Leisure Tourism in Nepal

Leisure Tourism in Nepal Introduction The United Nations World Tourism Organisation, (UNWTO), undoubtedly the most influential international tourism organisation, describes tourists as â€Å"people who travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited†. (Richards Hall, 2000, P 36) Whilst this rather complex interpretation does not do justice to itinerant and obsessive travellers, or to the thousands of young westerners who live for months on the beaches and mountain resorts of alien countries, it effectively narrows down tourism to a short or medium term self funded leisure activity in foreign, unknown, strange or unfamiliar environs. Sharpley’s definition of tourism as a phenomenon of modern society, (1994) whilst being apt with regard to timeline, does not also do justice to this seething and volatile activity, the largest and possibly the most complex organised process in today’s world. Tourism is widely known to be not just the world’s largest business but also its principal employer. It accounts for practically 8 % of global GDP and continues to grow at a clip of 4 %, despite its massive base. (Richards Hall, 2000) Millions of people all over the world, from the largest metropolises to the remotest hamlets, depend upon tourism for their livelihood, opening up their countries and towns to enable people from other countries and cultures to come and gain touristic experiences. Tourism, since the inception of the concept, has primarily been associated with the desires of affluent citizens of advanced nations to go out of their ordinary places of residence for experiential activities that provide emotional and physical satisfaction. (Richards Hall, 2000) Even though tourism has constantly been viewed as a self indulgent activity, its phenomenal increase and adoption by all affluent societies has led to the creation of a multi billion dollar octopus like activity; one with numerous tentacles in different activities and places. (Richards Hall, 2000) Leisure tourism has witnessed a dramatic upsurge in the last few decades, driven by (a) steadily increasing incomes and discretionary spending powers in the advanced and industrialising nations, (b) cheaper air travel, (c) strong western currencies, (d) globalisation, (e) the emergence and consolidation of a unipolar world, and (f) the opening up of numerous tourism destinations and experiences. (Mowforth Munt, 2003) As such, whilst tourism has expanded phenomenally in recent years, the reasons for this phenomenon possibly lie in a number of modern day happenings that have come together for the expression of latent but previously existing desires. The fact that a modern day occurrence, can, in a matter of decades become the world’s largest activity also belies any simple definition or explanation. (Mowforth Munt, 2003) The complexity of tourism can be gauged from the number of activities and businesses it encompasses, including, among other things, different modes of transport, varieties of accommodation, choices of cuisines and eating ambiences, range of activities, and innumerable players. Touristic pursuits are now becoming segmented into different areas like culinary, cultural, historical, health, wildlife, sex, and outdoor adventure activities. (Richards Hall, 2000) Out door adventure pursuits are again further subdivided into a plethora of activities like trekking, mountaineering, mountain and flat land cycling, para-gliding, and white water rafting. (Richards Hall, 2000) Driven by changing lifestyles, these activities are becoming increasingly popular with more and more people wishing to experience more rewarding leisure experiences. (Richards Hall, 2000) Countries with natural resources conducive to outdoor sports have naturally started leveraging their resources to take advantage of this upsurge in interest. Australia and New Zealand, for example, have taken adventure tourism to new levels by building facilities and infrastructure that not only showcase the country’s natural beauty but allow visitors to participate safely in a range of outdoor activities. (Mowforth Munt, 2003) Whilst these countries have been able to exploit their resources successfully, other nations, equally rich in natural beauty, have been unable to fulfil or even come near their potential in attracting leisure or adventure tourism traffic. Nepal, a nation state tucked away in the Himalayas between China and India is a land of unimaginable beauty, grandeur, and ruggedness, and is ideal for leisure and adventure tourism. The country has attracted considerable leisure tourism interest from Europe and the UK and a number of British tourism companies have tried to set up operations in the state, especially in areas relating to white water rafting, mountaineering, and adventure trekking. Whilst disturbed political conditions during the last few years had led to a significant decrease in tourist arrivals, recent developments involving the formation and installation of a democratic government have now resulted in more stable conditions and an upsurge in tourism interest. (Basu Riaz, 2007) This assignment deals with Nepal’s attractiveness as a White Water Rafting and Leisure Tourism destination, its current position as a tourist attraction, and the various initiatives that need to be taken at the private and public level to attract visitors and promote tourism on a sustainable basis. Commentary and Analysis White Water Rafting Rafting is widely accepted by historians to be one of the most primitive modes of water transportation. The activity evolved thousands of years ago when humans started using water currents for transportation by roping wooden logs into platforms for floating downstream. Rafts have changed little over the centuries and even today represent small flat bottomed floating vessels without engines or sails, dependent fully upon water currents and oars for forward propulsion. (Robinson, 2004) Rafts are nowadays made of specially manufactured thick plastic or fabric. (Robinson, 2004) The material is multi layered, adequately waterproofed, and stitched or fused into inflatable multi chambered rubber vessels with flat bottoms and short sides. (Robinson, 2004) Not large in size, modern day rafts are less than 20 feet long, about 6 to 8 feet wide, and can seat a maximum of 12 people. (Robinson, 2004) Being inflatable they can be easily transported over long distances and are economical to buy and maintain. (Robinson, 2004) White water rafting (WWR) originated a couple of decades ago with the use of these rafts by pleasure seekers for rushing down swiftly flowing mountain streams. (Robinson, 2004) The turbulence of mountain streams and rivers, the feel of spray in the face, the froth, the foam, and the association with danger, combine to make rafting a thrilling and enjoyable proposition. (Robinson, 2004) WWR has gained significantly in popularity and is now available across the globe. Involving trips to distant places with the opportunity to participate in intrinsically enjoyable outdoor activity, WWR makes for an ideal group, individual and family pursuit and is open to all reasonably healthy people. (Robinson, 2004) WWR expeditions last from a few hours to days, depending upon the stretch of available water, and often incorporate outdoor camping, tent accommodation, barbecues and spits next to the river at night, and local cultural shows. â€Å"Though river rafting once was thought akin to slaying dragons, the sport has grown dramatically in the last two decades, pursued on more than 145 rivers around the country, according to David Brown, director of America Outdoors, a trade association. But trends in rafting are steering away from expeditions designed for thrill-seekers and toward family-style trips and one-day float outings† (Cooke Haggerty, 1996) Safety is obviously of paramount importance for WWR and rafters use specific gear including helmets and inflatable vests. (Robinson, 2004) Getting thrown off the raft is common during turbulent stretches and rafters are provided with detailed instructions before the commencement of trips. Extremely stormy conditions increase the risk of such occurrences as well as the chances of being swept downstream. Water stretches used for rafting are categorised in accordance with the level of danger involved, levels 1 to 3 being mild stretches ideal for beginners and levels 4 to 6 being rough and meant for experienced rafters. (Robinson, 2004) The significant increase in WWR activity over the last two decades has been attributed by social researchers to a number of factors, which include its widespread availability and manageable costs, the opportunities it provides for group and family bonding, and the growing increase in interest in outdoor activity. It is also associated with the pleasure people obtain out of escaping from urban work and life tensions, the proximity to natural beauty, ruggedness and majesty, and the adrenalin rush that comes from exciting physical activity. Rowlands (2008) feels that the popularity of the activity is due mostly to it being high on adrenalin, medium on fitness, and low on cost. Recent innovations like the designing and fitment of special seats on rafts for people who can not use their lower limbs indicate the spreading popularity of the activity. â€Å"Weve got special seats on rafts adapted for people who dont have use of their lower limbs. The seat helps to stabilise you in the raft, gives extra support and has quick-release straps so you can get out quickly if necessary. People with sight or hearing difficulties also come rafting with us its a really inclusive activity.†(Rowlands, 2008) The low cost of setting up rafting facilities (expenditure comprising largely of investment in reasonably low priced equipment, and trained instructors and guides) is also a major reason for the mushrooming of WWR activity, more so in developing nations where local entrepreneurs and nature enthusiasts are otherwise hindered by lack of capital and resources. (Robinson, 2004) Improvement in communication, greater information availability, and cheaper air travel costs have also contributed enormously to the growing popularity of WWR. Cheaper air travel has enabled tourists to travel to distant destinations even during short holidays and it is now common for Britishers, Americans, and citizens of other affluent countries to engage in intercontinental travel for tourism experiences that could last even lesser than a week. The plethora of information available over the internet has brought information about hitherto exotic and distant locations into the common realm of knowledge and the av ailability of online booking facilities for airline tickets, hotel accommodation and tourism experiences has empowered tourists to act on their own and undertake trips at short notice without the involvement of travel agents. Tourism experts feel that the interest in WWR activity is bound to increase in future, given its many appealing features and possibility of the opening up of numerous fresh locales. (Robinson, 2004) White Water Rafting in Nepal Nepal, a small Himalayan nation state currently undergoing a difficult transition from a monarchy to a democratic republic, has among the most abundant mountaineering and WRR resources in the world. Home to 8 out of the world’s highest 14mountain peaks, the country nestles in majestic mountain country. (Welcome to Nepal, 2008) It is abundantly fed by swiftly flowing rivers, covered with dense forests, and is home to an incredible range of flora and fauna. (Welcome to Nepal, 2008) Connected by air and road the country is not difficult to access and is normally reached after a stopover in a major Indian city. (Welcome to Nepal, 2008) Kathmandu, the capital of Nepal is a remarkably tourist friendly city; rich in cosmopolitanism, culinary variety, and culture, and was a major backpacker and mountaineering destination even a few years ago. Local entrepreneurs along with British and European companies have started promoting Nepal as a strong WWR destination and a number of its river s are being used for rafting trips. Appendix 1 provides details about various Nepalese rivers and the duration of WWR trips possible on each of them. Approximately 61 companies service Nepal’s tourism industry, which in turn provides employment to thousands of Nepalese citizens. (Nepal Association of Rafting Agents, 2008) Despite its enormous tourism resources and its friendly people, Nepal has in recent years been beset with large scale peace and order problems caused by agitating Maoists and other anti monarchists. (Basu Riaz, 2007) The installation of an elected government in 2006 has led to a cessation of large scale violence and whilst civil strife and unrest is yet to cease completely the situation is steadily moving towards normalcy. (Basu Riaz, 2007) Various European and North American governments still have negative travel advisories for their citizens wishing to travel to Nepal. The Canadian government, for example, advises its citizens to exercise great caution whilst visiting Nepal. â€Å"You should evaluate carefully the implications for your security and safety before deciding to travel to Nepal.Canadians in Nepal should maintain a high level of personal security awareness at all times due to the unpredictable safety situation. Following an intense period of unrest and armed conflict, the political and security situation remains fragile and volatile.† (Travel Report Nepal, 2008) Nepalese WWR providers have however started work on rebuilding awareness in Europe and the UK about facilities available for rafting on Nepalese mountain streams and rivers. The Nepalese Association of Rafting Agents has in fact recently concluded the 7th Himalayan White Water Challenge. (Nepal Association of Rafting Agents, 2008) Held in November 2007 in association with Peak UK, an English White Water and Kayaking Equipment Company, the event was designed as a multi disciplinary one boat competition that combined extreme slalom and river running skills with down river speed and free style action. (Nepal Association of Rafting Agents, 2008) Combining state of the art forms of slalom and head to head racing, the event drew 80 international and 30 local participants and turned out to be a huge success, despite the troubled state of the country and the somewhat inclement weather. (Nepal Association of Rafting Agents, 2008) Whilst the successful holding of the event should help in bring ing back WWR enthusiasts to Nepal in the coming season, much still needs to be done to make WWR and allied tourism activities in the country truly self sustaining and beneficial for the local population. Challenges and Hazards before Nepal’s WWR Tourism Activity Even as a modern and democratic Nepal tries to reengage with the global community after nearly a decade of unrest and isolation, it will need to put in extraordinary efforts to rebuild its inward tourism activity on a sustainable basis if it is to ensure protection of its environment and the passing of tourism benefits to the local population. Tourism has been the subject of endless research and discussion in recent years. Even as hoteliers, airline operators, travel agents, keepers of historical sites, designers and operators of amusement parks and other touristic activities, and the numerous other operators have striven to provide better and differentiated offerings, the industry has been criticised for sharpening income divides, creating low skill employment, causing large scale environmental degradation, generating pockets of work as well as income divides in scarcity ridden areas, and for being one of the chief causes of greenhouse emissions. (Robinson, 2004) Debate has raged over other aspects of tourism especially the impact of modernism and postmodernism on the evolution of the business. Thinkers like MacCannell, Sharpley, Ritzer and Liska have raised a number of issues about existing tourism practices, introduced postmodernist concepts, and stressed the need to bring in far reaching changes in government attitudes and public policy in dealing with the issue. Postmodern views on tourism encompass various perspectives, including the imperative need to make tourism sustainable. A major global initiative in this regard came about in 2002 when representatives of inbound and outbound tour operators, emerging entrepreneurs in the tourism industry, national parks, provincial conservation authorities, all spheres of government, tourism professionals, tourism authorities, NGOs and hotel groups and other tourism stakeholders, from 20 countries in Africa, North and South America, Europe and Asia came together in Cape Town to consider the issue of responsible tourism and agreed to a number of actions. (Responsible Tourism in Destinations, 2002) These included adoption of a number of processes that aimed at inculcating responsibility in tourism. Conference members agreed to (a) minimise negative economic, environmental, and social impacts, generate greater economic benefits for local people and enhance the well-being of host communities, (b) improve working conditions and access to the industry, (c) involve local people in decisions that affect their lives and life ch ances, (d) make positive contributions to the conservation of natural and cultural heritage, (e) maintain the worlds diversity, (f) provide more enjoyable experiences for tourists through more meaningful connections with local people, and a greater understanding of local cultural, social and environmental issues, (g) provide access for physically challenged people and (h) engender respect between tourists and hosts, and (i) build local pride and confidence. (Responsible Tourism in Destinations, 2002) WWR and associated touristic activities in Nepal have the potential of causing severe damage to the environment through large scale littering of river banks, cutting and burning of forest resource, spillage of diesel and petroleum products in rivers, destruction of local flora and fauna, and spoilage of natural habitat and biodiversity. Tourism authorities in Nepal along with local tourism operators need to ensure that increase in WWR tourism does not harm the environment and is able to bring about real benefits to the local population. Marketing of Nepal as a WWR destination WWR activities, like other touristic pursuits, are mainly concerned with optimal utilisation of leisure time and characterised by â€Å"a sense of separation from the everyday world, feelings of intense pleasure, freedom of choice, spontaneity, timelessness, fantasy, adventure and self-realization.† (Otto and Ritchie, 1996, p 54) Leisure is also associated with six conditions, namely intrinsic satisfaction, perceived freedom, involvement, arousal, mastery and spontaneity, and also characterized by two forms of risk, functional and psychosocial. (Otto and Ritchie, 1996) It contributes to strong feelings of camaraderie and mental bonding, especially when tourists take part in group activities, be they harmless sightseeing tours or riskier mountaineering or white water rafting expeditions. (Otto and Ritchie, 1996) Tourism can also be categorised in two dimensions, existential, representing satisfaction, freedom, involvement, pleasure and reward as well as structural, which deals with physical tasks and an element of external enforcement like, e.g., visits to safari parks or the undertaking of supervised hill climbing expeditions. (Otto and Ritchie, 1996) A number of tourism experiences have greater or lesser elements of risk. (Otto and Ritchie, 1996) As such, tourists subconsciously deal with a number of psychological and social issues while making a tourism choice. (Otto and Ritchie, 1996) As these perspectives are also not readily transferable to managerial activity to prompt suitable decisions, most marketers of tourism tend to focus on discrete service quality factors and tend to ignore the various psychological factors that are closely related to leisure activities. (Otto and Ritchie, 1996) Concentration only on the technical aspects of WWR and ignoring various involved emotions will lead to an inadequate understanding of the true nature of consumer satisfaction and the true extent of satisfaction with a tourism experience. It is evident that proper and holistic marketing of WWR activity for Nepal must address the total needs of the prospective traveller, which comprise not only of objective and physically quantifiable components but also of emotional and subjective parts that do not lend themselves to physical quantification, but are nevertheless important components of a total leisure experience. WWR tourism in Nepal will depend upon a complex amalgam of a number of service industries as well as on the efficiency and ability of primary service providers like Travel Agents, Tour Operators, the Airlines, and the Hotels as also local guides, leisure activity experts, transporters, restaurants and shopping infrastructures at major Nepalese cities. The political stability, the government controlling the affairs of the tourism destination, and the nodal tourism agency play very important roles in the effective marketing of a tourist destination. (Klenosky and Gitelson, 1998) A primary market audit of Nepalese tourism reveals that inward travellers mostly come in from India and whilst the majority of visitors are Indians, the country also attracts adventure tourism aficionados from the western countries and religious tourists from South East Asia. Whilst the country was experiencing increasing tourism arrivals until the late 1990s, recent years have seen a decline due to unstable political conditions. The most popular tourism destinations are Kathmandu and Pokhra, both of which are near WWR starting points. Most of the tourists who come at present are in search of mountain and jungle holidays. Nepal is situated on the Northern border of India, and many visitors nowadays prefer to engage in WWR and allied activities in the neighbouring country. A PEST analysis indicates that the country is on its way to becoming a stable and peaceful democracy. The government is committed to increasing tourism and has a tourist friendly approach. Whilst there is a local Maoist threat, terrorist activity is still absent and the country has not experienced bombings like those that occurred in London, Madrid, Bali or Bombay. Nepal is a developing nation and tourism is its largest service industry. The number of hotel beds is growing and whilst there are numerous travel agents, few are of significance. Katmandu has many WWR and car rental services as well as numerous bars, restaurants and cafes. Nepal has in the past been a Hindu kingdom and is progressing towards becoming a secular democracy. Whilst it is technologically backward it has enormous natural and religious touristic resources. As the birthplace of the Buddha it attracts visitors from all over east and Southeast Asia. A SWOT analysis shows that Nepal has very strong WWR resources. It has an accessible location and is proximal to both India and China. It has magnificent mountains, crystal clear rivers and immensely varied wildlife and forestry resources. The country has a strong tradition of history and culture, friendly people and a reasonably developed tourism industry. It has good air connections, proper roads, comfortable hotels, taxi services, restaurants, cafes, and bars. Prices are far lesser than in major European countries, and holidays in Nepal are economical and provide value for money. The country has a poor railway system and sanitation and drinking water facilities are inadequate. Ecommerce in the tourism industry has not developed in line with that of European countries and online bookings are available only for a few hotels. A perusal of tourism websites indicates that marketing of tourism is weak compared to that of western nations and most visitors are not affluent. Average days spent by tourists in Nepal as well as money spends are low. Most arrivals are during the summer months and there is underutilisation in the lean periods. Language barriers also pose a problem for tourists to access services. The tourism industry has opportunities to increase off-season business and step up the number of arrivals in the cold winter months. There is great scope to increase cultural and historical tourism because of the availability of significant historical resource. Efforts to step up visits of more affluent tourists and arrange for longer visits through introduction of structured tours can also boost tourism earnings significantly. Underdevelopment of infrastructure could encourage tourists to go to other locations. Low-income tourists are very liable to change their mind and move to other locations at short notices and this threat will continue until the income profile of tourists’ changes. Very little information is available on market segmentation and growth has been organic. Recommendations and Conclusion Opportunities to increase tourist arrivals and promote Nepal as a WWR tourist and leisure destination are immense. It is evident from the SWOT analysis and the available data that the country has numerous underdeveloped areas, which if properly addressed can improve the quantity, and quality of tourist flows significantly. Tourism efforts should focus upon positioning Nepal as a WWR destination through a combination of interconnected and complementary set of attractions that provide tourists with an interesting and enjoyable value proposition; in this case a mix of WWR, interesting culture, novel cuisine, historic sites, lovely climate, gorgeous mountains, extravagant jungles, and a range of mountain and hill oriented outdoor activity. Marketing efforts will need to be provided through a mix of various suppliers who combine together to offer the tourism experience, i.e., the local tourism body, tour operators, airlines, hotels, taxi operators, WWR services, restaurants, cafes and guides. The tourism body needs to co-ordinate with all service providers to ensure improvement in services as well as adoption of a common marketing approach. The co coordinating body needs to develop value propositions that will appeal to various market segments, e.g. the low budget tourist, the affluent visitor, people desirous of WWR or mountaineering holidays, historical and cultural experiences or a mix of both. These value propositions need further development to form visitor activity packages that will satisfy the subjective and objective demands of tourists. A complex branding exercise for the complete tourism experience as well as its components like WWR needs development and implementation. The country has various touristic experiences on offer that have their unique appeal and need distinguishing and highlighting. Brand development is a complex exercise and must encompass the physical aspects of Nepalese holidays, cultural components, historical sites and the fun aspect of the total tourism package on offer. The country has extremely inadequate infrastructural facilities like train services, competent local tour operators, drinking water availability, waste disposal systems, and availability of guides with knowledge of foreign languages. The Nepalese authorities need to encourage and catalyse various initiatives, private, public and private-public partnerships that aim to improve the quality of infrastructure. In addition to improvement of basic tourism infrastructure WWR activity will be well served by improvement in the quality of guides and operators, introduction of mandatory safety requirements, and dissemination of information about the different WWR options. The tendency of tourists to avoid tour operators wherever possible and organise their tourism experiences on their own is increasing constantly, especially in the USA and Europe. It is essential that the parties involved in marketing WWR in Nepal should arrange for strong on line presence, including payment options. E Commerce gives rise to enormous possibilities to increase the value proposition of the tourism experience through different tourism sectors like WWR operators joining restaurants and cafes to offer discounts, free meals, entry and other benefits. Apart from setting up these initiatives the introduction of a practical monitoring system to assess progress in various areas will also help enormously in effectively marketing Nepal as a major tourism and WWR destination. Appendix 1 Rivers Suitable for WWR in Nepal (Nepal Association of Rafting Agents, 2008) Serial Name of River Duration of Rafting Trips in days 1 Trishuli 1 to 3 2 Seti 2 3 Bhote Koshi 2 4 Kali Gandki 3 5 Marshvangdi 4 6 Sun Koshi 7 to 9 7 Arun Up to 9 8 Karnali Up to 10 9 Tamur Up to 11 Word Count: 4428 Bibliography Ansoff, I, 2005, Strategic Choice, Management Centre, Retrieved December 17, 2006 from www.managementcentre.co.uk/knowledgebase/pdf/Ansoff%20-%20July%2005.pdf Basu, S and Riaz, A, 2007, Paradise Lost, Lexington Books. Beckman, T. N., Davidson, W. R, 1967 Marketing, New York: Ronald Press Co. Bloodgood, J. M., Bauerschmidt, A. (2002), Competitive Analysis: Do Managers Accurately Compare Their Firms to Competitors?. Journal of Managerial Issues, 14(4), 418+ Bright, A. D, 2000, The Role of Social Marketing in Leisure and Recreation Management. Journal of Leisure Research, 32(1), 12 Brown, T. L, 1996, The Challenge to Democracy in Nepal: A Political History. London: Routledge Cooke, A. Z., Haggerty, S, 1996, July 1, The Original White Water: During the Last 20 Years, River Rafting Has Evolved from a Sport for Thrill Seekers to Family Fun. Insight on the News, 12, 40+ Houston, P. D, 1998, November, Navigating Dangerous White Water Together. School Administrator, 55, 69 Klenosky, D and Gitelson, R, 1998, Travel agents destination recommendations, Annals of tourism research, Vol. 25, No. 3, Pgs 661-674 Lazer, W, 1971, Marketing Management: A Systems Perspective, New York: Joh

Kelly’s Assignment in Japan Case Answers

Kelly’s Assignment in Japan Title: Solutions to Kelly’s Assignment in Japan Case Study Module Title and Number: Managing Across Borders MGT 3203 Date : January 28, 2013 Word Count : 1650 TABLE OF CONTENTS CHAPTERPAGE Introduction3 Culture Shock Stages Reflection†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 Assessment of Clashes5 Successful International Assignments 5 Suggestions to Remedy the Situation6 Conclusion7 REFERENCES8 APPENDICES Appendix 1 10 Appendix 2 11 Appendix 3 13 INTRODUCTION The American and Japanese cultures have been compared in a general context for their contrasting values.In addition, the two cultures have been described as ‘‘polar extremes’’ by Barnlund (1975) as stated by (Khan et al. 2009) , pointing to Japanese being reserved and formal whereas the American being self-asserti ve and informal. When accepting assignments in foreign countries as expatriates, cultural differences are important to consider. More importantly, cross-cultural management is a matter an expatriate should be prepared for and which the company should give importance to. In this case, Kelly an American employee, who is a programme manager working in the US accepted an assignment in Tokyo, Japan.She had little time to decide but she accepted the offer and the family moved to Tokyo. This report starts with explaining the stages of culture shock the family experienced. The report then summarizes the cultural clashes that took place in the case which were a result of cultural differences and lack of orientation, preparation and training. After that, the report highlights the factors Kelly should have considered before accepting the offer and gives recommendations on how the company should have offered this international assignment.Finally, suggestions of what can be done to remedy the si tuation are proposed. CULTURE SHOCK STAGES REFLECTION (Answer to Second Question) Culture Shock as defined by the oxford dictionary is â€Å"the feeling of disorientation experienced by someone when they are suddenly subjected to an unfamiliar culture, way of life, or set of attitudes†. Culture Shock occurs in four main stages, which are clearly illustrated by Oberg’s U-Curve model (Refer to Appendix 1).Black and Mendenhall (1991) point out that it is the most commonly used model; therefore, it is utilized to analyze the culture shock stages Kelly and her family went through as follows: Stage One: The honeymoon stage is when individuals feel positive when being in a different culture. This took place when the family arrived and spent the weekend looking at the city. It was a holiday and positive feeling phase. This stage is also reflected on Kelly’s first day at work and her Husband’s first day setting up their new life in Japan. Their encouragement to be come acquainted is a reflection of the honeymoon stage.According to Uwaje (2009) the person in this stage can be described as interested, curious and open-minded. Stage Two: The crises stage occurs â€Å"when cultural differences result in problems at work, home and in daily living† (Deresky, 2011). This stage started to take place at the second working day when Kelly felt irritated by the Japanese because she did not receive the presentations. Moreover, all family members were experiencing this stage as feelings of rejection to the life style in Japan arose. In this case, the associations linked to the crises stage can be divided into two kinds.The first is work and school related, seeing that all family members are experiencing problems related to their professional lives. Likewise, language was a difficulty since differences in language may present a huge barrier as noted by Uwaje (2009). Language was an obstacle to Kelly’s children adjusting at school, Joe getting a job and Kelly communication complications. The second was home and daily life related. This included entertainment facilities (TV, Parks), social life, and even basics of life (food, language). A negative atmosphere was the feeling the family was experiencing.It is known that many individuals do not bypass this stage. Moreover, McFarland (2006) reported that 40% of expatriates fail to complete their abroad assignment. In this case, the crises stage lasted for 4 months. Kelly then realized that she had to make a decision between rejecting or accepting the assignment. Kelly and her family are experiencing a phase between the second and third stages of the cultural shock. Stage Three and Four: The Adjustment and Biculturalism stages are when individuals start to comprehend the new culture then accept and respect the cultural variations.Kelly is deciding on whether to adjust or not. If the family continues then they would move to the third stage. However, if they leave then they would not reach the third and fourth stages. ASSESSMENT OF CLASHES (Answer to First Question) Being in a different culture may result in clashes because peoples’ expectations, interpretations and values differ. In this case, many clashes occurred during the early culture shock stages with the Japanese but not the American or German team members whom values are similar to Kelly’s (Refer to Appendix 2 A and B).The clashes are linked to the differences between the American and Japanese national cultures. Therefore, Hofstede’s and Trompenaar’s frameworks are deployed to evaluate the clashes (Refer to Table Appendix 3) since these frameworks provide an excellent basis for understanding cultural differences (Higgs, 1994). These clashes can be seen when Kelly requested for separate presentations from every team member. This revealed the Japanese collective, high context and masculine culture and how different it is from the American culture.Moreover, the Americans an d Germans ,being affective cultures, accepted to talk about their achievements and families whereas the Japanese did not as they were more neutral and formal. In addition, Japan is known for its power distance culture where formalities especially with clients and employees who are of higher-level is a must. Adding to that, getting direct to business is accepted in the US due to its universalistic culture but not in Japan’s particulistic culture. The culture in Japan is also high context seeing that rejecting Kelly’s proposal was done in a nonverbal and implicit communication manner.The cultural clashes were also a result of unexpected living space, demographics and qualifications creating many conflicts. It can also be argued that if a Japanese colleague joined Kelly’s meeting with the client, a better negotiation outcome may have been a result. This is because understanding the client’s culture plays a crucial role in the negotiation process (Deresky, 20 11). Clashes were also related to the leisure aspect of life. In short, many cultural clashes due to both cultures different values arose throughout the case. SUCCESSFUL INTERNATIONAL ASSIGNMENTS Answer to Third Question) In this case both Kelly, and the company should have considered key factors to insure a successful international assignment as explained below: Employee Kelly should have given the decision more thought and time and should have asked for training. Moreover, she should have insured that there is a position for her husband and asked about the kids’ school while she was in the US. For instance, setting a video conference with the school’s management and class teachers could have been a way of knowing the atmosphere she will put her children in.Furthermore, a circulation of the team members CVs and setting a video conference with the team was necessary to avoid any misunderstandings regarding the team members’ demographics and qualifications. In ad dition, she should have planned for her life when they come back from Japan. Kelly should have asked about her position when she comes back and should have put her house on rent. Company Kelly was offered a tempting compensation package and her technical skills were considered when selecting her, but many key factors were not taken into consideration in the selection and training phases of this assignment.An expatriate selection must consider key success factors including, technical and management skills, one’s personality, emotional intelligence, adaptability and language (Parboteeah and Cullen, 2011). Moreover, training must consider several factors including employee orientation, concerned individuals orientation and perceptual and cultural toughness (Mndenhall and Oddou, 1985). The company should also follow up with the employee while they are in the foreign company and insure that repatriation is well planned (McFarland, 2006).In short, the company should have followed a n IHRM model to select, prepare and train Kelly and the concerned individuals minimizing failure risk. SUGGESTIONS TO REMEDY THE SITUATION (Answer to Forth Question) Kelly has two options; she can return to the US or continue her assignment in Japan. If Kelly chooses to return then she is taking the risk of loosing her job knowing that her husband already resigned and they sold their house. Therefore, Kelly may be in a better situation if she chooses to continue. She can look at her assignment in Japan as an opportunity that enhances her career path.Her management issues can be tackled, especially that she is now aware of the cultural differences. Kelly must request from the company to follow up with her and provide her and the team with comprehensive cross-cultural management training to avoid clashes and misunderstandings between team members, especially in the encoding and decoding of the communication process between the team members (Kwar, 2012). In terms of her husband, he wou ld be searching for a job whether in Japan or the US. The advantage of being in Japan is that his wife’s job is secure and the company indicated that they would support his job search.With regards to the children, the parents can explain to them the benefits of living in Japan. Inviting the children’s classmates may assist in overcoming the social discomfort the children are experiencing at school. The issues of the after school life can be resolved by subscribing with an American TV programs provider allowing them to watch the US programs. Moreover, the family can use a video calling system to interact with their family and friends and can arrange regular visits to the US. In short, taking corrective actions to support the success of the assignment is how to remedy the situation. CONCLUSIONAccepting an international assignment means agreeing to deal with a different culture from the employee’s home one. The selection, preparation and training of a potential exp atriate are key factors that reflect on the success of the international assignment. Failure to implement these factors may result in clashes in culture and the employee may not bypass the crises stage of the culture shock stages resulting is failure to achieve the company’s and employee’s goals. REFERENCES Black, S. and Mendenhall, M. , (1991). The U-Curve Adjustment Hypothesis Revisited: A Review and Theoretical Framework (June 1991).Journal of International Business Studies, Vol. 22, Issue 2, pp. 225-247, 1991. Available at: http://ssrn. com/abstract=1805455 or http://dx. doi. org/10. 1057/palgrave. jibs. 8490301, viewed on 20th , December, 2012. Deresky, H. (2011). International Management: Managing Across Borders and Cultures (7th Edition) Pearson Higgs, M. (1994),†Global HR Management and Cross-cultural Issues†, Cross Cultural Management: An International Journal, Vol. 1 Iss: 3 pp. 23 – 28, Available at: http://dx. doi. org/10. 1108/eb008379 , viewed on 20th , December 2012. Kawar, T. (2012). Cross-cultural Differences in Management', International Journal Of Business ; Social Science, 3, 6, pp. 105-111, Business Source Complete. Available at: http://mdx. summon. serialssolutions. com/search? s. q=Kawar%2C+T. +(2012). +'Cross-cultural+Differences+in+Management , viewed on 7th , January, 2013. Khan, M. ; Naumann, E. ; Bateman, R. and Haverila M. , (2009),†Cross-cultural comparison of customer satisfaction research: USA vs Japan†, Asia Pacific Journal of Marketing and Logistics, Vol. 21 Iss: 3 pp. 376 – 396, Permanent link to this document: http://dx. doi. org/10. 1108/13555850910973856 , viewed on 20th , December 2012.McFarland, J. (2006). ‘CULTURE SHOCK', Benefits Canada, 30, 1, p. 31, Business Source Complete. Available at: http://mdx. summon. serialssolutions. com/search? s. q=CULTURE+SHOCK+McFarland%2C+ , viewed on 20th , December 2012. Mendenhall, M, & Oddou, G 1985, ‘The Dimensions of E xpatriate Acculturation: A Review', Academy Of Management Review, 10, 1, pp. 39-47, Business Source Complete. Available at: http://mdx. summon. serialssolutions. com/search? s. q=The+Dimensions+of+Expatriate+Acculturation, viewed on 20th,January, 2013. Parboteeah K. & Cullen J. (2011) – Strategic International Management. 5th ed) Canada, Nelson Education, Ltd Vesa Peltokorpi (2008). Cross-cultural adjustment of expatriates in Japan, The International Journal of Human Resource Management, 19:9, 1588-1606. http://dx. doi. org/10. 1080/09585190802294903, viewed 20 December 2012. Uwaje, A. , (2009). Culture shock, Re-Integration and Re-Entry culture shock – Managing Cultural Differences. Munich Business School Thesis. Available at: http://www. munich-business-school. de/intercultural/index. php/Culture_shock,_Re-Integration_and_Re-Entry_culture_shock_-_Managing_Cultural_Differences , viewed on 20th , December 2012. Website: http://oxforddictionaries. om/definition/english/ culture Website:http://oxforddictionaries. com/definition/english/culture%2Bshock? q=culture+shock Website:http://www. britishgermanassociation. org/special. php? pageno=20 Website: http://geert-hofstede. com/united-states. html Website: http://www. munich-business-school. de/intercultural/index. php/Image:Stages_of_culture_shock. jpg APPENDICES Appendix 1 Figure of Culture Shock Stages Source: http://www. munich-business-school. de/intercultural/index. php/Image:Stages_of_culture_shock. jpg Appendix 2 Figure A: Comparison of USA and Japan Hofstede’s Value Dimensions Source: http://geert-hofstede. com/united-states. tml Figure B: Comparison of USA and Germany Hofstede’s Value Dimensions Source: http://geert-hofstede. com/united-states. html Appendix 3 Illustration of Hofstede’s , and Trompenaars’s frameworks with regards to comparing the American and Japanese national cultures. (Deresky, 2011) and (Parboteeah and Cullen , 2011). The table demonstrates the dimensions each research tested. It then states the scores or levels the USA and Japan were given and explains the clash or conflict that took place in Kelly’s Assignment Dimension | USA: Score and Description| Japan: Score and Description| Clash | Hofstede’s Model of National Culture |Power Distance â€Å"Individuals in societies are not equal†| Score: 40Hierarchy is for convenience as the manager or boss is accessible. S/he depends on employees’ expertise. Moreover, communication is informal. | Score: 54 Japan is a mildly hierarchical society compared to other Asian cultures. | Kelly being informal with the Japanese Client was not acceptable. This is seen when she asked for his name, was close to him in terms of distance and patted him on the back. Kelly being friendly with the client creating an embarrassing atmosphere. | Individualism/Collectivism â€Å"I† or â€Å"We†| Score: 91 Individual achievement is seen ideal.Moreover, as America ns do business with strangers so often, they tend not to be shy to approach people in the business world in order to obtain information. They are expected to take initiatives. | Scores: 46 Group decision making is perceived as best. Japanese society is a collectivist one where they work as a group and even decide as a group. | The Japanese employees did not feel motivated when Kelly asked them to present their ideas individually because they come from a culture where consensus plays a major role when making decisions.Kelly comes from an individualistic culture where achievement is all about â€Å"me† and presenting one’s own ideas is an opportunity to achieve recognition. The Japanese culture is collective and they work in groups unlike America’s culture which is more individualistic. | Masculinity / Femininity| Score: 62Americans believe that a person should strive to be the best and find it acceptable to talk about one’s achievements. | Score: 95Japan i s known to be one of the most masculine societies worldwide. | It is difficult for the Japanese to accept a female boss.The team didn’t expect Kelly, the new boss, to me a female. The Japanese addressed their work to Peter instead of Kelly. This is due to either Kelly being a female in a masculine culture or because Kelly asked peter to intervene and they took it sensitively. The client did not direct his questions to Kelly might be because Japan’s culture is masculine. | Uncertainty Avoidance  Ã‚  Ã‚  | Score: 46 Americans accept the unknown meaning the society accepts: Innovation, new ideas and new practices. | Score: 92 Japan score is one of the highest worldwide. It is difficult to see changes in their culture. Opportunity: For Kelly as an American, it’s easier to adjust to a new culture than others who score high in uncertainty avoidance. This includes the Japanese ideas at work, food and lifestyle. | Long-term Orientation | Score: 29 USA is a short-term oriented culture. Americans value quick results at work. | Score: 80 Japan is a long-term oriented culture. Long-term returns are more important than short-term returns). | This dimension may have not been taken into consideration when Kelly finalized the report and may have been a reason on why the proposal was rejected. | 7 d Cultural Dimensions Model by Trompenaars|Universalism versus Particularism| US is high in applying rules and systems | Japan is low and deals with others based on personal relationships| Kelly wanted to present directly instead of first building a relationship with the client. However , getting direct to business in the US business world is accepted due to its universalistic culture but not in Japan due to its particulistic culture. | Neutral versus Affective â€Å"Express emotions even in business†| 54 US medium| 98 Japan very high and consider expressing feelings at work unprofessional| Kelly created an awkward situation when she asked the Japanese a bout their families.The result of being informal with them was opposite to lightning up the atmosphere which is what Kelly was trying to do. | Specific versus Diffuse â€Å"separate work from personal issues and relationships and more open and direct†| 77 US is highly specific| 57 Japan medium| The outing after work wasn’t accepted by Kelly as she comes from a highly specific culture| Achievement versus Ascription| 97 Status is based on achievement| 53 Status is based on class, age, gender etc. Kelly is not seen as having the authority by the Japanese because of her gender| Past , Present, Future or mixture| US is future oriented which implies that change is beneficial | Not applicable to the case| | Control of versus Nature| Not applicable to the case| Not applicable to the case| | Individualism| 77| 6| Mentioned in Hofstede Dimensions| High verses Low Context| US is low| Japan is High| The Japanese did not inform Kelly that they prefer to do work in groups, they did not give previous notice about the presentation delay.They did not speak about the way they prefer to work and used body language more than word expressions. The client had little eye contact with Kelly and was not frank with her regarding his opinion on whether they will accept the proposal or not. The client’s nonverbal communication through lowering his

Equity Theory of Motivation Essay

As the cliche goes, no man is an island. Everything man does is influenced by other men and his environment. Be it in school or at work, the reason why people persevere lies on the desire to achieve a certain goal. Hence, motivation is essential to keep the drive of doing things passionately and effectively. However, the enthusiasm to sustain the dream and keep the motivation alive can be tampered by life’s uncertainties. Given the unique characteristics that each student possess, the amount of effort exerted by an average student does not always equal the amount of effort exerted by an outlier in class, yet the results are the same or sometimes exceeded by the outlier. Perhaps there are instances when studying overnight and not studying at all yielded the same result. These situations affect the level of motivation a student harness when studying. The feeling of unfairness affects how he/she will prepare for the next exam. In the workplace setting, motivation is likewise an i mportant factor to increase productivity. For example, an employee who worked overtime to get the job well done vis-a-vis an employee who slacked off and produced a mediocre output both received the same salary and the same praises from their boss. The hardworking employee might feel wronged upon seeing how his extra effort was overlooked. To give justice to the unfairness he feels, he opts to mimic the other employee, thus also producing a mediocre output. The equity theory of motivation, developed by workplace and behavioral psychologist John Stacey Adams in 1963, is grounded on the concept that employees tend to seek equity or balance in the amount of input they give to their job or relationship with their bosses, and the output they receive. The inputs referred in this theory include college degree, hard work, effort, committment, ability, adaptability, determination, flexibility, skill, loyalty, tolerance, enthusiasm, trust in superiors, support from colleages, personal sacrifi ce and the like. On the other hand, outputs come in the form of financial benefits like salary, bonuses, and perks, and also intangible benefits such as recognition from superiors, praises, responsibility, job security, good reputation, sense of achievement, personal growth and the like. When an employee’s inputs outweigh his or her outputs, he or she becomes demotivated and unhappy. To achieve equity, the behavioral response is to balance out the input-output equation by asking for an increase in the output side, or  simply diminishing his or her input. The state of equity lie on the perception of an employee in relation to another employee’s input and output ratio, which shows that employee motivation is subjective nature. However, an employer or manager’s role of keeping employees motivated should not be deterred by this notion. Instead, understanding the sources of employee dissatisfaction and demotivation can help managers address the issues surrounding t he workplace to allow for a more productive and work-conducive environment. The equity theory is more commonly known as the social comparison theory or the inequity theory since an employee compares his input-output ratio with another employee’s input-output ratio to determine equity, and an employee who feels inequity or unfairness reduces this through his behavior and attitude towards work. The â€Å"exchange relationship† between work and compensation in comparison with a colleage draws forth discernment of what is fair and unfair. To grasp the intuition behind the theory, four objects must be present which include the person, whose aim is to reduce whatever inequity feeling he or she has; the comparison to other, which pertains to the benchmark person from whom equity and inequity is determined; the inputs and the outputs. According to the theory, a person first compares inputs and outputs with a comparison other, then determines if there is inequity or unequal input/output ratio between himself/herself and comparison other. Basically, the theory assumes that an individual addresses his/her inequity feeling after comparison to others, and remains at the level where equity is achieved. Several ways a person does in reaching equity include altering his/her inputs, altering his/her outputs, distorting his inputs and outputs cognitively, finding a new job, or changing the person of comparison. (Gogia, 2010) In line with this, Huseman, Hattfield and Miles (1987) dissected the equity theory into four basic ideas. First, the notion of fairness is conceived through comparing an individual’s input and outcomes ratio with others. The other does not necessarily require a colleage, because it can also be his/her old self. Comparing the amount of effort exerted and the amount of salary received to a colleage’s or an old job facilitates the judgment of what is fair to an individual. Second, if the compared ratios are not equal, then there is inequity. The two kinds of  inequity are underpayment inequity and overpayment inequity. Underpayment inequity happens when an individual deems that his/her ratio is smaller than others, or in other words, his great effort mismatches with the benefit received as compared to another employee. On the contrary, overpayment inequity occurs when a big compensation is received from the little effort exerted, as compared to other coworkers. Third, the greater the difference in inequity, the greater tension and distress the individual feels. The different attitudes people have toward life’s unfairness in general brought about the three kinds of equity-sensitive people namely the benevolents, the equity sensitives and the entitleds, with the benevolents being the most tolerant of underrewards, and the entitleds having the most preference of over-rewards. The equity sensitives just want their ratio to be the same with others, but the entitleds believe that the world owes them, so it is just rig htful for them to receive more. Forth, the more intense feeling of tension brought about by inequity, the harder an individual will work to restore equity. This is just like how a more oppressed victim is more thirsty he is to seek justice, if not revenge. The ways in achieving equity varies from person to person. Upon experiencing the feeling of unfairness, the assumption of this theory is that employees will find ways to reduce inequity. The two most typical ways are through behavioral options and cognitive options, where the latter is used more often used since it is both less riskier and easier to do than the former. For behavioral options, the employees change their input to match outcomes like slacking off or leaving work early, changing outcomes to match input by asking for an increase, or perpetrating a crime like theft or fraud, persuading others to change inputs by complaining to superiors, and withdrawal through tardiness, absenteeism or quitting the job. As for the cogni tive options, the employee distorts his own inputs or outcomes by underestimating his own performance so that the inputs will match the output; distort the inputs or outcomes of others by thinking that others earn more because they probably deserve it; change the comparison others by choosing a different benchmark for them to feel better. (â€Å"Motivation theories†, 2009) Applying this theory in the government office place gives a clearer understanding as to why in general, government employeees are unmotivated and unhappy with their jobs. Perhaps they have once tried to work dilligently, but only end up with having the same  across-the-board incentive as fellow workers who do not work as hard as them. Hence, the Aquino administration came up with the performance-based incentive system to allow a fair compensation to those who deserve to be rewarded. By altering the outcome through a performance-based bonus, government employees try to match their performance to the amount of bonus they wish to receive. Motivation Theories. (2009, April 26). Why Do Employees Take More Initiatives to Improve Their Performance After Co-developing Performance Measures? A Field Study (Groen, Wouters & Wilderom, 2012)  Usually, people work more conscientiously when their performances are being monitored, be it in school, at work, or even in playing games. Knowing how grades, scores or output are obtained help an individual’s goal setting and invoke the determination and commitment to achieve the said goal. What more if the employees themselves determine how they are to be rated? Having an opinion and first hand experience in developing performance measure criteria make employees not only feel valued, but also feel a sense of fairness because they know that the criteria they set are attainable and reasonable. Groen, Wouters and Wilderom (2012) conducted a field study to investigate why employees perform better when they are involved in developing peformance measures. The study used the theory of planned behavior, which states that beliefs predict how individuals behave or plan to behave. Gathering data from meetings, interviews, company information data, quantitative questionnaire and first-hand experience in the field in a beverage manufacturing company, bottling line employees were found to be more motivated, have more initiative, and more positively affected by social pressure when they were involved in developing performance measures. The  variables examined in the study included attitude towards the job, social pressure from coworkers, capability from personal skills. All these variables were found to positively and significantly influence an employee’s intiative towards his job, thus increasing his productivity. The study showed that productivity and initative of the employ ees who were aware and had a say on performance measurement criteria improved the departments’ overall performance. 7. Models of Performance-Measurement Use in Local Governments: Understanding Budgeting, Communication, and Lasting Effects (Melkers & Willoghby, 2005) Since performance measurement has been emphasized in various literatures, the importance of having them adopted and implemented is no longer debatable. Performance measurement schemes help in understanding the strengths and weaknesses of the organization, and it also serves as an objective basis of planning the budget to be used to fund government projects. The study of Melkers and Willoghby (2005) paid close attention to the usefulness of performance-based information on the operations of the local government in the US, communication, and budgetary decisions. The pervasiveness of performance measurement implementation in the US was also studied through the results obtained from a national survey of city and count y administrators and budgeters of nearly 300 governments. Multiple regression analysis was implemented to find out whether dependent variables budget effects, communication effects and lasting effects index were individually affected by independent variables community characteristics, respondent characteristics, organizational culturea and performance measurement characteristics. The results showed that although the use of performance indicators was pervasive, the respondents were apathetic with regards to the effectiveness of these performance measurements for budgetary concerns and operational processes within the government unit. Promoting the Utilization of Performance Measures in Public Organizations: An Empirical Study of Factors Affecting Adoption and Implementation (Julnes & Holzner, 2001) It is true that performance measurements are vital for making informed decisions. Both public and private firms need to be guided on a set of parameters that help them determine where they have done well and what areas need improvement. If the government departments are serious  in improving their service to the public, then coming up with a set of criteria and implementing these evaluation criteria would be essential in determining where to start the change. Despite recognizing the importance of having performance measures, there are several issues that impede the development and usage of a performance measurement scheme. The empirical study by Julnes and Holzner (2001) examined the factors that hamper the utilization of performance measurement in public organizations in the US. A sample of state and local governmen t employees were drawn from the Government Financial Officers Association, International City/County Management Association of College and University Business Officers obtained from GASB. A total of 934 questionnaires were sent to state and local government employees across the nation in 1997. The variables used in the survey included adoption and implementation for the dependent variable, and external requirements, internal requirements, internal interest groups, external interest groups, attitudes, risk taking, information, resources, goal orientation, percent unionized, government type and position. Using ordinary least square mulitple-regression analyses, the results of the study revealed that output measures were developed for various programs, but efficiency measures and outcome measures were less developed. Looking at the performance measure usage, the researchers found out that efficiency and outcome measures were less used for strategic planning, resource allocation, progra m management, monitoring and evaluation, reporting to internal management, electec officials, citizens or media. Aside from these, the researchers’ findings showed that internal requirements, external requirements, goal orientation and access to information positively and significantly affect the adoption of performance measures, while external interest groups and internal requirements positively affect implementation of performance measures, but unionization negatively affect implementation. Overall, the policy of using performance measures would more likely be adopted if it were an internal requirement wherein top management commits to the effort of evaluating government programs. On the contrary, external requirement would not automatically merit the implementation of performance measures since factors such as organizations’ ability, politician’s support, sufficient resources and commitment to the purpose were lacking if not missing. The study suggests that p ublic administrators be aware that  performance measure is a two-step process namely adoption and implementation, wherein factors affecting adoption include mostly rational and technocratic theory, while actual implementation are determined by political and cultural factors. (Julnes & Holzner, 2001) The Use of Performance Measurement Systems in the Public Sector: Effects on Performance (Spekle & Verbeeten, 2013) Performance measurement information are collected and used in various ways such as strategic planning, budgeting, and employee bonus planning. The immense benefits of measuring performance outweighs the costs of collecting such data, which is why most government agencies have already instilled in their system a peformance measurement mechanism for reference. In the study of Spekle and Verbeeten (2013), the researchers explored whether the pefromance measurement system actually improves or deters organizational performance. They also introduced the concept of contractibility, which means clear goals, undistorted pefromance metrics, managers’ knowledge and control of the transformation process. Public sector organizations that have high contractibility were expected to be better than those organizations with low contractibilty in terms of performance. The test was d one through a survey of 101 public sector organizations in the US. The results showed that contractibility influences the way incentive-oriented use of the performance measurement system and performance. More interestingly, the researchers concluded that usign the performance measurement system for incentive purposes negatively influences organizational performance, unless contractibility is high. Disregarding contractibility, performance measurement system tends to enhance performance. Hence, the effect of the performance measurement system in public sector organizations are greatly affected by the level of contractibility and managers’ usage of the system. Determinants of Incentive Intensity in Group-Based Rewards (Zenger & Marshall, 2000) Key Performance Indicators (KPIs) in the Public Sector: A Study in Malaysia. Economic Incentives and the Choice of State Government Accounting Practices (Ingram, 1984)

A Report on Accounts Receivable on Marysville General...

As the Chief Financial Officer of Marysville General Hospital, I have informed the hospital board members, that the accounts receivable has quickly approached the 100th day mark. The accounts receivable had crept from the 70-80 day range within the past few months, which is greater than the average of 55 days. There are many factors that could be a potential reason as to why the hospital accounts receivable days are rising, however, collectively the board members will create a plan of action that will bring the accounts receivable days back in line. It will take cooperation from everyone including the board members, medical staff, clinical departments, health information management, business office, and many others. Therefore, each of these departments will be involved in devising a solution to reduce the accounts receivable crisis. Before the proposal for a development plan for reducing accounts receivable, the following departments are requested to submit a current report showing the status of their departments. The departments are: admissions; registrations; chart documentation; charge capture; claims processing; payment posting; secondary billing and patient follow-up. All of these reports will provide further insight as to how each of the departments has performed, and contributed to the increase of accounts receivable. Additionally, in reviewing these documents, the hospital will analyze the collection data from the finance department, comparing the past,