Analysis of the Hotel Industry in Malaysia

Analysis of the Hotel Industry in Malaysia CHAPTER 1 INTRODUCTION 1.1 Overview Basically, this chapter is an introduction of the research topic. In the Section 1.2, it briefly introduces the background of this study. Introduction of hotel industry in Malaysia is included in Section 1.3. Next, problem statements are explained in Section 1.4 while the research objectives are laid out in Section 1.5. Besides, Section 1.6 and Section 1.7 have included the scope of study and the significance of this study respectively. Lastly, Section 1.8 is about the explanation of the organization of this study with a flow chart attached depicting the tasks to be carried out. 1.2 Background of Study In todays increasingly competitive and complex business environment, being sustainable in the business arena is no longer the mission of any of the organization, but to grow. Competitive advantage gives organization to shield and isolate itself temporary from the intensive competitive environment. This advantage could be taken away when competitors improved their products or services that potentially make more appealing to customers. Therefore, organization requires a never-ending process of continuous improvement. The word kaizen has been used by Japanese for describing this ongoing process of unending improvement by setting and achieving of ever-higher goals that involves both managers and workers (Imai, 1996; Heizer Render, 2006). Over the years, organizations from every industry keep coming out new products, either with a different exterior or equipped with better and more advanced features. For example, todays mobile phones have almost the same function as a computer except with a smaller screen and size, auto industry comes out cars that strongly emphasize on performance, safety, comfortably, elegance and so forth. Same thing goes to services, organizations come out with services that are tailored to every customers. As a result, this provides what the customers are really wanted and undoubtedly, customer satisfaction increased. For instance, Tune Hotels has made all services as optional, from breakfast, air-conditioned room to water-heated bathroom (TuneHotels.com, 2009). All of these are normally being provided as a package in any other hotels. As a consequence, customers have the right to select which services they want and they are being charged according to what services they have selected. To sum it u p, organizations in 21st century are being very innovative in serving their customers. Instead of merely come out with novel products and services, organizations have to look into the quality issue of the products or services produced. Customers will never be satisfied if the products or services they received have no quality, regardless of how novel and unique it is. Here we need to look into quality issue. According to Blankenship and Petersen (1999), W. Edwards Deming is known most widely for his work in quality management. Demings 14 points help Japan in achieving very high levels of quality in products and turn out to be a great shock for the westerners because Japanese goods were perceived at low quality and cheapness before this. He used statistics to examine production processes for flaws and greatly influenced Japanese industry as it rebuilt in the years after World War II. Today, TQM is a popular topic for quality management. TQM is called total because it entire the whole organization, from the supplier to customer (Sharmma, 2008). In other words, TQM talks about the satisfaction of customer, supplier, and employee. Furthermore, quality assurance systems such as statistical process control, quality control and better conformance quality are lined to better business performance (Dick, 2000). Other than that, people in todays world are relatively concern with the quality of the products and services they purchase. With the advancement of Information Technology (IT), gathering information regarding quality for various products has no longer a time-consuming task. All of this information can be gathered with only a few clicks. For that reason, quality has become one of the considerations at customers pre-purchase stage. Since the quality has become more and more important nowadays, a non-govermental organization (NGO) named International Organization of Standardization (ISO) has published the ISO 9000 series of quality standards at year 1987 (Dick, 2000). The ISO 9000 series of international quality system standards provides a framework for a basic quality assurance system and a good starting point for achieving total quality (Evan Lindsay, 1999). Generally speaking, businesses can base the development of their products and services on reference documents which have broad market relevance. This, in turn, means that they are increasingly free to compete on many markets around the world. As on the customer side, the worldwide compatibility of technology which is achieved when products and services are based on International Standards brings them an increasingly wide choice of offers (ISO, 2009). By implementing TQM, both the organizations and customers can enjoy ever greater benefits. From the aspect of organizations, in reality, both the tangible and intangible ones are offered by TQM, such as cost savings for the employer and greater job satisfaction for the employee (Gunasekaram, Goyal, Martikainen, Yli-Olli, 1998). According to Shemwell, Tavas, Bilgin (2008), the key to sustainable competitive advantage lies in delivering high quality service that will in turn result in satisfied customers. In addition, Dick (2000) has proven that better quality does have a consistent positive relationship with improved business performance. Figure 1.1: Two Ways Quality Improves Profitability (Adapted From: Heizer and Render, Operations Management, 2006.) Also, Heizer and Render (2006) says profits can be increased by improved quality as the figure depicted above. Firstly, improved quality generally leads to both sales gains and reduced cost. This is because improved response, higher prices and improved reputation are all make sales gain happened. Moreover, reduction of cost happens when productivity increases, rework and scrap costs decreases and warranty costs decreases. Therefore, profits will be increased when expenditures (costs) have been lowered and revenue (sales) has been increased. 1.3 Hotel Industry in Malaysia As a sub-sector to services sector, tourism has an increase in foreign exchange earnings from RM17.3 billion in year 2000 to RM46.1 billion in 2007 (Bank Negara Malaysia [BNM], 2008). It shows that tourism had a growth in its revenue for 166% in a period of only 7 years. This is largely due to the effects of campaigns â€Å"Visit Malaysia Year† (Poon Low, 2005) and â€Å"Cuti-cuti Malaysia†. Up-to-date, tourism has recorded total receipts of RM49,561.2 million for the year 2008, an increment of RM3,491.2 million from year 2007 (Tourism Malaysia Corporate, 2009). Spillover effects have been generated by the increase in tourism activities into other sectors of the economy. In other words, the steadily growth of tourism industry has contributed to the growth of all related industries and businesses. These included hotel industry, retail businesses, restaurants and transportation (Bank Negara Malaysia [BNM], 2008). Hotel industry plays a very important role in complementing tourism as it provides accommodation to travelers and tourists. Nevertheless, hotel industry has been a major player in the growth of the Malaysian economy, which contributing approximately 50 percent of the nations real GDP (Awang, Ishak, Radzi, Taha, 2008). As today, there are approximately 105 hotels with different ratings and sizes in Kuala Lumpur alone (Malaysian Association of Hotels [MAH], 2009). This has shown that Kuala Lumpur has an incredibly high density of hotels. Here the problem arises, how is the hotel industry in Kuala Lumpur cope with the never ending increase of tourists and travelers? In this context, it seems not possible to provide more rooms by simply adding the number of hotels in Kuala Lumpur. This is because the land area of Kuala Lumpur has only 244km ², meaning that there will be 1 hotel in every 2.3km ². In this sense, hoteliers have to find other ways to increase their productivities. In recent years, governments from all over the world have been putting more and more emphasis in developing services industry in their countries. They are all now aware of the unique characteristic of services and its importance in supporting a countrys economic growth. Business services showed the strongest growth in terms of value added and economic productivity (Wirtz Ehret, 2009). Theoretically, any organization in developing countries must endeavor continuously to improve productivity in order to increase profitability (Oluleye Olajire, 2001). As a consequence to the Malaysia economy, a higher amount of GDP will be recorded, more and more employment will be provided and so on. Hence, these have made hotel industry as a key sub-sector to services industry and these social responsibilities should not be overlooked by hoteliers in Malaysia. 1.4 Problem Statements In general, Malaysian will have perception saying that things made by western countries and Japan have higher quality, things from China have no quality and so forth. This is partially true in reality, majority of the Malaysians opt to buy import goods where there is an option for them. Therefore, local made products are usually having less supports from Malaysian as it has been perceived to be low quality in terms of unreliable and unattractive (Damodaran, 2009). This shows that local made products have lesser competency even in local market. Consequently, government encourages both the manufacturer and services provider to look seriously in quality issue by giving several incentives (Malaysian Rubber Export Promotion Council [MREPC], 2009). However, the outcomes of it are not up to the expectation. This may due to the inadequate research carry out in Malaysia. Thus, organizations especially the small size ones will definitely lack of information when trying to implement quality man agement system. Kuala Lumpur is one of the major cities in Malaysia with an estimated of 1.6 million of population at the year 2005 (KL City Plan 2020, 2009) and it is to be said as the fastest growing region in Malaysia. This figure says that Kuala Lumpur is the most densely populated district in Malaysia. Moreover, Kuala Lumpur has a vast number of tourists and it increases over years. Just to name a few, its major tourist destinations include Dataran Merdeka (the Independence Square), House of Parliament, the Istana Budaya, the Istana Negara (National Palace), the Kuala Lumpur Tower, the Muzium Negara (National Museum), Petaling Street and etc (Tourism Malaysia, 2009). With the limited land that Kuala Lumpur has, it is almost impossible to build more hotels in order to cater the increasing number of tourist in the near future. Therefore, several actions have to be taken in order to best serve the tourists with the limited number of hotels in Kuala Lumpur. This is to ensure that the receipts from tourism will not be negatively affected while the hotel industry can continuously contribute significantly to GDP. As time goes by, Human Resource Management (HRM) has become a popular topic than ever before. Organizations have understood the importance of employees (human resources). At the same time, empirical research studies have been done by researchers to further understand and prove those theories related to motivate and compensate employees. Dessler (2005) says that employee satisfaction and performance are positively related. Therefore, hoteliers must understand the importance to maximize their employee satisfaction as this could lead to greater business performance. However, by solely compensating employees with both monetary and non-monetary rewards has its limitation. Performance will stop increasing when the problem arises are not come from employees but the management. For instance, it could be lacking a well-planned system in executing tasks, ineffective communications in organization and so forth. In other countries, TQM has been so popular for a period of time as it helps organiz ations to achieve even higher of performance. In other countries, plenty of research studies have been carried out to investigate which TQM factors are the most influential to the particular country. Unlike in Malaysia, the number of TQM study that can be applied is limited and lacking of guidelines for hoteliers is still a major problem. Someone could say that hoteliers can simply use the findings from other countries as a guideline for implementing the TQM. But, there is always a high possibility that those mentioned as important factors are not important in Malaysia, when compared to the original country that the research is carried out. In other words, it is imperative to understand the applicability of the findings from other countries. The applicability of some of the findings from research still remains questionable. For example, information and analysis, one of the TQM factors is said to be extremely important to developed and developing countries but it is not persuasive enough to apply on third world countries. This is because they probably lack of necessary infrastructure. Therefore, it can be said that Malaysias hoteliers are actually lack of a blueprint when initially applying TQM to their respective hotels. In other words, hoteliers may not known which factors of TQM can generally lead to better performa nce in the Malaysia. Furthermore, with the limited of number of such research available to Malaysia, it has nothing to show hoteliers how strong the impact of TQM factors is to labor productivity, thus lack of motivation to change their routine and ways of doing business. When this occurs, Malaysia hotel industry can never be improved, previously owned competitiveness can be competed away and GDP can be affected. 1.5 Research Objectives The general objective of this study is to identify the impact of each of the selected TQM factors towards the labor productivity. Next, it is then to be expressed in term of its level of correlation between each of the independent variables and the dependent one. Therefore, this result could be used by the Malaysia hoteliers in increasing their labor productivity as these findings will show which of the independent variables plays a more important role in achieving higher labor productivity in the Malaysia context. The following objectives are specifically derived from the problem statements: To identify the relationship between the chosen independent variables and dependent variable; To investigate the level of impact for each of the chosen TQM factors towards labor productivity; To determine whether high TQM commitment hotels will generally generate higher labor productivity than the low TQM commitment hotels; and To provide insights and recommendations for improvement to Malaysias hoteliers at the end of the research. 1.6 Scope of Study The scope of this study covers a discussion on TQM as well as the importance of productivity. As the scope of both TQM and productivity are broad, this study will primarily focus on the aspect of TQM factors and labor productivity. Besides, this study investigates the relationship between selected TQM factors and labor productivity. Theoretically, those selected TQM factors is to be said to have influences on the labor productivity. Therefore, this research is also carried out with the intention to identify the degree of impact of the selected TQM factors towards labor productivity, either a stronger or a weaker one. Moreover, this research is intended to provide useful and relevant findings for hoteliers in Malaysia, in order to achieve the ever higher labor productivity in Malaysia hotel industry. Therefore, it is targeted to hoteliers in Malaysia primarily located in Kuala Lumpur. Lastly, a questionnaire has been included in this study and carried out on hoteliers of Kuala Lumpur in order to measure the impact of TQM factors towards labor productivity. 1.7 Significance of Study The importance of this study is to explore the relationship between the selected TQM factors and labor productivity in the context of Malaysia hotel industry. Similar research studies have been done to prove the relationship between the TQM factors and productivity. However, most of it were not focusing on the hotel industry. Some of them might have focused in hotel industry, but the issue of applicability remains noticeable. For that reason, this study is focusing in the Malaysia hotel industry as an applicable guideline and reference for the Malaysia hoteliers. Besides that, this study will be able to contribute relevant information to the Tourism Malaysia Promotion Board (Malaysian Ministry of Culture, Arts and Tourism). In Section 1.3, it shows the importance of tourism is to the nation GDP. Furthermore, hotel industry is relatively important to the country as an accommodation means for tourists to visit Malaysia. In addition, through this study, government is now able to identify unsuitable approaches and strategies. Therefore, essential action such as coming out new incentives scheme can be taken to effectively replace the old ones. Thus, national resources can be distributed and used even more effective and efficient than ever. As to hoteliers, this study helps to lighten their worries when first implementing the TQM as they are now getting more supporting evidence from this study. According to Yesawich (1997), building customer loyalty is one of the biggest challenges for the hotel industry. Successfully implemented TQM contributes to customer satisfaction. From customer satisfaction, loyalty and profits are positively related. In other word, TQM can potentially overcome one of the biggest challenges in hotel industry. At the same time, organizations can enjoy the benefits from TQM such as creating competitive advantage, providing unique services and so forth. 1.8 Organization of Study The organization of this research study comprises of 5 chapters. This research study begins with Chapter 1 that covers the introduction for the chosen topic. It consists of the background of study and hotel industry in Malaysia. Next, problem statements, research objectives, scope of study and the significance of study are laid out in different section. Lastly, organization of study that shows the overall flow of this study ends the Chapter 1. Chapter 2 provides the literature review for the chosen topic. It includes all the related empirical studies that have been done by the previous researchers. Several of viewpoint, definition and argument have been included in this chapter as well. For instance, different point of views from different researchers for the same variable can be found here. Chapter 3 outlines the overall methodology being used in this research study. It shows the research framework together with the explanation and hypothesis of the framework. Besides, data collection method, sources of data, sampling method and sampling size will be discussed in separated section. Furthermore, there is the outline of the questionnaire development and scaling techniques before discussion of data analysis and measurement close the chapter. Chapter 4 discusses the findings and the results of this research study. Therefore, all related chart, graph, data will be included in this chapter. This chapter basically ends with the interpretation and discussion regarding all of the findings. Finally, conclusions and recommendations will be formed and given to readers. It concludes which TQM factors have a stronger effect and vice versa. Besides that, limitations of this study will also be included. The following figure shows the overall outline of this study. Figure 1.2: Flow Chart of Study CHAPTER 2 LITERATURE REVIEW 2.1 Overview This chapter develops and provides the foundation for this research study. Previous works done by other researchers that relate to labor productivity, total quality management, customer focus, human resource management, information analysis, leadership and strategic management are all presented in this chapter. Besides, in order to gain a better understanding of this research, viewpoints from different researchers are then compare and contrast in this chapter. 2.2 Labor Productivity In the 21st century, productivity growth plays an important role in GDP growth of any nation. According Chapman, Murray Mellor (1997), the use of sales per employee has been widely used to measure labor productivity for individual companies. Besides, Sauian (2002) says that in knowledge-based economy, competitive advantage can be maintained through â€Å"high productivity† and efficiency. In the other way round, labor productivity is an important element used to gauge competitiveness in producing goods and services (Sauian, 2002). Moreover, Hoffman Mehra (1998) argues that high productivity effects are impossible to sustain without a quality-based process-oriented environment which emanates from the support of employees, upper management, and the organization. Malaysia registered a productivity growth of 2.9 percent from RM 48,113 in year 2007 to RM 49,526 in year 2008. Furthermore, productivity contributed 62.2 percent while employment contributed 37.8 percent to the GDP growth of 5.98 percent. This growth surpassed several major countries of the Organization for Economic Co-operation and Development (OECD). As shown in Figure 2.1, the Rep. of Korea recorded a productivity growth as much as 3.6 percent, the USA (2.1 percent), the Japan (0.8 percent), the Australia (0.4), the Germany (0.1 percent) and the rest had zero or negative growth (Malaysia Productivity Corporation [MPC], 2009). Figure 2.1: Productivity Growth of Malaysia and Selected OECD Countries, 2008 (Adapted From: MPC, Annual Productivity Report 2008) Thomas (1994) defined the simplest form of labor productivity (LP) as the hours of work divided by the units of work accomplished. In general, LP is a measure of output from a production as per unit of input. Therefore, it can be expressed as: LP From the above formula, LP consists of the total output and total input. It can be in terms of a particular production, a department, an organization or even a nation. In general, if we want to increase productivity, it is necessary to increase the systems output, if the input is to remain constant. Similarly, if the systems output is to maintain the status quo, then we need to utilize less input. From a different aspect, if both output and input are increased, then it is mathematically obvious that the rate of increase of output should be higher than the rate of increase of input, if productivity needs to be improved (Sauian, 2002). Therefore, in order to achieve higher LP, input and output should be manipulated in various ways. Schonewille (2001) said the effectiveness of training is lower compared to initial education when comes to contributing to labor productivity. Even thought training has smaller effects on labor productivity, still the estimated coefficient is positive (Schonewille, 2001). A number of researchers have proven the positive impact of quality on productivity, whereas both can influence positively profitability (Bylund Lapidoth, 1994). This relationship has been generally accepted within the manufacturing industry (Chase Aquilano, 1995). However in reality, LP is a much more complex phenomenon which largely depends on quite diverse factors such as workers competence, motivation, supervision and so forth. Also, management does affect LP (Enshassi, Mohamed, Mayer, Abed, 2007). Chapman and Al-Khawaldeh (2002) has investigated the relationship between TQM implementation and labor productivity in industrial companies in Jordan, as shown in Figure 2.2. The results of data analysis indicate that there is a positive relationship between TQM (and each TQM element) and labor productivity. Interestingly, it is found that companies with ISO 9000 certification has high positive slope whereas companies without ISO 9000 certification has low positive slope. 2.3 Total Quality Management (TQM) TQM emerged in the mid-1980s in response to Japans invasion of US markets with their high quality-low price automobiles and electronic products. Quality has been defined differently as conformance to requirement (Crosby, 1979), fitness for use (Juran, 1979), continual improvement (Deming, 1982) and as define by customers (Ford, 1990). Whereby, Spitzer (1993) called TQM â€Å"the only source of sustainable competitive advantage†. Also, TQM is continually satisfying agreed customer requirements at lowest cost through harnessing everyones commitment (Burton Franckeiss, 1994). In theory, TQM seems to assure performance improvement for any organization. But, in practice, TQM works for some organization and not for others (Terzioski, 2006). According to Chapman and Al-Khawaldeh (2002), TQM is a key strategy for maintaining competitive advantage and is a way of managing organizations to improve its overall effectiveness and performance towards achieving world-class status. During the last two decades or so, simple inspection activities have been replaced or supplemented by quality control, quality assurance has been developed and refined, and now most companies are working towards TQM (Dale Bunney, 1999). Dale (1999) indentifies four discrete stages: inspection, quality control, quality assurance and TQM, as shown in Figure 2.2. Figure 2.3: The four levels in the evolution of Total Quality Management (Sources: Adapted from Dale Bunney, Total Quality Management Blueprint, 1999) Inspection is defined as â€Å"activities such as measuring, examining, testing or gauging one or more characteristic of an entity and comparing the results with specified requirement in order to establish whether conformity is achieved for each characteristic† (BS EN ISO 8402, 1995). Quality control is defined as â€Å"operational techniques and activities that are used to fulfill requirements for quality† (BS EN ISO 8402, 1995). Quality assurance is defined as â€Å"all the planned and systematic activities implemented within the quality system and demonstrated as needed to provide adequate confidence that an entity will fulfill requirements for quality† (BS EN ISO 8402, 1995). TQM is the highest level which involves the application of quality management principles to all aspects of the business, including customers and suppliers. It is then defined as the management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society (BS EN ISO 8402, 1995). A number of research studies have been carried out to investigate the impact of TQM factors and implementation (Sila Ebrahimpour, 2005; Khan, 2003; Terzioski, 2006). Miller (1993) reported that success with TQM depends on the facilitating conditions. Leadership, human resource management and some other TQM factors are found to have positive impact on business results (Sila Ebrahimpour, 2005). Therefore, these findings can be reasonably useful in assisting managers so that they can allocate resources to improve their typical routines to obtain the best results. Next, five TQM factors have been selected as the independent variables for this study, namely (1) Customer Focus, (2) Human Resource Management (HRM), (3) Information and Analysis, (4) Leadership and (5) Strategic Planning. It is said that customer focus pays more attention on the customers whereas the rest of TQM factors have focused on the internal aspect of the organization. As for HRM, it focuses on the practices involved in carrying out the â€Å"people† of a management position. Information and analysis is said to be the information and communication technology used to further enhance labor productivity as automation has been widely used. Leadership is important as it creates synergy for achieving favorable business results whereas strategic planning is a set of process undertaken in order to develop a range of strategies that will contribute to achieve organization direction. Further elaboration and review for each variable will be discussed in different sub-section lat er. 2.3.1 Customer Focus According to Dean and Bowen (1994), customer focus is as important as many other TQM practices to organizational performance. Being customer-focused keeps us aware of quality, or rather it focuses our quality initiatives on what really matters to the customers (Cox, 1997). Also, Piercy (1995) says that TQM has too much focused on the internal aspect of the organization and much less attention on the customers. Customer satisfaction begins by discovering precisely what customers want and gearing every practice to their exact expectations (Kearney, 1994). Customer focus has changed mass production to mass customization. In addition, being far from depersonalizing the world, technology has the power to return us to being treated as individuals while getting all the benefits inherent in large-scale enterprise (Cox, 1997). Sousa (2003) pointed out the importance of customer focus lies in the fact that it is the starting point of any quality initiative. However, it has not received enough attention from quality management researchers (Cai, 2009). In the final decade of twentieth century, the term, customer-centered competition has been introduced. Customer-centered company is a company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers (Kotler Armstrong, 2008). It is common to hear the statement â€Å"customer is always right† in any organization. This could be the trend that organization is to focus on customer needs to be customer-led, to be market-oriented, to care for customers and so forth (Piercy, 1995). These are to make total customer satisfaction a strategic foundation for achieving competitive advantage (Kearney, 1994). Customer focus has been therefore defined as the degree to which firms continuously satisfy customer needs and expectations (Philips, Chang, Buzzell, 1983). The difference between customer focus and customer understanding is, according to Lagrosen (2001), mainly a matter of perspective. Customer focus means the activities of the companies are intended to benefit the customer but the customer is seen from the companies own perspective. Therefore, effects are usually being made to gain information about the customers needs and wants, although always in a set framework that originates in the companies view of the product and its features. Whereby, customer understanding needs perspective to be shifted. It means the company needs to gain entry to the customers own perspective and adopt the customers framework of viewing the product (Lagrosen, 2001). Cai (2009) found that organizational customer focus affects customer relationship practices, which subsequently influence production performance and customer satisfaction, and production performance and customer satisfaction lead to financial outcomes. Ooi, Bakar, Arumugam, Vellepan, and Loke (2007) says TQM practices such as teamwork, reward and recognition, customer focus and organizational trust are positively associated with job satisfaction within their organization. For instance, customer focus was found to have a direct influence on emplo Analysis of the Hotel Industry in Malaysia Analysis of the Hotel Industry in Malaysia CHAPTER 1 INTRODUCTION 1.1 Overview Basically, this chapter is an introduction of the research topic. In the Section 1.2, it briefly introduces the background of this study. Introduction of hotel industry in Malaysia is included in Section 1.3. Next, problem statements are explained in Section 1.4 while the research objectives are laid out in Section 1.5. Besides, Section 1.6 and Section 1.7 have included the scope of study and the significance of this study respectively. Lastly, Section 1.8 is about the explanation of the organization of this study with a flow chart attached depicting the tasks to be carried out. 1.2 Background of Study In todays increasingly competitive and complex business environment, being sustainable in the business arena is no longer the mission of any of the organization, but to grow. Competitive advantage gives organization to shield and isolate itself temporary from the intensive competitive environment. This advantage could be taken away when competitors improved their products or services that potentially make more appealing to customers. Therefore, organization requires a never-ending process of continuous improvement. The word kaizen has been used by Japanese for describing this ongoing process of unending improvement by setting and achieving of ever-higher goals that involves both managers and workers (Imai, 1996; Heizer Render, 2006). Over the years, organizations from every industry keep coming out new products, either with a different exterior or equipped with better and more advanced features. For example, todays mobile phones have almost the same function as a computer except with a smaller screen and size, auto industry comes out cars that strongly emphasize on performance, safety, comfortably, elegance and so forth. Same thing goes to services, organizations come out with services that are tailored to every customers. As a result, this provides what the customers are really wanted and undoubtedly, customer satisfaction increased. For instance, Tune Hotels has made all services as optional, from breakfast, air-conditioned room to water-heated bathroom (TuneHotels.com, 2009). All of these are normally being provided as a package in any other hotels. As a consequence, customers have the right to select which services they want and they are being charged according to what services they have selected. To sum it u p, organizations in 21st century are being very innovative in serving their customers. Instead of merely come out with novel products and services, organizations have to look into the quality issue of the products or services produced. Customers will never be satisfied if the products or services they received have no quality, regardless of how novel and unique it is. Here we need to look into quality issue. According to Blankenship and Petersen (1999), W. Edwards Deming is known most widely for his work in quality management. Demings 14 points help Japan in achieving very high levels of quality in products and turn out to be a great shock for the westerners because Japanese goods were perceived at low quality and cheapness before this. He used statistics to examine production processes for flaws and greatly influenced Japanese industry as it rebuilt in the years after World War II. Today, TQM is a popular topic for quality management. TQM is called total because it entire the whole organization, from the supplier to customer (Sharmma, 2008). In other words, TQM talks about the satisfaction of customer, supplier, and employee. Furthermore, quality assurance systems such as statistical process control, quality control and better conformance quality are lined to better business performance (Dick, 2000). Other than that, people in todays world are relatively concern with the quality of the products and services they purchase. With the advancement of Information Technology (IT), gathering information regarding quality for various products has no longer a time-consuming task. All of this information can be gathered with only a few clicks. For that reason, quality has become one of the considerations at customers pre-purchase stage. Since the quality has become more and more important nowadays, a non-govermental organization (NGO) named International Organization of Standardization (ISO) has published the ISO 9000 series of quality standards at year 1987 (Dick, 2000). The ISO 9000 series of international quality system standards provides a framework for a basic quality assurance system and a good starting point for achieving total quality (Evan Lindsay, 1999). Generally speaking, businesses can base the development of their products and services on reference documents which have broad market relevance. This, in turn, means that they are increasingly free to compete on many markets around the world. As on the customer side, the worldwide compatibility of technology which is achieved when products and services are based on International Standards brings them an increasingly wide choice of offers (ISO, 2009). By implementing TQM, both the organizations and customers can enjoy ever greater benefits. From the aspect of organizations, in reality, both the tangible and intangible ones are offered by TQM, such as cost savings for the employer and greater job satisfaction for the employee (Gunasekaram, Goyal, Martikainen, Yli-Olli, 1998). According to Shemwell, Tavas, Bilgin (2008), the key to sustainable competitive advantage lies in delivering high quality service that will in turn result in satisfied customers. In addition, Dick (2000) has proven that better quality does have a consistent positive relationship with improved business performance. Figure 1.1: Two Ways Quality Improves Profitability (Adapted From: Heizer and Render, Operations Management, 2006.) Also, Heizer and Render (2006) says profits can be increased by improved quality as the figure depicted above. Firstly, improved quality generally leads to both sales gains and reduced cost. This is because improved response, higher prices and improved reputation are all make sales gain happened. Moreover, reduction of cost happens when productivity increases, rework and scrap costs decreases and warranty costs decreases. Therefore, profits will be increased when expenditures (costs) have been lowered and revenue (sales) has been increased. 1.3 Hotel Industry in Malaysia As a sub-sector to services sector, tourism has an increase in foreign exchange earnings from RM17.3 billion in year 2000 to RM46.1 billion in 2007 (Bank Negara Malaysia [BNM], 2008). It shows that tourism had a growth in its revenue for 166% in a period of only 7 years. This is largely due to the effects of campaigns â€Å"Visit Malaysia Year† (Poon Low, 2005) and â€Å"Cuti-cuti Malaysia†. Up-to-date, tourism has recorded total receipts of RM49,561.2 million for the year 2008, an increment of RM3,491.2 million from year 2007 (Tourism Malaysia Corporate, 2009). Spillover effects have been generated by the increase in tourism activities into other sectors of the economy. In other words, the steadily growth of tourism industry has contributed to the growth of all related industries and businesses. These included hotel industry, retail businesses, restaurants and transportation (Bank Negara Malaysia [BNM], 2008). Hotel industry plays a very important role in complementing tourism as it provides accommodation to travelers and tourists. Nevertheless, hotel industry has been a major player in the growth of the Malaysian economy, which contributing approximately 50 percent of the nations real GDP (Awang, Ishak, Radzi, Taha, 2008). As today, there are approximately 105 hotels with different ratings and sizes in Kuala Lumpur alone (Malaysian Association of Hotels [MAH], 2009). This has shown that Kuala Lumpur has an incredibly high density of hotels. Here the problem arises, how is the hotel industry in Kuala Lumpur cope with the never ending increase of tourists and travelers? In this context, it seems not possible to provide more rooms by simply adding the number of hotels in Kuala Lumpur. This is because the land area of Kuala Lumpur has only 244km ², meaning that there will be 1 hotel in every 2.3km ². In this sense, hoteliers have to find other ways to increase their productivities. In recent years, governments from all over the world have been putting more and more emphasis in developing services industry in their countries. They are all now aware of the unique characteristic of services and its importance in supporting a countrys economic growth. Business services showed the strongest growth in terms of value added and economic productivity (Wirtz Ehret, 2009). Theoretically, any organization in developing countries must endeavor continuously to improve productivity in order to increase profitability (Oluleye Olajire, 2001). As a consequence to the Malaysia economy, a higher amount of GDP will be recorded, more and more employment will be provided and so on. Hence, these have made hotel industry as a key sub-sector to services industry and these social responsibilities should not be overlooked by hoteliers in Malaysia. 1.4 Problem Statements In general, Malaysian will have perception saying that things made by western countries and Japan have higher quality, things from China have no quality and so forth. This is partially true in reality, majority of the Malaysians opt to buy import goods where there is an option for them. Therefore, local made products are usually having less supports from Malaysian as it has been perceived to be low quality in terms of unreliable and unattractive (Damodaran, 2009). This shows that local made products have lesser competency even in local market. Consequently, government encourages both the manufacturer and services provider to look seriously in quality issue by giving several incentives (Malaysian Rubber Export Promotion Council [MREPC], 2009). However, the outcomes of it are not up to the expectation. This may due to the inadequate research carry out in Malaysia. Thus, organizations especially the small size ones will definitely lack of information when trying to implement quality man agement system. Kuala Lumpur is one of the major cities in Malaysia with an estimated of 1.6 million of population at the year 2005 (KL City Plan 2020, 2009) and it is to be said as the fastest growing region in Malaysia. This figure says that Kuala Lumpur is the most densely populated district in Malaysia. Moreover, Kuala Lumpur has a vast number of tourists and it increases over years. Just to name a few, its major tourist destinations include Dataran Merdeka (the Independence Square), House of Parliament, the Istana Budaya, the Istana Negara (National Palace), the Kuala Lumpur Tower, the Muzium Negara (National Museum), Petaling Street and etc (Tourism Malaysia, 2009). With the limited land that Kuala Lumpur has, it is almost impossible to build more hotels in order to cater the increasing number of tourist in the near future. Therefore, several actions have to be taken in order to best serve the tourists with the limited number of hotels in Kuala Lumpur. This is to ensure that the receipts from tourism will not be negatively affected while the hotel industry can continuously contribute significantly to GDP. As time goes by, Human Resource Management (HRM) has become a popular topic than ever before. Organizations have understood the importance of employees (human resources). At the same time, empirical research studies have been done by researchers to further understand and prove those theories related to motivate and compensate employees. Dessler (2005) says that employee satisfaction and performance are positively related. Therefore, hoteliers must understand the importance to maximize their employee satisfaction as this could lead to greater business performance. However, by solely compensating employees with both monetary and non-monetary rewards has its limitation. Performance will stop increasing when the problem arises are not come from employees but the management. For instance, it could be lacking a well-planned system in executing tasks, ineffective communications in organization and so forth. In other countries, TQM has been so popular for a period of time as it helps organiz ations to achieve even higher of performance. In other countries, plenty of research studies have been carried out to investigate which TQM factors are the most influential to the particular country. Unlike in Malaysia, the number of TQM study that can be applied is limited and lacking of guidelines for hoteliers is still a major problem. Someone could say that hoteliers can simply use the findings from other countries as a guideline for implementing the TQM. But, there is always a high possibility that those mentioned as important factors are not important in Malaysia, when compared to the original country that the research is carried out. In other words, it is imperative to understand the applicability of the findings from other countries. The applicability of some of the findings from research still remains questionable. For example, information and analysis, one of the TQM factors is said to be extremely important to developed and developing countries but it is not persuasive enough to apply on third world countries. This is because they probably lack of necessary infrastructure. Therefore, it can be said that Malaysias hoteliers are actually lack of a blueprint when initially applying TQM to their respective hotels. In other words, hoteliers may not known which factors of TQM can generally lead to better performa nce in the Malaysia. Furthermore, with the limited of number of such research available to Malaysia, it has nothing to show hoteliers how strong the impact of TQM factors is to labor productivity, thus lack of motivation to change their routine and ways of doing business. When this occurs, Malaysia hotel industry can never be improved, previously owned competitiveness can be competed away and GDP can be affected. 1.5 Research Objectives The general objective of this study is to identify the impact of each of the selected TQM factors towards the labor productivity. Next, it is then to be expressed in term of its level of correlation between each of the independent variables and the dependent one. Therefore, this result could be used by the Malaysia hoteliers in increasing their labor productivity as these findings will show which of the independent variables plays a more important role in achieving higher labor productivity in the Malaysia context. The following objectives are specifically derived from the problem statements: To identify the relationship between the chosen independent variables and dependent variable; To investigate the level of impact for each of the chosen TQM factors towards labor productivity; To determine whether high TQM commitment hotels will generally generate higher labor productivity than the low TQM commitment hotels; and To provide insights and recommendations for improvement to Malaysias hoteliers at the end of the research. 1.6 Scope of Study The scope of this study covers a discussion on TQM as well as the importance of productivity. As the scope of both TQM and productivity are broad, this study will primarily focus on the aspect of TQM factors and labor productivity. Besides, this study investigates the relationship between selected TQM factors and labor productivity. Theoretically, those selected TQM factors is to be said to have influences on the labor productivity. Therefore, this research is also carried out with the intention to identify the degree of impact of the selected TQM factors towards labor productivity, either a stronger or a weaker one. Moreover, this research is intended to provide useful and relevant findings for hoteliers in Malaysia, in order to achieve the ever higher labor productivity in Malaysia hotel industry. Therefore, it is targeted to hoteliers in Malaysia primarily located in Kuala Lumpur. Lastly, a questionnaire has been included in this study and carried out on hoteliers of Kuala Lumpur in order to measure the impact of TQM factors towards labor productivity. 1.7 Significance of Study The importance of this study is to explore the relationship between the selected TQM factors and labor productivity in the context of Malaysia hotel industry. Similar research studies have been done to prove the relationship between the TQM factors and productivity. However, most of it were not focusing on the hotel industry. Some of them might have focused in hotel industry, but the issue of applicability remains noticeable. For that reason, this study is focusing in the Malaysia hotel industry as an applicable guideline and reference for the Malaysia hoteliers. Besides that, this study will be able to contribute relevant information to the Tourism Malaysia Promotion Board (Malaysian Ministry of Culture, Arts and Tourism). In Section 1.3, it shows the importance of tourism is to the nation GDP. Furthermore, hotel industry is relatively important to the country as an accommodation means for tourists to visit Malaysia. In addition, through this study, government is now able to identify unsuitable approaches and strategies. Therefore, essential action such as coming out new incentives scheme can be taken to effectively replace the old ones. Thus, national resources can be distributed and used even more effective and efficient than ever. As to hoteliers, this study helps to lighten their worries when first implementing the TQM as they are now getting more supporting evidence from this study. According to Yesawich (1997), building customer loyalty is one of the biggest challenges for the hotel industry. Successfully implemented TQM contributes to customer satisfaction. From customer satisfaction, loyalty and profits are positively related. In other word, TQM can potentially overcome one of the biggest challenges in hotel industry. At the same time, organizations can enjoy the benefits from TQM such as creating competitive advantage, providing unique services and so forth. 1.8 Organization of Study The organization of this research study comprises of 5 chapters. This research study begins with Chapter 1 that covers the introduction for the chosen topic. It consists of the background of study and hotel industry in Malaysia. Next, problem statements, research objectives, scope of study and the significance of study are laid out in different section. Lastly, organization of study that shows the overall flow of this study ends the Chapter 1. Chapter 2 provides the literature review for the chosen topic. It includes all the related empirical studies that have been done by the previous researchers. Several of viewpoint, definition and argument have been included in this chapter as well. For instance, different point of views from different researchers for the same variable can be found here. Chapter 3 outlines the overall methodology being used in this research study. It shows the research framework together with the explanation and hypothesis of the framework. Besides, data collection method, sources of data, sampling method and sampling size will be discussed in separated section. Furthermore, there is the outline of the questionnaire development and scaling techniques before discussion of data analysis and measurement close the chapter. Chapter 4 discusses the findings and the results of this research study. Therefore, all related chart, graph, data will be included in this chapter. This chapter basically ends with the interpretation and discussion regarding all of the findings. Finally, conclusions and recommendations will be formed and given to readers. It concludes which TQM factors have a stronger effect and vice versa. Besides that, limitations of this study will also be included. The following figure shows the overall outline of this study. Figure 1.2: Flow Chart of Study CHAPTER 2 LITERATURE REVIEW 2.1 Overview This chapter develops and provides the foundation for this research study. Previous works done by other researchers that relate to labor productivity, total quality management, customer focus, human resource management, information analysis, leadership and strategic management are all presented in this chapter. Besides, in order to gain a better understanding of this research, viewpoints from different researchers are then compare and contrast in this chapter. 2.2 Labor Productivity In the 21st century, productivity growth plays an important role in GDP growth of any nation. According Chapman, Murray Mellor (1997), the use of sales per employee has been widely used to measure labor productivity for individual companies. Besides, Sauian (2002) says that in knowledge-based economy, competitive advantage can be maintained through â€Å"high productivity† and efficiency. In the other way round, labor productivity is an important element used to gauge competitiveness in producing goods and services (Sauian, 2002). Moreover, Hoffman Mehra (1998) argues that high productivity effects are impossible to sustain without a quality-based process-oriented environment which emanates from the support of employees, upper management, and the organization. Malaysia registered a productivity growth of 2.9 percent from RM 48,113 in year 2007 to RM 49,526 in year 2008. Furthermore, productivity contributed 62.2 percent while employment contributed 37.8 percent to the GDP growth of 5.98 percent. This growth surpassed several major countries of the Organization for Economic Co-operation and Development (OECD). As shown in Figure 2.1, the Rep. of Korea recorded a productivity growth as much as 3.6 percent, the USA (2.1 percent), the Japan (0.8 percent), the Australia (0.4), the Germany (0.1 percent) and the rest had zero or negative growth (Malaysia Productivity Corporation [MPC], 2009). Figure 2.1: Productivity Growth of Malaysia and Selected OECD Countries, 2008 (Adapted From: MPC, Annual Productivity Report 2008) Thomas (1994) defined the simplest form of labor productivity (LP) as the hours of work divided by the units of work accomplished. In general, LP is a measure of output from a production as per unit of input. Therefore, it can be expressed as: LP From the above formula, LP consists of the total output and total input. It can be in terms of a particular production, a department, an organization or even a nation. In general, if we want to increase productivity, it is necessary to increase the systems output, if the input is to remain constant. Similarly, if the systems output is to maintain the status quo, then we need to utilize less input. From a different aspect, if both output and input are increased, then it is mathematically obvious that the rate of increase of output should be higher than the rate of increase of input, if productivity needs to be improved (Sauian, 2002). Therefore, in order to achieve higher LP, input and output should be manipulated in various ways. Schonewille (2001) said the effectiveness of training is lower compared to initial education when comes to contributing to labor productivity. Even thought training has smaller effects on labor productivity, still the estimated coefficient is positive (Schonewille, 2001). A number of researchers have proven the positive impact of quality on productivity, whereas both can influence positively profitability (Bylund Lapidoth, 1994). This relationship has been generally accepted within the manufacturing industry (Chase Aquilano, 1995). However in reality, LP is a much more complex phenomenon which largely depends on quite diverse factors such as workers competence, motivation, supervision and so forth. Also, management does affect LP (Enshassi, Mohamed, Mayer, Abed, 2007). Chapman and Al-Khawaldeh (2002) has investigated the relationship between TQM implementation and labor productivity in industrial companies in Jordan, as shown in Figure 2.2. The results of data analysis indicate that there is a positive relationship between TQM (and each TQM element) and labor productivity. Interestingly, it is found that companies with ISO 9000 certification has high positive slope whereas companies without ISO 9000 certification has low positive slope. 2.3 Total Quality Management (TQM) TQM emerged in the mid-1980s in response to Japans invasion of US markets with their high quality-low price automobiles and electronic products. Quality has been defined differently as conformance to requirement (Crosby, 1979), fitness for use (Juran, 1979), continual improvement (Deming, 1982) and as define by customers (Ford, 1990). Whereby, Spitzer (1993) called TQM â€Å"the only source of sustainable competitive advantage†. Also, TQM is continually satisfying agreed customer requirements at lowest cost through harnessing everyones commitment (Burton Franckeiss, 1994). In theory, TQM seems to assure performance improvement for any organization. But, in practice, TQM works for some organization and not for others (Terzioski, 2006). According to Chapman and Al-Khawaldeh (2002), TQM is a key strategy for maintaining competitive advantage and is a way of managing organizations to improve its overall effectiveness and performance towards achieving world-class status. During the last two decades or so, simple inspection activities have been replaced or supplemented by quality control, quality assurance has been developed and refined, and now most companies are working towards TQM (Dale Bunney, 1999). Dale (1999) indentifies four discrete stages: inspection, quality control, quality assurance and TQM, as shown in Figure 2.2. Figure 2.3: The four levels in the evolution of Total Quality Management (Sources: Adapted from Dale Bunney, Total Quality Management Blueprint, 1999) Inspection is defined as â€Å"activities such as measuring, examining, testing or gauging one or more characteristic of an entity and comparing the results with specified requirement in order to establish whether conformity is achieved for each characteristic† (BS EN ISO 8402, 1995). Quality control is defined as â€Å"operational techniques and activities that are used to fulfill requirements for quality† (BS EN ISO 8402, 1995). Quality assurance is defined as â€Å"all the planned and systematic activities implemented within the quality system and demonstrated as needed to provide adequate confidence that an entity will fulfill requirements for quality† (BS EN ISO 8402, 1995). TQM is the highest level which involves the application of quality management principles to all aspects of the business, including customers and suppliers. It is then defined as the management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society (BS EN ISO 8402, 1995). A number of research studies have been carried out to investigate the impact of TQM factors and implementation (Sila Ebrahimpour, 2005; Khan, 2003; Terzioski, 2006). Miller (1993) reported that success with TQM depends on the facilitating conditions. Leadership, human resource management and some other TQM factors are found to have positive impact on business results (Sila Ebrahimpour, 2005). Therefore, these findings can be reasonably useful in assisting managers so that they can allocate resources to improve their typical routines to obtain the best results. Next, five TQM factors have been selected as the independent variables for this study, namely (1) Customer Focus, (2) Human Resource Management (HRM), (3) Information and Analysis, (4) Leadership and (5) Strategic Planning. It is said that customer focus pays more attention on the customers whereas the rest of TQM factors have focused on the internal aspect of the organization. As for HRM, it focuses on the practices involved in carrying out the â€Å"people† of a management position. Information and analysis is said to be the information and communication technology used to further enhance labor productivity as automation has been widely used. Leadership is important as it creates synergy for achieving favorable business results whereas strategic planning is a set of process undertaken in order to develop a range of strategies that will contribute to achieve organization direction. Further elaboration and review for each variable will be discussed in different sub-section lat er. 2.3.1 Customer Focus According to Dean and Bowen (1994), customer focus is as important as many other TQM practices to organizational performance. Being customer-focused keeps us aware of quality, or rather it focuses our quality initiatives on what really matters to the customers (Cox, 1997). Also, Piercy (1995) says that TQM has too much focused on the internal aspect of the organization and much less attention on the customers. Customer satisfaction begins by discovering precisely what customers want and gearing every practice to their exact expectations (Kearney, 1994). Customer focus has changed mass production to mass customization. In addition, being far from depersonalizing the world, technology has the power to return us to being treated as individuals while getting all the benefits inherent in large-scale enterprise (Cox, 1997). Sousa (2003) pointed out the importance of customer focus lies in the fact that it is the starting point of any quality initiative. However, it has not received enough attention from quality management researchers (Cai, 2009). In the final decade of twentieth century, the term, customer-centered competition has been introduced. Customer-centered company is a company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers (Kotler Armstrong, 2008). It is common to hear the statement â€Å"customer is always right† in any organization. This could be the trend that organization is to focus on customer needs to be customer-led, to be market-oriented, to care for customers and so forth (Piercy, 1995). These are to make total customer satisfaction a strategic foundation for achieving competitive advantage (Kearney, 1994). Customer focus has been therefore defined as the degree to which firms continuously satisfy customer needs and expectations (Philips, Chang, Buzzell, 1983). The difference between customer focus and customer understanding is, according to Lagrosen (2001), mainly a matter of perspective. Customer focus means the activities of the companies are intended to benefit the customer but the customer is seen from the companies own perspective. Therefore, effects are usually being made to gain information about the customers needs and wants, although always in a set framework that originates in the companies view of the product and its features. Whereby, customer understanding needs perspective to be shifted. It means the company needs to gain entry to the customers own perspective and adopt the customers framework of viewing the product (Lagrosen, 2001). Cai (2009) found that organizational customer focus affects customer relationship practices, which subsequently influence production performance and customer satisfaction, and production performance and customer satisfaction lead to financial outcomes. Ooi, Bakar, Arumugam, Vellepan, and Loke (2007) says TQM practices such as teamwork, reward and recognition, customer focus and organizational trust are positively associated with job satisfaction within their organization. For instance, customer focus was found to have a direct influence on emplo

Packaging and the Environment

Packaging and the Environment The growing of the packaging industry is one of the phenomena of the 20 first century. Most people would non oppugn the necessity of packaging in our civilization both domestically and globally. It is perfectly indispensable for the distribution of trade goods and peculiarly for the retail of nutrient and other perishable points. There has been an increasing consciousness and concern about packaging in that the theoretical account of â€Å"use one time and throw away† puts a big load on the environment. Plastic has been the focal point of the attending. Paper merchandises really rapidly go wet and contract and quickly biodegrade to go portion of the natural environment. Tin home base rusts quickly and glass bottles are broken. Plastics do none of these things. They retain their form, composing and visual aspect for a really long clip, and when it is considered that a one pint polythene bottle weighs less than one ten percent of the weight of a glass bottle, the ground for the hapless image of plastics boxing as a constituent of litter is evident. ( Scott, pg. 189 ) In the first topographic point, the cost of plastics has been increasing at a slower rate than that of paper, tin-plate and glass in recent old ages. Second, plastics have certain built-in proficient advantages over the traditional options. They are really much lighter than glass and metals. Unlike paper, they do non absorb H2O, and since wet opposition is indispensable in nutrient packaging both to incorporate the nutrient and to defy bacterial taint from outside the bundle they have an overpowering advantage over paper. This advantage, coupled with the escalating monetary value of wood mush for paper, has led to a steady replacing of paper. ( 190 ) The packaging industry is an recognized facet of modern society and reflects the manner in which personal goods and belongings are looked upon as progressively disposable. This sentiment is a common subject which runs through all facets of the environment. A civilization born and raised in metropolitan countries, is non linked to nature or the environment. Their nutrient comes in a can, bag, bottle, or plastic wrap. The waste goes into bins that are emptied on a hebdomadal footing. Out of sight out of head, and the one manner disposal theoretical account continues. Many communities are mandating recycling as a manner to coerce decreases in solid waste. As the recycling industry grows, boxing interior decorators will necessitate to take recycling concerns into history. Harmonizing to Dr. Susan Selke, a packaging professor at Michigan State University, planing reclaimable bundles will cut down the solid waste disposal burden â€Å" provided a recycling system is in topographic point and the bundles enter the system. † With the important growing in recycling across the United States, guaranting that bundles can be recycled expeditiously and economically is paramount. ( Stana pg.18 ) Industry is faced with doing bundles that fit modern American life styles bundles that offer convenience and easiness of usage for all people every bit good as protect the merchandises. Packagers are committed to equilibrating these economic and societal considerations with environmental issues to bring forth bundles that meet the usage and disposal demands of s ociety. ( pg.19 ) And therein lies the job. Boxing fills trash containers and landfills, enduring far longer than the merchandises it was made to incorporate. It consumes natural resources. And it can besides reassign chemicals into our nutrient, with unknown wellness consequence. ( Claudio, pg. A233 ) If environmental harm is inordinate from the waste of packaging, the best solution is to beef up environmental ordinances regulating the extraction and production of the natural stuffs needed to do the packaging. ( Dewees, pg. 458 ) There is besides what is called User-Pay policies. User-pay policies require families to pay for each bag or can of waste collected, typically one dollar per bag. Paying per unit provides inducements to minimise packaging purchased, to divide recyclables for aggregation, and to minimise waste volumes in general. User-pay policies have by and large been implemented in communities that already have a curbside reclaimable aggregation plan. Empirical surveies of the experience with such plans finds that waste aggregation is reduced by between 14 per centum and 47 per centum. ( pg. 462 ) The costs of curbside recycling plans vary well among legal powers and over clip. This suggests that policy should non oblige curbside recycling in all topographic points and at all times. Again, flexible policies that encourage recycling when its benefits are high and its costs are low would be efficient. ( pg. 467 ) Since packaging is on a planetary graduated table, it would be prudent to look at policy outside of the United States. The German Waste Disposal Law is non merely really luxuriant, but besides instead complicated. A huge sum of statute law has been enacted at national, regional and local degrees, and an huge volume of proficient regulations and ordinances have been introduced, all of which purpose to guarantee that waste disposal and the recycling of used objects are non damaging to the general public assistance. ( Weidemann, pg. 1135 ) Trade and industry are now called upon to â€Å" change by reversal the concatenation of idea † . Packaging should be re-usable, every bit lasting as possible and the stuffs used should be suited for recycling. The decisive instrument for the enforcement of this doctrine is the duty to take back packaging, which the Regulation imposes throughout trades and industries. Taking the Regulation as a theoretical account, the German Minister for the E nvironment plans to publish similar ordinances for farther merchandises. The undermentioned ordinances are in readying: Regulation for the Avoidance and Recycling of Waste from Printed Materials, Regulation for the Avoidance and Recycling of Waste from the Disposal of Vehicles ; Regulation to Guarantee the Introduction and Extension of Returnable Beverage Container Systems ; Regulation for the Avoidance, Reduction and Recycling of Waste from Used Electrical and Electronic Equipment, Regulation for the Disposal of Construction Materials ; Regulation for the Disposal of Boxing incorporating Residues of Noxious Filling Substances ; Regulation for the Disposal of Used Batteries. ( pg. 1137 ) The United States could afford to take a expression at such rigorous policies. There are besides biodegradable options to conventional plastics. Presently the costs of bioplastic polymers are still much higher than that of mainstream plastic opposite number nevertheless, the impacts of biodegradable bioplastics, when come ining the waste watercourse and handled by landfill, recycling, and incineration, enable a possible option for waste intervention through composting as a manner to retrieve the stuffs and to bring forth compost as a utile merchandise. ( Davies, pg. 2129 ) Unlike conventional petrochemical-based polymers, biodegradable and compostable bioplastic polymers can be composted. Making or naming a merchandise biodegradable has no built-in value if the merchandise, after usage by the client, does non stop up in a waste direction system that uses the biodegradability characteristic. ( pg. 2131 ) It is clear from research done that several biodegradable packaging stuffs can be processed in place composting systems and output compost stuffs suited for wor ks growing. This capableness will enable such stuffs to be disposed of in well-run place composting systems and consequence in waste recreation from municipal waste watercourse. ( pg. 2137 ) Bioplastic polymers have great possible to lend to material recovery, cut down the usage of landfills and usage of renewable resources. Widespread public consciousness of these stuffs and effectual substructure for rigorous control of enfranchisement, aggregation, separation and composting will be important to obtaining these benefits in full. ( pg. 2138 ) In sum-up, recycling is one scheme for end-of-life waste direction of plastic merchandises. It makes increasing sense economically every bit good as environmentally and recent tendencies demonstrate a significant addition in the rate of recovery and recycling of plastic wastes. These tendencies are likely to go on, but some important challenges still exist from both technological factors and from economic or societal behaviour issues associati ng to the aggregation of reclaimable wastes, and permutation for virgin stuff. Though developments at an international and national degree are driving a civilization alteration towards more sustainable direction of waste in concern, it is the enterprises being implemented at a local degree which are ensuing in the most direct impact. ( Hopewell, pg. 2124 ) It is the concern advantage to be gained from effectual waste direction which is possibly the strongest driving force of all. ( Cain, pg. 1430 ) With the coming of â€Å"green† consumerism, concern behaviour forms look set to alter, as over-packaged goods are boycotted and composting enjoys a resurgence. ( pg. 1435 ) Though developments at an international and national degree are driving a civilization alteration towards more sustainable direction of waste in concern, it is the enterprises being implemented at a local degree which are ensuing in the most direct impact. ( Hopewell, pg. 2124 ) Communities are progressively turning to local environmental establishments ( LEIs ) to turn to unmet environmental challenges. This impulse toward place-based solutions and the creative activity of LEIs is fueled by the desire to do environmental policy more antiphonal to local values and involvements and to travel off from â€Å" one-size-fits-all † environmental plans crafted by distant authorities bureaus. ( Konsiky, pg. 3 ) When it comes to packaging, local communities can instantly make up one's mind what is best for their localised environment. Normally this far exceeds the capacity of a authorities which has no cognition of the local environment or resources. In the 1960’s Sweden had tur ning environmental concern. At the clip different bureaus handled different facets of the environmental issue with really limited powers, since the power to make up one's mind on those affairs rested with the Cabinet or with the County Administration. Their resources were besides really limited. The Governmental Principal Proposal on the Environment of 1965 marked the beginning of a new, integrative stage in Swedish environmental policy. It was the beginning of an incorporate policy. What followed is considered the nidation stage. In 1967, an incorporate administrative organic structure was established. It covered the Fieldss of nature conservancy, H2O and air protection, out-of-door diversion and the protection of wildlife. ( Lundqvist, pg. 95 ) The tendency now is toward the establishing of an increasing figure of demands that make it necessary for fouling industries to take appropriate steps for the protection of the environment. The bureaucratism and the deficiency of communicat ing between bureaus has been cut to a bare minimal ensuing in more immediate action towards environmental concerns. The displacement of focal point demands to be less on packaging and more on policy. Policy is what will do alterations in packaging waste. Presently, political urgency of environmental reform may be weakening. Public support for environmental ordinance remains high, but environmental policy suffers from the ups and downs of the issue attending rhythm. This may merely be a job in a media-controlled society like the United States. But, at least at that place, it undermines the demand for consistent and uninterrupted attending to public policy issues that is indispensable for serious determination devising. ( Mandelker, pg. 108 ) Mandelker continues, the general populace supports environmental reform because it believes it will get away the load of conformity but participate in the distribution of benefits. In short, the public expects a free drive. This does non ever go on, and public support for environmental steps disappears when the true allotment of benefits and loads becomes evide nt. For illustration, in 1970 public resistance Clean Air Act arose when other costs which the Act imposed became evident. Congress was cognizant that effectual control of car pollution would necessitate alterations in transit wonts every bit good as bounds on car pollution. The public doesn’t want to be inconvenienced. They are excessively disconnected from the environment. We all want a clean environment because that is the right thing to make. When it comes down to taking an easy life style, or a clean environment, the populace will take the easy path. One ground is that they have non been educated about the environment and another, the reverberations from mismanaged resources have non affected their day-to-day lives. Any alteration must be extremist. Intervening at the borders is non plenty. What is needed most is to set an terminal to the destructive utilizations of symbolism in environmental political relations. This will non be easy. Political symbols provide a cutoff for mobilising support in a complex society where issue argument is hard, and public attending in the issue attending rhythm is brief. ( pg. 116 ) Public environmental instruction must get down in the schools. It should ramify to every country of life. Movies, media, and the amusement industry, must force environmental consciousness. It is non a short program, nevertheless in one coevals, it could alter the United States if non the universe. A coevals could be formed for zero acceptance of politicians that make determinations based on money alternatively of the good of the common people. There are excessively many illustrations of the calamity of the parks that have been the consequence of the corrupt or greedy few. John Ehrenfeld captures the current sentiment ; losing about wholly from the problem-oriented activities of today is a vision of a universe that is sustainable, even a definition of sustainability is losing. No admiration that we move frontward merely on occasion, alternatively floating largely sideways or backward. ( pg. 48 ) In our coevals, we exhibit a religion in instruction which is firm. In malice of grounds to the contrary, we believe that cognition leads to virtue and that truth will so bring forth goodness. ( Hurst, pg. 35 ) It is with this cognition that we can alter the destructive class we are heading. Get downing with kids, instruction of the environment and linking each one of them to it on a personal degree will guarantee regard for the environment subsequently. Ehrenfeld closes with a statement that wraps everything up ; as this happens, encoded elements of a sustainability paradigm will get down to replace the old cultural pillars. And as the structuration procedure works its evolutionary manner, the whole system should go more and more unfastened to sustainability, supplying fertile dirt for the visions of the interior decorators to take root. ( pg. 196 ) Plants Cited Scott, Gerald. â€Å"PACKAGING AND THE ‘THROW-AWAY ‘ SOCIETY† . Journal of the Royal Society of ArtsVol. 122, No. 5212 ( MARCH 1974 ) ( pp. 188-202 ) Stana, Edward J. Packaging and the Environment. Natural Resources & A ; Environment, Vol. 9, No. 2 ( Fall 1994 ) , pp. 16-19. Published by American Bar Association Luz Claudio. OUR Food: Packaging & A ; PUBLIC HEALTH. Environmental Health Perspectives, Vol. 120, No. 6 ( JUNE 2012 ) , pp. A232-A237. Published by: Brogan & A ; Spouses Donald N. Dewees and Michael J. Hare. Economic Analysis of Packaging Waste Reduction. Canadian Public Policy / Analyse de Politiques, Vol. 24, No. 4 ( Dec. , 1998 ) , pp. 453-470. Published by: University of Toronto Press Clemens Weidemann. GERMANY: Regulation ON THE AVOIDANCE OF PACKAGING WASTE. International Legal Materials, Vol. 31, No. 5 ( SEPTEMBER 1992 ) , pp. 1135-1144. Published by: American Society of International Law J. H. Song, R. J. Murphy, R. Narayan and G. B. H. Davies. Biodegradable and Compostable Alternatives to Conventional Plastics. Philosophic Minutess: Biological Sciences, Vol. 364, No. 1526, Plastics, the Environment and Human Health ( Jul. 27, 2009 ) , pp. 2127-2139Published by: The Royal Society R. Aspinwall and J. Cain. The Changing Mindset in the Management of Waste. Philosophic Minutess: Mathematical, Physical and Engineering Sciences, Vol. 355, No. 1728, Clean Technology: The Idea and the Practice ( Jul. 15, 1997 ) , pp. 1425-1437 Published by: The Royal Society Jefferson Hopewell, Robert Dvorak and Edward Kosior. Plastics Recycling: Challenges and Opportunities. 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A Insurgent Strategy for Transforming Our Consumer Culture. September 2008 Published by: Yale University Press

Post 9/11 Intelligence Reform Impact and the Way Ahead

Final Post 9/11 Intelligence Reform Impact and the Way Ahead Daniel Ratner INTL 444 Professor Mead October 8, 2012 Introduction After 9/11, an event so shocking, and humiliating to both the American people, and the U. S. Government, vast reforms were identified to ensure that an attack of this magnitude never happened again. From the ashes of this despicable act came two major pieces of Intelligence reform. These documents were the 9/11 Commission Report and The Intelligence Reform Act and Terrorist Prevent Act of 2004 (IRTPA).Both documents worked to reform the Intelligence Community (IC), and streamline current processes to improve the sharing of intelligence information, and products. With the sweeping changes mainly through the ITPRA the Intelligence Community is well on its way to being the major muscle group we need it to be acting as a single unit as opposed to separate and individual muscles all trying to lift the same heavy weight.With the findings of the 9/11 commission, th e implementations of the IRTPA have taken long strides, but what can be done better? We will look at the two pieces of legislation, and then compare and contrast the sweeping changes, and if the are going in the correct direction. The 9/11 Commission Report In the wake of the 9/11 attacks, a group of politicians both Republican and Democrats came together to identify shortfalls and introduce a call for reform. According the report, â€Å"Our aim has not been to assign individual blame.Our aim has been to provide the fullest account of the events surrounding 9/11 and to identify lessons learned. † When we as Americans have a major event in the United States, we always look for a scapegoat, the ideas behind the 9/11 commission was built as a bi-partisan group for just this reason. The report takes the events of 9/11 and attempts to paint a picture of a major lack of understanding of the threat we face from radical Islam, as well as other disenchanted with is around the world.Th e 9/11 report goes deep into the history of the events surrounding 9/11, but really only spends about 25 pages of the 450 pages report identifying the shortcomings, and way ahead. Now while this is a macro view of the reforms needed, it does leave much to the imagination. Post 9/11 Reform As we look at the reforms recommended we see that the commission broke the recommendations into major groups, they divided them into ways to give Overall Government Reform.This is subdivided into five categories, a new Unity of Effort between Foreign and Domestic operations in an attempt to mandate primacy in different types of operations to ensure the proper agency is doing the correct job, A Unity of Effort for the Intelligence Community, Unity of Effort in Sharing Information, Unity of Effort of in the Congress, and finally how to better organizing Homeland defenses. While these are all important, the major issue was the lack of ownership and sharing of intelligence between governmental agencies .As the 9/11 commission pushed for counterterrorism reform, it also pointed to a need for intelligence reform. the IC reform was aimed at the way we collect process and disseminate intelligence. The 9/11 commission struck to identify, â€Å"whether the government is organized adequately to direct resources and build the intelligence capabilities it will need not just for countering terrorism, but for the broader range of national security challenges in the decades ahead. This viewpoint looks at the National Intelligence Agencies and strive to focus their power to be both effective, and balanced. Coupled with these factors the 9/11 commission identified six major problems, the structural barriers to performing joint intelligence work, lack of common standards and practices across the foreign-domestic divide. Divided management of national intelligence capabilities, weak capacity to set priorities and move resources, too many jobs, and too complex and secret. Structural Barriers To P erforming Joint Intelligence WorkAlong with the issues of trying to keep ahead of our enemies, we must also be able to share our information with other intelligence agencies, and our allies. As the 9/11 report shows: â€Å"National intelligence is still organized around the collection disciplines of the home agencies, not the joint mission. The importance of integrated, all-source analysis cannot be overstated. Without it, it is not possible to â€Å"connect the dots. † No one component holds all the relevant information. † While all agencies collect information, only through joint integration can we truly paint an accurate assessment of the facts.As a reference, the report cites the Goldwater Nichols legislation of 1986, in which Operations as a whole were better envisioned though joint co-operative training. It shows the strengths of these types of events and why we must incorporate more joint intelligence to be successful. Lack Of Common Standards and Practices Acro ss the Foreign-Domestic Divide This portion of the report goes on to show the issues we have in the cases of both database management and dissemination of information. In cases of information gathered both home and abroad, there are issues with integration and synchronization of this workflow.Many have cited and shown how across the IC there are multiple databases, of which there is no conduit to share information, multiple programs collecting the same data, but are not cross-matched, and in many cases redundant entries are made, and then not managed creating an abundance of information unable to be processed due to a lack of manpower. Divided Management of National Intelligence Capabilities As the IC swelled in the post World War 2 and Cold War eras, we saw the abilities of many agencies in collections dwindle and collapse.The report shoes the degradation of the CIA’s ability to collect IMINT, and SIGINT. As the NSA, NRO NGIA, and other have been created, the HUMINT, OSINT a nd other intelligence collected by the CIA has had issues being validated due to the inability to task other agencies assets. Some of these issues were solved through their acquisition of their own satellites and some reform, but again we see information that is collected by a sole agency, which is not easily shared or validated by an outside source. Weak Capacity to Set Priorities and Move ResourcesThe task organization of the IC and the way in which it is managed fell on the Director of Central Intelligence, giving the CIA free reign in many cases, and also in many cases too much ability to mismanage or squander resources. As they struggle to manage these resources, and ensure all members of the IC are covered for what they need, there was little oversight in the ability to prioritize collection efforts. Moreover, there was little though given to how to best manage , â€Å"what they collect or the way they collect it. † Too Many Jobs As of the time of the 9/11 report the DC I had three jobs.Running of the CIA, manage the other members of the IC, and head analyst for the President of the United States. Any one of these positions is a capstone to a successful career; in the days of 9/11 it fell on one person. As the report goes on to show, is the fact that, â€Å"No recent DCI has been able to do all three effectively. Usually what loses out is management of the intelligence community†¦Ã¢â‚¬  This overtasking of an individual is not only reckless, but in many cases gave too much power to the CIA. The report finds that the DCI has three major shortcomings.They find that the DCI lacks the ability to control the funds allocated to the IC, the ability to remove or replace agency heads, and the ability to set the quality control and standardization of collection efforts. Too Complex and Secret As if all the previous five findings were not enough, we also see the issue of a cumbersome and hidden group of organizations. At the time of the 9/11 report, th e IC was comprised of 15 agencies, mainly managed by a single entity. This coupled with no clear roadmap to how the groups interact, whom they report to, and how they fund operations.Intelligence Reform and Terrorism Prevention Act of 2004 (IRTPA) Out of the ashes of the events of 9/11 and the reforms brought forth by the 9/11 Commission report, came the Intelligence Reform and Terrorism Prevention Act of 2004 (IRTPA). This legislation known as S. 2845  was introduced by Senator  Susan Collins  of  Maine. The bill was enacted after being signed by the President on December 17, 2004. This legislation strove to take the 9/11 Commissions findings and implement them into law. As mentioned at the beginning of this paper, we mentioned six major problems the IC faced.Being that the IC was managed mainly based on the National Security Act of 1947, the IRTPA brought changes to the IC by taking the bad and refining the good of each item. The major change seen in the IRTPA was the crea tion of the Director of National Intelligence. As we had seen in the 9/11 report, the DCI was way too overtasked, and the need for an Intelligence Community to have a director. The Structural Barriers to Performing Joint Intelligence Work In the wake of 9/11 the Joint Intelligence Community Council.This council Chaired by the Director of National Intelligence, is comprised of all major Presidential advisors. It is chartered to â€Å"†¦assist the Director of National Intelligence in developing and implementing a joint, unified national intelligence effort to protect national security†¦Ã¢â‚¬  This council also in the matter of advising the Legislative branch, may make recommendations to improve the IC. Lack of Common Standards and Practices Across the Foreign-Domestic Divide With the creation of the Director of National Intelligence (DNI) came the call for a â€Å"performance of common services. This charge stands to ensure that services previously not shared, managed, or understood are standardized. It also stands to provide a set of â€Å"standards† for the agencies to follow, and hence stay regulated. Divided Management Of National Intelligence Capabilities Under the National Security Act of 1947, the DCI was the head of the IC, but under the IRTPA, a new position was enabled. The new position Director of National Intelligence, appointed by the President of the United States. This change gave the DCI more oversight of the CIA, and gave the President a subject matter expert, one who had a single focus job.This also gives the DNI the ability to manage the tasking of national collection assets, a job not really performed before. Weak Capacity to Set Priorities and Move Resources In the case of the ability to set priorities, once again the charge goes to the DNI. He is charged to â€Å"establish objectives, priorities, and guidance for the intelligence community to ensure timely and effective collection, processing, analysis, and disseminatio n†¦Ã¢â‚¬  This charge gives the DNI the ability manage resources, requirements, conflict resolution between agencies to include the use of assets, and collection platforms.The only person the DNI must concede to the President. Too Many Jobs While we had an issue of the DCI having too many jobs before, some might say that the DNO now has too many jobs. This is a misconception, since the DNI has no intelligence agency to manage, rather he has department heads to manage that job. He instead focuses on the seamless and integrated manager of the whole gambit of intelligence. Too Complex and Secret The final goal of the IRTPA served to take the mystery and lack of oversight out of the IC. The establishment of an Inspector General to the DNI was enacted under the IRTPA.This office serves to manage ethical matters, settle complaints of favoritism, and ensure civil liberties are upheld through the actions of the IC and concurrence with National and International Laws. Other Changes Dri ven by the IRTPA The four findings recommended by the legislation are the following: (1) Long-term success in the war on terrorism demands the use of all elements of national power, including diplomacy, military action, intelligence, covert action, law enforcement, economic policy, foreign aid, public diplomacy, and homeland defense. 2) To win the war on terrorism, the United States must assign to economic and diplomatic capabilities the same strategic priority that is assigned to military capabilities. (3) The legislative and executive branches of the Government of the United States must commit to robust, long-term investments in all of the tools necessary for the foreign policy of the United States to successfully accomplish the goals of the United States. (4) The investments referred to in paragraph (3) will require increased funding to United States foreign affairs programs in general, and to priority areas as described in this title in particular.By breaking these findings out, we can better see how the IC can transform and flex the major muscle it has the ability to do. While there were pages and pages of changes, and background these four findings standout as the major players in policy reforms. Long-term Success in the War on Terrorism To be successful in the war on terror, we must utilize all possible assets and allies assets to our advantage. To do this we need to focus our efforts by sharing information, and ensuring that agencies are receiving timely and relevant updates to collected intelligence to ensure overall success.This sharing is critical to both foreign and domestic interests. Balance of Diplomatic, Economic and Military Influences The even balance of lethal, non-lethal and Humanitarian actions must be monitored and controlled. Too much use of any of these can degrade the ability of the United States and it’s ally’s effects in foreign actions. It is also important to remember that even in an attempt to show ourselves as a â⠂¬Å"hard target† we must show compassion and understanding to those less fortunate than us.This is a necessity if only because we must show the rest of the world that we are not so devoid of emotion that we can relate with their plights and ways of life. Overall Governmental Commitment to Success The war of terror is a marathon not a race. Only though the applied funding, legislative drive to ensure resources, and the executive branch push to allow success of the IC can we succeed in the war on terror. We cannot allow political infighting, election cycles, opinion polls, or other media-like reports to stop our drive for the end-state.While not always pretty, cost-effective, and popular, the needs of the IC to gather raw data must be protected. Added distractors such as political infighting in cases such as the passing, or re-authorization of the Patriot Act are great examples of the dangers the IC faces in achieving its goals. Commitment to Success and its Costs As stated abov e, this marathon is not always going to be cost-effective. Emerging technologies, payouts to sources, replacing of equipment, and other costs, not always made privy to the general public must be supported.Failure to the fund the IC can be detrimental to their success. While oversight is needed to ensure embezzlement is not a factor, the budget increases the IC requests should not be delayed or jeopardized by political adversaries, nor used as a talking point. This is currently seen in the $500 Billion defense cuts enacted by supercommittee legislations as face now. Conclusion As we see the changes made in the past 8 years since it’s inception, the IRTPA has helped the IC, but has not fixed it yet.While the DNI creation was a good thing, we do still see cases of the DNI have too much responsibility, and too much work. In some cases the added changes have brought more costs in bureaucratic startup, oversight, and staffing. While the need to separate the DCI from the rest of the agencies was important, the IRTPA has limited the CIA’s abilities an a variety of ways. Other advantages have been the information sharing of intelligence. The sharing has instituted policies and procedures as well as shared technology serves to better share information in a common platform.All things being combined, the IRTPA has been a game changer for the IC, only through reform, and through lessons learned will we strengthen and improve our practices, keeping our country safer. Bibliography 9/11 Commission. The 9/11 Commission Report: Final Report of the National Commission on Terrorist Attacks Upon the United States. Report, Washington, D. C. : U. S. Government Printing Office, 2004. Andrew, Christopher. For President’s Eyes Only: Secret Intelligence and the American Presidency from Washington to Bush. New York: Harper Press. Beckner, Christian.Implementing the 9/11 Commission Recommendations: An Analysis. http://www. hlswatch. com/sitedocs/Implementing%20the%209 11%20Commission%20Recs. pdf (accessed October 03, 2012). Congress, 108th. INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004. 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