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WhistleBlowing – Origin, Meaning, Problems Involved in it.

What is Whistle Blowing?
Correcting a wrong action in any place, whether at work, or any other place, is a part of a person’s responsibility to society. Whistleblowers take such role, which is a major part of correcting the wrong practices performed at the work place. 

Whistle Blower
Simple Definition?
Whistle blowing is the “disclosure by organization members of illegal, immoral, or illegitimate practices under the control of their employers, to a person or organizations that may be able to effect action”

Origin of the word “Whistle Blowing”?
Where did the word Whistle Blowing come from? The term is derived from the act of a referee in a sport event where the referee blows the whistle to stop the action, usually on account of an illegal play.

Problems face by a Whistle blower/ Ethical Issues involved in WB?
Although the act of whistle blowing might be morally justified and there are whistleblower protection acts, whistleblowers often face retaliation from employers when they attempt to stop inappropriate, actions.

Should an employee report the wrong doing (whistle blow) keeping his/her career at stake?

Yes, it’s the employee’s duty to report to the concerned person regarding any illegal actions is being carried by any person(s) and should curb such actions. 
For example, it is a nurse’s moral duty to expose her boss (doctor) if she finds out that her boss is conducting unnecessary surgery to enrich himself.
Undoubtedly, the nurse might suffer harassment and even end her career because she whistleblowed. By whistle blowing, she might have saved the life of an individual who might have died from a complication involving an unnecessary surgery.

Repercussions involved in Whistle blowing with suitable examples.

Whistle blowing in Public Sector:
The Public Sector is more bureaucratically structured rather than the private sector. The public sector are all kinds of from federal to local government agencies.

A well-known whistleblower, quoted “if you have God, the law, the press and the facts on your side, you have a fifty-fifty chance of defeating the bureaucracy” - Hugh Kanfman.

One of the reasons why whistleblowers have difficulty finding a job is that they tend to have a special position which for the most part is not available in the same industry or other industries.

Case Study Example: Jim Boyd, who has twenty years of experience as an associate with Senator Thomas Dodd got fired after he blew the whistle on the Senator. Boyd exposed Senator Dodd for misusing over $200,000 of campaign money for personal expenses. Despite months of searching,

Boyd had difficulty finding a job for two reasons.

i)     No Senator wants to hire him after he exposed a well known Senator.
ii)   His position’s turnover rate in the political arena is very low, and thus it was very difficult finding an open spot.

Most of the times the employers put the whistleblower’s name on a blacklist and making them difficult in finding a new job in same field.  This will terrify the employees and force them not to expose any wrong doing and prevent themselves by not hitting the blacklist.


Whistle blowing in Private Sector;
In this sector usually either matrix or team structure is followed.  Although in the private sector changing careers will be easier than in the public sector, those individuals who blew the whistle still have difficulty finding re-employment.
Whistle Blowing

Case study Example: For instance, Ronald Brown, a stockbroker, complained of illegal conduct at Wheat First. Mr. Brown alleged that brokers in the firm excessively used clients’ accounts without their authorization (Nash, 1999). Mr. Brown was harassed, fired, and black-listed after he blew the whistle. Most security firms would not hire him after he blew the whistle at Wheat First because the information he revealed to the outside world harmed the company financially.


Another example involves a top executive, Mark Whitecre, who got fired from Archer Daniels  Midland Company (ADM) after he had made secret tapes for the FBI regarding the company’s price fixing (Kelley, 1996). The company not only fired and black-listed him, it accused him of embezzling nine million dollars.

Other Factors for a whistleblower not getting a Job:
·         Since a whistleblower is usually old, age is another important factor in prohibiting re-employment of a whistleblower.
·         Employers are reluctant to hire whistleblowers is because their action is seen as a breach of loyalty.
·         Some of the whistleblowers who are fired sue their past employer for unfair termination. Instead of looking for a job, they await a legal resolution hoping to regain their previous job.

Possible solutions from the Employers for the Whistle Blowing Issues:
The Whistle Blowing Policy has to be build in such a way that apart for strengthening the whistleblower laws are
·         Employees should be encouraged to communicate their ethical concerns internally.
·         Employees need to believe that their concerns will be taken seriously.
·         Employees need to feel that they will not suffer any retaliation for their action.

Tag/Punch Lines based Q&A Business Quiz

 

Here are few questions based on Tag Lines/Punch Lines Q&A of the company usually asked in Business Quizzes.

Putting News First  BBC
What makes you Special?   IBN
Spoil Yourself  TATA Indigo
Spread The Smile  Sunfeast
Can’t live without  Live-in-Jeans
No More Bounds  SONY Vaio
Shape your World  ZEN Estilo
Totally Integrated Automation  SIEMENS
Do it Yourself Holidays  SOTC Holidays.
Deewana bana de  Set Max
Play Safe  Bisleri
Think Again  National Geography
It’s more than just oil  Castrol Oil.
Kal Par Control  AVIVA life Insurance
It’s the way you make me feel  Monte Carlo
Makes a Life little Easier  Electrolux
Always Game   HERO Honda Karizma
New Improved Life  Videocon                                                                  
You’re the fuel  Maruti Swift
Distinctly Ahead  Bajaj Krystal
Turn Work Into Play  Motoming
Dikhane ko Jee Kare  Greenlam Laminates
Be Life Confident  Bharat Life Insurance
The Engineer’s Choice  UltraTech Cement.
Zindagi Se Ek Kadam Aage  Kotak Mahindra Life Insurance
Mera Farz  ING Vysya Bank
Style it Soft  Parachute Hair Gel Cream.
When you’re sure  Business Standard

Let me know how it is, will post the other sets of questions.

The Posted is Submitted by Rajeev Jayaswal from Delhi.

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Its No More HeroHonda, Now It's Hero and Honda.


Hero and Honda Group has tied to do business in India in the year 1984, now after an 27years Joint venture between BM Munjal-owned Hero Group and Japanese origin Honda Group has come to end.  One of the successful association and continued to be an market leader in Two wheelers in India both companies has decided to split up.  The news itself has discouraged the investors to rest their capital in this stock as a fall is been observed in the stock price on the day itself when the news broke out.
Hero-Honda Stock Fall down From December 2010- April 2011
[More Info: 5lakhs Shares were traded on an single trading day which is 8 times th
e normal of the particular stock.
9% down in stock price of Hero Honda Motors India Limited]

Case Study: Consequences of this Hero-Honda De-merger/ Joint Venture Split Up:
At the time of Split up Honda Group was holding 26% stake in the Hero-Honda Group which for approximately  $1.2bn.  The company is function in the same name for few more months until Hero group makes it own identity in Two-wheeler market.


Honda Group Logo

Impact on Honda Group:
First of all lost its Indian partner. But where as the company(Honda Group) is function in the country for past few years and made an strong presence though having less market share. So it doesn't need to create a new Identity/Brand awareness among the people and can directly target its customers and attack its competitors(Hero Group, TVS, Bajaj Auto etc) with its Competitive Advantage.
Honda Group has Advantages even after ending up the Joint venture with Hero Group. Few are,

  • Got Brand Identity.
  • Technology as an Competitive Advantage.
  • Market Presence in this huge Two-wheeler market.
  • Good Reputation/Goodwill as a brand.
But the company doesn't have a strong production and distribution channels compare to its competitors because of which it only takes orders and then produce a vehicle. 

Hero Group Logo
Impact on Hero Group after the Split up and current situation:

The company has posted a 16.2% decline in Net Profit (Quarter-4 ended March 2011) this is because of two reasons.
  • Because of rising Input cost, as Raw materials like steel, non-ferrous, and Rubber based components are not showing any signs of easing and
  • Higher Advertising spending during the World Cup Cricket.
Direct Impact:
The Hero Group has to pay total Royalty of Rs.2479 crores to Honda Motors (which includes Rs.550 crore for export license) for the purpose of producing, Selling and Servicing current products.
The company has roped Law and Kenneth(L&K) as an Creative partner to launch and establish a New Brand for the company.
Company is in search for hiring an International Brand and Innovator Specialist.

Strengths of Hero Group:
  • Market Leader in Two wheeler category.
  • Strong Distribution channel across the length and breadth of the country.
  • Huge Production units.
    • The company has increase its production capacity this year from 5.5Million to 6.15Million units with an initial investment of Rs300crores.
  • Brand Loyal Customers( this acts also like an threat, because people now are familiar with the name HeroHonda rather than Hero)
  • Good Product Mix as an Portfolio.
  • Enriching its R&D capabilities as an part of its long term plan.
Huge Opportunity: The company has got an huge opportunity to remain as an Market leader for longer time by holding majority of the Market share.  In addition because of the Increase of the Bank Interest rate the sales of the Car has been decreased and an increase in the sales of Two-wheelers/bikes is expected.

Because most of the Cars are bought on Equal Monthly Installment(EMI) basis and have to opt for an loan, but whereas  for bikes 70% of purchases are done through Cash payments. This will create and huge opportunity to grab it. 

8 Major Technological Trends En-cashed by Businesses.

Technology is the key of innovation. With the help of emerging technologies, many companies are gaining benefits.


DISTRIBUTING CO-CREATION 
In order to use the talent of innovators outside the boundaries, they have to use the technology and internet as a means of reaching them and getting the talent required and yet it can get the required work done with less cost. Companies delegate control to outsiders –cocreation for the development of new products and innovations and work in the form of networks. 
Example: Information goods created by group of specialists such as software are an example of this kind of decentralized innovation.


USING CONSUMERS AS INNOVATORS
 Internet promoted by web 2.0 has been a wide platform for interaction among users like consumers with organizations, organizations with partners, etc. and they actively participate in those interactions. This can be used by the companies for their economic benefits. Using customers in the internal function as designing, testing, etc will help the companies to get better insights and the company should ensure to fulfill their needs and their expectations.


TAPPING INTO A WORLD OF TALENT
Acquiring the best talent for each and every activity is difficult. So the work can be given to those talented people or experts who are specialized in those areas, by reaching them in new ways. Internet and other tools have made this easier with low costs for the companies. Any activity that has to be done by experts can be outsourced with specific requirements by the customers and it is done.
Example: TopCoder Company
 
EXTRACTING MORE VALUE FROM INTERACTIONS
To increase the productivity and to make tacit work more effective the differences should be reduced between transformational and transactional employees.  Technology tools such as video conferencing, virtual teams, etc. promote this. It helps in creating value and interactions in smarter way and is difficult to imitate.

MANAGING CAPITAL AND ASSETS
Almost many daily based activities and other critical activities are automated in the organizations. There is no human intervention needed for these tasks. Organizations, governments, companies all are automating the processes. Websites, databases etc. and retailers like Wal-mart, metro use digital technologies like RFID (radio frequency identification). These technologies help to operate the activities at lower costs and also managing them is also easy.   Companies like amazon.com allow other retailers to use its logistics and distribution services.

LEVERAGING INFORMATION IN NEW WAYS
The first trend in this area is putting more science into management. With the help of technology, the large amount of data is being accessed by managers with the help of new management techniques. This information is used for smart decision making, for competitive advantage and for new business models. 
Google, Intel, CEMEX are examples of this.

MAKING BUSINESSES FROM INFORMATION 
 Information collected from various sources is raw data for new business opportunities. The internet has bought transparency to many markets.

These trends can be used as emerging patterns in various business activities as per the opportunities to shape the business better. 

Steps involved in Activity Based Management (ABM)


Click here to know about, Activity Based Management (ABM) and its Strategic Implications.


The steps necessary for process view of Activity Based Management (ABM) are as follows.
  • First step is to develop a clear mission statement.
  • Second one is to determine the core processes and the major cost objects.
  • Next step is to identify the supporting processes and then form the process teams.
  • In the fourth step, the teams should be formed in such a way that the employees should have required skill set to perform the task given to them.

Now, the strategic objectives of each process should be defined. After that long term goals such as operating objectives should be set. The main activities in each process have to be identified. Each process or activity center should be measured with the help of performance indicators which may financial or non-financial measures. After measuring, the cost drivers for each process should be identified and the necessary measures should be taken. When a new system like Activity Based Management (ABM) is introduced, care should be taken that employees understand the system and are well oriented which result in desirable output.

ABM principles can also be used for budgeting, resource allocation, performance evaluation, pricing etc. It gives accurate measurement which is relevant for taking managerial decisions. 

Activity Based Management (ABM) and its Strategic Implications.

In the process of designing and implementing new strategic management initiatives, many organizations have virtually ignored the cost management system.  Activity-based management is the modern accounting system which is consistent with the new initiatives like reengineering. It is an accurate management accounting system whose main focus is on business process. It results in a valuable output. There are few steps to be followed to design and implement Activity- based management (ABM).

Activity-Based Accounting System is also called Activity-Based Costing. This accounting system is similar to Business Process Reengineering (BPR) in nature. Business process reengineering is a management tool which is used to obtain improvement in performance measures such as cost and quality. In this process the whole aspects of process are redesigned and its main focus is on processes rather than functional tasks where as activity-based costing along with that have an additional feature that is analysis of the cost management system. It is a system where we can accurately find the cost of full services and products, cost of core activities, and other cost objects.

Activity-based management consists of two view points.
One is Cost View that is it is an accurate accounting system and second one is Process View which is a performance evaluation tool. The advantage with this is same information can be used for accomplishing both the goals that is both the views. It is more concerned with planning and controlling. It consists of two stage process. 
  1. In the first stage, costs of the resources are assigned to activities and after the tasks are performed the outputs are grouped into activity centers.
  2. In the second stage, the costs of activity centers are traced to cost objects. In both the stages, the bases of assigning the costs are cost drivers.

Study: Human Resource Management, Is that Really Gaining Momentum?

In the past, Human Resource Management is considered as “pragmatic” and “procedure-based” rather than innovative practice. In order to measure the degree of movement from one approach to other various variables are used in the research.

Various dimensions like beliefs and assumptions, strategic aspects, line management, key levers are considered. But the problems with this are that at some point the some features will be given more importance when compared to other. The second is that to arrive at one particular decision so that it gives a proper direction to the work force some of them had to be included and few had to be excluded.

The first dimension was beliefs and assumptions that are norms followed in the organization which in turn results in effective performance. They serve as a guide to the needs. HRM seems to be working well in unionized establishments rather than non-union ones. Most of the organizations seemed to implement dual approaches.

The second dimension was strategic aspects. Earlier there were cases where it failed to show the evidence of strategic integration with the corporate plan. But some opportunistic organizations found relatively easy to implement new initiatives.

The third part was line management. Business managers and line managers are key players on employment issues. Studies revealed the evidence of these managers devising, deriving and delivering new initiatives. This shows that HRM was been taken into consideration regarding the employment issues and was being implemented.

The next dimension was key levers. There were mixed responses. Few of the aspects showed slow progress and where as performance related pay had scored high. More than the lack of the close association between financial performance and number HR initiatives there was even more less association between employee trust, commitment and satisfaction in the organizations. In fact the emphasis was more on direct 
communication to the workforce and increase in this flow of communication.

The other study was the observation and analysis of the interplay between individualism and collectivism. The findings are that though HRM was not given much importance and taken into consideration there was definitely interesting attempts of dealing with employees in new ways. There was definitely change of nature and it can be observed. On the other hand, the extent of bringing new ways had also been limited. But most of the companies had begun to take a strategic view of human resource management. So, definitely yes HRM is catching on.

Opportunities and Problems in Internet Marketing Research.


The Internet Marketing Research tool is a relatively new one that has been recently being used. Researchers need to know the opportunities and problems that can be faced using this tool. The three main themes that are to be discussed are survey design, sampling and field work.

Any research that is to be conducted is based on the objectives of the research. A survey design mainly consists of three components: 
  1. the objectives of the survey, 
  2. the sampling units, and 
  3. the data collection method. 

Objectives of the survey can be anything like to find out the consumer behavior through questionnaire, to find out how to use the internet as a marketing research tool, etc.  Questionnaire surveys can be done with internet and the advantage with it is data is automatically recorded. The other type of objective can be studying internet consumer behavior, etc.

There are different types of sampling units that could be used. They are web pages, websites and internet users. Based on the sampling units the objectives can be met for example by asking the questionnaires to internet users.  The third dimension is data collection method. Based on the objective appropriate data collection method has to be selected. The three different types of data collection methods are 
  • direct observation, 
  • a questionnaire and 
  • an experiment. 

The direct observation might be like observing the content of a website by the researchers or a sample of users.

Using questionnaires as a data collection method, there are four types of formats that could be used for internet questionnaire surveys. They are web-sites questionnaires, e-mail questionnaires, text formatted forms sent by e-mail as an attached file or downloadable text formatted form posted at a designed ftp which can be returned by mail or fax. Based on these three dimensions, eight designs may result from the combination of these.

Survey sampling problems are the most difficult problems that are to be faced by the researchers during the internet survey. Based on the nature of internet it is very difficult to select a sample and design a sample frame. The internet is a growing universe, sampling keeps changing and the results that we get at one point of time are not same at the other times. The generalization of results could be done only to certain extent.

Some of the other problems are defining the universe as internet is open and growing universe. Identifying the sampling frame could be another problem, as there are many research engines that can be used as sampling frame. Selecting a sampling procedure can be limited. Other problem is validation of results is difficult. One solution is to evaluate representatives of the frame. The other solution to these problems is using dynamic indicators and by surveying in several points of time.

Another important problem is the problem of non-coverage error in internet research. This creates limitation to the generalization of the survey results. Other important issue in the internet research is it is difficult to track the respondent. There is no control on who is the respondent when questionnaire is posted on the website. If the questionnaire is sent through mail then there is better control. It is also difficult to know the nationality, the culture, or the language of a site only by its URL address.

Some field problems are also there. Most important are format of the questionnaire, the use of research engines to obtain a frame and problems related to sampling units. Quality of the frame is not very good. The solution can be using representative and search engines to get a sample.

Internet is a very effective tool for marketing researchers. Apart from the problems using this, it does offer many opportunities too.