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AIOU Solved Project 8508 Report the Budgeting procedure which exists in the organization
Analysis Of Firms Implementation Experiences With Activity Based Costing
Analysis Of Firms Implementation Experiences With Activity Based Costing Acknowledgment
In the name of Allah, the Most Gracious and the Most merciful. All praises to Allah and His blessing for the completion of a thesis. I thank God for all the opportunities, trails and strength that have been showered on me to finish writing the thesis.
Analysis Of Firms Implementation Experiences With Activity Based Costing I experienced so much during this process, not only from the academic aspect but also from aspect of personality. My humblest gratitude to the holy prophet Muhammad (PBUH) whose way of life has been a continuous guidance for me.
The success and final outcome of this assignment required a lot of guidance and assistance of many people and I extremely fortunate to have got this all along the completion of my assignment work. Whatever I have done is only due to such guidance and assistance and I would not forget to thank them.
Abstract
This report is all about to show a Marketing plan for Nike’s products; with reference to older offerings the report shows the plan that how can Nike offer new products in the market. With respect to this the report contains comprehensive marketing plan components including company analysis (Nike’s current and future status), situation or market analysis and competitors analysis; the report shows the Nike’s objectives and marketing strategies in terms of its 4ps that is it is shown that Nike can offer and increase its product range by offering other related products as aerobic products to its customers and set value-based pricing strategy accordingly, and for new offerings it can increase its other media other than commercials that is it can focus more on social media to promote its new products and it may expand its business in other countries as China, Middle-East etc. Beside this, the financial budget of this marketing plan has been discussed which is been forecasted by reviewing Nike’s previous years revenue and marketing expenses figures. Also execution plan as well as contingency plan has been shown which is thoroughly depends upon Nike’s senior management and team work which would make its objectives possible new offering.
Topic: How the deferential cost analysis is performed in the organization
Definition:
Differential cost analysis:
Analysis Of Firms Implementation Experiences With Activity Based Costing Meaning of Differential Cost Analysis Differential costing is a technique where mainly differential costs are considered relevant. Differential cost is the difference in total costs between two acceptable alternative courses of action. The alternative actions may arise due to change in sales volume, price, product mix, or such actions as make or buy or continue or stop production, etc. The key emphasis in differential costing is on change in total costs associated with alternative decisions. When the change in costs occurs due to change in the activity from one level to another, it may result in incremental cost [i.e., increase in costs] or decremental cost [i.e., decrease in costs]. Differential costing is a broader term that includes both incremental costing and decremental costing. The differential cost analysis is a useful tool for the management to know the results of any proposed changes in the level or nature of activity. Under this method, the differential costs are ascertained for each proposal and compared with the expected changes in revenue associated with each proposal. When there is net excess revenue, the proposal will be accepted; otherwise it will be rejected. The determination of differential cost is simple. It represents the difference in the relevant costs for the alternative proposal under consideration
Differential cost analysis involves analyzing the different costs and benefits that would arise from alternative solutions to a particular problem. Relevant revenues or costs in a given situation are future revenues or costs that differ depending on the alternative course of action selected. Differential revenue is the difference in revenues between two alternatives. Differential cost or expense is the difference between the amounts of relevant costs for two alternatives.
Future costs that do not differ between alternatives are irrelevant and may be ignored since they affect both alternatives similarly. Past costs, also known as sunk costs, are not relevant in decision making because they have already been incurred; therefore, these costs cannot be changed no matter which alternative is selected.
Analysis Of Firms Implementation Experiences With Activity Based Costing For certain decisions, revenues do not differ between alternatives. Under those circumstances, management should select the alternative with the least cost. In other situations, costs do not differ between alternatives. Accordingly, management should select the alternative that results in the largest revenue. Many times both future costs and revenues differ between alternatives. In these situations, the management should select the alternative that results in the greatest positive difference between future revenues and expenses (costs).
To illustrate relevant, differential, and sunk costs, assume that Joanna Bennett invested $400 in a tiller so she could till gardens to earn $1,500 during the summer. Not long afterward, Bennett was offered a job at a horse stable feeding horses and cleaning stalls for $1,200 for the summer. The costs that she would incur in tilling are $100 for transportation and $150 for supplies. The costs she would incur at the horse stable are $100 for transportation and $50 for supplies. If Bennett works at the stable, she would still have the tiller, which she could loan to her parents and friends at no charge.
Choice
Demand
1
15,000 units at $6 per unit
2
12,000 units at $7 per unit
3
10,000 units at $8 per unit
4
7,000 units at $9 per unit
The company’s fixed costs of $20,000 per year are not affected by the different volume alternatives. Variable costs are $5 per unit. What price should be set for the product? Based on the calculations shown in the table below, the company should select a price of $8 per unit because choice (3) results in the greatest total contribution margin and net income. In the short run, maximizing total contribution margin maximizes profits.
Choice
Sales Price
– Var. Cost =
Contribution
margin per unit x
Number
of units =
Total
margin
Fixed
costs
Net
income (loss)
1
$6
$5
$1
15,000
$15,000
$20,000
$(5,000)
2
$7
$5
2
12,000
24,000
20,000
4,000
3
$8
$5
3
10,000
30,000
20,000
10,000
4
$9
$5
4
7,000
28,000
20,000
8,000
Accept or Reject Special Orders
Analysis Of Firms Implementation Experiences With Activity Based Costing Sometimes management has an opportunity to sell its product in two or more markets at two or more different prices. Movie theaters, for example, sell tickets at discount prices to particular groups of people—children, students, and senior citizens. Differential analysis can determine whether companies should sell their products at prices below regular levels.
Good business management requires keeping the cost of idleness at a minimum. When operating at less than full capacity, management should seek additional business. Management may decide to accept such additional business at prices lower than average unit costs if the differential revenues from the additional business exceed the differential costs. By accepting special orders at a discount, businesses can keep people employed that they would otherwise lay off.
To illustrate, assume Rios Company produces and sells a single product with a variable cost of $8 per unit. Annual capacity is 10,000 units, and annual fixed costs total $48,000. The selling price is $20 per unit and production and sales are budgeted at 5,000 units. Thus, budgeted income before income taxes is $12,000, as shown below.
Rios company
Income statement
For the period ending May 31
Revenue (5,000 units at $20)
$100,000
Variable costs:
Direct materials cost ($4 per unit)
$20,000
Labor ($1 per unit)
5,000
Overhead ($2 per unit)
10,000
Marketing and administrative costs ($1 per unit)
5,000
Total variable costs ($8 per unit)
$40,000
Fixed costs:
Overhead
$28,000
Marketing and administrative costs
20,000
Total fixed costs
48,000
Total costs ($17.60 per unit)
88,000
Net income
$12,000
Assume the company receives an order from a foreign distributor for 3,000 units at $10 per unit. This $10 price is not only half of the regular selling price per unit, but also less than the $17.60 average cost per unit ($88,000/5,000 units). However, the $10 price offered exceeds the variable cost per unit by $2. If the company accepts the order, net income increases to $18,000.
Analysis Of Firms Implementation Experiences With Activity Based Costing Revenue would increase to $130,000 with the special order. Each of the variable costs increases in total by 60% because total volume increases by 60% (3,000 units in the special order/5,000 units regularly produced). The revised income statement would appear as follows:
Rioscompany
Incomestatement (with Special Order)
FortheperiodendingMay31
Revenue (5,000 units at $20 + 3,000 units at $10)
$130,000
Variable costs:
Direct materials cost ($4)
$32,000
Labor ($1)
8,000
Overhead ($2)
16,000
Marketing and administrative costs ($1)
8,000
Total variable costs ($8 per unit)
$64,000
Fixed costs:
Manufacturing overhead
$28,000
Marketing and administrative costs
20,000
Total fixed costs
48,000
Total costs ($14 per unit)
112,000
Net income
$18,000
Note that the fixed costs do not increase with the special order. Because the special order does not increase the fixed costs, the special order’s revenues need only cover its variable costs.
Analysis Of Firms Implementation Experiences With Activity Based Costing If Rios Company continues to operate at 50% capacity (producing 5,000 units without the special order) it would generate income of only $12,000. By accepting the special order, net income increases by $6,000 ($18,000 net income with a special order – $12,000 net income without special order).
The differential analysis would provide the following calculations:
Accept
Order
Reject
order
Differential
Revenues
$130,000
$100,000
$30,000
Costs
112,000
88,000
24,000
Net benefit of accepting order
$6,000
Variable costs set a floor for the selling price in special-order situations. Even if the price exceeds variable costs only slightly, the additional business increases net income, assuming fixed costs do not change. However, pricing just above variable costs of special-order business often brings only short-term increases in net income. In the long run, companies must cover all of their costs, not just the variable costs.
Adding or Eliminating
Periodically, management has to decide whether to add or eliminate certain products, segments, or customers. If you have watched a store or a plant open or close in your area, you have seen the results of these decisions. Differential analysis is useful in this decision making because a company’s income statement does not automatically associate costs with certain products, segments, or customers. Thus, companies must reclassify costs as those that the action would change and those that it would not change.
Sell or Process Further
Sometimes two or more products result from a common raw material or production process; these products are called joint products. Companies can process these products further or sell them in their current condition. For instance, when Chevron refines crude oil, it produces a wide variety of fuels, solvents, lubricants, and residual petrochemicals.
Management can use differential analysis to decide whether to process a joint product further or to sell it in its present condition. Joint costs are those costs incurred up to the point where the joint products split off from each other. These costs are sunk costs and are not considered when deciding whether to process a joint product further before selling it or to sell it in its condition at the split-off point.
The following example illustrates the issue of whether to process or sell joint products. Assume that Pacific Paper, Inc., produces two paper products, A and B, from a common manufacturing process. Each of the products could either be sold in its present form or processed further and sold at a higher price. Data for both products follow:
Product
Selling price per unit at split-off point
Cost per unit of further processing
Selling price per unit after further processing
A
$10
$6
$21
B
12
7
18
The differential revenues and costs of further processing of the two products are as follows:
Product
Different revenue of further processing
Differential cost of further processing
Net advantage (disadvantage) of further processing
Companies use this same form of differential analysis to decide whether they should discard their by-products or process them further. By-products are additional products resulting from the production of a main product and generally have a small market value compared to the main product. Sometimes companies consider by-products to be waste materials. For example, the bark from trees cut into lumber is a by-product of lumber production. Although a by-product, companies convert this bark into fuel or landscaping material. When the differential revenue of further processing exceeds the differential cost, firms should do further processing. As concerns increase about the effects of waste on the environment, companies find more and more waste materials that can be converted into by-products.
Make or Buy
Managers also apply differential analysis to make-or-buy decisions. A make-or-buy decision occurs when management must decide whether to make or purchase a part or material used in manufacturing another product. Management must compare the price paid for a part with the additional costs incurred to manufacture the part. When most of the manufacturing costs are fixed and would exist in any case, it is likely to be more economical to make the part rather than buy it.
By-products Additional products resulting from the production of a main product. By-products generally have a small market value compared to the main product.
Committed fixed costsCosts relating to the basic facilities and organizational structure that a company must have to continue operations.
Differential analysisAn analysis of the different costs and benefits that would arise from alternative solutions to a particular problem.
Differential cost or expenseThe difference between the amounts of relevant costs for two alternatives.
Differential revenueThe difference between the amounts of relevant revenues for two alternatives.
Discretionary fixed costsFixed costs subject to management control from year to year; an example is advertising expense.
Joint costs Those production costs incurred up to the point where the joint products split off from each other.
Joint productsTwo or more products resulting from a common raw material or production process.
Make-or-buy decisionA decision concerning whether to manufacture or purchase a part or material used in manufacturing another product.
Opportunity cost The potential benefit that is forgone from not following the next best alternative course of action.
Relevant revenues or costs Revenues or costs that will differ in the future depending on which alternative course of action is selected.
Sunk costs Past costs that are not relevant in decision making because they have already been incurred.
Practical Applications of Differential Cost Analysis:
Some of the decision-problems where it may be applied are as follows:
(a) Determination of the most profitable levels of production and price
(b) Acceptance of special orders – offer at a lower price or offering a quotation at lower selling price in order to increase the capacity.
(c) Sell a product as it is or after further processing
(d) Determination of right price at which materials may be purchased
(e) Decisions regarding alternative capital investment and plant replacement
Practical study of nike
Cost Analysis Cost Analysis Miss Moe Pwint Lwin Faculty: Mr. Amit Sharma ECONOMICS ECO 301 Assignment 3 COST ANALYSIS OF NIKE People produce and sell goods for the profit they are getting out of the production. Business is only profitable when it covers the expenses of production and provides the increase in wealth of an investor(s) making the investments. Production is the output of business. Productivity takes this output, and measures it against the inputs used to create it. These inputs are the four factors of production-land, labor, capital and enterprise Depending on the product they are selling, entrepreneurs need to choose the most efficient way to make their products. Their choice is influenced by the type of product they are making, and the output they require. Job Production occurs where a single product is made to customer requirements. This kind of production is best suited for making cars or airplanes. Batch production involves making similar items in set numbers such as fashion clothing. Mass production creates large numbers of identical, standardized products. This production method is suitable for business which produces daily consumable products. Just in time production reduces the costs of stockholding, by any delivery problem can halt all production
SWOT Analysis of Nike
Strengths
The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. The company was founded on the principle that it would make shoes for anyone who could walk or run and this has been the guiding philosophy behind Nike. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company.
Strength of the company is that it has outsourced all aspects of its production to overseas facilities and thereby, does not have any manufacturing outlet of its own. This has helped the company focus on higher value adding activities like design and research and development and at the same time, it has saved the high labor costs that are part of the traditional manufacturing sector.
Apart from this, the other big strength of Nike is that it is a globally recognized brand that has top of the mind recall among consumers and the youth in particular. Further, the Nike brand is synonymous with quality and resilience as well as endurance and fitness, which makes it the brand of choice for athletes and anyone who wishes to run.
Finally, Nike stands to benefit from the current disarray among its competitors because of the fragmentation of the market wherein Nike with its USP or Unique Selling Proposition can standalone among them.
Weaknesses
Nike is almost exclusively driven by its footwear business and therefore, the footwear market contributes to a lion’s share of its revenues making it dependent on this segment for its survival. In these recessionary times, it is not a good business practice to be overly dependent on one segment and hence, Nike ought to diversify horizontally as well as vertically and include apparel and other accessories.
Though we have mentioned the fact that it has outsourced its manufacturing aspects completely as strength, the negative publicity that Nike got because of labor unfriendly conditions in its overseas outlets has badly dented its brand image. Indeed, the name “Sweatshops” is used to mockingly describe the abhorrent conditions in its overseas manufacturing facilities.
The company does its business through retailers who stock other brands as well. This means that the assiduously cultivated exclusivity is sometimes sacrificed because it has not yet spread its wings to include exclusive retailer outlets as part of its business strategy.
Nike is perceived by some consumers as being too premium and a luxury brand. While this is necessarily not a bad thing, the current market scenario is such that consumers are migrating to the middle tier of the luxury scale as they are becoming price conscious and quality focused.
Opportunities
The biggest opportunity for Nike is from the emerging markets of China and India where the Billion Plus new consumers are now aspiring to western lifestyles which means that they would be more receptive to brands like Nike. As the company is associated with premium branding and segmentation, it can be said that capturing the “emerging market newly affluent consumers’ prize” could well be a game changer for the company.
In recent years, Nike has begun to diversify into accessories and other premium products apart its signature footwear segment. This is a step in the right direction and something, which would stand the company in good stead as it attempts to look for revenues beyond its traditional offerings.
The emphasis on design of higher end footwear seems to be paying off for Nike that is increasingly being seen as a must have product for anyone who walks or runs and as the company was founded on the principle that it would serve anyone with legs, this strategy seems to have hit the right notes.
Nike has the unique advantage of offering value for money and this can be leveraged to the hilt as the company begins to make inroads into the newer consumer segments, which want quality at an affordable price.
Threats
The fact that the company has a global supply chain means that it is subject to the vicissitudes of international trade practices including labor strikes in its overseas locations, currency fluctuations that decrease its margins, as well as lack of control over the geopolitical events happening around the world which have the potential to disrupt its global supply chain.
Nike must improve on its image wherein it is being seen as resorting to exploitative business practices in its overseas outlets. Already, it had to pay a heavy price (monetarily as well as metaphorically) because the emerging generation of consumers are socially and environmentally conscious which means that they would not like to buy a product that is the result of dubious business practices.
The ongoing recession has taken a heavy toll on Nike with consumers becoming more price conscious and retailers demanding higher margins. The combination of retailing in third party outlets and competing brands cutting prices has made the going tough for Nike.
Finally, Nike has to ensure that it does not dilute its focus like some of its competitors who are now in the doldrums. For instance, Reebok that promised a lot and was intensely competitive with Nike has seen its fortunes sag and hence, Nike must not go Reebok’s way and instead, must define its core competence and implement its strategies accordingly.
Data collection method:
Nike’s Mission Statement
According to Nikebiz.com, Nike’s mission statement is, “Through the adoption of business practices Nike is committed to securing intergenerational quality of life, restoring the environment, and increasing value for our customers, shareholders, and business partners.”(1) However, according to Acaria.com, it is, “To maximize profits to shareholders through products and services that enrich people’s lives. (2)
Current Company:
Nike, Inc.’s principal business activity is “the design, development and worldwide marketing of high quality footwear, apparel, equipment and accessory products”(3). Nike sells its products to about 20,000 retail accounts in the US and in approximately 110 countries around the world. Independent contractors manufacture almost all of Nike’s products. Most footwear products are produced outside the United States, while apparel products are produced both in the United States and abroad. Revenues for the fiscal year ending May 31, 1999 were $8.8 billion, compared with $9.6 billion in the previous fiscal year
METHODOLOGY:
The information and secondary data of Nike and Adidas were collected from published books, case studies, annual reports and academic journals. Further, this exploratory study is based on case studies of Nike Inc. and Adidas Group. Archival data from company annual reports was also researched to gather information of the companies.
BACKGROUND OF NIKE & ADIDAS Nike, Inc
Is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area (USA). It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports businesses..
Conclusion
Nike reported net revenues of $15.0 billion, a 9 percent increase from FY05.It grew by 7% from 2006 at the fiscal 07. The variances in cost to be concerned are variable costs such as labor costs and material costs in the long run. The prices of sneakers are going up prices compare to what it used to cost back in 30 years. Within 10years from now on, the price for the same pair of sneakers could go up twice. The decision to produce a product is mainly concerned with the indirect costs to the production. With the amount of profits percentage they are receiving, in the case of Nike, elasticity in cost is not very likely to face loss. It could affect the percentage of profit due to costs in production. Therefore as a financial forecast, there maybe a time for Nike to find alternative sources or increase investment to earn a higher returns. Their goal is to reach 21billion by the fiscal year end of 2011. To reach 21billion, their income must increase up to 16%. By the end of 2007, the Sale of Nike has increase in the past 6 years of an average of 11.46% growth showing a growth in revenue of company’s success.
AIOU Solved Project 8508 Report the Budgeting procedure which exists in the organization
AIOU Solved Project 8506 Power and Control
AIOU Solved Project 8506 Power and Control ACKNOWLEDGEMENTS
This postulation is devoted to: The Allah, my Creator and my Master, and envoy,Mohammed (May Allah favor and give him), who showed us the motivation behind life. Mycountry Pakistan, the hottest womb; Allama Iqbal Open University, Islamabad; my second wonderful home; My awesome guardians, who never quit giving of themselves in incalculable ways, My dearest friend Noaman Akbar, who drives me through the valley of dimness with light of trust and support, My cherished siblings and sisters; especially my dearest sibling, who remains by me when things look disheartening, My beloved Parents: whom I can’t compel myself to quit loving. All the general population in my life who touch my heart, I commit this research.
ABSTRACT
A review of managerial literature highlights the crucial importance of shared culture and common schemes of interpretation in organizational learning. Since the early ‘50s, learning appeared to be a basic feature of corporate life, and its organizational forms have been studied from many standpoints and conceptualized in different ways in organizational theory. The ever growing literature demonstrates the empirical and theoretical richness of the concept of organizational learning and, later on, of the learning organization. The interpretative and sense making approaches of organizational learning insert themselves deeply in the process of the construction of social uniformity and cognitive homogeneity. Individual learning, culture, beliefs and rationality – the shared mental models – are the targets of confirmation processes. Thus, this specific kind of organizational learning cannot be considered as normatively neutral, but as a political process. A case study of a bank illustrates that organizational learning can be based on a structured social construction of cognitive homogeneity which generates an increase of control and enhances power of the management by reinforcing the legitimacy of decisions. However, this case study also shows that learning and non-learning are the two faces of the same process or, in other words, that organizational learning can produce unawareness and unintentional nonearning by too much cultural uniformity. The aim of this paper is to provide a critical examination of underlying processes involved in applications of organizational learning theory, i.e. some interventionists’ conception of the learning organization. It presents a three-fold sociological analysis. In the first part, managerial organization theory and consultants’ writings within the interpretative perspective of organizational learning processes will be reviewed and analysed. Then a theoretical framework based on concepts such as power, domination and control will be proposed. In a third part, empirical work will be reviewed, in order to illustrate the processes by which some unanticipated and unwelcome consequences of the very act of building a learning organization can appear in the long run. The empirical findings presented show that the interpretative perspective of organizational learning rarely works successfully for the organization as a whole. Interpretative stakes and schemes of sense making are as a rule shared by only some team members or groups of subordinates. Since interpretation appears as politically connoted and since beliefs are part of the imperative to obey, sense making in an organization seems closely related to domination.
AIOU Solved Project 8506 Power and Control Since the early ‘50s, learning appeared to be a basic feature of corporate life, and its organizational forms have been studied from many standpoints and conceptualized in different ways in organizational theory. The ever growing literature demonstrates the empirical and theoretical richness of the concept of organizational learning and, later on, of the learning organization. At first glance, it might seem surprising that despite this diversity, organizational learning has rarely been studied in view of such fundamental concepts as power and control, important for understanding organizations as well as social life. Managerial writings on this topic are usually typologies of a non-questioned phenomenon or the approaches confine themselves to a dysfunctional view of illegitimate power. The omission of the power component of organizational learning may be considered as a constitutive aspect of organization theory, since a basic feature of its mechanistic/organic paradigm is to address power in the restrictive terms of influence or leadership style, and to picture management only as a technical, politically neutral activity. Rather, according to a political/cultural perspective, we conceptualize management as a reflexive social action the essence of which is power over people and power through people. The aim of this paper is to provide a critical examination of underlying processes involved in applications of organizational learning theory, i.e. some interventionists’ conception of the learning organization. It presents a three-fold sociological analysis. In the first part, managerial organization theory and consultants’ writings within the interpretative perspective of organizational learning processes will be reviewed and analysed. Then a theoretical framework based on concepts such as power, domination and control will be proposed. In a third part, empirical work will be reviewed, in order to illustrate the processes by which some unanticipated and unwelcome consequences of the very act of building a learning organization can appear in the long run. Briefly summarizing the approach developed here, one can state that:
In the voluntaristic kind of organizational learning, the capacity for building a learning organization rests upon managerial power.
Organizational learning, as a process involving others, has to be strictly and continuously monitored in order to ensure its realization and to keep control over it.
Monitoring of sense making processes requires a reinforcement of managerial control and organizational surveillance for the gathering of relevant information.
Development of organizational shared mental models (sense making processes) is a social construction that tends to produce cognitive homogeneity.
Shared mental models are not politically neutral, since social conformity enhances the leaders’ legitimacy and, consequently, power (and „managerial comfort“). Thus, it has to be analysed as an ideology.
Organizational learning through shared mental models can impede learning in the long run, by „blinding“ the organization (with collectively bounded rationality) in which the non-conforming views are treated as illegitimate because based on ideas that are different from the dominant ones.
AIOU Solved Project 8506 Power and Control The empirical findings presented show that the interpretative perspective of organizational learning rarely works successfully for the organization as a whole. Interpretative stakes and schemes of sense making are as a rule shared by only some team members or groups of subordinates. Since interpretation appears as politically connoted and since beliefs are part of the imperative to obey, sense making in an organization seems closely related to domination. The functionalist assumption of organizational consensus that stands behind some trends of the organizational learning methodology appears rather incompatible with the structural reality of political and cultural disparities. Confronted with the imperative to share the normative system of the dominant group members of the organization could resort to technical or organizational subcultures in order to save their endangered collective identities. As a result, conflicts of meaning between hierarchical levels and a kind of cultural and ideological „schism “within the organization can be engendered.
Therefore, one may consider that power is applied to culture through the seemingly political neutrality of dialogue. An example for this perspective can be found in the following anecdote: „The frequent complaint one hears from CEOs (is) that, even though they have a lot of power and authority, they have great difficulty getting their programs implemented. They complain that things are not understood, that goals seem to change as they get communicated down the hierarchy, or that their subordinates „screw up“ because they don’t really under- stand what is wanted“ (Schein 1993: 50; our emphasis). One can hardly be more explicit about the aim of changing culture: effective power and obedience, on the basis of shared culture and recognition of ideological legitimacy. As we will see later, this new form of legitimacy consists of inducing the subordinates (or team members) to adopt and internalize as their own the constraints, rationality, goals and, more generally, beliefs and ideas of the leader or their superior. The managerial writings of Peter Singe can be used as a significant example of the power-related underlying assumptions of this form of organizational learning (or learning organization) model. Those assumptions can be grasped from his very first definitions of learning: „Learning is the process of enhancing our capacity for effective action “which is, according to Clegg, a form of social power – and, in the same way, „a learning organization is a group of people continually enhancing their capacity to create what they want to create (1991: 42) or „their capacity to create the results they truly desire“. Drawing from Giddens’ theory of allocative resources (1984), one can associate this capacity for action to managerial power. In order to understand the power-related assumptions of this mechanistic view, the critical paradigm seems to be adequate to analyse its hidden logic. Theoretical approaches and empirical research have shown that a fundamental principle of power (and domination) is its invisibility. It has to disappear in order to be efficient, to make the will realized. It has to be silenced to persist. Thus, power can disappear in the impersonality of the rules, be disembodied in technology (Giddens 1984), or be negated by the discourse (Bourdieu 1982). As Schein (1993) uses the politically neutral concept of dialogue similarly, Singe refers to primitive cultures in which the leaders only power is to talk. However, anthropologists have shown that the basis of legitimacy in such cultures are quite different from those of organizations in contemporary complex societies.4 By making this analogy between corporate heads and „primitive“ leadership, Senge in effect contributes to the silencing of actual power structure, thus reinforcing it and its legitimacy.
LITERATURE REVIEW
AIOU Solved Project 8506 Power and Control Despite the diversity of organizational learning theories (Fiol and Lyles 1985; Huber 1991), metaphors (Tsoukas 1993, Gherardi 1996) and models (Shrivastava 1983; Dodgson 1993), it is actually possible to find relative agreement among authors on the core importance of shared culture or common schemes of interpretation in the process of collective learning, even though there is still confusion about what is really organizational learning (Weick 1991).1 That is, drawing from Daft and Huber’s (1987) distinction between systems-structural and interpretative perspectives in the analysis of organizational learning, processes of sensemaking are crucial for learning if we consider them as related to decision making processes (Schneider and Angelmar 1993) on the one hand, and to decentralisation, delegation, and autonomy necessary to knowledge activities on the other hand. Building a learning organization is not a random process but a voluntaristic project (Pucik 1988), that needs leadership to exist, to be achieved (Greiner and Schein 1988). It is a rational and target-oriented process that generally responds to the ideology of progress (maximisation, optimisation, etc). Learning is usually viewed as „a key for competitiveness“ (Garatt 1987) and for organizational effectiveness (Schön 1975). Its aim is usefulness: „Essentially, learning can be seen to have occurred when organizations perform in changed and better ways. The goals of learning are useful outcomes“ (Dodgson 1993: 378). Therefore, learning does not just appear by itself, it is a social product and has to be created by leaders who „hold the keys“. Thus, in the interpretative perspective where sensemaking is the mainspring of learning, subjectivity and power seem closely interwoven: „organizational learning occurs through shared insight, knowledge, and mental models. (…) change is blocked unless all of the major decision makers learn together, come to share beliefs and goals, and are committed to take the actions necessary for change“ (Stata 1989: 64). Argyris and Schön’s (1974) well-known distinction between single-loop and double-loop learning and between model I and model II does not need presentation here. The authors’ position is that organizational learning is impeded by the discrepancy between individuals’ espoused theories (what they say) and theories-in-use (what they do)2 which causes „fancy footwork“ and organizational defense patterns (Argyris 1990). For Argyris (1993a), as for most of his followers, a stake of organizational learning is to make explicit tacit and instinctively understood ideas. Double-loop learning may occur after „surfacing fundamental assumptions and gaining insight into why they arise“ (Isaacs 1993: 26). By making explicit „tacit thought (and) underlying thinking“ (Isaacs 1993: 31) by dialogue and confrontation, it is possible – so the argument – to create learning through changing the „rules about how to interact“ (Argyris 1990). This point of view is clearly based on the assumption of the political neutrality of interaction and of dialogue. This neutrality refers to a functionalist paradigm in which the political inequality of actors and the power-influence relations that define and structure to some extent at least the organizational interactions remain unconsidered. Therefore, this politically neutral paradigm is only partly applicable to the organizational life. According to social theory and especially to Giddens (1984) and Goffman (1959), the social agent who can define the rules of interaction exerts power on others and conditions the object of social control. This seems to be particularly true for hierarchical relations prevalent in most organizations since the interpretative process is embedded into the structural inequality of power and legitimacy among actors. So, becoming a learning organization means changing patterns of thinking (Senge 1990a), a process which „inherently involves the questioning of one’s values“ (Argyris 1983: 355) and self-identity (Weick 1995). Individuals have to give up their theory-in-use (Argyris and Schön 1975; Argyris 1990) and adopt beliefs, values, norms, premises and rationality that form the culture (Schein 1985) promoted in the organizational ideology (Beyer 1981). If organizational learning relies on shared visions, this can only happen when individual mental models or cognitive maps converge.3 This shared view of the world implies a similar process of sensemaking (Weick 1995) that links subjective viewpoints (beliefs, values) and rationality. As Nicolini and Meznar (1995: 741) argue, the organizational social construction of learning is one of the channels through which the managerial cognitive perspective and interpretation of the world is imposed as the exclusively relevant view and becomes the dominant way of acting and enacting. In this kind of learning, the collective sensemaking process – a specific way of grasping problems and developing creative responses – emerges from a relative homogeneity of individuals’ subjectivity. According to Schneider and Angelmar (1993), convergence of cognition is the condition for consensus among top management teams. In this sense, the building of a learning organization may be interpreted as a purposive structured change which represents a social construction of cognitive and sensemaking homogeneity. However, in order to understand this power-related process of instrumentalisation of culture, it appears necessary to analyse the relationship between culture and learning. The growing use of the interpretative perspective in organizational learning can be considered as corresponding to the „organizational culture“ trend (Lawson and Ventris 1992). In fact, the proposed definitions of organizational culture are sometimes the same as those of the organizational learning process: shared beliefs and values (Deal and Kennedy 1982), shared meanings (Smircich 1983), shared interests (Young 1989) or shared ways of perceiving and thinking (Allaire and Firsirotu 1984; Meek 1988). Schein (1985) proposes an integrated theory of culture and learning in which culture is defined as collective mental models, the assumptions of which being deeply influenced by values and beliefs. He describes three levels in organizational culture: the cultural artefacts (dress codes, ways of talking, etc), the espoused values, and the shared underlying assumptions. It is on the third level that organizational learning may take place. But Schein cannot ignore that culture and power are related in organizations. Since learning has to be implemented and depends on culture, it becomes a target for power („leadership is intertwined with culture formation“). A core function of management is the „cultural shaping“ – the social construction – of the organization. Building an organization’s culture and shaping its evolution is the „unique and essential function“ of leadership (Schein 1985). Some authors are even more explicit about the instrumentalisation of culture. It has to be controlled (Kilmann and Saxton 1985) and become efficient (Ouchi and Wilkins 1983), but can be a source of alienation, too (Lincoln and Kalleberg (1990). In later works, Schein (1993) – as well as Isaacs (1993) – stresses the virtues of dialogue and addresses „communication failures and cultural misunderstandings“ as indicators of differences between organizational subcultures. For the author, organizational effectiveness will „increasingly hinge on the ability to develop an overarching common language and mental model. […] Any form of organizational learning, therefore, will require the evolution of shared mental models that cut across the subcultures of the organization“ (Schein 1993: 41). Since this evolution „is inhibited by current cultural rules“ (1993: 31) – the entropy of the „preservation of form“ (Lovell and Turner 1988: 416-17) – the „unique and essential function“ of the leadership is to change the cultural rules of communication and common understanding, i.e. the nature of culture and identity. Therefore, one may consider that power is applied to culture through the seemingly political neutrality of dialogue. An example for this perspective can be found in the following anecdote: „The frequent complaint one hears from CEOs (is) that, even though they have a lot of power and authority, they have great difficulty getting their programs implemented. They complain that things are not understood, that goals seem to change as they get communicated down the hierarchy, or that their subordinates „screw up“ because they don’t really under- stand what is wanted“ (Schein 1993: 50; our emphasis). One can hardly be more explicit about the aim of changing culture: effective power and obedience, on the basis of shared culture and recognition of ideological legitimacy. As we will see later, this new form of legitimacy consists of inducing the subordinates (or team members) to adopt and internalise as their own the constraints, rationality, goals and, more generally, beliefs and ideas of the leader or their superior. The managerial writings of Peter Senge can be used as a significant example of the power-related underlying assumptions of this form of organizational learning (or learning organization) model. Those assumptions can be grasped from his very first definitions of learning: „Learning is the process of enhancing our capacity for effective action“ (Senge 1991: 39) – which is, according to Clegg (1989) and Coopey (1995), a form of social power – and, in the same way, „a learning organization is a group of people continually enhancing their capacity to create what they want to create (1991: 42) or „their capacity to create the results they truly desire“ (Senge 1990a: 3). Drawing from Giddens’ theory of allocative resources (1984), one can associate this capacity for action to managerial power. In order to understand the power-related assumptions of this mechanistic view, the critical paradigm seems to be adequate to analyse its hidden logic. Theoretical approaches (Foucault 1977) and empirical research (Filion 1994) have shown that a fundamental principle of power (and domination) is its invisibility. It has to disappear in order to be efficient, to make the will realised. It has to be silenced to persist. Thus, power can disappear in the impersonality of the rules (Clegg 1981), be disembodied in technology (Giddens 1984), or be negated by the discourse (Bourdieu 1982). As Schein (1993) uses the politically neutral concept of dialogue (in Habermas’ sense [White 1988] but not in Foucault’s), similarly, Senge refers to primitive cultures in which the leader’s only power is to talk (Senge 1991: 42). However, anthropologists (Clastres 1974) have shown that the basis of legitimacy in such cultures are quite different from those of organizations in contemporary complex societies.4 By making this analogy between corporate heads and „primitive“ leadership, Senge in effect contributes to the silencing of actual power structure, thus reinforcing it and its legitimacy. Because „organizations face today the ever-growing complexity of the world“ (Senge 1990a), the challenge is to change „patterns of thinking“ through building new „mental models“ and „improving our internal pictures of how the world works“ (Senge 1990a: 174). This cultural change is similar to the concept that Schein alludes to. One should be „living life from a creative as opposed to a reactive viewpoint“ (Senge 1990a: 141). To come to this point, Senge proposes five steps to arrive to his „fifth discipline“: personal mastery, mental models, shared vision, team learning, systems thinking. Personal mastery consists in „seeing reality objectively“ (1990a) and changing mental models is „making one’s thinking more open to the influence of others“ (1990a) so that it is possible to build a shared vision through dialogue and discussion. Yet, since the ontological nature of subjectivity (beliefs, ideas, assumptions about the world and the reality) consists in the truth for oneself, and since all subjectivities have equal value as soon as they are based on reason, who is right? Who can call on absolute legitimacy? Who can have the power to question other individuals’ mental models? The answer is, for the author, quite obvious: „the core leadership strategy is simple: be a model“ (Senge 1990a: 173). A model of humility? Schein (1993) pointed out how threatening such a position can be. On the contrary, in Senge’s model the leader is superior to the subordinates or the team members because „the first responsibility of a leader (…) is to define reality“ (1990b: 11). He is the prophet. We can understand this in terms of a four-step procedure. First, „the role of the leader as teacher starts with bringing to the surface people’s mental models of important issues“. Second, „leaders as teachers help people restructure their views of reality“ (Senge’s emphasis). Third, „influence people to view reality“, the one defined by the leader. Fourth, internalisation of the dominant mental model: „the vision becomes more real in the sense of a mental reality that people can truly imagine achieving“ (Senge 1990b: 12-13). With some of the new ways of re-organization of work and delegation of decision-making process, the threat of loosing power and authority is at stake since „local decision making and individual autonomy lead to management anarchy unless (…)“ (Senge and Sterman 1992: 137). According to Frerichs (1992), the goal is to build new alliances with the aim of minimising frictions. Delegation of decision-making as a means of organizational learning implies changing the mode of using power, not loosing power. Leaders – top management – have to find a new way to obtain obedience and to gain a new form of legitimacy. Here, the problem is clearly stated: „Just granting power, without some method of replacing the discipline and order that come out of a commandand-control bureaucracy, produces chaos“ (Senge et al. 1994: 14; our emphasis).
DATA COLLECTION METHODS
AIOU Solved Project 8506 Power and Control The theoretical framework presented above rests on empirical studies carried out by the first author in various types of organizations and using the interpretative paradigm of organizational learning. Despite important differences concerning technology, structure, product, culture and history among those organizations, undeniable similarities have been found as well relating to the underlying processes and implications of organizational learning and especially concerning aspects of power and control. In order to point out some unanticipated consequences of learning organization based on concretive control, the case of the Bank Central Back-Office (BCBO) will be presented here. The choice of this organization – part of one of the largest French banks – rested on its very special status: It had a key position in the bank’s global strategy which was to modernize the banking activities. The fieldwork has been done in two parts: the first wave of interviews was conducted around the mid 80s, one year after the arrival of the new general manager; the second part has been done four years later. Altogether, 120 interviews of at least two hours each have been conducted, ranging from the bank’s human resources manager to the „boy“ (who carries the checks and business papers), in accordance with the quotas method. In this two-steps procedure, we re-interviewed (at least) the same persons in order to analyse the The theoretical framework presented above rests on empirical studies carried out by the first author in various types of organizations and using the interpretative paradigm of organizational learning. Despite important differences concerning technology, structure, product, culture and history among those organizations, undeniable similarities have been found as well relating to the underlying processes and implications of organizational learning and especially concerning aspects of power and control. In order to point out some unanticipated consequences of learning organization based on concretive control, the case of the Bank Central Back-Office (BCBO) will be presented here. The choice of this organization – part of one of the largest French banks – rested on its very special status: It had a key position in the bank’s global strategy which was to modernise the banking activities. The fieldwork has been done in two parts: the first wave of interviews was conducted around the mid-80s, one year after the arrival of the new general manager; the second part has been done four years later. Altogether, 120 interviews of at least two hours each have been conducted, ranging from the bank’s human resources manager to the „boy“ (who carries the checks and business papers), in accordance with the quotas method. In this two-steps procedure, we re-interviewed (at least) the same persons in order to Analyse the social construction of cognitive homogeneity has been conceptualized by the new general manager as a political process comprising a structural and a cultural side. Both of them have been based on a view of management resting on value-based mutual trust and agreement (shared ideas) as a basis for co-operation and hierarchical relations. As a first step, the organizational structure has been deeply modified. Intermediate levels have been removed, the pyramidal structure being flattened from a six to a three level hierarchy. All operational departments were directly placed under the authority of the general manager to avoid „interferences “of intermediary levels or assistants and to ensure direct collective decision making. The aim of increasing „direct control “on the lower management level and to improve information and communication flows has also been an opportunity to transfer out of the BCBO (with full support from the head-office) staff members considered as „non-conform“, „bureaucratic“or „narrow-minded“; those judged as reluctant to learning, not willing to adopt the new ideas and to agree with the new dominant ideological view on management. The two specialized departments have been progressively „dried out “as multi-skilling took place in the other departments. Changes in the work process using computerized technology have been set up. Moreover, the operational functioning has been reorganized by introducing the delegation of both management and technical organization tasks.
SWOT ANALYSIS
AIOU Solved Project 8506 Power and Control SWOT analysis (Strengths – Weaknesses – Opportunities – Threats) is a strategy analysis tool. It combines the study of the strengths and weaknesses of an organization, a geographical area, or a sector, with the study of the opportunities and threats to their environment. As such, it is instrumental in development strategy formulation. The aim of the analysis is to take into account internal and external factors, maximizing the potential of strengths and opportunities, while minimizing the impact of weaknesses and threats.
SWOT analysis is usually prepared through meetings with the stakeholders or experts concerned with the strategy.
SWOT analysis can be used to identify possible strategic approaches. Although originally designed for planning, this tool is used in evaluation to ensure that the implemented strategy is appropriate to the situation described in the analysis. Thus, it may either be used for:
Ex ante evaluations, in order to determine or check strategic approaches (such as in the drafting or evaluation of Country Strategy Programmes)
Intermediary evaluations, in order to check the relevance of the programmes under evaluation, and if required, their coherence
Ex post evaluations, in order to check the relevance and coherence of the strategy or the programme. Especially if this task was not undertaken during the development of the strategy or the programme
If the focus of the analysis is the agency (for example, the European Commission), the object of the internal analysis is the agency, while the object of the external analysis is the country.
If the main object of the analysis is the country, the internal analysis focuses on the country while the external analysis focuses on neighboring countries and the rest of the world.
If the object of the analysis is a sector, every action carried out in this sector constitutes an internal factor, and the rest represent external factors.
Whatever the methodology, the preparation of meetings should include, as a minimum, documentary analysis and interviews with key resource people.
Planning how to select the group, its size and its possible division into subgroups (thematic, regional, types of actors, etc.) are also crucial at this stage.
Strengths are positive internal factors that are controlled by the organization, or the country, and which provide foundations for the future.
In contrast to the strengths, weaknesses are negative internal elements, which are controlled by the organization, and for which key improvements can be made.
AIOU Solved Project 8506 Power and Control As SWOT analysis is based on the participants’ judgments, it is subjective and qualitative by nature. If the study of the strengths and weaknesses needs to be developed, 2 complementary tools can be used: resources audit and analysis of best practice (comparison within a country between what works and what is lacking, with respect to specific indicators).
AIOU Solved Project 8506 Power and Control Opportunities are the external positive possibilities which can be taken advantage of in the context of contemporary strengths and weaknesses. They are often beyond the influence of a country, or at the margins (for example, the evolution of international consumers’ taste concerning one of the country’s commodities, the improvement of the economy in a “client” country, the increase of Internet trade). Threats are difficulties, impediments, or external limitations which can prevent or impede the development of a country, or a sector (for example, the industry). Threats are often beyond the influence of a country, or at its margin (for example, consumers avoiding national products which are economically important for the country, large increases in energy prices, general decrease in the development assistance).
CONCLUSION
AIOU Solved Project 8506 Power and Control In this research, we have proposed a critical rereading of some managerial writings on the interpretative perspective of organizational learning. Our aim was to highlight how the premises of those theories rest upon a new form of domination in organizations based on the imperative of cognitive compliance. The role of ideology and the imperative of cognitive homogeneity as major means to obtain discipline in organizational settings appear to be the key for understanding this form of domination. The processes involved in the implementation of the interpretative concept of organizational learning insert themselves deeply in the procedures of control and are normatively loaded with the aim of producing social and cognitive homogeneity inside the organization. This seems to be a powerful way of stabilizing or enhancing the legitimacy of decisions. Consequently, organizational learning via cognitive compliance appears to be a particularly fitting methodology to cope with quickly and deeply changing environments without risking internal chaos or resistances. In fact, the power structure in organizations may be enhanced by interpretative and concretive control because it is generating knowledge on rationalities and subjectivities (Foucault 1980), and, therefore, control on individuals (Dahl 1986). However, a critical element is built into the process of organizational learning if it is conceptualized as making explicit tacit thoughts with the aim to form a common and unique mental model. By making mandatory ideological convergence of all members of the organization this form of concretive control undermines the very basis of concerted organizational action: individual identities and – at least – some diversity of (bounded) rationalities. Our empirical findings indicate that the conceptual distinction between systems-structural and interpretative perspectives in organizational learning (Daft and Huber 1987) appears to be partly inoperative since the social construction of cognitive homogeneity rests upon systems-structural aspect of management. Moreover, while concentrating on a maximum of homogeneity for power-related and management reasons, an organization may sacrifice its potentials for adaptation that are associated with diversity. The unintended consequence of cognitive homogeneity and hierarchical networking may force, in the long run, the organization to unlearn (in the sense of Hedberg, 1981) its own beliefs, values, cognitive patterns and underlying ideological assumptions and to restart from new premises. How can an organization avoid the „learning trap “and prevent to get caught up in too restrictive „cognitive tracks“? The wisdom of considering that power cannot rest for a long time on the control of interpretative schemes – or any cultural dimension- appears to be one of the best advises, because leadership is to stay of a political nature. If the leaders’ legitimacy has to be reinforced through the imperative of a „one track cognition “conforming to the dominant view of the world, the leadership practice may deserve a serious reappraisal. When being contradicted or isolated in one’s view of the world appears to be difficult to bear, it’s time for a critical self-evaluation. Learning to learn also means learning to doubt – and learning to fail – about one’s own certainties, about one’s own rationality. It also means to refrain from the deeply rooted desire to obtain from subordinates and team members full legitimacy and absolute recognition of one’s truth. This implies trusting others and others’ autonomy as well as admitting that being in a position of leading a group or a company does not mean having always the best view of the world and of reality. While it is seducing for the top managers to enlarge and reassure both their power and legitimacy through enforcing cognitive homogeneity, it may be wiser – at least on a longer term perspective – to institutionalize a kind of countervailing structures, e.g. union representatives/work councils. An alternative could also be to create so-called „weird think tanks“ and encourage their members to produce divergent visions based on radically different premises and rationalities as well as alternative interpretations of political and socio-economic environments. With entire freedom of thinking institutionally safeguarded against marginalization or sanctions the chances increase that organizations are able to catch up the right ideas at the right time. However, if, as it was stated at the beginning of this paper as a premise, management represents power over people and power through people, how can a countervailing structure or even a „weird think tank“ prevent from falling into the „cognitive trap“? The answer is maybe to make the power visible or, at least, to consider it as a basic feature of dialogue. To hold a dialogue, to understand others’ position and to make explicit everyone’s assumptions and tacit ideas does not automatically imply or assure agreement and the construction of a cognitive consensus. On the contrary, dialogue can also mean discussion on the basis of hardly reconcilable standpoints. Compromises are among the hallmarks of enlighten companies. Organizational learning theory rejoins here decision making theory. In contrast to the ideal of attaining optimal and perfect rationality in reality, only a bounded rationality is possible, bounded by available information but also by norms, values and ideas. Thus, one could consider organizational learning in a context in which different interests, cultures and rationalities articulate in the construction of compromises: temporary solutions to specific problems, collectively elaborated by specific actors agreed upon for an unknown but limited period.
RECOMMENDATIONS
AIOU Solved Project 8506 Power and Control At the beginning, participation was voluntary, each group being handled by a „synergetic“ manager who had personally received his mandate from the general manager after being trained particularly concerning rhetoric skills and control of discussion. In fact, besides the official goal of knowledge creation, those discussion groups were targeted at three unstated aims: – To make explicit usually tacit assumptions in cognition processes of the participants and, therefore, to detect and publicly recognise the value-conforming actors; – to convince „in-between“ participants to join the leader’s position; – to ensure that decision-making processes in which the discussion groups were involved – and their results – are in conformity with the general orientation of the BCBO so as to consolidate the organizational coherence. Taking these various aspects, the knowledge creation process was from the very beginning targeted to confirm the dominant view in the organization. In daily life, the rise of autonomy – due to computerized technology and delegation of decision-making to the work teams – has been accompanied by increasing surveillance and control. Since most of the employees had about 20 years of seniority – which explains both the high level of competency and of „defensive footwork“ – the crucial stake for management was about preventing „divergent autonomy“, i.e. to make sure not to lose control over work teams.
AIOU Solved Project 8506 Power and Control Arguing that it was necessary to „know everyone personally“, monitoring activities have been conducted in two ways: by hidden computerized control of the work as well as by direct (visual) and/or indirect (hearsay) surveillance. The basic rationale was the same: to detect and empower the conforming persons and to convince or to delegitimize the non-conforming ones. After all, the Bank Central Back-Office has been, according to our analysis, an excellent learning organization. Technical debugging and innovative changes were rapidly accomplished through collective problem-solving, and by the capacity of all involved persons – at least in the first years – to understand others’ assumptions, to push discussion forward and to develop creative ideas. AIOU Solved Project 8506 Power and Control The involvement in quality circles and other structures was high and a sense of membership – of being part of something – progressively arose during the first two to three years, creating a stimulating emulation at all levels. Quality improvement were documented by significant decreases of the monthly rate of complaints from customers. The organization clearly learned and changed. But after almost four years of constant learning and improvement, the organization has tended to stabilize and, later on, started to „unlearn“: Unsolved problems being pushed away, new problems with corporate clients not being taken into account, people being less motivated and disagreement arising in decision-making processes in some departments at various levels. The reappearance of „already solved “problems puzzled the top management team which had not thought of the possibility of a cultural and political crisis. Blinded by part of the subordinates and other team members sharing the same view of the world, the general manager had not grasped the importance of the moaning from parts of the employees and their management teams. What had happened? The first unintended – and unwelcome – consequence of the management of a learning organization via “cognitive homogenization” was a feeling of mistrust appearing among more or less conforming actors due to the contradiction noticed between the official/ideological discourse on mutual trust and the reality of monitoring and control activities, even those that seemed justified.
AIOU Solved Project 8506 Power and Control For most of the employees and parts of management teams, autonomy meant autonomy and learning implied an opportunity to increase their know-how and their collective autonomy. This is why the feeling of a cultural mismatch progressively developed. To summarize the position of employees, learning, improving one’s own performance, doing a good job and actively working for the well-being of the company did not mean „being on the side of the boss“. As one of them said: „I am here to do the best I can. Not to be brain-washed and to think like the boss“. As a kind of counter-effect, learning reinforced collective identity formation among the groups of employees and among their direct managers. And since the political nature of the organization implies a structural inequality between strata of actors, subcultures were developing in contrast to the official political structure. Although unintended, this outcome should not be surprising: The process of forging an organizational/cognitive homogeneity has lead „naturally“ to a cultural crisis because the very foundation of this form of organizational learning is political domination.
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AIOU Solved Project 8508 Report the Budgeting procedure which exists in the organization
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees Introduction
Tax issues play an important role in social and economic development with the help of the implementation of policies that ensure equilibrium between expenditure & borrowing, which creates stable growth in the hiring of employees. The level of this relationship between Tax issues and Gross Domestic Product still attract researchers for research purpose and for debate purpose in developing countries. The previous literature identifies two main aspects of the role of Tax issues in the relationship with economic growth (Gross Domestic Product). One aspect is that the government supports the researcher to add something in the previous research work, handful investment, R and D, to keep law and order and the supply of goods and services to the general public. It can create expansion in the economic system both in the short and long run. Secondly, the governments are a non-apparent political system and also less efficient. The government, in this case, has tried to control the growth rather than to support it, but if they are involved in the production industry of the economic system. So the legal and tax issues are having effects on Gross Domestic Product and having an inappropriate expenditure of the government. The government always tries to upgrade its tax system by enhancing its fiscal policy. This policy refers to the effects of the government’s fiscal policy in hiring employees due to legal and tax issues and government expenditures.
Pakistan’s hiring employees has been in a chokehold for the past two years. The problem is that there are too many elephants in the room. The slowly tightening grip began with the reckless borrowing and exchange rate manipulation of the previous Pakistan Muslim League Nawaz (PML-N) government, particularly in their last couple of years in power.
The resulting bulging current account deficit was followed by the ill-placed economic priorities of the incumbent Pakistan Tehreek Insaaf government. On top of all this, a monetary policy influx has meant general economic hardships causing great strife to businesses and families. However, if one were to try and spot the largest of the elephants, which has caused such deep-rooted, lingering economic chaos, it would have to be the current government’s misplaced fiscal policy.
At a time when the government should have been bending over backward to encourage economic growth and activity, it chose instead to squeeze the hiring employees for all it is worth through excessive taxation on incomes, utilities, and other goods and services.
And while the current government’s policies have been a catalyst for the existing chaos, the fiscal crisis has been a decade in the making. The problem first began when foreign financing that was being used to cover state expenses, particularly civil and military US aid, was suspended. The state was then faced with the first signs of a fiscal deficit that was rapidly ballooning.
The solution that the PML-N government resorted to was to borrow from other sources. They bridged the gap in the budget through forex-denominated borrowing, which then gave birth to the still persistent current account deficit. When the PTI inherited these crises, as they never fail to remind the public, they found themselves clueless.
The Prime Minister had been banking on the billions of dollars that ex-pat Pakistanis were asked to send on, but surprise, the plan flattered miserably and the government continued to squeeze the hiring employees, putting further strain on revenue collection, and increasing the budget deficit.
It took time for the PTI to wake up to reality, but by the time they did, the only possible course of action was to opt for a short-term solution by engaging in deposit-borrowing from friendly countries like the U.A.E., Saudi Arabia, and China. Despite the mad dash to shore up reserves through friendly countries, Pakistan still ended up having to go to the International Monetary Fund (IMF). But by the time we did, it was already too late.
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees The economic meltdown could not be avoided and has led to the epic deterioration of fiscal deficit with the rupee taking its historic plunge. The government’s initial throes to save its sinking ship have now allowed the IMF to be in a very strong negotiating position. Because of how bad things have gotten, the IMF has been able to demand radical reforms on the fiscal side by the government. The IMF insisted that the government limit its prime deficit (the deficit excluding developmental spending), to ensure spending in development heads. To control such a deficit, any government only really has two options: to cut spending or to increase revenue. The PTI opted for the predictable latter alternative.
And here lies the hamartia. Policymakers in Pakistan and economic experts consider the country’s revenue collection to be very poor. The measure often used is tax to GDP, where Pakistan’s tax to GDP stands at 11.6% compared to India, which is north of 16%.
Going by this measure, increasing revenue seemed an obvious choice for the government to make. To this end, the government chose to pursue a two-pronged strategy: increasing tax rates on salaried individuals, on utilities, and on goods and services, and of intimidating individuals and businesses through legal and tax notices and other compliance requirements. The bulk of the legal and tax focus was on indirect taxation and an atmosphere of fear was fostered, causing the business community to retreat into a shell, paralyzing economic activity in the country. We are still reeling from the consequences.
What policymakers fail to realize, however, is that while Pakistan’s tax to GDP is low and has potential of improvement, such radical changes cannot come to fruition overnight. For Pakistan fixing this is doubly difficult. Back in the late 90s, the country had taken the easy but lazy route of indirect taxation. This has meant that not only is the legal and tax establishment unable to collect effectively, any aggressive revenue collection drive is likely to impact the salaried and lower-classes the most, draining their disposable income. This drainage, then leads to a collapse in spending, in turn leading to an economic halt.
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees To understand this, consider a household that has a monthly income of PKR 40,000 through two earners. With this income, let us say the household spends PKR 10,000 on non-essential groceries and other spend, after paying for rent, utilities and other necessities. Now, as the government increases indirect Tax issues on utilities, and goods and services; this drains this amount, and thus their spending shrinks, leading to lower sales for businesses, who then have to do cost-cutting, thus throwing the hiring employees in a downward spiral.
If the income is taxable and the legal and tax rate increases, this further squeezes the household and in-turn the hiring employees. With hiring employees squeezing, increasing taxation, in turn further squeezes the revenue collection for the government, pushing fiscal deficit to record heights – something that we are facing right now in the form of a more than PKR 800 billion shortfall in revenue target.
Just when tax-driven spending squeeze was not enough, the government’s fear tactics further pushed investors and businesses to hold spending and hold on to their capital. And so, a year and a half into the PTI government, economic activity is still way below potential. If there is any lesson that the government can learn, it is that statistics without understanding of underlying reality are more harmful than helpful. The obsessive focus on tax to GDP has proven to be a farce. Tax to GDP should be improved but turns out the measure is an effect not a cause. And unless the underlying causes are not addressed, without hampering economic activity, increased taxation will fail to control fiscal deficit, as is evident.
The government needs to wake up to the fact that in the short-to-middle term, the only solution out of this crisis is to reduce the size of government and cut spending on non-developmental spending to control the fiscal deficit. Unless the government focuses on it, the economic meltdown will continue, and any aid or foreign debt driven solutions will make the collapse even worse. Does the government understand this? And does it have the resolve to fix this? Because these questions will determine the economic future of Pakistan.
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees Taxation in Pakistan is a very complex system including more than 70 different Tax issues and nearly 37 different government agencies administer the legal and tax system. Around 10 million people are registered to pay Tax issues but only 1.9 million people pay Tax issues. In 2002, Transparency International studied 256 respondents, among which 99% were facing corruption regarding to taxation. Furthermore, 32% of respondents were paying bribes to lower their tax assessment, and around 14% reported receiving fictitious tax assessments. Pakistan is one of the developing countries where tax to GDP ratio is very low. From 1947 the sales tax was introduced at provincial level which was covering a limited area of commercial activities. In 1951 it was converted into a federal tax in 1951. The Government of Pakistan setup a National Tax Reforms Commission in 1985 to provide recommendations to improve the legal and taxation system in Pakistan. The Commission submitted its final report in December 1986. As a result, the Sales Tax Act was introduced in 1990, it was a value added version named as General Sales Tax (GST). In 1995-96, GST was transformed into a complete VAT mode tax with its basic structures. In 1997-98 the legal and tax base was extended to importers, retailers and wholesalers. GST was only covering the goods before 1990, which later on covered the services sector also. Tax collection was increased from 1990’s to 2000’s collecting US$ 2.67 billion in the recent years.
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees The Indian hiring employees is the 2nd fastest growing hiring employees of the world and 12thlargest in term of exchange rate. Although, India does not have impressive track record in the growth of revenues, rising from6.8% of GDP in 1950’s to 10.3% in 1990’s and maximum of 12.9% in 2009. But the important thing is that the legal and tax-to-GDP ratio is increasing constantly from 2004 onward. On the other hand, tax-to-GDP ratio in Pakistan has a declining trend from peak 13.2% to 8.9 in 2009.
Sri Lanka has been facing a worsened law and order situation since early 80’sand hiring employees of Sri Lanka showed a very low GDP growth. Although, tax revenues as compared to GDP has decreased in Sri Lanka but still they have high rate of 14.3% which is higher than Pakistan. Sri Lanka has coped with the problems in hiring employees by focusing on its Tea exports, Tourism sector. Furthermore, government has also tried to improve the revenue collection.
Sweden is considered to have highest tax-to-GDP ratio in the world. Tax revenues in Sweden have touched a highest level over 50% of GDP. The personal income tax rate is highest in Sweden which is about 56.4%. Tax rate is progressive for the personal income in Sweden while in Pakistan we are facing a regressive taxation. (Exhibit 4)
Reasons of low tax to GDP ratio in Pakistan
There are several reasons why we are unable to collect the legal and tax. Corruption is one of the important aspects which are casting great hindrance in taxation system. Other important reason is low literacy rate, which is very low as compared to many countries in the world.(Exhibit-5Literacy).Demography of a country also play an important role in the legal and tax to GDP ratio. Pakistan has about 36.7% population which is 14 years of age or below. Hence working class is not growing to generate Tax issues. Terrorism, law and order situation, poverty and unemployment are also playing important role in low tax collection. Tax base in Pakistan is stable at 1%, on the other hand tax base in USA is about 24% and it is 20% in Malaysia. Tax policy is also not suitable in order to generate Tax issues and to extend the legal and tax net. Another problem that we are facing is documentation of hiring employees; nearly 52% of our hiring employees is undocumented. Audit and enforcement is so weak in Pakistan that the audit agencies themselves are involved in corruption. Looking at different sectors, we can see agriculture has above 20% share in GDP but tax collected from this sector are only 1% of total tax collection. In this way contribution of different sectors is not properly distributed. Political influence is also a big hurdle in the legal and taxation system.
Main Concern of Pakistan’s Tax Policy
Government collect Tax issues from its people in order to spend the collection on the welfare of its people which includes national defense, debt servicing and other welfare related issues. While designing the legal and tax policy a country should account the equity and justice for its people because a system is most effective when it is designed on the bases of equal and fair treatment of each tax-payer. But in case of Pakistan the situation is bit different, as a nation we are in debt by the foreign and domestic lenders which is due to our extra expenses incurred due to recent war on terror, our habit of corruption at national and international level and we are also tax averse society in which we don’t feel ourselves responsible to pay Tax issues.
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees Our current tax collection system is very weak which comprises of loopholes in the system accompanied by the corruption of Federal Board of Revenue (FBR) officers which speaks about the justice and equity of our government officials for their people. After analyzing the height of corruption, special favor given to government officials or their friends, our undocumented hiring employees and failure to increase tax net it has become necessary for any lender to set the target in order to continue the money lending and to make sure that their borrowed money can be repaid by the borrower.
Initially the foreign lenders did not set any targets for us because they somehow believed in our commitments and also felt that we will pay them back their money as per the signed agreement but after the several failures of debt servicing, lenders started to analyze the root cause of this issue in which they found our tax collection system complied with old methodology of taxation i.e. General Sales Tax (GST) in which all the legal and tax collected at the last stage which makes them aware of the fact that as a corrupt nation and low tax net hiring employees it will become more difficult for them to collect their lent amount from us which lead IMF to set targets for us.
The reason they feel our system is outdated because now most of the countries in the world including the developing countries are eliminating the loopholes in tax collection system by introducing the Value Added Tax (VAT) and by increasing the legal and tax net through VAT. Now the question arises what are the reasons for government to obey the rules set by International Monetary Fund (IMF). Firstly, we do not have enough liable system and funds by which we can manage our hiring employees because of which we need IMF’s support so that we can run our affairs smoothly. Secondly, reforming Pakistani taxation; certain actions such as reestablishment of the State Tax Organization, restructuring the law of direct taxation, introducing and implementing the value added tax, as a complimentary to the reformation of the existing law of direct taxation and as an efficient and co-ordinate tool with the economic situation of the country has been taken in to account. Also, In General Sales Tax (GST) which is based on the percentage of sales, State loses 100 percent when someone evades tax whereas in Value Added Tax (VAT), a taxation system in which tax is applied in production process whenever the value is added to the product, if tax is evaded at one value addition stage government loses only some part of the legal and tax
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees Another reason for suggesting implementation of the value added tax is that, it is a suitable substitute for many other duties and indirect Tax issues, which has vast distortion effects on the productive sectors and on the welfare and behavior of the consumers. Omission of the indirect Tax issues and duties causes great decrease in the government revenues. Thus, the value added tax, in addition to compensating the income decrease of the government, can also increase the government tax revenues.
VAT also justifies itself more effectively because by implementing VAT it will result in the increase of tax revenues and also help to decrease the pressure on taxation for production sector also better for the investment by the adjustments in the income tax rates. It will also reduce the time and costs related to tax collection and also bring the sense of participation among the peoples.
On the proposal for introducing VAT in Pakistan by the government officials there was a huge resistance from the opposition parties because the main negative effect of VAT in hiring employees of Pakistan is the need of accounting which needs to be done which will also effect on the accounting which business might need to perform. It affects small businesses because such business may lack in terms of accounting proficient peoples in order to track the legal and tax of business.
It is also highlighted by opposition that VAT will also result as a regressive tax policy in which rich person will get a fair deal by transferring their tax burden upon the poor people which will ultimately cost a lot for the poorer one but after analyzing the research paper of so many author we came to understanding that initially at the time of imposing VAT for the first time such problems do occur but there are also some ways by which government can address these issues. And it is also the reason that some of the critics of VAT states that it will also lead to inflationary price level which will hurt the hiring employees as a whole but this is not as much true because the rationale behind VAT states that it will create the deflationary effect on the hiring employees which will result in stable or low price as the time passes. And to respond the previous critic of VAT about being regressive policy, we can compensate the low salary class of people by introducing new tax policies which could help them particularly.
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees The main concern of Pakistan’s tax policy is to increase the legal and tax revenue which can only be done through applying VAT in which tax can be collected at every level whenever the value has been added. Its positive effects are more as compare to the reasons for resistance which government is facing in order to reinforce it and these resistance are natural because if we see other countries who are same as Pakistan have also faced the similar kind of issues while implying their tax system from GST to VAT and not just that but also we are running out of funds for which we have to comply with the requirement of Foreign Lenders i.e. IMF so that we can manage our economic issues comfortably.
In the long run perspective, the VAT will not just increase our tax net but also make us self-sufficient in terms of managing our self and we will also be able to service our debts which will results us as a freedom from the loan from IMF in the coming time period.
Only critical fact which needs to be address while setting the legal and tax policy on VAT is the corruption related matters which can be minimized by the VAT by its own self but government should also take some initiative while dealing with VAT implementation face because it’s more easy and possible to cheat if VAT is the system but on the other hand it will just miss the percent of Value Addition while on the other hand GST miss the whole hit if the legal and tax payers manage to get rid of tax.
Comparison of Complex VAT with Simpler GST
As we know, in GST, tax is charged as a fixed rate at the end of supply chain where as in Value Added Tax system, tax is charged at every value addition stage so suppliers/vendors in the middle stages of production can evade tax by not registering with Financial Bureau of statistics. In VAT system, for example If a stage two supplier is not registered with FBR and supplies goods to third level in value addition and FBR takes information about the production of good from level three vendor, the legal and tax evader at level will be tracked sooner or later. The world experience has showed that VAT induces a strong tax culture. Under GST system, due to tax evasion, tax gap in 2010-2011 was 79 percent. One way to stop organizations from evading tax is heavily penalizing them. For example if the organization has already filed a tax return and fails to pay the legal and tax liability or evades it should be penalized on daily basis. If a person registered with VAT fails to file return, under section 88 of the Federal VAT Bill 2010, value added tax liability will increase. If the legal and tax return is not filed within fifteen days of due date, the supplier would have a penalty of Rs.1, 000/- for every day of default. Penalties on failing to pay the legal and tax issues would help collecting tax and there would be an incentive for organizations to pay Tax issues on time because if they do not they will be charged more. Also the suppliers in the supply chain who are not registered with FBR will not be in a position to claim the legal and tax paid at purchase levels. The in-built invoice based credit of VAT will promote economic documentation. Tax invoice is the most important and significant feature of VAT-induced documentation. VAT has self-assessment features and records business transactions through tax invoicing.
Today Pakistan is facing a problem of undocumented and black hiring employees. More than 30 %, calculated by electricity consumption approach, of Pakistan’s total hiring employees is undocumented resulting in low tax revenues which in turn results in increasing tax rate and increasing tax burden on people who fairly pay their tax dues. VAT, with its features of penalizing and mandatory documentation of business activity, will help eradicate the norm of black hiring employees from the nation.
When in 2010 implementation of VAT was proposed, online registration of tax payers was also proposed. Difficult and rigorous registration is also one reason of people and businessmen not registering for tax. Historically as well as in present registration, under GST, has been a troublesome process because of which people avoid it hence huge amount of revenue is lost by government. If VAT is introduced, registration would become easy and those who do not register just because of the complicated process would start listing themselves which would eventually increase government revenues and its ability to pay off debt.
It is also a general concern of people that the cost of compliance would increase dramatically if the VAT is implemented; this however, is not true. There will be no effect or increase in compliance cost of producers already registered/operating under GST regime and will automatically switch to VAT. But the new taxpayers who are not yet registered will have to pay nominal expense for VAT compliance. Because of IT- based VAT processes, cost of VAT compliance usually remains low for the legal and taxpayers who release their tax obligations regularly on fair lines.
One of the reasons Pakistan has not been able to progress as much as other emerging countries have is because of the lack of proper infrastructure, low quality of education, and lack of government’s ability to spend on public welfare. Almost all of the legal and tax collected by government is spent on either defense or on debt servicing. The stage has come when Pakistan needs loan to pay its loan payments. With VAT the state would be able to collect more Tax issues with which Pakistan will be able to repay its loans sooner. Once Pakistan pays off all the loans it will be able to spend on infrastructure and improve quality of education. Better infrastructure and education would attract foreign investments which will increase GDP and eventually increasing the legal and tax base; there has been a decrease of more than 3000 million $ from fiscal year 2007-2008 to 2009-20010 in FDI see exhibit 6. According to VAT law there is no difference between retailers and wholesalers. It also does not define manufacturer or manufacture. Every person, who is part of the production supply chain, is required to get registered with VAT if he/she is engaged in carrying out business activity of making supplies of taxable goods/services. Under GST only some of the industries are charged tax. For example, cellular services account for more than 80% of the total GST collected, rest of the country’s industries pay less than 20% of the GST revenue. Now one problem could be that organizations tend to avoid Tax issues especially when VAT is practiced in the hiring employees. But with the negative effects, payment of Tax issues has positive consequences as well; paying Tax issues improves the credibility of organization. People tend to purchase from organization that are ethical enough to pay its due Tax issues, it is most beneficial for small companies. If small organizations mention on their sites that the company is a regular tax payer, it will not just improves its credibility but will also enhance its ability to compete with larger firms.
Tax refund is also a major problem under GST regime, VAT, however has a solution to it. Under VAT system refunds will be paid through speedy Refund Payment System. The system has already been set-up for exporters from the legal and tax period April, 2010 onwards. Under this upgraded system electronic refund payments will be made directly in the bank accounts of the legal and taxpayers. This new refund system will be expanded to cover all other classes of refund claimants in due time. Thus, VAT is the most appropriate tax system for Pakistan as it has the ability to deal with tax refunds without taking much time, its ability to track un-registered business entities, and its ability to increase government revenues and reduce tax gap.
Practical study
In Pakistan, tax collection as a percentage of gross domestic product (GDP) is considerably low when compared to similar economies. The ratio is low for both direct and indirect Tax issues. In 2012-13, tax-GDP ratio for direct and indirect Tax issues collected by the Federal Board of Revenue (FBR) was 3.2pc and 5.3pc, respectively. Overall the ratio was 8.5pc.
There are numerous reasons for low tax-GDP ratio in the country. Some of them are discussed hereunder:
Tax Evasion
The extent of tax evasion in Pakistan could be estimated by looking at the legal and tax gap. The operational definition of the legal and tax gap is the difference between potential and actual tax revenue, where the potential tax revenue is the amount of tax the government would collect if every person liable to pay tax fully pays his due tax and complies with tax law. There is an enormous revenue loss due to exemptions, allowances and deductions from income tax, sales tax and customs duty, which was Rs. 887.5 billion or equal to 3.9pc of GDP in fiscal year 2012-13.
Generally, the legal and tax incentives (exemptions) are provided to the investors to boost economic growth and create jobs. But, slow GDP expansion over the last five years or so has demonstrated the ineffectiveness of tax incentives in accelerating the pace of growth.
Likewise, the legal and tax amnesty schemes, introduced from time to time, frustrate the FBR’s efforts to curb tax evasion. These schemes adversely affect documentation, distort uniform collection of Tax issues and ensure horizontal and vertical equity, violating the two golden principles of good taxation.
Such schemes widen tax policy gap as they raise expectations of taxpayers for more such packages in the future. Furthermore, as the amnesties provide immunity from tax audit, they further hinder the process of tax compliance. There are more than one form of tax evasion such as none or under-reporting of tax liability.
Inadequate staff, scarcity of physical and financial resources and/or poor working capacity of the legal and tax officials may result in weak enforcement. And tax-evaders exploit weaknesses in the enforcement mechanism to their benefit.
In order to improve revenue performance, it is necessary to bridge the legal and tax policy gap as well as tax gap arising from weak enforcement. Minimal use of exemptions is needed to refine the existing Tax issues and to provide level playing field for all sectors of hiring employees. At the same time, it is crucial to strengthen the current enforcement mechanism by enhancing administrative efficiency and capability as well as improving taxpayer compliance through taxpayer services and education.
In addition, regular and effective examination of records could be a deterrent against tax evasion and underreporting. At the same time, appropriate training of the relevant staff could improve recovery out of demand created from examination of records. The effective use of relevant information could help bridge the legal and tax gap besides encouraging documentation.
Listening to public opinions and suggestions could improve mutual understanding and trust between taxpayers and tax officials, and this has to be addressed at each level of tax management.
Last but not least, it is imperative to impose stipulated penalties on taxpayers who violate provisions of law. At the same time, strengthening the legal and tax investigation system is fundamental in creating deterrence against tax evasion and bridging the legal and tax gap.
The Black Hiring employees
The unreported hiring employees or the black or underground hiring employees comprises those activities that evade the payment of Tax issues and thus violate the fiscal rules. It includes income which should be reported to the authorities but is not. The size and growth of black hiring employees adversely affects various economic and tax reform policies, the budget deficits, debt burden, etc. Revenue loss estimated due to undocumented hiring employees is massive.
Sales Tax Frauds
The legal and taxpayers exploit the multiple sales tax regimes to evade Tax issues through fraudulent schemes. VAT/GST fraud is a matter of serious concern for the legal and tax administration of both developing and developed countries and Pakistan, too, is no exception to that. It’s an issue of growing concern that has put a question mark on the superiority of VAT over other forms of consumption Tax issues such as retail sales tax. The issue of sales tax fraud in terms of size and frequency is a matter of grave concern for the legal and tax authorities in Pakistan. GST fraud exists in a number of forms, some prominent of them are:
Registration of dummy units
In some cases, the businesses got sales tax registration by submitting documents of employees. Under such circumstances, the actual beneficiaries of refunds or input tax adjustments remained underground. Whenever records of such dummy units are subjected to examination, tax demand so created could not be collected as the amount is assessed against the poor employees rather than rich, real owner of the business.
Fake import of goods declarations
There are cases wherein invoices were being issued on the strength of fake /non-verifiable import of goods declaration (GDs) in the sales tax returns. Thus the whole amount of input tax adjusted by the buyers proved to be illegal and recoverable. In fact, goods were being supplied to unregistered persons and invoices generated on the strength of fake GDs were being utilized for input tax adjustment.
Flying invoices
It is found in certain cases that the registered persons supply taxable goods to unregistered persons but succeed to obtain invoices from registered units involved in supply of different goods. These flying invoices are being used extensively to claim input tax or sales tax refunds.
Fake bank accounts
The registered persons claiming input tax on invoices more than Rs. 50,000 are required to make payments through banking channels. The legal and tax fraudsters opened bank accounts sometimes in connivance with the bank officials utilizing documents/signatures of persons other than actual beneficiaries and this enables buyers to ensure compliance of section 73 of the Sales Tax Act 1990.
Suppression of taxable supplies
Sales tax is an indirect tax. The businesses are supposed to shift the burden of this tax to final consumers of goods and services. In many cases, the registered persons, though charge sales tax on all supplies, they don’t declare true turnover in the sales tax returns and thus evade sales tax. In other cases, many businesses declare turnover just below threshold required for sales tax registration and thus continue to operate in an undocumented hiring employees. These businesses actually capture large share of market due to less product prices as compared to those operating under the sales tax net.
Tax issues are required to meet the expenditure that a country needs to serve its people. Pakistan operates through hybrid system whereby Federal Board of Revenue (FBR) collects Tax issues on goods and the provinces levy on services.
The FBR revenue is only 10% of the GDP, which is one of the lowest in the world. Revenue officials claims their system very efficient whereas business community terms it very coercive in nature. Different analysts believe it is in an auto mode.
Every government that comes in power boasts of having turned the FBR around but the end result is “back to square zero”.
The issues facing tax administration are: why FBR fails to register growth as percentage of GDP; what kind of the system exists in the Pakistan and what are its fault-lines, if any; what are the best taxation practices at global level; and how could the same be transposed in FBR; lastly, what structural and operational changes could make it an efficient organisation?
An analysis of these issues will put the legal and taxation system in objective perspective.
Traditionally CBR, before it was renamed reformed FBR in 2008, used to be very lean and currently it pursues top-down approach and, like Parliament, takes decision by majority vote in Board-in-Council.
The FBR initially introduced functional model but now has reverted to territorial model, albeit on recommendation of Reform Commission constituted in 2014.
It has a work force of about 30,000 personals and more than 100 officers in BS-21 and dozen in BS-22. Direct Tax issues (Income Tax) and Indirect Tax issues including Sales Tax, Federal Excise Duty and Customs Duty.
The FBR maintains a huge organisation but ends up in collecting just 10% of the GDP. Obviously the FBR will not offer any plausible reason other than always claiming about 10-20% annual growth between 2013-18.
One of the practicing economists finds such growth in Tax issues at the bar of enhancing the tariff rates inimical to economic cycle.
In this context another international experts pointed out that Pakistan has a skewed system whereby 90% of the revenue is collected through 100 main corporate entities. General perception in tax literature points out that in a country with a population of 220 million only less than one lac persons pays more than one lac rupees and another roughly four lacs make some payment. It is in this context that the business community always complain that the FBR focuses only on individuals that are already burdened with Tax issues conveniently forgetting incidences of Tax issues to end consumers.
The FBR conducted many studies starting from Shahid Hussain Task Force, TARP Reform Document and changes made as per agreement with the IMF but they were hardly implemented. Similarly, every regime in the FBR ends up with more collection at source in the name of “Innovational approach.”
Comparative analysis of efficient taxation systems will be helpful to understand why the FBR continues to be trapped in low trajectory. In India, there is a separate Board of Inland Revenue while a separate Board for the Customs Duty. International Tax gurus including Dr Michael Keen term Australia and New Zealand as having put in place fourth generation of taxation model.
The Australian Taxation Office (ATO) collects all the domestic Tax issues where the Australian Customs collects the Customs Duty and Federal Excise Duty as well as other Tax issues on the import side. In America, the federal government collects only Inland Revenue and Customs Duty whereas each state collects General Sales Tax that is non-adjustable. In the UK, Her Majesty Customs and Revenue (HMC&R) collects both kinds of the legal and tax issues but have a distinct separate stream at operational level for Customs, Income Tax and Sales Tax.
Value Added Tax (VAT) is practiced in the most of countries except the USA. Be it as one may infer, as described by Dr Bird, “No single size fits all”. But the fact remains in most of the countries referred earlier, the legal and tax issues collected are high as much of 48% of GDP except in India where it is around 15%.
If the systems even in India could collect around 15% of GDP, why cannot Pakistan? To find some objective answer, we have to see Tax scheme or mischief in GST, Income Tax and Customs Duty. Pakistan’s FBR structural model is unwieldy, lack autonomy and no tenure protection for its head. It’s invested with powers in routine operational matters. On top of all it is virtually “FBR-in-Meetings” either internally or in parliamentary committees. Efficient tax organisations stated earlier are lean, their heads are posted on fixed tenure and don’t suffer from meetings syndrome and it doesn’t interfere in the field matters.
In order to transform the FBR as autonomous and efficient, it must have a lean structure and the revenue body should be headed by a forward looking practicing economist assisted with three separate members, each for Customs, Sales Tax,
Income Tax, HRM and a separate member of Information Technology. Few of international experts also suggested that the Policy Making Board should be separate from the Operational Board like Her Majesty Customs & Revenue, (HMCR) comprising of the reputed CEOs of corporate entities as well as from the government operating machinery. This policymaking board should in consultation with the ministries of Planning, Commerce and Industries make broader outlines for the guidance of Operational Board. Discretionary powers must be curtailed and the field enforcement functions decentralised.
Data collection methods
The impact of Tax issues on Pakistan’s Gross Domestic Product has been analyzed by distinctive economists, utilized diverse sorts of variables. Every one of them have utilized distinctive models and discovered diverse effects. Because of the uncommon emphasis on the expenses and Gross Domestic Product, we utilized the accompanying variables within our study. In this study the following variables has been used. The study takes Tax issues as an independent variable. Tax issues included the direct and indirect Tax issues. In the direct Tax issues, we take Income tax, Worker welfare tax, capital worth tax for the estimation of direct Tax issues and for indirect Tax issues, Custom and duty, Federal ex-tract estimation and bargains duty is chosen for the study. The reason of selecting these sub sorts of expenses is accessibility of information with State Bank of Pakistan. The Gross Domestic Product taken as a dependent variable for research study. Gross Domestic Product represents economic growth. Gross Domestic Product means all final goods and services produced in a country during one year. The data has been taken and compile form this websites, The State Bank of Pakistan, Federal Bureau of Statistics, Ministry of finance of Pakistan and Business Recorder website (www.businessrecorder.com), Business magazines of Business Recorder, International Financial Statistics (IFS) and different issues of Pakistan economic survey.
Conclusion
AIOU Solved Project 8503 Legal And Tax Issues In Hiring Employees The study was conducted to find out the effects of fiscal policy on Pakistan Economic growth. Tax issues have been selected as a proxy of fiscal policy and Gross Domestic Product as economic growth. Tax issues are the independent and Gross Domestic Product as dependent variable. The data from 1947 to 2012 was selected as universe and from 1981 to 2012 as a sample of the study. Time series analysis was used in the data analysis. In time series analysis includes unit root test for checking stationary and non- stationary, co-integration model which are used for long run relationships, Granger causality test. The study concludes that both Tax issues and Gross Domestic Product has no unit root evidence from the augmented dickey fuller test results show in their respective tables. The test has been run at levels. While at first difference the augmented dickey fuller test (ADF) results shows that Gross Domestic Product has unit root and the data is stationary. Two test regarding the checking of co-integration i.e. trace test and maximum Eigen value test was used and the results from both tests suggests that is no co-integration between Tax issues and Gross Domestic Product. The Granger causality test was run in two lags i.e. 2 lags and 4 lags. The results of 2 lags shows that Tax issues does not Granger cause Gross Domestic Product and causality flows from Gross Domestic Product to legal and tax issues while the results of 4 lags shows that Tax issues does not Granger cause Gross Domestic Product and same is the case with Gross Domestic Product to legal and tax issues.
Recommendations
The result of discussion shows that the legal and tax issues and Gross Domestic Product has strong positive relationship. So this study recommended that the legal and tax rate should increases but a constant rate. The legal and tax issues affect Gross Domestic Product 98% if 1% increases in taxation, then 1.016 has increases in Gross Domestic Product from this study we find out that Tax issues has a lots of contribution in Gross Domestic Product of Pakistan. So the Government should totally focus on Fiscal Policy and the Fiscal Policy should make according to the economic situation of Pakistan and it should be properly implementing. So the unit root test result shows that the data of Gross Domestic Product and Tax issues are not stationary, it should be stationary. The study recommended that the Government should not change the legal and tax rate again and again.
References
Congressional Budget Office. 2014. “How CBO Analyzes the Effects of Changes in Federal Fiscal Policies on the Hiring employees.” Washington, DC: Congressional Budget Office.
Gale, William, and Andrew Samwick. 2014. “Effects of Income Tax Changes in Economic Growth.” Washington, DC: Urban-Brookings Tax Policy Center.
Joint Committee on Taxation. 2015. “Macroeconomic Analysis at the Joint Committee on Taxation and the Mechanics of Its Implementation.” Report JCX-3-15. Washington, DC: Joint Committee on Taxation.
Page, Benjamin R., and Kent Smetters, 2016. “Dynamic Analysis of Tax Plans: An Update.” Washington, DC: Urban-Brookings Tax Policy Center.
Page, Benjamin R., Joseph Rosenberg, James R. Nunns, Jeffrey Rohaly, and Daniel Berger. 2017. “Macroeconomic Analysis of the legal and tax Cuts and Jobs Act.” Washington DC: Urban-Brookings Tax Policy Center.
Amanja, D. M., and Morrissey, O. (2005), “Fiscal Policy and Economic Growth in Kenya”, Credit Research Paper, 05/06, pp.1-35.
Barro, R. J. (1979). On the Determination of the Public Debt.J.ofPoli. Econ, 87(5), 940–971. http://dx.doi.org/10.1086/260807.
Mccracken, C. (2006). Whether Fiscal Policy State Affects State Economic Growth.
Romer, P. M. (1990).Endogenous Technological Change.The J. of Poli.Econ, 98(5), S71-S102. http://dx.doi.org/10.1086/261725.
We face a variety of skin problems in our daily lives. Some common problems like dry skin, acne or pimple scars, oily skin, etc., bother us a lot. As a result, we try to use everything available in the market that claims to solve these problems immediately. Nothing can beat natural remedies when it comes to safety and cost.
How does red sandalwood benefit the skin?
Red Sandalwood is an ayurvedic herb that our grandmothers used to enhance their everyday beauty. It can be used in either paste form or powder form. It helps in removing the ink from the skin and getting rid of blemishes. In addition, regular use of red sandalwood wood will help in getting fresh-looking skin.
Rose liqueur and red sandalwood face mask
1 tablespoon red sandalwood powder
1 tablespoon rose water
1 tablespoon of honey
A pinch of turmeric
This mask will help you in treating your acne and pimple scars. Mix sandalwood powder and rose liqueur. Add honey and turmeric and combine all the ingredients well. If you are allergic to turmeric, do not include it.
Apply it all over the face or just on the affected area. Leave it on until it dries, then wash it thoroughly with lukewarm water. This treatment can be used on a regular basis until you feel the difference.
Lemon and Red Sandalwood Wood Mask
1 tablespoon red sandalwood powder
A few drops of lemon juice
This mask is perfect for people with oily skin. It helps in closing the pores of the skin as well as controlling the excess sebum produced on the skin.
All you need to do is mix red sandalwood powder and lemon juice to make a light paste. Apply it on cleansed face and leave it on for 15-20 minutes, then rinse it off with cold water. Because lemon juice has acidic properties, it can dry out your skin. To avoid this, apply a mild moisturizer.
Papaya and Red Sandalwood Wood Mask
1 tablespoon of sandalwood powder
Cooked papaya as required
First cut the papaya into small pieces and file it to make a paste. Add 2 tablespoons of this papaya paste to red sandalwood powder. Mix the two ingredients well.
Apply this paste evenly on your face and gently massage for 2-3 minutes. Leave it for 20 minutes and then wash it off with plain water. Use this exfoliating mask once a week to rejuvenate your skin.
Yogurt, milk, and red sandalwood wood mask
1 tablespoon red sandalwood powder
Yogurt 2 tbsp
2 tablespoons milk
Half a teaspoon of turmeric
If you have blemishes and oils on your skin, this mask will help you get rid of them and give you a uniform skin tone.
In a bowl, mix 1 tablespoon red sandalwood powder, yogurt, and milk together. If you are not allergic, add a pinch of turmeric. Apply it on your face and leave it on for a few minutes. Then clean it with plain water. Use this treatment once or twice a week for best results.
ہمیں روزمرہ کی زندگی میں جلد کے مختلف قسم کے مسائل کا سامنا کرنا پڑتا ہے۔ کچھ عام مسائل جیسے خشک جلد ، مہاسے یا پمپل کے داغ ، آئلی اسکن وغیرہ ، ہمیں کافی حد تک پریشان کرتے ہیں۔ اس کے نتیجے میں ، ہم بازار میں دستیاب ہر چیزکے استعمال کی کوشش کرتے ہیں جو ان مسائل کو فوری طور پر حل کرنے کا دعویٰ کرتا ہے۔ جب حفاظت اور لاگت کی بات ہو تو قدرتی علاج کو کچھ بھی شکست نہیں دے سکتا۔
سرخ صندل ووڈ جلد کو کس طرح فائدہ دیتا ہے؟ سرخ صندل ووڈ ایک آیورویدک جڑی بوٹی ہے جسے ہماری نانی دادی اپنی روزمرہ کی خوبصورتی کے بڑھانے کے لئے استعمال کرتی تھیں۔ اسے یا تو پیسٹ فارم یا پاؤڈر کی شکل میں استعمال کیا جاسکتا ہے۔ یہ جلد کی سیاہی کو ختم کرنے اور داغوں سے نجات دلانے میں مددگار ثابت ہوتا ہے۔ اس کے علاوہ ، باقاعدگی سے سرخ صندل کی لکڑی کا استعمال ترو تازہ نظر آنے والی جلد حاصل کرنے میں معاون ہوگا۔
1۔ عرق گلاب اور سرخ صندل ووڈ فیس ماسک لال صندل کا پاؤڈر 1 چمچ عرق گلاب 1 چمچ شہد 1 چمچ ہلدی ایک چٹکی
یہ ماسک آپ کے مہاسوں اور پمپل کے داغوں کے علاج میں آپ کی مدد کرے گا۔ صندل کی لکڑی کا پاؤڈراورعرق گلاب ملا کر مکس کریں۔ اس میں شہد اور ہلدی شامل کریں اور تمام اجزاء کو اچھی طرح سے اکٹھا کرلیں۔ اگر آپ کو ہلدی سے الرجی ہے تو آپ اس کو شامل نہ کریں۔ اسے یا تو پورے چہرے پر یا صرف متاثرہ حصے پر لگائیں۔ جب تک یہ سوکھ نہ جائے اسےلگا رہنے دیں ، بعد میں اسے نیم گرم پانی سے اچھی طرح دھولیں۔ اس علاج کو مستقل بنیاد پر استعمال کیا جاسکتا ہے جب تک کہ آپ کو فرق محسوس نہ ہو۔
2۔ لیموں اور سرخ صندل ووڈ ماسک لال صندل کا پاؤڈر 1 چمچ لیموں کے رس چند قطرے
یہ ماسک آئلی جلد والے لوگوں کے لئے بہترین ہے۔ یہ جلد کے مسام بند کرنے کے ساتھ ساتھ جلد پر پیدا ہونے والے اضافی سیبم کو بھی کنٹرول کرنے میں مدد کرتا ہے۔ آپ کو بس اتنا کرنے کی ضرورت ہے کہ ایک ہلکا سا پیسٹ بنانے کے لئے آپ کو سرخ صندل ووڈ پاؤڈر اور لیموں کا رس ملائیں۔ اسے صاف شدہ چہرے پر لگائیں اور 15-20 منٹ تک لگا رہنے دیں ،بعد میں اسے ٹھنڈے پانی سے صاف کریں۔ چونکہ لیموں کے رس میں تیزابیت کی خصوصیات ہوتی ہے یہ آپ کی جلد کو خشک کرسکتی ہے۔ اس سے بچنے کے لئے ہلکا سا موئسچرایزر لگا لیں۔
3۔ پپیتا اور سرخ صندل ووڈ ماسک صندل کا پاؤڈر 1 چمچ پکا ہوا پپیتا حسب ضرورت
پہلے پپیتے کو چھوٹے چھوٹے ٹکڑوں میں کاٹ لیں اور پیسٹ بنانے کے لئے اس کو مسل دیں۔ اس پپیتا کے پیسٹ کا 2 چمچ سرخ صندل کے پاؤڈرمیں شامل کریں۔ دونوں اجزاء کو اچھی طرح سے مکس کریں۔ اس پیسٹ کو یکساں طور پر اپنے چہرے پر لگائیں اور آہستہ سے 2 سے 3 منٹ مساج کریں۔ اسے 20 منٹ تک رہنے دیں اور پھر اسے سادہ پانی سے دھولیں۔ اپنی جلد کو جوان بنانے کے لئے ہفتے میں ایک بار اس ایکسفولیئشن ماسک کا استعمال کریں۔
اگر آپ کی جلد پرداغ دھبے اورآئل ہے تو یہ ماسک آپ کو اس سے چھٹکارا دلانے میں مدد دے گا اورآپ کو جلد کی یکساں رنگت فراہم کرے گا۔ ایک پیالے میں 1 چمچ لال صندل کا پاؤڈر ، دہی اور دودھ ایک ساتھ ملا دیں۔ اگر آپ کو الرجی نہ ہو تو اس میں ایک چٹکی بھرہلدی ڈال دیں۔ اس کو اپنے چہرے پر لگائیں اوراسے کچھ منٹ کے لئے چھوڑ دیں۔ بعد میں اسے عام پانی سے صاف کریں۔ بہتر نتائج کے لیے اس علاج کو ہفتے میں ایک یا دو بار استعمال کریں۔
All in One Support Button WhatsApp Messenger Telegram Live Chat
All in One Support Button WhatsApp Messenger Telegram Live Chat
All in One Support Button WhatsApp Messenger Telegram Live Chat Displays an all-in-one support button on every page of your site and provides as many communication methods as you like. You can choose which communication methods will be displayed separately on the desktop and mobile versions of your site. This way you can set one link for the desktop version and the other for mobile.
Facebook Customer Chat, WhatsApp, Talk. For live chat, intercom, zendesk chat, call back, crisp, Vk chat, skype, slack, Viber, telegram, email, smart soup, live chat, live helper chat, and more social communication support channels are all one. In the message module.
Button customization
Customize button position, color, size, icon, label. All the settings can be set separately for mobile and desktop versions of the widget Menu customization
Customize menu size, menu background, menu icons style, text color, etc. All the settings can be set separately for mobile and desktop versions of the widget Menu items
Choose items you want, add/edit/remove menu items Menu items visibility
Choose what items will be displayed on desktop and mobile devices separately Custom javascript handler
You can write custom JavaScript item hadler to integrate the widget with live-chat widgets, run Google Analytics code, etc. Live chat integrations
You can use this functionality to integrate with one or a few live chats such as FaceBook Customer Chat, Tawk.to, Zendesk chat, etc. (please see full list below) Customize prompt messages
Add/edit/remove prompt messages Callback request
Customers can easily request a call-back to/her phone number Email
When visitors request a callback you will receive an email Twilio integration
You can use Twilio integration to receive SMS when visitors request a callback Telegram chatbot
You can create and integrate a Telegram chatbot to receive Telegram messages when visitors request a callback Onesignal integration
You can use Onesignal integration to receive Web Push Notifications when visitors request a callback Callback requests in the admin panel
You can manage all callback requests in the admin panel (please see screenshots) Google reCaptcha V3 integration
Prevent bots to send call-back requests via invisible Google reCaptcha V3 (please see screenshots) Countdown timer
Display countdown timer when a customer request a call-back Theme color
Customize button color (please see screenshots) Hashtag commands
You can use the simple link with hashtag href to send some commands (open menu, close menu, open call back popup, etc.) to the widget. Please see the documentation for details. Shortcodes
You can use shortcodes on any of your site pages to display contact buttons (please see screenshots) Export/import settings
Science version 1.5.0 you can easily export all plugin data to file. This tool allows you to migrate to a newer version without data loss.
AIOU B.ED Thesis Format Solved Manual Research Project Download
AIOU B.ED Thesis Format Solved Manual Research Project Download
AIOU B.ED Thesis Format Solved Manual Research Project Download Students who are seeking AIOU B.ED (1.5 YEAR/2.5 YEAR) Thesis Manual Format Solved 8613 Research Project online. This page is for those students who need assignments for the research project thesis. We provide all kinds of assignments with a 100% Approval guarantee. A very highly qualified professional staff is always available for help. We also provide AIOU B.Ed all subjects manual research project pdf and Solved Assignments in PDF and MS Word Format. You are in the right place where if you looking for how to write a B.ed thesis of AIOU for free. We will give you step-by-step guidelines of its Procedure and Formatting. It is very easy to complete your Manual Research Project by just submitting the assignments, giving examinations, and doing a workshop of 2 weeks.
B.ed 8613 Manual Research Project Book pdf Download
Allama Iqbal Open University sends books to students’ addresses after admission is confirmed. But sometimes due to some issues the books do not reach the address or arrive late then the student can download all his books in pdf from the AIOU website. This time the books have not arrived yet due to covid-19 but the workshop has started. As you know, B.ed code 8613 is a manual research Project book. There is no advantage in taking a workshop without a book because, in B.ed 8613 research project workshop, the supervisor explains how to solve the book 8613 manual research project. If your workshop has been started and you do not have the 8613 manual research project book, you can download the 8613 manual research project book in pdf format by clicking on the link below.
Allama Iqbal Open University was established in 1974. The University follows a modified two semesters per year (Spring-Autumn). Admission forms and prospectus could be purchased from the University’s main campus, 44-Regional Campuses, and more than 100- Coordinating Offices across the country. Allama Iqbal Open University Islamabad was established in 1974, it is Asia’s first open university with a strong emphasis on providing distance education in philosophy, natural science, and social sciences. AIOU offers extensive undergraduate and post-graduate programs in academic disciplines. AIOU is one of the oldest and most well-known universities of Pakistan that has the privilege of being the second Open University in the world.
B.ed 8613 Manual Research Project Book word Download
Allama Iqbal Open University has asked the students to type and send 8613 research Project books. Students are worried about how to type B.ed 8613 Research Project book. To type and write code 8613 manual research Project book, students must have an 8613 manual research Project book in (document) doc/word formate. By editing the doc or word form of the 8613 manual research project, students will be able to type all the question answers in the book.
Most of the time the supervisor provides the doc file of code 8613 manual research project. But if the supervisor does not provide the doc file of the AIOU B.ed 8613 research book due to some reason, then you can download it from Skilling Foundation. You can also download projects past papers and much more from Stamflay Solutions also.
AIOU B.ed 8613 Solved Manual Research Project Thesis format PDF. Many students try to find the B.ed 8613 solved manual research project thesis. But the previous solved research project book of 8613 does not work in the current semester because the theme of B.ed code 8613 research project changes every semester.
Digits are compatible with all the latest versions of BuddyPress, WooCommerce, and every other plugin. The list on Envato (Codecanyon) is not the latest, so there is no way for us to select the latest version in item details.
What is OTP!
OTP is the abbreviation for One Time Password or One Time Passcode, it is also known as SMS Passcode, One Time SMS Passcode in different parts of the world.
But what does it do!
OTP / One Time Passcode acts as a password that is uniquely generated every time a user tries to login or signup and it is sent on his/her mobile number. It’s a pretty secure system nowadays as the passcode is generated every time and since it doesn’t require the user to remember their password it makes all of this easy at the same time and increases user conversion.
Passwordless Login for WordPress
Digits let your users signup on to your website simply with their mobile number. No more checking emails. Just SMS In this fast world, no one has time to SignUp on your website using traditional email, because this is not the single step involved, the user has to log into the email account – open email – click on the verification link to verify the email and then he/she gets access to the account on your website. And then comes the passwords, even if he manages to do that all the most important thing to remember to gain access to an account is password. Now if he/she forgets it again the user has to go through all the pain he went through while signing up. Just because of all these things nowadays websites are losing their customers as no one has time for all these things.
But with Digits This Changes
As mobile is the only thing humans spend the most time with, we take WordPress Signup and Login to the next level. Now users can create an account by just providing his/her mobile number and Login using OTP (One Time Password) Passcode. No passwords are compulsory.
FEATURES • Sign-Up With Mobile Number
Let your users sign up using a mobile number and increase your sign-up conversion rate. Relieve your user from the pain of opening an email account – verifying his/her email address and then having access to the account.
• Password-less Login
In this world of the internet, it is nearly impossible to remember all the passwords users use to sign up on different websites. Provide your customer with a password-less login. Login using One Time Passcode sent to your user via SMS on his mobile number
• Email-less Login
Let your user log in via mobile number. Forget those traditional emails used to create an account
• No Coding / Technical Knowledge Required
You don’t need any coding or technical skills to install and use the plugin, it installs just like any other plugin. Setup is also easy and our extensive document makes it even more effortless
• International OTP SMS Support
With our free gateways sending SMS to International counties is also totally free. So you can use it for your customers globally.
• Custom Fields
Add custom fields like text, data, number, dropdown, checkbox, radio, user role selector, etc to your forms
• Create Customer on Order
There are times when you need to create customers while adding a new order from the back-end. So we’ve also implemented this feature with all our plugin features.
WooCommerce Compatible Addons
Merge Phone Number
Old Account Migrator
Forced Login Page Lock
Country Based SMS Message Gateway
One-Click Login/Signup
Additional Fields & Logic Builder
Email Filter
SMS GATEWAYS
Firebase (Free OTP)
1s2u
2Factor
46elks
Account Kit
ADNSMS
ADP Digital
Africas Talking
Agile Telecom
Alfa Cell
Alibaba
Alibaba (Go China)
Altria
Amazon Pinpoint
Amazon SNS
Aruba.it
Bandwidth
Beeline
Branded SMS Pakistan
Bulk SMS
Bulk SMS Nigeria
CallFire
Camoo
CDYNE
Clickatell
Clicksend
Clockwork
CM
Comilio
Commzgate
CPSMS
D7Networks
Digimiles
Doo.ae
Easy Send SMS
Engage Spark
Esendex
eSMS
ExpertTexting
Farapayamak
Firebase
Fortytwo
Foxglove Connect
Gateway.sa
GatewayAPI
Ghasedak
Green Text
GupShup
Hubtel
IBulkSMS
Infobip
isms
iSMS Indonesia
Jazz CMT
Jusibe
Kalyera
KAPSystem
Karix.io
Kavenegar
Kivalo Solutions
Labs Mobile
Malath
Max-SMS
Melipayamak
Mensatek
Message Media
Messagebird
Messente
MiM SMS
MNotify
Mobily.ws
Mobyt
Mocean SMS
Mogreet
Msegat
Msg91
Netgsm
Nexmo
NHN Toast
Notify.lk
Notify.lk
NowSMS
Ooredoo SMS
OpenMarket
OperSMS
Orange
OsonSMS
Payam Resan
Plivo
Primotexto
Proovl
QSMS
RedSMS
Releans
Route SMS
Routee
Semaphore
Send Hub
Send SMS 247
SendInBlue
SendPK
Serwersms.pl
Signalwire
Sinch
Skebby
Slicktext
SMS Aero
SMS Alert
SMS Broadcast
SMS Country
SMS Edge
SMS Factor
SMS Gateway Hub
SMS Global
SMS Idea
SMS MISR
SMS Mode
SMS Ninja
SMS.cc
SMS.ir
SMS.RU
SMS.to
SMS123
SMS77
SMSALA
SMSAPI
SMSC.ru
Smsc.ua
SMSEmpresa
Smshosting
SMSMasivos
Sozuri
SparrowSMS
SpeedSMS
Spirius
Spring Edge
Spryng
SureSMS
Swift SMS Gateway
TargetSMS
Tatango
Telesign
TeleStax
Telnyx
Text Marketer
TextAnywhere
Textlocal
TextMagic
Textplode
Thai Bulk SMS
TheSMSWorks
TM4B
TTAG Systems
Turkey SMS
Twilio
TxtSync
Tyntec
Unifonic
Unisender
Uwazii Mobile
Verimor
Wavecell
Wavy
Web2SMS237
WebSMS
WebSMS
Yunpian
Zipwhip
Don’t see your preferred gateway in this list. Mail us at support@unitedover.com for requesting its integration
SOME OTHER FEATURES INCLUDE
Password reset with OTP Passcode
Signup with a password, login with OTP, or Password anything
Custom fields for login and signup forms
White label Custom sign-up and login page
Modal sign-up and login form
White-list / Block countries
Auto-detect country code
Default country code
User can add email after signing up with mobile
User can also sign up with email and add phone number later
Free and Paid SMS Gateways
Full WooCommerce support
Remove Email and Password Fields from Login – Signup Forms
Disable strong password registration
WooCommerce Phone Verification on Checkout
Login, Register, Logout Redirect
Option to add captcha in login form
Test API settings
WC add order can search user with mobile number
GDPR Compliant
Option to disable registration
Option to disable OTP
WPML Compatible
Drink For Glowing Skin At Home-Start your day with a detox drink to get your day off to a great start. It not only keeps you awake but also gives you energy throughout the day. The ABC Detox drink is the best choice because of the many benefits it has due to the three most important ingredients in the drink – apples, beets, and carrots. All three fruits have a long history of providing you with a healthy body and a vibrant mind.
The 3 main ingredients of ABC Detox Drink: Apple:
Apples are rich in nutrients which include vitamins A, B1, B2, B6, C, E, and K, folate, niacin, zinc, copper, potassium, manganese, and phosphorus. The fiber found in apples is one of the most beneficial for your health. It is high in vitamin C, which helps build your immune and nervous systems. Due to the presence of antioxidants, apples help protect cells from free radicals. There is a popular saying about apples that you should eat an apple daily and stay away from the doctor.
Beetroot:
Beets are good for your heart and are rich in nutrients including Vitamin A, C, B Complex, Iron, Potassium, Magnesium, and Copper. They contain antioxidants such as lycopene and anthocyanins that give the vegetable a deep pink and purple color that helps boost our immune system and control the production of bad cholesterol. Iron in it also increases hemoglobin. According to experts, beetroot provides betalain, an anti-inflammatory substance, which helps protect our liver. They also have anti-aging properties. It contains soluble fiber which fights against the accumulated fat in our body and helps to dissolve it.
Carrots:
Carrots contain a lot of nutrients including vitamins A, B, C, E, K, B1, B2, B3, B6, and nutrients like niacin, folate, and pantothenic acid and phosphorus, calcium, potassium, magnesium. And minerals like selenium. One of the most important ingredients that make carrots stand out is beta carotene. Our body converts beta carotene into vitamin A to help with eye function and the immune system. Vitamin A helps flush out toxins from the body and reduces bile and fat from the liver.
Highlights of the ABC Detox Drink: Useful for heart health:
A magical blend of many nutrients keeps your heart healthy. Beetroot and carrots contain lutein, beta-carotene, and alpha, which help keep the heart healthy. Two vegetables with apples help control blood pressure and protect the heart from various diseases. High levels of carotenoids are associated with controlling cholesterol levels.
Immaculate beautiful skin:
ABC Detox Drink claims to cleanse the skin of blemishes, freckles, acne, and even blackheads, creating a natural glow on your skin.
Useful in eyesight and other diseases:
If you constantly stare at your TV, computer, or mobile screen, your eyes become dry and tired which affects your vision. High doses of Vitamin A prevent dryness and fatigue in the eyes and further enhance eyesight.
Strengthens the body’s immune system:
The various nutrients in miracle drinks are great for boosting your immune system and protecting your body from various allergies and infections.
اپنے دن کا شاندار آغاز کرنے کے لئے اس کی ابتداء ڈیٹوکس ڈرنک سے کریں ۔ یہ نہ صرف آپ کو چاق و چوبند رکھتا ہے بلکہ آپ کو سارا دن توانائی بخشتا ہے۔ اے بی سی ڈیٹوکس ڈرنک بہترین انتخاب ہے کیونکہ اس مشروب میں تین اہم ترین اجزاء یعنی سیب، چقندر اور گاجر کی وجہ سے اس کے متعدد فوائد ہیں۔ یہ تینوں پھل آپ کو صحت مند جسم اورمتحرک دماغ فراہم کرنے کے لیے پرانی شہرت رکھتے ہیں۔
اے بی سی ڈیٹوکس ڈرنک کے 3اہم اجزاء سیب سیب غذائیت سے بھرپور ہوتا ہے جن میں وٹامن اے، بی 1، بی2، بی6، سی، ای اور کے، فولیٹ، نیاسین، زنک، کاپر، پوٹاشیم، مینگنیج اور فاسفورس وغیرہ موجود ہوتے ہیں ۔ سیب میں پایا جانے والا فائبر آپ کی صحت کے لیے سب سے زیادہ فائدہ مند ہیں۔ اس میں وٹامن سی زیادہ ہوتا ہے جو آپ کے مدافعتی اور اعصابی نظام کو بنانے میں مدد کرتا ہے۔ اینٹی آکسیڈنٹس کی موجودگی کی وجہ سے سیب خلیات کو فری ریڈیکلز سے بچانے میں مدد کرتا ہے۔ سیب کے بارے میں تو بڑا مشہور مقولہ ہے کہ ایک سیب روزانہ کھائیں اور ڈاکٹر سے دور رہیں۔
چقندر چقندر آپ کے دل کے لیے بہترین ہیں اور وٹامن اے، سی، بی کمپلیکس، آئرن، پوٹاشیم، میگنیشیم اور کاپر سمیت غذائی اجزاء سے بھرپور ہوتے ہیں۔ ان میں لائکوپین اور اینتھوسیانز جیسے اینٹی آکسیڈنٹس ہوتے ہیں جو اس سبزی کو گہرا گلابی اور جامنی رنگ دیتے ہیں جو ہمارے مدافعتی نظام کو بڑھانے اور خراب کولیسٹرول کی افزائش کو کنٹرول کرنے میں مدد کرتا ہے۔ اس میں موجود آئرن ہیمو گلوبن میں بھی اضافہ کرتا ہے۔ ماہرین کے مطابق چقندر بیٹالین فراہم کرتا ہے جو کہ سوزش کو دور کرنے والا مادہ ہے، جو ہمارے جگر کی حفاظت میں مدد کرتا ہے۔ ان میں اینٹی ایجنگ خصوصیات بھی ہوتی ہیں۔ اس میں حل پذیر ریشے ہوتے ہیں جو ہمارے جسم میں جمع چربی سے لڑتے ہیں اوراس کو گھلانے میں مدد کرتے ہیں۔
گاجر گاجر میں بہت سارے غذائی اجزاء ہوتے ہیں جن میں وٹامن اے،بی، سی، ای، کے، بی 1، بی 2، بی 3، بی 6 اور غذائی اجزاء جیسے نیاسین، فولیٹ اور پینٹوتھینک ایسڈ اور فاسفورس، کیلشیم، پوٹاشیم، میگنیشیم اور سیلینیم جیسے معدنیات ہوتے ہیں۔ گاجر کو دوسروں سے ممتاز بنانے والے سب سے اہم اجزاء میں سے ایک بیٹا کیروٹین ہے۔ ہمارا جسم بیٹا کیروٹین کو وٹامن اے میں تبدیل کرتا ہے تاکہ آنکھوں کے کام اور مدافعتی نظام میں مدد مل سکے۔ وٹامن اے جسم سے زہریلے مادوں کو باہر نکالنے میں مدد کرتا ہے اور جگر سے پت اور چربی کو کم کرتا ہے۔
اے بی سی ڈیٹوکس ڈرنک کے کمالات دل کی صحت کے لئے مفید بہت سارے غذائی اجزاء کو ملانے والا جادوئی مرکب آپ کے دل کو صحت مند رکھتا ہے۔ اس مشروب میں چقندر اور گاجر میں لیوٹین، بیٹا کیروٹین اور الفا ہوتا ہے جو دل کو صحت مند رکھنے میں مدد کرتا ہے۔ سیب کے ساتھ دو سبزیاں بلڈ پریشر کو کنٹرول رکھنے، دل کو مختلف بیماریوں سے بچانے میں مدد دیتی ہیں۔ کیروٹینائڈز کا اعلیٰ مواد کولیسٹرول کی سطح کو کنٹرول میں رکھنے سے وابستہ ہے۔
بے داغ خوبصورت جِلد اے بی سی ڈیٹوکس ڈرنک جِلد کو داغ دھبوں،جھائیوں، مہاسوں اور یہاں تک کہ بلیک ہیڈز سے پاک بنانے کا دعویٰ کرتا ہے جس سے آپ کی جِلد پر قدرتی چمک پیدا ہوتی ہے۔
آنکھوں کی بینائی اور دوسرے امراض میں مفید اگر آپ مسلسل اپنے ٹی وی، کمپیوٹر یا موبائل کی اسکرینوں پر لگے رہتے ہیں، تو آپ کی آنکھیں خشک اور تھک جاتی ہیں جس سے آپ کی بینائی متاثر ہوتی ہے۔ وٹامن اے کی زیادہ مقدار آنکھ کو خشک ہونے اور تھکاوٹ سے روکتی ہے اور بینائی کو مزید بڑھاتی ہے۔
جسم کا مدافعتی نظام مضبوط بناتا ہے معجزاتی مشروب میں موجود مختلف غذائی اجزاء آپ کے مدافعتی نظام کو بڑھانے اور آپ کے جسم کو مختلف الرجیوں اور انفیکشن سے بچانے کے لیےبہترین ہیں۔
Write notes on following E-Mail Uses of email Neutral Messages
E-Mail
Write notes on following E-Mail Uses of email Neutral Messages Electronic mail (e-mail) is a computer-based application for the exchange of messages between users. A worldwide e-mail network allows people to exchange e-mail messages very quickly. E-mail is the electronic equivalent of a letter, but with advantages in timeliness and flexibility.
Email (electronic mail) is the exchange of computer-stored messages by telecommunication. Email messages are usually encoded in American Standard Code for Information Interchange (ASCII) text. However, you can also send non-text files — such as graphic images and sound files — as attachments sent in binary streams. The email was one of the first activities performed over the internet and is still the most popular use. A large percentage of the total traffic over the internet is email. Email can also be exchanged between online service provider users and in networks other than the internet, both public and private.
Email can be distributed to lists of people, as well as to individuals. A shared distribution list can be managed by using an email reflector. Some mailing lists enable you to subscribe by sending a request to the mailing list administrator. A mailing list that is administered automatically is called a list server.
Email is one of the protocols included with the Transport Control Protocol/Internet Protocol (TCP/IP) suite of protocols. A popular protocol for sending email is Simple Mail Transfer Protocol (SMTP), and a popular protocol for receiving it is Post Office Protocol 3 (POP3).
Differences between email and webmail
Today, the term email is often used to include both browser-based electronic mail, such as Gmail and AOL, and no browser-based electronic mail, such as Outlook for Office 365. However, a distinction was previously made defining email as a no browser program that required a dedicated email server and clients. The advantages to using no browser email are integration with corporate software platforms, enhanced security, and lack of advertisements.
Uses of email
Email can be used in a variety of ways, either personally or within an organization, as well as one on one or among a large group of people.
Most people find email to be a beneficial way to communicate with individuals or small groups of friends or colleagues. It enables users to easily send and receive documents, images, links, and other files. Furthermore, it provides users with the flexibility of communicating with others on their own schedule.
Another beneficial use of email for one-to-one or small group communication could be sending professional follow-up emails after appointments, meetings, or interviews or reminding participants of approaching due dates and time-sensitive activities. It also enables users to quickly and easily remind all meeting attendees of an upcoming event or notify the group of a time change. This is assisted by the integration of calendars and appointments into most email service platforms.
Furthermore, companies can use email to convey information to large amounts of employees, customers, and potential customers. Email is frequently used for newsletters, where mailing list subscribers are sent specific, promoted content from a company, and direct email marketing campaigns, where an advertisement or promotion is sent to a targeted group of customers.
Email can also be used to turn leads into paying customers or to move a potential sale into a completed purchase. For example, a company may create an automated email that is sent to online buyers who keep items in their shopping cart for a specific amount of time. The email may remind the customer that they have products sitting in their cart and encourage them to complete the purchase before the items run out of stock.
Neutral Messages
A neutral message is one that does not provoke emotion. To clarify, the good news might be a job offer. Neutral news might be that the company you applied to confirmed the receipt of your resume. Deductive messages are pretty easy to draft. That is mostly because they come with no ill intent.
A deductive message is one that does not bring bad news. It brings good news or a neutral message. A neutral message is one that does not provoke emotion. To clarify, the good news might be a job offer. Neutral news might be that the company you applied to confirmed the receipt of your resume.
Deductive messages are pretty easy to draft. That is mostly because they come with no ill intent. The inheritor is generally receptive to the message and looks forward to receiving it.
Now that we understand the various ways we could use deductive messages, let’s take a look at exactly how to write one. Like any good piece of writing, it should start with an outline.
Deductive Outline
An outline will help you to keep important information in proper order. So, when you are about to draft your message of good tidings, start with the main idea or the central purpose of the message. This can be in the form of a statement or even a question.
For a job promotion, you might say:
‘Hello Bill,
Are you ready to move your career with Banner Enterprises to the next level?’
The question in and of itself is exciting and keeps the reader on the edge of their good inbox.
A statement may read more like this:
‘Dear Jenny,
We would like to announce that you have been selected for a promotion to the Credit and Collections Department.’
An example of a neutral message may be:
‘Dear Mrs. Philstein,
The Returns Department is in receipt of your cardigan sweater. Your replacement cardigan sweater will be shipped on Friday.’
Then, explain the main idea in clear terms and end it with goodwill.
Let’s put it all together using the example of Jenny’s promotion.