Ijbmss NG Vol1 No1 LIST of PAPERS Whole

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International Journal of Business, Management and Social Sciences Vol. 1, No. 1, 2010, pp. i
INTERNATIONAL JOURNAL OF BUSINESS, MANAGEMENT AND SOCIAL SCIENCES www.ijbmss-ng.com 2010 MultiCraft Limited. All rights reserved
List of papers
Serial No. 1 2 Title of paper Authors Page No. 1-8 9-20 Applying data mining and fuzzy technology on learning material recommendation mechanism R.M. Chao, Shaio Yan Huang, Jia-Nan Chang Consumer personality in railway e-ticketing: conceptualization and empirical testing in Indian context Sangeeta Sahney, Koustab Ghosh and Archana Shrivastava Hexad structural diagnosis of organizational sociotechnical system as an antecedent to managerial retention: a meta-analytical approach K. Ghosh, S. Sahney Human resource development in Arab organisations: The case of Jordanian organisations I. I. Altarawneh Proposal of a methodology for the cooperation of systemic methods M.N. Lakhoua A SWOT analysis of small and medium scale enterprises implementing total quality management S. D. Kalpande, R. C. Gupta, M.D. Dandekar Critical success factors for successful enterprise resource planning implementation at Indian SMEs L. Ganesh, Arpita Mehta Supply chain management: theory and its future perspectives Md. Mamun Habib Why information technology (IT) systems led organisational change does not work M.P.J. Pollard, H. Soriano-Meier, P.L. Forrester, J.A. Garza-Reyes, L. Rocha-Lona Motivation, conceptualization, and the establishment of a new scientific venture: entrepreneurship and the environmental professional William P. Racine The relationship between total quality management and quality performance in the service industry: a theoretical model Faisal Talib, Zillur Rahman, M.N. Qureshi
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International Journal of Business, Management and Social Sciences Vol. 1, No. 1, 2010, pp. 1-8
Applying data mining and fuzzy technology on learning material recommendation mechanism
R.M. Chao1, Shaio Yan Huang2*, Jia-Nan Chang3
2 1 Graduate Institution of Information and Social Science, National United University, Miaoli, Taiwan Department of Accounting and Information Technology, National Chung Cheng University, 168, University Road, Min-Hsiung Chia-Yi, Taiwan 3 Department of Information Management, Da-Yeh University, Datsuen, Taiwan * Corresponding authors e-mail:actsyh@gmail.com
Abstract The rapid growth of e-Learning has caused learning object overload where the teacher is no longer able to effectively choose the learning object he/she is exposed to. To solve the problem above, we introduce a recommendation mechanism by which we can provide the teacher recommendation effectiveness when applied to Learning Content Management System (LCMS). The suggested procedure is based on association rule mining, associative classification and sequential pattern mining. Additionally, with the popularization of the concept of learning content management systems, it not only propels the whole development of knowledge learning, but also directs the LCMS of Basic Learning Agent Service of becoming the mainstream in the present elearning markets. This research also institute constructed a system called, Knowledge-based Broker Service Centre (KBSC). It allows the students to submit specific questions online in the form of their natural language. By using Chinese learning materialcutting, key words weighted value calculations, and professional categorizations, it can automatically analyze the nature of the students problem and search for the relevant information in the database to list the most suitable names of specialists as the assigned coordinator for the students. Keywords: Learning material, data mining, knowledge-based agent/broker, natural language, fuzzy sets theory 1. Introduction Data mining is a step of the process for knowledge discovery in databases (Gnardellis and Boutsinas, 2001). As implied in the name, this looks for knowledge from the database, not only database and knowledge base, but also include the relational application in artificial intelligence, machine learning, statistics, etc. Mining out meaningful information from the huge database through the knowledge mining will help the policy-maker to make the most advantageous decision-making. The data mining technology may not only be used to help understanding learner's study, course choice patterns, and curriculum timetabling assistance, also to be used to test new and emerging technologies for an ideal environment of a large number electronic students in virtual institution and an expansive curriculum delivery systems. In order to reach the greatest benefit, it is even more important to display (Berry and Linoff, 1997). This will be a great benefit to the activity of e-learning and has harnessed data mining technologies to organize learning communities and provide learning content recommendation based on student profiles (Shen, Wang & Shen, 2009; Shen & Shen, 2005). Many researchers regard it as Knowledge Discovery in Database (KDD). Data mining has many successful cases which exist in literatures and business applications; for example, biotechnology, marketing, new product development and finance. However, it has scarce applications to education than other issues (Merceron and Yacef, 2005). Literatures about e-Learning focus more on standardization than on compilation. But Learning Content Management System (LCMS) still stores a lot of data of assets which can be accessed (ex. learner profile, learning goals, learning events, learner emotions, learning knowledge-based objects) (Shen, et al., 2009). In education context, learning materials are designed based on pre-determined expectations and learners are evaluated to what extent they master these expectations (Askar & Altun, 2009). If we can use those data well, we can give some recommends properly when teachers compile courseware.
Chao et al. / International Journal of Business, Management and Social Sciences, Vol. 1, No. 1, 2010, pp. 1-8
Courseware is just like film script in this paper. Not only can good courseware transmit knowledge clearly, but those can help students to understand knowledge well. It is a key issue that how LCMS can help teachers compile nice courseware well. We observe that teachers still have to pick and choose learning objects (materials) (we call assets below) now during compiling. It is not only time-consuming but also burdensome. In that case, teachers maybe resist e-Learning unconsciously. A number of studies emphasized the need to capture learners interaction patterns in order to personalize their learning process as they study through learning objects (Askar & Altun, 2009). In this study, the recommendation mechanism operates data mining technology from two aspects, and provides teachers some recommends they want. Recommendation mechanism operates association rule mining to discover association rules within transaction records. Next, a classifier is developed with associative classification. Assets will classify according to Class-Association Rules. Teachers can compile courseware and find other assets which rely on recommendations. Recommendation mechanism operates sequential pattern mining to discover sequential patterns from transaction records. According to those results, teachers can save more spirit from collecting and selecting assets and place more professional knowledge in developing courseware. In contemporary education, emphasis is on meaningful learning, knowledge construction and self-directed learning (Kicken, et al., 2008; Loyens, et al., 2008; Brand-Gruwel, et al., 2009). To stimulate learners to construct knowledge in a meaningful way, students receive learning tasks and assignments that require them to identify information needs, locate information sources, extract and organize information from each source, and synthesize information from a variety of sources. This research is based on the LCMS of matching the students problems vs. teachers profession specialties. By using fuzzy sets theories, automatically file categorized theories and techniques, it has built up a service center system (Zadeh, 1965). To make the LCMS enables the students to submit questions online in the form of natural language and categorize and analyze automatically in response to the questions and problems. When each matching procedure was completed, the questionnaire was given to examine the correctness of the search as the data for the following adjustment of the system. 2. Methodology This research is based on a LCMS of a regional education center. They provide original data of digital courses between January 1, 2006 and March 10, 2007. The framework of this research is shown in Figure 1.
Material repository
Courseware repository
Data preprocessing
Association Rule Mining
Sequential pattern mining
Associative Classification
Rule repository
Classifier
Pattern repository
Figure 1. Framework
2.1 Data pre-processing Based on Han and Kamper (2000) proposed that the original data has to be preprocessed before mining. The data preprocessing consists of the four steps below: Data cleaning: First, we checked do have any asset lost essential fields. Then, we make up the sum required by manpower. As regards to data noises and reduplicate records, we designed a method to save it, or delete it. Data integration: In this case, some assets obtained from cutting ready-made digital contents. But those digital contents had no records in the LCMS. So, we gathered those data and then redesigned it and wrote in asset
repository. Finally, in order to speed up the process of data mining, we integrated interested date like course name, discipline from asset repository and courseware repository into a new repository mining pool. Data transformation: Original data may come from tow or more database and store by different formats. To mine those data quickly, we must transform those into single format. In this study, our original data had been defined well; hence, we do not transform any data. Data reduction: This step is decreasing the quantity of mining data. Its method have data visitation, data encoding, data reducing, and so on. Our original data are very simply; hence, we do nothing during this step, too.
2.2 Association rule mining When transforming original data into mining data, we can operate association rule mining technology to mine association rule from mining pool. Those results will be stored in rule repository, and recommendation mechanism will recommend according to those rules. Parameter: There is no standard criterion about how to determine the optimal value of the minimum support. Generally speaking, determination of minimum support regarding real situations. So, we performed an experiment where we varied minimum support from 0.1 to 0.9 in increments of 0.05 and discussed those results with managers of education center. From the results, we found that minimum support is 25%. We obtained complete and clear rules. When it is 50%, those rules were best in terms of comprehensibility and quantity. When we raised it to 65%, those rules decreased obviously, yet we trusted those more than others. Therefore, we decided to provide there minimum supports 25%, 50% and 65% -- for teachers. They can select one from choice list according to real situation to gain different recommendations. System presentation: Asset research function includes both general research and recommendation. General search: Teachers search assets by fields, grades and retrieves (school, author, courseware and all does not want) and keywords. Recommendation: Teachers write down an asset number and select one of minimum supports, system will recommend related assets from rule repository.
2.3 Associative classification All assets had been classified with disciplines in asset repository. There are still all sorts of multimedia consisting of texts, pictures, voices and videos. If teachers want to exchange some similar assets, they must find those one by one. The purpose of classification is to find relations between multimedia and discipline, and to help teachers to find assets easily in a small range. In this study, Classification based on Multiple Class-Association Rules (CMAR) is offered (Li, et al., 2002), and FPL (Frequent Pattern Lists) is applied to substitute for FP-tree to mine Class-Association Rules (CARs). Because FPL is from FP-tree and is not modified core of classifier, its performance is not considered in this study. Parameters: Training data was between January 1, 2006 and November 30, 2006 and test data was between December 1, 2006 and March 10, 2007. The ratio of training data to test data was about 70% and 30%. The support threshold and confidence threshold of CARs mining are 2% and 50% through experiments. The database coverage threshold and confidence difference threshold which are parameters of pruning rule are four and 25%. System presentation: A teacher will gain other similarly assets in a new window when they click the blue triangle near an asset name. When clicking one of assets, they can peruse details about it. For example, a teacher clicked the triangle of Yses aquatic botanical garden, and system lists other resembling assets like Sha Shi aquatic botanical garden, Plants in campus on the new window.
2.4 Sequential pattern mining It is linear recommendation to association rule mining and associative classification, but those are not enough. Teachers sometime need a series of scenarios. For example, a teacher needs a frogs description, sound and video and how to arrange for these assets of a frogs life. To solve the problem above, sequential pattern mining is a useful method. We apply FPL to be sequential pattern mining algorithm. Cheung and Fu (2004), Seno and Karypis (2005) and Cong and Liu (2002) recognize that FPtree can find frequent pattern mining via tree structure. FPL was improved from FP-tree; therefore, it also can be done. Analysis of original data: To find sequential patters from every discipline. We first analyzed compiling behaviors of teachers and found the time period of compiling was concentrated at the beginning of the semesters, especially in the period between February and Mar and the period between August and September. To give them new information, we set a semester as a time-serious consists of the period between February and July and the period between September and January. Therefore, recommendation mechanism operates FPL on the basis of time-serious and disciplines. Those results will be stored in pattern repository from mining. Parameter: According to experiment, we obtained clear and complete rules when minimum support is 2%. When we raised it more than 6%, those results were useless because itemsets of every rule were less then four items.
System presentation: Teachers can select discipline (see Table 1) or write down a asset number to find sequential patters in that discipline. Next, asset recommendation system will list a series of sequential patterns according to input value. Teachers can peruse details by clicking one of the assets. For example, a teacher selected Science and life technology as input value, and the system gave him four sequential patterns by ascending order.
2.5 Fuzzy sets theory In the ordinary set theory, the relationship between an element x and a set, A can only be x A and x A. However in reality, there are a large amount of ambiguous and paradoxical situations. In order to indicate this concept, Zadeh (1965) vivified the absolute membership function in the ordinary set theory and allow the character level of the elements to present from the value 0~1. It does not only confine within the binary opposition theory of common mathematical set (either 1 or 0) but it can use the membership function to show the reflective relationship between the elements and the character level. Depiction of Questions in Fuzzy Set: With regard to the student question Q, the question key learning material set and the fuzzy set theory was used to depict the question Q in keyword Fuzzy Sets: Q = {(K1 , W1) , (K2 , W2) , (K3 , W3) (Kn , Wn)}
or Q = {(Kj , Wj) | Kj K}, j =1,,n
(1)
(2)
Kj: J: N:
The j key learning material in student question Q The weighted value of the j key learning material in student question Q The key learning material unit of the student question Q as to the characters description of each professional category, was used the same way to generate the key learning material fuzzy set Ci: Ci = {(K1, Wi1) , (K2, Wi2) , (K3 , Wi3) (Kn , Win)} or Ci = {(Kj , Wij) | Kj K} , j =1,,n (4) (3)
Kj: Wij: N:
The j key learning material in professional category i. The weighted value of j key learning material in professional category i. The weighted value has already been calculated and pre-stored by learning material collecting model in the key learning material database. The key learning material unit Ci of in the professional category i.
2.6 Automatic classification The main function of the Automatic Classification is using computer calculations to find the characters of the documents and categorized them (Richardo and Berthier, 1999). The Automatic Classification will first proceed words arrangement for the sample information and transform the information into learning material set data and find the characteristic key learning material set to represent the document. When testing or categorizing new documents, it is also based on the same procedure which is to find of characteristic key learning material sets, weight and calculate them with the ones found in the database. The result of the similarity will be labeled and categorized as the classification of the new document based on the highest value, then the entire automatic classification of the document is done. There are learning material classical modes for automatic classification: Boolean Model, Vector Space Model and Probabilistic Model. 2.7 System structure The system structure of the knowledge mediating service is shown in Fig 1. Its main models include: learning material database collecting model, questions sorting model, specialist matching model and accuracy adjustment model. Each function as described below: Learning material database collecting model: This models main function is to collect all the characteristic key learning material sets and the weighted values from each professional category in selected learning sample to be used for the question sorting model and the accuracy adjustment model. Question sorting model: This model could calculate by ways of proper auto-learning material cutting and calculation of similarity from customers natural language questions to specify the relevant professional category in respond to the questions.
Specialists matching model: The results of the question sorting model will be searched and compared in the specialist database to be listed as the knowledge brokers. Accuracy adjustment model: The accurate examination of the specialist group to the question sorting is in accordance with further adjustments.
K now ledge-based Broker Service C enter
key phrase collecting m odel
Q uestion
question sorting m odel
key phrase database
Custom er specialist m atching m odel

Q uestionnaire
specialist resources database

C orrect degree replying
know ledge broker
Specialist
accuracy adjustm ent m odel
Figure 1. System structure diagram
3. Results This research used questionnaire investigation to prove this recommendation performance. We randomly chose thirty-seven teachers who used our system as sample. The condition of questionnaires implementation and retrieve are Table 1 as follows. Table 1. The condition of questionnaires implementation and retrieve Total 37 Invalid sample 3 Valid sample 34 Valid sample rate 92% From Table 1, there are three invalid samples and thirty-three valid samples. The valid sample rate is ninety-two percentage. We referred to literature and model of recommendation system to design this questionnaire. It consists of recommendation of assets, substitution, and recommendation of patterns. We collected all of questionnaire and set four measurements consist of Operation interface, Performance, Recommendation and Degree of confidence. All these questions are descriptive and were applied by Likert 5 point scale. It will be counted in addition: 5 points for very agree, 4 points for agree, 3 points for no comment, 2 points for disagree and 1 point for very disagree. The results are shown in Table 2. Table 2: The results of questionnaire investigation Mean Standard Deviation Operation interface 4.08 0.82 Performance 3.42 0.95 Recommendation 4.17 0.72 Degree of confidence 3.67 1.04 From the result of questionnaire investigation, The Operation interface, Performance, Recommendation and Degree of confidence of system were generally accepted by teachers. Even, most of teachers were satisfied with the Recommendation. On the other hand, the testing objects of this experiment were a central management research development center and the group specialists: students 48 people, specialists 16 people. The beginning date was January 1, 2006 and the termination date was March 10, 2007. The list of professional category includes 19 management fields. The system calculated the similarities between customers question and the professional category and come up with the most possible result. The result showed that there are a total numbers of 41 application data, and all of the professional categories determine that they are all within one or two categories. It showed that the system was gathering focus instead of dispersing. The following figures (as Figure 2) show the matching results:
Figure 2. Matching results 4 Conclusion We aim at the problem of acquisition of assets which is not easy and time-consuming. To solve the problem, a recommendation mechanism is developed consisting of association rule mining, associative classification, and sequential pattern mining. The results indicated that our recommendation mechanism was beneficial to teachers. It can provide teachers with three recommendations including the relationship of assets, searching in identical class level, and sequential patterns about scenario. Those recommendations can help teachers to compile courseware. Most of teachers are satisfied with the recommendation mechanism and trust its recommendations. Questionnaires revealed that this mechanism can assist teachers in searching assets. The result of this study can refer for another issue about e-learning. It is a key subject about how to develop a meaningful courseware in elearning. Courseware itself has possibilities which can provide learners to link their knowledge framework with meaningfulness and realize other meanings and methods of use through Concept mapping. Therefore, it is an interested issue on how to develop courseware with concept mapping and how to descript proposition, concept and linking and labeling within a SCO (Sharable Content Object). A study of whether meaningful learning can support recommendation mechanism to enhance its meaning. By ways of the discussion and summation of the knowledge mediating theory and methods, this system is capable of dealing with application question in the natural language form and auto-gauging its professional category and recommend lists of group specialists. By using the key phrase fuzzy set calculation on the similarity between the question and professional category, it could compare and match with the specialties and come up with a list of group specialists that can be recommended to the broker center as the references for the case counseling. However, there are still some parts that need to be further improved. The professional key phrase database mostly relies on the manpower to maintain its function and it has not yet occupied with the self studying function. In the future, it could be combining with analogical-nerve internet in order to further elevate its goal of self-learning function to semi-construction or automatic-construction. If the personal writings, other relevant counseling document, specialty fuzzy set of the specialists could be added in as part of the established learning samples, it could cross-comparing the three fuzzy sets: customer questions, professional categories, professional specialties. It will help to improve the matching standard of the system. As to deal with a natural language, the proper inference ability and Chinese syntactic structure analysis were not mentioned in the present system. Under many circumstances, the combination of the phrases may extend to other meanings and the system can not cope with it. Right now these conditions are still lacking of solutions and need to be continuously researched on.
A final observation: Active participation in contemporary society is becoming ever more digitized. Access to information, guidance and support concerning personal health; active citizenship and participation in national and local governance; control and safety surrounding personal finances and financial management; leisure and workeach is increasingly dependent upon access to digitised sources of information and communication (Wood, 2009). In the prosperous digitized era of the science and information technology, the social change faces the development of the information technology since the last decades, and the single view is obviously and absolutely not enough to contain and explain it (Chao, 2008). All such life functions seem destined to become even more reliant upon digital technologies, and future changes in these technologies and in the uses we come to make of them will demand vigilance and flexibility from tomorrows citizens, who will need to keep themselves up to date and abreast of change if they are to maintain pace and place. Against this general scenario, achieving a solid understanding of why, when and how people
are able to seek help and advice, and having the knowledge we need in order to provide help that is accessible and functional take on a major significance (Wood, 2009). We have to start from description and analysis of the people and society (know their source), then utilizing the management and communication rules to involve inside (lead their way), and finally holding the application and service of information and technology (serve their practice) to conduct the practices and effectiveness of information technology within behavioral science. In the modern society, based on the discipline of communication and utilizing of information technology, which is hooked together and inseparable, the people and organization produce a phenomenon of dispersed and clustering (Chao, 2008). Such observations, if accepted, help to underwrite and give credence to contemporary demands on schools to help to engender more independent and self-regulating learners; future citizens willing and able to meet the demands of lifelong learning (Rouet & Puustinen, 2009; Wood, 2009). References Askar, P., & Altun, A. 2009. CogSkillnet: An ontology-based representation of cognitive skills. Educational Technology & Society, Vol. 12, No. 2, pp. 240253. Berry, M. J. A., Linoff, G, 1997. Data mining techniques: for marketing, sales, and customer support, NY: Wiley. Brand-Gruwel, S., Wopereis I., & Walraven A. 2009. A descriptive model of information problem solving while using internet. Computers & Education, Vol. 53, pp. 12071217. Chao R. M. 2008. Between behaviour science and human-computer interactionInformation and society (First Edition), (Academic Edition), Hwa Li Professional Publishing Co., Ltd., Taipei. ISBN:978-957-784-257-2. Cheung, Y. L., Fu, A. W. C., 2004. Mining frequent itemsets without support threshold: With and without item constraints. Knowledge and Data Engineering, IEEE Transactions on, Vol. 16, No. 9, pp. 1052 - 1069. Cong, G., Liu, B., 2002. Speed-up iterative frequent itemset mining with constraint changes. Proceedings of the 2002 IEEE International Conference on Data Mining, pp. 107-114. Gnardellis, T., Boutsinas, B., 2001. On experimenting with data mining in education ( ). 2 , pp. 275-283. Han, J., Kamber, M., 2000. Data mining: Concepts and techniques, San Fransisco: Morgan Kaufmann. Kicken, W., Brand-Gruwel, S., & Van Merrienboer, J. J. G. 2008. Scaffolding advice on task selection: A safe path toward selfdirected learning in on-demand education. Journal of Vocational Education and Training, Vol. 60, No. 3, pp. 223239. Li, W., Han, J., Pei, J., 2002. CMAR: Accurate and efficient classification based on multiple class-association rules. Proceedings of the 2002 IEEE International Conference on Data Mining, pp. 369-376. Loyens, S. M. M., Magda, J., & Rikers, R. M. J. P. 2008. Self-directed learning in problem based learning and its relationships with self-regulated learning. Educational Psychologist Review, Vol. 20, pp. 411427. Merceron, A., Yacef, K., 2005. Educational data mining: a case study. The 12th International Conference on Artificial Intelligence in Education. Richardo, B. Y., Berthier, R. N., 1999. Modern information retrieval. Addision Wesley Longman Limited. Rouet, J. F., & Puustinen M. 2009. Introduction to Learning with ICT: New perspectives on help seeking and information searching, Computers & Education, Vol. 53, No. 4, pp. 1011-1013. Seno, M., Karypis, G. 2005. Finding frequent patterns using length decreasing support constraints. Data Mining and Knowledge Discovery, Vol. 10, No. 3, pp. 197-228. Shen, L. P., & Shen, R. M. 2005. Ontology-based intelligent learning content recommendation service. International Journal of Continuing Engineering Education and Life-Long Learning, Vol. 15, No. (3-6), pp. 308-317. Shen, L., Wang, M., & Shen, R. 2009. Affective e-Learning: using emotional data to improve learning in pervasive learning environment. Educational Technology & Society, Vol. 12, No. 2, pp. 176189. Wood, D. 2009. Comments on Learning with ICT: New perspectives on help seeking and information searching. Computers & Education, Vol. 53, pp. 10481051. Zadeh, L. A., 1965. Fuzzy sets. Information and Control, Vol. 8, pp. 338-353.
Biographical notes Dr. Ruey-Ming Chao is an Assistant Professor in the Graduate School of Information and Social Science at National United University (NUU), Taiwan R.O.C. He received his Ph.D. degree in Management Information Systems (MIS) at Nova Southeastern University, USA in 1999. His current research interests include the general area of Knowledge Intensive Business Services (KIBS), Knowledge Management, and Digital Learning System Development &Management. In particular, he is interested in digital learning, and the development model and strategy of knowledge reuse to the enterprises. Dr. Shaio Yan Huang is an Associate Professor of Accounting and Information Technology at the National Chung Cheng University, Taiwan. He is also a member of the International Affair and Education Board in Information Systems Audit and Control Association (ISACA), Taipei
Chapter. He published his research in International Journal of Accounting Auditing and Performance Evaluation, Journal of Applied Business Research, International Journal of Business System Research and Journal of Applied Management and Entrepreneurship. His main research interests are managerial accounting, accounting information system, computer auditing and financial accounting. Jia-Nan Chang is a graduate student in the department of Information Management at Da-Yeh University. Her research interests are Digital Learning and Knowledge Intensive Business Services.
Received August 2009 Accepted November 2009 Final acceptance in revised form November 2009
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Consumer personality in railway e-ticketing: conceptualization and empirical testing in Indian context
Sangeeta Sahney1*, Koustab Ghosh2 and Archana Shrivastava3
1
Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur, Kharagpur 721302, West Bengal, India 2 Management Education Centre (MEC), Heritage Institute of Technology, Kolkata 700107, West Bengal, India 3 NYSS Institute of Management and Research, Atrey Layout, Nagpur- 440022, Maharashtra, India * Corresponding authors e-mails: sangeetasahney@rediffmail.com, sahney@vgsom.iitkgp.ernet.in
Abstract This paper attempts at conceptualizing personality in the context of online buying as an academic construct, and then testing it empirically through the samples taken from Indian sampling frame. Critical consumer personality traits that influence the online buying decision of people are explored. The study establishes their causal impact, if any, through developing an integrated model. In the first phase, a pilot survey was conducted on a sample of 100 users of the online railway ticket reservation system that helped determine the validity and reliability of the survey instrument. The second phase of the study was conducted on a sample of 327 users of online railway reservation facilities, and multiple regressions analyses were applied to determine the causal impacts of critical consumer personality traits on online reservation of railway ticket by users the in Indian context. The analysis of demographics based on gender and age groups were also made to capture the cross comparisons of critical consumer personality attributes related to online reservation of long distance railway tickets in Indian context. The factor analysis had grouped the items into 4 constructs with a total of 14 items. For analytical purposes, descriptive statistics were used through measures of central tendency and dispersion. The item total correlations to each construct were found significant. All the critical online buyers personality traits were found to have a significant impact on the intention of buyers of booking / purchasing railway tickets online in India. The analyses of demographics established that all the critical consumer personality based attributes to online buying intention have no significant differences for gender, whereas for age groups some of the attributes were found significant and others were not. A major limitation of this research has been the sample size of 327 respondents. The generalization of the findings could be more strengthened by encapsulating more responses from the relevant user groups across demographics. The identification and empirical examination of the critical consumer personality parameters in online reservation of railway tickets in Indian context across demographics help to understand consumers expectation of convenience and satisfaction from the online reservation facilities of Indian railways. Keywords: Consumer personality, Online buying, Buying behavior, e ticketing, Indian context 1. Introduction The rapid growth of the Internet over the past two decades as a platform for buyer - seller interaction is indicative of the degree of growing acceptance of online buying transactions worldwide. Despite the slowing penetration of regular Internet users, the number of consumers using the Internet as a shopping medium is still growing (Forrester Research, December 2001). From the perspective of the seller, it is the attempt on the sellers part to attract and persuade the prospect to conduct the purchase decisionmaking process, and ensure satisfaction and loyalty. From the perspective of the buyer, online purchase behavior is the degree to which consumers access, browse, shop and transact and repeat the behavior. With a change in the consumers mindset of purchase made from a physical store to online buying, the industry has witnessed the ever-increasing volumes of online transactions. India, with its own diversified population base and huge untapped market potential has also witnessed and been a part of this global erevolution. The rapid usage rate within buyers to transact online has been due to advances in technology; consumer characteristics, both demographic as well as psychographic; and situational influences. The adoption of e-commerce by the potential online buyers
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rests with the issues like usefulness and user friendliness of the online buying system, delighting experience, computer proficiency, and exploratory mindset (Lederer et. al., 2000; Moon and Kim, 2001; Chen et al., 2002). Thus the acceptance of online buying as a viable alternative to the traditional face-to-face encounters between the buyer and seller has both the utilitarian and hedonic intentions. Hence, it calls for a comprehensive understanding of the determinants of consumer personality traits as they have got a direct effect on consumers intentions to actually adopt the online shopping system. Although the number of Internet users has been growing steadily in India, a framework is needed to develop an in-depth understanding of consumers personality toward Internet shopping and their intentions to shop online. This paper is an attempt to conceptualize the online buyers or consumers personality traits inducive to the online buying intention of long distance railway tickets in Indian context. Indian Railway as one of the worlds largest bureaucratic organizational set-up, is on its way to come out with the new initiatives and ventures to provide better quality service to new age customers. As part of this drive, they have introduced e-ticketing system based on B-to-C initiations on business front. As the profile of customer has also undergone a sea change, the railway authority should explore and understand the basic personality traits of individual customers that make them feel comfortable to go for online reservation of railway tickets. Accordingly, the railway online reservation website should be redesigned to be compatible with the online consumers / buyers expectations, and to serve the particular segment of customers in a better manner. In view of this, The present study has been conducted with the objective of exploring the consumers personality patterns that affect his / her online buying intention of railway tickets; with the ultimate objective of identifying those personality factors and the befitting design characteristics of online buying that can attract the existing as well as potential consumers more towards online purchasing of railway tickets. The objectives may be summarized as follows: (1) To establish the impact of extroversion / introversion of individual personality on online purchase intention of railway tickets (2) To establish the impact of risk taking orientation of individual personality on online purchase intention of railway tickets (3) To establish the impact of excitement and pleasure seeking aspect of individual personality on online purchase intention of railway tickets (4) To establish the impact of technology savvy personality of individuals on online purchase intention of railway tickets. 2. Personality factors in online buying The various dimensions of the personality traits of the online buyers have been captured by different studies conducted from time to time. In the context of online buying, the buyers some of the relevant personality traits were identified as expertise (Alba and Hutchinson, 1987; Ratchford et. al., 2001), self efficacy (Bandura, 1994; Marakas et al., 1998; Eastin and LaRose, 2000), and need for interaction (Dabholkar, 1996; Dabholkar and Bagozzi, 2002). In order to shop on the Internet, a considerable amount of computer operational skill and the basic knowledge of computer usage are required. Since learning by doing is an important component of acquiring such skills, those who have the most experience at shopping on the Internet are likely to be the most skilled (Ratchford et al., 2001). Hence, it can be safely concluded that those, who are more skilled at using and exploring internet as a shopping medium are more likely to purchase repeatedly through online transactions. Another personality characteristic that is closely related to expertise is self efficacy, which refers to individuals beliefs that they have the ability and the resources to successfully perform a specific task (Bandura, 1994). In the context of online buying, Marakas et al. (1998) defined computer self efficacy as an individuals judgement of efficacy across multiple computer application domains, whereas Internet self efficacy is a persons judgement of his or her ability to apply Internet skills for finding any information or conducting any action with the help of Internet. Hence, the online buyers are more likely to attempt and persist in online buying that they feel capable of performing (Eastin and LaRose, 2000). Need for Interaction has been explored as a significant aspect of buyers personality by various researches. Need for interaction is defined as the importance of human interactions to the consumer in service encounters (Dabholkar and Bagozzi, 2002). In online shopping, the human interaction with a service employee or salesperson is replaced by help buttons and search features. Therefore, consumers with a high need for interaction will avoid shopping on the Internet, whereas consumers with a low need for interaction would be more inclined towards online buying (Monsuwe et al., 2004). This Need for Interaction aspect of personality can be significantly related to the extroversion and introversion traits of individual personality. Allred et al. (2006) found that customers do not feel confident to participate in online transactions because of security fears and technological incompetence, and on the contrary frequent online shoppers are characterized by the less desire to socialize, minimize inconvenience, and maximize value. Ranaweera et al. (2008) found the buyers personality characteristics were having significant moderating effects on online purchase intentions. Repeated online purchases reduce the risk aversion of the buyers, while technology readiness and dispositional trust increase the likelihood of online purchase. Therefore, it becomes imperative that While techno savvy individuals feel more comfortable to explore online buying, the first time online buyers are more likely to repeat and continue to buy online as they become more confident and risk accustomed. Cunningham et al. (2005) empirically established that the risk factors related to the performance, physical, social, and financial risk are related to perceived risk at certain stages of the consumer buying process. Monsuwe et al. (2004) stated that intention to shop online is affected by ease of use, usefulness, and enjoyment that the buyers expect from the online buying process. Chiu et al. (2009) found that perceived ease of use, perceived usefulness, and enjoyment are significant positive predictors of customers'
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online purchase and repurchase intentions. Aldas-Manzano et al. (2009) examined that online buyers personality variables like affinity to the product, compatibility, and innovativeness have a direct and positive influence on the intention to engage in online shopping. Park and Kim (2003) stated that information quality, user interface quality, and security perceptions affect information satisfaction and relational benefit that, in turn, are significantly related to each consumers commitment and actual purchase behavior. Wen (2009) found that in the context of travel and tourism positive orientation of the buyers towards the externalities affect the online buying intention of tickets and availing the related tourism services. Kuhlmeier and Knight (2005) stated that a positive relationship between consumer usage and experience of the Internet and the likelihood of making online purchases, and further indicated that the perceived risk of buying online has a negative effect on consumers' purchase likelihood. Therefore, what comes out as a synthesis based on the above findings of review of literature is that the online buying intention of prospective consumers depends on a gamut of factors like risk aversion or inclination, exploratory mindset, need for socialization, compatibility with the usage of technology, expected or calculated benefits from the online transaction, proficiency and knowledge in online transactions, and drive for newness in the form of excitement and pleasure. Based on this cluster of previously researched and studied aspects of consumer personality in online buying, this present study identified the four constructs namely (1) extroversion and introversion, (2) risk taking, (3) excitement and pleasure seeking, and (4) technology savvy as the relevant factors worth exploring to analyze consumer Behavior for online purchase intention. The following conceptual model (See Figure 1) summarizes the relation of these four consumer personality factors to the online buying intention followed by the actual online buying transaction (See Figure 1)
Extroversion / Introversion
Risk - Taking Online Buying Intention Online Buying
Excitement and Pleasure Seeking
Technology Savvy
Figure 1. : Consumer Personality Factors for Online Buying 3. Empirical study 3.1 Methodology The study undertaken is descriptive, diagnostic, and causal in nature. It is aimed at identifying the critical personality parameters of users / buyers in online booking of railway tickets in India through using the registered railway website of Indian Railway Catering and Tourism Corporation (www.irctc.com). A pilot study was conducted on a total of 100 sample respondents. The statistical method used in these scales was principal component factor analysis. The sample size recommended for this statistical method is at least 50 responses. The guideline used was a factor loading of 0.5 or above (Hair et al. 1995). The recommended guidelines for principal component factor analysis are at least 50 responses, and a ratio of 5 responses for every variable in each scale being measured (Hair et al., 1995). This sample size met both the criteria. The following Table (see Table 1) illustrate the results of the pre test in detail. Reliability concerns the extent to which a measurement of a phenomenon provides stable and consistent result. In assessing measurement reliability, Fornell and Larcker (1981), stress the importance of the reliability of each measure (individual item), and the internal consistency or composite reliability of each construct (Cronbach, 1951). The reliability score and factorial loading of each item were found to be well above the acceptable criterion of 0.50 (see Table 1). The results of the pilot study established the reliability of a total of 14 items, which were grouped under 4 factors / components viz., Extrovert and Introvert Personality; Risk -
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Taking Personality; Excitement and Pleasure Seeking Personality; and Technology Savvy Personality. The reliability score and factorial loading of each item were found to be well above the acceptable criterion of 0.50. (See Table 1). Table 1. Analysis of Factorial Validity and Construct Reliability Constructs Measured Items Factor Loadings () Extroversion and Introversion of Personality (EIP) Composite Reliability () 0.6600
EIP1 0.783 EIP2 0.540 EIP3 0.535 EIP4 0.705 EIP5 0.530 Risk -Taking Personality (RTP) RTP1 0.595 0.6123 RTP2 0.538 Excitement and Pleasure Seeking EPSP1 0.778 0.8157 Personality (EPSP) EPSP2 0.692 EPSP3 0.640 EPSP4 0.611 Technology Savvy Personality TSP1 0.802 0.7242 (TSP) TSP2 0.600 TSP3 0.669 [Note: Acceptable factor loadings and reliabilities (guidelines used > 0.5 and reliability > 0.5 respectively.] The designed questionnaire for the final study comprised two parts; the first part comprised questions on basic demographic information about the user (age group, gender, income level, educational qualification, regional location, frequency of online ticket booking, etc.); the second part measured the users personality traits that are critical to induce them to reserve the railway tickets online in India. The study was thus aimed at identifying the consumers / users prominent personality traits as a necessary prerequisite to online buying of railway tickets and thereby established the causality between the individual users personality pattern and their online buying intention of railway tickets through official railway website in Indian context. 3.2 Research Hypotheses Based on the review of literature in Section 2 of this paper, the four constructs related to the personality traits of buyers engaged in online reservation of railway tickets were identified. The constructs were namely (1) extroversion and introversion, (2) risk taking, (3) excitement and pleasure seeking, and (4) technology savvy, and were consistent with the objectives of the study mentioned in the Section 1 of this paper. The following hypotheses were developed accordingly to empirically examine the impact of each of these consumer personality constructs on the online buying intention of long distance railway tickets in Indian context. A series of multiple regressions was conducted to test each of the hypotheses in the subsequent section of this study. Hypothesis 1: Hypothesis 2: Hypothesis 3: Hypothesis 4: Extroversion and introversion of individual personality significantly influence the users intention of online reservation of railway tickets in India. Individuals with high risk taking personality are more favourably disposed towards the online reservation of railway tickets in India. Individuals who seek more excitement and pleasure are more favourably disposed towards the online reservation of railway tickets in India. Technology savvy individuals are more favourably disposed towards the online reservation of railway tickets in India.
3.3 Data collection The final questionnaire that was developed to capture quantitative data was administered to a cross-section of respondents. The sample was heterogeneous consisting of a total number of 327 respondents and represented educated middle and upper class people, who had used the registered Indian railway website (IRCTC) to reserve their travel tickets online at various points of time. These 327 questionnaires were found to be complete and valid for analysis. 3.4 Analysis of data The responses were subjected to various empirical analyses through using 10.0 version of SPSS. The findings were finally presented with a set of conclusions and recommendations. The statistical analyses were descriptive as well as causal, and included multivariate statistical techniques for testing of the hypotheses to arrive at the research findings.
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The factor analysis had grouped the items into 4 personality traits with 14 items (See Table 1). For analytical purposes, descriptive statistics were used through measures of central tendency and dispersion (See Table 2). The users of railway website were asked to rate the parameter based statements on a scale of 1 to 5, based on their level of agreement or disagreement to each statement. The sum total produced a consolidated score. The means and standard deviations were calculated construct wise. The mean scores for various constructs ranged between 3.2200 and 3.4546, with Risk -Taking Personality traits having the least score and Technology Savvy Personality traits have the highest score. This clearly indicates that in India, people feel hesitant and concerned for sharing the private information with the railway website for online reservation of railway tickets. Whereas the growing usage of information technology among all the age groups in India poses as the major indicator of consumers / users increasing preference for online booking transaction of long distance railway tickets in Indian context (See Table 2). Table 2. Descriptive Statistics for Personality Factors on Online Buying Behavior Constructs No. of Mean Std. Items Deviation 1. Extroversion and Introversion of Personality (EIP) 5 3.2336 .7727 2. Risk -Taking Personality (RTP) 2 3.2200 1.11 3. Excitement and Pleasure Seeking Personality (EPSP) 4 3.4067 0.9995 4. Technology Savvy Personality (TSP) 3 3.4546 0.9395 N 327 327 327 327
Having calculated the descriptive statistics, the linear relationships were established among the various constructs using correlation analysis so as to measure the strength and direction of linear relationship between them. Each construct was correlated with its individual measuring items to establish the linear relation between them. Also, the various constructs were correlated with each other to establish the strength of association between them (See Tables 3 to 7). A series of multiple regressions was conducted to test the hypotheses in order to assess the causal relationships between the various personality traits of consumer / user groups and their impact on the online reservation of railway tickets in India. The procedure used for these analyses involved a study of the p value, which indicated whether or not the regression model explained a significant portion of the variance of the dependent variable and the independent variable. Table 3. Correlation Analysis of Personality Factors on Online Buying Behavior Risk -Taking Excitement and Technology Extroversion and Personality Pleasure Seeking Savvy Introversion of Personality (EIP) (RTP) Personality (EPSP) Personality (TSP) Extroversion and 1.00 Introversion of Personality (EIP) Risk Taking .491** 1.00 Personality (RTP) Excitement and .747** .412** 1.00 Pleasure Seeking Personality (EPSP) Technology Savvy .624** .485** .690** 1.00 Personality (TSP) ** Correlation is significant at 0.01 level (2 tailed) Constructs 3.5 Hypotheses Testing Hypothesis 1: Extroversion and introversion of individual personality significantly influence the users intention of online reservation of railway tickets in India.
Regression analysis was performed with the extroversion and introversion personality traits of individuals as the dependent variable, and lack of physical interaction with others; grown habit of buying railway tickets online; preference for privacy and confidentiality; persuading others to go for online booking; and the open mindedness to explore the online buying of railway tickets as independent variables. On entering the variables in a single block, it was found that 41.1% of the variance in personality traits based on extroversion and introversion is explained by all the other constructs (R2 = .411, F Value = 28.694, p < 0.01). All the five dimensions offered significant contributions with their respective t values and the associated level of significance (See Table 4).
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Sahney et al. / International Journal of Business, Management and Social Sciences, Vol. 1, No. 1, 2010, pp. 9-20 Table 4. Model Summary for Extroversion and Introversion Personality on Online Buying Behavior Model R R Square F Sig. 1 Items Measuring Extroversion and Introversion Personality (EIP) .452 .411 28.694 t .000 10.067 12.904 11.896 10.010 13.672 .000 Sig. 1.000 .000 .000 .000 .000 .000
Standardized Coefficients (Beta) .316 .323 .282 .308 .304
Constant I do not need any interaction with others while buying ticket online. (EIP1) I always prefer making a purchase a ticket from Internet to railway counter because I am habituated. (EIP2) My introvertness generally leads me to buy tickets online. (EIP3) I say positive things about buying online ticket to the other people. (EIP4) My open mindedness leads me to buy online ticket. (EIP5) a Predictors: (Constant), EIP1, EIP2, EIP3, EIP4, EIP5 b Dependent Variable: Extroversion and Introversion Personality (EIP)
The hypothesis failed to get rejected. The extrovert as well as introvert traits of individual personality significantly influence the minds of existing and potential users intending to reserve railway tickets online that makes them going for online transaction or reservation of long distance railway tickets. Hence, the relevant traits of extrovert and introvert personality have to be considered adequately in order to convert the existing consumers to or create new consumers for the online reservation of railway tickets. This would help the railway authority to successfully implement their e-strategy as part of customer development initiatives in India. Hypothesis 2: Individuals with high risk taking personality are more favourably disposed towards the online reservation of railway tickets in India.
Regression analysis was performed with the risk taking personality of the user as the dependent variable, and individual comfort to disclose private information; sharing credit / debit card number for e-payment option as independent variables. On entering the variables in a single block, it was found that 52% of the variance in personality based on online transaction security is explained by all the other constructs (R2 = .520, F Value = 85.050, p < 0.01). Both the dimensions offered significant contributions with their respective t values and the associated level of significance (See Table 5). Table 5. Model Summary for Risk Taking Personality on Online Buying Behavior Model R R Square F 1 Items Measuring Risk Taking Personality (RTP) Constant I do not hesitate to enter my private information (RTP1) I do not hesitate to share my credit / debit card code for payment of e-tickets (RTP2) a Predictors: (Constant), RTP1, RTP2 b Dependent Variable: Risk Taking Personality (RTP) .576 .520 85.050 t .000 17.192 8.196 Sig. .000 Sig. 1.000 .000 .000
Standardized Coefficients (Beta) .313 .401
The hypothesis failed to get rejected. Consumers / users with high risk taking personality go more for online reservation of railway tickets in Indian context. Hence, the exhibited risk taking personality traits of consumers / users offer a significant lead in terms of identifying the buyers orientation towards the online railway reservation system. Hypothesis 3: Individuals who seek more excitement and pleasure are more favourably disposed towards the online reservation of railway tickets in India.
Regression analysis was performed with the excitement and pleasure seeking personality of customers / users as the dependent variable, and avoidance of physical hassles; avoidance of traveling; excitement of online booking; and relief in the hectic schedule
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as independent variables. On entering the variables in a single block, it was found that 94.8% of the variance in personality based on online transaction security is explained by all the other constructs (R2 = .948, F Value = 1979.40, p < 0.01). All the four dimensions offered significant contributions with their respective t values and the associated level of significance (See Table 6). Table 6. Model Summary for Excitement and Pleasure Seeking Personality on Online Buying Behavior Model R R Square F 1 Items Measuring Excitement and Pleasure Seeking Personality (EPSP) .974 .948 1979.404 t .000 23.397 21.895 26.816 5.006
Sig. .000 Sig. 1.000 .000 .000 .000 .000
Standardized Coefficients (Beta) .343 .314 .293 .295
Constant Online ticket buying removes the hassle of travel and of standing and waiting in the queue and hassle of parking car etc. (EPSP1) I do not want to travel to buy ticket from station. (EPSP2) Buying tickets online is pleasurable and enjoyable to me. (EPSP3) I generally buy online tickets because of my daily hectic schedule. (EPSP4) a Predictors: (Constant), EPSP1, EPSP2, EPSP3, EPSP4 b Dependent Variable: Excitement and Pleasure Seeking Personality (EPSP)
The hypothesis failed to get rejected. The excitement and pleasure seeking aspects of customers / users personality is an important constituent element that creates individual preferences to go for online reservation of railway tickets in Indian context. Hence, the stated personality traits have to be considered properly to understand the implications of buyers personality pattern imperative to buying railway tickets online in India. Technology savvy individuals are more favourably disposed towards the online reservation of railway tickets in India. Regression analysis was performed with technology savvy personality of customers / users as the dependent variable, and convenience of online form filling; higher education and training; and adequate computer knowledge as independent variables. On entering the variables in a single block, it was found that 67.3% of the variance in personality based on online transaction security is explained by all the other constructs (R2 = .673, F Value =95.515, p < 0.01). All the three dimensions offered significant contributions with their respective t values and the associated level of significance (See Table 7). Table 7. Model Summary for Technology Savvy Personality on Online Buying Behavior Model R R Square F Sig. 1 Items Measuring Technology Savvy Personality (TSP) Constant It is easy to fill up online reservation form for ticket. (TSP1) Higher education motivated me to buy ticket online. (TSP2) Proficient Computer Knowledge encourages me to buy ticket online. (TSP3) a Predictors: (Constant), TSP1, TSP2, TSP3 b Dependent Variable: Technology Savvy Personality (TSP) .687 .673 95.515 t .000 21.784 27.896 36.020 .000 Sig. 1.000 .000 .000 .000 Hypothesis 4:
Standardized Coefficients (Beta) .437 .402 .405
The hypothesis failed to get rejected. Techno savvy aspect of customer / user personality influences them to go for online reservation of railway tickets in Indian context. With the growing level of education and training in computer proficiency, the
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customers / users prefer online booking to the counter booking. Hence, this aspect of buyer personality has to be understood to earn more online consumers / buyers as part of e-ticketing drive or initiative taken by the Indian railway. 4. Analysis of demographics Based on the analysis of background information of the survey respondents, the samples were further classified on the basis of gender and age groups. Then suitable statistical techniques were applied to capture the cross sectional comparisons of buyers / users personality traits inductive to online buying intention of railway tickets in Indian context. a. Analysis based on Gender Out of a total number of 327 respondents covered in the survey, 234 were male and 93 were female members. The analysis of descriptive and dispersions were calculated in addition to independent t test to examine gender wise differences of personality traits relevant to online buying intention (see Table 8). The results of independent t tests showed that for all the studied personality traits of buyers / users in the context of online buying namely Extroversion and Introversion; Risk Taking; Excitement and Pleasure Seeking; and Technology Savvy had no significant differences among male and female respondents. Therefore, it can be inferred that so far as these critical personality traits are concerned in the context of online reservation of railway tickets in India, they happen to be equally important and have a major role to play for in influencing the minds of both male and female buyers of long distance railway tickets. The univocal importance of online buyers personality traits has to be given due importance as because it implies that all these personality based attributes related to online buying intention are of generic significance irrespective of gender (See Table 8). Table 8. Comparative Analysis of Consumers Personality Traits Based on Gender Constructs Gender Mean SD F Sig. (p) t value Extroversion and Introversion of Personality (EIP) Risk -Taking Personality (RTP) Excitement and Pleasure Seeking Personality (EPSP) Technology Savvy Personality (TSP) Male Female Male Female Male Female Male Female 3.2564 3.1763 3.4092 3.4005 3.2051 3.2581 3.4829 3.3835 .7826 .7482 1.0186 .9549 1.1312 1.0416 .9618 .8818 .541 .173 .362 1.412 .463 .678 .548 .236 .862 .072 .404 .896 Sig. (2 - tailed) .390 .942 .686 .372
b. Analysis based on Age Group The total number of 327 respondents was classified under five different categories namely 15 20 age group, 20 30 age group, 30 40 age group, 40 50 age group, 50 60 age group, and 60 + age group. Analysis of variance (ANOVA) was applied to find out age group wise differences on critical personality traits that generate online buying intention (see Table 9). The results of ANOVA analyses showed that for two of the studied personality factors there were significant differences, whereas for the rest the differences were not found significant. Table 9. Comparative Analysis of Consumers Personality Traits Based on Age Group Constructs Occupation df Mean Square F Extroversion and Introversion of Between Groups 4 2.093 3.618 Personality (EIP) Within Groups 322 .578 Total 326 Between Groups 4 4.676 3.968 Risk -Taking Personality (RTP) Within Groups 322 1.178 Total 326 Excitement and Pleasure Seeking Between Groups 4 3.398 3.506 Personality (EPSP) Within Groups 322 .969 Total 326 Between Groups 4 2.343 2.710 Technology Savvy Personality Within Groups 322 .865 (TSP) Total 326 Sig. .000 .000 .008 .030
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For online buyers personality traits based on extroversion and introversion, a significant difference was found among the various age groups with F (4, 322) = 3.618, p < 0.001, and also exhibited personality traits based on risk taking, a significant difference was found among the various age groups with F (4, 322) = 3.968, p < 0.001. Whereas for online buyers personality traits based on excitement and pleasure seeking, no significant difference was found among the various age groups with F (4, 322) = 3.506, p > 0.001; and personality traits based on technological savvies, no significant difference was found among the various age groups with F (4, 322) = 2.710, p > 0.001. These mixed findings about various exhibited personality pattern of online buyers for different age groups can be attributed to the fact that the studied personality traits have got different implications for various age groups of people / buyers, who reserve long distance railway tickets online in India. People belonging to lower age brackets are more used to online transactions, and like any other online utility services also prefer to reserve long distance railway tickets online. Because of their age advantage they have got more energy, time, and curiosity to explore the outside world and thus increasing their social networking. They are easily convinced to share their personal data and the modus operandi of online reservation through the railway website in Indian context. The positive orientation towards the external world and taking the advantage of information technology, people in the lower age bracket go for frequent online reservation of long distance railway tickets in India. On the other hand, buyers belonging to the higher age brackets, may not have adequate time and energy to explore the basics of online transactions, and hence like any other online services (e.g. online banking, online payment of insurance premium / telephone or electricity bills) might not be so inclined to buy railway tickets online in India. Again some of them, who might seek the service of any travel agents to reserve tickets online, express doubts and anxiety to share confidential information / code with such agents in the process of online reservation. So keeping in mind all such distinct possibilities, the concerned Indian railway authority can go for segmented analysis in deciding the e-ticketing strategies as part of their customer service improvement drives for buyers in various age groups in order to induce them more for online buying of long distance railway tickets in Indian context. Whereas for online buyers personality traits like excitement and pleasure seeking, and technological savvies; there were no significant differences found among the various age groups. These findings can be attributed to the fact that these are the basic personality orientations of online buyers belonging to various age groups, who reserve / intend to reserve railway tickets online in India. The logical explanation lies in the fact that the people in all the age groups prefer to avoid the physical hassles, and have got some exposure to the usage of information technology as the basic pillar of any online transaction. Hence, these personality patterns of online buyers for all the age groups have to be considered with due importance while deciding the marketing, promotion, and customer service improvement strategies by the Indian railway to induce people more to go for online buying of long distance railway tickets (See Table 9). 5. Research implications The growing interest in the Internet as a medium of buying has attracted the attention of both academic researchers and practicing managers. The basic focus of this study has been to conceptualize, develop, and determine the critical components of consumer personality for the success of an online railway reservation system from the users perspective. The study identifies and examines, and empirically establishes the online buyers critical personality traits that induce the potential users to reserve railway tickets through online reservation system from both theoretical and practical perspectives. The online reservation system of Indian Railways has certain design features that have to match the users personality orientations in terms of psychographics and demographics. These elements lead to the generation of purchase intentions followed by the actual purchase of railway tickets through the online reservation system. The implications blend together the knowledge of behavioral sciences, online service marketing, and customer development management; and thus contribute to the theoretical as well as practical perspectives. 5.1 Academic / theoretical implications The technology-based online shopping transactions have grown rapidly in the recent years. But integrated and insightful analyses of consumer behaviors that can be safely attributed to the purchase and repurchase decisions in online buying needs more and more exploration to consolidate this area of research. The research pertaining to the identification of critical success factors in online buying is also inadequate and fragmented. The eventual growth of online purchase transactions and its diffusion among the various communities the world over raise interesting issues in academic research. So far as India is concerned, the number of individuals buying products and services online continues to increase in India, given its wide population base. The critical success factors of online buying intention emphasize the need for an in-depth analysis from the customers or users behavioral perspective. The research objective of this study has been to examine the various aspects of buyers / consumers personality orientations and exhibited predispositions relevant to the online reservation of railway tickets, and the impact of these factors on the online buying intention of railway tickets in Indian context. Based on the analysis of data, the study empirically established the impact of key personality factors on online buying intention of railway tickets for users across the consumer demographics such as gender and age in Indian context. Marketing academicians as well as behavioral researchers may use the study to assess the exhibited personality traits of consumers / users that drive them to online reservation of railway tickets for long distance tours or travels in India and how they influence the adoption of online reservation system of railway tickets by the user groups in Indian context.
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5.2 Business / managerial implications Recent trends of online buying mode of railway tickets for long distance tours or travels show a paradigm shift from the traditional booking pattern through the railway reservation counters. In India, the process and formalities of online transactions are still perceived by the majority of members as complex, uncomfortable, and a secondary option to the traditional purchase process. In such a scenario, the online reservation of railway tickets requires the authority to devise strategies based on sound consumer behavioral research and knowledge of customer convenience management. With the increasing level of competition from the low cost airlines and road transport options, Indian railway authority need to comprehensively understand the user expectations of online reservation and re-evaluate the facility of their online reservation strategies. The critical consumer personality factors presented and tested in this study will give the concerned authority of Indian railways a better understanding of their existing as well as the potential customers / users predominant personality patterns as the drivers of online buying intention of railway tickets. Along with these drivers, the search / design features of the Indian railway website act as the facilitator to the actual buying of railway tickets online in Indian context. The combined interactive effects of the drivers and the facilitators would lead to an increase in the revenue generation of Indian railways on account of volume of online booking. The implication of this study is that the concerned railway authority may use the findings while constructing, managing, and evaluating their online reservation website and evaluating the online reservation norms / strategies (especially in India) so as to compete and gain market leadership over its other competitive counterparts (air / road / water transport operators). Understanding and managing the buyers personality factors towards generating the intention of online purchase, needs to be worked out carefully and consciously. 6. Conclusion The application of technology-based online shopping has grown rapidly in recent years. Therefore, an understanding of how to attract, retain and satisfy customers in the context of online buying needs to be explored and studied in detail. Although todays customers are driven by functional and hedonic motives and explore the Internet to search products and services, does not always lead to the actual online buying. Comprehending and managing the dynamics of consumer behavior, becomes crucial, which lays the need for an analysis of online buying patterns in terms of consumer behavioral attributes. Although the number of individuals buying products and services online continues to increase in India, managing the dynamics of exhibited behavior in terms of relevant consumer psychographics and demographics is a research area worth exploring. What leads a buyer to shop online as a research question has evoked a lot of interest both in academics and practice, although the findings appear to be fragmented and disintegrated. Online transactions are characterized by anonymity, lack of physical interaction, lack of control, great deal of uncertainty and potential opportunism. A critical analysis of existing as well as potential online buyers personality traits helps the marketer / service provider to design and execute the appropriate e-marketing strategies. Buyers personality factors play a key role in evoking the buyers intention and making a decision to participate in online transactions. This paper is an attempt to conceptualize consumer personality as a concept against the backdrop of online buying. The paper starts with the previous research expositions of consumer personality against the background of online buying. Thereafter, the determinants of consumer personality factors have been conceptualized and empirically tested on the samples taken from the Indian context. Online marketers / service providers need to understand the consumer groups basic personality traits that drive them to go for the online buying process followed by the actual buying of products / services. This paper is an attempt to conceptualize consumer personality, as a concept against the backdrop of online buying. The initial flow of discussion delineates on what are the individual personality traits or orientations that prompt the consumers to buy online; thereafter with the help of the identified consumer psychographics, a conceptual model of consumer personality is presented related to the online buying. Followed by the conceptual model, the results of an empirical study have been stated in order to connect the linkage between the conceptualized consumer personality variables and the intention of online buying. The objective of the study has been to explore the critical personality factors that influence the online buying decision of individual consumers, and to establish their causal impact, if any, through developing an integrated model. Online retailers need to understand the basic information search and website design issues that are aligned with the potential online buyers dominant personality traits and patterns. With a behavioral orientation, online marketers can formulate their e-marketing strategies pursuant to the buying intention of the potential customers in the online buying system. The study appears to be highly relevant and is indicative by nature in the context of peoples ongoing preference to reserve long distance railway tickets online in India. In the present lifestyle educated, well - informed, and techno savvy consumers want to save time and adopt smarter ways to buy products or avail services. Following the greater physical mobility of people on the grounds of job search, job placement and relocation, higher education, visit to home towns, frequent office tours, and leave excursions the demand for online booking of railway tickets for long distance tours and travels also growing rapidly. The Ministry of Indian Railways, Government of India, has taken proactive moves to capture a large chunk of techno savvy customers, who prefer online reservation to the traditional counter booking, by providing well-developed online reservation service facility to the users. As personality traits of individual consumers influence the online purchase transaction to a large extent, this particular study has made an attempt to explore the impact of various consumers / buyers predominant personality traits on online purchase
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intention. Based on the analysis of field data, this study reached a logical conclusion that the buyers personality traits based on Extroversion and Introversion, Risk Taking, Excitement and Pleasure Seeking, and Savvyness with Technology have a significant influence on their intention to reserve railway tickets online in India for long distance tours and travels. The findings from this study will help the concerned railway authorities to suitably upgrade and maintain their e-ticketing initiatives for the online reservation of railway tickets by taking into account the online buyers / users dominant personality traits in Indian context. The modus operandi of the online reservation system requires attention with special emphasis on the factors like the features of online information search, design of the railway website, and the facility of all time network availability for online booking. Acknowledgment The author is grateful to Mr. Amitabha Datta, Junior Project Assistant at the Vinod Gupta School of Management at IIT Kharagpur, for his efforts that have helped the authors conduct the study. References Alba, J.W. and Hutchinson, J.W. (1987), Dimensions of consumer expertise, Journal of consumer Research, Vol.13, No.4, pp. 411 54. Aldas-Manzano, J., Ruiz-Mafe, C. and Sanz-Blas, S. (2009), Exploring individual personality factors as drivers of M-shopping acceptance, Industrial Management and Data Systems, Vol.109, No.6, pp. 739 57. Allred, C.R., Smith, S.M. and Swinyard, W.R. (2006), E-shopping lovers and fearful conservatives: a market segmentation analysis, International Journal of Retail and Distribution Management, Vol.34, No.4/5, pp. 308-33. Bandura, A. (1994), Self-efficacy: The exercise of Control, W.H. Freeman, New York, NY. Chen, L., Gillenson, M.L. and Sherrell, D.L. (2002), Enticing online consumers: an extended technology acceptance perspective, Information & Management, Vol.39, No.8, pp. 705-19. Chiu, C.M., Chang, C.C., Cheng, H.L. and Fang, Y.H. (2009), Determinants of customer repurchase intention in online shopping, Online Information Review, Vol. 33, No.4, pp. 761 84. Cronbach, L. J., (1951), Coefficient alpha and the internal structure of tests, Psychometrika, Vol.16, No.3, pp. 297-335. Cunningham, L.F., Gerlach, J.H., Harper, M.D. and Young, C.F. (2005), Perceived risk and the consumer buying process: Internet airline reservations, International Journal of Service Industry Management, Vol.16, No.4, pp. 357-72. Dabholkar, P.A. (1996), Consumer evaluations of new technology based self-service options, International Journal of Research in Marketing, Vol.13, No.1, pp. 29-51. Dabholkar, P.A. and Bagozzi, R.P. (2002), An attitudinal model of technology-based self-service: moderating effects of consumer traits and situational factors, Journal of the Academy of Marketing Science, Vol.30, No.3, pp. 184 -201. Eastin, M.S. and LaRose, R. (2000), Internet self-efficacy and the psychology of the digital divide, Journal of Computer-Mediated communication, Vol.6, No.1, pp. 1221. Fornell, C., and Larcker, D., (1981), Structural equation models with unobservable variables and measurement error, Journal of Marketing Research, Vol.18, No.1, pp. 39-50. Forrester Research (2001), Online shopping speeds up as UK Internet users mature reveals Forresters latest UK Internet user monitor, 5 December, available at: www.forrester.com/ER/ Press/Release. Hair, J F.; Anderson, R.E.; Tatham, R.L.; Black, W.C., (1995), Multivariate Data Analysis, 4th ed., Englewood cliffs, NJ, PrenticeHall. Kuhlmeier, D. and Knight, G. (2005), Antecedents to Internet-based purchasing: a multinational study, International Marketing Review, Vol.22, No.4, pp. 460 73. Lederer, A.L., Maupin, D.J., Sena, M.P. and Zhuang, Y. (2000), The technology acceptance model and the World Wide Web, Decision Support Systems, Vol.29, No.3, pp. 269-82. Marakas, G.M.,Yi, M.Y. and Johnson, R.D. (1998), The multilevel and multifaceted character of computer self-efficacy: toward clarification of the construct and an integrative framework for research, Information systems Resarch, Vol.9, No.2, pp. 126-63. Monsuwe, T.P., Dellaert, B.G.C. and Ruyter, Ko de (2004), What drives consumers to shop online? A literature review, International Journal of Service Industry Management, Vol.15, No.1, pp. 102-121. Moon, J.W. and Kim, Y.G. (2001), Extending the TAM for a World-Wide-Web context, Information & Management, Vol.38, No.4, pp. 217-30. Park, C.H. and Kim, Y.G. (2003), Identifying key factors affecting consumer purchase behavior in an online shopping context, International Journal of Retail and Distribution Management, Vol. 31, No.1, pp. 19-26. Ranaweera, C., Bansal, H. and McDougall, G. (2008), Web site satisfaction and purchase intentions: Impact of personality characteristics during initial web site visit, Managing Service Quality, Vol.18, No.4, pp. 329-48. Ratchford. B.T., Talukdar, D. and Lee, M.S. (2001), a model of consumer choice of the Internet as an information source, International Journal of Electronic commerce, Vol.5, No.3, pp. 7-21. Wen, I. (2009), Factors affecting the online travel buying decision: a review, International Journal of Contemporary Hospitality Management, Vol.21, No.6, pp. 752 65.
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Biographical notes Dr. Sangeeta Sahney is an Assistant Professor, in the Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur, West Bengal, India. Her areas of specialization are Consumer Behavior, Services Marketing, Quality Management and Organization Behavior. Presently she is on a short term deputation to the School of Management, Asian Institute of Technology, Bangkok. Mr. Koustab Ghosh is an Assistant Professor, in the Management Education Centre (MEC), Heritage Institute of Technology, Kolkata, West Bengal, India. His areas of specialization are Organization Behaviour and Human Resource Management. Ms. Archana Shrivastava is a Lecturer, in the NYSS Institute of Management and Research, Nagpur. Her areas of specialization are Marketing, Information Technology and Systems. Received August 2009 Accepted November 2009 Final acceptance in revised form January 2010
MultiCraft
Hexad structural diagnosis of organizational sociotechnical system as an antecedent to managerial retention: a meta-analytical approach
K. Ghosh1 * , S. Sahney2
1 * Calcutta Business School, Kolkata, West Bengal, INDIA Vinod Gupta School of Management, Indian Institute of Technology Kharagpur, West Bengal, INDIA * Corresponding Author: e-mail: koustabghosh@yahoo.co.in, Tel +91-9433533028, Fax.+91-33-24809612 2
Abstract As an exploratory academic query to the industry wide problem of managerial turnover, six organizational sociotechnical system components have been conceptualized and fitted within the hexad structural framework to explain managerial retention in the organizations. The first phase of the study was conducted on a sample of 282 junior and middle level managers from various organizations located in India in order to cross compare the organizational social and technical subsystem factors among the organizations as well as between the managerial levels. The second phase comprised the in-depth personal interviews of select junior and middle level managerial personnel in the organizations studied. The third step of analysis made a metasynthesis between the empirical and interaction based findings with the help of structured comparative framework developed in the previous works. The empirical analyses either confirmed or disconfirmed the research hypotheses, and thus enabled to develop aggregative indicators of the organizational sociotechnical system components having the moderating effect on managerial retention. The content analysis of the interview responses delivered more comprehensive and organization specific indications as to the impact of those factors on managerial retention. The practical implication of this study lies in the consideration of all these organizational social and technical subsystem components while designing the managerial jobs in organizations, and also in formulating the effective managerial retention initiatives by the top management and the HR practitioners of individual firms. Keywords: Sociotechnical system; Hexad structural; Organization; Managerial retention; Meta-analytical 1. Introduction The industrial organizations all over the world are operating in a highly competitive and challenging business environment. Achieving customer satisfaction on a continual basis, keeping in view of the increasing expectations of the customers, has been the key to the growth of business and operations. Customer satisfaction and business development can only be done by retaining the competent and capable managers at different hierarchical levels of the organizations. But with the available growing career opportunities and better employment prospects, turnover of managerial personnel has become an increasingly important industrial problem worth studying in the recent years. Retaining the key managerial talents to support the successful expansion and development of organizations is a widely felt need of todays organizations across the globe. On the other hand, the theory of sociotechnical system since its inception had laid emphasis on design and redesign of jobs, automation and integration of technology with the organizational system, employee productivity, morale and quality of work life. This study was an attempt to conceptualize the organizational sociotechnical constructs in the context of managerial retention. Hexad structural framework of organizational sociotechnical analysis was used to exhibit the importance and simultaneous functioning of the organizational social and technical triads. A comprehensive sociotechnical assessment of the organizational work environment was done both quantitatively and qualitatively. The bearings that these elements had on the managerial retention in organizations were explored through the meta-synthesis between the empirical and interactive findings in the organizations studied. In view of the specific organizational scanning and analysis, the counter-intuitive findings brought out the contextual factors of managerial retention and turnover falling outside the aggregative conclusions. The paper thus serves as identifying the pitfalls that several times the
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Ghosh and Sahney / International Journal of Business, Management and Social Sciences, Vol. 1, No. 1, 2010, pp. 21-40
management and administrative personnel of the organizations overlook in the issues connected to the retention of managerial employees. 2. Theoretical framework a. Sociotechnical System The term Sociotechnical System was coined by Eric Trist and K. Bamforth (1951) and was subsequently interpreted as an established methodology that provides a structured approach to redesign of job related processes (Pasmore and Sherwood, 1978; Taylor and Felten, 1993; Fox, 1995; Eijnatten, 1998). The social subsystem of an organization is comprised of the people who work in the organization and the relationships among them (Trist and Bamforth, 1951; Emery, 1959, 1962; Trist et al., 1963; Pasmore, 1988). Broadly, the social subsystem includes the profile and expectations of organizational members, patterns of supervisory - subordinate relationships, interpersonal relationship of employees and the nature and interaction of subgroups within the population, occupational roles, role relationships into teams around tasks, the nature of coordination and control, and the social integration of workforce. The technical subsystem of an organization consists of the tools, work techniques and procedures, skills, knowledge and devices used by members of the social subsystem to accomplish the tasks of the organization (Trist and Bamforth, 1951; Thompson and Bates, 1957; Woodward, 1958; Emery, 1959; Trist et al., 1963). At the individual level, the technical subsystem affects work design, productivity, self-perceptions, and psychological contracts. At the functional unit or department level, the technical subsystem affects roles structures, physical layout, interaction patterns, and supervisory behavior. At the organization level, the technical subsystem affects relationships among departments, organizational structure, reward systems, organizational flexibility, and overall competitiveness (Perrow, 1970; Cummings and Srivastva, 1977; Macy et al., 1995; Lawler, 1996; de Sitter et al., 1997; Pasmore, 1988; Hendrick, 1991). Thus, at various levels of interface the balance has to be archived between the organizational social and technical subsystem elements in order to make the entire organizational system function well. b. Managerial Retention Managerial Retention as a research construct has been studied, explored, and analyzed by a number of researchers over past few decades from a variety of individual and organizational perspectives. Moos, 1979; Spector and Michaels, 1986; Hom et al. (1992); Miller (1996); Kiyak et al. (1997); Wright and Cropanzano (1998); and Chan et. al. (2008) categorized the causes and antecedents to managerial turnover in terms of factors like (1) demographic factors (e.g. age, education, job level, gender, and tenure with the organization), (2) professional perceptions (e.g. organizational commitment, professional commitment, job satisfaction, motivation potential, value conflict, and burnout), and (3) organizational conditions (e.g. stress, social support, fairness-management practices, physical comfort, and organizational culture). In addition to these factors, personal background, work attitude, and job characteristics of individual managers were also found related to managerial job satisfaction and organizational commitment that in turn affected managerial turnover in organizations (Deery-Schmitt and Todd, 1995; Geurts et al., 1998; Barak et al., 2001; and Tracey, 2008). Different work outcome expectations in terms of job significance, emotionally satisfying work experiences, external rewards; meaningful work experiences were found critical to managerial job engagement and performance having a significant causal incidence to managerial turnover (Offermann and Gowing, 1990; Kuemmler and Kleiner 1996; Caudron, 1997; May, 1998). In the changed business environment and with the modern managerial profile (relatively young in age, professionally qualified, highly career conscious, and oriented towards self-development), Perrin (2003) and Scroggins (2007) expressed that the hired competent managers have to be treated professionally, provided with the finest technology, and encouraged an emotional bonding between them and the company to retain them back in the organizations. The studies done by Porter and Steers (1973) and Lee and Mowday (1987) revealed that the various factors related to managerial turnover and absenteeism in work situations were namely, (1) Organization wide factors, (2) Immediate work environment factors, (3) Job related factors, and (4) Personal factors. Met expectations, job values, job attitudes, intention to leave the organization, and actual leaving were related to many of these above theorized antecedent variables. Managerial retention strategies included raising salaries; stay bonuses; career advancements, promotions; training; personal recognition; time off; working conditions; supportive top management and immediate supervisors (Lockwood and Ansari, 1999; Heather, 2003). The group of researchers like Carsten and Spector (1987); and Hom and Griffeth (1991,1995) emphasized the managerial retention strategies on training and development program, redefining job classifications and minimizing restrictive work rules, designing jobs for groups; levels of organizational commitment; compensation and benefits, organizational affiliation, customized work environments, competent HR employees. In reality, all these factors lead to managerial job satisfaction as instrumental for decreasing managerial turnover in organizations (Mosley and Hurley, 1999; Buck and Watson, 2002). The role of HR personnel was found to be significant as the designed HRM strategies could affect organizational commitment and potentially influence managerial turnover (Ramlall, 2003; Bhatnagar, 2007). Managerial personnel in service sectors most frequently switched over the organizations for factors like quality of supervision, ineffective communication, working conditions, quality of co-workers, inappropriate fit with company culture, low pay and few benefits, lack of clearly defined responsibilities, and no direction on what to do (Woods and Macaulay, 1989; Woods, 1995).
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Successful retention of managers was found to be associated with a predictable and stable work environment, whereas the high level of organizational inefficiency was associated with a high level of managerial turnover (Alexander et. al., 1994; Zuber, 2001). Royalty (1996) found that the increased training and career development promotes a high degree of job satisfaction, which in turn leads to managerial retention. Business firms with strong internal communication systems enjoyed lower turnover of managers (Labov, 1997). Incentive pay and job satisfaction were found to be the two major influencing factors to the issue of managerial retention (Sigler, 1999; Brown and Yoshika, 2003; Chen et. al., 2004). Person - job and person - organization fit were found related to managerial work experience as individual managers perceive fit and experiential meaning through the performance of job tasks and social information - processing network. Thus Person - job and person - organization fit were highly coincidental to managerial retention in industrial organizations1 (Salincik and Pfeffer, 1978; Allen and Meyer, 1996; Kristof Brown et. al., 2005; Chew and Chan, 2008; Coldwell et. al., 2008; and Moynihan and Pandey, 2008). Socio - analytic theory has provided a framework for the management of fit perceptions of individuals in organizations (Hogan and Roberts, 2000). General Managers turnover in the hospitality industry was primarily due to management conflicts and lack of career movements (Birdir, 2002). Factors such as compensation and benefits, organizational affiliation, customized work environments, competent HR employees were found to be some of the prime factors of talent retention (Mosley and Hurley, 1999; Scott, 2002). Lin and Chang (2004) expressed that the managers should have a clearly defined role in decision making, receive constructive and high-quality feedback and be made to feel valued members of their organization; and learning experiences to strengthen their organizational commitment to make them continue to work with the present organization. The group of organizational researchers like March and Simon (1958); Mobley et al. (1979); Rusbult and Farrell 1983); Hulin et al. (1985); Price and Mueller (1986); Rust and Stewart (1996); Hom and Kinicki (2001); and Westlund and Hannon (2008) through using the meta-analyses and structural equation modeling techniques established that a causal negative relationship of managerial between the job satisfaction and managerial turnover. Thus, improving managerial satisfaction appeared to be instrumental for decreasing managerial turnover. Coward et al. (1995) and Barak et al. (2001) studied the construct individual managers intention to leave, in addition to, the actual managerial turnover as the outcome variable, and found a significant correlation between them. Antecedents to managerial retention and turnover among the service sector managerial personnel suggested that the best predictors of intention to quit were job satisfaction, organizational commitment, professional commitment, and burnout. The findings had also indicated that the strongest single predictor of actual turnover is intention to leave (Mak and Sockel, 2001; Chan et. al., 2008).
Individual Factors
HR Policies and Retention Initiatives
Job Satisfaction and Organizational Commitment
Organizational Social Integration Managerial Retention and Turnover
Organizational Factors
Demographic Factors
Professional Factors
Figure 1: Factors of Managerial Retention and Turnover c. Organizational Hexad Structural Analysis Having discussed a wide variety of perspectives of managerial retention in organizational context, we can now turn on to the concept of Hexad Structural diagnosis in organizations. John Bennet (1987) coined the term hexad structure in the context of organizational analysis, and visualized an organization as a modern complex social organization comprised of six elements or factors coincidental to any defined organizational issue / problem. The framework has been applied as a diagnostic tool for organizational change, structural design, redesign of jobs and work processes and so on by the sociotechnical system practitioners
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wherein a balance is sought to be achieved between the social and technical subsystem elements or factors (Grantham, 1992). Conceptualizing the hexad framework to the construct of managerial retention, a total number of six variables were identified in the following section relevant to the area undertaken for this present study. Three out of the six factors were social in nature forming the organizational social triad, and the rest three were technical in nature making the organizational technical triad that together constituted the holistic hexad structure of organizational sociotechnical system (see Figure 2).
Supervisory Relationship
Social Peer Group Interaction
Triad Person Organization Fit
Managerial Retention
Managerial Job Characteristics
Work Technology Support
Technical
Triad
Perceived Organizational Support Figure 2: Hexad Structural Sociotechnical Framework of Managerial Retention 3. Conceptualization of variables and research hypotheses a. Supervisory Relationship (SR) Dierendonck et al. (2002) studied the relationship between the supervisory behaviour and subordinate absenteeism and found that supervisory behaviour is directly related to the subordinate absenteeism. They used the Leader Member Exchange (LMX) scale developed by Scandura and Graen (1984); Le Blanc et. al., (1993); and Graen and Uhl-Bien (1995). Deluga (1998), by using the scale developed by Kozlowski and Doherty (1989), studied the subordinate supervisor relationship with organizational citizenship behaviour and supervisor effectiveness, and found that a positive Leader Member Exchange behaviour contributes to organizational citizenship behaviour and supervisor effectiveness. Higher quality subordinates obtain special benefits and opportunities, including the delegation of tasks without interference, favorable performance reviews, visible assignments, valued promotions, and career development support. In the context of managerial retention strategies, studies done by Lockwood and Ansari (1999) and Heather (2003) reconfirmed that supportive top management and immediate supervisors influence the turnover of managers to a large extent. Taking cue from these previous studies, the following two hypotheses were formulated to measure the inter-organizational and inter-managerial level differences of supervisory relationship.
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Hypothesis 1 (i): There is a significant difference in the supervisor - subordinate relationship at managerial levels in all the organizations studied. Hypothesis 1 (ii): There is a significant difference in the supervisor subordinate relationship between the junior and middle level managers in all the organizations studied. b. Peer Group Interaction (PGI) Van der Vegt et. al., (1998, 2002), studied the motivating effects of task interdependence (social job dimension) in work teams, and found a strong relationship between the task interdependence measures and the personal work outcome of team members. Taking the lead from the study of Wagner and Moch (1986); Eby and Dobbins (1997), Van der Vegt et. al., (1998), and Tagger and Haines (2006) studied the reciprocal team interdependence. This psychosocial support received at the level of peer groups at workplace increases the job involvement of individual employees and reduces the intention to quit the organization (Chan et. al., 2008; Moynihan and Pandey, 2008). Based on the findings of these previous studies, the following two hypotheses were formulated to measure the inter-organizational and inter-managerial level differences of peer group interaction. Hypothesis 2 (i): There is a significant difference in the peer group interaction at managerial levels in all the organizations studied. Hypothesis 2 (ii): There is a significant difference in the peer group interaction between the junior and middle level managers in all the organizations studied. c. Person Organization Fit (POF) OReilly et. al., (1991), in the context of people and organizational culture, made an extensive study on the construct of person organization fit. Results suggested that a better fit predicted job satisfaction and organizational commitment, and hence reduced employee turnover. Also the studies done by Coldwell (2006); Chew and Chan (2008); Moynihan and Pandey, (2008) in the context of people and organizational culture, related the construct of person organization fit with the intention to leave and employee turnover. Based on the findings of these previous studies, the following two hypotheses were formulated to measure the inter-organizational and inter-managerial level differences of individual managers integration with the organizational values, norms, and practices. Hypothesis 3 (i): There is a significant difference in the integration of individuals with his / her respective organization at managerial levels in all the organizations studied. Hypothesis 3 (ii): There is a significant difference in the integration of individuals with his / her respective organization between the junior and middle level managers in all the organizations studied. d. Managerial Job Characteristics (MJC) Robie et. al., (1998) have studied the job level characteristics from a number of previous studies (Hackman and Oldham, 1977; Treiman, 1977; Hunter and Schmidt, 1990) to reflect the relationship between job levels and job satisfaction. Palvia, Sharma, and Conrath (2001), had developed a framework regarding the information system quality comprising the task characteristics, technology, people, and organization. Following the increased trend of computerization of all functional level of managerial jobs, Palvia et. al., (2001); Westlund and Hannon (2008) have developed a framework regarding the information system quality comprising the task characteristics, technology, people, and organization, and found the relation among nature of job, job satisfaction, and turnover intention. Accordingly, the following two hypotheses were formulated to explore the inter-organizational and inter-managerial level differences of managerial task assignments and their execution mechanisms to achieve results. Hypothesis 4 (i): There is a significant difference in the design characteristics and execution of jobs at managerial levels in all the organizations studied. Hypothesis 4 (ii): There is a significant difference in the design characteristics and execution of jobs between the junior and middle level managers in all the organizations studied. e. Work Technology Support (WTS) Shani et. al., (1992), have defined technology as the combination of individual expertise (skills and knowledge), techniques, machines, and computers required for converting inputs into outputs in the form of products or services. Palvia, Sharma, and Conrath (2001), also studied work technology in the context of sociotechnical approach to determine the quality of a computer information system. Taking cue from these previous studies, the following two hypotheses were formulated to measure the interorganizational and inter-managerial level differences of supervisory relationship.
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Hypothesis 5 (i): There is a significant difference in the availability of supportive work technology at managerial levels in all the organizations studied. Hypothesis 5 (ii): There is a significant difference in the availability of supportive work technology between the junior and middle level managers in all the organizations studied. f. Perceived Organizational Support (POS) Perceived organizational support is defined as the employees global beliefs concerning the extent to which the organization values their contributions and cares about their well - being (Eisenberger et. al., 1986). Johlke et. al., (2001), studied a few selective aspects of perceived organizational support as an antecedent to employee commitment taking leads from earlier studies by Eisenberger et. al., (1986, 2001). Brandes et. al., (2004), in their study has reflected the relationship between the organizational support facilities, employee involvement and work outcomes. The similar findings were further corroborated in the studies done by Ramlall (2003); Bhatnagar (2007); Chan et. al. (2008); Chew and Chan (2008), and established that positive organizational support influences the intention to stay back with the organization. Based on the findings of these previous studies, the following two hypotheses were formulated to measure the inter-organizational and inter-managerial level differences of various support facilities that the managerial personnel receive in their respective organizations and generate positive work outcomes. Hypothesis 6 (i): There is a significant difference in the organizational support facilities received at managerial levels in all the organizations studied. Hypothesis 6 (ii): There is a significant difference in the organizational support facilities received between the junior and middle level managers in all the organizations studied. 4. Applied methodology a. Sample The sample (N = 282) consisted of junior and middle level managers employed in all the four organizations, which belonged to either the public sector or private sector enterprises. Purposive sampling technique was adopted to cover the managerial employees from diverse organizations. The organizations that were covered included the power generation, power distribution, commodity trading, and IT solutions and services, and within that two organizations belonged to the public sector and the other two to the private sector. In all the organizations studied the total strength of employed manpower stood varied between 2000 and 5000. The diverse background of the organizations enhanced the external validity and likely generalizability of the results. Of the total sample obtained for the study (N = 282), 18% were female and 82% were male managers, and 45% belonged to junior level and 55% to the middle level of managerial hierarchy respectively. 57% of the sample respondents were only graduate degree holders, and the rest were holding post-graduate qualifications. Of these 57% graduate degree holders, about 40% were degree / diploma engineers, and among the post-graduate holders about 50% had possessed professional qualifications like Master of Business Administration (MBA), Master of Computer Application (MCA), Chartered Accountants (CA), and Cost and Works Accountants. 25% of the total respondents had more than 10 years of work experience, about 45% had less than 10 years but more than 5 years of experience, and the rest 30% had more than 2 years but less than 5 years of work experience. b. Measures A questionnaire was administered to the selective junior and middle level managerial personnel of the four organizations that assessed the organizational sociotechnical system variables and their relation to the retention of managers at junior and middle levels in the organizations studied. The measures for each variable were mostly adapted from the scales developed in previous research studies as have been cited in detail under the section of conceptualization of research variables. The measures were put to Likert type categorical rating scale ranging from 1 (strongly disagree) to 5 (strongly agree). c. Procedure and Analysis The study is diagnostic in nature and follows a meta-analytical approach of research design to integrate the empirical and qualitative organizational findings. One Way Analysis of Variance (ANOVA) was applied to determine inter organizational comparisons of the organizational social and technical subsystem factors, and the level of managerial retention. Based on the values of F test and the corresponding levels of significance, the comparative relationships of the variables among the four organizations were either confirmed or disconfirmed (see Table 7). Independent Samples t - test was applied to determine the level wise comparisons of the organizational social and technical subsystem factors, and the level of managerial retention. Based on the values of t test and the corresponding levels of significance, the comparative relationships of the variables between the junior and middle level managerial employees in the four organizations were either confirmed or disconfirmed (see Table 7). The qualitative section of the study has been prepared by conducting in - depth personal interviews of 85 select junior and middle level managers in the four organizations. Comprehensive content analysis was made on the entire data set to measure the
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frequency of responses, and classify them according to the level of respondents and significance attached to each of them (Mitchell, 1983; Gillham, 2000). A qualitative meta-summary was conducted to synthesize the qualitative findings from the content analysis. Qualitative meta-summary is an aggregative approach to qualitative research synthesis to accommodate primary qualitative survey finding (Noblit and Hare, 1988; Barbour and Barbour, 2003; Sandelowski and Barroso, 2007). The word aggregative is used to indicate a quantitatively oriented logic that is largely directed toward identifying those findings that recur most frequently during the content analysis. 5. Results and findings a. Quantitative Findings The results of the quantitative analyses showed that (see Tables 1 and 2) no significant difference was found in the supervisorsubordinate relationship among the four organizations and between the junior and middle level managerial personnel in those four organizations. For the construct peer group interaction, no significant difference was found in the relation and interaction pattern among peers in the four organizations and between the junior and middle level managers in those four organizations. Whereas for the construct person organization fit, significant difference was found in the integration of individual managers with the organizational values, norms, and practices among the four organizations as well as between the junior and middle level managers. The analysis of managerial job characteristics showed that significant difference was found in the designed task assignments and their mode of execution among the four organizations and between the junior and middle level managers in these organizations. Whereas for work technology support no significant difference was found in the available technological support at workplace among the four organizations as well as between the junior and middle level managerial personnel. For the construct perceived organizational support, no significant difference was found among the four organizations and between the junior and middle level managers regarding the support facilities that they received from their respective organizations. The analysis of managerial retention established that there was a significant difference in the retention of managerial personnel in the four organizations and between the junior and middle level managers in these organizations studied (see Tables 1and 2). b. Qualitative Findings Supervisory Relationship: Organization A: (i) Junior Managers: Were not satisfied with their immediate supervisors in evaluation of job performance and work-guidance. (ii) Both Junior and Middle Managers: Did not receive any recognition from the supervisors for job performance and hard work. Organization B: (i) Junior Managers: Did not receive adequate work guidance and mentoring related to their job assignments and career developments. (ii) Both Junior and Middle Managers: Were not satisfied with their immediate supervisors in evaluation of job performance and recognition for jobs well done In most of the zonal units, the supervisors did not uniformly maintain the company policies and practices Organization C: (i) Junior Managers: Were not satisfied with their immediate supervisors in evaluation of job performance and recognition for jobs well done. Organization D: (i) Junior Managers: Were not satisfied with their immediate supervisors in evaluation of job performance and mentoring related to their career developments. (ii) Both Junior and Middle Managers: Immediate supervisors took all the credit for satisfactory job performance but managers were reprimanded if any mistake was committed.
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Table 1: Result of Inter Organization Analysis of Variance for Organizational Sociotechnical Constructs and Managerial Retention Constructs F Sig. Hypothesis Findings Confirmed / Disconfirmed 1. Supervisory 1.590 0.193 Disconfirmed There is no significant difference in the supervisor Relationship - subordinate relationship at managerial levels in the four organizations, F (3, 199) = 1.59, p < 0.01. 2. Peer Group 3.076 0.029 Disconfirmed There is no significant difference in the pattern of Interaction peergroup interaction and relations at managerial levels in the four organizations, F (3, 199) = 3.07, p < 0.01. 3. Person 14.980 0.000 Confirmed There is a significant difference in the integration Organization of individuals with his / her respective organization Fit at managerial levels in the four organizations, F (3, 199) = 14.98, p < 0.01. 4. Managerial 6.861 0.000 Confirmed There is a significant difference in the Job characteristics of jobs at managerial levels in the Characteristics four organizations, F (3, 199) = 6.86, p < 0.01. 5. Work Technology Support 6. Perceived organizational support 7. Managerial Retention 1.513 0.212 Disconfirmed There is no significant difference in the availability of supportive work technology at managerial levels in the four organizations, F (3, 199) = 1.51, p < 0.01. There is no significant difference in the organizational support facilities received at managerial levels in the four organizations, F (3, 199) = 2.03, p < 0.01. There is a significant difference in the retention of employees at managerial levels in the four organizations, F (3, 199) = 10.21, p < 0.01.
2.032
0.111
Disconfirmed
10.218
0.000
Confirmed
Peer Group Interaction: Organization A: (i) Junior Managers Were less in number and more professionally qualified compared to the middle level, hence did not get adequate cooperation, interaction and openness within their own department / unit (ii) Middle Managers Shared cooperation and healthy relationship among themselves Organization B: (i) Junior Managers The number in various departments / units were sufficiently high to have free and comfortable interaction and relations (ii) Junior and Middle Managers Within the same department / unit had adequate interaction and cooperation among themselves Organization C: (i) Junior Managers The number in various departments / units were sufficiently high to have free and comfortable interaction and relations (ii) Junior and Middle Managers Within the same department / unit had adequate interaction and cooperation among themselves Organization D: (i) Junior Managers
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The number in various departments / units were sufficiently high to have free and comfortable interaction and relations (ii) Junior and Middle Managers Within the same department / unit had adequate interaction and cooperation among themselves Table 2: Result of Inter Managerial Levels Comparison for Organizational Sociotechnical Constructs and Managerial Retention Levels t Values Confirmed / Findings Disconfirmed Junior No significant difference was found in the 0.837 Disconfirmed supervisor subordinate relationship between Middle the junior and middle level managerial employees Junior No significant difference was found in the peer 0.359 Disconfirmed group interaction and relations between the Middle junior and middle level managerial employees Junior Significant difference was found in the 3.126** Confirmed integration of junior and middle level Middle managerial employees with their respective organizations, p < .01. Junior Significant difference was found in the 2.595** Confirmed characteristics of managerial job assignments Middle between the junior and middle level managerial employees, p < .01. Junior No significant difference was found in the 0.705 Disconfirmed technological support available at workplace Middle between the junior and middle level managerial employees Junior No significant difference was found in the 0.518 Disconfirmed Perceived organizational support available at Middle workplace between the junior and middle level managerial employees Junior 2.203* Middle Person Organization Fit: Organization A: (i) Junior Managers In most of the functional divisions the GM / DGM did not ever meet the new joiners (ii) Junior and Middle Managers Seniority based promotions demotivated the well-performing managers No feedback for on-the-job performance because of Confidential Rating system of performance appraisal Lack of social integration between the top management and junior and middle managers Business decision-making processes were purely rule bound Organization B: (i) Junior and Middle Managers HR managers failed to communicate and maintain continuous interactions with people in other departments both at corporate and zonal divisions Despite the existence of participatory forum top management did not find it important to involve the managerial representatives in deciding major company policies Were not informed about major business decisions and company policies Total absence of organizational induction and socialization process widened the gap with top management Confirmed Significant difference was found in the retention of junior and middle level managerial employees, p < .05.
Constructs 1. Supervisory Relationship
2. Peer Group Interaction 3. Person Organization Fit
4. Managerial Job Characteristics
5. Work Technology Support
6. Perceived organizational support
7. Managerial Retention
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Organization C: (i) Middle Managers The organization cultures and work environments were starkly different in the parent organization and organization C The previous management was supportive, approachable, and used to involve managers in making major business decisions and changes in company policies Have been working long with the company, and shared an open, informal interaction pattern with the previous top management now changed to formal and structured boss-subordinate relationship Felt that recently the company had entered some business domains in which it does not have competence Organization D: (i) Junior and Middle Managers The departmental / functional heads were not sensitive to awarding managers for sincerity, hard work, and extraordinary job performance Were afraid of thinking out-of-box and applying new ideas because of fear of vigilance Too many layers in the organizational hierarchy blocked and delayed the scope of moving upward at a desirable pace Top and senior management did not have adequate interaction with managers down the line and the culture of company get-together was lacking because of high work pressure Lack of social integration due to huge number of workforce in various functional areas with diverse backgrounds placed at different locations Managerial Job Characteristics: Organization A: (i) Junior Managers Were carrying out the routine instructions of seniors having no specific assignment commensurate to their qualifications and expertise (ii) Middle Managers Were kept busy in the execution of routine works as the decision-making power was only in the hands of senior management Organization B: (i) Junior Managers No job rotation with technical background resulted in monotony and skill stagnation (ii) Middle Managers Both from technical and non-technical background were satisfied with their on-going work assignments Organization C: (i) Junior Managers Professionally qualified recruitees compared with what their counterparts were doing in other similar organizations and had expectations in mind about having better professional assignments having more learning opportunities and utilization of knowledge (ii) Middle Managers Compared the gradual depletion of companys business assignments with the previous worthwhile client requirements Organization D: (i) Junior and Middle Managers Especially from technical background were dissatisfied with the execution of their job assignments due to absence of any decision-making authority and lack of experimentation on development of job related processes Work Technology Support: Organization A: (i) Junior and Middle Managers Had the full technological support facility at corporate office, but was lacking in regional offices Organization B: (i) Junior and Middle Managers Had the full technological support facility at both corporate and zonal offices
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Organization C: (i) Junior and Middle Managers Had the full technological support facility at the workplaces in various locations Organization D: (i) Junior and Middle Managers Had the full technological support facility at all major workstations Perceived Organizational Support: Organization A: (i) Middle Managers Frequent transfers of All India Cadre managerial employees disturbed the work-family balance (i) Junior and Middle Managers The managerial employees both at middle and junior levels had to wait for long for promotion No systematic efforts for training needs analysis, career development, and succession planning, and people posted on new assignments were not given prior training and knowledge exposure Compensation including various allowances are not at par with other leading Public Sector Undertakings or private players in the market Infrastructure and operational support facilities were not satisfactory at regional divisions compared to the corporate office Organization B: (i) Junior and Middle Managers Infrastructure was not satisfactory and workload was high at most of the zonal divisions due to shortage of manpower Administrative support services from HR department were very poor Functional groups like customer service, legal and enforcement, HR, information system, projects and maintenance did not have a supportive work relation among them As most of the zonal units were highly over worked, work-family balance was suffered for middle managers Absence of HR planning at corporate level resulted in lack of career development and training implementation Organization C: (i) Junior Managers Junior managerial employees were not satisfied with the compensation package given better opportunities in the market (ii) Middle Managers Middle managerial employees did not like the new consolidated compensation package announced by the new management in post-takeover situation Repeatedly a number of managerial employees with considerably good performance have not been given promotion or any substantial reward The fresh recruits initially are given adequate induction training, but the existing employees are not sponsored for minimum training requirements in a year Organization D: (i) Middle Managers Many managerial employees have been working at the same level for more than fifteen years without getting promoted (ii) Junior and Middle Managers Compensation packages were found not attractive compared to the private sector organizations in the industry At site divisions the service functions like maintenance, purchase, and HR did not share a supportive relationship with the employees in operation functions like engineering and project groups The generation divisions and plant sites were highly over loaded with work pressure compared to corporate and business divisions Managerial Retention: Organization A: (i) Retention level of junior managers very less compared to the industry average (ii) Retention level of middle managers satisfactory (see Table 3)
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Organization B: (i) Retention level of both junior and middle managers is a matter of concern (see Table 4) Organization C: (i) Retention level of junior managers at different functional specialization areas is a matter of concern (ii) Retention level of middle managers is gradually coming down (see Table 5) Organization D: (i) Retention level of junior and middle managers is within manageable limits compared to the average turnover in the industry, but facing continuous challenges to retain them on the face of better opportunities available in the private sector organizations in the industry (see Table 6). Table 3: Managerial Turnover Rate* (in percentage) for Previous Years in Organization A Managerial Levels 2005 2006 2007 2008 Deputy General Manager 8.1% 9.4% 10.3% 3.1% Deputy Manager 55.8% 63% 69.2% 31.3% Assistant Manager 45.3% 52.8% 56.1% 22.2% Senior Manager 5.2% 6.4% 6.8% 3.2% Manager 5.6% 6% 6.6% 2.6% [* Expressed as a percentage of the ratio between number of people left and number of people at the beginning in a particular level.] Table 4: Managerial Turnover Rates (in Percentages) for Previous Years in Organization B Years 2005 2006 2007 2008 Levels Junior Managerial employees: i) ii) iii) iv) Technical Trainees Non-Technical Trainees Assistant Officers/Technical Assistant Officer/ Non-Technical 18% 26% 11.2% 24.3% 10.8% 15% 18.3% 16.5% 10.3% 31.6% 43.6% 31.7% 30.1% 21% 26.66% 32.6% 28.8% 18.6% 52.67% 74.2% 61% 41.8% 33.7% 35.46% 39.4% 42.3% 24.7% 17.55% 22.2% 16.8% 20.1% 11.1% 17% 16.2% 21.3% 13.5%
Middle Managerial employees: i) ii) iii) Managers Assistant Managers Officers
Table 5: Managerial Turnover for Previous Years in Organization C (Junior and Middle Managerial Levels) Business Units / Divisions and Levels within 2005 2006 I. Customer Services i) Networking Engineers 26.1% 31.3% ii) Customer Service Officers 18.7% 23.8% iii) System Managers 36.4% 42.2% II. Systems Integration i) Project Officers 22.8% 28.1% ii) Software Engineers 38.9% 44.8% iii) Project Consultants 24.6% 27.3% III. IT Enabled Services i) Database Operators 20.2% 21% ii) Program Managers 24.7% 28.3%
2007 39% 25.2% 46% 29% 48% 27% 22.1% 30.2%
2008 24% 22.6% 29.7% 23.2% 32% 25.1% 14.3% 18.2%
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Table 6: Junior and Middle Managerial Turnover Rate for Previous Years in Organization D Managerial Levels 2005 2006 2007 2008 Executive Trainees: i) Technical 10.2% 11% 13.1% 12.2% ii) Non Technical 8.3% 9.2% 9.7% 10.1% Site Engineers 10.3% 12.6% 14.7% 9.3% Project Engineers 12.8% 16.8% 18.5% 10.2% Deputy Managers 13.7% 16.2% 20.4% 11% Assistant Managers 13.5% 16.6% 21.7% 8.6% Deputy General Managers 3.2% 3.4% 2.9% 1.9% Officers (commercials and technical) 2.6% 2.9% 2.7% 2.2% c. Synthesis of Quantitative and Qualitative Findings In the third step of analysis, an attempt was made to cross compare and find out the commonalities (convergence) and discommonalities (divergence) of the quantitative and qualitative findings of the organizational sociotechnical constructs and managerial retention from the analyses of the four organizations studied (see Table 7). Two broad measures of synthesis were considered namely (1) Assimilation and (2) Configuration. In Assimilation, findings are incorporated into each other, and whereas in Configuration, findings are arranged into a theoretical model, narrative line of argument, or other coherent form (Sandelowski et. al., 2006). Assimilation is possible when findings are viewed as confirming each other or converging in the same direction, and in contrast, configuration is the option when findings are viewed as complementing as opposed to confirming each other (Harden et. al. 2005; Dixon-Woods et al. 2006). Table 7: Categorization of studied Constructs in Quantitative vis--vis Qualitative Conformity / Disconformity Constructs Managerial Inter-organizational Inter-organizational Synthesized Levels Quantitative Qualitative Conclusion Measure Measure 1. Supervisory Junior Converging Converging Relationship Assimilation Middle Converging Converging 2. Peer Group Junior Converging Converging (except Assimilation and Interaction Organization A) Configuration Middle Junior Middle 4. Managerial Job Characteristics 5. Work Technology Support 6. Perceived Organizational Support 7. Managerial Retention Junior Middle Junior Middle Junior Converging Diverging Diverging Diverging Diverging Converging Converging Converging Converging Converging Converging (except Organization C) Diverging Configuration Diverging Converging Assimilation Converging Diverging (except Compensation factor) Diverging (except Compensation factor) Converging Diverging Assimilation and Configuration
3. Person Organization Fit
Assimilation and Configuration
Middle Junior Middle
Converging Diverging Diverging
Assimilation and Configuration
d. Counter Intuitive Findings The following counter intuitive findings (expected to occur by the common understandings of facts and reality but not otherwise confirmed by the research findings) were found from the study
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(i) In the case of Organization A, it was found that between junior and middle level managers within the same department / unit did not have a congenial relationship, whereas the same was not the case for the middle level managers in the same department / unit in Organization A or for the junior and middle managers in the same department / unit in other Organizations covered under this study. The followings could be the possible reasons for this incident (a) As Organization A was middle heavy organization (having maximum number of managerial employees at middle level compared to junior and senior levels of managerial strength), the number of junior level managers in each department / unit was few in numbers compared to the middle managerial counterparts. (b) As a result of the above, the issues and problems of junior managers were not properly represented to the top management of Organization A, and their presence was not felt much in the departments / organization. (c) This particular contextualized instance can be taken up as a phenomenon specific to the situation of Organization A that can be further generalized over the observations in organizations similar to Organization A in terms of structure, hierarchy, strength of manpower at different managerial levels, and work culture. (ii) In the case of Organization C, it was found that the middle level managers were extremely dissatisfied in terms of adapting and integrating themselves with the parent organizations norms, values, and practices in the post takeover situation. The followings could be the possible reasons for this incident (a) Although the parent company was widely regarded as one of the best employers in the country, this particular phenomenon of misfit can be specifically attributed to the fact of cultural disintegration (misfit between the two different organizational cultures in the post-takeover situation) between Organization C and its parent organization. (b) The parent organization appeared to have a formal boss subordinate reporting relationship, structured control, top down flow of business decisions without involving managers at other levels, inaccessibility of top management, and feeling of superiority over Organization C, which were contrary to the pre takeover organizational practices in Organization C. (c) So this aspect of cultural integration in the cases of organizational takeover and acquisitions has to be sensibly dealt with in order to gain the desired business outcome. (iii) In general, it is expected that managers mostly switch over jobs and change organizations for getting a substantial increase in compensation. Contrary to the same, during the interactions with the respondents and from the inputs of exit interviews in the four organizations it came out that many a times managers leave the organization and join others even at a similar compensation package. The followings could be the possible reasons for this incident (a) On the Job learning and developmental expectations of managerial employees especially at junior levels for all types of organizations, and in middle levels for private sector organizations are quite high compared to previous days. (b) As there are rapid changes in business environment, the development and application of new skills and knowledge have made imperative for managerial employees to keep themselves updated and employable. (c) The praise, recognition, best employee rewards for better performance from top management, departmental / unit heads, immediate supervisor play an important role in motivating and involving the junior and middle managers in the organization. So monetary compensation may not be the all and end all, and organizations in todays environment have to carefully practice the same at all levels of hierarchy. 6. Discussion and organizational implications (i) The analysis of the organizational social subsystem construct Supervisory Relationship led to the convergence that has emerged between the quantitative and qualitative findings in the four organizations implying that the junior and middle managers were not satisfied with their immediate supervisors with respect to the issues like sharing feedback and information with subordinates, fair evaluation of job performance, recognition for commendable job performance, cooperation and sensitivity to subordinates constraints (see Tables 1, 2, and 7). The unfavorable superior subordinate relationship in terms of these cited factors affected the turnover of managerial personnel in these organizations. Hence, it becomes imperative for the top management in these organizations to effectively build up the trust worthy and reciprocative relations between the subordinate and their immediate supervisors at the various levels of managerial hierarchy. HR specialists can take an active role in facilitating the job of top management, and thus strengthening the overall base of organizational social subsystem to mitigate managerial turnover. So far as the organizational social subsystem construct Peer Group Interaction was concerned, there was found convergence between the quantitative and qualitative findings in the four organizations (see Tables 1, 2, and 7) implying that the junior and middle managers shared congenial relations and interactions among the co-workers with
(ii)
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respect to the issues like getting cooperation, informal interactions and work socialization, group proximity and the like except to the case of Organization A, where the junior and middle level managers could not go along well with each other in the same department / unit. The commonality in terms of favorable relations and exchanges among the managers at hierarchical levels in three out of the four organizations studied conform to the collectivist nature of Indian organizations based on its national culture. Whereas, the hiatus (age, qualification, career orientation, group strength) between the junior and middle managers in Organization A did have an adverse effect on the retention of junior managers that impeded the business expansion and development plans of the company. (iii) For the organizational social subsystem construct Person Organization Fit, divergence had emerged for the interorganizational quantitative findings in the junior and middle managerial levels, whereas there was convergence for the qualitative findings among the four organizations on some common aspects (see Tables 1, 2, and 7). These findings imply that the integration of junior and middle level managers with their respective organizations varied in terms of inter-departmental relations, performance based recognition, encouragement of doing new things, decisionmaking process and open information sharing at organizational levels, the sensitivity and reciprocity of top management to people down the line. In a broader outlook of the situation, these factors indicate the misfit between the individual managerial expectations and organizational cultural attributes. The severity of the mismatch between the individual managers and the organization came out in an alarming manner for the middle level managerial personnel of Organization C, thereby underscores the immense significance of cultural integration in case of merger and acquisitions. The top management of the organizations along with the HR personnel has to develop a positive work ambience and organizational culture commensurate to the professional expectations of managerial personnel in the organizations. This initiative should form part of the companys talent retention and culture building strategies in the context of organizational competitiveness. The analysis of the organizational technical subsystem construct Managerial Job Characteristics established that both quantitatively and qualitatively the design characteristics of job assignments and their mode of executions at junior and middle managerial levels differed significantly, and moreover the managerial level wise inter organizational differences were distinct in the four Organizations (see Tables 1, 2, and 7). The differences were found out in terms of intra and inter unit job coordination, task specialization, pre-planning, complexity and flexibility, decision making authority, and teamwork; and no assimilated conclusion could be drawn in view of the observed variations from one organization to another. However, depending on the nature of business and the relevant organizational factors, the top management of the organization along with the HR and functional line specialists has to put effort to redesign the jobs of managerial personnel in order to make them more challenging, satisfying, and developing by nature. The analysis of the organizational technical subsystem construct Work Technology Support showed that both quantitatively and qualitatively there was no difference in terms of effectiveness, complexity, user acceptability, required operational skill, and flexibility of work technology at junior and middle level managers in the four organizations (see Tables 1, 2, and 7). This phenomenon of convergence can be safely attributed to the rapid computerization of managerial job assignments in areas of technical and non technical functions backed up by the ready availability of technological support staffs for any malfunctioning of office technology at workplaces. The analysis of the organizational technical subsystem construct Perceived Organizational Support delineated that divergent findings had emerged out of the qualitative analysis, implying significant differences among the four organizations in terms of workload, infrastructure, career development, compensation, support from seniors, other departments and top management, and work family balance. Whereas the aggregative result of quantitative measures showed that no significant difference in terms of organizational support facilities was found among the four organizations as well as between the junior and middle level managers (see Tables 1 and 2). The qualitative metasynthesis further established that all the above-mentioned factors differed from one organization to another except for the factor of Compensation in which the managerial employees of Organization A, Organization C, and Organization D univocally expressed dissatisfaction (see Table 7). Hence, in the absence of convergence between the quantitative and qualitative findings, the common as well as the organization specific factors related to the various support facilities that the managerial personnel receive at workplaces have to be analyzed in order to meet the managerial expectations and requirements in a more satisfying manner. The analysis of the exploratory research variable Managerial Employee Retention under this study indicated that divergence (except for junior level managerial personnel at qualitative comparisons) had emerged between the quantitative and qualitative findings in the four organizations (see Tables 1, 2, and 7). This phenomenon implied that the managerial retention at junior and middle levels differed significantly from one organization to another, and
(iv)
(v)
(vi)
(vii)
36
within each organization the retention varied between the junior and middle level managers and having less retention at junior level. The instances of convergence at the inter-organizational qualitative analysis signified that the turnover level of junior managerial personnel in all the four organizations were high, and therefore, the top management along with the HR professionals need to redesign the managerial retention strategies with special focus on retaining the junior managers working in various functional specializations. 7. Conclusion and limitations This study explored the organizational social and technical subsystem components of firm level managerial jobs as having an antecedent relationship to the retention of junior and middle level managerial personnel in organizations. The relationship of the organizational social and technical subsystem components to managerial retention was conceptualized with the help of the organizational hexad structural framework in order to highlight the simultaneous importance of both the subsystems elements as having the impact on managerial retention within the total organizational system. Supervisory relationship, peer group interaction, and person-organization fit were studied as part of the organizational social subsystem, and formed the social triad of the hexad structural framework. Managerial job characteristics, work technology support, and perceived organizational support were explored under the subset of the organizational technical subsystem, and formed the technical triad of the hexad structural framework (see Figure 2). This study was conducted in two phases. In the first phase, a questionnaire was circulated among a large number of junior and middle level managerial personnel in four Indian organizations belonging to various sectors in the industry. The designed questionnaire extracted the managerial responses about the conceptualized organizational social and technical subsystems factors related to the various aspects of their work, and the level of managerial retention at the various hierarchical levels in the organizations studied. The second phase of the study comprised the in-depth interviews and interactions with the select junior and middle level managers to elicit their experiences about the various social and technical subsystems components in these organizations, and how these factors have moderated the retention of managers at various levels of organizational hierarchy (see Figure 2). The empirical analyses of the responses obtained from the filled-up questionnaires established the acceptance or rejection of research hypotheses, which were made to compare the organizational social and technical subsystems components among the different organizations as well as between the junior and middle levels of managerial hierarchy. The responses compiled from the personal interviews were subject to content analysis followed by the framework of meta-synthesis in order to consolidate the findings. In the third step of analysis, the empirical and qualitative findings from the study were compared through their convergence or divergence that further led to an approach of assimilation or configuration or both for the purpose specifying the research cue from the study (see Table 7). Accordingly, it enables the organizational researchers and the organizational administrative personnel to make decisions based on either the common organizational findings, or the organizational specific findings, or a combination of both the domains. The analyses of the organizational social and technical subsystems elements in the context of managerial retention emphatically establishes the fact that some of the factors are found common to all the organizations, and some of them are specific to a particular organization. Hence, a practicable approach calls for a communion of these two subsets, and then making suitable managerial retention strategies that would take care of both the global (organizationally common) and local (organizationally specific) factors of the firm. The counter-intuitive findings cited in the paper signify the relevance of the organization specific connotations for the respective organizations decision-makers and planners. This paper has made an attempt to empirically and qualitatively diagnose the organizational sociotechnical system components, and further have been assessed as to having a moderating impact on managerial retention through a meta-analytical approach between the quantitative and qualitative findings. The academic value of this study lies in the conceptualization of the organizational sociotechnical system variables in the area of managerial retention, and the emphasis on the simultaneous functioning of all the subsystem variables as constituent of the total organizational system. The practical implication of this study lies in the consideration of all these organizational social and technical subsystem components while designing the managerial jobs in organizations, and also in formulating the effective managerial retention initiatives by the top management and the HR practitioners of individual firms. The major limitation of the study is in its generalization to a large number of organizations, as studying more organizations from other industrial sectors could enlarge the validity of the findings. Another limitation of the study lies in the internal nature of the organizational sociotechnical system components that may not fully explain some of the important external factors of managerial turnover like overall business environment, demand for and supply of quality managerial talents, and professional opportunities available in the industry / rival firms. Despite these limitations, this study offers a plausible explanation as to the role of maintaining the organizational social and technical subsystem factors in reducing managerial turnover in organizations, and delineates a structured framework for making inter-organizational and inter-managerial levels comparative assessment. It is believed that the approach and the analytical framework used in this study would encourage the academicians and organizational researchers to further extend this study in some specific area of any chosen organizational problem.
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Biographical notes Dr. K. Ghosh is presently working as an Assistant Professor in the area of organization behaviour and human resource management at Calcutta Business School, Kolkata, West Bengal, India. His research interest lies in human behaviour in organization, organization structure and dynamics, and management of change and development. Dr. S. Sahney is presently working as an Assistant Professor at Vinod Gupta School of Management (VGSOM), Indian Institute of Technology Kharagpur, West Bengal, India. Her research interest lies in organization behaviour, consumer behaviour, services marketing, and quality management.
Received April 2010 Accepted May 2010 Final acceptance in revised form May 2010
MultiCraft
Human resource development in Arab organisations: The case of Jordanian organisations

I. I. Altarawneh
College of Business and Economics, Al-Hussein Bin Talal University, P.O. Box 99, Ma'an JORDAN, Postal code: 71111. E-mail: dr.ikhlas@ahu.edu.jo, ikhlas2010@yahoo.com, Tel: + 962777297323, Fax: +96232179050
Abstract The insufficient supply of competent, educated and trained people, especially managers, is one of the most critical features of developing countries including Arab countries, which has led Arab governments and organisations to pay more attention and efforts to Human Resource Management (HRD). However, HRD activities in many Arab organisations face a lot of problems and obstacles as they have been influenced by socio-cultural factors resulting from Arab culture. This study sought to investigate the current HRD problems and challenges in Jordanian organisations and to suggest practical solutions for HRD problems in these organisations. A self-administrated structured questionnaire was constructed based on previous studies to capture data from 170 HR\personnel managers from 54 large Jordanian organisations. The results of the study showed that although all Jordanian organisations have Human Resource Management (HRM)\personnel departments or sections, HRD confronted many challenges, these were: difficulties to evaluate the outcomes of HRD activities; sending inappropriate employees to the HRD activities; lack of long-term plans for HRD; lack of senior line managers partnerships; high cost of HRD activities; inaccurate training need analysis; and poor co-operation and co-ordination between the various departments and the HRD department/division. The study has made significant contributions to the knowledge at academic and practical levels as an important exploratory study that conducted in the context of Jordanian organisations where there is a real need for many research works to be conducted in HRM/HRD issues. Keywords: Human resource development, human resource management, challenges, Jordanian, organisations 1. Introduction Much attention has been given to the value of Human Resource Management (HRM) activities, particularly Human Resource Development (HRD), which is responsible for building skilled, qualified and capable people and responsible for creating a learning culture that helps organisations to improve their performance and adapt to any new change. Many authors argue in order to deal with the continuous environmental challenges; organisations must understand the vital role that learning and development play in ensuring their survival. Therefore, every organisation must recognise the importance of developing the knowledge, skills and abilities of its employees (Mondy et al., 1999; Baum and Szivas, 2008; Liu and Wall, 2005). This requires serious consideration to be given to HRD which, in todays changing world, is seen as fundamental to the evolution of a flexible, competent workforce (Nolan, 2002; Acton and Golden, 2003; Chen and Klimoski, 2007; Baum and Szivas, 2008; Iatagan et al., 2010). Hughes et al. (2004) and Iatagan et al. (2010) argue that there has been renewed interest in the importance of education and training in furthering the goals of economic progress, fuller employment and social integration. This resurgence of interest coincides with a new emphasis on life-long learning, both responding to rapid changes in the organisation and technology of economic activity as well as increasing uncertainty and flexibility in labour markets. HRD is supposed to be the most crucial factor facing development in the third world. Therefore, Arab organisations and governments have recently paid more attention to HRD and HRM as they recognised that achievement of modernisation, development, organisational effectiveness, competitiveness and globalisation required, in addition to the capital funds and government commitment, a well-qualified and skilled workforce (Atiyyah, 1993; Al-Madhoun et al., 2003; Altarawneh, 2009). The insufficient supply of competent, educated and trained people, especially managers, is one of the most critical features of
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Altarawneh / International Journal of Business, Management and Social Sciences, Vol. 1, No. 1, 2010, pp. 41-54
developing countries including Arab countries, which has led Arab governments and organisations to put more efforts to management development (Atiyyah, 1993; Al-Madhoun et al., 2003). In Jordan, HRD has been a subject of increasing interest and debate in recent years. There is an obvious continuous change nowadays in Jordan toward more privatisation, globalisation and more direct foreign investment. This change has required more attention to managerial practices in general, and to HRM and HRD in particular, to improve the Jordanian workforce (Altarawneh, 2010). However, the literature review shows that HRD activities in many Arab organisations are not managed or conducted in a professional manner, and that managerial functions including HRD have been influenced negatively by socio-cultural factors resulting from Arab culture. In Arab organisations, HRD has been influenced by Arab executives who work within a social structure where family and friendship play important roles in their management style and leadership. Therefore, there is a conflict between what should be done relating to HRD and what is constrained by the organisational culture (Bahar et al., 1996; Taylor, 1996; Abdalla and Al-Homoud, 1995; Wilkins, 2001; Altarawneh, 2009). In addition, the literature review also shows a lack of relevant studies in the field of HRD and HRM practices and management, however, there were some studies in Arabic language, which revealed the real need for more studies. This study therefore outlines a research paper that aims to explore the current HRD problems and challenges in Jordanian organisations, which could affect the effectiveness of HRD activities; also, it aims to seek practical solutions for HRD problems in Jordanian organisations. The present study is expected to contribute to the knowledge by being an exploratory theory-building study designed to explore the current HRD problems and challenges in Jordanian organisations, and also by drawing its sample from Jordan, where there is a truly need for more research works to be conducted and many corrective decisions are needed related to HRM and HRD issues. 2. Literature Review 2.1 HRD Definition and Importance HRD is an important function of HRM, it concerned with planning and managing peoples learning. HRD aims to make learning more efficient and effective; learning is either education for life or training for work. HRD, as a technical term, was coined by Leonard Nadler in the late 1960s and was defined originally as a series of organised activities conducted within a specified time and designed to produce behavioural changes (Walton, 1999: p.57). Nolan (2002) argues that HRD literature reveals a great many attempts by authors to define HRD in terms of what they perceive as its key conceptualisations. Attempts thus far have been varied, reflecting the diverse academic and socio-political backgrounds of HRD scholars. Thus, HRD could be defined in many different contexts and contains wide ranges of different and complex activities, such as education, development and training (McCarthy et al., 2003). HRD is defined as a comprehensive discipline that utilises well-qualified individuals in HRD activities that include Training and Development (T&D), career planning and performance appraisal. HRD focuses on the acquisition of the necessary skills, knowledge and attitudes essential to facilitate the achievement of employees career goals and corporate objectives (Stone, 2002; Willis, 1990; Huhtala, et al, 2003; Gong, et al., 2009). In addition, McCarthy et al. (2003), Chen and Klimoski (2007) and Costantini and Monni (2008) argue that HRD is more frequently understood and considered, as an important interventions to facilitate and support training processes in organisations and contribute to organisational learning processes. Specific dimensions of this superior role include enhancing the learning capacities of employees; developing the impression that learning is a shared responsibility; viewing learning processes as a part of everyday working; fostering conditions which facilitate organisational learning. In a similar vein, Garavan et al. (1999) assert that HRD is concerned with identifying and enhancing the core competencies required at each level to meet the environmental challenges and changes. It is also concerned with selecting the best delivery systems designed to enhance human resource competencies, organisations, and individuals growth. HRD focuses on the management and delivery of training activities within the organisations. Therefore, it consists of a set of generic activities associated with learning and training. Walton (1999), Luoma (2000), Burrow and Berardinelli (2003) argue that HRD plays different roles within organisations. Recruiting and retention of high quality people and organising them effectively. Defining and measuring levels of performance of the existing and long serving employees. Analysing job contents in relation to the organisations objectives. Identifying training needs. Planning for, and providing, a T&D programme to improve current job performance and enhance individual careers and personnel growth. Helping employees to manage their careers and encourage them to accept changes. Creating an organisational capability that contains a manageable behavioural pattern that originates from the organisation-specific competencies of individuals combined with the organisation structure and process in a manner, which creates both uniqueness and value to customer. Creating, providing and enhancing an atmosphere or culture that facilitates an organisations learning, innovation and changes. Moreover, there are many reasons that make HRD a very important function within an organisation. According to Garavan et al. (1995) sometimes it is difficult to find or recruit skilled, competent and experienced people; therefore, organisations need to
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develop a flexible, adaptable and skilful workforce. In the same vein, Read and Kleiner (1996), Acton and Golden (2003), Chen and Klimoski (2007) and Costantini and Monni (2008) contend that advances in technology and knowledge are rendering many traditional employees skills obsolete, while simultaneously developing needs for new ones that make T&D necessary, not only for individual growth but, also, for organisational growth. 2.2 HRD Main Activities HRD contains three main activities, these activities are: Training is a planned process to modify attitude, knowledge and skills through learning experience to achieve effective performance in an activity or range of activities (The Manpower Services Commission, 1981). Development is "the growth of realisation of a persons ability, through conscious or unconscious learning. Development programmes usually include elements of a planned study and experience and are frequently supported by a coaching or counselling facility" (The Manpower Services Commission, 1981). Education is activities, which aim at developing the knowledge, skills and understanding required in all aspects of life, rather than knowledge and skills relating to only a limited field of activity. The purpose of education is to provide the conditions essential to the young people and adults to develop an understanding of traditions and ideas influencing the society in which, they live and to enable them to make a contribution to it (The Manpower Services Commission, 1981). The distinction between training and development is that training is concerned with enhancing and improving individuals skills, knowledge, behaviour and attitudes in order to be able to conduct their current job effectively, thus, improving individuals on-thejob performance. On the other hand, development activity concerned with developing individuals skills, knowledge, attitudes and behaviours in order to be able to conduct their future job effectively. Nevertheless, although training is concerned with current or present jobs its benefits may continue throughout the employees entire career and helps in preparing them for future promotion. Werther and Davis (1996) argue that the distinction between training (now) and development (future) is often blurred and primarily one of intent, therefore, they are treated as being one activity. The distinction between training and education is that training is a kind of learning by doing, while education is learning without doing. In education, people learn something, but it is not necessary that they apply or transfer what they learn, while, in training, people do/ will or are supposed to apply or transfer what they learn into their workplace, not just keep it in their mind. Practically, there is a difference between when you know about something and when you are able or willing to do that thing. In addition, education often takes place in classrooms and involves transferring knowledge through using formal methods, such as lectures and directed discussion. Participants gain new information but the acquisition of new skills and knowledge designed to enhance profitability is not the intended outcome. In an organisational context T&D is the most important element of HRD, it concerns increasing, improving, enhancing and modifying employees skills, abilities, capabilities and knowledge, thus, they will be able to conduct their current and future jobs effectively, thereby increasing individuals and organisations growth and performance. According to Mondy et al. (1999: p.254), T&D is a planned, continuous effort by management to improve employee competency levels and organisational performance. Therefore, T&Ds primary traditional role has been to ensure that the workforce is provided with the knowledge, skills and attitudes necessary to perform a given function well. Moreover, it aims to: develop employees skills and abilities to improve their performance familiarise employees with new systems, procedures and methods of working help employees and new starters to become familiar with the requirements of particular jobs in the organisation Help the organisation to improve customer service, satisfaction and total quality in the organisation. 2.3 Requirements for Effective HRD Management The field of HRD has undergone changes that reflect dynamic factors in the corporate world. HRDs objectives continue to shift from a focus on programmed instruction (behavioural and task analysis) to performance-system analysis. T&D, which is considered the most important activity for HRD in organisations, is considered as an important and crucial activity for any organisation looking for improving its productivity and competitiveness. The need for T&D has increased dramatically due to the rapidly expanding use of technology within industries and businesses and the continuous threats of knowledge and technology obsolescence. In addition, the growing emphasis on quality and customer satisfaction makes organisations recognise the importance of T&D to job satisfaction, productivity and overall profitability. Despite the importance of HRD activities, the attention given to HRD and the motivation to provide T&D varies from one organisation to another. In this regard, Read and Kleiner (1996) argue that a few organisations are committed to enhance employees skills and competences, other organisations conduct training to meet current job requirements. Unfortunately, many organisations conduct training simply for appearances sake (Read and Kleiner, 1996; Altarawneh, 2009; Liu and Wall, 2005). In addition, some organisations consider training as a very formal process; they provide employees with ongoing T&D programmes, and other organisations bring in outside consultants to conduct employee-training sessions. Acton and Golden (2003); Costantini and Monni (2008); Iatagan at al. (2010) contend that organisational commitment to the T&D of its employees positively influences employees satisfaction, leading to an increase in employee motivation and an increase in retention. Effective HRD management and successful T&D programmes require a supportive culture that encourages and facilitates innovation, change and creativity, and emphasises the importance of employees' improvements. It also requires top and line managers' commitment, leadership and appreciation of the importance of HRD in achieving the organisations objectives and
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strategies. In Arab organisations, this supportive culture is rarely found; instead, there is an organisational culture in which innovation, creativity and change are not encouraged activities, rather mostly punished, change is always resisted rather than encouraged (Altarawneh, 2005; 2009; Atiyyah, 1993; Al-Madhoun et al., 2003; Al-Tayeb, 1986; Sadiq, 1980). According to Motwani et al. (1994), Acton and Golden (2003) effective HRD programmes require the dedicated support of top management. Such organisations provide training mapped to employee and organisational needs and provide training at a proper time for their employees. Such organisations that commit finance, effort and time to employees T&D programmes are most successful at maximising the effectiveness of their T&D programmes. Yet not all organisations show the same commitment to employee training. Thus, commitment means allocating sufficient budget, effort and time to HRD activities. Read and Kleiner (1996) also found that the largest successful American companies, such as General Electric, US Robotics, Motorola, WH Brady and Texas Instruments, invest heavily in training because they recognise its importance to their productivity, quality and competitiveness. For example, Motorolas employees get at least 40 hours a year; cost estimates for this level of training are $600 million a year. In the UK, many organisations are committed to develop their peoples skills and capabilities. Investors in People is one standard for benchmarking an organisations HRD T&D programmes. It is based on the idea that people are the organisations key asset, thus trained, motivated and skilled people would help the organisations to achieve their objectives effectively and efficiency. Moreover, Pettigrew et al. (1989) identify a number of factors that influence T&D effectiveness, these factors relate to the business strategy, the external labour market needs, and internal actors and systems, which include factors such as training philosophies, systems, management organisation and external supporting and funding for training. In addition, Hussey (1985) identifies three important matters related to HRD that affect T&D activities and programme an integral strategy, top management commitment and an organisational culture. Armstrong (2003) adds another theme: a coherent and flexible training approach. Garavan et al. (1995) identify eight contextual factors that affect the form of HRD function and the type of activities it engages in: the external environment and organisation stakeholders; culture; technology; structure; change; size and power. For effective HRD programmes, they should be based on systematic approach, rather than being piecemeal, fragmented, isolated short programmes developed to meet specific short-terms needs. Armstrong (2003) argues that T&D will fail to obtain its objectives and affect organisational performance if it is based on a piecemeal basis and is used in isolation without the backing of top management. A systematic training approach includes some important stages or sub-processes: development of Training Needs Assessment (TNA) in order to send the appropriate employees who really need to be trained; formulating T&D objectives; designing and implementing the T&D programme; evaluating the effectiveness of the programme (Goldstein, 1993; Kuber and Prokopenko, 1989). In addition, Garavan (1991) identifies nine key characteristics or criteria for Strategic HRD, which relate to the main organisational factors influencing T&D effectiveness. All are important in their own right, but they are interrelated and integrated together. Integration with an organisations missions and goals: This criterion implies integrating HRD strategies within an organisations corporate strategy and objectives. It also stresses that HRD is viewed as a strategic lever in the organisation, as a means of helping the organisation to implement and shape its strategies. HRD policies and plans must be formulated, derived from and integrated with business plans and policies: HRD should be considered an integral part of an organisations investment plan. This integration helps to provide the organisation with the competencies required to implement the organisations strategies. Top management support and commitment: The effectiveness of HRD depends on top management and line managers support and understanding of what HRD programmes hope to achieve and their potential benefits. Top manager roles as key stakeholders, should be active rather than passive, supportive and involved (Garavan, 1991; Lee, 1996; Harrison, 1997; Costantini and Monni, 2008; Iatagan at al., 2010). To obtain top management support and commitment, HRD professionals should demonstrate clearly the benefits of T&D on the individual and organisational growth and performance. Line management commitment and involvement: Line managers are key stakeholders and actors; therefore, they should be involved and work in partnership with HRD specialists on both operational and strategic issues. In fact, mostly, line managers do not fully understand the importance of HRD activities, because training means those trainees (their employees) will leave their work and duties to attend the training programmes for a while. Therefore, it is very important to convince line managers of the importance of HRD activities T&D in improving the work when the employees come back to their work after training (Wognum, 2000; Chadwick, 2005; Gong et al., 2009). HRD must view itself as a wider package of HRM strategies: HRD strategies, policies, plans and activities should be derived from and linked to HRM strategies and being in harmony with HRM activities. This fit between elements of HRM is described as horizontal integration (Guest, 1997; Garavan, 1991; Harrison, 1997; Werbel and DeMarie, 2005). Recognition of organisational corporate culture: HRD requires an appropriate culture that views it, as a source of achieving the organisations objectives by developing employees skills, attitude and behaviour, rather than, as a cost for which tangible and direct outcomes are not evident. Two other important cultural aspects that shape and influence corporate education and training practice are innovation and resistance to change. So, any organisation that innovates and has less resistance to change culture invests more in T&D. HRD should create a match between an organisations culture and strategy. HRD should influence and change the corporate culture, rather than simply maintain it, this is a kind of double loop learning (McCracken and Wallace, 2000). It is suggested that learning can be both a product of culture, as
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well as a means of transmitting and changing culture. Therefore, any organisation that has a crucial role for HRD in influencing culture certainly has a learning culture (Garavan, 1991; McCracken and Wallace, 2000). 2.4 HRD in Arab Organisations The insufficient supply of competent, educated and trained people, especially managers, is one of the most critical features of developing countries, including Arab countries, which has led Arab governments and businesses to pay more attention and efforts to management development (Atiyyah, 1993; Al-Madhoun et al., 2003). Under European colonial rule, Arab managers learned about modern management principles and practices. However, after independence they suffered from different problems relating to the lack of talented, competent, well-educated, efficient and trained people and the lack of professional and managerial staff, which have become critical factors of development in these countries (Al-Faleh, 1987; Atiyyah, 1993; Altarawneh, 2009). According to Atiyyah (1993), some Arab countries, including Jordan, rely heavily on the indigenous managerial workforce, while the oil-rich Gulf States tend to recruit large numbers of foreign qualified staff, including managers. This, in turn, creates another problem regarding whether western managerial theories, principles and practices could be applied in Arab organisations or not. Many researchers, training specialists and managers in the Arab states describe training effectiveness in their countries as being generally "low". That refers to many reasons and implies doing so many things to handle T&D problems in Arab organisations. Moreover, Atiyyah (1993) contends that management development in the Arab countries is at the low commitment low activity stage due to the lack of recognition of its contribution in improving organisational performance. The lack of wellqualified, educated and trained managers, in addition to the lack of professional managerial staff, has affected development projects and activities negatively. Consequently, individuals with minimum qualifications and experiences occupy very professional important jobs. (Al-Tayeb, 1986; Sadiq, 1980). HRD faces different problems and obstacles in Arab organisations, in this regards, Atiyyah (1993) argues that the effectiveness of most training programmes in Arab countries is generally low, due to the inadequate need analysis or assessment, irrelevant curricula, un-participative training techniques and lack of reinforcement. Moreover, training is not considered an important function to be conducted regularly; instead, it sponsors symposia, occasions or events in which a number of theoretical papers on current topics are presented to a large invited audience. In Jordan, little literature was found relating to the management T&D; however, Al-Tayeb (1986) highlights the following T&D problems and obstacles in Jordan: theoretical approach in training programmes; relying on lectures and group discussion as primary T&D methods and techniques; lack of top management support and partnership; and huge workloads because of over centralisation, the need for competent trainers and the scarcity of training and scientific material. Moreover, Al-Hadad (1996) sets out some important points regarding management T&D in Arab organisations. Most training programmes are described as the widely used approach, because they are applied by several organisations without distinction. Organisations normally tend to adopt the training-related-to-cost approach. Thus, they reduce training costs without giving any attention to the quality of the programme. The training function is just a group of lectures followed by certificates rather than a complete system and systematic process. In addition, Durra (1991) contends that the training institutes have failed to realise any significant change in the attitudes and practices of Arab managers, and refers to a number of obstacles: Lack of a comprehensive, well-integrated national plan for administrative development programmes. Lack of co-ordination among agencies. Lack of top management leadership and commitment. Lack of well-experienced personnel, trainers and consultants who can plan, implement and evaluate these administrative reforms programmes. Altarawneh (2005), in her study for the effectiveness of T&D programmes in Jordanian banking organisations found that in the majority of the organisations, there is an absence of systematic employee training needs assessment and of effective procedures for evaluation; the most commonly used delivery method is off-the-job training, namely lectures, seminars and case studies. T&D is not characterised by strategic human resource development criteria (SHRD) and it plays a reactive rather than a proactive role in these organisations. T&D faces many problems: lack of motivation among employees to attend T&D programmes; poor training planning in terms of contents and delivery methods; sending inappropriate persons to the training programmes and lack of on-thejob training. Another important problem regarding T&D situations in Arab organisations is that training is considered as a stand alone process with no ties or links to other organisational parts of the total development system (Abdalla and Al-Homoud, 1995). In some Arab organisations training time is viewed as vacation or leisure time for trainers who leave their current jobs for the lecture room or a game for fun time. This means that Arab organisations do not consider the strategic importance of T&D functions to achieve organisations corporate objectives and strategies. In fact, T&D is not taken seriously in many Arab organisations, particularly government sectors. Thus, the benefits of T&D is underestimated or not appreciated. T&D is viewed, at most times, as a waste of time and money (Al-Humoud, 1989; Altarawneh, 2005). There are so many important reasons behind the ineffective
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T&D programmes in Arab organisations. According to Al-Fathaly and Chakerian (1983) and Al-Tayeb (1986), these are diverse attitudes among Arab managers; lack of competent and qualified trainers; inadequate facilities; and non-specific policies. Successful T&D programmes require a supportive culture that encourages and facilitates innovation, change and creativity, and emphasises the importance of T&D. It requires top management commitment, leadership and appreciation of the importance of T&D in achieving the organisations objectives and strategies. T&D needs to be considered as an important organisational function rather than a stand-alone process or occasionally, an event held as a period of fun or leisure. T&D should be integrated with the overall business strategies and functions. Therefore, many concepts and practices should be activated and developed in Arab organisations, such as work force planning, performance appraisal, job analysis and description. In this regard, Hussey (1985) and Gong et al. (2009) emphasises that training should not be for the sole improvement of the individual with the hope that it will benefit the organisation; rather it should be originally for the benefit of the organisation. T&D should also be viewed as an integral part of management work. Thus, it should consider individual, organisation and task needs and requirements; it should not conflict with the organisational policies and strategies, rather it should be part of them. Moreover, it should fit organisational and national cultural issues and factors. Jordan and other Arab countries share the same culture, social values and norms, religion and language, irrespective of the differences of political and economical issues. These socio-cultural factors influence managerial styles and practices, including HRD. Therefore, Arab managerial practices, including management T&D, are influenced by family status, tribal affiliation, religion ethic and rules and personal connections and loyalty. Kinship ties and personal contacts are highly valued in Arab managerial practices. Atiyyah (1993) argues that Arab managers spend their time or invest more in strengthening their bases within their organisations and cultivating their personal relations with their supervisors more than developing their competencies. Moreover, Abdalla and Al-Homoud (1995) argue that personal connection, nepotism, sectarian and ideological affiliation negatively influenced HRD effectiveness. Moreover, Al-Faleh (1987) summarises cultural influences on the Arab managerial styles. Organisations employees act with respect and conformity in the formal hierarchy of authority; an authoritarian management style is predominant. An organisation's members are motivated by affiliation and power needs rather than by performance objectives; hence, social formalities are very important. Managers show high commitment towards social obligation and objectives over business performance objectives. Kinship and friendships ties are very important for successful group and team working. Nepotism is regarded as natural and accepted. Managers view their organisations as family units and value loyalty over efficiency; also, they have strong adherences to the open-door tradition as an integral part of underwritten or informal organisational structure. Time and punctuality are of less concern than in western culture and managers rely on family and friends for getting things done within the organisation. A low trust climate and political gamesmanship characterises organisations, together with close information system. Many Arab researchers have argued that national culture has its effect on the individual, as well as on organisational performance in Arab organisations. Socio-cultural factors create concerns for the effectiveness of transferring western management T&D programmes into Arab organisations, which tend to concentrate on seniority rather than merit, reactive managerial style instead of being proactive. In addition, where nepotism and favouritism are the ways in which work is done rather than fairness, qualifications and work objectives. In this regard, Atiyyah (1993) argues that, in Arab organisations, behavioural changes directed to battle nepotism, favouritism, family power and authoritarian decision making and personalised management style should be encouraged. As has been shown, such cultural-social factors negatively influence managerial practices, including management T&D. That is when, for example, a training programme is designed and involves trainees who attend the programme, not because they need it, but because they are relatives or friends of the top or line managers or any of the HR staff (nepotism, favouritism and kinships ties and relationships). However, management development can play an important role in changing, or at least modifying, such bad practices resulting from socio-cultural factors, through concentration on good or health organisational attitudes and skills which are culturally supported and do not conflict with the social norms and values. 3. Methodology 3.1 Participants and Site Population of this study was all Jordanian organisations listed in Amman Stock Exchange (ASE) at the end of 2009 based on the following criteria: being domestic firm only, has in total 201 employees or more (large organisations according to AFM Dictionary (1993)*; has two or more HRM staff. However, in choosing the research participants, a purposive or judgmental sampling technique was applied in determining the participants that will best enable the researcher to answer the research questions, and to meet the research objectives. Thus, the questionnaire was distributed to HRM managers, HRD and/or T&D managers in each organisation since they are considered the most knowledgeable people in terms of HRM\HRD issues. The decision was made to include the whole population rather than a representative sample as the population was small. In total, 54 large Jordanian
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organisations listed in (ASE) were targeted, and 170 questionnaires were distributed, of those questionnaires, 110 were returned but 10 questionnaires were inappropriate for analysis.
*According to the AFM Directory (1993), organisation size is classified as follows: small- 50 employees or less; meduim-51 to 200 employees; large-201 or more employees
3.2 Procedure An initial stage of the study procedures was a personal visit to (ASE) in Jordan to get the organisations addresses. This was followed by personal visits to each organisations headquarter by the researcher to introduce herself and her study and to build a strong trust with them. This kind of visit is very important to build trust with participants and to encourage them to participate and to determine a deadline for completing the questionnaires. An informal or an unplanned discussion relating to HRD problems in Jordan accrued during these visits. Moreover, appointments to distribute the questionnaires were decided in these visits. It is important to mention that the questionnaire was distributed and collected by the researcher herself. According to Sekaran (2003) the advantages of this type of questionnaire are its ability to establish a good rapport with respondents, it motivates respondents, any doubt or questions about the questionnaire will be clarified, it is less expensive when distributed to group of respondents and it gains an almost 100 per cent response rate. At each visit, the researcher delivered the questionnaire to the participants offices to make sure that the questionnaire will be completed by them. A deadline for completing the questionnaire was identified by asking the participant when s/he would be able to complete it. The researcher left her phone number to call her when the questionnaire was ready to be collected. However, during the completion period the researcher phoned the participants to ask whether or not they had finished. 3.3 Measures A self-administrated questionnaire was constructed based on previous studies to explore HRD current situation and problems in Jordanian organisations. The questionnaire was pre-tested, modified, and used to capture data on a cross-section of HRD specialists in the Jordanian organisations. A piloting test was conducted in many stages by many people in different places (managerial academic staff from Jordan, T&D expertises and some of the actual participants). Based on the feedback from the pilot-test, the questionnaire was modified and a final questionnaire was developed. The questionnaire was translated to Arabic, the participants native language. The details items and scales are presented fully in the following points: General information and background: this section includes general questions about the surveyed organisations; questions that classify the organisations (size, sector, industry). It also includes questions for participants profile (participants' jobs, participants' qualifications and work experiences), and it asked whether the organisation has a particular department for HRM, and if the organisation has a particular department or section for HRD/T&D. HRD current challenges and problems: this scale contained 20 HRD possible challenges, it asked participants to indicate their agreements on those challenges in their organisations Five points Likert scale were used with responses ranged from 1= strongly disagree to 5= strongly agree. And finally an open ended question was added to explore other new barriers from participants' point of views and which do not included in the questionnaire.
The questionnaire was also subject to reliability analysis to measure Alpha Cornbach correlation coefficient, which was found to be (.9418) thus the conclusions of the questionnaire are considered reliable to the realisation of the study objectives. 3.4 Analysis Quantitative data analyses were used when analysing the study collected data. Descriptive statistics include frequencies, measure of central tendency (Mean) and measure of dispersion (Standard deviation) was the most appropriate statistic for analysing questionnaire questions. In addition, Kruskal-Wallis H test and Chi-Square were used to establish the differences among organisations. In addition, qualitative data analysis for the open-ended question was also used in this study; in particular, a content analysis was used. It started by categorising the data into meaningful categories, unitising the data, which is about attaching units of data to the appropriate category, or categories that were devised already. In addition, the researcher used many analytical methods such as summaries, self-memos and the researchers diary. 4. Results 4.1 Organisations and Participants Profiles Table 1 shows the results related to organisations and participants profiles. As it shown in the table, almost 40% of the participated organisations were from manufacturing industry, 36% were from service industry and 24% were from finance and banking industry. The results also show that all the participated organisations were large with average employees' number of 851 employees. Moreover, Table 1 shows that participants were from three groups: 58% of the participants were HRM/personnel managers; 28% were executive managers who were responsible for HRM and or HRD issues in their organisations, which means in some organisations, HRM issues are administrated by other departments in the organisations, rather than allocating a particular department for HRM. In addition, there were 14 top managers participated in this study as the people who were responsible for
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HRM/HRD in their organisations. This could be explained by the fact that in some organisations HRM is linked directly to and managed by the top management level The majority of the participants almost 76% hold bachelors degree, however, 31% of the participants hold non-managerial degrees. The average of their total work experiences were 13.4200 years. A Chi-square test was used to assess the differences among the participants groups in terms of their education level and it shows the following result (X2 =23.767, df=20, sig=.253, p<0.05), indicating for no significant differences among participants groups in terms of their educational level.
Table 1: Organisations and participants profiles
Organisations sector Finance and banking Service Manufacturing Total Participants job title HRM manager Personnel manager Executive manager Top manager Total Less than high school High school Diploma Bachelors Master PhD Total Business administration Accounting and finance Non managerial fields Total Structure of HRM Specific department Division within a department Unit Total Specific department Division within a department Unit Total Frequency 24 36 40 100 27 31 28 14 100 1 5 8 76 9 1 100 44 25 31 100 49 41 10 100 20 61 19 100.0 Percent 24.0 36.0 40.0 100.0 27.0 31.0 28.0 14.0 100.0 1.0 5.0 8.0 76.0 9.0 1.0 100.0 44.0 25.0 31.0 100.0 49.0 41.0 10.0 100.0 20.0 61.0 19.0
Participants education
Participants academic specialization
Structure of HRD
When they were asked about the structure of HRM in their organisations, as it shown in Table 1, 49% of the participants declared that they had a specific department called HRM/personnel, while 41% said that they had sections for HR/ personnel issues administrate by other departments. Chi-square test showed no significant differences among the participated organisations in terms of the structure of their HR. on the other hand just 20% of the participates declared that they had a specific department for HRD, while 61 said HRD is a division within departments in their organisations and 19 of them said HRD is a unit in their organisations. 4.2 HRD Current Challenges and Problems in Jordanian Organisations This part of the analysis presents the results related to the current HRD problems and challenges in Jordanian organisations, the factors that might impede the effectiveness of T&D functions and programmes in Jordanian organisations. Table 2 lists the questionnaire items related to HRD current challenges and problems, in addition to the means and the standard deviations for each items. The estimated Cronbach alpha reliability for this scale was high (.9418). As it shown in Table 2, the obvious HRD challenges, those that had an average agreement of (3.6 or more) were: difficulties to evaluate HRD training and development outcomes, with an average agreement of (4.8900); sending inappropriate persons to the HRD training programmes (4.2500); lack of on-the-job training (4.2300); lack of long-term plan for HRD (4.2000); some senior managers do not believe in the importance of HRD activities (3.9400); high cost of HRD training and development programmes with (3.8600); inaccurate training need analysis (3.8100); discrepancy between the provided training and development and job skills (3.7200) and poor co-operation and co-ordination between the various departments and the HRD department/division (3.6700) The Kruskal-Wallis Test was applied firstly to see if there is a significant difference among the participated organisations in HRD problems and challenges in relation to their sectors. The result of the Kruskal-Wallis Test, shown as follow (X2 =10.397, df=2, sig=.006, p<0.05) which indicates that HRD current problems and challenges vary across the organisations in relation to their sectors, ranking the means of Manufacturing and services sectors in the first and second positions in terms of HRD challenges. In addition, the Kruskal-Wallis Test was applied test also to test the significance difference among organisations in terms of HRD current challenges in relation to the HRD structure in those organisations. The result of the test was as follow: (X2 =6.169, df=2, sig=.046., p<0.05), indicating for a statistical significant differences among organisation in relation to the HRD
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organisational structure ranking the mean of organisations in which HRD is a unit within a section in the first rank the mean of the organisation in which HRD is a section within a department in the second rank in terms of HRD current challenges and problems. Table 2: HRD current problems and challenges in Jordanian organisations
Difficulties to evaluate HRD training and development outcomes Sending inappropriate persons to the HRD training programmes Lack of on-the-job training Lack of long-term plan for HRD Some senior managers do not believe in the importance of HRD activities High cost of HRD training and development programmes Inaccurate training need analysis Discrepancy between the provided training and development and job skills Poor co-operation and co-ordination between the various departments and the HRD department/division Lack of motivation among employees Low motivation to undertake training and development through lack of support (family, friends, etc) The organisation does not link HRD programmes with its business plan Lack of professional in the HRD department Lack of private training centres management does not support HRD activities and programmes Poor training planning in terms of training content and methods Poor quality training programmes Insufficient time and budget to execute HRD training programmes Work environment does not support new behaviours learned in training and development programmes Employees can not implement their new ideas, skills and knowledge Valid N (listwise) N 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Mean 4.8900 4.2500 4.2300 4.2000 3.9400 3.8600 3.8100 3.7200 3.6700 3.4400 3.4000 2.9800 2.9700 2.9500 2.9100 2.9100 2.8100 2.7000 2.6800 2.5600 Std. Deviation 1.07210 1.28025 1.28343 1.29490 1.22944 1.15488 1.17804 1.20336 1.28279 1.19189 .98473 1.25513 1.29845 1.20080 1.29564 1.24150 1.22016 1.20492 1.18816 1.07609 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Note: 1=Strongly Disagree,2=Disagree,3=Undecided, 4=Agree, 5=Strongly Agree
1-2.5= disagree, 2.6-3.5= undecided, 3.6-5 =agree 4.3 A Qualitative Analysis for the Current HRD Problems and Challenges An open-ended question was added at the end of the questionnaire as mentioned before for further vindications for HRD challenges or problems in the participated organisations. Interestingly most of the participants answer this question fully; they shed the light on many important issues related to HRD in their organisations. In addition, they suggest some important points to improve HRD activities in their organisations. The key problems associated with the current HRD which emphasized by the participants were re-categorized as follows: poor qualities of external HRD activities, lack of HRD professionals especially trainers; lack of employees motivation to attend HRD activities. 1. Poor qualities of external HRD activities: it was found that off the job external T&D programmes was the most commonly used T&D approach in most Jordanian organisations. It was emphasized by many participants that the times of external T&D programmes were not suitable or appropriate for the trainees, as most T&D programmes are conducted in the afternoon after finishing work, which means that T&D is conducted at a time when employees are tired and exhausted, after a hard workday. In this context, two participants described their own experiences with some external T&D programmes conducted by external providers by saying: I attended some T&D programmes conducted outside the bank and I found these lectures are boring. Trainers did not pass the core points they were not able to conduct these programmes well, thus I think the whole programmes were a waste of time. In the past I have attended many T&D course conducted by external centers in Jordan. I found most of them repetitive, boring and a waste of time and money. They were lectures where someone talked about something he did not know or practise. So I stopped attending such programmes. Lack of HRD professionals: more that 10 participated top emphasized this fact. Three of the HRD managers highlighted an important point regarding the lack of T&D programmes conducted to develop trainers. When designing some T&D programmes we could not find experts experienced trainers easily; we spend a long time and much effort finding those trainers. Thus, there is difficulty in finding good trainers so we mostly depend on universities lecturers.
. 2.
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Most of the external and the internal trainers in the banks depend on themselves to educate themselves; so it is all about self development or self-education. In addition, they are not well qualified to do their job, they were told when they were employed that they were going to be developed and trained through doing their work. 3. Lack of employees motivation to attend HRD activities: some of the participants argued that one of the obvious problems is that their employees do not like to attend HRD programmes; they experience low employees motivation for T&D. Some employees look at T&D as punishment for not doing their work well. In this context, one top manager said T&D is not feasible. It might be because of its time (afternoon) when the employees were so tired. That is wrong, but nothing to do with us; it all depends on the external designer or centers that set the time of T&D.
From the researchers own observations and conversations with many HR\personnel managers, it seems that employees do not like to attend HRD programmes because these programmes are not linked to their real needs. Sometimes employees are nominated to attend some programmes as a kind of punishment; the term punishment is used since they view it like this. In addition, this term used by some of the questionnaire participants because most of HRD programmes are conducted in the afternoon and because employees attend these programmes without getting any promotion or reward. 5. Discussions The primary purposes of this study were to explore the current HRD challenges and problems in Jordanian organisations and to propose practical suggestions to tackle HRD problems and challenges. However, in order to view the full picture of HRD in Jordanian organisations it was important to explore the characteristics of participated organisations and the participants. The results show that the participated organisations were from three different important industries in Jordan: finance and banking, service and manufacturing. All of those organisations were large domestic companies with an average number of employees of 850 employees; therefore, we expect a better management for HRD and HRM in general. In addition, the participants who suppose to be the people who are in charge of HRD in their organisations were within middle and top management levels. Of course, most of them were HR\personnel managers, however, 28 were other executive managers and 14 were top managers who were also responsible for HRM/HRD in their organisations. This indicates that HRM issues are managed by some other organisations departments rather than allocating a specific department or section for HRM/HRD in these organisations. In many cases the reasons for this is to save the cost of having a particular department or section for HRM. The study's participants were well educated with average work experiences of 13 years, although 31% of them hold non-managerial degrees, which might question their abilities to manage and conduct HRM\HRD activities. The above findings might explain the lack of well-qualified, experienced HRD people who need to be specialized, and know how to conduct effective HRD programmes. These might be the reasons behind the poor training need assessment, poor T&D programme and the reasons for asking external providers to conduct HRD T&D programmes for them. These findings, relating to the lack of well-experienced, qualified T&D professionals, are also supported by the findings of many other Arab researchers and authors. Al-Faleh (1987), Atiyyah (1993), Al-Tayeb (1986), Durra (1991) and Altarawneh (2005) found that the lack of well-qualified, experienced managerial professionals has affected development projects and activities negatively, which are critical factors of development in these countries. Importantly, the results of this study also showed that the dominant HRD problems in the Jordanian organisations were: Difficulties to evaluate the outcomes of HRD activities, this could be explained by many factors. These factors are: HRD benefits accrue over a long period of time; there are many other intervening variables that could influence employees performance; most HRD outcomes are subjective, complex and difficult to be measured quantified, such as employee satisfaction, commitment, motivation, changes of behaviour and attitudes, etc. (Shandler, 1996; Redshaw, 2000; Burrow and Berardinelli, 2003). Sending inappropriate persons (employees) to the HRD training programmes that could be explained by another important problem related poor training needs assessment, which could lead to inappropriate trainees' nomination. Moreover, it was found that the lack of on-the-job training and the lack of long-term plans for HRD were also challenges confronting HRD. That is due to the lack of professional HRD specialists in the organisations. Another important challenge was that some senior line managers do not believe in the importance of HRD activities. Line managers should be involved in many HRD policies, programmes and strategies. As mentioned before, effective HRD programmes require top and line management support, commitment and leadership. Thus, line managers should participate in determining the training objectives and evaluation criteria. These occur when HRD staff is consulting with line managers, they may ask them questions such as, what they want to improve, how they will recognize success and how they will measure this success. High cost of HRD programmes. Cost is one of the most important criterion on which Jordanian organisations depend when comparing and choosing between in-house and off-house training (Altarawneh, 2005). That is clear since most of the participants agreed that the high cost involved with HRD activities is one of the most important problems and challenges. In this context, Al-Hadad (1996) set out some important points regarding the management of T&D in Arab
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organisations; one is that organisations normally tend to adopt training-related-to-cost approach. Thus, they reduce training costs without giving any attention to the quality of the programme. Other revealed problems were inaccurate training need analysis, which refers to the lack of systematic approach for managing HRD activities; discrepancy between the provided training and development and job skills, which could be also explained by the poor training need analysis and poor co-operation and co-ordination between the various departments and the HRD department/division. The qualitative data gathered have supplemented the quantitative data mentioned above and there was a convergence between the quantitative and qualitative findings related to HRD problems and challenges. This could be explained by the fact that the participants who answered the questionnaire were the same participants who answered the open-ended questions. However, the qualitative data shed the light on the following presented HRD problems and challenges, which were reorganized as sub sections presented below: Problems related to the current HRD approach, such as lack of on-the-job training and overemphasis on off-the-job training, the inappropriate allocated time for training which, according to most of the top managers, in addition to many of the questionnaire participants cause many other problems related to employees and their enthusiasm to attend T&D programmes after work or at weekends. Moreover, there are problems related to trainers who were described as good lecturers, rather than good trainers, who are good at talking not doing. Problems related to the lack of particular HRD departments or sections and the lack of professional HRD staff. Problems related to the employees which include many other related problems, such as inappropriate T&D time for many employees, which makes them do not like to attend any T&D programmes and overload of work they do every day, which makes attending T&D programmes in the morning impossible. These findings are consistent with those of other Arab researchers. In this regard, Al-Tayeb (1986) points out that problems and obstacles of the HRD T&D programmes in Jordan are the theoretical approach; relying on lectures and group discussion as primary T&D methods and techniques; lack of top management support and partnership; huge amount of workload because of over centralization; need for competent trainers; scarcity of training. Moreover, Al-Ali (1999) argues that T&D obstacles in Kuwaiti organisations were related to insufficient investment in T&D, lack of a systematic evaluation process and lack of strategic linkage between organisations strategies and the T&D function. In his study, Albahussain (2000) also found that HRD T&D in Saudi organisations faced many problems, such as high cost involved in T&D programmes; lack of private specialists T&D centre; lack of long-terms plans for HRD; lack of professionals within T&D departments or units. 6. Conclusions This study examines current challenges and problems confronting HRD management and activities and which could affect the effectiveness HRD activities and programmes. In addition, the study aims to propos practical suggestions to tackle HRD problems and challenges and to contribute to the understanding of effective HRD management The study revealed that although all Jordanian organisations have HRM\personnel departments or sections, HRD function which is considered as one of the most important HRM functions confront many challenges in these organisations. These challenges were: difficulties to evaluate the outcomes of HRD activities.; sending inappropriate persons (employees) to the HRD training programmes; lack of on-the-job training and lack of long-term plan for HRD; some senior line managers do not believe in the importance of HRD activities; high cost of HRD training and development programmes; inaccurate training need analysis; discrepancy between the provided training and development and job skills; and poor co-operation and co-ordination between the various departments and the HRD department/division. On the other hand, the qualitative results revealed other important HRD problems and challenges. The first revealed group of HRD problems related to the current HRD approach, such as lack of on-the-job training and overemphasis on off-the-job training, the inappropriate allocated time for training. The second HRD problems are related to the lack of particular HRD departments or sections and lack of professional HRD staff. The third group of HRD problems are related to the employees or trainees, which include inappropriate T&D time for many employees, overload of work they do every day, which makes attending T&D programmes in the morning impossible. It could be argued that this study has made significant contributions to knowledge at academic and practical levels as an important exploratory study that conducted in the context of Jordanian organisations where there is a real need for many research works to be conducted in HRM/HRD issues. In addition, the study has targeted a very important timely topic and encompasses many important issues that need to be understood for effective management for HRD activities and programmes. The findings of this study have revealed several important implications for HRD professionals to tackle HRD current challenges and problems and for effective HRD management. It is important to stress that one of the study main goal was to draw practical suggestions to tackle HRD problems. For practitioners, the revealed facts and findings imply many things to be considered by organisations. Interestingly, most of these practical suggestions to improve HRD management were suggested by the participants qualitative answers. Firstly, HRD activities should be taken seriously as an investment, necessary rather than prestige activities, and/or a cost to be minimized. Secondly, HRD staff needs to be responsible and able to convince the organisations people of the
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importance of HRD activities for the organisation's success. Third, HRD needs to be a systematic function, linked and derived from the overall organisational strategies, plans and policies, rather than being piecemeal, stand-alone activities, designed to react to the current organisational conditions. Fourth, HRD people need to be specialists in the HRD fields. Fifth, it is importance to assign a particular department, division or unit for HRD. Sixth, top managers and line managers need to be committed to, and supportive of, HRD activities through being involved in formulating HRD strategies, plans and objectives From a practical point of view, this research has provided several major managerial contributions. As HRD in most of the participated organisations is confronting many challenges and problems, this study has provided useful guidelines in the form of the critical elements and factors that can enhance the effectiveness of HRD and success of its activities and programmes. From this study, HRD professionals can derive a better understanding of the role of their HRD activities in the development of the organisations, especially in todays business world, characterized by ever-increasing competition, globalization and change. It helps HRD professionals to understand how they can better manage their HRD activities, what they need to focus on and what they need to do to improve HRD effectiveness. In spite of of the important findings identified above, this study has several limitations. First, a single-country analysis restrict the ability to generalize the findings to other international settings. Second, as in any survey, the way in which the participants answered the questions in the questionnaire was deliberately or unconsciously influenced by many factors including their positions in the organisations, their personal reliability, their social, educational and professional background. Nevertheless this is a timely and important study; little research has been undertaken to investigate HRD\HRM issues within the Middle East in general or in Jordan in particular. The discussion of the study findings has raised many other facts and questions that need to be answered and they are representing directions for future research. For example, the impact on national culture on the HRD activities and programmes; HRD current practices and management in Jordanian public organisation; a comparative study between UK organisations that invest in people and Jordanian organisations would also be valuable; several case studies could be conducted to explore in more depth the nature and extent of HRD activities and management within a selected number of private Jordanian organisations. Such studies would reveal more details and insights that are often overlooked by survey research.
References Abdalla I. and Al-Homoud M., 1995. A Survey of management training and development practices in the state of Kuwait, Journal of Management Development, Vol. 14, No. 3, pp. 14-25. Acton T. and Golden W., 2003. Training the knowledge worker: a descriptive study of training practices in Irish software companies, Journal of European Industrial Training, Vol. 27, No. 4, pp. 137-146. Albahussain A,.2000. Human Resource Development: an Investigation into the Nature and Extent of Training and Development in the Saudi Private Manufacturing, Unpublished PhD Thesis, Bradford University. Al-Faleh M., 1987. Cultural influences on Arab management development: A case study of Jordan, Journal of Management Development, Vol. 6, No. 3, pp. 19-33. Al-Fathaly O. and Chakerian R., 1983. Administration, the forgotten issue in Arab development. In Ibrahim, I. (ed) Arab resources. The Transformation of a Society. London: Croom Helm, pp. 193-209. Al-Hadad A., 1996. Planning and managing training activities. Paper presented in a training programme, PAAET, March, Kuwait. Al-Humoud M.,1989. Interrelatedness of administrative development and development administration, World of Thought, Vol.20, No.2, pp. 5-12. Ali J., 1995. Cultural discontinuity and Arab management thought, International Studies of Management and Organisation, Vol.25, No. 3, pp. 7-30. Al-Madhoun M. and Analoui F., 2003. Management and development: the training programmes for small and micro enterprises in Palestinian territories, Management Research News, Vol. 26, No. 6, pp. 39-67. Altarawneh I., 2005.. Training and development effectiveness: practices, roles and impacts on performance in Jordanian banking organisations. Unpublished PhD thesis, Huddersfield University, UK. Altarawneh. I., 2009.Training and development evaluation in Jordanian banking organisations, Research and Practice in Human Resource Management journal, Vol, 17, No.1, pp. 1-23. Altarawneh I., 2010. Human resource management and turnover intentions in the Jordanian hotel sector, Research and Practice in Human Resource Management journal, Vol. 18, No.1. (June Issue). Al-Tayeb H., 1986. Arab management development organisations, their current situation and future horizons, Arab Organisation of Administrative Science, Amman, Jordan (in Arabic). Armstrong M., 2003. A Handbook of Personnel Management Practice, Ninth Edition, London: Kogan Page Limited Atiyyah H., 1993. Management development in Arab countries: the challenges of the 1990, Journal of Management Development, Vol. 12, No. 1, pp. 3-12. Bahar A., Peterson S. and Taylor, D., 1996. Managing training and development in Bahrain: the influence of culture, Journal of Managerial Psychology, Vol. 11, No. 5, pp. 26-32. Baum T. and Szivas E. (2008), HRD in tourism: A role for government, Tourism Management, Vol. 29, No.4, pp. 783-794.
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Burrow J. and Berardinelli P., 2003. Systematic performance improvement-refining the space between learning and results, Journal of Workplace Learning, Vol. 15, No. 1, pp. 6-13. Chadwick C., 2005. The vital role of strategy in strategic human resource management education, Human resource Management Review, Vol.15, No.3, pp.200-213. Chen G. and Klimoski R., 2007. Training and development of human resources at work: is the state of our science strong? Human Resource Management Review, Vol.17, No. 2. pp.180-190. Costantini V. and Monni S., 2008. Environment, human development and economic growth, Ecological Economics, Vol. 64, No.4, pp.867-880. Durra A., 1991. Assessment of training needs within the context of administrative reform in Jordan, International Journal of Public Sector Management, Vol. 4, No. 4, pp. 45-47. Garavan N., 1997.The learning organisation: a review and evaluation, The Learning Organisation, 4, 1, pp. 18-29. Garavan N., 1991. Strategic human resource development, Journal of European Industrial Training, Vol. 15, No. 1, pp. 17-30. Garavan N., Costine P. and Heraty N., 1995. The emergence of strategic human resource development, Journal of European Industrial Training, Vol. 19, No. 10, pp. 4-10. Garavan N., Heraty N. and Barnicle B., 1999. Human resource development literature: current issues, priorities and dilemmas, Journal of Industrial Training, Vol. 23, No. 5, pp. 169-179. Garavan N., Morley M., Gunnigle P. and Collins E., 2001. Human capital accumulation: the role of human resource development, Journal of European Industrial Training, Vol. 25, No. 4, pp. 48-68. Garavan N., 1997. Training, development, education and learning: different or the same?, Journal of European Industrial Training, Vol. 21, No.2, pp .39-50. Goldstein I., 1993. Training in Organisation: Needs Assessment, Development, and Evaluation, Third Edition, Brooks/Cole Publishing Company, Pacific Grove, California. Gong Y., Law, K., Chang, S. and Xin, K., 2009. Human resources management and firm performance: the differential role of managerial affective and continuous commitment, Journal of Applied Psychology, Vol. 94, No.1,pp.263-275. Guest D., 1997. Human resource management and performance: a review and research agenda, The International Journal of Human Resource Management, Vol. 8, No. 3, pp. 264-276. Harrison R., 1997. Employee Development, London: Institute of Personnel and Development. Hughes G., OConnell J. and William J., 2004. Company training and low-skill consumer-service jobs in Ireland, International Journal of Manpower, Vol. 25, No.1, pp. 17-35. Hussey D., 1985. Implementing corporate strategy and change: using management education and training, Long Range Planning, Vol. 18, No. 5, pp. 23-37. Iatagan M., Dinu C. and Stoica A., 2010. Continuous training of human resources- a solution to crisis going out, Procedia- Social and Behavioral Sciences, Vol.2, No. 2, pp.5139-5146. Kuber M. and Prokopenko J., 1989. Diagnosing Management Training and Development Needs, Geneva, International Labour Organisation Lee R., 1996. What Makes Training Pay?, London: Institute of Personnel and Development. Liu A, and Wall G., 2005. Human resource development in China, Annals of Tourism Research, Vol. 32, No.3, pp. 689-710. Luoma M., 2000. Developing people for business success: capability-driven HRD in practice, Management Decision, Vol. 38, No. 3, pp. 145-153. MacDuffie P., 1995. Human resource bundles and manufacturing performance: organisational logic and flexible production systems in the world auto Industry, Industrial and Labour Relations Review, Vol. 48, No. 2, pp. 197-221. Manpower Service Commission, (1981), Glossary of Training Terms, London: HMSO. McCarthy A., Garavan, N. and OToole T., 2003. HRD: working at the boundaries and interfaces of organisations, Journal of European Industrial Training, Vol. 4, No. 3, pp. 58-72. Mondy W., Noe M. and Premeaux R., 1999. Human Resource Management, 7th. Prentice-Hall International, London. Motwani G., Frahm M. and Kathawala Y., 1994. Achieving a competitive advantage through quality training, Training for Quality, Vol. 2, No. 1, pp. 35-40. Nolan C., 2002. Human resource development in the Irish hotel industry: the case of the small firm, Journal of European Industrial Training, Vol. 26, No. 2, pp. 88-99. Pettigrew A., Sparrow P. and Hendry C., 1989. Training in Britain: Employees Perspectives on Human Resources, London: HMSO. Read C. and Kleiner B., 1996. Which training methods are effective, Management Development Review, Vol. 9, No.2, pp. 24-29. Redshaw, B. (2000), Evaluating organisational effectiveness, Industrial and Commercial Training, Vol. 32, No. 7, pp. 245-248. Reid M. and Barrington H., 1997. Training Intervention, 5th, The Cromwell Press, Wiltshire, UK. Sadiq M., 1980. Management development and the ambitions of economic and social development in the Arab world in the year 2000, Arab Organisation of Administrative Science, No. 240, p. 63 (in Arabic). Sekaran U., 2003. Research Methods for Business: A Skill Building Approach, 4th, New York: John Wiley and Sons. Shandler D., 1996. Reengineering the Training Function, Delray Beach: St Lucie Press. Stone R., 2002. Human Resource Management, Fourth Edition, Milton, Australia: Wiley Art Department. Taylor D., 1996. Training and Developing People. In Molander C. Human Resource at Work. Chartwell Bratt,London.
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Walton J., 1999. Strategic Human Resource Development, London: Financial Times. Werbel J. and. DeMarie S., 2005. Aligning strategic human resource management and person-environment fit, Human Resource Management Review, Vol. 15, No.4, pp.247-262. Werther J. and Davis K., 1996. Human Resources and Personnel Management, 5th, New York: McGraw- Hill Wilkins S., 2001. Management development in the Arab Gulf States: the influence of language and culture, Industrial and Commercial Training, Vol. 33, No. 7, pp. 260-266. Willis M., 1994. Managing the training process: putting the basics into practice, Journal of European Industrial Training, Vol. 18, No. 6, pp. 4-28. Wognum M., 2000. Vertical integration of HRD policy within companies. Academy of Human Resource Development, 8-12 March, Conference proceedings, Vol. 2, pp. 765-37, Raleigh-Durham, NC, USA.
Biographical Note Dr. Ikhlas Ibrahim Altarawneh is affiliated as Assistant Professor of human resource management at Al-Hussein Bin Talal University. She received her PhD from UK in 2005. Her research interests are in human resources issues, women at workplaces, HRM effectiveness, training and development and strategic HRM approach.
Received June 2010 Accepted June 2010 Final acceptance in revised form June 2010
MultiCraft
Proposal of a methodology for the cooperation of systemic methods

M.N. Lakhoua
Department of Electronics, ISSAT Mateur, TUNISIA Laboratory of Analysis and Command of Systems, ENIT MohamedNajeh.Lakhoua@enit.rnu.tn
Abstract This article presents a methodology of cooperation of two systemic methods enabling a description of a system in view to replicate it in a machine after possible modifications. In fact, a cooperative approach has been proposed in this work according to a methodology integrating the two systemic methods OOPP (Objective Oriented Project Planning) and MERISE (Mthode dEtude et de Ralisation Informatique pour les Systmes dEntreprise) that can complete themselves and enables us to offer a global resolution of a problem. Keywords: Systemic methods, OOPP, MERISE, cooperation. 1. Introduction A performance of a production structure depends especially on the performance of its information system. This is why the development of an information system of an enterprise and the efficiency of its exploitability is an important operation. It enables to adapt constraints of measure and collection of information to those of treatment and exploitation. The modeling of such information system allows us to dispose of an analysis tool and help to the decision making. Various methods and techniques have been exploited in a context of upgrading particularly the systemic method OOPP (Objective Oriented Project Planning) (AGCD, 1991; GTZ, 1988), that has been refined and applied in various cases (Project of upgrading of a grain silo, analysis of financial activities, and analysis of the grading system of cereals). This method has been used in order to contribute to the deployment and development of an information system of various industrial enterprises. This activity requires using modern tools enabling to analysis the problems concerned by the enterprise. In order to manage a complex process as the storage system of cereals, it is useful to model it taking into account of its behavior as well as the rules of its conduct. The achieved model will enables to put in evidence dysfunctions of the system notably the aspects of the distribution of cereals in the one hand, and to make simulations of new scripts of optimization and organization, in the other hand. If we consider the complexity of the system and the different aspects according to which we want to model, it is necessary to make a simplification while defining for each of its components the degree of detail of the analysis (Landry, 2000). The methods OOPP and SADT (Structured Analysis Design Technique) (Jaulent, 1989; Ryan et al., 2006) are used to express the needs, to land the functional aspect of a load notebook, to communicate between a teams members, and no as methods of functional analysis of software, because the gotten results depend more the analyst's expertise than of the rigor of the method. MERISE (Strhmeir, 1996; Collongue, 1986) has been applied in order to elaborate a model of representation of the storage process of cereals. This computer method is more complex than SADT. It integrates different levels of abstraction. The vocation of MERISE is double: MERISE represents a method of conception of the information system of enterprises on the one hand and proposes a methodological gait of development of system of information, on the other hand (Banos et al., 1989). The object of this paper is to present an application of the method MERISE (Mthode dEtude et de Ralisation Informatique pour les Systmes dEntreprise) (Gabay, 2004) for the modeling of an information system in a context of cooperation with the OOPP method. 2. Presentation of the OOPP method There are many methods that have been used to enhance participation in information system planning and requirements analysis
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(AGCD, 1991; GTZ, 1988; Lakhoua, 2006). We review some methods here because we think them to be fairly representative of the general kinds of methods in use. The methods include Delphi, focus groups, SADT (Structured Analysis Design Technique), OOPP method, multiple criteria decision-making (MCDM), and total quality management (TQM). The OOPP method (AGCD, 1991) (Walter, 1998) also referred to as Logical Framework Approach (LFA), is a structured meeting process. This approach seeks to identify the major current problems using cause-effect analysis and search for the best strategy to alleviate those identified problems. OOPP method has become the standard for the International Development Project Design. Team Technologies have continued to refine the approach into TeamUP. The design methodology of the OOPP method (AGCD, 1991; Killich, 2002) is a rigorous process, which if used as intended by the creators will impose a logical discipline on the project design team. If the process is used with integrity the result will be a high quality project design. The method is not without its limitations, but most of these can be avoided with careful use of ancillary techniques. Many things can go wrong in the implementation phase of a project, but if the design is flawed, implementation starts with a severe handicap. The first few steps of the LFA are (AGCD, 1991; Peffers et al., 2005): situation analysis; stakeholder analysis; problems analysis. The document of Situation Analysis describes the situation surrounding the problem. The source could be a feasibility study, a pre-appraisal report, or be a compilation done specifically for the project design workshop. Typically, the document describes the problem situation in detail, identifies the stakeholders and describes the effects of the problems on them. The stage of Stakeholder or Participation Analysis is an analysis of the people, groups, or organizations that may influence or be influenced by the problem or a potential solution to the problem. This is the first step to understanding the problem. We might say, without people or interest groups there would be no problem. So to understand the problem, we must first understand the stakeholders. The objectives of this step are to reveal and discuss the interest and expectations of persons and groups that are important to the success of the project. If there is no agreement between participants on the statement of the problem, it is unlikely there will be agreement on the solution. This stage of Problem Analysis therefore seeks to get consensus on the detailed aspects of the problem. The first procedure in problem analysis is brainstorming. All participants are invited to write their problem ideas on small cards. The participants may write as many cards as they wish. The participants group the cards or look for cause-effect relationship between the themes on the cards by arranging the cards to form a problem tree (Figure 1). Central Problem
Cause 1
Cause 2
Cause 2.1
Cause 2. 2
Figure 1. Problem tree of the OOPP method In the step of Objectives Analysis the problem statements are converted into objective statements and if possible into an objective tree (Figure 2). Just as the problem tree shows cause-effect relationships, the objective tree shows means-end relationships. The means-end relationships show the means by which the project can achieve the desired ends or future desirable conditions. Frequently there are many possible areas that could be the focus of an "intervention" or development project. The next step addresses those choices. The objective tree usually shows the large number of possible strategies or means-end links that could contribute to a solution to the problem. Since there will be a limit to the resources that can be applied to the project, it is necessary for the participants to examine these alternatives and select the most promising strategy. This step is called Alternatives Analysis. After selection of the decision criteria, these are applied in order to select one or more means-end chains to become the set of objectives that will form the project strategy. Global Objective
Specific Objective1
Specific Objective2
Result 1
Result 2
Figure 2. Objective tree of the OOPP method
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After defining the objectives and specifying how they will be measured (OVIs) and where and how that information will be found (MOVs) we get to the detailed planning phase: Activities Planning. We determine what activities are required to achieve each objective. It is tempting to say; always start at the situation analysis stage, and from there determine who are the stakeholders. 3. Motivation of the cooperation OOPP - MERISE Of the fact of its character structured and participative (adherence and communication of the various concerned by the project), we consider the OOPP method extensively evolutionary and adaptive. This is why our research team invested itself in view to develop some convivial and functional tools for the extended OOPP method, definite under the denomination MISDIP (Method Integrated of Specification, Development and Implantation of Project) (Annabi, 2003) (Lakhoua, 2008). This new method, under development and normalization, present today a limit as for its environment of utilization. Hence, of our motivation to offer an environment of help to the development, we tempted to make cooperation between the OOPP method and MERISE, that profit today of a more functional environment (tools, formalism, culture). The objective of this cooperation is to exploit the structuring and participative and specification aspect of the OOPP method on the one hand and the convivial tools of the environment MERISE, on the other hand. MERISE is kept as being a standard, and an important tool for the survey and the development of a computer application. Its representation arranges numerous qualities as: a very good legibility thanks to the clarity of its diagrams, a hierarchical structure and no formalized, a recognition of synchronizations as basis concept The methodology of this cooperation consist of the exploitation of the OOPP method in the phase of the structuring and the specification of the system to develop, the exploitation of an interfacing of cooperation between the two methods and the exploitation of MERISE for the representation and the development (Figure 3).
Specification (OOPP) Interfacing & Cooperation Representation and Development (MERISE)
Figure 3. Methodology of cooperation The methodology of this cooperation is based on three phases: the first concerns the system with its various processes, the second relates to the process of cooperation and the third to the state of exit. 1st phase: Structuring and specification of the system a. to delimit the process, object of the development, and to represent it by a simplified diagram block limited to the first levels of the analysis b. to analyze by OOPP the system by a hierarchical manner c. to identify the informational environment of every entity "Activity" d. to establish the matrix of information that enables to determine ties between the entities "Activity". These information are regrouped them also by entity" Information" 2th phase: Exploitation of the interface of cooperation e. To consider these information as a data structured constituent so the dictionary of MERISE f. to define objects of MERISE according to a logical appreciation of entities as "Activity" that "Information" g. to establish relations between objects while exploiting the entities "Activity" on the one hand and on the other hand the free ties of the "information" Matrix 3th phase: Exploitation of MERISE h. the whole of these elements (dictionary of data, objects, relations, events, operations, results) constitutes the specification of the system i. to exploit the environment of representation, modeling and development of MERISE to develop the project From the list of properties and rules managing a system, we determined in a first time the objects (corresponding often according to the OOPP Results) while specifying for each of them identifying (corresponding for the OOPP method to information the more representative and most applicable). In the same way, we determined relations (correspondent for the OOPP method to the entity "Activity") and cardinality from the observation of the system and its working and the OOPP analysis done. In the MISDIP model, the matrix of information, of by its constitution, can be considered like a support illustrating relations between information imported by an entity "Activity" and information produced by this last; these last information are considered then as the transformation of information imported by the entity "Activity". The relation between the produced information and the
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information imported by an entity "Activity" constitutes a treatment can give the MCT of MERISE. A treatment can be very elementary as the one of a registration of information considered like an event that triggers an operation to generate a result constituting another event triggering the following operation. Thus, the event whole - Operation - Result can constitute a basis entity of the representation of the MCT. 4. Conclusions To specify a system with only one method enables to treat only certain measurements of the system. It can be sufficient in some very precise cases. We would not know how to satisfy itself in the general case. Since it is difficult to have universal methods, there is place to study the system according to various methods; each adopting a point of view covers some measurements. In this paper, a proposal for the cooperation of the two systemic methods OOPP and MERISE is presented. In fact, the specification techniques, formal or semi-formal enable the description of a system, in view to replicate it in a machine, after possible modifications. The cooperative approach OOPP - MERISE enables us especially to surround the parameters of the two methods used and to establish the correspondences between them in order to make them complete mutually. Acknowledgement The author extends his especial thanks to Professor Mohamed Annabi (University of Tunis) for his valuable help. References AGCD. 1991. Manuel pour lapplication de la Planification des Interventions Par Objectifs (PIPO), 2me Edition, Bruxelles. Annabi M. 2003. Mthode intgre de spcification, de dveloppement et dimplmentation de projet, STA03, Tunisia. Banos D., Malbosc G., 1989. MERISE Pratique : les points-cl de la mthode, Eyrolles, Paris. Collongue A. 1986. Hugues J., MERISE : Mthode de conception, Dunod Informatique. Gabay J. 2004. MERISE et UML : Pour la modlisation des systmes dinformation, Dunod, Paris. GTZ. 1988. ZOPP, An Introduction to the Method, Eschborn, Germany. Jaulent P. 1989. SADT un langage pour communiquer, Edition Eyrolles, Paris. Killich S. 2002, Unternehmen sbergreifende Arbeitsgruppen TeamUp Einsoftware technisches, Aachen. Lakhoua M.N. 2008. Systemic analysis of a production system, Thesis, ENIT, Tunisia. Lakhoua M.N., Annabi M. 2006. State of the art of Strategic Planning. ICTTA06, IEEE, Damascus, Syria, Vol.1, pp 453-458. Landry M., Banville C. 2000. Caractristiques et balises dvaluation de la recherche systmique, RTSG, Vol.2, N1. Peffers K, Tunanen T. 2005. Planning for IS applications: a practical, information theoretical method and case study in mobile financial services. Information & Management, Vol.42, Issue 3, pp 483-501. Ryan J., Heavey C. 2006. Process modelling for simulation, Computers in Industry 57, pp 437-450. Strhmeir A. 1996. Gnie logiciel : principes, mthodes et techniques, Presses polytechniques et universitaires Romandes, Lausane. Walter EM. 1998. Introduction la mthode de Planification des Projets par Objectifs, REFA, Maroc.
Biographical note
M. N. Lakhoua born in 1971 in Tunis (Tunisia), he received the BSc degree in Electrical Engineering from the High School of Sciences and Techniques of Tunis, the DEA degree in Automatic and Production engineering from the same school and the PhD degree in Industrial Engineering from the National School of Engineers of Tunis, respectively in 1996, 1999 and 2008. He is currently an Assistant Professor at the High Institute of Applied Sciences and Technology of Mateur. His research interests are focused on analysis and command of systems; modeling of production systems; development of information system.
Received June 2010 Accepted June 2010 Final acceptance in revised form June 2010
MultiCraft
A SWOT analysis of small and medium scale enterprises implementing total quality management
S. D. Kalpande1*, R. C. Gupta2, M.D. Dandekar3
Department of Mechanical Engineering, METs Institute of Engineering, BKC, Nashik, Pune University, Pune, 422003, INDIA Department of Industrial and Production Engineering, Shri G. S. Institute of Technology & Science, Indore M.P., 452003, INDIA 3 Department of Industrial and Production Engineering, Shri G. S. Institute of Technology & Science, Indore M.P., 452003, INDIA * Corresponding Author: e-mail: shyamkalpande@gmail.com, Tel +91-9209293782
2 1*
Abstract Small and Medium scale Enterprises (SMEs) playing a vital role in nations economy. Many studies have demonstrated the positive impact of Total Quality Management (TQM) practices on Small and Medium scale enterprises. These have relied on managers self assessment of performance in reaching the objectives of study. It is also observed that many SMEs are ineffective and some are closed down. The main problem of those SMEs seems to be the low quality of their product and rise in competition in the market. To stand in the market, it is necessary for SMEs to face new challenges by adopting proper strategy. SWOT (Strength, Opportunity, Weakness, and Threats) analysis is one of the techniques to undertake a more structural analysis to formulate the best strategy. SWOT is the combination of four major terms as Strength, Opportunity, Weakness and Threats. The study shows that Competition and Rise in expectation of Customers are the major external issues for the SMEs of this region. The main threats observed are competition from large & multinational businesses, financial stringency and technological obsolescence. The aim of SWOT analysis is to identify the extent to which the current strategy of an organization and its more specify strength and weakness are relevant to, and capable of dealing with the changes taking place in the business environment. Every unit must be aware of their Strength, Opportunity, Weakness and Threats. To succeed in any field, weakness must be overcome through strength and threats must be transferred into opportunities. Keywords: SMEs, TQM, SWOT Analysis, Structural Analysis. 1. Introduction Total Quality Management also known as TQM, is a continuous effort to improve quality and achieve customer satisfaction. It is primarily an organizational strategy considered as a change program to achieve excellence by producing quality service as defined by the customer (Garg, 2008). On the study of TQM effect on organizational performance, most research has focused on analyzing the relationship between the implementation of different and several types of performance (Poonsook et al., 2005). The causal analysis result shows that dynamism, munificence and complexity influence the degree of implementation of the main TQM principles. The most relevant effects emerge as a result of the environmental dynamism, and the least effects are due to munificence. Similarly, the dimensions of TQM have an impact on different types of performance. The model can be used by organizations to assess their level of TQM success depending on specific environmental characteristic. Study report shows that there is a growing number of SMEs in India yearly. In spite of this, it is also observed that many SMEs are ineffective and some are closed down. The main problem of those SMEs seems to be the low quality of their product and rise in competition in the market. Ineffectiveness may result in the locking up of resources, wastage of capital assets, loss of production and increasing unemployment. In addition the ineffective units are mainly affected by the reduction of loan-able funds by financial institutions. This results in reduction of the velocity of their circulation. The investigation suggests that quality management in manufacturing companies should be conducted in a cost-effective way and directed towards improving the operational efficiency and effectiveness of the entire organization rather than simply satisfying the customers (Yeung and Chan., 2005). To stand in the
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market, it is necessary for SMEs to face new challenges by adopting proper strategy. SWOT (Strength, Opportunity, Weakness, and Threats) analysis is one of the techniques to undertake a more structural analysis to formulate the best strategy. On this background the objectives of this paper are too Study SMEs and o Apply SWOT analysis for the situational analysis of SMEs to get insights into their status. 1.1 Introduction to SWOT Analysis: SWOT is the combination of four major terms as Strength, Opportunity, Weakness and Threats. Strength refers to inherent abilities to complete and grow strong. Weaknesses are the inherent deficiencies that cripple ones growth and survival. Strength and weakness are mostly internal. Opportunities are the good chances and openings available for growth. These are environmental & external. Threats are extremely wielded challenges, which might suppress inherent Strength, accelerate weakness and stifle with opportunities being exploited. These are again posed due to the external environment (Foong, 2007; Directors Briefing, 2006). According to Johnson and Scholes (1994) the aim of SWOT analysis is to identify the extent to which the current strategy of an organization and its more specify strength and weakness are relevant to, and capable of dealing with the change taking place in the business environment. Every unit must be aware of their Strength, Opportunity, Weakness and Threats. To succeed in any field, weakness must be overcome through strength and threats must be transferred into opportunities. 1.2 Benefits of Small and Medium Enterprises: SMEs provide development sinews to the hook and corner of the economy. Economic growth is accelerated by the SMEs, as SMEs are productive and vibrant contributors to the economy. SMEs output grew with higher speed than the large industrial sector. Employment generation in SMEs is swifter, 0.5 million jobs annually. SMEs is 33% more employment intensive than the whole of the economy taken together. Exports of SMEs are surging fast and its share is over 42%. Besides these the capital intensity is less. Investment in fixed asset in SMEs is just one fourth of that of large-scale industries. On the other side the labour absorbing capacity of large scale industries is limited and has been declining over a period of time due to the fact that it becoming more capital intensive. Similarly, growth in agriculture facilitated by irrigation was labour intensive in the initial stage but become capital intensive later and was accompanied by reduced labour absorption. Moreover, the pressure of population on land is already high and increasing and has resulted in a large surplus of labour in rural areas. On this background, it is felt that SMEs represents a vital backbone of the Indian economy. There is also a growing worldwide appreciation of the fact that the small and medium enterprise plays a catalytic role in development process of most of the economies. This position gets reflected in the form of increasing number, rising proportion in overall product manufacturing, export and manpower employment by these units (SIDO GOI., 2004 and Economic Survey, GOI., 2007). This makes them the backbone of industrial economy in a developing nation like India. Throughout the world economics are to a large extent dependent on the success of SMEs. For example, in the UK alone more than 70% of all business employs fewer than hundred people (Huxtable, 1995). Also 18% of UK gross output (Manufacturing) is generated by SMEs (Ghobadian and Gallear, 1996). In Japan 72% of the entire workforce is engaged in SMEs, whereas in USA and Korea 53% and 51% respectively. In India SMEs account for about 40 % of the total industrial output and contributes nearly 35% of the total direct exports. Table 1 shows the contribution of small sector industries worldwide. Small and medium enterprises (SMEs) comprise 95% of Australian businesses, employ 45% of the workforce, and generate 55% of sales. With significant downsizing of large enterprises over recent years, there has been an increasing interest from both governments and industry bodies in Australia in the growth potential of this sector. It is recognized that there are political, economic and social imperatives for helping SMEs to survive and develop, particularly to support job growth (Barnes et al., 1998). Table 1. Contributions of SSI Worldwide Share of Total Criteria for Recognition Output Employment Export India 40% 45% 35% Fixed assets USA -53% -Employment Japan 52% 72% 13% Employment & assets Taiwan 81% 79% 48% Paid up capital, assets and sales Singapore 32% 58% 16% Fixed assets and employment Korea 33% 51% 40% Employment Malaysia 13% 17% 15% Shareholder fund & employment Indonesia 36% 45% 11% Employment Source: Laghu-Udyog, Volume, 26 (6), 2008 Country
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2. Methodology A structured questionnaire survey and open-ended interviews are used as a technique for data collection. Literature review and discussion with managers from SMEs were used for developing the questionnaire. The questionnaire was divided into three sections1. The company background i.e. Year of Establishment, No. of Total Employees, Main Products, Total annual Production in Rupees, Total investment in Land and machineries in Rupees and Turnover of last three years etc. 2. SWOT factors i.e. Questions on the various factors considered under strength, Weakness, Opportunities and Threats are shown in Table 2. 3. Environmental factors, i.e questions on the various external factors affecting the performance of the plant are shown in Table 2. The structured questionnaires consist of five questions. For identifying the rank of various factors considered under Strength, Opportunity, Weakness, Threats and Environment and data is collected from the target market. Likert type five point scales were used. In which, 1- indicates most favorable response and 5- indicates least favorable response. The sum of the responses for each factor was calculated. The factor having lowest sum has been given first rank, and the factor having highest sum was ranked as last. 3. Data Analysis 3.1 SWOT Analysis: There are three major aspects of TQM and it is only when all three are employed together that have a complete TQM effort. These components are: the cultural aspect, the technical aspect, and the managerial aspect (Jack, 2007). The major strength, weaknesses, opportunities & immediate threats to SMEs are:Table 2. Factors considered for SWOT Analysis S1 Flexibility W1 Lack of Quality Consciousness S2 Owners Management W2 Under utilization of capacity S3 In-expensive labour W3 Lack of Financial strength S4 Less overheads W4 High percentage of absenteeism S5 Favorable capital output ratio W5 Lack of proper work culture S6 Flat management structure W6 Lack of trained workers S7 Co-operation from the employees W7 Lack of technology superiority Weaknesses W8 Lack proper management orientation S8 Closeness to market O1 Expert Market W9 High turnover of key personnel O2 Govt. Support W10 Lack of planning O3 Excise Relief W11 Lack of long-term strategic focus O4 Increase of ceiling for SMEs W12 Lack of infrastructure facilities O5 Ancillarisation to large business W13 Inadequate attention to research and development O6 Reservation of product items by Govt. T1 Competition from large E1 Competition from large & Multinationals and Multinationals E2 Rise in expectation of customer T2 Financial stringency E3 Govt. Support (Financial/non financial) T3 Technological obsolesces E4 Export Market Threats T4 Negligence towards industrial E5 Increase in price in input training T5 Increase in the price of inputs E6 Shortage of raw material T6 Lack of political peace and Stability E7 Ancillarisation to large Industry E8 Political will and stability.
Strengths
Opportunities
Environmental
4. Situational Analysis of SMEs The SWOT analysis, a powerful tool develop by the above procedure, was used for the situational analysis of SMEs. The statement was examined one against another on the lines suggested by Johnson and Scholes (1994). The analysis of the outcomes would basically be gap analysis; i.e. comparing the actual situation with the planning standards or other norms. Analysis of the time series would show whether the situation is improving or deteriorating (IFUW, 2007).The analysis is shown in Table 3. The main strength and weakness are in the left hand column, and are examined in terms of the key environmental issues: a + or - or 0was scored as follows:Marking + if there was a benefit to SMEs, i.e. if:
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o A strength enabled to take advantage of or counteract a problem arising from a environmental change; o A weakness was likely to be offset by the change. Marking - if there was an adverse effect on SMEs, i.e. if: o A strength was likely to be reduced by the change; o A weakness prevented the organization from overcoming the problems associated with the change or was accentuated by that change. Marking 0 if there was no effect on SMEs. Table 3. Approaches used for Managing Quality- Selection Grid Competition Govt. Support Rise in Shortage Export from large & (Financial/non expectation of raw Market Multinationals financial) of customer material Strengths + + + + + + + + 0 + 0 0 0 Weaknesses Lack of Quality Consciousness Under utilization of capacity Lack of Financial strength High percentage of absenteeism Lack of work culture Lack of trained worker Lack of tech. superiority 0 + 1 4 7 + + + 0 0 + + 5 7 0 2 4 6 0 0 0 0 0 0 9 2 1 5 7 0 0 0 0 0 0 7 4 1 2 2 1 3 3 2 2 1 1 1 1 1 3 3 4 3 3 3 3 + + + 0 + 0 0 0 + + + +
Increase in price in inputs 0 + + + + 0 2 2 5
Total
+ 6 6 4 4 1
Flexibility Owners Management In-expensive labour Less overheads Favorable capital output ratio
What this analysis yield is a much clearer view of the extent to which the environmental changes and influences provide opportunities or threats, given current strategies and organizational capabilities. Table 3 shows that a major opportunities lies in the utilization of financial & non-financial support extended by Govt. and gain vast export market. Owner management & flexibility are the some other areas, which provide opportunities for growth. Likewise, the major threats include competition from large and multinational and rise in expectation of customers. In the light of the above considerations, the need for quality initiatives in SMEs was felt. 5. Discussion The study shows that Competition and Rise in expectation of Customers are the major external issues for the SMEs of this region. The main threats observed are competition from large & multinational businesses, financial stringency and technological obsolescence. Only 16 % of the SMEs from the sample used ISO certification as an approach for managing quality. Table 4 shows that TQM approach is not used at all. Very few SMEs identified the importance of TQM & planning for TQM adoption. Lack of quality consciousness, under utilization of capacity, lack of financial strength, non availability of trained workers, lack of culture
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due to low industrial development and high interest on loan are the some of the common problem faced by SMEs. So the thrust areas for SMEs of this region arei. Education and training to manager/ entrepreneur regarding the benefits and need of continuous improvement. ii. Education & training to employees on various aspects like quality and its need, use of SQC, importance of continuous improvement, use of data and understanding of processes. iii. Adoption of philosophy of continuous improvement (TQM) and iv. Development of competitiveness through use of better technology, use of improved equipment and testing facilities. Table 4. Approaches used for Managing Quality Name of Approaches No. of Units Traditional Approach (Inspection) 65% ISO Certification 16% Statistical Quality Control (SQC) 13% Total Quality Control (TQC) 02% Others (TCCQS) 03% Total Quality Management (TQM) 01%
S.N. 1. 2. 3. 4. 5. 6. 6. Conclusion
SMEs play an essential role in sustaining a developing nations survival and growth. The aim of this study was to investigate the extent to which the SWOT factors have been attained in SMEs with particular reference to the selected companies operating in Maharashtra. The empirical data was collected and practitioners opinions were analyzed to compare the actual situation with the planning standards or other norms. The study shows that Competition and Rise in expectation of Customers are the major external issues for the SMEs of this region. The main threats observed are competition from large & multinational businesses, financial stringency and technological obsolescence. It was found from the SWOT analysis that poor information on TQM, low level of awareness and understanding, and non availability of a specially developed TQM model which guides the TQM implementation are found to be the main barriers in the process of adoption of TQM philosophy in SMEs and potential benefits could be derived from the successful implementation of the TQM. In spite of the various lacunas, it is felt that with the existing technology and manpower, SMEs can do miracle by adopting a philosophy of continuous improvement (TQM). It is imperative to pay attention towards the study of existing self assessment and quality awards models which suit the needs of SMEs as a future scope. References Barnes M., Coulton L., Dickinson T., Dransfield S., Field J., Fisher N., Saunders I. and Shaw D., 1998. A New Approach To Performance Measurement For Small And Medium Enterprises, Proceeding of International Conference on Performance Measurement, Churchill College, Cambridge U.K. Directors Briefing, 2006. SWOT Analysis, e-book Online Published by BHP information solution Ltd., Althorp House, 4-6 Foong L.M., 2007. Understanding of SWOT Analysis, TQM case studies-e-book Online, 31st August 2007, .from http://tqmcasestudies.com/tqm-case-studies-directory.html Garg I., 2008. Employees Training & Participation-A Must For Total Quality Management, Proceeding of IABR & TLC Conference, San Juan, Puerto Rico, USA. Ghobadian A.,and Gallear O., 1996. Total quality management in SME, Omega, Vol.24. pp. 83-106. Huxtable, N 1995, TQM; Small business, Chapman and Hall, Landon. IFUW., 2007. Situational Analysis, International Federation of university Women, Geneva, Switzerland. Jack B. ReVell., 2007. TQM Tools & Tool Kit, International Federation of university-Online, IFU 2007. Poonsook J., Kusuma P. and Pong H., 2005. An application of Total Quality Management for Thai Communities Knowledge Management Systems, Proceeding of the Fourth International Conference on Business, Bangkok, Thailand. SIDO Half Century by DCSSI, Govt. of India, 2004 and Economic Survey, Govt. of India, 2006-07, Feb. Yeung C.L. and Chan L. Y., 1999. Quality Management System development: Some implications from case studies, proceeding of Department of Industrial and Manufacturing Systems Engineering, The University of Hong Kong, Pokfulam Road, Hong Kong.
Biographical notes
S. D. Kalpande is a Workshop Superintendent and Head of Mechanical Engineering Department, METs Institute of Engineering, Bhujbal Knowledge City, Nashik, Maharashtra, India. He has 15 years of experience in teaching and research. He is a Life Member of IIIE (India), Life Member of ISTE (India). R. C. Gupta is a Professor and Head of Industrial and Production Engineering Department, Shri G.S.I.T.S, Indore, M.P., India. He has more than 25 years of experience in teaching and research. His research interests include industrial engineering, total quality management, supply chain management, world class
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manufacturing and Multi-criteria Decision-Making. He has written two books on relevant subjects. He is a Life Member of IIIE (India), Life Member of ISTE (India). M. D. Dandekar is a Associate Professor in the Industrial and Production Engineering Department, Shri G.S.I.T.S, Indore, M.P., India. He has more than 20 years of experience in teaching, research and industry. His current area of research includes manufacturing processes, tool design, quality engineering, supply chain management, Intellectual Property Rights and world class manufacturing. He has published and presented various papers on his research in international journals and national and international conferences. He is a Life Member of IIIE (India).
Received June 2010 Accepted September 2010 Final acceptance in revised form September 2010
MultiCraft
Critical success factors for successful enterprise resource planning implementation at Indian SMEs
L. Ganesh 1, Arpita Mehta1*
1 * Christ University Institute of Management Bangalore, INDIA Corresponding Authors e-mail: ganesh.l@christuniversity.in;mehta0108@gmail.com
Abstract Small and medium-size enterprises (SMEs) have been receiving lesser focus from the software vendors than large enterprises (LEs).Research on the implementation of ERP in certain European countries shows that the job of implementing an Enterprise Resource Planning (ERP) is a riskier business for SMEs than for LEs. In this paper, a framework has been adopted to cover both the national (Indian) and the organization size (SMEs) aspects to identify and rank the Critical Success Factors (CSFs) that influence the success of ERP implementation at Indian SMEs. This paper attempts to build a consensus from the previous research and to derive a unified ERP implementation success model of the critical success factors to guide a successful ERP implementation at Indian SMEs that differs from existing models in that it has a broader and more holistic focus due to the coverage of thirty CSFs. A model is developed with the help of quantitative survey based method to identify and rank the thirty critical success factors and then a framework has been proposed in terms of recommendations for managing these CSFs. Two close ended questionnaires were used to collect the data from the Indian ERP consultants, those who are having experience of ERP implementation in India for almost all types of Indian industries including Indian SMEs. The data collected were analyzed using statistical techniques such as factor analysis and non parametric tests. This paper argues that ERP implementation at Indian SMEs should extend its scope beyond the configuration to the process, enterprise, technology, vendor, end-user, human resource, performance, quality, strategy and project related issues by considering these thirty critical success factors for the success of ERP implementation at Indian SMEs that may put Indian SMEs on the competitive position. The ERP implementation success model simplifies the functionality of ERP implementation at Indian SMEs. The simplification of system makes easier to understand the ERP requirements. Although limited sample size restricted to Indian SMEs may limit generalization but still these factors can be put into practice to facilitate the process of successful ERP implementations at Indian SMEs. It is hoped that this research will help to bridge the current literature gap and provide practical advice for both academics and practitioners for successful ERP implementation at Indian SMEs. Keywords: ERP, CSFs, Indian ERP, Implementation, SMEs , ERP Implementation, Indian SMEs. 1. Introduction Technology has had a major impact on every organization. Whether it is a small or large organization, being competitive is the key to success. Issue in dealing with a new ERP system is not solely technology, but it involves high degree of planning and commitment too. SMEs face many of the same competitive problems as larger organizations, but have limited resources, experience and staffing skills (Nelson and Millet, 2001). As with the larger enterprises, ERP implementation is becoming critically important to SMEs in streamlining business processes, improving operational performance, and integrating data. Understanding the CSFs for the success of ERP implementation is more critical to SMEs than larger organizations due to their more limited resources. SMEs may not be able to withstand the financial impact of the partial failures and project abandonments that have impacted on many of their larger counterparts (Muscatello et al., 2003). Most of the existing studies that investigate the success factors for ERP implementations focus on the projects that have been carried out in North America and Western Europe. In recent years, researchers such as (Martinsons, 2004), have examined ERP implementations in other countries. Considering that most ERP systems are designed by western information technology (IT) professionals, the structure and processes embedded in these systems
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reflect western culture. As a result, fundamental misalignments are likely to exist between foreign ERP systems and Indian companies requirements. These factors can result in design with undesirable reality gaps, which tend to lead to underperforming systems (Walden and Browne, 2002). Over the past years, the global economic crisis has put the spotlight on many business organizations of any size. With India not being spared of the impact, large establishments have attempted to tackle this crisis in their own ways. SMEs are increasingly being brought into focus on account of their huge growth potential. Various researchers have recommended research into the implementation and use of ERP at SMEs (Huin, 2004; Jacobs and Bendoly, 2003; Muscatello et al., 2003). Huin (2004) argues that unless differences between small and large firms are understood, managing ERP projects in SMEs will continue to be slow, painful and at times even unfruitful. Thus, it appears from previous studies that organizational conditions at SMEs differ from that of large organizations. This suggests that the relative importance of CSFs in ERP implementation may also differ. Since literature on ERP implementation at Indian SMEs is relatively sparse, this research helps to narrow this knowledge gap by investigating ERP implementation at Indian SMEs. The definition of Indian SMEs, according to MSME Development Act, 2006 is based on the ceilings on investment for an enterprise (micro, small and medium) is adopted in the current paper (see Table A Appendix). Different ERP implementation phases are associated with specific ERP implementation problems (Markus and Tanis, 2000). The ERP implementation literature has provided a solid theoretical background to ERP research. However, there seems to be insufficient research investigation on the critical success factors for successful ERP implementation at Indian SMEs for all the phases of ERP implementation from planning to post ERP implementation. This study aims at achieving this objectives by considering ERP implementation process based on Synthesized process model for ERP implementation phases (Shanks et al., 2000) to identify and rank the critical success factors for the success of ERP implementation at Indian SMEs (see Appendix). 1.1 Research Gap Critical Success Factors (CSFs) approach was first used by Rockhart (1979) in IS area. It has been applied to many aspects of IS (Information Systems) including project management, manufacturing systems implementation, reengineering, and, more recently, ERP systems implementation (Brown et al., 1999). Within ERP implementation context, CSFs are defined as "factors needed to ensure a successful ERP project" (Motwani et al., 2002). Several studies identified the critical factors needed to enable project managers and management boards to improve their ERP implementation projects. Implementing successful ERP systems is investigated by many researchers. Their general focus was on identifying CSFs that need to exist in large organization to have successful ERP implementation. These factors have been tested in different organizations in many developed and developing countries by many researchers (Al-Mashari, 2001; Akkermans and Helden, 2002). These factors include, but not limited to, clear objectives, user involvement, effective communications, change management, project team, project champion, consultants, architecture choices, minimal customization, excellent project management, top management support, data analysis and conversion, business process reengineering ,user training and education etc. It has to be noted that much of the attention focused on the critical success factors for the successful ERP implementation in the large enterprise. The success of ERP implementation in both SMEs and LEs are equally important thus the gaps in Indian ERP implementation are: What are the critical factors that influence success of ERP Implementation at Indian SMEs? Which critical factors should get high priority in judging the success of ERP implementation at Indian SMEs?
The main objectives of this paper are to identify and categorize the critical factors influencing success of ERP implementation at Indian SMEs. To find out the factors that can be defined under each component with their importance. To find out the reliability of instrument totally for defining each factor and to rank the critical success factors according to their importance. This research paper was organized in four sections. Section 1 introduces background information by providing the general concept of ERP systems and motivation for the research in the area of ERP implementation at Indian SMEs. It reviews the previous efforts and findings in related areas. It presents an overview of previous research on ERP implementation in information systems. Sub section 1.1 defines the research gaps. Section 2 presents the research methodology, showing survey instruments and their descriptions. Section 3 deals with the results of the survey that were examined by reliability, validity test and exploratory factor analysis etc, to know that whether the survey instruments were developed properly or not. Previous research, theories and fundamentals of project management in ERP implementation are presented to form the theoretical background of the research model. It provides the conceptual research model, describing factors and components. It contains the analysis and interpretation of main research findings along with the recommendations. Section 4 summarizes the study and concludes by examining the contributions of the completed research model and presents the limitations for further advance research in this area.
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2. Research Methodology The present study is exploratory in nature which identifies thirty critical success factors for the success of ERP implementation at Indian SMEs along with the KCSFs (Key Critical Success Factors) by the ranking of those CSFs according to their importance. It gives insights into the phenomenon of CSFs for the success of ERP implementation at Indian SMEs. It does not go deep into the phenomenon of CSFs and so it cannot be determined as descriptive. Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insights, eliminating ideas and formulating hypothesis. Exploratory research here is performed by a survey. A quantitative survey based approach was used. The ERP consultants from India have been selected for the data collection using non probability sampling method. The primary data was collected by using self structured two close ended questionnaires. A five item Likert scale was designed with each statement having five alternatives to choose from Strongly Agree=5, Agree=4, Neutral=3, Disagree=2, Strongly Disagree=1 for the first questionnaire. Second questionnaire ask for the ranking of CSFs on 1 to 30 points scale to identify Key Critical Success Factors (KCSFs) where 1=Most Important and 30= Least Important. The Likert scale is relatively easy to construct compare to other scales. The process is to collect the large number of statements that meet two criteria: (1) each statement is believed to be relevant to the attitude being studied and (2) each is believed to reflect favorable or unfavorable position on that attitude. Respondents should give their level of agreement to the statements. The pilot test was done for ten respondents. Later on both questionnaires were given to 50 respondents. Statistically any same size which is 30 or more than 30 are generally considered as the large sample size, in this research sample size was 50 in order to maintain the reliability and validity of the survey that is statistically large enough(Kothari,1991). These respondents were from different background and different genders. Each questionnaire consists of 30 questions (survey items) mainly dealing with 30 critical success factors for the success of ERP implementation at Indian SMEs. In both the questionnaire, respondents were asked to indicate their perception to identify and rank the thirty CSFs for the success of ERP implementation at Indian SMEs. The objectives of the research and the pattern of the questions were explained in detail to the respondents so that the bias will be as low as possible .Factor analysis was used to reduce the variables and detect the structure in the relationship between variables along with Friedman test to rank the CSFs according to their importance. The analysis of data was done by applying factor analysis, descriptive statistics and nonparametric test using SPSS V 18.0. Quantitative survey based method was used to explore what are the possible critical success factors that contribute in the success of ERP implementation at India SMEs .Two close ended questionnaire were used to collect the data from the 50 Indian ERP consultants those who are having experience of ERP implementation in India for almost all types of Indian industries including Indian SMEs. Sample was drawn from ten national and international well known IT sector companies which are involve in world wide ERP implementation including Indian SMEs. The Indian ERP consultants have been selected for the data collection using non probability sampling method. The data collected were analyzed using statistical techniques such as descriptive statistics, reliability tests, exploratory factor analysis and non parametric tests. In order to explore thirty CSFs with the KCSFs, both the close ended questionnaires were customized with the help of literature reviews and experts opinions. Later on it has been standardized for this research with the help of Cronbachs Alpha readability and supported by exploratory factor analysis. 3. Analysis and Interpretation 3.1. The Proposed Theoretical Framework The theoretical framework (Figure 1) is represented by four main sets of factors in terms of working hypothesis(just to get the direction for exploratory research), namely enterprise related CSFs, technology related CSFs, vendor related CSFs and employee/end-user related CSFs for the success of ERP implementation at Indian SMEs while considering all phases together. A theoretical implementation process was identified, such that it is suggested that there is an explicit linkage between factors and successful ERP implementation phases. Figure 1 shows the proposed theoretical framework for the successful ERP implementation at Indian SMEs. The proposed model, referred to as the conceptual ERP implementation success model for Indian SMEs. As the success of ERP systems can be classified into two categories; the success of ERP adoption and the success of ERP implementation. The success factors for the large enterprise as suggested by the various researchers in literature review are used in the model because these were already validated in previous research and confirmed by several experts interviewed for the large enterprise. This research hypothesize (working hypothesis) these factors directly influence the success of ERP Implementation at Indian SMEs. Based on the proposed model, this research developed the initial instrument (two close ended questionnaires) to identify the CSFs and KCSFs for the success of ERP implementation at Indian SMEs. The following four hypotheses were the working hypothesis for this research: WH1: there is relationship between enterprise related critical success factors of the large enterprise and success of ERP implementation at Indian SMEs during all the phases of ERP implementation. WH2: there is relationship between technology related critical success factors of the large enterprise and success of ERP implementation at Indian SMEs during all the phases of ERP implementation.
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WH3: there is relationship between vendor related critical success factors of the large enterprise and success of ERP implementation at Indian SMEs during all the phases of ERP implementation. WH4: there is relationship between employee/end-user related critical success factors of the large enterprise and success of ERP implementation at Indian SMEs during all the phases of ERP implementation.
Figure 1. Proposed theoretical framework (Conceptual ERP Implementation Success Model) (Source: Authors, MS PowerPoint) 3.2 Estimation The conceptualization of survey instrument constructs is based on preliminary literature review to form the initial items. The personal interviews with practitioners and experts views for scale purification suggest that the survey instruments have strong content validity. Construct validity is evaluated by performing factor analysis. High correlations among the CSFs are considered to indicate construct validity. Estimates greater than .70 are generally considered to meet the criteria for reliability. In Table 1, the composite reliability estimates for the measurement scales are listed. From the Table 1, it is observed that reliability is above 0.75 which states that sufficient internal consistencies have been judged for the reliable measure and construct validity. Table 1. The Composite Reliability (Source: SPSS V 18.0)
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Table 2 (Part I) presents the means and standard deviations for first questionnaire that is identification of 30 CSFs in descending order (5=Strong Agree, 4=Agree, 3= Neutral, 2=Disagree and 1=Strong Disagree). Second part of the descriptive statistics see Table 2( Part II) presents the means and standard deviations for the second questionnaire that is ranking of 30 CSFs in order of their importance (1=Most Important and 30= Least Important). The items used in constructing the survey for this study were adapted from several relevant prior research studies of the large enterprise. The data collected on the critical success factors were first perused to check whether the data could be analyzed using factor analysis or not. The results of this analysis indicate that the correlations among the factors were high and the Bartletts test of sphericity was significant. The data were hence found suitable to conduct factor analysis. An exploratory factor analysis was conducted on the different measures to purify the instrument and to validate the various dimensions underlying the data set. Factor analysis was also used to identify underlying factors or the dimensional composition of instrument. The 50 responses were examined using principal-components factor analysis as the extraction technique and Varimax as the rotation method. Only factors with Eigen value (total variance explained) more than 1 are included in final solutions. Factor loading is simple correlation between the factors and all the variables. It can be used to decide which variable belongs to which factors. This judgment can be done best in rotated factor matrix, see Table 3. Each variable belongs to the factors with which it has the highest loading (neglect the negative sign), see Table 3.This process is used to find out all the constituent variables of each factors. It is seen from the total variance explained in the Table that 10 factors have Eigen value over 1. It shows cumulative variance of 76.415 % which means a good factor analysis has been done. The factor analysis performed on 30 items resulted into the extraction of 10 components, see Table 3. Based on the content of each component they were suitably named. Factor analysis was used to identify the critical success factors that influence the success of ERP implementation at Indian SMEs. The factors were fixed at ten. See Table 4. They together contribute almost 76.415 % of total variance. The most important factor among these is component 1: Process related CSFs, which contribute almost 19.356% of the total variance. See Table 4. The variables are divided into different factors based on the values in the rotated component matrix (the higher values are taken). The divisions of variables into different factors are given in Table 4. Order of importance is also presented with the help of Friedman test for questionnaire two (Ranking of CSFs). Table 5 presents ranking from the questionnaire two. In case of second questionnaire, the Friedman test results has the significance value (.000) which is less than the standard assumed value of this test (Typically .05) and the resulted chi square value being higher this means that mean ranks given to the 30 CSFs are not same, see Table 5.The order of importance can also be understood from the descriptive statistics see Table 2. As shown in the Table 5 the most important factor is business plan, vision (mean rank 4.26) followed by the top management commitment and support (mean rank 4.58), project champion(mean rank 4.78) on 1 to 30 points scale where 1=most important and 30=least important. Table 5 presents Interpretation of output from the Friedman Test analysis based on questionnaire two that is ranking of Critical Success Factors. 3.3 Findings Significant relationships are found between CSFs and the success of ERP implementation at Indian SMEs. Working hypothesis has been tested with the help of factor analysis and few more categories were also identified for successful ERP implementation at Indian SMEs (see Table 4).Thirty critical success factors were identified with the help of ERP implementation success model (see Figure 2) along with the Key Critical Success Factors (see Table 5) to make successful ERP implementation at Indian SMEs. Study concludes that all these thirty critical success factors influence, the success of ERP implementation at Indian SMEs (see Table 4)and they have different priorities (ranking) during ERP implementation at Indian SMEs( see Table 5). The study also makes groups of important factors for the success of ERP implementation at Indian SMEs by identifying KCSFs and factor analysis (see Table 4 and 5). Since the grouping of variables are done on basis of data collected from the Indian ERP consultants, the results of the study are also acceptable for Indian ERP vendors and will be acknowledged by the Indian ERP consultants too. The ERP Implementation success model for the success of ERP implementation at Indian SMEs along with the list of KCSFs can be used during all the phases of ERP implementation at Indian SMEs to make ERP successful because the boundaries between planning, implementation, stabilization and improvements are not rigid. The ERP implementation success model simplifies the functionality of ERP implementation at Indian SMEs. The simplification of system makes easier to understand the ERP requirements. Commonly, a better system is easier to understand, implement and maintain for the users and the implementers. By using this model for small and medium-size companies ERP implementation, especially in India, Indian SMEs can achieve global business process by implementing ERP systems efficiently.
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Table 2. Descriptive Statistics for Questionnaire One and Two (Source: SPSS V 18.0) Item Statistics Identification of Critical Success Factors-CSFs CSF1 Top Management Commitment & Support CSF2 Change Management Process CSF3 BPR & Software Configuration CSF4 Project Champion CSF5 Business Plan, Vision CSF6 Effective Communication Plan CSF7 Post Implementation Evolution CSF8 Risk Management CSF9 Focused performance Measure CSF10 Quality Improvement Measure CSF11 Organization/Corporate Culture CSF12 Implementation Cost CSF13 Software development, testing, trouble shooting & crises management CSF14 IT Infrastructure CSF15 Selection of ERP Package CSF16 Data Conversion & Integrity CSF17 Legacy System Consideration CSF18 Vanilla ERP CSF19 System Documentation CSF20 Project Team CSF21 Implementation Strategy & Timeframe CSF22 Consultant Selection CSF23 Vendor/Customer Relationships CSF24 Project Management CSF25 Client Consultations CSF26 User Involvement CSF27 User Education & training CSF28 Personnel/Staff CSF29 Employee Attitude & Morale CSF30 Empowered Decision Makers Mean 4.64 4.7 4.7 4.66 4.76 4.66 4.68 4.62 4.68 4.68 4.56 4.64 4.66 4.66 4.66 4.66 4.76 4.68 4.54 4.62 4.56 4.54 4.48 4.56 4.46 4.6 4.42 4.5 4.52 4.44 Std. Deviation 0.48487 0.46291 0.46291 0.47852 0.43142 0.47852 0.47121 0.49031 0.47121 0.47121 0.50143 0.48487 0.47852 0.47852 0.47852 0.47852 0.43142 0.47121 0.50346 0.49031 0.50143 0.50346 0.50467 0.50143 0.50346 0.49487 0.49857 0.50508 0.50467 0.50143 N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Table 3. Descriptive Statistics for Questionnaire One and Two (Source: SPSS V 18.0) Descriptive Statistics Ranking of Critical Success Factors-RCSFs RCSF1 Top Management Commitment & Support RCSF2 Change Management Process RCSF3 BPR & Software Configuration RCSF4 Project Champion Mean 4.58 4.96 6.88 4.78 Std. Deviation 2.21396 2.82814 2.84741 2.81606 N 50 50 50 50
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Table 3. (contd) Descriptive Statistics for Questionnaire One and Two (Source: SPSS V 18.0) Descriptive Statistics Ranking of Critical Success Factors-RCSFs RCSF5 Business Plan, Vision RCSF6 Effective Communication Plan RCSF7 Post Implementation Evolution RCSF8 Risk Management RCSF9 Focused performance Measure RCSF10 Quality Improvement Measure RCSF11 Organization/Corporate Culture RCSF12 Implementation Cost RCSF13 Software development, testing, trouble shooting & Crises Management RCSF14 IT Infrastructure RCSF15 Selection of ERP Package RCSF16 Data Conversion & Integrity RCSF17 Legacy System Consideration RCSF18 Vanilla ERP RCSF19 System Documentation RCSF20 Project Team RCSF21 Implementation Strategy & Timeframe RCSF22 Consultant Selection RCSF23 Vendor/Customer Relationships RCSF24 Project Management RCSF25 Client Consultations RCSF26 User Involvement RCSF27 User Education & training RCSF28 Personnel/Staff RCSF29 Employee Attitude & Morale RCSF30 Empowered Decision Makers Mean 4.26 5.44 6.18 5.74 4.86 7.32 14.58 14.96 16.88 14.78 14.26 15.38 16.18 15.74 14.86 17.38 24.58 24.96 26.88 24.78 24.26 25.38 26.18 25.74 24.86 27.38 Std. Deviation 2.64042 3.13089 2.92554 2.59363 3.09054 2.02474 2.21396 2.82814 2.84741 2.81606 2.64042 3.06987 2.92554 2.59363 3.09054 2.05923 2.21396 2.82814 2.84741 2.81606 2.64042 3.06987 2.92554 2.59363 3.09054 2.05923 N 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
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Table 4. Rotated Components Matrix (Source: SPSS V 18.0)
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Table 5. Interpretation of Output from the Exploratory Factor Analysis (Source: SPSS V 18.0) Categorization in terms of Component for CSFs TVE List of CSFs for Indian SMEs Change Management Process BPR and Software Configuration Effective Communication Plan Risk Management Project Champion Data Conversion and integrity Post Implementation Evolution Component 2 This component was named as Enterprise related CSFs, it consist of the following items: 11.079% Focused Performance Measure Business Plan, Vision Implementation Cost Top Management Commitment and Support Software Developments, Testing, Trouble Shooting and Crises Management Legacy System Consideration Client Consolations Project Management 7.159% Vanilla ERP Vendor/Customer Relationship Component 5 This component was named as Employee/ HR Related CSFs, it consist of the following items: Component 6 This component was named as End-user related CSFs, it consist of the following items: Component 7 This component was named as Performance related CSFs, it consist of the following items: Component 8 This component was named as Quality related CSFs, it consist of the following items: Component 9 This component was named as Strategy related CSFs, it consist of the following items: Component 10 This component was named as Project related CSFs, it consist of the following items: Employee Attitude and Morale 6.325% Empowered Decision Makers User Education and Training 5.499% User Involvements Organizational /Corporate Cultures 5.221% System Documentation Quality Improvement Measures 4.456% Project Team Personnel/Staff 4.001% Selection of ERP Package Implementation Strategy and Timeframe IT Infrastructures 3.427% Consultant Selections .543 RCMV .895 .870 .858 .857 .836 .695 .905 .893 .703 .635 -.589 .830 .739 .573 .735 .652 .548 .851 .675 .811 .714 .805 .755 .877 .547 .708 .702 -.416 .811
Component 1 This component was named as Process related CSFs, it consist of the following items:
19.356%
Component 3 This component was named as Technology related CSFs, it consist of the following items: Component 4 This component was named as Vendor related CSFs, it consist of the following items:
9.891%
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Table 6. List of Key Critical Success Factors (KCSFs) for Indian SMEs (Source: SPSS V 18.0) S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Business Plan, Vision Top Management Commitment and Support Project Champion Focused Performance Measure Change Management Process Effective Communication Plan Risk Management Post Implementation Evolution BPR and Software Configuration Quality Improvement Measures Selection of ERP Package Organizational /Corporate Cultures IT Infrastructures System Documentation Implementation Cost Data Conversion and integrity Vanilla ERP Legacy System Consideration Software Developments, Testing, Trouble Shooting and Crises Management Project Team Client Consultations Implementation Strategy and Timeframe Project Management Employee Attitude and Morale Consultant Selections User Involvements Personnel/Staff User Education and Training Vendor/Customer Relationship Empowered Decision Makers Key Critical Success Factors-KCSFs Mean 4.26 4.58 4.78 4.86 4.96 5.44 5.74 6.18 6.88 7.32 14.26 14.58 14.78 14.86 14.96 15.38 15.74 16.18 16.88 17.38 24.26 24.58 24.78 24.86 24.96 25.38 25.74 26.18 26.88 27.38 Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Based on the results obtained from the above analysis, the following ERP implementation success model (see Figure 2) can be used to judge the success of ERP implementation at Indian SMEs. The list of Key Critical Success Factors (KCSFs) (see Table 5) for the success of ERP Implementation at Indian SMEs shows the ranking of all the CSFs in terms of their importance on 1 to 30
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points scale in order to identify which factors are most important in the success of ERP implementation at Indian SMEs and should get high priority.
Figure 2. ERP Implementation Success Model for Indian SMEs (Source: Authors, MS-PowerPoint) ERP consultants and ERP vendors are recommended to follow these guidelines for successful ERP implementation at India SMEs: Top management commitment and support of the organization are necessary for the successful ERP Implementation at Indian SMEs. Organizations should be willing to change their businesses process to fit the ERP software in order to minimize the degree of customization. To implement ERP systems successfully, the way organizations do business may need to change and the ways people do their jobs also need to change as well. The role of project champion is important factor for ERP success. Clear business plan, vision, goals and objectives are essential to guide an ongoing organizational effort for successful ERP Implementation. Successful ERP implementation needs effective communication plan to communicate about the scope, objectives, updates, changes etc among various functions/levels and especially between business and IT personnel. Successful ERP implementation should have some allowance for some kind of post evaluation for continue feedback and support. Successful ERP implementation requires risk management to minimize the impact of unplanned incidents in the project by identifying and addressing potential risk before significant consequences occur. The progress of the project should monitor actively through set mile stones and targets for successful ERP Implementation. Quality Improvement measures helps in successful ERP implementation. A key factor for the successful ERP implementation requires a corporate culture that emphasizes the value of sharing common goals over individual pursuits and the value of trust between partners, employees, managers and corporations.
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Success of ERP implementation is determined by the ERP implementation cost also. Software development, testing, troubleshooting and crises management are essential activities for the successful ERP implementation. IT readiness of the organizations including the architecture and skills leads to the success of ERP implementation. Finding a suitable ERP software package is a vital step for successful ERP Implementation. Much of the success of ERP implementation process and ultimately the success of the systems rely on the ability of the team to ensure the data accuracy during the conversion process. It is important to consider the current legacy system for the success of ERP implementation as it will be a good indicator of the nature and scale of the potentials problems. Enterprise commitment to implement vanilla version (Best Business Practice) of ERP helps in successful ERP implementation. No ERP implementation can be successful without system documentation (Documentation related to ERP configuration and user training). ERP implementation team should be balanced or cross functional and comprise a mix of external consultants and internal staff for the successful ERP Implementation. Implementation strategy and timeframe influence the success of ERP implementation. Right selection of ERP consultants for knowledge transfer from consultants to company leads to the successful ERP Implementation. Success of ERP implementations requires working well with the vendors and customers to resolve the software and other related problems. Organizations should have an effective project management strategy to control the ERP implementation process and to make it successful. Success of ERP implementation needs to keep its clients apprised of its project to avoid misconceptions. Successes of ERP implementations depend on the user involvement that makes the user comfortable with the ERP systems and increase their expertise and knowledge level. Users training and education is an important factor for the successful ERP implementation. The organization should have domain relevant skills (task knowledge), creativity-relevant skills (cognitive abilities), and task motivation (intrinsic and extrinsic) in order to achieve the creativity to contribute to the success of ERP implementation. Employee positive attitude and morale towards ERP adaption makes ERP implementation successful. It is needed that implementation team must be empowered to make necessary decisions in due time.
4. Conclusion The objective of this research paper was to identify and rank the critical success factors that influence success of ERP implementation at Indian SMEs. For this purpose, the paper analyzes Indian ERP consultants opinions and their ranking for CSFs as a parameter. After the analysis, the following conclusions are drawn: The top most critical success factor for the successful ERP implementation at Indian SMEs is clear business plan and vision followed by top management commitment and support etc see Table 4 and 5. Working hypothesis are accepted with some new categories see Figure 2.It shows that enterprise, vendor, technology and end-user related critical success factors of the large enterprise also have relationship with the successful ERP implementation at Indian SMEs .ERP systems are more than a new information technology. They are more business-processoriented than technology-oriented. (Davenport, 1998) says an ERP is not a project; it is a way of life. The research framework issues raised in this paper are intended for researchers and professionals who are interested in looking at the CSFs and KCSFs for the successful ERP implementation at Indian SMEs. In India, SMEs are the backbone of the economy and are today faced with global competition. Therefore, it becomes imperative to look for means of responding to the dynamic markets. ERP systems have become the most common IT strategy for most large companies. SMEs too are moving towards ERP systems. They need to adopt a proactive approach towards ERP and consider it as a business solution rather than a mere IT solution. This paper argues that ERP implementation in Indian SMEs should extend its scope beyond the configuration to the strategic, managerial, technical and organizational issues by considering these thirty critical success factors for successful ERP implementation at Indian SMEs that may put Indian SMEs on the competitive position. It can be concluded from the study that thirty critical success factors influence success of ERP implementation at Indian SMEs with different priority. It is hoped that more studies will be conducted in future in order to further examine the black box of ERP implementation at Indian SMEs and enable both practitioners and academic researchers to discover the best ways to make successful ERP implementation. Like any research, this approach and results have some limitations. The sample size is 50 which is comparatively small and that might affect the overall reliability. Limited sample size restricted to Indian SMEs may limit generalization. The factor analysis is only exploratory and not confirmative.
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There is inconsistency between definitions of SMEs size in various studies. Limited choices of implementation phases are examined. The information contained in this paper is intended only to provide a general summary. It does not suppose to be a complete description of the research issues. With respect to future research, a number of different approaches could be considered. Single company case studies could be used to uncover some of the critical success factors other than the covered thirty CSFs. Within sector case studies could be used to highlight the critical success factors faced by particular sector. Cross-sector case studies could be used to validate these conclusions as well as to elucidate differences among sectors. Separate critical success factors can be identified for each phase of the ERP implementation at Indian SMEs. A questionnaire-based survey could be used to validate the results of this research with the help of different theoretical framework and the large sample size for each phase of the ERP implementation. Finally, another aspect of ERP success that is success in adoption of ERP systems by the Indian SMEs can also be measured as an extension and validation of these works. Specific industries or organizational sizes might have different organizational characteristics and business requirements for ERP systems and this create a robust research framework and model which may be useful for understanding the critical success factors for the success of ERP implementation at Indian SMEs. Nomenclature CSF ERP N RCSF RCMV SMEs TVE Item related to Identification of Critical Success Factors, Questionnaire One. Enterprise Resource Planning Number of respondents in each questionnaire Item related to Ranking of Critical Success Factors, Questionnaire Two. Rotated Component Matrix Value Small-Medium Size Enterprise Total Variance Explain and
Appendix Table A. Definition of Indian SMEs (Source: MSME Development Act, 2006) Manufacturing Enterprises* Service Enterprises** Rs. 2.5 million/ Rs. 25 lakh (US$ 50,000) Rs. 1 million/ Rs. 10 lakh (US$ 20,000) Rs. 50 million/ Rs. 5 crore (US$ 1 million) Rs. 20 million/ Rs. 2 crore (US$ 40,00,000) Rs. 50 million/ Rs. 5 crore (US$ 1 million)
Classification Micro Small
Medium Rs. 100 million/ Rs. 10 crore (US$ 2 million) * Investment limit in Plant and Machinery ** Investment limit in Equipments ERP Implementation Phase It deals with Planning > Implementation
>
Stabilization
> Improvement
Planning: Choosing the ERP package, scoping the project, formulating the system architecture, and approval of budget and schedule. Implementation: Configuring and implementing the ERP software. Stabilization: After initial implementation, a stabilization stage occurs when implementation problems are fixed and organizational performance improves. Improvement: Achieving the benefits, updating new modules, focusing on continuous improvement and transformation.
Acknowledgement Our deepest sense of gratitude goes to Shanks, G., Parr, A., Hu, B., Corbitt, B., Thanasankit, T., Seddon, P. and Ifinedo, P. as their models have given the right direction for this research. References Akkermans, H .A. and Helden, K. V. 2002, Vicious and virtuous cycles in ERP implementation: a case study of interrelations between critical success factors, European Journal of Information Systems, Vol. 11, No.1, pp. 35.
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Al-Mashari, M. 2001, Process orientation through enterprise resource planning (ERP): a review of critical issues, Knowledge and Process Management, Vol.8, No.3, pp. 175-185. Brown, C. V. and Vessey, I. 1999, ERP implementation approaches: toward a contingency framework, in Proceedings of the 20th International Conference on Information Systems, Charlotte, North Carolina, pp. 441-416 Davenport, T.H. 1998, Putting the enterprise into the enterprise system, Harvard Business Review, Vol. 76 No. 4, pp. 121-31. Huin, S .F. 2004, Managing deployment of ERP systems in SMEs using multi-agents, International Journal of Project Management, Vol. 22, No.6, pp.511-517. Ifinedo, P. 2006a, Enterprise systems success measurement model: a preliminary study, Journal of Information Technology Management, Vol.17, No. 1, pp.14-33. Jacobs, F. R. and Bendoly, E. 2003, Enterprise resource planning: Developments and directions for operations management research, European Journal of Operational Research, Vol. 146, No.2, pp. 233. Kothari, C.R. 1991, Research Methodology: Method and Techniques Second Edition, New Age Publications (Academic), India. Markus, M. L. C.and Tanis, C. 2000, Multisite ERP implementations, Association for Computing Machinery, Communications of the ACM, Vol. 43, No.4, pp. 42. Martinsons, M. G. 2004, ERP in China: One package, two profiles, Communications of the ACM, Vol.47, No.7, pp. 65-68. Motwani, J., Mirchandani, D., Madan, M., Gunasekaran, A. 2002, Successful implementation of ERP projects: Evidence from two case studies, International Journal of Production Economics, Vol.75, No.1, pp.83-96. Muscatello, J. R., Small, M. H., Chen, I. 2003, Implementing enterprise resource planning (ERP) systems in small and midsize manufacturing firms, International Journal of Operations and Production Management, Vol. 23, No.8, pp.850. Nelson, R. J. and Millet, I. 2001, A foundation course in ERP and business process: rational, design, and educational outcomes, Seventh Americas Conference on Information Systems Boston, MA. Shanks, G., Parr, A., Hu, B., Corbitt, B., Thanasankit, T. and Seddon, P. 2000, Differences in critical success factors in ERP systems implementation in Australia and China: a cultural analysis, Proceedings of the Eighth European Conference on Information Systems, Vienna, Austria, pp. 537-44. Walden, E. A. and Browne, G. J. 2002, Information cascades in the adoption of new technology, Twenty-Third International Conference on Information Systems, Barcelona, Spain, pp. 435-443.
Biographical notes L. Ganesh had received M.S. (Gold Medalist), M.Phil, PGDM and Ph.D. from well known Indian universities. Presently he is an Asst. Professor at Christ University Institute of Management, Bangalore, India. He has more than 14 years of industrial and academic experience along with the 10 years of research work. He has spoken at various seminars, conferences and published a number of articles in leading journals. His area of interest includes General Management and Marketing. Arpita Mehta had received B.B.A., M.B.A., M.F.A., PGDHRM and Lic, (III) from well known Indian universities. She is an M.Phil, Research Scholar at Christ University Institute of Management, Bangalore, India. She has more than four years of industry experience. She is an Ex SAP FI/CO Consultant. Her research interest includes ERP, Entrepreneurship, Strategic Management and Research Methodology.
Received August 2010 Accepted October 2010 Final Acceptance Revised Form October 2010
MultiCraft
Supply chain management: theory and its future perspectives

Md. Mamun Habib
Dept. of Operations Management, Faculty of Business Administration, American International University BANGLADESH (AIUB) e-mail: mamunhabib@gmail.com,mamunhabib@aiub.edu Tel +88-01911321211
Abstract Supply chain management (SCM) has been widely researched in numerous application domains during the last decade. Despite the popularity of SCM research and applications, there remains considerable confusion as to its meaning. There are several attempts made by researchers and practitioners to appropriately define SCM. Amidst fierce competition in all industries, SCM has gradually been embraced as a proven managerial approach to achieving sustainable profits and growth. This is accomplished primarily by focusing on the whole SCM process to deliver the right products or services, in the right quantity, to the right place, at the right time and with the maximum benefits. The researcher utilized secondary data, including digital libraries, online databases, journals, etc. to review SCM research papers in different aspects. This exploratory study reveals the evolution of SCM in various industries, including manufacturing and service industries, and its future trends. This paper would unlock frontiers for substantial researchers in order to further development in respect of SCM areas. Keywords: supply chain management (SCM), manufacturing, service, education 1. Introduction During last decade, researchers usually focused on Supply chain management (SCM) issues in profit organizations. Research objectives may include adding value, reducing cost, or slashing response time in various parties involved in the manufacturing supply chain. However, very few studies were attempted in non-profit organizations. An extremely scarce number of research papers focused on SCM in the academia. Hay (1990) states that a profit organization attempts to maximize profits, whereas a non-profit organization considers monetary returns of less importance. Their major objectives may include improved literacy rate, better quality of life, equal opportunities for all genders or races, etc. The revenues gained by a non-profit organization would be used primarily to balance the expenditure of the organization. Due to conflicting objectives, managing a successful profit organization may be drastically different from a nonprofit organization (Firstenberg, 1996; Drucker, 1992). Recently, an increasingly large number of research studies highlight the criticalness of SCM as a means to assuring organizational success. SCM assists the business organization to compete in the dynamic international market. The objective of SCM is to incorporate activities across and within organizations for providing the customer value. This should also be applicable to the academia, which represents a type of non-profit organizations. The goal is to provide the society value by producing high quality graduates and research outcomes. An integrated educational supply chain involves coordination and information sharing up and down the process among all stakeholders. With technology facilitating information flow, a coordinated supply chain can be designed to meet the strategic, planning, and operating objectives of the educational institutions. It also means establishing effective and feasible relationships both inside and outside the organization (Sandelands, 1994). SCM is needed for various reasons: improving operations, better outsourcing, increasing profits, enhancing customer satisfaction, generating quality outcomes, tackling competitive pressures, increasing globalization, increasing importance of Ecommerce, and growing complexity of supply chains (Stevenson, 2002). Supply chains are relatively easy to define for manufacturing industries, where each participant in the chain receives inputs from a set of suppliers, processes those inputs, and delivers them to a different set of customers. With educational institutions, one of the primary suppliers of process inputs is
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Md. Mamun Habib / International Journal of Business, Management and Social Sciences, Vol. 1, No. 1, 2010, pp. 79-87
customers themselves, who provide their bodies, minds, belongings, or knowledge as inputs to the service processes (Habib and Jungthirapanich, 2009). This exploratory study reveals the following objectives: Analysis the overview of SCM through different citations. Review extensive literature reviews regarding SCM based on secondary data. Define the SCM and the evolution of SCM. Analysis the trends of SCM and its future perspectives. 2. Literature Review The term, supply chain management, has risen to eminence over the last ten years. About 13.55% of the concurrent session titles contained the words supply chain at the 1995 Annual Conference of the Council of Logistics Management. The number of sessions containing the term rose to 22.4% at the 1997 conference, just two years later. The term is commonly used to illustrate executive responsibilities in corporations (La Londe, 1997). SCM has become such a hot topic that it is difficult to pick up a periodical on manufacturing, distribution, marketing, customer management, or transportation without seeing any article about SCM or SCM-related topics (Ross, 1998). Some authors defined SCM in operational terms involving the flow of materials and products, some viewed it as a management philosophy, and some viewed it in terms of a management process (Tyndall et al., 1998), some viewed it as integrated system. Authors have even conceptualized SCM differently within the same article: as a management philosophy on the one hand, and as a form of integrated system between vertical integration and separate identities on the other hand (Cooper and Ellram, 1993). According to Christopher (1994), a supply chain is a network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer. An example of a basic supply chain is shown in Figure 1.
Figure 1. The Basic Supply Chain (Chopra and Meindl, 2001) The supply chain includes suppliers, manufacturers, distributors, retailers, and customers. The customers are the main focus of the chain, since the primary purpose of the existence of any supply chain is to satisfy customer needs, in the process generating profit for itself (Chopra and Meindl, 2001). SCM was initially related to the inventory management within a supply chain. This concept was later broadened to include management of all functions within a supply chain. According to Chopra and Meindl (2001), SCM engages the management of flows between and among stages in a supply chain to minimize total cost. This definition implies that SCM involves management of flows of products, information, and finance upstream and downstream in the supply chain. In the course of time, the most considerable benefits to businesses with advanced SCM capabilities will be radically improved customer responsiveness, developed customer service and satisfaction, increased flexibility for changing market conditions, improved customer retention and more effective marketing (Horvath, 2001). SCM is a concept, whose primary objective is to integrate and manage the sourcing, flow, and control of materials using a total systems perspective across multiple functions and multiple tiers of suppliers (Monczka, Trent and Handfield, 1994). Stevens (1989) stated the objective of SCM was to synchronize the customers requirements with materials flow to strike a balance among conflicting goals of maximum customer service, minimum inventory management, and low unit costs. The supply chain is viewed as a single process. Responsibility for the different divisions in the chain is not fragmented and transferred to functional areas such as manufacturing, purchasing, distribution, and sales. SCM calls for, and in the end depends on, strategic decision-making. Supply is a shared objective of practically every function in the chain and is of particular strategic importance because of its impact on overall costs, profits and market share. SCM calls for a different point of view on inventories that are utilized as a balancing mechanism of last, not first, resort. A latest approach to systems is required - integration rather than interfacing (Houlihan, 1988). SCM is delivering major economic benefits to businesses as diverse as manufacturing, retail, and service organizations, etc. (Horvath, 2001). The scope of SCM was further expanded to include re-cycling (Baatz, 1995). SCM deals with the total flow of materials from suppliers through end users (Jones and Riley, 1985). It highlights total integration of all stakeholders within the
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supply chain, a realistic approach is to consider only strategic suppliers and customers since most supply chains are too complex to attain full integration of all the supply chain entities (Tan et al., 1998). Supply chain strategy includes two or more firms in a supply chain entering into a long-term agreement; the development of mutual trust and commitment to the relationship; the integration of logistics events involving the sharing of demand and supply data; the potential for a change in the locus of control of the logistics process (La Londe and Masters, 1994). Manufacturers are able to develop alternative conceptual solutions, select the best components and technologies, and assist in design assessment by involving suppliers early in the design stage, (Burt and Soukup, 1985). SCM incorporates logistics into the strategic decisions of the business (Carter and Ferrin, 1995). Eventually, the philosophy developed and combined into a common body of knowledge that encompassed all the value-adding activities of the manufacturers and logistics providers (Tan, 2001). Many SCM strategic models have been investigated to link its vital role in overall strategic corporate planning (Frohlich et al., 1997; Watts et al., 1992). Experts agree that a formal supply chain strategy will be critical to both manufacturing and service industries (Kathawala, 2003). Such ambiguity suggests a need to examine the phenomena of SCM more closely to define clearly the term and concept, to identify those factors that contribute to effective SCM, and to suggest how the adoption of an SCM approach can affect corporate strategies, plans, operations and performance. Proper performance measures and metrics including activity-based costing and management may be helpful in identifying nonvalue-adding activities across a supply chain. Total Quality Management (TQM) methods can be utilized to eradicate these inefficiencies, thereby improving the overall effectiveness of a supply chain. Customer demands and supply chain relationships are the key in selecting the most appropriate method of target costing for supply chains. Activity-based, process-based, value-based and cost management approaches may be fit for TQM in SCM (Lockamy and Smith, 2000). 2.1 Definitions of SCM American Production and Inventory Control Society (APICS, 1990) define the supply chain as the processes from the initial raw materials to final consumption of the finished products linking across supplier-user industries. The supply chain constitutes all functions within and outside an industry, which enable the value chain to make products and provide services to customers (Inman, 1992). Some researchers suggested a clearer SCM definition by adding the information system necessary to monitor all of the activities (Lee, 2002; Morgan, 1995; Srinivas, 2002). Recently, the Council of SCM Professionals (CSCMP), which is the premier organization of supply chain practitioners, researchers, and academicians, has defined SCM as: SCM encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, SCM integrates supply and demand management within and across companies (Ballou, 2007). Scott and Westbrook (1991) described SCM as the chain linking each element of the manufacturing and supply process from raw materials to the end user. This management philosophy focused on how firms utilized their suppliers processes, technology, information, and capability to enhance competitive advantage (Farley, 1997), and the coordination of the manufacturing, materials, logistics, distribution and transportation functions within an organization (Lee and Billington, 1992). SCM is an integrative philosophy to manage the total flow of a distribution channel from supplier to the ultimate user (Cooper et al., 1997). Supply chain is defined as all the activities involved in delivering a product from raw materials to the customer including sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, delivery to the customer, and the information systems necessary to monitor all of these activities. SCM coordinates and integrates all of these activities into a seamless process. It links all of the stakeholders in the chain including parties within an organization and the external partners including suppliers, carriers, third party companies, and information systems providers (Lummus, 1999). SCM is defined as the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular organization and across businesses within the supply chain, for improving the long-term performance of the individual organization and the supply chain as a whole (Mentzer and et al., 2001). Most of the recent SCM literature focused on the purchasing function, stating that it was a basic strategic business process, rather than a specialized supporting function (Wisner and Tan, 2000). It was a management philosophy that extended traditional internal activities by adopting an inter-enterprise scope, allowing trading partners together with the common goal of optimization and efficiency (Harwick, 1997). The customized definition for the service industry is as follows: The SCM for the service industry is the ability of the company/firm to get closer to the customer by improving its supply chain channels. The services supply chain will include responsiveness, effectiveness, efficiency, and controlling (Kathawala, 2003). One of the primary suppliers of process inputs is customers themselves in service organizations. This concept of customers being suppliers is recognized as customer-supplier duality. The duality implies that service supply chains are bi-directional (Sampson, 2000). The concept may be applicable to the academia as well. Integrated SCM is about going from the external customer and then managing all the processes that are needed to provide the customer with value in a horizontal way (Monczka and Morgan, 1997). Generally, SCM comprises integrated functions from raw
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materials to final products. It also covers integrated management of every organization throughout the whole chain (Horvath, 2001; Srinivas, 2002). An analysis of SCM for manufacturing illustrates the integrated processes required for managing goods from the initial source of supply to point of consumption. It also includes a wide range of activities that material and service suppliers, manufacturers, wholesalers, and retailers have performed for years. Each supply chain participants manage to enhance performance of their own enterprises. Very little concentration is given to the benefits of managing the total supply chain process on an integrated basis (Closs, 1995). SCM, as applied to manufacturing, has been defined differently. These varieties of definitions often carry through to the extent that the key people in the same organization are not speaking about the same things, when they discuss the concept of SCM (Monczka and Morgan, 1997). First, there are definitions characterized by the simplest concepts of SCM, one is the ability to get closer to the customer (Weil, 1998). Another is that the supply chain is the flow of information and material from suppliers to customers (Crom, 1996). A companys supply chain, either internal or external, is a resource to be exploited for better market position and enhanced competitive advantage. Strategic use of this resource requires that companies do the following (Monczka and Morgan, 1997): (1) Gain a closer understanding of their customer and future customers needs, both nationally and internationally; (2) Understand their suppliers core competencies in meeting customer needs; (3) Determine where redundancies and inefficiencies lie within the supply chain in relation to current and future competitive needs; (4) Develop relationships and alliances with suppliers who have key competencies that strengthen, supplement, and enhance internal core competencies nationally and internationally. SCM, from the viewpoint of a manufacturing sector, may be defined as taking control of all goods within the supply chain, all materials, no matter how to handle or manage (Sandelands, 1994). In particular, SCM is the process of effectively managing the flow of materials and finished goods from retailers to customers using the manufacturing facilities and warehouses as potential intermediate steps (Sengupta and Turnbull, 1996). 2.2 Evolution of SCM The supply chain literature review was conducted to study the past researches. Before the 1950s, logistics was thought of in military terms (Ballou, 1978). It had to do with procurement, maintenance, and transportation of military facilities, materials, and personnel. The study and practice of physical distribution and logistics emerged in the 1960s and 1970s (Heskett et al., 1973). The logistics era prior to 1950 has been characterized as the dormant years, when logistics was not considered a strategic function (Ballou, 1978). Around 1950s changes occurred that could be classified as a first Transformation. The importance of logistics increased considerably, when physical distribution management in manufacturing firms was recognized as a separate organizational function (Heskett et al., 1964). The SCM concept was coined in the early 1980s by consultants in logistics (Oliver and Webber, 1992). The authors emphasized that the supply chain must have been viewed as a single entity and that strategic decision-making at the top level was needed to manage the chain in their original formulation. This perspective is shared with logisticians as well as channel theorists in marketing (Gripsrud, 2006). SCM has become one of the most popular concepts within management in general (La Londe, 1997) since its introduction in the early 1980s (Oliver and Webber, 1992). A number of journals in manufacturing, distribution, marketing, customer management, transportation, integration, etc. published articles on SCM or SCM-related topics. The evolution of SCM continued into the 1990s due to the intense global competition (Handfield, 1998). Berry (1994) defined SCM in the electronics industry. Drucker (1998) went as far as claiming there was a paradigm shift within the management literature: One of the most significant changes in paradigm of modern business management is that individual businesses no longer compete as solely autonomous entities, but rather as supply chains. Business management has entered the era of inter-network competition and the ultimate success of a single business will depend on managements ability to integrate the companys intricate network of business relationships. Fernie (1995) adopted SCM in the National Health Service. Sampson (2000) explored the customer supplier duality in the service organizations as it pertained to SCM in the service industry. Kathawala and Abdou (2003) explored supply chain application to the service industry. OBrien and Kenneth (1996) proposed an educational supply chain as a tool for strategic planning in tertiary education. The study was based on a survey among employers and students. Survey findings revealed that integration and coordination among students and employers should have been promoted. Cigolini et al. (2004) explored a framework for SCM based on several service industries including automobile, grocery, computers, book publishing etc. According to the case study conducted at the City University of Hong Kong, Lau (2007) defined educational supply chain as the Student and the Research supply chain. Habib (2009) represents the first large scale empirical study that systematically investigate input of the university, output of the university through educational SCM. This exploratory research addresses the education supply chain, the research supply chain, and educational management as major constituents in an Integrated Tertiary Educational Supply Chain Management (ITESCM) model (Habib and Jungthirapanich, 2010). Its applicability was successfully verified and validated through survey data from leading tertiary educational institutions around the world (Habib, 2010).
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The emergence and evolution of SCM may be depicted as a timeline shown in Figure 2:
1950 Initiated logistic concept. 1980 1995 Initiated the SCM concept. Initiated SCM in the Service Industry.
1970 Matured logistic concept
1950 - 1970
1970 - 1980 Logistic in SCM
1980 - 1990
1990 - 2008
SCM in the Manufacturing Industry. 1985
Educational SCM 2007
Figure 2. Evolutionary Timeline of SCM (Habib and Jungthirapanich, 2008) 3. Research Methodology The analysis of this research is based on secondary data, including online databases, digital libraries, books, journals, conference papers, etc. Extensive SCM research papers of academicians and practitioners are evolved from renowned international journals, namely PROQUEST, EMERALD, EBSCO, IEEE, ACM, JSTOR, Science Direct, etc. Evolutionary timeline and future trends were developed based on the analysis of literature. The author classifies SCM in different areas of Manufacturing and Service industries. 4. Results and Discussion From all of the above discussions, different citations for the SCM in this research have been summarized in Table 1. This summary described in different SCM aspects in different papers, articles. In this table, SCM is mainly classified into the manufacturing or the service industry. Research studies on SCM in the manufacturing industry are focused in different areas. Based on the citations and definitions, these areas are material flow, integrative, strategic, management, others including inventory, flow of orders, information flow, finished goods flow, coordination, planning, goods progress, networking, design assessment, chain link, recycling, competitive advantage, performance, collaboration, aerospace, and quality. SCM in the service industry is classified into general and education areas. In this study, the researcher focused on sixty (60) references on SCM in the manufacturing and the service industry. Among them, fifty two (52) citations are related to SCM in the manufacturing industry. Eight (8) papers, two of which aim at SCM in education, are relevant to the service industry. Only one research relates to both manufacturing and service sectors. Table 1. A Summary of SCM Citations in Manufacturing and Service Industries
Citations Jones and Riley, 1985 Burt and Soukup, 1985 Houlihan, 1988 Stevens, 1989 Jones, 1989 Scott and Westbrook, 1991 Inman, 1992 Lee and Billington, 1992 Watts et al., 1992 Cooper and Ellram, 1993 Sandelands, 1994 Christopher, 1994 La Londe et al., 1994 Monczka et al., 1994 Berry, 1994 Fernie, 1995 Closs, 1995 Carter and Ferrin, 1995 Baatz, 1995 Morgan, 1995 Crom, 1996 Sengupta and Turnbull, 1996 Material Flow # Manufacturing Integrative Strategic Mgt. Others Design Assessment Inventory Flow of Orders Chain Link Value Chain Coordination Planning # # Networking # # # # # # # # Recycling Inform. System Information Flow Finished Goods Flow # # # Service General Education
# # #
# #
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Table 1(contd). A Summary of SCM Citations in Manufacturing and Service Industries

Citations Material Flow OBrien and Kenneth, 1996 Farley, 1997 Frohlich et al., 1997 Monczka and Morgan, 1997 Cooper et al., 1997 Harwick, 1997 Tyndall et al., 1998 Drucker, 1998 Tan et al., 1998 Weil, 1998 Lummus, 1999 Gilmour, 1999 Tan, 1999 Sampson, 2000 Wisner and Tan, 2000 Wisner and Tan, 2000 Stank, 2000 Tan, 2001 Chopra and Meindl, 2001 Horvath, 2001 Mentzer et al., 2001 Tan, 2002 Lee, 2002 Stevenson, 2002 Srinivas, 2002 Kathawala, 2003 Bales, 2004 Cigolini et al., 2004 Zailani, 2005 Samaranayake, 2005 Power, 2005 Tummala et al., 2006 Kim, 2006 Sila et al., 2006 Ballou, 2007 Lee, 2007 Lau, 2007 Habib and Jungthirapanich, 2009 Competitive Advantage Planning # # # # # # # # # Coordination Performance # # # Transportation # # # # # # Collaboration Coordination Inform. System Goods Progress Inform. System Aerospace # # # # # # # Performance # # # Manufacturing Integrative Strategic Mgt. Others Service General Education #
# #
Assessment Performance Quality Planning Performance # #
A comparative analysis of SCM in different aspects, including manufacturing industries and service industries, is identified in this reserach. Figure 3a depicts SCM in manufacturing industries and service industries including educational institutions. On the other hand, Figure 3b focused SCM in manufacturing industries, service industries excluding educational institutions, and education.
Figure 3a. A Comparative Analysis of SCM in Different Aspects
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Figure 3b. A Comparative Analysis of SCM in Different Aspects 5. Conclusion From the above mentioned Table 1, Figure 3a and 3b, it is quite clear that, few (13%) and very few researchers (5%) conducted SCM in the service industries and education respectively. Most of them (87%) conducted SCM in the manufacturing industries. It seems to be that SCM in the educational institutions needs more to be explored in the future. It is a surprising fact that researchers develop supply chain models mostly for improving business operations. Few, particularly academic researchers, do not realize that the research on academic SCM may also be conducted for their own educational institutions. The performance of the SCM depends on the seamless coordination of all supply chain stakeholders to ensure attainment of desirable outcomes. This research is based on only secondary data, though it is the limitation of this paper, however, this study would unlock frontiers for substantial researchers in order to further development in respect of supply chain management arena. References Baatz, E.B., 1995. CIO100-best practices: the chain gang, CIO, Vol.8 No.19, pp.46-52. Ballou, Ronald H., 2007. The evaluation and future of logistics and supply chain management, European Business Review, Vol.19 No.4, pp. 332-348 Ballou, R., 1978. Basic Business Logistics, Prentice-Hall, Englewood Cliffs, NJ. Berry, D.R. Towill and N. Wadsley, 1994. Supply chain management the electronics products industry, International Journal of Physical Distribution & Logistics Management, Vol. 24, No. 10, pp. 20-32. Burt, D.N. and Soukup, W.R., 1985. Purchasings role in new product development, Harvard Business Review, Vol. 64, No.5, pp. 90-7 Carter, J.R. and Ferrin, B.G., 1995. The impact of transportation costs on supply chain management, Journal of Business Logistics, Vol.16, No.1, pp. 189-212. Cigolini, R., M. Cozzi and M. Perona, 2004. A new framework for supply chain management, International Journal of Operations & Production Management, Vol. 24, No. 1, pp. 7-41. Closs, D. J, 1995. Enhance supply chain effectiveness, Transportation & Distribution, April, Vol. 36, No.4, pp.82. Crom, S., 1996. De fuse multi-cultural clashes, Transportation & Distribution, July, Vol. 37, No.7, pp.84. Cooper, M., Ellram L.M., Gardner J.T., and Hanks A.M., 1993. Meshing multiple alliances, Journal of Business Logistics, Vol. 18, No. 1, pp. 67-89. Cooper, M.C., Lambert D.M., and Pagh J.D., 1997. Supply chain management: more than a new name for logistics, The International Journal of Logistics Management, Vol. 8, No. 1, pp. 1-14. Christopher, M., 1994. Logistics and Supply Chain Management, Pitman Publishing, New York, NY. Chopra, S. and Meindl, P., 2001. Supply Chain Management, Prentice Hall, NJ. Drucker, P.F., 1998. Practice of Management, Butterworth Heinemann, Oxford. Farley, G.A., 1997. Discovering supply chain management: a roundtable discussion, APICS - The Performance Advantage, Vol.7 No.1, pp. 38-9. Fernie, J. and Rees C., 1995. Supply chain management in the national health service, The International Journal of Logistics Management, Vol. 6, No. 2, pp. 83-92.
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Firstenberg, P.B., 1996. The 21st Century Nonprofit: Remarking the Organization in the Post-Government Era, The Foundation Center, New York, NY. Frohlich, M., Dixon, J.R. and Arnold, P., 1997. A taxonomy of supply chain strategies, Proceedings of the 28th Annual Meeting of the Decision Sciences Institute, San Diego, CA. Gripsrud, G. 2006. Suuply chain management-back to the future? International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 8, pp.643-659. Habib, M. and Jungthirapanich C., 2008. An integrated framework for research and education supply chain for the universities, Proceedings of the 4th IEEE International Conference on Management of Innovation and Technology, IEEE Computer Society, Piscataway, USA, Sep., pp. 1027-1032 Habib, M., 2009. An Integrated Educational Supply Chain Management (ITESCM), Ph.D. Dissertation, Graduate School of Information Technology, Assumption University of Thailand, December. Habib, M. and Jungthirapanich, C., 2009. Research Framework of education supply chain, research supply chain and educational management for the universities, International Journal of the Computer, the Internet and Management (IJCIM), Thailand, Vol 17, No. SP1, pp.24.1-8. Habib, M. and C. Jungthirapanich, 2010. An Empirical Research of Educational Supply Chain for the Universities, The 5th IEEE International Conference on Management of Innovation and Technology, Singapore, June. Habib, Mamun, 2010. An Empirical Research of ITESCM (Integrated Tertiary Educational Supply Chain Management) Model Editor, Management and Services, Sciyo.com, October, ISBN 978-953-307-118-3 Hay, R.D., 1990. Strategic Management in Non-Profit Organizations: An Administrators Handbook, Quorum Books, Westport, CT. Handfield Robert B., Kannan Vijay R., Tan Keah Choon, 1998. Supply chain management: supplier performance and firm performance, International Journal of Purchasing and Materials Management, AZ USA, pp.2-9, Aug. Heskett, J., Ivie, R. and Glaskowsky, N., 1964. Business Logistics, Management of Physical Supply and Distribution, the Ronald Press Company, New York, NY. Heskett, J.L., Glaskowsky,N.A. Jr and Ivie, R.M., 1973. Business Logistics, 2nd ed., The Ronald Press, New York, NY, pp.14-21. Horvath, Laura, 2001. Collaboration: the key to value creation in supply chain management, Supply Chain Management: An International Journal, Vol. 6 No. 5, pp. 205-207. Houlihan, J.B., 1988. International supply chains: a new approach, Management Decision, Vol. 26, No. 3, pp. 13-19. Harwick, T., 1997. Optimal decision-making for the supply chain, APICS - The Performance Advantage, Vol.7 No. 1, pp. 42-4. Inman, R.A. and Hubler J.H, 1992. Certify the process not just the product, Production and Inventory Management Journal, Vol. 33, No. 4, pp. 11-14. Jones, T. and Riley D.W., 1985. Using inventory for competitive advantage through supply chain management, International Journal of Physical Distribution and Materials Management, Vol. 15, No. 5, 1985, pp. 16-26. Kathawala, Y. and Abdou K., 2003. Supply chain evaluation in the service industry: a framework development compared to manufacturing, Managerial Auditing Journal, Vol. 18, No. 2, pp.140-149. Lockamy, A. and Smith, W.I., 2000. Target costing for supply chain management: criteria and selection, Industrial Management & Data Systems, Vol.100, No. 5, pp. 210-8. Lau, Antonio K.W, 2007. Educational supply chain management: a case study, Emerald Group Publishing Limited, ISSN 10748121, Vol. 15 No.1, 2007, pp.15-27 La Londe, B. J., 1997. Supply chain management: myth or reality? Supply Chain Management Review, Vol. 1, Spring, pp. 6-7. La Londe, B. J. and Masters J.M., 1994. Emerging logistics strategies: blueprints for the next century, International Journal of Physical Distribution and Logistics Management, Vol. 24, No. 7, pp. 35-47. Lee, H.L. and Billington, C., 1992. Managing supply chain inventory: pitfalls and opportunities, Sloan Management Review, Vol. 33 No.3, pp.65-73. Lee C. B., 2002. Demand Chain Optimization Pitfalls and Key Principles, USA, Nonstop Solution. Lummus, R. and Vokurka R.J., 1999. Defining supply chain management: a historical perspective and practical guidelines, Industrial Management & Data Systems, Vol. 99, No.1, pp.11-17. Mentzer, John T., 2001. Defining supply chain management, Journal of Business Logistics, Vol. 22 No. 2, 2001 Monczka, R. M. and Morgan, J., 1997. Whats wrong with supply chain management, Purchasing, 16 January, pp. 69-72. Monczka, R., Trent R., and Handfield R., 1994. Purchasing and Supply Chain Management, Cincinnati, OH: South-Western College Publishing, Chapter 8. Morgan J. and Monczka R.M., 1995. Alliances for New Products, Purchasing Journal, Vol. 10, No. 1, pp. 103-109. Oliver, R.K. and Webber, M.D., 1992. Supply-chain management: logistics catches up with strategy, in Christopher, M. (Ed.), Logistics: The Strategic Issues, Chapman & Hall, London. OBrien, Elaine M. and Kenneth R., 1996. Educational supply chain: a tool for strategic planning in tertiary education?, Marketing Intelligence & Planning, Vol. 14, No. 2, pp.33-40. Ross, D. F., 1998. Competing Through Supply Chain Management, New York, NY: Chapman & Hall.
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Sampson, Scott E., 2000. Customer-supplier duality and bidirectional supply chains in service organization, International Journal of Service Industry Management, Vol. 11, No. 4, pp.348-364. Sandelands, E., 1994. Building supply chain relationships, International Journal of Physical Distribution & Logistics Management, Vol. 24 No. 3, pp.43-4. Scott, C. and Westbrook, R., 1991. New strategic tools for supply chain management, International Journal of Physical Distribution & Logistics Management, Vol. 21 No. 1, pp. 23-33. Sengupta, S. and Turnbull, J. 1996. Seamless optimization of the entire supply chain, IIE Solutions, Vol. 28, No. 10, pp.28-33. Srinivas T., 2002. Enhancing supply decisions through the use of efficient marginal cost models, The Journal of Supply Chain Management, pp. 4-10, Fall. Stevenson, W.J., 2002. Operations Management, 7th ed., McGraw-Hill/Irwin, NY. Stevens, G.C., 1989. Integrating the supply chains, International Journal of Physical Distribution and Materials Management, Vol. 8, No. 8, pp. 3-8. Tyndall, G., Gopal C., Partsch W., and Kamauff J., 1998. Supercharging Supply Chains: New Ways to Increase Value Through Global Operational Excellence, NY: John Wiley & Sons. Tan, K.C., Handfield, R.B. and Krause, D.R., 1998. Enhancing firms performance through quality and supply base management: an empirical study, International Journal of Production Research, Vol. 36, No. 10, pp. 2813-37. Tan, K.C., 2001. A framework of supply chain management literature, European Journal of Purchasing and Supply Management, Vol.7 No.1, pp. 39-48. Watts, C.A., Kim, K.Y. and Hahn, C.K., 1992. Linking purchasing to corporate competitive strategy, International Journal of Purchasing and Materials Management, Vol. 92, pp. 2-8. Wisner, J.D. and Tan, K.C., 2000. Supply chain management and its impact on purchasing, Journal of Supply Chain Management, Vol.36 No.4, pp. 33-42. Weil, M., 1998. Customize the customer, Manufacturing Systems,Vol.16 No. 4, pp.54-64.
Biographical notes
Dr. Md. Mamun Habib accomplished Ph.D. and M.S in Computer & Engineering Management from Assumption University of Thailand in 2006 and 2009 respectively. He achieved President and Vice-President Award for his outstanding performance in both Ph.D. and Master degree level. He developed a model of supply chain management for tertiary educational institutions in his doctoral degree level. He performed B.Sc. in Electrical and Electronics Engineering from Bangladesh University of Engineering & Technology (BUET) in 2002. He is presently working as Assistant Professor in the Operations Management department at the faculty of Business Administration in American International University Bangladesh (AIUB). He has about 8 years experience in the field of teaching for graduate and postgraduate students, training, consultancy and research. As a researcher, he has about 20 research papers and articles in renowned Conferences, reputed Journals and Book chapters. He is the Editor/Editorial board member/Reviewer of different books, reputed international journals and conferences. He is also serving as Ph.D. External examiner (Evaluator of Ph.D. Dissertation). His interested research areas are supply chain management, educational management, production & operations management, engineering management, technology management. He is member of different professional organizations including IEEE, IEB, AIMS, etc.
Received September 2010 Accepted October 2010 Final acceptance in revised form October 2010
MultiCraft
International Journal of Business, Management and Social Science Vol. 1, No. 1, 2010, pp. 88-99
Why Information Technology (IT) systems led organisational change does not work
M.P.J. Pollard1*, H. Soriano-Meier2, P.L. Forrester3, J.A. Garza-Reyes4, L. Rocha-Lona5
1 Global Business Mapping Ltd, UK Northampton Business School, The University of Northampton, UK 3 Birmingham Business School, The University of Birmingham, UK 4 School of Technology, The University of Derby, UK 5 Business School, National Polytechnic Institute, MEXICO * Corresponding Author: e-mail: martin.pollard@gbmintl.com, Tel +44 (0)1604 642369 2*
Abstract Information Technology (IT) systems-led organisational change has been the main agent for change since computer systems became available to commerce in the 1960s; IT systems-led organisational change as a phrase is used to describe a process or proprietary method (e.g. SAP have amongst others, ASAP methodology for their ERP implementation) where a new or revised IT system (computers and/or software) is introduced to an organisation and as a result the organisations structure is modified to obtain maximum use and benefit from the new system. It has become apparent over the years that despite the continuous use of IT and associated change methodologies, the success rates achieved remain poor. Why is it that some decades on from when this process became prevalent, when organisations use continuous improvement methodologies such as six sigma, kaizen and many others, to reduce costs and increase effectiveness of commercial processes that this approach has not been applied to change methodologies? This paper aims at investigating this. The paper reviews relevant academic literature on the subject at component and process levels. Then, a primary survey was constructed to gather facts and opinions from professionally qualified Project Managers to investigate whether there was any correlation with the lead authors experiences gathered over a lifetime of working in this field. From the study four main points emerged. One; culture, cannot be easily changed. Two; cultural and psychological forces are responsible for a high percentage of project failures. Three; project resources and structures lack the skills required to address points one and two. Four; the holistic approach to organisational change offers a philosophy capable of addressing the issues identified in this research as it encompasses a multi discipline combination of methods appropriate to each risk in a project; and additionally an unexpected finding that one third of all relevant projects are judged to have failed by some measure. Keywords: IT systems, organisational and cultural change, ERP Implementation, IT Project Management, psychosocial 1. Introduction The lead author has spent his whole career, from 1969 to date, working in IT (information technology) and has managed IT led organisational change projects since 1980 and has led a large number of organisational change projects which were critical to the organisations concerned. It has become apparent over the years that despite the continuous use of the methodologies that are the subject of this paper and at least three reinventions or revisions of preferred IT hardware structures and consequential business solutions (large centralised mainframe, departmental and distributed mini computers, and mixed systems with centralised data), the success rates achieved for implementing solutions remain poor. Since the late 1960s the use of computers in organisations to manage their information and manufacturing processes has steadily increased. As the reach and influence of computerisation has evolved and became more sophisticated, it became necessary to modify the organisational procedures and structures to make the best use of any new capabilities. As a result, IT systems ledorganisational change has become the prominent driver of organisational change in modern times and has been especially prevalent since the mid-1970s. It is recognized by the authors that the majority of IT projects, whilst changing the way business processes are performed, are not large enough to affect any significant fundamental organisational change. This paper is only
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concerned with those projects of sufficient size and reach that the sponsors decide to use it as a catalyst for wholesale organisational restructuring and change. Normally these aim at removing perceived weaknesses in the organisations structure or make changes in response to evolving market forces or strengthen the political power of key employees. Typically these types of projects are framed as, but not limited to, Business Process Reengineering (BPR) or Enterprise Resource Planning (EPR) projects. Both are capable of affecting large sections of, or even all parts of, an organisation. Business Process Reengineering is a systems independent analytical process to track information flows in and between electronic systems, manual systems and unofficial systems with a view to reorganizing them to maximize benefits from new technologies and processes whilst eliminating redundant practices (Tennant and Wu, 2005; Mansar and Reijers, 2007; Sia and Neo, 2008; Kamhawi, 2008a; Abdolvand et al., 2008; Eardley et al., 2008). It was developed as a methodology in the late 1980s in response to the desire to move from a systemic approach to change of earlier years to a more holistic and process-orientated view of change. ERP derives from Manufacturing Resource Planning (MRP2) and Materials Requirements Planning (MRP) developed in the 1960s and 70s and was reinvented with increased scope in the late 1980s. There are many definitions of ERP, see for example: Kumar and Keshan, 2009; Chtioui, 2009; Johansson and Sudzina, 2008; Helo et al., 2008; Kamhawi, 2008b; Benco and Prather, 2008; Dawson and Owens, 2008; Vilpola, 2009; Muscatello and Chen, 2008. These describe ERP slightly differently, but all agree it is a single organisation-wide system holding a single instance of data accessible across the enterprise as required. Pellerin and Hadaya (2008) discuss the similarities of the scope of BPR and ERP in precipitating organisational structure change, suggesting the main difference is organisational reach. Since the late 1990s suppliers of ERP systems have sought to market ERP as the next significant shift in organisation evolution to support the push for cost reduction through integration and efficiency. The concept is of a single unified and integrated organisation-wide information system operating from a single set of shared information capable of supporting the reduction of cost through scale. Commerce has bought into this concept and most large companies in the world have installed these systems, though with varied and often limited success, but driven by the perceived need to match their competitors. Given the nature of this research and the possibility for wide ranging interpretation of definitions and meaning of terms, the following definitions were given to allow consistent responses. This research and survey was concerned with two different styles of project defined as: Systems-Led Organisational Change (SLC) this is where the project is focussed on hard systems primarily changing business processes, procedures, and/or IT systems to facilitate organisational change or improvement. Soft Systems Organisational Change (SSC) this is where the project is focussed on soft systems primarily changing cultural, attitudinal, and/or inter/intra group politics and dynamics to facilitate organisational change or improvement. It is possible that projects have aspects of both types but the definition regards the major or primary aspect of the project for its classification. Project success can be measured in many different ways depending on the point of view of the reviewer; it is rare for a change project to completely fail (Baccarini, 1999; Parviz 2002; Tukel and Rom 2001). Projects are generally continued at least until the primary objectives are achieved, rather, degrees of difficulty tend to indicate degrees of success. However, for this survey and analysis, project success was defined as where a project achieves all of the primary and most of the secondary change objectives upon completion broadly within agreed timescales but without the need for significant re-planning and where there has been little or no objection from the project sponsors. On the other hand, project failure was defined as where there has been significant difficulty in achieving objectives for any reason that have resulted in the need for considerable re-planning and sequencing to meet objectives. Where time, resource, and cost pressures have also been significant and where considerable review has been necessary. Following a review of the literature and internet sources for top reasons cited for project success or failure, lists were compiled and incorporated in the survey as well as offering the opportunity for respondents to offer their own reasons. 2. Literature Review Some authors understand the link between change and people; their attitudes and (un)willingness to change and the role that accepted and extremely comfortable practice plays as a resistor; Giddens' (1984) structuration theory and its derivative, adaptive structuration theory (AST) (DeSanctis and Poole, 1994), both feature strongly in the literature offering explanation of how change is socialized and normalized as an iterative process where gradual acceptance by the willing occurs. Slower acceptance by the unwilling occurs as social acceptance grows. Giddens (1984) also seeks to explain the resistors to change and their potential impact on the overall process. AST builds on Giddens (1984) work by dealing specifically with structuration within Information Technology (IT) change. What is missing from the literature is the recognition of the power of these psycho-social components as the key elements capable of undermining a project. The literature often talks about organisational culture as a changeable component (Senior and Fleming, 2006; Gordon, 2002; Smith 2005; Staber and Sydow, 2002). Whilst recognizing organisational culture has high importance, the inertia for it to remain static is grossly underestimated by most project participants and writers. Markus (2004) produced a seminal paper addressing the issue of using technical change to stimulate organisational change, but in so doing highlights this as a particularly risky approach. Markus (2004) argues that an incremental and iterative approach to technochange is invariably the way forward, a convincing
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argument, but one which conflicts with the goals and intentions of, for example, the Business Process Reengineering (BPR) approach which will be reviewed below. But the lessons provided by Markus (2004) are largely overlooked by writers on ITdriven change. The issue of organisational change is complex. Organisational culture is formed by a combination of: a) environmental culture, which exists locally to the employees consisting of lifestyle and learned environmental rules and is very powerful force for stability; and b) a constructed culture, based on management/organisational goals and objectives. Organisational culture is strongly influenced by the personality traits of most senior managers and stakeholders, who set the management style, with interpretation by managers and process experts at lower levels each wishing to make their mark on the company culture. Social culture in the community on a town or country scale is the result of many lifetimes of effort and evolution - the emphasis is on evolution. Culture on this scale cannot change quickly. It creates a framework for living in a socially acceptable manner. It is a largely static entity that changes slowly taking many years to embed change in societys attitudes. For example, consider the introduction of seatbelts, drink driving regulations, use of mobile phones in cars, smoking limitations in public; all required changes to the law in the UK. Whilst these changes are immediate, social acceptance takes much longer structuration theory. Organisational culture is the same. It represents the way things are done, how things are perceived, common practices, and how the organisation operates. It is the framework of rules and practices that have evolved over the lifetime of the organisation. This cannot be altered by whim. This tends to be underestimated and is often one of the main reasons projects get into difficulties. So what makes IT led organisational change different from other organisational change initiatives? The answer is the composition of the people who lead these types of project. They are often always untried or tested in the field of social and organisational change, and generally are IT technicians (Wang et al., 2008). What is the most common trait of an IT technical Manager? Poor interpersonal skills when compared to that of people managers, such as HR and Operations Managers. Normally these people choose an IT career because they are technologically minded and prefer to work with systems and machines rather than with people. Over time they progress and a few end up as managers. In most situations, there is no training or education that the authors are aware of currently available and designed to produce a technical manager without first needing to be a technical practitioner. Even fewer organisations would consider putting a generalist manager in charge of IT. In the past IT has reported to the Finance Director and more recently to the Operations Director, but there is always a technically minded IT Manager in place that would generally take on the management of large-scale systems change because they are the most capable person currently on the payroll. The most important issue to emerge from this review is that the reasons for the lack of improvement of success rates are a combination of an inappropriate change model used and a lack of understanding of the forces at play and their appropriate responses by both project sponsors and Project Managers. It is also the case that there are appropriate methodologies described in published research that are not translating into practice. It is clear that organisational change can only be understood and executed from a holistic view (Cao and McHugh, 2005) of the process and the use of multiple methodologies in a single project. Hauschildt et al. (2000) correctly identified the multiple talents required for success and correctly identified the need for multi-talented teams rather than a single manager. However, this has not translated into commercial acceptance as there is no evidence of a change in recruiting requirements to support this. It is clear from the literature that the most significant component in any organisational change initiative is the people, their perceptions of reality and the framework (culture) within which they operate. This component is rarely addressed when determining the professional skills needed within a project, so making it the highest risk to failure. From the literature, Gordon (2002) identifies that organisational culture change can be a slow process and DeSanctis and Poole (1994) have a good understanding of the impact of culture on change (and change on culture). However, the authors have found little if any further reference to this in other writings. It is felt that this is indicative of the general lack of understanding of how culture develops and changes over time and its impact on the change process. At the start of this review, the authors were of the opinion that the major factor causing failure was the lack of the project managers skills, which was caused by a failure of academic research to find its way into commercial acceptance and that they were largely untried or tested; whilst the latter is supported by previous research (Wang et al., 2008), it would appear that the lack of psychological skills plays a much bigger role. Gordon (2002) quoted a number of failed implementations which bear an uncanny resemblance to the first authors personal experiences of such change, specifically an internationally renowned Cosmetics companys global systems implementation where moving Procurement from the UK to Germany at the same time as a global ERP system was implemented almost caused them to fail. There is a dichotomy between a single global organisational culture demanded by ERP implementations and localized diversity. Diversity requires that different perspectives on culture and structure are accommodated but organisational culture often requires a single perspective on culture and structure, often at odds with local external cultures. Where this occurs, and it often does, in globalized organisational change, the difficulties are often insurmountable. In conclusion, it would appear that there is scant acceptance of the role of socialization of change in an organisation and the associated forces for both positive and negative effect. The holistic view of change can, and should include the issues around culture and organisational social structures, but it is rare that a project team truly contains sufficient professional psychological skills to deal with this.
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3. Research Questions The main question this research addressed was: Why are success rates for the IT Systems-led Organisational Change method not improving, or perceived to be improving, when considered this over time? It does not matter how large or small the project is, the forces acting on the project are the same and have remained the same over time. The nature and dynamics of change are technology independent and constant, as long as a group of people gather together to work towards a common objective. It would be reasonable to expect that feedback and review of previous projects would result in a steady improvement in successful outcomes over the long term. Since the commercial introduction of computers during the 1960s they have been seen as the primary driver of organisational change initiatives by management. IT practitioners have been perceived as the masters of the systems and information and therefore the most capable of understanding the change requirements. As the sophistication and reach of computers increased, the need to change the organisation in response has also increased; however the ability to effect these changes successfully has not improved. There are cases of spectacular failure that have received considerable publicity; for example, the London Ambulance Computer Aided Dispatch service implementation in October 1992 (Finkelstein, 1995) and the current implementation of a global Information System in the British National Health Service (BBC News, 2010). A secondary question of interest is the possible divergence between academic and commercial views. There is much written on the subject of systems-led organisational change and how it can be successfully performed, but there is a large contingent of practitioners in commerce without access to this knowledge and information that are there because they are identified within an organisation as the most qualified person on hand to head such a project (Wang et al., 2008). They are often not trained in the art and are normally the Information Officer of the organisation reporting to either the Finance Director, IT Director or equivalent. 4. Research methods The primary research tool used for this research was a web based survey with targeted e-mail invitations to respondents asking them to participate by accessing the web page. This method was chosen with the intention to give the widest access to practicing Project Managers via a hosted link on the Project Management Institute (PMI) web site. With a membership of more than 200,000 across the globe, this approach had the best chance of getting a good number of responses. The survey was rerun through direct email to encourage a greater number of responses. Data was gathered from the web site as a data stream in an e-mail. The web survey site was split into two sections. The first section of 20 questions gathered factual details about the respondent, their skills and qualifications as well as work experience. This was a straightforward quantitative component. The second section of 9 questions was an opinion-gathering component relating to the subject of success or failure of projects. In this field of research there are many views as to what constitutes success and failure in a project and any number of reasons attributed. In order to make the analysis of responses possible, and make it easier to respond, it was necessary to define criteria used in the survey as discussed in this papers introduction. The questions were limited to a dichotomous agree/disagree format in order to reduce completion time and simplify the analysis. The survey was run from the link on the PMI web site and also by targeted direct e-mail during which time there were 34 responses received from 10 countries. These constitute a convenience sample of Project Managers who decided to take the time to answer the survey. While the sample is obviously not representative of all Project Managers, the responses provided sufficient data for exploratory analysis and specific conclusions in relation to the following: The respondents: their demographics, respondents age, gender, academic and professional qualifications, and time in project management. These questions were designed to find out the mix of experience in the marketplace and to qualify the second part of the survey which was about respondents experiences of projects relevant to the research question. Reasons for success or failure: the survey explored the respondents view of why projects succeeded or failed. Respondents were asked to provide their top three reasons why projects succeed from a supplied list, their top three reasons why projects fail, and three things that could have moved failed projects into success. Project outcomes: a series of statements were made and respondents were asked if they agreed or disagreed with them. 5. Survey results 5.1 Part 1 about the respondents: Looking at the age and experience of respondents there was no particular relationship found other than a general trend that the older the manager the longer their experience. There was, however, an indication of significant populations of older and more experienced people managing projects, possibly indicating that life experience and business experience are significant. It could also infer that older people have more time to answer surveys and feel they have more to contribute. From these data it can be seen that there was an even mix of men and women respondents with a good range of experience and qualifications. Sixty seven percent of respondents were aged above, forty with thirty percent of respondents above fifty years. Twenty seven percent of the respondents had more than eleven years experience but forty percent only had up to five years experience.
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More than half of the respondents were qualified to degree level with nearly two-thirds carrying some form of professional qualification. Bearing in mind the skew in the survey group to only those sufficiently active and interested in project management to join a professional body, it would be reasonable to expect they would also be interested enough to gain professional credentials. It is likely therefore that two out of three managers being professionally qualified is higher than the average especially when taking account of other survey results such as those from Wang et al. (2008) who found only 14.4% of project managers had previous experience. Looking at the respondents work content the survey was interested in the total number of projects worked and their mix between SLC Systems Led Organisational Change and SSC Soft Systems Change as defined previously, and the quantity of projects categorized by value. Respondents were asked to list industry sectors worked and the resultant data was subsequently reclassified to Services, Manufacturing, Education, and other. There was a large skew towards Services industry with sixty three percent; manufacturing was second at eighteen percent. The numbers and mix of projects were analysed in the context of years of experience with some interesting results. Respondents with twenty years plus of experience should really be discounted as there were only three respondents, two of which provided project data. However they still provided thirty percent of the total number of projects analysed. Two thirds of the respondents accounted for up to ten years experience with half of them being less than five years but accounting for sixty five percent of the projects. From this, it can be inferred that there are a high number of relatively inexperienced project managers on employment performing the majority of projects. This contrasts slightly with the demographics from the research by Sofian (2003) which identified experience with different breakpoints but with a top end of over fifteen years being nearly twenty five percent, but was broadly in agreement with other figures. Of particular interest to this survey is the mix of SLC projects to SSC projects. It is a premise of this research that there are far fewer SSC projects undertaken than SLC projects in the context of the research question. Figure 1 shows the mix of SLC and SSC projects reported. Three respondents did not report and three did not identify the ratios but of the remaining 25, 16 reported a majority mix of SLC projects. However, it is notable that three respondents were the reverse of this trend with ninety percent or better being SSC projects, which due to the overall sample size represents 10% of the respondents and skews the analysis. Including their values there was a fairly even split of SLC versus SSC projects reported, being 57% overall SLC and 43% being SSC. Excluding these values the split becomes 75% SLC versus 25% SSC projects, more in line with expectations.
Percentage ratio of SLC to SSC Projects Managed 120 100 Percent SLC Projects 80 60 40 20 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 Respondent's Percentage SLC
Figure 1. Mix of SLC and SSC projects reported
Project mix by financial value can be used to infer complexity as there is normally a correlation between project size and value. From this, it can be seen that nearly two thirds of projects reported are greater than two hundred thousand currency units (each respondent was valuing projects in local currency) and could be considered significant, see table 1.
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Table 1. Project values comparison
Total Projects by Value Total <200K <500K <1M Totals 2313 777 534 309 %ges 100 34% 23% 13%
>1M 693 30%
5.2 Part 2 Reasons for success or failure: In this part, the survey was interested in the respondents view of why projects succeeded or failed. This might be their opinions or the result of post project evaluation. Respondents were asked to provide their top three reasons why projects succeed from a supplied list, their top three reasons why projects fail, and three things that could have moved failed projects into success. They were asked to do this for SLC projects and SSC projects. Detailed analysis can be found in Pollard (2010). However, for this discussion tables 2 and 3 show the top three reasons for each question asked by project type. Table 2. Reasons why projects succeed and fail (SLC projects)
Success responses cited for SLC 17% - High Level sponsorship 13% - Strong Management support 10% - Clear Requirements Statement Failure responses cited for SLC 16% - Poor definition of project scope/creeping scope 11% - Lack of or inadequate resources 9% - Unrealistic expectations of project sponsors
Table 3. Reasons why projects succeed and fail (SSC projects)
Success responses cited for SSC 17% - Strong management Support 11% - High Level Sponsorship Open communications 8% - Shared reality in a flexible environment Failure responses cited for SSC 12% - Lack of senior management/executive support 11% - Cultural and ethical misalignment 9% - Politics Unrealistic expectations of project sponsors
The reasons shown in tables 2 and 3 were selected from a common list provided. Table 2 suggests that SLC projects fail mainly for people control and management, which are categorised as systemic issues. On the other hand, failures regarding poor definition (table 2) and unrealistic expectations (table 3) were unexpected because SLC is a systemic approach to change and SSC is peopleoriented. The reasons for failure refer to systemic issues, the reasons; item 1-poor definition and item 3-unrealistic expectations are interesting because there is commonality across both methodologies which were unexpected. It is a fact that at project inception, a time where resources and costs are quantified and set as project measures, the least is known about the efforts required. These points reflect this state. The unrealistic expectations aspect is also reflective of people management issues within the project.
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All of the reasons reported for SSC projects are people control and management issues reflective of the nature of SSC, with politics featuring strongly. We also see cultural problems being cited. Figure 2 shows and compares reported success of projects by type as a percent of all projects managed by the respondent.
Percent Success by SLC/SSC 120 100 Projects Successful 80 60 40 20 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 Respondent Percentage Success SLC Percentage Success SSC
Figure 2. Comparison of project success (SLC vs. SSC) Looking at the cumulative success rates of each project type by comparing the sum of rates reported with the maximum possible the below shown percentages are achieved. SLC = 1725 / 2500 = 69% SSC = 1375 / 2100 = 65% (1) (2)
This demonstrates that seven out of ten projects are judged to be successful for SLC and marginally less, two out of three are for SSC. Considering the reported success rate for the whole project sample, irrespective of methodology, we get a figure of 67% fractionally better than 2 in 3. Respondents were asked for three elements that would have improved outcomes for both SLC and SSC projects. The response was provided as a free text, which has been categorised by activity type, for example: management, project definition, training, complexity, etc. Nearly two thirds considered that better management and project definition would have improved outcomes, see table 4. Table 4. Elements that may improve the outcomes of SLC and SSC projects - respondents' perspective
Suggested Improvements 40% - Management 23% - Project definition 17% - Resourcing 11% - Communications 6% - Training 3% - Complexity
5.3 Part 3 about project outcomes: A series of statements were made and respondents asked if they agreed or disagreed with them, a summary of the results is shown in table 5. Statements one, two, and nine were formulated as linked questions with questions 1 and 9 being opposing statements and explore opinions regarding the primary research question. With 68% agreement with question 1 and 80% disagreement with statement 9 it can be stated with confidence that the research question is supported by the survey results. The remaining questions seek to verbalize the major reasons for success and failure in order to gauge support for such views and with responses in the 70 to 90% range it might be indicative that the statements are confirmed. These questions were constructed to further explore issues around the research question.
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Question 6 with a 90% agreement is indicative that not enough attention is placed on the people issues and too much on systemic compliance. Unofficial systems appear when people feel their needs are not being met by the system or organisational changes in the project, which is caused by either the initial specification not meeting the needs of the organisation or the initiator of the unofficial system not understanding how to work with the new structure; in the lead authors experience this is most often caused by negative thinking and unwillingness to embrace the proposed change; psycho-social forces or cultural disconnect. Table 5. Respondents views on the main project issues Statement 1 2 3 4 5 6 The problems experienced with projects today are the same now as when I started this type of work Since starting project management, projects are becoming easier with a higher chance of successful outcomes Project Teams and change agents do not appreciate the importance of people management and thought leadership Project teams do not understand enough about the business needs and goals when the project is initiated Business people do not understand enough about the change process when a project is initiated Not enough is known about the impact of unofficial systems and processes at the planning phase and is a significant contributor to project failure If business people and users were formally trained in the process of change when change is initiated the risk of failure would be significantly reduced If Project team members were trained and briefed on the change process, rationale, and business processes the risk of failure would be significantly reduced I believe that the change process has changed and improved over time and do not experience problems with it Agree 58.8% 41.2% 79.4% 82.4% 82.4% 88.2% Disagree 41.2% 58.8% 20.6% 17.6% 17.6% 11.8%
82.4%
17.6%
85.3%
14.7%
17.6%
82.4%
A correlation analysis using the Phi coefficient (table 6) was employed as a simple measure to examine possible relationships between responses to the individual items. The Phi coefficient is generally considered the best method for examining the association between dichotomous variables, see Urdan (2005). With a significance level of 0.01, questions 7 and 8 closely correlate, which indicates poor preparation and can be interpreted as a major weakness in SLC methodologies, caused by poor management of people and psycho-social/cultural issues. This finding supports the view offered in this paper that this aspect is completely missed when building a project. Table 6 also shows a smaller and negative correlation between the responses to questions 2 with 3, 2 with 5, and 9 with 4 which all are significant at the 0.05 level. These correlations provide additional evidence to support the main argument of this paper. Looking at each of these correlations in detail, the relationship between 2 and 3 suggests the more a project team understands the importance of people management and thought leadership the more successful the project outcome. Similarly the relationship between questions 2 and 5 suggests that the more business people understand the change process at the time of initiating it the more successful the outcome. The relationship between question 4 and 9 can be interpreted as the more problems experienced in the change process the higher the lack of understanding of business people about the needs and goals of the business; the reverse of this could be expected to be also true. The small size of the sample means that caution must be exercised in accepting this finding as robust. Nevertheless, the results indicate that respondents who think that projects are becoming easier also feel that project teams and change agents appreciate the importance of people management and thought leadership. Finally, it seems that individual responses at a frequency distribution level suggest the point that there is not enough effort in setting project preparation (e.g. realistic-specific goals and participants roles). Thus, these results supports the view that spending more time preparing project participants for their specific roles increases the probability of success of the project. These findings could be explored in further research. 5.4 Interpretation of research findings: The analysis provides evidence that in most change projects the aspects of organisational culture and psychology and its ability to undermine the project outcomes is generally ignored, or seriously underestimated. The empirical evidence from the literature review and the survey for this paper produced some unexpected results, in particular the comparative success rates of SLC and SSC projects. Before the survey the expectation was that SSC projects would be more
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successful than SLC projects as they primarily focus on and address people issues over hard systems needs. However, this is not the case - the differing success rates are quite close but in favour of SLC. Looking at the graph in Figure 2, there were a number of high success rates reported individually but when analysed collectively the results are not so good with an average reported success rate of only two in every three projects at best. Table 6. Correlation analysis of respondents views Phi Coefficient Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 * Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-tailed). Given that this activity has been going on for more than thirty years and that SLC and SSC project structures are the most common forms, a two-thirds success rate is a very poor result. Had they been commercial processes they would have been replaced very quickly. This supports the research question. This is additionally strongly supported by the responses to the statements with affirmation in the seventy to ninety percent zone. Comparing the results of this survey with others published on the PMI web site, particularly Valentine (2006) and Sofian (2003), age and experience responses are largely in agreement with their research. So the mix of responses is in line with other research with larger sample sizes. 6. Conclusions From the literature review and the results of the survey four main points emerge. 6.1 Culture cannot be easily changed: Whilst this is identified in most literature as a resistor to change there is an overwhelming view that organisational culture can be changed in the same way as any other process (Senior and Fleming, 2006; Gordon, 2002). Organisational culture is a multi-faceted entity derived from external sources, environment, education and other factors. It provides a stable framework for people to make sense of their surroundings and reference points for acceptable behaviour. People fundamentally do not like change, they like challenges within a reference framework. Sport, for instance, uses teamwork within a stable framework of rules to create challenge and success. Teams explore the framework for better ways to do things; the framework of rules rarely change as it effectively resets the goals and strategies and the teams' performance suffers; take that stability away and the team capabilities collapse. Its the same in life and work. This is not trivial. 6.2 Cultural and psychological forces are responsible for a high percentage of project failures: Most of the issues identified in the survey as reasons for failure and all of the statements in table 5 allude to people issues relating to their understanding the what, where, when, and how any change is to be affected. This creates the uncertainty and potential breakdown of the framework of comfort and familiarity. People are complex, each perceiving and responding to their own environmental stimulus. People do not perceive their surroundings identically (Gordon, 2002). Furthermore, people do not naturally like change, they like stability and a framework to reference. There is a significant difference between change within the framework and change of the framework, which is often confused. It is a natural response to significant change to hold on more tightly to familiar things (e.g. people moving around the world from one culture to another to live and integrate rarely do so). They feel vulnerable, uncomfortable and seek the comfort of familiarity by living together in an area; we see this with ethnic groups settling in the same areas. The lead author has done it himself when he lived in Dubai, seeking out the English settlement. This aspect of the persons psychology can generate considerable resistance to change and is neither recognized as the force it is, nor appropriately addressed in current project structures, as the people responsible do not understand the risks. Q1 1 Q2 -0.29 1 Q3 0.17 -0.461* 1 Q4 0.240 0.074 -0.045 1 Q5 0.083 -0.397* -0.045 0.190 1 Q6 0.065 0.120 0.040 0.070 0.070 1 Q7 0.240 0.074 -0.236 -0.012 0.190 0.301 1 Q8 0.328 0.010 -0.211 -0.192 0.243 0.364* 0.897 1
**
Q9 -0.240 0.083 0.236 -0.393* 0.214 0.169 0.214 0.192 1
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6.3 Project structures lack the skills required to address points 1 and 2: All people resist significant change to the environment and culture and within the context of organisations it is just as strong and underestimated. Businessmen and project managers are not trained to deal with this aspect of organisation and do not recognize it. The recent push to globalization of large organisations has forced this issue to the fore as local culture and work ethic is by far the most significant hurdle to success. Although not previously identified, in the authors opinion it would seem appropriate, if responding to psycho-social risks that the correct response would be to include organisational psychology into the mix (this really means a psychologist advisor) as part of every major organisational change initiative. 6.4 The holistic approach to organisational change offers a philosophy capable of addressing the issues identified in this research as it encompasses a multi-discipline combination of methods appropriate to each risk in a project: No single approach (unless it is a compound of others) is capable of delivering repeatable and improving success. Prior to this research, expectations were that SSC projects would produce better outcomes than SLC projects because they principally focus on people and culture over processes. All of the academic writing on the research subject and associated subjects reviewed look at the reasons why projects fail but none of the writings quantify the degree of success versus failure. By concentrating on analysing the elements of failure the overall rates of failure are overlooked. No meaningful analysis of the performance of systems-led organisational change over time was found during the literature review which has allowed the focus to remain closely on component performance in isolation rather than observing the big picture. It is notable that the SSC project methodology fails to deliver significantly better outcomes than SLC as the two primary methodologies of change, and this suggests that neither methodology/philosophy on its own is capable of delivering acceptable success rates for the efforts employed. The holistic approach was reviewed in literature and strongly suggests that the combination of a number of approaches closely matched to the multiple risks present in all projects will improve outcomes over any single approach, however this aspect was not surveyed in this research. 7. Recommendations It is unlikely that any business would install a process that delivers success for only two-thirds of the time and would certainly be expected to rapidly drop it and replace it with an improved process with proven ability to deliver higher success rates on a consistent basis. Any business manager made aware of such performance would be obliged to act or risk disciplinary actions. It is clear from the research that psycho-social issues rank among the most significant actors in a change project and that the more diverse the organisation the greater the risk. With respect to ERP implementations in particular those spanning countries it is at its greatest. Only by examining process performance over time can true performance progress be tracked and monitored. If one only looks at component process performance in the context of delivering results, any omissions in components required will be missed. The work done here indicates that not only has the research question been supported by the analysis done, but the overall performance levels of the two change methodologies reviewed is potentially so poor that they should be replaced as method of choice or at least reconstructed. At this stage the holistic view of project structure seems the most likely to succeed as it embraces a multiplicity of methods most appropriate for the risks and specifically encourages all aspects of change to be addressed. There is a need to educate not only the practitioners but also the body of recruiters and project team builders in the importance of managing the psychology of change and the role of psychology skills in a project team and modify project structures to reflect this. A possible example of this would be a psychology consultant in an advising role to the project, identifying the impact and risks associated with change for individuals. This would align individuals opinions and roles to the objectives of the project. Obviously this paper only lifts the lid on the issue of the psychology of change, and this is a limitation in the current research. Clearly there is a need for further research into the psychology of change and methods to manage it. Some investigation into how results can be transitioned to mainstream use by the project management community is also required if the work is to generate maximum impact and move the processes forward. 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Biographical notes Martin P. J. Pollard is a Business owner/Director/IT specialist and has recently taken an MBA at Northampton University. He has been working as an IT specialist and manager since 1969 when he left school. Notably he has been a Principle Project Manager of one of the largest SAP implementations at the time in Dubai of 182 man years, has won a National award for Novelty and Innovation in technology for a customer service system written in 1991/92, has patented a document compression method in 1991 delivering sub second transmission on early PC systems. He has been involved with developing high speed document scanners in the UK and Germany. As a direct result Mr. Pollard has spoken at a number of conventions including NEC Birmingham and Earls Court. Dr. Horacio Soriano-Meier is a senior lecturer in Operations Management at the Northampton Business School of the University of Northampton. Horacio received his BSc in Civil Engineering in 1978 from the Universidad Central de Venezuela, Caracas; his MBA from Bryant College (now Bryant University), Smithfield, USA in 1985 and his PhD in Operations Management at Keele University, UK in 2001. He has held previous academic posts in the area of Operations Management in the Universities of Cardiff and Birmingham in the UK, and ULA, UCV and INTEL in Venezuela. Dr Soriano-Meier has supervised a number of successful PhD and MSc projects and, prior to his academic career, he worked as an engineer and management consultant. Dr. Paul L. Forrester is Senior Lecturer in Operations Management at Birmingham Business School, at the University of Birmingham, UK. Paul has held various research and teaching appointments including Keele University and Aston Business School. He has been Director of MBA Programmes at all three universities. His research interests lie in the strategic, design and organisational issues of managing operations and projects, the extension of operations management concepts to service organisations, and the use of virtual learning for management education. He has supervised a number of successful PhD projects and has over thirty academic journal and book chapter publications in addition to over 100 conference papers. Dr. Jose Arturo Garza-Reyes is a lecturer in Manufacturing Engineering at the School of Technology of the University of Derby, UK. Jose Arturo graduated in 1998 from the Autonoma de Nuevo Leon University (U.A.N.L.) in Mexico as Mechanical Administrator Engineer. In 2001 he graduated as Master in Sciences, with major in Production and Quality, from the same University. In 2003 he was awarded a scholarship from the Mexicos National Council of Science and Technology (CONACYT) to pursue a PhD in Manufacturing Systems and Operations Management at the University of Manchester, from where he graduated in 2008. He has recently completed an MBA at the Northampton Business School of the University of Northampton and is also a certified Six Sigma-Green Belt. Jose Arturo has six years of industrial experience working as Production Manager, Production Engineer and Operations Manager for several international and local companies in both the UK and Mexico. Dr. Luis Rocha-Lona is Lecturer in Operations Management at the Business School at National Polytechnic Institute of Mexico and at Tec de Monterrey, Campus Santa Fe. Luis Rocha Graduated in 1998 from the National Polytechnic Institute of Mexico (IPN) as Automation Control Systems Engineer. In 2000 he pursued an MSc in Control Systems with a major in information systems/manufacturing at the University of Sheffield, UK. He holds a PhD in Operations Management from The Manchester Business School. Luis Rocha-Lona has eight years of working experience in the public and private sectors. His areas of knowledge and expertise are in Business Excellence Models, Productivity-Competitiveness, Business Process Improvement and Performance Measurement Systems.
Received September 2010 Accepted October 2010 Final acceptance in revised form November 2010
MultiCraft
International Journal of Business, Management, and Social Sciences Vol. 1, No. 1, 2010, pp. 100-112
INTERNATIONAL JOURNAL OF BUSINESS, MANAGEMENT, AND SOCIAL SCIENCES www.ijbmss-ng.com 2010 MultiCraft Limited. All rights reserved
Motivation, conceptualization, and the establishment of a new scientific venture: entrepreneurship and the environmental professional
William P. Racine 1*
1*
School of Business and Leadership, Malone University, Canton, Ohio, USA e-mail: wracine@ymail,com, Tel +330-494-0905, Fax. +330-494-1650
Abstract This phenomenological research is an exploration of the new venture creation process of environmental entrepreneurs. The goal of this research was to investigate the lived experience of scientists-turned-entrepreneurs as they transitioned from scientist to businessperson and employee to entrepreneur. Twenty environmental entrepreneurs answered the research question: What is the retrospective assessment of the lived experience of environmental entrepreneurs as they enter into the new venture creation process? This study determined that the essence of conceptualizing a new venture is distinct from the essence inherent in creating a successful new venture. The act of conceptualizing the new venture is one of hopeful expectation that the beneficial outcomes of a better life will be attained. The act of engaging in the new venture creation process is characterized by a disenfranchisement with the initial hopeful expectation and the realization of under-anticipated hardships before a successful venture is attained. Keywords: Entrepreneur, entrepreneurship, phenomenology, environment. 1. Introduction Industry struggles with environmental responsibility. Scientists have documented environmental degradation caused by industry even before the turn of the twentieth century (Paddock, 2008). Today, industries must account for a myriad of adverse environmental issues including air pollution, toxic chemicals, deforestation, endangered species, and global climate change. Industrialists maintain this contradicts free market dynamics and is anathema to a competitive marketplace. Environmental scientists counter that industry has made significant advancements in addressing environmental concerns and that environmental responsibility is attainable in a competitive marketplace. A growing number of environmental scientists are striving to assist industry with incorporating environmental responsibility into competitive business practices (MISI, 2004). Some are so committed to this goal that they have decided to enter the world of business, commercialize their discoveries, market their professional knowledge, and implement environmental solutions inside the competitive economic framework. These environmental entrepreneurs choose to create new, autonomous, for-profit, business ventures often with little entrepreneurial or commercial experience. Who are these environmental professionals and what contribution do they make to business and the public good? Environmental professionals are those who are responsible for revitalizing aged industrial brownfields and reconstructing the urban landscape. They are those men and women that delineate how bad is bad when considering the levels of contamination emanating from neighboring landfills. They are health physicists that detail the levels of radioactive contamination from radon in homes. They are geologists, biologists, ecologists, and chemists that describe the impact of man on the planets delicate ecosystems. They assure the flow of commerce for property transfers and specify the standards for safety and health in modern workplaces. The success of their endeavors is vitally important given the governmental emphasis for a more entrepreneurial economy, the current prominence of environmental stewardship, and the social insistence on revitalizing aged industrial properties. The considerations that lead to starting these new scientific ventures are only vaguely understood because the current appreciation of the experience these scientific individuals endure is incomplete. What are the deliberations that trigger environmental professionals to consider starting new venture? Do these motivations coincide with the extant literature of other
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scientific and non-scientific entrepreneurs? How are these motivations realized and understood in the early years of the venture? This qualitative exploration in the phenomenological tradition discusses the lived experience of these individuals, enhances the existing body of knowledge of scientific entrepreneurship, and serves to enlighten those that dare to engage in this endeavor. 2. Background Addressing environmental issues is a concern in the worldwide domain. The United Nations (U. N.), since 1974, has implemented environmental programs to coordinate and organize environmental projects around the globe. Of concern to the U. N. is not only minimization and remediation of environmental degradation, but the dearth of environmental scientists (Hochberg & Cohen, 2006). The U. N. suggests that the number of people capable of managing such concerns is inadequate. Domestically, President Barack Obama has stated that his presidency will strengthen environmental policies, plan an explosion in green market products and services, and create millions of new jobs in the process (Schuster, 2008). The emphasis on entrepreneurship coupled with the political palatability of environmental endeavors makes for a growing demand for a limited number of environmental scientists, and even fewer environmental entrepreneurs. The impetus fostered by governmental attention is however, tempered by the statistics suggesting entrepreneurial success is not a foregone conclusion, even in the growing environmental market. Headd (2002) suggests that one-third of businesses voluntarily close their doors within the first 4 years and another third fail within this same period. This is not new news in the entrepreneurial world; high risk and elevated failure rates have been known for decades. Failure rates for scientific ventures might be even more disconcerting than the overall entrepreneurial failure rates (Ahn, 2008; Bell & McNamara, 1991; Kenney, 1986). Academia continues to research the subject of entrepreneurship, in general, and scientific entrepreneurship, specifically. A better understanding of the phenomenon that is the environmental entrepreneurs experience as they transition from a scientist to a businessperson and from employee to entrepreneur is warranted. This phenomenon necessitates further study because of its importance in the modern day and little research has been dedicated to these scientific businesspersons, their experiences, and their motivations. This research explores the existing literature relative to this phenomenon, describes the motivations of these scientists-turned-entrepreneurs, and provides a salient understanding as to the lived experience of the environmental entrepreneur as they deliberate and engage in the new venture creation process. 3. Theoretical Review The seminal literature regarding motivational theory offers insight into why entrepreneurs undertake the effort of new venture creation. An understanding of this motivation is of paramount importance to the comprehension of why individuals undertake a basic shift in perspective such as that which occurs in the case of the environmental entrepreneur. This is especially relevant in the new venture creation process because entrepreneurs must motivate themselves to leave their existing position, undertake the countless actions necessary for the business start-up, and succeed over numerous challenges in creating their new venture. 3.1 The Evolution of Early Motivational Theory Maslows (1954) early work suggested that man was cognizant of his motivations and that the substance of human nature was not as simplistic as the reactionary response provided by Pavlov (1928) or subconscious as suggested by Freud (1938). Maslow postulated that the self has needs, which the individual is motivated to satisfy through a set of hierarchical actions. Maslow suggested that there were lower order needs, which include the physiological need for food and water, safety needs such as security and shelter, and belongingness needs for love and affection. He went on to propose the higher order needs of esteem to satisfy the self, self-actualization to exhibit self-fulfillment and individualism, and finally, transcendence to explain higher levels of altruism. Later, Maslow (1954) became conscience of the danger of creating a listing of needs because of their interrelatedness by saying, We should give up the attempt once and for all to make atomistic lists of drives or needs (p. 25). His rationale was that a listing implies equality and isolation and neglected the dynamism between the various levels of needs. Likewise, Melton (1952, p. 672) suggested that individuals possess a level of aspiration and that this is influenced by conditioning based on successes and failures of importance to the individual. In this, historical experience (i.e.: conditioning) became implicit in the motivation to fulfill desires. In Meltons theory, desires might include contributions to the welfare of other individuals, broader contributions to society, or contributions to the overall body of knowledge. Meltons concept seemingly united the theories of Maslow with the various behaviorist theorists such as Skinner and Pavlov. Much of the prevailing notion that dominated the philosophy of motivational theory was predicated upon Maslow and Meltons concept that human beings had basic drives that fostered motivation. McClellands (1955) experimental work showed that needs, and hence motives, can be socially acquired or learned and that these vary from person to person. In this variance, McClelland (1955) suggested that the difference resides in their need for achievement, power, or affiliation. Herzberg (1966) considered that individuals would be motivated based on hygiene factors (i.e.: remuneration, work conditions, or supervision) or motivators (i.e.: recognition, achievement, or growth). Herzbergs Hygiene and Motivational Factors Theory was based on the assumption that the hygiene factors alone would not provide sufficient energy to motivate a person in the
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business setting. For this, motivators must be present. The assimilation of this postulate into business led to the term job enrichment to stimulate motivation based on the motivators, not merely the hygiene factors. Advancing the discussion that motives vary from person to person, McGregor (1957) posited his Theory X and Theory Y perspective. Human behavior, he suggested, vacillates between two perspectives in individuals. Individuals have an inherent dislike for work and must be coerced and controlled (Theory X) or they are self-directed and have the desire to seek higher levels of responsibility (Theory Y). McGregors work, while not widely accepted at the time, became pervasive in the decades following its proposition (Weisbord, 1987). Vroom (1964) perceived two missing elements in the heretofore-postulated theories. This included a) the value of expectancy that an action will result in an outcome and b) the condition of intensity of the perceived value of the outcome to the individual. In Vrooms Expectancy Theory, motivation is the product of the reward times the expectancy times the instrumentality as the individual strives toward a goal. Thus, Vroom (1964) suggested that motivation itself is not constant but varies along a continuum and ebbs and flows in intensity throughout the process of attainment. 3.2 Motivations for Entrepreneurship Carland, Carland, and Stewart (1996, p. 1) wrote, The process is clear: entrepreneurs initiate business ventures. What is not clear is why they do so. Caudron (1999) suggested that most theoretical motivation models in economics operate under the assumption that the individual is maximizing wage potential when deciding to become self-employed. However, outside of the domain of economics, the debate continued. Social science researchers suggested that entrepreneurial motivations are more complicated. Over the course of three years, Corman, Lussier, and Nolans (1996) longitudinal study showed that new venture creation is a result of internal motivators as well as external support factors. Their findings suggested that while the volitional theories were confirmed, other principle-centered issues such as quality of life issues and government policies and regulations were also influential (Corman, Lussier, and Nolan, 1996). Bandura (1986) posited his Self-Concept Theory to expand motivational theory beyond monetary and extrinsic considerations. The basis for this theory was that individuals would act based on personal factors, their behavior, and their interaction with obstacles in the attainment of goals. In this, the concept of self-belief became important to the discussion of motivation. SelfConcept Theory presents a philosophy of individuals as proactive and self-regulating entities striving toward higher-level goals (Bandura, 1986). Similarly, Covey (1991) suggested the basic nature of humans is to act and that the highest level of this is principle-centered action. Covey (1991) introduced the importance of principles, morals, and social responsibility into the motivational discourse. It is important to note that these higher order theorists do not disavow the motivational forces of self-interest. Rather, they suggest that there is a higher-level motivation for gaining new knowledge, contributing to the social welfare, and fulfilling the need for long-term relationships. The importance of these egocentric theories to scientific entrepreneurship is that individuals are sometimes motivated to extend themselves for the benefits of others. The higher-order theorists suggest that both the scientists internal motivations and their cognitive needs for scientific advancement are important components of the new venture creation experience. To the entrepreneur, these motivations and cognitive needs are believed to impact firm performance and success even beyond the start-up phase (Krueger & Carsrud, 1993; Elfving, Brannback, & Carsrud 2009). These cognitions lead to intentions, and later behaviors, that frame the business and directly facilitate or hinder future success (Carsrud & Brannback, 2009). This means that a holistic approach to personal motivations coupled with their influence on structuring the future actions of the new venture are salient to the discussion of the scientist and their future business endeavors. 3.3 Motivational Theory and Scientific Entrepreneurs Maslow (1954) suggested that scientists were motivated beyond the lower order needs. He stated that these include cognitive needs for sheer knowledge (curiosity) and for understanding (the philosophical, theological, and value-systembuilding) (Maslow, 1954, p. 2). He went on to suggest what he termed, impulses to beauty, symmetry, and possibly to simplicity, completion, and order (Maslow, 1954, p. 2). These fit with his proposition for self-actualization and transcendence. This understanding by Maslow seems to suggest an almost Platonic philosophy of holism or a tradition of higher understanding and humanism in scientists. In his study, using ten well established scientific corporations and 277 scientists and engineers, Lee Danielson (1960) undertook a quantitative assessment of the characteristics and traits of scientists to determine the specific differences between these and other workers. Danielson (1960, p. 30) states, Years of formal schooling promote and perpetuate certain knowledge, skills, and attitudes that act as a stabilizing and standardizing influence He also suggested the motivation for scientific work included self-esteem, self-determination, self-expression, belonging, security, and opportunity for growth (Danielson, 1960). Following on Danielsons work, Samsom (1990) and Litvak & Maule (1973) refined the characteristics and traits of scientists and scientific
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entrepreneurs but did not find consistency in the motivation of scientists to leave academia or other setting to undertake an entrepreneurial venture. Samsom (1990) suggested that more work in this area was advisable. Degeorge and Fayolles (2004) longitudinal study examined the relationship between the intent to create a venture and the behaviors that actually led to new venture creation in scientific endeavors. They concluded that motivation involves value creation where the basis for entrepreneurial action is a planned behavior designed to create a change in the given environment and that those who aimed to create new value would develop intentions based on both internal and external influences (Degeorge & Fayolle, 2004). The researchers believed this model explained motivations for the new venture creation process but acknowledged that the experience leading to their new ventures were understudied. Standish-Kuon (2007) studied intention, as a precursor to motivation, of university researchers in the commercialization of their work outside of the academic setting. She found that the intention to commercialize a discovery had a direct, positive effect on the actual behavior. Further, for scientists intending to pursue a new venture, their propensity for risk dictated whether they would remain tied to the university or exploit the opportunity elsewhere. Other aspects of importance to the academic scientist such as reputation, obligation to the current employer, and the lure of rewards, were inconsistent. This shows only one of the specific differences between the scientific entrepreneur that intends on creating an autonomous venture versus those that retain their ties to the university. Likewise, motivation, risk acceptance, and knowledge of commercialization activities are essential precursors to the new venture creation experience for autonomous scientific ventures. The basis for the motivation to initiate an autonomous new venture creation presents another important difference between scientific entrepreneurs within the university setting and those that engage in new venture creation experience outside of academia. Andersson et al. (2010) suggest that those scientific entrepreneurs that retain their linkage with the university (via partial spin-off or direct connection) have fewer problems because of persistent investment and funding, have an increased probability of survival, and have the benefit of inherited and related knowledge bases. These researchers found no corresponding associations between these scientists and those without this linkage (Andersson et al., 2010). Hence, the scientific entrepreneurs that engage in the new venture creation experience outside of academia are motivated to divorce themselves from the academic setting in the placation of other perceived motivations. The risk tolerance of the scientist is another important difference for those that desire to engage in the entrepreneurial experience outside of academia versus those that retain their ties with the university. Most university spin-offs exploit patented inventions or intellectual properties that are protected by copyrights (Shane, 2004). This protection is not afforded to the autonomous scientific entrepreneur and the competitive risks inherent in this lack of protection are obvious. Yet, the autonomous entrepreneur is not dissuaded by this exposure. Autonomous entrepreneurs are more predisposed to categorizing risk more positively, even when confronted with the perceived high risk of these ventures (Palich & Bagby, 1995). The autonomous scientific entrepreneur focuses on future possibilities. Dutton and Jackson (1987) argue that certain personal attributes cause the entrepreneur to categorize issues in different ways and deflect their attention toward some aspects and away from others. These risk considerations are not routinely present in the university setting where monetary issues are minimized, a support group is readily available, new knowledge is easily accessible, and the commercialization experience is enjoined by others. Foreknowledge of the requirements of the commercialization experience is also a differentiating factor for autonomous scientific entrepreneurs. Choi et al. (2008) argue that exploiting an entrepreneurial opportunity will be made more often and sooner by scientists working outside of academia. This is because, where knowledge management orientation is higher, such as in scientific endeavors, the entrepreneur initiates the venture because the risk is perceived to be lower. Further, because scientific opportunities are based upon developed ideas or technologies, the new venture is exploited sooner because decision-making is not hindered by other academic interests or preferences (Choi & Shepherd, 2004). The above suggests that the decision to exploit a commercial opportunity is decidedly different for autonomous scientific entrepreneurs as opposed to those operating within the academic setting. The existing data on scientific entrepreneurs, while descriptive, does not fully divulge the essence of the experience for current and nascent environmental entrepreneurs that foster their engagement in the new venture creation process. Some motivational theories suggest an expectancy for reward. Other theories suggest the desire for self-actualization and self-esteem might be primary motivators of the environmental entrepreneur. However, the well-published data on entrepreneurial risks and failure rates would seem to temper any such enthusiasm. Moreover, the suggestion that these risks are unknown to the scientist contraindicates the intelligence these individuals must surely bring to the research phase of the new venture creation process. Yet, specific research does not exist to substantiate why these individuals enter into the new venture creation process or what is their experience. 4. Research Purpose, Rationale, and Philosophy The purpose of this research is to increase the understanding of the lived experience of scientists, specifically environmental entrepreneurs, as they transition into the new venture creation process. Understanding the experience of environmental entrepreneurs in founding their new business ventures will help other scientists understand the experience and enlighten nascent scientific entrepreneurs about the transition from employee to entrepreneur and scientist to businessperson. It will also lend a better
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appreciation for the triggers and motivations leading to the new venture creation process experienced by the environmental entrepreneur with the intention of abating some of the challenges of the new venture creation process. The rationale for this research considered the nature of the case, the demographics, and the importance of the research. First, the nature of the case concerns the lack of study about the environmental entrepreneurs experience. The phenomenon has not been evaluated in peer-reviewed literature in a qualitative study. These individuals have been documented to behave differently in the new venture creation process (Danielson, 1960). Given the dismal success rates in entrepreneurial ventures, additional knowledge about this phenomenon assists with an understanding of the experience of these individuals and provides additional insight about the new venture creation experience for scientific endeavors. Second, demographically, this research includes an evaluation of environmental entrepreneurs in Ohio. Ohio is an appropriate platform for this assessment because of its industrial history, presence in one of the rust-belt states, volume of contaminated sites, and number of environmental entrepreneurs. Environmental services in the State of Ohio totaled $12.2 billion and accounted for 176,000 jobs in 2003 (MISI, 2004). This equates to 4.1% of all sales and 3.5% of employment figures for this market in the United States (Sawhney & Rupa, 2003). Most of the growth in the environmental services business is in the private sector such as professional, scientific, and technical services (MISI, 2004). There are approximately 6,500 environmental scientists, engineers, biologists, chemists, and geoscientists in Ohio (MISI, 2004). Environmental entrepreneurs are a much smaller subset of this value yet the exact number is undefined. Ohios environmental entrepreneurs serve as an adequate microcosm for other environmental entrepreneurs in the United States given the significance of its demographic. Third, given the importance placed on environmental and entrepreneurial activities in the U. S. and abroad, the lack of research is an untenable void. No peer-reviewed literature is present regarding these individuals with respect to the experience of initiating a new venture. The phenomenon whereby these individuals conceptualize and transition from scientist to businessperson and employee to entrepreneur is important because it is common to other scientific entrepreneurs, provides valuable technological advancements, imparts meaning to their experience, and contributes to the body of knowledge of entrepreneurship. The study used phenomenological inquiry as a philosophy to explore the lived experience of environmental entrepreneurs as they transition into their new ventures. The research design fits this methodological perspective. Phenomenological inquiry is an appropriate platform for exploring the understanding of various aspects of the essence of a phenomenon (Creswell, 2007). In the search for exploratory information, Husserl (1948) suggests that researchers not seek quantitative descriptions but rather return to the meaning of the experience or phenomenon to humans. This is because the human experience of the phenomenon is the true reality in the context of the human mind. Therefore, it is important to seek the essence and nature of the experience from the perspective of those successful scientific entrepreneurs that have started and sustained it. Phenomenological inquiry allows for making significant contributions to the knowledge base and practice of scientific entrepreneurship by gaining the retrospective perspective of the participants. The study used inductive reasoning so that patterns, trends, or themes, emerged during the data collection and analysis of the research (Creswell, 2002). 5. Research Question, Design, and Context The conceptual framework for this research included interviewing successful, for-profit environmental scientists that have founded their own environmental ventures to determine their retrospective assessment of the events that they deemed important in the creation and establishment of their new business ventures. A series of cooperative personal interviews followed the completion of a prequalification questionnaire designed to determine that the participant could answer the research question in a meaningful manner. The rationale for using an interview approach is because interviews capture a multitude of views about a theme in a manifold social perspective (Kvale, 1996). Moreover, direct observation of the participant during the conversation allowed for a better assessment of the essence of the lived experience, consistent with Van Manens (1990) perspective. The participants for this study were purposively selected from participants in Ohio. A sample size of 20 was deemed appropriate for this study given the potential population, its demographics, and the research methodology. The exact number is less crucial to qualitative assessments because sample size is not as ratio-dependent as in quantitative assessments (Creswell, 2007). The participants were successful environmental entrepreneurs in Ohio that are still in the same science-related business they founded, those that have operated their businesses profitably for, at least, the last ten years, and those that were unfamiliar with the researcher before the interview. All had science degrees. Table 1 presents the participant group. The firms engaged in these ventures employ between 2 to 300 employees and generate between $250,000 and $10 million in annual revenue. All of these environmental entrepreneurs have been engaged in the some form of scientific endeavor, whether academia, business, or research, prior to engaging in their new venture. The objective of interviewing these individuals was to extrapolate and present emergent themes representative of the phenomenon. Emergent themes represent a grouping of elements that are unique to the participant group and relate across the expressed dialogue of the collective. The interviews of 20 participants present themes via the analysis of over 200 pages and 3,000 lines of transcribed text. The data was coded and analyzed using NVivo software. Although many elements are expressed and are given equal weight, certain elements represent themes that emerged from the research conducted. Some of these themes represent viewpoints given by only a few of the participants while others are more pervasive across the group. Irrespective of the frequency cited, themes are presented so that a thorough and inclusionary representation of the experience can be understood.
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Table 1: The Participant Group Discipline Service Rendered Consulting Air Pollution Control (1) Contractor Asbestos Abatement (2) Consulting Compliance Professionals (2) Contractor Drilling Services (1) Contractor Emergency Response (1) Consulting Geological/Biological Services (3) Contractor Hazardous Waste Remediation (2) Consulting Property Transfer Site Assessments (2) Consulting Radioactivity/Health Physics (1) Contractor Soil/Groundwater Remediation (3) Consulting Wetlands Assessment (2)
Business Form LLC C-Corp LLC/S-Corp C-Corp C-Corp LLC/S-Corp C-Corp S-Corp S-Corp C-Corp LLC/S-Corp
Longevity 12 years 17/26 years 20-21 years 14 years 21years 16-20 years 14/15 years 12/17 years 16 years 15-19 years 18/21 years
Triangulation was used to minimize researcher bias, expose missing themes, and confirm the thematic representations. This is consistent with Miles and Hubermans (1994, p. 266) suggestion that triangulation is, used to show that independent measures agree or, at least, do not contradict each other. The themes presented in this section were checked using peer review or, according to Denzin (1978), researcher triangulation. After application of pseudonyms to assure confidentiality, a colleague, who was not a part of the data set or involved with the data acquisition, evaluated the thematic representations to consider alternative meanings or additional themes. This is consistent with Creswell and Miller (2000, p. 126) where, researchers search for convergence among multiple and different sources of information to form themes or categories in a study. This mode of triangulation assists with data validity and credible data reduction. 6. Findings: Emergent Themes in the Entrepreneurial Experience Emergent themes are extracted from the expressions in the participants statements. These emergent themes are taken from questions designed to isolate certain moments of clarity or lessons learned by the participant that best describe the essence of the experience leading to the new venture creation process. The data suggests eight predominant themes are resident in the data. These themes are consistent across the participant population and serve to provide an apt description of the triggers to initiate, motivations to embark upon, and effects resulting from their entry into the new venture creation experience. 6.1 The Significance of the Vision for a New Identity The first emergent theme is the prevalence of the scientists vision for the future. The environmental entrepreneurs stated that their existing circumstance was not consistent with the way they envisioned their lot in life. This is evidenced in statements such as I had always thought I would be the principal of a company by now, or I knew there must be more to my work life than this. The scientists went on to detail their proposed ideal job, had the progression of their career taken a different tack. Many stated their current position effected how they saw themselves in statement such as, I could not envision myself doing this for the rest of my life, or I always had the idea of owning/running my own business. Such statements served to create the impetus for a mental consideration of other alternatives designed to satisfy the perception of their ideal. At the crux of this decision was a profound determination for an altered identity. 6.2 Framing the Idea of Entrepreneurship The second emergent theme is that the participants started with a conceptual determination of the validity of their decision. Most had reservations to varying extents based on the perceived difficulties of such an ordeal. To overcome these reservations, the scientists completed either a mental or literal cost/benefit analysis that ultimately resulted in the decision to engage in the new venture creation process. The scientists used wording such as, when I considered the costs and outcomes or I figured the hardships were worth the risk... It is important to note that the decision was most often based on perceived costs and supposed benefits as opposed to thoroughly engaging in academic research. 6.3 Rationalizing the Choice The third theme in the decision to engage in the new venture creation process involved a judgment as to the potential efficacy of the decision. The entrepreneurs rationalized their decision based on intuitive judgments and observational judgments. This was presented in statements such as, If Joe could do it, so could I and I had known others who were not as smart and they were successful Others based this determination on their current abilities. This was shown in statements like, I knew the science so I
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knew I could be successful, or I had been in the business for years and knew all about the environmental field. Once the quandary was determined to be plausible and entrepreneurship appeared to be consistent with their vision for the future, the scientist was inclined to consider other triggering mechanisms that motivated them to engage in the new venture creation process. 6.4 The Opportunity to Improve as a Motivation The opportunity to improve their current professional position is the fourth emergent theme resident in the motivational discourse of these individuals. Many of these entrepreneurs stated their belief that the benefits of being in business for themselves offered a preferred alternative when considering the potential for increased monetary income, more freedom, a more empowering environment, better work flexibility, and more satisfactory working conditions. This was present in many statements including, I felt I could have a better balance between my work and family life or I had an opportunity with a new technology, client, or project Many scientists believed they had an advantage in initiating the process that would be promptly realized. These environmental entrepreneurs were looking for a way to redistribute the various aspects of time, family life, work demands, innovativeness, or expedite better earnings. 6.5 Dissatisfaction as a Motivational Theme The fifth emergent theme of the motivational assessment of these individuals involved the decision to alleviate dissatisfaction with their current situation. Several of these entrepreneurs stated their belief that their current situation was untenable such that starting a business was a preferred alternative. This was indicated in statements like, I was passed over by my boss for an assignment or My earnings were not consistent with my effort. These entrepreneurs reconciled their belief that the perceived benefit of being in business for themselves outweighed the perceived hardships of staying with their current position. This was a preferred alternative when considering the potential reduction in stress, economics of the time to wage equation, demands of overzealous superiors, realistic potential for task assignments, limitations for advancement or innovation, and managing expectations for project outcomes. These environmental entrepreneurs were searching for a way to abate or eradicate the hardships, inadequacies, and inequities of their existing professional situation. 6.6 Need as a Motive Force Need arose as an emergent theme in the motivational assessment of some of these individuals. This was present in the decision to promote a more enriching, self-fulfilling, or self-sustaining perspective of their life situation. Several of these entrepreneurs stated their need to have a more gratifying personal life, improved personal relationships with themselves and others, and a more acceptable social life. Many of these entrepreneurs acquiesced to their understanding that maintaining their current situation is not amenable to their desired direction or calling for the future. Statements such as, I needed to stay closer to my family or I needed to rededicate my life, show this attitude. The new venture creation process was a preferred alternative when taking into consideration the inability to sustain meaningful relationships, being present for important family or social events, control over their time or location, and the desire to seek a more fulfilling future. These environmental entrepreneurs were searching for a way to pursue important aspects of their life, expand into other business or personal endeavors, or control some form of personal manifest destiny. 6.7 The Act of Realizing their Vision The act of creating their new venture was not typically consistent with how they envisioned the process ensuing. The new venture creation experience ultimately resulted in a realization of difficulties and cultural adjustments in the transition from scientist to businessperson and employee to business owner. Various statements detailed the feelings of disenfranchisement including I was not accepted at first or My friends thought I was mistaken and I often felt miserable and all alone Several of these entrepreneurs stated their surprise at this aspect of the new venture creation process. Fear and trepidation was pervasive in statements such as I stared out the window and wondered what I had done or I lost a lot of sleep in those early years The environmental entrepreneur faced a reality that they were unacquainted with and was significantly different than their preconceptions. 6.8 The Realization of Hardships Disenfranchisement was imbedded in the multitude of business-related difficulties that ensued. This was evidenced in statements like, The personnel problems were frequent or Cash flow was killing us This resulted in a personal appraisal that oftentimes led to an acknowledgement of their lack of preparedness, lack of business adroitness, or the many mistakes made in the managerial aspects of starting a business. This became tangible in the consequences and penalties caused by their lack of business knowledge. Stories of uninformed accounting decisions, inadequate financial choices, mistaken human resource judgments, or unapprised
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operational dilemmas indicated this theme. This led to mental and emotional angst, monetary problems, and generated feelings of uncertainty, inadequacy, and isolation. 7. Discussion and Implications Themes present in the raw data can be synthesized to provide further clarity in a manner that facilitates enhanced epistemological meaning using the social constructivist approach. Theme synthesis is consistent with Husserls (1931) concept of phenomenological reduction. This consolidation involves an abstraction of the lived experience because this structural portrayal of the emergent themes resides outside of the individual experiences presented in the data (Patton, 2002). 7.1 Discussion of the Research Findings The central themes resident in the data given by these scientific entrepreneurs show a progression toward initiating a new business venture. A more realistic assumption was that other options were available but were not consistent with the participants pursuit of their ideal self. In the pursuit of their ideal, these entrepreneurs endured a common set of circumstances leading to the establishment of their ventures that serve to enlighten the experience. First, each scientist conceptualized their vision based on the belief that a better outcome would be achieved through engaging in the entrepreneurial process. The most expedient means was an environmental endeavor similar to their past experience. Most generally transitioned from a like scientific business into their new venture. In some cases, this proved advantageous. In a few, familiarity was inauspicious to the experience. All indicated that remaining in the same employment situation was inconsistent with their personal and/or professional vision for the future. Using their lifes work as a basis for embarking on new career directions, each environmental professional sought a diverse new identity and purpose that was designed to minimize the disparity they felt between their current self and their ideal. Second, the conceptualization of engaging in the entrepreneurial experience triggered an awareness of the shortcomings of their existing personal and/or professional circumstance. In some cases, the need to achieve personal satisfaction or better their employment status triggered the action. In others, the dissatisfaction with their existing employment station or status became apparent. In some, an opportunity proved to be a motivating factor. In all cases, the entrepreneurs framed their motivation to engage in the entrepreneurial against the inadequacies of their existing situation. Third, the aforementioned triggering mechanisms (need, opportunity, or dissatisfaction) along with their vision for the future precipitated a decision to engage in the new venture creation process. Various statements led the researcher to conclude that a superficial quantitative decision-making process, which included a mental cost/benefit calculation, preceded their decision. This fit with the scientists quantitative understandings because this is how decisions are made in their lifeworld. Most of the scientiststurned-entrepreneurs admitted that they had underestimated the cost side of the equation. Only one of the environmental entrepreneurs admitted thoroughly engaging in a literal assessment of the costs and benefits and none indicated they conducted background research beyond personal experience or opined word-of-mouth. This suggests the experience started with a consideration of life changing alternatives using their historic decision-making methods based upon input from others, irrespective of the reliability of this line of reasoning. Fourth, the decision to engage in the entrepreneurial process was, in most cases, determined by a comparison to other scientists who had engaged in the process that yielded positive results. This was based on intuitive or observational judgments of the positive outcomes of others or world-lessons and opinions given to the entrepreneur. Later, most readily agreed that this was insufficient to prepare them for the rigors of the entrepreneurial process or the business aspects of new venture creation. Hence, the decision started with a foregone conclusion of success that later resulted in ambiguity about the process because they were unsuspecting and unprepared for the true rigors of the experience. Fifth, the choice to engage in the entrepreneurial process was fortified by the entrepreneurs belief that their technical acumen was sufficient to sustain or be successful in the new venture. Most believed the technological aspects of becoming a scientific entrepreneur were more important in the new venture creation process than the business aspects of starting a successful business. This was uniformly determined to be unfounded and mistaken. Most believed that their scientific backgrounds assisted with, in some way, decision-making, systems creation and usage, or was contributory in mitigating technical problems. Many scientists later realized that while they possessed the requisite technical acumen, the business aspects of starting and sustaining a new venture were more complex than they had previously believed. Finally, the act of engaging in the new venture creation process brought about business-related problems that were significant to their perception of the experience. Because of the numerous start-up issues and the rigors of the new venture creation process, operational problems occurred in the initiation of their business entity. This brought about a profound disenfranchisement with their previous optimistic conceptions and resulted in physical and emotional angst. Thus, the experience became one of conflict, adversity, and challenge because of the inefficacy of the entrepreneur or the hardships of the new venture creation process. The dearth of business-related or entrepreneurship-related knowledge was culpable in the myriad of problems that later followed. It is perhaps less relevant the derivation of the decision to engage in and sustain the entrepreneurial process as the implications and meanings to the phenomenon. In all cases, the textural descriptions reflect an inward focusing of the entrepreneur, which led to
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a choice to change their lifeworld. This resulted in a fundamental shift in perspective from looking to others for sustaining their security, flexibility, or control. This resulted in a disenfranchisement before the business became self-sustaining. 7.2 Implications and Meanings in the Research Findings The triggers that these entrepreneurs viewed as important in conceptualizing the new venture varied in the attainment of their vision for the future. The motivations were founded upon their mental analysis, beliefs and input of others. The act of initiating their venture was wrought with hardships caused by the ordeal. These aspects are presented in Table 1.
Figure 1: The New Venture Creation Process of Environmental Entrepreneurs The entrepreneurs conceptualization was predicated upon their vision for the future in consideration of the various triggering mechanisms including need, opportunity, or dissatisfaction for engaging in the new venture creation process. Some suggested the trigger to conceptualize their new venture was brought about by their need to sate personal desires such as the need to remain in an area or market, the possibilities of innovation precluded their relocation, or the need to improve a personal circumstance. Others included statements of dissatisfaction with their existing employment. For others, the recognition of an opportunity formed their decision to engage in the new venture creation process. Most agreed that entrepreneurship satisfied their motivation in best pursuing their ideal. In all cases, entrepreneurship was determined to be the appropriate means of exploiting their vision for the future. The motivation to engage in the entrepreneurial experience was based upon a set of beliefs by the scientist. This was framed by both intuitive and observational judgments. Likewise, the belief that their technical knowledge was sufficient contributed to their motivation to engage in the process. These perceptions were based on the supposition that they were at least as capable as other entrepreneurs, the skill-set was common, and that this skill set could be readily mimicked by other individuals with similar
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technical capabilities. Hence, the motivation was based on individually held beliefs about entrepreneurship though the skill-set necessary for success was not consistent with their historical experience. The act of engaging in the process was later found to be incompatible with their previously held beliefs. This incompatibility was, in most cases, so dissimilar than their preconceptions that the hardships of the new venture creation process resulted in profound disbelief, disenfranchisement, and dejection. Most of the environmental entrepreneurs understood that the deficiency of their business or entrepreneurial experience adversely influenced their progression toward success. Only after dealing with these hardships did the environmental entrepreneur begin to sense a realization of the success of their venture. The incompatibility between the triggers that led to the conceptualization, the motivations that fostered their decision to engage in the new venture process, or the act of instigating the new venture is suggestive of the existence of two distinct phenomena. These two distinct phenomena include a) the conceptualization and motivation to engage in the process and b) the actual engagement in the process. Each phenomenon imparted a different meaning to the entrepreneurs. This is evidenced in the disparity between the many initial statements of optimistic expectations for independence, flexibility, control, or autonomy versus the later statements of adversity caused by the many hardships of the ordeal. Most suggested they were disenchanted once the act of starting their new venture ensued. In the end, this gave way to success and the possibilities became realized. 8. The Essence of the Phenomena The themes, meanings, and implications provide insight into the essence of the transition into the new venture creation experience of scientific entrepreneurs. These themes, meanings, and implications, allow for a further reduction that begets the essence of the experience. Because of the disparity between the initial conceptualization and motivation leading to the creation of the new venture and the act of establishing the new venture, an essence is inherent in each. The triggers and motivations to conceptualize a new venture hold a distinct essence for these professionals. The scientists vision for the future precipitates the conceptualization of a new future based on the perceived disparity between their self and their ideal self. The scientist considering a new venture is confronted with a set of equally reasonable yet collectively incompatible options to satisfy this ideal and their vision for the future. The process is expedited by the various triggering mechanisms (need, opportunity, or dissatisfaction) and is considered using a cursory cost/benefit analysis. The motivation is founded upon the belief that they will be successful because others have and the resulting rationalization of the same in deference to the prevailing body of knowledge about entrepreneurial endeavors. The essence inherent in the phenomenon that leads to the transition from scientist to businessperson and employee to entrepreneur is one of hopeful expectation that the beneficial outcomes of a better life will be attained. A related but distinct phenomenon is the act of engaging in the new venture. The foundation for this portion of the experience is the mental selection to embark upon this new reality based upon the perceived balance of advantages and disadvantages. The act of engaging in the new venture is first exhibited through perplexity. The process is entwined in grappling with the ensuing difficulties associated with the new venture creation process and the resultant cognitive dissonance associated with the hardships of this unfamiliar endeavor. Ultimately, the essence of this phenomenon can be characterized as a disenfranchisement with the hopeful expectation and the latent realization of under-anticipated hardships before a successful venture is attained. 9. Conclusion This research endeavored to look behind the outward appearance of the experience that is the transition of the environmental entrepreneur from scientist to businessperson and employee to entrepreneur. In so doing, this research fused the relevant statements made by the participants, uncovered themes, and explicated meaning as to the essence of the phenomena to these individuals. The extant literature on entrepreneurship and scientific entrepreneurship provided a basis for this evaluation. Much of the existing theories are readily reflected in this study, while some are less evident. This is less suggestive of an exclusivity of these individuals and more representative of the variability in lived experiences even if the essences are the same. New insight is divulged into the lived experience of these scientists-turned-entrepreneurs. Environmental entrepreneurs that decide to engage in the new venture creation process can expect a profound experience in their transition from scientist to businessperson and employee to entrepreneur. This initially includes a hopeful expectation that the beneficial outcomes of a better life will be attained. Later, this includes a disenfranchisement with the hopeful expectation and the latent realization of under-anticipated hardships before a successful venture is attained. Armed with this knowledge, nascent scientific entrepreneurs can prepare for the experience, understand the difficulties, plan accordingly, and better capitalize on the process. The experience of deciding to engage in the new venture creation process for these scientists-turned-entrepreneurs is separate and distinct from the experiences related to the actions arising from their decision. Moreover, the essence of each phenomenon, that is the decision to engage in the process and the act of engaging in the process, at times are conceptually and contextually different, bring about different issues, and elicit different experiences and perceptions for those engaged in this process. While these phenomena have been explored, additional insight can be gained from further qualitative and quantitative study and by exploring the conceptualization separate and apart from the act of engaging in the new venture creation process.
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10. Assumptions and Limitations Certain assumptions are inherent in the philosophy and methodology of this research. Qualitative methodology differs from quantitative methodology in several distinct ways. Qualitative research is found in natural settings that illustrate human behavior. Quantitative methodology requires the inclusion of hypotheses or theories while qualitative research does not (Creswell, 2002). In qualitative research, the researcher maintains a prominent role in data collection by recording descriptive words or images rather than numbers. In addition, qualitative research relies on meanings and interpretations based on human data since the researcher interprets the participants reality (Creswell, 2007). These assumptions, while implied by the philosophy and methodology implemented, are expressed here so that the reader and the author maintain transparency in the fundamental assumptions that guided this research. This study also has limitations. The study is first limited by time. The research was conducted in the calendar year 2009 and is therefore limited by the relevance of this period, chronologic setting, and conditions of this socio-economic environment. Second, the study focused solely on environmental entrepreneurs. It cannot be assumed that all entrepreneurs, or all scientific entrepreneurs, behave similarly, regardless of entrepreneurial discipline. Third, this study is limited by place. The experiences and perspectives of this population may or may not provide a significant representation of the population outside of Ohio. Fourth, the scope of this research included only the founders of environmental entrepreneurial ventures in the State of Ohio. Those who were not founders or conducted the new venture creation process while employed elsewhere were not evaluated during this study. This research was further confined to the lived experience of the participants during the new venture creation process. Phenomenological research focuses on the essence of an experience as understood by the participants and analyzed by the researcher. This paradigm presents two limitations, which are inherent in all phenomenological research studies. First, the willingness of participants to honestly and openly share experiences will affect the value of the study. Second, the researchers ability to determine themes and extract the essence of the experience could also affect the study.
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Biographical notes Dr. William Racine, Ph. D. is a primary professor at Malone University in Canton, Ohio instructing and developing both online and ground classes. His research work specializes in entrepreneurship, specifically scientific entrepreneurship. Dr. Racine also teaches in the graduate program for Business and Leadership. He received an MBA from Kent State University (OH) in 1986 and a Ph. D. from Capella University (MN) in 2009. Dr. Racine has been published in several peer-
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reviewed publications since that time. Since 1989, he started and operated five scientific entrepreneurial ventures. Dr. Racine has been an environmental consultant operating his own environmental firm since 1989.
Received September 2010 Accepted December 2010 Final acceptance in revised form December 2010
MultiCraft
The relationship between total quality management and quality performance in the service industry: a theoretical model
Faisal Talib1*, Zillur Rahman2, M.N. Qureshi3
Mechanical Engineering Section, University Polytechnic, F/O Engineering and Technology, Aligarh Muslim University, Aligarh, U.P., INDIA 2 Department of Management Studies, Indian Institute of Technology, Roorkee, U.Kh., INDIA 3 Department of Mechanical Engineering, Faculty of Technology and Engineering, M.S. University of Baroda, Vadodara, Gujarat, INDIA * Corresponding Author: e-mail: ftalib77@yahoo.co.in, Tel. +91-9412459748, Fax +91-1332-285565, +91-1332-273560,
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Abstract Total quality management (TQM) has been widely considered as the strategic, tactical and operational tool in the quality management research field. It is one of the most applied and well accepted approaches for business excellence besides Continuous Quality Improvement (CQI), Six Sigma, Just-in-Time (JIT), and Supply Chain Management (SCM) approaches. There is a great enthusiasm among manufacturing and service industries in adopting and implementing this strategy in order to maintain their sustainable competitive advantage. The aim of this study is to develop and propose the conceptual framework and research model of TQM implementation in relation to company performance particularly in context with the Indian service companies. It examines the relationships between TQM and companys performance by measuring the quality performance as performance indicator. A comprehensive review of literature on TQM and quality performance was carried out to accomplish the objectives of this study and a research model and hypotheses were generated. Two research questions and 34 hypotheses were proposed to re-validate the TQM practices. The adoption of such a theoretical model on TQM and companys quality performance would help managers, decision makers, and practitioners of TQM in better understanding of the TQM practices and to focus on the identified practices while implementing TQM in their companies. Further, the scope for future study is to test and validate the theoretical model by collecting the primary data from the Indian service companies and using Structural Equation Modeling (SEM) approach for hypotheses testing. Keywords: total quality management (TQM); quality performance; service industry; company performance; performance indicator. 1. Introduction
Over the past two decades, total quality management (TQM) has become most widely used management acronym and is considered as the buzz word in the management practices. It has been well accepted by managers and quality practitioners as a change management quality approach (Arumugam et al., 2009). It plays a vital role in the development of management practices (Prajogo and Sohal, 2003; Hoang et al., 2006). Many researchers asserted TQM as an approach to improve effectiveness, flexibility, and competitiveness of a business to meet customers requirements (Oakland, 1993), as the source of sustainable competitive advantage for business organizations (Terziovski, 2006), as a source of attaining excellence, creating a right first-time attitude, acquiring efficient business solutions, delighting customers and suppliers etc. (Mohanty and Behera, 1996) and above all as a source of enhancing organizational performance through continuous improvement in organizations activities (Claver-Cortes et al., 2008; Teh et al., 2009). In recent decades, the level of awareness towards TQM has increased drastically and has gone to its peak to become a well-established field of research (Arumugam et al., 2008; Yusof and Aspinwall, 1999) due to intense global competition, increasing consumer consciousness of quality, rapid technology transfer, and towards achieving world-class status. In response to these challenges and to facilitate the organizations in achieving higher quality levels, many companies are implementing TQM approach and quality initiatives for achieving sustainable competitive advantage and enhanced company performance. Past studies on the relationships between TQM practices and quality performance have showed significant and positive results (Arumugam et al., 2008; Prajogo and Sohal, 2003; 2004; Terziovski and Samson, 1999; Ahire et al., 1996; Flynn
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et al., 1994; 1995). Though there is considerable literature available that have evolved to examine the link between TQM and quality performance across the globe, but still little is known about the effect of TQM practices on companys quality performance from India, particularly within the context of Indian service industry. The Indian service industry represents about 57.3 percent of Indias Gross Domestic Product (GDP) and therefore, considered to be one of the vital components of its economy (i3, CMIE, 2010). Thus, studying the relationships between TQM and quality performance is necessary as it provides a theoretical as well as a practical platform to the service industries in the efforts to gain sustainable competitive advantage. In order to bridge the gap and provide service industries with practical assistance in correctly managing and implementing the TQM practices to achieve quality performance, this study proposes a conceptual model of TQM implementation in relation to company performance (quality performance) particularly for Indian service sector to examine whether the implementation of TQM practices result in an improvement of companys quality performance. Thus, the scope of this study is in finding out the association between the TQM practices and quality performance in the service industry and more precisely, the Indian service industry. Given the above reasons, the objectives of this study are two fold: To explore the relationships between TQM and quality performance; and To develop a conceptual framework and research model of TQM implementation in relation to company performance. The remaining of this study is structured as follows. In the second section, the theories laid down in the literatures of key TQM practices, performance measures indicators, and relationships between TQM and quality performance are reviewed. In the next section, development of conceptual framework and research model is presented followed by formulation of proposed research questions and hypotheses. Finally, conclusions of this study are discussed, which is followed by managerial implications and recommendation for future research. 2. 2.1 Literature review
Key practices of TQM An extensive literature review of the previous studies on TQM have examined what constitutes TQM and what are the key practices for the success of TQM (Sila and Ebrahimpour, 2002; Saraph et al., 1989; Antony et al., 2002; Sureshchandar et al., 2002; Al-Marri et al., 2007; Zhang et al., 2000). These studies have provided different sets of practices considered essential to the success of TQM implementation. This leads to inconsistencies in previous research which made it difficult to reach a conclusion on the practices of TQM (Ooi et al., 2008; Hoang et al., 2006). As such no study has identified a common set of practices for successful implementation of TQM. Though there are some Quality Award models such as Malcolm Baldrige National Quality Award (MBNQA, 2005); European Quality Award (EQA, 1994); The Deming Prize (1996); Kanji Business Excellence Model, which provide a useful benchmark framework for industries and help in implementing TQM as well as evaluating their business performance results. According to Bayraktar et al. (2008) study, the following critical success factors (CSFs) of TQM were identified: leadership, vision, measurement and evaluation, process control and improvement, program design, quality system improvement, employee involvement, recognition and award, education and training, student focus, and other stake holders focus. Kanji and Wallace (2000) go on to identify ten TQM practices: top-management commitment, customer focus and satisfaction, quality information and performance measurement, human resource management, employee involvement, teamwork, process management, quality assurance, zero defects, and communication. In Brahs et al. (2000) study, the following 11 constructs of TQM were identified: top management support, customer focus, employee involvement, employee training, employee empowerment, supplier quality management, process improvement, service design, quality improvement rewards, benchmarking, and cleanliness and organization. Through the comprehensive review of the TQM literature, the present study identified a set of 17 TQM practices. They are: topmanagement commitment (TMC), customer focus (CF), training and education (TE), continuous improvement and innovation (CII), supplier management (SM), employee involvement (EI), information and analysis (IA), process management (PM), quality systems (QS), benchmarking (BM), quality culture (QC), human resource management (HRM), strategic planning (SP), employee encouragement (EE), teamwork (TW), communication (COM), and product and service design (PSD). The reasons for selecting these practices are: Have been used frequently (highest frequency of occurrences) by different researchers in the service industries. Have been identified as the key practices in TQM implementation in both manufacturing and service industries (example Saraph et al., 1989; Antony et al., 2002; Zhang et al., 2000; Khamalah and Lingaraj, 2007). Constitute practices that represent the hard and soft components of TQM. Significantly associated in services and in the promotion of service quality (Ueno, 2008; Lakhal et al., 2006; Wali et al., 2003; Behara and Gundersen, 2001). Hence, it is believed that these practices are suitable to be used in the Indian service sector context. 2.2 Performance measures indicators: Numerous studies have examined the positive and negative (or non-significant) relationships or correlations between TQM practices and various performance measures. This section presents an overview of different performance measures indicators. An extent review of previous TQM studies on organizational performance suggests that
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there are various performance measures indicators (Sadikoglu and Zehir, 2010; Monge et al., 2006; Zakuan et al., 2010). Different indicators used for measuring organizational performance have been identified from the literature and summarized in Table 1. Arumugam et al. (2008) measured organizational performance from quality performance (example quality of product and service, customer relations, customer satisfaction with products quality, and level of quality performance relative to industry norms). Zakuan et al. (2010) in their study measured organizational performance through two categories which are satisfaction level (example employee satisfaction and customer satisfaction) and business results (example productivity, number of successful new products, cost performance, and profitability). In this study, company performance will be measured through quality performance (example reliability, performance, durability, and conformance to specification). The reasons for choosing quality performance as an indicator for measuring companys performance are: It can be measured and reflected into number of ways as articulated in past empirical studies on TQM (Ahire et al., 1996; Flynn et al., 1994; Su et al., 2001; Yang, 2006; Arumugam et al., 2008; Prajogo and Sohal, 2003; 2004). It has been used by Malcolm Baldrige National Quality Award (MBNQA) model under the quality results, the only criterion used for organizational performance measurement. MBNQA model that represent TQM practices is accepted by several researchers across the world (Ahire et al., 1995; Dean and Bowen, 1994; Juran, 1995; Prajogo and Sohal, 2003; 2004). Several past research studies on TQM and organizational performance have taken quality performance as indicator for measuring the performance (Ahire et al., 1996; Zhang et al., 2000; Arumugam et al., 2008; Dow et al., 1999; Flynn et al., 1994; Saravanan and Rao, 2007; Cua et al., 2001; Prajogo and Brown, 2004) and the results were obtained. These studies investigated the relationships between TQM practices and quality performance in different sectors and countries. Table 1: Performance measures proposed by different authors Author(s) Measure Indicators Prajogo and Sohal (2004) Organization performance Quality performance Innovation performance Lin et al. (2005) Organization performance Satisfaction level Business results Fuentes et al. (2006) Organization performance Operational performance Market and financial performance Employee performance Sit et al.(2009) Organization performance Customer satisfaction Shieh and Wu (2002) Organization performance Project performance Feng et al. (2006) Organization performance Quality performance Innovation performance Ooi et al. (2008) Organization performance Job satisfaction Zakuan et al. (2010) Organization performance Employee satisfaction Customer satisfaction Business results 2.3 Relationship between TQM practices and quality performance: A considerable body of empirical evidence suggests that TQM implementation improves quality performance of the company. It has been measured in various ways and found that the quality management model and specific practices, which best predict performance varies across the world (Adam et al., 1997; Prajogo and Sohal, 2004; Arumugam et al., 2008). The research framework for quality management proposed by Flynn et al. (1994) suggested that the inputs of this framework are the quality management (QM) practices while quality performance represents outcomes. Further, product design process, process flow management, and top-management support have significant correlation with quality performance (Flynn et al., 1995). Parzinger and Nath (2000) examined the link between TQM and software quality and found that TQM implementation improves the software quality and performance, and thus, increases customer satisfaction. Hasan and Kerr (2003) studied the relationship between TQM practices and organization performance in service organizations and discovered that TQM practices like top-management commitment; employee involvement; training; supplier quality; quality costs; service design; quality techniques, benchmarking; and customer satisfaction leads to higher productivity and quality performance. Prajogo and Brown (2004) conducted an empirical study within Australian organizations to investigate the relationship between TQM practices and quality performance, and the results indicated a strong and positive linkage. A study on ISO9000 certified organizations of Taiwan performed by Jeng (1998) examined linkage between six QM practices and quality performance.
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He found customer focus as the most powerful discriminated practice of quality performance while remaining five practices showed low discriminating powers. Brah and Tee (2002) examined the relationship between TQM constructs and organization performance by measuring quality performance of Singapore companies. They found that implementation of TQM leads to quality performance and have positive correlation. Another study based on the comparative analysis of TQM practices and quality performance between Australian manufacturing and service firms, Prajogo (2005) reported that there exist no significant differences in the level of most of the TQM practices and quality performance between two sectors. A study utilizing structural equation modeling (SEM) approach by Sanchez-Rodriguez et al., (2006) provided the insights into the current information technology (IT) and TQM theory and practice on operational and quality performance. They found TQM initiatives generate significant positive gains in operational and quality performance. In line to this, Prajogo and Sohal (2004) also employed SEM approach to examine the multidimensionality of TQM in association with organization performance. Using empirical data collected form 194 Australian firms the finding support the proposition in pairing the mechanistic elements of TQM with quality performance and the organic elements with innovation performance. A recent empirical study conducted by Arumugam et al. (2008) explored the relationship between TQM practices and quality performance on ISO9001:2000 certified manufacturing organizations in Malaysia. Analyzing empirical data drawn from 122 Malaysian organizations through correlation and multiple regression analyses, the finding revealed that TQM practices were found to be partially correlated with quality performance. They further found that customer focus and continuous improvement were perceived as dominant TQM practices in quality performance. Summary of different studies using quality performance as a measure for evaluating company performance is presented in Table 2. Table 2: Quality performance measure proposed by different authors Author(s) Zhang (2000) Ahire et al. (1996) Lakhal et al. (2006) Measure Organization performance Organization performance Organization performance Performance indicator(s) Quality performance Quality performance Financial performance Operational performance Product quality performance Product quality performance Reduction in costs Shorter R & D time Quality performance Operational performance Business performance Quality performance Quality performance Innovation performance Quality performance Quality performance Employee satisfaction Employee quality awareness Customer satisfaction Companys image Defect rate Rework rate Delay rate of delivery Quality performance Quality performance Innovation performance Quality performance Operational performance Employee satisfaction Innovation performance Operating performance Quality performance
Hermann et al. (2006)
Company performance
Samson and Terziovski (1999)
Organization performance
Dow et al. (1999) Prajogo and Sohal (2003) Flynn et al. (1994) Arumugam et al. (2008) Yang (2006)
Company performance Organization performance Organization performance Company performance Quality performance
Su et al. (2001)
Quality performance
Prajogo and Sohal (2006) Cua et al. (2001) Sadikoglu (2008)
Organization performance Organization performance Organization performance
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Saravanan and Rao (2007) Prajogo and Hong (2008)
Organization performance R and D performance
Customer satisfaction Financial performance Quality performance Operational performance Product quality performance Product innovation performance
3.
Proposed research model and questions Based on the above literature review, a conceptual framework is developed and a research model has been proposed to examine the extent to which the 17 TQM practices are practiced and implemented in the Indian service companies and to explore the relationships between identified TQM practices and companys performance by measuring the Quality Performance as a performance indicator. The proposed TQM research framework is depicted in Figure 1 as above. This research model suggests that the greater the extent to which these TQM practices are present, the quality performance of Indian service companies will be higher. In this theoretical research framework, the independent variables are TQM practices and a dependent variable is quality performance respectively. The main objective of the study is to establish the TQM implementation and evaluation model for Indian service companies. The two research question of this study can be articulated as follows: RQ1: To what extent the identified TQM practices are practiced or implemented in the Indian service companies? RQ2: Do the identified TQM practices have relationship with companys performance? Thus, a comprehensive review of literature suggests the extent of implementation of 17 TQM practices in the service industries. Though, there exist a number of TQM practices but the identified 17 practices are frequently used and implemented in service industries for better quality oriented results. This leads to the following hypotheses: H1: There should not be any significant difference in the 17 TQM practices as practiced or implemented by Indian service companies. More specifically: H11: Top-management commitment in Indian service companies is significantly practiced or implemented. H12: Customer focus in Indian service companies is significantly practiced or implemented. H13: Training and education in Indian service companies is significantly practiced or implemented. H14: Continuous improvement and innovation in Indian service companies is significantly practiced or implemented. H15: Supplier management in Indian service companies is significantly practiced or implemented. H16: Employee involvement in Indian service companies is significantly practiced or implemented. H17: Information and analysis in Indian service companies is significantly practiced or implemented. H18: Process management in Indian service companies is significantly practiced or implemented. H19: Quality systems in Indian service companies is significantly practiced or implemented. H110: Benchmarking in Indian service companies is significantly practiced or implemented. H111: Quality culture in Indian service companies is significantly practiced or implemented. H112: Human resource management in Indian service companies is significantly practiced or implemented. H113: Strategic planning in Indian service companies is significantly practiced or implemented. H114: Employee encouragement in Indian service companies is significantly practiced or implemented. H115: Teamwork in Indian service companies is significantly practiced or implemented. H116: Communication in Indian service companies is significantly practiced or implemented. H117: Product and service design in Indian service companies is significantly practiced or implemented The framework for above hypotheses is presented in Figure 2.
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Talib et al. / International Journal of Business, Management and Social Sciences, Vol. 1, No. 1, 2010, pp. 113-128 TQM Evaluation Model TQM Implementation Model TQM Practices
H11 H12
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Figure 1: A Proposed TQM Research Framework for the Service Industries
COM
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Top-management commitment (TMC), customer focus (CF), training and education (TE), continuous improvement and innovation (CII), supplier management (SM), employee involvement (EI), information and analysis (IA), process management (PM), quality systems (QS), benchmarking (BM), quality culture (QC), human resource management (HRM), strategic planning (SP), employee encouragement (EE), teamwork (TW), communication (COM), and product and service design (PSD)
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Similarly, based on the extensive review of literature presented in previous section on the relationships between TQM practices and quality performance, the research framework is developed as shown in Figure 3. The literature review indicates a significant positive relationship between TQM practices and quality performance. This leads to the following hypothesis: H2: There is a significant positive relationship between identified TQM practices an quality performance of Indian service companies. To understand the relationship of each TQM practice on quality performance in Indian service companies, the following hypotheses will be used and tested. Top-management commitment Previous research in TQM practices emphasizes the critical role of top-management commitment in driving overall TQM implementation in the organizations (Zakuan et al., 2010; Flynn et al., 1994; Teh et al., 2008; de Jong and den Hartog, 2007). Teh et al. (2008) noted that senior leaders and management guide the organization and assess the organizational performance. Kanji (2001) asserted that top-management commitment is the fundamental driver of business excellence. Further, studies showed that top-management commitment significantly affects the quality performance (Arumugam et al., 2008; Prajogo and Brown, 2004). Accordingly, it is proposed that: H21: Top-management commitment for TQM practices is positively correlated with quality performance. Customer focus Organizations must be knowledgeable in customer requirements and responsive to customer demands, and measure customer satisfaction through TQM implementation (Zakuan et al., 2010; Raghunathan et al., 1997; Zhang, 2000). According to the review results from Hackman and Wageman (1995), obtaining information about customer is one of the most widely used TQM implementation practices to improve quality performance of the organization. Therefore, the next hypothesis relate to customer focus and quality performance. H22: Customer focus for TQM practices is positively correlated with quality performance. Training and education Training and education spread the knowledge of continuous improvement and innovation in service process to attain full benefits and business excellence. Talib and Rahman (2010) reported the critical role of training and education in maintaining high quality level within the service industry. Further, the research on TQM also found a positive correlation between training and education, and organization performance (Reed et al., 2000; Vermeulen and Crous, 2000). Therefore, the next hypothesis attempts to find a relationship between training and education and quality performance. H23: Training and education for TQM practices is positively correlated with quality performance. Continuous improvement and innovation Continuous improvement and innovation, which is the most important part of services, means searching for never-ending improvements and developing processes to find new or improved methods in the process of converting inputs into useful outputs (Sadikoglu and Zehir, 2010). It helps in reducing the process variability thereby continuously improving the output performance (Hyland et al., 2000; Sadikoglu and Zehir, 2010). Corbett and Rastrick (2000) asserted that in TQM, the best way to improve organizational performance is to continuously improve the performance activities. Thus, the following hypothesis is proposed: H24: Continuous improvement and innovation for TQM practices is positively correlated with quality performance. Supplier management According to Zakuan et al. (2010), effective supplier quality management can be achieved by cooperation and long term relationship with the suppliers. This argument is also supported by Zineldin and Fonsson (2000), who found that developing supplier partnership and long-term relationships can increase the organization competitiveness and thus, improve performance. Therefore, a hypothesis to test this relationship is as follows: H25: Supplier management for TQM practices is positively correlated with quality performance. Employee involvement Deming claimed that involvement and participation of employees at all level is must to improve the quality of the current and future product or service. Even non-managerial employees can make significant contributions when they are involved in quality improvement processes, decision making processes, and policy making issues (Sadikoglu and Zehir, 2010; Ooi et al., 2007a). Organizations should utilize all employees skill and abilities to gain business performance. Accordingly, the hypothesis is as follows: H26: Employee involvement for TQM practices is positively correlated with quality performance.
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TQM Practices TMC CF H11 TE

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Top-management commitment (TMC), customer focus (CF), training and education (TE), continuous improvement and innovation (CII), supplier management (SM), employee involvement (EI), information and analysis (IA), process management (PM), quality systems (QS), benchmarking (BM), quality culture (QC), human resource management (HRM), strategic planning (SP), employee encouragement (EE), teamwork (TW), communication (COM), and product and service design (PSD)
Figure 2: A research model of the successful TQM implementation in service companies
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TQM Practices TMC CF TE

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SP
EE TW
H215 H216
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Figure 3: A research model of the relationship between TQM practices and quality performance
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Information and analysis Fulfilling customer needs and expectations are considered to be baseline of any kind of businesses. When customers needs and expectations are achieved, quality performance is improved and thus, satisfaction is established. Prajogo (2005) revealed the importance of information and analysis TQM practice on quality performance. Similarly Sit et al. (2009) also indicated that information and analysis have a significant effect on customer satisfaction. Information and analysis also helps an organization to ensure the availability of high quality, timely data and information for all users like employees, suppliers, and customers (Teh et al., 2009; Lee et al., 2003). Therefore, the following hypothesis is put forward: H27: Information and analysis for TQM practices is positively correlated with quality performance. Process management Process management is a systematic approach in which all the resources of an organization are used in most efficient and effective manner to achieve desired performance (Sit et al., 2009; Zairi, 1997). The relatively new areas of such improvements are knowledge management behaviors (Ooi, 2009), business process management (Elzinga et al., 1995), employee and innovation performance (Sadikoglu and Zehir, 2010). Motwani (2001) commented that process management stresses the value adding to a process, increasing the productivity of every employee and improving the quality of the organization. In many empirical studies, Prajogo and Sohal (2004); Flynn et al. (1995); Cua et al. (2001); Feng et al. (2006) systematically investigated the relationships between process management and quality performance. The results of these studies showed positive correlation between them. Hence, the following hypothesis is proposed: H28: Process management for TQM practices is positively correlated with quality performance. Quality systems Quality systems such as ISO9000 standards, SPC and other supportive qualitative tools and techniques create an environment for quality improvement and implementing TQM in an organization (Curry and Kadash, 2002; Sila and Ebrahimpour, 2003). Lakhal et al. (2006) claimed that there is a significant relationship between use of statistical quality techniques and organizational performance. This argument was also supported by Schevermann et al. (1997). Therefore, the next hypothesis attempts to find a relationship between quality systems and quality performance. H29: Quality system for TQM practices is positively correlated with quality performance. Benchmarking Benchmarking is the process of comparing performance information, within the organization as well as outside the organization. It also aims to measure organizations operations or processes against the best-in-class performers from inside or outside its industry (Sit et al., 2009). The study by Yusuf et al. (2007) highlighted the usefulness of dynamic benchmarking for improving the performance of the organization and to achieve competitive advantage. Similarly, the study by Min et al. (2002) reported that benchmarking help in continuous service improvements and establishment of customer satisfaction. Accordingly, the next hypothesis relates to benchmarking and quality performance. H210: Benchmarking for TQM practices is positively correlated with quality performance. Quality culture Gore Jr. (1999) emphasized that the quality culture of an organization is the strong basis for enhancing organizations success. Generally, the culture of an organization could impact individual behavior (Bose, 2004), knowledge sharing (Ooi et al., 2010), job satisfaction (Ooi et al., 2007b). Beside this, quality culture significantly contributes in improving the performance of the organization as well as influencing the thought, feeling and interaction among members of the organization (Yusof and Ali, 2000). Thus, quality culture is linked to the quality performance and a hypothesis is formed. H211: Quality culture for TQM practices is positively correlated with quality performance. Human resource management Deros et al. (2006) reported that human resource management is one of the critical practices for improving business and management processes. Another study by Sanchez-Rodriguez et al. (2006) noted that management of people was positively associated with purchasing operational performance. Yang (2006) further concluded that human resource management as TQM practice significantly correlated with customer satisfaction which is also supported by Sit et al. (2009). Teh et al. (2009) focused on employee empowerment for successful TQM oriented human resource management. Further, Teh et al. (2008) found a positive relationship between empowerment and role conflict. Based on the above comprehensive review of the association between human resource management and different performance measurement indicators, the following hypothesis is proposed. H212: Human resource management for TQM practices is positively correlated with quality performance.
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Strategic planning Strategic planning incorporates the development and deployment of plans (Lee et al., 2003), improve relationships with customers, suppliers, and business partners (Prybutok et al., 2008) and helps in achieving long and short term goals through participative planning (Teh et al., 2009). Particularly, there is lack of empirical studies that examines the effects of strategic planning on quality performance or any other performance measure. Indeed, a significant link is found between strategic planning and quality performance (Prajogo and Brown, 2004), knowledge management behavior (Ooi et al., 2009), role conflict (Teh et al., 2009), and customer satisfaction (Sit et al., 2009). Also, Feng et al. (2006) in there comparative study revealed that strategic planning in TQM practice is strongly associated with organization performance. Therefore, the next hypothesis attempts to find a relationship between strategic planning and quality performance. H213: Strategic planning for TQM practices is positively correlated with quality performance. Employee encouragement Employee encouragement such as rewards and recognition motivates employees to perform which in turn influence customer satisfaction (Das et al., 2006; Zhang et al., 2000; Tari, 2005). In line with this, the findings of Yusuf et al. (2007) reported that employee encouragement is positively related with organization performance and employee satisfaction. It has also been found that employee encouragement gives the right direction to work force and is an essential practice in customer/public dealing industries (Schneider and Bowen, 1995). Thus, the following hypothesis is proposed: H214: Employee encouragement for TQM practices is positively correlated with quality performance. Teamwork Teamwork refers to an increase in employees control over their work and allows them to work as a group (Ooi et al., 2007b). This practice provides an atmosphere of mutual relationship, involvement, and participation through out the organization. According to Ooi et al. (2007b), teamwork as a TQM practice is positively associated with employees job satisfaction. They further found that, where teamwork was perceived as a dominant TQM practice, improvements in job satisfaction levels were significant. Yang (2006) commented that entire organization should work for improving quality and support for quality improvement activities by implementing teamwork practice. Formation of teams within an organization is critical to an organizations TQM success. Further, Silos (1999) suggested that teamwork will result in more committed and involved employees with the organization. Thus, the following hypothesis is suggested: H215: Teamwork for TQM practices is positively correlated with quality performance. Communication Communication refers to information sharing process between individual/employees of the organization (Ooi et al., 2007a). It is critical within organizations for connecting employees and permits organizations to function as well as an essential element to the implementation of TQM (Ooi et al., 2007a; Gray and Laidlaw, 2002). Managers and practitioners use effective communication to enlist the support of other employees towards achieving organizations objectives. Several studies noted that effective communication influence the organization to move systematically towards employees involvement and customer satisfaction and improves organization performance (Ooi et al., 2007a; Yusuf et al., 2007; Goris et al., 2000). Based on the above literature review, the following hypothesis was proposed: H216: Communication for TQM practices is positively correlated with quality performance. Product and service design Product and service design examines an organizations quality and service delivery performance in terms of timeliness, errors, costs of quality, responsiveness, and customer satisfaction (Brah et al., 2000). These indicators are used for measuring the product and service design quality. Bhatt and Emdad (2010) empirically investigated the relationships between information technology (IT) infrastructure, product and service innovation, and business advantages and found that product and service innovation is positively related with business advantages beside the two factors like IT infrastructure and customer responsiveness. Therefore, the next hypothesis attempts to find a relationship between product and service design and quality performance. H217: Product and service design for TQM practices is positively correlated with quality performance. All the above hypotheses to be tested are summarized in Figure 1. 4. Conclusions
The primary objective of this study is to develop a TQM implementation and evaluation research framework that can be used as a guide in the formulation of an effective TQM implementation approach to Indian service sector. Although, past studies on TQM have undertaken the identification and implementation of TQM practices successfully but still the literature on the investigation of linkage between TQM practices and organizational performance in context with the Indian service sector is in
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nascent stage. In line to this, the present study attempts to bridge this gap and contribute to the development of conceptual framework and research model particularly for Indian service companies. To carry out this study, the key TQM practices, organization performance measures indicators, and quality performance have been extensively investigated as presented earlier. Based on this review, a research model of TQM implementation in relation to company performance by measuring quality performance has been proposed. Two research questions and 34 hypotheses were formulated from this model (17 hypotheses for assessing the extent of implementation of TQM practices and another 17 hypotheses for evaluating the perceived quality performance of the service companies). Moreover, in developing such a framework on TQM, the present study can help in: Understanding the awareness of TQM or any other quality program in Indian service sector. Investigating the TQM implementation experiences in Indian service sector. Identification of the key TQM practices for effective TQM implementation in Indian service sector. Assessing the companys performance with the adoption of TQM program. Some of the managerial implications of this study are: This research will provide valuable knowledge in TQM regarding the implementing practices and relationships between TQM practices and quality performance. Management must focus on the identified TQM practices to achieve higher levels of satisfaction in the industry which can provide an advantage over other industries in retaining the competitive environment. The results will determine the significant TQM practices and their impact on organizational performance in the Indian service companies. The proposed research model will allow practitioners and managers to assess the level of companys quality management against other models proposed by quality gurus. The model can also provide a baseline measure for the extent of TQM practices that is in place at a company. Thus, knowledge of this baseline can help in gaining continuous improvement in the company performance. Managers can further enhance their knowledge in driving the identified key TQM practices from the study and maximize the potential of the formal quality system. Finally, the study will provide a significant contribution in developing a better understanding of the TQM practices and quality performance in service industries. Future research involves data collection and empirical analysis where the hypotheses about the extent of implementation and relationships will be tested in the Indian service companies. The results will hopefully prove that the greater the extent to which these TQM practices are present, the quality performance of the organizations will be higher. At the end, it would be interesting to test and validate the proposed theoretical model using different approaches, one of them is the Structural Equation Modeling (SEM) approach which has the capability of testing and validating such a theoretical model. Statistical software like Amos 16.0, LISREL 8.8 etc can be used in future to build correlation matrix, confirmatory factor analysis (CFA), and diagramming to validate the relationships. Further, this study is limited to the Indian service sector but in future it can be extended to other south Asian countries as well as an exhaustive research in various aspects of TQM such as sustainability, knowledge management, organization strategy, TQM role stressors, and many more can be undertaken to incorporate the flexibility in TQM. Acknowledgement The authors would like to thanks the anonymous referees for their helpful and invaluable comments which helped to improve the presentation of the paper considerably.
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Biographical notes
Faisal Talib is an Assistant Professor at Mechanical Engineering Section, University Polytechnic, Aligarh Muslim University, Aligarh, (U.P.), India. He holds Masters in Industrial and Production Engineering and currently pursuing Ph.D. in Total Quality Management in Service Sector from Indian Institute of Technology Roorkee, (U.Kh.), India. He has more than 12 years of teaching experience and has more than 30 publications to his credit in national/international journals and conferences. His special interest includes Quality Engineering, TQM, Service Quality, Quality Concepts Taguchi Methods, and Quality Management in Service Industries. Dr. Zillur Rahman is an Associate Professor at Department of Management Studies, IIT Roorkee. He is a recipient of the Emerald Literati Club Highly Commended Award and one of his papers was The Science Direct Top 25 Hottest Article. His work has been published and cited in various journals including Management Decision, Managing Service Quality, International Journal of Information Management, Industrial Management and Data Systems, The TQM Magazine, Business Process Management Journal, International Journal of Service Industry Management, Information Systems Journal, Decision Support Systems, Journal of Business and Industrial Marketing, and International Journal of Computer Integrated Manufacturing, to name a few. Dr. M. N Qureshi is an Associate Professor at Mechanical Engineering Department, Faculty of Tech. & Engg., The M S University of Baroda, Gujarat, India. He obtained his bachelors degree (Hons) in Mechanical Engineering with Specialization in Production Management from M.S. University of Baroda, India in year 1986. Subsequently, he obtained his Masters in Production Management from the same university. He received PhD degree in Mechanical Engineering from Indian Institute of Technology Roorkee, Roorkee, India. He has published more than 70 papers in International and National Journals and conference proceedings. His areas of interest are Supply Chain Management & Logistics, Production Management, Quality management, Marketing Management etc.
Received November 2010 Accepted December 2010 Final acceptance in revised form December 2010

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MultiCraft

21-40 41-54 55-58 59-64 65-78 79-87 88-99 100-112

Association Rule Mining

Sequential pattern mining

key phrase collecting m odel

question sorting m odel

key phrase database

Custom er specialist m atching m odel

specialist resources database

know ledge broker

accuracy adjustm ent m odel

Figure 1. System structure diagram

Risk - Taking Online Buying Intention Online Buying

Excitement and Pleasure Seeking

Standardized Coefficients (Beta) .316 .323 .282 .308 .304

Standardized Coefficients (Beta) .313 .401

Sig. .000 Sig. 1.000 .000 .000 .000 .000

Standardized Coefficients (Beta) .343 .314 .293 .295

Standardized Coefficients (Beta) .437 .402 .405

HR Policies and Retention Initiatives

Job Satisfaction and Organizational Commitment

Organizational Social Integration Managerial Retention and Turnover

Social Peer Group Interaction

Triad Person Organization Fit

Managerial Job Characteristics

Work Technology Support

Constructs 1. Supervisory Relationship

2. Peer Group Interaction 3. Person Organization Fit

4. Managerial Job Characteristics

5. Work Technology Support

6. Perceived organizational support

Middle Managerial employees: i) ii) iii) Managers Assistant Managers Officers

2007 39% 25.2% 46% 29% 48% 27% 22.1% 30.2%

2008 24% 22.6% 29.7% 23.2% 32% 25.1% 14.3% 18.2%

3. Person Organization Fit

Assimilation and Configuration

Middle Junior Middle

Converging Diverging Diverging

Assimilation and Configuration

Human resource development in Arab organisations: The case of Jordanian organisations

Participants academic specialization

Note: 1=Strongly Disagree,2=Disagree,3=Undecided, 4=Agree, 5=Strongly Agree

Proposal of a methodology for the cooperation of systemic methods

Figure 2. Objective tree of the OOPP method

Increase in price in inputs 0 + + + + 0 2 2 5

Table 4. Rotated Components Matrix (Source: SPSS V 18.0)

Classification Micro Small

Supply chain management: theory and its future perspectives

1970 Matured logistic concept

1970 - 1980 Logistic in SCM

SCM in the Manufacturing Industry. 1985

Educational SCM 2007

Table 1(contd). A Summary of SCM Citations in Manufacturing and Service Industries

Assessment Performance Quality Planning Performance # #

Figure 3a. A Comparative Analysis of SCM in Different Aspects

Figure 1. Mix of SLC and SSC projects reported

Table 1. Project values comparison

>1M 693 30%

Table 3. Reasons why projects succeed and fail (SSC projects)

Q9 -0.240 0.083 0.236 -0.393* 0.214 0.169 0.214 0.192 1

Hermann et al. (2006)

Samson and Terziovski (1999)