Business Process Outsourcing Management System

AbstractA BPO is an area where several customer service representative (CSR) agents are located to man a bank of telephones and computer terminals. These agents are specially trained on telephone etiquette, the type of customer queries, that may arise and on how to respond to these queries in a quick and efficient manner.A BPO can also equipped with an automatic call handling system like an Interactive Voice Response system (IVR) so that all routine, repetitive queries. BPO has tremendous impact on business. BPO for selling goods and services, as well as call centers for providing customer care, is going to become a familiar part of the business of virtually every person. BPO also pioneered the developed of self-service via the telephone, using interactive voice response technology. It is providing a richer and friendlier environment for self-service transactions than the tone telephone can be answered by the system without the customer having to speak to a customer associate.Introdu ctionThe purpose of this project was the BPO management system for information about the customer need from inside and outside world. BPO is typically categorized into back office outsourcing-which includes internal business functions such as human resources or finance and accounting, and front office outsouring-which includes customer related services such as contact center services.BPO that is contracted outside a company’s country is called offshore outsourcing.BPO that is contracted to a company’s neighbouring country is called nearshore outsourcing.Given the proximity of BPO to the information technology industry.USE CASE DIAGRAM:SEQUENCE DIAGRAM:COLLABORATION DIAGRAM:CLASS DIAGRAM:REAL TIME PROCESS DIAGRAM: COMPONENT DIAGRAM:

Tesco Case Analysis

Tests had an In store policy that a new checkout line would be opened If there was m re than 1 person waiting In line and they were pioneers In self service checkout terminal. Tests was also innovative with its store formats. Tests stores ranges in size and service fro m; Express, Metro, Superstore, Extra, and Homeless. Tests used consumer purchase data to tailor assortments to local customer needs. Tests also increased the amount of non food items they stocked to include a clothing line.The Club card, which offered cash back rewards and redeemable vouchers, was successful In creating loyalty among Its consumer. Tests proved successful In International operations by expanding Into emerging entries with minimal competition such as those in Eastern Europe and Asia. It AC aired smaller, established retailers and kept local management in place. They were flexible in their strategy and acted locally using multiple formats.Tests also leveraged its brand loyalty to expand in other service a reas such as; flan telecommunications, and grocery delivery. This by partnering or eventually acquiring recognized and trusted brands/organizations. 2. Which success factors are or are not transferable to the US? Transitioning to the United States presented a challenge for Tests considering that t Eire major factor of international success have been the lack of strong competition in the new areas to expand.Clearly not this case, because there were around 35,000 supermarkets In t and in addition, almost every retailer from drugstores to home improvement centers sold some grocery items. There existed intense price competition as the U. S. Was over stored, according to some industry analysts, and the average U. S. Supermarket realized an operating proof t of 2% to 3% of sales, presenting a much different landscape from what Tests was transitioning g from in the U. K.Nevertheless, Tests identified an increasing consumer interest in wellness, in health conscious food choices and a contin uing trend towards on the go consumption, especially evident in California as a result of greater automobile commuting times compared to the national average. Tests hoped to avoid the headed head competition for the weekly family shopping trim with the established grocery chains, a niche it dominated in the U. K. , and rather focus s on targeting an undeserved niche in the marketplace. 3. Was Tests smart to enter the US market? In California, Arizona and Nevada?Although early analysis led decision makers to believe the US, especially the Southwest was a good market to enter actual performance leads one to think otherwise. Tests c inducted a great deal of due diligence prior to entering the US market. They analyzed trends I indicated by market research, sent senior managers to live with Californian families, and conducted d a mock store tour with 200 focus groups. By targeting an undeserved niche in the marketplace ace, Tests hoped to avoid headed head competition for the weekly fami ly shopping trip with established grocery chains.Several other factors demonstrated potential to include: o Grocery retailing in the US embraced multiple formats (in keeping with Tests strategy No national grocery retailer in the US None of the principal supermarket chains (Kroger, Safely, Supernal) commanded more than 15% of US grocery sales Market size: $600 billion Possible gap between convenience stores and supermarkets that might be filled by neighborhood markets o Increasing customer interest in wellness, in health conscious food choices, and a Tests specifically looked to the following benefits of California, Arizona and Nevada:S Grocery retailing not dominated by any one chain S Lower penetration by Wall Mart than in other US regions S CA: rapidly growing, ethnically diverse population of over 35 million, median house hold income well above national average S AZ, NV. Similarly diverse and growing rapidly Despite all of the potential benefits, Tests faced several challenges t o include: Competition (35,000 supermarkets) Almost every retailer from drugstores to home improvement centers also sold grocer y items (overstated) Intense price competition Economic downturn Low average operating profits of 23% of salesPrior attempts by British supermarket chains to expand into the US had proven nuns successful 4. What is the Fresh & Easy value proposition? Is it likely to be appealing in California, Arizona and Nevada? â€Å"C†¦ ] customers wanted great service, choice, and value† (p. 4) â€Å"offer fresh, wholesome food at affordable prices† (p. 7) â€Å"strong commitment to being a good neighbor and a great place to work† (p. ) emphasis on everyday low pricing rather than weekly specials hoped to leverage lower operating costs to deliver â€Å"honest low prices† on â€Å"fresh wholesome food† that â€Å"should be available to everyone† in a â€Å"neighborhood market† ( Employees from local community, careful ly selected to fit Deco's culture (p. 7) Nonfood items would account for only 5% of sales (p. 7) â€Å"ready to sell† approach, whereby many products sent from distribution center to store packaged, extending product freshness, protecting produce from damage, cutting down on spoilage, requiring less refrigeration, and reducing labor needed to stock shelves (p. ) Leveraging relationships with collaborators for distribution (p. 8); this centralized MO del was similar to Walter's Smaller stores = easier permitting process Taking over existing, vacant drugstores = cheaper than building from scratch New stores built from prepare materials = quicker construction, lower overhead, streamlined supply chain Energy efficient stores (30% less energy than comparable, traditional stores; some stores LED certified) Fresh & Easy emphasized everyday low pricing rather than weekly specials and hope d to on â€Å"fresh wholesome food† that â€Å"should be available to everyone† in a â€Å"neighborhood market. Fresh & Easy leveraged relationships with collaborators for distribution to create value e by minimizing costs and emphasize fresh. Their â€Å"ready to sell† approach, whereby prepare caged products went directly from distributors to local stores, promotes that it extended pro duct freshness. The prepackaging protected produce from damage, cut down on spoilage, required less refrigeration, and reduced labor needed to stock shelves. Fresh & Ease's appeal in new markets relied on various factors.California offered the rapidly growing, ethnically diverse population of over 35 million with a median house hold income well above the national average. The percentage of Caucasians had fallen to below 45 and 40% of people spoke a language other than English at home. Hispanic Americans accounted for 37% of the population, Seminarians for 12% and African Americans 6%. The populations of Arizona and Nevada were similarly diverse and growing rapidly. Ethnic ally diverse pop populations are likely to appreciate Fresh & Ease's value propositions.The emphasis on â€Å"honest 10 w prices† and a â€Å"neighborhood market†appeal to various ethnicities. However, Fresh & Easy built many stores in suburban neighborhoods. The population n in these neighborhoods tend to shop less times per week but spend more at each visit. These habits clash with the Fresh & Easy concept of daily visits to grab a quick and inexpensive vive bite. It may have been a better idea to have targeted urban cities like New York or Chicago w here the population's buying habits are more compatible with Fresh & Ease's intended target. 5.

Creating a server (Linux)

For this kind of scenario, I would have to create a server from scratch so I can be able to identify any types of vulnerabilities on any of these server requirements stated below. Any of these can be at risk at any time, so creating a new server from scratch would be most recommended. Because it is kind of safer than Windows because most viruses and worms are written for Windows but it doesn’t mean Linux can be attacked.Server Requirements:A Web ServerA database serverA Simple Mail Transfer Protocol (SMTP) serverA file server customers’ loan applications and other personal data files First of all, since Linux is mostly an open-source type of software running server, it is very vulnerable to any kinds of attacks, or as Linux calls them, crackers. Many malicious attacks on Linux and related applications will also grow. The Web Server isn’t much of a risk because but it is still an important software that can have a high risk of being attacked because it’s kn own as an open-source, so having any personal information stored inside it, can be at risk of being exposed to a cracker (hacker).The Database Server is a very high risk of vulnerabilities because this is where important data and files are being stored in. Again, this is still an open-source software so protecting this kind of software is important to the company. A Simple Mail Transfer Protocol (SMTP) and a file server for customers’ loan applications and other personal data files are a must protect! These are open-sources too, so basically all of these server requirements are open source, no surprise. But protecting all these will require a lot of attention especially the SMTP, file server for customers’ and the database server. Here are some steps/tools that you can use to stop any kinds of attacks upon these servers: Identify any risks/vulnerabilities these servers have:Open portsNessusOpenSSH/PuTTY/SSHBurp SuiteThere’s more of these but these are the basics of protecting your Linux system from attacks. Follow these steps and you’ll be able to have any risks on your Linux systems.

Reflection Paper Essay Example | Topics and Well Written Essays - 500 words - 13

Reflection Paper - Essay Example Most of them looked in their mid-30s, and they were most likely looking, for a restaurant, to dine in. I also noticed another group made up mostly of white Americans who were in The Mall for pleasure, including shoppers and tourists. In addition, it was also possible to make out some groups of people, in this case more diverse with white, Hispanic and some black people, who looked like conventioneers. Out on the streets, they all looked relaxed while some also looked to be people watching, as well. It was not possible to miss the bearded black man walked past me on the street looking through the trash bins. A number of similar men were also in the vicinity further down the street with shabby clothes, and most of them had cigarettes dangling from their mouths, oblivious of the numerous signs against smoking. As I neared my destination, I saw a group of people, mostly white, who looked out of place. Most of them are in camouflage trousers with grey tank tops, big backpacks and chained wallets. One group has particularly huge backpacks and has a walking toddler and another in a stroller. They are identifiable as what one of my lecturers calls transients, living on the street as street kids. It looked as if they were headed for the train station. Sitting in the outside area of the Starbucks later, I notice many passers-by with rolling suitcases, most of them white. The suitcases, one can guess, has their belongings, and they do not seem to be in any rush or have any purpose. In fact, most of the people I have seen today do not seem to be frantic or excited with most looking relaxed. This particular group seems to be going about everyday activities with the suitcases rolling behind them. Most of the people seated around me are white with a few Asians. I spot two Hispanic men working at the sports souvenir shop also people watching. They do not take any notice

Dialect and Venacular Term Paper Example | Topics and Well Written Essays - 1000 words

Dialect and Venacular - Term Paper Example It cannot be denied that dialect influences phonological awareness. Divergent speakers end up bypassing certain phonemes. In a study conducted by Rebecca Treiman (2004) it was established that due to this bypass, divergent speakers were more likely to spell words wrong. The study tries to find the truth in the statement whereby some phonological experts opine that spelling and reading development is affected mostly by phonology. It is how people speak that they read and/or write. The result of Treiman’s study (2004), which involved African Americans, who spoke African American Vernacular English (AAVE) as well as SAE speakers, both as participants and experimenters, showed that AAVE speakers were more likely to spell words based on how they spoke them, whereas SAE speakers made spelling errors when the experimenter calling out the words to be spelled was an AAVE speaker. Treiman (2004) attributes this as one of the contributing factors to the lag seen in the literacy skills of African Americans. Interestingly enough, there is a positive influence of dialect on phonological awareness as well. People used to, or growing up with, vernacular differing from SAE are actually more phonologically aware than those who only use SAE. Those speaking dialects are often in minority and have to learn the â€Å"standard† way of speech as well, or at least be able to understand it orally. For this reason, divergent speakers often have fine-tuned phonological awareness, as they are much more conscious of the differences of phonetics between their own vernacular and the standard speech. This hypothesis was also put forward by Sligh and Conners’ 2003 study, in which they stated that it could be possible that divergent speakers developed â€Å"good phonological processing skills, due to their experience with two dialects in which there are phonological differences† (p. 222). There needs to be more research done with this regard, however. It is often take n to be a fact that vernacular and speech have a direct relationship with reading skills. Children who come from a background where Standard American English (or SAE, as Sligh and Conners term it in their 2003 study) is not used, instead being replaced by a dialect, are often expected to give low results with regard to their reading skills. It is thought that as their vernacular does not allow them to use SAE, they will not be able to learn to read it either. Perhaps this has got more to do with prejudice than reality. As Goodman and Buck opine (1997), often teachers confuse language difference with language deficiency, thus undermining the divergent speakers’ ability to learn to read normally, like those other than him, as well as hampering their self-confidence. There is a â€Å"linguistic discrimination† (Goodman & Buck, 1997, p. 455), which can be, and often is, the cause of low reading skills and reading impairment in divergent speakers. This attitude often is res ponsible for a vicious cycle in which the teacher, unintentionally, lowers the linguistic self-confidence of the divergent reader, causing him or her to be hesitant in learning, and because of this hesitancy the basic false assumption of the teacher seems to be validated in the teacher’s eyes, i.e. the divergent speaker has reading difficulties. Though vernacular does have an impact on reading skills (as well as writing

The Crime of Mayhem Essay Example | Topics and Well Written Essays - 500 words

The Crime of Mayhem - Essay Example For example, earlier this summer there was a report of a â€Å"woman whose dismembered body was found inside a suitcase and black plastic bag in a West Virginia creek [who] apparently was stabbed to death† (http://www.wjla.com/news/stories/0806/354752.html). This appears to be a classic case of attempted disposal of the evidence following a murder. Another case, reported in 2005, was that of a Purdue University graduate student whose dismembered remains were found in a vehicle that has been abandoned in parking garage (http://www.findarticles.com/p/articles/mi_qn4155/is_20050901/ai_n15613591). In this case, the victim’s wife was the prime suspect, as he was reported missing â€Å"the same day his wife was expected to plead guilty to injuring him in a stabbing last Christmas in their Lafayette, Ind., apartment.† There is some international intrigue involved in this scenario, as the victim’s wife apparently fled to China following the crime. Mayhem has proven to be a shocking and depraved crime that has served such purposes as disposal of evidence, victim torture and sexual gratification of the perpetrator. As such, it is a severe aggravating factor when other crimes are present, as they often

Human Resource Information Systems Essay Example | Topics and Well Written Essays - 1750 words

Human Resource Information Systems - Essay Example The HR departments came under pressure with routine work trying to cope with administration and providing more services online, that they could not provide value-added services such as knowledge management, culture management, and strategic direction and renewal. Gradually the focus shifted from playing a purely technical administrative role to being actively involved in the strategic planning and management of an organization. It became essential to add value to enhance competitive advantage. The second perceived need was to incorporate IT in HRM practices. HR functions were transferred to digital formats and even though technology is underutilized, it is increasingly being used in functions such as recruitment, selection, training, promoting, terminating and in complying with legal requirements. IT systems led to the introduction of e-HRM which saves time and costs particularly with online recruitment and training systems. While HRIS can bring substantial savings to an organization , it is necessary that the managers and employees understand the benefits of the new system and are actually ready to use it. Getting the system to adapt to a new system is the greatest difficulty according to Beulen (2009). E-HRM can increase the amount of information provided to people as they obtain online access to HRM policy and practice handbooks. Online notification of holidays and other events facilitate strategic processes while people can even register for training courses online (Paauwe & Farndale, 2004, p11). E-HRM enables help people be constantly ready for change while encouraging online training and learning activities. It also facilitates collaboration between individuals through discussion groups and video-conferencing. It is also known to enhance employee interaction, work-life balance as they can deal with certain personal tasks while at work. In addition to improved accuracy, timely and

Fundamentals of Communication Essay Example | Topics and Well Written Essays - 750 words

Fundamentals of Communication - Essay Example His self concept is bolstered by the amount of success that he attains over a period of time and by the kind of appreciation that the people hold for him in essence. It makes him realize that he is doing something right and hence should be hailed by all and sundry. There is a dire need on his part that the people around him get his message and thus deliver their appreciation back to him. It would raise the bar that surrounds his environments as well as makes him feel elated on most of the occasions. One of the concepts that come about within this discussion center on the premise of bringing in his self identity in close contact with what he aspires to achieve, backed up with the motivational levels that shall make him feel successful at the end of the day. An individual might showcase a number of self identities and concepts that keep on changing as and when the need so arises. What is really required is a vision to set things right within the personality of the individual under cons ideration and thus find the one (self identity/concept) that closely matches with his profile and then go about doing the basics right towards the people at large and the society without any problems whatsoever. The self concept discussion is observable because many different representations are showcased every now and so often by the individual under consideration. This would mean that he is doing his best to tell everyone what kind of successes lie in store for him if he is being his real self and telling to the world about his strengths without any issues. The need here is to contemplate the fact that the self concept will remain detectable without any problems coming to the fore. It would also mean that he is being true to his own individual personality and not representing someone who he is not. If the same happens, his self concept and self identity domains would lose track and hence a totally new personality would emerge on the horizon.

Find 2 peer reviewed articles that discuss hospital acquired Essay

Find 2 peer reviewed articles that discuss hospital acquired infections as a patient care problem that effects the financial man - Essay Example Such infections can also grow after the patient leaves the hospital, provided the patient spends time in incubation period at the time of discharge. Hygiene plays a crucial role in defeating HAIs and hand washing is the most effective tool in preventing them. According to a study a hospital audit revealed only 27% compliance of correct hand washing guidelines among nurses and 29% among physicians. If this situation can be improved there can be significant success in preventing HAIs. Analysis of the nurse’s role in relationship to this problem The role of nurses is as important as the doctors. Other than providing facilities for better hygiene in nurses educating them is such an important tool that it can hardly be ignored. The study reveals that through staff education and support in a hospital, hand hygiene compliance monitored in nurses increased from 48% to 64%. The same measurement was even more prominent in doctors as it showed an increase from 0% to 30%. The recommendati on given fits perfectly well with the frame of study. The Ministry of Health and Long Term Care should in work in conjunction with Local Health Integration Networks and make hand washing and hygiene compliance a part of its public reporting requirements. ... It is also recommended that Ministries educational materials should be developed specifically for nurses by keeping in mind their problems and priorities. Preventing Hospital-Acquired Infections By Lorri Downs Audience: Common People Summary Prevention of Hospital Acquired Infections or HAIs still remains one of the most crucial issues in healthcare facilities. It is statistically proven that almost every health care facility is aware of the fact 40% of all HAIs are urinary tract infections. The problem itself has been discussed frequently but its evidence based solutions are rarely discussed. The CMS reimbursement changes did highlight the issue. Health care professionals dealt with the mandate that they either eliminate certain HAIs or lose Medicare reimbursement dollars. Hand hygiene is the most effective method for preventing HAI however, there still isn’t 100% compliance worldwide. On average, the compliance is only around 40%. The biggest constraint that doctors and nurs es reportedly face is time and for this reason, they don’t perform correct antisepsis. The constraint is evident when nurses use soap and water to clean their hands. Time can be considerably reduced by using alcohol based hand washing solutions. A concentration of 80 percent ethyl alcohol or 75% isopropanol highly effective in hygiene and saves a lot of time compared with soap and water. With the hand sanitization solution provided the other contribution in regards with HAI is CAUTI infection. According to the study, in 30% to 50% of the patients that were inserted with a catheter tube, it was found that the catheter infection was not medically indicated. Hence caregivers should ask twice before recommending a catheter and more importantly the time for its

International finance case study Essay Example | Topics and Well Written Essays - 2500 words

International finance case study - Essay Example The will help the company gain competitive advantage over the global competitors. Though these benefits will exist but the company will face some financial issues that will be discussed in this report. Ruritania is a politically stable and economically developing country, but the currency of the country is not very stable. Four years ago, when the Crown, Ruritania’s currency, was allowed to float freely by the government, there was a large drop in its value. In the past, the Crown had a centrally managed exchange rate. This caused the currency to have a fixed rate against the foreign currencies. The value of the currency dropped sharply when it was allowed to float freely in the foreign market. This is the evidence that a very low demand for the Crown existed in the foreign market. A floating exchange rate is self-correcting, as it fixes the exchange rate according to its demand. Although the currency has shown stability now, but there is a risk of a drop in currency value in the future. This would cause the imports for the company to get expensive. If the company decides to purchase anything from foreign market, it will have to pay higher costs. If the company is importing raw material from another country, the price of the raw material will go up and the company will lose out. The final product of the company will also be priced higher because of the higher cost of raw material. This will cause the local competitors to gain a higher market share because they will be offering lower prices. The Crown faces risk in the international market right now because only one and a half year has passed since it has been stable against the major international currencies. Eighteen months is not a very long period to determine the stability of currency of a country. Therefore this lack of a hard currency will restrict the ability of the company to import raw material from the headquarters in UK. The country

Management Strategy Essay Example | Topics and Well Written Essays - 2500 words - 1

Management Strategy - Essay Example It is also through this mission statement that Toyota was able to focus even more in the U.S., its old market and where it gets its high portion of sales and market share. In fact, focusing in the U.S. market was never been a mistake considering that the U.S. is one of the most influential countries in the world when it comes to setting various trends in economics and politics in general. Toyota sales were growing in this country and in fact, Toyota was heading on to even more wider expansion just even as it continues to grow in popularity and acceptance around the world. However, amidst global economic recession, and despite the fact that this strongly caused strong negative impact to every automaker around the world, Toyota is not accustomed to experience them. To wit, Toyota’s experienced troubles are the following (Flint, 2009): In 2007, Toyota was able to sell 9.37 million cars world wide, an indicator that it was then making out well. In fact, it made profits of $2.27 billion beating the General Motors as the world’s largest car maker as of the year 2007 (Japanese economy hitting record lows, 2008). However, it had an operating loss almost $5 billion in 2008 (Flint, 2009). In the last quarter of 2008, the Japanese exports dropped by $60 billion as a result of a rising Yen making cars and electrical goods expensive overseas (Japanese economy hitting record lows, 2008). This made its sales in its biggest market, the USA suffered. Based on last year’s sales, its sales was down 38% in the U.S., 20% in Canada, 30% in Japan and 18% in Europe (Flint, 2009). Toyota has never been accustomed to failures considering that the automotive industry where it belongs identifies it as one of the world’s largest automotive producers which aims to promote quality products in an international scale by making the world’s one of the greatest markets a target, the United States of America. Toyota is also known as the Japanese giant because it is the leading

Deciding my future Essay Example for Free

Deciding my future Essay A dream is not something to scoff at. Dreams always seem out of reach, a siren call that leads you to new, uncharted waters. Achieving one’s dream would be to reach a true pinnacle of life; however, the road to a dream is fraught with risks. To give achieving this dream your all might be the only way to reach one’s true potential, yet it may also lead to a bitter and disappointing end. With this in mind, I have often put off achieving my own dreams. I was so frightened by the possibility of failure that I dared not even try, instead resigning myself to a life of mediocrity. However, my dreams were given life by the encouragement of my parents to not settle for less. My dreams are not a trifle, an easily obtainable goal. My ultimate goal is to be a leading Video Game Designer, to create adventures and stories that resonate with the world and revolutionize storytelling in gaming. The mere immensity of this task was enough to make me shudder in fear. I looked my dream in the eye and thought it too immense. I would have resigned myself to a life of normalcy were it not for my parents, who did not want me to settle for any less then what I was capable of. They had just discovered a college that was about to open up a new major for Video Game Development, and encouraged me to face my fears and try to achieve my dreams. They pushed me to achieve my dreams, knowing that this college would be twice as expensive as a regular school. This encouragement led me to attempting to try and chase my dreams, to have some hope that what I wanted was possible, and to never give up on my dream. Becoming a game designer is not easy. It is even more difficult if you have dreams as large and grand as mine are. The mere thought of the immensity of this task, and my preconceived notions of my own inferiority, drove me away. However, I realized that, although a dream is rarely the easiest path, and instead it is more often than not the hardest path of all, to not even try to reach ones dream is to give up on life. The path I chose may not be the easiest path, and yet I walk down it knowing full well it might end in heartbreak. I do this knowing that, if I had given up, then I would never have known if I could do it, and spend the rest of my life mourning what could have been. Again, were it not for my parents encouragement, I would never have even attempted to chase my dream. No matter how much you want something, it is impossible to achieve it if you have no hope it could succeed. A sense of hope that what you want could be possible is a vital component to making it possible. This was something I had lacked prior to my parents encouragement. I was so frightened by what I wanted to do, I had no hope it was possible. Without hope, I would not even try, for why try when you are certain you will fail? My parents helped me believe that I COULD do it, that there was a chance, and that chance was all I needed. No matter the odds facing me, I had to have hope that it was possible to overcome. Even when you want something and work very hard, it is all too possible you will fail at first. The old adage, â€Å"If at first you don’t succeed, try, try again† works beautifully in this scenario. No matter how many times you are beat down, no matter how many times I fail in convincing people to work to my dream to companies to invest in my dream, I must perspire. If a dream is weak enough to be broken at the first sign of trouble, then it was never truly one of these â€Å"dreams† of which I speak, so much as it was a passing fancy. A true dream is not something one would ever give up on, and neither should I, for although there are many obstacles I must overcome to achieve my dream, to give up my dream would be to give up on my happiness. The dream of which I seek is a lofty one, and there is little chance it will be easy. However, no matter the cost or hurdle I must overcome, I have decided to reach my dream. This courage to face the impossible would not have occurred however without the support of my parents who have helped me and want me to reach my full potential, so thanks to them, even if I do not reach my dream, I will have tried; and the fact that I will try shall be the greatest gift my parents would ever have given me.

Luxury Goods: Definition and literature

Luxury Goods: Definition and literature Chapter 2: Literature Reviews 2.0 Definition of Luxury Goods The word ‘luxury can be defined as state of life in which has uses things that please the senses or pleasing to have but not essential. â€Å"A good attains the label as a â€Å"luxury† when it has a particular design, quality, performance or durability that is remarkably superior to the comparable substitutes† (Snapshot of U.S Luxury Good Market, 2007). Dubois, Laurent and Czellar (2001) and Survanasuddhi (2007) stated a definition of the nature and characteristics of the concept of luxury. The six facets are excellent quality, very high price, scarcity and uniqueness, aesthetics and polysensuality, ancestral heritage and personal history and superfluousness. Luxury goods are rising in popularity especially as consumers buying behavior is becoming more symbolized. Consumers feel that by owning luxury products can express their personality and set them apart. Thus, â€Å"luxury goods have been defined as goods for which the mere use or display of a particular branded product brings prestige on the owner, apart from any functional utility† (Nia and Zaikowsky,2000) The term ‘prestige was defined as it consists of consumers motivations for chasing technical superiority, uniqueness, signaling wealth and status well as aesthetics appeal (Vigneron and Johnson, 1999). ‘Prestige and ‘luxury are used synonymously in the VIgneron and Johnsons research. Vigneron and Johnson (1999) categorized three types of prestige brand as upmarket brands, premium brands and luxury brands, respectively in an increasing order of prestige. Hence, it was expected that people would have different perceptions of the level of prestige for the same brands, and that the overall prestige level of a brand would consider the prestige perceptions from different people. Source: Vigneron and Johnson (1999) â€Å"Luxury brands can be described as premium priced brands that consumers purchase for their psychological values (symbolic and hedonic), and not predominately for their economical and functional value† (Nueno and Quelch 1998; Stegeman, 2006). However, the definition of luxury goods or brands cannot be fully recognized. The definition of luxury will be different and may not be the same for another researcher. Chadha Husband (2006) definition limits itself in that it only pertains to luxury fashion goods instead there are other luxury goods that are also both universally available and accepted as luxury. The definition of luxury brands have been defined as fashionable and high quality consumers goods made by reputed luxury brands which contained wearable fashion goods such as handbag, wallet, shoes and belt (Chadha and Husband, 2006; Heinemann, 2008). Fashion can be reflection of the social, economic, political and artistic forces of the time. Accoding to Gao, Norton, Zhang, To (2009), â€Å"luxury fashion goods are apparel, accessories, handbags, shoes, watches, jewellery, and perfume for which use or display of particular branded products brings prestige to owners, apart from any functional utility†. Snapshot of U.S Luxury Good Market (2007) stated fashion group represent the major product sector in the luxury goods market. It is important to know that the survey showed that â€Å"one sixth (16%) of the worlds consumers claim to buy designer brands† (ACNielsen, 2008). For this research, the term luxury goods can be defined as the brands that are defined as luxurious in the annual â€Å"Consumer and Designer Brand Report 2008† by the global Nielson firm which the survey is the largest and it identified the following goods as the luxury fashion goods. Calvin Klien Giorgio Armani Celine Ralph Lauren Louis Vuitton Ferragamo Diesel Burberry Chloe Chanel Versace Marc Jacobs Christian Dior Prada Gucci Givenchy DKNY Emporio Armani Valentino Hermes Fendi Yves Saint Lauren Max Mara The fashion goods that show above are not the only goods that are stated as luxury in this research. Consumers allow to evaluate and include other brands which they think is luxury fashion goods for them. Furthermore, there are many opinions and views of luxury from different leaders viewpoint stated in KPMG research (Managing Luxury Brand Growth, 2006). Luxury is explained in the table below as following: Leaders Name and Company Definition 1. Guy Salter * Private Investor, Deputy Chairman of Walpole, the British Luxury goods organization Because luxury matters in a way that didnt matter before. Increasingly, luxury is big business: the luxury segment is growing and according to most projections it will continue to grow for the next ten to fifteen years. 2. Belinda Earl, * Jaeger Groups chief executive * Jaeger is a luxury British brand renowned for designing stylish, innovative and superb quality womenswear, menswear and accessories. None of us are in the business selling necessities; luxury is the business of creating and satisfying desires. 3. Richard Purdey of gun makers James Purdey and Sons * Famous British gun maker of London, and the name is synonymous with the very finest sporting shotguns and rifles. Purdeys hold or have held numerous warrants of appointment as gun and rifle makers to the British and other European royal families. A real luxury brands has got to have total integrity. It has to be the buyer that says ‘this is luxury. 4. Theo Fennell * Theo Fennell is the jewellery maker by using his name for his company ‘Theo Fennel in London Luxury is something that everyone wants and nobody needs. 5. Joseph Wan of Harvey Nichols * CEO of retailer Harvey Nichols * Harvey Nichols is an international luxury lifestyle store, renowned both in the UK and internationally for the breadth and depth of its exclusive fashion merchandise. It offers many of the worlds most prestigious brands in womenswear, menswear, accessories, beauty, food and home. Luxury is about history. A luxury brand is a lifestyle concept and to be sustainable it has to have history, including a history of quality merchandise and of real luxury customers.. 6. Raphael le Masne de Chermont, of Shanghai Tang * Executive Chair of Shanghai Tang * Shanghai Tang is the first luxury brand emerging design from Chiana It is not in the price, it is in the pleasure you give to the customer. It is to do with creativity, a harmonious aesthetic with attention to details. 7.Christian Hafner * Head of Branding at Swarovski Luxury is about history, authenticity, depth and being a partner. Buying a luxury product is like a love affair. 2.1 Generation Y Generation Y are also referred as the Millennial Generation or Generation Next or Net Generation describes the demographic cohort following Generation X. Its members are often referred to as Millennials or Echo Boomers. According to Shareef Mahdavi (2008), Generation Y is the term used to describe children of the Baby Boomer generation, typically born between 1977 and 1995. McCrindle (2008) described the generation Y born in between 1980 and 1994. They are also referred to as ‘Millenials and ‘Echo Boomers in the western society, especially American Society. Generation Y are individuals who born between 1977 to 1994 that have a free spending spirit and consist of 71 million 8 to 25 year olds (Horovitz, 2002; Sriviroj 2007). The wealthiest groups of people are between the ages of 19 to 25 year olds who are either employed in full time jobs or part time work even though there are group amount of generation Y consumers. The greatest purchasing power in the Generation Y college student takes place within the part-time student, who spends over $400 monthly on discretionary purchases while often maintaining full-time employment (Gardyn, 2002). Those who are either part time or at full time work are college students (Martin Turley, 2004). Students always work as part time work to find extra funding for their excessive spending during the university holidays or breaks. There are average 80% of students attending college or university are employed (Martin Turley, 2004). The financial knowledge of the average Generation Y consumer also earns them the awareness and respect of marketers even though their spending power alone is enough reason to pay significant attention to this group of consumers. The financial knowledge of the average Generation Y consumer also earns them the respect of marketers today. Generation Y consumers have a remarkable amount of disposable income due to the increasing of greater level in the economy over the past decade (Martin Turley, 2004). Besides that, the research suggested that â€Å"Generation Y has more discretionary income than the previous generations and prefer to spend it on themselves rather than others. A reason for this may be because they are starting families later in life and therefore are able to spend their income on themselves without having to worry about others† (Angela Hughes, 2008) The important of this group of consumers has taken on the greater level of meaning for marketer. â€Å"While the Baby Boomers grew up with television advertising influencing how they were marketed to and how they bought products, Generation Y has many different mediums that they grew up with, which is what makes marketing to them so much more difficult† (Angela Hughes, 2008). Marketers are playing the large part influence consumers behaviour through the knowledge of fashion. The reason is that teenagers are concerned about fashion value more than any other age groups (Koester and May,1985; Sriviroj 2007). One of the most influencers is the media because of media consist of a wide range of technology such as television, internet, mobile phone and DVD. (Angela Hughes, 2008, Sriviroj 2007). The internet has permanently changed the way that this generation shops by giving the information about products than the companies give the consumer. According to Angela Hughes (2008), he in ternet is also a powerful tool for this generation in spreading opinions about products to their peers. The largest differences between Generation Y and those that preceded them are Generation Ys tremendous awareness and confidence. Generation Y is more likely than any previous generation to look up information before purchasing a product. Generation Y is more desirable to own the products that they know their peers will accept just to show they are part of the group. On the other hand, in the research of Sriviroj (2007) stated that television is strongly influence these generation which affect them as they will reflect their perceptions in â€Å"reality† as they have seen in television world. â€Å"Of the paid advertising channels of online, outdoor, newspaper, magazine, radio, TV and Theatrical, TV and newspaper are the most trusted media† (Nielsen Global Online Consumer Survey, 2009). â€Å"Generation Y is poised to take over as the largest and most lucrative consumer group for marketers, a position that has long been held by the Baby Boomer generation† (Angela Hughes, 2008). In order to understand the generation Y consumers, it is important to think about factors that motivate these individuals towards the purchasing of luxury goods. 2.2 Social Influence Previous research shows that group influences play an important role in influencing the purchase decisions (Brinberg and Plimpton, 1986; Martin and Bush 2000; Mascareches and Higby, 1993). The group members have been recognized as determinant of behavior. The fact that the people act in accordance with a frame of reference produced by the group to which they belong is a long accepted and sound premise (Merton and Rossi, 1949). However, many individuals did not behave like the majority of people in their recognized group (e.g., social class or educational level).The casual observation showed perplexing contradictions between group membership and behaviors. According to Merton and Rossi (1994), â€Å"a partial solution was found in the concept of â€Å"reference group†, which recognizes that people frequently orient themselves to other than membership group in shaping their behaviors and evaluations and that reference groups can perform a diversity of functions.† Reference groups are generally defined as â€Å"actual or imaginary institutions, individuals, or groups conceived of having significant relevance upon an individual‟s evaluations, aspirations, or behavior† (Lessig and Park, 1975; Pertina, Prybutok, Zhang, 2008). Besides that, reference group also can be defined as â€Å"a group of people that significantly influence an individuals behavior† (Bearden and Etzel, 1982). Reference group are important because they make the individual aware to a specific goods or brands and influence individuals to adopt attitude and behaviour that are consistent with the norm of the group. The normative and informative social influences are the most widely accepted influence. Normative social influence is based on the tendency to conform to the expectation of others while informational influence is based on the desire to make informed decisions and optimize the choice (Stephen Yang and He, 2009; Khan and Khan, 2005). Berden and Etzel (1982) examined that the reference group influence by product and the brand purchase decision. Previous research studied group influences in marketing strategy and consumers purchasing behaviour. Specifically, three types of group influences are studied which is information, utilitarian and value expressive influences (Stephen Yang and He; Bearden and Etzel, 1982; Makgosa and Mohube, 2007; Pertina, Prybutok, Zhang, 2008). Informational influence is reflected when an individual perceives enhancement of knowledge and ability to cope with environment when using information from opinion leaders, experts, or product users. Utilitarian influence manifests through the process of compliance with those who can exercise reward or punishment power. Value-expressive reference group function is based on the identification process whereas an individual who associates oneself with a group to enhance self-concept adopts this groups consumption patterns. Reference groups have been found to specify what the desirable and undesirable goods are (Bristol and Malengburg, 2005; Khan and Khan, 2005). Many researchers have argued that individuals are more susceptible to reference groups influence when the goods is conspicuous and publicly consumed (Bearden and Etzel, 1982; Makgosa and Mohube, 2007; Batra, Homer, Kahle, 2009; Morris and White, 2009). The influence of a reference group on consumer behavior can be done in one of two ways, either directly or indirectly. In the research Stephen Yang and He (2009), reference groups refer the group that individual has frequent contact with (such as family members, work associates, classmates, friends, etc.). These group is refers to the groups used by an individual to direct one purchasing behaviour in particular situation. These are generally referred as direct reference group (Schiffman and Kanuk, 1994). On the other hand, it included â€Å"the groups that does not have the membership in or direct contact with, such as certain expected groups or people in a certain social level (Stephen Yang and He, 2009). Based on the work of Khan and Khan (2005), the direct reference group influence was illustrated as â€Å"families, friends, co-worker, formal social groups and other leisure groups†. This differs from the indirect reference groups comprise of â€Å"individuals and groups t hat influence consumers purchase intentions without having and direct contact such as celebrities and sport personalities† (Khan and Khan, 2005). 2.2.1 Direct Reference Groups Direct reference groups can be defined as direct contact from the individual or groups with the consumers. With the reference from †¦.., it showed that families, friends, co-worker, formal social groups and other leisure groups are under this categories. A person has several reference groups for various subjects or different decisions normally. For example, â€Å"a woman may consult one reference group when she is purchasing a car and a different reference group for lingerie† (Consumer Behaviour, no date).These direct reference groups are the one who frequently contact with the consumers, It can be seen that the groups views from direct reference groups whether purchase the goods in order to be like group members, believing in group members decisions or a sign of wanting to fit in the group. The previous researchers have carried out the investigations on how the role models (parents, relatives, peers) influence teenagers purchase intentions and behavior (Martin and Bush; Subramanian and Subramanian, 1995)) and how parents and peers influence various products and brands purchase decisions (Bearden and Etzel, 1982). Researcher has shown that overt family communication can and often does influence younger consumers attitudes toward purchases and their consumption patterns (Martin and Bush). Consumers always do not feel confident enough to evaluate alone. They will consult a friend or partner by inviting them along to a potential purchase can enhance the process. â€Å"Having a peer present meant that shop assistants become largely irrelevant and that evaluation of a brand centered largely on initial peer reaction to fit, style and price-based decisions† (Guy W.Mullarkey, 2001). â€Å"It is also interesting to note that of all the three direct reference groups, friends tend to exert the greatest influence where individuals purchase brands because they identify themselves with their peers† (Khan and Khan, 2005). From the numerous researches that have been done, direct reference groups influence make an immediate impact to the consumers. Therefore, it can be concluded that direct reference groups play a significant role in providing relevant information, deemed necessary to make a purchase and conform the group norm. 2.2.2 Indirect Reference Groups Indirect reference groups is the group that influence consumers purchase decisions without having any direct contact with the consumers such as celebrities and sport personalities. Khan and Khan (2005) defined celebrities as â€Å"individuals who are well known to the public for their advertisements in areas other than product class endorsed† and that they represent â€Å"an idealisation of life†. In luxury goods industry, it will be much easier by connecting the brand to a celebrity and is even viewed, in some instances, as a necessity. This is because a luxury goods company is in the business of building and selling dreams, and nothing is more helpful in making such dreams concrete and thus more believable in the eyes of the consumer, than communicating it through a famous personality. Celebrities are being increasingly used in marketing communication by marketers to lend personality to their products in India (Matrade Chennai, 2005). Young consumers especially the generation-Y like advertisement more if they are attracted or admire the celebrities. Positive feelings toward the celebrities and the brand itself will develop more from the young consumers. â€Å"Research indicates that celebrity endorsements can result in more favorable advertisement ratings and product evaluations and can have a substantial positive impact on financial returns for the companies that use them† (Silvera and Austad, 2004). Besides that, previous research indicates that celebrities exert influence on consumers purchase intentions and decisions (Martin and Bush, 2000). â€Å"Celebrities have also been found to enhance persuasiveness of messages and lead to actual purchases† (Khan and Khan, 2005). For example, Madonna and Demi Moore for Versace—beautiful, successful, mature women in their 40s, transgressive, independent, non-conformist, sexy, etc. (Roncaglia and Brevetti, 2006). In conclusion, even there is no direct contact with consumers; indirect reference groups have the strong influence to the generation-Y which affects their brand choices toward the luxury goods. 2.3 Perceived Conspicuous Value Vigneron and Johnson (1999) defined five values of prestige behaviour combined with five relevant motivations, and from these identified five different categories of prestige consumers. According to his study, particularly emphasized the role of interpersonal effects on the consumption of prestige brands, and derived three main effects: Veblen, Snob, and Bandwagon. â€Å"The Veblen, snob and bandwagon effects are evident with consumers who perceive price as the most important factor, with a higher price indicating greater prestige. They usually buy rare products and in this way emphasise their status† ((Husic and Cicic, 2008). In addition, the study also conducted by Vigneron Johnson (1999) included the conceptualized framework on two main personal effects: Hedonist and Perfectionist. â€Å"Hedonists and perfectionists are more interested in pleasure derived from the use of luxury products, and less interested in the price than quality, product characteristics and performance. These consumers know what they want and use their own judgment while price exists only as proof of quality† (Husic and Cicic, 2008). Perceived conspicuous value which known as Veblen effect is the consumption of the luxury product is viewed as a signal of status and wealth, whose price, expensive by normal standards, enhances the value of such a signal. (Vigneron and Johnson, 1999). Several researchers demonstrated that price of product have a significant aspect in consumers opinion of quality (Vigneron Johnson, 1999). The price of the product is use to judge quality of the luxury products between different brands. Luxury is an expensive investment. Therefore, a high price has to be justified by an outstanding quality and aesthetics that mass produced goods cant guarantee (Barnier, Rodina, Florence, 2005). For some consumers, high price equals high quality; therefore, they are willing to pay more for high quality. â€Å"Brand exclusivity is the positioning of a brand such that it can command a high price relative to similar products† (Groth and McDaniel, 1993). In addition, it is suggested that â€Å"consumers who perceived price as a proxy for quality, also perceived high prices as an indicator suggesting a certain degree of prestige† (Lichtenstein, Ridgway, and Netemeyer 1993). This statement is further supported in recommend the use of prestige-pricing strategy by the marketing literature when appealing to status-conscious consumers (Vigneron and Johnson, 1999; Luong Thi Bich Thuy, 2008). Numerous researchers have conducted the original work from Bourne (1957), which focused on the influence of reference groups on the consumption of prestige brands (Mason 1981 and 1992; Bearden and Etzel 1982, Vigneron and Johnson, 1999). They found that there was a positive relationship between conspicuous consumption and reference groups. Studies on reference group influence have shown that the â€Å"conspicuousness of a product was positively related to its susceptibility to reference group influence† (Vigneron and Johnson, 1999). Additionally, Bearden and Etzel (1982) stated that luxury products that were publicly purchased are more conspicuous products in comparison to products that were privately consumed. The studies also suggested that the luxury products may used to communicate information about their identity. Veblen (1899) suggested that conspicuous consumption was used by people to signal wealth and by inference power and status. The utility of the luxury products may be to display wealth and one could consider that luxury brands would dominate the conspicuous segment of the consumers. In conclusion, it can be concluded that conspicuous consumption of luxury goods is used to display wealth, power and status. It is playing significant role that how individual motivated into purchasing luxury goods. 2.4 Perceived Quality Value Within the field of marketing, the construct of perceived quality has been widely acknowledged as the primary driver of purchase intention (Jacoby and Olson, 1985). According to Vigneron and Johnson (1999), perceived quality value is defined as â€Å"luxury is partly derived from technical superiority and the extreme care that takes place during the production process†. Thus, Husic and Cicic (2008) stated perfectionism effect or perceived quality as â€Å"perfectionist consumers depend on their own perception of the products quality, and may use price as further evidence of quality†. â€Å"Excellent quality is a sine qua non and it is important that the premium marketer maintains and develops leadership in quality† (Quelch, 1987; Vigneron and Johnson, 1999; Dubois, Laurent, Czellar, 2009; Barnier, Rodina, Florence, 2005; Srichan Sriviroj, 2007 ). In a survey conducted by ACNielsen (2008), it was found that on a global average, â€Å"28% believe that are of significantly higher quality than standard brands†. Source: ACNielsen Report (Consumer and Deisgner Brands), April 2008 Consumer might own prestige goods because they are likely to be of higher quality (Vigneron and Johnson, 1999). A consumer who own a luxury fashion goods is likely to expect that the goods longevity and durability (Dubois, Laurent, Czellar, 2009; Barnier, Rodina, Florence, 2005; Srichan Sriviroj, 2007; Sarisa Suvarnasuddhi, 2007) compare with mass products. It should become better with time and should not lose its appeal (Barnier, Rodina, Florence, 2005). According to the Nielsen survey (2009), designer brands stand for fashion and superior quality however in the developing markets of Latin America, Asia, South Africa and the UAE. A half of respondents in these countries think these brands are for fashion followers, and up to 40 percent believe they offer superior quality. Thus, it is interesting that the greatest percentage of people who believe designer brands offer significantly higher quality over non designer alternatives hail from Malaysia, Taiwan, Hong Kong and Turkey. Source: ACNielsen Report (Consumer and Deisgner Brands), May 2006 Luxury and premium brands are expected to show quality and even greater quality as well (Garfein, 1989; Roux, 1995; Vigneron and Johnson, 1999; Srichan Sriviroj, 2007; Luong Thi Bich Thuy, 2008). Groth and McDaniel (1993) stated that â€Å"high prices may even make certain products or service more desirable†, because people take that products with high prices with great quality (Rao and Monroe, 1989). In fact, luxury products will lose their scarcity and uniqueness characteristics if luxury products are not priced high (Dubois and Duquesne, 1993). The studies and literature on luxury products suggested that the â€Å"quality cue might also be used by consumers to evaluate the level of prestige of brands† (Rao and Monroe, 1989; Vigneron and Johnson, 1999; Luong Thi Bich Thuy, 2008). A low level of quality would play a negative role over the perception of the brand. In contrast, the persons quality perception would play a positive role over his or her perception of presti ge on the same brand if the buyer or the consumer perceives the brand as having an excellent level of quality. (Vigneron and Johnson, 1999; Luong Thi Bich Thuy, 2008) According to Vigneron and Johnson (1999), it stated that the perfectionist effect exists when consumers purchase luxury items and expects superior products and performance as well as quality. People who represent the perfectionist effect are those â€Å"who are assessed to personal values and judge a product according to their value of a luxury brand product† (Srichan Sriviroj, 2007; Luong Thi Bich Thuy, 2008) such as comfort and speed for luxury car or accuracy of the luxury watch. Even previous researches showed that conspicuous vale is more important effect and evident with consumers who perceive price is the most important factor. However, there were researchers stated that quality value is also important such as Jacoby and Olson (1983). In conclusion, perceived quality value were found important to study and can be use to identify the luxury consumption. 2.5 Brand Image Brand is a name, term, design, symbol, or any other feature that identifies one sellers good or service as distinct from those of other sellers (www.marketingpower.com; Iyiade Adedamola Taofik, 2009; Suvarnasuddhi, 2007). In the research of Korchia (1999), â€Å"image creates value in a variety of ways, helping consumers to process information, differentiating the brand, generating reasons to buy, giving positive feelings, and providing a basis for extensions†. Cheng (2006) stated that brand is important because the consumers perception of a product can be affected by the added value of a brand. â€Å"Brands signal to consumers the quality of a product, the image that it is meant to convey, as well as representing particular current garment styles and trends in a fashion context† (Keller, 1993; Guy W.Mullarkey, 2001). Brand image can be defines as â€Å"perceptions about a brand as reflected by the brand associations held in consumer memory† (Keller, 1993; Cheng, 2006; Rio, Varques, Iglesias, 2001). Many researchers have been agreed the important of brand image. Brand image is pivotal because it influences purchase intention and consumers preference as well as they are willing to recommend to others and willing to pay higher price (Forsythe, Kwon, P.Leone, Shannon, 2008; Aiello, Donvito, Godey, Pederzoli, Wiedmann, Hennigs, Siebels) â€Å"To succeed in the changing marketplace, a designer brand needs to sell its core brand values; the â€Å"image† reflected in the design and the lifestyle it represents is what consumers pay a premium to buy into† remarked byKaren Watson, Chief Communications Officer, The Nielsen Company. Consumers able to difference the product differentiation, decrease the purchase risks, obtain several experience and recognize the product and its quality through brand image (Lin and Lin, 2007). â€Å"The personal identification function is related to the fact that consumers can identify themselves with some brands and develop feelings of affinity towards them† (Rio, Varques, Iglesias, 2001). It refers to correspondence between consumers behaviour, self image and image of the product. Through the image of the products the consumers buy and use, his or her self image can be improve based on the theory. It also can be inferred that â€Å"individuals prefer brands that have images compatible with their perceptions of self† (Chiu, Lin, Chiu, Chang). In addition, a positive brand image able to lower the products purchase risks and increase the positive feedback from consumers. â€Å"Consumers are more likely to purchase well known brand products with positive brand image a s a way to lower purchase risks† (Akaah and Korgaonkar, 1988; Aiello, Donvito, Godey, Pederzoli, Wiedmann, Hennigs, Siebels). Hence, consumers feel it is less risky by purchasing branded products. â€Å"The country of origin of a brand is also an influential factor for consumers choosing a product in both Asia and in Western countries† (Pervin). There are many researches suggested the country of origin influence on consumer perception and behaviour through the image of the products country of origin (Phau and Leng, 2008; Forsythe, Kwon, P.Leone, Shannon, 2008; Aiello, Donvito, Godey, Pederzoli, Wiedmann, Hennigs, Siebels). It creates positive brand image to increase the possibility for the products to be chosen and also raise the inferior image of the country of origin (Thakor and Katsanis; 1997 Lin and Lin, 2007). According to Grewal, Krishnan, Baker, and Borin (1998), the better a brand image is, the more recognition consumers give to its product quality.

Effects of Performance Appraisal System on Employees

Effects of Performance Appraisal System on Employees Chapter 1 Introduction: This chapter will discuss the critical importance and understanding of performance appraisal systems in the banking industry of Pakistan. Moreover, this chapter will highlight the need of the study, aims and objectives of the study and also introduction to the key terms that has significant importance throughout the research paper. 1.1. Understanding Performance Appraisal: In the past few decades, organizations were very concerned about the development and orientation of their employees and also pondering on performance management (Murphy Cleveland, 1991). Now, Organizations are following the new patterns of working and doing jobs to adhere the aims and mission of it. To fulfil this new modernized concept of fast and technological revolution, they are realizing the importance and implementation of new methods of performance management (Cardy Dobbins, 1994). Organizations have indentified the importance of performance appraisal and it has been found in the cases of all big multinational companies that they have implemented the performance appraisal systems to enhance the productivity of their employees. There are varieties of different perspectives that evident the importance of performance management and its measurement (Whitney, 1994). Organization should present true and fair views of performance appraisal to gain trust of the employees, their loyalty and job satisfaction are the main core of any organizational success (Robinson Rousseau, 1994). Through rational performance measurement, Organizations management can get the maximum reliance of employees. This research papers aims to explore the performance appraisal system within the banking sector of Pakistan and its comparative study with JS (Jahangir Siddqui) bank. This research study will also explore the effects of performance appraisal on the employees considering motivation, job satisfaction and employee loyalty as key factors in HR functions. 1.2. The Research Topic: To explore the role of performance appraisal system in HR function within the banking sector of Pakistan. 1.2.1. Aim: This research aims to investigate the role of performance appraisal system and its effect on employees considering motivation, job satisfaction and employee loyalty as the key factors in HR function within the banking sector of Pakistan and comparative study with JS Bank. 1.2.2. Objectives: What is performance appraisal? What are different performance appraisal systems? How appraisal system interlinked with motivation and employee loyalty within banking sector of Pakistan? What are different problems with performance appraisal system? What are different strategies in HR department to enhance productivity? 1.3. Rational of Study: The system that identifies the Performance evaluation and review is called Performance Appraisal system. Performance appraisal system highlights the individual and group performance over the period of time and reviews for the promotion and raise in monetary funds. To get the real meaning of performance appraisal system can be elaborated to the concept of performance management. Performance Management can be defined as: â€Å"An approach to create shared vision of the purpose and aims of the organization, helping each individual employee understand and recognise their in contribution to them, and in so doing manage and enhance the performance of both individuals and the organization.† (Fletcher, 1992) Performance management is a process where it describes the performance of individuals that shapes a group and become the collective success of the organization with the set of objectives, time period, reviewing the performance and recognition of the performance with rewards (Connock, 1991). The main objective of performance management is to show the real picture of the employees performance over a period of time and this can be achieved through framed standards (Beaumont, 1993). In the Performance management, the appraisal system is the most significant part where it defines a structural and formal system that helps the manager and subordinate to interact with each other to evaluate performance. This interaction usually comes into process annually of semi-annually in shape of some structured interview or questionnaire. In this process, supervisor examines the performance of subordinate where supervisor identifies strengths and weaknesses and also highlights the area of improvements (Connock, 1991). In different sectors of economy including banking sector, results of appraisal of employees are used for the future employee planning, their rewards management and promotion. These rewards are directly or indirectly linked with the recognition of employees milestones in the personal and professional skills. Thus this identifies the rise in pay, cash bonuses, promotions and job satisfaction majorly (Beaumont, 1993). 1.4. Importance of Performance Appraisal: The managers are aware of the importance and criticality of performance appraisal, and its ultimate affect on the motivation, loyalty, job satisfaction plus its has a big affect on the growth and success of the organization, so while documenting, communicating, and describing the job particulars, they are more concerned. It has been noticed that in the current time, job performance systems have improved a lot, but still the outcome shows that it has a negative impact on the job satisfaction and motivation of the employees if it is not appraised systematically (Robert, 2002). So, it results in counter of an organization that employees are demoralized and also lose their loyalty, which affects the organizational aims and objectives. Human resource officials use performance appraisal for decision making such as planning payments and salary scale of the employees, they also determine what professional developments are needed to equip their employees with a proper feedback. Performance ap praisal can also help the officers to decide what are the factors that can be employed to increase the productivity of employees (Natalie Ann 2005). As performance appraisal encourages the good performers, on the same hand performance appraisal also highlights the poor performers and tells about their weak areas and it helps the management to remove the leaning hurdles and makes them to achieve the set objectives and aims. This system also identifies the employee who needs guidance and counselling from management to improve their performance at work. Organization believes that performance appraisal is the best tool to see the level of employees and their performances and making the decision about their rise in salary, promotions, demotions and penalties (March, 1982). 1.4.1. Factors of Performance Appraisal: There are many factors influencing performance appraisals systems at work. Internal and external factors always play an important role in appraising the employees. Internal factors could be labour unions, managements attitude, the employees behaviour and their stance in the direction of work. External factors are legislations in relation to the employees. Labour union always get into the matters of employees well being at work and also in their personal lives so that they can give their full at work. But some time it has a negative impact on performance appraisal and the management to give promotion or rise in the salary on the bases of seniority (Isaac, 2001). Internal factors can also affect the performance appraisal in shape of bad corporate culture that can be a big hurdle in the performance management. The main objective is to set specific goals and make framework of getting those objectives. For all this, management should inform the employees that what is expected from their j obs and what should they do to make hundred percent out of it. At the end management sees and evaluates on the whole performance and also communicates these efforts to employees. This communication also develops relationship between employees and supervisors (Isaac, 2001). There are different techniques and methods used for the performance appraisal and it gives an outline to measure the performances that are in use of different organizational and it also varies from industry to industry. There is no hard and fast rule to use specific performance appraisal system, but it is always suggested to use the same performance criteria within one organizational and it applies to all of the employees. These models and techniques include, Six Sigma, Balance Scorecard, 360 degree feedback, etc. These models and techniques to measure the performance is widely in use of many MNCs and local organizations, in the banking industry of Pakistan and in JS bank. While designing performance appraisal, management should keep in view the nature and type of the business to conduct these performance management techniques. In the performance management, 360 Degree is common and Six sigma is the operational management technique; both leads to performance appraisal measurement whe re the HR function is able to appraise and it involves the motivational factors, employee loyalty, and job satisfaction aspects. Extensive and appropriate use of these techniques will make the appraisal much unbiased (Natalie Ann 2005). Employees motivation and job satisfaction can never push aside, as these are elementary aspects of any Job. In the process of appraisal system, an employee always expect some feedback from other employees which gives him motivation and the satisfaction from the job done, so these are the complementary part of any job. When any employee is appraised, then he always get the communication and feedback of that appraisal and it actually indicates the level of satisfaction of job the employee has plus the loyalty he has for the organization (Robert, 2002). In the banking industry, as the recession hits and many of the employees being fired, so at the time of performance appraisal, employees are so dissatisfied as they dont know when they are going to be p art of sacked list of employees, keeping in this view, the performance appraisal system plays role in the Hr department to indicate the key factors such as motivation, job satisfaction and loyalty (Caruth and John 2008). Chapter 2 Literature Review This chapter will look into the supporting literature of performance appraisal systems and its importance. As in the recent Times research, in the area of performance and its technical justice and fairness should be categorised as all the decisions and producers for employees in their working capacity and the management should highlight the importance of performance appraisal and its different tools. Furthermore, this part of research study will stick the significance of banking industry and usage of different performance appraisal systems and what are the linkage of motivation, job satisfaction and employee loyalty and strategic importance of performance appraisal systems. 2.1. Performance Appraisal: The process in which human resource management department obtains, analysis and makes decisions on the performance of an employee over a period of time is called Performance Appraisal Process and the methods which are used to appraise the employees are called Performance Appraisal Systems (Yee 2009). The main objective of performance appraisal system is to focus on the performance, key attributes of the job, what is the improvement in the performance and the proportion of the performance that the employee will make in future in the productivity of the organization. It aims towards the employee and its his performance over the period of time (Dobbins, 1994). In the field of human resource management a prominent name of Flippo (1999) says that Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job. (Flippo, 1999) This systematic process allows the management to look into employees activities in last fiscal year or the performance time periods and analyse where it is falling, what improvement has he made and what is the future planning regarding job and activities. Management should educate the employees about their individual goals and share the aims and objectives with the organization. Employees should have the knowledge and freedom to participate in the decision making process. Here, if the management has the full corporation of the employees and on the same hand if employees coordinate with management then this performance and participation can actually helps in the appraisal for the next period. In all this, the right of expressing of opinion will certainly adds to their performance (Beach, 1995). Performance appraisal systems are the powerful tool to measure the performance of an employee and to issue or offer the rewards on that quality performed job. This process allows the management to evaluate the achievements and contribution to the success and productivity of the organization to get the overall organizational aims and objectives (Dobbins, 1994). Moreover these systems are standardising for all the employees. Performance appraisal is a system in which HR managers measures the performance of the employee, either he is performing his job rightly, is he achieving what organization wants from his job, what is his behaviour and attitude towards his job, either he is showing positivity towards his job, is he the right employee for the right job, as all this comes under the HR function of an organization (Randhawa 2007). The main objective of performance appraisal is to make sure that employee‘s performance is up to the mark, to communicate this job performance measurement makes the employee enable to enhance his productivity and cover his loopholes where he is lagging behind. The main idea behind performance appraisal is to insure that organizational goals are being met, because meeting organizational objective is an individual as well collective effort. Strategic objectives on banking sector and any financial institution are to multiply their profits by gaining the top performance from i ts employees. By monitoring employees performance, they actually see what the criticality of the importance is and the effect that job is making on the organizational objectives. An effective performance appraisal must have collaboration between the management and the subordinates. An employee should work according to the job description, which is decided by the immediate manager. By doing this, there will be no conflict between the management and the employees (Propper, Wilson, 2003). The objective of performance appraisal is to influence the employees job performance with a systematic process appraisal, what are the major impacts on the employees to get the certain level of motivation to improve the productivity of the organization as well as the job satisfaction (Natalie Ann 2005). In the past, the sole purpose of performance appraisal was just to calculate the financial position of the company, either it has made some progress in terms of monetary growth, what influence it has made on the department growth and what are the affects of performance on organizational objectives. But now, things have changed. Now researchers are seeing beyond the monetary terms, they are not discussing the financial aspect but they are measuring the job performance in terms of employees job satisfaction and his level of motivation, because ultimately the manpower of an organization is its labour force. If this labour force is getting what they want, then they will perform according to the job description they have with them within their departments. In the banking sector as credit crunch has been taken place all the investment and financing in Pakistan has stopped, it has very negative impact on the employees working in the banking industry, and the HR department of the banks are actually working on the moral and motivation of the employees. 2.2. History of Performance Appraisal: Performance appraisal has a brief history starting from earth 20th century where the need of performance appraisal was felt and some measures developed. This history shows that Taylor (1964) who is the revolutionary person in times and motion studies brought the real sense of performance appraisal and performance measurement. But in the modern human resource management it can be seen that the thread of performance measurement is linked with the Second World War. This tells the history that it is not more than sixty years ago. Yet the guru of human recourses says that the art and procedures of performance measurement and appraisal is very ancient art and people of old times had some tools to appraise their employees on the basis of activities and job they performed. On these historical felt notes it can be said that performance appraisal management is the worlds second oldest profession too. Here Dulewicz (1989) says that â€Å"It is a basic human tendency to make judgements about th ose one is working with, as well as about oneself. If the management has a concept that performance and its appraisal is inevitable then it will be wrong that performance of an employee cannot be judge in advance. In the absence of a structured appraisal system then it will ultimately affects the performance of employees, the productivity of the organization and moreover the reputation of the organization in the industry. It will de-motivate the employees, they will lose satisfaction from their jobs and loyalty with the organization will be most likely finished and labour turn over will increase. One serious offence can be seen in the absence of appraisal system that organization can go unlawful, harassing the employee and unfair judgement on their performance. Consequently, it helps the management and employees to go lawful, fair and accurate with the performance over the period of time (Murphy, 1989). 2.3. Benefits of Performance Appraisal: Where performance appraisal allows the employees to get the monetary and non monetary rewards from the management, here it also give the most significant benefit for employees that it gives the chance to get reasonable time for one to one discussion on the performance over the period of time. This discussion between employee and supervisor allows discussing the main issues that are hurdle in the performance and work concerns addressed. It can observe from all over the world organizations, the feedback of performance appraisal says that it creates a strong bond between subordinate and supervisor only if the appraisal is conducted properly and fairly. This process also gives the opportunity to employees to review their performances and discuss the issues and difficulties they are facing in the work and also it gives the path to gain the aims and objectives in the future time. This interaction of subordinates and supervisors give the opportunity to help the future goals. Therefore it en hances the productivity. So, this process gives the best time to employees to have chat with the supervisors without any hindrance and instruction (Orpen, 1997). The importance of this process should not be underestimated as this is the integral part of performance appraisal system. Moreover this process allows the supervisors and employees to discuss the future targets and, training and rotation need orientation and development, if needed. In this discussion, the supervisors and the subordinates discuss the various problems about the present as well as the absent working skills, career development and what is to be done in the future (DYCK, 1997). Here, supervisor highlights the key skills of the subordinate and makes or arranges for the future career inspirations. This discussion can be useful to measure the productivity of the organization, for the recruitment and orientation process. For example, the feedback can indentify how employees are performing those who hired in the past two years and so. Appraisal data can also tell how well the recruiting strategies are working, what developmental process are good enough and what the effectiveness of employees is. Performance appraisal process could be a data sheet highlighting the overall performance of all employees; telling has productivity improved, remains same or fall. Evaluation is the ongoing process and its run throughout the year but some clash can be noted in the evaluations and developmental process but in a nutshell its a process of evaluating, analysing and giving feedback of that process (THOMPSON DALTON, 1970). 2.4. Basic purpose of Performance Appraisal: Performance appraisal systems have the two main elements in it; one is evolution of the performance and the feedback of the evaluated performance. The main objective of performance evaluation is to define the gaps in the actual job and job performed. This gap creates when the employee is not working on the standard level and doesnt meet the expectation of the organization (ANTHONY, 1986). The main objective of feedback is to inform the employee about his performance and the quality work he is producing but this feedback doesnt flow in a one direction and the supervisor of the appraiser also gets the feedback from the employee to resolve the job issues, if have. To get the real sense of performance appraisal system is to look at the whole process on different angles so that it can create a meaningful difference in the organization. These different angles could be: from employees point of view and organizations point of view (ANTHONY, 1986). From employees point of view it can be unfold as: What does the organization want me to do? What are my loopholes? And what I have done remarkably well? What help will be given by the organization for my own improvements? What is the reward of my good performance? In the organizations point of view, it is mandatory to have an accountability and justice within organization so that all the employees get a fair compensation out of their performance and also to establish the repute of the organization. The research shows that organization fails when non-alignment of responsibility and accountability occurs. These failures occur when the employees are given tasks but there is no check on the responsibilities and duties and how they are performing their jobs. Sometimes it happens when the employees are working in shape of group and teams so they pass on the work to each other but ultimately no one held accountable of any task so the rule of accountability fails (TOWNLEY, 1997). Performance appraisal system has always an integral part of HRM and this research will highlight the main issues within the systems and the rating of employees. Rating the performance appraisal and giving the feedback is not an easy task for the HR department, as the criteria of apprising is a complex job. There are certain strategies underlying to make the traditional methods accurate than it had been in the past and therefore the likelihood of correct and affective appraisal will be increased (TOWNLEY, 1997). These strategies can be considered as a practical training to the HR officials. New learning techniques and methods should be true n fair for all set of employees, transparent and should be computerized so there are no chances on intermingled results which will remove the chances of favouritism. The main tactics and objective of the performance appraisal is that it should be conducted for the motivation of the employees with no negative aspect associated with it, as it will de crease the morale of the employees. There should be some reward or bonus announced so that this will be stimulation for other employees and they will try to excel their performance too. Proper communication and feedback session should be introduced so that the employees come to know their loopholes (Natalie Ann 2005). 2.5. Objective of Performance Appraisal: Followings are the main objectives of performance appraisal. To review the performance of employees over the period of time. This review of performance, evaluator judges the actual performance with the targeted performance standards and benchmarks. It also helps the management to control the organization targets depending upon the performance of employees. It also creates healthy environment between employees and supervisors. It indentifies the strengths and weaknesses of employees and also suggests the various improvement plans by the management after performance appraisal process. This process also allows the employees to get the proper training and orientation of skills where they are lacking. To communicate the feedback with the employees. Give all information regarding the tasks and job responsibilities and also clarifies all the tasks which are required from the employees. One of the objectives of performance appraisal is to judge the HR function within the organization for smooth running of business. It also tries to removes the complaints of employees about the function of organization, if have any. 2.6. Performance Appraisal Employee Motivation and loyalty: In the growing age of business and markets, human resource is the big asset of the organization; if the organization is not keeping well with its labour work force then it might get into trouble. As the employees are the main features of the progress of the organization. In order to have productivity, employee should be motivated and should be satisfied with their job and have loyalty with the organization (EPstein,1992). HR professionals are making it possible to motivate the employees with the performance appraisal systems by giving them fair appraisals as per their performance over a period of time. It has been noticed that there is a strong relationship between performance appraisal and motivation, job satisfaction and loyalty (bonnie, 2002). Keeping aside the main objectives of performance appraisal, it can be use as a mechanism to create a completion between employees to get the job done with all the linked targets and benchmarks (Robert, 1984). It is also mandatory that employees gets the accurate performance appraisal results to get motivate, if the feedback of appraisal is according to their performance over the period of time that will be a great source of motivation to them. Inaccurate performance can create dissatisfaction from job and ultimately can affect the loyalty with organization. One employee always expects that evaluator recognise his efforts and achievement in the professional life and also support him to overcome on his failure and allows the opportunity to make improvements in his performance in future (bonnie, 2002). If the performance appraisal has some shortcoming in it and is actually creating some discrepancy in the process, then it will affect the motivational level of the employees and ultimately it will affect their efforts and the risk taking ideas for the betterment of the organization. Also they will lose interest in the affairs of the organization (Robert Kim, 2007). Plus this de-motivation leads the employees to the lack of loyalty and they will look other options of good job and hikes in the rewards (bonnie, 2002). Accurate performance appraisal is always preferable but if there is any inaccuracy then employees always prefers to have accurate performance appraisal with no hikes in rewards but not an inaccurate system that never encourages or recognises their efforts. Employees who tend to receive accurate performance appraisal over the period of time and also have all the rewards associated with that appraisal is most motivated employee among all of them and similarly he tends to be more satisfied with job and more loyal to the organization. Therefore, the process should be fair as this is the ultimate system to motivate, satisfied with job and creates the loyalty (Storey Sisson, 1993). 2.7. Different performance appraisal systems: There are different systems and methods for measuring performance and appraising the employees. These methods and systems are categorised as the traditional methods and the modern methods. 2.7.1. Traditional Methods: In the traditional methods there are various systems to measure the performance employees. In the traditional method of measurement Behaviourally Anchored Rating Scale is widely used by many organizations across the globe. In this system it focuses on specific behaviours, either affective or ineffective performance is given by the employee. It involves critical incident technique (CIT) and different combinations of rating scale. However, in Graphic Rating Scale supervisor or evaluator simples checks the different blocks in the appraisal form to measure the performance. Though this a old technique to appraise the employees but broadly used method. Unlike scaling system, in Essay Evaluation Method asks the managers, supervisor and evaluators to write an essay or a descriptive narration about the strength and weakness of the employees and also the overall behaviour towards the job. This is a qualitative measure to appraise the employees. Another ranking system is Performance ranking Met hod in which evaluator or supervisor rank the performance of employee from best to worst. This method differs from other methods as it compares the employee to employee but not with the standards and benchmarks for performance measurement. In Critical Incident Method (CIT), evaluators appraise the performance depending upon the critical incident and the positives and negatives behaviours occur in the period of time to measure the performance (Dessler, 2000). Like other ranking and scaling methods in Weighted Checklist Method evaluator makes a checklist of all the job responsibilities and all the narrative statements about the effective and ineffective attitude or behaviour of job. As weighted method weights the narrative statements, in Paired Comparison Analysis, it weights the relative importance of the different options available and listed. Every option is compared with all the option listed (Mondy, 2008). After comparison of all option, the one with most weight is preferred opti on for the performance measurement. In the traditional methods qualitative methods and systems have more frequency of usage, here another method of Behavioural Observation Scale evaluates the performance with negatives and positives happens on workplace and also the critical incidence the employee has performed. In the tradition method there is a quantitative method called Forced Distribution or Forced Ranking, unlike other method it involves the percentages. In the top category it ranked from 10 to 20 percent, middle category ranges from 70 to 80 percent and it ranked employees with worst performance 10 percent in the bottom line (Mondy, 2008). 2.7.2. Modern Methods: There are different methods of performance measurement in the modern times, 360 Feedback System and Management By Objectives (MBO). 2.7.2.1. 360 degree feedback: 360 Feedback is a systematic technique which also known as the multi-rater feedback system. In this method evaluator or the appraiser takes feedback from all the people who are inter-linked with the person to be appraised. The 360 Feedback can be defined as: â€Å"The systematic collection and feedback of performance data on an individual or group derived from a number of the shareholders on their performance.† (Ward , 1997) This method of performance appraisal is detailed and comprehensive where evaluator asks from all sources about the performance of the employee. In this method all the sources are involved as: customers, suppliers/ vendors, team member and colleagues, superiors, juniors, subordinates and all the oth

The Controversy at No Gun Ri :: Korean War No Gun Ri Essays

The sensitive subject of whether the 7th Calvary killed innocent men, women, and children at No Gun Ri arose years after the end of the Korean War. Some sources argue that the killings were unprovoked, while others claim that the Communist enemy was mixed within the refugee lines. One source claims the killings numbered over 350 innocent people and others claim it was a mere 35. Although there is a major discrepancy in the number of civilians killed, the fact that innocent men, women, and children were murdered does not disappear. Therefore, whether the casualties were 35 or 350, the United States army engaged in a massacre of innocent Korean refugees. Therefore, the killings at No Gun Ri can not be denied, whether they casualty count is high or low. Some people can not fathom how the United States military could engage in such an action. However â€Å"Experts cite an absence of discipline and experience among the Americans, who had been badly shocked by the North Korean assault,† (Thompson, par. 7) as an explanation of why this could happen. This is not an uncommon theme when speaking of the soldier of the Korean War. Rudy Tomedi cites several examples of people who were never in the infantry being forced to become an infantryman. He uses the example of Bob Roy who states â€Å"Nine months before I’d been in the Military Police. M Company was originally an MP unit. Then one day they came around and said, ‘All right, you’re all in the infantry’† (Tomedi, 3). If this type of assignment was not uncommon during the Korean War, it is highly possible that those at No Gun Ri were just as unprepared to fight as Bob Roy was. If they were unprepared it is also quite possible that the soldiers panicked. General Ridgeway, who rose to be in command of the entire UN forces, claims that the United States’ forces were outnumbered, with low morale, and spread extremely thin. He claims â€Å"Every command post I visited game me the same sense of lost confidence and lack of spirit†¦It was not their doing that had brought them far understrength to this unfortunate country with major shortages in weaponry and insufficient clothing†¦Ã¢â‚¬  (Ridgeway, 87). With a military force in such bad shape the possibilities of it acting irrationally is very high.