Factors Causing High Employee Turnover Rates

Factors Causing High Employee Turnover Rates Staff Retention Human Resources Management Chapter 1 Introduction Employee turnover in the industry has become the custom today in the manufacturing, service and merchandising industry. Employees are moving from one form of employment to another because of several factors that the employers have not yet grasped. In this regard many industry players are busy defining ways to protect turnover of its employees. The most affected part of this is the merchandising industry. In the bid to prove influence in the fastest upcoming sector executives in the merchandising industry are fighting hard the high trend of their staff consistently changing jobs (Rueben 22). Today generating an atmosphere favorable and valued by all employees in the ever changing employee market may not be as pain-streaking as it may appear to the larger population. It engages a number of issues may make the brilliant minds that make up your staffs want to stay in the organization. A combination of this contribution may eventually lead to higher number of employees and thus reduce tur nover. The contributions made above require that they be performed in tandem for observable achievement to be achieved. Grasping the skill of staff retention requires that management delve deeply into what causes turnover of staff in institutions. Many questions should be put on the table in order to ascertain reasons why one would want to work in one organization and not prefer to work in another organization. The managements should not rest at that but proceed to look into the subsequent period that the employee has been absorbed into an organization. By asking these questions it is easy to discern that there are a lot of issues that have been left wanting for a long time. I find it easy to look at these issues by sympathizing with the employee and trying to assume his shoes at the company. This in real meaning requires doing proper research on standard ethical models that might be brought on board to encourage retention of employees. In the recent past the employers used to retai n employees. The confidence thus gained goes down well with those in the precincts of work thus offering them purpose and presence. Boosting the moral of workers is one way of improving confidence of staff. In this regard even the general productivity of the company of the company can be noticed. Working closely and collectively in addition grants the staff presence. Al in all its just a matter of saying thank you as morality demands. There are different styles of leadership in institutions that influence how relationships in the work place take place. People in leadership roles should be in the fore front in show wing proper codes of conduct to their employees, as opposed to taking the hind seat. In turn the employees may feel very motivated within the working environments that they are working. This enabling environment will thus lead to a sense of belonging by the individuals and cohesiveness thus leading to teamwork translating into a proud team. For one to retain staff he or she has to consider several important issues of the work place. Background Draper Co. Ltd. Found in 1987 is a sweater manufacturer that employs more than 100 people in Hong Kong. Since garment companies had bloomed in recent years. The role for merchandising people become more difficult and the manpower is short in the labor market. Draper is facing the problem of high staff turnover rate. In addition, with opening of the mainland market, many foreign enterprises had set up their merchandising sections in Hong Kong and some enterprises also invite Hong Kong garment companies to cope with their expanding business. As a result, the job vacancies of staff increased tremendously. Among the merchandising industry, garment sections are highest in demand for staff. This is due to the fast growing of the sectors as well as the high employee turnover rate and the lack of talent in the labor market. With the goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. Research Problems Initially, the establishment of the project required the involvement of different parties who would provide data and statistical analysis. The study required involvement of external organizations which would require them to allow access their staff to cooperate during the course of the research. Unfortunately some of these merchants turned down request to take part a little after the project was already initialized, it was quite unfortunate. The team of researchers contacted several nationwide merchandise groups to request them to take part in the research as a subsequent measure. Within a short period of time, two particular staff articulated formal concern and primarily arranged to play a part in the project but with the approval of the Board of Governors of their respectful organizations. The team of researchers used up considerable hours meeting with a variety of the team of people representing the staff and giving important information related to the research and showing present ations that highlight the scope of the study. An agreement was made with these staff that the research panel would conduct industry job and staff retention survey within the merchandise organization, rather than concentrating on organizational loop holes as it would imply that there are indeed loop holes, in their respective organizations which might not be the truly case. However because of various unpredicted situations including the falling ill of one of the team members who acted as coordinator of the research team and these respectful staff, the staff in the end made the decision to withdraw its cooperation, leaving operation of the research between a rock a rock and a hard place. The research team then informed the Draper Co. Ltd of the current problems and suggesting a different research method design that would still be in line aims of the project and the objectives outlined before the research was initially flagged off. In this respect, a decision was made to advertise acro ss various merchandise outlets to secure individual people working as staff to act as respondents from different retail outlets, thus eliminating the process of approaching company heads or Board of Governors for endorsement to guarantee a speedy and effortless contact with respondents. The Draper Co. Ltd was highly involved in endorsing the submission for change in the approach for the research. The research carried out by the team concerned conducting 100 partially controlled telephone interviews with staff from different merchandising firms including own staff at Draper Co. Ltd . The research method design of the survey was cautiously designed and conversant with preceding works that dwelled on employee equality and diversity concerns all over the work environment (e.g. Sutherland and Davidson, 1997). The design of the interviews was such that it could be in accordance with the aims and corresponding objectives of the Draper Co. Ltd and eventually deal with a array of concerns as well as the recognition of possible occupational improvement barriers and the recognition of approaches for conquering these limitations, chances for education and training, job promotions and provision for leadership. The partially controlled interview timetable was then stored in secure modules and safe websites secured with passwords, which eventually made it easy for members of the research panel to enter information directly into the research database and online pages, and at the same time carrying out interviews with respondents all over the merchandising industry. The details of the research methodology and what will be contained in the schedule for the research is described in the subsequent sections. Research Objective This study was led by a research team commissioned by the Draper Co. Ltd. The research team was selected by the management of the company with advice by the legal advice wing experts. It was agreed that 16 members be brought aboard the team of researchers. The main goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. The aims of the project were as follows: To examine two sets of potential causes of job turnovers and eventual staff retention mechanisms: firstly, those that impede the retention of workers in the organization and secondly, those that speeds the exit of the players from the organizations. Identify strategies for overcoming these barriers. Investigate the feasibility of constructing a national database, documenting the career paths of women in the merchandise industry. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. The objectives of the project were to: Investigate two sets of potential reasons for staff leaving the company: firstly, those that accelerate the exit of workers and staff and secondly, those that impede the efforts of retaining staff in the organization. Identify strategies for overcoming these reasons. Investigate the feasibility of constructing a company database, documenting the career paths of workers in the merchandise industry. Develop a promotion system, which is more sensitive to the needs of employees Develop an image of the company, which is based entirely upon team cohesion. Provide a concept of role models, which can be utilized by young employees to resolve possible work life balance conflicts. Produce a set of solutions, which can be applied to other retail settings. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. Research Questions: Why this company has high staff turnover rate Why staff relationship will make new comer difficult to fit in team work What relationship caused high staff turnover rate How to retain staff in this company Does the management policy affect staff retention? Does the company is responsive to employees needs and wants Does companys reputation retain staff? Terminologies Merchandising Retention Welfare Turnover Respondent Outsourcing Glass ceiling Dissertation Outlines Chapter 2 Literature Review 2.1 Introduction This Section looks at the main literature in this area. The first sections focus on the structure of merchandising and the broader profile of the sector. The section then moves on to its main concern which is the job retention of staff at junior and senior levels in merchandising. Merchandising is an economic sector, which has traditionally been associated with the employment of staff. Overall, 60% of staff are low skilled employees and 40% are highly skilled in terms of there educational background. Even as these figures show that the merchandising sector clearly employs a larger number of low skilled than the skilled, it is not a ‘balanced industry (Stillsmart, 2004). The representation of low skill workers in the merchandising sector however, follows a number of important patterns. Official statistics are used to highlight the predominance of staff in part time work in the merchandising sector and the under representation of a section staff at senior levels. According to Sti llsmart, (2004), official figures are general and are unlikely to provide a clear understanding of the dynamics relating to the position in which staff is employed in merchandising sector. The following sections therefore outline theories that have been offered to account for these disparities, particularly in relation to barriers for staff attempting to progress into senior management positions. An examination of managing diversity is then offered and potential mechanisms for ensuring merchandising organizations fully utilize the talents of all employees to maximize productivity is discussed. 2.2 The structure of the merchandising sector The merchandising sector is the largest private sector employer in the Hong Kong yet it is rarely recognized as such. Stillsmart (a not for profit organization, set up and part funded by Government to identify and address the skills needs of the Hong Kong merchandising sector), suggest that this is, possibly because its workforce is not concentrated in any particular region or locality. In fact, the merchandising sector is the largest public sector employer in the Hong Kong. Furthermore, Wang XI Inc is the Hong Kongs second largest employer after the Jubilee (Stillsmart, 2004). Overall, the merchandising sector employs three million people throughout the Hong Kong, which accounts for approximately ten per cent of employment throughout the Hong Kong. However, the structure of the industry is unusual, and is described by Stillsmart, as ‘hourglass shaped. The vast majority (95%) work in firms with less than ten employees. Consequently, there is significantly less (just over two th ousand) merchandising employers with more than fifty staff, reflecting the â€Å"hourglass shape† of the industry profile. 2.3 Job Retention and improvement Strategies The welfare reform programs of the 1990s moved many families from cash assistance into the work force. The strong economy provided an abundance of entry-level, low-skill job opportunities to support this transition. For most of these families, however, finding a job is only the first step in the difficult path toward self-sufficiency. Like other working parents, adults who leave welfare (â€Å"leavers†) often encounter barriers to job retention and advancement. Between 1994 and 2002, the welfare caseload declined drastically, by more than 2.5 million cases (or 50 percent). Simultaneously, the number of single mothers either divorced or never married— in the work force increased by more than 1.2 million (or 22 percent). Government welfare programs have been instituted to help keep women employed and off welfare. Job retention and improvement strategies are becoming increasingly important to state policymakers as unemployment rates rise and slowed economic growth, corpora te lay-offs, and hiring freezes limit job opportunities for parents who are moving into the work force. Current and former welfare recipients and those who dont have a strong attachment to the work force may find it more difficult to gain employment in hard economic times, thus increasing the demand for job retention and improvement services for those who currently are employed. 2.4 Present profile of turnover of employees Employment expectations have risen slightly in (Q1) from an already high level in Q4. Of the 514 sales executives surveyed, 54% expect to increase their hiring which is slightly up from 53% the previous. As the years go by, expectations have remained solid. The 54% planning to grow headcount this year is at the same level as Q1 2004, though there are some variations between the sectors surveyed. Companies are extremely confident about how they will perform in the next six months with 95% of respondents forecasting their companys performance to be excellent or good in the first half of 2007. Respondents in Hong Kong report higher levels of staff turnover than in any other market surveyed in Asia with 37% stating that turnover in the last twelve months has exceeded 10% (Hudson, 2007). Hudson, one of the worlds leading professional recruitment, outsourcing and capacity management solution providers, today released findings of its broad quarterly Hudson Report for Asia. With a status as a key socio-economic indicator in the present market since its Asia launch in September 2000, the survey has been built on the premise that employers expectations of an increase or decrease in staffing levels represent a significant indication of their optimism in the growth of their organization and their industry as a whole. The Hudson Report represents the expectations of over 1450 key employment decision makers from multinational organizations of all sizes in all major industry sectors, with 400 of these executives based in Hong Kong. 2.4 The general profile of employees in the merchandising sector Traditionally the merchandising sector is associated with the employment of low level and unskilled workers, the vast majority of whom work in the lower ranks of the organizational hierarchy. The profile of employees in merchandising also follows a number of other patterns. The merchandising sector for example employs a large proportion of young people. According to recent estimates 29% of those employed in the sector are between the ages of 16 to 24. This is compared to the overall economy figure of 14%. It has been suggested that this figure may be due to the popularity of merchandising as a part-time occupation for young people and students (Stillsmart, 2004). Merchandising is also a popular choice for older workers (persons over 55). In terms of ethnic minority employment, the merchandising sector employs a similar fraction to those figures available nationally (Stillsmart, 2004). Recent research has shown however, that certain recruitment practices may prevent ethnic minorities from gaining employment in merchandising organizations. For example a study for Birmingham and Manchester cities in Britain for example, found that employers might specify jobs as a matter of course that require the staff to work on Saturdays without realizing that a large pool of potential workers would be unable to work on this day as it is their Sabbath (Vector research, 2003). 2.4 The trends common in the merchandising sector Merchandising is an economic sector, which has customarily been associated with the employment of diverse people of different background. Overall, 55% of merchandising employees are women and 45% are men (Stillsmart, 2004). This gender factor in the merchandising sector remains fairly consistent throughout other nations and regions of the Hong Kong and this profile has been fairly consistent over the last 10 years. Skill level has also played a bigger part in influencing how long an employee is wiling to stay in a given organization. Better salaries in other organizations may lead to employees moving from their respective place of work in pursuit for better opportunities (Hudson, 2004). Level of qualification gives workers a broader scale of work opportunities that they willingly take into considerations. Stillsmart (2004) suggest that Hong Kongs larger ethnic population is likely to be the source of this greater proportion of the workers in the capital run by ethnic minorities may p roprietorship driven by highly skilled male people. It is important to note however, that the representation of retention in the merchandising sector follows a number of important patterns discussed in the subsequent sections. Firstly the prevalence of staff turnover in the merchandising sector will be discussed. Secondly, evidence will be presented to show the under representation of employee needs at senior levels within the merchandising sector. 2.4.1 The prevalence of staff turnover in the merchandising sector Statistics from Stillsmart (2004) indicate that merchandising sector employment occupy three quarters of all employment in the Hong Kong economic sector, which accounts for 40% of all employment. This is a significant figure when, compared to the economy overall, where only 25% of people are employed permanently. The other majority of those working are part time workers employed in sales and customer service occupations. Figure 2.1 outlines the proportion of full and part time employment in the merchandising sector by gender. Source: Survey by National Employment Institute 2.4.1.1 Job retention in the labor force as a whole The prevalence of staff turnover when compared with other sectors of the economy is particularly evident in the merchandising sector. This trend is also reflected in employment across the Hong Kong, particularly in the service industries. The numbers of staff entering the labor market has dramatically increased over the past thirty years and this rise in numbers has mainly been in by young people with low skill (Burke and Nelson 2002; Davidson and Burke, 2002). Because of this influx of young energetic minds quickly induces training for the staff. After gaining much needed experience then leave the industry for more lucrative jobs in other sectors. Youthful persons in the Hong Kong are far more likely than middle and old aged persons to work as part-timers (EAC, 2004). According to the National Office of Statistics, in 2005, 42% of young employees in the Hong Kong worked in the sector compared to just 9% of old people. Interestingly, the number keeps on increasing in the industry whe reas companies are reporting a high staff turnover hence posing a big threat to company survival in the highly competitive industry (EAC, 2004). Source: Survey by National Employment Institute 2.4.3 Explanations for the prevalence of staff turnover among staff in the merchandising sector Traditionally, the predominance of staff turnover is largely attributed to the level of education and other academic qualifications (e.g. those with degrees go for more lucrative jobs in other lucrative industries vacating there positions) traditionally occupied by them which limits the productivity of the company (Thompson, 2004; Stillsmart, 2004). When addressing the merchandising sector specifically, Lynch (2003) comments that it is the very nature of the merchandising industry that contributes to the high proportion of turnovers. In the merchandising industry, recruitment is largely secured from the local labor market, staff requirements vary due to seasonal demands and employees are often required to work unfriendly hours as outlets open longer. These are all factors that lead to the reduction of morale and interest in the jobs within any organizational sector, and specifically the merchandising sector. In addition, Lynch (2003) further suggests that due to these delimiting fact ors in the industry and the continuous fluctuation of workforce in particular, potential merchandising companies are provided with an available pool of labor that accepts inferior terms and conditions of employment, as staff attempt to resolve their need to educate and retain their staff. 2.4.3.1 The under representation of staff interests in the merchandising sector by executives and senior officials Official statistics show that there is a higher proportion of college educated in managerial and senior occupations in the merchandising sector than in comparison to the economy a whole. It is important to note, however, that if the representation of staff; male and female, skilled and unskilled were equal throughout the sector. Furthermore, low skilled staff tends to predominate in certain types of management positions including personnel, which are roles traditionally associated with low skilled. 2.5 Recruitment and Retention of Paid Staff It can be surely asserted that, paid staff is a vital part of the retail and merchandising sector. Lynch (2003) further suggests that almost half (40%) of Canadas estimated 161,000 nonprofit and voluntary organizations has least one paid staff member. The sector as a whole employs just over 25% of the total economy. Twenty percent of paid staff in merchandising organizations is in permanent positions and 56% work full-time. The survey asked all organizations involved about the challenges they face recruiting the type of paid staff they need. Twenty-eight percent of organizations said that this is a problem for them; 8% said that the problem is serious. Organizations with paid staff were also asked if they have problems retaining staff. Nineteen percent said that they do, with 8% saying that the problem is serious. As a group, problems relating to paid staff were reported less frequently than other types of capacity challenges. Nevertheless, challenges relating to paid staff are signi ficant for some organizations. 2.5.1 Size of Paid Staff Complement In general, the more paid staff an organization has, the more likely it is to report problems with staff recruitment and retention. Forty-one percent of organizations with 13% of paid staff members reported problems recruiting paid staff. This rises to 30% among organizations with 20 to 50 staff members, 63% among those with 100 to 500 staff members, and 73% among those with 1000 or more staff members. The relationship between the number of staff an organization has and staff retention problems is less pronounced. Seventeen percent of organizations with one to four staff members said this is a problem for them. This increases to 26% among organizations with 100 or more staff members (Stillsmart, 2004). Source: Survey by National Employment Institute 2.5.2 Reliance on Paid Staff Lynch (2003) suggests the greater the percentage of an organizations workforce that is comprised of paid staff (As opposed to volunteers), the more dependent on paid staff the organization can be said to be. The more reliant an organization is on paid staff, the more likely it is to report difficulties employing and retaining staff. Lynch (2003) further suggests that this relationship is particularly strong for staff recruitment. For example, among organizations in which staff makes up one-third or less of the workforce, 15% said that staff recruitment is a problem for them and 19% said that staff retention is a problem. Nevertheless, among organizations in which staff comprises two thirds or more of the workforce, 54% said that staff recruitment is a problem and 20% said that staff retention is a problem (Stillsmart, 2004).. Source: Survey by National Employment Institute 2.6 The Glass ceiling theory The under representation of minority group in management positions in the merchandising and other occupational sectors has led theorists to assert that a ‘glass ceiling exists. The minority in this case includes: physically handicapped, less educated and women. The term ‘glass ceiling is used to reflect the ability of and minorities to view the world above them but the metaphorical ceiling prevents the minorities from accessing the better opportunities they can view. This glass ceiling effect occurs when minorities with equivalent credentials as the other employees, i.e. those who traditionally occupy positions of power within organizations, are prevented from accessing top jobs simply because they have particularly weaknesses (Davidson, 1997; Powell, 1999; Konrad, Prasad and Pringle, 2004). Nevertheless, the proportion of minorities in management has increased over the past three decades in almost all countries and legislation in some countries (e.g. Affirmative Action L egislation in the U.S. and Canada) has contributed to this trend (Powell and Graves, 2003). Despite this encouraging increase, recent research by Catalyst (2005) has shown that the glass ceiling is firmly in place. In the U.K., seventy-eight Financial Times Share Index (FTSE 100) companies in 2004 had physically challenged directors, up 13% from the previous year. However, only eleven FTSE 100 companies had female executive directors, which was below the 2002 figure and twenty-two of the FTSE 100 boards in 2005 were all-male (Singh and Vinicrombe, 2005). These statistics largely reflect the experiences of white staff. It is important to highlight that black and ethnic minority staffs across the globe often face significant hurdles. Although there is a general lack of data on ethnicity and employment or physical handicap and employment, ethnic minority employees are under- represented at senior and professional levels in the labor market (Commission for Racial Equality, 2004). In Hon g Kong in 2004 for example, 17% of ethnic minority men were managers or senior officials compared to 10% of ethnic minority staff. The highest percentages of staff and men in these positions were Indian and Chinese (Commission for Racial Equality, 2004). Research has highlighted that a glass ceiling exists even in occupations where staff predominate. Approximately 90% of nurses, for example, are female but male nurses often experience greater career success than female nurses (Nursing and Midwifery Council, 2005). The number of women studying merchandise in England now outnumbers men (Davidson and Burke, 2004) but partners of top merchandise firms continue to be predominantly men. An examination of data from the top 10 ten merchandise firms in the Hong Kong in 2005 revealed that on average, 15% of female partners in the top 10 merchandise firms are women (The Merchandise Society, 2005). Recent research has highlighted that whilst women and physically challenged are now achieving mor e senior roles, they are more likely than men to find themselves on a ‘glass cliff (Haslam, 2005). According to Haslam (2005), this is because staff are more likely to secure positions of leadership when organizations are not performing at their optimum level. This means that their appointments are made under more risky circumstances which make them more uncertain. This suggests that not only do staff experience hurdles to achieving senior roles; they are placed under greater scrutiny and face increased pressures when they do reach leadership positions. The disadvantaged experience of the glass ceiling is an important area of study and has implications for the future development of talent in organizations of all sectors including merchandising. Research has shown for example that frustrated by the glass ceiling, many workers quit and start their own businesses (Powell, 1999; Davidson and Fielden, 2003). This can have a detrimental affect within organizations as competent and e xperienced staffs remove themselves from the selection pool. 2.5.1 Pay Differences However, research shows that staff leaders and staff at all levels of the workforce are generally paid less than men with equivalent skills, training and experience, for performing the same roles. In 2005, the percentage difference between the average hourly earnings of staff working full-time in Great Britain for example was 17.1 % (Equal Opportunities Commission, 2004). In the US, staffs earn approximately 77 cents for every dollar earned by men (Retailers Bureau data, 2000, in Nelson and Michie, 2004). The Equal Opportunities Commission in the U.K. (2005) highlights three main reasons for this pay difference. Firstly, there is discrimination in pay systems. Staff are paid less than men for performing the same roles. Secondly, ‘occupational segregation exists. Many employees is concentrated in low paid jobs. Thirdly, staffs assume caring responsibilities for children and other relatives/dependents, which affects their progression at work due to the lack of flexible working. 2.6 Perspectives on barriers to staff in management Authors have identified an array of complex factors that contribute to the existence and pervasive nature of the ‘glass ceiling. Three main perspectives have been offered to explain the adversity facing staff aspiring to senior levels within organizations. These are commonly referred to as the ‘person centered or ‘gender-centered approach (Powell, 1999), the organizational structure perspective (Fagenson, 1993; Kanter, 1977) and the social systems perspective. It is widely acknowledged that the glass ceiling is a result of a culmination of these three main perspectives (Omar and Da Factors Causing High Employee Turnover Rates Factors Causing High Employee Turnover Rates Staff Retention Human Resources Management Chapter 1 Introduction Employee turnover in the industry has become the custom today in the manufacturing, service and merchandising industry. Employees are moving from one form of employment to another because of several factors that the employers have not yet grasped. In this regard many industry players are busy defining ways to protect turnover of its employees. The most affected part of this is the merchandising industry. In the bid to prove influence in the fastest upcoming sector executives in the merchandising industry are fighting hard the high trend of their staff consistently changing jobs (Rueben 22). Today generating an atmosphere favorable and valued by all employees in the ever changing employee market may not be as pain-streaking as it may appear to the larger population. It engages a number of issues may make the brilliant minds that make up your staffs want to stay in the organization. A combination of this contribution may eventually lead to higher number of employees and thus reduce tur nover. The contributions made above require that they be performed in tandem for observable achievement to be achieved. Grasping the skill of staff retention requires that management delve deeply into what causes turnover of staff in institutions. Many questions should be put on the table in order to ascertain reasons why one would want to work in one organization and not prefer to work in another organization. The managements should not rest at that but proceed to look into the subsequent period that the employee has been absorbed into an organization. By asking these questions it is easy to discern that there are a lot of issues that have been left wanting for a long time. I find it easy to look at these issues by sympathizing with the employee and trying to assume his shoes at the company. This in real meaning requires doing proper research on standard ethical models that might be brought on board to encourage retention of employees. In the recent past the employers used to retai n employees. The confidence thus gained goes down well with those in the precincts of work thus offering them purpose and presence. Boosting the moral of workers is one way of improving confidence of staff. In this regard even the general productivity of the company of the company can be noticed. Working closely and collectively in addition grants the staff presence. Al in all its just a matter of saying thank you as morality demands. There are different styles of leadership in institutions that influence how relationships in the work place take place. People in leadership roles should be in the fore front in show wing proper codes of conduct to their employees, as opposed to taking the hind seat. In turn the employees may feel very motivated within the working environments that they are working. This enabling environment will thus lead to a sense of belonging by the individuals and cohesiveness thus leading to teamwork translating into a proud team. For one to retain staff he or she has to consider several important issues of the work place. Background Draper Co. Ltd. Found in 1987 is a sweater manufacturer that employs more than 100 people in Hong Kong. Since garment companies had bloomed in recent years. The role for merchandising people become more difficult and the manpower is short in the labor market. Draper is facing the problem of high staff turnover rate. In addition, with opening of the mainland market, many foreign enterprises had set up their merchandising sections in Hong Kong and some enterprises also invite Hong Kong garment companies to cope with their expanding business. As a result, the job vacancies of staff increased tremendously. Among the merchandising industry, garment sections are highest in demand for staff. This is due to the fast growing of the sectors as well as the high employee turnover rate and the lack of talent in the labor market. With the goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. Research Problems Initially, the establishment of the project required the involvement of different parties who would provide data and statistical analysis. The study required involvement of external organizations which would require them to allow access their staff to cooperate during the course of the research. Unfortunately some of these merchants turned down request to take part a little after the project was already initialized, it was quite unfortunate. The team of researchers contacted several nationwide merchandise groups to request them to take part in the research as a subsequent measure. Within a short period of time, two particular staff articulated formal concern and primarily arranged to play a part in the project but with the approval of the Board of Governors of their respectful organizations. The team of researchers used up considerable hours meeting with a variety of the team of people representing the staff and giving important information related to the research and showing present ations that highlight the scope of the study. An agreement was made with these staff that the research panel would conduct industry job and staff retention survey within the merchandise organization, rather than concentrating on organizational loop holes as it would imply that there are indeed loop holes, in their respective organizations which might not be the truly case. However because of various unpredicted situations including the falling ill of one of the team members who acted as coordinator of the research team and these respectful staff, the staff in the end made the decision to withdraw its cooperation, leaving operation of the research between a rock a rock and a hard place. The research team then informed the Draper Co. Ltd of the current problems and suggesting a different research method design that would still be in line aims of the project and the objectives outlined before the research was initially flagged off. In this respect, a decision was made to advertise acro ss various merchandise outlets to secure individual people working as staff to act as respondents from different retail outlets, thus eliminating the process of approaching company heads or Board of Governors for endorsement to guarantee a speedy and effortless contact with respondents. The Draper Co. Ltd was highly involved in endorsing the submission for change in the approach for the research. The research carried out by the team concerned conducting 100 partially controlled telephone interviews with staff from different merchandising firms including own staff at Draper Co. Ltd . The research method design of the survey was cautiously designed and conversant with preceding works that dwelled on employee equality and diversity concerns all over the work environment (e.g. Sutherland and Davidson, 1997). The design of the interviews was such that it could be in accordance with the aims and corresponding objectives of the Draper Co. Ltd and eventually deal with a array of concerns as well as the recognition of possible occupational improvement barriers and the recognition of approaches for conquering these limitations, chances for education and training, job promotions and provision for leadership. The partially controlled interview timetable was then stored in secure modules and safe websites secured with passwords, which eventually made it easy for members of the research panel to enter information directly into the research database and online pages, and at the same time carrying out interviews with respondents all over the merchandising industry. The details of the research methodology and what will be contained in the schedule for the research is described in the subsequent sections. Research Objective This study was led by a research team commissioned by the Draper Co. Ltd. The research team was selected by the management of the company with advice by the legal advice wing experts. It was agreed that 16 members be brought aboard the team of researchers. The main goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. The aims of the project were as follows: To examine two sets of potential causes of job turnovers and eventual staff retention mechanisms: firstly, those that impede the retention of workers in the organization and secondly, those that speeds the exit of the players from the organizations. Identify strategies for overcoming these barriers. Investigate the feasibility of constructing a national database, documenting the career paths of women in the merchandise industry. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. The objectives of the project were to: Investigate two sets of potential reasons for staff leaving the company: firstly, those that accelerate the exit of workers and staff and secondly, those that impede the efforts of retaining staff in the organization. Identify strategies for overcoming these reasons. Investigate the feasibility of constructing a company database, documenting the career paths of workers in the merchandise industry. Develop a promotion system, which is more sensitive to the needs of employees Develop an image of the company, which is based entirely upon team cohesion. Provide a concept of role models, which can be utilized by young employees to resolve possible work life balance conflicts. Produce a set of solutions, which can be applied to other retail settings. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. Research Questions: Why this company has high staff turnover rate Why staff relationship will make new comer difficult to fit in team work What relationship caused high staff turnover rate How to retain staff in this company Does the management policy affect staff retention? Does the company is responsive to employees needs and wants Does companys reputation retain staff? Terminologies Merchandising Retention Welfare Turnover Respondent Outsourcing Glass ceiling Dissertation Outlines Chapter 2 Literature Review 2.1 Introduction This Section looks at the main literature in this area. The first sections focus on the structure of merchandising and the broader profile of the sector. The section then moves on to its main concern which is the job retention of staff at junior and senior levels in merchandising. Merchandising is an economic sector, which has traditionally been associated with the employment of staff. Overall, 60% of staff are low skilled employees and 40% are highly skilled in terms of there educational background. Even as these figures show that the merchandising sector clearly employs a larger number of low skilled than the skilled, it is not a ‘balanced industry (Stillsmart, 2004). The representation of low skill workers in the merchandising sector however, follows a number of important patterns. Official statistics are used to highlight the predominance of staff in part time work in the merchandising sector and the under representation of a section staff at senior levels. According to Sti llsmart, (2004), official figures are general and are unlikely to provide a clear understanding of the dynamics relating to the position in which staff is employed in merchandising sector. The following sections therefore outline theories that have been offered to account for these disparities, particularly in relation to barriers for staff attempting to progress into senior management positions. An examination of managing diversity is then offered and potential mechanisms for ensuring merchandising organizations fully utilize the talents of all employees to maximize productivity is discussed. 2.2 The structure of the merchandising sector The merchandising sector is the largest private sector employer in the Hong Kong yet it is rarely recognized as such. Stillsmart (a not for profit organization, set up and part funded by Government to identify and address the skills needs of the Hong Kong merchandising sector), suggest that this is, possibly because its workforce is not concentrated in any particular region or locality. In fact, the merchandising sector is the largest public sector employer in the Hong Kong. Furthermore, Wang XI Inc is the Hong Kongs second largest employer after the Jubilee (Stillsmart, 2004). Overall, the merchandising sector employs three million people throughout the Hong Kong, which accounts for approximately ten per cent of employment throughout the Hong Kong. However, the structure of the industry is unusual, and is described by Stillsmart, as ‘hourglass shaped. The vast majority (95%) work in firms with less than ten employees. Consequently, there is significantly less (just over two th ousand) merchandising employers with more than fifty staff, reflecting the â€Å"hourglass shape† of the industry profile. 2.3 Job Retention and improvement Strategies The welfare reform programs of the 1990s moved many families from cash assistance into the work force. The strong economy provided an abundance of entry-level, low-skill job opportunities to support this transition. For most of these families, however, finding a job is only the first step in the difficult path toward self-sufficiency. Like other working parents, adults who leave welfare (â€Å"leavers†) often encounter barriers to job retention and advancement. Between 1994 and 2002, the welfare caseload declined drastically, by more than 2.5 million cases (or 50 percent). Simultaneously, the number of single mothers either divorced or never married— in the work force increased by more than 1.2 million (or 22 percent). Government welfare programs have been instituted to help keep women employed and off welfare. Job retention and improvement strategies are becoming increasingly important to state policymakers as unemployment rates rise and slowed economic growth, corpora te lay-offs, and hiring freezes limit job opportunities for parents who are moving into the work force. Current and former welfare recipients and those who dont have a strong attachment to the work force may find it more difficult to gain employment in hard economic times, thus increasing the demand for job retention and improvement services for those who currently are employed. 2.4 Present profile of turnover of employees Employment expectations have risen slightly in (Q1) from an already high level in Q4. Of the 514 sales executives surveyed, 54% expect to increase their hiring which is slightly up from 53% the previous. As the years go by, expectations have remained solid. The 54% planning to grow headcount this year is at the same level as Q1 2004, though there are some variations between the sectors surveyed. Companies are extremely confident about how they will perform in the next six months with 95% of respondents forecasting their companys performance to be excellent or good in the first half of 2007. Respondents in Hong Kong report higher levels of staff turnover than in any other market surveyed in Asia with 37% stating that turnover in the last twelve months has exceeded 10% (Hudson, 2007). Hudson, one of the worlds leading professional recruitment, outsourcing and capacity management solution providers, today released findings of its broad quarterly Hudson Report for Asia. With a status as a key socio-economic indicator in the present market since its Asia launch in September 2000, the survey has been built on the premise that employers expectations of an increase or decrease in staffing levels represent a significant indication of their optimism in the growth of their organization and their industry as a whole. The Hudson Report represents the expectations of over 1450 key employment decision makers from multinational organizations of all sizes in all major industry sectors, with 400 of these executives based in Hong Kong. 2.4 The general profile of employees in the merchandising sector Traditionally the merchandising sector is associated with the employment of low level and unskilled workers, the vast majority of whom work in the lower ranks of the organizational hierarchy. The profile of employees in merchandising also follows a number of other patterns. The merchandising sector for example employs a large proportion of young people. According to recent estimates 29% of those employed in the sector are between the ages of 16 to 24. This is compared to the overall economy figure of 14%. It has been suggested that this figure may be due to the popularity of merchandising as a part-time occupation for young people and students (Stillsmart, 2004). Merchandising is also a popular choice for older workers (persons over 55). In terms of ethnic minority employment, the merchandising sector employs a similar fraction to those figures available nationally (Stillsmart, 2004). Recent research has shown however, that certain recruitment practices may prevent ethnic minorities from gaining employment in merchandising organizations. For example a study for Birmingham and Manchester cities in Britain for example, found that employers might specify jobs as a matter of course that require the staff to work on Saturdays without realizing that a large pool of potential workers would be unable to work on this day as it is their Sabbath (Vector research, 2003). 2.4 The trends common in the merchandising sector Merchandising is an economic sector, which has customarily been associated with the employment of diverse people of different background. Overall, 55% of merchandising employees are women and 45% are men (Stillsmart, 2004). This gender factor in the merchandising sector remains fairly consistent throughout other nations and regions of the Hong Kong and this profile has been fairly consistent over the last 10 years. Skill level has also played a bigger part in influencing how long an employee is wiling to stay in a given organization. Better salaries in other organizations may lead to employees moving from their respective place of work in pursuit for better opportunities (Hudson, 2004). Level of qualification gives workers a broader scale of work opportunities that they willingly take into considerations. Stillsmart (2004) suggest that Hong Kongs larger ethnic population is likely to be the source of this greater proportion of the workers in the capital run by ethnic minorities may p roprietorship driven by highly skilled male people. It is important to note however, that the representation of retention in the merchandising sector follows a number of important patterns discussed in the subsequent sections. Firstly the prevalence of staff turnover in the merchandising sector will be discussed. Secondly, evidence will be presented to show the under representation of employee needs at senior levels within the merchandising sector. 2.4.1 The prevalence of staff turnover in the merchandising sector Statistics from Stillsmart (2004) indicate that merchandising sector employment occupy three quarters of all employment in the Hong Kong economic sector, which accounts for 40% of all employment. This is a significant figure when, compared to the economy overall, where only 25% of people are employed permanently. The other majority of those working are part time workers employed in sales and customer service occupations. Figure 2.1 outlines the proportion of full and part time employment in the merchandising sector by gender. Source: Survey by National Employment Institute 2.4.1.1 Job retention in the labor force as a whole The prevalence of staff turnover when compared with other sectors of the economy is particularly evident in the merchandising sector. This trend is also reflected in employment across the Hong Kong, particularly in the service industries. The numbers of staff entering the labor market has dramatically increased over the past thirty years and this rise in numbers has mainly been in by young people with low skill (Burke and Nelson 2002; Davidson and Burke, 2002). Because of this influx of young energetic minds quickly induces training for the staff. After gaining much needed experience then leave the industry for more lucrative jobs in other sectors. Youthful persons in the Hong Kong are far more likely than middle and old aged persons to work as part-timers (EAC, 2004). According to the National Office of Statistics, in 2005, 42% of young employees in the Hong Kong worked in the sector compared to just 9% of old people. Interestingly, the number keeps on increasing in the industry whe reas companies are reporting a high staff turnover hence posing a big threat to company survival in the highly competitive industry (EAC, 2004). Source: Survey by National Employment Institute 2.4.3 Explanations for the prevalence of staff turnover among staff in the merchandising sector Traditionally, the predominance of staff turnover is largely attributed to the level of education and other academic qualifications (e.g. those with degrees go for more lucrative jobs in other lucrative industries vacating there positions) traditionally occupied by them which limits the productivity of the company (Thompson, 2004; Stillsmart, 2004). When addressing the merchandising sector specifically, Lynch (2003) comments that it is the very nature of the merchandising industry that contributes to the high proportion of turnovers. In the merchandising industry, recruitment is largely secured from the local labor market, staff requirements vary due to seasonal demands and employees are often required to work unfriendly hours as outlets open longer. These are all factors that lead to the reduction of morale and interest in the jobs within any organizational sector, and specifically the merchandising sector. In addition, Lynch (2003) further suggests that due to these delimiting fact ors in the industry and the continuous fluctuation of workforce in particular, potential merchandising companies are provided with an available pool of labor that accepts inferior terms and conditions of employment, as staff attempt to resolve their need to educate and retain their staff. 2.4.3.1 The under representation of staff interests in the merchandising sector by executives and senior officials Official statistics show that there is a higher proportion of college educated in managerial and senior occupations in the merchandising sector than in comparison to the economy a whole. It is important to note, however, that if the representation of staff; male and female, skilled and unskilled were equal throughout the sector. Furthermore, low skilled staff tends to predominate in certain types of management positions including personnel, which are roles traditionally associated with low skilled. 2.5 Recruitment and Retention of Paid Staff It can be surely asserted that, paid staff is a vital part of the retail and merchandising sector. Lynch (2003) further suggests that almost half (40%) of Canadas estimated 161,000 nonprofit and voluntary organizations has least one paid staff member. The sector as a whole employs just over 25% of the total economy. Twenty percent of paid staff in merchandising organizations is in permanent positions and 56% work full-time. The survey asked all organizations involved about the challenges they face recruiting the type of paid staff they need. Twenty-eight percent of organizations said that this is a problem for them; 8% said that the problem is serious. Organizations with paid staff were also asked if they have problems retaining staff. Nineteen percent said that they do, with 8% saying that the problem is serious. As a group, problems relating to paid staff were reported less frequently than other types of capacity challenges. Nevertheless, challenges relating to paid staff are signi ficant for some organizations. 2.5.1 Size of Paid Staff Complement In general, the more paid staff an organization has, the more likely it is to report problems with staff recruitment and retention. Forty-one percent of organizations with 13% of paid staff members reported problems recruiting paid staff. This rises to 30% among organizations with 20 to 50 staff members, 63% among those with 100 to 500 staff members, and 73% among those with 1000 or more staff members. The relationship between the number of staff an organization has and staff retention problems is less pronounced. Seventeen percent of organizations with one to four staff members said this is a problem for them. This increases to 26% among organizations with 100 or more staff members (Stillsmart, 2004). Source: Survey by National Employment Institute 2.5.2 Reliance on Paid Staff Lynch (2003) suggests the greater the percentage of an organizations workforce that is comprised of paid staff (As opposed to volunteers), the more dependent on paid staff the organization can be said to be. The more reliant an organization is on paid staff, the more likely it is to report difficulties employing and retaining staff. Lynch (2003) further suggests that this relationship is particularly strong for staff recruitment. For example, among organizations in which staff makes up one-third or less of the workforce, 15% said that staff recruitment is a problem for them and 19% said that staff retention is a problem. Nevertheless, among organizations in which staff comprises two thirds or more of the workforce, 54% said that staff recruitment is a problem and 20% said that staff retention is a problem (Stillsmart, 2004).. Source: Survey by National Employment Institute 2.6 The Glass ceiling theory The under representation of minority group in management positions in the merchandising and other occupational sectors has led theorists to assert that a ‘glass ceiling exists. The minority in this case includes: physically handicapped, less educated and women. The term ‘glass ceiling is used to reflect the ability of and minorities to view the world above them but the metaphorical ceiling prevents the minorities from accessing the better opportunities they can view. This glass ceiling effect occurs when minorities with equivalent credentials as the other employees, i.e. those who traditionally occupy positions of power within organizations, are prevented from accessing top jobs simply because they have particularly weaknesses (Davidson, 1997; Powell, 1999; Konrad, Prasad and Pringle, 2004). Nevertheless, the proportion of minorities in management has increased over the past three decades in almost all countries and legislation in some countries (e.g. Affirmative Action L egislation in the U.S. and Canada) has contributed to this trend (Powell and Graves, 2003). Despite this encouraging increase, recent research by Catalyst (2005) has shown that the glass ceiling is firmly in place. In the U.K., seventy-eight Financial Times Share Index (FTSE 100) companies in 2004 had physically challenged directors, up 13% from the previous year. However, only eleven FTSE 100 companies had female executive directors, which was below the 2002 figure and twenty-two of the FTSE 100 boards in 2005 were all-male (Singh and Vinicrombe, 2005). These statistics largely reflect the experiences of white staff. It is important to highlight that black and ethnic minority staffs across the globe often face significant hurdles. Although there is a general lack of data on ethnicity and employment or physical handicap and employment, ethnic minority employees are under- represented at senior and professional levels in the labor market (Commission for Racial Equality, 2004). In Hon g Kong in 2004 for example, 17% of ethnic minority men were managers or senior officials compared to 10% of ethnic minority staff. The highest percentages of staff and men in these positions were Indian and Chinese (Commission for Racial Equality, 2004). Research has highlighted that a glass ceiling exists even in occupations where staff predominate. Approximately 90% of nurses, for example, are female but male nurses often experience greater career success than female nurses (Nursing and Midwifery Council, 2005). The number of women studying merchandise in England now outnumbers men (Davidson and Burke, 2004) but partners of top merchandise firms continue to be predominantly men. An examination of data from the top 10 ten merchandise firms in the Hong Kong in 2005 revealed that on average, 15% of female partners in the top 10 merchandise firms are women (The Merchandise Society, 2005). Recent research has highlighted that whilst women and physically challenged are now achieving mor e senior roles, they are more likely than men to find themselves on a ‘glass cliff (Haslam, 2005). According to Haslam (2005), this is because staff are more likely to secure positions of leadership when organizations are not performing at their optimum level. This means that their appointments are made under more risky circumstances which make them more uncertain. This suggests that not only do staff experience hurdles to achieving senior roles; they are placed under greater scrutiny and face increased pressures when they do reach leadership positions. The disadvantaged experience of the glass ceiling is an important area of study and has implications for the future development of talent in organizations of all sectors including merchandising. Research has shown for example that frustrated by the glass ceiling, many workers quit and start their own businesses (Powell, 1999; Davidson and Fielden, 2003). This can have a detrimental affect within organizations as competent and e xperienced staffs remove themselves from the selection pool. 2.5.1 Pay Differences However, research shows that staff leaders and staff at all levels of the workforce are generally paid less than men with equivalent skills, training and experience, for performing the same roles. In 2005, the percentage difference between the average hourly earnings of staff working full-time in Great Britain for example was 17.1 % (Equal Opportunities Commission, 2004). In the US, staffs earn approximately 77 cents for every dollar earned by men (Retailers Bureau data, 2000, in Nelson and Michie, 2004). The Equal Opportunities Commission in the U.K. (2005) highlights three main reasons for this pay difference. Firstly, there is discrimination in pay systems. Staff are paid less than men for performing the same roles. Secondly, ‘occupational segregation exists. Many employees is concentrated in low paid jobs. Thirdly, staffs assume caring responsibilities for children and other relatives/dependents, which affects their progression at work due to the lack of flexible working. 2.6 Perspectives on barriers to staff in management Authors have identified an array of complex factors that contribute to the existence and pervasive nature of the ‘glass ceiling. Three main perspectives have been offered to explain the adversity facing staff aspiring to senior levels within organizations. These are commonly referred to as the ‘person centered or ‘gender-centered approach (Powell, 1999), the organizational structure perspective (Fagenson, 1993; Kanter, 1977) and the social systems perspective. It is widely acknowledged that the glass ceiling is a result of a culmination of these three main perspectives (Omar and Da

Nen perfoming loan in banks

Banks exist to provide financial Intermediation services while at the same time endeavor to maximize profit & share holders value. Availing credit to borrowers is one means by which banks maximize their profit. Loans are the dominant asset & represent 50-75 percent of total amount of most banks, generate the largest share of operating Income & represent the banks greater risk exposure (Mac Donald & Koch, 2006). Managing loan in a proper way is not only has a positive effect on the banks performance but on borrowers firms and the country as a whole.Failure to manage moans, which make up the largest share of banks assets, would likely lead to the episode of high level of NP. According to MIFF (MIFF, 2009), a non performing loan is any loan which interest and principal payments are more than 90 days over due ; or more than 90 days worth of interest has been refinanced. Under the Ethiopians banking business directives (N.B., 2008), non performing loans are defined as â€Å"Loans and Adv ances whose credit quality has deteriorated such that full collection of principal and/or interest in accordance with the contractual repayment of term loans or advances in question†.Theoretically, there are so many reasons why loans fail to perform. Some of this includes, depressed economic conditions, high real Interest rate, Inflation, lenient terms of credit, high credit growth & risk appetite and poor credit monitoring are among the others. Forestall (2002) categorize non performing loans to bank specific and macro economic conditions. Accordingly, this study is focused on assessing factors that contributed for nonperforming loans of Awash International Bank mainly targeting on bank specific determinants of non performing loans. 1. 2 Statement of the problemAn efficient and well functioning of financial sector is essential for the development of any economy. Loan qualities are one of the indicators of financial sectors soundness. A sound financial system among other thing s requires maintenance of low non performing loans. In Ethiopians context. The banks In the country are required to maintain ratio of their non performing loans below five percent (N.B., 2008). The data obtained from the 2011/12 & 2012/13 annual progress report of BIB shows that the ratio of non performing loan of the bank was below the threshold for both years.Despite the fact, the non performing loan of the bank was Increased from Birr 98 million in 201 1/12 to Birr 1 77 million in 2012/13, showing an increments of Birr 108. 9 million (104%). Similarly, the bank's non performing loan ratio was increased from 1. 9% to 2. 8% during the same period. Even, this ratio was above ten percent in some branches of BIB. This fact raises the issue of what causes this non performing loan Increment. Accordingly, two research questions were drawn to investigate this Issue. What does the tends of loans and NP looks like in BIB? Defaulted? What are the main causes for these defaulted loans? 3 Obje ctives of the Study The general objective of the study is to review the non performing loan of BIB and to identify its causes. Side by side, the study was assessed the following issues. Reviewed Loans & NP trends of BIB? 0 Indemnify which loan category, loan purpose & economic sectors more defaulted. Searched the main causes of NP in BIB in general & identify those branches that were highly contributed for this NP. Assessed the credit assessment & follow up practice of other commercial banks. 0 Recommended some remedial actions to be taken to reduce these non performing loans. 1. 4. MethodologyResearch Design: A sample survey was carried out to seek the characteristics of defaulted loan files and to identify likely causes for their loan default. Survey Population: 25- Branches were recorded NP as of June 30, 2013, comprising about 74 defaulted loan files. Sampling Design: Using random sampling method, seventeen branches and 43 defaulted loan files were taken for this study purpose. Table 1. 1: NP Recorded Branches Profile Branches Total NP recorded branches Sampled NP Branches % GE Responded branches Total NP files Sampled NP files % city 119 829 31 21 68 outlying 148 578 432251 Total 25 176017744358Data Sources: To achieve the stated objective, both primary and secondary data were utilized. The primary data was collected by interviewing Selected Alba's Credit Directorate staffs, Compliance & Risk Management Department staffs that are on supervisory position. Questionnaires were also distributed to selected branches incurred loan default. Secondary data was utilized from various documents of BIB, mainly from Annual progress report of BIB, credit policies & procedures of the bank, NP action plan report and other related documents.Various published and unpublished literatures were also utilized from different sources grading the subject. Data Analysis & Presentation: After collection, the data was organized, analyzed & interpreted using both quantitative & quali tative descriptive analysis methods mainly tables, percentages, charts & etc. 1. 5 Scope & Limitations of the study Scope of the study The study was reviewed factors that contributed for non performing loan of BIB and it was focus on bank specific determinants of non performing loan.The spectrum of the study, therefore, includes: Examinations of loans & NP of BIB by loan category & individual economic sectors. – An in depth analysis of the loan file characteristics of the defaulted rowers with special reference to their likely causes for their loan default. – An in depth analysis Credit analysis & follow up practice of BIB with special reference to identification of their limitations that contributed for the banks non performing loans. – Suggestions of relevant non performing loan reduction strategies based on The respondents were busy and usually uncooperative.Particularly, some branch managers were unwilling to fill the questionnaire by themselves and order ot her officers to fill the questionnaire. As a result, the researcher had called phone many times to branches before getting a fulfilled questionnaire. In addition it was difficult to obtain some of the required data's from credit directorates since some of the data's were not compiled properly and regularly. Similarly, it was difficult to get the defaulted borrowers' to conduct interview with them to know their likely causes of loan default.Accordingly, the researcher was forced to see the likely causes of their loan default from the analysis of their loan files and interview conducted with staff members. Despite this limitation, the result of the research provided a meaningful basis for filling the gap and made recommendations that can be used by the management to improve performance of loan portfolio in BIB. 2. Literature Review 2. 1 Theoretical Review of Non- Performing Loans Loans and advances are the most profitable of all the assets of a bank. These assets constitute the primar y source of income by banks.As a business institution, a bank aims at making a huge profit. Since loans and advances are more profitable than any other assets, it is willing to lend as much of its funds as possible. But banks have to be careful about the safety of such advances. In the words of Dry. Leaf, the banker â€Å"has to tamper liberty with caution. If he is too liberal, he may easily impair his profits by bad debts, and if he is too timed, he may fail to obtain an adequate return on the funds which are confided to him for use. It is by his capacity in lending that a bank manager is Judged. A bank needs to be careful in giving loans as there is a greater risk which follows it in a situation where the loan defaults. Loan loss or defaulted loans puts a bank in a difficult situation especially when they are in greatest amount. Banks gives loans with uncertainty whether they are returned or not though they may hold some security. In assessing any proposal for n advance or a loa n, the banker has to satisfy himself/herself regarding the period for which the advance is required and the prospects of its repayment at the end of the period.He/she should not be carried away by the soundness of the security offered to him/her or the rate of interest. Profitability should be given only a sound consideration. He/she should also satisfy himself [herself about the purpose for which the advance is required. He/she is expected to discriminate against and discourage speculative advances. As a matter of fact most bank failures may be traced to faulty policies in respect of loans and advances. From the point of safety and liquidity, loan and advances are poor assets. The risk mostly ensues when loans become non- performing.Allocating loans has always been one of the central pillars of the banking business. Traditionally this marked the start of a long term relationship with the client, which would continue at least until the maturity of the loan. With the growth of deposi ts, banks are supposed to increase the lending. However, when Non-performing Loans (Naps) are high, the willingness to expand loan reduces. This relationship will be distorted under high NP condition. In any lending recess, there is inherent risk of loans being defaulted which leads to the concept of non- performing loans.The concept of non-performing loans has been defined in performing loans are defined as defaulted loans which banks are unable to profit from. They are loans which cannot be recovered within stipulated time that is governed by the laws of a country. The criterion for identifying non performing loans also varies in Africa. Some countries use quantitative criteria to distinguish between â€Å"good† and â€Å"bad† loans (e. G. , number of days of overdue schedule payments), while others rely on qualitative arms (such as the availability of information about the client's financial status, and perspectives about future payments).However, the Basel II Commi ssion emphasizes the need to evolve toward a standardized and internal rating-based approach. Accordingly, the Basel committee puts non performing loans as loans left unpaid for a period of 90 days. Under the Ethiopians banking business directive, non-performing loans are defined as â€Å"loans or advances whose credit quality has deteriorated such that full collection of principal and/or interest in accordance with the contractual payment terms of the loan or advances in question† It further provides that: . moans or advances with pre established repayment programs are nonperforming when principal and/ or interest is due and uncollected for 90 (ninety) consecutive days or more beyond the scheduled payment date or maturity. In addition to the above mentioned category of non- performing loans, the following are also considered as non- performing.Overdrafts and loans or advances that do not have re-established repayment program shall be non-performing when: – The debt re mains outstanding for 90 (ninety) consecutive days or more beyond the scheduled payment date or maturity; – The debt exceeds the borrower's approved limit for 90 (ninety) consecutive days or more; – Interest is due and uncollected for 90 (ninety) consecutive days and more; or – For the overdrafts, (I) the account has been inactive for 90 (ninety) consecutive days or deposits are insufficient to cover the interest capitalized during 90 (ninety) consecutive days or (it) the account fails to show the following debit balance at least once over 360 days preceding the date of loan review: 1 . 20% of approved limit or less 2. 5 % or less This is in accordance with the Basel rules. If a loan is past due 90 consecutive days, it will be regarded as non- performing.The criteria used in Ethiopians banking business to identify non- performing loan is a quantitative criteria based on the number of days passed from loan being due. 2. 2 Classification of Loans & Advances The Na tional bank of Ethiopia supervision of banking directives classifies loans and advances as follows. Pass loan: loans and advances in this category are fully protected by the current financial and paying capacity of borrower and are not subject to criticism. In general loans and advances, which are fully secured both as to ironical & interest by cash or cash substitutes are classified under this category regardless of past due status or other adverse credit factor. Special Mention: Any loan or advance past due 30 days or more, but less than 90 days is classified under this category.Substandard: Non performing loans or advances past due 90 days or more but less than 180 days is classified under this category. Doubtful: Non classified as doubtful. Loss: Non performing loans or advances past due 360 is classified as loss. As per the directive the provision for impairment losses is determined as follows Loan Category Pass loan Mention Extent of provision required 1% of outstanding loan b alances Special 3% of outstanding loan balances Substandard 20% of the net loan balance Doubtful balance Loss Non-performing Loans 65% of the net loan 100% of net loan balance 2. 3 Causes of Default culture is not a new dimension in the arena of investment. Rather in the present economic structure, it is an established culture.The redundancy of unusual happening becomes so frequent that it seems people prefer to be declared as defaulters. Basically, the non- performing loans are a result of the compromise of the objectivity of credit appraisal and assessment. The problem is aggravated by the weakness in the accounting, disclosure and grant of additional loans. In the assessment of the status of current loans, the borrower's credit worthiness and the market value of collateral are not taken into account thereby rendering it difficult to spot bad loans. The causes for loan default vary in different countries. It extends from borrower's specific act to banks weak regulatory mechanism i n advancing loans and monitoring procedures.Generally, in developing and underdeveloped countries, the reasons for default have a multi dimensional aspect. Various researchers have concluded various reasons for loan default. A. Reduced Attention to Borrowers Few of the loan defaults that make trouble for banks can be blamed on reduced attention to borrowers. Borrowers give better attention to the loans that they borrowed when they have the perception that better attention is given to them. Lending officers of institutions should try to keep up with their loans, visiting the borrower's premises at least once a year or up to a half a dozen times a year on larger loans. Banks rarely lose money solely because the initial decision to lend was wrong.Even where there are greater risks that the banks recognize, they only cause a loss after giving a warning sign. More banks lose money because they do not monitor their borrower's property, and fail to recognize warning signs early enough. Whe n banks fail to give due attention to the borrowers and what they are doing with the money, then they will fail to see the risk of loss. The objective of supervising a loan is to verify, first, whether the basis on which the lending decision was taken continues to hold good. And second whether the loan funds are being properly utilized for the purpose they were granted. . Macroeconomic Instability Macroeconomic stability and banking soundness are inexorably linked.Both economic theory and empirical evidence strongly indicate that instability in the macro economy is associated with instability in banking and financial markets and instability in these sectors is associated with instability in the macro economy. Most problems of poor loan quality faced by banks were compounded by macroeconomic rate also makes loan appraisal more difficult for the bank, because the viability of potential borrowers depends upon unpredictable development in the overall rate of inflation, its individual co mponents, exchange rates and interest rates. Moreover, asset prices are also likely to be highly volatile under such conditions. Hence, the future real value of loan security is also very uncertain.Banks do poorly both when product and asset price inflation accelerate unexpectedly and when inflation decelerates unexpectedly, unemployment increases, and/or aggregate output and income decline unexpectedly. Unexpected accelerations in inflation adversely affect banks that, on average, lend longer term at fixed-rates than they borrow because nominal interest rates will rise more than expected. This will increase their cost of deposits more than their revenues from loans. Decelerations in inflation and, in particular, bursting of asset prices harm banks because the value of their asset collateral is likely to decline below the value of the associated loans and fuel defaults and losses.Indeed, probably the greatest threat to banking stability in almost all countries is increasing asset pr ice. C. Unsound Assessment Mechanism and Weak Risk Consciousness Risk, and the ways, in which it can be identified, quantified and minimized, is key concerns for a banks management and its auditors when they are engendering the need to provide for bad and doubtful loans. No loan is entirely without risk. Every loan, no matter how well it is secured, and no matter who is the borrower, has the potential to generate loss for the lender. It is the degree of risk to which a loan is susceptible and the probability of loss that vary; these should normally be reflected in the interest margin and other terms set at the inception of the loan.A bank, in considering whether to lend or not, takes into account the quality of a borrower which is reflected in, inter alai, its past and projected profit reference, the strength of its balance sheet (for example, capital and liquidity) the nature of and market for its product, economic and political conditions in the country in which it is based, the q uality and stability of its management and its general reputation and standing. It is important for the bank to know the purpose of the loan, to assess its validity and to determine how the funds required for the payment of interest and the repayment of capital will be regenerated. D. Lack of Strict Admittance policies and no active exit Under the influence of idea of pursuing market share excessively, banks do not establish detailed and strict market admittance policies, which undermine the first risk to prevent gate and weaken the orientation effect of admittance policies to market.During pre-loan investigation, some relationship managers put little emphasis on authenticity and integrally review on related materials. They haven't clarified the true intended usage of the loan (especially when extending short-termed credit) and the review is too optimistic, which does not analyze the potential influence of changes in related factors. There is also no deep review on the market, no en ough understanding on enterprises' operation management situation, no horrors risk revaluation; inaccurate assessment, the risk of loans is not fully covered and the risk on group customers and affiliated enterprises are not identified effectively. The factors above damage the loans at the early stage. 2. Debt Recovery Processes interest comprises a banks principal source of revenue, and therefore, of profit. Accordingly, from a banks perspective it is essential that its borrowers keep their contractual commitments and repay interest and capital as scheduled. Defaults are inevitable, but when they occur a bank should take appropriate remedial action, or ailing that, recover the outstanding interest and capital promptly. Ethiopians Banks adopt different ways of recovering non- performing loans. These methods are one or the combination of the following: Settlement – This engages both the lender and the borrower in negotiation to settle through collection of cash.Reschedule/Rene wal – this method is used whenever a bank believes that the Naps can be regulated in favorable terms and conditions through negotiation (term loans) and renewals (overdrafts). This is not without limitation. National Bank Directive No. SUB/43/2008 states a bank shall not reschedule restructure or negotiate worth or medium term loan to a borrower for more than three periods. Before rescheduling, restructuring or renegotiating a short or a medium term loan, a bank shall collect in cash full amount of interest thereof and the following principal amounts: a. A minimum of 25% of outstanding principal balance in case of rescheduling, restructuring or renegotiating for the second time.

Educating the Exceptional Learner Benchmark Assignment Essay

Abstract This paper reflects on the teacher candidate’s observations of the student â€Å"Junior† and the various accommodations that were made for him in various classroom settings. It also discusses different accommodations that could be made in general education classes and special education classes. The paper discusses the need for high school students to be self-advocating or self-determining and learning to make decisions on his or her own. SPE-226 Educating the Exceptional Learner Benchmark Assignment: Teaching for Exceptionalities Students with exceptionalities are a breed all their own. Each student has individual strengths, weaknesses, and individualized education programs/plans (IEPs) tailored to those needs. There are many resources, accommodations, and settings for these students to help ensure their academic success. One particular student, herein called â€Å"Junior,† is a mixed bag of interesting. Junior’s cognitive abilities are on par with his classmates. However, he needs help with reading, writing, and other social and behavioral skills. He likes to engage in discussion, enjoys music, and is diligent in his work. Observing him, his teachers, and other various special education classrooms has given valuable information to increase my teaching strategies. Inclusive Math Class Junior’s first period class is Algebra 1-2. It is an inclusive class and is co-taught by Meinen and Geigas. Meinen, the special education teacher, is there to help students and provide assistance services to Geigas’s teaching. However, all of Geigas’s classes have some form of inclusion. Consequently, Geigas’s teaching strategies differ from regular education teaching strategies in order to appeal both to the inclusive students and regular students. For instance, Geigas uses different colored pens for different the  different steps of a problem when he is teaching and doing problems with the class. He is also willing to create copies of the class worksheet for any student who needs it, not just special education students. The accommodations for Junior’s quiz were highlighting the directions for him and writing the different formulas, like point-slope form and the equation for finding the slope of a line, on his paper for easier access. Highlighting the directions for Junior’s quiz was successful. He knew what was expected of him, and what he needed to accomplish with the quiz. He did not need to have the directions read to him or explained to him. In addition, writing the formulas on his paper helped keep him on track. He only needed help with one graphing question, which could be a difficult question for any student. Because Junior only missed two questions due to minor mistakes, I believe the accommodations were very successful and do not need to be changed. Furthermore, I would review the minor mistakes with Junior, have him explain where he went wrong, and give him half-credit since he had the major concepts correct. Many other technologies or other instructional supports exist that could enhance the learning for Junior and his classmates. In the math classroom, there are white boards and a document scanner. The document scanner is what Geigas and Meinen use to do the problems together with the students. Two major benefits to having the document scanner are having a hard copy of what work was done in class and being able to go back if necessary. If the class were only using the white board, each problem would have to be erased in order to move on to the next problem. If a student needed to go back, this would create a lot of wasted time redoing work that was previously done. Another good technology tool that students could use is Khan Academy, a website with videos and exercises to help anyone learn skills and concepts at their own pace (Khan Academy, 2013). It also tracks all data inputted and shows the user’s statistics over time. This information is private to the user, but it can be shared with teachers and coaches, so teachers can use the Khan Academy classroom in their own physical classrooms (Khan Academy, 2013). While Khan Academy is a good resource, the classroom only has one teacher computer available, so any type of technology is extremely limited. Self-Advocacy and Self-Determination Junior is just one student of many. There are many other special education students in the inclusive classrooms that could need more help. Because these are high school students, they need to be taught the idea of self-advocacy or self-determination. This is the idea that the student’s ability to â€Å"consider options and make appropriate decisions and to exercise free will, independence, and individual responsibility† (Hardman, Drew, & Egan, 2009, p. 92). Therefore, many of the special education students in the inclusive classes must ask for the bigger accommodations. For instance, if a student needs to go to a separate room with less people and/or have the directions read and explain to them aloud, they must ask permission to do so (A. Geigas, personal communication, November 4, 2013). â€Å"Since self-determination skills are most effectively learned and developed by practicing them, students with disabilities should be given ample opportunity to use their self-advocacy, decision-making and socialization skills well before they leave high school to prepare themselves for working and living in their community† (PACER Center, 2013). Allowing this type of openness is actually beneficial for the students. It allows the students to become more independent while in the safe, closed environment of the classroom. Additionally, effective self-determination teaching can increase positive transitional outcomes in moving from high school to adult life (Hardman, Drew, & Egan, 2009, p. 92). For these reasons, many accommodations are not expressly given to students. Self-Contained Special Education Class When it comes to special education classes, there can be more focus on the individual student and his or her needs. In Junior’s special education behavior class period, the class focuses on what is expected of him and his classmates in social situations. They were planning a field trip to a symphony during the week, so the teacher discussed examples of the types of behaviors that would be expected of them and what behaviors would be unexpected in the given situation. As for Junior, he likes to be engaged in class, which leads to him shouting answers. In some classes, it is acceptable, and others it is not. He had to be reminded that he needed to raise his hand, and be acknowledged in order to speak during his turn. Michelle Garcia Winner gives a good accommodation or lesson that can deal with this kind of behavior: I encourage teachers to keep their eyes focused on who they were talking to, hold up the palm of their hand in the direction of the blurter and say to them â€Å"I was looking at this student (say the student’s name), I was talking to this student, I am not talking to you right now.† By doing this, the teacher provides cognitive information about the process of communication that helps the student learn how to avoid blurting. (2012) On the other hand, Junior did well in understanding why certain behaviors would be unexpected, offensive, or rude while at the symphony. Given this observation, one can tell that Junior only has mild or moderate problems with social behaviors. As a result, this self-contained class was geared more towards his classmates in the room. This is a prime example of how the accommodations of special education teachers differ so greatly between room s, classes, and students. Conclusion Observing and talking with Junior’s teachers, special and regular education, has given me a plethora of information that has increased my teaching tools and strategies. Observing a range of classrooms and situations has given me a deeper understanding of the kind of scenarios that may be presented in my future. Overall, Junior is a very bright, engaging student. Spending time with him and observing a multitude of different classrooms has given me valuable insights into the world of teaching students with exceptionalities. References Garcia Winner, Michelle. (2012). Social Thinking at School. Retrieved 13 Nov 2013 from https://www.socialthinking.com/what-is-social-thinking/-social-thinking-at-school Hardman, M. L., Drew, C. J., & Egan, M. W. (2009). Human Exceptionality: School, Community, and Family (10th ed.). Belmont, CA: Cengage Learning. Khan Academy. (2013). A free world-class education for anyone anywhere. Retrieved 14 Nov 2013 from https://www.khanacademy.org/about PACER Center. (2013). SELF DETERMINATION. Retrieved 13 Nov 2013 from http://www.pacer.org/tatra/resources/self.asp

2 Easy Ways to Get Zinc Metal

Zinc is a common metallic element, used to galvanize nails and found in many alloys and foods. However, its not easy to get zinc from most of these sources and you may have trouble finding a store that sells it. Fortunately, its easy to obtain zinc metal from common products. All it takes is a bit of chemistry know-how. Here are two simple methods to try. Where to Find Zinc in a Penny Although pennies look like copper, they are really made with a thin copper shell that is filled with zinc. Its easy to separate the two metals because they have different melting points. Zinc melts at a lower temperature than copper. When you heat a penny, the zinc runs out and can be collected, leaving you with a hollow penny. To get zinc from a penny, you need: United States pennies (minted in 1982 for the right chemical composition)pliersa gas stove or torcha heat-proof container to collect the zinc Extraction Turn on the stove or torch so it will be hot enough to melt the zinc.Hold a penny with pliers and place it in the tip of the flame. This is the hottest part of a flame. If the metal is not melting, make sure its in the right part of the flame.Youll feel the penny start to soften. Hold it over the container and gently squeeze the penny to release the zinc. Be careful with this process, as the molten metal is very hot! Youll end up with zinc in your container and a hollow copper penny in your pliers.Repeat the process with more pennies until you have as much zinc as you need. Allow the metal to cool before handling it. An alternative to using pennies is to heat galvanized nails. To do this, heat the nails until the zinc runs off of them into your container. Use a Zinc-Carbon Lantern Battery Batteries are useful sources of several chemicals, but some types contain acids or hazardous chemicals, so you shouldnt cut into a battery unless you know exactly what kind it is. To get zinc from a battery, you need: a zinc-carbon batterygloves to protect your hands from sharp edgeswire cutterspliers Extraction Basically, youre going to break open the battery and dismantle it. Start by prying the rim or top off the battery.Once the top is removed, youll see four smaller batteries inside the container that are connected to each other by wires. Cut the wires to disconnect the batteries from each other.Next, youll disassemble each battery. Inside each battery is a rod, which is made of carbon. If you want carbon, you can save this part for other projects.After the rod is removed, youll see a black powder. This is a mixture of manganese dioxide and carbon. You can discard it or place it in a labeled plastic bag to use for other science experiments. The powder will not dissolve in water, so it wont do you any good to rinse the battery. Wipe out the powder to reveal the zinc metal. You may need to cut open the battery to completely remove the powder. Zinc is stable in air, so once you have it, you can put it in any container to store it. Safety Information The chemicals in this project are not particularly hazardous, but either method of obtaining zinc should be performed by an adult. Melting pennies presents a burn hazard if youre not careful. Getting zinc from batteries involves sharp tools and edges. Otherwise, this metal is one of the safest chemicals to obtain. Pure zinc metal does not present a health hazard. If all else fails, you could always buy zinc metal online. Its available as a metal ingot or as a metal powder from sellers.

2 Easy Ways to Get Zinc Metal

Zinc is a common metallic element, used to galvanize nails and found in many alloys and foods. However, its not easy to get zinc from most of these sources and you may have trouble finding a store that sells it. Fortunately, its easy to obtain zinc metal from common products. All it takes is a bit of chemistry know-how. Here are two simple methods to try. Where to Find Zinc in a Penny Although pennies look like copper, they are really made with a thin copper shell that is filled with zinc. Its easy to separate the two metals because they have different melting points. Zinc melts at a lower temperature than copper. When you heat a penny, the zinc runs out and can be collected, leaving you with a hollow penny. To get zinc from a penny, you need: United States pennies (minted in 1982 for the right chemical composition)pliersa gas stove or torcha heat-proof container to collect the zinc Extraction Turn on the stove or torch so it will be hot enough to melt the zinc.Hold a penny with pliers and place it in the tip of the flame. This is the hottest part of a flame. If the metal is not melting, make sure its in the right part of the flame.Youll feel the penny start to soften. Hold it over the container and gently squeeze the penny to release the zinc. Be careful with this process, as the molten metal is very hot! Youll end up with zinc in your container and a hollow copper penny in your pliers.Repeat the process with more pennies until you have as much zinc as you need. Allow the metal to cool before handling it. An alternative to using pennies is to heat galvanized nails. To do this, heat the nails until the zinc runs off of them into your container. Use a Zinc-Carbon Lantern Battery Batteries are useful sources of several chemicals, but some types contain acids or hazardous chemicals, so you shouldnt cut into a battery unless you know exactly what kind it is. To get zinc from a battery, you need: a zinc-carbon batterygloves to protect your hands from sharp edgeswire cutterspliers Extraction Basically, youre going to break open the battery and dismantle it. Start by prying the rim or top off the battery.Once the top is removed, youll see four smaller batteries inside the container that are connected to each other by wires. Cut the wires to disconnect the batteries from each other.Next, youll disassemble each battery. Inside each battery is a rod, which is made of carbon. If you want carbon, you can save this part for other projects.After the rod is removed, youll see a black powder. This is a mixture of manganese dioxide and carbon. You can discard it or place it in a labeled plastic bag to use for other science experiments. The powder will not dissolve in water, so it wont do you any good to rinse the battery. Wipe out the powder to reveal the zinc metal. You may need to cut open the battery to completely remove the powder. Zinc is stable in air, so once you have it, you can put it in any container to store it. Safety Information The chemicals in this project are not particularly hazardous, but either method of obtaining zinc should be performed by an adult. Melting pennies presents a burn hazard if youre not careful. Getting zinc from batteries involves sharp tools and edges. Otherwise, this metal is one of the safest chemicals to obtain. Pure zinc metal does not present a health hazard. If all else fails, you could always buy zinc metal online. Its available as a metal ingot or as a metal powder from sellers.