Monday, March 16, 2020

Channel Distribution Essay Example

Channel Distribution Essay Example Channel Distribution Essay Channel Distribution Essay 272 LESSON-18 CHANNELS OF DISTRIBUTION Dr Subhanjali Chopra STRUCTURE 18. 0 Introduction 18. 1 Objectives 18. 2 Meaning of Channels of Distribution 18. 3 Kinds of Distribution Channels 18. 4 Choice of Channel of Distribution 18. 5 Summary 18. 6 Glossary 18. 7 Self Assessment Questions 18. 8 Further Readings 18. 0 INTRODUCTION Distribution of products constitutes an important element of marketing mix of a firm. After development of the product, the entrepreneur has to decide channels or routes through which the product will flow from the factory to the potential customers. He has a number of alternatives available to him. The entrepreneur may choose to distribute the product directly to customers without using any intermediaries. Alternatively, he may use one or more middlemen including wholesalers, selling agents, and retailers. Big firms have their zonal or regional authorized agents or dealers spread over the entire country. The dealers, in turn, work with distributors and retailers. On the other hand, small firms cannot afford to have zonal offices, but are devising their own ways of doing business. They also receive regular orders for goods. Entry may be difficult for the small firms. It has been observed that many authorized dealers of known brands also stock other unknown or new brands of goods. They also insist on the customer buying the lesserknown brand because of higher margin of profit. The small entrepreneur, with fewer overheads and low labour costs along with better planning and management, may be able to earn good profits. 18. 1 OBJECTIVES After reading this chapter, you should be able to: Explain the meaning of channels of distribution. Describe various kinds of distribution channels. Enumerate the factors affecting choice of a distribution channel. Describe various types of middlemen. 273 18. 2 MEANING OF CHANNELS OF DISTRIBUTION A channel of distribution or trade channel is the path or route along which goods move from producers to ultimate consumers. It is a distribution network through which a producer puts his products in the hands of actual users. A trade or marketing channel consists of the producer , consumers or users and the various middlemen who intervene between the two. The channel serves as a connecting link between the producer and consumers. By bridging the gap between the point of production and the point of consumption, a channel creates time, place and possession utilities. A channel of distribution represents three types of flows: a. Goods flow from producer to consumers; b. Cash flow from consumers to producer as payment for goods; and c. Marketing information flows in both directions, from producers to consumers in the form of information on new products, new uses of existing products, etc. The flow of information from consumers to producers is the feedback of the wants, suggestions, complaints, etc. 18. KINDS OF DISTRIBUTION CHANNELS Every small-scale entrepreneur requires a channel that can distribute his product to the right customers at the right time and at the right cost. It consists of all the middlemen which participate in the distribution of goods and which serve as a link between the manufacturer and the consumer. Producer Consumer Producer Retailer Consumer Producer Wholesaler Retailer Consumer Channels of Distribution A brief explanation of different channels of distribution is given below: 1. Manufacturer  Customer: This is also known as direct selling because no middlemen are involved. A producer may sell directly through his own retail stores, for example, Bata. This is the simplest and the shortest channel. It is fast and economical. Small producers and producers of perishable commodities also sell directly to the local consumers. Big firms adopt direct selling in order to cut distribution cost and because 274 they have sufficient facilities to sell directly to the consumers. The producer or the entrepreneur himself performs all the marketing activities. 2. Manufacturer  Retailer  Customer: This is one stage distribution channel having one middleman, i. . , retailer. In this channel, the producer sells to big retailers like departmental stores and chain stores who in turn sell to customer. This channel is very popular in the distribution of consumer durables such as refrigerators, T V sets, washing machines, typewriters, etc. This channel of distribution is very popular these days because of emergence of departmental stores, super markets and other big retail s tores. The retailers purchase in large quantities from the producer and perform certain marketing activities in order to sell the product to the ultimate consumers. . Manufacturer  Wholesaler  Retailer  Customer: This is the traditional channel of distribution. There are two middlemen in this channel of distribution, namely, wholesaler and retailer. This channel is most suitable for the products with widely scattered market. It is used in the distribution of consumer products like groceries, drugs, cosmetics, etc. It is quite suitable for small scale producers whose product line is narrow and who require the expert services and promotional support of wholesalers. 18. 4 CHOICE OF CHANNEL OF DISTRIBUTION While selecting a distribution channel, the entrepreneur should compare the costs, sales volume and profits expected from alternative channels of distribution. In order to select the right channel for distributing his product, a small-scale manufacturer should keep in mind the following considerations1: 1. Market Considerations: The nature of the market is a key factor influencing the choice of channels of distribution. The following features of the market should be considered to determine the channels: a. Consumer or industrial market: If the product is meant for industrial users, the channel of distribution will be a short one. This is because industrial users buy in a large quantity and the producer can easily establish a direct contact with them. But in case for goods meant for consumers, retailers may have to be included in the channels of distribution. b. Number and location of buyers: When the number of potential customers is small or the market is geographically located in a limited area, direct selling is easy and economical. In case of large number of customers, use of wholesalers and retailers becomes necessary. c. Size of order: Direct selling is convenient and economical where customers place order in big lots as in case of industrial goods. But where the product is sold in small quantities, middlemen are used to distribute such products. A manufacturer may use different channels for different types of buyers. He may sell directly to big retail stores and may use wholesalers to sell to small retailers. d. Customers buying habits: The customer buying habits like the time he is willing to spend, the desire for credit, the preference of personal attention and one stop shopping significantly affect the choice of distribution channels. 1 Singh and Chhabra, C. B. Gupta 275 2. Product Considerations: The type and nature of the product influence the number and type of middlemen to be chosen for distributing the product. The important factors with respect to the product are as follows: a. Unit value: Products of low unit value and common use are generally sold through middlemen, as they cannot bear the cost of direct selling. On the other hand, expensive consumer goods and industrial products are sold directly by the producers. b. Perishability: Perishable products like vegetables, fruits and bakery items have relatively short channels, as they cannot withstand repeated handling. Goods, which are subject to frequent changes in fashion and style, are generally distributed through short channels, as the producer has to maintain close and continuous touch with the market. c. Bulk and weight: Heavy and bulky products are distributed directly to minimize handling costs. Coal, bricks, stones, etc. , are some examples. d. Standardisation: Custom-made and non-standardised products usually pass through short channels due to the need for direct contact between the producer and the consumers. Standardized and mass-made goods can be distributed through middlemen. . Technical nature: Industrial products requiring demonstration, installation and aftersale service are often sold directly. The consumer products of technical nature are generally sold through retailers. f. Product line: An entrepreneur producing a wide range of products may find it economical to set up its own retail outlets. On the other hand, firms with one or two products find it profitable to distribute th rough wholesalers and retailers. g. Age of the product: A new product needs greater promotional effort and few middlemen may like to handle it. As the product gains acceptance in the market, more middlemen may be employed for its distribution. 3. Middlemen Considerations: The cost and efficiency of distribution depend largely upon the nature and type of middlemen as given in the following factors: a. Availability: When middlemen as desired are not available, an entrepreneur may have to establish his own distribution network. Non-availability of middlemen may arise when they are handling competitive products, as they do not like to handle more brands. b. Attitudes: Middlemen who do not like a firm’s marketing policies may refuse to handle its products. For instance, some wholesalers and retailers demand sole selling rights or a guarantee against fall in prices. c. Services: Use of those middlemen is profitable who provide financing, storage, promotion and aftersale services. d. Sale Potential: An entrepreneur generally prefers a dealer who offers the greatest potential volume of sales. e. Costs: Choice of a channel should be made after comparing the costs of distribution through alternative channels. After deciding the number of middlemen, an entrepreneur has to select the particular dealers through whom he will distribute his products. While selecting a particular wholesaler or retailer, the following factors should be taken into consideration: a. Location of dealer’s business premises; b. Financial position and credit standing of the dealer; c. Knowledge and experience of the dealer; d. Storage and showroom facilities of the dealer; 276 e. Ability of the dealer to secure adequate business and to cover the market; f. Capacity of the dealer to provide aftersale service; g. General reputation of the dealer and his sales force; h. Willingness of the dealer to handle the entrepreneur’s products; i. Degree of co-operation and promotion service he is willing to provide; j. Nature of other products, if any handled by the dealer. Activity Please suggest a suitable channel of distribution for Mr. Amit Sood†s firm. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ â⠂¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 18. 5 SUMMARY In a vast and densely populated country like India one needs an effective distribution system that provides market coverage and is economical. The choice of a channel depends upon the nature of the product e. g. for low priced consumer products like soap a vast network is needed but for industrial goods a direct channel or a very short channel might be appropriate. The nature of the product- whether it is bulky or perishable for instance as well as the cost and efficiency of the distributors are some other factors that have to be kept in mind while selecting a channel. 18. 6 GLOSSARY 1. Wholesaling: All activities involved in selling goods or services to those buying for resale or business use. 2. Retailing: All activities involved in selling goods or services directly to final consumer. 3. Zero Stage Channel: When goods are supplied directly by producer to consumer without any intermediaries. 4. Specialty Store: A retail store that carries a narrow production line with a deep assortment within that line. 277 18. 7 SELF ASSESSMENT QUESTIONS 1. What do you mean by channels of distribution? 2. Discuss the different channels available to an entrepreneur for the distribution of products to the consumers. . What factors will you take into account while selecting a suitable channel of distribution? 18. 8 FURTHER READINGS 1. Gupta, C. B. and Khanka, S. S. , Entrepreneurship and Small Business Management, Sultan Chand and Sons, 2003. 2. Taneja, Satish and Gupta S. L. , Entrepreneur Development: New Venture Creation, Galgotia Publishing Company, 2001. 3. Gupta, C. B. , Busin ess Organization and Management, Sultan Chand and Sons, Latest Edition. 4. Singh, B. P. and Chhabra, T. N. , Modern Business Organisation, Kitab Mahal, Latest Edition.

Friday, February 28, 2020

Probability Term Paper Example | Topics and Well Written Essays - 1750 words

Probability - Term Paper Example Statistics use assumption on population distribution to estimate population values based on sample values (Kemp & Kemp 257-66). Probability distributions functions or simply distribution functions are used (Soong 39-41). The distribution function associates a variable value with a probability (Soong 39). This can take the form Fx(x) =P(Xx) where the lowercase x refers to a specific value of a variable. Probability distribution functions have shapes represented by the mathematical equations. The areas under the curves or distribution functions are associated with probabilities. In business statistics, some of the distribution functions that are often used are the Z-statistics, t-statistics, chi-square distribution, and the F-statistics (Kemp & Kemp 47-297). There is also an option to use what statisticians call as the non-parametric statistics (Kemp & Kemp 298-315). The choice of what distribution functions to use are determined by convention or typical practice and theory. For example, in estimating the population mean, it is assumed that the sample mean converge to the population mean through repetition of sampling procedures or if the population is large. Thus, in estimating the mean, statistics usually makes the assumption based on a normal distribution. Although several distribution functions are used in statistics, in this work we focus our sights on three: the z-statistics, the t-statistics, and the chi-square statistics. Figure 1 captures a standard normal distribution function. The standard normal distribution associates a value of a variable with probability. For example, the probability that the value of the variable is between a very low number and high number can be represented by 100%. In the language of statistics, this take s the form P (-< x < +) = 1 or 100%. In other words, this means that in a

Wednesday, February 12, 2020

Described in the Seneca Falls Essay Example | Topics and Well Written Essays - 500 words

Described in the Seneca Falls - Essay Example †Now, in view of this entire disfranchisement of one-half the people of this country, their social and religious degradation,—in view of the unjust laws above mentioned, and because women do feel themselves aggrieved, oppressed, and fraudulently deprived of their most sacred rights, we insist that they have immediate admission to all the rights and privileges which belong to them as citizens of these United States.† Above is the main objective of the feminist groups at the convention. Under it states the details of such rights to be received by women; the right to suffrage, equal opportunities, social status, etc., giving emphasis to â€Å"All men are created equal†¦Ã¢â‚¬  in the Declaration of Independence, which they explained the term ‘men’ is being pertained to people and not gender specific. The convention succeeded in their objective to open the eyes of society to the injustices received by women that time. Uniting powerful elements at the convention such as gathering groups of antislavery, reformists and radical Quakers acted as one of the most important things that highlight the event that was one of the factors the convention became a success. This provoked one of the greatest rebellions in history of the modern times. The convention at the Seneca Falls only sparked the beginning of the struggle of women towards their thirst for equality and gave birth to more feminist groups to take part in their journey. Led by a number of famous and reputable women like Elizabeth Cady Stanton, a woman rights pioneer, the Declaration of Sentiments became a success. â€Å"That all laws which prevent woman from occupying such a position in society as her conscience shall allow, or which place her in a position inferior to that of man, are contrary to the great law of nature, and therefore of no force or authority.† Above is one of the most appealing resolutions presented at the convention. Although this may not hold true to all women since the â€Å"coloured† still

Friday, January 31, 2020

HRM - Summary post Essay Example | Topics and Well Written Essays - 250 words

HRM - Summary post - Essay Example The L&D strategies need to be clear and must mention the learning outcomes whilst promoting the self-esteem of employees. Currently, my focus organization has an effective L&D strategy. Within their budget they have created opportunities of learning via classroom sessions, seminars and various job rotations so an employee fully understands and learns different aspects of his job and his role within the organization. As effective as it is, the mundane routine often leads the employees to be strayed. The continuous office routine incorporated with lengthy seminar and classroom session sometimes seem meaningless to the employees. Job rotations too are difficult to manage and incorporate. On the other hand learning from everyday activities or incidental learning must be incorporated in the strategy for a better training. Make the training fun so the employees wish to learn and excel. Providing incentives at the end of training session would optimize the employee’s performance. The employees must be sent on field for some practical knowledge and must be trained to implement these details when they return to the

Thursday, January 23, 2020

Combining Environmental Groups in Order to Preserve Wildlife :: Environment Environmental Pollution Preservation

Combining Environmental Groups in Order to Preserve Wildlife Environmental issues have been a problem all over the world.   Some species are constantly being declared endangered and on the verge of extinction.   A group of concerned people join together to raise funds in order to improve the habitat or produce more of   the endangered species.   These organizations have proved to be successful.   Many have even removed plants and animals from the long list of endangered species.   A problem that persists within the environment groups is the use of funding.   The organizations bring in a great deal of money from contributors, but all of the donations are not going toward the groups certain goal to save the endangered.   Some of the money is spent on paying employees, organization expenses, and most of all on advertising (Belt 2).   It is absolutely unnecessary for donated money to be spent just to get more contributors.   If that money went toward the use of scientific work or habitat repair, the environment groups would be and even greater success and so much more could be done to preserve the planets endangered.   I propose that we combine all environmental groups into one.   If they were to all join together, so much more could be done to save the plants and animals that are becoming extinct.   Environment groups have already done so much to help better the wildlife.   Many have raised enough money to improve the habitat of and endangered species or even encourage the reproduction of almost extinct animals.   This is what they should be doing with all of the money that is donated toward the certain organizations, but it is not (Short 1).   The groups have to spend a great deal of their money for a numerous amount of unnecessary reasons.   They have to pay for traveling, promotions, and advertising, which in no way benefits the endangered plants and animals.   One of the main reasons for combining all of the groups, is that it would be more beneficial for   the spending of funds.   The amount of money that environmental groups bring in is outrageous.   One of the larger groups has an annual budget of $64 million dollars.   They turn around and spend $54 million dollars of that for advertising in order to get more contributors (Belt 1).   So much of the money donated to environmental groups is spent on frivolous activities.   $12 million dollars is being spent to keep a killer wale happy.

Wednesday, January 15, 2020

Dissertation: Fast Food Restaurants

ABSTRACT Organizational behaviour in fast food industry is an important area to analyze as fast food sector is growing rapidly. It has direct positive relation with organizational productivity. Around the globe, the penetration of fast food sector is enormous. A field study was conducted in order to evaluate the employees’ perception of various dynamics of organizational behaviour.The context selected was the fast food restaurants of Pakistan. A sample of 100 fast food restaurants’ employee was selected and data was collected using pre-printed structured questionnaires. The main data collection technique employed was factor loading using principle component analysis. It was performed on various constructs which were used to understand the organizational behaviour.The findings of this dissertation exerts organizational decision markers to focus on acceptance of change by managers and employees, being more responsive to customers’ suggestions, employees awareness a bout organizational mission, non-monetary appreciation by the colleagues and seniors, task prioritization, intra-team dynamics, workload adjustment, resource sufficiency, organizational justice in the form of fairness, imparting training to the employees, job relevant training to employees, provision of congenial work environment to employee, security at work place, coordination with employees, ensuring transparency while promoting people and elimination of biasness among employees. The accomplishment of these would have important bearings on overall organizational behaviour and will ultimately improve the productivity of the organization. Like many researches, this research also has some limitations. Future research should take in to account these short comings. Table of Contents ABSTRACT1 You can read also Classifications of RestaurantsCHAPTER 1: INTRODUCTION OF DISSERTATION: AIMS AND OBJECTIVES OF DISSERTATION5 1-1: A Brief Account of the Area of Interest:5 1-2: Choice Rationale of the Thesis Research:6 1-3: Aim of the Dissertation Research:7 1-4: Fast Food Industry of Pakistan – the Context:7 1-5: Research Questions of Dissertation:8 1-6: Research Objectives of Dissertation:9 1-7: Nature of Research Output and Final Outcome of Dissertation:10 1-8: Structure of the Thesis:11 1-9: Chapter Summary:12 CHAPTER 2: REVIEW OF ACADEMIC AND SCHOLARLY LITERATURE13 2-1: Organizational Behaviour– An Imperative issue for Businesses:13 2-2-1: Culture:15 2-2-2: Change:16 2-2-3: Customer Orientation:17 2-2-4: Rewards and Recognition:18 2-2-5: Leadership/Supervision:19 -2-6: Fair Treatment of Employees:19 2-2-7: Job Characteristics:20 2-2-8: Training:20 2-2-9: Work Environment:21 2-3: Summary:22 CHAPTER 3: THEORETICAL FRAMEWORK OF THE DISSERTATION23 3-1: Theoretical Und erpinnings – Rationale:23 3-2: Research Aims and Objectives:24 6. 1. 13-2-1: Background Discussion:24 6. 1. 23-2-2: Research Aims:25 6. 1. 33-2-3: Research Objectives:26 3-4: Summary:32 CHAPTER 4: DESIGN, METHODOLOGY AND METHOD(S) OF DISSERTATION RESEARCH33 4. 1: Nature of Research Endeavours:33 4. 2: Type of Research:34 4. 3: Reference to Sampling Frame:35 4. 4: Population Attributes and Sampling Design:35 4. 5: Decision on Sample Size:36 4. : Characteristics of Data Collection Instrument:36 4. 7 Pre-Testing the Data Collection Instrument:37 4. 8: Field Survey and Data Collection – Primary and Secondary Research:37 4. 9: Data Analysis and Report Writing:38 4-10: Summary of the Chapter:39 CHAPTER 5: FINDINGS AND ASSOCIATED DISCUSSION40 5. 1: The Pakistani Fast Food Sector – Context of Dissertation:40 5-2: Reliability Analysis:42 5 – 3: Review of Dissertation’s Aim and Associated Objectives:43 5 – 4: Demographic Profile of the Employees:44 5 – 5: Primary Data Analysis:46 5 – 6: Research Objective 1: To explore the employees’ perception of culture of fast food restaurants of Pakistan. 9 5 – 7: Research Objective 2: To explore the employees’ perception of change dynamics of fast food restaurants of Pakistan. 52 5 – 8: Research Objective 3: To explore the employees’ perception of customer orientation of fast food restaurants of Pakistan56 5 – 9: Research Objective 4: To explore the employees’ perception of leadership dynamic of fast food restaurants of Pakistan. 61 5 – 10: Research Objective 5: To explore the employees’ perception of rewards and recognition of fast food restaurants of Pakistan. 64 5 – 11: Research Objective 6: To explore the employees’ perception of job characteristics of fast food restaurants of Pakistan. 7 5 – 12: Research Objective 7: To explore the employees’ perception of fair treatment with employ ees among fast food restaurants of Pakistan72 5 – 13: Research Objective 8: To explore the employees’ perception of training among fast food restaurants of Pakistan75 Table 5 – 37 gives the rotated component matrix of training. It shows that two factor were extracted when factor loading was applied. The first was â€Å"number of trainings given to employees in last six months† (0. 959) and â€Å"number of trainings† given in last one month’ (0. 956). The factor could be termed as â€Å"recent training offered to employees†. The second factor extracted was loaded on two variables i. e. , â€Å"employees training on assessed needs† (0. 63) and â€Å"employees are trained to meet changes in job† (0. 873). The factor extracted could be named as â€Å"job relevant training†. 78 5 – 14: Research Objective 9: To explore the employees’ perception of work environment among fast food restaurants of Pakistan. 7 8 5 – 13: Summary:82 6-1: Conclusion of the Dissertation:84 6-2: Recommendations:85 6-2-1: Recommendation 1: Change Dynamics:86 6-2-2: Recommendation 2: Customer Orientation:87 6-2-3: Recommendation 3: Leadership Dynamics:87 6-2-4: Recommendation 4: Rewards and Recognition:87 6-2-5: Recommendation 5: Job Characteristics:88 6-2-6: Recommendation 6: Fair Treatment with Employees:88 6-2-7: Recommendation 7: Training:89 -2-8: Recommendation 8: Work Environment:89 6-2-9: Recommendation 9: Culture:90 6-3: Limitations of Research:90 6-3: Future Research Opportunities:91 REFERENCES92 APPENDIX101 QUESTIONNAIRE102 CHAPTER 1: INTRODUCTION OF DISSERTATION: AIMS AND OBJECTIVES OF DISSERTATION This is the first chapter of the dissertation. It will contribute a brief overview of the dissertation topic. It will also contribute the aims and objectives of the dissertation research. Further to this, this chapter will underscore the final outcome of the dissertation along with dissertation struc ture. In addition to this, the chapter will also contribute the structure of the dissertation.The chapter will end with the summary of the chapter. 1-1: A Brief Account of the Area of Interest: The world is at the verge of transition (Adler and Gundersen, 2008). This exerts enormous pressures on managers to sharpen their skills with reference to dynamic issues. Priem et al. (1995) suggested that environmental dynamism dictates the decision making process and firm performance. Thompson (1967) highlighted that organizations are open systems situated within an independent external environment. Garg et al. (2003) suggested that these environmental concerns are also closely related to the selection of senior managers in the organisation. Businesses are growing day by day. Increase in he size changes the ownership pattern and separated the ownership form the management of organization. There are different managers who work on the behalf of their owners and managers have other people who w ork for their managers. These managers assume responsibility of manipulating resources as well as day-to-day running of the enterprise so as to ensure the accomplishment of short-range and long-range plans. An organization is a group of people arranged in different teams and department in a particular manner. These people generally belong to the society where the organization is located. This collection of people generally holds for an extended period of time and work together towards accomplishment of organization’s long-term mission.According to Cartwright (1965), an organization can be regarded as a collection of related people arranged on the bases of their interdependence on each other yet with an emphasis on the whole. The behaviour of people within organization is controlled and can be forecasted quite often. The contribution of people or parts of the system would lead to the accomplishment of organizational goals and objectives. Organizational behaviour involves study of activities of people and their behaviour that influences organizational performance. The core areas of OB include motivation, leader behaviour, group structure and processes, change process, job and work design and work stress (Bigelow et al. , 1999).Research in the domain of organizational behaviour corroborates an association between behaviour of an organization and its productivity level. The work of Hansen and Wernerfelt (1989) revealed that as compared to economic indicators of organizational performance, the factors associated with organizational behaviour have twice as much explanatory power as much the economic variables. The study of organizational behaviour draws attention to lot of areas which might be advantageous or cumbersome for the organization. It identifies issues like workforce diversity and offers solutions to manage it. The insights arising out of OB enables managers to harness the workers’ efficiency. This is generally accomplished through empowering employees.It also guides managers to design jobs and workplace in such a way as to facilitate achievement of organizational goals and objectives and reduce job stress (Robbins, 1998). 1-2: Choice Rationale of the Thesis Research: Organizational behaviour in fast food industry is an important area to analyze as fast food sector is growing rapidly. Fast food items can be cooked rapidly and thus can be obtained in no time. Around the globe, the penetration of fast food sector is enormous. It gives convenience for busy lifestyle yet it is high in calories, sugar and fat (Glanz et al. , 1998). Many people don’t have their eating schedule in terms of breakfast, lunch and dinner.It is generally defined as immediate consumption food available at premises or in specific eating areas (Data Monitor, 2005). Bender and Bender (2000) highlighted that fast food items do not have large variety of goods and generally adopts a unique production processes. Hamburgers, pizzas chicken and sandwi ches are specialized fast food products. Fast food industry is regarded as a basis for obesity. Many US fast food producing firms faced court trial because of public concerns on obesity (Adams, 2005). Importance of nutritional values of fast food was also analyzed by researchers (Nayga Jr, 1997, O Dougherty et al. , 2006). Further to this, Brown et al (2000) also emphasized the importance of understanding nutritional requirements and fast food for youngsters.The above discussion asserts the importance of understanding or studying the fast food organization. This dissertation will use the context of fast food industry and will analyze dynamics of organizational behaviour in the said context. 1-3: Aim of the Dissertation Research: This research focuses on analysis of the â€Å"perception of employees about various dynamics of organizational behaviour in fast food industry of Pakistan†. The fast food industry is growing rapidly in Pakistan. It incorporates mushroom growth of bot h international and national fast food chains in various parts of the country. This phenomenal growth gained prominence in 1993 and since then it has been unmatched. The various imensions of organizational behaviour envisaged for this dissertation research include organizational culture, change dynamics, customer orientation, leadership dynamics, rewards and recognition, job characteristics, fair treatment, training and work environment. 1-4: Fast Food Industry of Pakistan – the Context: In contrast to past, where the hotels and restaurants were serving traditional and local food, the trend is now shifting towards Western meals especially fast food. The fast and busy life of residents of Pakistan is leading to more and more people dining out. Now-a-days, one can find fast food and fast food restaurants in all parts of the country. People can find fast-food literally every where. Hospitals are serving fast-food. One can stop at a nearby shopping centre.Gas Stations added separ ate sections which serve fast food. University, college and school cafeterias are offering fast food. One may find huge crowds of people in fast food restaurants on weekends. The Pakistan’s fast food market comprises of global giants like Kentucky Fried Chicken (KFC), Pizza Hut, McDonalds, Hardees, etc. In addition to these, Hilal Fried Chicken (HFC), Al-Najam Fried Chicken (AFC), Fried Chicks, Italian Pizza and many other small firms are also gaining popularity. People from all walks of life and from all ages are visiting these restaurants. Despite its nutritional value, the fast food is also becoming a status symbol.According to Health and Integrated Survey (2009), the average spending of a household on food and related is around 44 percent of the total spending. Moreover, the population of Pakistan has exceeded 170 million. This large size of population spending huge sum of money on their food and related item makes fast food sector really a lucrative area for investment. Pingali (2007) also reported that in Asian people are increasingly using western food and this trend is also influencing the food management system in this country. One of the trends out of this westernization of food in Asia is the outburst of fast-food restaurants in Asian countries. 1-5: Research Questions of Dissertation:The achievement of above stated research aim requires answering number of research questions. These research questions are given hereunder: 1) What is the employees’ perception of culture of fast food restaurants of Pakistan? 2) What is the employees’ perception of change dynamics of fast food restaurants of Pakistan? 3) What is the employees’ perception of customer orientation of fast food restaurants of Pakistan? 4) What is the employees’ perception of leadership dynamic of fast food restaurants of Pakistan? 5) What is the employees’ perception of rewards and recognition of fast food restaurants of Pakistan? 6) What is the em ployees’ perception of job characteristics of fast food restaurants of Pakistan? ) What is the employees’ perception of fair treatment with employees among fast food restaurants of Pakistan? 8) What is the employees’ perception of training among fast food restaurants of Pakistan? 9) What is the employees’ perception of work environment among fast food restaurants of Pakistan? For each of the above mentioned research question, research objectives are developed which are give in the next section. 1-6: Research Objectives of Dissertation: In order to achieve research aim and answering research questions, various research objectives were developed. These are based on selection of nine constructs that have been identified from the literature. It is envisaged that the disseration would encompass following research objectives: ) To analyze the employees’ perception of culture of fast food restaurants of Pakistan. 2) To analyze the employees’ percep tion of change dynamics of fast food restaurants of Pakistan. 3) To analyze the employees’ perception of customer orientation of fast food restaurants of Pakistan 4) To analyze the employees’ perception of leadership dynamic of fast food restaurants of Pakistan. 5) To analyze the employees’ perception of rewards and recognition of fast food restaurants of Pakistan. 6) To analyze the employees’ perception of job characteristics of fast food restaurants of Pakistan. 7) To analyze the employees’ perception of fair treatment with employees among fast food restaurants of Pakistan ) To analyze the employees’ perception of training among fast food restaurants of Pakistan 9) To analyze the employees’ perception of work environment among fast food restaurants of Pakistan. 1-7: Nature of Research Output and Final Outcome of Dissertation: The accomplishment of this dissertation will facilitate organizational decision makers, particularly the sen ior management, in developing an understanding of various factors which are perceived to be important dimensions of organizational behaviour. This understanding could serve as a basis for various insights about evaluating their (senior management) current endeavours and subsequent decision making.By working on various dimensions of organizational behaviour, an organization can improve employees’ comfort level with the organization which has direct link organizational performance and profitability. The final outcome of the dissertation is a reduced list of factors which will be regarded as more important by the employees. The dissertation research involves identification of a number of factors from literature which are perceived to be the determinants of organization behaviour. These variables are reduced to few factors by using factor analysis. 1-8: Structure of the Thesis: This dissertation comprises of six chapters. At the outset of each chapter, the introduction of the cha pter is given.Similarly, each chapter ends with conclusion of the chapter. This section reveals a brief snapshot of each chapter. Chapter 1- Introduction of Dissertation: Aims and Objectives of Dissertation: This was the first chapter of the dissertation. This chapter emphasized the importance of studying organizational behaviour and importance of fast food industry. It also put forth the research aims and objectives. This chapter ended while elaborating the final outcome of the dissertation research and overall structure of the dissertation. Chapter 2 – Review of Academic and Scholarly Literature: This chapter will contribute the literature on importance of studying organizational behaviour.It will elaborate all the constructs (organizational culture, change dynamics, customer orientation, leadership dynamics, rewards and recognition, job characteristics, fair treatment, training and work environment) and related variables. It would also contribute an overview of global fast food industry with a particular emphasis on why it should be studied. This chapter will extract variables that will serve as the basis of development of theoretical framework. Chapter 3 – Theoretical Framework: This chapter will be linked with previous chapter (Review of Academic and Scholarly Literature) and will present the theoretical framework developed for this dissertation. It would dictate the methodology and associated areas of research.Chapter 4 – Methodology: This chapter will contribute the details of various research techniques which will be used for accomplishment of the dissertation research. Various sections that will be presented in this chapter will include population selection and sampling design, questionnaire development, pre-testing and piloting, overview of statistical techniques and other connected issues. Chapter 5 – Findings and Discussion: This chapter will present findings based on the dissertation research. These findings will be lin ked with the dissertation research objectives. Chapter 6 – Conclusion, Limitations and Future Research Areas: This will be the last chapter of the dissertation and would contribute conclusion, limitations and future research areas. 1-9: Chapter Summary:This chapter highlighted the overall aim of the dissertation and associated research objectives. It exerted the importance of understanding of organizational behaviour and identified various constructs which will be studied during the course of research. This chapter also contributed a snapshot of final outcome of the dissertation research and overall structure of the dissertation. The next chapter will contribute literature review on organizational behaviour and associated constructs. CHAPTER 2: REVIEW OF ACADEMIC AND SCHOLARLY LITERATURE The last chapter gave the introduction of the dissertation. This chapter presents review of literature on various constructs which are subject of discussion of this dissertation.These include culture, change, customer orientation, rewards and recognition, leadership/supervision, fair treatment of employees, job characteristics, training and work environment. The chapter starts with the importance of understanding and studying organizational behaviour and ends with the conclusion. 2-1: Organizational Behaviour– An Imperative issue for Businesses: Adler and Gundersen (2008) suggested that present era is observing a high level of transition from one type of general and business practices to others. Kaplan and Norton (2001) suggested that in such hostile and dynamic environment, organizations attempt to perform better strategies as compared to their rivals. The key to perform better than rivals is to formulate better strategies as compared to the competitors firms.The organizations, in an attempt to compete in the industrial age, attempt to formulate and apply knowledge based strategies yet it has lot of challenges. In contrast to the previous century, where the envi ronmental change is incremental, the current era is characterized by a rapid change in organization’s environment. Saint-Onge (1999) commented on organizations’ abilities and suggested that in the wake of such speedy change, the key to shine out of the crowd is to be better informed as compared to your counter-parts. Further to this, Kennerley and Neely (2003) supported this idea and suggested that the dynamism of environment requires organizations to continuously change the course of action so as to match with the situation.Katz and Kahn (1978), long ago, referred to organizations as open systems. They further exerted that being an open system the organizations interact with the external environment and takes influence from the happenings in the external environment. Earlier, Thompson (1967) contributed similar idea. The work of Garg et al. (2003) suggested that these environmental concerns are in issue of primitive importance for the organization decision makers spec ially top management. Consequently, the changes in the external environment are closely monitored and their possible influence on the organization is also gauged. In the present times, the size of businesses is increasing.This brings additional challenges for the organizations as it also results in change in ownership and management pattern of the organization. Increasingly, the ownership and management of the organization is getting distinct. Organizations, being governed by the managers, instead of owners exerted that managers and employees are important stakeholders of the enterprise. They are the one who make important decision making about the enterprise’s resources. Moreover, they are the one who directs the working of the organization in certain directions so as to enable its ultimate purpose, the mission. Mintzberg (1980) regarded that organizations are coordinated units where people tend to synchronize their work with each other so as to make necessary mutual adjustm ent.Further to this, the work of Cartwright (1965) also highlighted the features of organizations as a collection of related people who are put together in such a way that they have certain level of dependence on each other. All of these people, if taken together, results in the full organization. The behaviour of the people in the form of their contribution towards attainment of organization goal is important. Such behaviour is often controlled and forecasted by the organizational decision makers. The working of people, their behaviour and the influence of behaviour on the organizational performance constitute organizational behaviour (OB). The study of organizational behaviour encompasses variety of areas that has to be studied.These include work stress, motivation, leader behaviour, group structure and processes, change process and job and work design (Bigelow et al. , 1999). A number of management studies revealed strong positive association between OB and organizational product ivity. Hansen and Wernerfelt (1989) revealed that as compared to economic indicators of organizational performance, the factors associated with organizational behaviour have twice as much explanatory power as much the economic variables. OB highlights both problems and new advantageous vistas for enterprises. It identifies issues like workforce diversity and offers solutions to manage it. OB has been quite influential in increasing the level of employees’ performance.It also guides managers to design jobs and workplace in such a way as to facilitate achievement of organizational goals and objectives and reduce job stress (Robbins, 1998). 2-2:Construct Definitions: The general understanding of the constructs and their various dimensions studied are given under each construct definition. 2-2-1: Culture: It refers to a widespread understanding of organizational value system by the people who form organization (Becker, 1982). As a concept, it has roots in social anthropology and has been extensively used to understand the behaviour of primitive societies (Kotter, 1992). It is concerned about the shared traditions and customs of an organization and organizational members’ feeling about these. Organizations should hire those persons that match with the organizational culture.If hiring is not aligned with organizational culture, it would lead to decrease in motivation and commitment of the hired (Reilly et al. , 1991). Misfit employees have more turnover than individuals who perceive a good fit (Sheridan, 1992). It has been widely used as â€Å"corporate† or â€Å"organizational culture†. The work of Denison (1984) and Furnham (1993) suggested that organizational culture can be used to achieved economic success. For this organization need to have a work force commitment towards various dimensions of organization culture including core values, beliefs and assumptions. This idea was furthered by Hofstede (1980). Moreover, Deal (1982) suggest ed that strong organizational culture is an important determinant of organizational performance.For the dissertation, the construct culture is broken down into various variables including â€Å"inter-group work coordination†, â€Å"intra-Group work coordination†, â€Å"biasness†, â€Å"people orientation†, and â€Å"innovation and risk-taking† (O'Reilly Iii et al. , 1991, Chatman and Jehn, 1994). Tjosvold et al. (1992) suggested that creating a culture in which people at same management level coordinates with each other is a difficult task however, it is critical for the organization. This issue becomes more important if the environment is turbulent. Beer et al. (1994) also highlighted that in the wake of changing external environment, the success of a change management program depends on the extent of coordination between various functional departments as well between various management levels.Similarly, Lemons and Jones (2001) and Meyer and Smith (2000) suggested that if any organization ensures transparency in its systems specially promotion, it would increase the commitment of employees with the organization. They suggested that despite the fact that every year companies spend lot of money in ensuring fair treatment with its employees; the biasness in promotion is still an imperative issue. Kaplan and Ferris (2001) suggested that if employees find problem in organization’s promotion system, it would evoke perceived organizational injustice. Koys (1991)suggested that organizations must maintain transparency in promotion as it is a legal requirement. 2-2-2: Change: Dynamic environment requires organizations to continuously update them as per the needs of the environment.Hall (1987) suggests that typically organizations do not prefer to change themselves and if they are posed to change, they show massive resistance. Organization’s survival depends on its ability to manage change. Similarly, an organization†™s success or failure depends on the things its employees do or fail to do. There are a number of changes that takes place in an organizational setting. This include change taking place in terms of social value system, educational change, political, technological, environmental, market, business, economical and religious, etc. For the purpose of the dissertation research, various dimensions of change that has been incorporated for study include â€Å"acceptance of change by individual†, â€Å"acceptance of change by senior management† and â€Å"rewarding of change†.Paterson and Cary (2002) highlighted that change management programs result in anxiety among employees. Iverson (1996) suggested that if an organization facilitates its employees during the times when a change is brought in, it would result in positive influence on organization. Kavanagh and Ashkanasy (2006) suggested that if senior management provides leadership in change management, it would facil itate change implementation and acceptance by employees. 2-2-3: Customer Orientation: Consumers/customers are at the heart of organizations. Traditional concept of customer’s satisfaction and customers being the profit centre is transforming into customer delight. Nowadays, the uyers are equipped with more information and are better aware in comparison to the past. They have variety of methods through which buyers can check organizational assertions and thus can make an informed decision (Urban, 2003). Customers always try to maximize their value commonly regarded as customers’ perceived value. It can be obtained by comparing a customers’ thinking about the benefits that he derives from a product and all associated costs that he incurred for obtaining that product. It also includes cost of foregoing related options. Those organizations which provide better value to its customers as compared to its rivals enjoy high level of customer loyalty.This idea was substan tiated by Hennig-Thurau (2004) who suggested that if an organization improves the customer orientation of its service employees, it would result in increased customer satisfaction. This would result in enhancement of customers’ commitment and organization would be better able to retain these customers. Brady and Cronin (2001) highlighted that if the employees maintain customer orientation, it would influence the perception of the customers towards quality of the products and services produced by the organization. So, that makes a strong point that organizations should focus on creation and provision of relatively better value to its customers (Learning, 1998).Shapiro (1988) suggested that customer orientation contends that customer related information should be transmitted at all levels across the organization. It should then be used in the strategic management and for tactical decision. Similarly, Kohli (1990) exerted that customer orientation deals with the extent to which information about the buyers is gathered and incorporated in decision making. similarly, Ruekert (1992) furthered this idea. The significance of customer orientation can be witnessed from its high recognition in management literature. Similarly, the work of Narver and Slater (1990) and Jaworski and Kohli (1993) substantiated that customer orientation brings economic benefits to an organization. employees’ empowerment to provide high value services†, customer feedback system† and â€Å"customer focused processes† were used to evaluate â€Å"customer orientation† construct for this dissertation research. 2-2-4: Rewards and Recognition: Despite the fact that in day to day life both recognition received from the management and the rewards given to an employee are used interchangeably yet both are not the same (Hansen et al. , 2002). The area has attracted a lot of discussion and had been topic of lot of research papers (Cooley and Lawrence, 2006, McDermo tt and O'Dell, 2001, Bessant and Francis, 1999, Johnson, 1996). However, it is regretful that despite a lot of attention in academic and scholarly literature, the traces of concept in business world are scarce.The evidence of use of rewards and recognition in developing employees’ motivation development is still not very evident. As a result of this, such organizational initiatives did not prove very fruitful. The work of Lewis (1998) and Parasuraman (1987) suggested that an organization can improve the quality of its service offering by linking the same with rewards that it offers to its employees. The same was also corroborated by Kotler (1999). Similar evidence arise from the work of Bowen (1999) who suggested that if employees were given rewards then they would have enhanced focus in managing the customers complaints. It’s a common phenomenon that one will feel dissatisfied if he/she is not rewarded or recognized for his/her good work.Monetary rewards are regarded as one of the top rated motivators (Locke et al. , 1980). Money is the mean which provides employees an opportunity of satisfying numerous desire. In addition to this, money can also act as a barometer through which an employee evaluate his worth in comparison with other employees who serve with them (Doyle, 1992). Moreover, money is not important to all employees. According to Maslow (1943), human beings have variety of needs categorized into various groups. He further exerted that high achievers are intrinsically motivated. For the purpose of this dissertation, the provision of â€Å"Monetary† and â€Å"Non-Monetary Rewards† were used.Where monetary rewards essentially takes the form of money, Govindarajulu and Daily (2004) suggested that non-monetary rewards takes various forms including appreciation, paid-vacation, preferred parking space, time-off from normal working in the office, etc. 2-2-5: Leadership/Supervision: Yukl (1994) highlighted that the concept of lea dership gained a lot of prominence through-out the century. Despite the fact that there a variety of leadership definitions are in place (Bass, 1990) yet the underlying meaning behind all of them is that it is meant to influence to influence organizational members towards attainment of goals and objectives of the enterprise.The leaders and founders of the organizations are also influential in setting the overall value systems and in shaping the culture of the enterprise (Schneider, 1987, Schein, 1990). Managers use formal strategic management process to identify and select appropriate goals and actions for the organization (Chandler, 1962). Determining the organization’s mission and goals is the first step of the planning process. Once the mission and goals are agreed upon and formally stated in the corporate plan, they guide the next steps by defining which strategies are appropriate and which are inappropriate (Pearce, 1992). The organization’s mission, objectives, s trategies and tactics must be communicated to everyone.Therefore, it is the responsibility of the supervisors that they should ensure that all efforts had been made in communicating targets, matters of importance and urgency, technical specifications, words of advice and motivation along with performance related feedback. Friendly and accommodating supervisors yield more satisfied and motivated employees. 2-2-6: Fair Treatment of Employees: People exert power and try to influence each other when they work in group. They try to find ways to influence others, earn rewards and advance careers (Culbert and McDonough, 1980). They exhibit or attempt to exhibit political behaviours to persuade the distributions of privileges and punishments (Mintzberg, 1984). Organizations protect the rights of all employees. It leads to respectful working relationships among employees, inculcates sense of ownership and provides a fair dispute resolution system.If a person is not treated fairly, he will fe el betrayed. It would possibly result in employee’s de-motivation and will adversely affect his/her performance. â€Å"Perception about fairness of disciplinary actions†, â€Å"proper allocation of training opportunities†, â€Å"fair dispute resolution† and â€Å"mutual trust† was included in this construct. Collier and Esteban (2007) suggested that if an organization treats its employee fairly, it would increase employee commitment with the organization and is an indicator that organization is fulfilling its corporate social responsibility. Engelbrecht et al. (2008) highlighted that in the present days the organizations have deputed a very diverse workforce.This diversity has lead to significant amount of conflicts in the organization. This demands that managers must treat all the employees fairly irrespective of their gender, age, ethnic background, etc. 2-2-7: Job Characteristics: Employees adopt attitudes and behaviours towards their jobs on th e basis of social information processing (Salancik and Pfeffer, 1978). People have the ability to adjust their attitudes and behaviour on the basis of their perception about the changing nature of job. Moreover, employees develop psychological contracts about their jobs that set out what management expects from the employees, and vice versa (Robinsons et al. , 1994).These physiological contracts, being an important determinant of employees’ behaviour should be clearly communicated to employees (Schein, 1980). â€Å"Skill variety†, â€Å"task identity†, â€Å"task significance†, â€Å"autonomy† and â€Å"feedback† proposed by Hackman and Oldham (1976) were used to observe job characteristics for the purpose of this dissertation. According to Morris and Venkatesh (2010), the job characteristics are strongly associated with job satisfaction and organization performance so organization must focus on job design and characteristics. Similarly, Woo d (2008) suggested job characteristics are often ignored while looking at job satisfaction.He suggested that organization must not ignore it as it is strongly associated with job satisfaction. 2-2-8: Training: Organizations are inefficient because they are managed by inefficient persons. Inefficient employees yield lower productivity and hence lower efficiency. It results in lower profitability and hence lower investment in Human Resources. This results into a vicious circle of inefficiency (Fani, 2005). Similarly, the work of Bettencourt (1996), Lewis (1998) and Yavas (1998) out forth that organization must focus on training its lower level employees not only to improve their technical capacity but also in improving the interpersonal skills of the employees.These skills would held them in coping with changing requirements of the buyers of products and services, handled different and complex personalities and adjusting themselves according to the situation so as to enable them deliv er enhanced value to the buyers. Boshoff (2000) exerted the training of employees and highlighted that if the employees are not equipped with relevant technical and behavioural skills, they would be unable to deliver competitive service and it would result in high level of customers’ grievance. This was further corroborated by Bitner (1990) who reported that around 43 percent of the complaints from dissatisfied customers were the outcome of the incapable people handlings customers’ affairs.Even, competent and skilled employees don’t remain competent and skilled forever. Due to increasing competition, technological changes and quest for improved production process, job roles changes and so does the required skills. Organizations all over the world spend billions each year on employees’ training. The money is generally used to educate employees, provide them with opportunities to learn new things so that they can do their job better and enhance their future career. Individualization of training programs increases their effectiveness (Kolb, 1976). â€Å"Training Need Analysis†, and â€Å"Previously taken training† were used to measure this construct.According to Dysvik and Kuvaas (2008), if an organization gives an employee training opportunities, the employee would not learn new things but would also become loyal and committed to the organizations. Both of these things will positively influence the organizations’ performance. Similarly, Schmidt (2007) suggested that if the employees of an organization are satisfied are with the workplace learning and formal training provided to them, it would positively influence their job satisfaction. 2-2-9: Work Environment: Nature of Job, physical environment and work space and characteristics of job can influence an employee’s work behaviour. Evidence indicates that even relatively modest variations in temperature, noise, lighting, or air quality can exert appreciable effects on employee performance and attitudes (Bell et al. , 1990).For instance, an increase in temperature can adversely affect both physical (Bell et al. , 1982) and mental performance of a person (Fine and Kobrick, 1978). Similarly, unpredictable noise interferes with an employee’s ability to concentrate and pay attention (Baron, 1994). Loud and unpredictable noises also tend to increase excitation and led to reduced job satisfaction (Bell et al. , 1990). Furthermore, right intensity of light is related with task difficulty and required accuracy (Wineman, 1982). â€Å"Workplace Cleanliness†, â€Å"Temperature†, â€Å"Ergonomics†, â€Å"Lighting† and â€Å"Ventilation†, and â€Å"workplace safety† were used in the dissertation for this construct.Biswas and Varma (2007) suggested that the firms should provide safe and healthy working environment to its employees. It would give employees a comfort factor in the organization and they b ecome more productive employees. Peek-Asa et al. (2007) suggested that organization should ensure that it has a comprehensive workplace security program 2-3: Summary: This chapter put forth the review of academic and scholarly literature on the dissertation area. It suggests that organizations are in a constant state of flux. External environment triggers organizational change. Such change in the organizations exerts their continuous study so as to observe the related phenomena. OB involves studying influence of people and their behaviour on organizations.The research in the domain of organizational behaviour encompasses research into variety of associated areas. These include work stress, motivation, leader behaviour, group structure and processes, change process and job and work design. A number of management studies revealed that there is a strong relationship between organizational behaviour and organizational performance. This chapter offers review of literature of various cons tructs. These constructs includes culture, change, customer orientation, rewards and recognition, leadership, fair treatment, job characteristics, training and work environment. The next chapter will give the theoretical framework of the dissertation. CHAPTER 3: THEORETICAL FRAMEWORK OF THE DISSERTATIONThis chapter will contribute the theoretical framework for this dissertation research. It would use the literature contributed in the preceding chapter and will put forward the proposed model. 3-1: Theoretical Underpinnings – Rationale: Thompson (1967) and Katz and Kahn (1978) suggested that organizations are open systems. They further exerted that being an open system the organizations interact with the external environment and takes influence from the happenings in the external environment. Garg et al. (2003) argued that these environmental concerns are in issue of primitive importance for the organization decision makers specially top management. Presently, the size of busin esses is increasing.This brings additional challenges for the organizations as it may result in change in ownership and management pattern of the organization. Increasingly, the ownership and management of the organization is getting distinct. Organizations, being governed by the managers, instead of owners exerted that managers and employees are important stakeholders of the enterprise. They are the one who make important decision making about the enterprise’s resources. Moreover, they are the one who directs the working of the organization in certain directions so as to enable its ultimate purpose, the mission. Mintzberg (1980) regarded that organizations are coordinated units where people tend to synchronize their work with each other so as to make necessary mutual adjustment.Similarly, the work of Cartwright (1965) also highlighted the features of organizations as a collection of related people who are put together in such a way that they have certain level of dependence on each other. All of these people, if taken together, results in the full organization. The behavior of the people in the form of their contribution towards attainment of organization goal is important. Such behavior is often controlled and forecasted by the organizational decision makers. The working of people, their behavior and the influence of behavior on the organizational performance constitute organizational behavior (OB). The study of organizational behavior encompasses variety of areas that has to be studied.These include work stress, motivation, leader behavior, group structure and processes, change process and job and work design (Bigelow et al. , 1999). A number of management studies revealed strong positive association between OB and organizational productivity. Hansen and Wernerfelt (1989) revealed that as compared to economic indicators of organizational performance, the factors associated with organizational behaviour have twice as much explanatory power as much the economic variables. OB highlights both problems and new advantageous vistas for enterprises. It identifies issues like workforce diversity and offers solutions to manage it. OB has been quite influential in increasing the level of employees’ performance.It also guides managers to design jobs and workplace in such a way as to facilitate achievement of organizational goals and objectives and reduce job stress (Robbins, 1998). 3-2: Research Aims and Objectives: 1 3-2-1: Background Discussion: The fast food industry is growing rapidly in Pakistan. It incorporates mushroom growth of both international and national fast food chains in various parts of the country. This phenomenal growth gained prominence in 1993 and since then it has been unmatched. According to Economic Review (1998), fast food restaurants are penetrating in Pakistan. This upsurge of fast food restaurants is the results of rapidly changing culture of Pakistan and ever high level of globalization which brought wes tern value system to Pakistan.The life style of Pakistani people is becoming busier and busier. This left with very less time for cooking at home. At lunch times, people are using instant or fast foods. Similarly, Pakistanis have now easier access to western food. A large number of national and international fast food chains are opening a number of outlets all over the Pakistan. Initially, these fast food outlets were restricted to large and/or major cities of Pakistan, including federal and provincial capitals yet presently there operations have also been extended to other cities. 2 3-2-2: Research Aims: This section deals with the presentation of dissertation aims and objectives.The main purpose of this research, as envisaged in chapter one of this dissertation, was the analysis of â€Å"the perception of employees about various dynamics of organizational behavior in Fast food industry of Pakistan†. The various dimensions of organizational behavior envisaged for this disser tation research include organizational culture, change dynamics, customer orientation, leadership dynamics, rewards and recognition, job characteristics, fair treatment, training and work environment. For each of these dimensions, research objectives were developed. The achievement of these research objectives would ensure the fulfillment of overall research aim. The research model is presented here under: [pic] Figure 3-1: The Dissertation Model Figure 3-1 gives the theoretical framework for dissertation research.It shows that culture, change, customer orientation, rewards and recognition, supervision and leadership, fair treatment, job characteristics, training and work design are the factors that influence organization behavior. 3 3-2-3: Research Objectives: The overall aim of the dissertation is broken down into various research objectives. The research objectives of this dissertation are linked to nine constructs. The selection of these nine constructs is the result of the revi ew of academic and scholarly literature which was given in the second chapter of this dissertation. This section highlights research objectives along with the various variables which would be used to capture the perception of employees about various organizational dynamics.The research objectives along with extracted variables in diagrammatic form are given here under: Research Objective 1: To explore the employees’ perception of culture of fast food restaurants of Pakistan. [pic] Figure 3-2: Variables of Culture Construct Figure 3-2 gives the operational definition of the Culture construct. These variables would be the subject of inquiry through questionnaire. Research Objective 2: To explore the employees’ perception of change dynamics of fast food restaurants of Pakistan. [pic] Figure 3-3: Variables of Change Construct Figure 3-3 gives the operational definition of the Change construct. These variables would be the subject of inquiry through questionnaire.Research O bjective 3: To explore the employees’ perception of customer orientation of fast food restaurants of Pakistan. [pic] Figure 3-4: Variables of Customer Orientation Construct Figure 3-4 gives the operational definition of the Customer Orientation construct. These variables would be the subject of inquiry through questionnaire. Research Objective 4: To explore the employees’ perception of leadership dynamic of fast food restaurants of Pakistan. [pic] Figure 3-5: Variables of Supervision & Leadership Construct Figure 3-5 gives the operational definition of the Supervision and Leadership construct. These variables would be the subject of inquiry through questionnaire.Research Objective 5: To explore the employees’ perception of rewards and recognition of fast food restaurants of Pakistan. [pic] Figure 3-6: Variables of Rewards and Recognition Construct Figure 3-6 gives the operational definition of the Rewards and Recognition construct. These variables would be the s ubject of inquiry through questionnaire. Research Objective 6: To explore the employees’ perception of fair treatment with employees among fast food restaurants of Pakistan [pic] Figure 3-7: Variables of Fair Treatment Construct Figure 3-7 gives the operational definition of the Fair Treatment construct. These variables would be the subject of inquiry through questionnaire.Research Objective 7: To explore the employees’ perception of job characteristics of fast food restaurants of Pakistan. [pic] Figure 3-8: Variables of Job Characteristics Construct Figure 3-8 gives the operational definition of the Job Characteristics construct. These variables would be the subject of inquiry through questionnaire. Research Objective 8: To explore the employees’ perception of training among fast food restaurants of Pakistan. [pic] Figure 3-9: Variables of Training Construct Figure 3-9 gives the operational definition of the Training construct. These variables would be the subj ect of inquiry through questionnaire. Research Objective 9: To explore the employees’ perception of work environment among fast food restaurants of Pakistan. [pic]Figure 3-10: Variables of Work Environment Construct Figure 3-10 gives the operational definition of the Work environment construct. These variables would be the subject of inquiry through questionnaire. 3-4: Summary: This chapter gave the theoretical framework of the dissertation. This chapter linked the research aims and objectives with each other and also contributed the Dissertation model. Moreover, this chapter further linked each construct with the variables which have been deployed in order to operationalize each construct. The next chapter will give methodology of dissertation. CHAPTER 4: DESIGN, METHODOLOGY AND METHOD(S) OF DISSERTATION RESEARCHIn continuation to the previous chapter, which contributed the theoretical framework of the research, the current chapter will deal with the conduct of dissertation research. Major areas covered in the this chapter will be the selection of type of research, selection of population and sample size and sampling procedure, development of data collection instrument and actual conduct of research. 4. 1: Nature of Research Endeavours: In this section, the type of research will be highlighted. As it was suggested in the dissertation proposal, this research not only involves secondary research but also primary research. For secondary research, a detailed literature review was conducted using University’s library resources along with world-wide-web.Specifically, Google scholar and Emerald Insight ® were quite influential in identifying existing literature in the area of organizational behavior and related constructs. It enabled the dissertation candidate to be aware of the relevant domain of body of knowledge. Similarly, the primary research was conducted so as to capture the perceptions of employees about organizational behavior of fast food r estaurants. There are number of methods that can be engaged for the conduct of primary research including personal observation, interviewing, field survey, street ethonography, etc. The main method employed for the conduct of primary research was field survey.Primary research is advocated as compared to secondary research because primary research has more relevance to the issue as compared to secondary research. Further to this, the information generated can also be tailored in primary research and also provides direct and hands-on access to the issue. However, it generally entails more time and resources. It also requires specialized skills in designing the actual survey and subsequent analysis of the data. 4. 2: Type of Research: This section would describe the type of research engaged for this dissertation. For this, the typology suggested by Cooper and Schindler (2006) was engaged. They put forth a classification scheme for categorization of variety of research.This classificati on scheme include variables including data collection strategy, influence of the researchers in varying the research situation, respondents’ viewpoint about the research, points of time on which data was sorted from the respondents, prior crystallization of the research issue. On the basis of above mentioned criteria, the present dissertation is regarded as a descriptive research. This is advocated because of greater extent of crystallization of issue in hand. In primary research, a questionnaire was given to the fast food employee in order to tap their responses. This made this research as a communication sort. Moreover, the questionnaire was administered in the fast food restaurants and no deviation was made in the actual daily routine of the fast food employees.Consequently, the research design is ex post facto. Further to this, it is an inferential research as the insights originating from the survey will be generalized on fast food employees’ population. Moreover, it is a cross sectional research as the data was collected once. A field survey is a method of data collection in which the research goes into the actual place where the respondents, or items from which data is to be collected, are present. Cooper and Schindler (2006) advocated the use of survey for data collection. There are number of reasons for this. For instance, the field surveys are less risky as compared to laboratory experiments and stimulation.It is because the data is collected from actual field setting and is relatively reliable. In addition to this, in field surveys the surveyors reach respondents in their actual routines and own settings. In this situation, the respondents do not find any deviation and the response are highly valid. Further to this, in field surveys the surveyor has less control on the data collection whereas in simulation and laboratory experiments this is more. 4. 3: Reference to Sampling Frame: This section would cover issues related to sampling. Ex traction of sample refers to selection of a subset from the survey population. (Dr. Hani, 2010). Heckman (1979) and Emory (1980) advocated selection of such a subset on a number basis.For example, in lot of instances it is virtually impossible or very difficult to access all the members of population. Moreover, it would also be cumbersome to reach all members, attract lot of financial resources and time. On the contrary, selecting a sample would save lot of time and money. Studying a sample would be less cumbersome as compared to studying entire population. However, Heckman (1979) suggested that such sample should have the same attributes as that of population. 4. 4: Population Attributes and Sampling Design: This section would contribute the details about the population attributes. The population of this research encompasses all those people who are working in fast food chain.Fast food restaurants are those food manufacturers and sellers who serve food in last then 20 minutes. No r eference has been made to the age, gender or to some other demographic characteristics. The questionnaire employed in this research also collected demographic characteristics of the employees. It would be used for generating secondary insights so as to share the context in which research was carried out. The targeted population was employees of fast food restaurants of Pakistan. A convenience based, snow ball sampling technique was used to approach the sample. Goodman (1961), Frank and Snijders (1994) and Kaplan et al. (1987) advocated the use of snow ball sampling.This refers to a situation in which the desired characteristics of the population are scarce. In addition to getting information from sampling unit about themselves, they are requested to share information about other sampling units so that they can be accessed. Data was collected from three cities of Punjab which are Lahore, Gujranwala and Sialkot. The data collection instrument also collected the designation of the resp ondents yet during the initial stages of the survey; respondents show that they were not very comfortable with revealing their identity. This is because of the particular nature of the research topic. It was decided not to emphasize on this question. So, the designation related data was taken out of the analysis.However, on a broad spectrum, the employees interviewed for this dissertation include people who were engaged in cooking food, in-house serving staff, delivery-men and counter staff. Majority of these respondents belong to the restaurants in the posh localities. This is because of the fact that these restaurants exist in the form of a cluster in selected cities. 4. 5: Decision on Sample Size: This section will share insights about sample selection. A sample of 100 fast-food retailers was taken for this research. In taking this decision, cost and time considerations were kept in mind. Both of these issues and geographical distance, constrain the selection of a larger sample s ize.However, the factor loading technique (the main data analysis technique) is not confined to any specific sample size. The Kaiser-Meyer-Olkin measure of sample adequacy is a test that would be engaged to check the appropriateness of sample. Garson (2010) shared insights on deciding about the sample size for factor analysis. The sample size of this dissertation is consistent with his suggestions. 4. 6: Characteristics of Data Collection Instrument: A customized questionnaire was developed for this research. The questionnaire has two parts. First part captures responses of the fast food employees about their perception about organizational behavior.To facilitate the respondents, the questions were grouped on the basis of constructs. Part two of this questionnaire collects information about the demographic profile of the respondents. The questionnaire actually started with salutation and reveals the core aim of the research. It also introduced the dissertation candidate and his acad emic affiliation. The cover page of the questionnaire also shares the method of responding questionnaire by giving an illustration. The dissertation specifically revealed that the collected information would only be used for academic purpose and results will be disclosed in group. The respondents were thanked in anticipation for their support in accomplishing this research. 4. Pre-Testing the Data Collection Instrument: Before the actual start of the field survey, it was important to ensure that data collection instrument should bear certain characteristics. These include brevity, clarity and focus on the issue. Before the actual launch of survey, 3 questionnaires were given to actual respondents and were evaluated for desired characteristics. Certain insights related to use of words, questions sequence and length of questionnaire was adjusted. The questionnaire was improved and launched. The addition of survey filling instruction was an attempt to improve the conduct of the survey. 4. 8: Field Survey and Data Collection – Primary and Secondary Research:At the start of this research, it was envisaged that completion of this dissertation will require both secondary and primary research. Journals, magazine, online databases and library resources were quite influential. So far primary data was concerned; a soft copy of questionnaire was send to the managers of fast food restaurants. The managers of fast food chain were requested to support in accomplishment of dissertation by cooperating in collecting data. The managers were requested to arrange prints of them and share those with employees. The employees filled those questionnaires and retuned them to managers. The managers, on request of dissertation candidate, deputed an employee and get those entered in SPSS and emailed those back to dissertation candidate.As the questionnaires were to be returned to the organizational representative instead of dissertat