INTRODUCTION TO FINANCE: Finance is the integral part of business. The economic development of any country, depends upon the ‘existence of a well- organized financial system. It is the financial system, which supplies the necessary financial input for the production of goods and services, which in turn promotes the well-being, and standard of people of the country. Finance, and function of finance are the part of the economic activity. Finance is the essential, need for all type of organization viz., small, medium, large-scale industries, and agriculture and service sector. Over the 60 years of independence, the availability of finance, has been made easy through functioning of commercial banks, development banks and primary markets. But all these services and instruments are associated, with different types of costs. Hence, it had become a necessity to make use of such sources not only to recover the cost but also to increase, the wealth of investors. Contrary to this, the new economic reforms created a challenging, environment in the economy. This calls for effective utilization of funds, to yield the pre-determined returns of a firm’s success and its survival, depends upon how efficiently it is able to generate funds, as and when needed. Finance, holds the key to all activities. The Sanskrit says, ‘Arthasachivah’ which means, ‘Finance’ reigns supreme’, speaks volume for the significance of the function, of finance in any organization. According to Paul G. Hassings..,
‘Finance is the management of the monetary, affairs of a company. It includes determining what has to be paid for the money of the best terms available, and devoting the available funds to the best uses’.
‘Finance’ guides and regulates, investment decisions and expenditures. The expenditure decision may pertain, to recurring expenditure or they may be about capital budgeting. To get the best out of the available funds, is major task of finance. The finance manager, has to perform this task most efficiently if he is to be successful. The finance function, does not draw any distinction between the private sector and the public sector. It is important, even indispensable to the both sectors, even the government treats finance as a, signpost to control a measure what it has achieved or propose to achieve. It may be rightly, considered as the sinew of any business activity, and that is how its importance is recognized in any branch of science. Every business activity requires financial support, because financial viability, is the center theme of any business preposition. This point of view is well brought out by Mr. A.L. KINGSHOTT, who states.
‘Finance is the common denominator for a vast range of corporate objectives, and the major part ,of any corporate plan must be expressed in financial terms’.
Financial decision, must be viewed in the light of financial viability of its financial outcomes. It is difficult to conceive a policy decision, which does not have financial implications. Moreover, business activities are not mutually exclusive; there dependence on each other, and can be measured only in terms of finance. Any economic transaction, consists of buying and selling, which implies money transactions, but it may not involve immediate payment of money, as there may be credit terms involved. In any transaction therefore, whether it is buying or selling, the payment of money, at present or in future, is involved.
FINANCIAL STATEMENTS
An organization communicates, its financial information to the users through financial statements and reports. Financial statement contains summarized information of the organizations – financial affairs, organized in a systematic form. These statements comprises of the income statements or profit and loss account and the position statements or the balance sheet.
To give a full view of the financial affairs, of the undertaking it is also necessary to include statement of retained earnings, a statement of changes , in the financial position and a few schedules such as schedules of fixed assets, and schedule of debtors.
Income Statement: The profit and loss account set out income as well as expenses of the same period and after matching the two, the difference that is net profit or net loss, is shown as the difference between the two sides of the account. Thus, the earning capacity and the potential of the organizations are reflected by its profit and loss account.
Balance Sheet: Also known as the position statement, displays all the total resources of a business and the owners, creditors equity in these resources. It indicates the statement of affairs of the business at a particular moment of time and thus, its nature.
Profit and Loss Appropriation account: Also known as statement of retained earnings, is generally a part of the profit and loss account. It shows, how the profit of the business for the accounting period is appropriated, towards reserve and dividend and how much of the same is carried forward, as retained earnings
Fund Flow Statement: Also known as the statement of changes in financial position, summarizes the changes in the assets, liabilities and owners’ equity between two balance sheet dates. Thus, it is a statement of flows, i.e. it means the changes have been taken in the financial position of the firm of two balance sheet dates. It summarizes the sources, and uses of the funds obtained.
FINANCIAL ANALYSIS
Financial analysis, is the process of identifying the financial strength and weakness of the firm by properly establishing, relationships between the items of the balance sheet and profit and loss account. The purpose of financial analysis is, to disclose the information available in the financial statements so as to judge the profitability, and financial health of the organization.
The first task of the financial analyst is to select the information relevant to the decisions under consideration from the total information available in the financial statement. Secondly, to arrange the information in a way that would highlight the significant relationships.
Finally, to interpret and draw inferences, and conclusions. In brief, financial analysis, is the process if selection, relation and evaluation of profitability and financial soundness and health of the organization.
TECHNIQUES OF FINANCIAL STATEMENT
A financial analyst, analyses the financial statement by selecting the appropriate techniques according to purpose of the analysis. Financial statements may be analyzed by means of any of the following techniques:
‘ Comparative Statement analysis.
‘ Common Size Statement analysis.
‘ Trend analysis.
‘ Ratio analysis.
‘ Fund Flow Statement.
‘ Cash Flow Statement.
‘ Cost Volume Profit analysis.
COMPARATIVE ANALYSIS
Comparative Analysis means, comparison of two or more comparable alternatives, processes, products, qualifications, sets of data’s, systems, etc. In accounting, for example, changes in a financial statement’s items over, several accounting periods could be presented together to detect the emerging trends in the, firm’s operations and results.
Comparative Analysis is performed by professionals, who prepare reports using financial tools and techniques that make use of information taken from financial statements and the other reports. These reports are usually, presented to top management as one of their base in making business decision.
These decisions include the following:-
‘ Continue or discontinue in its main operation or part of its business;
‘ Make or purchase certain materials, in the manufacture of its product;
‘ Acquire or rent/lease certain, machineries and equipment in the production of its goods;
‘ Issue stocks or negotiate for a bank loan, to increase its working capital;
‘ Make decisions regarding investing and lending capital;
‘ Other decisions that allow management to make an, informed selection on various alternatives in the conduct of its business.
Comparative analysis often assesses the firm’s:-
1. Profitability ‘ Firm’s ability, to earn income and sustain growth in both short-term and long-term. A company’s degree of profitability, is usually based on the income statement, which reports on the company’s results of operations
2. Solvency ‘ Firm’s ability to pay of its obligation to creditors and third parties in the long term.
3. Liquidity – its ability to maintain a positive cash flow, while satisfying immediate obligations.
4. Stability- the firm’s ability is to remain in business in the long run, without having to sustain significant losses, in the conduct of its business. Assessing a company’s stability requires the use of the income statements and the balance sheet, as well as other, financial and non-financial indicators.
Methods of Comparative Analysis
Comparative analysts often compare on the basis of following things:
‘ Past Performance – Across historical time periods, for the same firm (the last 5 years for example),
‘ Future Performance – Using historical figures and certain, mathematical and statistical techniques, including present and future values, This extrapolation method is the main source, of errors in financial analysis as past statistics can be the poor predictors of future prospects.
‘ Comparative Performance – Comparison between the similar firms.
Comparing financial ratios is merely one way of conducting, financial analysis. Financial ratios face several theoretical challenges:
‘ They say little about the firm’s prospects, in an absolute sense. Their insights about, relative performance, require a reference point from other time periods or any similar firms.
‘ One ratio, holds little meaning. As indicators, ratios can be logically interpreted in at least two ways. One can be partially overcome this problem by combining several related ratios, to paint a more comprehensive and exact picture of the firm’s performance.
‘ Seasonal factors, may prevent year-end values from being representative. A ratio’s values may be distorted as the account balances will change from the beginning to the end of an , accounting period. Use average values, for such accounts, whenever it is possible.
‘ Financial ratios, are no more objective than the accounting methods employed. Changes in accounting policies, or choices can yield drastically different ratio values.
Financial analysts, can also use percentage analysis which involves reducing a series of the figures as a percentage of some base amounts. For example, a group of items can be expressed, as a percentage of net income. When proportionate changes in the same figure, over a given time period expressed as a percentage is known as horizontal analysis. Vertical or common-size analysis, reduces all items on a statement to a ‘common size’ as a percentage of some base value, which assists in the comparability with other companies of different sizes. As a result, all Income Statement items are divided by Sales, and all the other Balance Sheet items are divided by Total Assets.
Another method is, comparative analysis. This provides a better way to determine trends. Comparative analysis, presents the same information for two or more time periods and is, presented side-by-side to allow for easy analysis.
BALANCE SHEET BASICS
In financial accounting, the balance sheet or statement of financial position is a summary of the financial balances, of a sole proprietorship, a business partnership or a company. Assets, liabilities and ownership equity, are listed as of a specific date, such as to the end of its financial year. A balance sheet is often described as a “snapshot of a company’s financial condition”. The balance sheet is the only statement which applies to a single point at time of a business’ calendar year. Understanding balance sheet, is very important because it gives an idea of the financial strength of a company at any given point of time.
The various components of balance sheet are as follows:-
‘ Assets: – Anything tangible or intangible that is capable, of being owned or controlled to produce value and that is, held to have positive economic value is considered as an asset.
‘ Gross block: – The total value of all the assets that a company own’s and value is determined by the amount ,it cost to acquire these assets. It is inclusive of depreciation, that is to be charged on each asset.
‘ Net block: – If the gross block is less accumulated depreciation on assets. Net block is actually what; the asset is worth to the company.
‘ Capital Work-In-Progress: – sometimes, at the end of the financial year, there is some construction or installation going-on in the company. Which is not complete, such installation is recorded in the books as: capital work in progress because it is asset for the business.
‘ Investments: – If the company has made some, investments out of its free cash, it is recorded, under the head investments.
‘ Inventory: -The raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business assets which are ready or will be ready for sale.
‘ Receivables: – include the debtor’s of the company, i.e., it includes all those accounts which are to give money back to the company.
‘ Other Current Assets: – include all the assets, which can be converted into cash, within a very short period of time like cash in bank etc.
‘ Liabilities:- In financial accounting, a liability is defined as an obligation of an entity, arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services, or other yielding of economic benefits in the future.
‘ Share Capital: – Share capital or issued capital refers to as the portion of a company’s equity that has been obtained by trading stock, to a shareholder for cash or an equivalent item of capital value. Share capital usually comprises the nominal values of all shares issued, and less those repurchased by the company. It includes both ordinary shares and preference shares. If the market value of shares is greater than their nominal value (value at par), the shares are said to be at a premium, which is also called as share premium.
‘ Reserves and surpluses: – Amount appropriated out of earned surplus, retained earnings for future plan or unforeseen expenditure. It includes, the free reserves of the company which are built out of the genuine profits of the company. Together they are known as net worth of the company.
‘ Total debt: – It includes the long term and short debt of the company. Long term is for a longer duration, usually for a period more than 3 years like debentures. Short term debt, is for a lesser duration, usually for less than a year like bank finance for the working capital.
‘ Creditors: – They are those entities to which the company owes’s money.
‘ Other Liabilities and Provisions: – It includes, all the liabilities that do not fall under any of the above head and various provisions made.
PROFIT AND LOSS STATEMENT
Profit and Loss Statement which is also known as the Income Statement is a company’s financial statement that indicates how the revenue, which is money received from the sale of products and services, before expenses are taken out, also known as the “top line” is transformed into the net income, which is the result after all revenues and expenses have been accounted for, also known as the “bottom line”. It displays, the revenues recognized for a specific period, and the cost and expenses charged against all these revenues, including write-offs (e.g., depreciation and the amortization of various assets) and taxes. The purpose of the income statement is to show manager’s and investors whether the company made or lost money, during the period being reported.
Items in Profit & Loss Statement
Operating Expenses
‘ Revenue: -Cash inflows, or other enhancements of assets of an entity during a period from delivering, or producing goods, rendering services, or other activities that constitute the entity’s ongoing, major operations. It is usually presented as the sales minus sales discounts, returns, and allowances.
‘ Expenses: – Cash outflows, or other using-up of assets or incurrence of liabilities during a period, from delivering or producing goods, rendering services, or carrying out other activities that constitute, the entity’s ongoing major operations.
‘ General and Administrative Expenses: -Represent expenses, to manage the business; which includes salaries of officers/executives, legal and professional fees, utilities, insurance, depreciation of office building and the equipment, office rents, office supplies, etc.).
‘ Selling Expenses: -It represents, expenses needed to sell products which include salaries of sales people, commissions, and travel expenses, advertising, freight, shipping, depreciation of sales store buildings and equipment, etc.
‘ R & D Expenses: -Investigative activities, that a business chooses to conduct with intention of making a discovery that can either lead to the development of a new products or procedures, or in the improvement of existing products or procedures.
‘ Depreciation/Amortization: -It is the charge, with respect to fixed assets / intangible assets that have been capitalized, on the balance sheet for a specific accounting period. It is a systematic and rational allocation of cost, rather than the recognition of market value decrement.
Non-operating Expenses
‘ Other Revenues or Gains: -They are, revenues and gains from other than primary business activities (e.g. rent, income from patents). It also includes unusual gains, that are either unusual or infrequent, but not both (e.g. gain from sale of securities or gain from disposal of fixed assets).
‘ Other expenses or losses: – Expenses or losses which are not related to primary business operations, (e.g. foreign exchange loss).
‘ Finance costs ‘ It is the cost of borrowing from various creditors (e.g. interest expenses, bank charges).
‘ Income tax expense: – It is the sum of the amount payable to tax authorities for the current reporting period (current tax liabilities/ tax payable) and the amount of deferred tax liabilities (or assets).
Irregular Items
They are reported separately, because this way the user can better predict future cash flows. Irregular items most likely may not appear in next year. These are reported as net of taxes.
‘ Extraordinary items: -They are both, unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions, under new regulations. [Note: natural disaster, might not qualify depending on location (e.g. frost damage would not qualify in Canada, but would in the tropics).
‘ Changes in accounting principles: -For example, deciding to depreciate, an investment property that has previously not been depreciated. However, changes in the estimates (e.g. estimated useful life of fixed assets) do not qualify.
‘ Discontinued operations: -These are the most common type of irregular items. Shifting business location, stopping production temporarily, or changes due to technological improvement, do not qualify as discontinued operations.
1.2 SPECIFIC INTRODUCTION
RETAIL BACKGROUND OF INDUSTRY
The Indian retail industry, is divided into organized and unorganized sectors. Organized retailing, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed, hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of the low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand-cart and pavement vendors, etc. India’s retail sector is wearing new clothes and with a three-year compounded annual growth rate of 46.64 per cent, retail is the fastest growing sector, in the Indian economy. Traditional markets, are making way for new formats such as departmental stores, hypermarkets, supermarkets and specialist stores. Western-style malls, have begun appearing in metros and second-rung cities alike, introducing the Indian consumer, to annul paralleled shopping experience. The Indian retail sector, is highly fragmented with 97 per cent of its business being run by the unorganized retailers, like the traditional family run stores and corner stores. The organized retail however is at a very nascent stage, though attempts are being made to increase its proportion to 9-10 per cent by the year 2015 bringing in huge opportunities for prospective new players. This sector is the largest source of employment after agriculture, and has deep penetration, into rural India generating more than 10 percent of India’s GDP.
The last few years witnessed immense growth by this sector, the key drivers being
the Changing consumer profile and demographics, increase in the number of international brands, available in the Indian market, economic implications of the Government increasing urbanization, credit availability, improvement in the infrastructure, increasing investments in technology, and real estate building a world class shopping environment for the consumers. In order to keep pace with the increasing demand, there has been, a hectic activity in terms of entry of international labels, expansion plans, and focus on technology, operations and processes .This has led, to more complex relationships involving suppliers, third party distributors and retailers, which can be dealt, with the help of an efficient supply chain. A proper supply chain will help to meet the competition head-on, manage stock availability; supplier relations, new value-added services, cost cutting and most importantly reduce the wastage levels in fresh produce.
Large Indian players: like Reliance Ambani’s, K.Rahejas, Bharti AirTel, ITC and many others are making significant investments, in this sector leading to emergence of big retailers who can bargain with suppliers to reap, economies of scale. Hence, discounting is becoming, an accepted practice. Proper infrastructure is a pre-requisite in retailing, which would help to modernize India and facilitate rapid economic growth. This would ,help in efficient delivery of goods and value-added services to the consumer making a higher, contribution to the GDP. International retailers see India as the last retailing, frontier left as the China’s retail sector is, becoming saturated. However, the Indian Government restrictions on the FDI are creating, ripples among the international players like Walmart, Tesco and many other, retail giants struggling to enter Indian markets. As of now the Government has, allowed only 51 per cent FDI in the sector to ‘one-brand’ shops like Nike, Reebok, etc. However, other international players are taking alternative routes to enter ,the Indian retail market indirectly via strategic licensing agreement, franchisee, agreement and cash and carry wholesale trading (since 100 per cent FDI is allowed, in wholesale trading).
RETAIL INDUSTRY
India has one of the largest numbers, of retail outlets in the world of the 12 million retail outlets present in the, country, nearly 5 million sell food and related products. Though the market has, been dominated by unorganized players, the entry of domestic and international, organized players is set to change the scenario.
Organized retail segment has been ,growing at a blistering pace, exceeding all previous estimates. According to a, study by Deloitte Haskins and Sells, organized retail has increased its share, from 8 percent of total retail sales in 20012 to 10 percent in 2013. The, fastest growing segments have been the wholesale cash and carry stores, (150 percent) followed by supermarkets (100 percent) and hyper markets, (75-80 percent). Further, it estimates the organized segment to account for 25 per cent of the total sales by 2014.
India retail industry is the, largest industry in India, with an employment of around 8% and contributing, to over 10% of the country’s GDP. Retail industry in India is expected to rise, 25% yearly being driven by strong income growth, changing lifestyles, and, favorable demographic patterns.
It is expected that by, 2016 modern retail industry in India will be worth US$ 200-225 billion. India, retail industry is one of the fastest growing industries with revenue expected, in 2014 to amount US$350 billion and is increasing at a rate of 5% yearly. A ,further increase of 7-8% is expected in the industry of retail in India by growth in ,consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will, amount to US$ 21.5 billion by 2015 from the current size of US$ 7.5 billion.
Shopping, in India has witnessed a revolution with the change in the consumer buying, behavior and the whole format of shopping also altering.
Industry, of retail in India which has become modern can be seen from the fact that there, are multi-stored malls, huge shopping centers, and sprawling complexes ,which offer food, shopping, and entertainment al under the same roof.
India retail, industry is expanding itself most aggressively; as a result a great demand for, real estate is being created. Indian retailers preferred means of expansion is ,to expand to other regions and to increase the number of their outlets in a city,. India retail industry is progressing well and for this to continue retailers as well, as the Indian government will have to make a combined effort.
Retail sector, one, of India’s largest industries, has presently emerged as one of the most dynamic, and fast paced industries of our times with several players entering the market.
India is being, seen as a potential goldmine for retail investors from over the world. India, gets 2nd position according to AT Kearney’s annual Global Retail Development, Index (GRDI). India earned $511 billion in the year of 2012 and drawing both, local as well as global players. Organized retail accounts still less than 5% of the, market is expected to grow at CAGR of 40%, from $20 billion in 2007 to $107, billion by 2013 and to $1.3 trillion by 2018, at a CAGR of 10%. India has one, of the largest numbers of retail outlets in the world. One of the 12 million retail, outlets, present in the country, nearly 5 million sell food and related products. Though, the market has been dominated by unorganized player, the entry of domestic, and international organized players is set to change the scenario.
As the contemporary, retail sector in India is reflected in sprawling shopping centers, multiplex- malls, and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large, scale investments in real estate sector with major national and global players, investing in developing the infrastructure and construction of the retailing, business.
The retailing configuration, in India is fast developing as shopping malls are increasingly becoming familiar, in large cities. When it comes to development of retail space specially the malls, the Tier, II cities are no longer behind in the race. If development plans till 2007 is studied, it shows the projection of 220 shopping malls, with 139 malls in metros and the, remaining 81 in the Tier II cities. The government of states like Delhi and, National Capital Region (NCR) are very upbeat about permitting the use of, land for commercial development thus increasing the availability of land for, retail space; thus making NCR render to 50% of the malls in India.
Wal-Mart, the world’s largest retail, chain, recently joined Bharti to operate within India. Some MNC giants already, serving from the past couple of years like SPAR group, Carrefour, Marks &, Spencer, Metro. Local retailers such as Future group, RGP group and Reliance, have all taken an early lead due to their aggressive expansion plans.
The outlook for private consumption, has become more negative and customers are becoming more cautious. The retail, sector is concentrated. Indian retail chains are meeting the stiff competition, through increased efficiency, centralizing purchases, forming international, alliances and expanding operations.
INDIAN RETAIL INDUSTRY- ITS GROWTH, CHALLENGES AND OPPURTUNITIES.
As the contemporary retail, sector in India is reflected in sprawling shopping centers, multiplex- malls, and huge complexes offer shopping, entertainment and food all under one roof, the concept, of shopping has altered in terms of format and consumer buying behavior, ushering, in a revolution in shopping in India. This has also contributed to large- scale, investment in real estate sector with major national and global players investing, in developing the infrastructure and construction of relating business.
The trends that are driving the growth of retail sector in India are:
‘ Low share of organized ,retailing
‘ Falling real estate, prices
‘ Increase in disposal, income and customer aspiration
‘ Increase in expenditure, for luxury items
Another credible factor in the, prospects of retail sector in India is the increase in the young working, population. In India, hefty pay packets, nuclear families in urban areas, along, with increasing working- women and emerging opportunities in the service sector. These key factors have been the growth drivers of the organized retail, sector in India which now boast of retailing almost all the preferences of, life- Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products. With this the retail sector in India is witnessing, rejuvenation as traditional markets make way for new formats such as departmental, stores , hypermarkets, supermarkets and specially stores.
The retailing, configuration in India is fast developing as shopping malls are increasingly, becoming familiar in large cities. When it comes to development of retail space, specially the malls, the Tier II cities are no longer behind in the race. If development, plans till 2007 is studied it shows the projection of 220 shopping malls, with 139, malls in metros and the remaining 81 in the Tier II cities. The government of, states like Delhi and national capital region (NCR) are very upbeat about, permitting the use of land for commercial development, thus increasing, the availability of land for retail space; thus making NCR render to 50% of the, malls in India.
The Indian Retail Scene
India, is the country having the most unorganized retail market. Traditionally it is a, family’s livelihood, with their shop in the front and house at the back, while they, run the retail business. More than 99% retailers, function in less than 500 square feet of shopping space. Global retail consultants, KSA Techno park have estimated that organized retailing in India is expected to ,touch Rs 35,000 crore in the year 2013-14. The Indian retail sector is estimated at ,around Rs 90,000 crore, of which the organized sector accounts for a mere, 2 percent indicating a huge potential market opportunities that is lying in the ,waiting for the customer savvy organized retailer.
Purchasing power of Indian urban consumer is ,growing and branded merchandise in categories like Apparels, cosmetics, Shoes, Watches, are slowly ,becoming lifestyle products that are widely accepted by the urban Indian. consumer. Indian retailers need to advantage of this growth and aiming to grow, diversify and introduced new formats have to pay more attention to the brand, building process. The emphasis here is on retail as a brand rather than retailers, selling brands. The focus should be on branding the retail business itself. In their, preparation to face fierce competitive pressure, Indian retailers must come to, recognize the value of building their own stores as brands to reinforce their, marketing positioning, to communicate quality as well as value for money. The Indian, retail scene has witnessed too many players in a short time, crowding several, categories without looking at their core competencies, or having as well, thought out branding strategy.
Strategies, Trends and Opportunities
Retailing in India is gradually inching its way toward, becoming the next boom industry. The whole concept of shopping has altered, in terms of format and consumer buying behavior, ushering in a revolution in, shopping in India. Modern retail has entered India as seen in sprawling shopping, ce
[supanova_question]
Research design essay help for free
2.7 RESEARCH DESIGN USED :
The conception of research design plan is the critical step in the research process. The design ,of the study constitutes the blue print for the collection, measurement and analysis of data. In other words the research design is a conceptual structure with in which,h research is conducted.
2.8 DATA COLLECTION METHODS :
Primary Data: – Primary data are those data which are collected for the first time, and thus hap,pen to be original in character. It is extracted with the help of discussions co,nducted with senior managers with respect to factors affecting the performance.,
Secondary Data: – Secondary data are those data which are already collected by someone else ,and which have already passed through the statistical process. These data are g,athered by Books, Lectures, Notes, and Official Websites etc.
The study make,s extensive use of secondary data. ‘Secondary data are those which have already,y been passed through the statistical process’. The data which is pre-essential for ,this study relating to comparative analysis of Balance Sheet and PROFIT AND L,OSS A/c was based on secondary source of data. This data will be collected fro,m materials provided by Rakshitas Pvt. Ltd., discussions conducted with store m,anagers and some essential
Financial Accounts books.
2.9 LIMITATIONS :,
‘ Data provided is very limited due to the subjectivity of it being highly confidential.,
‘ The data taken for interpretation is for a limited period.
‘ Assumptions, are to be taken into consideration while doing analysis and interpretation, of data.
‘ Due to limited, information, depth analysis could not be made.
2.10 RESEARCH MEASURE TOOLS :
Various financial techniques and statistical tools are used to measure the data used in the study. Column graphs, pie chart etc. is used to highlight the statistical inference,s. The study cannot be completed without balance sheet and profit and loss a/c. ,Therefore three years balance sheet and profit & loss a/c has been taken out for ma,king proper research.
2.11 ANALYSIS OF DATA :
The data collected is secondary, and it’s compiled, classified, tabulated and then analyzed u,sing financial techniques and statistical tools. Graphs and charts are used to hig,hlight the statistics. Based on this data and analysis, inferences are drawn accor,dingly.
2.12 OVER VIEW OF THE CHAPTER :
The Project I,s Presented in the following chapter :-
CHAPTER 1 : INTRODUCTION
This chapter includes introduction to finance, theorectical back ground for the study of the ,various performance, introduction to finance, definition of retail industry and di,fferent type of industry.
CHAPTER 2 : DESIGN OF THE STUDY
This chapter I,ncludes the projects introduction of the subject background, statement of the, problem, objectives of the study, scope of the study, need and purpose of study,, research methodology, research design, data collection method primary and seco,ndary data, limitations, research measure tools and analysis of data.,
CHA,PTER 3 : PROFILE OF THE COMPANY
This c,hapter contains the profile of the company, its origin and background, board of directors, number of branches and organization structure.
CHAP,TER 4 : DATA ANALYSIS AND INTERPRETATION
This ch,apter consists of Table, Graphs, Analysis and Interpretation based on the question,nairies.
CHAPT,ER 5 : SUMMARY OF FINDINGS, CONCULSIONS AND RECOM,MENDATIONS
This chap,ter includes findings based on objectives of the study, conclusion drawn from the f,indings and recommendations given from the analysis.
Chapter:-3
PROFILE OF THE ORGANIZATION
COMPANY PROFILE
RAKSHITAS PVT.LTD.
Rakshitas business con,cept is to offer a broad and varied range of apparels that allows customers to fin,d their own personal style to choose from more than 150 remiums national and int,ernational brands.
Rakshitas is aimed at everyone in the family with an interest in modern basics, fashion, quality and affo,rdable pricing. Customers should always be able to find clothes and accessories ,at Rakshitas for every occasion. The collections are extensive and new arrivals, being launched week after week in each of the 4 floors spread across 20,000 s,q. ft. for Men, Women, Kids and Teen’s casual wear, formal wear, denim wea,r, ethnic and Kancheevaram silks etc. The range and collections are supplemen,ted by matching costume jewellery, premium international watches, perfumes, ,lingerie’s.
Mission
Our mission is to achieve excelle,nce in the products and services we offer, in the methods we employ and in the res,ult we produce.
Products
Menswear: menswear,r means clothing for men. Rakshitas provide various brands for menswear which ,includes formal shirts, casual shirts, trousers, jeans etc. of several variety of int,ernational as well as national brands, for example: -levis, pepe jeans, killer, lee, w,rangler etc.
Women’s wear: Women’s wear means ,clothing for women. Rakshitas provides the best options for women’s apparel rang,ing from skirts to ethnic, casuals as well as formals.
Kids wear: Kids wear are meant only for kids or children ranging below age of 12 years. Rakshitas provides awesome collection for kids which include children formal wear, kurtas, shirt,s etc.
Party wear: Party wear dresses are meant for wearing in parties, functions, special occasions etc. Rakshitas provides variety ranges of party wear which includes lehngas, wedding dresses, traditional indian dress etc.
[supanova_question]
Control and organisational behaviour (pengendalian dan perilaku organisasi) essay help writing
PENGENDALIAN DAN PERILAKU ORGANISASI
PERILAKU ORGANISASI
Untuk membuat dasar yang nantinya dapat digunakan manajemen dalam menyusun system pengendalian manajemen, maka kita perlu mengetahui lebih dalam mengenai perilaku organisasi. Berikut ini adalah beberapa penjelasan mengenai teori akuntansi sebagai bentuk pemahaman terhadap organisasi.
Definisi Organisasi
Secara umum, organisasi diartikan sebagai sekumpulan orang yang melakukan kerjasama demi mencapai tujuan ‘ tujuan yang telah ditentukan bersama. Organisasi tercipta ketika orang ‘ orang bergabung dan melakukan sesuatu untuk berbagai tujuan dan organisasi dapat mencakup segala aspek dalam kehidupan. Organisasi dapat bersifat formal dan informal. Pekerjaan di dalam suatu organisasi dapat dibagi ‘ bagi dan dikoordinasi sesuai dengan kebutuhan dan keahlian tiap ‘tiap anggota organisasinya untuk mencapai tujuan organisasi tersebut. Suatu organisasi haruslah going concern, dalam arti organisasi tersebut diasumsikan akan hidup selamanya.
Teori Perilaku Organisasi (Theory of Organization Behaviour)
Ada beberapa teori yang menjelaskan mengenai mengapa dan bagaimana orang ‘ orang berperilaku dalam organisasi. Berikut ada dua penjelasan mengenai teori tersebut :
1. Teori jenjang kebutuhan
Teori ini menjelaskan bahwa setiap manusia memiliki kebutuhan yang banyak dan harus dipenuhi dan kebutuhan serta keinginan tersebut tersusun secara rapih, sehingga apabila ada satu kebutuhan terpenuhi maka setelah itu ia akan berusaha memenuhi kebutuhannnya yang lebih tinggi. Dalam teori ini tersirat bahwa system pengendalian manajemen juga didasarkan pada kebutuhan manusia yang terkoordinasi dan dilakukan sesuai dengan tujuan organisasi.
2. Teori motivasi pencapaian
Teori ini lebih mengacu pada perilaku atasan atau manajer dalam perannya saat berorganisasi. Untuk mencapai keberhasilan dan mendapat sebuah kekuasaan, maka manajer tersebut juga perlu memiliki keinginan yang kuat agar dapat menghasilkan prestasi dalam organisasi.
TEORI ORGANISASI
Pengetahuan yang dalam mengenai organisasi sangatlah diperlukan oleh para pelaku organisasi dalam pelaksanaan system pengendalian manajemen organisasi tersebut. Para pelaku organisasi harus benar ‘ benar mengetahui semua poin dalam organisasi termasuk sejarah organisasi, tujuan organisasi, bagaimana perilaku para pelakunya hingga reaksi organisasi tersebut terhadap lingkungan.
Tak berbeda dengan teori perilaku akuntansi, dalam teori organisasi juga terdapat banyak teori yang membahas mengenai organisasi. Dan disini akan dibahas mengenai dua teori juga tentang organisasi, yaitu :
1. Teori Organisasi yang Berorientasi ke Dalam
Banyak organisasi dianggap indepen dan tidak terlalu memperhatikan lingkungan luar oleh beberapa teori. Teori organisasi yang berorientasi ke dalam ini banyak dijadikan dasar oleh sebagian besar system pengendalian manajemen dalam suatu organisasi hal tersebut didasarkan karena dalam teori ini mencakup tanggung jawab dalam pengambilan keputusan yang berlaku menurut proyek ‘ proyek, program ‘ program serta komponen ‘ komponen fungsionalnya.
2. Teori Organisasi yang Berorientasi ke Luar
Teori ini adalah teori kebalikan dari teori sebelumnya yaitu teori organisasi yang berorientasi ke dalam. Teori ini beranggapan bahwa suatu organisasi selalu berhubungan dengan lingkungan di sekitarnya. Ada dua jenis organisasi yang menganut teori organisasi yang berorientasi keluar ini, yaitu :
– Organisasi system umum terbuka
– Organisasi system manajemen
TIPE ORGANISASI
Ada tiga jenis atau tipe organisasi, yaitu :
1. Organisasi Fungsional
Dalam tipe organisasi ini, penekanan lebih ditujukan kepada manajer yang sangat harus bertanggung jawab terhadap suatu fungsi tertentu, seperti fungsi produksi, fungsi pemasaran dan fungsi lainnya yang diterapkan dalam organisasi tersebut. Fungsi ‘ fungsi tersebut dapat dihimpun oleh fungsi yang lebih tinggi dalam organisasi itu juga. Organisasi ini berpotensi membuat efisiensi perusahaan yang lebih baik karena menggunakan masukan ‘ masukan dari manajerial yang lebih tinggi.
2. Organisasi Divisi
Dalam organisasi ini, semua manajer harus bertanggung jawab terhadap hamper keseluruhan fungsi dalam proses produksi serta distribusi lini pada organisasi tersebut. Orientasi organisasi divisi lebih terbuka yang berarti lebih menekankan bahwa para manajer harus peka terhadap pengaruh ‘ pengaruh yang dating dari luar yang mungkin dapat mempengaruhi kinerja organisasi.
3. Organisasi Matriks
Ada dua struktur organisasi dalam organisasi matriks, yaitu ditata berdasarkan fungsi dan ditata berdasarkan program. Pada organisasi matriks, para manajer bertanggung jawab penuh atas profitabilitas dari lini produk organisasi tersebut dimana proses produksi dilakukan oleh unit ‘ unit organisasi fungsional.
Teori Kemungkinan (Contingency Theory)
Untuk mengendalikan suatu manajemen menggunakan tiga macam pendekatan, antara lain :
1. Pendekatan tradisional
Pendekatan ini menekankan pada perencanaan, pendekatan dan pengendalian.
2. Pendekatan system
Pendekatan ini menekankan padapenggunaan sumber daya manusia sebagai pertimbangan dalam pengambilan keputusan.
3. Pendekatan perilaku
Pendekatan ini menekankan pada pengendalian manusia termasuk di dalamnya motivasi dan prediksi.
PERILAKU MANAJEMEN
Organisasi dan sistemnya yang rumit akan mempengaruhi perilaku manusia menjadi rumit pula.
Konsep Fundamental
Agar suatu organisasi ‘terkendali’ maka para anggota organisasi harus mengetahui dengan baik apa sebenarnya yang diinginkan oleh manajemen. Untuk merealisasikan hal tersebut, dapat menggunakan banyak informasi yang telah disediakan oleh manajemen organisasi seperti anggaran hingga kebijakan organisasi. Tujuan organisasi dibuat oleh para manajer senior dan dilaksanakan oleh manajer operasional untuk selanjutnya para manajer senior menerapkan system pengendalian manajemen untuk mengontrol organisasi tersebut.
Persepsi Tujuan
Para manajer operasional harus benar ‘ benar mengetahui apa tujuan organisasi. Para manajer operasional tersebut dapat secara mudah mendapatkan informasi ‘ informasi yang mereka butuhkan dari berbagai sumber baik dari dokumen maupun percakapan informal saja. System pengendalian manajemen yang efektif dapat menguatkan kepastian suatu perusahaan.
Organisasi Informal
Adanya organisasi informal di dalam organisasi formal sering menyebabkan adanya salah persepsi mengenai tindakan yang diharapkan. Hubungan pada organisasi informal tidak tercantum di dalam bagan organisasi, padahal hal tersebut cukup penting untuk pemahaman system pengendalian organisasi tersebut.
Motivasi
Reaksi pada pelaku organisasi terutama manajemen terhadap organisasi dapat berbeda tergantung pada motivasinya. Motivasi dapat bermacam ‘ macam, misalnya kenaikan gaji, promosi, pujian dan lain ‘ lain. Motivasi timbul dari dalam pribadi masing ‘ masing, tetapi motivasi dapat dipengaruhi oleh rangsangan dari lingkungan sekitarnya.
Keselarasan Tujuan (Goal Congruence)
Setiap manusia memiliki tujuan pribadi, begitu juga dengan organisasi yang juga memiliki tujuan bersama. Salah satu tugas penting system pengendalian adalah menyelaraskan kedua tujuan tersebut serta mencapainya demi mendapatkan kepuasan bersama. Semakin kuat hubungan antara tujuan pribadi dan tujuan organisasi, maka ssistem pengendalian organisasi tersebut akan semakin kuat juga.
Kerjasama dan Konflik
Suatu organisasi tidak akan berjalan dengan baik apabila para anggotanya tidak bekerjasama dengan baik secara terkoordinasi, untuk itu di dalam organisasi sangat dibutuhkan kerjasama yang terkoordinir dan selaras. Selain itu, organisasi juga harus menjaga koordinasi dan keselarasan tersebut agar tidak terjadi konflik yang dapat mengganggu kinerja organisasi. Konflik tersebut dapat terjadi karena berbagai alasan, salah satunya adalah dengan adanya persaingan didalam organisasi tersebut.
Iklim Organisasi (Organizational Climate)
Secara singkat, iklim organisasi dapat diartikan sebagai hasil kombinasi dari struktur formal dan struktur informal pada suatu organisasi. Dan menurut pemahaman saya iklim organisasi merupakan suasana di dalam organisasi dimana tiap pelaku organisasi di dalam organisasi saling membantu, saling menilai, dan memahami antara satu dengan yang lain. Iklim organisasi ikut mengambil bagian penting dalam organisasi. Keduanya saling mempengaruhi satu sama lain.
‘
Tipe Pengendalian
Pelaku pengendalian Sumber arah pengendalian Macam ‘ macam Pengendalian
Ukuran prestasi dan tingkah laku Isyarat untuk tindak koreksi Imbalan untuk prestasi Hukuman untuk kegagalan
Organisasi formal Rencana organisasi, strategi, tanggapan atas persaingan Anggaran, biaya standar, target penjualan penyimpangan Penghargaan manajemen, insentif uang, promosi Minta penjelasan
Kelompok informal Keterikatan bersama cita’cita kelompok Norma-norma kelompok penyimpangan Pengakuan rekan, keanggotaan, kepemimpinan Ejekan, pengasingan, permusuhan
Perorangan Tujuan pribadi, aspirasi Harapan pribadi, target antara Dugaan akan kegagalan di masa yang akan dating, target tak tercapai Kepuasan karena ‘terkendali’ kegembiraan Merasa gagal
Sumber : Disarikan dari Gene W. Dalton dan Paul R. Lawrence, Motivation and Control in Organizations (Homewood, III. : Richard D. Irwin, 1971). Hak Cipta 1971 oleh Richard D. Irwin Inc.
‘
Variasi dalam Pengendalian
Hakekat system pengendalian manajemen dibedakan menurut sifat pekerjaan, macam organisasi, lingkungan daan peran manajer. Berikut adalah tiga dimensi yang perlu diperhatikan dalam penggunaan dan pengembangan system pengendalian manajemen :
1. Besar keleluasaan manajemen
2. Besar interdependensi
3. Rentang waktu pelaksanaan
FUNGSI KONTROLER
Kontroler dapat diartikan sebagai petinggi atau pejabat yang bertanggung jawab atas apa yang telah direncanakan oleh organisasi dan bagaimana pengoperasiannya. Tanggung jawab para kontroler berbeda ‘ beda di tiap organisasi bahkan di tiap divisinya. Tanggung jawab kontroler didasarkan pada posisinya masing ‘ masing. Tanggung jawab tersebut dilaksanakan secara langsung. Selain tanggung jawab dalam perencanaan dan pengoperasian tersebut, berikut ini adalah fungsi lain dari kontroler :
a. Menyiapkan laporan kepada pihak pemerintah serta pihak ‘ pihak luar lainnya.
b. Mempersiapkan pengembalian pajak.
c. Mempersiapkan dan melakukan analisa terhadap laporan prestasi keuangan.
d. Membantu para manajer dengan cara melakukan analisa sertab menafsirkan laporan ‘ laporan tersebut.
e. Menggunakan prosedur pemeriksaan intern dan pengendalian akuntansi, memastikan validitas informasi, menetapkan usaha perlindungan yangcukup terhadap berbagai penyimpangan serta melakukan pemeriksaan operasional.
f. Melakukan pengembangan kepada orang ‘ orang yang ia pimpin serta berperan langsung dalam penambahan pengetahuan mengenai fungsi kontroler
g. Mengadakan manajemen kas, asuransi serta kegiatan ‘ kegiatan lainnya demi pengamanan kekayaan perusahaan.
Hubungan dengan Organisasi Lini
Kontroler juga memiliki hak untuk membuat kebijakan ‘ kebijakan dalam organisasi. Namun keputusan ‘ keputusan tersebut merupakan realisasi pelaksanaan kebijakan ‘ kebijakan yang telah dibuat oleh manajer lini. Dengan kata lain, terdapat keselarasan antara kedua belah pihak. Hal tersebut tentunya sangat baik untuk menjaga kelancaran jalannya organisasi tersebut.
Kontroler Divisi
Kebanyakan perusahaan atau organisasi membagi organisasinya tersebut menjadi beberapa divisi yang dikepalai oleh seorang manajer. Manajer divisi tentu juga memiliki kontroler divisi. Dalam hal ini, kontroler divisi harus patuh kepada manajer divisi dan juga kontroler perusahaan yang terkadang beda kepentingannya. Penilaian prestasi terhadap kontroler divisi dapat dilakukan dengan menilai beberapa poin, antara lain :
– Laporan akuntansi dan keuangan
– Pengetahuan mengenai operasi divisi
– Sasaran dan pelaksanaan kepatuhan terhadap kebijakan
– Kontribusi manajemen
– Pengetahuan terhadap akuntansi
– Kejujuran dan profesionalisme
– Kemauan bekerjasama
– Organisasi dan staf
– Inisiatif dan semangat
‘
HUBUNGAN LINI-STAF
Seorang manajer divisi dapat dikatakan tidak memiliki staf maupun asisten pribadi. Manajer tersebut mendapatkan bantuan dari :
1. Tenaga yang ditugaskan untuk membantunya dari staf umum, insinyur serta petugas pembelian
2. Staf pusat yang dapat dimintai bantuan kapan saja sebanyak mungkin.
HUBUNGAN MANAJER DIVISI ‘ KONTROLER
Untuk mencapai kesuksesan organisasi dalam hubungannya dengan manajer divisi, maka organisasi perlu membina kerjasama yang baik dan solid di tiap ‘ tiap manajemen. Berikut merupakan beberapa factor yang dapat mempengaruhi hubungan baik adalah :
1. System akuntansi yang seragam dan terpusat
2. Sasaran ‘ saasaran keuangan yang telah ditetapkan sebelumnya untuk tiap ‘ tiap divisi.
(Pertumbuhan penjualan serta besar laba penjualan)
3. Pembagian laba antara kontroler dan manajer
SISTEM AKUNTANSI
Selain memiliki tanggung jawab dalam perencanaan dan pengoperasian organisasi, divisi kontroler juga memiliki kewenangan atas system akuntansi yang akan digunakan oleh organisasi tersebut termasuk di dalamnya menetapkan cara dan jenis pos ‘ pos yang harus mereka awasi. Sistem akuntansi dijadikan dasar dalam penyusunan laporan keuangan beserta analisisnya.
SASARAN ‘ SASARAN DIVISI
Seperti yang telah disebutkan pada bagian sebelumnya, perusahaan atau organisasi memiliki sasaran keuangan, yaitu pertumbuhan penjualan dan tingkat laba. Tingkat laba dalam organisasi atau perusahaan ditetapkan sebaga persentase penjualan. Berikut ini adalah beberapa factor penentu target laba penjualan :
1. Kemungkinan pematenan produk
2. Besar laba atas investasi yang diinginkan
3. Besar laba industry bersangkutan
4. Besar laba investasi bersangkutan
[supanova_question]
Business notes: Creative problem solving writing an essay help
1 Unit 1 – Creative problem solving
1.1 Introduction
A business leader is expected to identify problems, implement solutions and find business opportunities. To do so, they must learn to plan, analyse situations, identify and solve problems (or potential problems), make decisions, and set realistic and attainable goals for the business/unit. These are the fundamental thinking/creative requirements for leadership, and these set direction to a successful future. Without this critical competence, you will have to rely on others to do your thinking for you, or you will simply have to learn to nurture your creative thinking skills which will help you on your journey towards successful business.
Creative thinking forms part of this continuous problem solving process, and is the fundamental basis for facilitating in the development of solutions, new initiatives, products or services. In an entrepreneurial context, the end result of this process should be directly linked to a feasible opportunity in the market environment.
Quote – What lies behind us and what lies before us, are tiny matters, compared to what lies within us. – William Morrow
The creative problem solving process consists of the following four steps:
‘ Problem analysis
‘ Solution analysis
‘ Decision analysis
‘ Solution implementation
1.2 The process
The creative problem solving process consists of an important core process, namely the idea generation process see figure 1. This is an important step, especially if you need to come up with creative ideas for products, services, and processes, to solve a consumer problem. The idea generation process consists of the following four steps:
‘ Step 1 – Generating ideas
‘ Step 2 – Developing ideas into a concept
‘ Step 3 – Converting a concept into a tangible or intangible product
‘ Step 4 – Finally protecting the tangible or intangible product
Figure 1 – The process of creative thinking (idea generation)
Initially you need to understand the problem and find the root cause of the problem. Many techniques are available to find the causes of problems, you can use the 5 Why technique in this case, if you are familiar with it. The more advanced courses will describe how to use the major problem identification techniques, but this course will focus on the idea generation process.
1.3 Where to start
In the entrepreneurial phase, the best way to start the idea generation process is when you are required to come up with a new product or service, to identify a potential consumer problem. Initially, focus on identifying problems in the area of your expertise (your knowledge base).
If you have no knowledge of the problem, the product development stage could be a challenge for you.
You will learn in the next section that not all problems are opportunities, and entrepreneurs should be careful as to how they approach this stage, when generating ideas in trying to identify a new product or service.
1.4 Problem versus opportunity
In most cases, the idea-generation phase in the creative problem solving process is neglected. Individuals normally identify a problem or an opportunity (which may seem like an opportunity, but is actually just an idea), and then develop a new product in line with the new assumed idea or opportunity. It is therefore important to distinguish between an idea and an opportunity. Resources may be wasted if a mere idea is incorrectly perceived as an opportunity.
Any opportunity is initially problem based (e.g. a coffee shop in a destination where there is a lack thereof, this creates several problem situations and potentially feasible opportunities for the entrepreneur). The creative thinking (idea generation process) involved, is the means to solving these problems, and bring forth solutions to the market problems, which create further opportunities.
1.4.1 Difference between problem and opportunity
There is, however, a critical difference between a problem and opportunity. Consider the following:
‘ Is it an idea or an opportunity to develop a high speed train between two major cities which are not far from each other? Some may say it is a great idea, but when you need to pay R200 a day to make use of it, it is simply not an opportunity. Only a few people would make use of the service, resulting in a negative impact on the market.
‘ If it is possible to transport people between the two cities for a lower cost, say R10, it would possibly be a more feasible opportunity.
Here is a good example of an opportunity – Around the turn of the twentieth century, a shoe manufacturer sent a representative to Africa, to open up a market in the undeveloped area in that continent. After exploring the culture for a month, the rep sent a telegram to the home office shouting,
‘Disaster! Disaster! These people do not wear shoes. Bring me home immediately!’
A short time later, another shoe company sent their agent to Africa for the same purpose. A month later his home office also received a telegram:
‘Opportunity! Opportunity! These people do not wear shoes! Triple production immediately!’
Quote – Every situation contains the potential for disastrous problems or unprecedented success. The event is what we perceive it to be. Unknown
Now the question arises: How do I distinguish between an idea and an opportunity? Looking at above examples, every problem is not an opportunity, and it really depends at how you are looking at the problem. If you see a viable opportunity in a problem then you are looking at the problem with a different perception than most people (the glass is half full or half empty). From a business perspective all opportunities are not necessarily a viable opportunity, the market determines the available opportunities. Without the knowledge to interpret the market conditions, you could miss it totally in terms of your opportunity analysis.
Table 1 shows the different industries in South Africa, the level of entrepreneurial activity, and how the same opportunity differs in each of these market areas.
1.4.2 The global entrepreneurship monitor
The Global Entrepreneurship Monitor ‘ specifically identified the entrepreneurial activity in the various industries of South Africa. It can be generalized to state that an industry with a high level of entrepreneurial activity, gives away more business opportunities (e.g. manufacturing, retail, hotel, restaurant and business services), while one with a lower level will indicate far less opportunities (e.g. agriculture, forestry, hunting, fishing, finance, insurance, real estate and health, education and social services).
If we analyse just one ‘high-opportunity’ industry, for instance manufacturing, it may be an opportunity today to manufacture a final product, and export it to an international market. A ‘low-opportunity’ industry, for instance insurance (especially in the market entry phase), may be negative as having an extremely high crime rate and insurance companies have to pay out claims at an alarming rate. It is also evident that low-opportunity industries may create feasible opportunities.
An entrepreneur should therefore be wary of following a fad, (latest trend) and exploiting assumed opportunities in a ‘popular’ industry.
Percentage of Entrepreneurs
ISIC Category Start-ups New Firms Total
Agriculture, forestry, hunting, fishing 1,3 2,6 1,6
Mining, construction 9,7 5,0 4,1
Manufacturing 14,3 19,1 13,8
Transport, communications, utilities 9,8 0,7 8,0
Wholesale, motor vehicle sales, repairs 6,0 6,5 6,3
Retail, hotel, restaurant 40,8 47,7 43,5
Finance, insurance, real estate 0,3 5,2 1,4
Business services 10,1 7,9 9,4
Health, education, social services 2,6 0,7 2,3
Consumer services 11,0 3,5 9,7
Source: Driver. Wood, Segal & Herrington, 2001
Table 1 – The percentage of entrepreneurs in the different industries in South-Africa
1.4.3 What is an opportunity?
What exactly is an opportunity and how does an entrepreneur exploit a feasible opportunity? According to Hesrich & Peters (2002), an opportunity is the process whereby the entrepreneur assesses whether a certain product, service or process, will yield the necessary earnings based on the resource inputs that are required to manufacture and market it.
‘
The nature of opportunities needs to be assessed – thus, what leads to the existence of an opportunity? The following factors may result in an opportunity:
‘ General and specific problems faced by consumers
‘ Market shifts
‘ Government regulations
‘ Competition
There are two equally important criteria in the assessment of an opportunity. Firstly, the size of the market – will the number of customers reward the input and energy required, to create and deliver the product?
Secondly, the length in terms of the frame of the opportunity (window of opportunity). For example, is the demand for this product only a short fashionable phenomenon or is it based on sustainable business, or how long will it take before someone else (a competitor), to grab the opportunity?
These two aspects should also link directly to the personal skills and competence of the entrepreneur. For example, entrepreneurs with no skills or interest in information technology will not necessarily achieve their personal goals. They should rather venture into an opportunity which suits their experience and personality.
1.4.4 Transform opportunity into a business
Table 2 shows how the development of a business plan links to the identification and evaluation of opportunities, the determination of the resources required and the eventual management of the enterprise. All of these factors play a significant role in the correct assessment of the business opportunity.
This means that the business plan must explain in sufficient detail how the business will exploit the situation, to transform the opportunity, into solving a problem for the consumer, which generates extraordinary profits for the people involved.
‘
Identify and evaluate the opportunity Develop the business plan Determine the resources needed Manage the enterprise
Creation and length of opportunity
Real and perceived value of opportunity
Risk and returns of opportunity
Opportunity versus skills and goals
Competitive situation Title page
Table of contents
Executive summary
Description of business
Description of industry
Marketing plan
Financial plan
Production plan
Organisational plan
Operational plan
Summary
Appendices Existing resources of the entrepreneur
Resource gap and available supplies
Access to needed resources Management style
Key variables for success
Identification of problems and potential problems
Implementation of control systems
Source: Hisrich, R.D. & Peters, M.P. 2002: 40. Entrepreneurship. Boston: Irwin/McGraw-Hill.
Table 2 – Link between Opportunity and business plan
1.5 Instruction
Exit and resume to your current page.
[supanova_question]
The importance of employee engagement in an organization high school essay help
1.4 Literature Review
Mark Kilsby and Stephen Beyer (1996) ‘ Engagement and Interaction : A comparison between supported employment and acts’. This research study was conducted with the help of interaction and commitment patterns of 13 supported employees and 38 regular adult training center attainders of the organization. Direct observation was used as method of data collection, within the 13 employment sites and a representative sample of ATC organized activities. Because of the higher level of task specific dialogue between individuals and the service of the organization it is found that there is more of social interaction in ACT. Interaction of employees with public within office hours was the cause for this as per the study conducted.
Douglas R. May, Richard L, Gilson and Lynn M . Harter (2004) ‘The Psychological Conditions Of Meaningfulness ,Safety And Availability And The Engagement Of The Human Spirit At Work’. This shows the study about a U.S western company which explored the determinants and mediated the effects of tree psychological conditions they are meaningful, safe and available. The above studies shoes that all the three factors (meaningfulness, safety and availability) have a positive relation with the engagement of an employee in the organization. In other words they are completely associated with the psychological safety where as loyalty to co worker norms and self- consciousness are negatively related.
Despoina Xanthopaolou, Arnold B, Bakker, Evangelia Demerouti and Wilmar B.Schaufeli (2009) ‘Work Engagement And Financial Returns : A Diary Study On The Role Of The Job And Personal Resources’. The above study shows that how daily fluctuations in job can affect the level of personal resource , financial returns and work engagement. Different level of analysis revealed that day level job resources had an effect on work engagement through the day level personal resources. When there was a control for the general level of personal resources and organizational engagement Day level work engagement showed a positive way towards day level training, which in turn showed the financial returns.
Dan-Shang Wang and Chia ‘Chun Hsieh (2013) ‘The Effect Of Authentic Leadership On Employee Trust And Employee Engagement’ they have examined the genuine leadership on employee engagement through employee trust. They have collected data from 386 employees from top 1000 manufacturing companies and top 500 service companies in Taiwan. Hierarchical multiple regression was used to test the hypothesis on the employees. Later on the results shows that the consistency between the supervisors , words and actions as well as their moral perceptions are optimistically related to employee engagement , when only supervisors are consist between the words and actions in positively related employment trust. The study shows how employee engagement had a positive trust on employee. Employee trust has a partial link between authentic leadership and employee engagement.
Benjamin J.C, Yuan and Michael B.H. Lin (2012) ‘Transforming Employee Engagement Into Long-Term Customer Relationships: Evidence From Information Technology Salespeople In Taiwan’. This article shows that when information sales people in Taiwan have perceived more transformational leadership and they were more expected to show increased development in work engagement. Over a period of time it was found that increased development in work engagement influenced the increased customer relationship. It showed how employee engagement is indirectly co related with customer relationship.
Xander M.Bezuijen, Karen Van Dam, Peter T . Van Den Berg and Henk Thierry (2010) ‘How Leaders Stimulate Employee Learning : A Leader ‘ Member Exchange Approach’. This study investigated how the three factors as such as leader member exchange, goal setting, and feedback are related to employee engagement in the learning activities. Here, two different mechanisms were proposed , first one a mediating mechanism telling that leader member exchange shows specific leader behavior. The second one is it as a moderating mechanism , holding that leader member exchange will strengthen the effect of leader behavior from 7 organizations a sample of 1112 employees was taken , to measure the leader member exchange approach. 233 of the direct leaders answered that they find difficulty in rating employee engagement in learning activities.
Maureen F.Dollard and Arnold B. Bakker (2010) ‘Psychosocial Safety Climate As A Precursor To Conducive Work Environment , Psychological Health Problems , And Employee Engagement’. This article shows the gap between work psychology and psychosocial working condition. Where we construct a psychosocial working condition PSC. It explains how PSC influences the senior management in psychological working conditions and in psychological health and engagement. They use the job demand and resources as a frame work and uses a multi level thinking into their explanation
James R.Jones (2009) ‘Comparative Effects On Race/Ethnicity And Employee Engagement On Withdrawal Behavior’. This study have added knowledge on the basis of effects on employee attachment. In addition to that it provides more evidence on looking at all types of employees as a single entity which can lead to false results.
Shane Crabb ( 2011) ‘The Use Of Coaching Principles To Foster Employee Engagement’. The above article focuses on the human condition that leads to the happiness of fulfillment and flourishing of employee engagement. Where positive psychology results in so many questions from traditional psychological approaches .Which have mean to focus on a different model of human functioning with healing people fail. In another way positive psychology takes additional holistic approach to human life. Seeing the positive and negative aspects of context when establishing what is right , working and good of people.
Roberta A . Neault and Deidre A .Pickerel (2011) ‘Career Engagement : Bridging Career Counseling And Employee engagement’ . this article is showing that employee counselors helps individuals in maximizing their career engagement at any career stage of an individual. When you facilitate career engagement it contributes to employee engagement which employee are looking for. They even encourages others to use the career engagement and employee engagement models as vehicles to combine the employers to interest in engagement counselors to create interest in supporting the development of employee an motivate them to work.
2.1 Title: A Cross Sectional Study Of Employee Engagement In Apollo Hospitals.
2.2 Objectives:
1. To determine the level of Employee Engagement in Apollo Hospitals.
2. To identify the factors of Employee Engagement.
3. To analyze and suggest strategies for improvement.
2.3 Research Methodology:
I had adopted descriptive research design for the purpose of this
Survey on employee engagement. The primary data was collected from the 100 employees conveniently selected from Apollo Hospitals Bangalore, through structured questionnaire.
2.4 Limitations:
1) The survey was carried out for a sample sized of 100 working staff only.
2) Findings and suggestion of this research are applicable only to Apollo Hospitals.
3) As an fact finding study advanced statistical tools or analysis are not used.
Table 1.1 Weighted Average on Opportunities for growth
X 1 2 3 4 5
I have adequate opportunities for professional growth in this organization. (X1) 10 20 32 19 19
I receive the training I need to do my job well.(X2) 2 52 22 16 08
My manager is actively interested in my professional development and advancement.(X3) 32 21 12 18 17
My manager encourages and supports my development (X4) 08 10 40 18 24
I am encouraged to learn from my mistakes (X5) 52 23 16 04 05
My work is challenging, stimulating, and rewarding(X6) 28 14 33 16 09
X1 ?? XI X2 ?? X2 X3 ?? X3 X4 ?? X4 X5 ?? X5 X6 ?? X6
10 50 2 10 32 160 08 40 52 260 28 140
20 80 52 208 21 84 10 40 23 92 14 56
32 96 22 66 12 36 40 120 16 48 33 99
19 38 16 32 18 36 18 36 04 08 16 32
19 19 08 08 17 17 24 24 05 05 09 09
TOTAL 283 TOTAL 324 TOTAL 333 TOTAL 260 TOTAL 413 TOTAL 336
Table 1.2 Calculation Of Weighted Average on Opportunities for growth
283/100 2.83 324/100 3.24 333/100 3.33 260/100 2.60 413/100 4.13 336/100 3.36
RANKED 6 RANKED 4 RANKED 3 RANKED 5 RANKED 1 RANKED 2
Table 1.3 Showing The Rank Of Each Component of Opportunities for growth
INFERENCE
The above table shows that the employees are encouraged to learn from their mistakes that is 4.15 out of 5.the work is stimulating rewarding and challenging is ranked 2nd.the manager is actively interested in employees professional growth is
ranked 3rd.the level of opportunity for professional growth shows the least ranking.
‘
Table 1.4: Showing Adequate Opportunities/ Professional growth
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
10 20 32 19 19 100
Chart 1.1: Showing Adequate Opportunities/ Professional growth
Interpretation:
32% of the employees from the given population says that they have a neutral opportunity to grow where as 10 % stands in the outstanding category and 20% of them in good category. An equal no of employees disagree to the fact in the other hand that is 19% of the given population.
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
2 52 22 16 8 100
Table 1.5: Showing Training
Chart 1.2: Showing Training
Interpretation:
In the given sample 52% of the employees agrees to the fact that they receive good training in order to do their job efficiently and 2% strongly agrees. where 22 % is neutral to the situation given.16 % of them do not get proper training they required to do their jobs and 8 % strongly disagree to it. It is clear that the organization is giving a proper training to employees to make their work effective.
Table 1.6: Showing Professional Development And Advancement
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
32 21 12 18 17 100
Chart 1.3: Showing Professional Development And Advancement
Interpretation:
Most of the employees agree that their manager takes attention in their professional development steps. 32 % to 25 of the employees from the given sample have strongly agreed and agreed to it respectively. whereas 12 % is neutral to it . but 18% to 17% disagrees and says that they are not taken care in respective of their advancement in profession.
Table 1.7: Showing Encouragement And Support
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
8 10 40 18 24 100
Chart 1.4: Showing Encouragement And Support
Interpretation:
From the above graph its clear that 40% of the employees neither agree or disagree that management encourage them or support them. 8% to 10% agrees that they have been supported by the management . but 18 % to 24 % disagree to the fact that management supports them .
Table 1.8: Showing Challenges, Stimulation And Reward
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
52 23 16 4 5 100
Chart 1.5: Showing Challenges, Stimulation And Reward
Interpretation:
More than half , 52% of the employees states that they have a challenging stimulating and rewarding work. A very few of them disagree to it 4 % to 5% . and 23 % of them agrees t it there is a majority of people agreeing to it.
Table 1.9: Showing Encouragement
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
28 14 33 16 9 100
Chart 1.6: Showing Encouragement
Interpretation:
There is a 28% of people agreeing to it. And 16 % to 9 % disagreeing to the fact that they are not encouraged to learn from their mistakes .
Table 1.10: Showing Weighted Average on Work/Life Balance; Stress and Work Pace
X 1 2 3 4 5
My manager understands the benefits of maintaining a balance between work and personal life. (X1) 02 13 08 48 29
My job does not cause unreasonable amounts of stress in my life. (X2) 30 13 08 48 29
The amount of work I am asked to do is reasonable. (X3) 40 20 12 14 14
I am able to satisfy both my job and family/personal responsibilities. (X4) 27 12 08 09 44
X1 ?? X1 X2 ?? X2 X3 ?? X3 X4 ?? X4
02 10 30 150 40 200 27 135
13 52 13 52 20 80 12 48
08 24 08 24 12 48 08 24
48 96 48 96 14 28 09 18
29 29 29 29 14 14 44 44
TOTAL 211 TOTAL 351 TOTAL 370 TOTAL 269
Table 1.11: Showing Calculation Of Weighted Average on Work/Life Balance; Stress and Work Pace
Table 1.12: Showing The Rank Of Each Component of Work/Life Balance; Stress And Work Pace
211/100 2.11 351/100 3.51 370/100 3.7 269/100 2.69
RANKED 4 RANKED 1 RANKED 2 RANKED 3
INFERRENCE
By analysing the given data using weighted average method that the level of stress reduced in the employees is 3.51 out of 4 , and the amount of work the employee is asked to do is 3.7. the employee is able to balance between family and personal responsibility is 2.69 . the managers understanding in the benefits and maintaining balance between work and personal life should be taken care because it is got only 2.11 which have least rank
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
2 13 8 48 29 100
Table 1.13: Showing Work/Life Balance; Stress And Work Pace Balance Between Work And Personal Life
Chart 1.7: Showing Work/Life Balance; Stress And Work Pace Balance Between Work And Personal Life
Interpretation:
Only 2% of the employees says that there is a balance between work life and personal life. 13% of them agrees to it and 8% is neutral to it.but 48% of the sample disagrees and 29 % of them strongly disagrees to it.
Table 1.14: Showing Stress Level In Employees Life
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
30 13 8 48 29 100
Chart 1.8: Showing Stress Level In Employees Life
Interpretation:
30% of the employees strongly agrees that the job doesn’t cause much stress where 13% of them agrees and 8% is neutral to it. But 48%of them disagree nd 29% strongly disagrees and states that job causes stress in their life.
Table 1.15: Showing Amount Of Work Asked To Do
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
40 20 12 14 14 100
Chart 1.9: Showing Amount Of Work Asked To Do
Interpretation:
40% of them strongly agrees that they have sufficient amount of work and they do not feel any stress where 20 % of them agrees. 12% of the sample is neutral.14% of them disagrees they don’t have suffient amount of work or they are overloaded with the work given.
Table 1.16: Showing Satisfying Family / Personal Responsibilities
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
40 20 12 14 14 100
Chart 1.10: Showing Satisfying Family / Personal Responsibilities
Interpretation:
44% of them strongly disagree that they are not able to complete their job, family and personal responsibilities. 27 % to 12 % agrees to it and 8% is neutral to that. It shows that employees are not satisfied with the amount of work given to them.
Table 1.17: Showing Weighted Average on Personal Expression / Diversity
X 1 2 3 4 5
My ideas and opinions count at work. (X1) 03 18 19 32 28
I am comfortable sharing my opinions at work. (X2) 10 08 28 42 12
We work to attract, develop, and retain people with diverse backgrounds. (X3) 10 13 09 56 12
Senior management is genuinely interested in employee opinions and ideas. (X4) 24 23 36 07 10
People with different ideas are valued in this organization. (X5) 20 18 40 13 09
Table 1.18: Calculation Of Weighted Average on Personal Expression / Diversity
X1 ?? X1 X2 ?? X2 X3 ?? X3 X4 ?? X4 X5 ?? X5
3 15 10 50 10 50 24 120 20 100
18 72 08 32 13 52 23 92 18 72
19 57 28 84 09 27 36 108 40 120
32 64 42 84 56 112 07 14 13 26
28 26 12 12 12 12 10 10 09 09
TOTAL 234 TOTAL 262 TOTAL 253 TOTAL 344 TOTAL 327
234/100 2.34 262/100 2.62 253/100 2.53 344/100 3.44 327/100 3.27
RANKED 5 RANKED 3 RANKED 4 RANKED 1 RANKED 2
Table 1.19: Showing The Rank Of Each Component of Personal Expression / Diversity
INFERRENCE
By analysing the above table it shows that senior management is interested in personal opinions which shows the rank 1. And people with different ideas are valued in the organisation are considered 3.27 out of 5. Employees are free to share their ideas 2.62. the employees work in such a manner to attract and retain others 2.53 ,which has got the 4th rank. Ideas counted at work has got the least rank where they have to work on that part.
‘
Table 1.20: Showing Idea And Opinion Count
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
3 18 19 32 28 100
Chart 1.11: : Showing Idea And Opinion Count
Interpretation:
Only 3% of the employees agree that the management listens to their ideas and opinions. 18% of them agree to it as well. 19 % is neutral to the situation. Whereas there is a huge no of the sample size that is32% to 28% who is disagreeing to it. Their opinions and ideas are not taken seriously by the management.
Table 1.21: Showing Level Comfort in Sharing Opinions
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
10 8 28 42 12 100
Chart 1.12 : Showing Level Comfort in Sharing Opinions
Interpretation:
The conducted shows that onl10% to 8% employees are comfortable in sharing their problems with the upper management. Rest of the sample that is 42% is disagreeing that they are not comfortable in sharing their ideas or problems.12% of them strongly disagrees.
Table 1.22: Showing The Work They Do Is To Attract , Develop And Retain
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
10 13 9 56 12 100
Chart 1.13: Showing The Work They Do Is To Attract , Develop And Retain
Interpretation:
56% of the employees disagrees that they don’t work to attract ,develop or retain customers. Where 10% to 13% agrees to the statement . a little sample size of 12% strongly disagrees to the statement .
Table 1.23: Showing Senior Management Interest In Employee Opinion And Ideas
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
24 23 26 7 10 100
Chart 1.14: Showing Senior Management Interest In Employee Opinion And Ideas
Interpretation
The management shows interest in taking employees ideas and opinions.24% of them agrees and 23% of the strongly agrees to the statement. A huge sample ,36% id neutral to the statement. But a little sample, 7% to 10% disagrees to the statement.
Table 1.24: Showing People With Different Ideas Are Valued
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
20 18 40 13 9 100
Chart 1.15: Showing People With Different Ideas Are Valued
Interpretation:
20% to 18% of the employees agree that people with different ideas are well accepted in the organization. 40% to the employees are neutral to the statement. 13 % to 9% of the sample disagrees to the statement on the other hand.
Table 1.25: Showing Weighted Average On Compensation
X 1 2 3 4 5
I am paid fairly for the work I do. (X1) 19 42 12 25 2
My salary is competitive with similar jobs I might find elsewhere.(X2) 32 12 28 23 5
My benefits are comparable to those offered by other organizations.(X3) 8 29 28 32 3
I understand my benefit plan. (X4) 42 15 19 9 15
I am satisfied with my benefit package. (X5) 58 12 11 6 13
Table 1.26: Calculation Of Weighted Average On Compensation
X1 vX1 X2 ?? X2 X3 ?? X3 X4 ?? X4 X5 ?? X5
19 95 32 160 08 40 42 210 58 290
42 168 12 48 29 116 15 60 12 48
12 36 28 84 28 84 19 57 11 33
25 50 23 46 32 64 09 18 06 12
02 02 05 05 03 03 15 15 13 13
TOTAL 351 TOTAL 343 TOTAL 307 TOTAL 360 TOTAL 396
Table 1.27: Showing The Rank Of Each Component Of Compensation
351/100 3.51 343/100 3.43 307/100 3.07 360/100 3.60 396/100 3.96
RANKED 3 RANKED 4 RANKED 5 RANKED 2 RANKED 1
INFERENCES
The above table shows that the employees are satisfied with the benefit package they are given 3.96 out of 5.the employees understand their plan is 3.60. the fair pay is ranked 3rd.the employees salary is competitive with others is ranked 4th. The salary is not comparable with salary with others which has been ranked the least, rank 5.
Table 1.28: showing Fair Pay
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
19 42 12 25 2 100
Chart 1.16: Showing Fair Pay
Interpretation:
19% to 42% of the Employees agree that they are paid fairly according to the amount of work they do. But 25% to 2% of the sample size disagrees to the statement. And 12% is neutral to it.
Table 1.29: Showing Salary Competitiveness
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
32 12 28 23 5 100
Chart 1.17: Showing Salary Competitiveness
Interpretation:
32% of the employees agrees that they get a competitive salary when compared to other organizations with same designation. 12% of them strongly agrees to it .28% of them are neutral to the statement. 23% to 5% is disagrees to the statement in the other hand.
Table 1.30: Showing Comparability Of Benefits
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
8 29 28 32 3 100
Chart 1.18: Showing Comparability Of Benefits
Interpretation:
There is balance, 29% of the employees agrees and 32 % of them strongly disagrees that they have a comparable benefits.28% of them are neutral in the other hand.
Table 1.31: Showing Understanding Of Benefit Plan
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
42 15 19 9 15 100
Chart 1.19: Showing Understanding Of Benefit Plan
Interpretation:
42% of the employees agrees that they understand their benefit plan. 15% strongly agrees ,where 19% is neutral.9% to 15% disagrees to the fact and says they don’t understand the benefit plans they are given.
Table 1.32: Showing Satisfaction With Benefit Package
STRONGLY AGREED AGREED NEUTRAL DISAGREE STRONGLY DISAGREE TOTAL
58 12 11 6 13 100
Chart 1.20: Showing Satisfaction With Benefit Package
Interpretation:
58% of them are satisfied with their benefit package. 12% strongly agrees. Whereas little sample of 6% to 13% disagrees to the statement. Or they are not happy with their benefit package.11% is neutral to it.
Summary of Findings
‘ Most of the employee’s ability state the opinion firmly and positively is better than acceptable standards.
‘ Majority of the employee’s ability in exercising the professional duties without assistance is better than acceptable standard.
‘ The Emotional Stamina of the majority of the employees is better than acceptable standard.
‘ Majority of the Employee’s Ability to work co-operatively and collaboratively to achieve common goal is better than acceptable.
‘ Majority of the employees Ability to effectively guide a group through an appropriate process to help to achieve their desired outcomes is better than acceptable standard.
‘ Majority of the employee’s ability to clarify and establish with a group roles and responsibilities, common goal and plan to achieve them and group behavioural is outstanding.
‘ Majority of the employees Ability to deal with multiple issues and details, alertness and learning capacity is better than acceptable standard.
‘ Majority of the employee’s ability to see and think beyond the obvious and formulate original solution is better than acceptable standards.
‘ Majority of the employee’s ability to present ideas, concept, plan and procedure clearly to the target group is better than acceptable standard.
‘ Concern for excellence of the majority of the employee’s is better than acceptable standard.
‘ Majority of the employee’s Aware of what is going on in the workplace and responds in a suitable manner to situations as they is better than acceptable.
‘ The understanding between the top level and employees are in good terms.
‘ Employees do understand their benefits and opportunities given by the organisation.
‘ The employees are paid fairly according to the work done.
‘ Freedom of sharing new ideas and opinions are welcomed in the organisation.
‘ The employees are able to make a balance between personnel and work life. which reduces the amount of stress in them.
‘ The organisation encourages the employee to learn from their mistakes.
‘
‘ Recommendations
‘ In this organization employee engagement study must be regularly done in order to check the level of employee effectiveness.
‘ Since many of the employees are performing different jobs to what they were doing at the time of their joining they need training to perform the new work allotted them.
‘ Different sources of employee engagement tactics must be encouraged in employees.
‘ The top management should support the lower level employees since it is considered a major hurdle in effective employee engagement and the employees must also be made aware of importance of engagement at work system
‘ The employees should be then and there motivated for work.
‘ The understanding between management and employees should be increased.
‘ Level of stress in work should be reduced.
‘ Better benefit package should be given to the employees.
Conclusion
In the report we have discussed the importance of employee engagement in an organization and how it affects the efficiency of work and productivity. Employment counselors should help individuals to maximize their career engagement at any stage of their career. Basically employee engagement should be a buzz word for the employee engagement and a positive attitude held by the employees towards the organization. Employee engagement is gaining its importance and popularity in work places and its impact in many ways. It emphasis on the importance of employee engagement in a organization, an organization should thus give more importance for its employees than any other variable as they are the powerful contributors to a company’s competitiveness. Thus it shows that employee engagement should be a continues process for learning, improvement, measurement and action of an employee.
[supanova_question]
The limitations of the Chit Acts melbourne essay help
1.1 BACKGROUND OF THE STUDY
The financial system assumes strategically a very important role in channelling the funds from surplus units to deficit units. The financial system here refers to the group of institutions, markets and instruments which helps in formation of capital and thus accelerates to the pace of economic development.
The base of this study stems from the fact that there exists a gap between gross capital formation and gross domestic savings in India. So, there exists the need to augment the growth rate of voluntary domestic savings. This goal can be realized by widening and strengthening the working of different financial intermediaries which will result in mobilizing savings from various income level categories. .It is in this context that the role of the Non-Banking Financial Intermediaries like Chit Finance should be appreciated in supplementing the functions of the Banking Institutions.
Chit funds are Chit funds are the Indian equivalent of the Rotating Savings and Credit Associations (ROSCA). ROSCAs are famous in many parts of the world and is seen as an instrument to ‘save and borrow’ simultaneously. ROSCAs basically started as a way to help in fulfilling the needs of the low-income households as it enables the people to convert their small savings into lump sums. The concept of chit funds originated more than 1000 years ago. Initially it was in the form of an informal association of traders and households within communities, wherein the members contributed some money in return for an accumulated sum at the end of the tenure. Participation in Chit funds was mainly for the purpose of purchasing some property or, in other words, for ‘consumption’ purposes. However, in recent times, there have been tremendous alterations in the constitution and functioning of Chit funds. A significant difference between Chit Funds and ROSCAs are that in most places ROSCAs are user-owned and organized informally, but chit funds have been formally institutionalized in India. (Chit Funds-An innovative access to finance for low income households, 2009)
1.1.1 WHAT DO WE MEAN BY CHIT FUNDS?
Chit fund is a savings-cum-borrowing instrument. The basic aim of this instrument is to pool small amount of savings by all the members which is then managed by a foreman. The foreman has the responsibility to act as a trustee-cum-supervisors for the process of collection and allotment of the pooled amount.
Chit funds represent a traditional form of saving-cum-credit institution evolved before the bank system was introduced in rural India. There are many who avail themselves of this avenue for saving for a reasonable return.
1.1 NEED AND RATIONALE OF THE STUDY
Despite the growth of a wide range of savings avenues and the widespread network of banks and other financial institutions, it has been found that Chit scheme still forms an important part in the asset portfolio of many households and firms in India and especially in South India including Karnataka. Also, the review of literature shows that there are only a few studies on Chit Finance. Therefore, the need to conduct the study stems from the requirement to understand Chit Funds in Bangalore.
1.2 NEED TO CONDUCT THE STUDY
The research titled ‘A Study on Chit Funds in Bangalore to understand the behaviour and financial needs of the chit fund members as well as to identify the important predictors of regular participation in chit funds’ The study estimates the net returns and interest rate on Chit funds. This study tries to point out the limitations of the Chit Acts and suggests feasible recommendations for improving the working of such institutions.
.3.2 STATEMENT OF THE PROBLEM
‘A Study on Chit Funds in Bangalore to understand the behaviour and financial needs of the chit fund members as well as to identify the important predictors of regular participation in chit funds’.
VARIABLES UNDER INVESTIGATION
1. Age
2. Occupation
3. Monthly income
4. Gender
5. Bank loan
6. Regular participation in chit fund
7. Membership in multiple chit schemes
8. Cause for participating in multiple schemes
9. Preferred avenue of saving
10. Preferred source of finance
11. Safety
12. Better service
13. Flexibility
14. Timely Payment
15. Low commission
16. Personal contact
17. Unregistered chit funds membership
18. Cause for participating in unregistered chit funds
19. Cause for not participating in unregistered chit fund
3.5 OBJECTIVES OF THE STUDY
3.5.1 OBJECTIVE(PRIMARY)
1. To understand the behaviour and financial needs of the chit fund members.
2. To identify the important predictors behind chit fund participation
3.5.2 OHER OBJECTIVES OF RESEARCH
1. To estimate interest rates in registered chit funds.
2. To compare the relative ratings of Chit subscribers towards registered and unregistered chit funds on
3. To estimate the return on Chit Funds.
3.6 HYPOTHESIS
There are two types of statistical hypotheses.
1. Null hypothesis
2. Alternative hypothesis.
Hypothesis 1:
H0: There is no significant relation between gender and cause for participation in chit fund.
H1: There is significant relation between gender and cause for participation in chit fund.
Hypothesis 2:
H0: There is no significant relation between occupation and cause for participation in chit fund.
H1: There is significant relation between occupation and cause for participation in chit fund.
Hypothesis 3:
H0: There is no significant relation between age and causes for participation in chit fund
H1: There is significant relation between age and cause for participation in chit fund
Hypothesis 4:
H0: There is no significant relation between monthly income and cause for participation in chit fund
H1: There is significant relation between monthly income and cause for participation in chit fund
Hypothesis 5:
H0: There is no significant relation between gender and causes for bidding in chit fund
H1: There is significant relation between gender and cause for bidding in chit fund
Hypothesis 6:
H0: There is no significant relation between occupation and cause for bidding in chit fund
H1: There is significant relation between occupation and cause for bidding in chit fund
Hypothesis 7:
H0: There is no significant relation between age and cause for bidding in chit fund
H1: There is significant relation between age and cause for bidding in chit fund
Hypothesis 8:
H0: There is no significant relation between monthly income and cause for bidding in chit fund
H1: There is significant relation between monthly income and cause for bidding in chit fund
Hypothesis 9:
H0: There is no significant relation between gender and cause for saving in chit fund
H1: There is significant relation between gender and cause for saving in chit fund
Hypothesis 10:
H0: There is no significant relation between occupation and cause for saving in chit fund.
H1: There is significant relation between occupation and cause for saving in chit fund.
Hypothesis 11:
H0: There is no significant relation between age and cause for saving in chit fund
H1: There is significant relation between age and cause for saving in chit fund
Hypothesis 12:
H0: There is no significant relation between having bank loan and membership in multiple chit schemes.
H1: There is significant relation between having bank loan and membership in multiple chit schemes.
Hypothesis 13:
H0: There is no significant relation between monthly income and participation in unregistered chit funds
H1: There is significant relation between monthly income and participation in unregistered chit funds
Hypothesis 14 :
H0: There is no significant relation between causes to prefer chit fund over bank and having bank loan.
H1: There is significant relation between causes to prefer chit fund over bank and having bank loan.
Hypothesis 15:
H0: Presence of safety, flexibility, timely payment, low commission, better service, personal contact, having a bank loan are no significant predictors of regular participation in chit fund.
H1: Presence of safety, flexibility, timely payment, low commission, better service, personal contact ,having a bank loan,are significant predictors of regular participation in chit fund.
.
3.8 SAMPLING METHOD
Members of four registered chit fund companies in Bangalore. The four registered chit fund companies were selected due to the large size of their subscriber base.
3.8.3 SIZE OF SAMPLE
150 respondents
3.9 MECHANISM OF STUDY
3.9.1 PRIMARY RESEARCH
Questions relating to behaviour and financial pattern will be found out through questionnares
3.9.2 SECONDARY RESEARCH
‘ Reports on chit fund industry
OVERVIEW OF INDIAN CHIT FUND INDUSTRY
4.1.1 NUMBER OF REGISTERED CHIT FUND COMPANIES:
According to the Ministry of Corporate Affairs, as on 31st December, 2013:
Volume of registered chit companies: 5412
Volume of chit companies in Karnataka: 703
Number of chit fund companies in Bangalore: 315
UNREGISTERED CHIT FUND INDUSTRY
Although unregistered chits are an informal source of finance but still they are a significant part of the chit fund industry. Though they are more easily accessible as compared to registered chit funds.
4.3 PURPOSE OF THE STUDY
The study titled ‘A Study on Chit Funds in Bangalore to understand the behaviour and financial needs of the chit fund members as well as to identify the important predictors of regular participation in chit funds’ attempt in The study estimates the net returns and interest rate on Chit funds. This study also examines the limitations of the Chit Acts and suggests suitable recommendations for improving the functioning of such institutions.
4.4 LIMITATION OF STUDY
‘ Unwillingness of the members to share their income and financial details made the task of data collection somewhat difficult.
‘ Collecting data became difficult since I don’t know the regional languages.
5.2 ANALYSIS OF DATA
The analysis is done on the primary data collected from 150 chit funds members in Bangalore
TESTING OF HYPOTHESES
5.4.1 Hypothesis 1:
H0: There is no significant relation between gender and cause for participation in chit fund.
H1: There is significant relation between gender and cause for participation in chit fund.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 31.070a 16 .013
Likelihood Ratio 35.945 16 .003
Linear-by-Linear Association 8.809 1 .003
N of Valid Cases 150
a. 1 cells (10.0%) have expected count less than 5. The minimum expected count is .30.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .455 .013
Cramer’s V .228 .013
N of Valid Cases 150
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
INTERPRETATION:
The value of chi-square=31.070 was p=.013, less than 0.05.
We can see that the strength of association between the variables is moderate (Phi and Cramer’s V -0.455).
Therefore, the research hypothesis that differences in ’cause to participate in chit funds’ are related to differences in ‘age” is supported by this analysis. This means that different age groups of the chit fund members have different reasons of participating in chit funds. As can be seen from the table above that those who belong to ’36-45 years’ have saving as the predominant reason to participate whereas members of other age groups do not have any dominant reason to participate.
5.4.2 Hypothesis 2:
Hypothesis 2:
H0: There is no significant relation between occupation and cause for participation in chit fund.
H1: There is significant relation between occupation and cause for participation in chit fund.
Hypothesis 3:
. Hypothesis 3:
H0: There is no significant relation between age and causes for participation in chit fund
H1: There is significant relation between age and cause for participation in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 10.018a 4 .040
Likelihood Ratio 10.478 4 .033
Linear-by-Linear Association 6.876 1 .009
N of Valid Cases 150
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .258 .040
Cramer’s V .258 .040
N of Valid Cases 150
a. Not assuming the null hypothesis.
a. Using the asymptotic standard error assuming the null hypothesis.
INTERPRETATION:
The value of chi-square=10.018 was p=.040, less than 0.05.
.We can see that the strength of association between the variables is weak (0.258)
Therefore, the research hypothesis that differences in ’cause to participate in chit funds’ are related to differences in ‘gender” is supported by this analysis. This means that males and females have different reasons of participating in chit funds. As it can be seen that males participate in chit funds for business and personal consumption purposes apart from saving whereas women predominantly participate to save.
5.4
Hypothesis 4:
H0: There is no significant relation between monthly income and cause for participation in chit fund
H1: There is significant relation between monthly income and cause for participation in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 82.176a 12 .000
Likelihood Ratio 97.665 12 .000
Linear-by-Linear Association 15.696 1 .000
N of Valid Cases 150
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .740 .000
Cramer’s V .427 .000
N of Valid Cases 150
INTERPRETATION:
We can see that the strength of association between the variables is strong (0.740)
Therefore, the research hypothesis that differences in ‘reason to participate in chit funds’ are related to differences in ‘occupation” is supported by this analysis. It can be seen that the self-employed members mainly participate to avail for business reasons whereas salaried employee participate mainly for personal consumption purposes.
Hypothesis 5:
Hypothesis 5:
H0: There is no significant relation between gender and causes for bidding in chit fund
H1: There is significant relation between gender and cause for bidding in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 66.691a 20 .000
Likelihood Ratio 43.579 20 .002
Linear-by-Linear Association 4.804 1 .028
N of Valid Cases 150
a. 1 cell (10.0%) has expected count less than 5. The minimum expected count is .07.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .667 .000
Cramer’s V .333 .000
N of Valid Cases 150
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
INTERPRETATION:
The (chi-square=66.691) was p=.000, less than 0.05.
We can see that the strength of association between the variables is moderately strong (0.667)
Therefore, the research hypothesis that differences in ’cause to bid in chit funds’ are related to differences in ‘age” is supported by this analysis. It can be seen that the members of age group’36-45 years’ are more interested in bidding for business related purposes where members of other age groups bid mainly for emergency needs.
5.4.6 Hypothesis 6:
. Hypothesis 6:
H0: There is no significant relation between occupation and cause for bidding in chit fund
H1: There is significant relation between occupation and cause for bidding in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 7.167a 5 .209
Likelihood Ratio 7.885 5 .163
Linear-by-Linear Association 1.120 1 .290
N of Valid Cases 150
a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is .81.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .219 .209
Cramer’s V .219 .209
N of Valid Cases 150
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
INTERPRETATION:
The probability of the chi-square test statistic (chi-square=7.167) was p=.209, more than the alpha level of significance of 0.05.
Therefore, the research hypothesis that differences in ‘reason to bid in chit funds’ are related to differences in ‘gender” is not supported by this analysis.
5.4.7 Hypothesis 7:
Hypothesis 7:
H0: There is no significant relation between age and cause for bidding in chit fund
H1: There is significant relation between age and cause for bidding in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 180.915a 15 .000
Likelihood Ratio 160.460 15 .000
Linear-by-Linear Association 28.379 1 .000
N of Valid Cases 150
a. 1 cell (10.0%) has expected count less than 5. The minimum expected count is .13.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi 1.098 .000
Cramer’s V .634 .000
N of Valid Cases 150
INTERPRETATION:
The (chi-square=180.915) was p=.000, less than 0.05.
We can see that the strength of association between the variables is extremely strong (1.098)
Therefore, the research hypothesis that differences in’ are related to differences in ‘occupation” is supported by this analysis. It can be clearly seen that self-employed people bid in chit scheme mostly for business purposes, salaried people for emergency needs and housewives for household purposes.
5.4.8 Hypothesis 8:
Hypothesis 8:
H0: There is no significant relation between monthly income and cause for bidding in chit fund
H1: There is significant relation between monthly income and cause for bidding in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 123.331a 35 .000
Likelihood Ratio 106.298 35 .000
Linear-by-Linear Association 4.957 1 .026
N of Valid Cases 150
INTERPRETATION:
The probability of the chi-square test statistic (chi-square=123.331) was p=.000, less than the alpha level of significance of 0.05.
We can see that the strength of association between the variables is extremely strong (.907)
Therefore, the research hypothesis that differences in ‘reason to bid in chit funds’ are related to differences in ‘income” is supported by this analysis. It can be clearly seen that low income members bid mostly for consumption reasons whereas higher income members bid for business related and emergency purposes.
SUMMARY:
Reason to bid in chit fund has the strongest association with the occupation of the chit fund members as the probability of the chi-square test statistic (chi-square=180.915) was p=.000 and the strength of association between the variables is extremely strong (1.098).
5.4.
Hypothesis 9:
H0: There is no significant relation between gender and cause for saving in chit fund
H1: There is significant relation between gender and cause for saving in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 21.702a 16 .153
Likelihood Ratio 23.775 16 .095
Linear-by-Linear Association 2.397 1 .122
N of Valid Cases 150
INTERPRETATION:
The chi-square=123.331) was p=.153, more than 0.05. Therefore, the research hypothesis that differences in ’cause to save in chit funds’ are related to differences in ‘age” is not supported by this analysis.
5.4.10 Hypothesis 10:
H0: There is no significant relation between occupation and cause for saving in chit fund.
H1: There is significant relation between occupation and cause for saving in chit fund.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 20.510a 4 .000
Likelihood Ratio 29.038 4 .000
Linear-by-Linear Association 7.062 1 .008
N of Valid Cases 150
a. 1 cell (10.0%) has expected count less than 5. The minimum expected count is .81.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .370 .000
Cramer’s V .370 .000
N of Valid Cases 150
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
INTERPRETATION:
The chi-square=20.510) was p=.000, less than 0.05.
We can see that the strength of association between the variables is weak (.370).Therefore, the research hypothesis that differences in ’cause to save in chit funds’ are related to differences in ‘gender” is supported by this analysis.
5.4.11 Hypothesis 11:
Hypothesis 11:
H0: There is no significant relation between age and cause for saving in chit fund
H1: There is significant relation between age and cause for saving in chit fund
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 67.261a 12 .000
Likelihood Ratio 60.380 12 .000
Linear-by-Linear Association 9.507 1 .002
N of Valid Cases 150
a. 1 cell (10.0%) has expected count less than 5. The minimum expected count is .13.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .670 .000
Cramer’s V .387 .000
N of Valid Cases 150
INTERPRETATION:
The chi-square=67.261 was p=.000, less than 0.05.
We can see that the strength of association between the variables is moderately strong(.670).Therefore, the research hypothesis that differences in ‘reason to cause in chit funds’ are related to differences in ‘occupation” is supported by this analysis. Salaried people save their money in chit fund with no particular purpose. But self-employed people are equally interested in saving for house purchase as well as for general purpose.
SUMMARY:
chit fund is most closely associated with occupation of the chit fund members as it has the highest value of chi-square statistic and Phi coefficient.
5.4.12 Hypothesis 12:
Hypothesis 12:
H0: There is no significant relation between having bank loan and membership in multiple chit schemes.
H1: There is significant relation between having bank loan and membership in multiple chit schemes.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 56.697a 3 .000
Likelihood Ratio 67.900 3 .000
Linear-by-Linear Association 36.400 1 .000
N of Valid Cases 150
INTERPRETATION:
The probability of the chi-square test statistic (chi-square=56.697) was p=.000, less than the alpha level of significance of 0.05.
We can see that the strength of association between the variables is strong (.615).
Therefore, the research hypothesis that differences in ‘membership in multiple chit schemes are related to differences in ‘having currently bank loan” is supported by this analysis. It is clearly evident that those members currently having bank loan have invested in only one chit scheme whereas those members who do not have availed bank loan have invested in more than one chit schemes.
5.4.13 Hypothesis 13:
Hypothesis 13:
H0: There is no significant relation between monthly income and participation in unregistered chit funds
H1: There is significant relation between monthly income and participation in unregistered chit funds
.
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 96.660a 7 .000
Likelihood Ratio 85.378 7 .000
Linear-by-Linear Association 59.577 1 .000
N of Valid Cases 150
a. 1 cell(10.0%) has expected count less than 5. The minimum expected count is 1.08.
INTERPRETATION:
The chi-square=96.660 was p=.000, less than 0.05.
We can see that the strength of association between the variables is extremely strong (.803).
Therefore, the research hypothesis that differences in ‘participation in unregistered chit funds’ are related to differences in ‘income” is supported by this analysis. It is clearly evident that mostly low- income members have participated in unregistered funds. This is because the registered funds have become expensive due to the increase in their operational cost as a result of stringent regulations.
5.2.14 Hypothesis 14 :
H0: There is no significant relation between causes to prefer chit fund over bank and having bank loan.
H1: There is significant relation between causes to prefer chit fund over bank and having bank loan
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 28.049a 5 .000
Likelihood Ratio 31.806 5 .000
Linear-by-Linear Association 2.967 1 .085
N of Valid Cases 150
a. 2 cells (15.0%) have expected count less than 5. The minimum expected count is 1.79.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .432 .000
Cramer’s V .432 .000
N of Valid Cases 150
INTERPRETATION:
The probability of the chi-square test statistic (chi-square=28.049) was p=.000, less than the alpha level of significance of 0.05.
We can see that the strength of association between the variables is moderate (.432).
Therefore, the research hypothesis that differences in ’cause to prefer chit fund over bank’ are related to differences in ‘having bank loan” is supported by this analysis. It is clearly evident that members who have bank loan have preferred chit fund over bank mainly due to better dividends. But those who do not have bank loan prefer chit fund over bank mainly due to better service in terms of more personalized service.)
5.2..15 Hypothesis 15: To identify significant predictors of regular participation in chit funds using Binary Logistic Regression
Hypothesis 15:
H0: Presence of safety, flexibility, timely payment, low commission, better service, personal contact, having a bank loan are no significant predictors of regular participation in chit fund.
H1: Presence of safety, flexibility, timely payment, low commission, better service, personal contact ,having a bank loan,are significant predictors of regular participation in chit fund.
Variables in the Equation
B S.E. Wald df Sig. Exp(B)
Step 0 Constant -1.046 .186 31.574 1 .000 .351
Model Summary
Step -2 Log likelihood Cox & Snell R Square Nagelkerke R Square
1 37.170a .533 .576
a. Estimation terminated at iteration number 6 because parameter estimates changed by less than .001.
Variables in the Equation
B S.E. Wald df Sig. Exp(B)
Step 1a bank_loan(1) 1.068 1.265 14.715 1 .000 11.720
reason_2 2.286 4 .683
reason_2(1) 1.336 1.077 1.540 1 .215 3.805
reason_2(2) .134 2.239 .004 1 .952 1.143
reason_2(3) -.559 1.896 .087 1 .768 .572
reason_2(4) .731 1.347 .294 1 .588 2.076
reason_3 4.874 5 .431
reason_3(1) 1.188 .924 1.652 1 .199 3.279
reason_3(2) 1.661 2.048 .658 1 .417 5.263
reason_3(3) -1.654 1.228 1.813 1 .178 .191
reason_3(4) .404 1.192 .115 1 .735 1.497
reason_3(5) -17.379 20.722 .000 1 .700 .000
reason_4 .355 4 .986
reason_4(1) -1.047 1.850 .320 1 .571 .351
reason_4(2) -.839 1.979 .180 1 .672 .432
reason_4(3) -.932 1.637 .324 1 .569 .394
reason_4(4) 3.519 4.199 .000 1 .600 3.746
reason_5 8.553 5 .128
reason_5(1) -.254 1.768 .021 1 .886 .776
reason_5(2) -19.245 9.890 .000 1 .999 .000
reason_5(3) 1.420 1.338 1.126 1 .289 4.136
reason_5(4) -.747 1.306 .327 1 .567 .474
reason_5(5) .561 1.342 .174 1 .676 1.752
B S.E. Wald df Sig. Exp(B)
Step 1a Safety -.075 .320 4.377 1 .011 0.928
Flexi -.178 .426 3.337 1 .021 0.837
commision -.185 .188 1.868 1 .026 0.831
payment -.267 .178 1.657 1 .097 0.766
service -.859 .412 1.348 1 .083 0.424
personal -1.122 .163 .996 1 .079 0.329
Constant 3.058 2.440 1.571 1 .010 21.291
a. Variable(s) entered on step 1: : bank_loan, reason_2, reason_3, reason_4, reason_5.imp1, imp2, imp3, imp4, imp5, imp6.
INTERPRETATION:
‘ -2 Log Likelihood statistic is 37.170. This statistic how poorly the model predicts the decisions — the smaller the statistic the better the model. Since, 37.170 is a relatively small number therefore, this model is able to predict the decisions in a better way.
‘ Here Cox & Snell R Square statistic indicates that 53.3% of the variation in the regular participation in chit funds is explained by the logistic model.
‘ In our case Nagelkerke R Square is 0.576, indicating a moderate relationship of 57.6 % between the predictors and the prediction.
‘ If it is less than .05 then, we will reject the null hypothesis and accept the alternative hypothesis.
‘ In this case, we can see that bank loan, safety, flexibility and low commission have contributed signi’cantly to the prediction of regular participation in chit funds but other variables are not significant predictors of regular participation in chit funds.
‘ Since only bank loan has p=.000, therefore we can say that bank loan is the most significant predictor
among other significant predictors. This is followed by safety (p=.011), flexibility (p=.021) and low commission (p=.026).
‘ Here, the EXP (B) bank loan is 11.727. Hence when bank loan is availed by one unit (one person) the odds ratio is 11 times as large and therefore people are 11 more times likely not to regularly participate in chit funds.
‘ Here, the EXP (B) with safety is .928. Hence when safety is increased by one percent the odds ratio is .928 times as large and therefore people are .928 more times likely to regularly participate in chit funds.
‘ Here, the EXP (B) flexibility is 837. Hence when flexibility is increased by one percent the odds ratio is .928 times as large and therefore people are .837 more times likely to regularly participate in chit funds.
‘ Here, the EXP (B) low commission is .831. Hence when flexibility is increased by one percent the odds ratio is .928 times as large and therefore people are .831 more times likely to regularly participate in chit funds.
SUMMARY
Bank loan is the most significant predictor of regular participation in chit funds. This is followed by safety, flexibility and low commission.
Instalment no No of months remaining Monthly subscription Prize amount PV of monthly subscription(PV of outlow at 10%) PV of Prize amount(PV of inflow at 10%) Net Present Value(PV of inflow – PV of outflow)
1 24 2000 50000 2000 50000 10444.9
2 23 1500 35000 1488.1 34723.1 -4832.0
3 22 1500 35000 1476.4 34448.4 -5106.7
4 21 1500 35000 1464.7 34175.9 -5379.2
5 20 1500 35000 1453.1 33905.5 -5649.6
6 19 1500 35000 1441.6 33637.3 -5917.8
7 18 1500 35000 1430.2 33371.2 -6183.9
8 17 1500 35000 1418.9 33107.2 -6447.9
9 16 1620 38000 1520.3 35660.6 -3894.5
10 15 1620 38000 1508.2 35378.5 -4176.6
11 14 1700 40000 1570.2 36945.9 -2609.2
12 13 1700 40000 1557.8 36653.6 -2901.5
13 12 1780 42000 1618.2 38181.8 -1373.3
14 11 1780 42000 1605.4 37879.8 -1675.3
15 10 1780 42000 1592.7 37580.1 -1975.0
16 9 1860 44000 1651.1 39058.2 -496.9
17 8 1860 44000 1638.0 38749.2 -805.9
18 7 1860 44000 1625.1 38442.6 -1112.5
19 6 1940 46000 1681.6 39872.1 317.0
20 5 1940 46000 1668.3 39556.6 1.5
21 4 1940 46000 1655.1 39243.7 -311.4
22 3 1940 46000 1642.0 38933.2 -621.8
23 2 1940 46000 1629.0 38625.2 -929.8
24 1 1940 46000 1616.1 38319.7 -1235.4
25 0 1940 46000 1603.3 38016.5 -1538.6
39555.1 934465.9 -54411.4
[supanova_question]
Merit goods my essay help uk
Merit goods are goods which will be under-provided by the market, therefore they will be under-consumed. They are thought by the governments to be good for the populations and so the governments want them to be consumed to a great extent. They increase the private and social benefits and cause the social benefit be higher than the private one. The best examples of them, apart from all the public goods, can be the education, health care, sports facilities and the opera.
Although the majority of the merit goods is provided by the private sectors, not all the people can afford buying them, therefore they will be under-consumed. That is why the government is needed to destroy the market failure increasing the supply and consequently raising the consumption.
To explain the reasons for government to provide the merit goods, I need to apply some examples of them. The first one can be the education. It is significant for the governments to provide it so that the society would be well-educated. Governments determine the period of education required for people (the compulsory education) to maintain the proper level of education of the society. The governments find education an important aspect that should be available for everyone as it cause the whole country to have better both economic growth and economic development.
Considering another example such as health care, the situation is quite similar. The governments want to provide the population with it because they care about the high states of health of society in their country. To gain these, the countries need to have high quality of health care. Governments often offer people unpaid programs consisting of preventative medical examination which contribute to maintain the high number of healthy people. This is also connected with the problems of the labour market. The healthier people are, the more efficient their work is, the greater revenue firms have and countries are more developed because of taxations.
Other examples like sport facilities or the opera are meant for people to become physically and culturally developed but their availability is not as important as in the case of the previous examples. That is why they are not as much provided by the governments as the rest of the merit goods.
Although most of the merit goods provided by the governments are free, the fact is that they are paid through the taxes that the societies pay. The number of the merit goods of particular types that the governments provide or subsidize depends on the necessity of them. If they are provided, the societies’ benefits get higher and so is the public treasury of the countries.
[supanova_question]
Research proposal: The effect of pregnancy on the adolescent pregnant teen & father personal essay help
Abstract: The purpose for this research paper is to address the adolescent pregnant teen & father and the effects a pregnancy has on both of their lives during and after her pregnancy. How the teens need the support of the family, community, church, and the school system. I will also address the teen father mostly disregarded in any aspect of the teen’s pregnancy and how this affects him, and how both teens need support in our society. How we can address the social problem of teen pregnancy from all avenues.
‘Three issues that have an impact on the pregnant adolescent are discussed education, identity development, and maternal support’ (Turnage & Pharris, 2013). My research focuses on adolescent pregnant teen women 19 years old and younger. It will also reflect the problems of the teen pregnant adolescents journeying thru the process of becoming a teen mother, finishing high school, developing her own identity and the maternal support she gets from her mother during her transition from pregnant teen to motherhood.
‘Several issues that differently influence the pregnant teen is individually based on the female’s chronological age’ (Turnage & Pharris, 2013). ‘For the pregnant adolescent, her pregnancy supersedes high school graduation as the benchmark for her being viewed as an adult’ (Turnage & Pharris, 2013). ‘Failure to graduate high school is associated with poor social and educational outcomes for teen mothers and their children’ (Turnage & Pharris, 2013).
‘While the pregnant adolescent is defining who she is as a person she experiences a transition to the new identity of mother’ (Turnage & Pharris, 2013). ‘During her pregnancy the adolescent’s mother is seen as the primary source of support that contributes to a positive self-image and can assist her in the adapting to the role of parent’ (Turnage & Pharris, 2013).
My research paper will also show how important it is to support the teen during and after pregnancy. It addresses the need for the teen mothers to finish high school, and find her identity. How important it is to have the support system of her mother and family to achieve all of these things. Without these support systems, the pregnant adolescent could end up in poverty, no social skills, homeless and a host of other social problems for her and her baby.
Addressed and examined is teen motherhood and its long-term mental and physical health of the teen mother’ (Patel & Sen, 2012). They used a (PCS) health survey known as SF-12 NLSY79 a study that compared two major comparisons groups of which only teens who experienced teen pregnancy and girls who did not experience teen pregnancy. On average the survey for teen mothers was on average 50.89.
The study to access the health outcome of ‘two major comparison groups, which consisted of women who were only experienced teen pregnancy & women who were having unprotected sexual relation as a teen but did not become pregnant ‘ (Patel & Sen, 2012). Estimated is that teen mothers are more likely to have poor health later in life in the study of all the comparison groups.
Along with support, they desperately need help taking care of an infant as a teen; they need a support system to take notice of how they are managing their health & well-being so that they can be a successful teen parent. In addition, being a teen parent can affect the mother’s mentally as the pressure of being new teen mom can be stressful.
The teen mothers who marry after they give birth to their children statistics state that 30 % of them will not remain in their marriages into their 40’s. This result comes from teen adolescents in a single parent home raising their child. This can put a strain on the teen adolescent because she will financially have to seek support from her family or enter into the welfare system and suffer mental health issues.
‘Adolescent teen mothers identify social support with, parenting and emotional support primary emanating from family members, particularly their own mothers, as well as from the father of the baby (Savio Beers & Lee, 2009)’. ‘Older sisters may play an important role in the support network for adolescent mothers, the supportive sister relationships decrease depressive and anxiety-related symptoms in adolescent mothers (Savio Beers & Lee, 2009).
‘For some adolescent parents, participation in a religious community programs may provide the significant social support and serve as a protective factor’ (Savio Beers & Lee, 2009). This directly stresses the point that without the support of family, community, and church with the support of the father the adolescent teen mother can suffer mental issues, poverty issues, and marriage problems.
We addressed the many issues that teen mothers have to face, so now I would like to address the teen father in our society. What are their concerns on becoming a teen father, and how do they view their role as father where their masculinity is concerned? While most of the research done on teen pregnancy and parenting mainly focusing on the mother, the father is invisible.
Interviewed were 26 young teen fathers in the mid-western American towns. The in depth survey of three themes of gender discord focused on teen father narratives, which took on responsibility, sex, being a man, this is the direct viewpoint of the invisible teen father. What they feel about getting a teen girl pregnant and what responsibility they take in the pregnancy if any. How they relate to getting a teen pregnant and how that affects his identity as a man and their masculinity.
‘Gendered assumptions regarding pregnancy and contraception’specifically that women are in charge of preventing pregnancy and they have the belief that male sexuality is uncontrollable; and that use of love and intimacy talk (Weber, J. B., 2013). The teen fathers that took the questionnaire did not blame themselves for getting the teen girl pregnant. They see the teen’s pregnancy as her problem.
Studies suggest that teen fathers are more likely to be of a minority race. He has a mother who had a baby as a teen; his parents have a minimal education. His parents do not have high expectations of him finishing school; all of these factors result in the likelihood that makes him a candidate to becoming a teenage father. ‘The research states that the teen fathers go to school fewer years less than non-teenage fathers (Fletcher & Wolfe, 2011).
‘Evidence shows that men who have children before marriage leave school earlier and have worse labor markets outcomes’ (Fletcher & Wolfe, 2011). ‘Data was used only on young men who reported a pregnancy as an adolescent’ (Fletcher & Wolfe, 2011). It affects his completion of high school.
It also affects his ability to take care of the teen mother & baby, which causes him to drop out of school early. Statistically, ‘teen fathers work more hours and earn more money following the birth of a child then his non-parent counterparts’ (Fletcher & Wolfe, 2011). Teen fatherhood results in the teen father getting married early or co-habitation with the teen mother.
In conclusion, teen pregnancy is a social problem in the United States both teens will have to suffer in their education, grow up before their time, take on adult responsibilities, and suffer financial problems to take care of the child. Which ultimately falls on the parents of the teens, society or the welfare system in which the teen mother becomes a social statistic or shall I say a number.
Teen pregnancy as of 2014 have been on the decline in the United States and increased in other states, however a positive support system for both teens is minimal at best. Socially as communities, churches and government we have to take an active role in education of abstaining from sex, talking to the teens about sex, and protecting themselves against pregnancy.
[supanova_question]
Reconnaissance attacks in IPv6 networks online essay help
2.1.1 Reconnaissance attacks in IPv6 networks
The 1st larger attack in IPv6 is usually a reconnaissance attack. An attacker try reconnaissance attacks to get some confidential information about the victim network that can be misused by the attacker in further attacks. For this he uses active methods, such as scanning techniques or data mining strategies. To start, an intruder begins to ping the victim network to determine the IP addresses currently used in the victim network. After getting some of the accessible system, he starts to scan the port to find out any open port in the desired system. The size of subnet is bigger than that of the in IPv4 networks. To perform a scan for the whole subnet an attacker should make 264 probes and that???s impossible. With this fact, IPv6 networks are much more resistant to reconnaissance attacks than IPv4 networks. Unfortunately, there are some addresses which are multicast address in IPv6 networks that help an intruder to identify and attack some resources in the target network.
2.1.2 Security threats related to IPv6 routing headers
As per IPv6 protocol specification, all of the IPv6 nodes must be able to process routing headers. In fact, routing headers can be used to avoid access controls based on destination addresses. Such action can cause security effects. It may be happen that an attacker sends a packet to a publicly accessible address with a routing header containing a ???forbidden??? address on the victim network. In such matter the publicly accessible host will forward the packet to the destination address stated in the routing header even though that destination is already filtered before as a forbidden address. By spoofing packet source addresses an intruder can easily perform denial of service attack with use of any publicly accessible host for redirecting attack packets.
2.1.3 Fragmentation related security threats
As per IPv6 protocol specification, packet fragmentation by the intermediate nodes is not permitted. Since in IPv6 network based on ICMPv6 messages, the usage of the path MTU discovery method is a duty, packet fragmentation is only allowed at the source node.1280 octets is the minimal size of the MTU for IPv6 network. The packets with size less than 1280 octets to be discarded unless it???s the last packet in the flow as per security reasons. With use of fragmentation, an attacker can get that port numbers not found in the first fragment and thus they bypass security monitoring devices expecting to find transport layer protocol data in the very first fragment. An attacker will send a huge amount of small fragments and create an overload of reconstruction buffers on the victim system which resulted to the system crash. To prevent system from such attacks it???s necessary to bound the total number of fragments and their permissible arrival rate.
[supanova_question]
WMBA 6000-13 Topic: Course Evaluation college essay help nyc
WMBA 6000-13
Topic: Course Evaluation
Date: March 2, 2014
Based on the assigned readings for this course (Dynamic Leadership), I have read an enormous amount of information about the different categories of leaders and leadership styles. Today’s leaders are different from the leaders of twenty to fifty years ago. In the past leaders gave commands and they controlled the actions of others. Today leaders are willing to involve others in their decision making and they are more open to new possibilities.
A good leader has a vision for their organization and they know how to align and engage employees in order to promote collaboration. The successful leader knows how to lead by using superior values, principles and goals that fit the organization’s values, principles and goals. Also these leaders know that leadership is not made from authority, it’s made from trust and followership. Coleman, J., Gulati, & Segovia, W.O. (2012)
I am impressed most by the characteristics of the authentic leader because they know how to develop themselves; they use formal and informal support networks to get honest feedback in order to drive long-term results. Authentic leaders build support teams to help them stay on course and counsel them in times of uncertainty. George, B., Sims, P., Mclean, A.N. & Mayer D. (2007)
In addition, I found the Leadership Code to be important because it provides structure and guidance and helps one to be a better leader by not emphasizing one element of leadership over another. Some focus on the importance of vision for the future; others on executing in the present; others on personal charisma and character; others on engaging people’; and others on building long-term organization. The code represents about 60 to 70 percent of what makes an effective leader. Ulrich, D., Smallwood, N., Sweetman, K. (2008)
The information that I acquired from this course will help me to pursue the goal of owning a beauty supply business. Another goal that I can add to my action plan is to include not only wigs and welted hair, but I will add hair, skin and nail products to my inventory. A future goal will be to add handbags and accessories as well.
After completing my short-term goal of finishing my MBA, I can take the knowledge from this course along with my values, ethics and principles to help me to manage employees and operate a successful business. Annie Smith (March 2, 20
Coleman, J. G. (2012). Educating young leaders. Passion and Purpose , 197-202.
George, B. S. (2007). Discovering your authentic leadership. Harvard Business Review , 129-138.
Lyons, R. (2012). Dean of Haas of School of Business University of California, Berkely. It’s made from followership. (J. G. Cole, Interviewer) Coleman, J., Gulati, D., & Segovia, W.O.
Ulrich, D. S. (2008). Five rules of leadership. In The leadership code five rules to lead by. Defining Leadership Code , 1-24.
[supanova_question]
Family presence during CPR (cardiopulmonary resuscitation) cheap mba definition essay help
In a pre-hospital setting, there are few moments that are as intense as the events that take place when trying to save a life. Family presence during these resuscitation efforts has become an important and controversial issue in health care settings. Family presence during cardiopulmonary resuscitation (CPR) is a relatively new issue in healthcare. Before the advent of modern medicine, family members were often present at the deathbed of their loved ones. A dying person’s last moments were most often controlled by his or her family in the home rather than by medical personnel (Trueman, History of Medicine). Today, families are demanding permission to witness resuscitation events. Members of the emergency medical services are split on this issue, noting benefits but also potentially negative consequences to family presence during resuscitation efforts.
A new study has found that family members who observed resuscitation efforts were significantly less likely to experience symptoms of post-traumatic stress, anxiety and depression than family members that did not. The results, published in an online article in The New England Journal of Medicine, entitled ‘Family Presence during Cardiopulmonary Resuscitation,’ were the same regardless of the survival of the patient. The study involved 570 people in France whose family members were treated by emergency medical personnel at home. These EMS teams were unique in that they were comprised of a physician, a nurse trained in emergency medicine, and two emergency medical technicians. The study found that the presence of relatives did not affect the results of CPR, nor did it increase the stress levels of the emergency medical teams. Having family present also did not result in any legal claims after the incidents occured. While the unique limitations of the study warrant consideration, the results show a definite benefit in having families stay during CPR (Jabre Family Presence).
Historically, although parents of children have been allowed to be present for various reasons, relatives of adult patients have not. As medical practices change to increasingly involve family in the care of patients, growing numbers of emergency medical practitioners say that giving relatives the option of watching CPR can be a good idea. Several national organizations, including The American Heart Association, have revised their policies to call for giving family members the option of being present during CPR (AHA Guidelines for CPR). Witnessing CPR, say some emergency medical experts and family members, can take the mystery out of what could be a potentially terrifying experience. It can provide reassurance to family members that everything is being done to save their loved ones. It also can offer closure for relatives wanting to be with their family members until the last minute (Kirkland Lasting Benefit). Another benefit is that it shows people why reviving someone in cardiac arrest is much less likely than people assume from watching it being done on television (Ledermann Family Presence During). Family members who can truly understand what it means to ‘do everything possible’ can go on to make more informed decisions about end-of-life care for themselves or their families.
There are three perspectives on this issue- that of the emergency medical personnel providing care, the family, and the patients. The resistance on the part of the medical community to family presence during CPR stems from several different concerns. The most common concern among these is that family members, when faced with overwhelming fear, stress and grief, could disrupt or delay active CPR. Another concern raised by emergency medical personnel is that the realities of CPR may simply be too traumatic for loved ones, causing them to suffer more than they potentially would have if they had never witnessed the event. Some families share this view, citing the potential for extreme distress as a main reason for not wanting to witness resuscitation (Grice Study examining attitudes). Many emergency medical personnel also fear an increased risk of liability and litigation with family members present in the room (Fullbrook the Presence of Family). The worry is that errors can occur, inappropriate comments may be made, and the actions of the personnel involved may be misinterpreted. In an already tense situation, the awareness of the family could increase the anxiety of the personnel and create a greater potential for mistakes.
Another complication that arises from having families present during resuscitation attempts is that of patient confidentiality. The patient’s right to privacy should not be circumvented with implied consent. There is always the possibility that medical information previously unknown to the family may be revealed in the chaos of resuscitation. In addition, patient dignity, whether physical or otherwise, may become compromised (Fullbrook the Presence of Family). Beyond moral considerations, legal concerns regarding revealing patient information are real. This could become an even larger issue if there is no one available to screen witnesses, which could result in unrelated people gaining access to personal information. Eventually, a breach in confidentiality can lead to a breach in the confidence that the public has gained in pre-hospital emergency care.
Family presence during CPR in a pre-hospital setting remains a highly debatable topic. This could be largely due to the fact that the needs of the emergency medical providers and the rights of the patients can be at odds with the wishes of the family members. Although there are several possible reasons why family presence is not being welcomed into daily practice, one of the major reasons could be the lack of formal written policies that define the roles of families and providers placed into this situation. Bringing family members into a situation where CPR is being performed on a loved one should not happen haphazardly. It should happen with careful concern and support for everyone involved. Policies and protocols, defined by experienced personnel, can provide legal and emotional support. They can also potentially help ease anxiety by defining expectations and placing responsibility in the hands of people who are experienced enough to know how to handle the situation appropriately. The policies and protocols should address the basic needs of all people involved. Five basic needs should be addressed:
1. The number of people allowed to be present
2. Which relatives should be allowed to be present (age, relationship, etc.)
3. The role of the family members present and what is expected of them.
4. The place where the family should remain during the duration of CPR.
5. The formal wishes of the patient- written as a directive like a living will.
An important component of this is available, trained staff that can prepare the family members for what they will witness, support them through the event, and then direct them after the event’s conclusion.
The American Heart Association states that the goals of cardiopulmonary resuscitation are, ‘to preserve life, restore health, relieve suffering, limit disability, and respect the individual’s decisions rights and privacy’ (AHA Guidelines for CPR). The practice of offering family members the opportunity to be present during CPR is a controversial ethical issue in emergency medical services. While the results of the study published on this topic in The New England Journal of Medicine clearly show no negative side effects from having families present during resuscitation attempts, the limitations of the study lend to the need for more research before it could be universally accepted.
[supanova_question]
Respondeat Superior global history essay help
Legal claims that derive from a situation where there are claims of negligence can sometimes involve an entity other than the neglectful parties. In certain circumstances employers are fully responsible for their employees, and the tasks they perform during working hours. During the course of this paper, the doctrine of respondeat superior will be defined and explained. Two case studies in which the doctrine was applied will also be analyzed to determine if it was applied correctly.
Respondeat superior is a legal theory that holds employers responsible for any negligent or harmful act performed by an employee during the commission of their employment duties (Thornton, 2010). The Maryland Supreme Court in 1951 was the first court to utilize respondeat superior in a court case involving a question of employer liability (Burns, 2011). This doctrine is important as it holds employers liable in court cases where one of its employees does harm to an individual. Vicarious liability and indirect liability are two base concepts that make-up respondeat superior (Thornton, 2010). Respondeat superior shows that the employer did not have to be responsible for the employee???s negligent behavior, in the form of improper training or instruction to perform harmful acts, in order for the employer to be held legally responsible.
In the case of Valle v. City of Houston, the police force was sued for excessive force and an illegal search in an attempt to remove an individual from his parent???s home (Nicholl & Kelly, 2012). The situation stemmed from a man, Omar Esparza, barricading himself in his parent???s home and refusing to come out (p. 285). After a long police standoff, the SWAT team was ordered to forcefully enter the home and remove Mr. Esparza (p. 285). The SWAT team utilized taser gun and bean bag ammunition in an attempt to subdue Mr. Esparza after they felt he posed a physical threat by wielding a hammer, but as those attempts failed the suspect was fatally wounded when an officer fired his weapon (p. 286). Shortly after the incident the mother was allowed into the home, and she reported no visible evidence that her son was possession of a hammer (p. 286). The court found that the city was not liable for damages under the theory of respondeat superior, because the order to remove the individual from the home was not made by an individual deemed as a decision-maker by the city (p. 286).
From the outside, this case seems to fit the theory of respondeat superior. As the employer, the city should be held responsible for the actions of its employees. The police, serving as the city???s employees acted in a manner that was unnecessary for the situation and in conflict of their training (p. 286). However, the court sided with the City of Houston because the chain of command was not followed in regards to the use of force (p. 286). The end result is a case where an individual made a decision that was not his to make; that ultimately cost a man his life.
[supanova_question]