Attaining alignment between it and business - Free Essay Example

Sample details Pages: 20 Words: 6103 Downloads: 7 Date added: 2017/06/26 Category Statistics Essay Did you like this example? 1 Introduction 4.1 BACKGROUND TO THE RESEARCH PROBLEM For almost three decades practitioners, academics, consultants, and research organizations have identified attaining alignment between IT and business as a pervasive problem, Luftman and Kempaiah (2007). Gutierrez,Nawazish,Orozco,Serrano and Yazdouni (2007) add that despite the wide acceptance of strategic alignment (the strategic use of Information Technology), there is no consensus on how to achieve alignment and with few references that detail the process, there is no common agreement on the term alignment. Terminology such as linkage Henderson and Venkatraman (1993) harmony, integrated, linked, and synchronocity Luftman and Kempaiah (2007) have been suggested and used.. Don’t waste time! Our writers will create an original "Attaining alignment between it and business" essay for you Create order Steiner (1979b) points out that there no consensus as to the meaning of strategy in the business world. An example of the definitions which he uses include the following Steiner (1979a): 1. Strategy is that what executives do they that empower the organization. 2. Strategy is the direction the organization takes which is aligned with its purposes and missions. 3. Strategy consists of the important activities necessary to realize these directions. 4. Strategy answers the question: What should the organization be doing to achieve success? 5. Strategy answers the question: What are the means to end? Mintzberg (1994), says that people use strategy in several different ways, the most common being: * Strategy is a plan, a how, a means of getting from here to there. * Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a high end strategy. * Strategy is perspective, that is, vision and direction. * Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets. Porter (1998) states that strategy positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company and that strategy, is the creation of a unique and valuable position, involving a different set of activities, requires that trade-offs be made in competing, to chose what not to do and involves creating fit among a companys activities. Fit has to do with the ways a companys activities interact and reinforce one another. To improve the strategic management of information technology, Henderson and Venkatraman (1993), developed a framework which they called the Strategic Alignment Model (SAM). This model was defined in terms of four fundamental domains of strategic choice namely business strategy, information technology strategy, organizational infrastructure and processes and information technology infrastructure and processes. The model is defined in terms of two fundamental characteristics of strategic management namely the strategic fit (the interrelationship between external and internal components) and functional integration (integration between business and functional domains). Luftman (2001) improved on the Henderson and Venkatraman (1993) SAM model by developing the Strategic Alignment Maturity Model (SAMM). The model measures ITbusiness alignment maturity. Six interrelated components for assessing alignment maturity are identified. These are communications, value, governance, partnership, scope and architecture and skills. The scores an organization achieves for these six components of maturity are then compared to a five-level maturity model to denote the organization IT-business alignment maturity Luftman (2001).The levels range from level one to level five where level five is the highest level of maturity. A higher alignment maturity correlates with higher firm performance measures Luftman (2001). Tying performance measures to strategic goals is a critical step Fonvielle and Carr (2001). A tool to measure performance and to align strategic goals within organisations is the Balanced Scorecard (BSC). The BSC was developed by Kaplan and Norton (1992) to overcome the businesss reliance on financial measures. They contend that reliance on only financial measures does not give a complete overview of the organisations measures. The BSC provided a framework to look at strategy, used for value creation from four different perspectives these being financial, customer, internal business process and innovation and learning Kaplan and Norton (1992).One of the principles recommended by the authors, is that for an organization to be focused on strategy, there needs to be alignment among departments to the strategy of the organisation. The alignment sequence recommended by Kaplan and Norton (2006) starts when the corporate headquarters articulates enterprise value proposition that will create synergies among operating units, support units and external partners. This sequence includes aligning IT strategy with the business strategy. Model Alignment Problems SAM Inability to realize value from IT investments is, in part due to the lack of alignment between business and IT strategies SAMM Alignment is frequently focused only on how IT is aligned with the business and not vice versa, the organisation only sought one method to improve alignment and that there is no effective tool to gauge maturity of IT-business alignment Balanced Scorecard Surveys reveals that the greatest gap occurs in organisation alignment when compared to other strategic management problems 4.1 STATEMENT OF RESEARCH PROBLEM Business and IT strategies at PRASA need to be better aligned. 4.1 What is passenger rail agency of south africa (PRASA)? Appendix A, gives a comprehensive overview of the historical context and the introduction of PRASA taken from the companies business plan. Following is a summary of the key issues PRASA was created by Government to advance its agenda for the transformation of the public transport system into a vibrant, efficient one, As part of its strategy, PRASA (2009), to secure the future of its business, PRASA will focus its resources and energies during the current medium term expenditure framework (METF) on the following three Strategic Priorities: * Service Excellence within Metrorail, Shosholoza Meyl and Autopax * Property and Asset Development, and * Technology Upgrade or Modernization of its key transport systems The key objectives identified by Government in addressing the challenges of passenger rail transport moving forward PRASA (2009) are as follows: * Sustainable passenger rail service delivery; * Improved performance of passenger rail services in terms of the quality and levels of services to passengers; * Improved efficiency in the delivery of services; * Improved effectiveness of asset management; * Effective targeting of subsidies to achieve desired socio-economic transport objectives; * Improved oversight by Government; and * Improved accountability to the users. 4.1 Why prasa? PASSENGER TRANSPORT CHANGE IMPERATIVES 1..1 The Public Transport Challenge After many years of neglect, the existing commuter transport system, inherited from the apartheid past, has reached saturation levels and is unable to satisfy passenger demands while its infrastructure is not able to meet the requirements of a rapidly changing and modern society. The dysfunctional institutional arrangements have meant poor accountability in the provision of public transport services, which were found to be largely disempowering. Governments socio-economic and transport policies could not be supported adequately by such institutional arrangements. The country is seeking to move away from the current commuter-based transport provision into a more integrated public transport system that meets growing and changing passenger demands in an efficient, effective and sustainable manner. The twin challenges for public transport is to simultaneously transform through meaningful integration whilst at the same time enhancing capacity through upgrading and modernization to meet lo ng-term need PRASA (2009). 1..2 Inadequate Passenger Service Provision Passenger rail in South Africa faces many challenges as a result of a long history of inadequate investment in rail rolling stock, infrastructure and operations as well as the loss of appropriate managerial and technical (engineering) skills within the industry. The shortage of such critical skills has a direct negative impact on the delivery of services. In the urbanising metropolitan areas the provision of new rail corridors has not kept pace with the rapidly changing urban landscape resulting in limited coverage in key areas of urban expansion with the consequential loss of significant market share. Over time, commuter rail services have continued to fail to respond adequately to changing passenger demands PRASA (2009). 1..3 Customer-Centric Delivery A dynamic and customer-centric public transport system is required where passengers contribute to and shape the service delivery agenda. The need for a Passenger or Quality Charter and the emergence of strong, vibrant structures championing both the interests of passengers and public transport transformation are vital to the development of a public transport system that will effectively respond to the travelling needs of passengers. The past few years has seen the emergence of vibrant, community-based structures championing public transport transformation and demanding quality services from Government and transport service providers. This movement seems to be growing and shows the determination of South Africans to participate in the construction of a transport system that will effectively respond to their demands PRASA (2009). 4.1 PRASA Vision, Mission Values Vision A provider of integrated public transport solutions for improved mobility Two fundamental principles underpin the vision:- Integration PRASA should facilitate integrating individuals and communities, enabling a better quality of life through access to socioeconomic opportunities Mobility Solutions PRASA should connect individuals and communities through the provision of public transport solutions that are founded on an integrated network of mobility routes PRASA (2009) Mission Sustainable Public Transport Solutions through Service Excellence, Innovation and Modal Integration PRASA (n.d.) The mission reflects four key intentions:- Service excellence superior performance that is safe, reliable and affordable, that makes a lasting impression, and builds brand loyalty both internally (employees) and externally (customers) that adds benefit to the passenger. Sustainability a focus on sustainable development in business that considers not just the financial bottom line of prosperity and profit, but also the other bottom lines of environmental quality and social equity. Mobility solutions reframing the basis of business delivery, favouring innovation, integration and partnerships Integration safe, seamless dignified travel experiences across all modes of public transport, PRASA (n.d.) Values The values that will guide PRASA, which will underpin the performance ethos of the organization derived from and are guided by the fundamental and progressive human values of the Constitution of the Republic of South Africa:- Service Excellence, Participation, Integrity, Fairness and Innovation, PRASA (2009) 4.1 OPPORTUNITY FOR Passenger Services 1..1 Commuter Rail Services The provision of efficient and affordable public passenger transport services is integral to Governments drive to create employment opportunities, stimulate economic development and reduce levels of poverty. Enhanced mobility will facilitate greater access to socio-economic opportunities for the urban and rural poor whilst contributing to an efficient transport system to the benefit of all South Africans highlighting the need for a vibrant public passenger transport network to support sustainable growth and development PRASA (2009). Commuter rail has the potential to be the most efficient, affordable and safe mode of travel. It plays a significant role in key Metropolitan areas such as Cape Town and has the potential to become an important public transport player in all metropolitan areas, significantly contributing to an efficient and reliable public transport system in these areas. Despite the acknowledged increase in the growth of car-ownership and usage, public transport and walking continue to dominate the mobility needs of the majority of South Africans and this is likely to continue for the next decade. Metropolitan areas in South Africa are experiencing rapid urbanization. Rail is in a unique position to facilitate greater integration between land use planning and transport infrastructure provision, and providing security, to private and public sector investment, of stable long-term public transport provision. This is vital to creating sustainable communities where peoples access to economic and social o pportunities is improved. In this context, railway lines need to be positioned, located, aligned with evolving spatial developments and formalised within the statutory planning processes undertaken primarily by local government. The creation of PRASA and the integration of rail and road-based transport services will, over time, provide the user with public transport choices moving away from a market of captive users to one where dignified travel choice is a real option PRASA (2009). 1..2 Inter-City / Regional Passenger Services Historically, long distance rail and road based services have not received the attention required to make them demand responsive in key market areas including migrant workers, students, tourists and occasional travellers. The Department of Transports Public Transport Strategy Action Plan notes that: There is a significant potential for the growth in migrant worker long distance public transport provision. The dominant generators of migrant movement are Gauteng and KZN The increase in tourism provides opportunities for segmenting the market that build upon the strengths of both long distance rail and coach operations. Rural areas in South Africa are undergoing a process of economic and social restructuring with a shift in emphasis towards rural trade and agro-processing. These factors reinforce the need for a public transport service sector that responds to the emerging needs of these rural / regional development nodes since transport links between the rural trade areas and the rural regions (hinterlands) remains unreliable, rendering access to services and emerging economic opportunities extremely difficult. This lack of access will continue to trap many in the poverty cycle. Governments decision to consolidate passenger rail entities and road-based long distance bus services into a single entity, PRASA, reporting to the Department of Transport are underpinned by a number of key drivers. The recognition by Government that rail consolidation was required to deal with the under-performance of rail passenger services as well as the historical under-investment in the passenger rail business. Institutional arrangements did not promote efficiency and accountability and significant change was required to overcome the inherent institutional dysfunctions that had been created. Confusion existed between the contractor and regulatory functions implicitly embodied in the SARCC/Transnet relationship PRASA (2009). The critical need for sustainable funding to reverse the decline in commuter rail levels of service being experienced by commuters has been identified. This funding profile was captured in the National Rail Plan, which was accepted by Cabinet in December 2006, where the funding and investment requirements were identified for passenger rail over the following ten years PRASA (2009). 4.1 PRASA Objective PRASA (n.d.) primary objective is: To ensure that at the request of the Department of Transport, rail commuter services are provided within, to and from the Republic in the public interest; and To provide, in consultation with the Department of Transport, for long haul passenger rail and bus services within, to and from the Republic in terms of the principles set out in section 4 of the National Land Transport Transition Act, 2000 (Act No.22 of 2000).. 4.1 Strategy of prasa PRASA (2009) objectives are supportive of the Board of Controls (BOC) key performance areas as seen in figure 2 below Figure 2 Key Performance Area and Strategic Objectives BOC Key Performance Area PRASA Strategic Objective Contribute to Governments objective of safe, affordable, accessible and reliable public transport provision Service Excellence in the provision of integrated best practice public transport solutions that are affordable, reliable, predictable and operationally safe Investment in infrastructure to contribute to growth and development Asset Utilisation ensuring the productive investment in, and use of, assets and the property portfolio through the application of total life-cycle management practices, processes and procedures to all assets Provision of sustainable quality services Service Quality Passenger Growth sustaining dependable and superior customer service benefit that achieves a high customer satisfaction Financial effectiveness to maximize operational efficiencies Financial Effectiveness ensuring efficient and effective deployment of available resources to achieve the required results and outcomes through the productive use of all resources Corporate Governance Legislative compliance Governance and Compliance ensuring controlled compliance to statutory requirements by entrenching a culture of corporate governance practices and accountability as well as Fraud Prevention within PRASA Contribution to the achievement of Governments socio-economic goals Strategic Sourcing through an effective and efficient supply chain management process and promotion of broad-based economic empowerment and industrial policy objectives Human Capital Resources Development Learning and Growth ensuring that the appropriate knowledge and skills are acquired and maintained to sustain change and improvement for the betterment of the organization through developing human capital development processes to build human capital capabilities 4.1 CHALLENGES FACING PRASA 1..1 Consolidation / Turnaround / Restructuring The sequential amalgamation, in quick succession, of the SARCC, Metrorail, Shosholoza Meyl and Autopax bring with it the normal challenges that are posed when merging disparate organizations in related but different operational arenas. A key driver in Governments decision to consolidate these entities into a single delivery arm of the DOT was to effect operational and asset turnaround of what were acknowledged to be declining businesses, albeit, some with the potential for growth. Linked with both these processes is the need to internally restructure the various businesses to align them with the new mandate given to PRASA through the amendment to the Legal Succession Act that was promulgated on 23 December 2008 PRASA (2009). 1..2 Sustainable Funding The ability to provide the requisite level of funding (substantial) to address both the investment capital and rapidly expanding operational requirements to affect the mandate is fundamental to the successful performance of PRASA. The integrated passenger transport plan requirements will need to be developed. Fully motivated funding requirements, covering both operations and investment capital, in line with the 5-year financial plan requirements of the various Integrated Transport Plans (ITPs), will be developed to begin to align the funding requirements with statutory plan requirements. The approved funding base makes no provision for two key activities that need to be accommodated: The incorporation of Autopax, an operating company that is currently materially dependent upon Transnet Limited for funding to re-capitalize and sustain the business going forward. The acquisition of new rolling stock. Analysis has indicated that the rolling stock refurbishment and upgrading programs are not maintaining pace with the requirements to buy time before the inevitable purchasing of new fleet becomes unavoidable. While the profile reflects a rising trend in investment funding support, the allocation of these funds to the different asset classes (Rolling Stock Infrastructure) will need to be reviewed. A careful balance needs to be struck to ensure that the sustainability of the asset base is not compromised PRASA (2009). 1..3 Ageing Rolling Stock and Infrastructure PRASA (2009) reports that the prolonged under-investment in passenger rail of almost thirty years is manifestly experienced in the deterioration of the general rail asset i.e. Rolling Stock and Infrastructure (Signalling and telecommunications, electrical systems, perway). This has resulted in a situation where services are experiencing continued decline, primarily due to poor availability and reliability of rolling stock and ageing infrastructure. The lack of investment in the asset base has also had a negative impact in the skills base of the passenger rail industry over a period of time. For example, the average age profile of commuter coaches is 40 years and has been left behind by international advancements in rail technology over the past few decades. The life expectancy of railway rolling stock is of the order of 54 years. The railway industry norms are that the coaches will be upgraded at half life (27 years) and overhauled every 9 years, so as to ensure the structural and su b-systems integrity is not compromised by metal fatigue, age, wear and tear or environmental condition. Thirty-three percent (33%) of the commuter rail fleet is already above 36 years and therefore would be uneconomical to upgrade. 1..4 Human Capital Development Human capital development is generally understated and under-rated in supporting the development of an organization. It is a multi-faceted process that requires clear understanding to enable human capabilities to be built that will support the key performance drivers of the business and ultimately the business results that can be expected from that performance. The key challenge for PRASA is to formulate human capital development processes that facilitate and fast-track the appropriate human capital capabilities at all levels within the organization that will enable delivery on the key drivers of which, in the case of PRASA are : * increased productivity (operational efficiencies), * improved service quality (service excellence), * customer focus and * innovation in the provision of integrated public transport solutions The nature of the various operational divisions, while related and providing synergistic opportunities for service co-operation and delivery, are by their very nature, different business environments, each requiring a specific set of human capabilities to perform optimally. PRASA needs to provide guidance in the process framework that delivers this requirement PRASA (2009). 1..5 Change Management The finalisation of the PRASA consolidation process, the turnaround and restructuring necessitate that a number of parallel change management processes are undertaken. Numerous change management processes will be identified that are needed to combine the five organizations into a consolidated organization. The very ability of PRASA to ensure effective implementation of such processes becomes critical as is the capacity of the organization (including divisions and subsidiaries) to manage them successfully PRASA (2009). 1..6 Leadership Skills Development There is currently an acknowledged shortage of key skills as well as a lack of depth of skills in critical areas within the organization. For PRASA to meet the expanded mandate of supporting governments socio-economic and transport objectives in both urban and rural contexts, the organization will need a focused approach to human capital development, on leadership development, talent management and the progressive training of a strong base of key skills that will lay the foundation for sustaining rail passenger transport sector PRASA (2009). 1..7 Rail Technology Development PRASA, of necessity, will need to become a technology based organization that blends best practice policies with intelligent asset management philosophies to leverage organisational productivity and efficiency gains to provide shareholder value. PRASA recognises that technology upgrade is critical to the modernisation of South Africas railways and is well aware that the capacity for technology upgrade may not be immediately available in South Africa or the African Continent as a whole. Technological obsolescence is a major factor that will inhibit PRASA from delivering on its mandate. A rail technical strategy that guides technological renewal, upgrading, replacement and development over the next 30 years is a critical requirement. The average age of the metropolitan rail commuter networks/system in South Africa ranges between 60 80 years and still supports 1940/50s technology. The system in SA is showing serious age related condition decline with increasing systemic risks and techn ological obsolescence. Railway systems are designed for an extended economic life, but it is acknowledged that the current ad hoc investment flows into the ageing system in South Africa are not productive in terms of future demand, operational performance requirements and escalating maintenance costs. Global technology advancement in rail has moved beyond the limited application of heavy rail, regional and long distance passenger rail. Various new rail based technologies of alternative applications have evolved globally to ensure the competitiveness and attractiveness of rail solutions. If South Africa is serious about ensuring environmentally friendly and energy efficient transportation for its cities to counter growth in private vehicle travel, congestion and spiralling cost of fossil fuels, a selective conversion of appropriate new and improved rail based and mass transit technologies needs to be evaluated, introduced, and established in South Africa ensuring that these take thei r place in the hierarchy of public transport service provision. The technological needs of PRASA over the next 30 years need to be clearly articulated and incorporated into PRASAs long-term planning if passenger rail is to be sustained over the longer-term. The development of a rail technology strategy, together with the appropriate migration requirements over this period will assist in guiding decision-making in much critical technology upgrade or replacement areas within the organisation. The phased implementation of the strategy will be captured in each of the Business Plans roll-outs over time PRASA (2009). 4.1 RESEARCH AIM, QUESTION, SUB-QUESTIONS AND OBJECTIVES Research Aim The aim of this research is to understand to what extent alignment between Business and IT strategies exists, at the Passenger Rail Agency of South Africa (PRASA). Research Questions The research question derived from the problem statement is What can PRASA do to improve business and IT strategies, alignment? The sub questions to answer the main question are: 1. What are business and IT strategies? 2. What is alignment between business and IT strategies? 3. What factors contribute to an alignment gap between business and IT strategies? 4. What factors contributes to an improved alignment between business and IT strategies? Objectives of the research Based on the sub questions the objectives of the research are to 1. Analyse the Businesss and IT strategy 2. Carry out a literature review on the alignment between Business and IT strategies. 3. Analyse the factors that contribute towards Alignment Gap 4. a. Establish strategic alignment best practice. b. Formulate a methodology for aligning Business and IT strategies. c. Propose recommendations to improve PRASAs Business and IT strategies alignment. 4.1 CURRENT STATUS OF THE RESEARCH AREA The literature review will be based on the research into alignment of business and IT strategies. There is a plethora of research available on the alignment of business and IT strategies. Chan and Reich (2007) have carried out comprehensive research on this topic. 4.1 Business and IT strategies 1..1 Business Strategies Croteau and Bergeron (2001) define business strategy as the outcomes of decisions made to guide an organisation with respect to the environment, structure and processes that influence its organisational performance. Hambrick (1980) states that business strategies may be textual, multivariate or typological. Henderson and Venkatraman (1993) architects of the SAM model, view strategy as involving both strategy formulation (decisions pertaining to competitive, product market choices) and strategy implementation (choices that pertain to the structure and capabilities of the firm to execute its product market choices).The SAM model presents two business strategy perspectives where business strategy is the driver namely strategic execution, and technology transformation. figure 3 presents the key attributes of these perspectives. Figure 3 Attributes of Business Strategy perspectives (Henderson Venkatraman 1993) Perspective Driver Role of top management Role of IS management Performance criteria Strategy execution Business Strategy Strategy Formulator Strategic Implementer Cost/Service centre Technology transformation Business Strategy Technology visionary Technology Architect Technology leadership One of the six components of the SAMM Luftman and Kempaiah (2007), is partnership which includes ITs role in defining the businesss strategies. Both of these models (SAM and SAMM) are about aligning business and IT strategies and can be criticised because it does not define what business strategy is. Kay (1996) says that there is much debate on the substance but that most commentators agree that business strategy is concerned with the match between a companies internal capabilities and its external environment. According to Kaplan and Norton (2001) strategy implies the movement of an organisation from its present position to a desirable but uncertain future position. Because the organisation has never been to this future position its intended pathway involves a series of linked hypotheses. It enables the strategic hypotheses to be described as a set of cause and effect relationships that are explicit and testable Kaplan and Norton (2006) The effectiveness of the approach is derived from its ability to clearly describe strategy (using Strategy Maps) and the ability to link strategy to the management system using the BSC. For the purpose of this research business strategy will be described in terms of corporate strategy meaning it will be concerned with the overall purpose and scope of the organization Johnson and Scholes (1997). A definition of corporate strategy presented by Andrews (1980) is : Corporate strategy is the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities. Strategic management which is similar to corporate strategy is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a companys objectives Pearce and Robinson (1988). These tie in with the strategy view of the SAM and Balanced scorecard which both discuss strategy in terms of formulation and execution. Kaplan and Norton (2006) state that the IT strategy gets aligned to business strategy through a portfolio of strategic IT services, which is derived from the business strategy and negotiated with the business units and is measured by the value adding contribution of IT. This is done by providing access to timely and accurate information, creating and supporting business unit partnerships and strategic support to the business for competitive advantage. 1..2 IT Strategic Management Gartner (2007), define IT strategy as a discipline that defines the business value the IT organization will deliver to the enterprise, and the direction it will take to deliver. To do this they recommend that IT build a complete, business-success-focused IT strategy consisting of demand, control and supply. Well-crafted IT strategies demonstrate how IT will contribute to the success of the enterprise relative to its key business goals. The strategies also link major business missions and goals to IT initiatives. The SAM Henderson and Venkatraman (1993) model presents two I/T Strategy perspectives where I/T strategy is the driver namely competitive potential and service level. Figure 4 presents the key attributes of these perspectives Figure 4 Attributes of IT Strategy perspectives (Henderson Venkatraman 1993) Perspective Driver Role of top management Role of IS management Performance criteria Competitive potential I/T Strategy Business visionary Catalyst Business leadership Service level I/T Strategy Prioritizer Executive leadership Customer Satisfaction The latter two models will be used to better understand the alignment between Business and IT at PRASA. 4.1 What is an alignment gap? Business and IT strategies may from time be out of synchronisation or may be misaligned. This misalignment is referred to as an alignment gap. No clear accepted definition of an alignment gap between Business and IT strategy is found in the literature. Luftman and Brier (1999) mention inhibitors which hinder alignment. These inhibitors include: IT/ business lack close relationships, IT does not prioritize well, IT fails to meet its commitments, IT does not understand business, senior executives do not support IT, and IT management lacks leadership Luftman and Brier (1999). They also talk of companies striving to link business and technology and what the impact of misalignment might be if there is no harmony between business and IT. Reich and Benbasat (1996) define linkage as the degree to which the IT mission, objectives, and plans support and are supported by the business mission, objectives, and plans. According to Norton (2002) the reasons why a business strategy and IT strategy gap exist are poor strategy development, management, communication, lack of strategic focus within organizations, and no strategic management process. Rathnam,Johnsen and Wen (2004), used a case study to research why alignment gaps exist, the reasons for alignment gap and the strategy for minimizing the alignment gaps between business and IT. Although the authors talk extensively of alignment gaps in their research, they do not define the term. Their results suggest that improving business strategy vision and communication has the greatest potential for aligning business and IT strategies. Beer and Eisenstat (2000) state that companies have long known that, to be competitive they must develop a good strategy and then appropriately realign structure, systems, leadership behaviour, human resources policies, culture values and management processes. They have identified what they call the the silent killers of strategy implementation and learning. Some of them are, a top down but laissez-faire senior management style, an unclear strategy and conflicting priorities, an ineffective senior management team, also and importantly a poor vertical communication channel, poor coordination across functions and businesses and inadequate down-the-line leadership. Further factors contributing towards the misalignment can take several forms according to Fonvielle and Carr (2001). This can be where individuals believe its members are aligned but in fact, the individuals have different sets of goals or could have the same goals but unstated disagreements on how the goals should be reached. It may also well be that warring camps exist within the organization, ensuring that overall commitment to any chosen strategy is weak. A more relevant case is where an active opposition does not exist, but many group members are unconvinced of the need for, or the likely efficacy of, the proposed action. In other situations and cases people dont know what the goals of the organization are. Gartner (2008), state that aligning IT with the business is often one of the more frustrating and time-consuming experiences. Alignment is often seen as the business and IT operating in parallel worlds, maintaining a common direction, but separated by distance. 4.1 What factors contributes to an improved alignment between business and IT strategies? Luftman (1999) and (Rathman et al., 2004) suggest the following to improve alignment between Business and IT strategies . This is shown in figure 5 Figure 5 Business and IT strategies are improved by alignment between the two Luftman Rathman et al Senior executive support for IT IT involved in strategy development IT understands the business Business partnership Well-prioritized IT projects IT demonstrates leadership Improve business strategy development process More collaborative strategy development between IT and Business departments Define when and how new technology is introduced into strategy development discussions Restructure the organization to ensure focus on enterprise needs (e.g. structure the organization around business processes) Build a business architecture Use a centralized IT organization Include a CIO at the executive council level The Balanced Scorecard will be used to measure the performance of the organisation to ensure alignment between Business and IT strategies Users of the Balanced Scorecard started using the scorecard as a management system, used to manage strategy, Kaplan and Norton (1996). From this they introduced five principles of Strategy-Focused Organisations to assist with aligning and focusing resources on strategy, namely 1. Translate the strategy to Operational Terms 2. Align the organisation to the Strategy 3. Make Strategy everyones everyday Job 4. Make Strategy a Continual process 5. Mobilise Change through Executive leadership This conceptual model will be used to better understand the alignment of Business and IT strategy at PRASA and is depicted in Figure 5. Figure 6 Achieving alignment between Business and IT strategy at PRASA 4.1 RESEARCH DESIGN The research design will use the interpretive case study approach. The interpretive approach involves the researcher adopting an empirical approaches which focus on human interpretations and meanings Walsham (1995). Interpretive research involves non or anti positivism in which facts and values are intertwined and hard to disentangle, and both are involved in scientific knowledge and nomatism which takes the view that scientific knowledge is ideological and inevitably conducive to particular sets of social ends. Either of the latter two positions is open for the interpretive researcher to adopt A case study which is defined by Robson (2002) as a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within real life context using multiple sources of evidence. .Case Study is also known as a triangulated research strategy Tellis (1997). The need for triangulation arises from the ethical need to confirm the validity of the processes Tellis (1997). In case studies, this could be done by using multiple sources of data Yin (2003).The rationale for using multiple sources of data is the triangulation of evidence Tellis (1997). Triangulation increases the reliability of the data and the process of gathering it. In the context of data collection, triangulation serves to corroborate the data gathered from other sources. Yin (2003) identified six primary sources of evidence for corroborating case study research. These are documentation, archival records, interviews, direct observation, participant observation and physical artefacts Yin (2003). The research will use the following sources of data: documentation, archival records and interviews. 4.1 DELINEATION OF THE RESEARCH The study will explore to what extent (if any) an alignment gap between Business and IT strategies exists, at PRASA. The population would include IT managers and business managers from other departments within the PRASA group. 4.1 CONTRIBUTION OF THE RESEARCH Alignment between Business and IT strategies has been problematic (Luftman, 2007). This study will provide a better understanding of the alignment issue in order to do further research into possible frameworks. Studies have shown that better performance can be attained if organisations are tightly aligned. The research will start with identifying the strategic choice of the organisation, based on the work of (Henderson Venkatraman, 1993). This will be followed by a strategic alignment maturity assessment developed by Luftman (2001). Finally performance measures described by the BSC will be used to monitor progress in aligning Business and IT strategies. The contribution of this research would be to better understand the alignment between Business and IT at PRASA. 4.1 Structure of the research Chapter one is an introduction to the research. Chapter two is an in depth literature research on the subject. Chapter three provides comprehensive background on the three theoretical models used, SAM,SAMM and BSC. Chapter four introduces the research design and research methodology followed. Chapter provides the results of the unstructured interviews and Chapter six is the conclusion and recommendations the organisation could use

Abstract. Through Research We Can See The Causes,...

Abstract Through research we can see the causes, misdiagnosis, treatment, types and symptoms of eating disorders. Pressures from society and dislike towards oneself seem to be the largest factor in the development of eating disorders. They can often mask other serious symptoms. Treatment can vary but can interplay with the treatments of mood disorders. The symptoms range between the different types of eating disorders. Diagnosing eating disorders can be difficult because most patients perform tell-tell signs when they are alone. There is also no well-defined meaning of binge. The importance of regular evaluation of patients about eating disorders is key in preventing and treating. Research is plentiful and wide ranging. Studies are†¦show more content†¦Eating disorders are very complex and can be life threatening (Costa, et. al, 2016). Due to eating disorders being so complex, it makes them hard to accurately diagnose. Sometimes eating disorders can be misdiagnosed. One specific case of eating disorders being misdiagnosed is in the instance of gastrointestinal issues. In some cases, eating disorders can mask the underlying gastrointestinal problem (Chelvanayagam Newell, 2015). Eating disorders can affect every body system due to purging, starvation, and binge eating (Chelvanayagam Newell, 2015). Thus making it difficult to accurately diagnose eating disorders. Another issue with diagnosing eating disorders is the criticism of the word binge and what is truly means in terms of eating disorders. This is due to the fact that there is no guide of how much food is too much (Eichen Wilfley, 2016). The argument is whether the amount of food eaten is necessary to the person’s diet, or if the amount of food eaten was due to loss of self-control (Eichen Wilfley, 2016). Symptoms of eating disorders vary between the types of eating disorders. Most who suffer with an eating disorder do so privately. Therefore, it is important to regularly ask the patient about their eating habits (Eichen Wilfley, 2016). Also, this is why being able to assess the symptoms of eating disorders is very important. Correct diagnosis is crucial. The following are types of eating disorders and the symptomsShow MoreRelatedWriting Is The Most Important Form Of Communication We Humans Have953 Words   |  4 PagesWriting is the most important form of communication we humans have. Writing has conveyed our ways of life, our stories, and our discoveries. For someone to say that writing is not important is extremely foolish. If people don’t learn to properly write what they are trying to say, it will be lost to the person trying to read. My father thinks that it isn’t important to improve my writing skills, says that there’s no need to if people can get the gist of what I’m trying to say. He is dead wrong;Read MoreThe Youth Through Prevention And Detection, Rehabilitation, And Establishing A Future For Juvenile Justice System Essay1428 Words   |  6 PagesAbstract Juveniles navigate through a corrections system that is constantly changing. This research paper is dedicated to those that work with the youth through prevention and detection, rehabilitation, and establishing a future for juvenile justice. I will be focusing on what causes youth to become involved in the juvenile justice system, how we can help them get back on track and how to keep them moving forward in the right direction. In addition, the rehabilitation of the juveniles is fundamentalRead MoreMobbing4967 Words   |  20 PagesMOBBING CONTENTS OF THE PAPER INTRODUCTION DEFINITIONS OF MOBBING THE CAUSES AND EFFECTS OF MOBBING THE IMPORTANCE OF MOBBING A REAL LIFE EXAMPLE CONCLUSION REFERENCES A-INTRODUCTION It is possible that most of us; the students, the employees or even some academicians dont know the term mobbing. Mobbing is a new term in todays management issues. The term comes from other fields of study, i.e.; behavioral sciences. Mobbing basically refers to an attacking behavior. Mobbing was used firstlyRead MoreLong Term Development Policy Paper5988 Words   |  24 Pages Developing Policies Which Optimize Long-term Service Sustainability for Vulnerable Infrastructure Kevin L. Clark, Auroop Ganguly Abstract— The Mission of the U.S. Department of Transportation is to ensure all Americans are served by a fast, safe, efficient, accessible and convenient transportation system that meets the nation’s vital national interest and enhances the quality of life today and in the future. The airport and National Airspace System (NAS) play a key role in achieving this mission

Comparing Theories of Mathematical Development free essay sample

Sensorimotor (0-2 years of age) children begin to use imitation, memory and thought. They begin to recognize that objects do not cease to exist when they are hidden from view. They move from reflex actions to goal-directed activity. 2. Preoperational (2-7 years) Children gradually develop language and the ability to think in symbolic form. They are able to think operations through logically in one direction and they have difficulty seeing another person’s point of view. 3. Concrete operational (7-11 years) Children are able to solve concrete (hands-on) problems in logical fashion. They understand the laws of conservation and are able to classify. They also understand reversibility. 4. Formal operational (11-15 years of age) Children are able to solve abstract problems in logical fashion. Their thinking becomes more scientific, they develop concerns about social issues and about identity. † He also developed the idea of schemas as ideas or concepts that children need to master in order to learn about relationships. We will write a custom essay sample on Comparing Theories of Mathematical Development or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Chris Athey is a constructivist. She has applied the theory of ‘schema’ to the practical observation and analysis of children’s learning. Athey built on Piagets early work, and she sees schemas as a means to arrive at categories and classifications. For example, a baby will try out a wide range of schema on one object for example, sucking, shaking and throwing. This demonstrates the need and importance of a wide and varied range of experiences. Schemas can be put together over a period of time to create powerful and higher level schemas. According to Athey’s theory, schemas evolve from early actions and perceptions; they are part of the way in which young children make sense of relationships and of the environment around them. Athey identified four stages that children go through in exploring and using schema: 1. a period of physical action where the movement does not carry any real significance. 2. using schema to symbolise something. 3. beginning to see the functional relationship between two things. 4. using schema to support thought. For example, a child interested in rotation (which is linked to mathematics): Stage 1 The child twirls around and around. Stage 2 The twirling is used to symbolise a carousel. Stage 3 The child becomes interested in a yo-yo in that it can be shortened or lengthened when the string is wound around the yo-yo. Stage 4 The child puts all of these ideas into words and expresses their own thoughts about rotation. Athey identified a number of schemas which are all linked to maths including: * vertical * back and forth and side to side * circular or rotational * going over, under and on top of * going around a boundary * containing and enveloping * going through a boundary. Schemas are happening in practice all of the time. Children’s dominant interests of the moment will provide ways for them to represent their ideas in which they will include their preferred schema. Schema-spotting has become an analytical tool in many early years’ settings. Practitioners often think that very young children are acting in a random manner but once they scrutinise what is happening, a schema pattern may begin to emerge. (http://juliangrenier. blogspot. co. uk/2009/11/schema-theory-in-early-years-edu cation. html) In comparison these two theories both use the thought of schemas in their theories. But whereas Athey believed that schemas dominate children’s play as they explore, experiment and the way they learn, Piaget believed that children progress through three stages of learning when they are absorbing events into existing schemas they already have. Athey developed Piaget’ theory and showed how children forms of thought develop through experiences and developed a framework for teaching which extends schema through curriculum experiences. In my placement the teacher planned a group activity that all the children could take part in to learn about a certain subject which was a write up on the counting cars activity that they did the week before. Children and their partners created their own piece of work that was added to a class group display on a wall. The work included drawing of the cars, tables and charts recording the results, diagrams and short sentences on the activity. The wall represented the group as a classroom project. The nature of this kind of activity demonstrates the sharing of information, which can be a key component of learning and links well with Piaget’s theory as it shows that children think in symbolic form as the diagrams were written up as a symbolic form of a tally chart and every tally mark represented a vehicle. According to Squire G â€Å"children become totally absorbed and will spend a great deal of time carrying out related activities as they develop a particular schema. † For example in placement children love to spend a lot of time building towers independently or along with other children, which develops a vertical schema. Bibliography Squire G (2007) BTEC National Children’s Care Learning and Development, Heinemann, Oxford http://ponce. inter. edu/cai/tesis/lmrivera/cap2. htm 29/05/2013 http://juliangrenier. blogspot. co. uk/2009/11/schema-theory-in-early-years-education. html 29/05/2013

Lesson rationale for micro teach free essay sample

The importance of hand hygiene in a Veterinary Practice Introduction The lesson aim is to introduce the complex subject of microbial transference and the role that hand hygiene plays. Within the fifteen minutes allocated to this lesson, learners will be involved in a couple of exercise’s that directly relate to hand hygiene and will assist the learner to build on knowledge throughout the session. The subject has been chosen in part because it is within the tutors subject knowledge and specialism, the subject is also relevant to current media interest due to the increase in hospital acquired infection and the resistance of pathogens to antibiotics, therefore although this presentation is pertaining to Veterinary Surgery protocol, it is very relevant to all medical type establishment and will also be of current interest to many learners including those with no prior medical training. Delivery This lesson has been devised to achieve learning that caters for a range of learning styles, the lesson should achieve as equal learning for all learners involved as is possible, the lesson is predominantly student led with some short tutor led areas. We will write a custom essay sample on Lesson rationale for micro teach or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page To ensure that the objectives can be achieved in the limited time constraints of the sessions, the session must be actively managed by the tutor and learners will need to be kept on track throughout. Visual aspects – Power point, pictures, glow bright solution Auditory aspects– Tutor led discussion, peer review of practical areas Reading/writing aspects– Learners may take notes throughout the session, handouts given for later recap Kinaesthetic aspect– Practical elements such as carrying out the hand wash The lesson structure Tutor to introduce objectives of the session to learners Objectives ?Identify 2 ways infection transmission can occur ? Identify the importance of hand hygiene in infection control ? Integrate five evidence based hand hygiene methods into clinical practice Objectives will allow learners to understand what they will achieve by the end of the session; this will in turn motivate learners to actively engage in the session, to fulfil the expected learning outcomes. A very brief over view of what pathogens are and how they can be transferred directly and indirectly. Due to the groups of learners involved potentially having minimal prior learning/knowledge in this area an introduction to pathogens and how they may be transferred is required to underpin the importance of hand hygiene. Integration of hand hygiene into the flow of clinical work – 5 moments of hand hygiene (Adapted from the WHO 5 moments of hand hygiene) Illustrate to learners the need for hand hygiene to be a ‘culture’ within the clinical setting to ensure essential hand hygiene ‘moments’ are not missed. Practical element – learners to rub glow bright over their own hands to identify how effective their own hand hygiene is currently Learners will be informed of what glow bright will identify i. e areas of the hands that have not been effectively cleaned, or have had pathogen transfer since the last hand wash. Tutor will inform learners that anyone feeling uncomfortable may participate in peer review but not use the glow-bright on themselves. This part of the lesson will highlight to the learners the need for a standardised hand wash protocol without such protocol the standards of hand hygiene vary dramatically from individual to individual. Tutor will demonstrate the standardised WHO hand hygiene alcohol hand gel method, learners will demonstrate this method back to the tutor, and tutor will ensure that all learners are able to carry out this method competently. Learners need to understand what this standardised method achieves, that all areas of the hand are effectively cleaned, reducing the transient population of pathogens on the hand surface, therefore reducing the ability for these transient pathogens to be passed on to objects and patients. The lesson will end with re-scanning of the hand with a UV lamp to see if areas of glow bright have reduced on learner’s hands. This will allow students to assess themselves on how effectively they feel they carried out the hand clean. Assessment for learning will occur through the three main practical sessions within the lesson structure. Initial assessment will involve the tutor asking students to state a number between 1-5 as to level of current knowledge of subject, one be low and five being high. Formative assessment will be carried out during the three practical’s this will be peer assessed and tutor assessed. Summative assessment will not be achieved within this session due to time constraints Resources required Laminated pictures †¢Sticky spots (two colours) †¢Handout of the WHO hand gel rub method †¢Alcohol hand rub †¢Glow bright solution †¢UV light †¢Paper towel Conclusion This session is designed to educate learners about the importance of hand hygiene, how hand hygiene is integrated into clinical work and how effective hand hygiene methods can be employed. This is achieved through tutor and student led activities that culminate in students assessing their own hand hygiene effectiveness.

Overtime Analysis

Abstract The main aim of this study was to determine the most cost-effective method that the Immigration Branch of Commercial Bank of Dubai would use to minimize their annual expenses. The choice to be made was between overtime and hiring of new employees.Advertising We will write a custom research paper sample on Overtime Analysis specifically for you for only $16.05 $11/page Learn More From studies that have been conducted on the topic, it has been concluded that the difference between these two options is insignificant. However, overtime has always been the ultimate option since it is relatively cheaper as compared to hiring of new employees. From the results of the study, it was identified that the bank was understaffed especially on peak hours. It was also found out that the cost incurred while hiring new employees is higher than the cost incurred on overtime. Due to this fact, it was concluded that the bank should maintain its overtime policy. Howe ver, there are some regulations that have to be put in place to improve on operations and reduce overtime costs. Introduction The United Arabs Emirates (UAE) is one of the fasted growing regions of the world. From humble beginnings, the region has grown over the last several decades to be one of the strongest financial hubs of the world (Madar Research Group, 2008). The region supports a vast diversity of commercial activities. These include the oil and gas industry, tourism, infrastructural development, manufacturing industries, IT industries and many other commercial services. It is due to these factors that the GDP of the region has been growing at a tremendous rate especially for the last fifteen years. To support all these activities, the region has developed a strong banking industry. The financial sector of the UAE is undergoing a massive overhaul. This has come about as a result of the changes in the structure and composition of the population. Initially, the UAE population comprised mainly of old individuals who had a static ideology, illiterate and embraced their traditional morals and values. At the present moment, the population of the region has evolved. The region is now dominated by young enthusiastic individuals who are highly educated and more demanding. Their requirements, tastes and preferences have made the banking industry of the region to grow by increasing the diversity of its services and products (Hadjimonolis, 2009).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More With the help of the government, the banks and other financial institutions of the UAE have developed regulatory mechanisms that have enabled a better monitoring of funds and generally improved the banking service. These are perhaps some of the reasons that have led to the success that these banks are currently enjoying. Due to the availability of favourably conditions, the se banks have invested greatly to in order to meet the standards of their international counterparts. At the present moment, UAE has a mixture of local and foreign banks. All these institutions strive to serve the clientele of this region. Due to the commercial nature of the region and the high competition that is present in the banking industry, it has been important for these banks to maintain high standards and offer quality services in order to maintain their customers and attract new ones (Quayle, 2010). At the same time, it is essential for these banks to ensure that their operating expenses are at the minimum in order to enjoy profitability. This will guarantee their sustainability in the short run and in the long run (Berry, 2009). Commercial Bank of Dubai is one of the leading banks in the UAE. Founded in 1969 by the late Sheikh Rashid Bin Saeed Al Maktoum, the bank has grown in its operations and services. The late Sheikh Al Maktoum is accredited for founding the modern Du bai. During its early days, Commercial Banks of Dubai was in partnership with Commerzbank, Chase Manhattan and the Commercial Bank of Kuwait. Only a small proportion of the UAE citizens were the shareholders of the bank. Majority of the bank owners were foreign investors. Approximately ten years after its incorporation, Commercial Banks of Dubai became a National Shareholding Company. Its operations were further boosted when the government of Dubai became the major shareholder of the company in 1982 (CBD, 2012). This not only increased the available funds but also increased the popularity of the company among the locals. With massive transformations, the institution gradually grew to be one of the leading commercial banks in Dubai and the UAE at large. At the present moment, Commercial Bank of Dubai offers a wide range of retail and commercial services to its customers. The bank has a network of branches spread all over the UAE. Given the growth and expansion that the bank is curren tly experiencing coupled with the advancement in technology, Commercial Bank of Dubai aspires to offer the best banking services in the UAE and the world at larger.Advertising We will write a custom research paper sample on Overtime Analysis specifically for you for only $16.05 $11/page Learn More The Bank’s Mission Statement is to be recognized as a quality focused, customer driven, financially sound and socially responsible bank. Its vision is to be the bank that leads the way to greater financial and social prosperity (CBD, 2012). The following are the mission statements of the bank: Clients – To be recognized as the preferred banking partner in our target client segments Employees – To be recognized as an employer of choice through the fostering of a motivational environment which rewards superior performance Society – To be recognized for our ethical banking practices and for our contribution to the social well-being of the communities in which we are present. Shareholders – To be one of the most profitable banks in the UAE. The values of CBD create its own culture that supports growing of the company for a decade: Client First Consistent High Quality Cooperation and Teamwork Despite the success that the bank is experiencing, there are a number of problems within its management. All of the branches of the institutions have always been reporting problems that derail them from meeting their short-term and long-term goals and objectives. This is a normal scenario in the normal operations of any institution. The Immigration Branch of Commercial Bank of Dubai has over the last few years been experiencing high operation costs due to a number of factors. Overtime pay has been one of the main reasons why this branch has been experiencing high operating costs. It is essential for an employer to follow the labour laws and pay his staff accordingly. With regards to this issue, Commercial Bank of Du bai is not against paying its employees their normal salaries and overtime for the effort that they have put beyond their stipulated hours of employment. The bank conforms to the Labour Law Article No. 67 and 68 that clearly stipulates the payment rates with regards to normal work and overtime. However, the management of the bank has realised that there is a problem somewhere since it is paying exorbitant amount of money for overtime. In 2011, the bank paid approximately AED 60,000 worth of overtime per month. This figure is lower than that of 2010 but it is still a huge amount. The rise in overtime has increased the budget of the bank for the last several years. In the year 2010, the bank paid approximately AED 1.2 million in overtime pay (CBD, 2012). In the Immigration Branch, approximately the salaries that were paid in the same year had increased by 10% as compared to those paid in the previous years (CBD, 2012).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The main aim this research study therefore is to determine critically analyze the problem that has been brought about by the overtime issue, the impacts it has on the operation of the branch and the bank in general. After all these issues have been identified and understood, proper recommendations shall be formulated to curb the issues that result to employees working overtime hence reducing the overall budget. Problem Statement A section of the management believes that paying overtime is still a better option of solving the employee crisis that the bank is currently experiencing. This is because, these employees understand the system and operation of the bank thus it will be easier for them to meet their targets and achieve the set objectives. On the other hand, there are those individuals within the management who believe that hiring of new employees will be a better option to the current crisis that the bank is facing. They argue that it is cheaper for the institution to hire new employees to meet the current back load in the branch rather than paying the current employees overtime. This study shall therefore focus on these two options and identify the most efficient option among them. Objectives and Research Questions The main objective of this research study is to identify the factors that lead to an increase in the overtime cost of the branch. Once this is achieved, corrective measures will be formulated to reduce the amount of overtime pay in the branch and still maintain the same level and intensity of operations. To achieve all these, the following research questions shall be used: Are there enough employees for each shift? How are employees allocated within the branch? Is it cost effective to pay overtime the current employees or to hire more employees in the branch? Is there any unethical use of overtime? Literature Review The world that we are living in is based on a monetary system. Therefore, for individuals, partnerships, corporations and stat es to be successful in the short run and in the long run, it is essential for them to maximize their earnings (Boone and Kurtz, 2011). According to Al-Hammad (2010), the best may that an organization can maximize its returns is through minimizing its costs and maximizing its benefits (Nelson, 2006). Once a huge margin has been established between income and expenses, the chances for a firm to maximize its profitability and be sustainable are also increased. It is with regards to this issue that managers have always strived to cut their costs to ensure that their organizations not only operate within their current budget limits but also maximize on their returns (Al-Hammad, 2010). It is due to this fact that many managers always eliminate unnecessary costs from their operations in a bid to reduce their operating expenses. Over the years, managers have minimized or cut the funds that were directed on a number of projects. Some of the funds that most organizations are fond of reducing or eliminating include entertainment and recreation allowance, transport allowance, passages, health benefits and funds directed to projects that are deemed as unproductive to an organization. These decisions have been successful in enabling these organizations meet their financial obligations while at the same time they have made others incur even more expenses. Careful consideration therefore has to be taken into account while cutting down funds and seeking alternatives for an organization. While undertaking such measures, the management has to ensure that the option that they take not only reduces the operating expenses of the firm but also maintains or increases the level and efficiency of operations within an organization (Al-Hammad, 2010). The banking industry is experiencing radical changes in the manner in which it is operating and the services that it is offering (Al-Hammad, 2010). In order to meet the ever-increasing demands of consumer and achieve consumer satisfaction, m anagers of banks have to consider the most efficient but cost effective option that will enable them to stand at a competitive edge over their rivals. Managers therefore have to analyze the existing and new staffing methods that will in order to formulate the most efficient method to meet their restrictive budgets (Nelson, 2006). There is a lot of controversy with regards to the staffing levels of different departments and the minimum amount of employees that a specific branch can have in the banking industry (Nelson, 2006). From the studies that have been conducted, it has emerged that the most expensive segment of a banking institution`s budget is the payment of salaries of professional staff Nelson, 2006 (). It has been approximated that almost 70% of the budget of all institutions, banking or non-banking, goes to the payment of salaries of professional staff. Most individuals who have conducted similar studies have arrived to the same conclusion. This is because it is the workfo rce that acts as a vessel of an organization to achieve its vision and missions. Due to this fact, many managers have come up with solutions of trying to reduce this unavoidable cost. One of the options that many organizations have adopted is via maintaining a minimum number of all the employees. To ensure that all the workload it attended to with this minimum number of employees and to eliminate employment vacancies, managers have opted for the overtime option to cover this gap. Indeed, overtime results to additional costs to an organization but most managers are willing to experience this costs rather than the cost of recruiting new employees (Nelson, 2006). Many organizations have accepted the fact that overtime spending is part and parcel of their operating costs. They view overtime as a means of maintaining a minimal staff level and at the same time ensure that the operations of their organization are conducted in an effective an efficient manner. While conducting her study, Le lja (2008) interviewed a number of branch managers of banks in downtown Georgia Atlanta. From her results, 68% of the managers accepted the fact that overtime is one of the best staffing methods that maintains the staff levels of their branches at a minimum while they still exhibit high performance. Of the 24 managers who were interviewed, 18 were using overtime as a means of achieving their targets while maintaining a low sized staff in their branches (Lelja, 2008). It has always been argued that overtime pay is a means of guaranteeing revenue increment in organization that wishes to minimize its operating costs (Lelja, 2008). The rate at which employees are paid for duties they perform in overtime is always higher than the pay they get while working on normal hours. Overtime rate is normally calculated using a number of methods. Despite the method that is used, employees are guaranteed to get more from their overtime efforts. The same concept applies in the banking industry. Out o f overtime, employees of a financial institution tend to make much more than they usually do. A study that was conducted by Nelson (2006) revealed that most of the employees who worked overtime made much more in overtime than their salaries. This study focused on all industries and professions. It emerged that fire fighters and bankers ended up accumulating much more than other individuals in the society as a result of their overtime pay (Nelson, 2006). In some cases, these individuals ended up earning two times or even three times much more that they earn on normal pay. This fact thus made them to feel respected in the society. This in turn motivated them to even work harder and meet the goals and targets that have been set by their employers. Nelson (2006) concluded that overtime not only reduces the overall expenses of an organization but it also motivates employees to work harder and meet their short-term and long-term targets. The exorbitant amounts of money that employees make out of overtime normally have a heavy blow on the budget of organization. Firms tend to allocate most of their funds to carter for the pay of their employees. However, much more money is even spent as a result of overtime. The managers of many banking institutions have always complained that the amount of money their branches are spending with regards to overtime is so high (Boone and Kurtz, 2011). Commercial Bank of Dubai is one of the banks that have been experiencing high costs for the last few years. In the year 2010, the bank spent approximately AED1.2 million on its Immigration Branch alone on overtime (CBD, 2012). In 2011, the branch required an average of AED 60,000 per month to meet its overtime costs. Most managers in the banking industry believe that the high costs they are experiencing with regards to overtime pay is as a result of the operating shifts that are being used in their respective branches. In her study Quayle (2010) asserted that there is a correlation betwe en overtime pay and the implementation of shifts that last for more than 12 hours. Quayle (2010) believes that the 8-10 hour shift in the banking industry is more effective and efficient than the 10-14 hour shift. However, other researchers argue that the 10-14 hour shift is more effective since it is beneficial to both the banking institution since it reduces the overall expenses and to the employee since such employees are motivated by the high overtime pay that they get. Quayle (2010) suggested that the 8-10 hour shift is more efficient since it requires minimal utilization of sick days and leave days, it requires minimal overtime pay and employees perform to the best of their ability due to the absence of fatigue that arises from long hours of work. The 8-10 hour shift is thus viewed as an efficient and cost effective option as compared to the 10-14 hour shift where more sick days and leave days are used, high overtime costs are experienced and employees are fond of making error s and other mistakes due to fatigue and stress that results from long hours of work. In the 10-14 hour shift, the performance of employees is in most cases not as per the expected standards as employees rarely meet their set goals and objectives as per the requirements of the management. According to Quayle (2010), such shifts have always been associated with decrease in production and quality of goods and services from the employee end point. Therefore, by adopting the 8-12 hour shift, financial institutions shall increase on their effectiveness and efficiency as the employees will be at their best while working (Quayle, 2010). This will ensure that they carter to the needs of their customers as per their expectations. This is an essential factor in achieving consumer satisfaction. On the other hand, the 8-10 hour shift also reduces the operating costs as fewer sick days are used and overtime is minimized. The issue of employing additional staff to meet the staff demand of an organ ization and avoid overtime has always been discussed in a number of studies. Sandberg (2009) conducted a study where he tried to determine whether paying employees at an overtime rate of 1.5 times more than their salary cost-effective as compared to hiring new employees. From the study, it was identified that it was 13.1% cheaper to pay employees overtime than to hire new individuals (Sandberg, 2009). This index was calculated by considering the employees current salary, their overtime rates and benefits versus the cost of recruiting and hiring new individuals. Hiring new employees in itself also has associated costs. These include posting the vacancy advertisement on various forms of media, screening the documents of the applicants, contacting successful applicants to come for an interview and conducting the actual interview. Other costs include hiring trainers to train the recruits, purchasing materials that will be used in the process of training, paying the recruits allowances i n the process of training and other miscellaneous costs that may arise (Sandberg, 2009). In the process, the level of production of these employees is not as per the expected standards of an organization. In addition, there are always high trainee turnover rates as only a small proportion of the employees who commence the training actually go through the entire process and become productive members of staff at the end of the process (Sandberg, 2009). There are also additional costs that are involved with maintaining permanent staff. These include insurance compensation, payment to pension schemes, retirement benefits, holiday pay, leave pay, payment of special tools, equipments and clothing that may be requires for specific works. It is thus essential for the management of an organization to consider all the associated costs while determining the best option to adopt. From his study, Sandberg (2009) concluded that it was cheaper for financially institutions to pay for overtime rathe r than experiencing the costs of hiring new employees. It is due to this fact that many organizations opt to maintain their employees even after their retirement ages. These institutions feel that it is financially feasible to pay such employees their benefits, salaries at a higher rate rather than hiring new employees. Such employees are normally maintained due their expertise that is difficult to get from fresh recruits. It has always been argued that the college live-in programme to be one of the best alternatives to meet the staffing requirements of an organization without straining its financial limits. With this program, organizations are able to meet their obligations without the hiring of permanent staff. The work overload that an organization may be experiencing is normally shifted to these students who work as part and parcel of the team. The main aim of these students is to gain experience and not to be paid. Such programs normally give students the change to put their th eoretical knowledge and skills into practice and gain experience and exposure in the process. Salary is not their main issue. This gives organizations the best chance of reducing their financial burden by administering chores to these students. The college live-in program is thus a better alternative than hiring new employees. In the course of giving these students exposure, there are possibilities that industrious students may be identified that will ultimately join the working team as permanent staff. This is a relatively cheaper means of organizations obtaining employees rather than recruiting from scratch. However, such programs are not expected to fill in the employment vacancies that may be available in an organization or reduce the overtime burden (Sandberg, 2009). Berry (2009) suggested that once overtime has been used for some period of time, it will reach a point that an organization will start o experience the diminishing marginal returns. In his study, Berry (2009) concl uded that it is cheaper to utilize the option of overtime pay for a couple of years than to employ new staff to meet the workload at an organization. This can be achieved by putting in place proper measures, careful planning and wise utilization of financial resources. Once these considerations have been put in place, an organization stands a higher chance of benefiting more from overtime rather than hiring new employees (Berry, 2009). It is thus advisable for financial institutions such as micro finances and banks to adopt and implement the option of overtime while adhering to strict rules and regulations to ensure that this option becomes part and parcel of their operating system. Once this is achieved, such an organization shall benefit a lot from in terms of cost reduction from overtime rather than recruiting new employees. Financial institutions advocate for overtime as a means of maintaining their employee level to a minimum (Al-Hammad, 2010). The minimum number of employees w ho can work in a specific department is normally determined by the volume of work that is expected to be encountered. However, there are always uncertainties that tend to disrupt the number of available employees in meeting their obligations. Holidays offs, leaves, sick leaves, injuries, workshops and training, major incidents and lateness are some of the factors that facilitate the need of overtime (Al-Hammad, 2010). These factors normally result in a decline in the number of available employees to meet the daily obligations of a branch. Due to this fact, Al-Hammad (2010) stated that it was essential for managers to put into consideration all factors that may lead to the occurrence of overtime. However, some of these factors are unpredictable thus difficult to quantify. Due to this fact, Al-Hammad (2010) in his study used historical data to determine the trends and occurrences of factors that led to the development understaffing in various bank branches. From the results that he fo und, he developed a breakeven point of hiring additional employees and advocating for overtime. In his study, he concluded that it was advisable for a branch or an organization to employ more individuals up to the breakeven point. Once this point has been exceeded, it was advisable for a firm to utilize the overtime option as it will yield more benefits and result to lower costs that hiring of new employees (Al-Hammad, 2010). With his results, he was able to develop a profitability formula that would calculate the optimal number of employees who are able to meet the daily staffing obligations of a specific organization. There are however a number of drawbacks that are associated with overtime. It has been argued that the process may be insidious (Berry, 2009). Once the act has been introduced in an institution, it will be virtually impossible for the management to cut on the resultant costs, leave alone eliminating it from the organization. In such circumstances, overtime becomes pa rt of the operating activity of an organization. All the employees of an organization accept it as a norm and it becomes part of their organization culture. Overtime, in some instances, is not successful in meeting the goals and objectives that it has been advocated to meet in the first place. This is because overtime requires employees to work for long hours. This normally leads to brain drain, fatigue and loss of concentration. As a result, employees tend to become less productive. This in some circumstances may lead to a decline in productivity of the entire organization since the employees are incapable of meeting the needs of their clients. From the literature that has been covered in this paper, it is evident that managers are always striving to come up with the best means of reducing their operating costs. One of their main methods has been to maintain the number of the staff at a minimal level. However, this has normally resulted in back loading. Due to this, most managers h ave advocated for overtime as the most cost effective method rather than hiring new employees. This study shall therefore go further on this area of study and determine whether indeed overtime is a cost effective option as compared to hiring of new employees. Methods Literature Review Literature review was a source of secondary information for the exercise. This data was obtained from books, magazines, peer reviewed journals, online articles and other relevant sources that had discussed the issue of overtime and related labour laws. Through literature review, some of the methods that had been used in the previous studies were borrowed and applied to the current study. Also the recommendations of the previous studies were considered in the current work and further research and analysis were conducted on the same. Information from literature review was therefore used as a guiding tool in conducting this study. Administering of Questionnaires To gain quantitative data, questionnaires w ere administered to the target groups using the following procedure: There were two sessions of interviews on each day. The interviews were conducted in the morning hours and in the afternoon. In each session, only one individual was interviewed. This was done to ensure that employees still meet their employment obligations while giving time for the study. Members of different ranks and departments were interviewed to ensure that the attitudes of different employees are tested. Each session lasted for around 60-90 minutes. Techniques: Construction (visual) I conducted all the interviews with the help of a moderator. This ensured that all requirements of the study have been precisely covered. To ensure this, a pre-determined agenda was used. Analysis of qualitative data and questionnaire designing To construct a questionnaire that was precise and straight to the point, qualitative data had to be analyzed and interpreted first. This information helped in the making the questionnaire . It ensured that the questionnaire that was used for the study became a powerful tool for the collection of quantitative data. The resulting questionnaire therefore was precise, flexible and be able to collect only the relevant data that was needed for the research study. Method: Qualitative data coding and survey conducting preparation The data that was obtained from the interviews that were conducted on the target groups was coded statistically to reveal the trends and sequences. Finally, the data that was obtained was used in the preparation of the final report. The inferences that were arrived at from the analysis of qualitative data together with the information from the literature review were used to structure the questionnaire to reflect only the relevant information for the study. Primary Research (quantitative) Primary data is used to refer to data that has been collected directly from the area of study (Hadjimonolis, 2009). For this study, questionnaires were used to coll ect this vital information. This was a critical procedure to obtain first hand information that helped to explore the research objectives and gain statistical data that is necessary for data analysis. The questionnaires were structured in such a way to minimize the occurrence of errors that would have otherwise made the data collected from the field to become unreliable. Careful measures were taken to avoid this. Prior to the conduction of the interviews, the validity of the questionnaires was tested and approved for use. Method: Survey Structured questionnaires were used to collect data from the target group. These questionnaires comprised of a total of 15 questions that were structured in such a way that one question led to the other. 20 individuals were interviewed face to face for five straight days excluding weekends. The interviews were only conducted on the Immigration Branch of the Commercial Bank of Dubai. The managers, heads of different departments and employees from all the departments formed the target group of the study. The target group was composed of individuals who held different ranks within the branch. This was essential as it assisted in the determination of the attitudes and perceptions of all branch employees with regards to overtime and hiring of new employees. Random sampling technique was used to get the individuals to be interviewed in the study to avoid biasness. Data Analysis Raw data from the field is of no use since it does not make any sense at all. It is mainly composed of numbers and codes that need to be analyzed to make sense. Analysis of data involves three major steps: Data preparation that involves the organization of the data that has been collected for easy analysis. Descriptive statistics that entails the description and interpretation of the data that has been collected. This can be done using charts and bar graphs to explain the trends that have been observed. Inferential statistics that is done to test whether the data that has been collected is consistent with the objectives and hypothesis of the study. This is where either the null hypothesis or alternative hypothesis is proved to be true. Method: SPSS 16.0 For accurate analysis of the statistical data, a computer programme called SPSS 16.0 was used for descriptive data analysis. The data was explored using descriptive statistics and histogram plots to determine the shape of the distribution for each sample variable. The name given to each variable for the data analysis was given in a table. Data analysis was carried out using parametric tests where the data followed a normal distribution and where the sample number was equal to or greater statistical power. Where the data did not follow a normal distribution or where the data was split into groups of less than the sample size (n), non-parametric test was used. For example, a Pearson correlation test was carried out on the data to explore any linear relationships between the variables. Eth ical Considerations For the data to represent a true and fair view, the study had a few considerations on ethics. The data collection exercise was conducted in only one branch but employees from all the departments and ranks were involved in the study. In addition, the issue of gender was also put into consideration as the members of all the sexes were equally represented in the study. This consideration was done to gather information on the immigration department and the data that was collected could be generalised to reflect all the the branches of Commercial Bank of Dubai and all the banks in general that have been experiencing the same problem. The questionnaire was structured in a manner that it avoided any conflicts with regards to ethical considerations such as traditions, religion, age, rank and gender. It mainly focused on collecting the data that was required for the study. Prior to the commencement of the research, the management, departmental heads, employee representati ves and all the employees of the Immigration Branch were notified. Results The results that were found from the study were very interesting. The data that was acquired from the questionnaires were interpreted using the Likert scale. These results clearly showed the attitudes and perceptions of the employees who were interviewed during the study. Each question in the questionnaire was used to measure a unique variable that was being tested in the study. Additionally, literature review acted as the main source of information for this study. Financial data from the branch revealed the data and statistics of hiring new employees and paying overtime. This data was essential as it guided the course of the research, its analysis and the results that were used to answer the research questions. Due to the ever-rising number of clients, Commercial Bank of Dubai has been employing approximately 80 individuals annually who were distrusted in all their branches. The Immigration Branch for instan ce receives at least 8 -15 new employees annually. In the process of hiring new employees, the branch experiences direct and indirect costs. Indirect costs include those costs that are charged directly to the human resource department of the headquarters while direct costs are those costs that are charged directly to the Immigration Branch. Table 1 below summarised the costs required to hire new employees. Table 1 Cost Amount per Employee (AED) Application of a Position 2500 Application Review 3500 Application Data Entry 2500 Application Status Notification 1300 Written Exam Administration 5500 Written Exam Notification 5500 Other Expenses (Facing the Panel etc) 18,500 Total Costs 39,300 Table 2 below shows other associated costs incurred in the process of employment. Table 2 Cost Amount per Employee (AED) Background Reference Check 5500 Background Educational Check 5500 Background Credit Check 5500 Medical Check 5500 Review of Background Informati on 18500 Fingerprinting 7200 Provision of Accessories 98,000 Total 145700 The total overall cost that is thus required to hire a new employee was approximated to be AED 185,000. This cost does not include the additional salaries and benefits that employees are entitled to. From the analysis of the employment records of the immigration branch between 2008 and 2010, it was evident that vacancies were available in all the departments and ranks. From this analysis, it was concluded that the backlog in work that the Immigration branch is experiencing is as a result of understaffing. This has prompted the manager to advocate for overtime as a solution to their current problems. It is due to this shortage that the management implemented the 10-14 hour shift instead of the 8-10 hour shift. The branch manager`s rank ranged to the no manager on duty to a full time manager. The same trend applied to other managers and departmental heads. For the tellers, their shifts ranged from a low of three 3 on duty to a maximum of 11. Accountants ranged from a low of 4 to a maximum of 12. The customer care department ranged from a low of 2 to a maximum of 6. The number of employees present in a single shift was determined by the peak hours of the day. The peak hours were experienced between 9 am to 10.30 am and from 2.30 pm to 4 pm. The bank also experienced an influx of customers during the period of end month and the beginning of a new month. Due to the seasonal nature of the consumer peaks, the management felt that during off peaks, the branch would be overstaffed hence incur unnecessary expenses. To determine whether overtime was cost-effective than hiring new employees, a thorough examination of the employees annual salary and the hourly rate determined. The hourly rate was determined by dividing the total compensation with the 2256 (the total numbers of hours an employee is expected to work in a year). The overtime rate was then calculated by multiplying the hourly ra te by 1.5. Table 3 below shows the summary of hourly rate pay for employees of different ranks. Table 3 Position Annual Income (AED) Hourly Rate (AED) Overtime Rate (AED) Managers 360,000 159.57 239.36 Accountants 144,000 63.83 103.25 Tellers 120,000 53.19 79.79 Customer Care Reps 96,000 42.55 63.83 To determine the impacts of hiring a new employee, the cost of training can be added to the annual salary that each employee is entitled to. This information can be analysed in the Table 4 below. Position Annual Cost Hourly rate Managers 545,000 241.57 Accountants 329,000 145.83 Tellers 305,000 135.2 Customer Care 281,000 124.56 From the above table, it is evident that paying overtime is cheaper than employing new individuals. The cost of employing new individuals becomes higher as one moves down the ranks and this are the positions that have the ultimate need of effort from employees. To determine the financial impact of overtime versus hiring new employees o n the branch, a Pearson Correlation was conducted. Its results are represented in the Table 5 below. Correlations Overtime Costs Recruitment Costs Overtime Costs Pearson Correlation 1 0.618 Sig. (2-tailed) 0.626 N 30 30 Recruitment Costs Pearson Correlation 0.618 1 Sig.(2-tailed) 0.626 N 30 30 A Pearson correlation of 0.618 implies a strong positive relationship with insignificance at 5% therefore suggesting that it is more expensive for the organization to employ new individuals rather than paying overtime. Discussion The main aim of conducting this research study was to determine whether is overtime was a cost-effective option for Commercial Bank of Dubai to employ on its Immigration Branch over the option of hiring new employs. Studies that have been conducted by Berry (2009), Quayle (2010) and Sandberg (2009) concluded that there is no significant difference between paying overtime and hiring new employees. However, from the results of this study, it i s evident that there is a significant difference between hiring new employees and paying overtime. The significance in difference increases as the ranks of employees in the branch reduces with employees on the customer care department exhibiting huge differences between overtime pay and the cost of hiring new employees. This was evidenced by the AED 60.73 difference in the hourly rate. However, it should be noted that this additional cost is only incurred during the base year of employment. Once the employee has been assimilated into the system, the overall costs are expected to reduce. However, it is due to this reason that Berry (2009) asserted that employers opt to maintain their staff rather than employing new ones every year due to the high costs that are incurred in the process of recruiting these individuals. It is due to this fact that the management of Commercial Bank of Dubai have advocated for overtime over hiring of new employees. Consequently, from the analysis of the e mployment records and performance, it can be concluded that the bank is slightly understaffed. It is due to this reason that the banks always have a backlog of work hence the need for overtime. However, the bank managers argued that this overload of work is only seasonal and is experienced only during peak hours. Once the operations of the bank return to normal, the number of staff that is present is capable of meeting the operational demand. However, if the bank had opted to hire new employees, its operations would only be efficient during peak hours. However, during off peak hours, the branch will be overstaffed hence it will incur unnecessary costs. It is due to this fact that the management prefers overtime over hiring new staff. Finally, there are some drawbacks that are associated with overtime. In her study Lelja (2008) proved that there is a direct relationship between decrease in employee performance and an increase in the amount of work and hours of work. The Immigration B ranch has also experienced the same effect since employees complain of fatigue as a result of working for long hours. In addition, there have been cases of errors and mistakes in the branch. Although these events did not greatly affect the performance of the branch, it is essential for the management to check these issues. However, at the current moment, the bank stands a better chance of meeting its short-term and long-term goals and objectives through cost cutting by embracing overtime over hiring new employees. From the results that have been presented in this study, it is evident that overtime is the most cost-efficient option as compared to hiring of new staff. Conclusion and Recommendation Management is an essential aspect in the determination of the long-term sustainability of an organization. In the process of running an organization, it is the role of a manager to minimize his costs and maximize his benefits in order to ensure that his/her organization is profitable in the short-run and in the long-run. The immigration Branch of Commercial Bank of Dubai has been experiencing high operating costs as a result of overtime. To cut costs, the branch had the option of hiring new staff or implementing overtime. From the results that were arrived at in this study, overtime was the most cost efficient option that the bank had. However, there are some shortcomings that are related to this option. The main shortcoming is the decline in efficiency and productivity of the branch. To avoid this, I would recommend that the bank develops a breakeven point that would determine the best the best staffing alternative with regards to the two options given the prevailing situation. This will ensure that the bank enjoys the benefits of overtime and hiring new staff at the same time. 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Dubai: Trident Communications. Quayle, M. (2010). Management: The Challenge of Financial Institutions in the 21st  Century. International Journal of Operations and Production Management, 22(10) , 1148-1161. Sandberg, K. (2009). An Exploratory Study of SME`s Management. Journal of Small  Business and Enterprise Development, 10 (4), 408-417. This research paper on Overtime Analysis was written and submitted by user Mariyah Page to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.