0 _whole issue

European Journal of Business and Management www.iiste.org

ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)

Vol 3, No.7, 2011

1 | P a g e

www.iiste.org

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

[email protected]

Received: 2011-10-23

Accepted: 2011-10-29

Published:2011-11-04

Abstract

The purpose of the present research is to investigate the impact of organizational factors on the styles of

manager’s decision makings and the difference between the perception of managers and employees of the

styles used by managers in India. On this basis, 100 manager and 500 employees has been chosen as

statistical sample. The analytical model of this study is based on General Decision Making Style by Scott

and Bruce. Questionnaire validity, content validity and compatibility based on 10 experts and professors as

well as the experimental implementation of the questionnaire between 20 managers and 100 employees and

also 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 organizations

1. Introduction

Decision making in fact is the most difficult practice and sometimes the most dangerous work every

manager should do. A manager by an incorrect decision may cause irreparable damage to the body of his or

her organization (Atayi, 2010). Environmental changes and shifts results in that organizations look at their

managers as an important factor to overcome alterations, demands and environmental challenges ahead. In

such circumstances, managers need endless skills and capabilities (Gholi pour, 2008). Decisions are taken

along with achieving goals and by considering the available resources. Decisions determine the kind of

goals and the way to achieve them. Therefore decision making is a mechanism which encompasses all the

activities of the organization, and indeed affects all members of the organization as an individual or as a

member of the group. Organization collapsed without any mechanism to decide and to set its own target

http://www.iiste.org/



Vol 3, No.7, 2011

2 | P a g e

www.iiste.org

individuals who are looking for (Moorhead and Griffin, 2007).

Stephen P Robbins thinks of decision as something present and relevant in all tasks. According to Herbert

Simon's decision means management and management means decisions for efficient use of energy and

resources of an organization, which is essential for the manager. Kountz said the existence of plan; program

and policies depend on the existence of the decisions. Studying of decision making processes is not a new

topic. In recent years, numerous studies in various fields and surrounding areas took place about decisions

making as a subject that results in offering several classifications so far in relation to style and

decision-making models which have been presented by experts (Olivera, 2007). Each of these

classifications according to which categories of individual, organizational and environmental factors are

important in the kind of reaction and behavior on how people face decision making situations are different

from one another (Karls et al, 2003). Corporate managers considering various influential factors such as

their personal details and their workplace organizational structure and cultural backgrounds of the

environment use different decision making methods (Mortazavi, 2000).

Hafstead (1980) believes the continuing use of a method of decision making to a considerable degree

depends on the subordinates. According to Hafstead classification from the field of culture, managers

practicing in the collectivist culture use different decision making methods in comparison to individualist

culture. According to another study, four important environmental pressure factors, interaction with other

members of the organization, responsibility requirements and characteristic peculiarities is effective in

selecting the decision making method (Comer and Becker) decide how to respond to these four determining

factors of the style by his decisions making. (Gholi Pour, 2008). Scott and Bruce paid great attention in his

studies about decision-making styles of individuals and factors affecting its internal characteristics and

individual differences of the people. On this basis they introduced five styles of decision making as general

decision making styles. These five styles are: rational decision-making styles, decision making style of

intuition, dependent decision making style, instantaneous decision-making style and avoidance style of

decision making (Hadyzadh Moghaddam 2009).

Its aim is to find checking the effect of organizational factors like (size, position in the organizational

hierarchy) and the difference of perception between staff and managers about decision making.

2. Review of Related Literatures

On the subject of this study, the definition of decision making, decision making styles and empirical studies

of decision making are described as follows:

2.1 Decision making

Harrison (1987) defines decision making in this way: ((.... a moment in a continuous process of evaluation

options to achieve the goal of different expectations about how certain actions to decision makers choose the

option that is highly likely to achieve the goal one seeks)) (Roshandel 2009). Prediction, evaluation and

comparing the outcome of solutions available and choosing the available solution for certain to be able to

reach an optimal outcome is called decision (Atayi 2010). Decision making is a process which according to

that a specific way of practicing for problem solving is chosen (Astuner, 1982). Munday assign

decision-making process to find various aspects, evaluate and select one among them. This process is

obvious in all responsibilities of the manager and helps him in doing all those tasks. (Gholi Poor, 2008).

2.2 Decision making Style




Vol 3, No.7, 2011

3 | P a g e

www.iiste.org

Decision 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 amount

of information collected and the number of other solutions when the decision is considered. Although

others 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 individual

decision-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 kind

of behavior and the way people encounter situations when the decision is made (Spicer and Smith, 2005).

2.3 Rational Decision Making Style

Rational decision-making style conceptually represents a decision to follow a completely logical process

when it is going to be made. According to rational style objectives are defined clearly, all possible solutions

are selected according to identified goals and finally the best solution is implemented. (Singh, Greenhouse

1, 2004).

2.4 Intuitive Decision Making Style

Intuitive decision-making style from a perceptual point of view shows the individual’s trust to his

awareness and internal intuition when deciding. Managers of the intuitive style when deciding without

needing rational reasons to be a just solution chosen, based on insights into consciousness and instincts

chose a solution that seems to fit.(Falloup and et al, 2006).

2.5 Dependent Decision Making Style

Dependence decision making style from a conceptual point of view represents the mere reliance of the

decision maker to help and guidance from others when faced with decision situations. People, who enjoy this

style due to weakness in consciousness and inability to receive information from their environment, are

totally dependent upon others while taking decisions. (Singh and Greenhouse, 2004)

2.6 Instantaneous Decision making Style

Instantaneous decision making style conceptually represent decisions as fast and short as possible and

instantly when facing decision situations.

2.7 Avoidance Decision Making Style

Avoidance decision making style from a conceptual point of view means dodge any person's decision to

adopt when faced with decision situations. In other words people who have this style when confronted with

issues and topics that require decisions on their behalf delay the decision as far as possible (Spicer and

Smith, 2005).

2.8 Difference between managers and staff perceptions of the style used by the manager

It means the existing level of disagreements about the usage of general decision making styles among

employees and managers. Style in terms of operational decisions is a score that a person gets on the

questionnaire of decision making style. Different perceptions of managers and staff in the style manager use

in the organization: The difference from the operational point of view would be the amount of disagreement

between two questionnaire of management and staff.

3. Methodology

This study made use of a quantitative research approach, and from the viewpoint of relationship between the




Vol 3, No.7, 2011

4 | P a g e

www.iiste.org

variables (dependent and independent variables) is a type of correlation research.

3.1 Population and Sample

The population for this study includes all employees and managers in the counties, governorships and in the

general-governor of India in the years 2010.Which according to 2010 statistics is 920 people among which

352 are selected including 60 managers and 290 employees which have been classified through a random

sampling method with a simple proportional allocation.

3.2 Research Instrument

The measuring instrument used was a structured questionnaire which was developed and validated by

Bruce and Scott (1995); Hadyzadeh and Tehrani(2008) Of course with the help of this questionnaire the

content validity were also approved by professors and managers too where for the structural validity of

exploratory and confirmatory factor analysis and the KMO index was used. The KMO value equals 0.852

and the Bartlett test, even at a meaningful level of 0.99% (Sig = 0.000) is rejected. Note that the variances

are equal to 55.21 and specific values of each factor were greater than one, we conclude that the credibility

factor of this variable is appropriate.

3.3 Reliability

Reliability of questionnaires to measure the Cronbach's alpha was calculated that 0.817 of the reliability of

Cronbach's alpha showed good general decision-making style questionnaire. Regarding the use of

Kolmogorov – Smirnov test the normality of data distribution was confirmed and the appropriate tests were

used 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-making

managers and size of organization. The two sample T test was used to check for homogenization of styles

used by managers and the style diagnosed used by the staff for managers. Friedman test was used for showing

the ranking of decision-making from the perspective of managers and employees and Pearson correlation test

was used to determine correlation between the styles used by managers. Using two software SPSS 18 and

LISREL 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 and

officials, and the second questionnaire for employees and manager’s assistant. Each questionnaire included

two set of questions, the first part of the questions related to demographic data of the respondent and the

second Part of the questionnaire to measure decision-making styles of managers and directors from the

perspective of staff which includes 25 questions. 5 of 25 questions are related to the rational style, 5 to

intuitive style, 5 to dependent style, 5 to instant style and 5 to avoidance style.

3.4 Validity

When assessing validity, researchers determines whether a measure used in the study actually does measure

what the researchers in tends in to measure. As already indicated, the measurement instrument developed

by Bruce and Scott (1995); Hadyzadeh and Tehrani (2008) was used in this study. The instrument was

considered valid for the purpose of the present study.

3.5 Research framework

Research framework developed in this study has used the theoretical principles which have been taken from

the ideas and opinions of experts, scholars and scientists in management science. In designing variables and

their dimensions we used Tanenbaum and Schmitt, path - goal theory, Heller theory, Fiedler leadership




Vol 3, No.7, 2011

5 | P a g e

www.iiste.org

contingency theory and also to evaluate them in three stages by a number of university professors and a

number of senior managers. Dependent variables from general decision making styles that were introduced

by Bruce and Scott (1995) were used because of completeness and relative comprehensiveness to the

classification 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 of

organizational tasks (institutional status and hierarchy) and the theory of perception were used. From the

path-goal theory (House and Mitchell) in order to determine the environmental variables such as position in

the hierarchy, variable and size like the perception of the style used for this theory. This theory has been used

in 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 coup

with the contingency situations. But with using these cases, we recognize the importance of views and

perceptions of employees and managers with decision-making styles. we choose it as the independent

variable 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 and

this related to the decision maker and his position.

According to Heller another effective cases for choosing the style is the gaps in the hierarchy which

emphasis 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 and

position as a place that can monitor more or Less effectively (In the general-governor example according to

the size and position success of surveillance area is larger than the county governor and the governor's staff

and area monitoring is more than the county administrator. According to Heller who conceded that the time

and place specific requirements is very important in selecting the style of decision making procedure and

also the nature of the tasks (Project and Association Managers) has been noticed again and place has been

emphasized.

3.6 Research Hypotheses

Hypothesis I

H0: 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 making

styles.

Hypothesis II

H0: There is relationship between organization size and the style of decision making.

H1: There is difference between managers and staff perceptions of decision-making styles

4. Empirical Results

According to chi-square test (Table 1) statistics and P-value = 0.015 which α = 0.05 is smaller, assumption

of zero meaning the independent position of managers and the tendency the type of decision making styles

rejected and meaningful correlation between these two will be accepted. Considering the above table it is

observed that most managers who are employed in the Governor-General (nearly 50 percent) use rational

style. It is seen that the dominant style in the governor's management style used is intuitive. In the county it




Vol 3, No.7, 2011

6 | P a g e

www.iiste.org

is also observed that the dominant style used by managers is dependent style Links to organization size

Table-1: Adaptive table and chi-square test to evaluate relationship of the position of managers and

decision-making style

Total County Governor Governor-General Manager’s Position

Decision making Style

41.7 20 20 50.0 Rational

36.7 25 53.6 44.1 Intuitive

21.7 50 16.4 5.9 Dependent

100 100 200 200 Sum

12.327

df = 4

P =0.017

Chi-Square results

Total County Governor Governor-General Manager’s Position


41.7 20 20 50.0 Rational

36.7 25 53.6 44.1 Intuitive

21.7 50 16.4 5.9 Dependent

100 100 200 200 Sum

12.327

df = 4

P =0.017

Chi-Square results




Vol 3, No.7, 2011

7 | P a g e

www.iiste.org

Table-2: Descriptive Statistics; Effect of Size of Organization on Decision Making Styles

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 Pillai's 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 Pillai's Trace is also a good substitute for this.

Organization Mean Standard Deviation

Intuitive

Governor-General 2.71 0.64

Governor 3.30 0.63

County 2.58 0.70

Total Sum 2.86 0.68

Dependency


Governor 2.93 0.83

County 3.55 0.69

Total Sum 3.53 0.71

Rational


Governor 2.24 0.98

County 2.11 0.94

Total Sum 2.26 0.84

Instant


Governor 2.31 1.02

County 2.17 0.72

Total Sum 2.38 1.00

Avoidant


Governor 1.76 1.03

County 1.50 0.52

Total Sum 1.67 0.80




Vol 3, No.7, 2011

8 | P a g e

www.iiste.org

Table-3: Homogeneous variance test

53.769 Box's M

1.490 F

30 df1

3658.630 df2

.142 Sig

Table-4: Multivariate analysis of one way variance to evaluate the relationship between the kind of

management decisions style and size of organization

In this section it can be seen that the Wilks' Lambda is equal to 1.802 and Sig = 0.006 showing that this test

is statistically meaningful. (F (10, 106) = 7.24, P <0.05) shows that the hypothesis of equality between the

average of three organizations for the styles used by managers can be rejected and it can be shown that in

any organization of which style is used more. Also according to the last column of Table 4 (the relationship

between two factors) can be seen this ratio is equal to 0.405 which show a good relationship between

organization size and type of style management use.

Hypothesis II: There is difference between managers and employees perception in the organization

decision-making styles.

To investigate this hypothesis, we first check it completely to decide if there is difference between

manager’s and the style of its managers told by the employees that there is a difference or not? If the

difference 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 existing

differences is accepted.

Coefficients Coefficients F Valence

Degree

Sig. Coefficient of

relationship

between two

factors

Consta

nt

Amoun

t

Pillai's Trace .987 811.083a 5.000 .000 .987

Wilks' Lambda .013 811.083a 5.000 .000 .987

Age Pillai's Trace 1.202 8.212 10.000 .002 .401

Wilks' Lambda 1.802 7.238a

10.000 .006 .405




Vol 3, No.7, 2011

9 | P a g e

www.iiste.org

Table-5: Two sample T test to evaluate homogeneity of style used by managers and the style diagnosed

by the employees for the managers

According to Table 5 and test results it can be seen that according to values for t = 3.32 and P-value = 0.001 and

the value of the mean difference equaled to 0.21 the result is a meaningful difference between the style used by

managers and the type style used by Managers from employees viewpoint. As it is observed, the style managers

have 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

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

p-value T Valence

Degree

Mean

differences

and

confidence

interval

Standard

Deviation

Mean Number Group Title

0.001 3.32 384 .21, (.086 ,

0.34)

.69786 3.24 100 Managers Homogeneity of

Style used by

managers and the

distinguished style

used by

Employees for

managers

.38379 3.03 500 Employees


Style Used with managers Style Used with Managers from Employees

Perspective

Coefficient Rank Coefficient Rank

Rational 3.98 1 2.99 3

Intuitive 3.84 2 3.97 1

Dependent 2.98 3 3.52 2

Instant 2.13 4 2.70 4

A 2.07 5 1.83 5

Style Used by managers Style Used by Managers from Employees Viewpoint

Number 60 290

102.385 319.291

Valence Degree 4 4

.000 .000




Vol 3, No.7, 2011

10 | P a g e

www.iiste.org

The 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 were

checked. The test result value chi-square = 319.29 and with the value of 0.001 at the two stars level is

meaningful.

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 style

used by the managers. So it is observed regarding the employees opinion that is given if the test result in

the desired employee is observed that this style is located in the third rank. Intuitive style is ranked second

in place by manager’s opinion but it is in the first place by employee’s. Also it can be seen that the directors

have declared that their third priority in the decision making process is the dependency style, while

according to employees in management decision making process this style is in the second priority. For

instant 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 this

section we investigate the difference and gap between the viewpoints of staff and managers in different

organizations separately. In this test if α = 0.05 >P-value supposing equal means is rejected and the

assumption 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 and

P-value = 0.000 and mean difference in the amount equal to 0.46, we can conclude that there is a

meaningful differences between the mean type of model used by managers and the average type of model

Used by managers from employees viewpoint. A model that managers offer for their decision making

process 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

Governor-General managers


Governor-General managers through

Employee’s Viewpoint

Number 34 144

63.130 141.945

Valence Degree 4 4

.000 .000




Vol 3, No.7, 2011

11 | P a g e

www.iiste.org

Table-9: Friedman rank test, decision styles from the viewpoint of managers and employees of the

Governor-General

Table-10: Meaningfulness of Friedman test on prioritizing the style used by managers and the style

offered for manager’s from employee’s viewpoint

The 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 the

coefficient 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 priority

allocated to is the rational style. As with the following test result about the employee’s opinion, it can be seen

that the rational style for managers from employee’s viewpoint is located in the third place. From manager’s

viewpoint dependency style have the third place in their decision making process; which employees in this

process are putting priority on dependency style for their managers. Intuitive style of the managers in their

decision 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 instantaneous

one 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 existing

differences will be accepted

Governor-General Decision

making Style

Style used by managers Style used by managers From

Employees perspective


Rational 4.34 1 2.92 3

Intuitive 3.71 2 3.48 2

Dependent 2.75 3 3.97 1

Instant 2.65 4 2.69 4

Avoidant 1.56 5 1.94 5

Decision making

Style used by

Governor-General

managers


Governor-General managers through

Employee’s Viewpoint

Number 34 144

e 63.130 141.945

Valence Degree 4 4

.000 .000




Vol 3, No.7, 2011

12 | P a g e

www.iiste.org

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 governorship

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

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 through employees viewpoint

(Governor-General)

Styles used by managers

(Governor-General)

115 14 Number

158.019 18.964

4 4 V

.000 .001

p-value t Valence

Degree

Mean

differences and

confidence

interval

Standard

Deviation

mean Number Group Title

.003 2.99 127 .288, (0.097,

0.48)

.35 3.2857 14 Managers Homogeneity of Style

used by managers and the

distinguished style used

by Employees for

managers in the County

.34 2.9974 115 Employees


Governor

Styles used by managers Styles used by managers through

employees viewpoint


Rational 2.54 3 3.06 3

Intuitive 4.07 1 3.61 2

Dependent 3.86 2 4.02 1

Instant 2.34 4 1.66 5

Avoidant 2.00 5 2.65 4




Vol 3, No.7, 2011

13 | P a g e

www.iiste.org

The 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 was

checked. The test result value is meaningful for chi-square = 158.019 0.001 in the two stars. According to

Table 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 is

the intuitive style. While by considering the outcome of this test about the opinion of the employees it can

be seen that employee’s intuitive style of the managers from employee’s viewpoint is ranked second. On the

other hand stuff believes dependence style to be in the first place, while the managers own opinion saw the

dependency 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 the

avoidance style in the last. In this test if α = 0.05> P-value the assumption of equal means is rejected and

the 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

Degree

Mean differences

and confidence

interval

Standard

Deviatio

n

Mean Num

ber

Group Title

.013 2.58- 41 -.36, (.064-, -.07)

.57 2.7 12 managers Homogeneity of

style used by

managers and

styles diagnosed

by employees for

managers in the

county

.33 3.03 31 Employees

According 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 difference

between the mean type of model used by managers and mean type of model used by managers through

employee’s point of view.

To show this gap and difference as part of the Friedman test like before we act as follow




Vol 3, No.7, 2011

14 | P a g e

www.iiste.org

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

Table-16: Friedman test for ranking decision making styles from the view point of managers and

employees in the county

Styles Used by

Managers

Styles Used by Managers from the view

point of Employees (Governor General)

Number 12 31

28.157 23.747

Valence Degree 4 4

.000 .000

The results of this test is meaningful for the styles used by managers with value of chi-square = 28.16 and

two-star level (sig = 0.000). Also the test was checked for the model used by managers through employee’s

viewpoint. 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 of

T-Test.

By observing this table we can conclude that most important and the first style in managers claimed to be

important in their decision making style is the dependency one. While this styles enjoys the second place

in the decision making process of the employees. Managers have stated that using intuitive style is in the

second priority in which employees have given it the first priority. At the county managers and staff have

placed the rational style in the third priority and in this case there is no difference of opinion between

managers and employees. Managers have placed the instant style in the fourth priority but employees claim

that managers use the as their last priority. Also managers have placed the avoidance style in the last place

but employee stated that they use this style as their fourth priority.

5. Discussion and Conclusion

The purpose of the present research is to investigate the impact of organizational factors on the styles of

manager’s decision makings and the difference between the perception of managers and employees of the

styles used by managers in the Governor-General Office in India. Finding this research indicate there are

relationship between position of managers in organizational hierarchy and decision-making style. The

following research results indicated that organizational factors such as size of the organization and position of

County’s Decision

making Styles

Styles used by managers Styles used by Managers through Employees

Perspective


Rational 2.79 3 3.02 3

Intuitive 3.50 2 3.76 1

Dependent 4.67 1 3.39 2

Instant 2.58 4 1.97 5

Avoidant 1.46 5 2.87 4




Vol 3, No.7, 2011

15 | P a g e

www.iiste.org

director of the organization in organization’s hierarchy influence the style of overall decision makings by the

manager. Also there is a meaningful difference between the perception of managers and staff about the style

of manager’s decisions.

To testing the hypothesis, both Chi Square and one sample t is checked and is used in the status of each

organization. Results of Chi Square test both with ((017 / 0 = P and 72 3 / 12 = X_14 ^ 2) showed that there is

meaningful 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-general

use rational style (50 percent) and the largest percentage of managers in the governor's use intuitive style (6 /

53) and the highest percentage for styles used by the managers in the county is the dependent style .(50

percent).

The t test results for each organization confirmed the chi-square test results. The average scores for the

Governor-General has the highest mean, which shows that in the governor-general rational style is used

which is the prevailing style. For the governor in the second row it shows that the majority of managers use

intuitive style. Also for the county it can be seen that the mean of opinion offered was less than average

which 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) and

decision making styles. We used multivariate analysis of variance or MANOVA and due to this case that the

seen meaningful is smaller than acceptable meaningful level of value (005 / 0). Therefore supposing equal

means for all styles in any organization is rejected. So according to table results we can conclude that for the

rational style the highest mean is in the governor-general and for the governor the highest mean belong to

intuitive style and for dependent style the highest mean can be seen in the county section of the study. But for

two style of instantaneous and avoidant the meaningful difference between the organizations is not found. In

this regard, I couldn’t find a research to compare the finding with. Also this research indicates there is

difference 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 different

perspectives 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 style

with values (001 / 0 = p and 32 / 3 = (348) t) were meaningful. Friedman test result showed that from

manager’s viewpoint the rational style has the highest priority, intuitive style second priority and the third

priority belongs to dependent style. While from staff viewpoint intuitive style highest priority, dependent

style second priority and rational style is in the third priority. From the viewpoint of managers and employees

instantaneous 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 meaningful

difference for management and staff perception. Friedman test results indicated in this regard, rational style

for managers in the highest priority, intuitive style in the second place and the dependence style on the third

priority. While from employee’s perspective dependent style in the highest priority, intuitive one in the

second and rational is placed in the third priority. In instantaneous and avoidant style from the perspective

of managers and employees are in the fourth and fifth place respectively.




Vol 3, No.7, 2011

16 | P a g e

www.iiste.org

The test for governor with a value of (003 / 0 = P and 99 / 2 = t127) show a meaningful difference between

management 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 and

avoidance styles have the fourth and fifth priorities respectively. While the results of this test from the

perspective of employees showed that; dependent style in the highest priority, intuitive style in the second

priority, rational style in the third, avoidant fourth and instantaneous style is in the fifth priority. The results

showed 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 is

meaningful relationship between manager’s and staff perceptions of the managers decision models. Freidman

test results in this regard showed that from the perspective of managers in the county dependency style has

the highest priority, intuitive style in the second priority, rational style in the third priority, fourth priority goes

to instantaneous style and the fifth priority belongs to avoidance style. While from the perspective of

employees, the intuitive style has the highest priority, dependence one second, rational style third, avoidance

fourth 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 staff

and managers is in the third priority.

References

Atayi, M. (2010). Multiple Criteria Decision Making, Shahrood, Deghat printing Company. Organizational

behavior, Grid Publishing, Columbus, OH.

Behling, o, Gifford, W.E, & Tlliver, J. M. (1980). Effects of Grouping Formation on Decision Making

under 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.com

Gholipoor Rahmatullah, (2008). Organizational Decision-Making and General Policy, Tehran, publisher

Samt.

Harren, V.A. (1979). A Model of Career Decision Making for College Students, Journal of Vocational

Behavior, Vol. 14, pp. 119-33.

Harn, Michael and M. Ramesh (2002). The Study of Public Policy Translated by Mansourian, Abbas and

Ebrahim Golshan Tehran, Government publications Education Center., pp. 76-81.

Hadyzadeh Moghaddam, Akram and Tehrani, Maryam (2008). Studying the Relationship between General

Decision Making Style in Governmental Organizations. Public Research Office, Pub 1, No. 1, Autumn and

Winter, From Page 123 to 138

Hatch, Mary Joe, Organization theory (2006). Translated by Danaifard Hassan, Termeh Publishing Company,




Vol 3, No.7, 2011

17 | P a g e

www.iiste.org

first published in Tehran, pp. 6-7.

Heler,Frank ; Drenth,Pieter ; Koopman Pool & Rus ,Velijko.(1988) .”Decision in Organization: A Three

Country Comparative Study” London, Sage Publication, P: 250

Jean 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. Unpublished

doctoral dissertation, Harvard University Graduate School of Business, pp. 13-21.

Loizos Th. Haracleous, (1996). Rational Decision Making: Myth or Reality? Management Development

Review, 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. 79-90

Mitroff, 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 And

Models: The Search For a Cultural-Ethical Decision Making Model, Electronic Journal of Business Ethics

and Organization Studies, Vol 12, No 2, pp 12-13

P. Robbins, Stephen, (2005). Organizational Behavior, Concepts, Theories and Applications, Translated by

Parsaiian, 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 Strategies

and Person-Tohfit, journal of vocational behavior Bruce and Scott, pp. 1995 -15

Scott, S.G. and Bruce, R.A. (1995). Decision Making Style: The Development and Assessment of a New

Measure, Educational and Psychological Measurement, Vol. 55, pp. 818-831.

Tehrani, Maryam (2006). Studying the Effect of Emotional Intelligence and General Style of Decision

Making for Managers in Iranian Oil Company, Master's thesis, University of Shaheed Beheshti.

Tatum, Charles B., Eberlin, Richard, Kottraba, Crin, Bradberry, Travis, (2003). Leadership, Decision

Making and Organization Justice, Journal of Management Decision, p 1007, The current issue and full text

of this journal is available at: http://www.emeraldinsight.com/0025-1747- html

Thunholm, Peter (2004). Decision-Making Style: Habit, Style or both?, Journal of Personality and

Individual Differences, pp 932-933.




Vol 3, No.7, 2011

18 | P a g e

www.iiste.org

Healthcare Management and Leadership: Managerial

Challenges Facing Healthcare Professionals

Vincent Sabourin

GRES, University of Québec in Montreal (UQAM)

School of Management, University of Québec in Montreal (UQAM)

Correspondence: UQAM, ESG School of Management, 315 east St-Catherine Montreal Qc. Canada H3C

4P2. Suggestions are welcome: [email protected]




Abstract

This paper sought to study issues which may hinder leadership management by health care managers when

executing their management functions and objectives in practice. The managerial drivers included: rules,

initiatives, emotions, immediate action and integrity. This paper describes the drivers of management

leadership by managers in healthcare institutions to implement their organizational objectives. The findings

on perception towards delivery, performance and professional satisfaction by healthcare managers has put a

lot of emphasis on resistance to change and the lack of commitment of employees (the dimension of

emotions) to explain the obstacles faced by healthcare managers. The finding of our data suggests that a

driver of emotions is the most critical obstacle to healthcare management.

Purpose: This research was carried out to investigate on the impediments facing healthcare practioners with

regard to their delivery, performance and professional satisfaction. The study involved effective drivers of

management, which constituted individual obstacles that healthcare administrators and physicians face

during their leadership and managerial execution.

Materials and Methodology: A mixed method of qualitative (focus group discussion) and quantitative (a

survey with a questionnaire) approaches was applied to this study. These involved group discussion of

healthcare employees and administrators in public healthcare hospitals in a Canadian province. The total

number of surveyed healthcare managers was 182.

Results: The years of practice for most healthcare mangers was found to be a factor in delivery. Young and

fresh graduates though are very productive cannot deliver not unless they have accumulated relevant

experience to master those disciplines of healthcare management and administration. Additionally it was

also found that those managers who had held management position for over twenty years become less

productive. Thus from the responses of healthcare managers, there should be rotational leadership and

employee growth to prepare young but able future leaders. With regards to the drivers of management, it

was established that the driver of emotions holds the highest consideration to delivery, performance and

professional satisfaction with the kind of leadership exercised by healthcare managers. This driver had

85.67% of the respondents who agreed, 11% were neutral and 10% disagreed. Other drivers were; drivers

of rules, which after analysis, was found to have 80% respondents who agreed with it, 8.33% were neutral


mailto:[email protected]



Vol 3, No.7, 2011

19 | P a g e

www.iiste.org

while 11.57% disagreed with the driver. The driver of initiatives had 74.33% responses from agreeing

managers, 20% were neutral while 17% disagreed. The driver of integrity had 75.33% respondents who

agreed with the driver, 20.67% were neutral while 4% disagreed. The driver of immediate action had

66.67% of the respondents agreeing, 27.33% were neutral while 6% disagreed. The summary of the report

has been presents in table 4.

Conclusion: Our research discusses the significance of understanding the managerial obstacles faced by

healthcare managers when exercising their leadership roles so as to have effective delivery, performance

and professional satisfaction. We also discussed how the nature of healthcare managers’ measures varies

between the managers employed in government and private institutions. Using descriptive Analysis, our

research studied the managerial obstacles that hamper the healthcare managers in implementing their

objectives to achieve defined leadership. The findings supported our hypothesis that the main obstacles

faced by healthcare managers are related to the drivers of emotions. Further this study also indicates that

the category of immediate action such as too many emergencies and urgent issues going unresolved without

solutions would be perceived by healthcare managers as obstacles.

Keywords: Healthcare leadership, Managerial execution, Professional satisfaction,

1. Introduction

Health care systems in most countries are under pressure to deliver better healthcare services to wide

population of people. An improvement in healthcare services in any country requires a clear understanding

of the human resources characteristics as well as the current working of the healthcare systems. As recently

described by Fleishman et al., (1991), provision of an adequate health care workforce is now considered

one of the most pressing global human resource issues worldwide. To recruit and retain health care workers

attention to the professional satisfaction of these workers is essential. Professional satisfaction is now

associated with roles and responsibilities, interdisciplinary relationship, remuneration issues, and other

important 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 are

constantly working with their employees to improve the quality of their services, which in turn helps in the

improvement of the quality of the life of the citizens (Fleishman 1953; Fairholm 1996). This is to mean that

junior employees should be involved in key sectors of the hospital management despite having been

assigned 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 is

widely contributing to a number of challenges in key areas such as healthcare systems. This therefore calls

for 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 also

need to be fully aware of pull factors such as better opportunities offered by other countries and NGOs so

as 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 understand

the 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 of

human perpetuity and sustainability against premature deaths and other health contingencies. These

managers have been faced with numerous challenges and obstacles which in management could be termed

as managerial obstacles facing healthcare leaders as argued by Zuckerman (1989). It is evident in any

organization that in order to achieve the organizational set goals and objectives, then effective strategy

executions have to be formulated.




Vol 3, No.7, 2011

20 | P a g e

www.iiste.org

1.1 Aims of the study

This research was carried out to investigate on the impediments facing healthcare practioners with regard to

their delivery, performance and professional satisfaction. The study involved effective drivers of

management, which constituted individual obstacles that healthcare administrators and physicians face

during their leadership and managerial execution. The researchers employed managerial drivers which

included; rules, initiatives, integrity, immediate action and emotions to better identify key obstacles that

face healthcare managers and administrators.

1.1.1 Conceptual Framework

Our conceptual framework is inspired by the work of Kolb (1984) and Kolb and Boyatzis (1995) on

experiential learning and additional work on the topic (Richard and Sabourin, 2009a; Sabourin, 2009a). We

found that the conceptual model of Kolb (1984) provided us with a completed spectrum of perspective on

the topic of strategy execution. Based on this perspective, our conceptual framework suggests that five

different, but complementary drivers could be obstacles faced by managers when executing their strategy. A

review of the literature in management and of the Kolb model (1984) and subsequent work (Richard and

Sabourin, 2009; Sabourin 2009) has led us to develop a conceptual framework of five drivers adapted to

management 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 first

driver gathers variables that refer to factual and rational analysis of given situations. This perspective leads

to 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 its

employees. This driver gathers variable dealing with topic such as fetching a commitment, clarifying

problems, reconciling the divergent points of view and establishing consensus. In this second situation, we

make a thoughtful observation that consists of making observations on the experience lived by the persons

and of thinking about their meaning.

The third driver of initiatives deals with translating managerial objectives into concrete projects for

employees. It gathers variables dealing with introduction of new projects and ideas that results in more

willing and more capable employees. This third driver relies on the active experiment of initiatives; realize

projects and continuous improvements to the existing activities.

The fourth driver of immediate action gathers variables that reflect creating value-added action or

immediate actions in response to urgent matters in the execution of objectives. It addresses concrete action

and those that allows rapid actions on small scale to obtain quick results. Thus, the variables deal with

quick decision taking without respect to an established plan.

The fifth dimension of integrity deals with executing objectives in the context of integrity of values and

principles. It gathers variables associated with executing objectives in respecting organizational values and

principles. These variables refer to obstacles faced concerning organizational values. This is the capacity to

realize the organization objectives in the respect of the integrity under pressure. The summary of the drivers

has been presented in fig 3.

1.1.2 Hypothesis formulation

Based on the preceding research model developed from the conceptual framework of Kolb (1984), five

hypotheses are formulated.




Vol 3, No.7, 2011

21 | P a g e

www.iiste.org

With the assessment of the Kolb (1984) experiential learning model, there are a number of obstacles that

managers 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 managers

would 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 goals

and objectives. This involves reconciling divergent needs and ensuring that only organizational goals are of

priority as opposed to individual goals and interests. This therefore leads to the formulation of the following

hypothesis.

Hypothesis 2: With regards to the management obstacles faced by healthcare managers, the most

significant obstacle perceived would be the drivers of emotions.

Besides stimulating commitments, managers have an overall role of ensuring that all the obstacles faced by

their organization and employees in particular are given an equal measure and treatment so to have a

balanced performance in their work and objective attainment. This therefore leads to the following

hypothesis formulation.

Hypothesis 3: With the exception of drivers of emotions, the other categories of obstacles would be

perceived 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 decisions

when striving to achieve their objectives. These steps involve rather rapid decisions to meet whatever is to

be realised in the shortest time possible. This statement therefore leads to the formulation of the following

hypothesis.

Hypothesis 4: Given the volatility in healthcare environment, in the driver of immediate action, healthcare

managers would perceive a number of emergencies.

Managers dealing with their employees are at times forced to clarify their objectives in line with the

anticipated actual results. This clarity of issues helps to develop focus and attention and even higher

commitment by the employees, which are involved in the overall performance and execution of the set

goals. This therefore leads to the formulation of the following hypothesis.

Hypothesis 5: Given the perception that no singular performance measure exist for healthcare managers in

government healthcare institutions compared to healthcare managers in private practice, lack of clarity in

the actual results expected would be perceived as a key obstacle under the driver of rules.

1.1.3 Research Methodology and Design

This study is a part of a broader research on managerial strategy implementation and implementation was

conducted in four major steps. In our study the dependent variable was strategy implementation and

implementation 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 present

briefly 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 182

managers in organizations. This first step was completed to empirically support the four dimensions of

Kolb (1984) using its measurement instrument. These four dimensions had a significant degree of variance

explained.




Vol 3, No.7, 2011

22 | P a g e

www.iiste.org

Secondly, before undertaking this study, we developed a specific instrument capable of measuring

management leadership within their organization. To do so we completed a set of 12 focus groups with

managers working to survey from a qualitative perspective, the set obstacles that they faced. They were

gathered under the 4 categories of the conceptual framework of Kolb (1984). However, following this

qualitative survey of obstacles faced by managers, a fifth category of obstacle that did not fit within the

conceptual 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 under

the form of a questionnaire to survey empirically the relative importance of the various categories of

obstacles. This questionnaire was previously validated with a sequential set of 5 small samples of managers

to improve the formulation of the various questions and insure its statistical reliability.

The following sections explain the details of each of these four methodological steps

Step 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 dimensions

of the conceptual framework of Kolb (1984). The validation was based on the Learning Style Inventory of

Kolb (1984) with some adjustments to the managerial context.

1. Data was collected by managers through structured training in the countries of the Organization for

Economic Co-operation and Development (OECD). Three regions of the world, namely, Europe, North

America 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 the

initial variables were related to the modes of learning. Our questionnaire was adapted to answer the

questions on the strategies of transformation, and we validated the questions during executive seminar with

the managers of the organization.

3. To make sure that each of the questions was understood, the validation was preceded by a pre-test

conducted on 15 referees of the Belgian Management Training Association. All questions were suitably

understood 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 analysis

and the test of Cronbach Alpha were completed. The results of R-square (degree of explained variance by

the model) and factorial analyses were used to verify the hypotheses. As shown in table 2, reference is

made to the Cronbach Alpha, an indicator of reliability with the measuring scale between 0 (not reliable of

the whole) and 1 (reliable).

5. Four of the five dimensions of our conceptual framework have been validated in previous research. The

first four dimensions had a positive Cronbach alpha and the fifth dimension (integrity) was added

afterwards following the qualitative research focus groups. Table 2 below presents the concept definition

along with the variance and reliability obtained as shown in the next table. Each dimension (with the

exception of the fifth one) was supported by a significant variance explained and a significant Cronbach

alpha.

Step 2: Focus groups with managers to identify managerial obstacles

In the second step, and before undertaking this specific study, we completed focus groups with managers to

list the various obstacles they face for each of the dimensions previously identified. Twelve focus groups

were conducted with an average of 15 managers per group to identify obstacles faced by managers. We

identified 5 obstacles for each of the 5 dimensions for a total of 25 obstacles. The obstacles were selected




Vol 3, No.7, 2011

23 | P a g e

www.iiste.org

based on the frequency among the participants for each of the focus groups. The obstacles identified were

used as input to elaborate the measurement instrument related to obstacles.

Step 3: Development of a measurement instrument

We further developed an instrument tool to measure the role of the 25 obstacles that were identified with

managers in focus groups. We used the verbatim of the focus group to elaborate a survey to validate these

obstacles. A pre-test of questionnaire was administered and the questions were sequentially adjusted with

five 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. The

table 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 Canadian

province. The participants were all managers and project managers with an information technology

background and were in charge of supervising information technology projects. The group was selected to

insure 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 understand

obstacles 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%) were

49 years old or younger. There were no significant differences between this sample of 182 and the broader

sample of managers (n=322) used in previous research.

A selection of other methods was used in an attempt to interpretation. The investigators had no vested

interest 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) the

use 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 results

to the profession within the country. This was a voluntary anonymous survey. Completion of the survey was

considered consent for the participant.

1.1.3.1 Main outcome measures

The main outcome measures for this study were professional demographics and the extent of agreement to

positively phrased statements regarding their delivery, performance and professional satisfaction with

emphasis on the management drivers.

1.1.3.2 Data analysis

For the purpose of this research, data analysis was unfunded assessment solicited by the Canadian Supreme

Council of Health. To minimize any perception of potential bias and loss of anonymity, the researchers

were solely responsible for the administration of survey questionnaires, data collection, analysis and

interpretation. The researchers had no vested interest in the specific outcomes of the survey.

1.1.4. Findings and Results

One hundred and seventy two online survey accesses were recorded during the designated survey collection

period. This represents 58% of all healthcare managers practicing in Canada. Twenty two of the surveys

were found to contain no responses or respondent duplicated survey attempts and were thus neglected. The




Vol 3, No.7, 2011

24 | P a g e

www.iiste.org

remaining two hundred and fifty surveys contained responses to one or more questions and were included

in the analysis. We noted that not all participants provided responses to all the survey questions.

1.1.4.1 Respondent demographics

The socio-demographic and years of practice characteristics are summarized in table 2. This was based in

the years of practice in administrative and management positions since commencing the employment. 90

respondents reported to have held management position for a period of less than 5 years. This represented a

response rate of 30%. 100 respondents reported to have been in management position for periods ranging

from 6 to 10 years, thus netting a response rate of 40%. Between 11 to 15 years, there were 50 respondents

who scored a response rate of 14.67%. 32 respondents reported having held an administrative role in

healthcare institution for period of 16-20 years, and had a response rate of 10.67%. Those who had held

those positions for periods of over 20 years were 14 respondents, netting a response rate of 4.67%. This

information is summarized in table 2.

1.1.4.2 The perception towards delivery, performance and professional satisfaction and management

obstacles

Table 3 shows the extent of agreement with perception towards delivery, performance and professional

satisfaction with healthcare management under the different variables of the respective drivers of

management adopted from the previous researches and as outlined in the conceptual framework. In this

research, views and opinions were solicited from 182 hundred respondents who were in management or

administrative 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; V1, V2, V3, V4, V5 respectively. From the descriptive

analysis 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 V2; 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% agreeing

respondents, 11.33% were neutral while 21.33% disagreed. Variable V5 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 the

findings from the descriptive analysis, V6 had 84.67% respondents agreeing with the variable, 12% were

neutral while 3.33% disagreed. With regards to V7, 87.33% agreed, 9.33% were neutral while 3.33%

disagreed. V8 recorded 87% agreement, 8% neutral and 5% disagreement. V9 had 80% agreeing

respondents, 16.67% neutral and 3.33% disagreeing. V10 had 87% agreeing, 8.33% were neutral while

4.67% were recorded as disagreed.

Under the driver of initiatives, there were variables labeled; V11, V12, V13, V14, V15 respectively. From the

descriptive analysis, V11 recorded 79% respondents agreed with this variable, 16.33% were neutral while

4.67% disagreed. V12 had 75.33% respondents agreed, 19.67% were neutral while 5% disagreed. V13 was

noted to have 78% of the respondents agreed, 18% were neutral while 4% disagreed. V14 was found to have

65.67% respondents who agreed, 23.33% were neutral while 11% disagreed. Lastly V15 had 73.33%

agreeing, 19.33% neutral and 7.33% disagreeing with the variable.

Concerning the driver of integrity, there were variables labeled as; V16, V17, V18, V19, V20. V16 had 79%

respondents agreeing, 16% were neutral, and 5% disagreeing. V17 recorded 72% respondents who agreed,

25% were neutral while 3% disagreed. V18 had 80% of the respondents agreeing, 16% of the respondents

were 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.




Vol 3, No.7, 2011

25 | P a g e

www.iiste.org

With regards to the drivers of immediate action, there were five variables labeled as; V21, V22, V23, V24 and

V25. As from the descriptive analysis, V21 was noted 73.33% of the respondents agreed, 21% were neutral

whereas 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. V24 had 42% of the respondents agreeing,

58% disagreed. V25 was after analysis found to have 81% agreeing respondents, 4.67% of the respondents

were neutral, while 14.33% disagreed.

1.1.4.3 Perception of healthcare managers and administrators towards the managerial drivers

The researchers developed five managerial drivers that were separately investigated to find out their

contribution towards effective delivery, performance and professional satisfaction. The managerial drivers

of rules, was after analysis, found to have 80% respondents who agreed with that driver, 8.33% were

neutral while 11.57% disagreed with the driver. As for the driver of emotions, 85.67% of the respondents

agreed, 11% were neutral and 10% disagreed. The driver of initiatives had 74.33% responses from agreeing

managers, 20% were neutral while 17% disagreed. The driver of integrity had 75.33% respondents who

agreed with the driver, 20.67% were neutral while 4% disagreed. The driver of immediate action had

66.67% of the respondents agreeing, 27.33% were neutral while 6% disagreed. The summary of the report

has been presents in table 4.

1.1.5 Discussion

The discussion presents an overview of the nature and behavior of healthcare managers and administrators

with respect to the various management obstacles encountered while discharging their leadership roles. This

part is divided into two parts; the specific section and the general discussion section.

1.1.5.1 General discussion section

Generally, well educated and nurtured employees will be very productive. Their delivery will be fostered if

management consider making junior employees part of management. The essence of employee engagement

is to provide a positive environment where employees are free to contribute, and desire to contribute, more

of their energy, efforts and thought processes in ways that significantly and favorably impact the goals of

the organization. People, who engage other people on behalf of their employer, as employees are required

to do in many service jobs, are expected to be courteous and pleasant to others. How can any leader or

manager 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 intrinsically

motivated. However, creating intrinsic motivation requires something different than merely a lack of

negative treatment. The key issue becomes one of how to inspire people to provide positive and

productive engagement toward their organization. We have learned that valuing the talents of subordinates

reaps better results. By ensuring that subordinates know we appreciate their thoughts, ideas, skills and

knowledge, we communicate a feeling of respect and importance. In doing so, it is not necessary to hand

over the reigns of authority or decision-making power. Yet situational leadership theory might indicate

that, 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 higher

wages. In other words, if an organization wants higher dedication from employees, all it has to do is give

workers 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 will

serve to de-motivate employees, but the presence of these same elements does not serve to motivate

employees 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,




Vol 3, No.7, 2011

26 | P a g e

www.iiste.org

subordinate and supervisor relationships, company policy and administration, work conditions, and

supervision. In other words, according to Herzberg’s theory, the hygiene factors only affect job

dissatisfaction but do not improve job satisfaction.

Our analysis therefore brings to light, the contemporary perspective of five drivers of management for

healthcare managers. The analysis of the data highlights how healthcare management gathers

multidimensional practices with varying complementary facets. The following is a brief discussion of the

drivers.

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 and

objective achievement. The findings related to the driver of initiatives can be applied in the area of

identification of training and developmental needs of healthcare managers and employees, to fulfill the

competency 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 unique

competency.

The findings related to the driver of rules also have managerial and administrative implications. This driver

focuses on the clarity of communicating the expectations, systems to evaluate the results and supportive

parameters and the process used for regular reviews and it calls for precise identification, design and

implementation of communication systems, evaluation systems and monitoring systems respectively. Hence

the 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 the

same will also ensures the support of the driver of immediate actions. Though the driver of integrity was

not widely commented, with regards to this study on healthcare management and administration, there is

need that managers ensure that their actions are clean and focused on the overall attainment of the

organization’s objectives and goals.

1.1.5.2 Specific discussion section

This section examines and discusses all our five hypotheses formulated earlier. With respect to the findings

on the subject of exploring the obstacles faced by healthcare managers while executing their objectives, we

intend to examine to what extent each of our hypothesis was supported. The results of the empirical

analyses have provided answers to our research questions. Apart from examining the hypotheses formulated

we also wish to elucidate other potential observations of our research to existing literature on healthcare

management and administration.

Hypothesis 1: In the context of management leadership in healthcare administration, healthcare managers

would 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 on

management leadership in healthcare management and administration and emerged out of the conceptual

framework of Kolb (1984). The data analysis done supported this hypothesis. Though it is consistent to our

conceptual model, additional research with large samples would be needed to support the external validity

and to generalize all the five categories in different levels of healthcare management and administration

across 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 proving

the 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 most

significant obstacle perceived would be the drivers of emotions.




Vol 3, No.7, 2011

27 | P a g e

www.iiste.org

In the context of management leadership in healthcare management and administration, our second

hypothesis states that the most significant category of obstacles faced by healthcare managers among the

five categories found in the conceptual framework is the driver of emotions and the factors related to it

including 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 the

organizational goals, it is relative that senior managers be leaders, who can communicate necessary

objectives to their juniors. There should be trust and respect among employees and between seniors and

their 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 be

perceived 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 our

conceptual framework, we found that the four other drivers excluding the driver of emotions did not have

an equal weight in their relative importance. Some drivers are applicable or appropriate at different times

and in different scenarios. So the hypotheses could not be supported since not all drivers will be exhibiting

similar variability or effects regarding management.

Hypothesis 4: Given the volatility in healthcare environment, in the driver of immediate action, healthcare

managers would perceive a number of emergencies.

Under the drivers of immediate action, our hypothesis states that healthcare managers would perceive many

emergencies and last minutes requests and changes as a key obstacle since there is volatility in the

healthcare environment. The descriptive analysis supported this hypothesis. It is always impossible to avoid

emergencies in an organization. Some decisions will always be made without having to settle for formal

meetings. 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 in

government healthcare institutions compared to managers in private practice, lack of clarity in the actual

results 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 results

expected to be the key obstacle under the drivers of rules. It is consistent with the previous research studies

indicating that clear priorities and objectives. Our descriptive analysis supports this hypothesis. The

certainty with any management decisions is that managers whether in public or private, have to ensure that

the results to achieved are clearly defined to their employees.

1.1.5.3 Practical and Theoretical Implications

Motivated 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 the

importance of objectives are perceived as the most significant obstacles. It is an important observation for

the management in the sense that they have to adopt practices and policies to develop and sustain employee

engagement in healthcare sector.

Healthcare managers are expected to perform efficiently with multiple management measures since the

dynamics of performance and the competencies required for that are quite unique for professional

satisfaction. Their performance is expected to go beyond profit or wealth maximization when compared to

their counterparts. Given this scenario, the obstacles perceived by healthcare managers also would be

unique and different when compared to their counterparts. Research has to identify those set of obstacles

that are exclusively felt by healthcare managers. Our descriptive research confirms the existence of five

categories of obstacles faced by healthcare managers while discharging their healthcare goals and




Vol 3, No.7, 2011

28 | P a g e

www.iiste.org

objectives.

1.1.5 4 Limitations

In the context of healthcare management and administration, additional research with large samples will be

necessary to support the current findings and its validity. Additional research is required to generalize these

findings to the healthcare managers employed specifically in the government institutions and the private

sector. Also global level categories have to be included in the additional research to generalize the current

research findings.

1.1.5.5 Conclusion

Our research discusses the significance of understanding the managerial obstacles faced by healthcare

managers when exercising their leadership roles. We also discussed how the nature of healthcare

managers’ measures varies between the managers employed in government and private institutions. Using

descriptive Analysis, our research studied the managerial obstacles that hamper the healthcare managers in

implementing their objectives to achieve defined leadership. Our research confirmed the existence of five

categories of obstacles as experienced by healthcare managers. The findings suggest that factors such a lack

of commitment, lack of trust and lack of awareness of the importance of objectives would be the main

obstacles when healthcare managers execute their objectives. Also the findings supported our hypothesis

that the main obstacles faced by healthcare managers are related to the drivers of emotions. Further this

study also indicates that the category of immediate action such as too many emergencies and urgent issues

going unresolved without solutions would be perceived by healthcare managers as obstacles.

References

Batten, 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: A

Synthesis 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 of

Educational Research, The Ohio State University, Columbus, OH.

Fleishman, E. A. & Harris, E. F. (1962), “Patterns of leadership behavior related to employee grievances

and 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”,




Vol 3, No.7, 2011

29 | P a g e

www.iiste.org

Leadership Quarterly, Vol. 2, pp.245–287.

Pointer, D., D., (1990). “Offering-level strategy formulation in health service organization”. Healthcare

management Review, 1511-1523.

Pointer, D., D., Begun, J., W., & Luke, K., D., (1988), “Managing inter-organizational dependencies in the

new 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 health

services administration. 34(1)25-38.

Morrisey, M., A., Alexender, J., A., & Ohsfeldt, P., L., (1990), “Physician integration strategies and hospital

output- A comparison of rural and urban substitution”, Medical Care review, 28(7):586-603

Notes:

Fig 1: The conceptual framework of the 5 drivers of strategy execution

Sources: Kolb (1984) Experiential Learning Model

Table 2: Concept definition and measurement

Concept definition Variance and reliability

1 Variance explained: 53.5 %

Healthcare administration and

Leadership

1. Immediate action

2. Emotions 3. Initiative

4. Rules 5. Integrity




Vol 3, No.7, 2011

30 | P a g e

www.iiste.org

Rules (abstract conceptualization): theoretical conceptualization by means of

rules postulates and models to systematize information.

Alpha of Cronbach: 0.799.

2

Emotions (reflexive observation): problem recognition and capacity to develop

convictions and to get a commitment.

Variance explained: 60 %

Alpha of Cronbach:

0.831.

3

Initiatives (active experimentation): select a model to test its possible

consequences. Learning by trying, finding new ways to put new ideas in

practice. Support initiative to responzabilize employees.

Variance explained: 53%

Alpha of Cronbach 0.8

4

Immediate actions: action oriented that is immediate and concrete. Oriented

towards direct contacts and apprehension rather than comprehension. Quick

adjustments resulting from feedback.

Variance explained: 52.6%

Alpha of Cronbach: 0.740

Table 1: Description of measurement variables in the drivers

Obstacles Drivers & Variables Measurement-Questions

Driver of Rules

Obst1 V1

I have developed work techniques to clarify the expectations of our

bosses.

Obst2 V2 We have identified goals that focus on customer service




Vol 3, No.7, 2011

31 | P a g e

www.iiste.org

Obst3 V3

We have developed work techniques to help individuals stay focused on

the results to be achieved.

Obst4 V4

We systematically conduct annual reviews of our activities with the

other units within our organization.

Obst5 V5

We are able to estimate the economic value of improvements we wish

to make throughout the organization.

Drivers of Emotions

Obst6 V6

We are able to encourage our workers to adhere to our goals so that

they are fully aware of their importance.

Obst7 V7

We are able to communicate a sense of urgency to our workers so that

they are able to make rapid decisions.

Obst8 V8

We are able to significantly increase the motivation and levels of

engagement of our workers.

Obst9 V9

We work closely with colleagues who are able to support us during the

decision-making process.

Obst10 V10 We are able to treat our employees fairly.

Drivers of Initiatives

Obst11 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.

obst14 V14

We have developed techniques to increase self-resolution of problems

for team members




Vol 3, No.7, 2011

32 | P a g e

www.iiste.org

Obst15 V15

In my organization, we use various techniques according to the level of

importance of decisions and team-based management.

Drivers of Immediate action

Obst16 V16

We systematically provide improvements and contingency plans to

effectively respond to emergencies.

Obst17 V17

Over the past years, the number of emergencies we responded to has

decreased.

Obst18 V18

We systematically perform reviews to find durable solutions for repeat

situations.

Obst19 V19

I dedicate at least 2 to 3 ninety-minute sessions each week to work

directly on their annual goals

Obst20 V20

We dedicate a maximum of one day each week to respond to urgent

requests.

Drivers of Integrity

Obst21 V21 We clearly define the values of our organization

Obst22 V22

When under pressure, we are able to reinforce the values of our

organization

Obst23 V23

I am able to recognize differences between the values of my

employees and those of my organization.

Obst24 V24

We have ways of contributing to the organization’s reputation through

the services we provide.

Obst25 V25

We have work methods to systematically reinforce our employees'

sense of obligation.




Vol 3, No.7, 2011

33 | P a g e

www.iiste.org

Table: 2 Characteristics of healthcare managers’ years of practice

No of Years in management

position

No of Respondents (N=300) Response rate (%)

Between 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

N (%)

Neutral

N (%)

Disagree

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%)




Vol 3, No.7, 2011

34 | P a g e

www.iiste.org

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%)

Immediate

action

V12

V13

V14

V15

V16

126(75.33%)

134(78%)

117(65.67%)

120(73.33%)

137(79%)

49(19.67%)

44(18%)

35(23.33%)

48(19.33%)

38(16%)

7(5%)

4(4%)

30(11%)

14(7.33%)

7(5%)

Integrity

V17

V18

V19

V20

V21

119(72%)

140(80%)

118(70%)

125(75%)

120(73.33%)

47(25%)

28(16%)

32(27.33%)

47(19%)

53(21%)

16(3%)

6(2%)

8(2.67%)

10(6%)

9(5.67%)

V22

V23

V24

V25

84(48%)

157(89%)

84(42%)

143(81%)

98(52%)

_

98(58%)

11(4.67%)

_

25(11%)

_

28(14.33%)

Notes: Responses have been categorized into 3-point scale; neutral means “neither agrees nor disagree”




Vol 3, No.7, 2011

35 | P a g e

www.iiste.org

Table 4: Perception towards managerial drivers

Driver

Agree

N (%)

Responses

Neutral

N (%)

Disagree

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

Integrity

116(75.33%)

100(66.67%)

55(20.67%)

62(27.33%)

11(4%)

20(6%)

Notes: Responses have been categorized into 3-point scale; neutral means “neither agrees nor disagree”




Vol 3, No.7, 2011

36 | P a g e

www.iiste.org

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.




Abstract

The study investigated in to descriptive research to evaluate the potentials of educational technology used

in-service teachers training programmed in KPK (Pakistan). The study has defined the potentials of

educational technology used in services training, provision of a new educational technology in in-service

training and the effectiveness of in- service training at secondary level. The main objectives of the study

were, to determine the role of educational technology, needs, usefulness, status and emerging trends of

educational technology, educational technology used in-service teachers training. The following results

were drawn by the researcher in the light of the analysis of the data:-It was found that the in-service training

schedule is not followed; educational technology is helpful for professional development but not properly

used. Executive district officer makes the nomination of the teachers for in service training. In-service

training venue is not accessible for the teachers and result oriented teaching methods are used at secondary

level.

Keywords: Use of educational technology, provision of ET, in-service training, emerging technologies

and professional development.

1. Introduction:

A teacher occupies the most crucial position in the entire spectrum of education activities. The availability

of a good number of educated and professionally trained teachers therefore possess the greatest challenge to

policy makers and planners of education in Pakistan. The training to communicate a teacher during his

service to aware him with the latest innovations, changes in the curriculum and pedagogy is called

in-service training. S.S (1997, P70) stated that refresher courses are provided to teachers for the

improvement of their teaching skills and provide opportunities for realistic approach in teaching learning

process. After in-service teachers training the teachers apply their skills in the class room and used advance




Vol 3, No.7, 2011

37 | P a g e

www.iiste.org

teaching methodologies for effectiveness learning of the students.

The quality of the system of education depends upon the quality of the teachers. The education is emphasis

in all the advance countries. According to Jamshid, M. (2000, P.90) describes that in-service training

programmes develop the teacher command for theoretical knowledge about learning and human behavior

and to improve the teachers attitudes that faster learning and pure human relationship. In service training

strengthen 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 importance

and rule of internet and internet have expended classroom resources. There resources can be obtained

through internet. In service training can easily be improved to keeping in mind the challenge of the 21st

century: such type of training should be developed that a students is made in dependent and a teacher is a

facilitator.

1.1. LITERATURE

The Education reserves, as it deserves the label of prime importance for the development of a country

and the National Progress as a matter of fact effective teaching demands that besides possessing adequate

knowledge of the subject matter the methods and new techniques of teaching are prerequisites to be learned

by the teacher for his professional competency and effectiveness. In other words keeping in view the

complementary nature of the educator (teacher) and the education, the training of teachers comes to be

matter 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 obstructions

which an individual will seek to overcome and from which he will learn in the course of doing so. Teaching

is an intimate contact between a more nature personality and a less mature one which is designed to further

the 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 of

curriculum change. The nature of the process of curriculum function is not reserved only to the teacher of

history and social studies, but equally it is the obligation of the teacher formulation and task the teacher is

involved in, make it highly imperative that there should be close coordination between the apparently two

distinct 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 the

present. Therefore, science, art, language, and all varied subjects found in a modern curriculum. Next he

must be able to make this knowledge of the present in to the future, because he is guarding his students in a

society always evolving. At the very least, the teacher must understand major trends in contemporary

civilization, and prepare the young to meet adequately the problems they will encounter as they approach

maturity.”The greatest wealth of a country is her children who future development is to a great measure, in

the hand of the nation’s teachers.

Bureau of Curriculum (1962, P.19) has enumerated that: “No formal teacher training organization existed

among the primitive people. The institution of teaching known to history is stated to have started first in

Egypt (21.P.543), while the idea of teacher training originated in France in 1672. The first normal school

was found in 1685 by Abbe de Saile at Rheims (22, P.136). Subsequently, Pestalozzi developed formal

pedagogical methods and Germany adopted numerous between 1872 and 1933 to safeguard the




Vol 3, No.7, 2011

38 | P a g e

www.iiste.org

professional interests of teacher (21, P.544). Other European countries came only gradually to realize the

significance of trained teachers. In England, for example such training dates back to the beginning of the

19th

century when the monitorial system was adopted. It was replaced by the pupil-teacher system by about

1840. There is no denying fact that the teacher occupies the most crucial position in the entire spectrum of

educational activities.

Singh Nagendra (1988, P.1) has enumerated the origin of Teacher Education as under: “Teaching as

a profession is as old as the human race. Though it has been with us for such a along time, the professional

preparation of teacher is probably a little less than two centuries old. It developed gradually and in distinct

stages over these years. The historical forerunner of the training of teacher is the monitorial system which

comes off just accidentally as far back as 1789 at the hand of Rev. and Drew Bell, the superintendent of a

male asylum Anglo-Indian orphan and destitute at Madras. To his pleasant, Bell discovered that in the face

of scarcity of teacher, the older boys of his asylum taught their companions. The ingenuity of Bell was

accepted as a new potential method for eight long years at the asylum and later, on his return to England in

1797, he established a school of his own.”

1.1.1Teacher Education during Pre-Independence

Teacher education was introduced in the indo-pak sub-continent during the British rules. West Pakistan

Bureau of Curriculum (1962, p.7) stated that: “The system of teacher education dates as back as the end of

the first quarter of the nineteenth century when first attempt towards teacher training may be said to here

been made by Dr. Bell who introduced what he called as the monitorial system of teacher education. It

consisted of the advanced pupils teaching their less advanced fellow students in the same class under the

guidance of adult teacher. This system was adopted by the education societies of three Presidencies of

Calcutta, Bombay and Madras. However this system failed to make any headway, as it did not aim at

training in methods of instruction as at improving knowledge of the subject matter. Before long, Wood’s

Dispatch (1854) came which stressed, for the first time an record, the need for a more systemic training of

teachers. It recommended establishment of separate training schools and class for masters very much akin

to the pupil teacher system of England.”

1.1.2Teacher Education after Independence

After partition in 1947, the physical expansion of Primary Teacher Training Institutions has been slow

during the early years of our national independence.

West Pakistan Bureau of Curriculum Lahore (1962, PP.22-23) has described as under:“Among the

varied educational problems at the initial stages, the paucity of teachers training institutions was by no less

phenomena……To start with 3 normal schools for males were opened during 1949-50. A further increase of

8 institutions was made during the next two years which included a Training College at Peshawar for

Secondary school teachers and Department of Education Conference held in Karachi from November 27 to

December 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 Programs

In Pakistan there are different programs of teacher training being offered in colleges/institutions of

education. These institutions impart training to primary school teachers, secondary school teachers and




Vol 3, No.7, 2011

39 | P a g e

www.iiste.org

supervisions.

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 learning

process. The courses are spread 42 weeks. There are minimum 36 working hours in a week. The course

components consist of five academic and six professional courses of equal weight age. It is followed by

practical teaching comprising 32-36 planned lessons and delivered under the guidance of the staff of the

training 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 Education

Farooq (1990, P.16) stated that:

“For quantitative expansion and qualitative improvement of teacher education Allama Iqbal Open

University Islamabad has launched various programs of teacher training through distance education. These

include PTC, P.T.O.C, C.T and B.Ed teacher education programs. The PTC program of Allama Iqbal Open

University is a very popular program among the untrained teachers working in the primary schools of

different parts of the country….. These are not required to leave their schools, and they can easily afford the

training expenses.”

Ministry of Education (1998, P.22) stated that:

“The Allama Iqbal Open University also contributes significantly to the training of teachers by means

of distance learning techniques. Allama Iqbal Open University prepares candidates for PTC, CT and Bed

and in session 1986/87, 4913 PTC teachers were produced by this route.”

1.1.5Problems 0f Teachers Education

Ministry of Education (1998, P.67) stated that:

“Teaching suffers from low status throughout Pakistan, with the possible exception of its perceived

value an employer of women. The status problem is not unique to Pakistan and attempts to resolve it have

usually focused on the twin strategies of raising professional standards of teachers as well as their rewards

and incentives….Whilst alternative employment opportunities remain limited than candidates for teacher

education will continue to come forward but this does not produce a committed and motivated teaching

force.”

.

1.1.6Objectives

Objectives 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.




Vol 3, No.7, 2011

40 | P a g e

www.iiste.org

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

The D reasonable.

42 35 21 20 32 24.16

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

You were nominated for subject related training.

53 34 24 20 19 26.6

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

training.

22 36 29 32 31 3.49

8 The resource persons applied the result oriented teaching

methods.

The

32 44 18 27 29 11.76

9 1. The instructional technology items were pro

provided regularly during training.

20 26 25 49 30 16.6

10 2. The relevant A.v.aids was used in training. .. 29 36 11 48 26 24.56

11

The emerging educational technology training was given to

you in training

16

27

14

46

47

33.4

12 Emerging educational technology related

materials were provided to you.

11 28 20 39 52 31.32

13 Resource Persons were expert to operate the E.T

The

47 32 11 36 24 24.16

14 The emerging educational technology was he

helpful for professional development.

.

42 35 21 20 32 24.16

15 The Educational Technology models were

Properly used in training.

20 26 25 49 30 16.6

16 Teaching of instructors was according to you your

professional dvelopment.

39 30 31 29 21 5.46




Vol 3, No.7, 2011

41 | P a g e

www.iiste.org

17 The training situation can be improved by using

Du educational technology.

40

42 16 26 26 15.63

18 The course coordinator behavior was democratic in training.

The.

39 30 31 29 21 5.46

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

21

Instructors were capable for that training.

.

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


1

Director Education decides the organization of

in-service teachers training programmed.

36 28 30 35 21 4.86

2 You nominate the teachers for in-service

training. .

49 35 10 36 20 30.72

3 Any need analysis of teachers was made before

nomination. .

37 49 7 41 24 28.46

4 You faced administrative problems after

relieving teachers for in-service

training.

29 36 11 48 26 24.56

5 You have substitute teachers after relieving

teachers for training.

16 42 18 39 35 19.6

6 You assess professional weakness before the

training.

11 28 20 39 52 31.32

7 The ability should be considered, while

nomination of the teachers for training.

29 36 11 48 26 24.56

8

You evaluate teacher’s performance after

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

training.

37 41 7 41 24 28.46

11

Any positive change was observed by the

follow-up study.

24 38 16 43 29

15.43

12 Trained t Trained teachers apply any educational activites.

technology model in teaching activities.

48 37 13 29 23 22.8

13 The in-service training should be be 42 35 21 20 32 24.16




Vol 3, No.7, 2011

42 | P a g e

www.iiste.org

org organized during the vacation.

14

Training institutions should be well equipped. 53 34 24 20 19 26.6

15 The emerging educational technology was

helpful for professional development. .

49 35 10 36 20 30.72

3. Total of 2 = 356.01


23.73


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


1 Your nomination was made by considering the needs

of master training.

22 26 13 18 1 23.37

2 Master training schedule was properly followed. 28 42 1 9 - 60.46

3 The result oriented teaching methods were used in

your master training.

10 18 11 29 12 6.06

4 A.v.aids was provided during your master training . 1 3 6 49 19 100.49

5 The e Th The emerging educational technologies wasused

used in master training .

4 8 2 48 18 89.5

6 The emerging educational technology is helpful for

professional development.

11 3 6 49 19 100.49

7 In-service trainees were nominated on merit. 38 27 8 7 - 62.87

8 They asked questions during training.

The T

4 8 2 48 18 89.5

9 You a You apply educational technology during in-ser

teachers training.

9 31 8 20 12 23.12

10 You teach the operational skills of educational

technology to trainee teachers.

12 16 28 19 5 18.12

11

You apply educational technology model during

training.

1 3 6

49

19

100.49

12 You teach them, how to develop the educational

technology model.

Th

15 23 4 33 4 40.12

13 The emerging educational technology was helpful

for professional development.

38 27 8 7 - 62.87

14 The in-service training should be organized during

the vacations.

38 27 8 7 - 62.87

15 Your training was evaluated.

28 42 1 9 - 60.46




Vol 3, No.7, 2011

43 | P a g e

www.iiste.org

Total of x2=

900.79


60.05


P (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.




Vol 3, No.7, 2011

44 | P a g e

www.iiste.org

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.

References

Abbasi, M.H.(1995) Teacher Education in Pakistan (country paper) Islamic

Republic of Pakistan.

Bhatti,M.A & et al(1994)EPM study Guide Allama Iqbal Open University

Islamabad 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 in

Pakistan.Ministry of education, Islamabad.

Gay L.R (1999) Educational Research, Fifth Edition, NBF 2nd

Reprint, Pakistan, Fine Books Printer Lahore

Govt 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 Islamabad

pakistan.

Singh,N.(1988) Modernization of Teachers Education common Wealth Publisher New Delhi.

.




Vol 3, No.7, 2011

45 | P a g e

www.iiste.org

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: [email protected]

A. K. M. Tafzal Haque

Department of Management Studies, University of Chittagong

Chittagong – 4331,Bangladesh


Shanta Banik (Corresponding Author)

Department of Marketing Studies & International Marketing, University of Chittagong

Chittagong – 4331, Bangladesh.




Published: 2011-11-04

Abstract

Eco-labeling is a marketing strategy that comes from inclined environmental awareness in the global

climate change. The study followed a theoretical framework developed by Oyewole (2001) conceptual

relation among industrial ecology; green marketing and environmental justice make it clear how eco-label

through green marketing can be a tool to ensure equity in different socio-economic and environmental

perspective. The study was conducted in five super markets. The key information was collected through

observations and depth interview from consumers and service providers. The study identified that the new

eco-products formed new “green market”. It is observed that the green market appears to be real and

growing. The study revealed that health and environmental concerns are main reasons why people become

aware of eco-labeled products. The survey data evidenced that 17 percent of consumer read labels to see if

products were environmentally safe, 11 percent sort out products and packaging made form recycled

materials and 7 percent said they had boycotted a company that was careless about the environment. The

study pointed out that there is a gap between policy and practices in eco labeling. The study recommends

some suggestions to make the success of eco-labeling in green marketing perspective such as creation of

awareness among the consumers, voluntary initiatives in environmentalism and consumerism,

environmental appeals in advertising, practice of environmental protection law, integration between

environmental justice and eco-system services in eco-labeling program etc.







Vol 3, No.7, 2011

46 | P a g e

www.iiste.org

Keywords: Eco-Labeling, Environmental Justices, Ecosystem Resources, Green marketing, Green

Consumerism.

1. Introduction

The concept of eco-labeling has been emerged in response to global environmentalism movement.

Environmentalism is a social movement of concerned citizens and government seeking to

minimize the harm done to the environment and quality of life by conventional marketing

practices. It calls for curbing consumer wants when their satisfaction would create too

much environmental cost ( Kotler & Armstrong, 2008). Thus eco - labeling can be seen as a

representation of the need to de-regulate environmental protection by allowing industry to

make the decision of whether or not to apply to the label and allowing consumers to

decide to shop accordingly ( Gertz , 2006 ) . Eco labeling is one of the initiative that

stated several decades ago in order to mitigate environmental impacts by promotion

of environmentally friendly products ( Zaman et. Al. 2010 ) Literature survey suggests that

green market is growing with green products and it needs consumer’s green needs,

ecological and societal performance too . Apparently eco- labeling can also enhance

corporate and brand image, save money and open new market for products calling to

consumer’s need to maintain a high quality of life. Marketing activities without

environmental consideration can cause serious environmental damages that impair the

quality of life of present and future generations ( Panwar,2002) Thus, eco-labelling is a

sort of environmental quality certification. It is generally agreed that the eco- labeling

is a marquee of environmental quality . This evidence may motivate consumers to pay

higher price for eco- labeled products . In summary , the literature review suggests that there

is a gap between policy and practices of eco- labeling strategies in developing countries, in

general and in Bangladesh in particular. It is this context that we investigate in this paper.

2. Methodology

The study followed a theoretical framework developed by Oyewole (2001) conceptual

relation among environmental justice, industrial ecology and green marketing make it clear how

eco-label through green marketing can be a tool to ensure equity in different

socio-economic and environmental perspective. The study was conducted in five super markets in

order to know the practice of eco-labeling in Bangladesh. These markets have been selected purposively

for research purpose. The exploratory research design has been used in the present research work. The

sample respondents are 100 and these samples have been selected based on purposive sampling technique.

The key information was collected through observations and depth interview from

consumers and service providers. Necessary supporting data were collected from

policymakers, environmental and consumer groups, NGOs, private sector through questionnaire

survey. Secondary data have been used in support of questionnaire survey and other sources of data for the

research purpose.

3. Environmental Justice

Environmental justice has been defined as the pursuit of equal justice without

discrimination based on race, ethnicity, and/ or socio-economic status concerning both the

enforcement of existing environmental laws, regulations and the reformation of public

health policy (Chavis, 1993). It is the equal protection and meaningful involvement of all

people with respect to the development , implementation and enforcement of

environmental laws, regulations, policies and the equitable distributions of environmental

benefits ( Zaman et.al. (2010). Against this background , the relevant data and information have

been collected and presented in the following captions :




Vol 3, No.7, 2011

47 | P a g e

www.iiste.org

3.1Protection of Environment: The role of Government

There are various government and non-government organizations/ agencies which have

been working to protect living environment of the people of the country . Table 1

in appendix shows government agencies and their strategies for protection of environment

in the country. These agencies are working directly / indirectly to protect environment of Bangladesh. The

main aspects of the government policies are (i) issuing no certificate of a new company

without environment protection program in their plant designing and operating before establishing

new industry (ii) establishing standard for effluent control (iii) restriction to produce and

sale environmentally harmful products. Again , government made classification of all

industrial 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). It

appears that there agencies, policies and strategies are contributing to make the entrepreneurs, industrialists

and 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 of

NGOs 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 of

environment related activities such as toxic waste disposal, environmental education and

awareness, environment and disaster management, training in environmental issues of the

target groups. The important NGOs are IUCN, CARE, RDRS, CARITAS, BRAC, PROSHIKA etc. A

number of donors have initiated assessment of environmental programs, activities and

incorporating the outcome of the assessment in their development, planning, policies,

programs and strategies. These organizations are DANIDA, NORAD, USAID, CIDA, UNDP etc. The

literature review suggests that a good number of NGOs and donor agencies are playing

important role to protect natural environment and to develop environmental friendly green

business in Bangladesh. Thus, it creates demand of eco-labeling products in market and eco- label based

market segment in gradually growing on day by day in study areas.

3.3 Protection of Environment: The Role of Media

In creating consumer awareness, the media is playing an important role in

Bangladesh. They are publishing environmental events in such way so that it can

enter in the minds of people. Thus, people are emerging as a environmental conscious

citizen and gradually they are converting green consumers. Besides, special issues,

supplements, brochures, newsletters etc. are used as instrumental tools in the creating of voluntary pressure

group for social awareness through incorporating different social groups, religious groups, civic society as a

stakeholder of environmental groups. As a result, environmentalism as well as green

consumerism movement growing on day by day in Bangladesh. Thus, the demand of

eco-label based product is increasing and it creates differentiated market in competitive business

environment with competitive advantages.

3.4 Protection of Environment: The Role of Civil Society

The marketing operations takes place in a society to serve the need of its

members, and its success is closely related with the patronization of the members of a

society (Islam,1998) A social movement under the leadership of Bangladesh civil society

can motivate consumers to consume environment friendly product which would create

opportunity for green product and improve quality of life. (Hoque,2000) In addition , the




Vol 3, No.7, 2011

48 | P a g e

www.iiste.org

member of the civil society can play a leading role to build- up the necessary

social movement in this regard. Thus, deep ecological movement is an important and

effective instrument in creating social awareness about adverse impact environment

pollution and motivate entrepreneurs to start, organize and manage green business as well as green

products.

4. Eco- System Services

The greening of marketing will not take place until consumers and producers recognize

the imminent ecological crisis. Such marketing institutions would produce more ecologically

benign products, develop modes of promotion that do not encourage ecologically as well as

develop mode of marketing distribution that minimize ecological impact on both

environment 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 proper

ecosystem management. The impact of environment on eco system management services may be outlined

as follows:

4.1 Pollution

Environmental pollution is the act of introducing into the environment some

extraneous substances or energy that may result in unfavorable changes. The pollution

can cause health, economic, and ecological problems. The causes of environment pollution are

many 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 water

and some industries may cause noise pollution too.

4.2 Depletion

Depletion of natural resources is a fundamental challenge to quality of environment

in Bangladesh. Technological innovations have created substitutes for many commonly

used non- renewable resources e.g. Optical fiber now replaces copper wire. It appears that the

greatest threat to ecosystem resources management is depletion of the renewable resources

of Bangladesh. Further, the problem of ozone depletion due to use of CFCs is also

threatening for the purpose of ecosystem management of the country.

4.3 Poverty

Poverty can be both cause and effect of environmental degradation . The poor can

not 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 per

day searching for fuel wood and sometimes waiting a day for procuring drinking as

well as bath water. Marginalization of small farmers, continuation of landlessness for flood

and exploitation of female and male poor labor are common phenomena of a

developing country like Bangladesh. Thus poverty alleviation object may be high agenda

in order to protect living environment and ensure ecosystem management .

5. Green Marketing




Vol 3, No.7, 2011

49 | P a g e

www.iiste.org

The concept of ‘ green marketing’ is the business practice that considers consumers

concerns with regards to preservation and conservation of the natural environment

( Coddington,1993) . Since the late 1980’s marketers have been responding to consumer

concern about the natural environment by making a variety of environmental appeals

in the marketing policies and strategies. For consumers, being green involves a lifestyle

that has a minimal adverse environmental effects on the consumer is faced with a

variety of consumption choices . Thus, green marketing that has been previously and

primarily focused on the ecological context has been shifted more sustainability issues in

the marketing efforts and main focus now is in socio- economic and environmental

context( Zaman et.al.2010). In fact, environmentalists make a distinction between deep ecology

and shallow ecology depending on the degree of environmental concern demonstrated

by 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 the

following manner:

5.1 Eco-Labelling Products

Industrialists of Bangladesh have been responding to consumer concern about the

better living environment by producing eco-friendly product, for example, “Revit and

Colman’ a company in Bangladesh has declared its products- ‘ Mortein Aerosol’ is

environmentally friendly and chlorofluorocarbon free (CFC). Marketers of Bangladesh are

also becoming amore aware of environmental issues as it opens up new business

opportunity for innovative and dynamic enterprises (Solaiman & Akteruzzaman,2001) Against

this background, we were interested to know from the sample respondents regarding

eco-labeled products. Table -2 in Appendix depicts the opinions expressed by the sample

respondents in this regard. Table-2 reveals that 41 percent sample respondents read

labels, 27 percent respondents read labels sometimes, 25 percent respondents never read

labels of products and 7 percent respondents have no comment on issue. The survey

data agree that the majority consumers are concerned about the environmental impact

of what they buy ? An overwhelming majority may believe that pollution is a serious problem and

getting worse day by day. In such a context, service providers may modify their existing

procurement policy and giving preference on eco-labeled products for their costly shelf

of super market for achieving two folds objectives e.g. maximization of profits and

customer satisfaction too.

5.2 Environmental Quality of Package

Consumers are getting maximum product information from packaging. Literature review suggest that

52 percent of consumers learn about products environmental attributes from product

packaging ( Wasik,1997) . Further, data were collected about environmental qualities of packages. Table 3

in appendix depicts that 68 percent sample respondents prefer bio- degradable and ozone

safe packaging and 19 percent in favor of rational packaging system . Only 10 percent

surveyed consumers did not make any comment. Apparently , developing environmentally friendly

products, industrialists not only provides an opportunity to do the right things, but it also

can enhance corporate and brand image, save money; and open new green markets for

green products creating to consumers needs to maintain a high quality life.

5.3 Pricing of Eco-Labeled Products

Research indicates that consumers are concerned enough to consider paying more for

environmentally friendly products ( Solaiman ,2005) .Data were collected from sample




Vol 3, No.7, 2011

50 | P a g e

www.iiste.org

consumers and presented in Table-4 in appendix regarding price of eco- labeled

products. Table-4 portrays that 43 percent of sample respondents expressed their

willingness to pay 5 per cent addition price for eco-labeled products. The survey data

show that 21 per cent, 18 per cent, 12 per cent, and 6 percent consumers are ready to spent 10

per cent , 15 percent, 20 percent, and above 20 percent additional money for eco- labeled

products. It appears that producers who do not take programs which are environment

friendly will be penalized in the competitive green market. Their products will lose

value 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 and

strategies of environmental protection.

6. Conclusion

People live on nature and its resources, but the resource endowments of nature are

limited. Thus, protection of environment may be ensured by using green marketing tools

such 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 through

environmentalism and green consumerism movement. Apparently , the success of eco-labeling

scheme depends to a great extent on integration among environmental justice, ecosystem

resource management and green marketing.

Appendix

Table 1: Government Agencies and Strategies for protection of

Environment

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

Do not read labels

41

25

41%

25%




Vol 3, No.7, 2011

51 | P a g e

www.iiste.org

Sometimes read labels

No comment

27

7

27%

7%

Total 100 100%

{Source: Consumer Survey}

Table- 3: Environmental Qualities of Packaging

Attribute Number of Sample

Respondents

Frequency in percentage

Bio- degradeable package

Traditional package

No comment

68

19

13

68%

19%

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

5 percent to 10 percent



20 percent and above

43

21

18

12

6

43%

21%

18%

12%

6%

Total 100 100%

[Source: Personal Interview ]

References

Chavis, Bf Jr (1993) , “ Superfund : The need for Environmental Justices, Equal protection and

the environment testimony before the committee on government, U.S. House of

Representative, National Association for the Advanced colored people. Bangladesh Gazette

Supplementary (1997), 3115

Chee, Y.E (2004)” An ecological perspective on the valuation of Eco-system resources” Biological

Conservation, 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-85

Hoque, Tafazal, A.K.M (2000)”Green musieries as a competitive advantage for South Asia: Opportunity




Vol 3, No.7, 2011

52 | P a g e

www.iiste.org

and Challenges in Bangladesh perspective” South Asia Journal of Management, p 486

Kotler, 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 and

Strategies”, South Asian Journal of Management, April, pp.15-17.

Solaiman, Mohammod (2005), Green Marketing, Chittagong: Star Publication

Solaiman, Mohammod et.at.(1999),”Environmental marketing: The Bangladesh Perspective “,South Asian

Journal 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’s

Behavior on Selected Eco and Fair Trade Labeling in Sweden, Journal of Ecology and the Natural

Environment, Vol. 2, No.6. p 105.




Vol 3, No.7, 2011

53 | P a g e

www.iiste.org

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

[email protected]

Hazoor Muhammad Sabir



[email protected]

Nadeem Sohail

College of Commerce


[email protected]

Raheel Mumtaz


Air University, Islamabad, Pakistan

[email protected]




Abstract

The paper aims to investigate the relationship between corporate entrepreneurship and organizational

learning capability. A survey method was undertaken to collect data from 240 middle level managers

working in textile industry through convenience sampling method. Results indicate a positive and

significant relationship between variables. Practical implications of the study are that if any organization

which 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 for

entrepreneurship.

Key Words: Corporate entrepreneurship, Organizational Learning Capability, Textile Sector, Pakistan.

Introduction

At present, the intense competition in business environment has alerted the companies to monitor their

competitors on continuously. As, the technological revolution in business world has changed the way of

interacting with customers and boost growth in some industries but on the other hand damage badly some








Vol 3, No.7, 2011

54 | P a g e

www.iiste.org

businesses also. In this situation, any firm that do not focus on continues development, adapting, and

acquiring of innovative technological advances in this changing environment my not be able to sustain on

long term basis. The management strategic decisions play a vital role for organizational effectiveness in this

scenario (Merrifield1993). Globalization of business is creating substantial changes through out the world.

This phenomenon has changed the markets trends, customers’ preferences, competitors and style of

management also. Kemelgor (2002) emphasizes that stagnation in business environment shrink the market

share or permanent and quick failure. In such kind of turbulent environment, an organization must be

innovative 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 cope

up all challenges facing today. These challenges emphasize the need for businesses to respond in more

entrepreneurial way (Brazel & Herbert, 1999). A good number of companies are now fostering

entrepreneurship and developing new looms for innovation so that to generate new businesses opportunities

and maximize profit. Innovation, profitable growth, and continuous growth of business are the spirit of

entrepreneurship (Drucker, 1985; Khandwalla, 1987; Lumpkin & Dess 1996). The main aim for

entrepreneurship is identify the factors which emerge customer dissatisfaction and adopt new ways to

remove 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 get

advantage of the competitors to offer distinct goods and services to different customers according to their

preferences.

According to Stevenson et al., (1989) Corporate Entrepreneurship (CE) is a phenomenon which helps

business managers to identify new opportunities for business without looking the resources they have

presently. It is vital for an entrepreneurial manager to articulate emerging technological knowledge to solve

the customers’ problems according to market trends and needs. By doing this, he will be able to give a new

birth to the business and transform business ideas into reality (Guth & Ginsberg, 1990). Empirically

researchers explain the characteristics of corporate entrepreneurship as organizational activities that

discover and pursue new business opportunities through innovation, venture, and renewal (Ling et

al., 2008).

Previously, various researchers have estimated the relationship between organization learning capabilities

and innovation (Calantone et al., 2002) but not found any positive relationship. This study has the objective

to fill the gap by working on organizational learning capability, organizational innovation and corporate

entrepreneurship.

The major purpose of this study is identifying the relationship between corporate entrepreneurship and

organizational learning capability. This study is helpful to understand this phenomenon in Pakistani culture

and has significant contribution in corporate entrepreneurship literature. Although this area has widely

explored across the cultures but still have a lot potential to be explored. This research has very useful

implication in Pakistani corporations, especially for manger to cope up existing challenges in the industry

and increase corporate growth. Entrepreneurial manager will understand how organizational learning

capabilities them to make organization more innovative and customers focus oriented. Literature Review

Organizational learning capability is an important factor that has been getting increasing importance for

academia and business people Organizational learning capability is characterized as organizational and

managerial factors which make an organizational process and organization to learn more effectively (Yeung

et al., 1999). Basic learning skills for any organizations based experiments and new ideas ( Koc & Ceylan,


http://onlinelibrary.wiley.com/doi/10.1002/sej.108/full#bib66



Vol 3, No.7, 2011

55 | P a g e

www.iiste.org

2006). Coalitions, technology transfer and agreements with universities about research and development

might 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 with

uncertainty, ambiguity, and errors (Chiva & Alegre, 2009). Failure has been considered as the most

effective tool for organizational learning (Sitkin 1996). Dialogue and participative decision making makes

employees 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 and

Chiva, 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, production

procedure or technology and management strategy (García-Morales et al., 2007).

Corporate entrepreneurship can be defined as the process which helps organizations to capture

opportunities and manage the factor of production in more efficient way (Jones & Butler 1992). This

process may found in any organization at any level and area (Schindehutte et al., 2000). Corporate

entrepreneurship has multiple dimensions like process innovation, strategic renewal, product and services

innovation, pro activeness, risk taking and organizational innovation. Generally corporate entrepreneurship

is considered an important factor for organizational performance (Pinchot 1985). Empirically, it has been

investigated 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 capability

Theoretical Framework

Independent Variable Dependent Variable

Research Design

Sample and Procedure

This study was cross – sectional. The target population was composed of middle level managers from

textile sector in Pakistan. Data was collected through survey method. This study reveals 240 valid

questionnaires. 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 Constructs

Corporate entrepreneurship was measured by using a scale developed by Zahra et al., (2000). Scale

reliability is 0.77 which is greater than 0.7 (Nunnally, 1978). A 14 items scale to measure the organizational

learning capability composed by Alegre and Chiva (2008) was used. A 7 point Likert scale was used

ranging from 1 to 7. 1 represented total disagreement and 7 total agreements. Cronbach’s alpha was

employed to asses the reliability which was 0.79. That was above from 0.7 (Nunnally, 1978).

Corporate

Entrepreneurship Organizational Learning Capability

•




Vol 3, No.7, 2011

56 | P a g e

www.iiste.org

Results

Correlation and Regression Analysis

Correlation matrix shows that corporate entrepreneurship has positive and significant relationship with

organizational learning capability. As for regression analysis, it explains the intensity of relationship

between variables. Regression analysis explains that Corporate entrepreneurship as a predictors, has 0.484

(R2 = 0.225) and the adjusted R

2 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 are

supporting the developed hypothesis. So on the basis of these results the H0 is accepted.

Conclusion

The major purpose of this study was to investigate the relationship between corporate entrepreneurship and

organizational capability. Environment of any organization has influence of organizational learning

capability. 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 that

experimentation also enhance the learning capability. So it is clear that corporate entrepreneurship has the

positive influence on organizational learning capability. Organizations and managers which promote

innovation, risk taking tendency, and believe on experimentation can learn more and get advantage over

competitors. So the findings of this research have much use for implication for managers working in textile

sector in Pakistan specifically and all industry generally. If any organization want to get competitor

advantage over competitor than it has to think in different way. Focus on more and more research and

development take risk and introduce innovative product and services in the market. This study has

numerous limitations. First, this study was cross sectional in nature. Second, this study was on textile sector

so the result can be generalized in different sectors. This study has geographical limitation also as this study

was conducted in Faisalabad, so the data was collected on from one city. Future study must work on these

limitations and some other factors like culture of the organization take into account.

References

Alegre J, Chiva R (2008). Assessing the impact of organizational learning capability on product innovation

performance: An empirical test. Technovation ,28, 315–326.

Calantone, R. J., & Cavusgil, T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and

firm performance. Ind. Mark. Manage. 31, 515–524.

Chipika, S., & Wilson, G. (2006). Enabling technological learning among light engineering SMEs in

Zimbabwe through networking. Technovation, 26 (8), 969–979.

Chiva, R., & Alegre, J. (2009). Organizational Learning Capability and Job Satisfaction: an Empirical

Assessment 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). Employee

participation: 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.




Vol 3, No.7, 2011

57 | P a g e

www.iiste.org

Garcia-Morales, V.J., Llorens-Montes, F. J., & Verdu-Jover, A. J. (2007). Influence of personal mastery on

organizational 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: Corporate

Entrepreneurship. 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 theory

perspective. 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 selected

firms 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 leadership's role in

promoting corporate entrepreneurship: examining the CEO-TMT interface. Academy of Management

Journal, 51(3), 557–576.

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the enterprenural orientation, construct and linking it to

performance. 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. Nanyang

Business Review, 2(2), 21-38.

Scott, S. G., Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual

innovation in the workplace. Academy of Management Review, 37, 580–607.

Schindehutte, M., Morris, M. H., & Kuratko, D. (2000). Triggering events, corporate entrepreneurship and

marketing 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.


http://www.sbaer.uca.edu/docs/proceedings



Vol 3, No.7, 2011

58 | P a g e

www.iiste.org

Yeung, 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, and

competence development. Entrepreneurship Theory and Practice 23,169–189.

Table - 1

Correlation Matrix

Organizational Learning

Capability

Corporate Entrepreneurship

Organizational Learning

Capability

1 .430(**)

Corporate Entrepreneurship .430(**) 1

** Correlation is significant at the 0.01 level (2-tailed).

Table - 1

Regression Analysis

Model B Std. Error Beta t Sig.

Constant 1.424 .123 10.796 .000

Corporate Entrepreneurship .062 .4895 9.686 .000

Model Fitness (R2= 0.225; Adjusted R

2 = 0. .220) F = 68.52

0.000

** Correlation is significant at the 0.01 level (2-tailed).




Vol 3, No.7, 2011

59 | P a g e

www.iiste.org

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: [email protected]

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: [email protected] / [email protected]




Abstract

In recent years, rapid spread of mobile phones use in the developing countries is as a consequence of

the introduction of prepaid cards and the fallen prices of mobile handsets. One of such uses is the use

of mobile phones in financial services industry. This study investigates the key factors that influence

the Ghanaian consumers’ acceptance and use of mobile money transfer technology using key

constructs 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 the

relationship between the constructs. The results were consistent with the key TAM and DoI constructs.

Keywords: Technology Acceptance Model, Adoption, Mobile Money Transfer Technology, Diffusion

of Innovation theory, Ghana.

1. Introduction

The introduction of prepaid cards and the fallen prices of mobile handsets have lead to a rapid spread

of mobile phones in the developing countries (Orozco et al., 2007). This has opened up diverse

opportunities for it to be used over and above voice communication. At the centre of this experience

which comes from the convergence of advanced mobile communication technologies and the ability to use it for data services is mobile money transfer. There are currently over 2 billion mobile phone users






Vol 3, No.7, 2011

60 | P a g e

www.iiste.org

and 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 the

electronic payment and banking industry referred to as Mobile Money. Even though mobile money has

not been well defined in literature it can be said to include all the various initiatives (long-distance

remittance, micro-payments, and informal air-time battering schemes) aimed at bringing financial

services to the unbanked using mobile technology. However, Mobile Money can be defined as money

that can be accessed and used via mobile phone (Jenkins, 2008). Mobile Network Operators (MNO) in

most developing countries are at different stages of MMT implementations. Notably among the

developing 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 similar

implementations in Philippines, South Africa and Ghana have not enjoyed similar success.1 Thus, this

paper seeks to explore the key factors that affect consumer behavior towards the adoption and use of

MMT 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 broader

scope of m-commerce (Dai and Palvia, 2008) although not quite exhaustive have enjoyed significant

attention 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 understand

users’ acceptance of mobile Money and to identify the factors affecting their intentions to use mobile

Money. This information can assist MNOs and service providers of mobile Money systems in creating

services that consumers want to use, or help them discover why potential users avoid using the

existing system. Hence, the main objective of this paper is to develop a model that tries to predict the

factors that affect consumer behavior towards the adoption of Mobile Money transfer in Ghana. What

are the key determinants of user acceptance of mobile money transfer?

To answer this question a theoretical model is developed by combining aspects of Technology

Acceptance Model (TAM) (Perceived Usefulness (PU), Perceived Ease of Use (PEOU)), Diffusion of

Innovation theory (DoI) (Relative Advantage (RA), Trialability) with additional constructs, Perceived

Trust (PT) and Perceived Risk (PR), and empirically tested its ability in predicting user behavioral

intention of Mobile Money. We analyzed the data using Structured Equation Model (SEM) to

evaluate the strength of the relationship between the constructs. The results provide support of an

extended TAM model with PU, PEOU, PR, PT, and Trialability as key determinants in predicting

customers' intention of adoption and use of mobile money.

1.1 Mobile Money Transfer Technology Many business transactions including cross country transactions are being conducted on mobile

phones daily. The two fundamental attributes of the mobile phone which has lead to its flourished

usage are mobility and immediate access (Leung and Wei, 2000). It was believed that electronic

money will displace paper money and face-to-face transaction. This has not materialized yet. Will

mobile money replace the need for cash? To answer this question we will need to understand the

extent to which users are prepared to accept the electronic money as a means of exchange (Mas and

Kumar, 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 transfer

technology is the most popular means of money transfer (i.e., sending domestic remittance to family

members, relatives and friends). Ghana, like most developing countries has a great number of

households that depend on domestic remittance. An increase in urbanization in city centers and

constant migration in Ghana means that the need for money transfer services have been quite

1 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.




Vol 3, No.7, 2011

61 | P a g e

www.iiste.org

significant. Informal methods of remitting funds within Ghana to families and relatives are quite

established with diverse difficulties and challenges. One of the key factors in the choice of remittance

services everywhere is accessibility. Until recently, the main methods of remittance in Ghana have

been through the “Bus Driver”.3 Other informal methods were using visiting family and friends or

travelling long distances to remit the funds whenever necessary. Thefts, armed robbery and accidents

are 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 3

presents 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 6

provides the concluding remarks.

2. Theoretical Framework

2.1 Background Information on the Theoretical Framework In Information Systems literature, Roger’s (1995) diffusion of innovation theory (DoI), Davies’ (1989)

technology acceptance model (TAM), the extended technology acceptance model (Davis 1989), the

theory 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 possible

consumer behaviour with respect to adoption and acceptance patterns of new technologies and

innovations. Several researchers have sought to develop constructs that affect consumers’ behaviour

when deciding on the adoption of mobile services by applying these existing information system

theories and models (Wu and Wang, 2005; Hung et al., 2004). Studies on mobile services have shown

that the application of the above information system theories and models have extended to valued

added mobile services (e.g., Carlsson et al., 2006; Chen, 2008). The most applied, tested and refined

model 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 that

the contracts, perceived usefulness and perceived ease of use are fundamental determinants of system

adoption and use (Davis, 1989). These two beliefs create a favorable disposition or intention toward

using the IT that consequently affects its use. Perceived Usefulness (PU) is said to be the degree to

which a person thinks that using a particular system will enhance his or her performance. Whereas

Perceived Ease of Use (PEOU) is “the degree to which a person believes that using a particular system

will be free of effort”(Davis, 1989). TAM has received praises from earlier researchers on its

contribution 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 to

understand 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 behaviour

towards new technology is the Rogers’ Innovation Diffusion Theory (Rogers, 1995). Innovation is

defined 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 to

send their remittances for them. If accepted by the bus driver, the remittance gets to the family within hours.




Vol 3, No.7, 2011

62 | P a g e

www.iiste.org

By these definitions, innovation diffusion is achieved by how a social system accepts and begins to

use (adopt) an idea or a technology. Roger further states that the following are the characteristics of

any innovation: Relative Advantage: the degree to which the innovation is perceived as being better

than the practice it supersedes; Compatibility: the extent to which adopting the innovation is

compatible with what people do; Complexity: the degree to which an innovation is perceived as

relatively difficult to understand and use; Trialability: the degree to which an innovation may be

experimented with on a limited basis before making an adoption (or rejection) decision; and

Observability: 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 Technology

The various terms that relate to the use of mobile phones to access, store, and transfer or linked to an

account; mobile banking (mobile banking), mobile payments (m-payment), mobile money transfer and

mobile microfinance are collectively referred to as Mobile Money (MM) in this study. Research on

adoption 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-payment

environment should be applicable to mobile money. TAM and DOI are considered to be extremely

similar in some constructs and supplement one another (Wu and Wang, 2005). Some similarities can

be drawn between RA and PU; Complexity and PEOU to the extent that some researchers identifies

the 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 MM

adoption. Also, complexity and PEOU is considered to be too similar to be separated in this study.

3.1 Research Model and Hypothesis

Figure 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 Innovation

Theory (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 are

identified as antecedents of Perceived Trust




Vol 3, No.7, 2011

63 | P a g e

www.iiste.org

Figure 1: Research Model

Perceived Usefulness: PU is said to be the degree to which a person thinks that using a particular

system will enhance his or her performance. Whereas the initial definition stated was about the

usefulness in performing a job function, PU in the adoption of mobile services is defined in a broader

context to include how well consumers believes mobile services can be integrated into their daily

activities (Kleijnen et al., 2004). And in a mobile payment context it can also be defined as the degree to

which the consumer believes that the MM transfer will enhance his transaction (Chen, 2008). When this

belief increases, the consumer’s intention to use the MM transfer services will also increase. In

consumer behavior analysis PU has been well tested as a determinant for a consumer’s intention to use

mobile services. Also, the extent to which a consumer finds the MM transfer useful may depend on the

RA of the service. If the mobility and easier accessibility characteristics of mobile services leads to a

consumer belief that the MM transfer is better than its predecessors (other money transfer services) then

that will affect its perceived usefulness. The ultimate reason people exploit MM transfer is that they

find 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 particular

system will be free of effort” (Davis, 1989). In MM transfer, it includes registration procedures, ease of

use of the payment procedure, easy access to customer services, minimal steps required to make a

payment, appropriate screen size and input capabilities. Also, the availability of the MM transfer agents

will increase the PEOU. Furthermore, it should be accessible on mobile phones with the most basic

features and software. Previous studies have concluded that PEOU is a key determinant to consumer behavioral intentions (e.g., Venkatesh and Davis, 2000). In order to prevent the ‘‘under-used’’ system

problem, MM transfer must be both easy to learn and easy to use (Luarn and Lin, 2004). And also the

PU

Reliab

PEOU

PR

PT

BI

TC

PP

Trail

RA




Vol 3, No.7, 2011

64 | P a g e

www.iiste.org

original 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 Usefulness

H4: 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 an

element 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 that

the service will be provided with minimum possible hindrance. Research revealed that trust in mobile

commerce can be differentiated into two categories: trust in mobile technology and trust in mobile

vendors (Siau and Shen, 2003). The existence of local agents who are well integrated into the

communities will be necessary for this level of trust to be obtained. Users would expect some level of

privacy from the agents. In addition, overall network and service perceived reliability affect

consumer’s perceived trust in the service. The reliability can be measured by the successful utilization

of the service over a period of time with little or no interference. Consumers need to have a belief that

the network is reliable. Previous studies have found perceived trust as a significant determinant

influencing consumers’ behavior intention towards electronic commerce transactions (Mallat, 2007).

Although, PEOU has been identified as an antecedent to perceived trust in prior e-commerce adoption

research, this was seen as not applicable to MM transfer (Gu et al, 2009). The complexity of using the

MM 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 is

expected to have a direct effect on behavioural intentions.

H5: Higher Perceived Trust will lead to a higher behavioral intention to use MM

H6: Higher Reliability will lead to a higher Perceived Trust

H7: Higher Privacy will lead to a higher Perceived Trust

Perceived Risk: A consumer’s perceived risk was identified by the selected consumers and MM

professionals interviewed as a significant barrier for MM transactions. Perceived Risk is defined as a

consumer’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 their

subjective risk perception strongly determines their behavior (Bauer et al., 2005). Thus, reducing

uncertainty has been found to have a positive influence on consumers’ intention to adopt electronic

transactional systems (Chen, 2008).

H8: The higher the Perceived Risk will lead to a negative influence on behavioral intention to use

MM.

Transactional Cost: TC includes transaction price, registration fee, or cost of a new device if one

is needed to use the service. Consumers interviewed confirmed that transactional cost can influence

their behaviour intention to use the MM transfer services. Given that the original TAM was developed

in an organizational context, the transactional cost of using technology was not considered as a

relevant 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 use

MM

Trialability: the degree to which an innovation may be experimented with on a limited basis

before making an adoption (or rejection) decision (Agarwal and Prasad, 1997). Thus, the adoption of

MM transfer is more likely if the technology is demonstrated to the user or if it can be used on a

free-at-first-use. Past research argue that earlier adopters of an innovation perceive trialability as more

important than do later adopters. More innovative individuals have no precedent to follow when they

adopt, 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 trial the service for free.




Vol 3, No.7, 2011

65 | P a g e

www.iiste.org

H10: The greater the trialability of MM transfers service, the higher the influence on users behavioural

intention to it.

3.2 Research Methodology This study aims to predict the consumer behavior and intention to adopt Mobile Money Transfer

services in Ghana by extending the TAM and DOI models with two extra constructs. The introduction

of MMT services in Ghana has not enjoyed the successes experienced by other developing countries

like Kenya and Philippines. A survey was developed for the data collection. The survey was conducted

in Ghana. The data from the survey were tested using Structured Equation Model, and the unit of

analysis was the prospective individual mobile money transfer customer in Ghana. In developing the

model, we reviewed existing literature extensively and then interviewed Mobile Money professionals

of telecom providers who have either launched or about to launch their products and a selection of

consumers. Based on the results of the interviews we developed our survey instruments using a

multiple-item, five-point Likert scale approach.

The items in the survey were developed by adapting existing measures validated by other

researchers in mobile banking and mobile payment environment, or by converting the definitions of

the construct into a questionnaire format. Some of the items for the constructs; PU, PEOU PP and PR

were adapted from Chen (2008) and modified for mobile money transfer, others were created to suit

the 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, Relative

Advantage, Reliability, TC, and BI were created from their respective definitions. In total 32 items for

10 variables were developed. The PU construct is measured using 3 items (PU1-3); the PEOU is

measured by 4 items (PEOU1-4). For the determinants of PU, Relative Advantage is measured using 2

items (RA1-2). PT is measured using 4 items (PT1-4) and its determinants, PP 4 items (PP1-4) and

Reliability 2 items (Reliability1-2). The PR construct is measured using 5 items (PR1-5), TC is

measured using 4 items (TC1-4) and Trialability is measured using 3 items, (Trialability1-3) and the

Behavioral Intention construct is measured using 2 items (BI1-2).

The survey questionnaire consisted of four sections. Section A aimed at gathering information

relating to respondent mobile phone usage. It was used to measure the respondent’s mobile phone

experience, which was based on the sum of the various usage indicated. Section B was limited to

gathering information on the respondent’s usage of money transfer service in the past. Section C was

aimed at obtaining information on whether the respondent has used or intended to use mobile money

transfer and what factors are likely to influence their adoption decision. The section is sub divided into

the various constructs with a total of 32 items ranging between 2 and 4 items per construct. Section D

was aimed at gathering demographic information about respondent, including, gender, age, employment

status, education and income.

Data was collected using a self administered questionnaire to the general public at malls and other

places. In total, 330 respondents were approached in the survey. A total of 302 accepted to participate

and final 298 were collected. Since domestic money transfer is generally seen a one way transaction

from 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 the

questionnaire. The questionnaires were distributed by personally approaching the respondents on the

street, at the mall, in their offices and at the universities and colleges and requested to participate in a

social research involving mobile money transfer. For the illiterate our team members translate the

questionnaire from English to Twi (a prime native language).

4. Empirical Results

Based on the two-step approach recommended by Anderson and Gerbing (1988), we first analyzed the

measurement model to test the reliability and validity of the survey instrument, and then analyzed the

structural model using AMOS version 18 to test our research hypotheses. The Structure Equation Model (SEM) is most useful when assessing the causal relationship between variables as well as

verifying the compatibility of the model used.




Vol 3, No.7, 2011

66 | P a g e

www.iiste.org

4.1 Descriptive Statistics

A total number of 288 respondents were used in the analysis (the data collected from 10 respondents

had missing information; hence we used 288 instead of 298). The demographic profiles of the

respondents are described in what follows. The sample was made up of 65.2% male and 26.5% female

with 85.7% below 50 years of age and a mean age of 30 years. With regard to education, the majority

were at least university graduates or equivalent (about 67.3% including the postgraduates (Masters and

Doctorates)). 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 simpler

for the respondent, the local currency was used for the study. At the time of the study, $1 was

exchanged 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 respondents

appear 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 one

network provider. Over 60% of the respondent uses a combination of MTN and one of the five

network providers currently operating in Ghana. However, respondents that use MTN only accounted

for 33% of the sample. This confirms MTN as the largest Mobile Network Provider in Ghana based on

this sample. With regard to the various uses of mobile phone, 35% of respondents use their mobile

phone for receiving and making calls, SMS and listening to music. Only 15.2% of the respondents use

their 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 respondent

report and phone for some value added services.

The most popular form of money transfer identified was through bank transfer with 74% reporting

to have used the bank for money transfer. Regarding knowledge of any MMT in Ghana, 85% of the

respondents said yes with 93% answered to have heard of the MTN Mobile Money Transfer through

advertisements. However, only 10% claimed to have used the service. Knowledge of the service was

not reflective of its usage. The intention to use Mobile Money Transfer was found to be below average

with 48.4% responding in the affirmative, 28.3% no and 23.3% unsure.

4.2 Construct Reliability and Validity Analysis

Cronbach alpha in SPSS version 16 was used to test the reliability of each of the multiple-item

constructs 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 science

research (Nunnelly, 1978). This meant that all but three constructs Reliability, Perceived Privacy and

Transactional Cost did not meet the reliability test. The reliability of each construct is illustrated in Table

1 below. However, the Perceived Privacy (PP) construct was considered acceptable for use because of

its closeness to 0.70 rule of thumb and Reliability and Transactional Cost (TC) were removed from the

model and were not used in further analysis. There was little or no consistency between the items used

for these constructs. The data was subjected to exploratory factor analysis to establish convergent and

discriminant validity of the proposed MMT uniqueness using Principal Component Analysis (PCA) as

the extraction method and Varimax rotation with Kaiser Normalisation as the rotation method. Two

rounds of factor analysis were conducted. Initially, a ten-factor structure was suggested and the results

showed 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 with

cronbach alpha above .70 and seven factors with eigenvalues above 1.0 was generated. This analysis

eliminated Perceived Privacy (PP) construct as well. The seven factors were maintained for the model

and 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 the

variances 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 in Tan and Teo, 2000). However, PU loaded on two factors above .40. Correlation analysis reveals that

these are still distinct constructs, as the coefficient between them is only 0.30. This finding does reveal,




Vol 3, No.7, 2011

67 | P a g e

www.iiste.org

however, that PU and PEOU are closely linked in the minds of respondents. Table 2 illustrates the

validity of the constructs and their respective factor loading.

Table 1: Reliability of the model constructs (n=288)

Construct Cronbach

alpha

Mean SD # of

Items

Construct Cronbach

alpha

Mean SD # of

Items

PU .904 10.919 2.725 3 Trialability .844 11.860 2.406 3

PEOU .907 15.131 3.254 4 Reliability .503 8.150 1.515 2

PR .863 15.390 4.832 5 Relative

Advantage

.852 7.244 1.866 2

PT .788 13.696 3.191 4 Perceived

Privacy

.675 11.268 2.316 3

TC .365 14.320 2.610 4 Behavioral

Intention

.807 7.495 1.643 2




Vol 3, No.7, 2011

68 | P a g e

www.iiste.org

4.3 Structural Model Test

Table 2: Rotated Component Matrix

Component

Perceived

Ease of Use

Perceived

Risk

Perceived

Trust Trialability

Perceived

Usefulness

Relative

Advantage

Behavioral

Intentions

PU1 .641

PU2 .695

PU3 .749

PEOU1 .775

PEOU2 .727

PEOU3 .791

PEOU4 .808

Risk1 .855

Risk2 .854

Risk3 .854

Risk4 .872

Risk5 .511

Trust1 .684

Trust2 .724

Trust3 .829

Trust4 .680

RA1 .791

RA2 .817

Trial1 .813

Trial2 .842

Trial3 .868

BI1 .752

BI2 .776

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with

Kaiser Normalization.




Vol 3, No.7, 2011

69 | P a g e

www.iiste.org

SPSS Amos 18 was used to generate the common model-fit indices. Structural modeling evaluates

whether the data fit a theoretical model. The following common model-fit measures were used to

estimate 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 Fit

Index (IFI), and the Tucker Lewis coefficient (TLI). Table 4 shows the estimates from AMOS structural

modeling. According to Gerbing and Anderson (1992), the criteria for an acceptable model are as

follows: RMSEA of 0.08 or lower; CFI of 0.90 or higher; NFI of 0.90 or higher. The fit between the data

and the proposed measurement model can be tested with a chi-square goodness-to-fit (GFI) test where

the probability is greater than or equal to 0.9 indicates a good fit (Hu and Bentler, 1999). The GFI of this

study was 0.87 close to the recommended 0.90 or greater. Although the model does not show a perfect fit

in 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 (Bagozzi

and Yi, 1988).

Table 3: Fit Indices

Fit Indices Results Recommended Values

chi-square/degree of freedom (χ2/d.f.) 2.51 <5 (Bagozzi and Yi, 1988)

comparative fit index (CFI) .0.92 Approaches 1

root mean square error of approximation (RMSEA) 0.07 >0.06 (Joreskog and

Sorbom, 1996)

normed fit index (NFI), 0.87

Tucker Lewis coefficient (TLI) 0.90 Approaches 1(Byrne, 2001)

Incremental Fit Index (IFI) 0.92 Approaches 1

4.4 Hypothesis Analysis

Given the satisfactory fit of the model, the estimated path coefficients of the structural model was

evaluated to test the hypothesis identified earlier (see table 4). Multicollinearity was ruled out because

the correlations between independent variables are all less than 0.8 as shown in table 6 below. Note that

after 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, the

results are presented as predicated by the conceptual model path in Figure 1.




Vol 3, No.7, 2011

70 | P a g e

www.iiste.org

Table 4: Estimated path coefficients of the structural model

Estimate S.E. C.R. P

Results of

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 Supported

S.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 of

mobile money transfer and consumers’ intention to use the service (0.27 p<0.01). This confirms the

original TAM relationship between perceived usefulness and intention to adopt new technology. Also

the path coefficient of 0.22 (p<0.01) points to a strong positive relationship between Relative

Advantage and Perceived Usefulness. Hence, H2 is also confirmed. The path coefficient between

Perceived Ease of Use and Perceived Usefulness was the highest at 0.76 (p<0.01) indicating a strong

relationship between the two factors. Thus H3 is supported. In addition the relationship proposed in

H4 is also supported; that is, perceived ease of use also predicts users’ intention to use mobile money

transfer services (0.30 p< 0.01). Further, the structural link between Trust and BI and also Trial and BI

were both found to be significant with path coefficient of 0.19 and 0.17 respectively at a significant

level of 1%. Thus, consumers’ trust in Mobile Money Transfer and their ability to trial the product will

significantly affects their intention to use the service. Also, it is worth noting that H8: The higher the

Perceived Risk will lead to a negative influence on behavioral intention to use MM; is somewhat

supported by the negative sign of the path coefficient (-0.2), but not significant. This finding is

contrary to the results earlier studies where perceived risk significantly influences behavioural

intention.




Vol 3, No.7, 2011

71 | P a g e

www.iiste.org

Figure 4: Standardized path coefficients the Research Model

0.19

PEOU

PU

PR

PT

BI

Trail

RA

0.67

0.22

0.76 0.27

0.30

-0.20

0. 84

0.62

0.53

0.17

0.51

P < 0.05

P >0.05




Vol 3, No.7, 2011

72 | P a g e

www.iiste.org

5. Discussion of Empirical Results

The general feeling of the sample about mobile money can be summed up as “I have heard about it but

not used it”. As indicated above, 93% of the respondents reported to have heard about mobile money

through advertisements. As at the time of the study, MTN’s mobile money and Airtel’s ZAP were the

only two mobile money transfer services available in Ghana. MTN had launched its mobile money

transfer with huge advertisement campaign (including billboards, radio, TV commercials) both in the

cities and rural areas. Despite all the promotion and direct publicity, the adoption of the service was very

low with only 10% claiming to have used the service. More than 18months after MTN’s launch and

there is still no signs of significant uptake of the service. It was therefore necessary to model the factors

that predict the Ghanaian consumers’ adoption of the service.

This study aims to predict the intention to adopt mobile money transfer service in a convenience

sample of Ghanaian citizens, who were asked to complete a questionnaire that was based on relevant

adoption research and theories. To the best of our knowledge, this is one of the first studies to empirically test consumers’ intention to use mobile money transfer. As an extension to TAM, we

included items for Perceived Risk, Perceived Trust, Trialability, and Transactional Cost as key

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

U .629

** -.153

*

* .386

** .587

** 1

PU .582

** -.192

*

* .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).




Vol 3, No.7, 2011

73 | P a g e

www.iiste.org

determinants to consumers’ intention to use mobile money transfer services. Furthermore, we suggested

that Perceived Privacy and Reliability are antecedents to Trust whereas Relative Advantage and PEOU

affect PU. However, Perceived Privacy, Reliability and Transactional Cost did not pass the validity and

reliability test and were excluded from the model.

In general the structural equation modeling with AMOS 18 in this study supports the results of

previous 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 key

determinants 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 on

perceived usefulness and affects behavioral intentions both directly and indirectly through perceived

usefulness. This is consistent with previous research (Gu et al., 2009). The results therefore suggest that

mobile money transfer providers should consider how to make the use of the services easily. Also, the

trialability construct showed a significant effect on Behavioral intentions (β 0.17) and suggests that

there should be opportunities for customers to trial and test the mobile money transfer service and even

see demonstrations of how it works. This would raise awareness, and give people a greater

understanding of the technology.

Another point of interest in this study was how perceived risk and perceived trust affects behavioral

intention in mobile money transfer services. The results show that perceived trust (β 0.19) has

significant effect on consumers’ behavioral intentions. We were expecting an even higher path

coefficient for perceived trust because of the nature of mobile money transfer service. From the

descriptive statistics, most of the respondents use some form of money transfer regularly with most of it

being through banks or friends and family. The trust level for existing money transfer services seem to

be quite significant. Furthermore, from a theoretical perspective, it seemed reasonable that a higher

perceived risk in MMT service will lead to a lower rate of intention to use. Furthermore, perceived risk

was believed to be a predictor and barrier to Mobile money transfer services, and expected to negatively

influence 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 of

Ghana had no prior experience of electronic transactions we expected a significant negative relationship

between perceived risk and behavioral intentions? The findings of our initial interviews before the

survey did not reflect in the actual survey results. The Antecedents of Trust, Privacy and Reliability and

also risk were perceived to be the most important determinants of consumers’ intention to use mobile

money transfer. How can we rely on network providers to transfer our money when their network is

always down? What happens to our money when the network is down for a day or two? And who is

ultimately responsible, the merchant or the network provider, were some of the questions that was asked

during those interviews.

This study intended to be a valuable source for further empirical and conceptual research on

mobile money transfer services. Besides its general contribution of identifying, conceptualizing and

operationalizing the key factors that predicts its acceptance and adoption in the emerging markets, the

results can be used for further investigation into the success and/or failure of other mobile money related

services. It provides further understanding into the attitude of the Ghanaian consumer towards mobile

data services in general and the use of mobile phones for financial services specifically. A further

qualitative study into why the update in Ghana has not been overly successful with specific emphasis on

early adopters may be necessary in the future. Also, the developmental impact of mobile money transfer

in 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 use

mobile money transfer, it has some limitations. First, the exposure to mobile money transfer in Ghana is

still at its infant stages, and we had to explain to most respondents what it is. Insufficient understanding

of mobile money transfer and its applications does affect consumers’ intention to use the service. Also a

number of our respondents were illiterate and the translation of the questionnaire may affect their

understanding and interpretation. Finally, the survey was conducted in the main cities of Ghana and may not be a perfect representation of the entire population.




Vol 3, No.7, 2011

74 | P a g e

www.iiste.org

6. Concluding remarks

This study sought to model the antecedents of consumer behavior towards the adoption of Mobile

Money Transfer in Ghana. Since the introduction of mobile money by MTN in Ghana, other telecom

network providers have been investigating the possible impact of this MTN new service to their

customer base in Ghana. For example Airtel the most recent provider in the country has just launched

their 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 expectations

of 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 perceived

usefulness were found to be the most significant determinants of Behavioural Intention to use mobile

money transfer in Ghana. Perceived Trust, Trialability and Perceived Risk were also found to

significantly affect Behavioural Intention. As part of financial services, the adoption of mobile money

transfer is dependent on consumers’ perception on Trust and Risk. Thus, the findings support the

traditional view on the effect of risk and trust on usage of financial services. Furthermore, the need for

potential consumers to trial the service before adoption was significantly confirmed.

References

Agarwal, R., and Prasad, J. (1997). The role of innovation characteristics and perceived voluntariness

in 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: from

cognitions 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-step

approach. Psychological bulletin, 103, 411- 423.

Bagozzi, R. P., and Yi. Y. (1988). On the evaluation of structural equation models. Journal of the

Academy of Marketing Science, 16(1), 74 -94.

Bauer, H. H., Barnes, S. J., Reichardt, T., and Neumann, M. M. (2005). Driving consumer acceptance

of mobile marketing a theoretical framework and empirical study. Journal of Electronic Commerce

Research , 6(3), 181 - 192.

Bouwman, H., Carlsson, C., Molina-Castillo, F. J., and Walden, P. (2007). Barriers and drivers in the

adoption of current and future mobile services in Finland.

Byrne, B. M. (2001). Structural equation modelling with AMOS: Basic concepts, applications and

programming. Lawrence Erlbaum Associates, Mahwah, New Jersey.

Carlsson, C., Carlsson, J., Hyvönen, K., Puhakainen, J., and Walden, P. (2006). Adoption of Mobile

Devices/Services – Searching for Answers with the UTAUT. Proceedings of the 39th Hawaii




Vol 3, No.7, 2011

75 | P a g e

www.iiste.org

International Conference on System Sciences, (pp. 1 - 10).

Chen, H. (2008). Individual Mobile Communications Services and Tariffs . Daqing, Heilongjiang,

China.

Cheng, T. E., Lam, D. Y., and Yeung, A. C. (2006). Adoption of internet banking: An empirical study

in Hong Kong. Elsevier B.V. Doi.

Cheong, J. H., and Park, M. C. (2005). Moblie internet acceptance in Korea. Internet Research, 15 (2),

125 – 40.

Constantinides E., (2002). The 4S web-marketing mix model, Electronic commerce research and

applications. Elsevier Science, 1(1), 57-76.

Dai H. and Palvia P (2008). Factors Affecting Mobile Commerce Adoption: A Cross-Cultural Study in

China and The United States; Americas Conference on Information Systems.

Davis, F.D. (1989). Perceived usefulness, perceived ease of use and user acceptance of information

technology. MIS Quarterly, 13(3), 319 - 40.

Gerbing, D. W., and Anderson, J. C. (1992). Monte Carlo evaluations of goodness of fit indices for

structural equation models. Sociological Methods and Research, 21(2), 132 – 160.

Gu, Y., Liang. X., Wu. W., Liu. M, Song. S., Cheng. L., Bo. L., Xiong. C., Wang. X., Xiaozhang Liu.

X., Peng. L., and Yao. K., (2009), Multicenter Contraceptive Efficacy Trial of Injectable Testosterone

Undecanoate in Chinese Men. The Journal of Clinical Endocrinology & Metabolism, 94 (6),

1910-1915.

Hu, L., and Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis:

Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1-55.

Hughes, N., and Lonie, S. (2007) “M-PESA:Mobile Money for the “Unbanked” Turning Cellphones

into 24-Hour Tellers in Kenya”. Innovations: Technology, Governance, Globalization 2(winter &

spring edition), 63-81.

Hung, S.-Y., Ku, C.-Y., and Chang, C.-M. (2004). Critical factors of WAP services adoption: an

empirical study. Elsevier.

Jenkins, B. (2008). “Developing Mobile Money Ecosystems.” Washington, DC: IFC and the Harvard

Kennedy School.

Joreskog, K. G., and Sorbom, D. (1996). Lisrel 8: Structural equation modelling with the SIMPLIS


http://jcem.endojournals.org/search?author1=Yiqun+Gu&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Xiaowei+Liang&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Weixiong+Wu&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Minli+Liu&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Shuxiu+Song&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Lifa+Cheng&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Liwei+Bo&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Chengliang+Xiong&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Xinghai+Wang&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Xiaozhang+Liu&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Lin+Peng&sortspec=date&submit=Submit

http://jcem.endojournals.org/search?author1=Kangshou+Yao&sortspec=date&submit=Submit



Vol 3, No.7, 2011

76 | P a g e

www.iiste.org

command language. Chicago, IL: Scientific Software International.

Kleijnen, M., Wetzels, M. and de Ruyter, K. (2004). Consumer acceptance of wireless finance,

Journal of Financial Services Marketing, 8(3), 206 -17.

Legris, P., Imgham, J., Collerete, P., (2003), Why do people use information technology ? A critical

review of the technology acceptance model. Information & Management, 40, 191 – 204.

Leung, L., and Wei, R. (2000). More than just talk on the move: Uses and gratifications of the cellular

phone. Journalism and Mass Communication Quarterly, 77, 308–320.

Luarn, P, and Lin, H.-H. (2004). Toward an understanding of the behavioral intention to use mobile

banking. Elsevier.

Luarn, P., Lin, H.-H. (2005). Toward an understanding of the behavioral intention to use mobile

banking. Computers in Human Behavior, 21, 873-91.

Lu, J., Yao, J. E., and Yu, C.-S.(2005). Personal innovativeness, social influences and adoption of

wireless internet services via mobile technology. Journal of Strategic Information Systems, 14(3),

245 – 268.

Mallat, N. (2007). Exploring consumer adoption of mobile payments – A qualitative study. Journal of

Strategic Information Systems , 16 (4), 413–432.

Mas, I., and Kumar, K. (2008). Banking on mobiles: Why, How, for whom? Washington DC, CGAP.

Maurer, B. (2008). Retail electronic payments systems for value transfers in the developing world.

Retrieved 15 July 2010, from Department of Anthropology, University of California, Irvine:

http://www.anthro.uci.edu/faculty_bios/maurer/Maurer-Electronic_payment_systems.pdf

Nunnally, J. C., (1978) Psychometric theory. New York: McGraw-Hill.

Nysveen, H., Pedersen, P. E., and Thorbjornsen, H. (2005), Explaining intention to use mobile chat

services: moderating effects of gender. Journal of Consumer Marketing, 33(5), 247 – 56.

Orozco, M., K. Jacob J. Tescher (2007) 'Card-based remittances: a closer look at supply and demand'

(mimeograph), Chicago , Illinois : The Center for Financial Services Innovation.




Vol 3, No.7, 2011

77 | P a g e

www.iiste.org

Pennington, R., Wilcox, D.H., Grover, V. (2003/2004). The role of system trust in

business-to-consumer transactions. Journal of Management Information Systems, 20 (3), 197-226.

Porteous, D., (2006). The Enabling Environment for Mobile Banking in Africa. Boston: Bankable.

Frontiers. http://www.bankablefrontier.com/assets/ee.mobil.banking.report.v3.1.pdf.

Rogers, Everett M. Diffusion of Innovations. 4th

ed. New York: Free Press, 1995.

Siau, K., and Shen, Z. (2003), Mobile communications and mobile services. International Journal of

mobile communications, 1(1-2), 3 -14.

Stewart, K. J., (2003). Trust transfer on the World Wide Web. Organisation Science, 14 (1), 5 -17.

Tan, M., and Teo, T. (2000). Factors influencing the adoption of internet banking. Journal of the

Association for Information Systems, 1, 1- 42.

Teo, T.S.H and Pok, S.H., (2003). Adoption of WAP-enabled mobile phones among Internet users.

Omega 31, 483 – 498.

Venkatesh, V. and Davis, F.D. (2000), “A theoretical extension of the technology acceptance model:

four longitudinal field studies”, Management Science, 46(2), 186-204.

Venkatesh, V., Morris, M., Davis, G., and Davis, F. (2003a). User acceptance of information

technology: Toward a unified view. MIS Quarterly, 27(3), 425–478.

Wang, W., and Benbasat, I., (2005), Trust in and adoption of online recommendation agents. Journal

of the Association for Information Systems, 6(3), 72 – 101.

Wang, S., and Lie, T. (2006), Understanding the adoption of mobile data services: from the perspective

of theory of planned behavior, Proceedings of the Conference on Electronic Commerce and Digital

Life, available at: http://ec2006.atisr.org/proceeding/Paper/ec1419.doc (accessed 18 September 2007).

Wu J. H., and Wang S.C. (2005). What drives mobile commerce? : An empirical evaluation of the

revised technology acceptance model. Information & Management 42, 719–729.


http://www.bankablefrontier.com/assets/ee.mobil.banking.report.v3.1.pdf



Vol 3, No.7, 2011

78 | P a g e

www.iiste.org

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: [email protected]

R.Renganathan

Dept of Management Studies, SASTRA University, India

Email:[email protected]

Kurian Joseph

Dept of Management Studies, SASTRA University, India

Email:[email protected]




Abstract

In 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 Brazilian

development banks. Actual and ideal bank profiles were similar to those found in U.S and elsewhere. In the

said working paper, test-retest reliability of the LOP as a whole was moderate. Here after the pilot study

System1-4T Rensis Likert Scale has been revalidated with 17 items and the test-retest reliability has been

tested with Karl Pearsons Coefficient of Correlation over two time series with stronger correlation coefficient

of .88. In the organisational climate survey, median averages have been taken in order to measure the

organisational health. It has been found that the organisational health at tourist destinations improved after

the OD interventions, the said fact is doubly checked with direct employee feedback. So it is corroborated





Vol 3, No.7, 2011

79 | P a g e

www.iiste.org

with valid data that System 1-4T is a reliable tool to apply in organisational health and hence to rectify

organisational pathologies.

Key Words: LOP, Test-retest reliability, Organisational Health, Median Average

1 Introduction

1.1 Scope and Coverage

Though the whole Kerala State in the Southern part of India is blessed with unmatched natural diversity that

provides immense scope for eco-tourism, there are certain areas or destinations which are already developed

as far as eco-tourism is concerned. Development of tourism in these areas has a wide variety of impacts on the

ecology of that locality and on the overall contribution towards tourism in the state. Naturally development of

certain 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 in

tourism business. Therefore the universe of the present study is limited to those areas where eco-tourism is

developed and to those persons who are directly connected with eco-tourism business. This study is

explorative in nature as a hypothesis testing experimental one and the first of its kind in Kerala. Therefore the

study has been conducted mainly to explore the positive impacts of Organisation Development in the

eco-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 they

have been selected for the study.

1.2 Thenmala

1.2.1 Location Map

Located at about 72kms from Thiruvananthapuram, the State Capital of Kerala, God's Own Country, and

the southern most State of India. Thenmala is a small village at the foothills of Western Ghats and

predominantly a forest area. The famous Shenduruney Wildlife Sanctuary is the most important

eco-tourism resource of Thenmala Eco-tourism. This Wildlife Sanctuary is of about 100 sq. km. and

harbours large varieties of flora and fauna (Thenmala Eco-tourism Promotion Society 2007).

1.3 Periyar Tiger Reserve

Located at about 172kms from Thiruvananthapuram, the State Capital of Kerala, God's Own Country, and

the southern most State of India. Periyar Tiger Reserve is a Wild Life Sanctuary at the foothills of Western

Ghats and predominantly a forest area. According to the World Bank sponsored Eco Development

Committee (EDC), tribal people act as tourist guides in connection with various eco-tourism activities

(Periyar Tiger Reserve 2007).

2. Collection of Data

The data has been collected by conducting interviews with the samples selected for the study. Multiple




Vol 3, No.7, 2011

80 | P a g e

www.iiste.org

choice questions, open-end questions, rankings by the respondents and a five point scale developed by the

researcher especially for this in conformity with statistical methods and principles are used wherever

necessary. 17 point System 1-4T Likert Scale is used in order to assess the organisational climate survey

at different stages of OD process. Separate questionnaires were used to measure social status index and

environmental awareness at different stages. Questionnaires have been corrected and modified based on

the 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 LOP

scores were compared against Time 2 actual LOP scores. During the pre-test it has been a found a perfect

correlation of .88 between the two time series. So it can be concluded that Rensis-Likert System 1-4T

Scale 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. It

shows that the tool for assessing organisational climate survey is reliable.

3. Systems 1-4T at Thenmala and PTR

Survey feedback is based on a conceptual scheme and an integrated package of measurements that Rensis

Likert and colleagues called Systems 1-4 (and later 1-4T). This management typology is based largely on

measures pertaining to leadership, organizational climate and job satisfaction.

In his earlier writings, Likert called System 1 “exploitive authoritative”, System 2 “benevolent

authoritative”, System 3 “consultative” and System 4 “participative group”. In later works only the Systems

1-4 terms were used, probably because of the heavily evaluative connotations of the other systems. Some

would argue that the terminology of some of the scales is also too value laden. In the Likert model, each

type of organisation (Systems 1-4) is seen as having internally consistent characteristics of which

organizational climate is a major part.

Organizational climate survey at the beginning and at the end of the third phase has been executed

exclusive for local guides. It has been found a significant improvement in connection with organisational

climate. It is an indicator of Organisation Development outcomes. Both in Thenmala as well as in Periyar

Tiger Reserve all the guides have been exposed to OD process. Obviously it has made a positive impact in

these two destinations. While numerically calculating the various aspects, the median average value at PTR

was 12 at the beginning of the third phase. At the end of the third phase the same average has been gone up

to 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 long

term effort it can boost up the organisational health. In the Likert model, each type of organisation (Systems

1-4) is seen as having internally consistent characteristics of which organisational climate is a major part.

4. Degree of Success in Achieving Tourist Satisfaction

Regarding the degree of success in achieving the tourist satisfaction by the local guides, the pattern of

answers has been as follows:




Vol 3, No.7, 2011

81 | P a g e

www.iiste.org

The data show that both the destinations have only a poor estimate of their success record. This is a

situation that needs to be changed. The forest officials as well as others involved and the tourists should be

able to feel that the destinations are having a satisfactory record of performance.

5. Constraints to Achievement of Tourist Satisfaction

Regarding the ten constraints identified in the questionnaire, the respondents expressed their priorities as

follows.

Role ambiguity among officials gets the maximum scoring (19/20) as the first priority constraint followed

by lack of commitment among officials (15/20) as second priority item. Lack of political support comes

third 14/20) at PTR.

Thenmala: The comparative position is as follows

In Thenmala role ambiguity among officials gets the maximum scoring (18/20) as the first priority

constraint followed by lack of political support comes second (14/20) and lack of commitment among

officials (14/20) as third priority item. It has been decided to conduct role efficacy lab exercise for senior

officials in both the destinations.

6. Problems in Guiding

The comparative position is as follows:

Lack of training and development (19/20) and lack of problem solving ability (18/20) rank first and second

among 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 respectively

where as in Thenmala lack of training and development ranks first.

This led to the following action steps, i.e. Training Interventions.

1. Process Consultation

2. T-Group, L Group or Sensitivity Training

3. Life and Career planning intervention

4. Transactional Analysis as an Intervention

5. Reengineering

6. Conflict Resolution




Vol 3, No.7, 2011

82 | P a g e

www.iiste.org

7. Role Analysis Technique

8. Role Negotiation

9. Management by Objectives

10. Quality of Work Life Programmes

7. 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 connection

with 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 different

guide’s along with their OD Interventions are given in the ANOVA table. Here the researcher had tried to

find out whether different interventions have produced same results or different results. It has been

tested 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 Organisation

Development (OD) Interventions. The very first intervention in the history of OD- Sensitivity Training is

the 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 Decisions

Organisational climate survey at the end of the third phase has been executed. A significant improvement

has been found in connection with organisational climate. It is an indicator of Organisation Development

outcomes. Both in Thenmala as well as in Periyar Tiger Reserve all the guides have been exposed to OD

process. Obviously it has made a positive impact in these two destinations. While numerically calculating

the various aspects the median averages at PTR and Thenmala were 16 and 16.5 respectively at the end of

the third phase. At the end of the fourth phase the same median averages have been gone up to 18 and 18.5

at PTR and Thenmala respectively. However OD interventions solely contributed change in the

Eco-tourism destination or not, is not easily gaugable. Eventhough OD is a long term effort it can boost up

the organisational health in the shorter run also. Eventhough employees like System-4 organisations, their

immediate supervisors and top management do not support much System-4 organisations because the

power enjoyed by the supervisors is much less in System-4.

9. Feedback from Participants of OD Intervention Programme




Vol 3, No.7, 2011

83 | P a g e

www.iiste.org

Feed back has been taken from local guides in order to measure the impact of OD interventions and hence

to corroborate the results of System 1-4T, it has been found that results are consistent and ultimately results

got doubly checked. Four dimensional feed back in connection with the conformity towards OD

programme has been administered and it has been found that participants are highly satisfied with the OD

programme. The results shows that OD programme as well as OD interventions particularly produced

results in capacity building of local tourist guides.

10. Conclusion

The organisational climate survey at different stages shows that organisational health has been improved

through the application of OD interventions. Moreover a positive vibe has been generated in the

organisation. It is quite evident from the survey feedback which was carried out at the end of the

behavioural science interventions. Rensis Likert’s Organisational Climate Survey Tool is an effective

diagnostic instrument to measure organisational health at different life cycles of an organisation and the

results 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 January

2007,<http://www.dspacemit.edu/2007/January/BB007_2007.htm>.

Periyar Tiger Reserve Location 2007, Ecotourism Activities, Periyar Tiger Reserve

Location,viewedFebruary2007,<http://www.http://periyartigerreserve.org/location=Ecotourism+Activities>

.

Thenmala Eco-tourism Promotion Society 2007, Location Map, Thenmala

Eco-tourismPromotionSociety,viewed7February2007,<http://www.thenmalaecotourism.com/location

map>.

Scores of the tourist guides at two time periods

Table 1 Time 1

TIM

E 1

13

8

12

9

13

8

10

7

12

9

14

12

13

13

10

11

11

7

9

8

Table 2 Time 2


http://www.dspacemit.edu/

http://periyartigerreserve.org/

http://www.thenmalaecotourism.com/



Vol 3, No.7, 2011

84 | P a g e

www.iiste.org

TIM

E 2

12

8

13

10

12

9

8

8

11

8

13

11

12

14

9

11

12

8

10

7

Test-Retest reliability measured by Pearson’s coefficient of correlation as regards with

Rensis-Likert System 1-4T Scale

Table 3. Periyar Tiger Reserve Table 4. Thenmala

1. Very Much 0

2. Too great extent 3

3. Some what 23

4. Very little 1

5 No Answer 3

Table- 5. (contd. on next page)

Organizational variable

System

1

System

2

System

3

System

4

0-------5 --------10 -------15 ------20

Leadership

How much

confidence and

trust is shown in

Virtually none Some

Substantial

A great

deal

1. Very Much 0

2. Too great

extent

3

3. Some what 13

4. Very little 1

5 No Answer 3




Vol 3, No.7, 2011

85 | P a g e

www.iiste.org

subordinates Amount

How free do they

feel to talk to

superiors about

job

Not very free Somewhat free Quite

free

Very

free

How often are

subordinate’s

ideas sought and

used

constructively

Seldom Sometimes Often Very

frequently

Motivation

Is predominant use

made of 1 fear, 2

threats, 3

punishment 4

rewards, 5

involvement based

1, 2,3,

occasionally4

4,Some3 4,some 3 and 5 5,4 on group-set

goals

Where is

responsibility felt

for achieving

organization’s

Goals

Mostly at top Top and middle Fairly general At all levels

How much

cooperative team

work exists

Very little Relatively little Moderate Great deal

Communication

How is download

communication

accepted

With suspicion Possibly with

suspicion

With caution With a receptive

mind

How accurate is

upward

Communication

usually

inaccurate

often inaccurate often accurate Almost accurate

How well do

superiors know

problems faced by

Not very well Rather well Quite well Very well




Vol 3, No.7, 2011

86 | P a g e

www.iiste.org

subordinates

Decisions

At what level are

decisions made

Mostly at top Policy at top

some delegation

Broad policy at

top more

delegation

Throughout

Are subordinates

involved in

decisions related

to their work

involved

Almost never Occasionally Generally Fully

What does

decision-making

process contribute

to motivation

Not very much Relatively little Some

contribution

Substantial

contribution

Goals

How are

organizational

goals established

Orders issued

Orders,

some comments

invited

After discussion

by orders

By group action

How much covert

resistance to goals

is present

Strong resistance Moderate

resistance

Some resistance

at times

Little or none

Control

How concentrated

are review and

control functions

shared

Very highly at

top

Quite highly at

top

Moderate

delegation

Widely

Is there an

informal

organization

resisting the

formal one goals

Yes

Usually

Sometimes

No-same as

formal

What are cost,

productivity and

other control data

used for

Policing

punishment

Reward

punishment

Reward

some-self

guidance

Self-guidance

problem-solving




Vol 3, No.7, 2011

87 | P a g e

www.iiste.org

Table 6. Comparative Positions at Thenmala

SL 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

authorities

188 94

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


1 Lack of proper facilities in guiding 188 94

2 Lack of communications from above 186 93

3 Lack of leadership and guidance from

higher authorities

189 94.5

4 Lack of training and development at all

levels

199 99.5

5 Lack of problem solving ability among

guides

198 99

6 Lack of systems and procedures for

effectiveness

20 10

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


1 Lack of commitment among forest

officials 275 91.66

2 Lack of political support 274 91.33


higher authorities 258 86




Vol 3, No.7, 2011

88 | P a g e

www.iiste.org

4 Lack of proper planning by the forest

department 269 89.66

5 Lack of training and Development of

Officials 248 82.66

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

0

Role of corrupt politicians 20 6.66

Table 9. Comparative Position at PTR


1 Lack of proper facilities in guiding 198 66

2 Lack of communications from above 206 68.66


higher authorities

204 68

4 Lack of training and development at all

levels

209 69.66

5 Lack of problem solving ability among

guides

228 76

6 Lack of systems and procedures for

effectiveness

40 13.33

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 16.66




Vol 3, No.7, 2011

89 | P a g e

www.iiste.org

Table 10.Scores of Different Guides

Process Consultation 1

5

1

8

1

9

2

2

1

1

1

5

TA 1

8

1

9

2

4

1

6

2

2

1

5

1

6

Career Life Planning 1

9

Role Analysis 1

8

2

4

1

9

1

6

2

2

1

5

Sensitivity Training 2

5

2

3

2

7

2

9

2

6

2

2

Reengineering 2

0

2

4

2

3

2

4

2

6

2

7

Quality of Work Life 2

8

2

7

2

2

2

3

1

9

2

2

2

3

2

6

2

7

2

5

MBO 1

7

2

1

1

8

2

7

2

2

Role Negotiation 2

2

Conflict Resolution 2

3

2

4

Table 11. Ranking Different Interventions

Interventions Mean Standard deviation Coefficient of Variance

Process Consultation 16.67 3.83 22.98

TA 18.57 3.59 19.33

Role Analysis 19.00 3.46 18.21

Sensitivity Training 25.33 2.58 10.18

Reengineering 24.00 2.45 10.20




Vol 3, No.7, 2011

90 | P a g e

www.iiste.org

Quality of Work Life 24.20 2.86 11.82

MBO 21.00 3.94 18.76

Table 12. Feedback from Participants of OD Programme

Helped in Improving

Communication Skills

SA A N D SD

32 18 0 0 0

64% 36% 0 0 0

Helped in Improving Self

Confidence

40 10 0 0 0

80% 20% 0 0 0

Feedback Process has been

improved

50 0 0 0 0

100% 0 0 0 0

Helped in Developing Positive

Attitude

45 5 0 0 0

90% 10% 0 0 0

Improved Problem Solving

Ability

40 10 0 0 0

80% 20% 0 0 0

Improved Creativity 35 15 0 0 0

70% 30% 0 0 0

Team Building has been

Improved

32 18 0 0 0

64% 36% 0 0 0

Time Management has been

Improved

25 25 0 0 0

50% 50% 0 0 0

Self Management has been

Improved

30 20 0 0 0

60% 40% 0 0 0

SA- Strongly Agree, A- Agree, N-Neutral, D-Disagree, SD- Strongly Disagree

time1

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

time2

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

Fig. 1. Box plot for normality testing




Vol 3, No.7, 2011

91 | P a g e

www.iiste.org

An Analysis of Working Conditions and Impact of Work on Child Labor

Nengroo Aasif Hussain

Post Graduate Department of Economics, University of Kashmir.

Email [email protected]

Bhat Arshad Hussain



W. Mohammad Yaseen






Abstract

The present paper is an attempt to analyze the terms of employment and working conditions of the child workers

in the carpet weaving industry. Employer’s consideration to employ child labor, area from where child workers

are recruited and 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 of the work on health, social behavior of the child labor, physical and welfare facilities have also

been 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 been

collected from 162 child labors, 82 parents and 50 employers with the help interview schedules. Our analysis

reveals that the conditions of child workers who had been 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 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. Introduction

The 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 workers

and 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 of

employment indicates various elements such as workers earning in the form of wages, working hours, leave

holydays, medical benefits, housing etc. It also indicates other welfare and social security components linked

with the employment .While the terms of work helps the workers to meet their personal and family needs, better

working conditions help them to work effectively and efficiently. It is a well established fact that environment is







Vol 3, No.7, 2011

92 | P a g e

www.iiste.org

one of the two determinants of personality development of an individual. The work place equipped with proper

and adequate facilities not only helps in shaping the social behavior of workers but also in determining the

working norms as well as employee employer relationships. Of late, it has been realized that conducive working

conditions have a greater impact on various aspects of the workers life. Uncongenial, undesirable and poor

working conditions coerce the workers to keep away from the work places and result in disenchantment with

work giving birth to problems like absenteeism , boredom , monotony fatigue , accidents , disobedience ,

occupational disease, ill health poor quality of work , non harmonious employer- employee relations and

disturbances at the work place. It includes a wide variety of things and can be divided into two categories that are

physical conditions and social conditions. Physical working conditions can be enlisted as: (1) Nature of work

itself in terms of fatigue monotony and burden. (2) Safety measures. (3) Lighting. (4) Temperature and

ventilation and other measures for industrial health and hygiene supervision, communication, bargaining trade

unionism etc are the determinants of industrial relations or employee -employer relationships which may be

called as social conditions . Various items enlisted above as terms of work and working conditions have been

regulated through the statutory provisions under different state and central legislations ,but the scope of these acts

are limited to the organized sectors only . It is a matter of grave concern that conditions of work in the

unorganized sectors like carpet industry and other small scale industry norms are still decided by the employers

in an arbitrary manner and working conditions are so horrible and shocking that it becomes difficult to believe

that 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 carpet

weaving industry. Employer’s consideration to employ child labor, area from where child workers are recruited

and 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 of

the work on health, social behavior of the child labor, physical and welfare facilities have also been 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.

2. Objectives

The 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. Methodology

In the present study, multistage sampling has been used. In the first stage Qoimoh block was selected

because of concentration of more carpet weaving units, employment of large number of children in the

carpet weaving industry and easy accessibility. In the second stage it was decided to take the sample of 100

households from five villages (20% from each) which have higher concentration of child labor and where

there 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 were

selected in the present study. In the third stage a list of carpet weaving units/households from selected

villages was prepared with the help of village leaders and others having knowledge about carpet weaving

units in the village. Only those households were interviewed were there was at least one child in the age

group of 6-14 years employed in the carpet weaving. Thus a sample of 162 child labors was taken for the

present study. As per objectives of the study, besides child labors, information has been collected from 82

parents 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 two

responses, only first two responses were taken for analysis purposes. It was done because psychologically the

first two responses are considered to be more important as these are natural and respondent mentions them before

other responses without any prompting or efforts.




Vol 3, No.7, 2011

93 | P a g e

www.iiste.org

4. Discussion and analysis

4.1 Consideration in Employing Children

The employers (50) were asked to mention their consideration that led them to employ children. A variety of

multiple responses were obtained. Maximum of two responses from each respondent were taken for analysis

purposes which are presented in table 1

Table 1: Reasons Governing Employers for Preferring Child Labor

S. No. Reasons Percentage

1 Child labor is cheaper 22.00

2 They work hard 25.00

3 They create less trouble 5.00

4 They work for longer hours 12.00

5 They can be controlled easily 8.00

6 They can be put to any job 17.00

7 Any other 11.00

Total 100.00

Note: Maximum two responses from each respondent have been taken from analysis.

Source: Field Survey

The 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 was

easy to put them in any job, 8 percent liked them, because they were more disciplined and easy to handle, 12

percent preferred them because of their capacity to work for longer hours, 5 percent said that they created less

trouble and rest 11 percent employed them due to some other reasons. The analysis of the table clearly shows that

the child labor is cheaper, easily disciplinable and can be put to work beyond the prescribed working hours. This

further confirms the presumption that the poor are exploited more by the rich.

4.2 Communities from Which Children Are Recruited

In the big factories and organizations recruitment is made at the state or the national level to get skillful, smart

and hardworking workers. This is done either through advertisements or scouting methods. When the employers

of the carpet weaving units were asked to express their preferences , if they had for any community, 11

employers said that they preferred the child labors from the lower communities and casts, 7 preferred from their

own community whereas the majority of employers had no preference for any child worker. The reasons for

preferring workers of their own or socio-economic lower communities may be the lack of social relationship

between various communities in rural area. It is well documented fact that dominance is closely related to the

caste structure of the rural communities. It is only because of this that employers prefer the child workers from

the lower or from the same community. This pattern was not observed in more than half of the employers and

this 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 that

unemployed children and their parents approached them, 15 (30 percent) employers themselves want to hire

child workers whereas 8 (16 percent) said that co-workers approached them for employment. This shows that in

this occupation the mode of recruitment of children is direct. The data presented here shows that in cottage

industries 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 social

relationship prevailing in the villages.

4.3 Medical Certificate

When the employers were asked whether their child workers were required to produce medical fitness certificate

before they joined their jobs. It was found that all the employers (50) were neither aware of it nor could they




Vol 3, No.7, 2011

94 | P a g e

www.iiste.org

understand its need because they employed only physically as well as mentally healthy and efficient children for

work. In case of accidents and injuries, kerosene oil and carpet wool were used as medicines and reported it

cured their injuries. Similarly, the parents of the child workers were asked whether their children were medically

examined 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 primary

health centers. It clearly shows that neither parents nor employers of children had realized the importance of

medical fitness probably because of their rural background with poor education, lack of legal awareness and

neglect by the law enforcing agencies.

4.4 Furnishing of Surety/Security

In the unorganized sectors like carpet weaving units, employers behave in accordance with their whims. The

researchers asked the parents whether they furnished any security/security to the employers for employment of

their children. They replied in negative and added that most of the employers had provisions of advance money

for payment to the parents of child workers for family needs. This advance money was to be repaid in terms of

child labor and as such the children were bound to work with a particular employer till the full repayment of the

advance 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 so

long 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 the

practice prevalent elsewhere in the country were employers seek security money from the apprentices along with

bonds to serve their establishments.

4.5 Terms of Training

During the period of apprenticeship, although children waste raw materials, they help in production after learning

the skills. They are assigned to work with adults in carpet weaving. They are paid in accordance to their

efficiency and work. The rate of payment varies from unit to unit and from trainee to trainee in the same unit. In

private carpet centers the rate varies from ` 50 to ` 200 per month on the basis of experience and in some

cases trainee receives wages in kind like old clothes, shoes etc. Also it was observed from the field that those who

were having some relationship with the employers receive more as compared to others. However in case of

government run training centers we have observed the same rate of ` 100 per month, per trainee.

4.6 Preference for Present Job

The 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. In

their 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 these

responses are presented in percentages in the figure 1




Vol 3, No.7, 2011

95 | P a g e

www.iiste.org

Percentage

,

Other job was

not available.,

28

Present job

does not

require much

sksills., 8

It is not

hazaradous., 2

Work place is

near to house.,

13

Family

members or

relatives are in

this job., 24

For better

income., 12

Any other., 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 analysis

The figure 1 shows that 28 percent of the parents expressed their views that they send their children to the present

job because other job was not available to them, 24 percent joined the job because their family members are in

the job, 13 percent responded that they send them because these are nearer to their houses and 12 percent said

that their children get better income in carpet units etc. In short one can infer from this data that the main reason

for joining this occupation is non availability of alternative sources of income.

4.7 Duration of the Job and Working Hours

After knowing the reasons for preferring the present job, we wanted to know since how long these child labors

were in the present job. It is clear from the responses of child labors that 32 percent were in the carpet units since

last one month to one year, about 53 percent were in work from last one year to two years. A few amongst them

were in the present job from three years and some even more than three years. Further with a view to collect

factual information on the daily hours of work, we interviewed all the sampled child labors and the collected

information reveals that nearly three-fourth (73 percent) of the child workers were working between six to eight

hours every day. Some of them informed us that their working hours were flexible, whenever they wanted to earn

more money , they used to work for longer time. On the other hand, those children who were working in carpet

centers or at employers home were suffering some times in the sense that there working hours were neither fixed

nor flexible. Even if they worked for longer hours, they were not paid extra for that. Despite all these factors

majority of working children were having interest in carpet weaving due to socio-economic reasons. There were

some who think otherwise because of their exploitation and future concern.

4.8 Rest during Work

In the work situation it becomes necessary to make provision for intervals so that the harmful effects of work on

health caused by continuous work for long hours may be avoided and workers efficiency may be resorted and

maintained. So for, as the rest period of working is concerned, it was found in the survey that self employed

children in their family units, in most of cases, had no scheduled periods for rest. These children were at liberty to

attend their personal or family needs with due permission from their family members working on carpets. In the




Vol 3, No.7, 2011

96 | P a g e

www.iiste.org

case of employed child workers their period of rest varied from season to season. During the summer season they

were given rest for 2 hours (from 12-2 pm) while in rainy season as well as in the winter season, it was for one

and a half hour as lunch break. In some of the carpet weaving units, workers began work after taking breakfast

but in most of the cases, especially in summer season they started working earlier and were given half an hour for

tea break at 10:00 am. Children were usually going to their houses for lunch and a very few brought their meals

with them.

4.9 Holiday

Occasional leave enables the child workers to relax his/her mind from the drudgery of his /her work. Rigorous

and continuous work causes frequent illness but they have no liberty to leave the work. However employers

usually oblige them when they are sick and don’t deduct the wages for that day. Almost all the sampled child

labors responded that they get regular weekly holiday once a week usually at Friday. Some child labors remain

off from work during sickness, marriage ceremony, death and/or some other social ceremony. Some other

children remain off from work some times because of shortage of raw material, rain or due to some other

problems. 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 Wages

The 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 regular

employments and also in the case of children or adult. Though the legal provisions do not support all these

variables for determining the rate of wages. Another important factor in determining the wages is the will of

employers. This becomes clear when the wage structures of different organizations in the organized as well as

unorganized 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 in

the organized sector. They are employed and paid till the employer has work. In case they do not have work the

workers are laid off and payment is done according to the output of each worker. Sometimes children are

employed on monthly basis also but in that case they have to do domestic work of their employer.

4.11 Monthly Earnings

The approximate monthly income of the sampled child workers are shown in figure 2

Fig. 2: Approximate monthly earnings of children (``)

2.47

15.43

51.85

24.69

5.56

0

10

20

30

40

50

60

Up to ` 300

`300 to

` 500

` 500 to

` 700

` 700 to

` 1000

Above ` 1000

Monthly Earnings of children

Percentage




Vol 3, No.7, 2011

97 | P a g e

www.iiste.org

The figure 2 shows that more than half (51.43) of the child laborers were earning between ` 500 to ` 700 per

month, 17.90 percent were below ` 300, 24.69 percent were earning between ` 700 to ` 1000 and only

5.56 percent were earning above ` 1000 per month. Thus the monthly earnings of most of the child workers

were very low and they earn more in the latter age when they became fully skilled in carpet weaving. Therefore

as mentioned earlier the parents are forced to send their children to this work because of many socio-economic

problems 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 views

regarding sufficiency of wages/earnings for fulfilling their need. Nearly 3/4th (74.30 percent) child workers

responded that their earnings were sufficient enough to meet their personal needs and other were dissatisfied as

their 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 were

received by their parents and 15.43 percent by their siblings.

4.12 Grievance and Demands

The employers were asked to describe the common grievances and demands performed by the working children

and their parents. Only first two responses from each were used for analysis purpose which are presented in table

2

Table 2: Grievances and demands by children and parents to employers

S. No. Nature of demand and grievances Percentage of responses

1 Low wages. 35.00

2 Refusal to give money in advance. 26.00

3 Irregular payment. 07.00

4 Long hours of work. 05. 00

5 Poor learning of skills. 04.00

6 Threat of employers, adult workers. 04.00

7 Any other. 19.00

Total 100.00


The table 2 shows that more than 1/3rd (35 percent) respondents grievances were received by employers for

payment of low wages to child workers, 26 percent were received for refusal to pay advance money, 7 percent for

irregular payment of wages,5 percent for long hours of work ,4 percent for poor learning of carpet skills by the

child workers and another 4 percent regarding un healthy behavior by employers or co- workers, 19 percent for

other reasons such as pocket money, leave with pay and welfare facilities. These facts confirm the impression

that children are subjected to exploitation more because of the lack of any organized attempt through trade unions

to solve their problems. This is quite common with the unorganized sector where there is no regular agency to

approach the employers for redressed to their grievances.

4.13 Problematic Behavior of the Children at Work

The child is known to be immature and ignorant as compared to adults. When the sampled employers (50) were

asked to describe the difficulties faced by them from the working children, they gave different reasons but only

the 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 Percentage

1 They are irregular 38 38.00

2 They quarrel with each other. 33 33.00




Vol 3, No.7, 2011

98 | P a g e

www.iiste.org

3 They Smoke 12 12.00

4 They lack social awareness 11 11.00

5 Any other 6 6.00

Total 100 100.00

Note: Maximum two responses from each have been taken for analysis

Source: Field survey

The above table shows that 38 percent employers said that they were irregular, 33 percent found that children

quarreled with each other, 12 percent said that children smoked while at work, 11 percent told that they lack

social 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 they

are still in the process of getting socialized. They cannot be equated with adults. Smoking was perhaps the result

of the imitation of the behavior of adult workers. The adult workers might also have induced them to these bad

habits (like smoking) for their own pleasure.

4.14 Job Dissatisfaction

Job 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 points

in view, an attempt has been made to know the satisfaction level of the child workers. The child workers who

were dissatisfied with their job were asked to express the reasons of their dissatisfaction. Information given by

the child workers has been classified and presented in table 4

Table 4: Reasons of job dissatisfaction as reported by child workers

S. No. Reasons Number Percentage

1 Low wages 37 44.04

2 Temporary job 16 19.04

3 Unhealthy work environment 14 16.67

4 Rude behaviour of employers 9 10.71

5 Long hours of work 6 7.14

6 No response 2 2.39

Total 84 100.00

Note: 78 child workers showed job satisfaction, therefore, they have been excluded from this analysis.


The 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 of

unhealthy 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. This

shows that a little more than half of the child workers were dissatisfied with their jobs. This is quite natural as

conditions were by no means satisfactory.

4.15 Impact of Work on the behavior of Child

The 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 and

habits of the child after he joined carpet weaving units. Only two responses from each were taken for analysis

which is presented in table 5

Table 5: Changes in children after employment

S. No Forms of change Number Percentage




Vol 3, No.7, 2011

99 | P a g e

www.iiste.org

1 Smoking habit 38 23.17

2 Spends more money for pocket expenses 10 6.09

3 Have chosen bad company 14 8.54

4 Not aware about social behavior 6 3.65

5 Become more responsible 28 17.07

6 Don’t obey parents 22 13.41

7 Work hard 18 10.97

8 Know skills better 10 6.09

9 No response 18 10.97

Total 164 100.00

Note: More than two responses from each have been taken for analysis.


The table 5 shows that the respondents gave both negative as well as positive responses. Out of all the sampled

respondents 23.17 percent reported that the child had developed smoking habits, 8.54 percent said that they had

joined bad company, 3.41 percent reported that their children did not obey them, 6.09 percent said that they

spend more for personal expenses, 3.65 percent complained for a lack of proper behavior. In contrast, 17.07

percent found that the child had become more responsible, 10.97 percent observed that they had become hard

working, 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 Child

As for as the impact of labor on health of child is concerned, information from parents as well as children

was collected which is presented in figure 3

2118

9 11

2

22

107

2721

6

15

710

6 8

05

1015202530

Headache

Eye

irre

tation/a

che

Back p

ain

Sto

mach a

nd

join

t pain

Chest

pain

Skin

dis

ease

Fin

gru

es p

ain

No r

esponse

Nature of work

Resp

on

ces (

%)

Parents percentage responses Child workers percentage responses

Note: Maximum two responses have been taken for analysis


Fig. 3: Effect of work on Child Workers

The analysis of the figure 3 shows that against 21 percent cases of headache reported by parents, 27 percent cases

of head -ache were found in children. Similarly, eye-aching, back pain, stomach and joint pain and pain in fingers




Vol 3, No.7, 2011

100 | P a g e

www.iiste.org

were 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 were

head-ache, vision problems, stomach, joint pain and chest pain. Parents reported less of chest pains and more of

finger pains of their children. The discrepancy between the information of two can be explained on the basis of

factors 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 concentrating

heavily 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. Conclusion

From various tables and figures analyzed above one can conclude that the conditions of child workers who had

been 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 hours

per day. Half of the child labors were earning ` 500 to ` 700 per month and the rest were earning below ` 500

per month. It indicates that parents are forced to send their children to this work because of many socio-economic

problems and also in the hope that their children will earn more when they will become the master of their art.

References

Anandharajakumar 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, New

Delhi.

Singh, A.N. (1990) “Child Labour in India: Socio – Economic Perspectives”, Shipra Publications, New

Delhi.

Sharma, Usha (2006) Female Labour in India, Mittal Publications, New Delhi.
