A History of the American People

This plan that has been created to increase the level of history education in the United States sounds good. Both books that have been picked out for discussion are excellent choices that describe the history of the United States. In a reading group type of environment, there can many factors that interest the readers. It can all come down to the font of the text or something as simple as the front cover. Based on what the books have to offer though, my recommendation takes into account both parties, the readers and the teachers (being the NCHE). The teacher’s side of the party would want to offer text the accurately describes the history of the United States without leaving important facts that have changed the way the United States has formed. The readers would prefer a book with text that draws their attention and keeps it throughout the whole book’s length. I will go into detail about each book that has been chosen and describe what the main point of the context is. I will first begin with Paul Johnson’s A History of the American People. Johnson begins talking about history in the Preface. Johnson explains how he grew up learning Greek, Roman, and English history. Johnson was never taught about American history while receiving an education, whether it was his family teaching him or Oxford, American history never came up. He began to learn the History of the United States after Oxford. He first began to learn of the history of the United States though his research for his books. He wrote: A History of Christianity, A History of the Jews, Modern Times: the World from the Twenties to the Nineties, and The Birth of the Modern: World Society, 1815-1830. Johnson covers over 400 years of history in his book. He writes in a manner where he aims to make his writing readable, and wants to present the facts fully. Johnson states in the preface that â€Å"Such a fact-filled and lengthy volume as this is bound to contain errors. If readers spot any, I would be grateful if they would write to me at my private address: 29 Newton Road, London W25JR: so that they may be corrected; and if they find any expressions of mine or opinions insupportable, they are welcome to give me their comments so that I may weigh them. † This shows how Johnson is involved in what he writes and is open to change which is what makes a writer. Johnson begins his book stating that â€Å"The creation of the United States is the greatest of all human adventures. No other national story holds such tremendous lessons, for the American people themselves and for the rest of mankind. † This statement is coming from a man who first learned the history of the Greeks, Romans, and the English and then the United States history. This is a bold statement to make as the beginning of the book. It can either continue to attract the audience of the book or push them way because it makes it sound as if the entire book will contain pride in the United States and seem bias. The book is based on three questions that he asks in the first page â€Å"First, can a nation rise above the injustices of its origins and, by its moral purpose and performance, atone alone for them†¦ The second question provides the key to the first. In the process of nation-building, can ideals and altruism-the desire to build the perfect community- be mixed successfully with acquisitiveness and ambition, without which no dynamic society can be built at all?†¦ Thirdly, the Americans originally aimed to build an other-worldly ‘City on a Hill,† but themselves designing a republic of the people, to be a model for the entire planet. Have they made good their audacious claims? Have they indeed proved exemplars for humanity? And will they continue to be so in the new millennium? † Johnson relates the book to those three questions throughout the book and relates his facts with them. Johnsons ends the book having answered the three questions that he presented in the beginning. â€Å"It is appropriate to end this history of the American people on a note of success, because the story of America is essentially one of difficulties being overcome by intelligence and skill, by faith and strength of purpose, by courage and persistence. Johnson finds the Americans are â€Å"problem-solving people† which he argues is shown throughout the history of the United States. Johnson ends the book highly supporting Americans and shows his support. There are many supporters of Paul Johnson’s book. â€Å"Paul Johnson’s A History of the American People is as majestic in its scope as the country it celebrates . His theme is the men and women, prominent and unknown, whose energy, vision, courage and confidence shaped a great nation. It is a compelling antidote to those who regard the future with pessimism. – Henry A. Kissinger. The New York Times Book Review positively reviewed the book, â€Å"Arresting contentions and pieces of fascination oddball information†¦. The book also offers a rare opportunity to witness someone trying to make sense of all 400 years of American history and to discover what ‘tremendous lessons’ it holds for all Americans and ‘the rest of mankind. ’† I understand why Paul Johnson’s A History of the American People made it as a finalist to be taught to the group of Americans in order to increase of knowledge of United States history. The book was even â€Å"dedicated to the people of America— strong, outspoken, intense in their convictions, sometimes wrong-headed but always generous and brave, with a passion for justice no nation has ever matched. Now to explain Howard Zinn’s A People’s History of the United States. This book begins with attracting the audience with the cover. The color chosen for the letters on the cover include blue and red and white which in the present time represent the United States. The title of Howard Zinn’s book includes three keywords, People, History and United States. The three keywords are the central topic of what Howard Zinn talks about in A People’s History of the United States. Unlike Johnson, Howard Zinn jumps straight into facts about the beginning of the history of the United States. Johnson started with his main point in the first page but Howard Zinn begins with the history of Columbus, the Indians, and Human Progress. Howards Zinn’s main point is found on the title which allows him to begin with the history of the United States versus beginning with a opening statement like Paul Johnson did. What Howard Zinn does differently than Paul Johnson is his method of summary. Paul Johnson seems to become more involved in his summaries gives more detail and a certain subject matter and overlooking other events. Howard Zinn writes a short summary on his events and talks a little about everything. Howard Zinn gives the history of the United States without sympathizing for those who were negatively affected and does not set out the real loser and winner. † My point is not to grieve for the victims and denounce the executioners. Those tears, not anger, cast into the past, deplete our moral energy for the present. And the lines are not always clear. In the long run, the oppressor is also a victim. In the short run (and so far, human history has consisted only of short runs), the victims, themselves desperate and tainted with the culture that oppresses them, turn on other victims. † Howard Zinn will does not want make it sound as if a certain group won in the past and will not explain the failures which is what historians now call history. Howard Zinn explains this to his readers before continuing on with the book. He warns the readers of his style of writing and explains that he will not manipulate facts to seem other then they should be. Howard Zinn writes towards the ending of the book on the title. â€Å"As for the subtitle of this book, it is not quite accurate; a â€Å"people’s history† promises more than any one person can fulfill, and it is the most difficult kind of history to recapture. I call it that anyway because, with all limitations, it is a history disrespectful of governments and respectful of people’s movements of resistance.

Burundi Music Essay

Every individual is inherently unique from one another because of many factors. Their individual uniqueness could be in terms of their personality, beliefs, lifestyle and others. Nevertheless, despite these differences, individuals still feel a sense of belongingness because they find themselves part of a certain group that shares things that are common among them. The concept of culture plays an important role in establishing ties among individuals of a particular group, community, or even a nation. This is due to the fact that culture mirrors the way of life of the people. It symbolizes the heritage of a group of people, which could be seen through the art of music as well as the instruments that they use in order to produce their unique sounds. In relation to this, the country of Burundi also has their unique flair for music that describes the very culture that these people have. The country of Burundi or officially known as the Republic of Burundi is among the smallest and most densely populated territories in African continent. Burundi is a small landlocked country in Central Africa wherein it is surrounded by other countries including Tanzania, the Democratic Republic of Congo, and Rwanda. The country is also situated just south of the equator. Bujumbura is the capital of the country. This city has a population of about 600,000 that is located at the western Burundi’s Great Rift Valley on the shores of Lake Tanganyika (Africa Travelling, 2000). The population of the country is originally composed of the Twa Pygmies of the forests, which was later joined by the Hutu agriculturists. After the 14th century, the Tutsis who were characterized as war-like and reared long-horn cattle. As time passes by, the Tutsis were able to dominate the society of the country and have established feudal obligations between the farmers and cattle owners. The authority of the Tutsis created more conflict when Germany and Belgium gained possession of the territory and acquired leadership indirectly through the Tutsis. For the span of several centuries, the Tutsi Royalty held the seat of power in the country wherein they provided organized leadership as well as a rich dynastic culture. However, after the Second World War majority of the Hutus insisted that they should be given greater participation in the affairs of the country. Because of this, the royal family failed to show their ability to rule as they cannot properly handle the demands of the Hutus. The downfall of the royal family paved the way for the country to be under the central authority of the military and police (Travel Documents Systems, 2009). Most scholars who studied the Burundian culture found out that the royal court has a huge influence in the country’s culture. Their cultural heritage is centered on music and dance that gave reverence to the virtues of kingship. They also held numerous festivals wherein the drummers of Burundi had the most captivating presence. The dances and elaborate ceremonies are usually performed with royal drums. Drumming is regarded as a vital aspect of the Burundian culture. For more than forty years, the world renowned Royal Drummers of Burundi are recognized for their traditional drumming styles. They used native drums such as: â€Å"amashako†, â€Å"ibishikiso†, and â€Å"ikiranya†. The performances of this percussion ensemble are usually part of ceremonies like births, funerals, and the coronations of their Kings, which they called as â€Å"mwami† The â€Å"karyenda† drums that the band also uses, are sacred in Burundi. These drums symbolize the mwami and regeneration as well as fertility. The drums use by the Royal Drummers of Burundi came from hollowed tree trunks and covered by animal skin. There are also other drums that are used like the â€Å"Inkiranya† that serves as the central drum and the Amashako which is responsible in giving a continuous beat as well as the Ibishikiso that follows the rhythm of the Inkiranya (Maps of World, 2009). The performance of the Royal Drummers also stands for the music heritage of its people. The way in which they play these various drums has been the same for centuries because the techniques and traditions have been passed on from generation to generation. Members of the ensemble take turns in playing the drums and dancing throughout the performance. The drummers start the show by balancing the heavy drums on their heads, at the same time singing and playing. There are also some extra members that hold ornamental shields and spears. Their purpose is to lead the procession with their dance (Maps of World, 2009). The unique and long-standing musical heritage of Burundi is not only seen in drumming but also in their songs. Burundian gives utmost importance to the family, which is why during their gatherings they have the â€Å"imuyino† songs. Imuyino songs have a short refrain and a strong beat, which usually include improvised verses when sung. On the other hand, another type song, the â€Å"indirimbo† is more passive as compared with the imuyino. The indirimbo is sung by a single singer or a small group. Distinction in the gender roles in their society is also reflected in their music. Men sing the â€Å"kwishongora†, which is a rhythmic song that is characterized with shouts and trills. Women sing the â€Å"bilito†, which is a more sentimental music (Stanford, 2007). Their music shows men as more authoritative and responsible with decision-making while women are more emotional and has the duty of child rearing. Burundian music is also known for its â€Å"whispered singing. † This is sung at a low pitch in order for the accompaniment of the instruments to be heard more. The instruments used in singing are the â€Å"inanga†, a hollow wooden bowl with six to eight strings stretched over it; the â€Å"idono†, a one string fiddle; the â€Å"ikihusehama†, a clarinet-like woodwind; and the â€Å"ikimbe†, a linguaphone (Stanford, 2007). The cultural heritage of Burundi is indeed exceptional due to the fact that it is rooted in their history and it mirrors their values and way of life. Nevertheless, the arts and humanities of the country especially its music and dance have not been given due attention in order for it to flourish more. The current situation of the country that is often plagued with internal conflict among its various tribes, as well as some disagreements with its neighbor countries made life very difficult in Burundi. Arts and humanities have been taken for granted because of more pressing issues like the security and welfare of the Burundian citizens. References Africa Travelling. (2000). Bujumbura – Culture. Retrieved February 10, 2009, from http://www. africatravelling. net/burundi/bujumbura/bujumbura_culture. htm. Maps of World. (2009). Royal Drummers of Burundi. Retrieved February 10, 2009, from http://www. mapsofworld. com/burundi/culture/royal-drummers. html. Stanford, E. (2007). Culture of Burundi. Retrieved February 10, 2009, from http://www. everyculture. com/Bo-Co/Burundi. html. Travel Document Systems. (2009). Burundi Africa: Culture. Retrieved February 10, 2009, from http://www. traveldocs. com/bi/culture. htm.

Apush Dbq American Revolution

In reaction to the Tea Act, one of the taxes placed on imported goods to America, the New York Sons of Liberty wrote several resolutions to protest against it. These resolutions were signed by all different social classes, which signifies a change in society, because while in Britain only the wealthy and educated were permitted to participate in governmental choices, a very broad spectrum of society was able to be an active participant in how they wanted their government to be run. Although the lower class was not necessarily in congress, their ideas were able to represented by the people that they elected to express their ideas. Some who wish to argue the idea that the American Revolution was not a full revolution may bring into light the women of the revolution, and how there was not a huge change for them. Even though their was not an extremely significant change for them, American women were given a multitude of rights that were not given to women in Britain at the time. The women of America were able to go out to war with the men to protect them, and at times even take their place when a man was wounded and could not fulfill his duties on the battlefield. Additionally, they were often left in charge of the business and upholding of the household when their husbands went out to war. In summation, American women played many roles that were not typical of them in that time period; showing a revolutionary new way of thinking that involved women. After the surrender at Yorktown, a cartoon by James Gillray was made as a warning to the British that since they were able to defeat the British once, they could do it again should they try to overtake America and their freedoms again. While this act in itself was not a revolution, it was representative of the revolutionary ideas in the works of the United States of America. The American Revolution was the transference of power from a monarchial government to that of a representative democracy that was able to reflect the ideas and desires of all free white men of America; indicating that it was in actuality a revolution and not an expeditious rebellion. Apush Dbq American Revolution In reaction to the Tea Act, one of the taxes placed on imported goods to America, the New York Sons of Liberty wrote several resolutions to protest against it. These resolutions were signed by all different social classes, which signifies a change in society, because while in Britain only the wealthy and educated were permitted to participate in governmental choices, a very broad spectrum of society was able to be an active participant in how they wanted their government to be run. Although the lower class was not necessarily in congress, their ideas were able to represented by the people that they elected to express their ideas. Some who wish to argue the idea that the American Revolution was not a full revolution may bring into light the women of the revolution, and how there was not a huge change for them. Even though their was not an extremely significant change for them, American women were given a multitude of rights that were not given to women in Britain at the time. The women of America were able to go out to war with the men to protect them, and at times even take their place when a man was wounded and could not fulfill his duties on the battlefield. Additionally, they were often left in charge of the business and upholding of the household when their husbands went out to war. In summation, American women played many roles that were not typical of them in that time period; showing a revolutionary new way of thinking that involved women. After the surrender at Yorktown, a cartoon by James Gillray was made as a warning to the British that since they were able to defeat the British once, they could do it again should they try to overtake America and their freedoms again. While this act in itself was not a revolution, it was representative of the revolutionary ideas in the works of the United States of America. The American Revolution was the transference of power from a monarchial government to that of a representative democracy that was able to reflect the ideas and desires of all free white men of America; indicating that it was in actuality a revolution and not an expeditious rebellion.

Capital Budgeting Essay Example | Topics and Well Written Essays - 3250 words

Capital Budgeting - Essay Example The management has the option of employing different techniques for evaluating the performance of individual project managers, each of which has its own characteristics. This paper makes a critical analysis of the performance evaluation technique adopted by Brand Neue Corporation and suggests that the project creating positive shareholder value based on Economic Value Added (EVA) calculation is to be accepted for providing overall greater bonus to the project manager. Organizations adopt both financial and non-financial metrics for evaluating the performance of senior managers. Many of the companies use performance measures such as operating income which rely mostly on financial information generated internally within the organization and are therefore are deficient in making the evaluation perfect. In order to overcome this problem firms have started combining both financial and non-financial measures in the form of balanced scorecards specifying different elements such as profitability measures, customer satisfaction measures, internal measures of efficiency, quality and time and innovation measures. The measures incorporate both long-term and short-term horizon in the evaluation. The internal financial measures are normally based on the accounting numbers routinely prepared and reported by the organization. The idea behind evaluating the performance of different projects is not only to judge the profitability of the projects but also to provid e a meaningful basis for compensating and motivating the senior managers. The objective of this paper is to analyze the project performance appraisal techniques adopted by Brand Neue Corporation. This company has been working on three projects, the performance of which was under review. The company was using ROI technique for evaluating the performance of the projects based on which the performance of the project managers was assessed for compensating them. However the evaluation technique was changed to EVA, since the management was convinced that some of the project managers have been accepting or rejecting projects based on their current ROI status in relation to the bonus structure of the firm. One of the projects was in jeopardy as the project evaluation has not considered the cost of clean up to be incurred consequent upon the passing of an environmental legislation. The cleaning cost has made the project unviable. Therefore the management wants to have a relook at the different project performance evaluation techniques. This report will analyze the effectiveness of the capital budgeting and performance evaluation techniques adopted by Brand Neue such as Return on Investment (ROI), Residual Income (RI) and Economic Value Added (EVA) and recommend to the board of directors, the best technique for evaluating the performance of the managers. The report will also substantiate the recommendation of a particular technique and the likely issues the management has to consider in the process of evaluation. This paper is organized to present theoretical aspects of the evaluation techniques, comparison of the performance evaluation under different techniques and finally a recommendation on the technique that the management can adopt. Project Performance Evaluation Techniques The objective of performance evaluation systems is to provide the information feedback loop to the

Failure of democracy in developing countries Research Paper

Failure of democracy in developing countries - Research Paper Example According to the Economist Intelligence Unit’s report on the status of democracies in the world, in 2014, almost 70% developing states’ democratic governing systems were characterized as the â€Å"flawed democracies.† According to the report, deficiencies in the governing process, electoral system, political culture, and civil rights have played a crucial role in failure of democracies developing states. After the end of the World War II, especially during the Cold War era, western powers were engaged in aggressive promotion of democracy in developing and third world countries. During the period, democratic peace theory, which was introduced by Immanuel Kant in 1795, emerged as the widely recognized theory in the global politics and academic spheres. This theory is the core of western promotion campaigns of democracy in developing states. According to the theory, democracy plays a vital role in development of economic stability, security and peace. The theory further claims that democratic states are usually peaceful and comparably less war-oriented. Therefore, it is assumed that the larger the number of democratic states in the world will lead to the less possibility of war and the greater assurance of social and economic stability and peace in the society. On the basic of various scholarly researches and available data, the present paper provides numerous pieces of evidence that w ill cast serious doubts on the validity of the democratic peace theory. In other words, by confuting the major assumptions of democratic peace theory, the paper exposes the failure of democracy in developing world and argues that only the potential spread of democracy won’t lead to more secure world, rather flawed and unmethodical promotion of democracy can lead to more instability and insecurity in the world. Since the period of Cold War, Western powers have

Marketing Plan- Marketing metrics Essay Example | Topics and Well Written Essays - 750 words

Marketing Plan- Marketing metrics - Essay Example This will involve advertising campaigns. There has been significant improvement in database technologies which has made it possible for companies to gain access of customer specific information as well as competitor specific information. GGI should use such information while devising their strategies. They should identify innovative drivers to determine customer value. They need to work on enhancing their brand image since they are a relatively new entrant in the retail market. They have to build a favorable image for their brand in the customer’s mind and find out ways to attract greater number of customers and retain their existing customers. Identified Key Marketing Metrics GGI is planning to open 10 new retail stores in addition to the one it already has. This will involve substantial expenditures which have necessitated the identification of certain key marketing metrics that will enable GGI to justify their marketing expenditure. These marketing metrics will facilitate t hem to formulate strategies to enhance the performance of the company. The company can use a wide range of marketing metrics namely brand value metrics, word of mouth and referral value metrics, acquisition and retention metrics, customer value metrics, multichannel shopping metrics, product return metrics and cross buying and up buying metrics (Peterson & Et. Al., 2009). Other metrics include direct mail response rates and advertising, market share, wallet share, return on investment and customer relationship management (CRM). Recommendation on How GGI Can Improve on the Key Marketing Metrics The brand image is an extremely important intangible asset of a company. The brand image determines the future purchases made by customers, helps in developing customer loyalty and ensures customer retention. Thus, the brand value metrics is very important for GGI since it is a new entrant in the retail industry. The brand value metrics can be improved by creating an ethical and responsible im age for the company and stressing on quality of products. A company can experience considerably high purchases based on word of mouth publicity generated for the company. The predicted referral value score of each customer determines which customers should be targeted during the next period by providing them referral incentives. The word of mouth and referral value metrics and acquisition and retention metrics can be improved by enhancing the experience of the existing customers by providing superior quality products and excellent services. Multichannel shopping metrics can be improved by introducing innovative methods of purchase. The company can introduce online purchases. Improvements in cross buying and up buying metrics depend on special efforts on the part of the sales personnel. The enhanced efforts of the sales personnel makes customer buy products that they may not have planned to purchase earlier. The direct mails should be increased. The advertising should be done through multiple advertising vehicles. Wallet share refers to the amount of business generated from specific customers. Reaching out to wider range of customers by providing a wider range of products helps in increasing wallet share. This will also help in improving the ROI metrics. The CRM should be made more interactive. A closer watch on the competitors’

Business informal report Essay Example | Topics and Well Written Essays - 500 words

Business informal report - Essay Example The society has experienced great loss to the fact that the museum presently does not have a section for Greek mythology. This is due to the fact that the foundation of modern society is mainly based on the Ancient Greek civilization (Dowden 46). The civilization includes Greek literature and mythology (Hard 131). A section on Greek mythology particularly Pelops should be opened. It is true from my analysis that the knowledge about the history of Greek help to realize the need for opening a section of the museum. With the knowledge in history about the Greek mythology the manager will be convinced that Greek mythology is important for the museum. The manager will be convinced that the Greek mythology and its traditions are relevant in today’s time (Dowden 48). Greek mythology at the museum can be presented by the case for Pelops (Edinger & Deborah 152). Many visitors will be interested to know much in Pelop’s life. The birth of Pelop, his apprenticeship to Poseidon, his being served to the gods by his father, his fatal curse, his love among others can be presented in the museum (Edinger & Deborah 153). One of my recommendations that I derived after the study is that the manager should undertake performance and plan for the development of the museum. Besides, the executive manager will regularly need ideas that will attract more visitors to the museum (Hard 129). The knowledgeable about history, geography and science equips individuals on the importance and ways of opening a section of the museum. The manager should also be attentive to suggestions that are put forward logically in order to develop fruitful ideas. Evidently, the creation of a section of the museum can be made possible when the executive manager take an action. The manager should gather more ideas and information on the various ways of creating up the section. I will be very happy to realize that the section

AVA The Talking Elephant Research Paper Example | Topics and Well Written Essays - 1250 words

AVA The Talking Elephant - Research Paper Example AVA The Talking Elephant is prospective business that seeks to market unique medicine dispensers. The medical dispenser is designed for infants and toddlers. Basically, our product is a plastic elephant toy with a built in medical dispenser. It also makes encouraging sound to motivate the children. The whole idea behind this product is the challenge for parents to give medicine to infants and toddlers. The product is designed to make the medicine giving time tear free and horror free for both the parents and the children. Market research is taken as the best tools to identify the best entry behavior of the business that will enable the business to survive avoid the huge competition. This paper seeks to present the best location for the medicine dispenser business to be located and the rationale for it. The paper will also present how the business will be organized internally. It is also imperative to analyze the external market based on PESTEL analysis to identify factors likely to i nfluence the business. This is done with the intention of making the most appropriate decision required for the success of the business. It is fundamental to our business to determine where or in what specific segment and geographic location our business will be conducted. In this context we defined the babies’ accessories segment and Utah State as a part of our Arenas. With some four million babies born in the U.S. every year (Baby Center Website), the babies’ products market seems a very promoting market to start our business at. Our medicine dispenser puts us in the baby care accessories segment. Statistics show that the global sales in this segment will sum-up a total of 66.8 billion dollars by the end of 2017 (See supporting figure no.5 in appendix). Consequently, it will be easier for us to reach one million dollars as revenue in our first year in business (knowing that our initial investment was

AT&T annual report analysis Essay Example | Topics and Well Written Essays - 500 words

AT&T annual report analysis - Essay Example Images in AT&T’s 2013 annual report to show that the company serves people from different multi-ethnic communities.There is a picture of two small children using a computer on a luxurious bed. Behind them is a large Cupboard with books and a world globe on top of it. The children are illuminated by light from the computer; displaying their faces of different colors which means that they come from different racial/ethnic communities. Perhaps they are using internet technology (product) from AT&T. The world globe on top of the cupboard also shows that the company serves people or ethnic communities from different parts of the world. Therefore, these pictures welcome investors from different cultures of the world to invest in the company’s shares and to display global marketability of the company. AT&T’s 2013 annual report effectively uses color to create a clear visual image of the company’s performance for the investors to be convinced that the company is performing well; hence it is worth investing in it. For instance, the title â€Å"To our investors† on page one is written in capital letters and red colors to invite investors to read the message given by the company. In AT&T’s 2013 annual report, figures indicating key financial performance measures of the company are also colored to clearly show the company’s performance to investors in a way that they can see easily and be convinced about the performance. Comparison in growth of earnings between 2012 and 2013 are also shown in red and blue colors on page 7 of AT&T 2013 annual report. AT&T 2013 annual report also uses figures in form of pie charts graphs in order to show the share performance of the company and convince investors to buy shares. For instance, on page two there is a pie chart which shows the revenue growth generated by different lines of business including wireless, voice and wireline data. This helps investors to visualize the performance of the company in terms of

Home Visit with Sallie Mae Fisher Essay Example | Topics and Well Written Essays - 500 words

Home Visit with Sallie Mae Fisher - Essay Example This paper will begin with such dialogue: Nurse: Good Morning, Salle Mae, my name is Jayden Kings and I will be your nurse today. From your history, I can see that you have a history of congestive heart failure, hypertension, and arterial fibrillation. What are the difficulties you are experiencing currently? Sallie Mae: Â  Pleasure to meet you, Jayden Kings. My name is Salle Mae. Currently, I am experiencing a decline in function of daily activities. Nurse: Â  The decline in function of daily activities is because of the acute medication condition at your age. It is common for older patients to experience such changes on their functional status after hospitalization. Do you check your weight? Sallie Mae: yes, I check my weight and I have discovered that I have been gaining weight at a very high rate. Nurse: weight gain is an indication that the body is retaining extra fluid, which is common in patients with congestive heart failure. However, you have to be strict with your diet or monitor your diet closely and ensure that you eliminate salt to prevent the body from retaining too much water. Whom do you live with? Sallie Mae: Â  I live alone since I am recently widowed and the death of my husband affects me so much. My daughter Thelma Jean lives in town, but she works full time and has family issues of her own therefore she cannot support me as well. Nurse: I am sorry for your loss Sallie. I now understand your frequent hospitalization for the past six months since you were hospitalized four times.

Adoption of Information and Communication Technology Essay Example for Free

Adoption of Information and Communication Technology Essay Abstract Nigerian banking industry has become highly ICT-based and is reaping the benefits of technological revolution as evidenced by its application in most of its operations. The objective of this paper was to determine if the Nigerian banks have failed or succeeded in the adoption and use of ICT (see table 2.1). An evaluation of the adoption and use of ICT infrastructures from the periods between years 2000 to 2008 indicated steady growth. It is presumed that as of today, the Nigerian banks may have attained their ICT potentials in their operations, though with some challenges. The paper concludes that the adoption of ICT has influenced the content and quality of banking operations. This paper recommends that investment in information and communication technology should form an important component in the overall strategy of banking operators to ensure effective operations. Keywords: Information, Communication, Technology, Banking Industry. INTRODUCTION Information and Communication Technology (ICT) is the automation of processes, controls, and information production using computers, telecommunications, software and other gadget that ensure smooth and efficient running of activities. It is a term that largely covers the coupling of electronic technology for the information needs of a business at all levels. ICT has surpassed the role of support services or only electronic data processing; its fields of applications are slightly global and unlimited. Its devices especially the Internet and modern computer email facilities have further strengthened early modernizations like the telephone and fax. Other ICT devices include data recognition equipment, factory automation hardware and services, telecomputing and teleconferences using real time and online system (Adeoti, 2005). The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all banks and indeed a prerequisite for local and global competitiveness. Information and Communication Technology (ICT) directly affects how managers decide, how they plan and what products and services are offered in the banking industry. It has continued to change the way banks and their corporate relationships are organized worldwide and the variety of innovative devices available to enhance the speed and quality of service delivery. Harold and Jeff (1995) contend that financial service providers should modify their traditional operating practices to remain viable in the 1990s and the decades that follow. They claim that the most significant shortcoming in the banking industry today is a wide spread failure on the part of senior management in banks to grasp the importance of technology and incorporate it into their strategic plans accordingly. Considering ICT to ensure banks survival, Woherem (2000) claimed that only banks that overhaul the whole of their payment and delivery systems and apply ICT to their operations are likely to survive and prosper in the new millennium. He advices banks to re-examine their service and delivery systems in order to properly position them within the framework of the dictates of the dynamism of information and communication technology. The banking industry has witnessed tremendous changes linked with the developments in ICT over the years. Nigerian banks have undergone changes in their operations since the consolidation process of 2005, when some banks were forced to merge with others to meet Central Bank of Nigeria’s (CBN) recapitalisation fund necessary for operation. Until then, most of the banks operated paper based systems at inception and later adjusted at the dawn of ICT revolution. In recent times, ICT, which basically involves the use of electronic gadgets especially computers for storing, analyzing and distributing data, is having a dramatic influence on almost all aspects of individual lives and that of the national economy the banking sector inclusive. The increasing use of ICT has allowed for integration of different economic units in a spectacular way. This phenomenon is not only applicable to Nigeria but other economies of the world, though the level of their usage may differ. In Nigeria, ICT usage especially in the banking sector, has considerably improved, even though it may not have been as high as those observed for advanced countries (Adeoti, 2005; Adeyemi, 2006). The use of ICT in the banking sector became of interest to this study due to the significant role it plays in the economy. It helps in stimulating economic growth by directing funds to economic agents that need them for productive activities. This function is very vital for any economy that intends to experience meaningful growth because it makes arrangements that bring borrowers and lenders of financial resource together and more efficiently too than if they had to relate directly with one another (Adam, 2005; Ojo, 2007). In essence, the banking sector acts as a bridge that connects lenders and investors in the economy. The bank reforms (especially the recapitalization that specifies a minimum capital base of 25 billion naira for commercial banks), are pursued with a view to making the sector realize its objectives in advancing the economy (CBN, 2006). It is expected that the impact of these reforms will be enhanced with the use of ICT because it will create some form of competitive advantage and improve banking services through accuracy and efficiency in their transactions. In other words, it will change the nature of banks’ services in terms of quality which will culminate in greater service delivery and productivity. This is in tandem with the findings made by Adeoti (2005) that the use of information technology has the ability of improving the competitiveness of Nigerian manufacturing industries. In fact, ICT has had an impact on the Banking Industry as its emergence allows banks to apply credit-scoring techniques to consumer credits, mortgages or credit cards. Hence, products that used to be highly dependent on the banks ´ evaluation of its customers have now become more standardized. Other examples of ICT impact on the Banking Industry include the increased process efficiency, which can reduce costs in banks. This has also produced changes in the structure of bank income. As a result of increased competition that has lowered margins in lending operations (the banks’ traditional business), banks have diversified their sources of income and rely increasingly on income from fees services rather than interest rate spreads. Fees charged for services include typical banking activities like payment transactions, safe custody and account administration. Data storage and retrieval is another wonderful innovation brought into the Banking Industry, where specialized software is engaged to create database to be manipulated by Database Management Software (DBMS). A single database created could be used for several purposes within the system in order to eliminate data redundancy. From the above discourse, this paper seeks to determine whether or not the adoption of ICT enhances the operations of Nigerian banks. To achieve this, the introductory part of this paper after defining what ICT is, clearly established that to remain viable in the current age as financial concerns, banks must adopt ICT. In the succeeding sections, the paper will review relevant literature and identify the types of ICT infrastructures used in Banks; the benefits and effects of ICT on banking industry will be discussed, after which an evaluation of its success or failure will be done; then, the conclusion and recommendations will be made. LITERATURE REVIEW The Concept of ICT and a Perspective in Nigerian Banks Technology can be referred to as the application of knowledge for the execution of a given task. It entails skills and processes necessary for carrying out activities (works) in a given context, while ICT encompasses computer systems, telecommunication, networks, and multimedia applications (Frenzel, 1996). It came into use in the late 1980’s replacing earlier terms like Electronic Data Processing (EDP), Management Information System (MIS), although the latter terms are still in use (Frenzel, 1996). ICT has transcended the role of support services or only electronic data processing; its fields of applications are somewhat global and unlimited. Its devices especially the Internet through the World Wide Web (www) and modern computer email facilities have further strengthened early innovations like the telephone and fax. Other ICT devices include data recognition equipment, factory automation hardware and services, tele-computing and teleconferences using real time and online system (Adeoti, 2005). It is a concept that is having a remarkable effect on almost entire aspects of the human endeavours. This connotes that it involves the application of principles to engage physical component in achieving an intended goal. The convergence of computer and telecommunication after about four decades of applying computers to routine data processing, mainly in information storage and retrieval, has created a new development where information has become the engine of growth around the world. This development has created catch-up opportunities for developing countries such as Nigeria to attain desired levels of development without necessarily ‘reinventing the wheels’ of economic growth. This new technology has brought far-reaching revolution in societies, which has tremendously transformed most business (banking) scenes (Ovia, 2005). With respects to the banks in Nigeria, the first established bank was in 1892 (then African Banking Corporation). However, there was no banking legislation until 1952 when three foreign banks (Bank of British West Africa, Barclays Bank, and British and French Bank) and two indigenous banks (National Bank of Nigeria and African Continental Bank) were established, with a total number of 40 branches (Iganiga, 1998). As at 1988, the Nigerian banking system consisted of the CBN, 42 commercial banks and 24 merchant banks (Iganiga, 1998; Adam, 2005). From 1970, the banking sector grew significantly in terms of number and coverage as a result of increase in economic activities. However, between 1970 and 1985, the growth of the sector was relatively slow due to predominant government regulations but the period 1986-2000 witnessed a phenomenal growth of the sector as a result of the financial deregulation policy, that is the Structural Adjustment Program-SAP of 1986 (Iganiga, 1998). This brought about the liberalization of bank licence leading to a rapid change in the sector. Some of the banks were characterized by paper oriented methods, rather than technological based systems and this resulted to slow pace of their operations vis-à  -vis their employees’ productivity cum general performance. The use of computers and other ICT gadgets in their operations were limited. This was one of the reasons adduced by Ojo (2007) as factors responsible for the Nigerian financial sector malaise. To mitigate the shocks experienced in the system, the Federal Government of Nigeria came up with the financial sector reforms through the CBN. The policy thrust on bank reforms encompasses the sum of the variations that occur in the direction of a comprehensive banking system. The bank reforms agenda, among others, specified a minimum capital base of 25 billion naira for the commercial banks that took effect in December, 2005 (Diamond Bank, 2005; CBN, 2006). This has reduced the number of commercial banks in Nigeria from 89 to 25, which was done via the processes of mergers, acquisition and the stock market (CBN, 2006; Ige, 2007). The major aim was to make Nigerian banks vibrant and resilient, clothed with efficiency and financial strength to absorb possible shocks, thereby instilling public confidence as well as global relevance (Soludo, 2004). ICT and Nigerian Banking Sector The revolution in ICT has made the banking sector changed from the traditional mode of operations to presumably better ways with technological innovation that improves efficiency. ICT can enhance efficiency via its use and in recent times banks have been encouraged by the rapid decline in the price of ICT gadgets. This has perhaps increased the bank level of ICT usage (Ovia, 2005).The increase might have also be attributable to business environment that became relatively flexible to accommodate new forms of technological change as a result of reforms in the country. Banking is becoming highly ICT-based and because of its inter-sectoral link, it appears to be reaping most of the benefits of revolution in technology, as can be seen by its application to almost all areas of its activities (Akinuli, 1999). It has broadened the scope of banking practices and changed the nature of banking as well as the competitive environment in which they operate. A broad opening has been experienced around the world for banks and they are currently taking due advantage of these innovations to provide improved customer services in the face of competition and faster services that enhance productivity (Akinuli, 1999; Ovia,2005). Technological advancement facilitates payments and creates convenient alternatives to cash and cheque for making transactions. Such new practices have led to the development of a truly global, seamless and Internet enabled 24-hour business of banking. ICT revolution both in terms of innovation rate, speedy operation, and cost per unit (portraying reduction in average total and marginal costs) has made a good number of banks embrace the use of ICT infrastructure in their operations (Akinuli, 1999). The technological innovation that is being witnessed currently in the Nigerian banking sector is possible of impacting on the banks’ mode of transactions especially in their payment systems. The payment systems are made feasible by ICT gadgets such as Automated Teller Machine (ATM), Electronic Fund Transfer (EFT), Clearing House Automated Payments (CHAPs), Electronic Purse (E-PURSE), Automated Cheque Sorter (ACS) and Electronic and Transfer at Point of Sale (EFTPOS), which have made transactions easy and convenient. This phenomenon is capable of bringing about speedy operations and enhanced productivity (Adeoti, 2005; Ovia, 2005). Though there may be little interruptions at times due to network failures, which may make customers unable to carry out transactions at that point in time. This little shortcoming is not in any way comparable to the days when banking halls were characterized by long queues mainly as a result of delays in the traditional banking operations. Now banks can provide comprehensive services to their customers by making them access their accounts via online services. These instruments have an edge over the traditional payment instruments because it is safer, more efficient, convenient and cost effective. Before the introduction of these ICT services in the banking industry, manual processing of documents were in use. The bankers were made to cope with this onerous task, and the process made business transactions minimal. Besides several hectic procedures, people had to contend with, banks’ customers were inevitably made to spend several hours in the congested banking halls in carrying out their transactions (Ovia, 2005). The present situation The ICT culture in Nigerian economy can be said to be on the increase. Nigeria is the largest Internet subscriber in Africa with about 100,000 Internet users as at 2000, which was estimated to have grossly increased (Balancing Act, 2007). It has also been observed that Nigeria’s telecommunication density had remarkably increased by more than 2,550% from 0.35% in 1992 to 9.3% in 2004, thereby greatly exceeding the International Telephone Union’s (ITU) benchmark of 1% (Ndukwe, 2005). This phenomenon has helped banks keep substantial information on-line which reduces the cost of marketing their products. Being a competitive tool, it enhances the creation of customized services, reduces the cost of operation, and improves productivity as well as profitability. More interestingly, almost all the banks in Nigeria have internet and on-line real time banking facilities which has improved the scope of Nigerian banking. It has aided transfer of funds from one location to another without any involvement of facial transactions thereby reducing the incidence of loss of funds to stealing and the likes. Another recent one is the telephone banking technology that allows customers to have transactions on their accounts by calling a particular telephone number, through voice activation, and using a tone pad. All of these improve the comfort of banking transactions. THE TYPES OF ICT SUBSTRUCTURES USED IN BANKS Ovia (2005) opined that ICT adoption will improves three critical domains which are efficiency, quality, and transparency in any organisation. Agboola (2001) discussed the dimensions in which automation in the banking industry manifest in Nigeria. They include: Bankers Automated Clearing Services: Automated Payment Systems, Automated Delivery Channels. In the analysis done by Alawode and Kaka (2008) on ICT infrastructures used in Nigerian banks between the periods of 2000 to 2008, found a proportionate increase in adoption and use. The specific ICT infrastructural use within year 2000 to year 2008 include Internet Access; Internal Network; SMS Alert; Substitution of Postal Mail; ICT Security Measures; Authentication and Automated Payment System. The tabular presentation of the ICT structures and the analysis are presented below. This analysis and other recent literature will form the basis for evaluation of ICT adoption success or otherwise, and informs its inclusion in this seminar paper. TABLE 2.1:SURVEY DATA OF SOME SELECTED BANKS IN NIGERIA AND THEIR UPTAKE IN SOME ICT INFRASTRUCTURES Serialnumbers| ICT infrastructures| Percentage of Nigeria Banks that use a particular ICT infrastructure within year2000 to year 2008.| | | 2000 – 2002| 2003 – 2005| 2006 – 2008| 1| Internet Access | 27%| 88%| 91%| 2| Internal Network| Wire based| 68%| 82%| 92%| | | Wireless| 08%| 19%| 28%| 3| SMS Alert| NIL| 22%| 98%| 4| Substitution of Postal mail | 18%| 38%| 88%| 5| ICT Security measures| 62%| 81%| 94%| 6| Authentication| 33%| 76%| 85%| 7| Automated PaymentSystem| 1%| 28%| 87%| Source: Alawode and Kaka (2008) Internet Access: An important indicator of the general uptake of Information and Communication Technology (ICT) in the Banking Industry relates to the use and availability of Internet. Internet access is a precondition for e-Business, as this is the main channel for e-banking. The general availability of Internet allows for the analysis of overall ICT-readiness in the Banking Industry. The Table shows that 91% of Banks studied in Nigeria have access to the internet within year 2006 and 2008, While 27% and 88% from year 2000 to 2002 and from year 2003 to 2005 respectively. The drastic change that occurred from 27% to 88% from year 2000 to 2002 and from year 2003 to 2005 respectively was as the result of ICT awareness competitive products introduced by some the so called â€Å"new generation banks†. Virtually all other banks also braced up to satisfy their customers and there was general improvement in the services and products of Banking Industry. Use of Internal Network: The application of networks is a vital part of an effective ICT-enabled system, which is especially true in the case of banks with a branch network. Local Area Network (LAN) may also be seen as a basic indicator of the minimum infrastructure required to enable companies to conduct e-banking at a substantial level. Wire-based LAN is currently the dominating technology. The survey shows that 92% banks surveyed use wire-based LAN from year 2006 to 2008. The fact that LAN is a relatively low-tech and easily attainable ICT solution, would to some extent explain the wide coverage of this technology from year 2000 to 2008. Wireless LAN is a relatively new technology in the Banking Industry, and is used to permit bank employees to access network resources from nearly any convenient location. The fact that, wireless LAN is relatively new technology accounts for its low percentage uptake in Banking Industry. Use of SMS alert: Instant notification of transactions made was another innovation brought by ICT through the use of smart phone in conjunction with the internet facility in the Banking Industry. Virtually all banks studied in Nigeria use SMS-Alert, except some of the Micro-finance Banks. It was an ICT infrastructure that recorded no patronage between year 2000 and 2002. Substitution of postal mail: The Banking Industry is currently being renewed in many areas. One of these areas relate to the digitalization of formerly paper-based processes. Electronic mail is increasingly being applied for especially non-legal correspondence like account statements, marketing and sales. More than 80% banks surveyed have substituted electronic mail with old postal mail within year 2006 to 2008. This outcome shows that, efficiency gains from electronic mail are yet to be reaped and indicates that the Industry is a bit fragmented in its uptake of electronic mail as means of communication. ICT security measures: The security issue is of special concern in the Banking Industry, as banking is highly based on trust from its customers. Hence, the risk of hackers, denial of service attacks, technological failures, breach of privacy of customer information, and opportunities for fraud created by the anonymity of the parties to electronic transactions all have to be managed. Depending upon its nature and scope, a breach in security can seriously damage public confidence in the stability of a financial institution or of a nations entire banking system. Hence, by introducing the appropriate security measures and putting security concerns at ease, the BI might be able to attract the segments among consumers who previously were not inclined to use e-banking. Furthermore, it is also in the banks’ own interest to improve security, as digital fraud can be costly both in financial losses, and in terms of the damage it does to the brand of the bank in question. Authentication: The common concern among users of e-banking is related to the authentication of users and data connections. The use of digital signatures is not as common as PIN codes or encryption, and reason is the fact that digital signature is relatively new technology. The research even shows that none of the studied banks uses digital signature as the form of authentication, but the up-take in other types of authentication is generally high, up to 85% within the year 2006 and year 2008. Automated Payment System: Devices used in Automated Payment Systems include Automatic Teller Machine (ATM) and Electronic Funds Transfer. ATM still ranked higher in its spread than Electronic Funds Transfer, Low rate of spread of this technology might be due to cost, fear of fraudulent practices and lack of facilities necessary for their operation. But generally speaking, the adoption of Automated Payment System increased dramatically. The table shows the increase from 28% to 87% within the range of 3-years. BENEFITS OF ICT ADOPTION ON BANKING INDUSTRY Many researchers have agreed on some benefits that accrue to ICT adoption and use in the banking industry. These include among others: Enhanced operational efficiency. The use of ICT in the banking industry enhances the operational efficiency of the banks (Madueme, 2009). For example, the use of SMS alert, an ICT infrastructure that recorded no patronage among Nigerian banks between year 2000 and 2002, has presently aided instant notification of transactions. Improved quality of service delivery. Many researchers (Ikechukwu, 2000; Madueme, 2009; Fenuga Oladejo, 2010) confirm that the application of ICT to banking operations has undoubtedly enhances the quality of customer service delivery in the banks. The uses of ICT-based payment systems such as Automatic Teller Machine (ATM) and Electronic Funds Transfer have actually improved the service delivery of Nigerian banks to its customers. For example, a money transfer transaction that used to take me days to transact has been reduced to a matter of few minutes. For a case in point, last week, I sent money to my brother through UBA bank and before I got to the gate after the transaction, I got a call from him confirming that his account was credited through a message alert. Increase in customer satisfaction. This benefit derives from the one above. According to Fenuga and Oladejo (2010), the adoption and use of ICT in the banking industry has increased customers’ satisfaction due to improved quality of banking services. Referring to the above case of personal experience, it is unequivocal that customer satisfaction has markedly increased as a result of adoption and application of ICT in Nigerian banks. Improved profit performance. Another important benefit of the adoption and use of ICT in the banking industry has to do with improved profit margin. Many studies (Baba Harker, 1997; Ikechukwu. 2000; Madueme, 2009; and Oladejo Adereti, 2010) have shown significant and positive correlation between ICT adoption and profitability of organisations. Increase in market shares. When ICT is successfully adopted and applied to banking operations, the overall performance of the banks is improved and this manifest in the corresponding increase in market shares, profitability and other indicators of performance (Oladejo Adereti, 2010). Enhanced competitive advantage. Researches by Ikechukwu (2000) and Oladejo and Adereti, 2010 have lent credence to the fact that application of ICT to the operations of the banks has boosted their operational efficiency and brought about greater competitive advantage in the industry. EFFECTS OF ICT ON BANKING INDUSTRY Agboola (2001) studied the impact of computer automation on the banking services in Lagos and discovered that Electronic Banking has tremendously improved the services of some banks to their customers in Lagos. The study was however restricted to the commercial nerve centre of Nigeria and concentrated on only six banks. He made a comparative analysis between the old and new generation banks and discovered variation in the rate of adoption of the automated devices. Aragba-Akpore (1998) wrote on the application of information technology in Nigerian banks and pointed out that ICT is becoming the backbone of banks’ services regeneration in Nigeria. He cited the Diamond Integrated Banking Services (DIBS) of Diamond Bank Limited and Electronic Smart Card Account (ESCA) of All States Bank Limited as efforts geared towards creating sophistication in the banking sector. Ovia (2000) discovered that banking in Nigeria has increasingly depended on the deployment of Information Communication Technology and that the ICT budget for banking is by far larger than that of any other industry in Nigeria. He contended that On-line system has facilitated Internet banking in Nigeria as evidenced in some of them launching websites. He found also that banks now offer customers the flexibility of operating an account in any branch irrespective of which branch the account is domiciled. Cashless transactions were made possible in our society of today. The mover of the economy (Banking Industry) is now well positioned to meet-up with the new challenges from the costumers, competitors and even from the nation’s economy with right tool in their hand to reach limitless point of success. The Industry is now growing on daily basis with respect to new innovations that are coming out in the world of technology. Evaluation The banking business in Nigeria today can be assessed as being highly ICT based. The analysis of Alawode and Kaka (2008) ICT infrastructures used in some selected banks between year 2000 to year 2008 as earlier presented in table 2.1 clearly indicate the steady growth of ICT application in Nigerian Banks. Internet access usage, for example, rose from 27% between years 2000-2002 to 91% between years 2006-2008. SMS Alert that was nonexistent between the periods of 2000-2002 rose from nowhere to 98% between years 2006-2008. Similarly, Automated Payment System that was barely 1% between years 2000-2002 rose dramatically to 28% in years 2003-2005 and sky rocketed to 87% between years 2006-2008. The research, which provided the above analysis, is over 5 years old now. Considering the rate of growth reported in the analysis, it is obvious that most of the infrastructures may have reached their full potential. Drawing from above background, one could reasonably accept Akinuli’s (1999) viewpoint when he observed then that it appears Nigerian banks were reaping most of the benefits of revolution in technology, as can be seen by its application to almost all areas of its activities. Adeoti (2005), Ovia (2005) and Osabuohein (2008) in separate remarks affirmed the fact that the technological innovation witnessed in Nigerian banking sector is possible of impacting on the bank’s mode of operations especially in their payment systems. It is indeed unequivocal to state that ICT adoption in Nigerian banks has broadened the scope of banking practices and changed the nature of banking as well as the competitive environment in which they operate. Such new practices have led to the development of a truly global, seamless and Internet enabled 24-hour business of banking. In summary, the adoption of ICT in Nigerian banks can be said to be a success though not without some challenges. Challenges The automation of banking operations is really posing challenges to the Consumers, the banks themselves and Regulatory/Supervisory authorities in Nigeria. Among the issues concerned are: Infrastructural deficiencies: It is obvious that the use of ICT in the banking industry require minimum level or basic infrastructure such as electricity, telecommunication and motorable roads. Yet all these remain great challenges even as they feature as manifestos in all political campaigns. Ineffectiveness of telecommunication service providers and epileptic supply of electricity have often times cost people to spend days suffering to recover trapped cards in ATMs. For example, there was a day my friend’s card got trapped for only God knows the reason, but on a Saturday when the banks staff could not be accessed to recover neither the card nor alternatively withdraws money at UBA Aliade road branch. He had to wait until Monday morning to recover his card. Whatever his purpose for wanting to access money must have been defeated. Consumer Awareness and capacity: A major challenge of ICT banking to many illiterate and semi-literate population of the country who reside in rural areas is lack of awareness of how the systems work and their inability to access the services which mostly exist in cities and high populated work areas or institutions. Access to ATM and GSM Telephones: There are inadequate banking facilities to cover for the growing population of Nigerians who can access the services. Many households are unable to afford terminals and all accessories required for operating in today’s banking system. The recent Federal government’s 60 billion naira telephone project for 10 million farmers (Olatunji, 2013) is one exemplification that majority of Nigerians are too poor to afford a telephone, a necessary accessory for accessing ICT banking services. Consumer Protection: Another major challenge of adoption of ICT is the absence of statutory or regulatory provisions to protect the consumer of the products/services. Fraud: So much fraud has been reported within and outside banks due to ICT adoption. The high exposure of the system to fraudsters, hackers and other criminally minded persons who could access, retrieve and utilize confidential information from the system if security measures are weak; to checkmate unauthorized intrusion is another challenge to the authorities. Systems Operational Risks: Bank IT rests on computers and telecommunications which could be susceptible to system failure, internal manipulations and inconsistent regulatory policies (Etim, 2000). Conclusion Concerns about ICT role in attaining effectiveness, efficiency and productivity were raised in the late 1980s. Since then a large number of studies have emerged both at the industry and firm level that have substantially improved our understanding of the relationship between ICT and firm performance. This paper has clearly defined what ICT is and presented a review of relevant literature to aid understanding of the historical antecedents or reforms that necessitated its adoption in Nigerian banks by assessing the benefits and effects, and the journey so far. The paper further evaluated the success of ICT adoption as well as addresses the challenges it has posed to banks, consumers of services and supervising authorities. The paper concludes that the adoption of ICT has influenced the content and quality of banking operations positively. From all indications, ICT presents great potential for business process reengineering of Nigerian Banks. It is imperative for bank management to intensify investment in ICT products to facilitate speed, convenience, and accurate services, or otherwise lose out to their competitors. Recommendation This paper recommends that investment in information and communication technology should form an important component in the overall strategy of banking operators to ensure effective performance. References Adam, J.A. (2005). Banking Sector Reforms: The Policy Challenges of Banks Consolidation in Nigeria. Selected Papers for 46th Annual Conference, Nigerian Economic Society, August 23-25. Adeoti, J.O (2005). Information Technology Investment in Nigerian Manufacturing Industry: The Progress So Far. Selected Papers for the 2004 Annual Conference, Ibadan: Nigerian Economic Society, 213-244. Adeyemi, K.S (2006). Banking Sector Consolidation in Nigeria: Issues and Challenges. Union Digest, 9(34) June (http://www.unionbankng.com/adeyemi.pdf). Agboola, A. A. (2006). Electronic payment systems and Tele-banking services in Nigeria. Journal of Internet Banking and Commerce, 11(3), 112-124. Agboola, A. A. (2001). Impact of Electronic Banking on Customer Services in Lagos, Nigeria. Journal of Economics and Financ, 5(12), 45-73. Akinuli, O.M. (1999). Information Technology in Nigeria’s Banking Industry: Operational Applications, Problems and Future Challenges. CBN Bullion, 23(3), 71-75. Alawode, A. J. and Kaka, E. U. (2008). Information and Communication Technology (ICT) and Banking Industry. Proceedings of the 1st International Technology, Education and Environment Conference, African Society for Scientific Research (ASSR) 673-677. Aragba-Akpore, S. (1998). The Backbone of Banks’ Service Regeneration. Moneywatch, July 22, p23. Baba, P. and Harker, P. (1997). Examining the Contributions of Information Technology towards Productivity in United States Retail Banks. Pennsylvania: Wharton School. Balancing Act, (2007). Balancing Act News Update (http://www.balancingact- africa.com/country_profile.php?id=24). CBN, (2006). Press Release. The Guardian, Vol.22 (9902), January 3, p.11. Diamond Bank, (2005). Banking Industry Report, Strategic Planning Unit, December (http://www.diamondbank.com/public/Banking%20Industry%20Report%20December%202005.pdf). Etim, S. O. (2000). Electronic Banking: The Risks in the Insurance. A Paper Presented at Centre for Insurance Research Luncheon, Lagos, May 23. Fenuga, O. J. and Oladejo, R. K. (2010). The Effect of Electronic Payment on Customer Service Delivery in Nigerian Banks. International Journal of Economic Development Research and Investment, 1(1), 5-16. Frenzel, C.W. (1996). Information Technology Management, Cambridge: Thomson Publishing Company. Harold, B. and Jeff, L. (1995). Don’t Let Technology Pass You By. ABA Banking Journal, 73-81. Iganiga, B.O (1998). Contemporary Issues in Money and the Nigerian Financial System, Lagos: Amfitop Books. Ige, C.S (2007). Reforms in Development. The Reformers, 2(1), 4-16. Ikechukwu, G. (2000). Enhancing the Performance of Banking Operations through Appropriate Information Technology in Nigerian Banking Industry. Ibadan: Spectrum Books. Madueme, I. S. (2009). Impact of information technology on the ptofitability of commercial banks in Nigeria. International Journal of Business and Common Market Studies, 6(12), 112-121. Ojo, J.A.T. (2007). Financial Sector Maladaptation, Resource Curse and Nigeria’s Development Dilemma. Public Lecture, Covenant University, Ota, Ogun State, January 25. Oladejo, M. O. and Adereti, A. S. (2010). Impact of information technology on the performance of microfinance institutions in Ogun state, Nigeria. International Journal of Economic Development Research and Investment, 1(1), 44-55. Olatunji, S. (2013). FG to give rural farmers N60bn cell phones. Punch, January 3, www.punching.com/business/business economy/fg-to-give rural-farmers-n60bn-cell-phones/ O sabuoheien, E. S. C. (2008). ICT and Nigerian Banks Reforms: Analysis of Anticipated Impacts in Selected Banks. Global Journal of Business Research, 2(2), 67-76. Ovia, J. (2000). From Banking Hall to E-Platform. Financial Standard, January 15. P. 6. Ovia, J. (2005), Enhancing the Efficiency of the Payment System in Nigeria. CBN Bullion, 29(1), 8-18. Soludo, C.C. (2004). Consolidating the Nigerian Banking Industry to Meet the Development Challenges of the 21st Century. An Address Delivered to the Special Meeting of the Bankers’ Committee, Abuja, July 6. Woherem, E. W. (2000). Information Technology in the Nigerian Banking Industry. Ibadan: Spectrum.

How does the USA Today Function as Civic Culture Essay Example for Free

How does the USA Today Function as Civic Culture Essay The family is the basic unit of any particular society or community. It is therefore imperative that for the society to exist the family has to be there to produce members into the community. The community or national character any particular country is basically determined by the nature of the family values. An individual is shaped in the early ages by the family. In the contemporary society there are increased diversity changes in the family a characteristic of the many changes in culture, political, economic, social, and psychological and even the environment. The content definition of has not been agreed upon because of the great changes that are so accommodating. In the previous many years the family was considered as the people who are related by blood. This definition based on the kinship ties has been revoked due to the influence of many forms of families which has stripped off the family its actual definition. For instance there can husband and wife who do not have any kinship ties and they go ahead to adopt children. Another case that has changed such a definition of the family based on kinship ties is the increasing number of intermarriage within the context of race or ethnicity. This brings out a mixture of offspring and therefore it is difficult to trace the family bonds based on kinship ties. The issue of who is next to kin is no longer important in the current families. The most common aspect in the current families is the bonding based on mutual understanding. The many changes of husband and wife have been changed by the introduction of lesbianism and gay. These try to go against the grain of opposite gender type of marriage. The concept of marriage has changed from opposite gender type of marriage to a mixture of gay, lesbianism and opposite gender marriages. These are some of the dynamisms that are facing the contemporary families. This paper shall give an indebt analysis of the family, the changes in roles and functions of the families and the general effects of such changes to the contemporary families. A close reference and examples shall be drawn from the US and Mexico, the countries that border each other geographically. The contrasting differences I n family issues shall be pointed out clearly. Family life in the United States The family relationship in the United States has undergone several transformations due to the effect of globalization. Race and ethnicity are the most significant factors in shaping the variety of values, attitudes and behaviour amongst the families in the United States. There are a number of changes in families in the United States. These changes range from political, social, economic, and psychological to spiritual. The social dislocations have given rise to new ideas and values especially there is increased individualism among the members of the community. In the US there increased diversity in the organizational structures. There are many cases of divorce and separation in the United Stated which has grabbed the family the unity and love that is supposed to be enjoyed. Most the single families that are common in the US are as a result of divorce and remarriage due to greater democratization. (Hines Morrison, 2005) Cultural diversity in the US is accounting for the many different types of families that have emerged in the recent past. The United States constitutes almost all races and ethnic groups in the world. For this reason there are diverse cultural values as a resulting of this contact. The factor that there are free intermarriages between these diverse races and ethnic groups has made the US to have diverse cultural values which transcend the native culture. The immigrants who move to the United State try to maintain their native language despite the fact that they are forced to learn the official language of the United States, which is English. The immigrants from Spanish speaking countries (Hispanic) when they move to the United States they try to maintain their languages. The culture of the people is usually transmitted through language and due to the numerous languages in the United States there exists different cultures. This means that there are very many family clusters formed through the sharing of the languages. For instance most of the Hispanic immigrants have formed family clusters in the sides of Florida. The black American speaks a variety of English as they identify themselves as belonging or originating from one family. These disparities have affected the notion of the family because these people are allowed to mix freely with people from different cultures. The concept of the family in the United States is changing even the more during the advent of the green card where people from different pasts acquire citizenship. Many people from different races and ethnic groups have found their way to the US and as such most of them are allowed to move with their families. The nuclear family still remains an ideal source of the society in the United States. The United States families are characterized by the great social stratification. In the United the families are organized according to different classes. Among these classes there are great disparities in terms of economic value. The choice of families has not taken shift from mutual understanding to materials and resources. This has affected relationships from a sociological point of view. This issue of the class is a dominant phenomenon among the families in the United States as those who are rich wants to maintain the status quo. This is done through the inheritance that is passed within the nuclear families. The nuclear families in the United States are created and broken up and then reconstituted. This has led to the decline of family values which consequently affects the family patterns. This diversity in family pattern has been identified as the cause of problems such as violence, crime and drug use in the united state. The parents are usually very busy with their duties (United States, Congress, 1992). The increasing cases of divorce and separation in the United States have a negative effect on maintaining the ideal norms of the nuclear family value. The families that are exposed to values outside the parental domain are likely to deviate from norms. The human rights in the United States are considered fundamental. There is protection of the universal human right which is a recipe to the process of democratization. This the reason why the US government invest huge amount of money in education health and other basic sectors so as to enhance the promotion of the human rights among the citizens. The Family Life in Mexico Most people have preferred to live in Mexico for a variety of reasons such as social, political, economic and even good climatic reasons. Living in Mexico requires one to learn the Spanish language so as to increase effective communication. This is because the families are socialized in the Spanish language. The Mexican people are extremely warm and friendly as they are organized in smaller communities that come from the mutually intelligible families. This means that the socialization process is high since there tow much contact between the families. The family bonds are tightly held together and for this reason there is cultural uniformity. The society per se is integrated under common cultural values through the common language shared. Piped water is relatively inexpensive, but not always potable (drinkable). Decades of under-investment, combined with an attitude of impertinence towards paying water bills, has left Mexicos mains water system in poor condition. As a result, most people purchase bottled water, often in 20L containers. Bottled water is very expensive. Rents in Mexico can be higher than in equivalent-sized US towns or cities if the place is popular or fashionable, particularly places within easy reach of the US border. Mexico has a centralized economy: that is, most of the countrys economic activity revolves around. The Mexican pace of life is relatively slower than in the US Especially when the life in major cities is given consideration. The families in Mexico are closely tied as most of the families have time to attend to their families. There is a high degree of parental responsibility among the families. This transcends to greater heights of good values that the society enjoys. Mexico’s culture has a rich history in a consolidated family religion, people and tradition. The Mexican people are proud of their culture that they keep on passing from one generation to another. This is because there is little infusion of the foreign cultures. The family is the basic unit in Mexico and a cornerstone to the maintenance of the culture. The rate of socialization and interaction among these people is too high. It is a usual phenomenon to meet two or more families meeting for a common interest or for a special event. This part of the family function in Mexico, people in Mexico have free time to visit resort centers for the purpose of relaxation which is not a common phenomenon in the United States, where people are too busy. (Heymann, 2006) The Mexican People are too religious which is a big contrast with the United States where people feel that they are in control; of their own life. A large number of people are Christian and they are usually committed to going to church. When you walk in the Mexican homes it is easy for you to see the religious images. In America people stay a non-religious life thus an effect of religious intermingling that has made it difficult for the people to which religious practice to adopt. Thus they resign from subscribing to any of the religious practice. The social stratification is not prevalent in the Mexican family as it is in the United States; people are seeking for money the Mexican people strive for titles. The professionals in Mexico prefer to be addressed with the titles that they deserve. This is as a result of the traditional emphasis given to the tittles within the family domain. The economic living standards in Mexico are slightly lower than in the United State. There are many poor people in Mexico than in the United States. The impact of these high levels of poverty in Mexico has necessitated the immigration of most Mexican families to the United States in search of better jobs and pay of most illegal immigrants from Mexico have gotten their way into the United States through the Mexican borders. These immigrants have settled in cities such as Florida. Working in the United States gives them better pay. This aspect of brain drain is lowering the general development of the families in Mexico as most of the people move leaving behind other family members Basically the cost of living in Mexico is lower than that of the US particularly for agricultural produce. Other sectors such as transport and communication are also lower in Mexico than I n the United States. Other utilities as electricity are more expensive compared to the United State. Working families in the United States, observing how parents struggled to find a balance between caring for children and earning a decent income. When parents split and one of the parents went from Mexico to the United States and was no longer available to give the necessary care, families suffer. What significantly exacerbates the problem is when the borders are so tight that they prevent families from reuniting. This has been a common phenomenon when the immigrants are not given the opportunity by the America to even visit their families in back home in Mexico. (Poole M. et al, 1993) Globalization of the economy created increased pressure for workers to accept lower labor standards, accept lower wages, longer hours, fewer benefits, and less paid leave. Both Nations likewise feel pressure from economic globalization not to implement family-friendly policies, such as paid leave for illness or when a child is sick, or paid parental leave. And that leaves working families struggling to balance work and their care-giving duties. The globalization process has affected families in both Mexico and United States economy was transforming the relationship between work and care-giving in similar ways everywhere. Globalization has forcing both countries to at a very high pace as far as labor standards and social policies are concerned hence leaving working parents with less and less time to raise their children. Parents work has shifted markedly around the world and that goes for every region. The child rearing process has been left in the hands of maids who offer supportive care while the parents are away working till late hours of the day. Men in particular have been moving away from one place to another in search of better jobs especially in various industries. Globalization has made men and women to work day and night and this has made them move away from their homes to go work in various places. A good example is that of outsourcing where people work in shifts where some work during the day and others at night. Women, likewise, have moved into the paid labor force and away from the home. From the period between 1960 and 2000 the number of women in the labor force went from 26 to 38 percent in America. The percentage of women in the workplace has increased both in the United States and Mexico. This has adversely affected the family care services that were provided by the women while their men were working in various sectors. This is a result of civilization which been brought about by the factors such as education, religion, work, urbanization among others. These factors have changed the various roles that were supposed to be executed by the family so as to prepare an individual to be a responsible member of the society. (Cecil, 1992) What has happened is that the world has seen women get better job opportunities which has assisted then them raise income to cater for their families. The increased number of single parent families has made it possible for the women to struggle to get money for rearing their families. While this is was going on there is also massive urbanization occurring all across the world. Thats not necessarily a bad thing, as people who move from very poor rural areas to urban areas often get better jobs, and become less dependent on, for instance, a good rain to feed their families. (Rowntree, Lewis, Price Wyckoff, 2006). References Hines D. A. , Morrison K. (2005) Family Violence in the United States: Defining, Understanding, and Combating. Sage Publisher. Heymann J. (2006) Forgotten Families: Ending the Growing Crisis Confronting Children and Working Parents in the Global Economy. Oxford University Press Poole M. et al (1993) Family: Changing Families, Changing Times. Allen Unwin publisher. Robinson, Cecil. (1992). No short journeys: The interplay of cultures in the history and Literature of the borderlands. Tucson: University of Arizona Press. Rowntree L. , Lewis M. , Price M. and Wyckoff W. (2006). Diversity amid Globalization: World Regions, Environment, Development. United States, Congress. House America’s (1992) Families: Conditions, Trends, Hopes, and Fears: Family policy. United States, Congress, House publisher.

Non Financial Performance Measures: Summary and Analysis

Non Financial Performance Measures: Summary and Analysis Total quality management and non financial performance measures In order to answer the first, fundamental, question of using non financial performance measure: why should companies use non-financial reporting, it is necessary to look at the relationship between market value and book value. The market value of a company reflects the investors’ perception of the company’s present, and future, value, as manifested by stock prices. The book value, on the other hand, reflects the value of the company as reported in the official balance sheet: assets less liabilities, or net assets. Thus book value represents, in a way, the official company value and is reported to shareholders and the financial community. The market and book values for companies were very close by the end of the 1970s. The picture has, however, changed dramatically, and one estimate from the current level of stock market valuations says that book value now represents on average just around one quarter of the market value (Dutta and Reicheistein, 2005). Other data indicates an even more dramatic change in companies with valuable brands, a reputation for high quality or technical expertise, for example, in individual companies, e.g. Microsoft, the estimated book value portion is around 9%, for SAP around 5%, and for Coca-Cola around 7%. (Daum, 2002) The ratio of book value to market value is often so small that the relevance of the balance sheet to modern has often questionable. It is, of course, crucial to understand the gap between market and book values, as the market value comes from the intangible assets, such as the customer, human resource, partner, and brand assets. In order to understand the gap, there is an ob vious need for relevant and reliable information on these intangible assets, thus non-financial performance measures aim to providing such information to the stakeholders, and in particular, to the present and future investors. Lack of reliable and relevant information on intangible assets implies there is no basis for non-financial reporting, which in turn implies that market values will change over time in a less well-founded way. There is always a certain level of volatility on the stock markets, and the increasing relative importance of intangible, non financial performance measurements that has emerged over the last few decades, in combination with a persistent lack of reliable and relevant information on these assets, and no systematic non-financial reporting, is expected to create an increasing volatility. This is clearly seen, for example, on the trends in the NYSE over the past three decades (Kristensen and Westlund, 2003). It is, naturally, expected that a lack of non financial reporting will imply a significant portion of unnecessary volatility, which is clearly demonstrated by the stock price development for technology stocks (Kristensen and Westlund, 2003). For example, the IT ‘bubble’ to a significant extent was built up by a lack of proper information and analysis of intangible assets in these companies, due to a lack of non financial performance measurement and thus an overvaluing of intangible technology assets, such as AOL’s telecommunications distribution networks at the time of the AOL-Time Warner merger (The Economist, 2002). It is clear that this demonstrates a malfunctioning of the capital markets, causing significant negative consequences by destroying values in the short term, as well as long term. As such, the main purpose of non financial performance measurement is to provide the market investors and analysts with information to verify the present and expected future value of a company. Ultimately, the process of verifying the market value at a certain time will then be more fact based, thus reducing the unnecessary price volatility. In order to accurately achieve this, the key predictors of a company’s future financial performance: revenue, profits and market share, are crucial. Most recent research identifies these predictors as being primarily intangibles, non financial assets, thus explaining why market value today is basically determined by intangible assets. (Kristensen and Westlund, 2003) In particular, indicators related to the customer asset: the size and ‘quality’ of the customer base, the human capital, the brand assets, the value of corporate citizenship, and the firms product quality and expertise, will dominate. If such an indicator is a reas onably stable, strong and sustainable predictor of future financial performance, it should be called a ‘Value Driver’ (Kristensen and Westlund, 2003). Non-financial reporting aims at disclosing information on value drivers, which must be operationalised and transparent and, ideally, verifiable according to new accounting standards in order to become true non financial performance measures. Total quality management (TQM) practices have been implemented by firms interested in enhancing their survival prospects by including quality and continuous improvement in their strategic priorities. As such, they often have to be measured using both financial and non financial measures, as the expertise and cultural aspects of the TQM process are often difficult to measure by purely quantitative, financial means. One of the key measures of the success of TQM is the balanced scorecard (BSC) approach, which appraises both the four key dimensions of firm performance: customers, financial, learning and growth, and also the internal business processes. The main advantage of this is that TQM does not consider employee satisfaction in its search for continuous improvement, but the BSC does consider employee satisfaction. (Hoque, 2003) Therefore, by adopting a BSC a firm that has adopted TQM will overcome this oversight which will in turn increase employee satisfaction and subsequently firm performance. Indeed, in the modern business context, employee satisfaction is key to firm performance, and so the BSC is an important non financial performance measure. TQM’s relentless pursuit of quality demands that firms identify all non-value adding waste in the manufacturing process and implement procedures to eliminate, or at least reduce, such activities. This implies better production planning to limit over-production and excessive inventory and improved product and plant design to eliminate wasteful movement and handling. (Smith, 1997) Substandard items must be eliminated and a changed attitude reinforced which is customer-focused and adopts ‘the next person on the production line is my customer’ approach (Hoque, 2003). The cost of quality is a potentially important component of management accounting systems which may facilitate the implementation of total quality management, despite being difficult to measure in absolute financial terms. The costs of prevention, appraisal and failure are all aspects of the cost of quality, and it is often necessary to use non financial performance measures to assess these. Prevention costs include the costs of plant, product and process planning, preventive maintenance, training and the implementation of statistical process control systems, and appraisal costs include the costs of inspection and testing of both incoming and outgoing materials, and the cost of maintaining and administering appraisal systems and equipment, both of which can be measure financially However, whilst failure costs include, at the internal level, the financial costs of scrap, rework, redesign and safety stocks necessary to provide a buffer against such failure; at the external level they include losses associated with customers, goodwill and reputation, all of which require non financial performance measurements. Analysis of the costs of external failure is increasingly becoming the focus of attention in this area, reflecting the current trend towards increasing customer orientation of management accounting. (Smith, 1997) Quality considerations also extend beyond those focused on the difficult ‘cost of quality’ question, and non financial reporting is useful in providing measures of other aspects of quality, such as the quality of purchased components, equipment failure and maintenance efforts. As a result, it is necessary for TQM practitioners to consider the relationship between the types of targets or benchmarks used in the two main contrasting performance improvement strategies continuous improvement and radical change. (Johnston et al, 2001) hypothesised that the process of target setting and the reward structures adopted would be different between the two strategies, proposing that organisations involved in continuous improvement of a process will base their performance targets on past performance and internal benchmarking, arrived at through consultation and with a mixture of financial and non-financial measurements of targets. However, for processes involving radical change, targets will be based on external benchmarks imposed by senior management, with purely financial targets, and financial rewards for their achievement. However, research showed that financial measurement and reward strategies predominated in both improvement strategies, thus implying that the pot ential benefits of adopting process changes are being constrained by only considering the financial side. However, whilst academic research and other research activities among accounting organisations on intangible assets has so far mainly focused on creating awareness of the significant importance of intangibles on future financial performance, to a lesser extent, research has dealt with the serious information deficiencies related to intangible assets (Hothorn et al, 2005). In particular, the research focus seems to have been on studying the dramatic shift in production functions and asset composition of the economy, rather than the underlying problems associated with measuring intangible assets, especially in cases such as Enron, where derivatives were grossly overvalued (Wilson et al, 2003). This research involves a multitude of research activities, including the macroeconomic theory of growth, as well as empirical studies on individual companies. The growing importance of intangible assets has already been demonstrated, and one rationale behind this development is the fact that the annual United States investments in intangible assets are of approximately the same magnitude as investments in physical assets: approximately $1.2 trillion (Lev, 2001). These activities have clearly led to a rather general acceptance that traditional, financial, accounting-based, information systems fail to provide investors and policy makers with insights on the impact on the economy from intangibles. This is of increasing importance, given that the volatility of stock prices is becoming abnormally high, and this raises many serious consequences, including systematic inefficiency in managerial decisions. The recommendations so far from researchers seem to be voluntary disclosure of information on intangibles, and indeed, some companies now report externally on various aspects of intangible assets, but this happens in a very non-standardised way and seems to be of limited value for investors’ decisions. Consultants, in particular linked to the accounting industry, are empirically analysing causes and consequences of investments in intangible assets, but this research provides only marginal guidelines in identifying best practice for non financial reporting (Kristensen and Westlund, 2003) Different suggestions have been presented by researchers to identify the new research agenda to understand better and manage intangible assets, with Lev (2001), for example, suggesting a focus on research related to organizational structures. The obviously incorrect validation of intangible assets in the cases of Enron and WorldCom (The Economist, 2002), shows that another focus of research mus t be to identify best practice methodology to measure intangible assets, and to measure the main intangible value drivers for future financial performance. Indeed, the sustainability of non financial reporting is completely dependent on how it will be accepted by the stakeholders of the business community: investors, analysts, customers, boards, management, employees, the accounting profession, etc This, in turn, completely depends on the ability and willingness by the accountants to provide a formal verification of the process to generate information, as well as on the information itself. Finally, this in turn depends on the quality of the information: â€Å"Companies must start by first identifying their true value drivers both financial and non-financial within the context of their business model, and by ensuring they have defined the right metrics as well as the measurement methodologies and systems to capture the right information for internal management† (PriceWaterhouseCoopers, 2001). Recognising that the treatment of non financial performance is a key current issue in accountancy, accounting associations have already identified a number of criteria and principles to secure and describe the quality of non-financial information. This process, however, appears far from being finalised, and in particular lacks a focus on the statistical characteristics of the information, and there is also a need for further operationalisation and transparency of the quality principles (Lev, 2001) As a general principle, any verification process should verify that non-financial reporting includes the right choice of information, has the necessary degree of relevance, and that the information provided has a reasonable level of reliability. If these three requirements are not sufficiently fulfilled there is unlikely to be a sustainable future for non financial performance measurement, in TQM or any other business aspect. Further to this, information that does not say anything or very little about future financial performance should not be included in non-financial reporting. All the included information must manifest the so called Value Drivers (Kristensen and Westlund, 2003) and such value drivers should be either directly linked to future financial data, or they could be indirectly linked, through a direct value driver. Thus, relevance should be defined by the existence of verified links to future financial numbers; however this raises a number of pertinent questions to be answered by the accounting profession. Mainly, they would need to decide which financial criteria should primarily be considered to secure relevance; and which future time period is of interest to investors. For the moment, it is probably worthwhile to have a very broad scope here, as this would mean that any financial information of interest could be used and, in addition, the future time period is defined in a very generic way. Of course, it is much more difficult to verify links to financial numbers if the lead time is substantial, and so care should be taken that the data will have a recognised financial impact within a reasonably short period of time. Indeed, whatever financial criterion and time period is chosen, it is crucial to be able to verify a strong enough and stable likely future financial impact from the non financial data. In order to better, and more accountably, measure this, such impacts should be statistically significant according to a standard statistical measurement, written into the accounting standards. However, the question that remains is still whether impacts should also exceed a certain financial level, as well as a statistical level, in order to qualify as a significant non financial value driver. In this context, it is also difficult to decide whether these qualifying criteria should also involve the extent to which a value driver will explain any likely variation in the future financial criterion. There are many potential principles to be found in information theory and statistics that might be used here, such as direct explanatory power (Kristensen and Westlund, 2003), but unfortunately the requirement levels necessary to use these principles are not very easy to determine, and could be open to abuse. In summary, in almost all modern industries, the book value of a company does not reflect the actual market value of the company, due to the increasing importance of branding, technology, knowledge and reputation. Whilst the market and book values were still very close at the end of the 1970s, since then the picture has changed dramatically, with estimates stating that book value now represents just one quarter of the market value. As a result, it is reasonable to conclude that the measurement of intangible, non financial factors is now roughly three times as important to investors as the measurement of financially measured, tangible assets. As the market value comes from intangible assets, like the customer, human resource, partner and brand assets, in order to understand the gap there is an obvious need for relevant and reliable information on these intangible assets, which is best provided by non financial performance measures. In the context of TQM, a large portion of the process improvements seen due to TQM initiatives will not have a definite financial effect; rather they will improve a product’s attractiveness to customers, or improve the efficiency of a firm’s processes. As a result, their primary impact will be difficult to measure by financial measures, and so non financial performance measures will be most relevant. From this, it follows that the accountancy profession needs a new reporting system and also need to define a best practice of measurement for these non financial performance measures, in order to reflect the true value of initiatives such as TQM. This system has a number of requirements, including causality, standardisation, relevance or link to financial results and reliability. The prevailing opinion appears to be that it is time that new reporting systems are introduced and implemented, as the discrepancy between the importance of intangibles and the ability to account for these types of assets constitutes a growing challenge for companies, investors and for society in general. The relevant people, including academics, managers, accountants, practitioners and auditors, should thus come together and formulate a new charter for future reporting of non financial performance measures. References: Daum, J. H. (2002) Intangible Assets or the Art to Create Value Wiley. Dutta, S. and Reicheistein, S. (2005) Stock Price, Earnings, and Book Value in Managerial Performance Measures. Accounting Review; Vol. 80, Issue 4, p. 1069. Hoque, Z. (2003) Total Quality Management and the Balanced Scorecard Approach: A Critical Analysis of their Potential Relationships and Directions for Research. Critical Perspectives on Accounting; Vol. 14, Issue 5, p. 553. Hothorn, T. Leisch, F. Zeileis, A. and Hornik, K. (2005) The Design and Analysis of Benchmark Experiments. Journal of Computational Graphical Statistics; Vol. 14, Issue 3, p. 675. Johnston, R. Fitzgerald, L. Markou, E. and Brignall, S. (2001) Target setting for evolutionary and revolutionary process change. International Journal of Operations Production Management; Vol. 21, Issue 11, p. 1387. Kristensen, K. and Westlund, A. H. (2003) Valid and reliable measurements for sustainable non-financial reporting. Total Quality Management and Business Excellence; Vol. 14, Issue 2, p. 161 Lev, B. (2001) Intangibles: Management, Measurements and Reporting Brookings Institution Press. PriceWaterhouseCoopers (2002) Value reporting, Forecast 2002 Bringing Information out into the Open. Smith, M. (1997) Putting NFIs to work in a balanced scorecard environment. Management Accounting: Magazine for Chartered Management Accountants; Vol. 75, Issue 3, p. 32. The Economist (2002) A steal? Vol. 365, Issue 8296, p. 57. Wilson, A. Key, K. G. and Clark, R. L. (2003) Enron: An In-Depth Analysis Of The Hedging Schemes. Journal of Applied Business Research; Vol. 19, Issue 4, p. 15.