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Non-financial Rewards effect on Organizational strategy
IMPLICATIONS OF NON-FINANCIAL REWARDS ON DRIVING ORGANIZATIONAL STRATEGY AT THE COMMUNICATIONS AUTHORITY OF KENYA (CAK)
ABSTRACT
A major challenge in an organization is motivating its employees to become efficient with their tasks and how to encourage the workforce to become competitive in an inevitably uncertain and dynamic environment. Thus, to uphold a higher level of productivity, the organization must run an effective strategy to motivate its employees. For this reason, there are managers in several organizations who see a reward system as an imperative factor that can influence its employee’s behavior.
These involve intrinsic and extrinsic motivation. Intrinsic motivation is driven by a natural sense of accomplishment; such as professional growth and personal achievement. Extrinsic motivation, on the other hand, is a tangible reward; and unlike an intrinsic reward system, the extrinsic reward can be identified as materials that can motivate its employees, such as salary and bonuses.
The objective of this study is to evaluate the impact of non-financial rewards on driving organizational strategy at the Communications Authority of Kenya (CA). Moreover, this study assumes that the use of non-financial rewards can retain employees in the organization.
1.1 Background of the Problem
The core objective of any business enterprise is to generate consistent and sustainable profits. All the internal functions must be aligned with this objective. Human resource management plays a critical role in harnessing skills and expertise needed to convert resources to finished goods and services.
The managers recruit and train the employees so that they meet individual and organizational goals for optimal performance. Doing so requires the application of strategies that keep the employees motivated to perform. Lack of motivation is detrimental to a firm since it leads to stagnation in performance and it’s the cause of high turnover rates.
As such, a Human Resource Management (HRM) department is mandated to ensure that a firm’s production capacity is optimal to ensure that performance is high by designing and implementing strategic human resource approaches. One of the main strategies that human resource managers can apply is a reward system (Irshad 2016).
Zani et al. (2011) asserted that most of the successful public enterprises achieve better results and an increase in employee engagement by associating rewards directly to job performance. The strategy is not only applicable to sales personnel but to all levels and functions of a business. However, success of the reward system is guaranteed if proper implementation is observed.
Instituting a reward-based organizational culture may seem to be a short-term vision, but most successful managers claim that it’s an impeccable instrument for attaining success. A reward system unlocks employee capability, retains and motivates performers, and consequently generates higher revenues (Zani et al. 2011). Other benefits associated with a reward system include clear alignment of employee’s career path, a focus on development and growth, an increase in employee engagement and strategic decision making, and low turnover.
According to a research done by Giga Information Group on the impact of reward system to job performance, the researchers found out that retention improves by 27% when a firm exercises a reward system culture (Richard, 2010).
Like all strategic initiatives, a reward-based performance system requires comprehensive planning and flexibility. It should also integrate with HRM, the goal of the firm, and performance measurement. Since there hasn’t been identified a customized approach, managers should tailor the reward system to the current HRM processes and uniqueness of the firm. The approach is not just about setting up a framework and workers acting upon it.
Emotional and psychological realities have to be set up by asking the right questions and linking them to the human side of the incentives. While some employees are motivated by financial rewards, others get motivated through non-financial rewards (Lawler 2011).
According to Mowday et. al. (2013), some important questions that HRM should ask before deciding to apply a reward system is: “Are the tasks that people are taking moving the organization forward? Are the managers engaged with the employees throughout the year to make sure they carry out, and, achieve their objectives? Are individuals delivering against what is expected? Who is and who isn’t?
Are you objectively ensuring that bonuses, salary increases, and promotions are given to those high-performing individuals that you can’t afford losing?” These questions are paramount as they enable the managers to design a program that fits the needs of the firm; either a financial or non-financial reward system. Moreover, the employees should have full trust with the management in fairly administering the scheme and possess the needed skills and abilities to improve performance.
A reward system is in the form of financial or non-financial incentives. Financial incentives lead to extrinsic motivation whereas non-financial incentives generate an intrinsic motivation. It is crucial for managers to understand the difference between the two reward systems to determine the one that suits an organization. A financial reward system is tangible and usually involves the practice of provision of bonuses, commissions, and other monetary incentives to appraise employees for a job well done. The rewards are also given when an employee attains a certain target (Karwowski, 2014).
Economic volatility has seen many firms try to find ways to supplement financial rewards by concentrating on the non-financial rewards. Richard (2010) defined nonfinancial rewards as those not consisting of an employee’s salary. Often, workers tend to feel unappreciated by their firms due to layoffs, stressful working conditions, and increasing demands leading to their disengagement.
Employees can perform optimally if they feel valued, appreciated, plus a sense of job security. As such, non-financial incentives are programs that address these needs. The common non-financial incentives are reward, recognition, provision of career advancement opportunities, job security, and flexibility. The perceived importance of non-financial rewards differs across employee levels and it’s up to the HRM to establish what is appealing to the different groups.
For example, a fast growing firm may focus on work environment but a slow growing firm can focus on career growth and development. Investing in employees by appreciating them in diverse creative ways is a critical strategic approach that managers can apply in instituting a non-financial reward system. It is for this reason that non-financial reward system formed the basis of the study by focusing on the Communications Authority of Kenya (CA).
Just like other large organizations, CA faces the challenge of maintaining the motivation and productivity of its employees as it tries to upgrade its performance. The organization has previously applied both the financial and non-financial rewards. It therefore drives the question of the implications that non-financial rewards have had in facilitating the implementation of the firm’s strategic goals.
1.2 Statement of the Problem
The challenge of most organizations is establishment of an efficient rewards systems aimed driving the strategy of the firm. One of the affected firms is Communications Authority of Kenya (CA). According to Murray et al. (2014), it is imperative for managers to keep track of the needs of employees to match the expectations of the organization towards productivity.
Most employees tend to underpin the impact of non-tangible rewards and seek satisfaction in tangible or extrinsic rewards. Thus, firms should involve employees in creating nonfinancial incentives, and ensure they understand each employee level and expectations for better results. According to a study done by Zani et al. (2011), the results stipulated that non-financial rewards such as recognition, praise, and kudos from the employers or the organization had a greater impact on the employee’s behavior and motivation towards their jobs.
Moreover, according to Westover & Taylor (2010), intrinsic rewards provide a clear view towards job satisfaction. Within their study, they had a wave of respondents towards non-financial rewards related to job satisfaction. In that case, it was determined that non-financial rewards have a greater value than providing tangible rewards to the employees.
However, the context of wages and bonuses is an important factor for employees and can continue to function within the organization. In the case of a research by Griffin and Moorehed (2014), the author asserted that financial rewards initially had greater impact onspecific employees. However, as the programs continue over a long period of time, managers should combine financial and nonfinancial rewards since they equally affect the employees’ behavior which in turn reduces employee turnover.
To simplify the result, both equities are important when done in complimentary proportions. This study emphasized on the impacts of non-financial rewards in driving performance in an organization. This is in order to understand how to retain skilled employees and subsequently sustain a successful work-related culture and organization without the use of monetary incentives.
The Communications Authority in Kenya (CA) had recognized both rewards system; however, sustaininga motivated and skilled employee had been their utmost dilemma, attaining minimal improvement in employee production and rate. This study seeks to address the gap that will be filled in the firm, and other related entreprises, if non-financial rewards are to be implemented in driving the strategies of the organization.
Moreover, this study also gives room to address criticisms and oppositions that may arise if non-financial rewards are introduced in different departments within the Communication Authority of Kenya. Furthermore, this study seeks to determine the employees’ flexibility towards a different form of rewards rather than aiming for tangible rewards.
References
Armstrong, M., Brown, D., & Reilly, P. (2011). Increasing the effectiveness of reward management: an evidence‐based approach. Employee Relations, 33(2), 106-120. http://dx.doi.org/10.1108/01425451111096668
Armstrong, M. & Taylor, S. (2014). Armstrong’s handbook of human resource managementpractice, 13th edition (1st ed.). London: Kogan Page.
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Migration of people has the benefit of spreading several levels of workforce around the world. Both skilled and semi-skilled workforce is desirable in many parts of the world and may help in distributing some essential work practises that are missing in several parts of the world (Kaplan 2017). Immigration helps in replenishing labour needs in some countries that are experiencing low workforce due to the ageing population or low increase in the population that creates a gap in labour needs (Kochan&Finegold 2012).
The competitive nature of global marketplace requires companies to have highly skilled workforce in order to compete favourably. Some organizations are then forced to offer attractive packages to these workers to move them from their countries of origin, mainly developing countries.
The migration of people has got many effects on both the home country and the destination country of the labourers. The influx of many labourers into a country may affect the minimum wage as employers will have a large pool of employees to choose from (Siddiqui 2012). The impact on home countries may include brain drain or low skilled workforce, causing slow economic growth due to inadequate expert workforce to accomplish essential jobs (Siddiqui 2012).
There is a multifaceted effect of immigration in terms of its contribution to the workforce. The effect may be positive or negative depending on where the migrants come from or go to and the type of labourers. This study seeks to find whether migrant workers can bring new practises and work performance standards to a country and whether they can be an asset to that country.
Sources of Migrants
There are several social, economic, political and environmental factors that may contribute to the migration of individuals. People have been migrating for many centuries from one region to another, and in doing so distributing their culture and practises around the world. There are several reasons why people migrate which may be poverty, political turmoil or socio-economic reasons.
Poverty or poor economy
Poverty is arguably the highest cause of migration in the 21st century due to the huge imbalance between the poor and the rich. There is a great disparity between developed and developing countries, with the five richest countries in the world being 100 times richer than the ten poorest countries in the world (One America 2017).
The quest to run away from poverty and struggles that cloud those living in developing countries is very high. Additionally, skilled workers from developed countries in professions such as engineering, medicine, nursing and finance may want to move to countries where they can earn better wages, improve their skills, increase their knowledge, and experience better working conditions (Dayton-Johnson 2009).
The developed countries are often faced with massive corruption, nepotism, tribalism, unequal distribution of resources and embezzlement of public funds by public officials (Fokkema& De Haas 2015). Unemployed people in these countries may therefore migrate either to urban centres, or to developed countries where there is high wages and good working environments.
For example, in Haiti the average per capita income is around $400 per year, while in the United States an unskilled labourer can easily make that in a week (One America 2017). This forces many to seek out employment in these countries, which also helps them remit money to their families back at home and help them fight poverty. Poverty makes hundreds of Africans brave the dangers of drowning in the Mediterranean Sea, when they board smuggling boats using their hard-earned money to Europe.
In 2015, more than 1600 people drowned in the Mediterranean Sea when their boats capsized as they were being smuggled into Europe from Tunisia, Morocco and Algeria (Saunders 2015). The quest to run away from poverty makes people risk everything for good life abroad.
Political instability and armed conflict
In March 2017, the president of the United States Donald Trump banned the citizens of Somalia, Sudan, Libya, Yemen, Syria and Iran from accessing the United States (Whitehouse.gov 2017). These countries constitute the countries with very unstable political environments, as wars and civil wars are continuing in these countries due to various reasons.
The failed Arab Revolution in Syria left the country in political turmoil as the government is battling militias and terrorists from taking control of the country (Gharib 2017). The same is happening in Somalia and Yemen. These countries generate the largest number of refugees as they escape from their war torn countries towards safer environments such as the United States and Europe.
Out of the 16.5 million refugees present in the world by 2017, 30% come from Syria (Gharib 2017). The bulk of these refugees come from the five mentioned countries, and are mainly hosted in South Sudan, Lebanon, Jordan, Turkey, Uganda, Kenya, Sweden and Chad among other countries (Garib 2017). Among these hundreds of refugees are skilled labourers such as teachers, doctors, nurses, drivers, and government officers such as clerks, accountants and administrators. These refugees will most likely seek for employment in their new countries and will help in the economy of their destination countries.
Socio-economic factors
Apart from poverty and political turmoil, there are many other factors that influence the migration of people to other areas. Saunders (2015) found out that the Mediterranean migration crisis does not only come from poverty or political strife in Africa, but rather from high demand for labourers in Europe. He found that most of those who risked their lives to go to Europe were educated, ambitious, middle class and very far from being peasants.
These individuals would pay up to $2000 for a trip to Europe, showing that they could at least afford the large amount of money for a successful life abroad. Saunders (2015) also found that the illegal migrants from Africa were connected to individuals in Europe working in the same profession, and are not running away from something but rather following a certain opportunity in Europe.
Most people who migrate to successful economies do so to advance their social status, by getting jobs with good earnings, and some to seek for specific opportunities in business and investment opportunities (Awumbila, Owusu&Teye 2014). The oil business in the United Arab Emirates, Qatar and Saudi Arabia has attracted a large number of expatriates into the region. The prospects of employment with better salaries, good lifestyle and better working conditions are the main reasons many expatriates from other countries go to the Middle East (Shaheen 2009).
The ageing Baby Boomers population in the United States and most European countries is creating a massive gap in employment as the group is retiring at an alarming rate and in great numbers (Kochan&Finegold 2012). This creates a wide gap in employment as there is need for skilled labourers in these countries to fill the employment gap.
Additionally, supplementary staff are needed mainly in the health and hospitality sectors to cater for the needs of this population, as their weakening bodies come with more needs (Bartha et al. 2015). The retirement of the Baby Boomers leaves many companies with the need to recruit workers to fill the gaps in middle skill jobs such as high skill manufacturing, nursing, computer technology, and accounting (Kochan&Finegold 2012).
Some people migrate to other countries hoping to improve their education or other statuses in life. For example, Legrain (2007) reports that some of the people living in London were in transition into better jobs, but had to spend some years learning English before venturing into better jobs in the UK, or other English speaking countries like the United States.
Most of the immigrants were from Asia, South America or Africa. Legrain (2007) also shows that many immigrants in the United States and UK end up upgrading themselves and getting into lucrative careers such as accounting, professors in universities, hotel managers and administrative assistants among others. Therefore, migrant workers help their countries of destination in several other ways too despite the setbacks many face.
Importance Migrant Workers
Migrant workers serve as a ‘reserve army or labourers’ waiting to bridge any employment gap in seasonal peaks of production (Hardy 2009). In the United Kingdom and the whole European Union, many companies require seasonal job needs in various sectors such as agriculture, hospitality and service industries, attracting workers from Africa and Asia (Hardy 2009). According to Saunders (2015), the Mediterranean migration is usually seasonal because of the different job demands in European countries.
In 2008 for example, there was an increased Europe to Africa migration because of the economic recession that many European countries were going through. The migration erupted again in 2011 and 2014/2015 because of stable economic times in the European markets. Most of the people crossing were learned and professionals seeking to establish their lives in Europe.
Effects on Work Practises and Standards
Migrant workers do not just fill the job deficiency gaps in their destination countries, but provide a quick way of providing professional and high skill workforce required by the destination countries (Foema& Haas 2015). After the great recession of 2008, many employers in the United States struggled to find individuals to fill gaps in the middle skills jobs as the large number of retiring Baby Boomers were creating huge employment demands in the job market and immigration reduced during this period (Kochan&Finegolf 2012).
The discovery of oil in the United Arab Emirates in the 1960s created a high demand for workers to fill several sectors of the economy such as finance, accounting, hospitality, engineering and media among others (Soto &Haouas 2012). The UAE is the richest country in the world in terms of oil, accounting for 7% and 4% of the world’s reserve of oil and gas respectively as by 2011 (Soto &Haouas 2012). The local population of the Emiratis consist of less than 20% of the total population, which could not provide enough individuals to fill the high skill jobs required in the job sector.
The expatriate population in the UAE come from many countries, mostly from Asia and especially India (De Bel-Air 2015). The good salaries and better lifestyle in UAE attracts talented and highly skilled individuals from different countries in the world to fill job positions in the oil sectors and related industries. The thriving UAE economy has a lot to do with the high number of expatriate population that cover 95% of private sector jobs and 40% of public sector jobs (De Bel-Air 2015). The input of the migrant workers has put UAE to be one of the most vibrant economies in the world.
Migrants have the ability to change the economies of certain countries to be outstanding in certain areas. The Software Industry of India is one example, where diaspora Indians in the American software companies travelled back home to form software companies in their country (Dayton-Johnson 2009).
Today, India’s software industry is the leading in Asia, and constantly collaborated with other companies in the USA to provide better services. Migrant workers have enabled the UAE to have a vibrant industrial sector, while the exquisite human resource practises in Qatar is mainly attributed to expatriates who run most of the country’s companies including multinationals (Koji 2011).
Bridging local skill gaps
One characteristics associated with migrant workers is that their approach to work is always different from that of the local population. Koji (2011) notes that many citizens of UAE, Qatar and Saudi Arabia work in the public sector because they detest the working conditions in the private sector. The United Arab Emirates promoted the development of the non-oil sector in the 1980s to reduce the country’s reliance on the oil industry (Koji 2011).
Therefore, expatriates form 99% of the population in non-oil sector mainly manufacturing, construction, transport and low-skilled jobs as they are able to endure extreme working conditions. The need to make money and change their social conditions at home makes these individuals to brave all conditions to be able to succeed (Koji 2011).
Carvalho (2015) notes that expatriate population helps in the economic development of a country as they contribute to the essentials of economic growth such as population, productivity and participation. Most migrants are usually of prime working age and are ambitious, hardworking and skilled in one sector or another. As noted by Carvalho (2015), most Australian migrants are below 40 years old and above 20 years old.
They therefore form the best country’s asset in bridging labour needs, by filling gaps in the population. By using them, the country can advance economically as they provide additional labour in the deficiencies created by the local population.
Another characteristics associated with migrant workers is that they are very hardworking. As opposed to the local population which may be choosy, they are able to adapt to the local working conditions and can endure very harsh working conditions in their host countries (Poulney 2015).
The position of Qatar to hold the FIFA World Cup in 2022 has attracted a hoard of expatiates mostly from Asian countries to work in the construction industry, as the country tries to beat the deadline of constructing world-class stadiums for the event (Poulteney 2015). Though there are instances of human rights violations, the working population in these projects is highly migrants as locals keep off the deplorable working conditions of the huge projects.
Imai et al. (2011) notes that many migrant workers have a tendency to remit money back home to their families as they work abroad. This money is meant to uplift the living conditions of those left behind. These remittances helps in improving the credit rating of these countries and providing foreign currency that can be used to inhibit investor panic (Imai et al. 2011). The remittances helps migrant workers to invest in physical assets in their home countries and improving the health and education of the local population.
Challenges Faced By Migrant Workers
Migrant workers face a myriad of challenges in their journeys to uplift their living standards. They often face very difficult conditions of work and have few rights at their jobs (Siddiqui 2012). Poulteney (2015) notes that migrant workers in Qatar work for almost 16 hours, and their visas are often confiscated by their employers until they finish their contracts. These practises are however changing as the government seeks to impose tough penalties to employers confiscating their employees’ travelling documents (Tuxford 2016). Workers in Middle East though endure long working hours and often suffer from cardiac arrest and heat strokes.
Some countries such as Saudi Arabia and Qatar deny migrant workers citizenship and are forced to leave the country immediately their contract ends, or when they are unable to get another job (Koji 2011). Some employers in some countries may also exploit migrant workers by offering them very low wages as compared to the locals. They may also deny them training, job related perks or health insurance coverage benefits.
Conclusion
Migrant workers can be a great asset to a country. They may bring a lot of experience and good work practises that can aid greatly the economy of a country. They often migrate because of poverty, political instability or to improve their social status. This makes them better workers as they are hardworking and visionary, though this comes with challenges.
References
Awumbila, M., Owusu, G. and Teye, J.K., 2014. Can rural-urban migration into slums reduce poverty? Evidence from Ghana. Migrating Out of Poverty Working Paper, 13, pp.1-41.
Bartha, A., Fedyuk, O. and Zentai, V., 2015. Low-skilled Migration: Immigrant Workers in European Domestic Care.
Dayton-Johnson, J., GTZ, A.P., GTZ, K.S. and Schwinn, J., 2009. Migration and employment. Unclassified DCD/DAC (2009) 16/ADD, p.93.
De Bel-Air, F., 2015. Demography, migration, and the labour market in the UAE.
Fokkema, T. and Haas, H., 2015. Pre‐and Post‐Migration Determinants of Socio‐Cultural Integration of African Immigrants in Italy and Spain.International Migration, 53(6), pp.3-26.
Imai, K.S., Gaiha, R., Ali, A. and Kaicker, N., 2014. Remittances, growth and poverty: New evidence from Asian countries. Journal of Policy Modeling,36(3), pp.524-538.
Kaplan, G. and Schulhofer‐Wohl, S., 2017. Understanding the Long‐Run Decline in Interstate Migration. International Economic Review, 58(1), pp.57-94.
Kochan, T., Finegold, D. and Osterman, P., 2012. Who can fix the “middle-skills” gap. Harvard Business Review, 90(12), pp.81-90.
Koji, H., 2011. Controversies over labour naturalization policy and its dilemmas: 40 years of Emiratisation in the United Arab Emirates. Kyoto Bulletin of Islamic Area Studies, 4(1-2).
Legrain, P., 2014. Immigrants: Your country needs them. Princeton University Press.
Rabe, B. and Taylor, M.P., 2012. Differences in opportunities? Wage, employment and house‐price effects on migration. Oxford Bulletin of Economics and Statistics, 74(6), pp.831-855.
According to the Institute of Medicine 2012 report, the U.S. healthcare system loses 10% of the health expenditure annually due to fraudulent billing. This includes unnecessary reimbursements, inefficient delivered healthcare costs, administrative costs, preventable opportunities that are missed and egregious pricing of services. Healthcare fraud is categorized into provider fraud, consumer fraud and payer fraud (Raghupathi & Raghupathi, 2014).
An example of fraudulent billing is Medicare Fraud. This includes submitting knowingly or forcing submission of false claims or misrepresentation of facts so as to obtain healthcare payment which otherwise one would not be entitled to. Other fraudulent behaviors include soliciting, offering or receiving bribes to induce or to reward referrals for services reimbursed by the federal healthcare systems.
These kinds of frauds range from individual to broad based operations by organizations. Other kinds of fraudulent billing includes charging for bounced appointments, billing services at higher level of complexity than what was actually provided for or billing for services that were not furnished or paying for deliveries that were never done (Fraud abuse, 2016).
The following article was chosen for this analysis is :- Joudaki, H., Rashidian, A., Minaei-Bidgoli, B., Mahmoodi, M., Geraili, B., Nasiri, M., & Arab, M. (2016). Improving Fraud and Abuse Detection in General Physician Claims: A Data Mining Study. International Journal of Health Policy and Management, 5(3), 165–172. http://doi.org/10.15171/ijhpm.2015.196
According to this article, the healthcare fraud account for 10% of the healthcare expenditure. Despite the stringent laws established by the Congress, addressing the healthcare care fraud has become a challenge especially in light of these major economic changes in healthcare market place. According to this article, traditional methods of detecting healthcare fraudulent billing in healthcare are inefficient and time consuming. The article suggests that using automated methods as well as the statistical knowledge has led to the emergence of new branch of science known as Knowledge Discovery from Databases (KDD). One core processes is the Data mining (Joudaki et al., 2016).
Through the data mining strategies, the third party payers such as insurance companies are able to obtain useful information from many claims and are also able to identify the smaller subsets of claims that need further assessment. The article explores the various theoretical and practical challenges associated with the healthcare fraud, as well as the merits of addressing healthcare fraudulent activities.
In addition, the article reviews studies conducted through data mining to detect frauds in health care, where three quarters of the study indicates that data mining technique is an effective strategy in identifying, predicting and preventing fraudulent activities in healthcare. The study concludes that data mining is an effective technique to streamline auditing processes towards the suspected group (Raghupathi & Raghupathi, 2014).
Defrauding the federal government and the medical cover programs is illegal. This could lead to criminal and civil liability and could lead to fines, hefty penalties or imprisonment. The federal fraud and abuse laws that is used against the physicians includes; United States Criminal Code, False Claims Act (FCA), Physician Self-Referral law (Stark law), and the Social Security Act.
These laws describe the administrative, civil and criminal remedies imposed by the government on entities that commit fraudulent billing or activities in Medicare program. Violations of these laws can also lead into exclusion in all federal healthcare programs, non payments of reimbursements, or exclusion from all federal healthcare programs (Fraud abuse, 2016).
Joudaki, H., Rashidian, A., Minaei-Bidgoli, B., Mahmoodi, M., Geraili, B., Nasiri, M., & Arab, M. (2016). Improving Fraud and Abuse Detection in General Physician Claims: A Data Mining Study. International Journal of Health Policy and Management, 5(3), 165–172. http://doi.org/10.15171/ijhpm.2015.196
Raghupathi, W., & Raghupathi, V. (2014). Big data analytics in healthcare: promise and potential. Health Information Science and Systems, 2, 3. http://doi.org/10.1186/2047-2501-2-3
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This paper intends to develop a critical assessment of “Glocalization” concept. Furthermore, the paper intends to illustrate how “Glocalization” and the “standardization-adaptation debate” relate.
Part I
Critical Analysis Regarding Relevant Literature
Definition
“Glocalization” is a term used to demonstrate a concept in which, products which are marketed globally are able to adapt to different local markets. Therefore, “Glocalization” refers to a concept in which, within the global market, a given product or a given service, has a higher likelihood of succeeding, when it gets customized according to the culture or the locality where sales of that product are made (Bantimaroudis 2017).
Additionally, based on the “Glocalization” concept, products are designed for the benefit of a specific local market, whereas a simultaneous development of the same products occurs, with the aim of distributing the products globally.
“Glocalization” context in reference to Globalization
“Glocalization” is a term developed from a combination of two broad terms which are the term localization and the term globalization (Drori, Höllerer, and Walgenbach 2014, pp.85). Globalization refers to the global movement regarding interaction or integration by diverse people, different companies, along with governments from dissimilar nations (Frenkel 2014, pp.133).
In contrast, localization refers to the adjustment of original output by different companies within their domicile countries sense. Localization also refers to the suitability of a perception using another language or a different culture (Küster 2016, pp.203). Thus, “Glocalization” results from both the forces of localization, along with the forces of globalization.
The driving idea of “Glocalization” is creating an initial product with a precise foreign marketplace in mind. However, “Glocalization” is more effective and efficient in companies that employ decentralized authority. Notably, employing decentralized authority is a force of globalization.
“Glocalization” presents many benefits to companies, along with the communities utilizing the products developed by the companies involved, or the services offered by the companies. Thus, companies that employ “Glocalization” are able to attend to a bigger market which they have targeted (Akgün, Keskin and Ayar 2014, pp 610). Conversely, the community benefits from increased market competition, which results in a drop in the product prices.
Therefore, “Glocalization” effectively reduces the gap of inequality, whereby individuals who previously could not be able to afford certain products due to the market being controlled by the local monopolies, get the capability of purchasing the products at a cheaper cost.
Therefore, when the term globalization is used, it implies all activities that place globally such as services offered companies available, and people, all being connected globally. However, “Glocalization” describes both global activities along with local activities (Apetrei, Kureshi and Horodnic 2015, pp 1520). Thus, “Glocalization” involves simulation of global activities to the locals. Globalization is thus assumed to be a significant phenomenon globally.
Furthermore, globalization interrelates with post-Fordism. Through globalization, social impacts along with economic impacts are achieved. Therefore, a difference in power or the ability of a company results in uneven social development along with economic development. Consequently, the development of “Glocalization” from globalization is significant in forming both a socioeconomic reality along with a political reality (Asseraf and Shoham 2016, pp 492).
Before the emergence of “Glocalization” people understood the nation state as an acceptable scale for understanding sub-national processes along with international processes. As the nation state faded, then “Glocalization” emerged.
“Glocalization” is characteristic of frequent economic implications, institutional associations along with socio-cultural implications (Hatzithomas, Fotiadis, and Coudounaris 2016, pp1099). Furthermore, it is also evident that scrupulous manifestations regarding global processes may also be witnessed in existing localities, while the supposed duality linking global processes to local processes is not literal.
Notably, “Glocalization” is a combination of the globalization process and localization process. Localization processes involve human beings, single subjects, different organizations, and diverse communities (Japutra, Nguyen and Melewar 2015, pp 102). In contrast, globalization is influenced by the planetary developments. However, global processes are influenced by concrete localities. Thus, “Glocalization” can be interpreted to refer to the act of thinking globally but acting locally.
Markedly, “Glocalization” thus, demonstrates the capability of human beings in mentally overcoming different territorial scales. Considering the economic perspective, global processes are described as turbulent and also volatile. Furthermore, economic subjects that constitute the process of globalization are accessible in specific localities. Therefore, companies are concurrently strongly local and hugely global.
Notably, the reduction of scales used in regulating work, along with scales of social replica corresponds to the increasing scale relating to economic organization and production forces (Magnusson et al 2013, pp 45). “Glocalization” processes along with territorial re-definitions are dominant within the system of finances.
For instance, reports show that the “Speculative foreign exchange market” raised from $15 billion in the year 1970 to above $2 trillion currently (Matusitz 2015, pp84). Notably, to appropriately allocate the flow of finances, the space available and the location to be used are significant. Thus, “Glocalization” becomes significant in attending to the system of finances.
Moreover, “Glocalization” is constantly applied within large economic units. Companies tailor their products along with services based on interests shown by local markets in diverse parts of the globe, which are strongly differentiated (Meyer and Su 2015, pp150). Thus, pecuniary interests play a significant role in “Glocalization” processes. Within a standpoint of an institution, making the authority of a state weaker implies transferring activities to global levels along with local levels.
Reflection on how “Glocalization” concepts transmit to “Standardization-adaptation Debate”
Globally, the debate regarding the significance of standardizing the marketing mix used by multinational corporations or adapting to the local setting has taken over five decades. The debate is however affected by global technological changes and the international economic crisis (Qureshi 2016). The past four decades were characteristic of research regarding “standardization-adaptation debate”.
Notably, research conducted in the 1980s focused on the necessity of companies following adaptation strategies for individual national markets as opposed to having standardization within every national market (Romanov and Kononenko 2014, pp 436). The discussions revealed that while an increase in market similarity was witnessed, and homogenization of markets emerged, companies gained the advantage of marketing similar products or services globally using programs of marketing, which are standardized.
However, critics of the view above dispute that disparity in culture, politic or economics among nations gets underestimated in the view above. Thus, questions develop regarding standardization feasibility. Consequently, other researchers focused on the “contingency approach”, which pays more attention to the desired degree of standardization along with feasible standardization (Roudometof 2016, pp391).
Moreover, due to the modern information developments along with technologies used in communication the debate on standardization-adaptation has increased. In addition, there has been an increase in globalization stream along with the volatility of economic conditions (Roudometof 2014, pp18). The debate, therefore, aims at providing an appropriate framework that exhibits the dynamics associated with adaptation selection or standardization range in elements of a marketing mix that affects how a firm performs.
The framework to be developed is aimed at influencing the advancement of business internationally. Generally, the debate on standardization or adaptation of the strategy for marketing started as an argument on homogenization of world markets, influencing companies to put more emphasis on the match between consumers globally (Schmid, Grosche and Mayrhofer 2016, pp536).
The debate further developed to reveal that the advancement of technologies used in communication and technologies used in transportation influenced market strategies standardization, which also includes a promotion mix. Afterward, there was an increase in agreements regarding multilateral trade, goods, services, information, along with capital started flowing freely.
Thus, globalization was accelerated, which resulted in support towards standardization approach (Some and Issa 2017, pp 925). There was a further reduction in cost influenced by the economic balance in activities of production along with marketing, transfer of experience, utilization of resources in a better way, development of global brands along with company images as part of the benefits realized from having standardization.
Other literature developed the assertion that standardization of the practice of global marketing. Furthermore, the focus was directed on the degree of effects which related to standardization based on the fact that it was understood that when costs are low, there would be an increase in profits (Sudarevic, Radojevic and Lekovic 2015, pp 2740).
However, the debate also develops views claiming that appropriateness of standardization relies on the influence standardization levels have regarding financial performance. When a firm enters international markets, it has to adapt or standardize in their market mix. Elements of a market mix include product, price, promotion and place. Since the 1980s there have been debates whether to choose a strategy of adaptation or standardization (Bantimaroudis 2017).
Standardization can be defined as activities of the market coordinated in many countries that integrate standardized goods and serviced, products of similar brands, corresponding products presented in the markets and advertisement messages that are similar and are usually carried out in numerous countries at the same time (Virvilaite, Seinauskiene and Sestokiene 2015, pp106).
For those scholars who supported standardization, they argued that standardization leads to a greater volume of sales, increased profitability, low cost of production and integrated image worldwide. For adaptation, it was necessary when a firm wants to reach out new sectors of the market or rather when a firm wants to be a leader in the market.
In standardization strategy, there is centralized management of international operations, tastes and preferences of consumers are homogeneous and they completion is global while in adaptation strategy, the management is decentralized with its own country, consumers tastes varies since they are heterogeneous and they compete locally(Apetrei, Kureshi and Horodnic 2015, pp 1521).
A product is anything that a market offer for use or for consuming that satisfies utility. The product is the easiest to standardize in the market mix elements. Product standardization is whereby a company can export their goods and services without changing the product. This is due to homogeneity of products on the market. International companies make sure they develop a global product that can be accepted worldwide.
By choosing standardization strategy, organizations consider that they take into account the needs and demands of local people (Küster 2016, pp.204). Product adaptation strategy comes in when a firm fails to modify the product into a specific market. Products have to be differentiated by branding, changing the design and different packaging.
Distribution channels can be defined as a set of connections of agencies and institutions that link buyers and sellers in a market. Sellers need to understand the channels of distribution for it is a major contributor to company’s success. With a clear understanding of distribution channels, a firm can easily be a leader in the market (Bantimaroudis 2017).
The decision whether to standardize or adaptation depend on various factors such as product, culture and the consumers. Standardization of product is quite difficult due to large variations in distribution channels. Each country has different places of supply and different distribution channels. Places of supply can be supermarkets or even shops or internet (Some and Issa 2017, pp 926). Therefore, distribution channel can be easily adapted since a country differs in distribution infrastructure, habits of purchase and disposable income.
Thus, standardization may be compared to promotion adaptation. Promotion consists of marketing tools used by a firm to persuade consumers to buy the good or service and also builds relationships with customers. Promotion can be achieved through advertising, personal selling, public relations and sales promotion (Bantimaroudis 2017).
Promotion standardization means that firms will use the same promotion worldwide without changing it. By doing so the firms ensure that they minimize costs. Advertising is usually affected due to language barriers, religions, laws, availability of media and difference in the economy all of these factors creates a need for adaptation strategy (Bantimaroudis 2017). Adapting strategy can be done by modifying the advertisement such that each region has its own way of advertising. However, this could be costly.
Standardization can thus be judged against pricing adaptation. Price is the monetary value of a good or service. The decision whether to choose standardization strategy to depend on factors such as preferences of consumers, market competition, inflation and exchange rates and regulations imposed on trades e.g. tariffs and duties. Price standardization means that the centralized office is in charge of fixing the price and the price is applied to all international market (Apetrei, Kureshi and Horodnic 2015, pp 1521).
This strategy ensures risks are minimal but also the profits are not maximized here. In Price adaptation strategy, the price is decentralized to local regions and managers set up price depending on international markets and revenues from consumers (Bantimaroudis 2017). Prices differ from one region into another. This is advantageous because a company can take advantage of the difference in price and sell their products where the prices are high.
Advantages along with drawbacks of the different strategies of Global Marketing
Notably, “glocalization” is developed from the concept of a sphere of cooperation in development and the continuity of processes relating to post-millennial goals (Bantimaroudis 2017). Therefore, “glocalization” does not only imply an essential principle of execution, it also refers to the factors influencing how communities develop, along with having a balance in development globally. In contrast, standardization occurs when there are a variety of products to be exported.
Moreover, the products being exported based on standardization measures should be of acceptable quality (Frenkel 2014, pp.134). Thus, standardization is characteristic of the existence of life cycles. Due to standardization, product changes may be witnessed along with brand changes. Furthermore, standardization is expected to observe various approaches of promoting exports.
“Glocalization” is an efficient tool for developing diverse interest groups along with entire communities. Outstandingly, “glocalization” facilitates the improvement of skills possessed by representatives of diverse communities in simultaneously thinking globally and acting locally, at the time when they are making decisions that relate to activities conducted daily within the community (Akgün, Keskin and Ayar 2014, pp 611).
Consequently, “glocalization” has the potential of creating a society, which is coordinated. Additionally, “glocalization” processes assist in the expansion of development of local along with global communities, which are civic coordinated. “Glocalization” also aids in the creation of a balance in development (Bantimaroudis 2017). Thus, “glocalization” effectively reduces gaps that may exist between individuals and the community, a country and a city, Countries who are members of the European Union and countries having different development levels globally.
Therefore, “glocalization” addresses the aspect of standardization through developing theoretical stops along with viewpoints that relate to the longevity of daily life and the improvement of cooperation (Bantimaroudis 2017). Additionally, “glocalization” addresses adaptability by influencing topicality in the field of politics, topicality in education, topicality in community development along with society development, and topicality on daily life.
Thus, “glocalization” is a significant tool in the achievement of Millennium goals of development along with sustainable goals of development (Akgün, Keskin and Ayar 2014, pp 612). Furthermore, “glocalization” influences global education and existence of development cooperation. Due to “glocalization” processes, there is diversity in experiences along with comprehension improvement. Consequently, “glocalization” is able to demonstrate what good practices are and how the society can efficiently improve the practices.
In standardization, market drivers constitute the following, products that are homogeneous, global channels and customers and transferrable markets. “Glocalisation” helps to improve access to these drivers. This leads to firms benefiting from economies of scale in production, marketing, management, and distribution hence firms maximizes their profits. Due to producing homogenous product or services firms reduces competition in the international market (Some and Issa 2017, pp 926).
There is also the advantage of improved customer fondness which can be attained by increasing appreciation and serviceability globally, increased quality of product and services which are achieved by concentrating resources on a small number of products (Bantimaroudis 2017). However, there are a number of setbacks such as there is a possibility of increasing currency risks, there might also be legal restrictions in some countries due to trade barriers.
Part II
Analysis of how Starbucks Company uses “Glocal” Marketing Strategies and how Costa Company uses “Glocal” Marketing Strategies
The extent of Starbucks Company’s “Glocal Strategy” application
Notably, Starbucks Company creates all its physical locations in a way that accommodates local nuances and cultural nuances. For instance, in China Starbucks Company introduced beverages, which are coffee-free, since there is a local detest of coffee in China (Qureshi 2016). Starbucks also designs its stores in a way that accommodates large groups. Thus, Starbucks creates a seating arrangement, which consumers can adapt more too. Furthermore, Starbucks has a digital strategy, which is “consumer-centric” (Qureshi 2016). Starbucks also incorporates online interaction with offline experience.
The extent of Costa Company’s “Glocal Strategy” application
In contrast, Costa’s most renowned “Glocal strategy” is engaging in partnerships with local companies. Furthermore, Costa relies on the negative publicity of prospective competitors as its “Glocal strategy” (Virvilaite, Seinauskiene and Sestokiene 2015, pp107). In China, for instance, Costa Company entered into a partnership with “Yueda Group”, which is Chinese Company. Thus, Costa Company is able to gain knowledge regarding the local Chinese market from the knowledge “Yueda Group” has regarding customers in China.
Difference in Starbuck’s “Glocal Strategy” and Costa’s “Glocal Strategy”
Starbuck focuses on creating all its physical locations in a way that accommodates local nuances and cultural nuances. In contrast, Costa relies on engaging with local companies in order to conduct its businesses. Thus, Starbuck is more global compared to Costa since, it relies on local nuances along with cultural nuances when creating its physical locations (Some and Issa 2017, pp 927).
Furthermore, Starbuck also penetrates more in the local markets compared to Costa since it conducts its own business without partnerships, hence relies on its own research. Additionally, Starbuck also uses a digital strategy, while Costa relies on strategies employed by its partners such as “Yueda Group”.
Reflection on Starbuck’s “Glocal Strategy” and Costa’s “Glocal Strategy”
Starbuck employs standardization in its “Glocal strategy” by developing theoretical viewpoints relating to the longevity of daily life. For instance, Starbucks creates a seating arrangement, which consumers can adapt more too. In contrast, Costa employs standardization by improving their cooperation with local companies in their target markets.
Furthermore, the “Glocal strategy” employed by Starbuck is influenced by the advancement of technologies used in communication and technologies used in transportation influenced market strategies standardization, which also includes a promotion mix. For instance, Starbuck has a digital strategy, which is “consumer-centric” (Qureshi 2016).
Conclusion
“Glocalization” is an emerging phenomenon in the business world. The paper above has developed a critical assessment of “Glocalization” concept and illustrated how “Glocalization” and the “standardization-adaptation debate” relate. From the paper, it has been clear that through “Glocalization” products which are marketed globally are able to adapt to different local markets.
Furthermore, the essay has revealed that standardization leads to a greater volume of sales, increased profitability, low cost of production and integrated image worldwide. To present a detailed analysis, the essay has considered the case of Starbuck Company along with Costa Company.
Reference List
Akgün, A.E., Keskin, H. and Ayar, H. (2014). Standardization and adaptation of international marketing mix activities: A case study. Procedia-Social and Behavioral Sciences, 150, pp.609-618.
Apetrei, A., Kureshi, N.I. and Horodnic, I.A. (2015). When culture shapes the international business. Journal of Business Research, 68(7), pp.1519-1521.
Asseraf, Y. and Shoham, A. (2016). Marketing Capabilities and the “Salmon Run” Toward Adaptation. In Rediscovering the Essentiality of Marketing (pp. 491-492). Springer International Publishing.
Bantimaroudis, P. (2017). “Glocalization”: A Critical Introduction.
Drori, G.S., Höllerer, M.A. and Walgenbach, P. (2014). Unpacking the “Glocalization” of organization: From the term to theory, to analysis. European Journal of Cultural and Political Sociology, 1(1), pp.85-99.
Frenkel, M. (2014). Toward a multi-layered “Glocalization” approach: States, multinational corporations, and the transformation of gender contracts. Global themes and local variations in organization and management: Perspectives on “Glocalization”, pp.133-145.
Hatzithomas, L., Fotiadis, T.A., and Coudounaris, D.N. (2016). Standardization, Adaptation, and Personalization of International Corporate Social Media Communications. Psychology & Marketing, 33(12), pp.1098-1105.
Japutra, A., Nguyen, B. and Melewar, T.C. (2015). A framework of brand strategy and the ‘“Glocalization”’approach: The case of Indonesia. Analyzing the Cultural Diversity of Consumers in the Global Marketplace. Hershey PA, USA: IGI Global, pp.101-125.
Küster, V. (2016). From Contextualization to “Glocalization”. Exchange, 45(3), pp.203-226.
Magnusson, P., Westjohn, S.A., Semenov, A.V., Randrianasolo, A.A. and Zdravkovic, S. (2013). The role of cultural intelligence in marketing adaptation and export performance. Journal of Marketing Research, 21(4), pp.44-61.
Matusitz, J. (2015). Bharti-Wal-Mart: A “Glocalization” Experience. Journal of Asian and African Studies, 50(1), pp.83-95.
Meyer, K.E., and Su, Y.S. (2015). Integration and responsiveness in subsidiaries in emerging economies. Journal of World Business, 50(1), pp.149-158.
Qureshi, K. (2016). The role of business relationships between SMEs and network actors in defining standardization and adaptation strategies of SMEs: insights from business-to-business firms engaged in international activities (Doctoral dissertation, University of Essex).
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Roudometof, V. (2014). Nationalism, globalization and “Glocalization”. Thesis Eleven, 122(1), pp.18-33.
Schmid, S., Grosche, P. and Mayrhofer, U. (2016). Configuration and coordination of international marketing activities. International Business Review, 25(2), pp.535-547.
Some, Y.A. and Issa, M.A., (2017). The success of Brand Extension in “Glocalization”: A Mediation and Moderation Analysis. Pakistan Business Review, 18(4), pp.924-942.
Sudarevic, T., Radojevic, P., and Lekovic, J. (2015). The standardization/adaptation dilemma in agri-food exporters marketing strategies. British Food Journal, 117(11), pp.2739-2756.
Significantly, under this section the main object will be to analyze how a certain economic phenomenon by a business is likely to impact on the targeted group and consequently ascertain the end result of such undertakings. Thus, microeconomics gives us an insight of what is likely to be anticipated when certain changes are instigated with regard to the operations of a company and this is important because it can further aid in making proper decisions and initiating sustainable operating strategies.
For this section, the microeconomic issue identified is the cutting of prices of products or equally giving of offers by business. The table below briefly illustrates on the tangible issues that will be further discussed.
TOPIC
QUESTION
TOOL
PRICE CUTS/OFFERS
Why do businesses provide price cuts/offers on products?
Undisputedly, the pricing of a certain product eventually determines on whether it is likely to guarantee higher sales or losses. Ordinarily, customers are sensitive when it comes to the price of s product that they want to purchase because if it is not a pocket friendly price, then a majority will opt to buy an alternative product that will equally serve the same purpose but at a reasonable price (Dogan, et al 2013).
Similarly, when operating under a certain field competitors are bound to be present. This means that for one to outsmart them they have to come up with effective strategies to lure more customers to buying their products as compared to the rival’s and subsequently gain a large market share ( Pauwels & D’aveni, 2016). Hence, pricing seemingly plays a vital role under such circumstances.
Important to note is that before a business embarks on an initiative of providing price cuts on its products, there are certain essential factors that must be considered. This is so because not all price cuts may work for the advantage of the company. In fact, it is assumed that most price cuts tend to lead to low profit margin for the concerned business and this may hurt the overall operations of the business.
Among the things to be considered includes the long term implications of price cuts. For instance, one a price cut has been made and new customers have joined the bandwagon of purchasing it, increasing such a price thereafter may lead to loss of these customers as such a business must put in place other plans such as improving the quality of the product so as to demand a higher price because without such modification the initial price cut may end up hurting the business.
So as to answer the critical question of why do various businesses offer price cuts, the subsequent section of this paper will dwell on analyzing the various tools identified in discussing the economic issue.
Competition
Foremost, competition is one of the key features of any market. However, stiff competition may force a business out of the market as only the dominant participants get to have the larger market share. To mitigate such an event occurring, businesses are inclined to offer price cuts to their products so as to retain a fair share of the consumers in the market.
By giving such price cuts, it means that such a company can compete fairly in the area of operation. Accordingly, one can argue that consumer would often resort to buying products at reasonable prices, hence if one of the competitors is offering the same product at a higher price it is highly likely that they will lose buyers to the company that gives relatively cheaper pricing. In such a situation, to promote a fair competitive market, prices will thus be relatively proportionate as a result leading to a fair share of each participant in terms of customers and the market place.
Sales
Significantly, when a product does not sale it may eventually cause the business to succumb to losses. Thus, the concept of sales can be boosted in a twofold channel. First, for new products that have been introduced to a market it is imperative that price cuts are given so as to entice customers into buying the products.
On the other hand, when there are low buy outs of products, then a company may opt to initiate price cuts all in a bid to try and revamp the product. Generally, price cuts that aim to boost the sale of a commodity have to address a certain deficiency. In this way, having reduced prices serves as an effective tool in enhancing the purchase power of consumers towards a specified product.
Brand Promotion
Particularly, for new products that are unknown to consumers, it is vital that price cuts are provided. This is so because, often consumers may refrain from interacting with new products in the market based on aspects such as having a preference of the already existing ones. Such circumstances may impair the emergence of new businesses in that market. Thus, when price cuts are offered as incentives for customers, it id then highly likely that new consumers will indulge in buying the given product based on its reduced pricing.
Market dominance
Naturally, for businesses that operate in the same field of operation the market share that one has over the other largely matters. The market share determines the profit that a company expects to acquire from its sales. Hence, companies are motivated to initiate strategies that would put them at an advantage position over their rivals. One of the ways of doing this is by providing price cuts on the products of the business. Price cuts as aforementioned in the discussed sections are an allure for new customers.
When one business obtains new customers that belonged to a rival company it subsequently means that the former company acquires a large market share. However, such an undertakings has its downside in that it forms a platform for emergence of a monopolistic market structure whereby there is only one dominant player. When this happens, consumers are put in the liberty of that dominant player in the market because such a business has all the power and keys of controlling how that particular market will operate.
Economic recession
Notably, the economic state of a country determines how consumers of products will purchase and spend on products. In the case where the economy is booming and businesses are not financially constrained, consumers are highly likely to purchase products without much limitations or considerations such as on pricing. In this scenario, offering price cuts whereas fellow competitors are not may harm the business because consumers may not give too much concern about their spending.
On the other hand, when there is an economic slump, in that businesses are not doing as well as they would normally do this thus calls for effective measures to retain and attract customers so as to continue operating.
Under an economic recession situation, consumers would preferably want to spend less. To match with such changed dynamics, then one would argue that price cuts on the products of a business are the most viable solution to follow.
Market failure
Considering market failure is a concept that occurs as a result of inefficient allocation of certain resources within the market of operation, then such a situation is consequently likely to affect the operations of the company (Fabella, 2015). For instance, a monopolistic market structure may be deemed as a market failure ingredient based on the fact that new businesses will find it hard to compete in a market that is largely dominated by one player.
Nonetheless, in such a situation a company may opt to provide price cuts on its product so as to try and mitigate the market failure effects which if not diminished will certainly curtail the operations of the other businesses.
Government failure
Significantly, the government is duty bound to make sure that businesses operate in a fair and friendly environment. To do this, certain limitations must be imposed and constraining barriers broken down. For instance, take a situation whereby the government fails to monitor the operations of businesses through relative agencies, in such a situation certain business may drain consumers by instigation undertakings that would solely serve their own interest. One of such an undertaking may be over-pricing on the produced products.
However, such an undertaking may not suit all the businesses within the market as such prompting the need to lower prices of similar goods so as to counter the other business competitors.
SECTION SUMMARY
Nonetheless, there may exist factors that may affect this equilibrium price such that a business may be forced to make adjustments. This is of essence because without such alterations, a business is likely to operate under losses. The aspect of price cuts maybe one of the ways that business may use to reach certain equilibrium.
By giving price cuts it fundamentally indicates that a company aims at first increasing its sales and similarly obtains new customers. Importantly, aspects such as the profit margin that the business aims at must be considered before making such a move. In doing this, prior research is essential because without having knowledge of such information then a business may orchestrate its failure.
CONCLUSION
Foremost, markets are placed that are guided by certain distinctive features that must be observed and preserved so as to allow business to operate efficiently. For instance, without embracing the concept of fair competition between rival businesses, then one may triumph over the other leading to unfair labor practices.
Significantly, the importance of government intervention in market practices cannot be ignored. The government plays a key role in regulation of various aspects of the market so as to facilitate proper co-existence between the firms themselves and the consumers that they serve. Without such an intervention, evidently every business would seek to protect their own interests putting aside all other basic requirements such as offering quality products.
When it comes to the various macroeconomic issues that may affect the operations of markets, first it is important to note that such issues may have a direct effect on the activities of consumers and as a result end up curtailing the operations of the business in the end. Microeconomic issues should be looked at from a wider scope. Their particular effects should be analyzed in depth so that the right techniques are initiated to mitigate on their possible hazards.
Significantly, these issues should never be ignored before they may have adverse effects on the operations of the company as such creating the need to find way to move around them and benefit the business.
Finally, without fair market practices, not only does firms suffer but consumers too share in the same suffering. This calls for proper market practices that protect both the interests of the businesses and consumers so that none is inclined to spear-head their own interests on the expense of the other. Where unfair practices may emerge, it is imperative that even the firms themselves take personal measures and approaches to meditate on the negative consequences.
Reference
Boyd, T. (2015, Nov 28). Woolies crisis to go for years.The Australian Financial Review
Critical appraisal is conducted for 3 main reasons; a) to improve nursing practice, b) to increase nursing knowledge and understanding c) to provide a baseline for the study to be conducted. There is need for thorough understanding of the research study so as to establish the study strengths and weaknesses, and to evaluate the quality if strength of the evidence developed by the study as well as the appropriateness of its use in the reader’s practice.
In this context, this essay is a critical appraisal of the following article; Ma, C., & Park, S. H. (2015). Hospital Magnet status, unit work environment, and pressure ulcers. Journal of Nursing Scholarship, 47(6), 565-573.
Critical analysis
The article introduces the topic in a way that orientates the reader to the subject. It provides the background information using succinct statements. The last sentence of the introduction part is the thesis statement (Creswell, 2014; Jaul, 2013). Pressure ulcers are critical patient issue because they are associated with prolonged hospital stays, increases patient risks for adverse events and increased consumption of the healthcare costs (Cai, Rahman, & Intrator, 2013; Buttaro et al., 2013, p. 304).
Nurses play crucial role in preventing pressure ulcers. However, the degree of patient safety is determined by the nurse work place environment, “The organizational factors in work-environments facilitate or constrain the professional nursing practice” (Ma & Parks, 2015, p. 566). The article evaluates the nursing factors at both the hospital and unit level associated with Hospital acquired pressure ulcers (HAPU).
The research problem and its significance
The research problem in this study is the organization’s factors or nurse work environment that negatively influence patient’s outcome, such as increasing HAPU incidence. “The unit-level work environments have major impact on the nurse work environment” (Ma & Sharks, 2015, p.65). The research problem is a focal point of research. It is well stated in this article and generates questions in which the research study aims to address (Stafford & Brower, 2012, p. 11; Suttipong & Sindhu, 2011, p. 373).
On the other hand, the significance of a study is the rationale of the study. The researcher proves to the audience that the research is vital and worth doing it. For instance, the study indicates that the need to reduce hospital acquired pressure ulcers has gained national attention. “There are approximately 2.5 million pressure ulcers that occur in the USA, and coasts $9.1-11.6 billion (Ma &Sharks, 2015, p. 65).”
The research design and methods
Melnyk & Fineout-Overholt state that research design is the overall strategy chosen by the researcher to integrate different components of the study. It should be constructed in a logical manner to ensure that the researcher effectively address the research problem using the appropriate data collection method and analysis of data. In this context, design includes the study setting, description of the study sample, data collection method and data analysis. This part describes all the instruments used and their rationale; (Melnyk & Fineout-Overholt, 2014; Lewis, 2014).
The research method is used in this article is qualitative. The research design used in this article is the Cross-sectional observational study of data collected from the National Database of Nursing Quality Indicators (NDNQI). This research design is appropriate for this study because it examines the relationship of exposure and outcome in a defined population at one point in time.
In addition, the research design is inexpensive, less time consuming and provides a good but quick picture of prevalence of the research problem and its outcome. Although appropriate for this study, the main issue with this research design lacks time element making it difficult to determine the temporal relationship between the research problem and the outcome of the proposed intervention (Ma & Sharks, 2015, p.567).
Data used in this article was collected from NDNQI. NDNQI is a repository for nursing quality data in the USA that enables the researchers to conduct comparative analysis in order to develop evidence based practices for nursing-sensitive patient practices and outcomes at unit level.
The data collected was supplemented with the NDNQI RN survey, which collected information related to nurse work conditions such as work content, environments and demographics. The total participants for RN survey was 33, 845 from 1,381 units in 373 healthcare facilities in 44 States. The inclusion criteria for this survey were nurses who had spent 50% of their time in general units in the hospital within the last three months.
The researcher also established measures to ensure reliability of the data collected, “To ensure reliability of the aggregated unit measures…… units with RN response rate below 50% were excluded from data analysis (Ma & Sharks, 2015, p.566).”
Data analysis of the collected data was compare the nurse work environments, staffing levels, HAPU rates and the RN skill mix of the NDQI member hospitals. Three multilevel logistic regression models were used to estimate the effect of nurse work environment and healthcare facilities management of HAPU. The data analysis used is appropriate for this nature of the study as it provides conclusive comparative analysis (Ma & Sharks, 2015, p.568).
Findings and their relevance to contemporary nursing policy and practice
The study examined work environments impact on management of HAPU at hospital and unit level. The study findings indicate that improving working environments both at hospital level and unit level results to lower HAPU rates. The data findings presentation in this article is concise and appropriately used non-textual elements such as table summaries and figures to present data findings effectively. The data provided is critical in answering the research question. For instance, Magnet hospital units had 21% low odds of having HAPU as compared to the non-magnet hospital.
There are several limitations noted in this study. To start with, participation of hospitals in NDNQI is voluntary, which indicates overrepresentation or underrepresentation of hospitals with certain characteristics. Secondly, the study omitted some specific information such as ethnicity, socioeconomic status and other co-morbidities that could introduce residual confounding effects. In addition, patient level information in most of quality indicators is limited.
Despite the limitations, the study findings are consistent with the previous studies. The nursing implication of this study is that it improves the understanding of work environments in relation to patient’s outcomes. In this context, the nurse work environment refers to the context in which the nurses provide patient centered care (Guihan et al., 2016, Matsuo, Oie, & Furukawa, 2013).
The quality of care is influenced by the nurse work environment characteristics such as the administrative support, nurse-physician relations and nurse resource adequacy. Effective nurse work environments are established through better communication, team work between the healthcare providers and higher autonomy/practice control.
Nurses in such types of environments are less likely to suffer from burnout or express intent to quit their jobs, but are likely to function efficiently, deliver superior quality of care that ultimately improves patient’s overall outcome (Demarre et al., 2014, p. 392; Singh et al., 2015, p.7; Neilson et al., 2014, p. 21).
Conclusion
The study findings in this study facilitate the understanding the link between organizational environments and the patient outcomes. This study highlights the effectiveness of unit-specific quality improvement initiatives in today’s highly specialized care. This study generates new ideas that will help improve patient safety and quality of care in nursing practice.
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Jaul, E. (2013). Cohort study of atypical pressure ulcers development. International Wound Journal, 11(6), 696-700. http://dx.doi.org/10.1111/iwj.12033
Jaul, E. (2014). Multidisciplinary and comprehensive approaches to optimal management of chronic pressure ulcers in the elderly. Chronic Wound Care Management And Research, 3. http://dx.doi.org/10.2147/cwcmr.s44809
Matsuo, M., Oie, S., & Furukawa, H. (2013). Contamination of blood pressure cuffs by methicillin-resistant Staphylococcus aureus and preventive measures. Irish Journal Of Medical Science, 182(4), 707-709. http://dx.doi.org/10.1007/s11845-013-0961-7
Ma, C., & Park, S. H. (2015). Hospital Magnet status, unit work environment, and pressure ulcers. Journal of Nursing Scholarship, 47(6), 565-573.
Melnyk, B., & Fineout-Overholt, E. (2014).Evidence-based practice in nursing & healthcare: A guide to best practice, 3rd Edition. Philadelphia: Wolters Kluwer/Lippincott Williams & Wilkins
Neilson, J., Avital, L., Willock, J., & Broad, N. (2014). Using a national guideline to prevent and manage pressure ulcers. Nursing Management – UK, 21(2), 18-21
Singh, R., Dhayal, R., Sehgal, P., & Rohilla, R. (2015). To Evaluate Antimicrobial Properties of Platelet Rich Plasma and Source of Colonization in Pressure Ulcers in Spinal Injury Patients. Ulcers, 2015, 1-7. http://dx.doi.org/10.1155/2015/749585
Suttipong, C., & Sindhu, S. (2011). Predicting factors of pressure ulcers in older Thai stroke patients living in urban communities. Journal Of Clinical Nursing, 21(3-4), 372-379. http://dx.doi.org/10.1111/j.1365-2702.2011.03889.x
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The concept of recovery oriented practice has increasingly become a prominent concept in mental health policy internationally. This notion originated from consumer perspectives that challenged traditional beliefs about course of mental health disorders and the effective treatment strategies, and it has become widely conceptualized that recovery oriented care is a deeply unique process that changes a person’s attitudes, feelings, values, goals and skills with the aim of improving life limitations caused by the mental illness (Doran et al., 2015). Using Janet’s case study Version 1 and Version 2, this essay expounds on the concept of recovery oriented care by focusing on recovery principles; and elaborating how mental health recovery principles differ from clinical recovery principles.
Recovery principles
Recovery principles refer to the collective approach used to respond to the mental health distress by supporting empowerment, autonomy and retention of hope. Fundamentally, the recovery principles focus on the benefit of acknowledging a person as a whole instead of defining them by their deficits or difficulties (Evans et al., 2017).
In this context, recovery is supported through the implementation of collaborative and consultative treatment strategies to people with mental health issues. These strategies place the client at the center of care and emphasize on individuals strengths to support their self determination.
The recovery principles are core to the professional standards for Australian and New Zealand mental health includes uniqueness of an individual, autonomy, rights and attitude of their carers, treating mentally ill people with dignity and respect, collaborative care enhanced through effective communication (Mental Health Commission, 2012).
Based on recovery principles, helping patients who experience mental health issues with psychotic clinical issues, such as bipolar disorder and schizophrenia, requires a range of skills and attitudes that are developed from sound knowledge foundation as well as inquisitive approach. The core recovery principle in this group of attributes is the ability to establish a respectful support and collaborative relationship (therapeutic alliance) with the client, their relatives, friends and their loved ones (Slade et al., 2014).
The main challenge for clinical practice during the recovery paradigm is the capacity to remain responsive to the patient’s change and family/loved ones concerns. However, this is vital because client’s capacity to exercise autonomy during decision making may fluctuate over time. For instance, the client may change their desired treatment approach frequently or the client’s family may hold different opinions about the best treatment.
Therefore, the recovery principles enable the provider to develop the capacity to ‘be with’ instead of insisting on the standard clinical practice. For instance, in Janet’s Case study Version 2, “the psychiatrist was happy to reduce drugs after 10 days when Janet told her how horrible they were” (O’Hagan, 2014, p.227).
From this analysis, the healthcare provider should understand their own feelings and values to this practice. This is because their personal ethical beliefs and values could make them to inadvertently exhibit judgmental behaviors which could compromise care. The mental health care providers should perform rigorous and regular clinical supervision so as to retain clarity in nursing practice (Evans, Nizette, & O’Brien, 2017).
Clinical supervision is one of the recovery principle recognized as professional standard for Australian as well and New Zealand mental health nurses. In addition, it is evident that recovery principles are based on reflective care that is not influenced by the individual’s personal values or ethics. These principles emphasize on self determination and collaborative partnership.
For instance, in Janet’s case study version 2,Through collaborative treatment approaches, Janet was able to overcome the sexual abuse trauma; she is better, and now works as a mental health nurse, where she uses her experience to guide other mentally ill patient (O’Hagan, 2017, p.228).
The difference between recovery principles and clinical recovery
Recovery can be viewed through different lenses – personal experience (set of workforce competencies/practices) or clinical recovery process. This personal recovery approach is viewed as the post institutional service philosophy because it challenges the bedrock of traditional mental health system (Barder, 2012).
Clinical recovery is a concept that emerged from the expertise of mental health care providers, and it entails treating of psychosocial symptoms so as to restore functioning or to bring back the patient’s life back to normal. Recovery principle differs in clinical recovery in that the concept emerged from expertise of people who have lived the experienced or mental illness (Hapell et al., 2013).
On the other hand, recovery principle dwells on a deep unique change of a person’s values, attitudes and feelings with the aim of living a satisfactory life within the daily life limitations associated with the illness. It is basically creating a new purpose and meaning in client’s life as she or he grows beyond the catastrophic event associated with the mental illness (Williams et al., 2012).
As depicted in Janet case study Version 1, the traditional healthcare system perceives mental illness with no legitimacy. Most clients experience major mental health issues as frightening, desolate and also destructive. This is because the pain in mentally ill clients is at par with grief and torture of surviving a battle field or that of being accused of heinous crime (Leah, 2012).
The only difference is that the latter experiences have legitimacy and the society has a well defined pathway for their justice and recovery; and surviving them is perceived as heroic and is admirable. On the other hand, mental health is met with fear, reproach and pity.
Unlike clinical recovery, recovery principles recognize the importance of person recovery in that mental illness is perceived as a full human experience; therefore, it does not support justification for segregation, cruelty and coercion. A society that has person recovery mind concepts has place for people with mental health illness because seeks to provide a better pathway to better life (O’Hagan, 2014).
Another aspect of clinical recovery that acts as bedrock of the unfortunate traditional belief is community’s abdication of responsibility for the mentally ill people to the profession and services. In the current society, people seek answers to human problems from state- authorized profession institutions.
Although to some extent this has been of benefit, it is associated with overdependence of deficit oriented institutions and professionals. Their reputed monopoly on expertise has disabled the mentally ill clients by keeping the stuck in the healthcare services as indicated by Janet’s case study version 1, “the mental health system is responsible for the Janet’s terrible state (O’Hagan, 2014, p. 224).
The devaluation of mental illness in conjunction with community abdication has is associated with naïve community consensus around client’s safety, which is based on discriminative assumption that mentally ill people are not responsible of their behavior, and that the mental health institutions and services must take responsibility of their behavior through tightly controlled approaches (Gilburt et al., 2013).
The clinical recovery approach develops unsustainable assumptions that mentally ill persons must be controlled like robots; they lack freewill and those mental health institutions and professionals have magical powers to predict and that the strict measures towards the mentally ill people is meant to establish a safer community.
Unfortunately, the unrealistic demands have led to increase in risk adverse practices such as liberty restrictions, locked doors and compulsory treatment just as those experienced by Janet Version 1 case study (Berglund, 2012; Ivey et al., 2012).
Clinical recovery is important, but focusing on clinical recovery alone makes the patient to feel defined by their mental health problem, thereby exacerbating the problem. This approach also makes a person to neglect other aspects of lives that could be cultivated and potentially lead to improved wellbeing (Evans & Brown, 2012).
Most of the clinicians identify mental illness experiences such as hearing voices a focus of clinical recovery, which not only make it problematic, but also leads to waste or resources in order to get rid of personal idiosyncrasies that otherwise would be the patient’s assets if well understood and work with using the best approaches possible.
On the contrary, the recovery principles of the mental health service seek to design treatment strategies for mental illness is that does not only keeping people out of acute crisis so that they can lessen their dependency and burden to the community. The strategies contemplate the possibility of holistic recovery instead of focusing on clinical issues only, which in most cases could be resolved (Le Boutillier et al., 2015).
Conclusion
Mentally ill people are human beings too; they have rights as other citizens and must be allowed to participate in their local communities. To ensure that the mentally ill patients are socially included in the community’s daily life, the society and mental health professions will be required to change their traditional beliefs and unfortunate assumptions about mental health. In this context, the final frontier is eradicating the barriers that prevent people from experiencing their entitlements as the other citizens.
This involves transformation of “treat clinical symptoms- and recover” world view. In addition, the mental health systems should give priorities to treatments strategies that help the mentally ill patient to continue re-engaging with their life. However, the most important and the broadest challenge is the societal change.
This implies that the mental health professionals should collaborate with people with lived experienced of mental illness to become partners and social activists who challenge the erroneous stigmatizing assumptions associated with mentally ill people which prohibits them from enjoying the same citizenship entitlements as other people in the community.
Berglund, C. A. (2012). Enter the patient. In C. A. Berglund (Ed.), Ethics for health care (4th ed.) (pp.71-97). South Melbourne, Vic: Oxford University Press
Doran, E., Fleming, J., Jordens, C., Stewart, C. L., Letts, J., & Kerridge, I. H. (2015). Managing ethical issues in patient care and the need for clinical ethics support. Australian Health Review, 39(1), 44-50. doi: 10.1071/AH14034
Evans, K., Nizette, D. & O’Brien, A. (2017). Psychiatric and mental health nursing (4th ed.). Chatswood, NSW: Elsevier Australia.
Edwards, K-L., Munro, I., Welch, A. & Robins, A. (2014) Mental Health Nursing: Dimensions of Praxis. (2nd ed) South Melbourne: Oxford University Press.
Evans, J., & Brown, P. (2012). Videbeck’s Mental Health Nursing. Sydney: Lippincott Williams & Wilkins.
Gilburt, H., Slade, M., Bird, V., Oduola, S., & Craig, T. K. (2013). Promoting recovery-oriented practice in mental health services: a quasi-experimental mixed-methods study. BMC psychiatry, 13(1), 167.
Happell, B., Cowin, L., Roper, C. & Lakeman, R. & Cox, L. (2013). Introducing mental health nursing: A service user-orientated approach (2nd Ed). Crow’s Nest, NSW: Allen & Unwin.
Ivey, A., Ivey, M. & Zalaquett, C. with Quirk, K., (2012) Essentials of intentional interviewing: Counselling in a multicultural world (3rd ed). Belmont, USA:Brooks/Cole Cengage Learning.
Jones, K., & Creedy, D. (2012). Health and human behaviour (3rd ed.). South Melbourne, Vic: Oxford University Press.
Leahy, R. (2012) (Ed). Treatment plans and interventions for depression and anxiety disorders (2nd ed). New York; London: Guilford Press
Le Boutillier, C., Chevalier, A., Lawrence, V., Leamy, M., Bird, V. J., Macpherson, R., … & Slade, M. (2015). Staff understanding of recovery-orientated mental health practice: a systematic review and narrative synthesis. Implementation Science, 10(1), 87.
Mental Health Commission. (2012). Blueprint II: Improving mental health and wellbeing for all New Zealanders: How things need to be. Wellington: Mental Health Commission, 52.
O’Hagan, M. (2014). Madness made me: a memoir. New Zealand: Open Box/Potton & Burton.
Slade, M., Amering, M., Farkas, M., Hamilton, B., O’Hagan, M., Panther, G., Perkins, R., Shepherd, G., Tse, S. and Whitley, R. (2014), Uses and abuses of recovery: implementing recovery-oriented practices in mental health systems. World Psychiatry, 13: 12–20. doi:10.1002/wps.20084
Williams, J., Leamy, M., Bird, V., Harding, C., Larsen, J., Le Boutillier, C., … & Slade, M. (2012). Measures of the recovery orientation of mental health services: systematic review. Social psychiatry and psychiatric epidemiology, 47(11), 1827-1835.
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The international agencies and national nursing associations acknowledge the fact that unhealthy working conditions affect the quality of care, employee’s health, and are associated with nurse sensitive patient outcomes. In their article “Hospital magnet status, unit work environment and pressure ulcers,” Ma and Park explored the relationship between the RN environment nurse outcomes (job satisfaction, turnover rates and intent to stay) and patient safety outcomes (pressure ulcers, falls, and quality of care).
The article suggests that the hospital administration and nurse leaders should understand the importance of nurse work environments, as it sets the stage for quality care and provides competitive advantage in current’s value driven healthcare system (Ma &Park, 2015).
This essay is a critical analysis of Ma & Park article’s that aims to assess if the information improves nursing practice, increases nursing knowledge and understanding on patient safety. The main topics that will be critically analyzed include the article’s research design, data collection, data analysis, findings, discussion and nursing implication.
The research problem and its significance
Creswell states that a study’s research problem should be described using an approach that orientates the reader to the research subject (Creswell, 2014; Jaul, 2014). The article states that better nurse work environments are associated with lower hospital acquired pressure ulcers. Pressure ulcers are critical patient issue because they are associated with prolonged hospital stays, increases patient risks for adverse events and increased consumption of the healthcare costs (Cai, Rahman, & Intrator, 2013; Buttaro et al., 2013, p. 304).
The research problem in this study is the organization’s factors or nurse work environment that negatively influence patient’s outcome, such as increasing HAPU incidence. “The unit-level work environments have major impact on the nurse work environment” (Ma & Sharks, 2015, p.65). The research problem is a focal point of research. It is well stated in this article and generates questions in which the research study aims to address (Stafford & Brower, 2012, p. 11; Suttipong & Sindhu, 2011, p. 373).
The study hypothesizes that nurses play crucial role in preventing pressure ulcers. However, the degree of patient safety is determined by the nurse work place environment, “The organizational factors in work-environments facilitate or constrain the professional nursing practice” (Ma & Parks, 2015, p. 566). The article evaluates the nursing factors at both the hospital and unit level associated with Hospital acquired pressure ulcers (HAPU).
On the other hand, the significance of a study is the rationale of the study. The researcher proves to the audience that the research is vital and worth doing it. For instance, the study indicates that the need to reduce hospital acquired pressure ulcers has gained national attention. “There are approximately 2.5 million pressure ulcers that occur in the USA, and coasts $9.1-11.6 billion (Ma &Sharks, 2015, p. 65).”
The research design and methods
Richardson-Tench and colleagues state that research design is the overall strategy chosen by the researcher to integrate different components of the study. It should be constructed in a logical manner to ensure that the researcher effectively address the research problem using the appropriate data collection and analysis approach (Melnyk & Fineout-Overholt, 2014; Richardson-Tench et al., 2014).
The research method is used in this article is qualitative. The research design used in this article is the Cross-sectional observational study of data collected from the National Database of Nursing Quality Indicators (NDNQI). This research design is appropriate for this study because it examines the relationship of exposure and outcome in a defined population at one point in time.
In addition, the research design is inexpensive, less time consuming and provides a good but quick picture of prevalence of the research problem and its outcome. Although appropriate for this study, the main issue with this research design lacks time element making it difficult to determine the temporal relationship between the research problem and the outcome of the proposed intervention (Ma & Sharks, 2015, p.567).
Data used in this article was collected from NDNQI. The data collected was supplemented with the NDNQI RN survey. The total participants for RN survey was 33, 845 from 1,381 units in 373 healthcare facilities in 44 States. The inclusion criteria for this survey were nurses who had spent 50% of their time in general units in the hospital within the last three months. The researcher also established measures to ensure reliability of the data collected (Ma & Sharks, 2015, p.566).
Data analysis of the collected data was analyzed using t tests to compare the nurse work environments, staffing levels, HAPU rates and the RN skill mix of the NDQI member hospitals. Three multilevel logistic regression models were used to estimate the effect of nurse work environment and healthcare facilities management of HAPU. The data analysis used is appropriate for this nature of the study as it provides conclusive comparative analysis (Ma & Sharks, 2015, p.568).
Findings and their relevance to contemporary nursing policy and practice
The study findings indicate that improving working environments both at hospital level and unit level results to lower HAPU rates. The data findings presentation in this article is concise and appropriately used non-textual elements such as table summaries and figures to present data findings effectively. The data provided is critical in answering the research question. For instance, Magnet hospital units had 21% low odds of having HAPU as compared to the non-magnet hospital.
There are several limitations noted in this study. To start with, participation of hospitals in NDNQI is voluntary, which indicates overrepresentation or underrepresentation of hospitals with certain characteristics. Secondly, the study omitted some specific information such as ethnicity, socioeconomic status and other co-morbidities that could introduce residual confounding effects. In addition, patient level information in most of quality indicators is limited.
Despite the limitations, the study findings are consistent with the previous studies that better nurse work environments is associated with lower hospital acquired pressure ulcers, lower readmission rated and a higher overall rating. The nursing implication of this study is that it improves the understanding of work environments in relation to patient’s outcomes (Guihan et al., 2016, Matsuo, Oie, & Furukawa, 2013).
The quality of care is influenced by the nurse work environment characteristics such as the administrative support, nurse-physician relations and nurse resource adequacy. Effective nurse work environments are established through better communication, team work between the healthcare providers and higher autonomy/practice control.
Nurses in such types of environments are less likely to suffer from burnout or express intent to quit their jobs, but are likely to function efficiently, deliver superior quality of care that ultimately improves patient’s overall outcome (Demarre et al., 2014, p. 392; Singh et al., 2015, p.7; Neilson et al., 2014, p. 21).
Conclusion
Critical appraisal is important process as if facilitates a thorough understanding of the research study in order to establish the study strengths and weaknesses and to evaluate the quality, and if the study’s strength is effective and appropriate for its use in the reader’s practice. This study generates new ideas that will help improve the quality of care and patient safety and quality of care in nursing practice. The study findings in this study facilitate the understanding the link between organizational environments and the patient outcomes. This study highlights the effectiveness of unit-specific quality improvement initiatives in today’s highly specialized care.
References
Buttaro, T. M., Trybulski, J., Polgar Bailey, P., & Sandberg-Cook, J. (2013). Primary care: A collaborative practice (4th ed.). St. Louis, MO: Mosby.
Creswell, J. W. (2014). A concise introduction to mixed methods research. Sage Publications.
Demarre, L., Verhaeghe, S., Van Hecke, A., Clays, E., Grypdonck, M., & Beeckman, D. (2014). Factors predicting the development of pressure ulcers in an at-risk population who receive standardized preventive care: secondary analyses of a multicentre randomised controlled trial. J Adv Nurs, 71(2), 391-403. http://dx.doi.org/10.1111/jan.12497
Guihan, M., Murphy, D., Rogers, T., Parachuri, R., SAE Richardson, M., Lee, K., & Bates-Jensen, B. (2016). Documentation of preventive care for pressure ulcers initiated during annual evaluations in SCI. The Journal Of Spinal Cord Medicine, 160204031040002. http://dx.doi.org/10.1080/10790268.2015.1114225
Jaul, E. (2014). Multidisciplinary and comprehensive approaches to optimal management of chronic pressure ulcers in the elderly. Chronic Wound Care Management And Research, 3. http://dx.doi.org/10.2147/cwcmr.s44809
Matsuo, M., Oie, S., & Furukawa, H. (2013). Contamination of blood pressure cuffs by methicillin-resistant Staphylococcus aureus and preventive measures. Irish Journal Of Medical Science, 182(4), 707-709. http://dx.doi.org/10.1007/s11845-013-0961-7
Ma, C., & Park, S. H. (2015). Hospital Magnet status, unit work environment, and pressure ulcers. Journal of Nursing Scholarship, 47(6), 565-573.
Melnyk, B., & Fineout-Overholt, E. (2014).Evidence-based practice in nursing & healthcare: A guide to best practice, 3rd Edition. Philadelphia: Wolters Kluwer/Lippincott Williams & Wilkins
Neilson, J., Avital, L., Willock, J., & Broad, N. (2014). Using a national guideline to prevent and manage pressure ulcers. Nursing Management – UK, 21(2), 18-21
Richardson-Tench, M., Taylor, B., Kermode, S., & Roberts, K. (2014). Research in nursing: Evidence for best practice (5th ed.). Cengage Learning Australia: South Melbourne.
Singh, R., Dhayal, R., Sehgal, P., & Rohilla, R. (2015). To Evaluate Antimicrobial Properties of Platelet Rich Plasma and Source of Colonization in Pressure Ulcers in Spinal Injury Patients. Ulcers, 2015, 1-7. http://dx.doi.org/10.1155/2015/749585
Suttipong, C., & Sindhu, S. (2011). Predicting factors of pressure ulcers in older Thai stroke patients living in urban communities. Journal Of Clinical Nursing, 21(3-4), 372-379. http://dx.doi.org/10.1111/j.1365-2702.2011.03889.x
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The Influence of Leadership Style on Employee Satisfaction and Productivity
1.0 Introduction
In this research study, the researcher seeks to find out how various leadership style influence the productivity and satisfaction of workers in the banking sector in the United States. My background/inspiration/motivation for the proposed research comes from the fact that I have previously worked in an organization in which the top leaders and managers did not recognize the effect of various leadership styles on employees’ satisfaction and productivity.
The employees were never inspired. They were also never motivated to carry out their job tasks very well. Therefore, the level of job performance of employees was frequently low. They were often dissatisfied and had low productivity. The research project is potentially important as it will help leaders and managers in organizations to adopt suitable styles of leadership that could help improve the satisfaction as well as productivity of their employees.
Most companies and organizations comprise employees and employers, or in other words, staff members and management or followers and leaders. Many leaders are goal-oriented (Ispas, 2012). To attain the desired goals, there has to be an interaction between followers and leaders or staff members and management, or employees and employers. The style of leadership that typifies the interaction between managers/leaders and their staffs/followers is most significant in terms of the productivity, efficiency and satisfaction of employees (Emery & Barker, 2012).
My work-based context which has led me to examine this topic is that while working in the company, I realized that as the workforce of the business organization, employees perform various duties needed to attain the company’s objectives and goals. I also realized that the satisfaction of employees is impacted by their view of their jobs and the company for which they are working for.
How employees perceive leadership behaviour is a vital predictor of employee job commitment and satisfaction. It is worth mentioning that how employees perceive the leadership behaviour of their leaders/managers is also related to their job attitudes and productivity (Mustafa & Lines, 2013). Styles of leadership could either discourage or motivate workers, which could consequently result in employees’ decrease or increase in their performance level.
Some of the sources of employees’ job dissatisfaction include absence of promotion prospects, insufficient compensation, and conflicting job demands from the leadership. For purposes of efficiency, an effective style of leadership is one which has a positive effect on the satisfaction of employees and leads to better job performance, productivity and effectiveness (Wong & Laschinger, 2013).
The functional areas of business that I am drawing upon include employee productivity and job satisfaction. Employee satisfaction is understood as how employees in an organization feel about their jobs and the various facets of their jobs (Keskes, 2014). The seminal literature that I would use to illustrate the academic underpinning of the research includes various peer-reviewed. Over twelve journal articles would be examined in the literature review section of this research paper.
When the company’s leaders and managers adopt suitable leadership styles such as transformational leadership, the leaders would be able to inspire and motivate employees who will be able to feel satisfied with their jobs. In turn, these employees would improve their job performance and work productivity which is good for the company’s financial bottom line (Li-Fen & Chun-Chieh, 2013).
Based on the findings of the study, implications for organizations would be described which would include a discussion on the most important leadership styles that comprise leadership behaviours that could really improve employee job satisfaction and productivity. Organizations with poor and ineffective leadership styles would have to alter their leadership approaches if they are to improve employee satisfaction and productivity.
The research would be really innovative since although existing published research would be utilized, they would be utilized within a dissimilar setting. At the moment, there is gap in the existing literature. No earlier research studies have looked into the influence of leadership style on the productivity and satisfaction of employees in various organizations in the United States.
Most previous studies that have explored this topic have focused on the impact of leadership styles on employees’ work performance in the context of organizations in Asia and not in America. As such, the study would fill this gap in literature by examining the topic in the context of companies in America.
2.0 Aims and objectives
Aim: the overall aim of this study is to delve how different styles of leadership influence the productivity and satisfaction of employees.
Objectives:
How does transformational leadership style influence employee job satisfaction and productivity?
How does transactional leadership style influence employee job satisfaction and productivity?
How does laissez-faire leadership style influence employee job satisfaction and productivity?
Which of these three leadership styles best influences employee job satisfaction and productivity?
The formulated research aim and objectives are appropriate for this study since they would help to determine how leadership styles actually affect employee productivity and satisfaction. They would also help to determine the best leadership style that company leaders and managers can adopt in order to effectively improve the job satisfaction and productivity of workers.
3.0 Identification and initial review of key literature
According to Deshpande and Hill (2015), leadership is understood as the process of influence on the subordinates, where the subordinates are inspired to attain the specified target. Another scholar, Yi-Feng (2014) noted that leadership is the process in which a person, a leader in this case, influences a grouping of people to attain a common objective.
McClean, Burris and Detert (2013) stated that leadership means using a leading strategy to offer inspiring motives and to improve the workers’ potential for development and growth. All in all, leadership refers to the process of influence between subordinates and leaders in which the leader influences the behaviour of the subordinate to attain the goals and objectives of the organization (Abualrub & Alghamdi, 2012).
The success of an organization in attaining its specified objectives and goals is contingent on the company’s top leaders and the styles of leadership they use. When suitable styles of leadership are adopted, the leader can affect employees’ commitment, satisfaction, and productivity on the job (Jamaludin et al., 2011). A leader plays a vital role in the accomplishment of a company’s objectives through creating a climate which influences the behaviour, motivation and attitudes of employees.
Employee productivity is crucial to a company’s bottom line. To perform better and improve their level of productivity, workers need to have the proper working conditions. Ahmad et al. (2013) stated that proper working conditions encourage staff members to put up the right behaviour or attitudes to their work. Employee job and organizational commitment relates positively to job satisfaction, organizational career support and supervisory support. Workers who find that their companies positively evaluate their job performance have a high likelihood of exhibiting a high job satisfaction level.
Employee satisfaction, as Wong and Laschinger (2013) pointed out, is how staff members feel about their work duties and the various facets of their work tasks. Employee satisfaction is a vital concern in all business organizations given that it is focused on utilitarian as well as humanitarian perspectives. Employees, as per the humanitarian perspective, should be treated respectfully and fairly.
As per the utilitarian view, employee job satisfaction could result in employee behaviours which affect organizational performance and functioning (Quintana, Park & Cabrera, 2015). Factors such as working conditions, company policy and administration, salary, supervision, personal life and security, relationship with other workers, the work itself, responsibility attainment, and recognition affect employee satisfaction with the job.
3.1 Leadership styles
This research study is focused on three styles of leadership: transformational, transactional, and laissez-faire. Transformational leadership: this style of leadership motivates the followers through appealing to higher moral values and ideals which could inspire the staff members to carry out their work tasks exceeding expectations and transform both organizations and individuals (Keskes, 2014). A transformational leader emphasizes the follower’s personal development and intrinsic motivation.
This leader seeks to align the needs and aspirations of the follower with the company’s desired outcomes. By this means, this leader is able to foster commitment of the followers to the company and inspire the followers to go beyond their anticipated job performance and productivity (Jackson, Alberti & Snipes, 2014). As regards the dynamic business environment and complex organizations of today, a transformational leader is mainly considered a perfect change agent with the ability to lead his/her followers during periods of high risk-taking and uncertainties.
The transformational leader’s main objective is basically to work to transform or change the needs of the follower and redirect their thinking. This leader inspires and challenges his/her followers with a sense of excitement and purpose (Ispas, 2012). The leader with this style of leadership exhibits the following characteristics: intellectual stimulation, individualized consideration, and charismatic leadership.
Transactional leadership: this leadership style is founded on bureaucratic authority as well as legitimacy in the organization. Transactional style of leadership gives emphasis to task-oriented goals, assignments and work standards. It is focused on employee compliance and task completion and is dependent on organizational punishments and rewards to influence the performance of employees (Emery & Barker, 2012).
A transactional leader gains legitimacy by using promises, praises and rewards which would satisfy the immediate needs of the followers. This leader engages his/her followers through giving rewards in exchange for the attainment of the set objectives and goals. All in all, a transactional leader focuses her leadership on motivating her followers using a system of punishments and rewards.
Ispas (2012) noted that a transactional leader focuses on improving the effectiveness of the established procedures and routines. Such a leader is more concerned with sticking to the current rules than with making alterations to the company. Transactional leaders establish and standardize practices that would help the company attain the following: increasing productivity, efficiency of operations, goal-setting, and maturity (Techoresh et al., 2014).
Laissez-faire leadership: this is typified by a general or total failure to take managing responsibilities. With this style, the leader fully gives the employees all the power and rights to make decisions. It allows the followers to have total freedom in making decisions with regard to performing their job (Jamaludin et al., 2011).
Laissez-faire leadership style gives the followers independence but the leader provides support and guidance whenever requested. In essence, the leader who adopts this style of leadership gives his/her follows all the necessary materials to carry out their objectives and goals. Even so, the leader does not take part directly in making decisions unless the followers ask for his help (Quintana, Park & Cabrera, 2015).
In most organizations, the effectiveness of an organization is very much contingent on the style of leadership used by its leaders. A leader and his/her style of leadership plays a vital role in the success of a company. The adopted style of leadership has a major effect on employee satisfaction on the job as well as job performance. Employees who have higher job satisfaction tend to have greater job commitment and job productivity (Belnio, 2011). All things considered, organizations require strong leadership styles which stimulate the productivity and performance of employees.
3.2 Conceptual framework
Deshpande and Hill (2015) pointed out that the style of leadership adopted by leaders in an organization is of great importance in influencing the job satisfaction of workers. Quite a few researchers have learned that dissimilar styles of leadership would engender dissimilar working environment and affect employees’ work satisfaction directly (Keskes, 2014; Jackson, Alberti & Snipes, 2014). Mustafa and Lines (2013) observed that the transformational leadership style may intrinsically promote more work satisfaction largely because of its capacity to impart a sense of intellectual stimulation and mission.
A transformational leader tends to motivate and encourage her followers to assume more autonomy and responsibility, which in turn enhances the workers’ sense of achievement as well as job satisfaction (Emery & Barker, 2012). Transformational and transactional leadership styles have been extensively associated with organizational and individual consequences. Both these styles of leadership have a positive correlation with employees’ perception of work, organizational satisfaction, and leader.
Abualrub and Alghamdi (2012) stated that workers are by and large most satisfied whenever they view their supervisors as individuals who exhibit task-oriented and relational behaviours. In his study, Belonio (2011) found that different styles of leadership including laissez-faire, transactional and transformational styles affect different facets of employee satisfaction with their jobs. This researcher also noted that a mix of the different styles of leadership would result in more job satisfaction and improve productivity and performance of employees (Belonio, 2011).
In their study, Ahmad et al (2013) found strong correlations between employee satisfaction and transformational style of leadership compared to transactional style of leadership. These researchers also found a dissimilar facet between transactional and transformational styles of leadership on employee work satisfaction. According to Ahmad et al (2013), transformational leadership style had higher ratio and beta which demonstrated greater influence on employee work satisfaction than transactional style.
In another study, Li-Fen and Chun-Chieh (2013) discovered that both transactional and transformational styles of leadership had an effect on employees’ work performance, although the transformational style had higher leadership outcome than transactional style. The laissez-fair style has been shown to have a noteworthy effect on total employee job satisfaction (Belonio, 2011).
Transactional leaders can increase the productivity of their followers particularly when productivity of the workers is measured quantitatively and punishments or rewards are fairly given. Transformational leadership results in the process of transforming the workers’ value, emotion, as well as objectives for the specific performance and productivity basing upon their talent (McClean, Burris & Detert, 2013).
3.3 Research question and hypotheses
For the proposed study, the research question is as follows:
How do various styles of leadership influence employee productivity and satisfaction?
The following hypotheses are formulated basing on the conceptual framework.
Hypothesis 1
Alternative Hypothesis H1: there is a significant influence of transformational leadership on employee satisfaction and productivity.
Null Hypothesis H0: there is an insignificant influence of transformational leadership on employee satisfaction and productivity.
Hypothesis 2
Alternative Hypothesis H2: there is a significant influence of transactional leadership on employee satisfaction and productivity.
Null Hypothesis H0: there is an insignificant influence of transactional leadership on employee satisfaction and productivity.
Hypothesis 3
Alternative Hypothesis H3: there is a significant influence of laissez-faire leadership on employee satisfaction and productivity.
Null Hypothesis H0: there is an insignificant influence of laissez-faire leadership on employee satisfaction and productivity.
Quantitative research studies in general have research questions and hypotheses (Park & Park, 2016 .I will seek to test and prove that the alternate hypotheses are true.
4.0 Research approach
4.1 Research methodology: quantitative research
This is a quantitative research study. A quantitative research study is generally concerned with discovering facts regarding social phenomenon and assumes a measurable and fixed reality (Park & Park, 2016). This type of research methodology is used to explain phenomena through gathering statistical data which are then analyzed through the use of numerically based techniques.
The main sources of quantitative data include secondary data for instance company reports; observations that might either entail coding observational data to translate that data into numbers, or counting the frequency with which a certain phenomenon crops up, for instance the frequency with which a certain word is utilized in interviews; or surveys, which is reliant on several questions asked to the respondents in the same manner to many participants (Venkatesh, Brown & Bala, 2013).
The independent variables are leadership styles whereas the dependent variables include employee job satisfaction and productivity. The job satisfaction and productivity of employees are contingent on the leadership styles. A deductive approach is utilized considering that this is a quantitative study. A deductive approach, as Venkatesh, Brown and Bala (2013) pointed out, focuses on developing a hypothesis basing upon an existing theory; a deductive design tests a theory.
A research strategy is then designed to test the formulated hypotheses. Deductive implies that the researcher reasons from the particular to the general. If a certain case example or theory appears to imply a causal link or relationship, it may be true in most instances. A deductive approach will test to find out whether or not this link or relationship derived from circumstances that are more general (Barnham, 2015).
All in all, a deductive design could be explained through hypotheses, which could be derived from the theory propositions. Put simply, the deductive design focuses on deducting conclusions from propositions or premises.
There are several strengths of the quantitative research method. Some of these include the fact that a quantitative study provides data which is descriptive in nature, and quantitative research is considered as being more objective and reliable. In addition, quantitative research can effectively reduce and restructure a complex problem to a few variables, it can be used in testing hypotheses and theories, and uses statistics in generalizing a study finding (Barnham, 2015).
Furthermore, quantitative research examines associations between various variables and establishes cause and effect in very controlled circumstances. Quantitative research is also helpful in studying many people, the findings of the research are relatively independent of the investigator for instance the statistical significance, and collecting data through the use of quantitative questionnaires is relatively speedy.
It also provides accurate, numerical, quantitative data (Venkatesh, Brown & Bala, 2013). Analysis of data is moderately less time consuming since statistical software could be employed. However, quantitative data is generally less comprehensive compared to qualitative data and could overlook a desired response from the study subject.
4.2 Research design: quantitative case study
A case study is understood as a detailed study of a certain situation instead of a comprehensive survey (Venkatesh, Brown & Bala, 2013). A case study design would be used in which the researcher will focus on three cases of three different companies based in California. Quantitative questionnaires would be utilized in data collection. The data collected would be in numerical form that could be easily put into categories, measured in units of measurement, or put in rank order.
The questionnaire surveys would have closed-ended questions and rating scales that would produce quantitative data. The data would be utilized in constructing tables and graphs or raw data (Venkatesh, Brown & Bala, 2013). In this study, the subjects include employees in three different organizations that are based in California. As such, the data would be collected in 3 companies.
The questionnaire surveys would be sent to the participants through email to fill. After completing the questionnaires, the respondents would send back the completed questionnaires for data analysis. For this study, the sample comprises employees from three companies in the banking sector. The companies are in San Diego, California where the study will be carried out. A total of 60 participants would be selected for the study.
The type of sampling method that will be utilized by the researcher in the proposed study is purposive sampling. In essence, this is the premeditated selection of the informants on account of certain characteristics or traits that they possess (Guarte & Barrios, 2011). Using purposive sampling method, staff members in 3 different companies in the financial/banking sector would be picked to take part in the research as study subjects. The 3 companies are all located within one state; California, although they have branches in other states also.
These participants would be picked by the researcher since they are working in an organization in which specific leadership styles which the researcher is interested in are practiced; hence they are well positioned to give crucial information as regards to how various styles of leadership as used by their leaders influence their satisfaction as well as productivity.
The researcher would address ethical issues through the use of informed consent, confidentiality and anonymity. Through informed consent, the study subjects will get to understand that they are participating in the study. They will also get to understand what the research is requiring of them. The information in the informed consent would include the following: the study’s purpose, methods to be utilized, likely outcomes of the study, in addition to any related risks, inconveniences, discomforts, and demands which the study subjects might encounter.
The confidentiality and anonymity of the study subjects would also be protected. To protect confidentiality, the data would be treated confidentially in terms data storage, data analysis and publication. The private and sensitive information of the study subjects such as names and address would be held in confidence. Any identifiable information would not be divulged to third parties. By removing the name of the participants and any identifiable information, their anonymity would be protected.
4.3 Data analysis: Analysis of Variance (ANOVA)
Since this would be a quantitative study, quantitative data analysis would be performed on the collected data. In particular, the information would be analyzed through statistical inferences and numerical comparisons. The data would be reported through statistical analyses.
Since there are quite a few dependent variables, the researcher will utilize Multivariate ANOVA or MANOVA quantitative data analysis tool in analyzing the influence of various styles of leadership on the productivity and job satisfaction of employees. Besides the use of MANOVA in the analysis of data, graphs would also be utilized to display the collected data through tests of correlations between 2 items, to statistical significance.
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