Bug Inc

In both cases BUG is liable for negligence and could pay compensatory and punitive damages. As an employer, BUG is bound to protect its employees. In the case of the vendor, BUG can be considered as owner of the land (dock) while the vendor is a licensee. As such, BUG has a duty of ordinary care to the vendor. In defense of a tort liability filed by the vendor, BUG can use the assumption of risk as its defense. It is a fact that the town is experiencing a crime wave.Knowing that it was lunch time, the vendor should have simply just returned later instead of waiting. Had the vendor done so, it could not have been robbed and the items to be delivered stolen. However, BUG cannot use the same defense against tort filed by employees. As employees, they are required to report for work and go home after. BUG can however use contributory negligence as a defense. BUG can use the fact that the parking lot was originally well lit.As employees, they should have informed the company of the condit ion of the lights in the parking lot. Employees should also have updated the company on whether the lights were already fixed or not. 6) Sally can file negligence suit against BUG. BUG knew that an insulator could prevent shorts from happening but did not do so for business reasons. Sally can also file for misrepresentation since BUG continued to manufacture the product despite knowledge of a problem possibly occurring.Sally cannot file for strict liability since the product was not technically defective. Sally however can also file for failure to warn since BUG should have informed its customers of the possibility of a short. Sally can request for compensatory damages, specifically general damages, since she actually suffered harm on her person. As a result of BUG not including the insulator knowing that it could prevent short, Sally can further ask for punitive damages.

Kelley School of Business Essay

I. I strongly believe that my education at the Kelley School of Business will help me achieve my goals. To begin with, it has been my short-term goal to obtain as much information about Finance to be an efficient Fund Manager of an investment company. This position requires me to maximize the profits of the company as well as the clients. An MBA degree will contribute a lot to pursuing this goal. As the program says, the MBA education at Kelley teaches leadership first and foremost, and when leadership has been laid all the other principles of Finance is given. This is what I wanted to acquire, for I know this is going to be useful for me in my career path and plans. I also learned many values in my four years with Jaesung Jinheung in South Korea as a Quality Controller. Most of my leadership and social skills were shaped by my stay there, and it also allowed me to learn how to treat others working for my department under me. My experiences in CB Richard Ellis Korea during my internship also exposed me to different financial situations that helped me apply what I learned from my Bachelor’s Degree in Business. Translating English documents into Korean, the internship gave me a heads up on the financial world and trained me with all aspects of business while refreshing all that I have learned. These work experiences give me the edge in my chosen profession. With experience and values, I am confident that I can achieve my career potential to the fullest. But this short-term goal is not my only motivation to pursue an MBA degree. It is also my goal to be a Chartered Financial Analyst or a CFA. To qualify for this title, I need a minimum of four years experience in the financial investment industry. I hope to have this requirement through the Fund Manager position that I want to serve. Apart from this, I also need to learn more to be able to pass the three examinations required of aspiring Chartered Financial Analysts. Backed with an MBA degree from Kelley and the work experiences that I had, I know that becoming a CFA is not very hard. I have designed my goals to complement each other. I felt that it will be easy to achieve something if it has been planned out in accordance to how the processes of planning have been. This is why I wanted to tackle Fund Management; I know I leads to my ultimate goal of becoming a CFA. Considering these goals, I am motivated with the MBA degree knowing that it will do so much for my advancement. My work experiences in Korea are likewise a big help. Work allowed me to apply theoretical knowledge into practical settings. It took my knowledge from my books into my hands, so to speak. From work I learned leadership, sociability, patience, problem-solving skills, and perseverance. Given these work and educational foundations, I am confident that my short and long term goals will not be too hard to achieve. II. If I have to choose three persons to ride with me in a cross-country trip, I will have to choose those who have been efficient in their roles in their respective fields. I will also consider the feasibility of the trip, and the comfort of traveling with those three people. This way, I can be sure that I will be learning a lot and will be able to get something from them that I can use with my own educational and career path. Of course, when business is the topic, many names come to mind. Still, one can single out people who will be beneficial to learning about life and work among others. I would like to have J.P. Morgan in the backseat. We will most probably talk about how he saved the Wall Street and figure out how important this financier’s role is to history. I hope to learn from him how to manage incoming and outgoing finances, and how to delegate allocations properly in a way that the value of finances is maximized. I will be asking a lot of questions, including business problems he has encountered and how he was able to see himself through them, for I know that the bigger a businessman the bigger his problems too. Most of the questions will focus on money and investment management. I will have clients in mind when speaking with Morgan, putting a future client’s possible case and asking Morgan about his opinion on it. Beside J.P. Morgan will be Richard Branson. I like the idea that he can call for air help when something happens to us or to the car. Yet more seriously, I would also like to know how he managed to grow the Virgin Group to what it is now. I also hope to learn from him how he manages to grow the business while facing detractors and competition. I feel that Branson is the best person to ask about growing a business through rolling investment. Given my interest in investment management, this will be a lot of help for me and my career. Lastly, John D. Rockefeller is another person I want to drive with, and he will be staying in the front passenger’s seat. I hope to learn from him how he managed to make binding ties and affiliations with large companies that eventually cut costs for his trade and offered cheaper end-products for consumers. If there is anything that I would like to have from Rockefeller, it is his ability to communicate in a way that prospective business partners agree to him, and competitors sell out to him. Speaking with Morgan, Branson, and Rockefeller will earn me a lot of business insights. They will also give me a lot of information about businessman mindset, something I need to know more about to enable me to learn more about my future clients and how I can better help them with their finances. I am sure that the trip will be fruitful, and that it will enlighten me with my career path. Indeed, speaking with experienced individuals in a refreshing new environment will organize my thoughts and allow me to better serve my goals.

Global Growing Challenges Case Study Example | Topics and Well Written Essays - 2500 words

Global Growing Challenges - Case Study Example International Monetary Fund has also confirmed the fact that the ten fastest growing economies of the world would be emerging as powerful nations in the near future (Dewhurst, Harris and Heywood â€Å"The Global Company’s Challenge†). Against this backdrop, the discussion in this report would be on the growing global challenges that a plastic bottle manufacturing company, Logoplaste was facing. The objective would be to conduct a strategic analysis of the company, its products and the industry it is functioning in. This would assist in identification of the critical success factors for the growth and development of the company. Company Overview Logoplaste, a company that produced rigid plastic containers, was established in the year 1976. This company has been a pioneer in the plastic packaging segment since a span of 35 years. It has more than 60 factories in 16 locations around the world. Logoplaste utilizes state-of-the-art machineries in its factories. It follows ju st-in-time and â€Å"Hole in the wall† method of product delivery, which gives the company an advantage over its competitors. Logoplaste is the third largest company for container transformer in Europe and second largest in Brazil. The goal of the company is to attend an annual growth of 15 percent in every country it has its operation in and acquire a new business contract every year. This goal of the company is inspired by its vision, which states that in order to retain the position in the industry; the company should keep on growing in terms of size and revenue (â€Å"Logoplaste Activity†). Business Model The business model of the company is based on five pillars; focus, close relation with customers, win-win approach, services and investment. In order to maintain a balance between these pillars, Logoplaste has certain strategies, which provides competitive edge to the company. Logoplaste consider itself to be a global player, so it focuses on the leading companies present in the market. The motto of the company is to invest in technology and innovate, so that not only the company can grow but its employees can mature in terms of their standard of living (â€Å"Logoplaste Activity†). Customers Logoplaste mainly functions in the fast moving consumer goods (FMCG) segment. The customers of Logoplaste are Procter & Gamble and Coca Cola are the largest customers of the company, which Logoplaste supplies containers and packages for many well-known FMCG companies around the world. The FMCG companies find the plastic containers to be the most convenient and cheap alternative for product packaging. Almost all the FMCG companies directly or indirectly avail plastic containers of Logoplaste (Alcacer and Leitao 1-19). Distribution Transporting the plastic containers in high volume is economically unviable because when they are empty there are ample chances of damage. This is the reason why the suppliers of the containers set their plants near the filter plants of the clients, so as to eliminate the cost of transportation, but this decreases the diversification benefits and scale (Alcacer and Lei

Entrepreneur Paper and Presentation (Minicomputer) Essay

Entrepreneur Paper and Presentation (Minicomputer) - Essay Example Between 1944 and 1945, the navy trained Olsen in Electrical Engineering. The training at the navy and his work experience at a General Electric Factory where he served to troubleshoot their FM radios enabled Olsen to join MIT as an undergraduate in February 1947. At MIT, he studied Electrical Engineering where he concentrated on magnets and generators but it was not until he graduated that he heard about computers after being offered a job in the computer lab (473). It was his love for electronic that earned Olsen a position in MIT computer lab and not the grades as was the norm. This was in 1950 during which period; the IBM computer was so large and operated on bunch cards. Olsen applied great vigor during his stay at MIT where he worked as a liaison engineer on the Whirlwind in his first year. Olsen is noted to have challenged the inefficiencies at MIT and, as a result, he was put in charge of the TX-0, a project to that enabled him to direct the building of   the first transisto rized research computer(474). Olsen grew more determined that soon interactive, real-time mini- computers (474)   Olsen ventured into the entrepreneur field in 1957 when together with Harlan Anderson, an MIT colleague, approached the American Research and Development for a loan and founded DEC (475). Through DET, the minicomputer was possible, it was small and so cheap compared to the large IBM mainframe; cost was down by from between $1 million and $ 3million to about $125, 00 to $ 150,000. DET was already bathing in success just a few years from its formation. Olsen however knew too well not to overrate their ability and at one point had to decline an order of 100 minicomputers by NASA since he felt their rate of production was still too small (476). Olsen also knew how to stay ahead of his competitors. While his competitors were looking into how to improve on his products, Olsen and his assistance were working on new products. This was for instance portrayed in 1964

Federal vs State Law Case Study Example | Topics and Well Written Essays - 500 words

Federal vs State Law - Case Study Example The manhunt that followed led police to led police to one Mr. David Harris who after being grilled pointed a finger Randall Adams as the trigger man (Gillers 117). Based on Harris’s testimony, Randall Adams convicted for murder and sentenced to death. The conviction however, later became one of the most infamous miscarriages of justice in America. Mr. Adams, as would later be proved, was not the killer. In fact, he was not in Harris’s car when the officer was killed. He was only railroaded to prison because his shaggy appearance made him look like a criminal as compared to young David Harris. However, in 1980, the Supreme Court ruled that it was unconstitutional for Texas to require that jurors must promise that the obligatory inconvenience of a capital punishment would not meddle with their thought of verifiable matters, for example, blame or purity, amid a trial. The case was eventually thrown out and Adams released after 12 years behind bars. The unconditionality of some of the state laws were eventually put to light as seen in the case of Adams. Thus, the need to revise such laws that predetermined a suspect’s innocence or guilt was raised.

Explain the Legal Framework for the Bank of England's Monetary Policy Essay

Explain the Legal Framework for the Bank of England's Monetary Policy - Essay Example except where clearly quoted and referenced. has been copied from material belonging to any other person e.g. from a book. handout, another student. I am aware that it is a breach of UEL regulations to copy the work of another without clear acknowledgement and that attempting to do so renders me liable to disciplinary proceedings. SECTION B: (to be completed by the tutor marking assignment) Assessment Criteria: Weightings Criteria based Feedback Mark Achieved Logical Sequence and Development 10% Evidence of Background Reading 20% Appropriate Depth of Analysis 30% Critical Evaluation of Issues/Results 25% Referencing Technique 5% Presentation including Language and Grammar 10% TOTAL MARKS 100% Good practice demonstrated: Aspect to consider for improvement: Tutor's Name: Date Received: PROVISIONAL MARK Explain the legal framework for the Bank of England’s Monetary Policy and discuss the effectiveness of central bank independence in times of financial crises. Module Code:FE3011 Mo dule Title: Monetary Economics Student Number:0843375 Table of contents 1. Introduction 3 2. Bank of England – monetary policy 3 2.1 Overview of Bank of England’s monetary policy 3 2.1.1 Monetary policy, elements and effects 3 2.1.2 Monetary policy of Bank of England 4 2.2 Legal framework for the Bank of England’s Monetary Policy 5 2.3 Effectiveness of central bank independence in times of financial crises 7 3. Conclusion 8 References 9 Appendix 10 1. Introduction In most countries, the standardization of the economy is considered as a challenging task, even when the level of national resources, as combined with commercial activities, is characterized as quite satisfactory. The development of an effective monetary policy can help a country to secure its position in the international community; at the same time, a successful monetary policy can help a country to keep the control on its industries and resources, ensuring the availability of capital required for th e completion of local government’s plans. This paper focuses on the examination of the legal framework for the Bank of England’s monetary policy; furthermore, the effectiveness of the Bank’s independence in times of financial crises is discussed referring to the literature and the empirical evidence developed in the specific field. It is proved that, in the UK, the monetary policy is influenced by a series of factors; for this reason, the legal framework for the Bank of England’s monetary policy is not standardized. In its current form, the legal framework for the Bank’s monetary policy is quite flexible, incorporating rules for regulating all aspects, as possible, of the national economy. In the future, particular emphasis should be given on the valuable role of Bank of England in securing payments across the country, regulating the monetary policy of the country and controlling the activities of bank institutions (HM Treasury 2008, p.86). 2. Bank of England – monetary policy 2.1 Overview of Bank of England’s monetary policy 2.1.1 Monetary policy, elements and effects In order to understand the characteristics and the effectiveness of Bank of England’s monetary policy, it would be necessary to refer primarily to the elements of monetary policy, as part of a country’s economic life. According to Ruddock (2008), the monetary policy of each country is set and monitored by the country’

Ethical Decisions Essay Example | Topics and Well Written Essays - 250 words

Ethical Decisions - Essay Example Transparency is necessary in a business decision making process. It is obvious that most decisions made have undesirable effects on some workers. However, transparency helps reduce instances of employees being treated unfairly by their bosses. Therefore, transparency is a core ethical aspect in the decision making process. In addition, there are consequences resulting from various decisions made in a business. These decisions may affect various workers negatively. Therefore, it is wise and ethical for managers to identify the effects, which are likely to occur from various decisions made. The effects of these decisions should be clear before the decision is made. This helps the employees prepare for the repercussions which are likely to occur. Further, every business decision should be achieved fairly. Fairness is tremendously vital in decision making because it creates confidence among workers. Each employee working for a particular firm should be treated equally and fairly. Fairness creates a business environment where employees believe every decision made in the company is targeted for a common good. Transparency and fairness are a vital business code of ethics that enable the company to build a strong employer-worker relationship. For instance, I was working as the head secretary for a local restaurant where I would make most of the decisions. The restaurant had many dedicated workers who made it easy to work with them. However, the company faced tough economic times, and I was ordered to fire some of the workers. It was hard to choose the best workers. Therefore, I called a meeting, and I discussed the matter with the employees (Dubbink, Liederkerke, & Luijk, 2010). We decided to use facts in order to reach an agreement on which workers I would fire and which ones I would keep. After examining the role played by each worker, I finally fired those who played minor roles. In

IMF Policy and Its Effects Assignment Example | Topics and Well Written Essays - 1000 words

IMF Policy and Its Effects - Assignment Example In his essay â€Å"What I Learned at the  World Economic Crisis†, he described very thoroughly the problems of such countries and the role of international monetary fund IMF in creating and multiplying the downfall of a running economy. Stiglitz said that during his appointment as chief economist, he saw many economic crises in most parts of the world, which then took the form of a global crisis. He said that the IMF in not very serious on the issue of solving the problems of countries. Because it suggested wrong policies, many developing countries which were initially in a very good state, adapted those policies & in the end, declined off smoothly. Actually, IMF tries to implement the same tactics on each country without properly analyzing the background and ground facts. During the crises of Latin America in 1980s, IMF imposed controlled budget technique and tight policies if the countries agreed to provide them with an aid. This really proved to be good for them as they w ere not already involved with budget surpluses techniques so they survived from the crisis in a much better way. But the big issue is that IMF imposed all such techniques to those countries too like Thailand and Indonesia, who have a total different reality than US. This was a big mistake, not only from the IMF side but from the governments too, as they did not consider the fact that IMF was not fully aware of their economical status. They were already giving huge surpluses while avoiding the severe conditions of illiteracy and other factors that contributed a lot in economical development of a country. By implementing IMF policies, they nearly starved to death. The inflation rates and unemployment soared and people came upon the streets against their governments. Another major reason of this setback was that some Asian countries started liberalizing their capital markets, due to which they needed more revenue to compensate. So they implemented some short term financial programs whi ch caused huge real estate disasters. In late 1990s, Thailand and Indonesia suffered major economic crises due to bad policies of IMF. Stiglitz suggested that the tight austerity measures, high interest rates and reductions in government’s expenditure cannot solve the problem of such countries; rather it would propel them more towards depression and result in more bankruptcies. If there would be internal policies of the country according to its own ground facts, then they would be more helpful. Privatization is not the solution; instead there must be market competition so that the best would tackle the system. There should be an institutional infrastructure from top to bottom, which would definitely be helpful in boosting the economy. If every country suffering from recession adapts these measures, it will definitely get out of it without much damage to the economy (Stiglitz. What I Learned at the World Economic Crisis. 2000). In the reply to all of above mentioned accusation s made on IMF, Kenneth Rogoff, the Economic Counsellor and Director of the Research Department at IMF, came up with a comprehensive set of answers in his article â€Å"The IMF strikes back†. He said that there has been a debate on the competency of IMF staff that they are incapable and 3rd class students at their times, and also that IMF staff is careless and irresponsible that they don’

Environmental Law, Air Pollution Permits Essay Example | Topics and Well Written Essays - 500 words

Environmental Law, Air Pollution Permits - Essay Example Whenever a directive relating to emission principles or other requirements is adopted, it provides for the compliance with standards no later than the specified date (Theodore, 2008). Cap and trade is an ecological policy tool that delivers results with an obligatory cap on emissions while providing flexibility on how they comply. Successful cap and trade programs reward efficiency, innovation and environmental responsibility without infringing on economic growth. Examples of cap and trade programs consist of the acid rain program and the budget training program. This program is also known as emissions trading. These two programs differ in several ways. They include, the cap and trade program involves the purchasing of emission credits while the bubble program entails the controlled emissions with breaking any of the agreements incurs heavy fines. The use of emission trading has enhanced the achievement of environmental goals. Some skeptics have suggested that emissions’ trading has become an avenue for evading environmental requirements, while the bubble program enhances the achievement of environmental goals (Schaltegger, 2010). A stationary source is the basis that discharges more amounts of pollutants other than those defined by the Environmental Agency that protects the environment. This organization is in charge of regulating and monitoring of pollution. New Source Performance Standards define the amount of pollutants allowed by certain sources. A stationary source of air pollution is any fixed emitter of air pollutants. They include power plants, petroleum refineries and petrochemical plants (Reitze, 2005). Mobile source air pollution is any form of air pollution emitted by equipment that can be moved from one location to another. They include motor vehicles, airplanes, locomotives and other engine driven machines. Most of these pollutants contribute to environmental degradation and have a harmful

Woolworths Case Study Draft Essay Example for Free

Woolworths Case Study Draft Essay Part 1: Goodwill and Discontinued Operations a) Carrying value of goodwill 24 June 2012 The carrying value of goodwill in Woolworth’s consolidated financial statements was $3221.8 Million (M) at 24 June 2012. This figure is included within ‘intangible assets’ on the consolidated balance sheet and exact amount is disclosed in the Note 11 of Notes to consolidated financial statements (Woolworths 2012, p 126). b) Movements in carrying value of goodwill The carrying value of goodwill at the beginning of the period was $3227.7M (Woolworths 2012, p 126). An additional $42.1M was recognised throughout the year due to additional acquisition of businesses, with less . 5M for disposals and $0.7M for other expenses. Woolworths also recognised an impairment loss of $70.6M for the year. There was also an effect of movements in foreign exchange rates of $24.8M, which resulted in a carrying amount of $3221.8million at the end of the period (Woolworths 2012, p 126). c) Impairment loss on goodwill i) Impairment loss on Goodwill at 24 June 2012 was $70.6M. ii) Woolworth’s accounting policy with respect to impairment testing of goodwill is consistent with AASB 139 Intangible Assets. Note 11 (Woolworths 2012, p 126) specifically states that intangible assets (such as goodwill) with indefinite useful lives are tested for impairment annually and when there is indication that the asset may be impaired, the impairment loss is recognised when the carrying amount exceeds the recoverable amount. Recoverable amount is further defined to be the higher of fair value less cost to sell and value in use. iii) Impairment loss on goodwill was a result of Woolworth’s announcement to restructure and divest the Consumer Electronics Business. The amount is also disclosed as ‘discontinued operations’ in Note 33 (Woolworths 2012, p 96) for $366.2M. AASB 5.32 defined discontinued operations to be a part of an entity that represents a separate line, or part, of business or geographical area or subsidiary acquired exclusively for resale that had been disposed or classified as held for sale. A separate line item from continuing operations is required as a single figure disclosed in statement of comprehensive income or Notes. iv) The fair value less costs to sell figure of $420M (Woolworths 2012, p 174) includes impairment loss, restructuring provisions relating to goodwill, inventory, plant property and equipment, and lease exit costs. Since the impairment loss attributed to goodwill was $70.6M. Hence (420-70.6M) = $349.4M is attributable to fair value losses related to net  assets. Since held for sale assets disclosed in the Balance sheet (Woolworths 2012, p 99) is $376.7M, the net assets prior recognising the loss would have approximately been (349.4+376.7M) $726.1M, assuming that transaction costs and lease exit costs are negligible. v) The Dick Smith Electronics brand and stores were sold for $20M (Janda 2012). As the held for sale assets was recognised to be $376.7M, the net loss Woolworths would recognise is (376.7-20) $356.7M in the 2012-2013 financial period. Part 2: Investments in controlled entities a) Woolworths Limited group structure b) Non-controlling interest The carrying dollar value of the non-controlling interest (NCI) in Woolworths Limited as at 24 June 2012 was $258.1 million (Woolworths 2012, p 103). This NCI is the dollar amount of the combined equity interests in the parent companys subsidiaries not owned by the parent. When interviewed in 2013 Professor Chris Nobes confirmed that the figure also represented the profits made by NCI’s that have not yet been allocated to them. The respective NCI for the Woolworths Limited group applies to the external equity interests held in Woolworths Limiteds subsidiaries of ALH Group Pty Ltd, Australian Independent Retailers Pty Ltd, Bergam Pty Limited, Hydrox Holdings Pty Ltd and Statewide Independent Wholesalers Limited (Woolworths 2012, p 164-167). Woolworths Limiteds annual report is not useful for non-controlling shareholders. The reason for this is the information regarding NCI is aggregated as it combines all the information from separate subsidiaries with NCIs into combined figures which cannot be separated by a shareholder. It may then be argued that information regarding NCI should be more detailed however when interviewed in 2013 Professor Chris Nobes suggested that non-controlling shareholders should only be interested in the reports of their subsidiary as they are more detailed. Fortunately there are separate financial statements available for the subsidiaries with non-controlling interests. The reason for this is that the class action, ASIC Class Order 98/1418, exempting some subsidiaries from reporting requirements only pertains to wholly-owned subsidiaries (Woolworths 2012, p. 168). Therefore separate financial statements are available for subsidiaries of Woolworths Limited that have non-controlling interests. c) AASB 3.19 The Australian Accounting Standards Board (AASB) (2010, para 19) gives controlling entities a choice between measuring the non-controlling interest (NCI) using the 100% method or the proportionate method. The proportionate method does not assign goodwill to the NCI as it relates to the subsidiarys net identifiable assets. In comparison the 100% method requires the non-controlling interest to be measured at its fair value which includes goodwill. One reason an entity may prefer to use the proportionate method is that it does not require a calculation of fair value for the NCI. The calculation of fair value for the NCI may be difficult in circumstances where an active market does not exist. Using Woolworths Limiteds annual report we can gather information relating to which method they chose to use. Their significant accounting policies relating to goodwill state that goodwill represents the difference between the cost of the acquisition and the fair  value of the net identifiable assets acquired (Woolworths Limited 2012, p 108). Therefore this policy describes the same process for identifying goodwill as the process used in the proportionate method and it may be concluded that Woolworths is using the proportionate method. The issues regarding the choice between the two methods are interesting. The choice seems to be more beneficial for the parent entity rather than the NCI as a company such as Woolworths Limited may choose to consistently use the proportionate method. This may misrepresent the value of the NCI to be lower as this method does not have a goodwill component for the NCI which the 100% method often has. Therefore the disclosures under the proportionate method made by Woolworths Limited regarding the NCI values could be undervalued. When interviewed in 2013 Professor Chris Nobes suggested that the choice between the two methods may affect comparability of financial statements. This point is reiterated by the International Accounting Standards Board (2012, para BC210). A further issue according to the International Accounting Standards Board (2012, para BC213) is that the 100% method is more expensive to use which is one key reason for the inclusion of the proportionate method. Using all these arguments one can see that there are many perspectives about which method is better and whether a choice should have been included in the standard. Still we should not be too concerned as Professor Chris Nobes confirms in his 2013 interview that not many business acquisitions have NCI components or they have an insignificant NCI component and therefore the issue of choice under AASB 3.19 is small. Part 3: Segment note a) Reportable segments Woolworths (2012) has identified five reportable segments related to continuing operations according to AASB 8.13. Each reporting segment is managed separately due to the varying products and services they offer, as well as the requirement of ‘different technology and marketing strategies’ (Woolworths 2012, p 119) of each business unit. The reportable segments are split into two categories of Retail Operations and Hotels, with the former comprising of Australian Food Liquor, New Zealand Supermarkets, Petrol and Big W. As at 24 June 2012, the Australian Food Liquor segment comprised of 872 Australian supermarkets, totalling approximately 6.52% of total EBIT, and 160 Dan Murphy Liquor stores (Woolworths 2012). The Woolworths convenience liquor businesses; BWS and Woolworths Liquor are also included within the segment. This segment relies heavily on consumer confidence levels as the bulk of the sales stems from general groceries found at the supermarket as an alternative to fast food outlets that offer more affordable meal options. Similarly, the New Zealand Supermarkets segment specialises in the ‘procurement of Food and Liquor and products for resale to customers in New Zealand’ (Woolworths 2012, p 119). The ‘Countdown’ supermarkets operate in the same way as the Woolworths supermarkets in Australia, with a total of 161 supermarkets opened across the country as at June 24 2012. In the Petrol segment, the ‘procurement of Petroleum products for resale to customers in Australia’ (Woolworths 2012, p 119) is categorised through the Woolworths/Caltex alliance sites. This segment, coupled with the Big W segment, ; the ‘procurement of discount general merchandise products for resale to customers in Australia’ (Woolworths 2012, p 119) round off the reportable retail operations segments as the smallest, bearing not as big influence as the supermarket segments in relation to the group. Furthermore, the hotels segment is heavily affiliated with the liquor stores and supermarkets, as they provide leisure and hospitality services including alcohol and food, as well as gaming and accommodation. There are 294 hotel venues in operation as at June 24 2012, with Dan Murphy’s and BWS stores affiliated with over 500 hotels in total. b) Investment analysis When determining the ‘better’ investment between Woolworths Limited and Wesfarmers Limited amidst volatilities in the New Zealand economy and Australian groceries, liquor and petrol sectors, it is important not to make direct comparisons between the two companies encompassing different segment disclosure methods despite the compliance with AASB 8. Woolworths has identified New Zealand Supermarkets as a reportable segment, presenting comprehensive revenue data including other operating revenue and inter-segment revenue. Contrastingly, Wesfarmers does not comply with AASB 8.23 a) and b) by only disclosing the New Zealand revenue by geographical location. Nevertheless, assuming that the sales to customers was used by both companies, the following revenue calculations were calculated since the previous year: Comparability between the competing companies becomes increasingly difficult when analysing the investment in relation to the volatile groceries, liquor and petrol sectors. Whilst Woolworths identified the Australian Food Liquor and Petrol business units as different reportable segments, Wesfarmers grouped this financial information under ‘Coles’. The information regarding the allocation of revenues between operating units for Wesfarmers is not provided, hampering an ethical investing choice for external users. Despite the reporting issues, a revenue analysis was conducted in order to determine the most profitable company. Since the Coles segment was determined by a sum of undisclosed food, liquor, hotels, convenience and petrol data, the following analysis used Woolworths as a sum of its same divisions: Though abiding by AASB 8, Wesfarmers disclosed as little information as possible. It is clear that Wesfarmers possesses a fear of disclosure, and would rather present aggregated data in order to hide potential information  about risk, losses and debt levels for a particular Company 2012 $A revenue (millions) 2011 $A revenue (millions) $A change (millions) % change Woolworths 4301.8 4110.5 191.3 4.654% Wesfarmers 1283 1174 109 9.2845% Company Segment Revenue 2012 (millions) Segment Revenue 2011 (millions) Segment EBIT 2012 (millions) Segment EBIT 2011 (millions) % change in segment Revenue % change in segment EBIT Woolworths 45,815.6 43,478.4 3140 2980.2 5.34% 5.36% Coles 34,117 32,073 1356 1166 6.373% 16.3% segment. However, when removing segment reporting variability between the two companies, it is clear that greater growth opportunities exists for Wesfarmers, and is therefore the recommended investment. c) AASB 8 non-disclosures i) Despite clear disclosure of revenue for its reportable segments, Woolworths did not disclose its segment assets and segment liabilities. Therefore, it is assumed that the company did not comply with AASB 8.21 b), where information about segment assets and liabilities was not disclosed. However, AASB 8.23 states that ‘an entity shall report a measure of liabilities for each reportable segment if such an amount is regularly provided to the chief operating decision maker’ (AASB 2010, p 15). Similarly, this extends to the non-disclosure of segment assets according to AASB 25: ‘only those assets that are included in the measures of the segment’s assets that are used by the chief operating decision maker shall be reported for that segment’. Here it is agreed that the CODM of Woolworths does not believe the risk and opportunities of these items are important, thus the non-disclosure in the segment reports. ii) Whilst Woolworths was able to disaggregate the diverse aspects of their total business, Wesfarmers aggregated the majority of their core business operation within the ‘Coles’ segment. It is clear that Wesfarmers does not comply with AASB 8.20; by not enabling users to ‘evaluate the nature and financial effects of the business activities in which it engages’ (AASB 2010, p 14). However, AASB 8.22 b) states that an entity shall disclose ‘the types of products and services from which each reportable segment derives its revenues’ (AASB 2010, p 15). It is clear that Wesfarmers abide by this standard by disclosing the components of the Coles segment, instead of the revenue figures generated from each segment. d) ACCC investigation i) Acts of ‘unconscionable conduct’ such as high bargaining strength for Woolworths and Wesfarmers resulting in demands for extra payments, penalties and threat to suppliers that products will be removed from shelves (Rolfe 2013) would be highly financially beneficial to the two groups as they are significantly lowering the costs of supplies, and thus allowing opportunity to increase profit margins. This is further evidenced in Coles’ 15% increase in pre-tax earnings in 6 months (Rolfe 2013) and a 24% increase in pretax earnings for Wesfarmers despite the same level of stock. The two groups also demonstrate significant market power through ‘interesting’ competitive methods (Kidd 2013) of purchasing each  other’s profitable stores as the purchases show the ‘significant financial strength’ (ACCC 2013) of the business. ii) Coles and Woolworths can minimise disclosures as to hide ‘unconscionable conduct’ and ‘misuse of market power’ by not disclosing costs of supplies in their segment notes. AASB 8 requires a ‘management approach’ to be adopted where information used by the ‘chief operating decision maker’ internally for segment evaluation is disclosed (AASB 8.5b). This allows great  flexibility for management to aggregate figures into the disclosed segments which Woolworths had divided into geographical and operational segments. The aggregated figures disclosed are summarised and does not disclose any information about cost of supplies (Woolworths 2012, p 119). In fact, only revenues attributable to each segment is reported. Australian Food and Liquor segment reported $37,681.4M revenue, which depicts a substantially larger segment relative to New Zealand Supermarkets, Petrol, Big W and Hotels, which average at $5000M each. iii) Since Woolworths’ business in Australia is significantly larger than other segments, from the perspective of consumer groups, it would be beneficial to further divide the Australian Food and Liquor segment into State segments, for example. Currently, Australia has 872 stores, New Zealand has 161 stores and that NSW, QLD, VIC all have larger number of stores than New Zealand, it would be beneficial to further dissect the segments into regional groups.

Retention of Employees in Call Centres

Retention of Employees in Call Centres Personal computers Chapter 1 INTRODUCTION In the 21st century every child or adult have their own personal computers and ways of communication have been made easier with the help of email, mobile phones and faxes. These are adopted from Information Technology (IT) industries. The main concern of IT industries is to make life easy for the people. Information Technology can be defined as the branch of engineering that deals with the use of computers and telecommunications to retrieve and store transit information. (Wisegeek, N.D.) Call centres are a part of the IT industries, which is the most blooming sector and the role of these call centres is to make life easy to customers. Call centres are the upcoming field of employment for youngsters in Information Technology. Recruitment to get into a BPO (Business Process Organization) is done on the basis of qualification and good communication skills. BPOs are the fastest growing segments in Information Technology Enabled Services (ITES). These BPOs are striving out a new exposure of the westernized working environment that could lead to a few problems in other countries. Although it has a good side by providing a good pay and a better life style for the individuals, on the other side there are still some diplomatic problems that could be identified. Most researches are done on stress, physical and psychological problems that are faced by the employees. An article in the journal, An Exploration of Occupational Hazards in BPO industry, states, Majority of employees were found to have physical health, socialization and stress related problems due to their job. (Vashistha, 2008) Competition is more in todays world and organizations are trying to build a competitive advantage through more employees who are often challenged. These individuals try to be the best in their respected fields and give their best for the organization. As the competition between organizations increases the competition for the individuals also increase. The IT industry is one of the leading industries in the world and every company needs an IT section that plays a vital role as it controls most of the organization. As it is this is the most wanted sector in every organization, the pay for employees is also expected to be high. In an IT sector, there are a number of employees who although start as freshers and will expect to get a better income as the years of experience increase (Employee Engagement Report 2008 Published May 2008). India has become the hub to start IT industries in the world. India is one of the developing countries and allows foreigners to commence large MNCs as it will reduce the unemployment level and would help the educated to get immediate jobs after education. Most global organizations have always preferred outsourcing Call centres in India. The reason to it would be that India has the second most English speaking population after the USA. There are various other reasons such as skilled labour, educated workforce, etc. Indias large number of educated workforce will not reduce, as there is always been an increasing number of students graduating every year. It is difficult to take the analysis of the entire country as is too broad and vast to cover. There are many IT companies in India; Chennai is a part of Southern India that consists of many call centres. New IT companies emerge every week and a few get closed too. E.g. Call centres in Chennai have become very popular within students and graduates, who have just completed their course. They are given a reasonable pay as fresh employees, in course of time only a few employees stick to the organization and most employees take it as a fill in job or they shift to another company because they are paid higher than its previous employer. The following section will outline how the dissertation will be structured. This will include the following: the research question, research objectives, scope, methodology, benefits and justification. A good dissertation will attempt to answer the research question and will provide a conclusion based on both secondary and primary information. Research purpose This dissertation will help us to find out the retention of employees in IT industry (Call centres) by considering a MNC in Chennai (India), (Sutherland). This large MNC (Multi National Companies) would be used as a case in this research. Below are a few key issues that will be addressed in the dissertation process: To find out ways to improve strategies in retaining employees in call centres. To study the various reasons and the need for jumping to different organisationis it only money or Is Hierarchal Phenomenon the cause of employees to shift? Dissertation Aim The purpose of doing a research is to answer the proposed research questions in a dissertation. The research questions will articulate the research problem giving various findings and suggestions. The following are the research questions for this dissertation; these questions will help the researcher to get valid information of the employees and the HR team in the organization. Information from the HR team would give the researcher suggestions and methods based on retention strategies. Does the organisation take any steps to retain their staff? Why is the retention of an employee, a hectic problem in an IT (Call centre) than any other sector? The aim of the dissertation is to critically assess and evaluate HR strategies used in Indian call centres, in specific to improve staff retention rates. Research Objectives: The research objectives are subjected to the purpose of the research; these objectives give an outline of a dissertation. The main objectives in this dissertation are: To carry out a critical review of the literature on staff retention To identify and assess reasons for poor retention rates in the IT industry. To identify and evaluate strategies to improve employee retention rates in the IT industry. To provide conclusions based on both secondary and primary evidence To make relevant recommendations for improving employee retention rates based on the conclusions arrived at. Benefits of the research: The benefits of the research help in giving the company a better understanding of the employee status. E.g. do employees want to quit the job and shift to other companies? This research would help the organisation to identify key issues faced by employees in terms of retention that will enable them to improve their retention rates. Employee retention is a large cost to some companies and by improving retention rates, it can be argued that costs can be controlled and which in turn will improve the effectiveness of the organisation. India is a developing country and IT is a major source for all MNCs. The research would consist of a case study on an IT company. The scope in this research is referred only with respect to the place chosen for the research (India). The scope of an organisation is dependable on geographic location and the culture of the people. Scope depends on the people and the location of the organisation, such that the scope in India for Biotechnology is less when compa red to U.S. More problems can arise due to the involvement of different cultures in one organisation. The rationale of my research will provide an analysis for human resource planning on employee retention in the IT industry. This will also help to identify the HR practices and whether these can be improved. This dissertation will consist of a detailed research and analysis on IT Company chosen (Located in Chennai, India). Background to the company Sutherland is a BPO that is operating in Chennai (India), it was first established in New York by Rochester in the year 1986. The branch in Chennai was opened in the year 2000 and was the first offshore facility to be opened in India. Many other branches were opened in course of time in different countries such as Canada, Mexico Bulgaria and Philippines. Sutherland employs 24,000 professionals offering rich services from its 24/7 delivery centres globally (Sutherland, 2009). Sutherland won the award; Employer of the year in 2009. They state that their employees are given the best of training to excel in their field, either in terms of business methodologies or technology. Sutherland offers front office and back office services that provide customers a better service. CHAPTER 2 Review of literature Employee retention: Carsen, 2005 states that employee retention refers to the possible number of employees that stay around for a given duration of time. In simple words employee retention could be defined as a process in which the employees are encouraged and motivated to stay with the organization. Employee retention is important and beneficial for the organization. This dissertation deals with call centres, which is a part of the IT industry. Call centres are defined as specialized organizational units providing telephone-based customer services (Kleemann Matuschek, 2002, p.41). Call centres are a part of the IT sector and are of two types and they are outbound and inbound call centres. They usually operate 24/7 a week i.e. 365 days a year. (Marr Neely, 2004). IMPORTANCE OF EMPLOYEE RETENTION Employee retention plays a vital role in every organization. Mobley, 1982 states that employee turnover may be important to some organizations and a few individuals. From the organizational perspective employee turnover can represent a significant cost in terms of recruiting, training, socialization and disruption, as well as a variety of indirect costs. There are many reasons for an employee to leave an organization and it could be due to age, length of service, organizational sector size, occupational group and geographic location. The problems that arise of poor retention should be assessed within the norms of a given external labour market. (Evans 2001) Models and Theories on employee retention: There is a reason for companies to retain their top most employees. There are several models that are being followed in retaining the top most employees. There are few common hiring models that are being used by organizations for employee retention. Each has its own advantage and all serve the purpose to get hold of maximum employee retention. The following are the models, which are being used commonly. The classic model- Core employees. The above model works best with senior management, where one would require a persons full time work and attention. This is best suitable for core activities within the organization and proprietary activities such as trade secret within the organization. Many organizations do make the mistake by assuming that core employee model is the only retention model and the organization tries to fit in all jobs within it. It is important for an organization to understand and follow the hiring models appropriately. Flexible work This type of model usually involves in sharing a job within the family. This model best fits in call centres as in this industry continuity is not mush required. On the whole this model cannot work for short shift works; for example; an advertising team launching a new advertisement cannot offer job sharing-posts, as the continuity of the job is very much required. Job sharing is a success in certain cases such as when there is no much need of individual continuity with customers or with a third party and when the degree of interaction is low between the employee and the consumer. This type of model makes employees feel at home and have very less probability in them leaving the job, as they are comfortable with it and it usually works within families. Free agents Many educated individuals in the IT industry do not like to work full time for a particular organization as these employees enjoy working as part-timers in more than one organization, these type of employees are called free agents. This is the next step to flexible work with respect to job satisfaction. These types of free agents are not given a usual salary but they are paid on their results that they produce. This model is not business orientated but it is project orientated and it attracts the employee to do the job as it a likely interest. These employees usually stay with the organization only if they are recognized for their work. Outsourcing The above three models not only explains the different types of employees in an organization but also explains how to retain employees according to the type of sector that is best suitable for the individual, the question arises only when the organization gets an employee from outside to do the job of the organization. These kinds of employees are taken only for a specific duration by different organizations or individuals. This model best works with low value transaction, low-tech uncomplicated activities and non-critical activities. Many organizations have concluded that it is not possible to motivate and train employees for specified jobs, so they agree with outsourcing. (McKeown, 2002) Svyantek McChrystal, 2007, p.225, shows in his book, a new model of retention, which is very different from the above models. In this model he states employees retain the jobs because they are self-concept-job fit and an experienced meaningful work. Self-concept-job fit is a method in which the human relations professionals input the meaningful work in employees. Horgans Roberts, 2000 have stated that the future should focus into the concept of self-concept-job fit either in existing or after recruiting employee. The above models are different from each other and each of them fits best for different kinds of organizations. The best suitable model must be used in order to retain their employees and get high job performance from them. Though we cannot satisfy all individual needs there are certain general factors that we can get rid of so that the employees who are working, feel at home. After one executes a type of model into an organization it is important that the employees are satisfied with the type of job that an individual is doing. Job satisfaction is related to employee retention and for an employee to retain in the organization the individual must be satisfied but the job. Job Satisfaction. Job satisfaction is very important to all employees and it is defined as the extent to which a person derives pleasure from a job (Muchinsky, 1993, p. 290). Locke (1969 as cited in Friday Friday, 2003, p. 429) defines job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of ones job. Job satisfaction may be one of the most ideal characters for the employees to work in an organization. As job satisfaction is the most vital key for an employee to stay with an organization for a long-term relation. Spector (1997, p.5) comments, Job satisfaction is the degree to which people like their jobs. Attitudes towards job satisfaction differ between employees and may change in the course of time. A number of researchers have done research on job satisfaction and each researcher has given a unique definition for job satisfaction. Agho, Muller and Price (1992) stated that job satisfaction is the extent to which an employee likes the job. Ashp (2008, p. 323) states Job satisfaction is important to retention; although the relationship may be direct or indirect. With Employee satisfaction, an organization deals with employees opinions and work process such as workload distribution, schedule (work timings) schedule and flexibility and internal communications. But the frequently asked question by everyone; Are we satisfied with the job that we are doing. Most say that Job satisfaction in an organization is not a problem but a symptom within the organization. However one can describe job satisfaction can go up and down by the hour independently of the ones works performance. Mullins states, Job satisfaction is necessary in order to achieve a high level of motivation and job performance(Mullin 2007, p. 277). It is not possible for low performance employees to get high job satisfaction. A report published on May 2008 states that there is a clear correlation between employee engagement and employee retention, the writer states that 85% of engaged employees were indicating that they plan to stay with their employer through 2008. The report states that an effective employee retention strategy is based on employee engagement. (Blessing White, 2008) Theories on job satisfaction: Job satisfaction can be defined as ones attitude towards ones job. Job satisfaction pays much relation with retention as it is the attitude that the person gains with the job attained and this makes the employee decide whether to stay or not (Weiss, 2002). There are several theories on job satisfaction a few of them are listed below. Affect theory Lockes Range of Affect Theory (1976) is the famous theory of job satisfaction in which the theory gives an explanation of what one wants from the job. The theory gives views of the dissatisfaction level and satisfaction level of an employee working. The theory states the facet of work, for e.g. the degree of autonomy of position decides the employee to stay or leave. If an individual were satisfied with the job, then the individual would give his best in the job he is doing in the organization. Dispositional theory This is a basic theory that explains the nature of similar identities such as two twins are alike to think the same but in process they tend to end up with different results. Hence job satisfaction for each employee is quite different. This theory was narrowed down by Judge (1992) by his model called the Core self evaluation model, where in the theory states the higher levels of self esteem and self efficacy would result in high job satisfaction levels. Two-factor theory (Motivator hygiene theory) This theory has taken two variables (Satisfiers and Dissatisfiers) and the theory states that factors causing these two variables are different and it is these factors that are responsible for an individuals satisfaction or dissatisfaction of the job. Satisfiers or motivators are satisfied with their job in presence or absence of a working condition corresponding to the higher levels of Maslows hierarchy of needs. And the dissatisfiers or hygiene factors, which correspond to the lower levels of Maslows hierarchy, are not satisfied with the job when they are adequate or in an inadequate working condition. (Ellis, 2005) Job characteristics model Hackman and Oldham introduced the Job characteristics model that is used widely to study the job characteristics and job outcomes along with job satisfaction. This model derives and states that there are five characteristics; i.e. skill, task, significance, autonomy, and finally feedback. These characteristics combine to give three physiological states; experienced meaningfulness, experienced responsibility for outcomes and knowledge of the actual results that influence job satisfaction and motivation. This framework of five characteristics can be combined to form Motivation Potential Score (MPS). (Hackman Oldham 1976) Ones attitude towards ones job is defined as job satisfaction. These theories cannot change the attitude of the individual but can help the individual to get settled with the job. Evans (1998, p. 19) states, Job satisfaction increases with age, job values remain constant with age and job reward increase with age. Certain factors usually affect an individuals job and this will affect the willingness of the individual to carry on working. E.g., in call centres, high stress is a factor that affects employees performance; it is because of this factor that most employees may not be satisfied with their jobs. It is important that the organization take necessary steps to solve the problem else many employees would leave the organization. Factors affecting employee retention: There are several factors that affect the growth and development of an individuals carrier. If an employee cannot see his future ahead in the organization, there are a number of reasons for him to leave the organization. As these factors can affect the employees work profile, personal growths and dreams, training and development which consists of communication skills, technical skills, procedure improvement skills and skills from special projects. As this dissertation deals with Information Technology (IT) let us consider the factors that affect the employees working in Call-centres. An article by Krishnan Jagadeesan G. on Employee Satisfaction in Knowledge Industry shows the factors that affect employees and the cause of turnover in IT industries (Call centres). He states that surveys have revealed that 42.35% were found working at odd times which were the main causes for high turnover and stress disorders. In terms of job satisfaction and retention rates, while the future of the BPO industry appears bleak unless suitable changes like job rotation and intellectual pursuit in the job content are brought about, the lookout in the manufacturing and the IT sectors are promising. (Krishnan, 2008) The most common factors that affects retention of employees is: Age Length of service Industry sector Organization size Occupational group Geographic location Gender A survey done by CIPD (2006) on Employee attitudes and engagement of employees in UK shows the factors responsible for employees to leave the organization, such as older employees are engaged more than younger employees, women are equally engaged with men, management of the organization, leadership and communication, job satisfaction, length of service, stress and involvement. In this survey, the results show that a lot of stress is given to the employees and this is due to the absence of employees and the pressure from senior employees. This survey will be done to analyse few of the researchers findings. Employee retention strategy: Retention strategies are less effective than recruitment and training strategies. Case study agencies have also agreed with the same on an industry survey. The findings of retention activities are consistent with literature and it is identified that retention is a weak link in the employment cycle. Retention strategies that all organizations include are employee engagement, employee orientation and employee recognition (Davis, 2002, p.41). Each of these employee strategies helps the employee to connect with a goal in the organization. Researchers have done research and are doing research on how to retain employees for the company one is working for. The below are the findings from an article on the web which show the ways in retaining the employees. 60 years of research have shown that only research-based and theory-supported approaches will help in improving employee engagement, as employee engagement will improve retention strategies, by offering compliments, such as the best employee of the month, giving prizes and suggestion boxed. Short-term gifts or prizes such as the above do not help the employee to stay with the organization for long. The responsibility taken to create the change and implementing it will assure improved understanding and support from the employees in all aspects. Loyalty and commitment are significance to the employees working in an organization. Action oriented approaches will help the organization in order to move forward quickly. As this would bring an organization with best development practices to effectively build a high retention culture (Employee Retention Strategies, N.D.). Employees play an important role in every organization and are responsible for the growth of the organization; hence it is important that the employers retain their employees. The above findings describe a few strategies on how to retain employees. It is found that Employee Retention is not given much importance when comparing with recruitment and training processes. The above text states that employee engagement is related with employee retention, change in retention strategy will improve employee engagement. These findings will help the researcher in building a strong questionnaire as the previous researches have already showed good results. Keeping these results aside it would be easier to attain the research goal, as the path would be specific with no variation in between. It is only by research new strategies are found and changes are made in existing strategies to satisfy employees. These findings would give the researcher more space in finding the problems in deep, apart from the regular ones. In this dissertation, Sutherland (a call centre) is taken as the case study to find out and improve the retention strategies that are being followed with reference to the ancestral methods. Few common strategies on employee retention are Retention focused recruitment. Retention focused orientation. Job sculpting Retention focused Managing Retention focused Career support Work life balance measures Retention focused rewards Retention focused communication. The above are few strategies that are commonly used by organizations to retain employees by giving them high level of job satisfaction. As this dissertation is concerned with the IT sector let us see in detail the retention strategies that are used in IT (call centres) for retaining the employees. As this dissertation consists of a case study of a call centre, the researcher can examine what strategies could be used for retaining employee in this sector. An article published on the Internet shows a few strategies on how to retain the employees in a call centre. The job satisfaction of the employee will result in the performance of the employee which will give the employee a better working environment and henceforth which will result in customer satisfaction and productivity. A few ways of satisfying employees include: Recruit people who value work. Clarify expectations. Provide good and specific job training. Reward the employees for high performance. The above are few key elements that used to satisfy employees in the IT industry. There could be more elements that can satisfy employees and help the organization my retaining the employees. This research would help in finding more ways to satisfy employees so that they do not have to leave the organization. Interviews and questionnaires with the lower level and top-level of the organization will help attaining the research purpose and meet the research objectives. The findings from the questionnaire would be used to frame the structure of the interview. The interview will be taken with an agent, team leader and an HR team member of the organization. The Review of Literature in this dissertation helps to give an understanding of what is meant by employee retention and the existing models and concepts that being used such as strategies and techniques. Theories on job satisfaction helped the researcher in finding out the importance of job satisfaction with employee retention. Existing research-based theories on retention strategies were included so that the researcher will be able compare the primary findings with it. It would also be useful to find out, whether the existing strategies found by researchers are sufficient to maintain employee retention or changes should be made to the theories. These existing theories on employee retention, job satisfaction and retention strategies would give the researcher abundant satisfaction and confidence in moving towards the research as all the aspects of retention have been covered. Theories and models used in the review of literature gives a brief idea of the strategies that are being used in organizations and could be compared to one of the existing models. The contents in the review of literature could be compared to the case study companies to find the changes that are necessary and why does it need it. The researcher concludes by stating that the Review of Literature helps to achieve the aim of the dissertation in this research. CHAPTER 3 Research Methodology Clough and Nutbrown, 2007, p.5 states research is the investigation of an idea, subject or topic for a purpose. Research is used to investigate a topic or a theory in depth to get a better understanding in detail. The term research is a way of describing systematic investigation of a theory or area of activity. Although all research cannot be measured, a few can be scientifically measured or data collected and can be analysed to identify differences. Approach to the research Deductive and Inductive approach There are two types of approaches in doing a research, i.e. deductive and inductive methods. It depends on the researcher whether to choose a deductive approach or inductive approach. In deductive approach, the researcher develops a theory and designs a research strategy that analyses the hypothesis and in inductive approach, the researcher collects data from by various methods of research and end up with the hypothesis based on the data analysis. Deductive approach involves the improvement or development of a theory that is subjected to tests. Nwokah et al., 2009, p.4, states, Laws present the basis of explanation, allow the anticipation of phenomena, predict their occurrence and therefore fore permit them to be controlled. 5 stages in which deductive approach will progress. Deducing a hypothesis from a theory. Exposing the hypothesis in operational terms, which propose a relationship between two specific concepts or variables. Testing this operational hypothesis. Examine the outcome obtained from the inquiry. If necessary modifying the theory in the light of the findings.(Saunders et al., 2007, p. 117) Inductive approach is opposite to deductive approach; inductive approach starts with the collection of data that it is added to form a theory or hypothesis. The following is an inductive approach for analysis for a qualitative evaluation data is described. The reasons to use an inductive approach are (a) it compresses textual data into a summary format (b) provide links within the research objectives and findings that are derived from the data and (c) a framework can be developed of the structure of processes that are evident in the data (Thomas, 2006). The inductive approach provides an easy systematic set of procedures for analyzing qualitative data that can produce reliable and valid findings. The inductive approach is not as strong as some other analytic strategies for theory or model development, it does provide a simple and straightforward approach for deriving findings in the context of focused evaluation questions. Many evaluators are likely to use the inductive approach, as it is less complicated than using other approaches to qualitative data analysis (Schutt, 2006). Research philosophy The type of method used in this research Retention of Employees in Call Centres Retention of Employees in Call Centres Personal computers Chapter 1 INTRODUCTION In the 21st century every child or adult have their own personal computers and ways of communication have been made easier with the help of email, mobile phones and faxes. These are adopted from Information Technology (IT) industries. The main concern of IT industries is to make life easy for the people. Information Technology can be defined as the branch of engineering that deals with the use of computers and telecommunications to retrieve and store transit information. (Wisegeek, N.D.) Call centres are a part of the IT industries, which is the most blooming sector and the role of these call centres is to make life easy to customers. Call centres are the upcoming field of employment for youngsters in Information Technology. Recruitment to get into a BPO (Business Process Organization) is done on the basis of qualification and good communication skills. BPOs are the fastest growing segments in Information Technology Enabled Services (ITES). These BPOs are striving out a new exposure of the westernized working environment that could lead to a few problems in other countries. Although it has a good side by providing a good pay and a better life style for the individuals, on the other side there are still some diplomatic problems that could be identified. Most researches are done on stress, physical and psychological problems that are faced by the employees. An article in the journal, An Exploration of Occupational Hazards in BPO industry, states, Majority of employees were found to have physical health, socialization and stress related problems due to their job. (Vashistha, 2008) Competition is more in todays world and organizations are trying to build a competitive advantage through more employees who are often challenged. These individuals try to be the best in their respected fields and give their best for the organization. As the competition between organizations increases the competition for the individuals also increase. The IT industry is one of the leading industries in the world and every company needs an IT section that plays a vital role as it controls most of the organization. As it is this is the most wanted sector in every organization, the pay for employees is also expected to be high. In an IT sector, there are a number of employees who although start as freshers and will expect to get a better income as the years of experience increase (Employee Engagement Report 2008 Published May 2008). India has become the hub to start IT industries in the world. India is one of the developing countries and allows foreigners to commence large MNCs as it will reduce the unemployment level and would help the educated to get immediate jobs after education. Most global organizations have always preferred outsourcing Call centres in India. The reason to it would be that India has the second most English speaking population after the USA. There are various other reasons such as skilled labour, educated workforce, etc. Indias large number of educated workforce will not reduce, as there is always been an increasing number of students graduating every year. It is difficult to take the analysis of the entire country as is too broad and vast to cover. There are many IT companies in India; Chennai is a part of Southern India that consists of many call centres. New IT companies emerge every week and a few get closed too. E.g. Call centres in Chennai have become very popular within students and graduates, who have just completed their course. They are given a reasonable pay as fresh employees, in course of time only a few employees stick to the organization and most employees take it as a fill in job or they shift to another company because they are paid higher than its previous employer. The following section will outline how the dissertation will be structured. This will include the following: the research question, research objectives, scope, methodology, benefits and justification. A good dissertation will attempt to answer the research question and will provide a conclusion based on both secondary and primary information. Research purpose This dissertation will help us to find out the retention of employees in IT industry (Call centres) by considering a MNC in Chennai (India), (Sutherland). This large MNC (Multi National Companies) would be used as a case in this research. Below are a few key issues that will be addressed in the dissertation process: To find out ways to improve strategies in retaining employees in call centres. To study the various reasons and the need for jumping to different organisationis it only money or Is Hierarchal Phenomenon the cause of employees to shift? Dissertation Aim The purpose of doing a research is to answer the proposed research questions in a dissertation. The research questions will articulate the research problem giving various findings and suggestions. The following are the research questions for this dissertation; these questions will help the researcher to get valid information of the employees and the HR team in the organization. Information from the HR team would give the researcher suggestions and methods based on retention strategies. Does the organisation take any steps to retain their staff? Why is the retention of an employee, a hectic problem in an IT (Call centre) than any other sector? The aim of the dissertation is to critically assess and evaluate HR strategies used in Indian call centres, in specific to improve staff retention rates. Research Objectives: The research objectives are subjected to the purpose of the research; these objectives give an outline of a dissertation. The main objectives in this dissertation are: To carry out a critical review of the literature on staff retention To identify and assess reasons for poor retention rates in the IT industry. To identify and evaluate strategies to improve employee retention rates in the IT industry. To provide conclusions based on both secondary and primary evidence To make relevant recommendations for improving employee retention rates based on the conclusions arrived at. Benefits of the research: The benefits of the research help in giving the company a better understanding of the employee status. E.g. do employees want to quit the job and shift to other companies? This research would help the organisation to identify key issues faced by employees in terms of retention that will enable them to improve their retention rates. Employee retention is a large cost to some companies and by improving retention rates, it can be argued that costs can be controlled and which in turn will improve the effectiveness of the organisation. India is a developing country and IT is a major source for all MNCs. The research would consist of a case study on an IT company. The scope in this research is referred only with respect to the place chosen for the research (India). The scope of an organisation is dependable on geographic location and the culture of the people. Scope depends on the people and the location of the organisation, such that the scope in India for Biotechnology is less when compa red to U.S. More problems can arise due to the involvement of different cultures in one organisation. The rationale of my research will provide an analysis for human resource planning on employee retention in the IT industry. This will also help to identify the HR practices and whether these can be improved. This dissertation will consist of a detailed research and analysis on IT Company chosen (Located in Chennai, India). Background to the company Sutherland is a BPO that is operating in Chennai (India), it was first established in New York by Rochester in the year 1986. The branch in Chennai was opened in the year 2000 and was the first offshore facility to be opened in India. Many other branches were opened in course of time in different countries such as Canada, Mexico Bulgaria and Philippines. Sutherland employs 24,000 professionals offering rich services from its 24/7 delivery centres globally (Sutherland, 2009). Sutherland won the award; Employer of the year in 2009. They state that their employees are given the best of training to excel in their field, either in terms of business methodologies or technology. Sutherland offers front office and back office services that provide customers a better service. CHAPTER 2 Review of literature Employee retention: Carsen, 2005 states that employee retention refers to the possible number of employees that stay around for a given duration of time. In simple words employee retention could be defined as a process in which the employees are encouraged and motivated to stay with the organization. Employee retention is important and beneficial for the organization. This dissertation deals with call centres, which is a part of the IT industry. Call centres are defined as specialized organizational units providing telephone-based customer services (Kleemann Matuschek, 2002, p.41). Call centres are a part of the IT sector and are of two types and they are outbound and inbound call centres. They usually operate 24/7 a week i.e. 365 days a year. (Marr Neely, 2004). IMPORTANCE OF EMPLOYEE RETENTION Employee retention plays a vital role in every organization. Mobley, 1982 states that employee turnover may be important to some organizations and a few individuals. From the organizational perspective employee turnover can represent a significant cost in terms of recruiting, training, socialization and disruption, as well as a variety of indirect costs. There are many reasons for an employee to leave an organization and it could be due to age, length of service, organizational sector size, occupational group and geographic location. The problems that arise of poor retention should be assessed within the norms of a given external labour market. (Evans 2001) Models and Theories on employee retention: There is a reason for companies to retain their top most employees. There are several models that are being followed in retaining the top most employees. There are few common hiring models that are being used by organizations for employee retention. Each has its own advantage and all serve the purpose to get hold of maximum employee retention. The following are the models, which are being used commonly. The classic model- Core employees. The above model works best with senior management, where one would require a persons full time work and attention. This is best suitable for core activities within the organization and proprietary activities such as trade secret within the organization. Many organizations do make the mistake by assuming that core employee model is the only retention model and the organization tries to fit in all jobs within it. It is important for an organization to understand and follow the hiring models appropriately. Flexible work This type of model usually involves in sharing a job within the family. This model best fits in call centres as in this industry continuity is not mush required. On the whole this model cannot work for short shift works; for example; an advertising team launching a new advertisement cannot offer job sharing-posts, as the continuity of the job is very much required. Job sharing is a success in certain cases such as when there is no much need of individual continuity with customers or with a third party and when the degree of interaction is low between the employee and the consumer. This type of model makes employees feel at home and have very less probability in them leaving the job, as they are comfortable with it and it usually works within families. Free agents Many educated individuals in the IT industry do not like to work full time for a particular organization as these employees enjoy working as part-timers in more than one organization, these type of employees are called free agents. This is the next step to flexible work with respect to job satisfaction. These types of free agents are not given a usual salary but they are paid on their results that they produce. This model is not business orientated but it is project orientated and it attracts the employee to do the job as it a likely interest. These employees usually stay with the organization only if they are recognized for their work. Outsourcing The above three models not only explains the different types of employees in an organization but also explains how to retain employees according to the type of sector that is best suitable for the individual, the question arises only when the organization gets an employee from outside to do the job of the organization. These kinds of employees are taken only for a specific duration by different organizations or individuals. This model best works with low value transaction, low-tech uncomplicated activities and non-critical activities. Many organizations have concluded that it is not possible to motivate and train employees for specified jobs, so they agree with outsourcing. (McKeown, 2002) Svyantek McChrystal, 2007, p.225, shows in his book, a new model of retention, which is very different from the above models. In this model he states employees retain the jobs because they are self-concept-job fit and an experienced meaningful work. Self-concept-job fit is a method in which the human relations professionals input the meaningful work in employees. Horgans Roberts, 2000 have stated that the future should focus into the concept of self-concept-job fit either in existing or after recruiting employee. The above models are different from each other and each of them fits best for different kinds of organizations. The best suitable model must be used in order to retain their employees and get high job performance from them. Though we cannot satisfy all individual needs there are certain general factors that we can get rid of so that the employees who are working, feel at home. After one executes a type of model into an organization it is important that the employees are satisfied with the type of job that an individual is doing. Job satisfaction is related to employee retention and for an employee to retain in the organization the individual must be satisfied but the job. Job Satisfaction. Job satisfaction is very important to all employees and it is defined as the extent to which a person derives pleasure from a job (Muchinsky, 1993, p. 290). Locke (1969 as cited in Friday Friday, 2003, p. 429) defines job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of ones job. Job satisfaction may be one of the most ideal characters for the employees to work in an organization. As job satisfaction is the most vital key for an employee to stay with an organization for a long-term relation. Spector (1997, p.5) comments, Job satisfaction is the degree to which people like their jobs. Attitudes towards job satisfaction differ between employees and may change in the course of time. A number of researchers have done research on job satisfaction and each researcher has given a unique definition for job satisfaction. Agho, Muller and Price (1992) stated that job satisfaction is the extent to which an employee likes the job. Ashp (2008, p. 323) states Job satisfaction is important to retention; although the relationship may be direct or indirect. With Employee satisfaction, an organization deals with employees opinions and work process such as workload distribution, schedule (work timings) schedule and flexibility and internal communications. But the frequently asked question by everyone; Are we satisfied with the job that we are doing. Most say that Job satisfaction in an organization is not a problem but a symptom within the organization. However one can describe job satisfaction can go up and down by the hour independently of the ones works performance. Mullins states, Job satisfaction is necessary in order to achieve a high level of motivation and job performance(Mullin 2007, p. 277). It is not possible for low performance employees to get high job satisfaction. A report published on May 2008 states that there is a clear correlation between employee engagement and employee retention, the writer states that 85% of engaged employees were indicating that they plan to stay with their employer through 2008. The report states that an effective employee retention strategy is based on employee engagement. (Blessing White, 2008) Theories on job satisfaction: Job satisfaction can be defined as ones attitude towards ones job. Job satisfaction pays much relation with retention as it is the attitude that the person gains with the job attained and this makes the employee decide whether to stay or not (Weiss, 2002). There are several theories on job satisfaction a few of them are listed below. Affect theory Lockes Range of Affect Theory (1976) is the famous theory of job satisfaction in which the theory gives an explanation of what one wants from the job. The theory gives views of the dissatisfaction level and satisfaction level of an employee working. The theory states the facet of work, for e.g. the degree of autonomy of position decides the employee to stay or leave. If an individual were satisfied with the job, then the individual would give his best in the job he is doing in the organization. Dispositional theory This is a basic theory that explains the nature of similar identities such as two twins are alike to think the same but in process they tend to end up with different results. Hence job satisfaction for each employee is quite different. This theory was narrowed down by Judge (1992) by his model called the Core self evaluation model, where in the theory states the higher levels of self esteem and self efficacy would result in high job satisfaction levels. Two-factor theory (Motivator hygiene theory) This theory has taken two variables (Satisfiers and Dissatisfiers) and the theory states that factors causing these two variables are different and it is these factors that are responsible for an individuals satisfaction or dissatisfaction of the job. Satisfiers or motivators are satisfied with their job in presence or absence of a working condition corresponding to the higher levels of Maslows hierarchy of needs. And the dissatisfiers or hygiene factors, which correspond to the lower levels of Maslows hierarchy, are not satisfied with the job when they are adequate or in an inadequate working condition. (Ellis, 2005) Job characteristics model Hackman and Oldham introduced the Job characteristics model that is used widely to study the job characteristics and job outcomes along with job satisfaction. This model derives and states that there are five characteristics; i.e. skill, task, significance, autonomy, and finally feedback. These characteristics combine to give three physiological states; experienced meaningfulness, experienced responsibility for outcomes and knowledge of the actual results that influence job satisfaction and motivation. This framework of five characteristics can be combined to form Motivation Potential Score (MPS). (Hackman Oldham 1976) Ones attitude towards ones job is defined as job satisfaction. These theories cannot change the attitude of the individual but can help the individual to get settled with the job. Evans (1998, p. 19) states, Job satisfaction increases with age, job values remain constant with age and job reward increase with age. Certain factors usually affect an individuals job and this will affect the willingness of the individual to carry on working. E.g., in call centres, high stress is a factor that affects employees performance; it is because of this factor that most employees may not be satisfied with their jobs. It is important that the organization take necessary steps to solve the problem else many employees would leave the organization. Factors affecting employee retention: There are several factors that affect the growth and development of an individuals carrier. If an employee cannot see his future ahead in the organization, there are a number of reasons for him to leave the organization. As these factors can affect the employees work profile, personal growths and dreams, training and development which consists of communication skills, technical skills, procedure improvement skills and skills from special projects. As this dissertation deals with Information Technology (IT) let us consider the factors that affect the employees working in Call-centres. An article by Krishnan Jagadeesan G. on Employee Satisfaction in Knowledge Industry shows the factors that affect employees and the cause of turnover in IT industries (Call centres). He states that surveys have revealed that 42.35% were found working at odd times which were the main causes for high turnover and stress disorders. In terms of job satisfaction and retention rates, while the future of the BPO industry appears bleak unless suitable changes like job rotation and intellectual pursuit in the job content are brought about, the lookout in the manufacturing and the IT sectors are promising. (Krishnan, 2008) The most common factors that affects retention of employees is: Age Length of service Industry sector Organization size Occupational group Geographic location Gender A survey done by CIPD (2006) on Employee attitudes and engagement of employees in UK shows the factors responsible for employees to leave the organization, such as older employees are engaged more than younger employees, women are equally engaged with men, management of the organization, leadership and communication, job satisfaction, length of service, stress and involvement. In this survey, the results show that a lot of stress is given to the employees and this is due to the absence of employees and the pressure from senior employees. This survey will be done to analyse few of the researchers findings. Employee retention strategy: Retention strategies are less effective than recruitment and training strategies. Case study agencies have also agreed with the same on an industry survey. The findings of retention activities are consistent with literature and it is identified that retention is a weak link in the employment cycle. Retention strategies that all organizations include are employee engagement, employee orientation and employee recognition (Davis, 2002, p.41). Each of these employee strategies helps the employee to connect with a goal in the organization. Researchers have done research and are doing research on how to retain employees for the company one is working for. The below are the findings from an article on the web which show the ways in retaining the employees. 60 years of research have shown that only research-based and theory-supported approaches will help in improving employee engagement, as employee engagement will improve retention strategies, by offering compliments, such as the best employee of the month, giving prizes and suggestion boxed. Short-term gifts or prizes such as the above do not help the employee to stay with the organization for long. The responsibility taken to create the change and implementing it will assure improved understanding and support from the employees in all aspects. Loyalty and commitment are significance to the employees working in an organization. Action oriented approaches will help the organization in order to move forward quickly. As this would bring an organization with best development practices to effectively build a high retention culture (Employee Retention Strategies, N.D.). Employees play an important role in every organization and are responsible for the growth of the organization; hence it is important that the employers retain their employees. The above findings describe a few strategies on how to retain employees. It is found that Employee Retention is not given much importance when comparing with recruitment and training processes. The above text states that employee engagement is related with employee retention, change in retention strategy will improve employee engagement. These findings will help the researcher in building a strong questionnaire as the previous researches have already showed good results. Keeping these results aside it would be easier to attain the research goal, as the path would be specific with no variation in between. It is only by research new strategies are found and changes are made in existing strategies to satisfy employees. These findings would give the researcher more space in finding the problems in deep, apart from the regular ones. In this dissertation, Sutherland (a call centre) is taken as the case study to find out and improve the retention strategies that are being followed with reference to the ancestral methods. Few common strategies on employee retention are Retention focused recruitment. Retention focused orientation. Job sculpting Retention focused Managing Retention focused Career support Work life balance measures Retention focused rewards Retention focused communication. The above are few strategies that are commonly used by organizations to retain employees by giving them high level of job satisfaction. As this dissertation is concerned with the IT sector let us see in detail the retention strategies that are used in IT (call centres) for retaining the employees. As this dissertation consists of a case study of a call centre, the researcher can examine what strategies could be used for retaining employee in this sector. An article published on the Internet shows a few strategies on how to retain the employees in a call centre. The job satisfaction of the employee will result in the performance of the employee which will give the employee a better working environment and henceforth which will result in customer satisfaction and productivity. A few ways of satisfying employees include: Recruit people who value work. Clarify expectations. Provide good and specific job training. Reward the employees for high performance. The above are few key elements that used to satisfy employees in the IT industry. There could be more elements that can satisfy employees and help the organization my retaining the employees. This research would help in finding more ways to satisfy employees so that they do not have to leave the organization. Interviews and questionnaires with the lower level and top-level of the organization will help attaining the research purpose and meet the research objectives. The findings from the questionnaire would be used to frame the structure of the interview. The interview will be taken with an agent, team leader and an HR team member of the organization. The Review of Literature in this dissertation helps to give an understanding of what is meant by employee retention and the existing models and concepts that being used such as strategies and techniques. Theories on job satisfaction helped the researcher in finding out the importance of job satisfaction with employee retention. Existing research-based theories on retention strategies were included so that the researcher will be able compare the primary findings with it. It would also be useful to find out, whether the existing strategies found by researchers are sufficient to maintain employee retention or changes should be made to the theories. These existing theories on employee retention, job satisfaction and retention strategies would give the researcher abundant satisfaction and confidence in moving towards the research as all the aspects of retention have been covered. Theories and models used in the review of literature gives a brief idea of the strategies that are being used in organizations and could be compared to one of the existing models. The contents in the review of literature could be compared to the case study companies to find the changes that are necessary and why does it need it. The researcher concludes by stating that the Review of Literature helps to achieve the aim of the dissertation in this research. CHAPTER 3 Research Methodology Clough and Nutbrown, 2007, p.5 states research is the investigation of an idea, subject or topic for a purpose. Research is used to investigate a topic or a theory in depth to get a better understanding in detail. The term research is a way of describing systematic investigation of a theory or area of activity. Although all research cannot be measured, a few can be scientifically measured or data collected and can be analysed to identify differences. Approach to the research Deductive and Inductive approach There are two types of approaches in doing a research, i.e. deductive and inductive methods. It depends on the researcher whether to choose a deductive approach or inductive approach. In deductive approach, the researcher develops a theory and designs a research strategy that analyses the hypothesis and in inductive approach, the researcher collects data from by various methods of research and end up with the hypothesis based on the data analysis. Deductive approach involves the improvement or development of a theory that is subjected to tests. Nwokah et al., 2009, p.4, states, Laws present the basis of explanation, allow the anticipation of phenomena, predict their occurrence and therefore fore permit them to be controlled. 5 stages in which deductive approach will progress. Deducing a hypothesis from a theory. Exposing the hypothesis in operational terms, which propose a relationship between two specific concepts or variables. Testing this operational hypothesis. Examine the outcome obtained from the inquiry. If necessary modifying the theory in the light of the findings.(Saunders et al., 2007, p. 117) Inductive approach is opposite to deductive approach; inductive approach starts with the collection of data that it is added to form a theory or hypothesis. The following is an inductive approach for analysis for a qualitative evaluation data is described. The reasons to use an inductive approach are (a) it compresses textual data into a summary format (b) provide links within the research objectives and findings that are derived from the data and (c) a framework can be developed of the structure of processes that are evident in the data (Thomas, 2006). The inductive approach provides an easy systematic set of procedures for analyzing qualitative data that can produce reliable and valid findings. The inductive approach is not as strong as some other analytic strategies for theory or model development, it does provide a simple and straightforward approach for deriving findings in the context of focused evaluation questions. Many evaluators are likely to use the inductive approach, as it is less complicated than using other approaches to qualitative data analysis (Schutt, 2006). Research philosophy The type of method used in this research