This represents 58% of all healthcare managers practicing in Canada. Twenty two of the surveyswere found to contain no responses or respondent duplicated survey attempts and were thus neglected. The23 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011remaining two hundred and fifty surveys contained responses to one or more questions and were includedin the analysis. We noted that not all participants provided responses to all the survey questions. Respondent demographicsThe socio-demographic and years of practice characteristics are summarized in table 2. This was based inthe years of practice in administrative and management positions since commencing the employment. 90respondents reported to have held management position for a period of less than 5 years. This represented aresponse rate of 30%. 100 respondents reported to have been in management position for periods rangingfrom 6 to 10 years, thus netting a response rate of 40%. Between 11 to 15 years, there were 50 respondentswho scored a response rate of 14.67%. 32 respondents reported having held an administrative role inhealthcare institution for period of 16-20 years, and had a response rate of 10.67%. Those who had heldthose positions for periods of over 20 years were 14 respondents, netting a response rate of 4.67%. Thisinformation is summarized in table The perception towards delivery, performance and professional satisfaction and managementobstaclesTable 3 shows the extent of agreement with perception towards delivery, performance and professionalsatisfaction with healthcare management under the different variables of the respective drivers ofmanagement adopted from the previous researches and as outlined in the conceptual framework. In thisresearch, views and opinions were solicited from 182 hundred respondents who were in management oradministrative positions in healthcare institutions selected for study. The drivers were:1) rules, 2) emotions,3) initiatives, 4) integrity and 5) immediate action.Under the driver of rules, there were variables labeled; V 1, V2, V3, V4, V5 respectively. From the descriptiveanalysis of variable V1, 92% of the respondents agreed with this variable, 2.67% were neutral and 5.53%disagreed with this variable. With respect to variable V 2; 70.67% agreed, 9.33% were neutral while 20%disagreed. V3; had 85% agreeing, 10.67% undecided and 4.35% disagreeing. V4 recorded 67.33% agreeingrespondents, 11.33% were neutral while 21.33% disagreed. Variable V 5 had 85.67% agreeing, 7.67%neutral respondents and 6.67% disagreeing respondents.Under the driver of emotions, there were variables labeled; V6, V7, V8, V9 V10 respectively. As per thefindings from the descriptive analysis, V6 had 84.67% respondents agreeing with the variable, 12% wereneutral while 3.33% disagreed. With regards to V 7, 87.33% agreed, 9.33% were neutral while 3.33%disagreed. V8 recorded 87% agreement, 8% neutral and 5% disagreement. V 9 had 80% agreeingrespondents, 16.67% neutral and 3.33% disagreeing. V 10 had 87% agreeing, 8.33% were neutral while4.67% were recorded as disagreed.Under the driver of initiatives, there were variables labeled; V11, V12, V13, V14, V15 respectively. From thedescriptive analysis, V11 recorded 79% respondents agreed with this variable, 16.33% were neutral while4.67% disagreed. V12 had 75.33% respondents agreed, 19.67% were neutral while 5% disagreed. V13 wasnoted to have 78% of the respondents agreed, 18% were neutral while 4% disagreed. V 14 was found to have65.67% respondents who agreed, 23.33% were neutral while 11% disagreed. Lastly V 15 had 73.33%agreeing, 19.33% neutral and 7.33% disagreeing with the variable.Concerning the driver of integrity, there were variables labeled as; V 16, V17, V18, V19, V20. V16 had 79%respondents agreeing, 16% were neutral, and 5% disagreeing. V 17 recorded 72% respondents who agreed,25% were neutral while 3% disagreed. V18 had 80% of the respondents agreeing, 16% of the respondentswere neutral while 4% disagreed. V19 scored 70% agreeing respondents, 27.33% were neutral while 2.67%disagreed. V20 had 75% of the respondents agreeing, 19% were neutral while 6% disagreed.24 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011With regards to the drivers of immediate action, there were five variables labeled as; V 21, V22, V23, V24 andV25. As from the descriptive analysis, V21 was noted 73.33% of the respondents agreed, 21% were neutralwhereas 5.67% disagreed. V22 had 48% agreeing while 52% were neutral. No disagreement was recorded.V23 had 89% of the respondents agreeing while 11% disagreed. V 24 had 42% of the respondents agreeing,58% disagreed. V25 was after analysis found to have 81% agreeing respondents, 4.67% of the respondentswere neutral, while 14.33% disagreed. Perception of healthcare managers and administrators towards the managerial driversThe researchers developed five managerial drivers that were separately investigated to find out theircontribution towards effective delivery, performance and professional satisfaction. The managerial driversof rules, was after analysis, found to have 80% respondents who agreed with that driver, 8.33% wereneutral while 11.57% disagreed with the driver. As for the driver of emotions, 85.67% of the respondentsagreed, 11% were neutral and 10% disagreed. The driver of initiatives had 74.33% responses from agreeingmanagers, 20% were neutral while 17% disagreed. The driver of integrity had 75.33% respondents whoagreed with the driver, 20.67% were neutral while 4% disagreed. The driver of immediate action had66.67% of the respondents agreeing, 27.33% were neutral while 6% disagreed. The summary of the reporthas been presents in table DiscussionThe discussion presents an overview of the nature and behavior of healthcare managers and administratorswith respect to the various management obstacles encountered while discharging their leadership roles. Thispart is divided into two parts; the specific section and the general discussion section. General discussion sectionGenerally, well educated and nurtured employees will be very productive. Their delivery will be fostered ifmanagement consider making junior employees part of management. The essence of employee engagementis to provide a positive environment where employees are free to contribute, and desire to contribute, moreof their energy, efforts and thought processes in ways that significantly and favorably impact the goals ofthe organization. People, who engage other people on behalf of their employer, as employees are requiredto do in many service jobs, are expected to be courteous and pleasant to others. How can any leader ormanager expect such behavior from subordinates without, in turn, treating subordinates well?In addition, it doesn’t make sense to treat subordinates poorly and expect them to become intrinsicallymotivated. However, creating intrinsic motivation requires something different than merely a lack ofnegative treatment. The key issue becomes one of how to inspire people to provide positive andproductive engagement toward their organization. We have learned that valuing the talents of subordinatesreaps better results. By ensuring that subordinates know we appreciate their thoughts, ideas, skills andknowledge, we communicate a feeling of respect and importance. In doing so, it is not necessary to handover the reigns of authority or decision-making power. Yet situational leadership theory might indicatethat, at times, a participation in decisions by group members yields the optimal outcome.Many managers think if they want positive employee engagement, then all they have to do is pay higherwages. In other words, if an organization wants higher dedication from employees, all it has to do is giveworkers more money. However, some studies have shown this is not true.Herzberg’s hygiene motivator theory suggests that the absence of certain elements in the workplace willserve to de-motivate employees, but the presence of these same elements does not serve to motivateemployees in the workplace. Therefore, Herzberg described particular elements as “hygiene” elements,as opposed to true motivators. These hygiene elements include pay, security, status, peer relationships,25 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011subordinate and supervisor relationships, company policy and administration, work conditions, andsupervision. In other words, according to Herzberg’s theory, the hygiene factors only affect jobdissatisfaction but do not improve job satisfaction.Our analysis therefore brings to light, the contemporary perspective of five drivers of management forhealthcare managers. The analysis of the data highlights how healthcare management gathersmultidimensional practices with varying complementary facets. The following is a brief discussion of thedrivers.The driver of emotions is considered as the foremost healthcare management driver. In other words,motivated and engaged managers and employees contribute to the successful execution of management andobjective achievement. The findings related to the driver of initiatives can be applied in the area ofidentification of training and developmental needs of healthcare managers and employees, to fulfill thecompetency gap. Conversion of goals into concrete projects, techniques used for team based management,techniques used as self resolution for solving healthcare managerial dilemmas all need a set of uniquecompetency.The findings related to the driver of rules also have managerial and administrative implications. This driverfocuses on the clarity of communicating the expectations, systems to evaluate the results and supportiveparameters and the process used for regular reviews and it calls for precise identification, design andimplementation of communication systems, evaluation systems and monitoring systems respectively. Hencethe management should design perfect systems to ensure that the dimensions of rules are followed.Though not all management skills has deadlines and contingencies, preparing for crisis and planning for thesame will also ensures the support of the driver of immediate actions. Though the driver of integrity wasnot widely commented, with regards to this study on healthcare management and administration, there isneed that managers ensure that their actions are clean and focused on the overall attainment of theorganization’s objectives and goals. Specific discussion sectionThis section examines and discusses all our five hypotheses formulated earlier. With respect to the findingson the subject of exploring the obstacles faced by healthcare managers while executing their objectives, weintend to examine to what extent each of our hypothesis was supported. The results of the empiricalanalyses have provided answers to our research questions. Apart from examining the hypotheses formulatedwe also wish to elucidate other potential observations of our research to existing literature on healthcaremanagement and administration.Hypothesis 1: In the context of management leadership in healthcare administration, healthcare managerswould face five categories of management obstacles while executing their objectives.Our first hypothesis refers to the five categories of obstacles developed in the conceptual framework onmanagement leadership in healthcare management and administration and emerged out of the conceptualframework of Kolb (1984). The data analysis done supported this hypothesis. Though it is consistent to ourconceptual model, additional research with large samples would be needed to support the external validityand to generalize all the five categories in different levels of healthcare management and administrationacross geographic locations. In fact in different times, managers will be faced with management obstacles,which can be detrimental to their leadership and work performance. This hypothesis is therefore provingthe previous findings about obstacles faced by healthcare leaders and other managers in general.Hypothesis 2: With regards to the management obstacles faced by healthcare managers, the mostsignificant obstacle perceived would be the drivers of emotions.26 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 In the context of management leadership in healthcare management and administration, our secondhypothesis states that the most significant category of obstacles faced by healthcare managers among thefive categories found in the conceptual framework is the driver of emotions and the factors related to itincluding lack of commitment to goals, lack of trust and lack of awareness of the importance of objectives.The descriptive analysis supports this hypothesis. In order to stimulate employees to focus on theorganizational goals, it is relative that senior managers be leaders, who can communicate necessaryobjectives to their juniors. There should be trust and respect among employees and between seniors andtheir juniors. This will help stimulate effective management approach and realizable tangible results. Hypothesis 3: With the exception of drivers of emotions, the other categories of obstacles would beperceived and given equivalent weight age in terms of importance among healthcare managers.Our descriptive analysis did not support this hypothesis. In contrast to the hypothesis set based on ourconceptual framework, we found that the four other drivers excluding the driver of emotions did not havean equal weight in their relative importance. Some drivers are applicable or appropriate at different timesand in different scenarios. So the hypotheses could not be supported since not all drivers will be exhibitingsimilar variability or effects regarding management.Hypothesis 4: Given the volatility in healthcare environment, in the driver of immediate action, healthcaremanagers would perceive a number of emergencies.Under the drivers of immediate action, our hypothesis states that healthcare managers would perceive manyemergencies and last minutes requests and changes as a key obstacle since there is volatility in thehealthcare environment. The descriptive analysis supported this hypothesis. It is always impossible to avoidemergencies in an organization. Some decisions will always be made without having to settle for formalmeetings. This is what has made the hypotheses an important value in our research. Hypothesis 5: Given the perception that no singular performance measure exist for healthcare managers ingovernment healthcare institutions compared to managers in private practice, lack of clarity in the actualresults expected would be perceived as a key obstacle under the driver of rules.Our fifth hypothesis states that healthcare managers would perceive lack of clarity in their actual resultsexpected to be the key obstacle under the drivers of rules. It is consistent with the previous research studiesindicating that clear priorities and objectives. Our descriptive analysis supports this hypothesis. Thecertainty with any management decisions is that managers whether in public or private, have to ensure thatthe results to achieved are clearly defined to their employees. Practical and Theoretical ImplicationsMotivated and engaged employees will be more committed to the goals. Out of the five obstacle categories,driver of emotions and its factors such as; lack of commitment to the goals, trust, and awareness about theimportance of objectives are perceived as the most significant obstacles. It is an important observation forthe management in the sense that they have to adopt practices and policies to develop and sustain employeeengagement in healthcare sector.Healthcare managers are expected to perform efficiently with multiple management measures since thedynamics of performance and the competencies required for that are quite unique for professionalsatisfaction. Their performance is expected to go beyond profit or wealth maximization when compared totheir counterparts. Given this scenario, the obstacles perceived by healthcare managers also would beunique and different when compared to their counterparts. Research has to identify those set of obstaclesthat are exclusively felt by healthcare managers. Our descriptive research confirms the existence of fivecategories of obstacles faced by healthcare managers while discharging their healthcare goals and27 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011objectives.1.1.5 4 LimitationsIn the context of healthcare management and administration, additional research with large samples will benecessary to support the current findings and its validity. Additional research is required to generalize thesefindings to the healthcare managers employed specifically in the government institutions and the privatesector. Also global level categories have to be included in the additional research to generalize the currentresearch findings. Conclusion Our research discusses the significance of understanding the managerial obstacles faced by healthcaremanagers when exercising their leadership roles. We also discussed how the nature of healthcaremanagers’ measures varies between the managers employed in government and private institutions. Usingdescriptive Analysis, our research studied the managerial obstacles that hamper the healthcare managers inimplementing their objectives to achieve defined leadership. Our research confirmed the existence of fivecategories of obstacles as experienced by healthcare managers. The findings suggest that factors such a lackof commitment, lack of trust and lack of awareness of the importance of objectives would be the mainobstacles when healthcare managers execute their objectives. Also the findings supported our hypothesisthat the main obstacles faced by healthcare managers are related to the drivers of emotions. Further thisstudy also indicates that the category of immediate action such as too many emergencies and urgent issuesgoing unresolved without solutions would be perceived by healthcare managers as obstacles.ReferencesBatten, J., (1998), “Servant-Leadership: A Passion to Serve”, In Leadership: Service, Stewardship, Spirit,and Servant, Spears, Larry C., John Wiley and Sons, Inc.Becker, B.E., & Huselid, M.A., (1998), “High Performance Work Systems and Firm Performance: ASynthesis of Research and Managerial Implications, In Research in Personnel and Human Resources, Vol.16, edited by Gerald R. Ferris, pp. 53–101, JAI Press.Fairholm, G.W. (1996), “Spiritual leadership: fulfilling whole-self needs at work”, Leadership &Organization Development Journal, Vol. 17, Issue No. 5, p. 11.Fiedler, F.E., (1967), “A theory of leadership effectiveness”, McGraw-Hill, New York.Fiedler, F.E., (1996), “Research on leadership selection and training: one view of the future”,Administrative Science Quarterly, Vol. 41, pp. 241-250.Fleishman, E.A., (1953), “Leadership climate and human relations training”, Personnel Psychology, Vol. 6,pp. 205-222.Fleishman, E.A., Harris, E.F., & Burtt, H.E., (1955), “Leadership and Supervision in Industry”, Bureau ofEducational Research, The Ohio State University, Columbus, OH.Fleishman, E. A. & Harris, E. F. (1962), “Patterns of leadership behavior related to employee grievancesand turnover”, Personnel Psychology, Vol.15, pp. 43-56.Fleishman, E., A., Mumford, M., D., Zaccaro, S. J., Levin, K. Y., Korotkin, A. L. & Hein, M. B. (1991),“Taxonomic efforts in the description of leader behaviour: A synthesis and functional interpretation”,28 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Leadership Quarterly, Vol. 2, pp.245–287.Pointer, D., D., (1990). “Offering-level strategy formulation in health service organization”. Healthcaremanagement Review, 1511-1523.Pointer, D., D., Begun, J., W., & Luke, K., D., (1988), “Managing inter-organizational dependencies in thenew health care marketplace”. Hospital and Health service Administration, 33(2); 167-177.Zuckerman, H., S., (1989) “Redefining the role of the CEO: Challenge and Conflicts”. Hospital and healthservices administration. 34(1)25-38.Morrisey, M., A., Alexender, J., A., & Ohsfeldt, P., L., (1990), “Physician integration strategies and hospitaloutput- A comparison of rural and urban substitution”, Medical Care review, 28(7):586-603Notes: Fig 1: The conceptual framework of the 5 drivers of strategy execution 1. Immediate action 3. Initiative 2. Emotions Healthcare administration and Leadership 5. Integrity 4. RulesSources: Kolb (1984) Experiential Learning ModelTable 2: Concept definition and measurement Concept definition Variance and reliability 1 Variance explained: 53.5 %29 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Rules (abstract conceptualization): theoretical conceptualization by means of Alpha of Cronbach: 0.799. rules postulates and models to systematize information. Variance explained: 60 % Emotions (reflexive observation): problem recognition and capacity to develop 2 convictions and to get a commitment.  Alpha of Cronbach: 0.831. Initiatives (active experimentation): select a model to test its possible Variance explained: 53% 3 consequences. Learning by trying, finding new ways to put new ideas in practice. Support initiative to responzabilize employees. Alpha of Cronbach 0.8 Immediate actions: action oriented that is immediate and concrete. Oriented Variance explained: 52.6% 4 towards direct contacts and apprehension rather than comprehension. Quick adjustments resulting from feedback. Alpha of Cronbach: 0.740Table 1: Description of measurement variables in the driversObstacles Drivers & Variables Measurement-Questions Driver of Rules I have developed work techniques to clarify the expectations of ourObst1 V1 bosses.Obst2 V2 We have identified goals that focus on customer service30 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 We have developed work techniques to help individuals stay focused onObst3 V3 the results to be achieved. We systematically conduct annual reviews of our activities with theObst4 V4 other units within our organization. We are able to estimate the economic value of improvements we wishObst5 V5 to make throughout the organization. Drivers of Emotions We are able to encourage our workers to adhere to our goals so thatObst6 V6 they are fully aware of their importance. We are able to communicate a sense of urgency to our workers so thatObst7 V7 they are able to make rapid decisions. We are able to significantly increase the motivation and levels ofObst8 V8 engagement of our workers. We work closely with colleagues who are able to support us during theObst9 V9 decision-making process. Obst10 V10 We are able to treat our employees fairly. Drivers of InitiativesObst11 V11 We have developed a culture that fosters initiative and accountability.Obst12 V12 We translate our goals into concrete projects for all our employees.Obst13 V13 We know how to set team goals. We have developed techniques to increase self-resolution of problemsobst14 V14 for team members31 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 In my organization, we use various techniques according to the level ofObst15 V15 importance of decisions and team-based management. Drivers of Immediate action We systematically provide improvements and contingency plans toObst16 V16 effectively respond to emergencies. Over the past years, the number of emergencies we responded to hasObst17 V17 decreased. We systematically perform reviews to find durable solutions for repeatObst18 V18 situations. I dedicate at least 2 to 3 ninety-minute sessions each week to work Obst19 V19 directly on their annual goals We dedicate a maximum of one day each week to respond to urgentObst20 V20 requests. Drivers of IntegrityObst21 V21 We clearly define the values of our organization When under pressure, we are able to reinforce the values of ourObst22 V22 organization I am able to recognize differences between the values of myObst23 V23 employees and those of my organization. We have ways of contributing to the organization’s reputation throughObst24 V24 the services we provide. We have work methods to systematically reinforce our employeesObst25 V25 sense of obligation.32 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Table: 2 Characteristics of healthcare managers’ years of practiceNo of Years in management No of Respondents (N=300) Response rate (%)positionBetween 0-5 years 90 30%Between 6-10 years 120 40%Between 11-15 years 44 14.67%Between 16-20 years 32 10.67%Over 20 years 14 4.67%Obstacles Driver Variables Responses Agree Neutral Disagree N (%) N (%) N (%) Rules V1 171((92%) 3(2.67%) 8(5.53%) V2 112(70.67%) 18(9.33%) 42(20%) V3 155(85%) 22(10.67%) 5(4.35%) V4 102(67.33%) 24(11.33%) 56(21.33%) V5 157(85.67%) 13(7.67%) 12(6.67%)33 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Emotions V6 154(84.67%) 16(12%) 12(3.33%) V7 162(87.33%) 16(9.33%) 4(3.33%) V8 161(87%) 14(8%) 7(5%) V9 140(80%) 30(16.67%) 12(3.33%) V10 161(87%) 15(8.33%) 5(4.67%) Initiatives V11 137(79%) 29(16.33%) 16(4.67%) V12 126(75.33%) 49(19.67%) 7(5%) V13 134(78%) 44(18%) 4(4%) V14 117(65.67%) 35(23.33%) 30(11%) V15 120(73.33%) 48(19.33%) 14(7.33%) Immediate V16 137(79%) 38(16%) 7(5%) action V17 119(72%) 47(25%) 16(3%) V18 140(80%) 28(16%) 6(2%) V19 118(70%) 32(27.33%) 8(2.67%) V20 125(75%) 47(19%) 10(6%) Integrity V21 120(73.33%) 53(21%) 9(5.67%) V22 84(48%) 98(52%) _ V23 157(89%) _ 25(11%) V24 84(42%) 98(58%) _ V25 143(81%) 11(4.67%) 28(14.33%)Notes: Responses have been categorized into 3-point scale; neutral means “neither agrees nor disagree”34 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Table 4: Perception towards managerial driversDriver Responses Agree Neutral Disagree N (%) N (%) N (%)Rules 140(80%) 15(8.33%) 27(11.58%)Emotions 157(85.67%) 15(11%) 10(3.33%)Initiatives 113(74.33%) 54(20%) 15(5.67%)Immediate action 116(75.33%) 55(20.67%) 11(4%)Integrity 100(66.67%) 62(27.33%) 20(6%)Notes: Responses have been categorized into 3-point scale; neutral means “neither agrees nor disagree”35 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Potentials of Educational Technology Used In in-Service Teachers Training Programs at Secondary School Level In Khyber Pakhtunkhwa Pakistan Sajjad Hayat Akhtar Provincial education department Khyber Pakhtunkhwa Pakistan. S.Wajid Ali Shah Abdual Wali Khan University Khyber Pakhtunkhwa Pakistan. Muhammad Naseer Ud Din Kohat University of Science & Technology Kohat (Khyber Pakhtunkhwa) Pakistan.Received: 2011-10-23Accepted: 2011-10-29Published:2011-11-04AbstractThe study investigated in to descriptive research to evaluate the potentials of educational technology usedin-service teachers training programmed in KPK (Pakistan). The study has defined the potentials ofeducational technology used in services training, provision of a new educational technology in in-servicetraining and the effectiveness of in- service training at secondary level. The main objectives of the studywere, to determine the role of educational technology, needs, usefulness, status and emerging trends ofeducational technology, educational technology used in-service teachers training. The following resultswere drawn by the researcher in the light of the analysis of the data:-It was found that the in-service trainingschedule is not followed; educational technology is helpful for professional development but not properlyused. Executive district officer makes the nomination of the teachers for in service training. In-servicetraining venue is not accessible for the teachers and result oriented teaching methods are used at secondarylevel.Keywords: Use of educational technology, provision of ET, in-service training, emerging technologiesand professional development. 1. Introduction:A teacher occupies the most crucial position in the entire spectrum of education activities. The availabilityof a good number of educated and professionally trained teachers therefore possess the greatest challenge topolicy makers and planners of education in Pakistan. The training to communicate a teacher during hisservice to aware him with the latest innovations, changes in the curriculum and pedagogy is calledin-service training. S.S (1997, P70) stated that refresher courses are provided to teachers for theimprovement of their teaching skills and provide opportunities for realistic approach in teaching learningprocess. After in-service teachers training the teachers apply their skills in the class room and used advance36 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011teaching methodologies for effectiveness learning of the students.The quality of the system of education depends upon the quality of the teachers. The education is emphasisin all the advance countries. According to Jamshid, M. (2000, P.90) describes that in-service trainingprogrammes develop the teacher command for theoretical knowledge about learning and human behaviorand to improve the teachers attitudes that faster learning and pure human relationship. In service trainingstrengthen the capacity of the teachers professional skills facilitate students learning.According to Bansal, H. (2007: P 224) stated that throughout the world the learners realized the importanceand rule of internet and internet have expended classroom resources. There resources can be obtainedthrough internet. In service training can easily be improved to keeping in mind the challenge of the 21stcentury: such type of training should be developed that a students is made in dependent and a teacher is afacilitator.1.1. LITERATURE The Education reserves, as it deserves the label of prime importance for the development of a countryand the National Progress as a matter of fact effective teaching demands that besides possessing adequateknowledge of the subject matter the methods and new techniques of teaching are prerequisites to be learnedby the teacher for his professional competency and effectiveness. In other words keeping in view thecomplementary nature of the educator (teacher) and the education, the training of teachers comes to bematter of impotence par-excellence. The word teaching is used in various ways.Zafar (1996, PP.61-62) defines: “Teaching is an arrangement and manipulation of situation in which there are gaps or obstructionswhich an individual will seek to overcome and from which he will learn in the course of doing so. Teachingis an intimate contact between a more nature personality and a less mature one which is designed to furtherthe education of the latter. Teaching is importation of knowledge to an individual by another in a school.Bahtti &, et al (1994, P.414) stated: “The teacher occupies the central position in the whole process ofcurriculum change. The nature of the process of curriculum function is not reserved only to the teacher ofhistory and social studies, but equally it is the obligation of the teacher formulation and task the teacher isinvolved in, make it highly imperative that there should be close coordination between the apparently twodistinct jobs of curriculum formulation and class-room instruction. They are the two aspect of just one role”.Joseph (1969, P.9) has discussed the social function of teacher as follows: “First, he has to transmit the accumulated knowledge of the past and interpret it with reference to thepresent. Therefore, science, art, language, and all varied subjects found in a modern curriculum. Next hemust be able to make this knowledge of the present in to the future, because he is guarding his students in asociety always evolving. At the very least, the teacher must understand major trends in contemporarycivilization, and prepare the young to meet adequately the problems they will encounter as they approachmaturity.”The greatest wealth of a country is her children who future development is to a great measure, inthe hand of the nation’s teachers. Bureau of Curriculum (1962, P.19) has enumerated that: “No formal teacher training organization existedamong the primitive people. The institution of teaching known to history is stated to have started first inEgypt (21.P.543), while the idea of teacher training originated in France in 1672. The first normal schoolwas found in 1685 by Abbe de Saile at Rheims (22, P.136). Subsequently, Pestalozzi developed formalpedagogical methods and Germany adopted numerous between 1872 and 1933 to safeguard the37 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011professional interests of teacher (21, P.544). Other European countries came only gradually to realize thesignificance of trained teachers. In England, for example such training dates back to the beginning of the19th century when the monitorial system was adopted. It was replaced by the pupil-teacher system by about1840. There is no denying fact that the teacher occupies the most crucial position in the entire spectrum ofeducational activities. Singh Nagendra (1988, P.1) has enumerated the origin of Teacher Education as under: “Teaching asa profession is as old as the human race. Though it has been with us for such a along time, the professionalpreparation of teacher is probably a little less than two centuries old. It developed gradually and in distinctstages over these years. The historical forerunner of the training of teacher is the monitorial system whichcomes off just accidentally as far back as 1789 at the hand of Rev. and Drew Bell, the superintendent of amale asylum Anglo-Indian orphan and destitute at Madras. To his pleasant, Bell discovered that in the faceof scarcity of teacher, the older boys of his asylum taught their companions. The ingenuity of Bell wasaccepted as a new potential method for eight long years at the asylum and later, on his return to England in1797, he established a school of his own.”1.1.1Teacher Education during Pre-IndependenceTeacher education was introduced in the indo-pak sub-continent during the British rules. West PakistanBureau of Curriculum (1962, p.7) stated that: “The system of teacher education dates as back as the end ofthe first quarter of the nineteenth century when first attempt towards teacher training may be said to herebeen made by Dr. Bell who introduced what he called as the monitorial system of teacher education. Itconsisted of the advanced pupils teaching their less advanced fellow students in the same class under theguidance of adult teacher. This system was adopted by the education societies of three Presidencies ofCalcutta, Bombay and Madras. However this system failed to make any headway, as it did not aim attraining in methods of instruction as at improving knowledge of the subject matter. Before long, Wood’sDispatch (1854) came which stressed, for the first time an record, the need for a more systemic training ofteachers. It recommended establishment of separate training schools and class for masters very much akinto the pupil teacher system of England.”1.1.2Teacher Education after IndependenceAfter partition in 1947, the physical expansion of Primary Teacher Training Institutions has been slowduring the early years of our national independence. West Pakistan Bureau of Curriculum Lahore (1962, PP.22-23) has described as under:“Among thevaried educational problems at the initial stages, the paucity of teachers training institutions was by no lessphenomena……To start with 3 normal schools for males were opened during 1949-50. A further increase of8 institutions was made during the next two years which included a Training College at Peshawar forSecondary school teachers and Department of Education Conference held in Karachi from November 27 toDecember 1947 recommended taking steps for proper training of teachers and award of an adequate salary.Since then development, ideological and socio-economic needs of the country.”1.1.3Course Duration of Conventional Teachers Training ProgramsIn Pakistan there are different programs of teacher training being offered in colleges/institutions ofeducation. These institutions impart training to primary school teachers, secondary school teachers and38 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011supervisions.Abbasi (1995, P.3) Writes as follows: “Both the PTC and C.T courses are meant to equip prospective teachers the basic knowledge,teaching skills, educational theories and principles necessary for effective development of teaching learningprocess. The courses are spread 42 weeks. There are minimum 36 working hours in a week. The coursecomponents consist of five academic and six professional courses of equal weight age. It is followed bypractical teaching comprising 32-36 planned lessons and delivered under the guidance of the staff of thetraining colleges and supervision of the participating school teachers. Evaluation of theory works is 25%internal and 75% external….Final examination is conducted at the end of the academic session.”1.1.4Teacher Training Through Distance EducationFarooq (1990, P.16) stated that: “For quantitative expansion and qualitative improvement of teacher education Allama Iqbal OpenUniversity Islamabad has launched various programs of teacher training through distance education. Theseinclude PTC, P.T.O.C, C.T and B.Ed teacher education programs. The PTC program of Allama Iqbal OpenUniversity is a very popular program among the untrained teachers working in the primary schools ofdifferent parts of the country….. These are not required to leave their schools, and they can easily afford thetraining expenses.”Ministry of Education (1998, P.22) stated that: “The Allama Iqbal Open University also contributes significantly to the training of teachers by meansof distance learning techniques. Allama Iqbal Open University prepares candidates for PTC, CT and Bedand in session 1986/87, 4913 PTC teachers were produced by this route.”1.1.5Problems 0f Teachers EducationMinistry of Education (1998, P.67) stated that: “Teaching suffers from low status throughout Pakistan, with the possible exception of its perceivedvalue an employer of women. The status problem is not unique to Pakistan and attempts to resolve it haveusually focused on the twin strategies of raising professional standards of teachers as well as their rewardsand incentives….Whilst alternative employment opportunities remain limited than candidates for teachereducation will continue to come forward but this does not produce a committed and motivated teachingforce.” .1.1.6ObjectivesObjectives of the study were to: 1. Evaluate the role of Educational Technology at secondary level in Khyber Pakhtunkhwa. 2. Determine the usefulness of Educational Technology at secondary level. 3. Identify the status of the use of Educational Technology at secondary level. 4. Point out the effectiveness of Educational Technology at secondary level. 5. Assess the emerging trends of Educational Technology at secondary level. 6 evaluate the potentials of educational technology used in-service training.39 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 1.1.7 Methodology: Data were collected through survey and questionnaires. The researcher administered three different self assessment questionnaires and sampled principals, and Senior School Teachers and master trainers at Secondary School level in Mardan district of Khyber Pakhtunkhwa province (Pakistan) .For demographic profile percentages were used to compare the frequencies of the responses. Chi Square was applied to measure the role, needs, impact and effectiveness of Educational Technology in -service training. Heads of the schools, SSTs, and master trainers total population 1, 2, and 3 were taken as a sample 1,2 and 3 i.e. 30%, 30%, and 30%. Result: Table No 1. QUESTIONNATIRE FOR IN-SERVICE TRAINED TEACHERS S.No Statement SA A UD DA SDA X2 1 The duration of your in-service training was 42 35 21 20 32 24.16 The D reasonable. 2 The selector should considered concern subject for training. 35 3 22 26 34 10.9 3 Your professional education was assessed before training. 30 26 29 49 30 16.6 4 53 34 24 20 19 26.6 You were nominated for subject related training. 5 The training center was accessible for you. 40 42 16 26 26 15.63 6 The schedule of in-service training was suitable for you. 20 26 25 49 30 16.6 7 The methodology of teaching was followed during the 22 36 29 32 31 3.49 training. 8 The resource persons applied the result oriented teaching 32 44 18 27 29 11.76 methods. The1. 9 The instructional technology items were pro 20 26 25 49 30 16.6 provided regularly during training.2. 10 The relevant A.v.aids was used in training. .. 29 36 11 48 26 24.56 The emerging educational technology training was given to 11 you in training 16 27 14 46 47 33.4 12 Emerging educational technology related 11 28 20 39 52 31.32 materials were provided to you. 13 Resource Persons were expert to operate the E.T 47 32 11 36 24 24.16 The 14 The emerging educational technology was he 42 35 21 20 32 24.16 helpful for professional development. . 15 The Educational Technology models were 20 26 25 49 30 16.6 Properly used in training. 16 Teaching of instructors was according to you your 39 30 31 29 21 5.46 professional dvelopment. 40 | P a g e www.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 17 The training situation can be improved by using 40 42 16 26 26 15.63 Du educational technology. 18 The course coordinator behavior was democratic in training. 39 30 31 29 21 5.46 The. 19 You availed physical facilities during training. 16 42 18 39 35 19.6 20 Your training was evaluated. 29 36 11 48 26 24.56 Instructors were capable for that training. 21 42 35 21 20 32 24.16 . Total of 2 = 337.91 Total of 2 / No of Items = Average 2 16.09 From table No 1 to 21.It is revealed that the average x2(16.09) is greater than the table value of x2(9.488) at P (0.05), so that the opinion is different among the teachers. Therefore Ho is rejected. Table 2 QUESTIONNATIRE FOR HEAD OF THE INSTITUTONS S.No Statement SA A UD DA SDA X2 1 36 28 30 35 21 4.86 Director Education decides the organization of in-service teachers training programmed. 2 You nominate the teachers for in-service 49 35 10 36 20 30.72 training. . 3 Any need analysis of teachers was made before 37 49 7 41 24 28.46 nomination. . 4 You faced administrative problems after 29 36 11 48 26 24.56 relieving teachers for in-service training. 5 You have substitute teachers after relieving 16 42 18 39 35 19.6 teachers for training. 6 You assess professional weakness before the 11 28 20 39 52 31.32 training. 7 The ability should be considered, while 29 36 11 48 26 24.56 nomination of the teachers for training. You evaluate teacher’s performance after 8 training. 16 42 18 39 35 19.6 9 In-service trained teachers applied the techniques after training. 47 32 11 36 24 24.16 10 Traini Trained teachers used effectively ET aaaa after 37 41 7 41 24 28.46 training. Any positive change was observed by the 24 38 16 43 29 15.43 11 follow-up study. Trained t Trained teachers apply any educational activites. 12 48 37 13 29 23 22.8technology model in teaching activities. 13 The in-service training should be be 42 35 21 20 32 24.16 41 | P a g e www.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 org organized during the vacation. Training institutions should be well equipped. 53 34 24 20 19 26.6 14 15 The emerging educational technology was 49 35 10 36 20 30.72 helpful for professional development. .3. Total of 2 = 356.01 Total of 2 / No of Items = Average 2 23.73 From table No 1 to 21.It is revealed that the average x2(23.73) is greater than the table value of x2(9.488) at P (0.05), so that the opinion is different among the Head of the institution. Therefore Ho is rejected. Table3.QUESTIONNATIRE FOR MASTER TRAINNERS/RESOURSE PERSON S.No Statement SA A UD DA SDA X2 1 Your nomination was made by considering the needs 22 26 13 18 1 23.37 of master training. 2 Master training schedule was properly followed. 28 42 1 9 - 60.46 3 The result oriented teaching methods were used in 10 18 11 29 12 6.06 your master training. 4 A.v.aids was provided during your master training . 1 3 6 49 19 100.49The 5 Th The emerging educational technologies wasused e 4 8 2 48 18 89.5used in master training . 6 The emerging educational technology is helpful for 11 3 6 49 19 100.49 professional development. 7 In-service trainees were nominated on merit. 38 27 8 7 - 62.87 8 They asked questions during training. 4 8 2 48 18 89.5 The T You a 9 You apply educational technology during in-ser 9 31 8 20 12 23.12 teachers training. 10 You teach the operational skills of educational 12 16 28 19 5 18.12 technology to trainee teachers. You apply educational technology model during 1 3 6 49 19 100.49 11 training. 12 You teach them, how to develop the educational 15 23 4 33 4 40.12 technology model. Th 13 The emerging educational technology was helpful 38 27 8 7 - 62.87 for professional development. 14 The in-service training should be organized during 38 27 8 7 - 62.87 the vacations. 15 Your training was evaluated. 28 42 1 9 - 60.46 42 | P a g e www.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Total of x2= 900.79 60.05 Total of 2 / No of Items = Average 2From table No 1 to 21.It is revealed that the average x2(60.05) is greater than the table value of x2(9.488) atP (0.05), so that the opinion is different among the Master trainners.Therefore Ho is rejected.Conclusions 1. Professional as well as academic qualification was considered before in-service training. 2. Training centre was not accessible for teachers due to convince problem. 3. Time table schedule was not properly followed. Instructional technology was not properly used in training because the master trainers were not properly trained. 4. Principals/Head Masters were not consulted to makes the nomination of teachers for training. 5. Principals/Head Masters faced problems because substitute teachers were not provided after reliving teachers for training. 6. Principals/Head Masters did not evaluate the teachers performance after the in-service training 7. Follow up students did not conduct after in-service training 8. In service training should be organized according to the needs of the teacher and nomination should be made transparent 9. Emerging educational of technologies should be provided during in-service training, because immerging technologies are helpful for professional development. 10. Training evaluation may be ensured 11. Professional weaknesses may be evaluated before training.Recommendations 1. Research may be conduced to study the potentials of educational teaching used in in-service training 2. Teacher development programmed is a long term commitment of term, experiences and resources therefore follow up students may be conducted 3. Head of the institutions may be authorized to nominate the teachers for in-service training.43 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 4. In-service training may be developed on need bases 5. Coordination may be developed between head of institutions and executive officers 6. Teaching methods and mastery of the subjects may be updated as required from time to time 7. Emerging technologies may be used in in-service training 8. Selection of in-service teachers for training and master training should be made on merit bases 9. Appropriate teaching methods and management of the programmed may be arranged according to the needs and demand of the schools. 10. Continuous evaluation of overall training programmed and achievement of training objectives may be done both formatively and summative.ReferencesAbbasi, M.H.(1995) Teacher Education in Pakistan (country paper) IslamicRepublic of Pakistan.Bhatti,M.A & et al(1994)EPM study Guide Allama Iqbal Open UniversityIslamabad Pakistan.Best W.J and khan J.V (1989) Research in Education, Sixth Edition, New York Prentice Hall.Farooq,A.R(1990) A survey study on the problems and prospects of teacher education inPakistan.Ministry of education, Islamabad.Gay L.R (1999) Educational Research, Fifth Edition, NBF 2 nd Reprint, Pakistan, Fine Books Printer LahoreGovt of NWFP(2008)Educational Management Information Centre Provincial Education Department Peshwar.Iqbal,Z.M(1996) Teachers Training in The Islamic Perspective Shukat Printing Press Lahore.Lauwery,S.J(1969) Teachers and Training Great Britian Lahore.Ministry of Education (1998) National Education Policy 1998-2010 Ministry of Education Islamabadpakistan.Singh,N.(1988) Modernization of Teachers Education common Wealth Publisher New Delhi. .44 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Responding to Climate Change: A Study on Eco-Labeling Practices in Consumer Goods of Bangladesh Mohammed Solaiman Department of Marketing Studies & International Marketing, University of Chittagong Chittagong – 4331,Bangladesh. E-mail: drmsbd@yahoo.com A. K. M. Tafzal Haque Department of Management Studies, University of Chittagong Chittagong – 4331,Bangladesh E-mail: tafzal90_cu@yahoo.com Shanta Banik (Corresponding Author) Department of Marketing Studies & International Marketing, University of Chittagong Chittagong – 4331, Bangladesh. E-mail: shantobanikcu@gmail.comReceived: 2011-10-20Accepted: 2011-10-26Published: 2011-11-04AbstractEco-labeling is a marketing strategy that comes from inclined environmental awareness in the globalclimate change. The study followed a theoretical framework developed by Oyewole (2001) conceptualrelation among industrial ecology; green marketing and environmental justice make it clear how eco-labelthrough green marketing can be a tool to ensure equity in different socio-economic and environmentalperspective. The study was conducted in five super markets. The key information was collected throughobservations and depth interview from consumers and service providers. The study identified that the neweco-products formed new “green market”. It is observed that the green market appears to be real andgrowing. The study revealed that health and environmental concerns are main reasons why people becomeaware of eco-labeled products. The survey data evidenced that 17 percent of consumer read labels to see ifproducts were environmentally safe, 11 percent sort out products and packaging made form recycledmaterials and 7 percent said they had boycotted a company that was careless about the environment. Thestudy pointed out that there is a gap between policy and practices in eco labeling. The study recommendssome suggestions to make the success of eco-labeling in green marketing perspective such as creation ofawareness among the consumers, voluntary initiatives in environmentalism and consumerism,environmental appeals in advertising, practice of environmental protection law, integration betweenenvironmental justice and eco-system services in eco-labeling program etc.45 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Keywords: Eco-Labeling, Environmental Justices, Ecosystem Resources, Green marketing, GreenConsumerism.1. IntroductionThe concept of eco-labeling has been emerged in response to global environmentalism movement.Environmentalism is a social movement of concerned citizens and government seeking tominimize the harm done to the environment and quality of life by conventional marketingpractices. It calls for curbing consumer wants when their satisfaction would create toomuch environmental cost ( Kotler & Armstrong, 2008). Thus eco - labeling can be seen as arepresentation of the need to de-regulate environmental protection by allowing industry tomake the decision of whether or not to apply to the label and allowing consumers todecide to shop accordingly ( Gertz , 2006 ) . Eco labeling is one of the initiative thatstated several decades ago in order to mitigate environmental impacts by promotionof environmentally friendly products ( Zaman et. Al. 2010 ) Literature survey suggests thatgreen market is growing with green products and it needs consumer’s green needs,ecological and societal performance too . Apparently eco- labeling can also enhancecorporate and brand image, save money and open new market for products calling toconsumer’s need to maintain a high quality of life. Marketing activities withoutenvironmental consideration can cause serious environmental damages that impair thequality of life of present and future generations ( Panwar,2002) Thus, eco-labelling is asort of environmental quality certification. It is generally agreed that the eco- labelingis a marquee of environmental quality . This evidence may motivate consumers to payhigher price for eco- labeled products . In summary , the literature review suggests that thereis a gap between policy and practices of eco- labeling strategies in developing countries, ingeneral and in Bangladesh in particular. It is this context that we investigate in this paper.2. MethodologyThe study followed a theoretical framework developed by Oyewole (2001) conceptualrelation among environmental justice, industrial ecology and green marketing make it clear howeco-label through green marketing can be a tool to ensure equity in differentsocio-economic and environmental perspective. The study was conducted in five super markets inorder to know the practice of eco-labeling in Bangladesh. These markets have been selected purposivelyfor research purpose. The exploratory research design has been used in the present research work. Thesample respondents are 100 and these samples have been selected based on purposive sampling technique.The key information was collected through observations and depth interview fromconsumers and service providers. Necessary supporting data were collected frompolicymakers, environmental and consumer groups, NGOs, private sector through questionnairesurvey. Secondary data have been used in support of questionnaire survey and other sources of data for theresearch purpose.3. Environmental JusticeEnvironmental justice has been defined as the pursuit of equal justice withoutdiscrimination based on race, ethnicity, and/ or socio-economic status concerning both theenforcement of existing environmental laws, regulations and the reformation of publichealth policy (Chavis, 1993). It is the equal protection and meaningful involvement of allpeople with respect to the development , implementation and enforcement ofenvironmental laws, regulations, policies and the equitable distributions of environmentalbenefits ( Zaman et.al. (2010). Against this background , the relevant data and information havebeen collected and presented in the following captions :46 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20113.1Protection of Environment: The role of GovernmentThere are various government and non-government organizations/ agencies which havebeen working to protect living environment of the people of the country . Table 1in appendix shows government agencies and their strategies for protection of environmentin the country. These agencies are working directly / indirectly to protect environment of Bangladesh. Themain aspects of the government policies are (i) issuing no certificate of a new companywithout environment protection program in their plant designing and operating before establishingnew industry (ii) establishing standard for effluent control (iii) restriction to produce andsale environmentally harmful products. Again , government made classification of allindustrial units according to their environmental impacts such as (i) green class (ii)pink- k class (iii) pink-kh class (iv) red class (Bangladesh Gazelte Supplimentary 2007). Itappears that there agencies, policies and strategies are contributing to make the entrepreneurs, industrialistsand other stakeholders environment oriented in the study areas.3.2 Protection of Environment: The Role of NGO NGOs are working actively in environmental issues in Bangladesh. There are different types ofNGOs based on their activities e.g.(i) awareness build up NGOs (ii) development NGOs (iii)research NGOs (iv) activist NGOs ( Huq & Uhan 1994) . NGOs are involved in protection ofenvironment related activities such as toxic waste disposal, environmental education andawareness, environment and disaster management, training in environmental issues of thetarget groups. The important NGOs are IUCN, CARE, RDRS, CARITAS, BRAC, PROSHIKA etc. Anumber of donors have initiated assessment of environmental programs, activities andincorporating the outcome of the assessment in their development, planning, policies,programs and strategies. These organizations are DANIDA, NORAD, USAID, CIDA, UNDP etc. Theliterature review suggests that a good number of NGOs and donor agencies are playingimportant role to protect natural environment and to develop environmental friendly greenbusiness in Bangladesh. Thus, it creates demand of eco-labeling products in market and eco- label basedmarket segment in gradually growing on day by day in study areas.3.3 Protection of Environment: The Role of MediaIn creating consumer awareness, the media is playing an important role inBangladesh. They are publishing environmental events in such way so that it canenter in the minds of people. Thus, people are emerging as a environmental consciouscitizen and gradually they are converting green consumers. Besides, special issues,supplements, brochures, newsletters etc. are used as instrumental tools in the creating of voluntary pressuregroup for social awareness through incorporating different social groups, religious groups, civic society as astakeholder of environmental groups. As a result, environmentalism as well as greenconsumerism movement growing on day by day in Bangladesh. Thus, the demand ofeco-label based product is increasing and it creates differentiated market in competitive businessenvironment with competitive advantages.3.4 Protection of Environment: The Role of Civil SocietyThe marketing operations takes place in a society to serve the need of itsmembers, and its success is closely related with the patronization of the members of asociety (Islam,1998) A social movement under the leadership of Bangladesh civil societycan motivate consumers to consume environment friendly product which would createopportunity for green product and improve quality of life. (Hoque,2000) In addition , the47 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011member of the civil society can play a leading role to build- up the necessarysocial movement in this regard. Thus, deep ecological movement is an important andeffective instrument in creating social awareness about adverse impact environmentpollution and motivate entrepreneurs to start, organize and manage green business as well as greenproducts.4. Eco- System ServicesThe greening of marketing will not take place until consumers and producers recognizethe imminent ecological crisis. Such marketing institutions would produce more ecologicallybenign products, develop modes of promotion that do not encourage ecologically as well asdevelop mode of marketing distribution that minimize ecological impact on bothenvironment and resource use ( kibourne,1995) Economic theory recognizes four kinds of capital,e.g human, financial, manufactured and natural. Ecosystem resources are the equivalent of natural capital(Chee, 2004). The Millennium Ecosystem assessment (2005) as the benefits people obtain from ecosystems.These benefits are water, forest, soils, fisheries and these are the outcome of properecosystem management. The impact of environment on eco system management services may be outlinedas follows:4.1 PollutionEnvironmental pollution is the act of introducing into the environment someextraneous substances or energy that may result in unfavorable changes. The pollutioncan cause health, economic, and ecological problems. The causes of environment pollution aremany but the important causes are overpopulation, urbanization and industrialization.Overpopulation forces over expectation of natural resources viz. renewable and non-renewable resources . Urban pollution represents the combined results of industrial ,commercial and domestic activity . Industrial emissions pollute the air, effluents pollute waterand some industries may cause noise pollution too.4.2 DepletionDepletion of natural resources is a fundamental challenge to quality of environmentin Bangladesh. Technological innovations have created substitutes for many commonlyused non- renewable resources e.g. Optical fiber now replaces copper wire. It appears that thegreatest threat to ecosystem resources management is depletion of the renewable resourcesof Bangladesh. Further, the problem of ozone depletion due to use of CFCs is alsothreatening for the purpose of ecosystem management of the country.4.3 PovertyPoverty can be both cause and effect of environmental degradation . The poor cannot afford to protect the environment , have a tendency for overusing ecological resources.Observations confirmed that woman and children spend an average of 3 to 4 hours perday searching for fuel wood and sometimes waiting a day for procuring drinking aswell as bath water. Marginalization of small farmers, continuation of landlessness for floodand exploitation of female and male poor labor are common phenomena of adeveloping country like Bangladesh. Thus poverty alleviation object may be high agendain order to protect living environment and ensure ecosystem management .5. Green Marketing48 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011The concept of ‘ green marketing’ is the business practice that considers consumersconcerns with regards to preservation and conservation of the natural environment( Coddington,1993) . Since the late 1980’s marketers have been responding to consumerconcern about the natural environment by making a variety of environmental appealsin the marketing policies and strategies. For consumers, being green involves a lifestylethat has a minimal adverse environmental effects on the consumer is faced with avariety of consumption choices . Thus, green marketing that has been previously andprimarily focused on the ecological context has been shifted more sustainability issues inthe marketing efforts and main focus now is in socio- economic and environmentalcontext( Zaman et.al.2010). In fact, environmentalists make a distinction between deep ecologyand shallow ecology depending on the degree of environmental concern demonstratedby life style choices . Environmental consciousness of consumers motivate to consume eco– friendly products and to create demand of environment friendly consumer goods(Haque,2000) . Thus green marketing in context of eco- labeling will be explain in thefollowing manner:5.1 Eco-Labelling Products Industrialists of Bangladesh have been responding to consumer concern about thebetter living environment by producing eco-friendly product, for example, “Revit andColman’ a company in Bangladesh has declared its products- ‘ Mortein Aerosol’ isenvironmentally friendly and chlorofluorocarbon free (CFC). Marketers of Bangladesh arealso becoming amore aware of environmental issues as it opens up new businessopportunity for innovative and dynamic enterprises (Solaiman & Akteruzzaman,2001) Againstthis background, we were interested to know from the sample respondents regardingeco-labeled products. Table -2 in Appendix depicts the opinions expressed by the samplerespondents in this regard. Table-2 reveals that 41 percent sample respondents readlabels, 27 percent respondents read labels sometimes, 25 percent respondents never readlabels of products and 7 percent respondents have no comment on issue. The surveydata agree that the majority consumers are concerned about the environmental impactof what they buy ? An overwhelming majority may believe that pollution is a serious problem andgetting worse day by day. In such a context, service providers may modify their existingprocurement policy and giving preference on eco-labeled products for their costly shelfof super market for achieving two folds objectives e.g. maximization of profits andcustomer satisfaction too.5.2 Environmental Quality of PackageConsumers are getting maximum product information from packaging. Literature review suggest that52 percent of consumers learn about products environmental attributes from productpackaging ( Wasik,1997) . Further, data were collected about environmental qualities of packages. Table 3in appendix depicts that 68 percent sample respondents prefer bio- degradable and ozonesafe packaging and 19 percent in favor of rational packaging system . Only 10 percentsurveyed consumers did not make any comment. Apparently , developing environmentally friendlyproducts, industrialists not only provides an opportunity to do the right things, but it alsocan enhance corporate and brand image, save money; and open new green markets forgreen products creating to consumers needs to maintain a high quality life.5.3 Pricing of Eco-Labeled ProductsResearch indicates that consumers are concerned enough to consider paying more forenvironmentally friendly products ( Solaiman ,2005) .Data were collected from sample49 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011consumers and presented in Table-4 in appendix regarding price of eco- labeledproducts. Table-4 portrays that 43 percent of sample respondents expressed theirwillingness to pay 5 per cent addition price for eco-labeled products. The survey datashow that 21 per cent, 18 per cent, 12 per cent, and 6 percent consumers are ready to spent 10per cent , 15 percent, 20 percent, and above 20 percent additional money for eco- labeledproducts. It appears that producers who do not take programs which are environmentfriendly will be penalized in the competitive green market. Their products will losevalue and their reputations will be tarnished in context of growing growth of eco-labeled products. Thus, there is an interlinked among green marketing, eco- labeling andstrategies of environmental protection.6. ConclusionPeople live on nature and its resources, but the resource endowments of nature arelimited. Thus, protection of environment may be ensured by using green marketing toolssuch as eco-labeling , eco design , environmental management and audit scheme,environmental product differentiation, recyclable, bio-degrable packaging and the likes.Moreover the Government , NGOs, civil society, media can contribute throughenvironmentalism and green consumerism movement. Apparently , the success of eco-labelingscheme depends to a great extent on integration among environmental justice, ecosystemresource management and green marketing. AppendixTable 1: Government Agencies and Strategies for protection ofEnvironment No Government Agencies and Strategies 1 Ministry of Environment & Forest 2 Department of Environment ?(DOE) 3 National Conservation Strategy 4 Coastal Environmental Protection Plan 5 Inland Water resource management strategy 6 Flood Action plan 7 National Environmental Management Action Plan [Source: Government Documents]Table-2: Consumer’s opinion about label of products Response Patterns No. of Sample Respondents Frequency in Percentage Read labels 41 41% Do not read labels 25 25%50 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Sometimes read labels 27 27% No comment 7 7% Total 100 100% {Source: Consumer Survey}Table- 3: Environmental Qualities of Packaging Attribute Number of Sample Frequency in percentage Respondents Bio- degradeable package 68 68% Traditional package 19 19% No comment 13 13% Total 100 100% [Source: Questionnaire Survey]Table-4: Differential Pricing for Eco- labeled Products Differential Pricing Number of sample Frequency in package Upto 5 percent 43 43% 5 percent to 10 percent 21 21% 10 percent to 15 percent 18 18% 15 percent to 20 percent 12 12% 20 percent and above 6 6% Total 100 100% [Source: Personal Interview ]ReferencesChavis, Bf Jr (1993) , “ Superfund : The need for Environmental Justices, Equal protection andthe environment testimony before the committee on government, U.S. House ofRepresentative, National Association for the Advanced colored people. Bangladesh GazetteSupplementary (1997), 3115Chee, Y.E (2004)” An ecological perspective on the valuation of Eco-system resources” BiologicalConservation, pp 549-565.Coddington,w.(1993),Environmental marketing, New York: McGraw Hill .Gertz, R. (2006) “Eco-labeling-A case study for De-regulation”, Law Prob.Risk, Vol.4, No.3, pp.127-141.Haque Mahfuzul and khan, Mayeen, A .(1994), “Environmental Activities in Bangladesh’Environment and Development in Bangladesh, University Press Ltd. Pp. 83-p-85Hoque, Tafazal, A.K.M (2000)”Green musieries as a competitive advantage for South Asia: Opportunity51 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011and Challenges in Bangladesh perspective” South Asia Journal of Management, p 486Kotler, Philip and Armstrong, Gary (2008), Principles of Marketing, Pearson Prentice Hall, p.616.Ottman, Jacquelyn (1993), Green Marketing: Challenges and Opportunities for the New Marketing Age,Lincolnwood, IL: NTC Business Book. P. 141.Panwar, J.S.(2002), “Sustainable Industrial Development in the South Asian Issues: Challenges andStrategies”, South Asian Journal of Management, April, pp.15-17.Solaiman, Mohammod (2005), Green Marketing, Chittagong: Star PublicationSolaiman, Mohammod et.at.(1999),”Environmental marketing: The Bangladesh Perspective “,South AsianJournal of Management,Vol.6,No.5,p.5.Warik, Joha F. (1994), Green Marketing and management: A Global perspective, U.K: Blackwell Oxford,p951.Zaman, Atiq uz et-al. (2010) “Green Marketing or Green Wash? A Comparative Study of Consumer’sBehavior on Selected Eco and Fair Trade Labeling in Sweden, Journal of Ecology and the NaturalEnvironment, Vol. 2, No.6. p 105.52 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Does Corporate Entrepreneurship matter for Organizational Learning Capability? A Study on Textile Sector in Pakistan Bashir Ahmed Department of Business Administrative, Government College University, Faisalabad, Pakistan ahmedbashir7@yahoo.com Hazoor Muhammad Sabir Department of Business Administrative, Government College University, Faisalabad, Pakistan Hazoor.sabir@yahoo.com Nadeem Sohail College of Commerce Government College University, Faisalabad, Pakistan Sohail5241@hotmail.com Raheel Mumtaz Department of Business Administrative, Air University, Islamabad, Pakistan raheelmumtaz564@yahoo.comReceived: 2011-10-15Accepted: 2011-10-26Published:2011-11-04AbstractThe paper aims to investigate the relationship between corporate entrepreneurship and organizationallearning capability. A survey method was undertaken to collect data from 240 middle level managersworking in textile industry through convenience sampling method. Results indicate a positive andsignificant relationship between variables. Practical implications of the study are that if any organizationwhich tends to be more innovative and risk taking has the more learning capability. Furthermore,entrepreneurship training programs could lead to enhancing competences which are important forentrepreneurship.Key Words: Corporate entrepreneurship, Organizational Learning Capability, Textile Sector, Pakistan.IntroductionAt present, the intense competition in business environment has alerted the companies to monitor theircompetitors on continuously. As, the technological revolution in business world has changed the way ofinteracting with customers and boost growth in some industries but on the other hand damage badly some53 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011businesses also. In this situation, any firm that do not focus on continues development, adapting, andacquiring of innovative technological advances in this changing environment my not be able to sustain onlong term basis. The management strategic decisions play a vital role for organizational effectiveness in thisscenario (Merrifield1993). Globalization of business is creating substantial changes through out the world.This phenomenon has changed the markets trends, customers’ preferences, competitors and style ofmanagement also. Kemelgor (2002) emphasizes that stagnation in business environment shrink the marketshare or permanent and quick failure. In such kind of turbulent environment, an organization must beinnovative to remain competitive on continues basis.Incremental innovations are the life blood for organizational well being and competitive advantage (Herbert& Bazell, 1998, Kemelgor 2002). Corporate entrepreneurship might be helpful for any organization to copeup all challenges facing today. These challenges emphasize the need for businesses to respond in moreentrepreneurial way (Brazel & Herbert, 1999). A good number of companies are now fosteringentrepreneurship and developing new looms for innovation so that to generate new businesses opportunitiesand maximize profit. Innovation, profitable growth, and continuous growth of business are the spirit ofentrepreneurship (Drucker, 1985; Khandwalla, 1987; Lumpkin & Dess 1996). The main aim forentrepreneurship is identify the factors which emerge customer dissatisfaction and adopt new ways toremove them (Ramachandran, 2003).Presently, many companies in Pakistan want to get competitive advantage over their competitor.Organizational learning capability of those firms helping them to achieve their objectives. It is vital to getadvantage of the competitors to offer distinct goods and services to different customers according to theirpreferences.According to Stevenson et al., (1989) Corporate Entrepreneurship (CE) is a phenomenon which helpsbusiness managers to identify new opportunities for business without looking the resources they havepresently. It is vital for an entrepreneurial manager to articulate emerging technological knowledge to solvethe customers’ problems according to market trends and needs. By doing this, he will be able to give a newbirth to the business and transform business ideas into reality (Guth & Ginsberg, 1990). Empiricallyresearchers explain the characteristics of corporate entrepreneurship as organizational activities thatdiscover and pursue new business opportunities through innovation, venture, and renewal (Ling etal., 2008).Previously, various researchers have estimated the relationship between organization learning capabilitiesand innovation (Calantone et al., 2002) but not found any positive relationship. This study has the objectiveto fill the gap by working on organizational learning capability, organizational innovation and corporateentrepreneurship.The major purpose of this study is identifying the relationship between corporate entrepreneurship andorganizational learning capability. This study is helpful to understand this phenomenon in Pakistani cultureand has significant contribution in corporate entrepreneurship literature. Although this area has widelyexplored across the cultures but still have a lot potential to be explored. This research has very usefulimplication in Pakistani corporations, especially for manger to cope up existing challenges in the industryand increase corporate growth. Entrepreneurial manager will understand how organizational learningcapabilities them to make organization more innovative and customers focus oriente d.Literature Review Organizational learning capability is an important factor that has been getting increasing importance foracademia and business people Organizational learning capability is characterized as organizational andmanagerial factors which make an organizational process and organization to learn more effectively (Yeunget al., 1999). Basic learning skills for any organizations based experiments and new ideas ( Koc & Ceylan,54 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20112006). Coalitions, technology transfer and agreements with universities about research and developmentmight be a potential source for external learning, which leads to innovation (Alegre & Chiva, 2008; Chipika& Wilson, 2006; Chiva & Alegre; 2009). Risk taking is characterized as the level of tolerating withuncertainty, ambiguity, and errors (Chiva & Alegre, 2009). Failure has been considered as the mosteffective tool for organizational learning (Sitkin 1996). Dialogue and participative decision making makesemployees more confident and develop trust which is also considered vital for organizational learning(Chiva & Alegre, 2009; Cotton et al., 1988).It is clear that ability to learn is considered as a key factor for organizational effectiveness (Alegre andChiva, 2008). Innovation is considered as the adoption of new ways to do something (Scott & Bruce, 1994).Therefore, organizational innovation can be in various forms like new product, service, productionprocedure or technology and management strategy (Garcí a-Morales et al., 2007). Corporate entrepreneurship can be defined as the process which helps organizations to captureopportunities and manage the factor of production in more efficient way (Jones & Butler 1992). Thisprocess may found in any organization at any level and area (Schindehutte et al., 2000). Corporateentrepreneurship has multiple dimensions like process innovation, strategic renewal, product and servicesinnovation, pro activeness, risk taking and organizational innovation. Generally corporate entrepreneurshipis considered an important factor for organizational performance (Pinchot 1985). Empirically, it has beeninvestigated that corporate entrepreneurship provide basis for organizational learning (Slater & Narver,1995). Sinkula (1994) express that organizational learning capability increase organizational knowledge.H1: Corporate entrepreneurship is positively related with organizational learning capabilityTheoretical Framework Independent Variable Dependent Variable Corporate Organizational Learning Capability Entrepreneurship •Research DesignSample and Procedure This study was cross – sectional. The target population was composed of middle level managers fromtextile sector in Pakistan. Data was collected through survey method. This study reveals 240 validquestionnaires. The response rate was 54%. SPSS was used to analyze data. Approximately 77%respondents were males. Majority of respondents were graduates and in the age group of 30 to 40 ears.Measurement of ConstructsCorporate entrepreneurship was measured by using a scale developed by Zahra et al., (2000). Scalereliability is 0.77 which is greater than 0.7 (Nunnally, 1978). A 14 items scale to measure the organizationallearning capability composed by Alegre and Chiva (2008) was used. A 7 point Likert scale was usedranging from 1 to 7. 1 represented total disagreement and 7 total agreements. Cronbach’s alpha wasemployed to asses the reliability which was 0.79. That was above from 0.7 (Nunnally, 1978).55 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011ResultsCorrelation and Regression AnalysisCorrelation matrix shows that corporate entrepreneurship has positive and significant relationship withorganizational learning capability. As for regression analysis, it explains the intensity of relationshipbetween variables. Regression analysis explains that Corporate entrepreneurship as a predictors, has 0.484(R2 = 0.225) and the adjusted R2 which explains 22.0% variation in organizational learning capability.T-value is 9.686 and p-value is 0.000. It means there is positive and significant relationship. Results aresupporting the developed hypothesis. So on the basis of these results the H0 is accepted.ConclusionThe major purpose of this study was to investigate the relationship between corporate entrepreneurship andorganizational capability. Environment of any organization has influence of organizational learningcapability. If an organizational has promoted innovation than that organizational has more capacity to learn.The results of this study also support the findings of previous research. Dibella et al., (1995) found thatexperimentation also enhance the learning capability. So it is clear that corporate entrepreneurship has thepositive influence on organizational learning capability. Organizations and managers which promoteinnovation, risk taking tendency, and believe on experimentation can learn more and get advantage overcompetitors. So the findings of this research have much use for implication for managers working in textilesector in Pakistan specifically and all industry generally. If any organization want to get competitoradvantage over competitor than it has to think in different way. Focus on more and more research anddevelopment take risk and introduce innovative product and services in the market. This study hasnumerous limitations. First, this study was cross sectional in nature. Second, this study was on textile sectorso the result can be generalized in different sectors. This study has geographical limitation also as this studywas conducted in Faisalabad, so the data was collected on from one city. Future study must work on theselimitations and some other factors like culture of the organization take into account.ReferencesAlegre J, Chiva R (2008). Assessing the impact of organizational learning capability on product innovationperformance: An empirical test. Technovation ,28, 315–326.Calantone, R. J., & Cavusgil, T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, andfirm performance. Ind. Mark. Manage. 31, 515–524.Chipika, S., & Wilson, G. (2006). Enabling technological learning among light engineering SMEs inZimbabwe through networking. Technovation, 26 (8), 969–979.Chiva, R., & Alegre, J. (2009). Organizational Learning Capability and Job Satisfaction: an EmpiricalAssessment in the Ceramic Tile Industry. Br. J. Manage, 20, 323–340.Cotton, J. L., Vollrath, D.A., Foggat, K. L., Lengnick-Hall, M. L., & Jennings, K. R. (1988). Employeeparticipation: Diverse forms and different outcomes. Academy of Management Review, 13 (1), 8–22.Drucker, P. F. (1985). Innovation and entrepreneurship: New York , NY: Harper and Row.Dibella, A. J., Nevis, E. C., & Gould, J. M. (1996). Understanding organizational learning capability.Journal of Management Studies, 33(3), 361–379.56 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Garcia-Morales, V.J., Llorens-Montes, F. J., & Verdu-Jover, A. J. (2007). Influence of personal mastery onorganizational performance through organizational learning and innovation in large firms and SMEs.Technovation. 27(9), 547-568.Guth, W. D., & Ginsberg, A. (1990). Guest Editors’ Introduction: CorporateEntrepreneurship. Strategic Management Journal, 11(5), 5-15.Herbert, T. T & Brazeal, D.V. (1998). The future corporation: Corporate entrepreneurship on the fly. http:www.sbaer.uca.edu/docs/proceedings.Jones, G. R. & Butler, J. E. (1992). Managing internal corporate entrepreneurship: Agency theoryperspective. Journal of management, 18, 733-749.Khandwalla, P. N. (1987). Generator of Pioneering- innovative management : Some Indian Evidence.Organization studies, 8(1), 39-59.Kemelgor, B. H. (2002). A comparative analysis of corporate enterprenural orientation between selectedfirms in the Nether Land and USA. Entrepreneurship and regional development, 14, 67-87.Ling, Y., Simsek, Z., Lubatkin, M. H., & Veiga, J. F. (2008). Transformational leaderships role inpromoting corporate entrepreneurship: examining the CEO-TMT interface. Academy of ManagementJournal, 51(3), 557–576.Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the enterprenural orientation, construct and linking it toperformance. Academy of management review, 21(1), 135-172.Merrifield, D. B. (1993). Entrepreneurial Corporate Renewal. Journal of Business Venturing,8(5), 383-389.Nunnally J (1978). Psychometric Theory. McGraw-Hill, New York.Ramachandran, K. (2003). Customer Dissatisfaction as Sources of Entrepreneurial opportunity. NanyangBusiness Review, 2(2), 21-38.Scott, S. G., Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individualinnovation in the workplace. Academy of Management Review, 37, 580–607.Schindehutte, M., Morris, M. H., & Kuratko, D. (2000). Triggering events, corporate entrepreneurship andmarketing function. Journal of Marketing Theory and Practice, 18 – 30.Slater, S. F. & Narver, J. C. (1995). Market orientation and the learning organization. Journal of Marketing,59(3), 63-74.Sinkula, J. (1994). Market information processing and learning organization. Journal of Marketing, 58,34-45.Sitkin, S. B. (1996). Learning through failure. In: Cohen, M., Sproull, L. (Eds.), Organizational Learning.Sage Publications, California.Stevenson, H. H., Roberts, M. J., & Grousbeck, H. I. (1989). New Business Ventures andthe Entrepreneur.Homewood, IL: Irwin.57 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Yeung, A. K., Ulrich, D. O., Nason, S. W., & Von Glinow, M., 1999. Organizational Learning Capability.Oxford University Press, New York, 1999.Zahra, S.A., Nielsen, A. P., & Bogner, W. C. (1999). Corporate entrepreneurship, knowledge, andcompetence development. Entrepreneurship Theory and Practice 23,169–189. Table - 1 Correlation Matrix Organizational Learning Corporate Entrepreneurship Capability Organizational Learning 1 .430(**) Capability Corporate Entrepreneurship .430(**) 1** Correlation is significant at the 0.01 level (2-tailed). Table - 1 Regression AnalysisModel B Std. Error Beta t Sig.Constant 1.424 .123 10.796 .000 Corporate Entrepreneurship .062 .4895 9.686 .000Model Fitness (R2= 0.225; Adjusted R2 = 0. .220) F = 68.520.000** Correlation is significant at the 0.01 level (2-tailed).58 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Adoption of Mobile Money Transfer Technology: Structural Equation Modeling Approach Peter Tobbin Center for Communication, Media and Information Technologies, Aalborg University, Denmark Tel: +233202010808; E-mail: tobbin@plan.aau.dk John K.M. Kuwornu (Corresponding author) Department of Agricultural Economics and Agribusiness, P. O. Box LG 68, University of Ghana, Legon-Accra, Ghana Tel: +233245131807; E-mail: jkuwornu@ug.edu.gh / jkuwornu@gmail.comReceived: 2011-10-23Accepted: 2011-10-29Published:2011-11-04AbstractIn recent years, rapid spread of mobile phones use in the developing countries is as a consequence ofthe introduction of prepaid cards and the fallen prices of mobile handsets. One of such uses is the useof mobile phones in financial services industry. This study investigates the key factors that influencethe Ghanaian consumers’ acceptance and use of mobile money transfer technology using keyconstructs from the Technology Acceptance Model (TAM) and Diffusion of Innovation (DoI) theory.We analyzed the data using a Structural Equation Modeling (SEM) to evaluate the strength of therelationship between the constructs. The results were consistent with the key TAM and DoI constructs.Keywords: Technology Acceptance Model, Adoption, Mobile Money Transfer Technology, Diffusionof Innovation theory, Ghana.1. IntroductionThe introduction of prepaid cards and the fallen prices of mobile handsets have lead to a rapid spreadof mobile phones in the developing countries (Orozco et al., 2007). This has opened up diverseopportunities for it to be used over and above voice communication. At the centre of this experiencewhich comes from the convergence of advanced mobile communication technologies and the ability touse it for data services is mobile money transfer. There are currently over 2 billion mobile phone users59 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011and thus exceeding the number of banked people in the developing countries (Hughes and Lonie,2007). The mobile money transfer (MMT) service is an aspect of a broader concept emerging in theelectronic payment and banking industry referred to as Mobile Money. Even though mobile money hasnot been well defined in literature it can be said to include all the various initiatives (long-distanceremittance, micro-payments, and informal air-time battering schemes) aimed at bringing financialservices to the unbanked using mobile technology. However, Mobile Money can be defined as moneythat can be accessed and used via mobile phone (Jenkins, 2008). Mobile Network Operators (MNO) inmost developing countries are at different stages of MMT implementations. Notably among thedeveloping countries are Philippines, Kenya, South Africa, Tanzania, Nigeria, Ghana and Uganda.Whilst Safaricom’s M-pesa has been hugely successful in Kenya, the adoption of similarimplementations in Philippines, South Africa and Ghana have not enjoyed similar success.1 Thus, thispaper seeks to explore the key factors that affect consumer behavior towards the adoption and use ofMMT in Ghana. Studies on MMT falls between two main mobile technologies related research areas,namely mobile payment and mobile banking. Whereas literature on the adoption of mobile banking(Cheng et al., 2006; Chen, 2008) and mobile payment (Wang and Lie, 2006) and the more broaderscope of m-commerce (Dai and Palvia, 2008) although not quite exhaustive have enjoyed significantattention of many scholars in recent times, research on mobile money is at its formative stages.However, scholarly research on the new phenomenon of bringing financial services to the unbanked(Mobile Money) is generally said to be scarce (Maurer, 2008). Therefore, there is a need to understandusers’ acceptance of mobile Money and to identify the factors affecting their intentions to use mobileMoney. This information can assist MNOs and service providers of mobile Money systems in creatingservices that consumers want to use, or help them discover why potential users avoid using theexisting system. Hence, the main objective of this paper is to develop a model that tries to predict thefactors that affect consumer behavior towards the adoption of Mobile Money transfer in Ghana. Whatare the key determinants of user acceptance of mobile money transfer?To answer this question a theoretical model is developed by combining aspects of TechnologyAcceptance Model (TAM) (Perceived Usefulness (PU), Perceived Ease of Use (PEOU)), Diffusion ofInnovation theory (DoI) (Relative Advantage (RA), Trialability) with additional constructs, PerceivedTrust (PT) and Perceived Risk (PR), and empirically tested its ability in predicting user behavioralintention of Mobile Money. We analyzed the data using Structured Equation Model (SEM) toevaluate the strength of the relationship between the constructs. The results provide support of anextended TAM model with PU, PEOU, PR, PT, and Trialability as key determinants in predictingcustomers intention of adoption and use of mobile money.1.1 Mobile Money Transfer TechnologyMany business transactions including cross country transactions are being conducted on mobilephones daily. The two fundamental attributes of the mobile phone which has lead to its flourishedusage are mobility and immediate access (Leung and Wei, 2000). It was believed that electronicmoney will displace paper money and face-to-face transaction. This has not materialized yet. Willmobile money replace the need for cash? To answer this question we will need to understand theextent to which users are prepared to accept the electronic money as a means of exchange (Mas andKumar, 2008). The two key functions of money are: as a store of value and a means of exchange2.Most of the emerging markets operate a cash economy with over 70% unbanked (Jenkins, 2008).Mobile phones ability to store value and be used as a means of exchange will depend on users’adoption of the technology. In many African countries such as Kenya mobile money transfertechnology is the most popular means of money transfer (i.e., sending domestic remittance to familymembers, relatives and friends). Ghana, like most developing countries has a great number ofhouseholds that depend on domestic remittance. An increase in urbanization in city centers andconstant migration in Ghana means that the need for money transfer services have been quite1 Safaricom’s M-PESA (where “M” denotes mobile, and PESA denotes money in Swahili) in Kenya.2 David Birch’s Digital Money Forum blog at http://www.digitalmoneyforum.com/blog.60 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011significant. Informal methods of remitting funds within Ghana to families and relatives are quiteestablished with diverse difficulties and challenges. One of the key factors in the choice of remittanceservices everywhere is accessibility. Until recently, the main methods of remittance in Ghana havebeen through the “Bus Driver”.3 Other informal methods were using visiting family and friends ortravelling long distances to remit the funds whenever necessary. Thefts, armed robbery and accidentsare a few of the challenges with these methods of remittance.The rest of the study is organized as follows. Section 2 presents the theoretical framework. Section 3presents the empirical application of the theoretical framework to mobile money transfer technology.Section 4 presents the results, while Section 5 presents the discussion of the results, and Section 6provides the concluding remarks.2. Theoretical Framework2.1 Background Information on the Theoretical FrameworkIn Information Systems literature, Roger’s (1995) diffusion of innovation theory (DoI), Davies’ (1989)technology acceptance model (TAM), the extended technology acceptance model (Davis 1989), thetheory of planned behaviour (Azjen, 1985) and the unified theory of acceptance and use of technology(UTAUT) (Venkatesh et al., 2003) have been used for the last two decades to explain possibleconsumer behaviour with respect to adoption and acceptance patterns of new technologies andinnovations. Several researchers have sought to develop constructs that affect consumers’ behaviourwhen deciding on the adoption of mobile services by applying these existing information systemtheories and models (Wu and Wang, 2005; Hung et al., 2004). Studies on mobile services have shownthat the application of the above information system theories and models have extended to valuedadded mobile services (e.g., Carlsson et al., 2006; Chen, 2008). The most applied, tested and refinedmodel is the TAM followed by (UTAUT), (DOI) and then Theory of Planned Behaviour (TPB).2.2 Technology Acceptance Model (TAM)Over the years TAM has been tested and applied in the prediction of future consumer behaviour (e.g.,Legris et al., 2003), amongst others in the mobile services domain (e.g., Cheong and Park, 2005;Nysveen et al., 2005). The Technology Acceptance Model (TAM) is established on the premise thatthe contracts, perceived usefulness and perceived ease of use are fundamental determinants of systemadoption and use (Davis, 1989). These two beliefs create a favorable disposition or intention towardusing the IT that consequently affects its use. Perceived Usefulness (PU) is said to be the degree towhich a person thinks that using a particular system will enhance his or her performance. WhereasPerceived Ease of Use (PEOU) is “the degree to which a person believes that using a particular systemwill be free of effort”(Davis, 1989). TAM has received praises from earlier researchers on itscontribution towards our understanding into consumer behaviour. For instance, Lu et al., (2003, p.207)states that: “Throughout the years, TAM has received extensive empirical support through validations,applications and replications for its power to predict use of information systems”. Also, Legris et al.,(2003, p.202) conclude that “TAM has proven to be a useful theoretical model in helping tounderstand and explain user behaviour in information system implementation”.2.3 Innovation Diffusion Theory(DoI)Another theory which has received similar attention by scholars in explaining consumer behaviourtowards new technology is the Rogers’ Innovation Diffusion Theory (Rogers, 1995). Innovation isdefined as “an idea, practice or object that is perceived as new by an individual or another unit of adoption”, while diffusion is “the process by which an innovation is communicated through certain channels over time among the members of a social system” (Rogers, 1995, p.10).3 People visits the bus station of the village or town that their families are based and with a little incentive plead with the bus driver tosend their remittances for them. If accepted by the bus driver, the remittance gets to the family within hours.61 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011By these definitions, innovation diffusion is achieved by how a social system accepts and begins touse (adopt) an idea or a technology. Roger further states that the following are the characteristics ofany innovation: Relative Advantage: the degree to which the innovation is perceived as being betterthan the practice it supersedes; Compatibility: the extent to which adopting the innovation iscompatible with what people do; Complexity: the degree to which an innovation is perceived asrelatively difficult to understand and use; Trialability: the degree to which an innovation may beexperimented with on a limited basis before making an adoption (or rejection) decision; andObservability: the degree to which the results of an innovation are visible to others (Rogers, 1995).3. Empirical Application of TAM and DOI to Mobile Money Transfer TechnologyThe various terms that relate to the use of mobile phones to access, store, and transfer or linked to anaccount; mobile banking (mobile banking), mobile payments (m-payment), mobile money transfer andmobile microfinance are collectively referred to as Mobile Money (MM) in this study. Research onadoption of MM can be seen as part of previous researches in mobile banking and mobile payments.Therefore, it could be argued that the determinants of adoption in m-banking and m-paymentenvironment should be applicable to mobile money. TAM and DOI are considered to be extremelysimilar in some constructs and supplement one another (Wu and Wang, 2005). Some similarities canbe drawn between RA and PU; Complexity and PEOU to the extent that some researchers identifiesthe TAM constructs as a subset of the Innovation Diffusion Theory (Wu and Wang, 2005). However,developing different measurements for RA and PU was found to be particularly important in MMadoption. Also, complexity and PEOU is considered to be too similar to be separated in this study.3.1 Research Model and HypothesisFigure 1 depicts the research model for our study. It includes the key determinants for the TAM(Perceived Usefulness & Perceived Ease of Use) and some aspects of the Diffusion of InnovationTheory (Triability, Relative Advantage). It is supported by other constructs such as Perceived Trust(PT), Transactional Cost (TC) and Perceived Risk (PR). Also Reliability and Perceived Privacy areidentified as antecedents of Perceived Trust62 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 RA PU PEOU BI PR Reliab PT PP TC Trail Figure 1: Research Model Perceived Usefulness: PU is said to be the degree to which a person thinks that using a particularsystem will enhance his or her performance. Whereas the initial definition stated was about theusefulness in performing a job function, PU in the adoption of mobile services is defined in a broadercontext to include how well consumers believes mobile services can be integrated into their dailyactivities (Kleijnen et al., 2004). And in a mobile payment context it can also be defined as the degree towhich the consumer believes that the MM transfer will enhance his transaction (Chen, 2008). When thisbelief increases, the consumer’s intention to use the MM transfer services will also increase. Inconsumer behavior analysis PU has been well tested as a determinant for a consumer’s intention to usemobile services. Also, the extent to which a consumer finds the MM transfer useful may depend on theRA of the service. If the mobility and easier accessibility characteristics of mobile services leads to aconsumer belief that the MM transfer is better than its predecessors (other money transfer services) thenthat will affect its perceived usefulness. The ultimate reason people exploit MM transfer is that theyfind them useful (Luarn and Lin, 2005).H1: Higher perceived usefulness will lead to higher behavioural intention to use MM.H2: Higher Relative Advantage will lead to higher Perceived Usefulness Perceived Ease of Use: PEOU is “the degree to which a person believes that using a particularsystem will be free of effort” (Davis, 1989). In MM transfer, it includes registration procedures, ease ofuse of the payment procedure, easy access to customer services, minimal steps required to make apayment, appropriate screen size and input capabilities. Also, the availability of the MM transfer agentswill increase the PEOU. Furthermore, it should be accessible on mobile phones with the most basicfeatures and software. Previous studies have concluded that PEOU is a key determinant to consumerbehavioral intentions (e.g., Venkatesh and Davis, 2000). In order to prevent the ‘‘under-used’’ systemproblem, MM transfer must be both easy to learn and easy to use (Luarn and Lin, 2004). And also the63 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011original TAM posits that perceived ease of use has a direct effect on perceived usefulness (Davis, 1989).H3: Higher perceived Ease of Use will lead to a higher Perceived UsefulnessH4: Higher perceived Ease of Use will lead to a higher behavioural intention to use MM. Perceived Trust: Mobile Money transfer environment, like all business transactions require anelement of trust. To become a viable unit of doing business MM transfer should overcome user distrust.And for the purpose of this study, trust is defined as a measure of consumer’s level of assurance thatthe service will be provided with minimum possible hindrance. Research revealed that trust in mobilecommerce can be differentiated into two categories: trust in mobile technology and trust in mobilevendors (Siau and Shen, 2003). The existence of local agents who are well integrated into thecommunities will be necessary for this level of trust to be obtained. Users would expect some level ofprivacy from the agents. In addition, overall network and service perceived reliability affectconsumer’s perceived trust in the service. The reliability can be measured by the successful utilizationof the service over a period of time with little or no interference. Consumers need to have a belief thatthe network is reliable. Previous studies have found perceived trust as a significant determinantinfluencing consumers’ behavior intention towards electronic commerce transactions (Mallat, 2007).Although, PEOU has been identified as an antecedent to perceived trust in prior e-commerce adoptionresearch, this was seen as not applicable to MM transfer (Gu et al, 2009). The complexity of using theMM transfer applications will not necessary be attributed to the trustworthiness of the service provider.Thus, privacy and reliability are seen as antecedents to perceived trust. And Perceived Trust isexpected to have a direct effect on behavioural intentions.H5: Higher Perceived Trust will lead to a higher behavioral intention to use MMH6: Higher Reliability will lead to a higher Perceived TrustH7: Higher Privacy will lead to a higher Perceived Trust Perceived Risk: A consumer’s perceived risk was identified by the selected consumers and MMprofessionals interviewed as a significant barrier for MM transactions. Perceived Risk is defined as aconsumer’s belief about the potential uncertain negative outcomes from the mobile money transaction.Consumers’ desire to minimize risk supersedes their willingness to maximize utility and thus theirsubjective risk perception strongly determines their behavior (Bauer et al., 2005). Thus, reducinguncertainty has been found to have a positive influence on consumers’ intention to adopt electronictransactional systems (Chen, 2008).H8: The higher the Perceived Risk will lead to a negative influence on behavioral intention to useMM. Transactional Cost: TC includes transaction price, registration fee, or cost of a new device if oneis needed to use the service. Consumers interviewed confirmed that transactional cost can influencetheir behaviour intention to use the MM transfer services. Given that the original TAM was developedin an organizational context, the transactional cost of using technology was not considered as arelevant variable since the consumer was not responsible for the payment of the technology.H9: Higher Transactional Cost will have negative influence on consumer behavioral intention to useMM Trialability: the degree to which an innovation may be experimented with on a limited basisbefore making an adoption (or rejection) decision (Agarwal and Prasad, 1997). Thus, the adoption ofMM transfer is more likely if the technology is demonstrated to the user or if it can be used on afree-at-first-use. Past research argue that earlier adopters of an innovation perceive trialability as moreimportant than do later adopters. More innovative individuals have no precedent to follow when theyadopt, whereas later adopters are surrounded by others who have already adopted the innovation. Also,our initial consumer interviews indicated that users will adopt MM transfer if given the chance to trialthe service for free.64 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011H10: The greater the trialability of MM transfers service, the higher the influence on users behaviouralintention to it.3.2 Research MethodologyThis study aims to predict the consumer behavior and intention to adopt Mobile Money Transferservices in Ghana by extending the TAM and DOI models with two extra constructs. The introductionof MMT services in Ghana has not enjoyed the successes experienced by other developing countrieslike Kenya and Philippines. A survey was developed for the data collection. The survey was conductedin Ghana. The data from the survey were tested using Structured Equation Model, and the unit ofanalysis was the prospective individual mobile money transfer customer in Ghana. In developing themodel, we reviewed existing literature extensively and then interviewed Mobile Money professionalsof telecom providers who have either launched or about to launch their products and a selection ofconsumers. Based on the results of the interviews we developed our survey instruments using amultiple-item, five-point Likert scale approach. The items in the survey were developed by adapting existing measures validated by otherresearchers in mobile banking and mobile payment environment, or by converting the definitions ofthe construct into a questionnaire format. Some of the items for the constructs; PU, PEOU PP and PRwere adapted from Chen (2008) and modified for mobile money transfer, others were created to suitthe Ghanaian environment. The TC items were captured using three items derived from Constantinides(2002) and real world experience. The items for Perceived Trust construct were adapted from Stewart(2003) and Pennington et al., (2003) and modified accordingly. Items for Trialability, RelativeAdvantage, Reliability, TC, and BI were created from their respective definitions. In total 32 items for10 variables were developed. The PU construct is measured using 3 items (PU1-3); the PEOU ismeasured by 4 items (PEOU1-4). For the determinants of PU, Relative Advantage is measured using 2items (RA1-2). PT is measured using 4 items (PT1-4) and its determinants, PP 4 items (PP1-4) andReliability 2 items (Reliability1-2). The PR construct is measured using 5 items (PR1-5), TC ismeasured using 4 items (TC1-4) and Trialability is measured using 3 items, (Trialability1-3) and theBehavioral Intention construct is measured using 2 items (BI1-2). The survey questionnaire consisted of four sections. Section A aimed at gathering informationrelating to respondent mobile phone usage. It was used to measure the respondent’s mobile phoneexperience, which was based on the sum of the various usage indicated. Section B was limited togathering information on the respondent’s usage of money transfer service in the past. Section C wasaimed at obtaining information on whether the respondent has used or intended to use mobile moneytransfer and what factors are likely to influence their adoption decision. The section is sub divided intothe various constructs with a total of 32 items ranging between 2 and 4 items per construct. Section Dwas aimed at gathering demographic information about respondent, including, gender, age, employmentstatus, education and income.Data was collected using a self administered questionnaire to the general public at malls and otherplaces. In total, 330 respondents were approached in the survey. A total of 302 accepted to participateand final 298 were collected. Since domestic money transfer is generally seen a one way transactionfrom the urban cities to the rural areas, responses were collected from the three main cities in Ghana;Accra, Kumasi and Takoradi. However, respondents were not distinguished by where they filled in thequestionnaire. The questionnaires were distributed by personally approaching the respondents on thestreet, at the mall, in their offices and at the universities and colleges and requested to participate in asocial research involving mobile money transfer. For the illiterate our team members translate thequestionnaire from English to Twi (a prime native language).4. Empirical ResultsBased on the two-step approach recommended by Anderson and Gerbing (1988), we first analyzed themeasurement model to test the reliability and validity of the survey instrument, and then analyzed thestructural model using AMOS version 18 to test our research hypotheses. The Structure EquationModel (SEM) is most useful when assessing the causal relationship between variables as well asverifying the compatibility of the model used.65 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20114.1 Descriptive StatisticsA total number of 288 respondents were used in the analysis (the data collected from 10 respondentshad missing information; hence we used 288 instead of 298). The demographic profiles of therespondents are described in what follows. The sample was made up of 65.2% male and 26.5% femalewith 85.7% below 50 years of age and a mean age of 30 years. With regard to education, the majoritywere at least university graduates or equivalent (about 67.3% including the postgraduates (Masters andDoctorates)). With regard to employment, company employees comprise the majority, at 44.3%,28.8% students both full time and part time whereas 15.6% were self-employed. To make it simplerfor the respondent, the local currency was used for the study. At the time of the study, $1 wasexchanged for 1.4 Ghana Cedis, approximately. Thus, about 43.5% of the respondents earn more than$300 per month. According to annual income and educational levels, the majority of the respondentsappear to belong to the lower middle class of the Ghanaian Society. The respondents were largely mobile phone users (97%) with 49.3% belonging to more than onenetwork provider. Over 60% of the respondent uses a combination of MTN and one of the fivenetwork providers currently operating in Ghana. However, respondents that use MTN only accountedfor 33% of the sample. This confirms MTN as the largest Mobile Network Provider in Ghana based onthis sample. With regard to the various uses of mobile phone, 35% of respondents use their mobilephone for receiving and making calls, SMS and listening to music. Only 15.2% of the respondents usetheir phones for only making and receiving calls. Other uses identified include internet (53%), SMS(87.5%), banking, game and music. Apart from the traditional usage of the phone, the respondentreport and phone for some value added services. The most popular form of money transfer identified was through bank transfer with 74% reportingto have used the bank for money transfer. Regarding knowledge of any MMT in Ghana, 85% of therespondents said yes with 93% answered to have heard of the MTN Mobile Money Transfer throughadvertisements. However, only 10% claimed to have used the service. Knowledge of the service wasnot reflective of its usage. The intention to use Mobile Money Transfer was found to be below averagewith 48.4% responding in the affirmative, 28.3% no and 23.3% unsure.4.2 Construct Reliability and Validity AnalysisCronbach alpha in SPSS version 16 was used to test the reliability of each of the multiple-itemconstructs that form the survey instrument. It is the most popularly used measure of internal consistency.As a rule of thumb, a reliability coefficient of 0.70 or higher is considered “acceptable” in social scienceresearch (Nunnelly, 1978). This meant that all but three constructs Reliability, Perceived Privacy andTransactional Cost did not meet the reliability test. The reliability of each construct is illustrated in Table1 below. However, the Perceived Privacy (PP) construct was considered acceptable for use because ofits closeness to 0.70 rule of thumb and Reliability and Transactional Cost (TC) were removed from themodel and were not used in further analysis. There was little or no consistency between the items usedfor these constructs. The data was subjected to exploratory factor analysis to establish convergent anddiscriminant validity of the proposed MMT uniqueness using Principal Component Analysis (PCA) asthe extraction method and Varimax rotation with Kaiser Normalisation as the rotation method. Tworounds of factor analysis were conducted. Initially, a ten-factor structure was suggested and the resultsshowed seven orthogonal factors with eigenvalues above 1.0 and three others very close to 1.0 (.983,.954, .923). A further factor analysis was conducted with only the seven contructs identified withcronbach alpha above .70 and seven factors with eigenvalues above 1.0 was generated. This analysiseliminated Perceived Privacy (PP) construct as well. The seven factors were maintained for the modeland further analysis. The Kaiser-Meyer-Olkin measure of sampling adequacy was found to be 0.857.Thus, the application of factor analysis was deemed appropriate. The factors selected explain 72% of thevariances of the variables and a commonality ranging between .853 and .555. Items for PR, PT, RA,Trialability, and BI loaded at greater than 0.4 on their respective factors and are thus deemed valid (as inTan and Teo, 2000). However, PU loaded on two factors above .40. Correlation analysis reveals thatthese are still distinct constructs, as the coefficient between them is only 0.30. This finding does reveal,66 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011however, that PU and PEOU are closely linked in the minds of respondents. Table 2 illustrates thevalidity of the constructs and their respective factor loading.Table 1: Reliability of the model constructs (n=288)Construct Cronbach Mean SD # of Construct Cronbach Mean SD # of alpha Items alpha ItemsPU .904 10.919 2.725 3 Trialability .844 11.860 2.406 3PEOU .907 15.131 3.254 4 Reliability .503 8.150 1.515 2PR .863 15.390 4.832 5 Relative .852 7.244 1.866 2 AdvantagePT .788 13.696 3.191 4 Perceived .675 11.268 2.316 3 PrivacyTC .365 14.320 2.610 4 Behavioral .807 7.495 1.643 2 Intention67 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Table 2: Rotated Component Matrix Component Perceived Perceived Perceived Perceived Relative Behavioral Ease of Use Risk Trust Trialability Usefulness Advantage IntentionsPU1 .641PU2 .695PU3 .749PEOU1 .775PEOU2 .727PEOU3 .791PEOU4 .808Risk1 .855Risk2 .854Risk3 .854Risk4 .872Risk5 .511Trust1 .684Trust2 .724Trust3 .829Trust4 .680RA1 .791RA2 .817Trial1 .813Trial2 .842Trial3 .868BI1 .752BI2 .776Extraction Method: Principal Component Analysis. Rotation Method: Varimax withKaiser Normalization.4.3 Structural Model Test68 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011SPSS Amos 18 was used to generate the common model-fit indices. Structural modeling evaluateswhether the data fit a theoretical model. The following common model-fit measures were used toestimate the measurement model fit; chi-square/degree of freedom (χ2/df), the comparative fit index(CFI), root mean square error of approximation (RMSEA), the normed fit index (NFI), Incremental FitIndex (IFI), and the Tucker Lewis coefficient (TLI). Table 4 shows the estimates from AMOS structuralmodeling. According to Gerbing and Anderson (1992), the criteria for an acceptable model are asfollows: RMSEA of 0.08 or lower; CFI of 0.90 or higher; NFI of 0.90 or higher. The fit between the dataand the proposed measurement model can be tested with a chi-square goodness-to-fit (GFI) test wherethe probability is greater than or equal to 0.9 indicates a good fit (Hu and Bentler, 1999). The GFI of thisstudy was 0.87 close to the recommended 0.90 or greater. Although the model does not show a perfect fitin the goodness-to-fit index used within the sample size of 288, the other measures fitted satisfactorily;CFI=0.92, TLI=0.90, IFI=0.92 and NFI=0.87 with χ2/df < 3 at 2.51 and the RMSEA=0.07 (Bagozziand Yi, 1988).Table 3: Fit IndicesFit Indices Results Recommended Valueschi-square/degree of freedom (χ2/d.f.) 2.51 <5 (Bagozzi and Yi, 1988)comparative fit index (CFI) .0.92 Approaches 1root mean square error of approximation (RMSEA) 0.07 >0.06 (Joreskog and Sorbom, 1996)normed fit index (NFI), 0.87Tucker Lewis coefficient (TLI) 0.90 Approaches 1(Byrne, 2001)Incremental Fit Index (IFI) 0.92 Approaches 14.4 Hypothesis AnalysisGiven the satisfactory fit of the model, the estimated path coefficients of the structural model wasevaluated to test the hypothesis identified earlier (see table 4). Multicollinearity was ruled out becausethe correlations between independent variables are all less than 0.8 as shown in table 6 below. Note thatafter the reliability test, the number of hypothesis tested was reduced to 7 because Transactional cost,Privacy and Reliability was eliminated from further analysis. Based on the results from the Amos 18, theresults are presented as predicated by the conceptual model path in Figure 1.69 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Table 4: Estimated path coefficients of the structural model Results of Estimate S.E. C.R. P Hypothesis testing PU <--- RA 0.22 0.05 5.02 0.01 Supported PU <--- PEOU 0.76 0.07 11.08 0.01 Supported BI <--- PU 0.27 0.08 2.75 0.01 Supported BI <--- PEOU 0.30 0.1 3.09 0.00 Supported BI <--- Trial 0.17 0.07 2.51 0.01 Supported BI <--- Risk -0.02 0.04 -0.39 0.69 Not Supported BI <--- Trust 0.19 0.07 2.75 0.01 SupportedS.E. is an estimate of the standard error of the covariance.C.R. is the critical ratio obtained by dividing the covariance estimate by its standard error.In support of H1, we found a significant and positive relationship between perceived usefulness ofmobile money transfer and consumers’ intention to use the service (0.27 p<0.01). This confirms theoriginal TAM relationship between perceived usefulness and intention to adopt new technology. Alsothe path coefficient of 0.22 (p<0.01) points to a strong positive relationship between RelativeAdvantage and Perceived Usefulness. Hence, H2 is also confirmed. The path coefficient betweenPerceived Ease of Use and Perceived Usefulness was the highest at 0.76 (p<0.01) indicating a strongrelationship between the two factors. Thus H3 is supported. In addition the relationship proposed inH4 is also supported; that is, perceived ease of use also predicts users’ intention to use mobile moneytransfer services (0.30 p< 0.01). Further, the structural link between Trust and BI and also Trial and BIwere both found to be significant with path coefficient of 0.19 and 0.17 respectively at a significantlevel of 1%. Thus, consumers’ trust in Mobile Money Transfer and their ability to trial the product willsignificantly affects their intention to use the service. Also, it is worth noting that H8: The higher thePerceived Risk will lead to a negative influence on behavioral intention to use MM; is somewhatsupported by the negative sign of the path coefficient (-0.2), but not significant. This finding iscontrary to the results earlier studies where perceived risk significantly influences behaviouralintention.70 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 0.67 0.22 RA PU 0.27 0.76 0.51 PEOU 0.30 0. 84 -0.20 BI PR 0.62 0.19 PT 0.17 0.53 Trail P >0.05 P < 0.05 Figure 4: Standardized path coefficients the Research Model71 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Table 5: Correlations matrix of the variables Trust Risk Trial RA PEOU PU BI Trust 1 Risk -.140* 1 * Trial .350** .083 1 RA .661** -.109* .399** 1 PEO -.153* ** .629 .386** .587** 1 * U PU -.192* ** .582 .336** .626** .835** 1 * BI .634** -.133* .460** .596** .742** .714** 1 **. Correlation is significant at the 0.01 level (1-tailed). *. Correlation is significant at the 0.05 level (1-tailed).5. Discussion of Empirical ResultsThe general feeling of the sample about mobile money can be summed up as “I have heard about it butnot used it”. As indicated above, 93% of the respondents reported to have heard about mobile moneythrough advertisements. As at the time of the study, MTN’s mobile money and Airtel’s ZAP were theonly two mobile money transfer services available in Ghana. MTN had launched its mobile moneytransfer with huge advertisement campaign (including billboards, radio, TV commercials) both in thecities and rural areas. Despite all the promotion and direct publicity, the adoption of the service was verylow with only 10% claiming to have used the service. More than 18months after MTN’s launch andthere is still no signs of significant uptake of the service. It was therefore necessary to model the factorsthat predict the Ghanaian consumers’ adoption of the service. This study aims to predict the intention to adopt mobile money transfer service in a conveniencesample of Ghanaian citizens, who were asked to complete a questionnaire that was based on relevantadoption research and theories. To the best of our knowledge, this is one of the first studies toempirically test consumers’ intention to use mobile money transfer. As an extension to TAM, weincluded items for Perceived Risk, Perceived Trust, Trialability, and Transactional Cost as key72 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011determinants to consumers’ intention to use mobile money transfer services. Furthermore, we suggestedthat Perceived Privacy and Reliability are antecedents to Trust whereas Relative Advantage and PEOUaffect PU. However, Perceived Privacy, Reliability and Transactional Cost did not pass the validity andreliability test and were excluded from the model. In general the structural equation modeling with AMOS 18 in this study supports the results ofprevious extended TAM research (e.g., Wang and Benbasat, 2005) with perceived ease of use (β 0.30),perceived usefulness (β 0.27), Perceived Risk (β -0.20) and Perceived Trust (β 0.19) as keydeterminants of behavioral intention. Perceived usefulness is directly affected by perceived ease of use(β 0.76) and relative advantage (β 0.22). Perceived ease of use is the most significant construct onperceived usefulness and affects behavioral intentions both directly and indirectly through perceivedusefulness. This is consistent with previous research (Gu et al., 2009). The results therefore suggest thatmobile money transfer providers should consider how to make the use of the services easily. Also, thetrialability construct showed a significant effect on Behavioral intentions (β 0.17) and suggests thatthere should be opportunities for customers to trial and test the mobile money transfer service and evensee demonstrations of how it works. This would raise awareness, and give people a greaterunderstanding of the technology. Another point of interest in this study was how perceived risk and perceived trust affects behavioralintention in mobile money transfer services. The results show that perceived trust (β 0.19) hassignificant effect on consumers’ behavioral intentions. We were expecting an even higher pathcoefficient for perceived trust because of the nature of mobile money transfer service. From thedescriptive statistics, most of the respondents use some form of money transfer regularly with most of itbeing through banks or friends and family. The trust level for existing money transfer services seem tobe quite significant. Furthermore, from a theoretical perspective, it seemed reasonable that a higherperceived risk in MMT service will lead to a lower rate of intention to use. Furthermore, perceived riskwas believed to be a predictor and barrier to Mobile money transfer services, and expected to negativelyinfluence consumer’s behavioral intent. This was supported not supported by the study (β=-0.20,p>0.05), as the p-value of 0.69 was not significant. Since majority of the respondent and the populace ofGhana had no prior experience of electronic transactions we expected a significant negative relationshipbetween perceived risk and behavioral intentions? The findings of our initial interviews before thesurvey did not reflect in the actual survey results. The Antecedents of Trust, Privacy and Reliability andalso risk were perceived to be the most important determinants of consumers’ intention to use mobilemoney transfer. How can we rely on network providers to transfer our money when their network isalways down? What happens to our money when the network is down for a day or two? And who isultimately responsible, the merchant or the network provider, were some of the questions that was askedduring those interviews. This study intended to be a valuable source for further empirical and conceptual research onmobile money transfer services. Besides its general contribution of identifying, conceptualizing andoperationalizing the key factors that predicts its acceptance and adoption in the emerging markets, theresults can be used for further investigation into the success and/or failure of other mobile money relatedservices. It provides further understanding into the attitude of the Ghanaian consumer towards mobiledata services in general and the use of mobile phones for financial services specifically. A furtherqualitative study into why the update in Ghana has not been overly successful with specific emphasis onearly adopters may be necessary in the future. Also, the developmental impact of mobile money transferin the developing countries will be significant for further development of this service. Although our study provides some interesting insights into factors affecting the intention to usemobile money transfer, it has some limitations. First, the exposure to mobile money transfer in Ghana isstill at its infant stages, and we had to explain to most respondents what it is. Insufficient understandingof mobile money transfer and its applications does affect consumers’ intention to use the service. Also anumber of our respondents were illiterate and the translation of the questionnaire may affect theirunderstanding and interpretation. Finally, the survey was conducted in the main cities of Ghana and maynot be a perfect representation of the entire population.73 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20116. Concluding remarksThis study sought to model the antecedents of consumer behavior towards the adoption of MobileMoney Transfer in Ghana. Since the introduction of mobile money by MTN in Ghana, other telecomnetwork providers have been investigating the possible impact of this MTN new service to theircustomer base in Ghana. For example Airtel the most recent provider in the country has just launchedtheir version of mobile money called ZAP. The provisions of both services are quite similar in principle.The impact of mobile money in the first few years of introduction in Kenya has raised the expectationsof network providers towards similar introductions in the emerging markets.The conclusions from the study are as follows. In support of TAM, Perceived Ease of Use and perceivedusefulness were found to be the most significant determinants of Behavioural Intention to use mobilemoney transfer in Ghana. Perceived Trust, Trialability and Perceived Risk were also found tosignificantly affect Behavioural Intention. As part of financial services, the adoption of mobile moneytransfer is dependent on consumers’ perception on Trust and Risk. Thus, the findings support thetraditional view on the effect of risk and trust on usage of financial services. Furthermore, the need forpotential consumers to trial the service before adoption was significantly confirmed.ReferencesAgarwal, R., and Prasad, J. (1997). The role of innovation characteristics and perceived voluntarinessin the acceptance of information technologies. Decision Sciences, 28(3), 557 – 582.Ajzen, I., (1985). From intentions to actions: A theory of planned behaviour, in action control: fromcognitions to behaviour, eds. J. Kuhland and J. Beckman, Heidelberg: Springer-Verlag, 11 – 39.Anderson, J.G and Gerbing, D.W. (1988). Structural Equation Modeling in Practice; a review two-stepapproach. Psychological bulletin, 103, 411- 423.Bagozzi, R. P., and Yi. Y. (1988). On the evaluation of structural equation models. Journal of theAcademy of Marketing Science, 16(1), 74 -94.Bauer, H. H., Barnes, S. J., Reichardt, T., and Neumann, M. M. (2005). Driving consumer acceptanceof mobile marketing a theoretical framework and empirical study. Journal of Electronic CommerceResearch , 6(3), 181 - 192.Bouwman, H., Carlsson, C., Molina-Castillo, F. J., and Walden, P. (2007). Barriers and drivers in theadoption of current and future mobile services in Finland.Byrne, B. M. (2001). Structural equation modelling with AMOS: Basic concepts, applications andprogramming. Lawrence Erlbaum Associates, Mahwah, New Jersey.Carlsson, C., Carlsson, J., Hyvönen, K., Puhakainen, J., and Walden, P. (2006). Adoption of MobileDevices/Services – Searching for Answers with the UTAUT. Proceedings of the 39th Hawaii74 | P a g ewww.iiste.org
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    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 The Likert Organisational Profile: Methodological Analysis and Test of System 4T in Tourist Destinations Mathew C.D (Corresponding author) School of Management SASTRA University, India. Tel:919400352781, Email: mathewerattupetta@yahoo.co.in R.Renganathan Dept of Management Studies, SASTRA University, India Email:renganathanss@yahoo.com Kurian Joseph Dept of Management Studies, SASTRA University, India Email:brincepmathew@gmail.comReceived: 2011-10-10Accepted: 2011-10-22Published:2011-11-04AbstractIn the working paper (Butterfield & Farris 1974), which was done at Massachusetts Institute of Technology,20 item Likert Organisational Profile (LOP) was administered twice to 256 employees in 13 Braziliandevelopment banks. Actual and ideal bank profiles were similar to those found in U.S and elsewhere. In thesaid working paper, test-retest reliability of the LOP as a whole was moderate. Here after the pilot studySystem1-4T Rensis Likert Scale has been revalidated with 17 items and the test-retest reliability has beentested with Karl Pearsons Coefficient of Correlation over two time series with stronger correlation coefficientof .88. In the organisational climate survey, median averages have been taken in order to measure theorganisational health. It has been found that the organisational health at tourist destinations improved afterthe OD interventions, the said fact is doubly checked with direct employee feedback. So it is corroborated78 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011with valid data that System 1-4T is a reliable tool to apply in organisational health and hence to rectifyorganisational pathologies.Key Words: LOP, Test-retest reliability, Organisational Health, Median Average1 Introduction1.1 Scope and CoverageThough the whole Kerala State in the Southern part of India is blessed with unmatched natural diversity thatprovides immense scope for eco-tourism, there are certain areas or destinations which are already developedas far as eco-tourism is concerned. Development of tourism in these areas has a wide variety of impacts on theecology of that locality and on the overall contribution towards tourism in the state. Naturally development ofcertain areas would help similar areas or destinations to develop their tourism potential in eco-friendly way.The impact of the tourism development is directly felt by the people who are directly or indirectly involved intourism business. Therefore the universe of the present study is limited to those areas where eco-tourism isdeveloped and to those persons who are directly connected with eco-tourism business. This study isexplorative in nature as a hypothesis testing experimental one and the first of its kind in Kerala. Therefore thestudy has been conducted mainly to explore the positive impacts of Organisation Development in theeco-tourism developed areas. Eventhough there are 56 locations identified by Eco-tourism Directorate,according to the statistics, Thenmala and Periyar Tiger Reserve rank best in terms of tourist arrivals. So theyhave been selected for the study.1.2 Thenmala1.2.1 Location MapLocated at about 72kms from Thiruvananthapuram, the State Capital of Kerala, Gods Own Country, andthe southern most State of India. Thenmala is a small village at the foothills of Western Ghats andpredominantly a forest area. The famous Shenduruney Wildlife Sanctuary is the most importanteco-tourism resource of Thenmala Eco-tourism. This Wildlife Sanctuary is of about 100 sq. km. andharbours large varieties of flora and fauna (Thenmala Eco-tourism Promotion Society 2007).1.3 Periyar Tiger ReserveLocated at about 172kms from Thiruvananthapuram, the State Capital of Kerala, Gods Own Country, andthe southern most State of India. Periyar Tiger Reserve is a Wild Life Sanctuary at the foothills of WesternGhats and predominantly a forest area. According to the World Bank sponsored Eco DevelopmentCommittee (EDC), tribal people act as tourist guides in connection with various eco-tourism activities(Periyar Tiger Reserve 2007).2. Collection of DataThe data has been collected by conducting interviews with the samples selected for the study. Multiple79 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011choice questions, open-end questions, rankings by the respondents and a five point scale developed by theresearcher especially for this in conformity with statistical methods and principles are used wherevernecessary. 17 point System 1-4T Likert Scale is used in order to assess the organisational climate surveyat different stages of OD process. Separate questionnaires were used to measure social status index andenvironmental awareness at different stages. Questionnaires have been corrected and modified based onthe findings of pilot study. In order to test the reliability of the 20-point Rensis-Likert System 1-4T Scale,‘test-retest reliability’ has been done to find out the real change as a function of time. Time 1 actul LOPscores were compared against Time 2 actual LOP scores. During the pre-test it has been a found a perfectcorrelation of .88 between the two time series. So it can be concluded that Rensis-Likert System 1-4TScale is reliable in this context.From the table it can be inferred that there is a strong correlation between the scores at two time periods. Itshows that the tool for assessing organisational climate survey is reliable.3. Systems 1-4T at Thenmala and PTRSurvey feedback is based on a conceptual scheme and an integrated package of measurements that RensisLikert and colleagues called Systems 1-4 (and later 1-4T). This management typology is based largely onmeasures pertaining to leadership, organizational climate and job satisfaction.In his earlier writings, Likert called System 1 “exploitive authoritative”, System 2 “benevolentauthoritative”, System 3 “consultative” and System 4 “participative group”. In later works only the Systems1-4 terms were used, probably because of the heavily evaluative connotations of the other systems. Somewould argue that the terminology of some of the scales is also too value laden. In the Likert model, eachtype of organisation (Systems 1-4) is seen as having internally consistent characteristics of whichorganizational climate is a major part.Organizational climate survey at the beginning and at the end of the third phase has been executedexclusive for local guides. It has been found a significant improvement in connection with organisationalclimate. It is an indicator of Organisation Development outcomes. Both in Thenmala as well as in PeriyarTiger Reserve all the guides have been exposed to OD process. Obviously it has made a positive impact inthese two destinations. While numerically calculating the various aspects, the median average value at PTRwas 12 at the beginning of the third phase. At the end of the third phase the same average has been gone upto 16. In connection with Thenmala the same median average was 12.5 at the beginning of the third phase.At the end of the third phase the same median average has been gone up to 16.5. Eventhough OD is a longterm effort it can boost up the organisational health. In the Likert model, each type of organisation (Systems1-4) is seen as having internally consistent characteristics of which organisational climate is a major part.4. Degree of Success in Achieving Tourist SatisfactionRegarding the degree of success in achieving the tourist satisfaction by the local guides, the pattern ofanswers has been as follows:80 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011The data show that both the destinations have only a poor estimate of their success record. This is asituation that needs to be changed. The forest officials as well as others involved and the tourists should beable to feel that the destinations are having a satisfactory record of performance.5. Constraints to Achievement of Tourist SatisfactionRegarding the ten constraints identified in the questionnaire, the respondents expressed their priorities asfollows.Role ambiguity among officials gets the maximum scoring (19/20) as the first priority constraint followedby lack of commitment among officials (15/20) as second priority item. Lack of political support comesthird 14/20) at PTR.Thenmala: The comparative position is as followsIn Thenmala role ambiguity among officials gets the maximum scoring (18/20) as the first priorityconstraint followed by lack of political support comes second (14/20) and lack of commitment amongofficials (14/20) as third priority item. It has been decided to conduct role efficacy lab exercise for seniorofficials in both the destinations.6. Problems in GuidingThe comparative position is as follows:Lack of training and development (19/20) and lack of problem solving ability (18/20) rank first and secondamong the problems of local guides at PTR.The comparative position is as follows:Lack of problem solving ability and lack of training and development ranks first and second respectivelywhere as in Thenmala lack of training and development ranks first.This led to the following action steps, i.e. Training Interventions.1. Process Consultation2. T-Group, L Group or Sensitivity Training3. Life and Career planning intervention4. Transactional Analysis as an Intervention5. Reengineering6. Conflict Resolution81 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20117. Role Analysis Technique8. Role Negotiation9. Management by Objectives10. Quality of Work Life Programmes7. ANOVA Test for Differentiating the Effects of OD Interventions.ANOVA Test has been conducted in order to find out if there is any significant difference in connectionwith the effects of different OD interventions. After the ten OD interventions in Thenmala and PTR,behavioural science test has been conducted. The total score was thirty. The relevant scores of differentguide’s along with their OD Interventions are given in the ANOVA table. Here the researcher had tried tofind out whether different interventions have produced same results or different results. It has beentested whether the effects of various interventions are equal.Null hypothesis: Scores of tourist guides after various interventions are equal.Alternative: Scores of tourist guides are not equal.Conclusion: The null hypothesis does not stand. That is the effects of various interventions are not equal.The results are tabulated in ANOVA table.Coefficient of Variance has been taken in order to measure the consistency of various OrganisationDevelopment (OD) Interventions. The very first intervention in the history of OD- Sensitivity Training isthe most consistent one. While Reengineering, QWL and Sensitivity Training showed greater consistency,Process Consultation, TA, Role Analysis and MBO showed less consistency.8. Fresh Organisational Climate Survey at The End of OD Interventions and Future DecisionsOrganisational climate survey at the end of the third phase has been executed. A significant improvementhas been found in connection with organisational climate. It is an indicator of Organisation Developmentoutcomes. Both in Thenmala as well as in Periyar Tiger Reserve all the guides have been exposed to ODprocess. Obviously it has made a positive impact in these two destinations. While numerically calculatingthe various aspects the median averages at PTR and Thenmala were 16 and 16.5 respectively at the end ofthe third phase. At the end of the fourth phase the same median averages have been gone up to 18 and 18.5at PTR and Thenmala respectively. However OD interventions solely contributed change in theEco-tourism destination or not, is not easily gaugable. Eventhough OD is a long term effort it can boost upthe organisational health in the shorter run also. Eventhough employees like System-4 organisations, theirimmediate supervisors and top management do not support much System-4 organisations because thepower enjoyed by the supervisors is much less in System-4.9. Feedback from Participants of OD Intervention Programme82 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Feed back has been taken from local guides in order to measure the impact of OD interventions and henceto corroborate the results of System 1-4T, it has been found that results are consistent and ultimately resultsgot doubly checked. Four dimensional feed back in connection with the conformity towards ODprogramme has been administered and it has been found that participants are highly satisfied with the ODprogramme. The results shows that OD programme as well as OD interventions particularly producedresults in capacity building of local tourist guides.10. ConclusionThe organisational climate survey at different stages shows that organisational health has been improvedthrough the application of OD interventions. Moreover a positive vibe has been generated in theorganisation. It is quite evident from the survey feedback which was carried out at the end of thebehavioural science interventions. Rensis Likert’s Organisational Climate Survey Tool is an effectivediagnostic instrument to measure organisational health at different life cycles of an organisation and theresults could be cross checked through even informal employee feedback.REFERENCES Butterfield, D. Anthony & Farris, George F 1972, The likert organisational profile:Methodological analysis and test of system 4 theory in Brazil ,July, D-space of MIT,viewed 30 January2007,<http://www.dspacemit.edu/2007/January/BB007_2007.htm>. Periyar Tiger Reserve Location 2007, Ecotourism Activities, Periyar Tiger ReserveLocation,viewedFebruary2007,<http://www.http://periyartigerreserve.org/location=Ecotourism+Activities>. Thenmala Eco-tourism Promotion Society 2007, Location Map, ThenmalaEco-tourismPromotionSociety,viewed7February2007,<http://www.thenmalaecotourism.com/locationmap>. Scores of the tourist guides at two time periodsTable 1 Time 1 TIME 1 13 12 13 10 12 14 13 10 11 9 8 9 8 7 9 12 13 11 7 8Table 2 Time 283 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 TIME 2 12 13 12 8 11 13 12 9 12 10 8 10 9 8 8 11 14 11 8 7 Test-Retest reliability measured by Pearson’s coefficient of correlation as regards withRensis-Likert System 1-4T ScaleTable 3. Periyar Tiger Reserve Table 4. Thenmala 1. Very Much 0 1. Very Much 0 2. Too great 3 2. Too great extent 3 extent 3. Some what 23 3. Some what 13 4. Very little 1 4. Very little 1 5 No Answer 3 5 No Answer 3Table- 5. (contd. on next page)Organizational variable System System System System 1 2 3 4 0-------5 --------10 -------15 ------20 LeadershipHow much Virtually none Some A greatconfidence and Substantial dealtrust is shown in84 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011subordinates AmountHow free do they Not very free Somewhat free Quite Veryfeel to talk to free freesuperiors aboutjobHow often are Seldom Sometimes Often Verysubordinate’s frequentlyideas sought andusedconstructively MotivationIs predominant use 1, 2,3, 4,Some3 4,some 3 and 5 5,4 on group-setmade of 1 fear, 2 occasionally4 goalsthreats, 3punishment 4rewards, 5involvement basedWhere is Mostly at top Top and middle Fairly general At all levelsresponsibility feltfor achievingorganization’sGoalsHow much Very little Relatively little Moderate Great dealcooperative teamwork exists CommunicationHow is download With suspicion Possibly with With caution With a receptivecommunication suspicion mindacceptedHow accurate is usually often inaccurate often accurate Almost accurateupward inaccurateCommunicationHow well do Not very well Rather well Quite well Very wellsuperiors knowproblems faced by85 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011subordinates DecisionsAt what level are Mostly at top Policy at top Broad policy at Throughoutdecisions made some delegation top more delegationAre subordinates Almost never Occasionally Generally Fullyinvolved indecisions relatedto their workinvolvedWhat does Not very much Relatively little Some Substantialdecision-making contribution contributionprocess contributeto motivation GoalsHow are Orders, After discussion By group actionorganizational Orders issued some comments by ordersgoals established invitedHow much covert Strong resistance Moderate Some resistance Little or noneresistance to goals resistance at timesis present ControlHow concentrated Very highly at Quite highly at Moderate Widelyare review and top top delegationcontrol functionssharedIs there an No-same asinformal Yes Usually Sometimes formalorganizationresisting theformal one goalsWhat are cost, Policing Reward Reward Self-guidanceproductivity and punishment punishment some-self problem-solvingother control data guidanceused for86 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No.7, 2011 Table 6. Comparative Positions at ThenmalaSL NO. Problems/Constraints Points Percentage 1 Lack of commitment among forest officials 191 95.5 2 Lack of political support 194 97 3 Lack of leadership and guidance from higher 188 94 authorities 4 Lack of proper planning by the forest department 189 94.5 5 Lack of training and Development of Officials 178 89 6 Role ambiguity among Officials 198 99 7 Lack of proper systems and procedures 20 10 8 Lack of support from the public 30 15 9 Role of corrupt officials 20 10 10 Role of corrupt politicians 20 10 Table 7. Comparative Position at Thenmala in Connection with Problems in Guiding SL NO. Problems/Constraints Points Percentage 1 Lack of proper facilities in guiding 188 94 2 Lack of communications from above 186 93 3 Lack of leadership and guidance from 189 94.5 higher authorities 4 Lack of training and development at all 199 99.5 levels 5 Lack of problem solving ability among 198 99 guides 6 Lack of systems and procedures for 20 10 effectiveness 7 Lack of supervision 30 15 8 Lack of support from higher authorities 50 25 9 Lack of team work among officials 30 15 10 Lack of work motivation among guides 40 20 Table 8. Comparative Position at PTR SL NO. Problems/Constraints Points Percentage 1 Lack of commitment among forest 275 91.66 officials 2 Lack of political support 274 91.33 3 Lack of leadership and guidance from 258 86 higher authorities 87 | P a g e www.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 4 Lack of proper planning by the forest 269 89.66 department 5 Lack of training and Development of 248 82.66 Officials 6 Role ambiguity among Officials 279 93 7 Lack of proper systems and procedures 40 13.33 8 Lack of support from the public 60 20 9 Role of corrupt officials 40 13.33 1 Role of corrupt politicians 20 6.66 0Table 9. Comparative Position at PTRSL NO. Problems/Constraints Points Percentage 1 Lack of proper facilities in guiding 198 66 2 Lack of communications from above 206 68.66 3 Lack of leadership and guidance from 204 68 higher authorities 4 Lack of training and development at all 209 69.66 levels 5 Lack of problem solving ability among 228 76 guides 6 Lack of systems and procedures for 40 13.33 effectiveness 7 Lack of supervision 60 20 8 Lack of support from higher authorities 60 20 9 Lack of team work among officials 40 13.33 10 Lack of work motivation among guides 50 16.6688 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Table 10.Scores of Different GuidesProcess Consultation 1 1 1 2 1 1 5 8 9 2 1 5TA 1 1 2 1 2 1 1 8 9 4 6 2 5 6Career Life Planning 1 9Role Analysis 1 2 1 1 2 1 8 4 9 6 2 5Sensitivity Training 2 2 2 2 2 2 5 3 7 9 6 2Reengineering 2 2 2 2 2 2 0 4 3 4 6 7Quality of Work Life 2 2 2 2 1 2 2 2 2 2 8 7 2 3 9 2 3 6 7 5MBO 1 2 1 2 2 7 1 8 7 2Role Negotiation 2 2Conflict Resolution 2 2 3 4Table 11. Ranking Different InterventionsInterventions Mean Standard deviation Coefficient of VarianceProcess Consultation 16.67 3.83 22.98TA 18.57 3.59 19.33Role Analysis 19.00 3.46 18.21Sensitivity Training 25.33 2.58 10.18Reengineering 24.00 2.45 10.2089 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011Quality of Work Life 24.20 2.86 11.82 MBO 21.00 3.94 18.76Table 12. Feedback from Participants of OD Programme SA A N D SDHelped in Improving 32 18 0 0 0Communication Skills 64% 36% 0 0 0Helped in Improving Self 40 10 0 0 0Confidence 80% 20% 0 0 0Feedback Process has been 50 0 0 0 0improved 100% 0 0 0 0Helped in Developing Positive 45 5 0 0 0Attitude 90% 10% 0 0 0Improved Problem Solving 40 10 0 0 0Ability 80% 20% 0 0 0 35 15 0 0 0Improved Creativity 70% 30% 0 0 0Team Building has been 32 18 0 0 0Improved 64% 36% 0 0 0Time Management has been 25 25 0 0 0Improved 50% 50% 0 0 0Self Management has been 30 20 0 0 0Improved 60% 40% 0 0 0 SA- Strongly Agree, A- Agree, N-Neutral, D-Disagree, SD- Strongly Disagree 14.00 14.00 13.00 13.00 12.00 12.00 11.00 11.00 10.00 10.00 9.00 9.00 8.00 8.00 7.00 7.00 time1 time2Fig. 1. Box plot for normality testing90 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 An Analysis of Working Conditions and Impact of Work on Child Labor Nengroo Aasif Hussain Post Graduate Department of Economics, University of Kashmir. Email asifnengroo.ku@gmail.com Bhat Arshad Hussain Post Graduate Department of Economics, University of Kashmir. Email bhatarshad09@gmail.com W. Mohammad Yaseen Post Graduate Department of Economics, University of Kashmir. Email mohdyaseen7@gmail.comReceived: 2011-10-24Accepted: 2011-10-29Published:2011-11-04AbstractThe present paper is an attempt to analyze the terms of employment and working conditions of the child workersin the carpet weaving industry. Employer’s consideration to employ child labor, area from where child workersare recruited and surety for employment after training is also included. In addition to the terms of work likemonthly wages, hours of work, rest period, provision of leave, holidays etc. The data on the working conditionsand the impact of the work on health, social behavior of the child labor, physical and welfare facilities have alsobeen discussed in this paper. An attempt has been made to highlight the nature of supervision, grievance handling,job satisfaction and other allied aspects related with the work life of the child workers. The data has beencollected from 162 child labors, 82 parents and 50 employers with the help interview schedules. Our analysisreveals that the conditions of child workers who had been working in their own family carpet weaving units wereslightly better in comparison to the employed ones. By and large, employers preferred children from lower castesat cheaper rates. Children usually work 6 to 8 hours per day. Half of the child labors were earning ` 500 to `700 per month and the rest were earning below ` 500 per month.Key words: working conditions, health, behavior, employers, parents, wages, carpet weaving.1. IntroductionThe terms of employment and working conditions are two important aspects which determine the employee -employer relationship at workplace. These aspects have important bearing on the mental state of mind of workersand their productivity. They further pave the way of personal satisfaction of the workers in terms of wages,conditions of employment, the availability of human and conduce conditions at work places. The terms ofemployment indicates various elements such as workers earning in the form of wages, working hours, leaveholydays, medical benefits, housing etc. It also indicates other welfare and social security components linkedwith the employment .While the terms of work helps the workers to meet their personal and family needs, betterworking conditions help them to work effectively and efficiently. It is a well established fact that environment is91 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011one of the two determinants of personality development of an individual. The work place equipped with properand adequate facilities not only helps in shaping the social behavior of workers but also in determining theworking norms as well as employee employer relationships. Of late, it has been realized that conducive workingconditions have a greater impact on various aspects of the workers life. Uncongenial, undesirable and poorworking conditions coerce the workers to keep away from the work places and result in disenchantment withwork giving birth to problems like absenteeism , boredom , monotony fatigue , accidents , disobedience ,occupational disease, ill health poor quality of work , non harmonious employer- employee relations anddisturbances at the work place. It includes a wide variety of things and can be divided into two categories that arephysical conditions and social conditions. Physical working conditions can be enlisted as: (1) Nature of workitself in terms of fatigue monotony and burden. (2) Safety measures. (3) Lighting. (4) Temperature andventilation and other measures for industrial health and hygiene supervision, communication, bargaining tradeunionism etc are the determinants of industrial relations or employee -employer relationships which may becalled as social conditions . Various items enlisted above as terms of work and working conditions have beenregulated through the statutory provisions under different state and central legislations ,but the scope of these actsare limited to the organized sectors only . It is a matter of grave concern that conditions of work in theunorganized sectors like carpet industry and other small scale industry norms are still decided by the employersin an arbitrary manner and working conditions are so horrible and shocking that it becomes difficult to believethat workers can work in such conditions. (Singh 1990)The present paper deals with the terms of employment and working conditions of the child workers in the carpetweaving industry. Employer’s consideration to employ child labor, area from where child workers are recruitedand surety for employment after training is also included. In addition to the terms of work like monthly wages,hours of work, rest period, provision of leave, holidays etc. The data on the working conditions and the impact ofthe work on health, social behavior of the child labor, physical and welfare facilities have also been discussed inthis paper. An attempt has been made to highlight the nature of supervision, grievance handling, job satisfactionand other allied aspects related with the work life of the child workers.2. ObjectivesThe specific objectives of the present study are:  To study the terms of employment and working conditions of child labors.  To analyze the level of earnings of child labor in the study area.  To study the impact of work on the behavior of child.  To analyze the impact of work on the health of child.3. MethodologyIn the present study, multistage sampling has been used. In the first stage Qoimoh block was selectedbecause of concentration of more carpet weaving units, employment of large number of children in thecarpet weaving industry and easy accessibility. In the second stage it was decided to take the sample of 100households from five villages (20% from each) which have higher concentration of child labor and wherethere is evidence of large scale carpet weaving at the village level. Hence with the help of key persons(village elders) a sample of five villages via Brazloo, Bachroo, Hum-Shale- Bug, Tangan and Badroo wereselected in the present study. In the third stage a list of carpet weaving units/households from selectedvillages was prepared with the help of village leaders and others having knowledge about carpet weavingunits in the village. Only those households were interviewed were there was at least one child in the agegroup of 6-14 years employed in the carpet weaving. Thus a sample of 162 child labors was taken for thepresent study. As per objectives of the study, besides child labors, information has been collected from 82parents and 50 employers with the help of interview schedules as well.In the various tables and figures presented and analyzed in this paper , where respondents gave more than tworesponses, only first two responses were taken for analysis purposes. It was done because psychologically thefirst two responses are considered to be more important as these are natural and respondent mentions them beforeother responses without any prompting or efforts.92 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20114. Discussion and analysis4.1 Consideration in Employing ChildrenThe employers (50) were asked to mention their consideration that led them to employ children. A variety ofmultiple responses were obtained. Maximum of two responses from each respondent were taken for analysispurposes which are presented in table 1 Table 1: Reasons Governing Employers for Preferring Child LaborS. No. Reasons Percentage1 Child labor is cheaper 22.002 They work hard 25.003 They create less trouble 5.004 They work for longer hours 12.005 They can be controlled easily 8.006 They can be put to any job 17.007 Any other 11.00 Total 100.00Note: Maximum two responses from each respondent have been taken from analysis.Source: Field SurveyThe table 1 shows that 1/4th employers were preferring children in their looms because they are hardworking,more than 1/5th (22 percent) expressed that they are cheaper than adult workers, 17 percent found that it waseasy to put them in any job, 8 percent liked them, because they were more disciplined and easy to handle, 12percent preferred them because of their capacity to work for longer hours, 5 percent said that they created lesstrouble and rest 11 percent employed them due to some other reasons. The analysis of the table clearly shows thatthe child labor is cheaper, easily disciplinable and can be put to work beyond the prescribed working hours. Thisfurther confirms the presumption that the poor are exploited more by the rich.4.2 Communities from Which Children Are RecruitedIn the big factories and organizations recruitment is made at the state or the national level to get skillful, smartand hardworking workers. This is done either through advertisements or scouting methods. When the employersof the carpet weaving units were asked to express their preferences , if they had for any community, 11employers said that they preferred the child labors from the lower communities and casts, 7 preferred from theirown community whereas the majority of employers had no preference for any child worker. The reasons forpreferring workers of their own or socio-economic lower communities may be the lack of social relationshipbetween various communities in rural area. It is well documented fact that dominance is closely related to thecaste structure of the rural communities. It is only because of this that employers prefer the child workers fromthe lower or from the same community. This pattern was not observed in more than half of the employers andthis might be due to the recent changes and development in social relationships between the rural communities.As regards modalities of recruitment of the child workers , more than half (54 percent) employers responded thatunemployed children and their parents approached them, 15 (30 percent) employers themselves want to hirechild workers whereas 8 (16 percent) said that co-workers approached them for employment. This shows that inthis occupation the mode of recruitment of children is direct. The data presented here shows that in cottageindustries like carpet weaving scouting is the only method adopted by the employers to recruit child workers.This fact also reflects the informal recruitment method in village industries because of non-urbanized socialrelationship prevailing in the villages.4.3 Medical CertificateWhen the employers were asked whether their child workers were required to produce medical fitness certificatebefore they joined their jobs. It was found that all the employers (50) were neither aware of it nor could they93 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011understand its need because they employed only physically as well as mentally healthy and efficient children forwork. In case of accidents and injuries, kerosene oil and carpet wool were used as medicines and reported itcured their injuries. Similarly, the parents of the child workers were asked whether their children were medicallyexamined before joining work. All the respondents (82) replied in the negative and also said that in case of injury,accidents and illness of the child workers, they had to go to private medical practitioners (shops) or to primaryhealth centers. It clearly shows that neither parents nor employers of children had realized the importance ofmedical fitness probably because of their rural background with poor education, lack of legal awareness andneglect by the law enforcing agencies.4.4 Furnishing of Surety/SecurityIn the unorganized sectors like carpet weaving units, employers behave in accordance with their whims. Theresearchers asked the parents whether they furnished any security/security to the employers for employment oftheir children. They replied in negative and added that most of the employers had provisions of advance moneyfor payment to the parents of child workers for family needs. This advance money was to be repaid in terms ofchild labor and as such the children were bound to work with a particular employer till the full repayment of theadvance money. Usually this advance is interest free and it remains so till they work with a particular employer.Interest is charged only when they leave the employer. Security money is not charged from them at any stage solong as the child workers work with the particular employer. This appears to be in conformity with the local,traditional and informal social relationship among the rural people. This particularly is in sharp contrast to thepractice prevalent elsewhere in the country were employers seek security money from the apprentices along withbonds to serve their establishments.4.5 Terms of TrainingDuring the period of apprenticeship, although children waste raw materials, they help in production after learningthe skills. They are assigned to work with adults in carpet weaving. They are paid in accordance to theirefficiency and work. The rate of payment varies from unit to unit and from trainee to trainee in the same unit. Inprivate carpet centers the rate varies from ` 50 to ` 200 per month on the basis of experience and in somecases trainee receives wages in kind like old clothes, shoes etc. Also it was observed from the field that those whowere having some relationship with the employers receive more as compared to others. However in case ofgovernment run training centers we have observed the same rate of ` 100 per month, per trainee.4.6 Preference for Present JobThe unemployment rate is usually found more in rural areas both for the educated and uneducated population.The well known reasons for it include small agricultural holding and the lack of industries in and around villages.Due to pressure of population, people migrate to cities and many look for some alternative mode of earning. Intheir search for alternative sources of income, they prefer carpet weaving industry available in the rural areas.Sampled parents of the child labor were asked to give reasons for sending their children to carpet units and theseresponses are presented in percentages in the figure 194 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011 Percentage Other job was Any other., 13 not available., , For better 28 incom e., 12 Pres ent job does not Fam ily require m uch m em bers or s ksills ., 8 relatives are in It is not this job., 24 hazaradous ., 2 Work place is near to hous e., 13 Fig. 1: A Reasons reported by parents of the child labor for preferring the present job Note: Maximum two responses from each respondent have been taken for analysisThe figure 1 shows that 28 percent of the parents expressed their views that they send their children to the presentjob because other job was not available to them, 24 percent joined the job because their family members are inthe job, 13 percent responded that they send them because these are nearer to their houses and 12 percent saidthat their children get better income in carpet units etc. In short one can infer from this data that the main reasonfor joining this occupation is non availability of alternative sources of income.4.7 Duration of the Job and Working HoursAfter knowing the reasons for preferring the present job, we wanted to know since how long these child laborswere in the present job. It is clear from the responses of child labors that 32 percent were in the carpet units sincelast one month to one year, about 53 percent were in work from last one year to two years. A few amongst themwere in the present job from three years and some even more than three years. Further with a view to collectfactual information on the daily hours of work, we interviewed all the sampled child labors and the collectedinformation reveals that nearly three-fourth (73 percent) of the child workers were working between six to eighthours every day. Some of them informed us that their working hours were flexible, whenever they wanted to earnmore money , they used to work for longer time. On the other hand, those children who were working in carpetcenters or at employers home were suffering some times in the sense that there working hours were neither fixednor flexible. Even if they worked for longer hours, they were not paid extra for that. Despite all these factorsmajority of working children were having interest in carpet weaving due to socio-economic reasons. There weresome who think otherwise because of their exploitation and future concern.4.8 Rest during WorkIn the work situation it becomes necessary to make provision for intervals so that the harmful effects of work onhealth caused by continuous work for long hours may be avoided and workers efficiency may be resorted andmaintained. So for, as the rest period of working is concerned, it was found in the survey that self employedchildren in their family units, in most of cases, had no scheduled periods for rest. These children were at liberty toattend their personal or family needs with due permission from their family members working on carpets. In the95 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011case of employed child workers their period of rest varied from season to season. During the summer season theywere given rest for 2 hours (from 12-2 pm) while in rainy season as well as in the winter season, it was for oneand a half hour as lunch break. In some of the carpet weaving units, workers began work after taking breakfastbut in most of the cases, especially in summer season they started working earlier and were given half an hour fortea break at 10:00 am. Children were usually going to their houses for lunch and a very few brought their mealswith them.4.9 HolidayOccasional leave enables the child workers to relax his/her mind from the drudgery of his /her work. Rigorousand continuous work causes frequent illness but they have no liberty to leave the work. However employersusually oblige them when they are sick and don’t deduct the wages for that day. Almost all the sampled childlabors responded that they get regular weekly holiday once a week usually at Friday. Some child labors remainoff from work during sickness, marriage ceremony, death and/or some other social ceremony. Some otherchildren remain off from work some times because of shortage of raw material, rain or due to some otherproblems. While talking about the activities they are involved in during off- days the respondents replied that,they do domestic or agriculture work and meet friends as well as play with other children of the locality.4.10 Payment of WagesThe rate of payment is dependent upon various factors like nature of job, skilled or un-skilled, semi-skilled work,duration of working hours and hazardous environment. It further varies in case of casual, contract and regularemployments and also in the case of children or adult. Though the legal provisions do not support all thesevariables for determining the rate of wages. Another important factor in determining the wages is the will ofemployers. This becomes clear when the wage structures of different organizations in the organized as well asunorganized sectors are compared.In case of carpet weaving units, the structure of payment of stipends to trainees has already been discussed.Similar is the structure of wages in these units. There is no regular employment or monthly basis as it is found inthe organized sector. They are employed and paid till the employer has work. In case they do not have work theworkers are laid off and payment is done according to the output of each worker. Sometimes children areemployed on monthly basis also but in that case they have to do domestic work of their employer.4.11 Monthly EarningsThe approximate monthly income of the sampled child workers are shown in figure 2 60 51.85 50 40 30 24.69 Percentage 20 15.43 10 5.56 2.47 0 Up to ` `300 to ` 500 to ` 700 to Above ` 300 1000 ` 500 ` 700 ` 1000 Monthly Earnings of children Fig. 2: Approximate monthly earnings of children (``)96 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011The figure 2 shows that more than half (51.43) of the child laborers were earning between ` 500 to ` 700 permonth, 17.90 percent were below ` 300, 24.69 percent were earning between ` 700 to ` 1000 and only5.56 percent were earning above ` 1000 per month. Thus the monthly earnings of most of the child workerswere very low and they earn more in the latter age when they became fully skilled in carpet weaving. Thereforeas mentioned earlier the parents are forced to send their children to this work because of many socio-economicproblems and also in the hope that their children will earn more when they will become the master of their art.After knowing the monthly earnings of child laborers, an attempt has been made to know about their viewsregarding sufficiency of wages/earnings for fulfilling their need. Nearly 3/4th (74.30 percent) child workersresponded that their earnings were sufficient enough to meet their personal needs and other were dissatisfied astheir earnings were not enough to fulfill their personal needs. Further we asked them who receive their wages,more than half (54.47 percent) responded that they receive themselves, 32.09 percent child laborers wages werereceived by their parents and 15.43 percent by their siblings.4.12 Grievance and DemandsThe employers were asked to describe the common grievances and demands performed by the working childrenand their parents. Only first two responses from each were used for analysis purpose which are presented in table2Table 2: Grievances and demands by children and parents to employersS. No. Nature of demand and grievances Percentage of responses1 Low wages. 35.002 Refusal to give money in advance. 26.003 Irregular payment. 07.004 Long hours of work. 05. 005 Poor learning of skills. 04.006 Threat of employers, adult workers. 04.007 Any other. 19.00 Total 100.00Source: Field SurveyThe table 2 shows that more than 1/3rd (35 percent) respondents grievances were received by employers forpayment of low wages to child workers, 26 percent were received for refusal to pay advance money, 7 percent forirregular payment of wages,5 percent for long hours of work ,4 percent for poor learning of carpet skills by thechild workers and another 4 percent regarding un healthy behavior by employers or co- workers, 19 percent forother reasons such as pocket money, leave with pay and welfare facilities. These facts confirm the impressionthat children are subjected to exploitation more because of the lack of any organized attempt through trade unionsto solve their problems. This is quite common with the unorganized sector where there is no regular agency toapproach the employers for redressed to their grievances.4.13 Problematic Behavior of the Children at WorkThe child is known to be immature and ignorant as compared to adults. When the sampled employers (50) wereasked to describe the difficulties faced by them from the working children, they gave different reasons but onlythe first two responses were taken into account for data analysis which are presented in table 3 Table 3: Difficulties of the child workers at work (N=50)S. No Name of difficulties Number Percentage1 They are irregular 38 38.002 They quarrel with each other. 33 33.0097 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20113 They Smoke 12 12.004 They lack social awareness 11 11.005 Any other 6 6.00 Total 100 100.00Note: Maximum two responses from each have been taken for analysisSource: Field surveyThe above table shows that 38 percent employers said that they were irregular, 33 percent found that childrenquarreled with each other, 12 percent said that children smoked while at work, 11 percent told that they lacksocial awareness and did not behave properly and the rest 6 percent told some other difficulties like dishonesty,low production etc . To expect children not to quarrel and behave decently is somewhat un-natural because theyare still in the process of getting socialized. They cannot be equated with adults. Smoking was perhaps the resultof the imitation of the behavior of adult workers. The adult workers might also have induced them to these badhabits (like smoking) for their own pleasure.4.14 Job DissatisfactionJob dissatisfaction of workers in any organization is based on several factors such as wages, hours of work,employers’ behavior, regularity of payment and other facilities including welfare measures. Keeping these pointsin view, an attempt has been made to know the satisfaction level of the child workers. The child workers whowere dissatisfied with their job were asked to express the reasons of their dissatisfaction. Information given bythe child workers has been classified and presented in table 4Table 4: Reasons of job dissatisfaction as reported by child workersS. No. Reasons Number Percentage1 Low wages 37 44.042 Temporary job 16 19.043 Unhealthy work environment 14 16.674 Rude behaviour of employers 9 10.715 Long hours of work 6 7.146 No response 2 2.39 Total 84 100.00Note: 78 child workers showed job satisfaction, therefore, they have been excluded from this analysis.Source: Field SurveyThe table 4 shows that 37 (44.04 percent) respondents were dissatisfied because of the payment of low wages,16(19.04 percent) were unhappy because of their temporary nature of jobs, 14(16.46 percent) because ofunhealthy work environment, 9 (10.71 percent) because of rude behavior of their employers, 6 (7.14 percent)because of long hours of work and the rest 2 (2.23 percent) did not give any reason for their dissatisfaction. Thisshows that a little more than half of the child workers were dissatisfied with their jobs. This is quite natural asconditions were by no means satisfactory.4.15 Impact of Work on the behavior of ChildThe nature and quantum of work have their effects on physical as well as mental growth of the workers,especially the young ones. The parents (82) were asked whether they found any change in the behavior andhabits of the child after he joined carpet weaving units. Only two responses from each were taken for analysiswhich is presented in table 5 Table 5: Changes in children after employmentS. No Forms of change Number Percentage98 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 20111 Smoking habit 38 23.172 Spends more money for pocket expenses 10 6.093 Have chosen bad company 14 8.544 Not aware about social behavior 6 3.655 Become more responsible 28 17.076 Don’t obey parents 22 13.417 Work hard 18 10.978 Know skills better 10 6.099 No response 18 10.97 Total 164 100.00Note: More than two responses from each have been taken for analysis.Source: Field surveyThe table 5 shows that the respondents gave both negative as well as positive responses. Out of all the sampledrespondents 23.17 percent reported that the child had developed smoking habits, 8.54 percent said that they hadjoined bad company, 3.41 percent reported that their children did not obey them, 6.09 percent said that theyspend more for personal expenses, 3.65 percent complained for a lack of proper behavior. In contrast, 17.07percent found that the child had become more responsible, 10.97 percent observed that they had become hardworking, 6.09 percent said that they had developed working skills in them and 10.97 percent did not respond.4.16 Impact of Work on the Health of ChildAs for as the impact of labor on health of child is concerned, information from parents as well as childrenwas collected which is presented in figure 3 Parents percentage responses Child workers percentage responses Responces (%) 30 25 27 20 21 21 22 18 15 15 10 9 11 10 10 6 7 6 8 7 5 0 2 Back pain Stomach and Chest pain Skin disease Fingrues pain irretation/ache Headache No response joint pain Eye Nature of work Note: Maximum two responses have been taken for analysis Source: Field survey Fig. 3: Effect of work on Child WorkersThe analysis of the figure 3 shows that against 21 percent cases of headache reported by parents, 27 percent casesof head -ache were found in children. Similarly, eye-aching, back pain, stomach and joint pain and pain in fingers99 | P a g ewww.iiste.org
    • European Journal of Business and Management www.iiste.orgISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol 3, No.7, 2011were respectively reported to be 18 percent, 9 percent, 11 percent, and 10 percent as against 21 percent, 6 percent,15 percent and 6 percent were found in children. According to the children the most common diseases werehead-ache, vision problems, stomach, joint pain and chest pain. Parents reported less of chest pains and more offinger pains of their children. The discrepancy between the information of two can be explained on the basis offactors like communication gap, lack of concern on the part of both parents and children.Carpet weaving requires using fingers intensively for working with wool and cotton threads concentratingheavily on the fine knots used for weaving by sitting down for hours. In such situation aching of eyes, fingers,joint pain, stomach and chest pains caused by inhaling of cotton and wool dust can be said to be natural.5. ConclusionFrom various tables and figures analyzed above one can conclude that the conditions of child workers who hadbeen working in their own family carpet weaving units were slightly better in comparison to the employed ones.By and large, employers preferred children from lower castes at cheaper rates. Children usually work 6 to 8 hoursper day. Half of the child labors were earning ` 500 to ` 700 per month and the rest were earning below ` 500per month. It indicates that parents are forced to send their children to this work because of many socio-economicproblems and also in the hope that their children will earn more when they will become the master of their art.ReferencesAnandharajakumar P. (2004) Female Child Labour, APH Publishing Corporation, New Delhi.Bahara, O.S. (2008) Child Labour, Dimensions and Issues, Cyber Tech Publications, New Delhi.China, S.S (2009) Child Labour and Policy Implications, Regal Publications, New York.Jain Mahaveer (2006) Child Labour from different perspectives, Manak Publications, New Delhi.Jha, K.J. (2002) State of Girl Child in India Indus Publishing Company, New Delhi.Misra, S.N. and Sweta Mishra (2004) Tiny Hands in Unorganised Sector, Shipra Publications, New Delhi.Mujawar, W.R. (2008) Child Labour Problem, Arise Publications, New Delhi.Nengroo Aasif Hussain (2010) Child Labor in the carpet industry of Kashmir-A case study of block Qaimoh,Unpublished M. Phil dissertation, P.G. Department of Economics ,University of Kashmir.Rao, Prasad M. (2006) Child Labour: Problems and Policy Issues, The Associate Publishers, Ambala.Shandila, Kummar Tappan (2006) Child Labour: A Global Challenge, Deep and Deep Publications, NewDelhi.Singh, A.N. (1990) “Child Labour in India: Socio – Economic Perspectives”, Shipra Publications, NewDelhi.Sharma, Usha (2006) Female Labour in India, Mittal Publications, New Delhi.100 | P a g ewww.iiste.org