Wireless Security Dissertation

Wireless Security

The technology of Wireless Security Networking is one of the most common networking and accessible technology but still the security problems are of great interest of this type of technology. This research paper will prospect the wireless networking and its security as well as will focus on the companies which are involved in this technology and future prospects for this technology.

These days’ computer clients are more fascinated in attaining the Internet wirelessly because of its accessibility and mobility. These days, business travelers prefer and utilize the wireless laptops to keep in contact with the office, home, and friends. A wireless network can unites or connect the computers at various places of your business and home without any involvement of any cords and permit you to work anywhere within the range of network on laptop (Bulk, 2006).

The wireless networks are established on the basis of IEEE criteria and standards which belong to 802 family which contains (802.3) Ethernet that is largely utilized today in offices and homes. Even though the growth and development of the 802.11 standards and technology have been in progress since the late 1990s, basic acceptance of “wireless Ethernet” only originated in year 2000-2001 when (AP) or access point devices turned cheap enough for the home user. (Bulk, 2006) The following items simply provide an overview of the 802.11 family which includes: 1-802.11b (a)- Most widespread (b)- 11Mb maximum, 2.4 GHZ band, 2- 802.11 (a)- Next generation (b)- 54MB maximum, 3- 5GHZ band 3- 802.11g (a)- 54MB maximum, 2.4 GHZ band (b)- Compatible with 802.11b 4- 802.11X (a) Uses Extensible Authentication Protocol (EAP) (b) Supports RADIUS 5- 802.11i (a) TKIP (b) Draft (Bulk, 2006).

The disadvantage of a wireless network is that, except someone takes positive protections, any individual with a wireless laptop or computer can access your network. That means that hacker can attain the personal data and information on your laptop or computer. And if an unaccredited person utilizes your network to commend a crime or transmit spam, the action will be traced on your account. The 802.11 authoritative standard is, in its functioning principles, not that practically different from the Ethernet. It employs a conventional “one can speak, others hear” media access control strategy; the simple difference is that instead of wires, the carrier of the signals are assigned radio frequency. In year 2004, (ISRC) or Information Security Research Center of Queensland University declared that any 802.11 network installed in any business environment could be halt in few seconds simply by transmitting a signal that hinders the other users or parties from trying to talk. On the other hand, same is true for Ethernet; apart from that you must be able to join with the network plug at first, which certainly makes the attacker much easy to trace the trouble in order to solve it (Nichols, & Lekkas, 2006).

That’s not the place where problem terminate. Where the 802.11 standard tried to prevent carrier-level hits, it actually failed dejectedly. The (WEP) or Wired Equivalent Privacy (WEP) method was planned for wireless networks to supply a stage of security and protection against hackers on network sessions by outside members or parties, therefore offering security nearly equivalent to conventional LANs. Though, there are numerous design flaws were found in the WEP scheme in 2001 by the researchers of Zero Knowledge System and University of California, which showed the scheme hideously incompatible. Unfortunately, even by that time Wi-Fi had been deployed extensively to create compulsory adjustments hard to execute or implement (Nichols, & Lekkas, 2006).

General Wireless Security

Now the question arises why it is necessary to concentrate on the security of Wi-Fi. As we know that the general area of 802.11 network security zones are one of the leading bases for future security interests and concern: Any hacker or attacker can be laid where nobody considers him or her to be and keep well away from the network’s authorized premises. Furthermore, the other reason to concentrate on the security of Wi-Fi is its great and widespread utilization and use of 802.11 networks. In year 2006, it is reported that the quantity of shipped 802.11 enabled hardware devices were calculated to outgrow 40 million units, even the cost of these units are keep falling. After the popularity of 802.11g devices in the market, the price of the several 802.11 products dropped to the price level of 100BaseT Ethernet client cards. However, there are various speed disadvantages, but not every network requires fast speed, and in majority of the cases the implementation of wireless network is highly demanded. On the other hand, another reason to concentrate on the wireless security is the offices situated on different areas of the engaged streets, office park and highway (Nichols, & Lekkas, 2006).

 Wi-Fi security problems are addressing with 2 different troubles: Privacy and authentication. Authentication or verification guarantees that only valid clients get access to the entire network. Privacy maintains communication safe from hackers. The implementation of WPA technology properly addressed these two fundamental troubles. Although we have the much strong security technology but accidents and mishaps can occur at any time, to obtain an enjoyable and pleasant practice of Wi-Fi technology users should have sufficient knowledge of the security weaknesses and vulnerabilities, that’s the reason the Wi-Fi Associations suggests that users of wireless networks implement the similar point of care they’ve learned to employ to keep away from scams in the wired world. Moreover, end users must modify their passwords frequently, not to answer or respond the doubtful e-mails, and should look for protected and secured connections. Customers require creating various new and uncomplicated security protections. A habit like linking through a supplier or provider that employs encryption with a list of committed and trusted hotspots, using a VPN, and constantly changing and enabling security inside a home network. Furthermore, customer should make it a point to prefer those products that are having Wi-Fi certification for the utilization of WPA™ (Wi-Fi Protected Access) or WPA2™ security (Nichols, & Lekkas, 2006).

As far as technology is concerned, WEP or Wired Equivalent Privacy is a protocol that supplies security to (WLANs) or wireless local area networks based on the 802.11  Wi-Fi regulations. Moreover, WEP is a (layer 2) or OSI, Data Link Layer security technology that can be switched “on” or “off.” This technology is configured to offer wireless networks the equal level of privacy security as a comparable wired network. Moreover, WEP technology is based on the security scheme known as RC4 that utilize an assemblage of system generated values and secret user keys. The primary enforcements of WEP supported so-called 40-bit encryption, containing a key of 40 bits and 24 extra bits of system produced data. Research has revealed that it is very much easier to decode the 40-bit WEP encryption, and as a result product vendors nowadays use 128-bit encryption or better 256-bit (Hardnono, & Dondeti, 2008).

When communicating through wire, WEP utilize keys in order to encrypt the data stream. The keys generally are not sent on the network rather they stored in the windows registry or on the wireless adapter. Despite of how it is configured on a wireless LAN, WEP just signifies only one aspect of an overall WLAN security scheme. The standard of 802.11 explains the communication that takes place within wireless local area networks (LANs). The (WEP) algorithm is utilized to defend wireless communication from hackers. A secondary purpose of WEP is to stop the illegal approach to a wireless network. WEP depends on a confidential key that is distributed between the access point and the mobile station. The secret key is generally used in order to encrypt the packets before they are transmitted, and integrity verification is used to make sure that packets are not customized during transmission. Another WEP technology offered by the Agere Systems is known as WEP+, which enhances the security by neglecting “weak IVs”. The WEP+ provides its maximum excellence when it is used at both ends of the wireless connection, as this can’t easily be enforced, however, possibilities are always there that possible attack against WEP+ will finally be found (Hardnono, & Dondeti, 2008).

Moreover, Wi-Fi protected access or WPA is another security technology for  Wi-Fi networks. WPA technology improves the encryption and authentication feature of WEP. Actually, WPA was developed in response to the deficiencies of WEP by the networking industry. On the other hand, the technology used behind the WPA technology is the utilization of the (TKIP) or Temporal Key Integrity Protocol as this protocol deals with the encryption weaknesses of WEP. Another advantage of the WPA technology is the built-in or default authentication that is not offered by the WEP technology. Furthermore, another variation of the WPA technology is termed as WPA-PSK or WPA Pre Shared Key, is a simple but still strongest structure of WPA most appropriate for business and home Wi-Fi networking (Hardnono, & Dondeti, 2008).

There is another form of WPA technology which is more advanced and safe and is known as WPA2. This technology provides both data integrity and confidentiality. It is observed that WPA2 provides more security to the wireless network. However, WPA2 can’t offer enterprise security alone. Generally IEEE 802.IX port-based protocol is combined with the WPA2 which provides maximum security and guarantees the secure wireless communication. The technology of WPA is utilized with the TKIP protocol, which further utilizes the RC4 cipher, and it can be executed in software having driver or firmware update. WPA supplies integrity checking using MIC, occasionally termed as “Michael. Meanwhile, WPA2, utilizes a new encryption technique known as CCMP or (Counter-Mode with CBC-MAC Protocol), which is stronger than the RC4 (Hardnono, & Dondeti, 2008).

As far as the future of wireless security is concerned the new 802.11 standards simplify this challenge? However time will tells the best. Moreover, the 802.11i standard is the latest wireless security standard designed to put back WEP and give much effective wireless security. 802.11i was believed to be launched together with the 802.11g, however, as we know that we are not living in the perfect world. (WPA) or Wireless Protected Access Alliance certification version 1 executed various features of current 802.11i development, although, not all products of 802.11 which are sold in market having WPA certification. In the current scenario there are currently many 802.11g networks arranged that are still using non-secure and old versions of WEP (Guna, 2009).

In the coming future it is expected that the next Wi-Fi speed standard, 802.11n, will considerably provide a bandwidth of maximum 108Mbps. Moreover, this 108Mbps will become the industry standard. The latest specifications will be launched at least 1 year before by the IEEE. However, draft-based devices and products could come up with compatibility troubles in case if the authorized standard varied from the draft version. Therefore, it’s much better to stay and wait for the ratified standard before building network over non-authorized gears (Tynan, 2004).

On the other side, in coming future, the possible changes regarding Wi-Fi include the methods and procedures to make this technology more and more dependable and secure. Within a year or two the standard of 802.11i standard will be finalized, which will greatly enhance the security level. Moreover, in future in order to handle the data encryption the majority of the 802.11 i-compliant will need the separate co-processors, which indicates that current Wi-Fi devices and equipment will be replaced to achieve the maximum security (Tynan, 2004).

Wireless Security
Wireless Security

Lastly, in the coming future another advanced standard 802.11e will be largely employed for the special tasks. 802.11e will address the issues of quality services and the delivery of data packets on time. This standard is very much important for certain streaming applications like videoconferencing, and its importance is really vital as business more toward utilizing Voice Over IP on their wireless networks. Some companies have already launched 802.11e standard for some of their products like Broadcom (Tynan, 2004).

These days there are several companies around the globe, which are providing wireless security but when the question arises regarding pioneers the name which strikes first to the mind is “Broadcom.” This company is providing network solution and recently “Broadcom” has declared that the (WAPI) security standards required for all WLAN devices which are sold in China. Moreover, this company declares that it is in the list of companies who first made WLAN chips to present WAPI-enabled assistance designed for mobile devices and wireless routers, including In Concert BCM4325 that joins WLAN, FM technologies and Bluetooth “CBR, 2009).

It is mentioned by the Broadcom, that all the chips control its digital architecture and radio to supply the wireless connectivity in order to share support triple play service and broadband connectivity. According to the Michael Hurlston, general manager as well as vice president of Broadcom, said: “We are delighted to maintain the WAPI standard being a leader in the field of WLAN we are confident and feel proud to be a pioneer of the rapidly increasing wireless communications.” Furthermore, Broadcom, is making effort to promote the global standards for the wireless communication (“Broadcom”, 2003).

The fairly new solution offers an entirely new system to protect the wireless networks against the threats of real world by launching active wireless methods of testing, which are able to evaluate the daily deployed wireless access points. By this approach, the wireless Vulnerability Assessment resolution facilitates IT administrators to find vulnerabilities remotely within their wireless network and automates the authorized agreement reporting, facilitating customers to decrease the operating cost (“Computer Technology Review”, 2009).

Motorola is offering a complete and comprehensive range of WLAN infrastructure resolutions planned to enable the genuine wireless venture, despite the dimensions and size of the business. The company is offering IP or Internet Protocol coverage in outdoors and indoors simultaneously. The company’s wireless range includes mesh, enterprise WLAN, fixed broadband and Motorola solutions for AirDefense wireless security. Moreover, Motorola’s solutions decrease network maintenance and deployment costs, and guarantee the accessibility of commercial and cheap wireless connectivity. By replicating active attacks from the hacker’s viewpoint, the Motorola AirDefense wireless solutions in case of vulnerability Assessment permits the administrator proactively evaluate and assess the level of security of delicate systems over the wireless network, like cardholder data systems. Furthermore, by using the radio device of the wireless sensor to stimulate a wireless client station, the method empowers the IT administrators to perform remotely the assessment of wireless vulnerability from a hacker’s approach (Messmer, 2009).

Motorola Company is recognized around the globe for modernization in the field of communication and is generally centralized on progressing and advancing the mode of style through which world connects. From enterprise mobility, broadband communications infrastructure and public security solutions to mobile devices and high-definition video, Motorola is directing to the next phase of advancement and innovation that will enable people, governments and enterprises to be more attached and more mobile. It is reported that Motorola had sales of nearly US $30.1 billion in year 2008 (Darkreading, 2009).

The issues of spectrum pricing, data protection, and level of security are of primary concern and are having great importance for the advancement and growth of the wireless communication industry. The most important regulatory issue in field of wireless technology is associated with the security, as this issue will be face by the wireless industry over the next two decades. On the other side, the confidence level of the customer in online transactions over the wireless medium is also of great importance. Security contains not only the safety of data but also the safety from monitoring. Distaste for investigation is widely considered as the expected inhibitor of wireless network utilization (Green, 2009).

The basic issues that should be considered are: Wireless communication: as it doesn’t need physical connectivity, also having more chances to survive in case of natural disasters like floods, hurricanes, earthquakes, tornadoes and volcanoes. The other issue is Wireless transmission: as it is easier to seize and intercept than those running over wire-line or fiber connections. Though, fiber can also be intercept however, it is hard to hack it as compare to the wireless. Moreover, public is having common perception that physical connections are having more security and protection. Also, the employment of digital encryption is really helpful to protect the wireless transmission, however, the public concern regarding security and privacy are of great importance and will be addressed in the coming decades by the wireless industry (Green, 2009).

As far as the global implication of wireless security is concerned there are few steps which should be adopted for the implication of wireless security. The initial step towards successful and effective global wireless security is creating a standardized verification infrastructure. However, the user should be required to authenticate on the network. But for the global implication users cannot be enforced to organize or manage multiple user authentication, accounts, identity and passwords. Furthermore, there must be a single set of access identification which must offer for verification at any site or location. Preferably this must be the similar set of certification used to login to the user’s own-workplace. On the other hand, the network systems should be arrange to recognize realms, domain names as well as various other regional identifiers in order that verification or authentication requests can be routed to the approved set of validation servers. By implementing this principle, the user will be able to travel to any place in the world or to any enterprise location and will be granted access to most appropriate networks (Green, 2009).

The second step for the implementation of global wireless security is the change in the access method. It required that the access method should be reliable and consistent everywhere the user travels. Moreover, users don’t want to adjust or reconfigure their systems as they travel from the corporate offices to their branch offices and homes. This indicates that there is a need for the same (Service Set Identifier) or SSID, which should be installed or present everywhere with having same encryption and authentication policies. Additionally, every place must have same authentication infrastructure so that user may not feel any problem. Moreover, users are free enough to be able to start their email application at corporate office, put their laptops in a sleep mode, go home, and start their work again without any need of a separate VPN client (Green, 2009).

Conclusively, the third step is the implementation of the voice mobility. It is observed that many companies and organizations are assessing their (Vo WLAN) or Voice over  WI-FI LAN technology today with estimated wide range deployments occasionally in 00 or 0 0. One of the major outcome and benefit for this technology will be the capacity to utilize it everywhere where there is an availability or access of wireless LAN service. When users move to the remote areas or travel to the remote locations, the service of (Vo WLAN) and voice mobility usually permits their Vo-WLAN handsets to start operation in the same manner as they perform in the normal work locations. Moreover, the mobile network infrastructure must offer secure transmission of voice traffic back to the corporate telephony server, quality of service control and reliable encryption and authentication methods all over the global network (Green, 2009).

References

Broadcom, (2003) Broadcom wireless LAN solutions now Wi-Fi protected access

Bulk, Frank. (2006) The Abcs of wpa2 Wi-Fi security. Network Computing, 17(2), 65-3.

CBR, (2009) Broadcom features wapi security standard on its wireless offerings.

Computer Technology Review, (2009, August 20). Motorola debuts wireless LAN security solution for remote wireless security testing.

Cox, John. (2009) what’s next for Wi-Fi?

Darkreading, (2009) Motorola introduces wireless LAN security solution for remote wireless security testing.

Green, Jon. (2009). Building global security policy for wireless LANs.

Guna, (2009) The Future of wireless security.

Hardnono, Thomas, Dondeti and Lakshminath (2008) Security in wireless LANs and mans.      London: Artech House, Inc.

Messmer, Ellen. (2009). Motorola boosts wireless network security.

Nichols, Randall K., & Lekkas, Panos C. (2006) Wireless security: models, threats, and  solutions. Berkshire, UK: McGraw-Hill Telecom.

Tynan, Daniel. (2004) The Future of wireless.

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Budgetary Control Systems

Budgetary Control Systems

Budgetary control

Budgetary control is always followed by budget preparation. Budget needs not only top management assistance but also the control is supported by “participation of budgets holders into the investigation of solution to the problems which arise”

Budgeting acts as a service function because these did not put back management. Organizations draw budgets to achieve excellence and meet strategic business plans to avoid from any failure in future. These strategic business plans are divided into midterm and short term plans for cost minimization and profit maximization. This is a benchmark to measure the results of planned budgets. Reynolds told that budget planning is a source for the endurance of organizations in these highly competitive and challenging organizations.

A case study “Budgeting and budgeting control in business organization” written by Chika Agu (2006) defined that Budgetary control is the deployment of budget as a tool which regulates and guides the business activities and operations. The case study showed that budget is a measuring tool to administratively control operations and to determine whether planned goals are achieved on desired time or not?

Budgeting control system controls cost through budgets. It compares actual results with budgeted one by keeping in view whether obtained outcome matches with planned results. If any divergence from budgeted results is obtained, corrective measures proposal is established to achieve actual performance that matches with planned budget. Core objectives of budgetary control system are comprised of planning, synchronization and control. All these functions are interconnected (Arora, 1995).

Budget meets two fundamental prerequisites in the entire control procedure:

Feed forward

It provides fundamental control which can better help in decision making process in initial phase. These budgetary controls should be made whether the desired goals are rationale or not? Amendments should be made if budget is found irrational.

Feedback

Feedback provides foundations to measure the effectiveness and efficiency once point of action has been taken into account. This helps to improve previously committed mistakes and unmanageable impediments.

Budgetary control system has following functions:

Planning

Planning being an important part of budgetary control system encompasses long term, strategic and short term planning as well. Further, he stressed upon short term budgeting that must admit current environment, tangible, human and financial resources which is available in the organization. (Sizer, 1989). Planning is made by selecting goal and ways to attain them. It has a strong association with budgeting due to similarity in nature. Top management primarily focus upon the importance of planning and they plan where to invest, how to finance and how to increase market share keeping customers loyalty towards their brand. It is also certain that only planning and budgeting are the key survival for an organization.

Participative Budgeting

Research publications by various authors have substantial concern for participative budgeting despite of contradictory findings. Cherrington & Cherington (1973) found that negative relationship exists between budget participation and performance. Merchant (1987) and Brownell (1982) found positive relationship. Participative budgeting is utilized mostly when lower management has immense knowledge than middle management.

Monitoring

Budgetary monitoring and control approach is systematic and unremitting which is simplified by different steps: Establish departmental target performance of each organization by establishing goals to be attained so as to improve overall monitoring and performance of each organization. Communicate detailed budgetary strategy to entire stakeholders to greet and admire established goals and objectives. It boosts ownership of the consequences obtained at the end. Monitoring of real revenues data is evaluated by comparison of actual performance with the budgeted performance; thereby, reporting differences to the concerned officers on continual basis. The reason for variation in achieved data can be sort out and recommendation can be made (Drury, 2006).

Control

Control is set by comparing actual performances with planned and differences are addressed to management for intriguing corrective acts. Control is impossible without planning and it facilitates to maintain expenditures within planned perimeters. (Alesina and Perotti, 1996).

Achievement and accomplishment of the anticipated output data and results, their monitoring and assessments is compulsory. Both monitoring and evolution sustains steadily environment irrespective of various challenging forces; therefore, it is significant to local government effectiveness as well. It is also found that monitoring and evaluation need just raw data for test purpose and consumes a lot of time to scrutinize performance. Therefore, a valuable control system is needed for organizational development and continuous improvement with significant growth.

Budgetary Control Systems
Budgetary Control Systems

Performance Measurement

Horvath & Seither (2009) stated that performance measurement is a continuous process which quantifies the effectiveness and efficiency of each action, being a versatile concept; it also tells use of technology can better improve business functions. It is comprises of entire management planning, controlling and leading concept. Performance measurement could vary from business to business i.e. service sector and manufacturing sector but overall concept remains the same. In case of financial sector, budget performance can be quantified which helps to learn from mistake and perform better in the future.

Performance Indicators

Performance indicators include input, output, efficiency, effectiveness, cause and effects and outcomes as well. Input can be defines as all the necessary efforts required to keep on a project i.e. land labor, capital, raw material and money to meet necessary expenses. While, output is the outcome of input efforts and these are end results. Example may include budgeted overhead in production department which are calculated by costing department.

Outcomes and organization’s mission are closely related with each other. Outcome measures and evaluation of effectiveness defines the degree, the firm is attains its missions and objectives.

Disadvantages

  • Budget is totally based upon estimations and there is always uncertainty and ambiguity as future is uncertain.
  • Budget assumptions may or may not actually happen in real life. Many organizations face bankruptcy and insolvency problem due to poor liquidity.
  • We cannot blindly focus on it and it may affect long term planning and organizations nay face profitability issues.

References

Arora, M.M (1995). Cost Accounting, Principles and Practice (4th ed.) Vikas Publishing.

Sizer, J. (1989). An insight into Management accounting (3rd ed). Penguin Books Limited.

D.J. & Cherington, J.O. (1973). Appropriate reinforcement contingencies in the budgeting process. Journal of Accounting Research.17 (2), 225-253

Brownell, P., Dunk, A.S. (1991). Task Uncertainty and Its Interaction with Budgetary Participation and Budget Emphasis: Some Methodological Issues and Empirical Investigation. Accounting, Organization & Society.16 (8), 693-703

Drury, C. (2006), Cost and Management Accounting (6th ed). Boston Irwin. McGraw-Hill, 422-471

Alesina, A. & Perotti, R. (1996). Reducing Budget Deficits. Swedish Economic Policy Review, 3(1)

Horvath, P. & Seiter M. (2009). Performance Measurement. Die Betriebswirtschaft, 69 (3), 393-413

Agu Chika E., (2006) Budgeting and Budgetary Control in Business organization. (A case study of Emenite Nigeria Limited Emene Enugu Branch)

Budgetary Control Relevant Links

Budgeting Methods

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Foreign Outsourcing

Foreign Outsourcing

Foreign outsourcing is a byproduct of the globalization where societies and the cultures across borders have become integrated. This integration had been through globe-spanning network of communications and executions of the national economies. As a result, the economies integrated into international economy through trade, cash flows, foreign direct investments, migration and spread of the technology. However, national economies integration has given rise to controversies owing to outsourcing. Though, it appears to the economists to be an opportunity for states to gain growth through comparative advantage aspect, there are various critiques on the same regarding its demerits. For this case, therefore, it is a twofold-problem which seems debatable among the persons of US and across nations (Snyder &Jeremy 2010, p. 20-22).

Among foreign outsourcing companies, for instance, Delta airlines outsourced 1,000 jobs to India in search of cheap labor. The company realized $25 million in savings and hence allowed the company to add 1,200 reservations and sales positions as well. Similarly, positions in IT had gone offshore with a total of 400,000. US positions recorded. Meanwhile, a total of US employment increase from 129 in 1993 to 138 million in 2003 mainly in services was also recorded. This way, it reveals that despite of heated public debate, outsourcing in US America is very positive to the American economy.

This paper, therefore, takes into consideration of the background of the study; US companies move to outsource factories to undeveloped nations. Besides, it critically looks into the business ethics regarding the barely faire wages that employees receive relative to their performance.

Foreign outsourcing background

It is a practice which had gain fame in the recent past decades as a way that is commonly used by different companies to reduce labor cost. Outsourcing is an effective cost-saving strategy used by transferring portion companies’ work to the outside suppliers rather than completing it internally. It is a practice which relies on the comparative advantage principle; at times it is more affordable to purchase a good or source labor from companies with comparative advantages rather than to produce internally.

Benefits of Foreign outsourcing

Outsourcing jobs to foreign countries has boosted American business to compete in the global economy. As the world economy has become less restrictive as a result of liberalization, US. companies modify their strategies to meet these contemporary world challenges. Competition in the world economy escalates the globalization, in turn incorporates the need for outsourcing for cheap labor. This way, outsourcing is a tool used to obtain a competitive edge in a globalized economy.

American trade across border for cheaper labor had been a crucial movement which has made a number of nations strives economically. Especially, its relationship with undeveloped countries had been an essential to their economic growth by a margin. This way, more and more of the American companies are hiring employees abroad hence enhancing job creation in undeveloped countries.

Outsourcing barely pays well

Many aspects of the average American’s good lifestyles can be solely attributed to trade relationship between US and Asia. That is, a significant proportion of clothes they put on, toys they nature their childhood, and given technologies the use at work or homes, was produced somewhere in Asia. Similarly, commerce with developing nations majorly China and Indonesia is as well reportedly crucial for America’s owned progressive economic achievements. Accordingly, manufacturing investments in developing states are in tens of billions of dollars and a huge number of contracted plants with American companies. However, many of Americans are barely aware that their appetite for consumerism fuels to heights controversial industry. Put simpler, just as the manufactured goods are in plenty than to meet the eye, sweatshops are very complicated (Hira, & Hira, 2005, p. 44-56).

Sweatshops are those factories which are considered to have unreasonable authoritative overseas, enforces long working hours with low payments, giving very harsh working conditions which are either physically or psychologically unhealthy. These outsourcing factories barely pay well regarding to the working conditions employees are subjected to. Considering the living wage, which is barely met by outsourcing factories, is a wage required by a million of workers to met their basic needs for survival. However, it is one of the brands which will remain unreality especially where government of state favors minimum wage. On the other hand, minimum wage is the amount of payment legally set as a benchmark by the states. In which it has to be met by the factories in a host country (Linder& Jane, 2004, p.75-90).

Reasons why outsourcing companies pay minimum wage

There exist some excuses why these sweatshops barely pay well for a living their employees overseas. Despite of the escalating food, energy, housing prices and transport fee around the world outsourcing factories has left workers a dire poverty. They barely receive a living wage to gather for their basic needs and those of their family members. Whether these manufacturing firms operate in Bangladesh, Cambodia, China, or in Philippines, their brands use all sorts of tricks to avoid paying their workers a sustainable living wage (Krishnan, 2007, p. 48).

Sweatshops posits that, paying a living wage seems impossible because there is lack of consensus on how to calculate it. However, from the workers point of view the problem has a little sense in this argument. Even though factories cannot agree on the figure many of similar firms had made no attempts to raise wage at all. Over the past years, of this dilemma have been in existence, multi-stakeholders such as Asia Floor Wage Alliance an alliance of 80-plus garment workers unions, workers representatives and the NGOs from six Asian garment producing nations have attempted to reach consensus but have failed in 2009. It is not the case that consensus is impossible to be reached rather it is just that sweatshops does not want to find it. The living wage was a workers buying power figure suggested to companies as a benchmark solution to the dilemma. Majority of the companies even was to the opinion but to date no company has started to officially it as a living wage benchmark (Snyder &Jeremy 2010, p. 20-22)

Outsourcing companies also argues that consumers do not want to purchase more of the products produced in this firms. For instance, consumers pay only a very small amount on their clothing needs. This way, sweatshops argues that it worth nothing however that a garment worker’s wage is merely 1-3% of the total cost of the garments. If a consumer is willing to spend eight Euros for a shirt, then means the worker though in harsh working conditions is receiving 24 cents. This as well is disputable in that doubling this wage would merely be another 24 cents. The consumer will barely realize the increased figure and if the consumer fails to, the factories will neither notice it. These profits have been observed being observed in the sweatshops profits margins and yet workers’ wage is still way below living wage (Krishnan, 2007, p. 48).

Sweatshops argue that low wage payments enable the hosting nations to gain competitiveness. This dilemma is also argues by the government of states giving reasons for setting minimum wage. Simply because, allowing living wage by the states would shun away the benefits from the sweatshops hence losing competitiveness edge. Cheap labor is a factor that entices production in majority of countries. For instance, China population attracts cheap labor force as well as the productivity of the industry is efficient. Contrary, increased wage rate have been an observed factor that boost morale of productivity, reduce absenteeism and employee turnover. This way, paying the workers a living wage is ideal to improve quality and flexibility. For this reason, therefore, allows the enlighten suppliers to retain a competitive edge (Bosniak et al., 2005:40).

Foreign Outsourcing
Foreign Outsourcing

Developing countries are desperate for jobs owing to their unemployment rate. On this note, outsourcing companies hold that they boost these countries significantly as they create job opportunities. It is actually the truth that workers getting jobs at sportswear and garment factories are better than some of the alternatives available to them. The flow of the cash flow from a country into another country has a detrimental impact of paying unfair wage yet they reap massive returns. The slave pay is not at all correlates to the returns realize even though the create employment to most of the developing countries. Generally it is unethical.

Outsourcing payments is unethical

Some of the world leading economists have recognized outsourcing as a necessary step in modernization and development. Jeffrey et al of Massachusetts Institute of Technology have asserted that sweatshops manufacturing in foreign countries, especially, in production of goods like garment and shoes are essential move towards a prosperous economic. This economic growth rate has been evidence in Asian tigers; Korea, Honking, Singapore and Taiwan. A study by University of Santiago de Compostela on the poverty relief and development also indicates that, sustainable international investments have been an economic progress in low income countries (Babin et al., 2012, p. 123-138)

However, foreign outsourcing by garment and footwear factories such as Nike, Converse, GAP, and Levi’s, has been genuinely linked to sweatshops as they are overwhelmingly lucrative. This is because they capitalize immensely on low-wage labor to significantly reduce cost of production. Such factories have been criticized as being involved with other agents, the government of US and developing countries, US corporate business which employs sweatshops labor, and the laborers in the developing countries, in exploitation of the workers. This is because they have been failing to correct the malpractices, in which they are pretty aware of but often claim they are hard to be corrected as purported by NGOs, workers alliances and so forth.

Rawls’ (1971, p.56-70) argument from the veil justice of ignorance would provide a view that foreign outsourcing is unfair and unethical. This is because there are great in equality between the US and the developing states. In developing countries which are relatively worse off the US, the laborers are exposed to the worst working conditions. Besides, it is unfair to as there exists difference in their payment as well. They actually take advantage of the developing country’s desperate need for job. It is true low-income countries are in great need for job creations which outsourcing countries are well-position to provide help. However, outsourcing companies have failed to justify their special obligations on either part of Enterprises Corporation or sweatshops to bare the shift of high wages, good working conditions and so forth.

Even though, outsourcing US companies are not charitable organizations and they are actually subjected to the stiffer market mechanisms, it does not mean that they have to maximize on their returns and fail to regard the socio well-being of its laborers. According to Immanuel Kant’s practical moral comparative posits that human beings ought to be treated as ends in themselves and not only as a means of exploitation to strive (Paton, 1999, p. 19-39). This way, sweatshops are not acceptable at all from their capitalism perspectives to mistreat their labors. It is unethical and unethical to use workers overseas as instruments in the amassing of the ventures profits (Zwolinski & Matt, 2007, p. 689-727)

Conclusion

The controversies surrounding the outsourcing companies in the US labor are suggestive of the ethical challenges. These are inevitable challenges which face US-Asia relationships. Besides, outsourcing companies’ reasons given for low-income payments to sweatshops workers are unethical and not justifiable. Their Laborers are the critical units that constitute and contribute to the nation’s economy at large. For this reason, US and Asia relations contribution to the overall progress needs not to overlook the moral obligations of respecting human rights. It is an essential need to be negotiated by the agents on the incompatibilities between the relative costs and the accruing advantages that are realized as results from their interactions.

Work cited

Babin, Ronald P, and Brian Nicholson. Sustainable Global Foreign Outsourcing: Achieving Social and Environmental Responsibility in Global It and Business Process Outsourcing. Houndsmills, Basingstoke, Hampshire: Palgrave Macmillan, 2012:123-138. Print

Bosniak, L. and others. Working Borders: Linking Debates about Insourcing and Outsourcing of Capital and Labor. Texas International Law Journal, Vol. 40, 2005

Ganesh, S. Foreign Outsourcing as Symptomatic. Class visibility and ethnic scapegoating in the US IT sector. Journal of Communication Management, 11.1: 71-83, 2007

Hira, Ron & Hira, Anil. Outsourcing America: What’s behind Our National Crisis and How We Can Reclaim American Jobs. AMACOM, 2005

Krishnan, J. Outsourcing and the Globalizing Legal Profession. William and Mary Law Review, Vol. 48, 2007

Linder, Jane. Outsourcing for Radical Change: A Bold Approach to Enterprise Transformation. AMACOM, 2004, p.75-90

Mitchell, Edwin T. A System of Ethics. New York: Charles Scribner’s Sons, 2005:485-490. Print

Paton, H J. The Categorical Imperative: A Study in Kant’s Moral Philosophy. Philadelphia, Pa: University of Pennsylvania Press, 1999:19-39.

Snyder, Jeremy. “Exploitation and Sweatshop Labor: Perspectives and Issues.” Business Ethics Quarterly 20.2 (2010)

Zwolinski, Matt. “Sweatshops, choice, and exploitation.” Business Ethics Quarterly (2007): 689-727

Rawls, John. A Theory of Justice. Cambridge, Mass: Belknap Press of Harvard University Press,  1971:56. Internet resource

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Balanced Scorecard Dissertation

Balanced Scorecard in Higher Education Institutes

The purpose of this paper is to show how the Balanced Scorecard approach, a performance management system, could be implemented at institutes of higher education. Balanced Scorecard is a strategic weapon for all organizations including Educational institutes and especially institutes of higher education. The implementation of the BSC approach is presented. This paper tries to study use of BSC in various universities across the globe, the various approaches and perspectives used with examples; its use in Indian environment is also studied. The paper points out that the BSC approach is well suited to a higher education situation esp. for aligning various perspectives with strategy of the organization. Recommendations are given for the use of BSCs effectively for improving institutional performance.

Educational institutions are now experiencing the need to adopt the concepts that they have taught. Increased competition, globalization, technology and resource constraints are making institutions rethink their processes in order to ensure value adding processes are in place to ensure success. Also recently a lot of strong criticism of business education’s relevance to business and the community in general has been made (Bennis and O’Toole, 2005; Holstein, 2005). The institutes are also unable to measure how much, value is added by their programs and this only aggravates the problem (Pfeffer and Fong, 2002). With the rising competition in the environment, there has been quite a critical discussion about the nature, value and relevance of business schools. Howard Thomas (2007) in their research on business schools has pointed out the following critics:

  • doing irrelevant research;
  • being too market-driven and pandering to the ratings;
  • failing to ask important questions;
  • pursuing curricular fads;
  • “dumbing down” course content; and
  • focusing more on specialist, analytical rather than professional managerial skills

This increased criticism and competition, has made it is important for business schools, to have a clear strategy, strategic positioning and alignment to the competitive environment. They need not only to answer the strategic question concerning what kind of business school they want to be (e.g. on a continuum from internationally prestigious and research-oriented to professionally focused and applied), but also set suitable performance goals and policies to attain these goals and incessantly monitor and adapt strategy and strategic positioning when weak performance signals are observed.

It is thus more important than ever to develop and measure processes that lead to successful outcomes. This brings into focus the measures of performance as well as the process that need to be put in place to ensure that the areas of concern are addressed. The thing that makes the concept of performance management more special is that various initiatives are systematically linked together in a conscious and planned way to align as much organizational activity as possible with the intended strategy.

The Balanced Scorecard Concept

The ‘Balanced Scorecard’ (BSC) concept was formulated by Robert Kaplan and David Norton and was most notably described in a Harvard Business Review article (Kaplan & Norton 1992). The widespread adoption and use of the BSC in business is well documented. The basic premise of the BSC is that financial results alone cannot capture value-creating activities. Kaplan and Norton (1992) suggested that organizations, while using financial measures, should develop a comprehensive set of additional measures to use as leading indicators, or predictors, of financial performance. They suggested that measures should be developed that address the following four organizational perspectives:

  1. Financial perspective: “How should we appear to our stakeholders?” – uses traditional financial measures to measure past performance.
  2. Customer perspective: “How should we appear to our customers?” – focuses on stakeholder satisfaction and the value propositions for each stakeholder.
  3. Internal business processes perspective: “What processes must we excel at?” – refers to internal organizational processes.
  4. Learning and growth perspective: “How can we sustain our ability to change and improve?” – looks at intangible assets such as employee knowledge and organizational cultural attitudes for both individual and organizational self-improvement.

All of the measures in the four perspectives must be aligned with the organization’s vision and strategic objectives, enabling managers to monitor and adjust strategy implementation leading to breakthrough performance (Kaplan & Norton, 1996). The BSC provides a way of organizing and presenting large amounts of complex, interrelated data to provide an overview of the organization and foster effective and efficient decision making and continuous improvement. Developing the BSC requires the identification of several key components of operations and financial performance, establishing goals for these components, and then selecting measures to track progress toward these goals.

Literature Review

Although the concept of the BSC has been widely adopted and used in the business sector, the education sector apparently has not embraced the BSC concept widely, as indicated by the dearth of published research on this topic. A thorough review of the literature yielded few significant publications. The dearth of literature available for the topic points to the fact that BSC has not found great acceptance in the education industry. Bailey et al. (1999) surveyed business school deans’ opinions about the potential useful measurements for a balanced scorecard. Cullen, Joyce, Hassall, and Broadbent (2003) proposed that a balanced scorecard be used in educational institutions for reinforcement of the importance of managing rather than just monitoring performance. Sutherland (2000) talks about how the Rossier School of Education at the University of Southern California adopted the BSC to assess it academic program and its planning process. Chang and Chow (1999) reported that 69 accounting department heads were generally supportive of the balanced scorecard’s applicability and benefits to accounting programs. Papenhausen and Einstein (2006) revealed how BSC could be implemented at a college of business. Armitage and Scholey (2004) successfully applied the BSC to a specific master’s degree program in business, entrepreneurship and technology.

In higher education, there are certain conventions in this regard that are acceptable as a measure of excellence. Higher education has emphasized academic measures, rather than emphasizing financial performance. These measures are usually built on and around such aspects as faculty/student numbers (ratios), demographics; student pass percentages and dispersion of scores; class rank, percentile scores; graduation rates; percentage graduates employed on graduation; faculty teaching load; faculty research/publications; statistics on physical resource (see library, computer  laboratories etc.). Ruben (1999) indicates that one area deserving greater attention in this process of measurement is – the student, faculty and staff expectations and satisfaction levels.

In a study conducted by Ewell, (1994) (cited in Ruben, 1999), the measures used in 10 states in the USA to report performance of higher education institutions, were as under:

  • Enrollment/graduation rates by gender, ethnicity and program.
  • Degree completion and time to degree.
  • Persistence and retention rates by gender, ethnicity and program.
  • Remediation activities and indicators of their effectiveness.
  • Transfer rates to and from two and four year institutions.
  • Pass rates on professional exams.
  • Job placement data on graduates and graduates’ satisfaction with their jobs.

Some of the problems associated with the use of the BSC in education arise from the different perspectives and needs that have to be addresses. Norreklit (2000) pointed out, that the perspectives in this case are interdependent and part of a linear cause and effect chain. McAdam and O’Neil have said that it is difficult to balance the different perspectives and this has to be carefully considered when designing the BSC.

Tertiary Education in India

In India, the University system, as we see today, originated about a century and half ago with the establishment of universities at Calcutta, Madras, Bombay, Allahabad and Lahore between 1857 and 1902. These were modeled after the British Universities of that period. The Central Advisory Board of Education’s (CABE) Committee on Autonomy of Higher Education Institutions (2005) in its report states that currently the Indian higher education system consists of 343 university level institutions and about 16,885 colleges and that there are many nagging concerns about its role and performance. Many of our reputed universities and colleges have lost their pre-eminent positions. Only a few manage to maintain their status and dignity in an environment of complex socio-economic pressures and worldwide changes in approaches to the educational processes. Under the rapidly expanding situation with multiplicity of expectations from the higher education system, it has become necessary to identify those attributes, which distinguish a first-rate institution from a mediocre one.

The complex array of associated issues deserves a total rethinking of our approach to higher education. Serious efforts are now underway to develop the policy perspectives in education involving deeper national introspection and fundamental changes in the structure, content and delivery mechanisms of our university system. The report further indicates that the enrollment in the Indian higher education system has increased from 7.42 million in 1999-2000 to about 9.7 million at present, indicating nearly 10 percent annual growth. The colleges account for about 80 percent of the enrollment with the rest in the university departments. Thus the programmes available in the college system largely determine the quality of our higher education. In the past decade there has been a sharp increase in the number of private colleges as well as universities with the status of either deemed to be universities or state universities. The proportion of eligible age group wishing to enter higher educational institutions will most likely increase significantly from the present level of about 7 per cent. The regulatory mechanisms will perhaps be liberalized. Higher education is continuing to expand, mostly in an unplanned manner, without even minimum levels of checks and balances. Many universities are burdened with unmanageable number of affiliated colleges. Some have more than 300 colleges affiliated to them. New universities are being carved out of existing ones to reduce the number of affiliated colleges. Under these circumstances, our dependence on autonomy as the means to improve quality of such a huge size of higher education system poses serious challenges.

Balanced Scorecard Dissertation
Balanced Scorecard Dissertation

Venkatesha (2003 as cited in Venkatesh & Dutta, 2007) compares and finds a lot of differences in the work-culture between the teachers of postgraduate departments of universities with those of colleges. In degree colleges, teaching is the only mandate and pertaining to this, teachers have to improve their knowledge in teaching by undergoing orientation and refresher courses, summer-camps, workshops and participating in seminars/symposia from time to time. On the basis of these activities, teachers are considered for promotion to the next cadre. Some college teachers, who are interested in research may conduct research and publish papers. Research activity of college teachers is invariably out of their natural interest rather than a yardstick for their promotion unlike in universities. Once a university teacher acquires a PhD degree, many university teachers lapse into routine teaching assignments. Because of this type of dual role of teaching and research without defined guidelines, university teachers can neglect either teaching or research, or sometimes both. In Indian universities, teachers are promoted based on their research publications, books written, papers presented in seminars/symposia, membership of various academic societies, etc., but much importance has not been given to the teachers’ contributions towards teaching.

This type of situation in our universities tempts many teachers to neglect teaching and take up some sort of research mostly uneconomical, unproductive, outdated and repetitive type and venture into the business of publishing substandard research articles. The system normally recognizes quantity like number of PhD students guided, number of papers published, etc. rather than quality of the research and publications. Unfortunately, no concrete method has been developed so far to judge the teaching and research aptitude of university teachers. Some academicians argue that both teaching and research cannot be done at the same point of time. However, it is generally thought that education (even from undergraduate level) and research should coexist to complement each other. Special emphasis on assessment-oriented teaching and research will impart a new dimension to the role of the teacher.

Commenting upon the inherent contradictions in higher education and research in sciences, Chidambaram (1999) indicates towards a peculiar situation existing in the country. Wherein on one hand a large number of people are being given post-graduate degrees in science disciplines, without an appreciation of their possible future careers; on the other hand, there is a considerable reduction in the number of such talented and motivated students seeking admissions to science courses. The dilution of resources that this irrelevant training represents has the consequence of deteriorating the quality of the training for the really talented people.

Staying on with science education, Narlikar (1999) identifies – poor methodology of science teaching that encourages rote learning, ill-equipped teachers and labs, lack of inspirational and committed teachers, poorly written text-books, peer pressure to join lucrative courses; as some of the causes of the current sickness that has afflicted the science scenario. The romance of science and a proper and correct image is just not getting projected by our institutions or the universities. In his opinion this unfortunate trend can be reversed if the society displays a will and creates an environment to cure the causes of the deeply entrenched malady.

Altbach (2005) provides an overview of the ailments afflicting the higher education machinery in India when he says that India’s colleges and universities, with just a few exceptions, have become “large, under-funded, ungovernable institutions”. Many of them are infested with politics that has intruded into campus life, influencing academic appointments and decisions across levels. Under-investment in libraries, information technology, laboratories, and classrooms makes it very difficult to provide top-quality instruction or engage in cutting-edge research. Rising number of part-time and ad hoc teachers and the limitation on new full-time appointments in many places have affected morale in the academic profession. The lack of accountability means that teaching and research performance is seldom measured with the system providing few incentives to perform. He goes on to say that India has survived with an increasingly mediocre higher education system for decades.

Now as India strives to compete in a globalize economy in areas that require highly trained professionals, the quality of higher education becomes increasingly important. So far, India’s large educated population base and its reservoir of at least moderately well-trained university graduates have permitted the country to move ahead. He concludes that the panacea to the ailments of Indian universities is an academic culture based on merit-based norms and competition for advancement and research funds along with a judicious mix of autonomy to do creative research and accountability to ensure productivity. He rightly says that “world class universities require world class professors and students – and a culture to sustain and stimulate them”. He recommends a combination of specific conditions and resources to create outstanding universities in India including sustained financial support, with an appropriate mix of accountability and autonomy;  the development of a clearly differentiated academic system – including private institutions – in which academic institutions have different missions, resources, and purposes,  managerial reforms and the introduction of effective administration; and , truly merit-based hiring and promotion policies for the academic profession, and similarly rigorous and honest recruitment, selection, and instruction of students.

Misra (2002) identifies “management without objectives” as one of the key reasons of the downfall of the Indian university system. He highlights the need for – adopting a functional approach in our universities; periodic academic audits; greater autonomy and accountability in all spheres of operations; open door policy welcoming ideas and people from all over; administrative restructuring decentralizing university departments and schools; and making education relevant to our people and times; as the basic steps in improving the Indian universities. The above discussion establishes the need for accountability based autonomy and being consistently relevant to the context in which the Indian universities (or any other university anywhere for that matter) may exist. This creates the backdrop for adopting the basic tenets of strategic management in the paradigms of operating our universities. The balanced scorecard is one such basic tool that can certainly be of assistance in this rationalization process.

Application of Balanced Scorecard at Institutes of Higher Education

There are a number of universities around the world that have implemented the Balanced Scorecard. They have modified the perspectives to suit their needs.

Balanced Scorecard at the University of Minnesota

Their mission statement is to prepare students to become managers and leaders who will add value to their organizations and communities by:

  • offering high quality graduate and undergraduate programs;
  • conducting valuable basic, applied and pedagogical research; and
  • Supporting regional economic health and development.

Based on this mission, The BSC strategy map was developed with three overarching and complementary strategic themes:

  1. Teaching themes – selection and retention of faculty who are focused on teaching excellence to gain an increased market share of the educational market.
  2. Research themes – identification of college faculty as dedicated research colleagues desiring to be champions in their chosen field.
  3. Outreach themes – use of college faculty to support regional education and other intellectual support.

The BSC strategy map for the college uses a generic architecture to describe each strategy. In this way, each measure is rooted in a chain of cause-and-effect logic that connects the desired outcomes from the strategy with the drivers that will lead to the strategic outcomes.

Linkages between Balanced Scorecard Perspectives

The strategy map illustrates how intangible assets are transformed into tangible customer and financial outcomes. Even though the number of measures in each perspective varies, it is important that each measure align with the organization’s strategy. The measurements used are adapted from Bailey et al. (1999) but were tailored to apply to the college of business.

Financial perspective: The financial perspective contains the tangible outcomes in traditional financial terms.

Stakeholder perspective: Value propositions are created to meet the needs of each stakeholder. These value propositions are those that hold the greatest value to each stakeholder and represent outcomes of the college’s internal processes. Satisfactory realization of the value propositions translate into financial outcomes outlined in the financial perspective.

Internal process: The internal process perspective describes the critical internal processes that drive the stakeholder satisfaction and the college’s financial outcomes. Internal business processes deliver the value proposition to stakeholders and drive the financial effectiveness.

Learning and growth perspective: The learning and growth perspective identifies the sets of skills and processes that drive the college to continuously improve its critical internal processes. The learning and growth areas that feed into internal processes subsequently drive stakeholder satisfaction and ultimately financial outcomes.

University of California, San Diego

Chang and Chow (1999) indicated that in 1993 the University of California, San Diego’s senior management launched a Balanced Scorecard planning and performance monitoring system for 30 institutional functions using three primary data sources: 1) UCSD’s internal financial reports; 2)National Association of College and University Business Officers benchmarks; and 3) faculty, staff and student customer-satisfaction surveys.

This exercise was conducted under the framework of the university’s vision, mission, and values. Reported benefits and outcomes to date have included reorganization of the workload in the vice chancellor’s area, revision of job descriptions with performance standards, introduction of continual training for user departments, ongoing customer assessments and increased responsiveness to communication needs through the use of technology. O’Neil and Bensimon (1999) described how a faculty committee at the Rossier School of Education of USC adapted a Balanced Scorecard model originally developed for business firms to satisfy the central administration’s need to know how they measure up to other schools of education. The format of the Balanced Scorecard adapted by the faculty included the following four perspectives:

  • Academic management perspective (How do we look to our university leadership?);
  • The internal business perspective (What we excel at?);
  • The innovation and learning perspective (Can we continue to improve and create value?);
  • The stakeholder perspective (how do students and employers see us?).

O’Neil and Bensimon (1999) indicated the following favorable results from the academic scorecard implementation:

  • Easier approach for the university to accomplish its strategic goals.
  • A systematic and consistent way for the provost’s office to evaluate performance reports from various schools and departments.
  • The scorecard established common measures across academic units that have shared characteristics.
  • The simplicity of the scorecard makes it easier for academic units to show how budget allocations are linked to the metrics of excellence.

University of Wisconsin

The University of Wisconsin—Stout provides a distinct array of programs leading to professional careers focused on the needs of society. Some unique characteristics include the following:

  • More than half of the 27 undergraduate programs are not offered at any other campus in the University of Wisconsin system, and several are unique in the nation;
  • The programs emphasize business-relation processes and staying current with fast-changing technology and market dynamics; and
  • Traditional instruction is reinforced by extensive technology laboratories and industry partnerships.

The university’s programs also include the following key student requirements and corresponding measures or indicators:

  • Cutting-edge, career-oriented programs (number of new programs, placement success);
  • High-quality, active-learning education (percentage of lab instruction and faculty contact);
  • Effective student support services (retention, academic success, student satisfaction); and
  • Related employment and academic or career growth opportunities (placement in major, graduate success, employer satisfaction; (Karathanos and Karathanos, 2005).

Kenneth W. Monfort College of Business

The Kenneth W. Monfort College of Business (2004) at Northern Colorado’s mission is to deliver excellent undergraduate business programs that prepare students for successful careers and responsible leadership in business. Some of its unique characteristics follow:

  • Pursuing excellence in undergraduate-only business education, uniquely among its regional and national peers;
  • One of five undergraduate only programs nationally to hold Association to Advance Collegiate Schools of Business accreditations in business and accounting; and
  • Commitment to a program strategy of high-touch, wide-tech, and professional depth to make the college of business a value leader compared with its competition.

In addition, the programs have the following key strategic objectives and corresponding measures or indicators:

  • Build a high-quality student population (average ACT score of new freshmen and average transfer student GPA);
  • Maintain high-quality faculty (overall percentage of faculty academically and or professionally qualified);
  • Maintain adequate financial resources (available state funds and available private funds); and
  • Develop market reputation consistent with program excellence (college of business media coverage; Kenneth W. Monfort College of Business, 2004).

Applicability and Design of BSC in the Indian Environment

Review of extant literature indicates that business organizations, as well as academic institutions, are fundamentally rethinking their strategies and operations because of changing environment demanding more accountability. The BSC is described as a novel approach to face these challenges (Dorweiler and Yakhou, 2005). The strategies for creating value in education need to be based on managing knowledge that creates and deploys an organization’s intangible assets. The scorecard defines the theory of the business on which the strategy is based hence the performance monitoring can take the form of hypothesis testing and double-loop learning. A good BSC should have a mix of outcome measures and performance drivers (Kaplan and Norton, 1996). Marketing and communication strategies vis-a` -vis institutions of higher education assume greater import as the image portrayed by these institutions plays a critical role in shaping the attitudes and perceptions of the institution’s publics towards that institution (Yavas and Shemwell, 1996). In India, for instance, institutions of higher education are becoming increasingly aggressive in their marketing activities. In this increasingly competitive environment, the marketers of higher education should be concerned about their institution’s positioning and image.

The marketing of educational programmes has attracted attention of researchers who have identified research-based planning and programme development, relationship marketing and non-traditional methods for education delivery as key areas for future focus (Hayes, 1996).

Some of the reasons for marketing of higher education gaining importance in the management of higher education programs and institutions are – the founding missions being found increasingly ill-suited for the demands of the marketplace; budgets becoming excruciatingly tight while departments and programmes clamoring for more support; the recruiting and fund-raising arenas having become extremely competitive as well as hostile; higher education being more and more dominated by many largely undifferentiated colleges and universities offering similar programmes; demographic shifts in the operating environment marked by diminishing numbers of traditional full-time students, fewer full-pay students and fewer residential students; escalating demand for adult higher-education and continuing and special-focus programmes; and last but not the least, the sharp rise in the cost of higher education (Kanis, 2000). In India too recently as liberalization has progressed, although in fits and starts, governmental support to institutions of higher learning in the form of grants and subsidies, is drying up. The movement of self-sustenance is gaining force. This also adds up and forces managers of educational institutions, especially in the public domain, to re-think their mission and strategies (Venkatesh, 2001).

Ruben(2004) says that students are affected not only by the teaching environment but also by the learning environment, which includes facilities, accommodation, physical environment, policies and procedures, and more importantly, interpersonal relations and communication and from every encounter and experience. Hence the faculty, staff and administrators have to set good examples by their deeds and recognize that everyone in an institution is a teacher. A wide range of stakeholders and their diverse claims/interests and objectives have to be addressed in the context of the institution of higher education in India. The customer perspective is supposed to aim at the immediate needs and desires of the students, parents, faculty and staff, alumni, the corporate sector and the society at large. It is relevant here to state that looking at students solely as customers becomes a sort of a misnomer as they are also (if not only) the “throughput” that eventually gets processed in the institution and ends up accepted (or rejected) at the verge of graduation. Hence the corporation and society at large should be considered as the real customers.

The second component involves the internal business or operations perspective. This inherently focuses on the implementation and delivery of the academic, research and other programs by the institution and the degree of excellence achieved in the same. The innovation and learning perspective of the organization looks at the development of faculty and staff as a precursor and foundation to excellence in program design and delivery. Finally, the fourth component constitutes of the financial performance and its measure. It is clear in the Indian context especially, that the government although eschews the “profit” word for educational institutions, however is emphasizing more and more on self-sustaining programs and institutions as a desirable outcome of the strategies and models envisaged and pursued by universities and colleges. Surpluses are important as only then institutions can look for achieving greater autonomy in designing and delivering ever new courses and programs that are relevant to the population in context, but expensive to implement.

Kaplan and Norton (1996) say that companies are using scorecard to:

  • Clarify and update vision and strategic direction;
  • Communicate strategic objectives and measures throughout the organization;
  • Align department and individual goals with the organization’s vision and strategy;
  • Link strategic objectives to long term targets and annual budgets;
  • Identify and align strategic initiatives;
  • Conduct periodic performance reviews to learn about and improve strategy; and
  • Obtain feedback to learn about and improve strategy.

All the above benefits are relevant in the context of the institutions of higher learning in India. As Pandey (2005), indicates – “a good aspect of BSC is that it is a simple, systematic, easy-to-understand approach for performance measurement, review and evaluation. It is also a convenient mechanism to communicate strategy and strategic objectives to all levels of management”. According to Kaplan and Norton (2001) the most important potential benefit is that BSC aligns with strategy leading to better communication and motivation which causes better performance. Considering the linkages in service management profit chain (Heskett et al., 1994 cited in Kaplan and Norton, 2001) we can say that the potential benefits can be:

  • Investments in faculty and staff training lead to improvements in service quality;
  • Better service quality leads to higher customer (stakeholder) satisfaction;
  • Higher customer satisfaction leads to increased customer loyalty; and
  • Increased customer loyalty generates positive word of mouth, increased grants/revenues and surpluses that can be inserted into the system for further growth and development.

With growing popularity for Indian Engineers and graduates in job employment abroad, India has to build world-class quality into higher education. In fact, a critical test of a scorecard’s success is its transparency: from the 15-20 scorecard measures, an observer is able to see through the organizations corporate strategy (Kaplan and Norton, 1993).

Conclusion

In this paper we propose that in an environment that demands increasing accountability from business schools, the BSC Approach offers a promising and valuable tool for implementing a strategic performance management system in institutes of higher education. The top management should focus on strategic themes instead of merely relying on formal structures in institutes. The strategy of the institute/university should be communicated to everyone in a easy to understand language. The roles of teachers, administration staff, deans and others should be clarified in advance so as to implement Balanced Scorecard. We propose that BSC will improve communication in institutes as well as work as feedback mechanism for all concerned. This will result in flawless communication and relatively easy implementation of institutional strategy. We also propose to use BSC for balancing internal as well as external perspectives, as so to foster institutional performance.

So, if Higher education institutions apply the BSC to their organization they will be able to position their students and programs positively in the minds of the international audience.

References

Altbach, P.G. (2005), Higher education in India, The Hindu, Tuesday, 12 April.

Armitage, H. and Scholey, C. (2004), Hands-on Scorecarding, CMA Management, 78 (6) 34-38.

Bailey, A., Chow, C. and Haddad, K. (1999), Continuous Improvement in Business Education: Insights from the For-Profit Sector And Business Deans, Journal of Education for Business, 74 (3),165-80.

Bennis, W., O’Toole, J. (2005), How Business Schools Lost their Way, Harvard Business Review, May, 96-104.

CABE (2005), Autonomy of Higher Education Institutions, Department of Secondary and Higher Education, Ministry of Human Resource Development, Government of India, New Delhi.

Chang, O. H., & Chow, C. W. (1999). The Balanced Scorecard: A Potential Tool for Supporting Change and Continuous Improvement in Accounting Education. Issues in Accounting Education, 14, 395–412.

Chidambaram, R. (1999), Patterns and Priorities in Indian Research and Development, Current Science,77 (7), 859-68.

Cullen, J., Joyce, J., Hassall, T., & Broadbent, M. (2003). Quality In Higher Education: From Monitoring to Management, Quality Assurance in Education, 11, 1–5.

Dorweiler, V.P. and Yakhou, M. (2005), Scorecard for Academic Administration Performance On The Campus, Managerial Auditing Journal,20 (2), 138-144.

Hayes, T. (1996), Higher education marketing symposium wins top grades, Marketing News, 30 (3), 10-11.

Holstein, W.J. (2005), Are Business Schools Failing the World?, The New York Times, 19 June,  BU 13.

Kanis, E. (2000), Marketing in Higher Education is a Must Today, Business First, 16 (25), 55.

Kaplan, R. S., & Norton, D. P. (1992). The Balanced scorecard—Measures that drive Performance. Harvard Business Review, 70, 71–79

Kaplan, R.S. and Norton, D.P. (1993), Putting the Balanced Scorecard to Work, Harvard Business Review, September-October, 134-42.

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Project Management Constraints

Project Management Constraints

Efficient project management has become one of the most popular tools for both private and public organizations as project handlers have sought ways to improve their operations. Project managers seek to achieve success across all sectors when handling a project. Technological advancement, new product development and streamlining of business perspectives are examples of targets set by project managers. During the inception of a project, there is the careful planning, organizing and prioritizing available resources achieving the desired outcome or the projected results in the least. At the inception stage, a project seeks to achieve the set target within minimal time while using the least amount of resources. However, every project manager faces challenges during the implementation of a project. Such challenges arise from the presence of different constraints within project management.

Background of the study

Even though a project manager prefers to achieve success all through, there are instances where resources allocated become minimal. Timeframe awarded to a project may also exceed leading to the scope of a project taking a new approach. Project constraints hinder project success hence the need to address each constraint. Despite the fact that project constraints are not consistent, schedule, resources and quality seem to be popularly present hindering success. The omnipresence of these three constraints has led to the name triple constraints, and this research study will address these constraints discussing how they affect project success (Kendrick, 2009).

Making a project successful within the triple constraint proves to be a challenge for every project manager. Regardless of whether its quality, resources or time, the three elements have the notion of working in tandem manner. Significantly, the absence or scarcity of one of these elements adversely affects the triumphant completion of projects. An efficient project manager comprehends that the main key of achieving success for a project entails the balancing of the triple constraints (Dobson, 2004).

Research methodology

The research methodology involved entails a presenting approach adopted within the study. Careful analysis of the triple constraints will be presented. The analysis will involve illustrations of various ways in which such project constraints affect the successful completion of a project. The approach taken will require meeting the expectations of the constraints of project management. The approach taken requires meeting the expectations of constraints in project management. Such entails the researcher to espouse a comprehensive research methodology enabling the understanding of project constraints adverse effects.

Approach

In order to remain consistent with this research, there is the approach of extensive methodologies adopted to assist readers in achieving the required results. There were appropriate considerations of projects that have failed or succeeded. Essential to this study, it is significant for a project manager to identify basic project management aspects in order to determine the purpose of a project. Such allows the understanding of project constraints leading to identifying ways of overcoming the constraints (Russell, 2011).

Project Constraint – Quality and Scope

Functions, features, content and data all constitute the scope of work to be done for any project. In order to achieve quality for any piece of work to be done, a project manager is required to provide a precise and specific statement identifying the desired final result of the project undertaken (Dobson, 2004). Every project should have a well-defined and articulate scope of work. However, it is essential to note that the scope of a project is dependent on the output quality. The output quality is essential since it ensures that a project scope is achievable.

Notable to this research, project scope requires effective planning, use of available resources, and proficient management techniques achieving the set target. Failure to adhere to such aspects will frequently lead to project failure. Mandatory for any project manager, changing the scope halfway through the project is suicidal, and often leads to project failure. Nonetheless, every project requires minor changes that are permissible during implementation in order to ensure success (Kendrick, 2009).

The quality of work done is dependent on a project manager’s understanding of project outcomes. Prior to proceeding on with a project, the client will usually have issued instructions on the expected outcome of an assignment. Nonetheless, several prospects of divergence will ensue regarding the necessity to stabilize around the existent resources. A competent project manager has the ability, and resources to cultivate success among projects undertaken. Organizations need to realize the significance of succeeding in projects as these increases their clientele base.

The project manager should have subdivisions that enable tasks undertaken within an organization (Goodpasture, 2004). There are assorted personnel dealing with the diversified projects. For instance, the manager is responsible for overseeing that the objective of the project is realized. The manager is also responsible for directing vast and significant decisions to avoid project failure. Executing this in a resourceful manner requires the program manager to ensure discipline and order is present among supervisors and other member staff.

Project Constraint – Time and Scheduling

Being the primary consideration, time management should be analyzed to the smallest detail. A competent project manager realizes the essentiality of analyzing the required time, and component to ensure successful completion of a project (Dobson, 2004). After careful analysis, each of the components is broken down in order to assign specified amount of time for handling a particular task. A project undertaken requires such aspects since they allow the estimation of a period with which the project can be undertaken. Apart from the estimation of the project period, resources required are identified to ensure success.

Despite the three constraints having a correlation to one another, time management within a project is seen as a diverse unit. Such view is alongside the realization that proper execution of any project within the allocated time is dependent on circumstances and efficient techniques. Project failure may occur despite the project manager having allocated a specific timeframe for each task. Failure can occur should there be exact resources to handle a project (Goodpasture, 2004). Abrupt emergencies may require the use of more resources in handling scrupulous tasks, leading to limited resources. The limitations of resources will often lead to an extended time-frame for a project risking failure (Russell, 2011).

Project Management Constraints
Project Management Constraints

Most project failures have resulted from undermining time allocated to different tasks. However, this often occurs when a project manager is unfamiliar with tasks undertaken. Failure of a project will frequently arise from unexpected events, risks and uncertainties. If the project manager is deemed to be inexperienced, the rise of potential risks will prolong the previously allocated time. Present in most projects undertaken, there ought to be an effective organization, proper restructuring and estimation techniques. Such will ensure that time is managed in an effective manner reducing the risk of failure for undertaken projects.

Project constraint – Cost and Resources

A competent project manager realizes that success of a project is compliant with the readiness and available resources. Even though time has been allocated to different tasks, it is also essential to allocate needed resources to complete the tasks at hand. However, providing the needed resources requires a project manager to have the capital needed to acquire the necessities. Such aspects require wholesome efforts on all levels of accountability. Ranging from casual workers, permanent employees, middle and top level managers, successful project completion requires collaborated efforts from parties involved. Realizing that resources like manpower are the most essential in achieving success, a resourceful project manager ought to ensure that the needs and requirements of labour present is met. Resources pose as the greatest risk in project failure (Wysocki, 2011). There are variables present like rate of materials, machinery and equipment, labour expenses which determine success or failure of a project.

Depending on market prices, the rate of materials seems to be at a constant change requiring the individual assigned to be per with the new prices. The new prices of different prices lead to subsequent changes in quality. There ought to be available capital to purchase high quality materials. For instance in building constructions, it is paramount to purchase quality materials, and failure to do so has a definite chance of project failure resulting from building collapse (Goodpasture, 2004). The purchase of machinery and equipment is also determined by price ranges within the market. However, in order to ensure success, there needs to be the use of high quality machinery and equipment.

Project running is comparative to embrowning a project plan comprehensive of the scrupulous objectives and missions. In addition, there ought to be a quantification of the assets required, the accounts should be indomitable within a timeline that is set. There is the existence of a variety of gear that is essential in making projects undertaken to be successful. The responsibilities of the manger should be as minimal as possible to avoid exhaustion from too much pressure to perform. Essential to this study, it is essential to identify different project phases and measure the success. However, the project manager should ensure that the manpower available is well taken care of since they are the success of any organization.

Conclusion

The prioritization of the constraints within a project is the foremost task needed to be undertaken by a project manager. In addition to the development of strategies in the management of multiple constraints, it is also instrumental that a project manager effectively maintains communication with the client. This ensures that they are both on the same page and that the client’s expectations are being met. Additionally, any competent project manager must ensure that they have a thorough knowledge of project management skills. This greatly assists them in being able to effectively and efficiently cater for any unforeseen project constraints. The act of balancing a project’s responsibilities is facilitated by the project manager’s ability to chart, analyze and implement it. This is because the project manager is aware of and has experience with a project’s concurrent risks.

References

Dobson, M, S. (2004). The Triple Constraints in Project Management. Arizona: Management Concepts.

Goodpasture, J, C. (2004). Quantitative methods in project management. Arizona: J. Ross Publishing.

Heldman, K. (2011). PMP Project Management Professional Exam Study Guide. USA: John Wiley & Sons

Kendrick, T. (2009). Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project. Phoenix: AMACOM Div American Mgmt Assn.

Russell, D. (2011). Succeeding in the Project Management Jungle: How to Manage the People Side of Projects. Phoenix: AMACOM Div American Mgmt Assn.

Wysocki, R, K. (2011). Effective Project Management: Traditional, Agile, Extreme. New York: John Wiley & Sons.

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