Singidunum Journal - Vol 11 No 2 by Singidunum University

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Professor Milovan Stanišić, Singidunum University mstanisic@singidunum.ac.rs Emeritus Slobodan Unković, Singidunum University sunkovic@singidunum.ac.rs Professor Francesco Frangialli, UNWTO frangialli@gmail.com Professor Gunther Friedl, Technische Universität München gunther.friedl@wi.tu-muenchen.de Professor Karl Ennsfellner, IMC University of Applied Sciences, Krems karl.ennsfellner@�h-krems.ac.at Professor Gyorgy Komaromi, International Business School, Budapest gyorgy@komaromi.net Professor Vasile Dinu, University of Economic Studies, Bucharest dinu_cbz@yahoo.com Professor Ada Mirela Tomescu, University of Oradea, Oradea ada.mirela.tomescu@gmail.com Professor Radojko Lukić, University of Belgrade rlukic@ekof.bg.ac.rs Professor Alexandar Angelus, Lincoln University angelus@lincolnuca.edu Professor Krunoslav Čačić, Singidunum University kcacic@singidunum.ac.rs Professor Verka Jovanović, Singidunum University vjovanovic@singidunum.ac.rs Professor Milan Milosavljević, Singidunum University mmilosavljevic@singidunum.ac.rs Professor Olivera Nikolić, Singidunum University onikolic@singidunum.ac.rs Professor Budimir Stakić, Singidunum University bstakic@singidunum.ac.rs Professor Mladen Veinović, Singidunum University mveinovic@singidunum.a.crs Professor Jovan Popesku, Singidunum University jpopesku@singidunum.ac.rs Professor Zoran Jeremić, Singidunum University zjeremic@singidunum.ac.rs Associate Professor Christine Juen, Austrian Agency for International christine.juen@oead.at Mobility and Cooperation in Education, Science and Research, Wien Associate Professor Anders Steene, Södertörn University, Stockholm/Hudinge anders.steene@sh.se Associate Professor Ing. Miriam Jankalová, University of Žilina miriam.jankalova@fpedas.uniza.sk Associate Professor Bálint Molnár, Corvinus University of Budapest molnarba@inf.elte.hu Associate Professor Vesna Spasić, Singidunum University vspasic@singiduunm.ac.rs Associate Professor Goranka Knežević, Singidunum University gknezevic@singidunum.ac.rs Associate Professor Michael Bukohwo Esiefarienrhe, University of Agriculture, esiefabukohwo@gmail.com Dept. of Maths/Statistics, Markurdi Associate Professor Nemanja Stanišić, Singidunum University nstanisic@singidunum.ac.rs Assistant Professor Patrick Ulrich, University of Bamberg patrick.ulrich@uni-bamberg.de Assistant Professor Konstadinos Kutsikos, University of the Aegean, Chios kutsikos@aegean.gr Assistant Professor Theodoros Stavrinoudis, University of the Aegean, Chios tsta@aegean.gr Assistant Professor Marcin Staniewski, University of Finance and Management, Warsaw staniewski@vizja.pl Assistant Professor Gresi Sanje, İstanbul Bilgi Üniversitesi, Istanbul gresi.sanje@bilgi.edu.tr Dr. Aleksandar Lebl, Research and Development Institute for Telecommunications and Electronics, Belgrade lebl@iritel.com E�� O��

Editor-in-Chief: Deputy Editor: Managing Editor: Production Editor: Prepress: Novak Njeguš

Professor Milovan Stanišić, Singidunum University Professor Verka Jovanović, Singidunum University Assistant Professor Svetlana Stanišić Stojić, Singidunum University Assistant Professor Gordana Dobrijević, Singidunum University Design: Aleksandar Mihajlović

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CONTENTS

1 - 10

Adapting the TSA to measure economic contribution of tourism in Serbia Verka Jovanović, Slađana Vukasović

11 - 19

Information technologies in knowledge economy Jelena Đorđević Boljanović, Jelena Vukašinović, Mladen Veinović

20 - 29

QR code based marketing in India and Japan Hemant Bamoriya

30 - 44

Reinvention of the public sector: Total quality management and change management Konstantinos M. Karyotakis, Vassilis S. Moustakis

45 - 53

Differences in motivation of health care professionals in public and private health care centers Lepa Babić, Boris Kordić, Jovana Babić

54 - 59

Instructions for authors III

SJAS 2014, 11 (2): 1-10 ISSN 2217-8090 UDK: 338.486.1.02(497.11) ; 005.311.1:338.48 DOI: 10.5937/SJAS11-4463 Review paper/Pregledni naučni rad

ADAPTING THE TSA TO MEASURE ECONOMIC CONTRIBUTION OF TOURISM IN SERBIA Verka Jovanović1,*, Slađana Vukasović2 Singidunum University, Department for Postgraduate Studies 32 Danijelova Street, Belgrade, Serbia 1 Singidunum University, PhD student 32 Danijelova Street, Belgrade, Serbia 1

Abstract: The Tourism Satellite Account (TSA) enables estimating the direct contribution of tourism consumption to the national economy. The World Tourism Organization (UNWTO), the Organization for Economic Cooperation and Development (OECD) and the Statistical Office of the European Communities (Eurostat) have proposed the methodological framework for Tourism Satellite Account. The United Nations Statistical Commission (UNSC) approved its use in March 2000. Conceptually, TSA is compliant with other statistical frameworks such as the System of National Accounts (SNA) and the Balance of Payments (BOP) and it links tourism statistics and the SNA standard tables. The main objective of the TSA is to provide a better understanding of the scope and value of the tourism industry in Serbia, based on the figures and data that can be compared at an international level and whose reliability is very high since they are based on the quality of the official national statistics.

INTRODUCTION There is a growing demand for consistent and comparable data for conducting an adequate economic policy of the country and timely decision making. For that purpose, tourism satellite account method has been used as the statistical method for determining the impact of tourism on economy and for providing details on the specific sectors (agriculture, tourism, health care) in the given country. In order to prepare satellite accounts, it is necessary to have specific and non-standard statistics. * E-mail: vjovanovic@singidunum.ac.rs

Key words: tourism, tourism satellite account (TSA), SNA, WTTC.

For instance, the data on tourism demand are related to the activities of visitors and their share in the acquisition of goods and services. Moreover, information about tourism demand is related to a set of activities that serve the visitors. Satellite account is the extension of the System of National Accounts (SNA), which allows us to understand the size and the role of economic activity that is usually hidden behind them (Adžić, 2006). The System of National Accounts (SNA) represents a complete and harmoniously connected set of macroeconomic balance sheets and tables based on internationally 1

SJAS 2014  11 (2)  1-10

Jovanović V., Vukasović S.  Adapting the TSA

agreed procedures, definitions and classifications (Mladenović et al., 2007). Therefore, SNA will not distinguish between newspapers bought by a local resident or a tourist, whereas in the satellite account, such purchases will be separated. Satellite accounts are linked to but distinct from the central system of the SNA (Virola et al., 2011). From this aspect, the tourism sector provides a comprehensive view of the state and its industry and calculates all the effects of tourism using well-known and proven TSA methodologies: RMF 2008 (UNWTO, 2010) in accordance with the international recommendations for tourism statistics (United Nations and WTO, 2010). In order to understand the concept of satellite accounts, it is necessary to introduce a system of tables which are actually their integral part. Tourism satellite account is a system of ten tables derived from the supply and consumption of goods and services in the national accounts SNA 2008 (United Nations, 2009). For the purpose of getting adequate information, it is necessary to do the following (Eurostat, 2010): ◆ to extract data related to tourism from the official national accounts, ◆ to distinguish spending by visitors that is tourism related from the one that is not tourism related, ◆ to analyze the value of goods purchased by visitors, including sales margins and the underlying value of the goods, ◆ to distinguish spending related to tourism for the purpose of vacation from the tourism buisness, ◆ to change the gross value of travel packages in the national accounts into net values required by TSA (the purpose is to separate the services by the organizer of travels as a component of packages).

THE STRUCTURE OF TOURISM SATELLITE ACCOUNT The TSA is considered the most suitable method for assessing the contribution of tourism to the economy of a certain country (Wei et al., 2013). In order to develop the tourism satellite account (TSA), it is necessary to provide resources for its development including structured data, database development, development of the information exchange 2

protocol, access to information for practical analysis and forecasting model (Vukasović, 2010). Tourism satellite account consists of a range of inter-related tables showing the size and distribution of different forms of tourism consumption in a country and its direct contribution to GDP, national value added, income, employment and other macroeconomic measures of national economy (UNWTO, 2013). Satellite account consists of the following 10 tables that comply with the international standards and TSA: RMF 2008 methodology (Eurostat, 2010): 1. Inbound tourism consumption, 2. Domestic tourism consumption, 3. Outbound tourism consumption, 4. Internal (internal) tourism consumption, 5. Production, 6. Domestic supply and internal tourism consumption, 7. Employment in the tourism industries, 8. Capital investment in tourism, 9. Tourism collective consumption, 10. The physical parameters (non-monetary indicators). TSA tables are drawn pursuant to the national accounting system (SNA). They provide information specific to tourism industry and private/public consumption, investment expenditures and some useful information concerning tourist expenditures and tourism employment (Gül, 2013). A minimum set of tables is required for the first phase of TSA. Tables 1-6 and 10 were used as a basis for the design of TSA tables (Šutalo et al., 2009). The above-mentioned tables should include a detailed overview of supply and consumption (expressed as consumption of goods and services by visitors) and activities they create, and their supporting units in the TSA. Tables can be expressed in current or constant prices, in local or foreign currencies. Tables 1 to 3 include categories of tourism expenditures while Table 4 contains an assessment of the total internal tourism consumption (travel expenses of domestic and foreign visitors increased by other components of tourism consumption). In TSA Table 5 (Production account of tourism industries and all other industries), the rows represent commodity whereas the columns represent industries (Eurostat, 2009). Total Input is equal to the sum of intermediate consumption and value added. In the table below, numbers were used to explain the calculation methodology.

15.140 15.140

1. Accommodation services for visitors

1.a Accommodation services for visitors other then 1.b. 1.b Accommodation services associated with vacation home ownership 2. Food and Beverage Serving Services

33.487

140.497

1.601

2.381

5. Water Passenger Transport

12.706

14.829

6. Air Passenger Transport

7. Transport Equipment Rental

5.844

8.969

9.273

17.144

8. Travel 9. Cultural AgenIndustry cies & other Reservation Services

34.285

63.389

Total Tourism Industries

Other Industries

279.212 279.212

63.389

17.144

8.969

14.829

2.381

140.497

76.457

42.713

5.670

15.140

20.810

279.212 666.400

279.212 666.400 215.639

10. Sport 11. Country & Recrespeciﬁc ational tourism inIndustry dustry

12.782

TOTAL GROSS VALUE ADDED OF ACTIVITIES

1.499

4.171

19.813

16.339

36.152

1.104

45.223

33.624

42.833

61.787

78.710

76.457 140.497

24.610

TSA Table 5. Production accounts of Tourism Industries for Serbia in 2011 (in millions RSD) Source: http://www.serbia.travel/download/WTTC_Serbia_Report.pdf

8.918

Intermediate Consumption

5.670

232

603 21.700

3.940

8.315

TOTAL OUTPUT

Value of imported Goods Net of Distribution Margins

Value of domestic Produced Goods Net of Distribution Margins

629

1.752

2.381

152

916

13.913

14.829

1.208

2.701

6.268

8.969

424

7.199

9.945

17.144

672

26.618

36.771

63.389

2.485

89.090

70.464

44.380

96.079 263.647 100.795

183.133 402.753 114.844

279.212 666.400 215.639

12.377

170.757 313.666

0 18.223

76.457

76.457 140.497

4. Road Passenger Transport

B1 Valuables 15.235

36.153

36.152

3. Railway Passenger Transport

0 215.639

5.670

1.b Second 2. Food Home and OwnerBevership age Industry

A.2 Other consumption products

Country Speciﬁc Tourism Characteristic Services

11. Country Speciﬁc Tourism Characteristic Goods

10. Sport & Recreational Services

9. Cultural Services

8. Travel Agencies & Other Reservation Activites

7. Transport Equipment Rental Services

6. Air Passenger Transport Services

5. Water Passenger Transport Services

4. Road Passenger Transport Services

3 Railway Passenger Transport Services

21.700

A.1 Tourism Characteristic Products

6.560

21.700

1.a Hotels and similar

A. CONSUMPTION PRODUCTS

PRODUCTS

TOURISM INDUSTRIES

63.389

17.144

8.969

14.829

2.381

140.497

76.457

42.713

5.670

15.140

20.810

666.400

882.043

Total Output of Domestic Producers

SJAS 2014  11 (2)  1-10 364.442

517.597

882.039

159.554

358.046

215.639

279.212

Jovanović V., Vukasović S.  Adapting the TSA

SJAS 2014  11 (2)  1-10

Jovanović V., Vukasović S.  Adapting the TSA

Given the fact that TSA is calculated based on the information from input-output tables, it turns out that total output (TO) is equal to total input (TI). The table is structured in accordance with the methods published in previous papers dealing with quantitative tourism analysis (Tadayuki, 2008). SP= TO= TI = IC + VA The sum of all products (SP), generated by the hotels and accommodation sector is equal to total output (TO). Industry produces two different products: accommodation services for visitors and food and beverage services (TSA, Table 5) 15.140 + 6.560= 21.700 Concurrently, the total output (TO) is equal to the total input (TI).Total input is the sum of intermediate consumption (IC) and value added (VA) 21.700 = 8.918 + 12.782 Since the total input equals total output according to the I-O method, we get that: Total input = 8.918 + 12.782 = 15.140 + 6.560 = Total output.

TSA Table 5, which represents the production accounts of tourism industries and other industries, generates TSA Table 6 (Domestic supply and internal tourism consumption) along with TSA Table 4 (Internal tourism consumption). Internal tourism consumption is correlated with domestic supply in Table 6. This table is the crucial part of the TSA as it establishes the gross value added attributable to visitor spending for each of the industries that serve the visitors. According to Frechtling (2009), without this table it is not possible to discuss the development of the TSA at all. The table enables us to determine the added value of tourism i.e. tourism GDP. All tables are mutually linked Table 1 and Table 2 generate Table 4, whereas the data from Table 4 and Table 5 generate Table 6, as presented in Figure 1. In order to provide structured data, it is necessary to carry out research for different TSA needs, such as research at the household level, border crossings, places that provide accommodation services, research of carriers, surveys related to popular tourist places, etc. For instance, research of household consumption could be performed using the survey where visitors need to record their expenses in a diary from the beginning till the end of their trip. Research at border crossings is suitable to estimate the costs of international visitors. Data exchange with neighboring countries and their research can be useful for getting more improved data. Conducting research at places providing accommodation services

Figure 1: Tourism Satellite Account Tables Source: http://unstats.un.org/unsd/publication/Seriesf/SeriesF_80rev1e.pdf. 4

SJAS 2014  11 (2)  1-10

is not that complicated. It consists of interviewing guests in hotels and other accommodation facilities. Tourists are interviewed using the diary method or some other reliable method (questionnaires, interviews). Research related to the transport of passengers includes all transportation means, both domestic and international carriers. Such studies provide information on the type of connection; type of transport means used for the purpose of traveling and getting relevant information on whether the tourists are in transit or reside in a particular country. Studies in places where tourists are expected in large numbers, such as popular tourist attractions, coast, shopping malls, restaurants and cafes, duty-free shops, natural and cultural heritage monuments, public events, visiting events, ski resorts, passenger spending in transit, etc., would also be useful. Tables 5 and 6 provide data largely from the national accounts, I-O table, and the balance of payments. Such research has not still been implemented in Serbia, even though it represents the foundation for the development of tourism satellite accounts, and there is no developed input-output table, without which such analysis is impossible. From an economic point of view, they represent an important part of the TSA because they gauge the overall socio-economic importance of tourism in the country. The main aggregates must be applicable within the industry so that they can be compared with other macroeconomic indicators. According to the proposal of the United Nations, UNWTO, Eurostat and OECD relative indicators for calculating the volume of the tourism industry include the following (UNWTO, 2010): ◆ Internal travel expenditures and internal tourism consumption, ◆ Gross value added of tourism activities, ◆ Tourism direct gross value added, ◆ Tourism direct gross domestic product (GDP). Capital investments in tourism, tourism collective consumption, total tourism demand, employment in the tourism industry are the additional indicators. Within the scope of internal tourism expenditure and internal tourism consumption, tourism expenditures of incoming and domestic tourists are displayed, i.e. consumption as the widest scope of expenditures and other types of consumption of incoming and domestic tourists. Gross value added of tourism activities is the sum of the total value added at basic prices of all economic entities in the tourism sector, regard-

Jovanović V., Vukasović S.  Adapting the TSA

less of the extent to which the production i.e. value added of that sector is generated by the tourism spending. Direct tourism value added covers the part of the tourism value-added and other activities generated by tourism demand and it is a measure of direct tourism contribution to the economy of the country. This unit does not cover the effects of other components of internal tourism demand (e.g. impact of gross or collective consumption). Direct tourism gross domestic product is equal to the sum of value added tourism and other activities generated by internal tourism demand and net taxes on products (the difference between taxes and subsidies) included in the value of tourist expenditure at purchase prices. Tourism GDP measures only direct and internal effects of tourist spending, but not the entire tourism demand. It does not take into account indirect and induced effects of tourism. It is also known as the direct contribution of tourism and allows for international comparability (UNWTO, 2010). TSA MEASURMENT OF ECONOMIC CONTRIBUTION OF TOURISM IN SERBIA As Serbia still has no developed tourism satellite account, the World Travel & Tourism Council represents a simulated TSA for Serbia (WTTC, 2013) and provides an assessment of the effects of tourism on the economy. WTTC identifies direct, indirect, and induced impacts on tourism. Direct contribution is mainly related to the economic activities of those entities that are directly related to tourists, such as hotels, travel agents, airlines and other means of transport excluding public transport services (Unković and Zečević, 2009). The indirect contribution is the result of capital investment, government spending, domestic purchases of goods and services from the sectors that are in direct contact with tourists - including, for example, the purchase of food or cleaning services in hotels, service and fuel supply or catering in the aircrafts and IT services of the passenger agencies, etc. (Dwyer et al., 2012). Induced contribution is the result of direct and indirect impacts on the tourism industry. Tourism satellite account is a unique tool available to policymakers in many countries to document the Direct Gross Domestic Product (GDP) and employment contributions of tourism to national economies (UNWTO, 2011). 5

SJAS 2014  11 (2)  1-10

Jovanović V., Vukasović S.  Adapting the TSA

The contribution of travel and tourism to the gross domestic product of Serbia The direct contribution of travel and tourism to gross domestic product in 2013 was 71 billion RSD or 1.9% of GDP. This figure is expected to grow by 6.6% during 2014, amounting to 76.6 billion RSD. The direct contribution of travel and tourism to GDP should grow by 4.9% annually on average, which would reach 124.0 billion or 2.4% of GDP by 2024, as shown in Graph 1. In addition, the same graph shows that the total contribution of travel and tourism to GDP was 215.7 billion RSD in 2013. (5.7% of GDP), while the growth by 6.2 % is expected in 2014, amounting to 229.1 billion, or 6.0% of GDP, with

the growth at an average rate of 4.5% per annum by 2024, totaling 356.0 billion EUR, or 6.8% of GDP. According to the TSA methodology, the contribution of travel and tourism to GDP is calculated in Table 6 TSA: RMF 2008 (WTTC, 2014). The contribution of travel and tourism to employment in Serbia In 2013, travel and tourism directly generated 35,000 jobs i.e. 2.6% of the overall employment rate. This number is expected to increase by 6% this year, rising up to 37,000 employees or 2.7 % of the total employment.

Graph 1: Direct and total contribution of travel and tourism to GDP in Serbia Source: http://www.wttc.org/site_media/uploads/downloads/serbia2014_1.pdf

Graph 2. Direct and total contribution of travel and tourism to employment in Serbia Source: http://www.wttc.org/site_media/uploads/downloads/serbia2014_1.pdf 6

SJAS 2014  11 (2)  1-10

This covers employees in hotels, travel agencies, airway and other passenger services companies (excluding public transport). It also involves the activities of the restaurant industry visited by tourists when they are on vacation. Travel and tourism industry is expected to provide 44,000 direct jobs by 2024, followed by the average annual growth of 1.7% over the next ten years (see Graph 2). The same graph shows that the total contribution of travel and tourism to employment (including wider effects) was 86,500 jobs in 2013, which accounts for 6.4% of the overall employment. It is anticipated that this number will grow to 91,500 employees in 2013, or 5.6%, making up 6.7% of the overall employment. By 2024, travel and tourism could generate 103,000 jobs which makes up 7.7% of the workforce and an average annual increase of 1.2%, during the ten-year period (WTTC, 2014). According to TSA methodology, employment is calculated in Table 7 TSA: RMF 2008.

Jovanović V., Vukasović S.  Adapting the TSA

try will attract 880,000 foreign tourists. It is also anticipated that the arrival of international tourists will reach 1.291 million by 2014, and that they will spend 186.7 billion RSD, which is an average increase of 5.4% per annum (see Graph 3). This notion is consistent with the total cost of inbound international tourists in Table 1 TSA: RMF 2008. This table was made from special consumption generated by daily visitors, and overnight tourists (Eurostat, 2010). Tourism satellite account separates two categories. Thus, the assumption underlying the daily consumption of international visitors would be that they are not the residents of the country they come from, that they do not pay packages to tour operators in the country they are visiting, that they come primarily from neighboring countries and do not use the services typical for overnight tourists. These assumptions should be taken into account when calculating such forms of consumption. Unfortunately, the National Bureau of Statistics in Serbia still has

Graph 3. Visitor exports and international visitor arrivals in Serbia Source: http://www.wttc.org/site_media/uploads/downloads/serbia2014_1.pdf

Visitor exports1 - spending in Serbia by international travelers Consumption in the country by international travelers is a crucial component of the direct contribution of travel and tourism. In 2013, Serbia collected 102.9 billion RSD from international tourists. During 2014, it is projected that this number will increase by 7.4% with the expectation that the coun1

Visitor exports – spending within the country by international tourists for both business and leisure trips, including spending on transport

no developed research on the consumption of daily visitors and overnight visitors. Capital investment in the tourism industry of Serbia Capital investment in Serbia includes the cost of capital of all sectors directly involved in tourism, including investment costs and other tourism related industries, such as new accommodation for visitors, equipment for transport of passengers, restaurants and accommodation facilities available within tourism sector. 7

SJAS 2014  11 (2)  1-10

Jovanović V., Vukasović S.  Adapting the TSA

Graph 4. Capital investment in travel and tourism in Serbia Source: http://www.wttc.org/site_media/uploads/downloads/serbia2014_1.pdf

It is expected that travel and tourism will attract capital investments worth 26.7 billion RSD, and that this amount will grow by 4.0% in 2014, i.e. 1.6% on average annually over the next ten years, amounting to 32.6 billion RSD. The share of travel and tourism in the total national investment will drop from 4.2% in 2014 to 3.6% by 2024 (see Graph 4). These data are consistent with the Table 8 (Capital investment in tourism TSA: RMF 2008). CONCLUSION The success of the tourism industry is often measured by quantitative indicators, such as the number of arrivals and overnight stays, which are collected and produced by the national statistical organizations. As tourism is a very complex social and economic phenomenon, it is very difficult to measure it. Therefore, it is necessary to apply the appropriate calculation methodology such as TSA so as to estimate the volume of tourism industry. Over 60 countries worldwide have completely developed TSA (UNWTO, 2010). Unfortunately, Serbia still has no reliable, complete and structured data sources for the implementation of tourism satellite account. Therefore, besides basic research related to the number of overnight stays, number of arrivals of domestic and foreign tourists and research on travel agencies, it is necessary to conduct other types of research that would contribute to generating reliable data for the application of tourism satellite account. Moreover, it 8

is quite significant to conduct research related to the consumption of tourists, both domestic and foreign, in the country and abroad, and provide all necessary data for the preparation of input-output tables on which the development of TSA tables is based and that are part of the national accounts. With respect to this, it is necessary to conduct research in Serbia that would monitor the number of daily visitors apart from tracking the number of overnight tourists. Also, it is of great importance to choose the sectors that are directly related to tourists (hotels, airline companies, travel agencies, etc.) as well as those that are not directly related to tourists (restaurants, various shopping, public transportation, etc.). If we reduce tourism only to sectors that have a strong relationship with tourists, there is a good chance that we will underestimate the actual size of the tourism industry and vice versa, if we include all sectors that may be associated with tourists, we may overestimate the impact of tourism as an industry. Therefore, it is required to impose certain rules and criteria prescribed in the methodology of TSA RMF: 2008 while formulating groups of industrial sectors that provide services to tourists. It is also essential to provide the required resources including structured data, database development, development of a protocol for information exchange, access to information for practical analysis and model forecasting, since it is the only possible way to create a tourism satellite account - TSA.

SJAS 2014  11 (2)  1-10

REFERENCES Adžić, S. (2006). Privredni sistem i ekonomska politika. Subotica: Ekonomski fakultet. (in Serbian). Dwyer, L., Forsyth, P., & Dwyer, W. (2012). Tourism economics and policy. Bristol, UK: Channel View Publications. Eurostat. (2009). Tourism satellite accounts in the European Union: Volume 3. Luxembourg: Office for Official Publications of the European Communities. Retrieved March 1, 2014, from http://epp.eurostat.ec.europa.eu/ cache/ITY_OFFPUB/KS-RA-09-021/EN/KS-RA-09021-EN.PDF. Eurostat. (2010). European Implementation Manual on Tourism Satellite Accounts. Retrieved March 23, 2014, from http://ec.europa.eu/eurostat/ramon/statmanuals/files/TSA_EIM_EN.pdf. Frechtling, D. (2009). The tourism satellite account: A primer. Annals of Tourism Research, 37(1), 136-153. doi: 10.1016/j.annals.2009.08.003. Frechtling, D. (2011). Exploring the Full Economic Impact of Tourism Policy Making: Extending the Use of the Tourism Satellite Account through Macroeconomic Analysis Tools. Retrieved March 10, 2014, from http:// dtxtq4w60xqpw.cloudfront.net/sites/all/files/unwto_ paper_t20_france.pdf. Gül, H. (2013). Economic impact of an increase in the foreign tourism receipts: A SAM – based income multiplier analysis for Turkey. Advances in Hospitality and Tourism Research, 11(1), 17-36. Mladenović, D., Đolević, V., & Šoškić, D. (2007). Ekonomska statistika. Beograd: Centar za izdavačku delatnost Ekonomskog fakulteta. (in Serbian). Šutalo, I., Ivandić, N., & Marušić, Z. (2009). Ukupan doprinos turizma gospodarstvu Hrvatske: Input - Output model i satelitski račun turizma. Ekonomski pregled, 62 (5-6), 267-285. (in Croatian) Tadayuki, H. (2008). Quantitative tourism industry analysis: Introduction to input-output, social accounting matrix modeling, and Tourism Satelitte Accounts. Oxford: Butterworth-Heinemann. United Nations, & World Tourism Organization. (2010). International recommendations for tourism statistics 2008. New York: United Nations.

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United Nations. (2009). System of National Accounts 2008. New York: United Nations. Retrieved March 13, 2014, from http://unstats.un.org/unsd/nationalaccount/docs/ SNA2008.pdf. United Nations. (2011). Tourism Satellite Account: Recommended Methodological Framework. Retrieved March 13, 2014, from http://unstats.un.org/unsd/publication/ Seriesf/SeriesF_80rev1e.pdf. Unković, S., & Zečević, B. (2009). Ekonomika turizma. Beograd: Centar za izdavačku delatnost Ekonomskog fakulteta. (in Serbian). UNWTO. (2010). Positioning Tourism in Economic Policy: Evidence and Some Proposals. Retrieved March 13, 2014, from http://dtxtq4w60xqpw.cloudfront.net/ sites/all/files/pdf/t20_document.pdf. UNWTO. (2010). TSA data around the world, worldwide summary. Retrieved March 1, 2014, from http://statistics.unwto.org/sites/all/files/pdf/tsa_data.pdf. UNWTO. (2013). The Economic Impact of Tourism: Overview and Examples of Macroeconomic Analysis. Retrieved March 3, 2014, from http://s3-eu-west-1.amazonaws.com/staticunwto/IP_Economic_Impact.pdf. Van de Steeg, A. M. (2009). Accounting for tourism: The Tourism Satellite Account (TSA) in perspective. The Hague: Statistics Netherlands. Virola, R., Reyes, R., Polistico, F., & Oliveros, A. (2011). Things Statisticians wanted to know about the Tourism Satellite Account but were afraid to ask. Retrieved March 3, 2014, from http://www.nscb.gov.ph/stats/ ptsa/Techpaper_PTSA.pdf. Vukasović, S. (2010). Satelitski obračun turizma. Master rad, Univerzitet Singidunum, Beograd, Srbija. (in Serbian). Wei, Ch., Shuib, A., Ramachand, S., & Herman, S. (2013). Applicability of economic models in estimating tourism impacts. Journal of Applied Economics and Business, 1(4), 5-16. WTTC. (2013). Serbia travel & tourism development potential 2011-2023. Retrieved March 23, 2014, from http://www.serbia.travel/download/WTTC_Serbia_Report.pdf WTTC. (2014). Travel & tourism economic impact 2014: Serbia. Retrieved March 23, 2014, from http://www. wttc.org/site_media/uploads/downloads/serbia2014_1. pdf.

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PRIMENA SATELITSKOG RAČUNA TURIZMA ZA POTREBE MERENJA EKONOMSKOG DOPIRNOSA TURIZMA U SRBIJI

Rezime: Satelitski račun turizma (TSA) omogućava procenu direktnog doprinosa turističke potrošnje nacionalnoj ekonomiji. Svetska turistička organizacija (UNWTO), Organizacija za ekonomsku saradnju i razvoj (OECD) i Statistička kancelarija Evropske unije (Eurostat) predložile su metodološki okvir za izradu satelitskog računa turizma. Statistička komisija UN odobrila je njegovo korišćenje u martu 2000 godine. TSA pruža osnovnu konceptualnu doslednost sa ostalim statističkim okvirima poput Sistema nacionalnih računa (SNA) i platnog bilansa i predstavlja sponu između statistike turizma i SNA standardnih tabela. Glavni cilj primene satelitskog računa turizma jeste da se omogući bolje razumevanje razmera i vrednosti turističke industrije u Srbiji, zasnovane na brojkama i podacima koji se mogu porediti na međunarodnom nivou a čija je pouzdanost veoma velika s obzirom da se zasnivaju na kvalitetu zvanične statistike.

Ključne reči: turizam, satelitski račun turizma (TSA), sistem nacionalnih računa (SNA), Svetski savet za turizam i putovanja (WTTC). Received: December 13th, 2013. Correction: Jun, 10th, 2014. Accepted: Jun 24th, 2014.

SJAS 2014, 11 (2): 11-19 ISSN 2217-8090 UDK: 005.94 ; 007:004 DOI: 10.5937/SJAS11-4447 Original paper/Originalni naučni rad

INFORMATION TECHNOLOGIES IN KNOWLEDGE ECONOMY Jelena Đorđević Boljanović1,*, Jelena Vukašinović1, Mladen Veinović1 Singidunum University 32 Danijelova Street, Belgrade, Serbia

Abstract: This paper analyses the importance of information and communication technologies in knowledge management and the impact on the increase of competitive advantage of organizations of their independent neighbouring countries. Comparative analysis has been conducted for the Republic of Serbia, Croatia and Bosnia and Herzegovina. The data of the World Economic Forum concerning the use of information technologies served as the baseline for this study. Moreover, the data from job advertisements announced by employers in these three countries during the period March-May 2013 have been experimentally analyzed. The results show that the application of information technologies is almost the same in all three countries, amounting to approximately 65%.

Key words: information technologies, knowledge economy, skills.

This paper is the part of a research project “Improving Serbia’s competitiveness in the process of accessing the European Union”, number 47028, for the period 2011/2014, which is supported by Ministry of Education and Science of the Republic of Serbia.

INTRODUCTION From their very beginnings, the industries that underwent a period of expansion in the second half of the twentieth century, such as pharmaceutical or information industry, very often were not organized as national units but as international systems in which individual tasks, either those related to research, projecting, engineering, development or testing, were organized at the transnational level (Draker, 2006). That has set great challenges to education system which needs to adequately prepare workers for the jobs that will be performed in the * E-mail: jboljanovic@singidunum.ac.rs

international labour market. Accordingly, it was necessary to determine which knowledge and skills were needed without distinction in the jobs of future knowledge economy. One of the first answers to this question were information technologies and computer skills, as being well conversant with them is nowadays one of the main requirements for almost all positions in almost any organization. Over the past ten years, the progress and development of global information society have affected all segments of economy in such a way that no one can imagine any business process which does not rely on the use of information technologies. 11

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In the European Union, information and communication technologies (ICT) have been recognized as the major factor affecting the economic growth and innovativeness (European Union, 2007), and seven leading initiatives of the economic strategy Europe 2020 include “Digital Agenda for Europe”, which indicates the importance of ICT in modern economic growth and development. Such a trend has also been observed in Serbia. According to the results of the Statistical Office of the Republic of Serbia, 55.2% of households in Serbia had computers at the end of 2012 (Republički zavod za statistiku, 2013). These results support the fact that the share of information technologies in gross domestic product is small, and therefore, it is necessary to conduct serious education system reforms, which primarily needs to allow knowledge sharing in the field of information and communication technologies so that national economy could properly respond to the demands of knowledge economy and that employees could make their contribution to enhancing competitive advantage of their respective organizations. EDUCATION SYSTEM AND SKILLS FOR XXI CENTURY

With development of information technologies, the labour market in knowledge economy has been determined by division into hard skills and soft skills. Hard skills include all those skills, knowledge, techniques and procedures that indicate which knowledge needs to be applied for a certain job, whereas soft skills indicate the manner in which hard skills and knowledge are used in interaction with other people (Vukašinović, 2013). The structure of basic business literacy has changed, so today an individual is considered to be literate in terms of business if he/she possesses three types of knowledge: not only functional linguistic literacy, but also basic numerical and computer skills. However, apart from these basic hard skills, an individual needs to possess basic soft skills in order to get the desired employment and prosper in the modern labour market. The basic soft skills include a whole range of social and emotional skills, communication and self-management skills. In traditional sense, literacy meant just the subject matter knowledge, such as basic analytical skills or linguistic skills. However, in knowledge economy, it is equally necessary to have procedural knowledge defined by personal business skills, which gives us the answer to the question regarding how individuals learn and whether they are able and motivated to continue learning (Draker, 2005). 12

According to the previously stated and unlike traditional literacy which implies the basic numeric and linguistic skills, the modern literacy implies basic computer skills, which challenged education by requiring it to introduce, even in primary schools, the subjects related to basic computer skills, which would enable an individual to develop “computer fluency“ in the course of his/her future education, which is a prerequisite for personal development as well as the development of an organization and society as a whole. The report of the American National Research Council (NRC) published in 1999 first provided the basis for the development of programs that should contribute to “computer fluency” specifying that “computer fluency” requires three types of knowledge: ◆ ability to use available information and communication applications, ◆ knowledge of fundamental principles on which information technologies are based, ◆ intellectual abilities for the use of information technologies for an organization, problem-solving, understanding (Hoffman and Blake, 2003). Based on the Strategy for the Development of Information Society in the Republic of Serbia until 2020, the development of information society needs to be followed by inclusion of all categories of society and development of knowledge and skills related to information and communication technologies and strengthening of the role of information and communication technologies in the education system (Vlada Republike Srbije, 2010). The changes brought by the information society concerning new manners of using information technologies for the most various purposes, such as social networks, You Tube, blogs, mobile phones, iPad, Google and other services available and used on a daily basis through the Internet which primarily reflect the necessity to change the way of learning and education that needs to comply with such technologies. For that reason, the theories of knowledge, learning and lectures are undergoing the process of transition. Learning is today much more than simply memorising and repeating the facts. It is an active, meaningful process that requires engagement of full potentials of an individual in order to find meaning, connection and deeper understanding of what is being learned. On the other hand, lecturing is nowadays much more than delivering the facts and it implies full engagement of a lecturer who needs to motivate a student to undergo com-

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plete learning experience. Information technologies are, on the other hand, more than a tool. They are the basis for the development of knowledge which needs to be supported by commitment to studying, connecting different sources and areas, and creating and participating in social networks for knowledge exchange. The above-stated indicates the gap between the lecturers who have spent their entire careers on developing skills needed for modern education and the necessity to make change in education system in accordance with the new understanding of the terms such as knowledge, learning, teaching and information technologies (Jacobsen, 2010). COMPUTER FLUENCY AND KNOWLEDGE ECONOMY

According to the report of the European Centre for the Development of Vocational Training, the growing demand for professions based on knowledge and intensive business skills is evident in the European Union. Based on the results of the research published in their report Skills supply and demand in Europe, the occupations that will be more in demand include highly professional and not manual occupations, such as management and specialized occupations, which are projected to have more than 8.5 million job openings between 2010 and 2020. According to the same report, professions that will prevail in the total number of newly formed jobs are from the area of technical and natural sciences such as physicists, engineers, life sciences professionals and professionals in the field of medicine and education management (European Centre for the Development of Vocational Training, 2010). Those are exactly the jobs that require computer fluency, and accordingly, this study once again points out to the necessity to use information and communication technologies in the modern knowledge-based economy. If the precondition for survival and advancement in knowledge economy is spreading and sharing of knowledge, its improvement, organization of the existing and collection of new knowledge, then technology certainly plays an important role in the given processes. Some authors consider that having the right technology infrastructure and creating a detailed project plan when implementing new technology is a key strategy to driving business. The significance and usefulness of technology is particularly stressed in the analysis of the basic elements of the knowledge-management concept which should provide individuals, organizations and society as a whole with the real knowledge in the right place

and at the right time, thus creating the environment that will take advantage of any knowledge in an innovative and creative way, better and faster than the existing competition. The above-stated indicates that technology is one of the basic elements of the knowledge-management concept along with people and processes. However, by overemphasizing its importance in knowledge management, the social and human nature of knowledge is sometimes neglected. Undoubtedly, we hold the opinion that it is impossible to neglect the fact that knowledge comes only from someone able to create by connecting information, using experience, new ideas, concepts, intuition and linking it with other knowledge, providing judgements and opinions, and taking necessary knowledge-based actions. Of course, technology is regarded as a necessary and indispensable tool in managing knowledge defined in such a way. IT tools have improved the KM process by increasing the speed, accuracy, cost-effectiveness, better control and operational efficiency and made the implementation of KM practices much easier (Chadha and Saini, 2014). Therefore, by defining the fundamental elements of knowledge management and calling it DNA of knowledge management, Michael Stankosky mentions the so-called four pillars of this concept: leadership (management), organization, learning and technology. By explaining the use of technology, the author particularly emphasises the importance of technologies aimed at supporting and facilitating knowledge management strategy and activities, mainly those that support cooperation and codification of knowledge management strategies and functions (Stankosky, 2005). According to Thomas Davenport and Laurence Prusak, knowledge management requires much more than technology, but that technology or „techknowledgy”, as they call it, is an important part of this process. The basic task of technology applied in the knowledge flow management is to make the knowledge in the mind of individuals or documents widely available to everybody in the organization. Given the value added by a man (context, experience, interpretation), which transforms data and information into knowledge, the ability of technology to adopt and sum up those human contributions makes this technology particularly suitable for business. The authors point out that the role of people in the use of technologies focused on knowledge management is of crucial importance for their success (Davenport and Prusak, 2010). According to 13

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Heejun Park, creation, storage and sharing of knowledge within and among different knowledge societies require coordinated management and exchange of tacit and explicit knowledge. He also claims that technology enables the flow of explicit and tacit knowledge through four models of conversation – socialization, externalisation, combination and internalisation. Technology surely has to be applied through incorporation of other critical elements (business strategy and leadership, organizational structure and learning) (Park, 2005). By expressing his view on the importance of information technologies but giving the priority to the man in the process of knowledge creation, Karl Erik Sveiby (2012) is of the opinion that people have begun to realize that they are just people and not information systems, the core of the value creation. More and more people are becoming aware of the fact that efficiency through information technologies is not enough. The real value for campaigns and society is created only by establishing the environment that would enable people to create and share knowledge. Observed at the level of knowledge-based organization, the prerequisites for successful application of information technologies are certainly the following (Giraldo, 2005): a) the application of information technologies must necessarily be linked to corporate strategy; b) the application of information technology needs to be supported by the leader in the organization; c) organization has to pay attention to employee training regarding the use of the given technology; d) organization has to motivate its employees to use the technology. It is well-known that the use of Internet / Intranet / Extranet technology has a profound impact on the ability of people to share knowledge and act efficiently on the basis of that knowledge. Of course, people play the crucial role in achieving the stated importance of technology – if not used, technology will not serve the purpose (O’Dell et al., 2000). For the purpose of this study, we shall focus on the importance of being conversant with the above-mentioned techknowledgy and development of skills that would enable the use of full potentials of such defined technology in the economy and society based on knowledge. In order to manage the challenges imposed by knowledge economy and continuous technological and information revolution, it is primarily necessary to possess the follow14

ing technology and knowledge-based skills, as well as the knowledge needed for the use of the following methods (Đorđević Boljanović, 2009): ◆ Skills of using ontology and taxonomy. Knowledge comes in different forms: structured, semi-structured or unstructured. In order to organize this knowledge, it is necessary to collect, group and categorize it. It is also possible to create schemes of conceptual lexicon of terms and expressions and relationships among them, which is called “knowledge map” or “ontology”. In order to avoid situations in which everyone organizes knowledge in a special way according to his/her own views and perspectives, ontology has been developed indicating the certain level of organization of information and understating. In the context of knowledge management, ontology can be defined as a formal, explicit specification of a shared conceptualization (Bhat, 2013). Taxonomy of knowledge includes hierarchical classification of terms set out to clearly point out at mutual relationships among the terms. ◆ Search engines skills. A large amount of information that can be obtained via the Internet has to be available in the fastest possible way. Therefore, the search on the Internet is done more by searching for index and not for the whole text, as it would significantly slow down the process of obtaining necessary information. “Search engines” are based on “crawler – indexer architecture” which sends the request to web server asking for new or updated pages. The search engine processes the index through a large number of algorithms and ranges the received results. ◆ Agent technology skills. Agents are computer systems capable of acting independently in the given environment in order to perform the assigned task. These systems may act without interventions of a man. Basically, these systems divide huge complex problems into those smaller, simpler and more convenient for solving. Any data input from a user is treated by this system as a new lecture. The system can predict the behaviour of a user after some time based on the fed form. ◆ Personalisation skills. The main goal of all technologies based on the personalisation is to predict with great precision the needs and desires of each user. In terms of information, technologies based on personalisation can be

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◆

used to reduce the time necessary for searching for specific information. This technology may purify the search for certain information by precisely defined key words used in the requested document. Knowledge of Case-based reasoning (CBR). CBR offers the technique for collecting and storing past problems, their solutions and logic that preceded the solution. The user inputs the description of the existing problem and checks whether the solution to some similar problem from the past can be applied to the current problem. If the past experience can help, the current problem with its estimation and solutions are added to the existing problem for similar situations in the future. The use of Online analytical processing (OLAP). OLAP technique is used when analysing a large amount of data from different perspectives, e.g. in case of an organization which has thirty products in five regions, it is necessary to analyse all these factors in relation to the factor of sale, costs and profit. Data mining skills The term “data mining” imitates observing, searching and discovering new things about the man and implies the treatment of observed data, their analysis and interpretation and integration of results. Tools and resources used in discovery of knowledge in databases are simple, concise and easy to use. They may be expert systems, decision trees, rules of induction, generic algorithm and generic programming, neural networks, associative memories and clustering technique. Data warehouse is a database which contains a large amount of information originating from a wide range of sources. The idea is that data storage serves as the “warehouse” of data that can be used for different analyses. Knowledge of Groupware tools encourages cooperation among people for the purpose of increasing knowledge sharing among them. As a concept, it tends to be applied to information technology which supports cooperation, communication and coordination of activities through space and time, as the information itself is transferred. The use of Expertise yellow pages. In order to enable knowledge sharing within an organization, it is often necessary to find in-

◆

dividuals or groups from one part of the organization who possess knowledge and skills required by another part of the organization. In that sense, “yellow pages” contain the list of all employees in the organization, with the overview of their knowledge and skills. All employees have the access to these data, with a code for intranet system. Intranet portals are usually the websites connecting a large number of sources of information on one web page. The portals should be the entrance to already stated large number of sources of information. The portal does not keep a large amount of information, but connects it. The key feature of the portals is the possibility of their customization and adjustability (Leistner, 2010). E-learning is the generic name used to describe on-line learning, computer-based and web-based trainings. E-learning is the application of the Internet technology with the aim to support spreading of learning, skills and knowledge. E-learning need not necessarily depend on the Internet, but there is a tendency to use different learning technologies such as mentoring, chat rooms, expert discussions, web seminars, online meetings and virtual classrooms. The use of SAP- SAP (German: Systeme, Anwendungen und Produkte, English: Systems, Applications and Products in Data Processing). It is the leading company in production of software for electronic business management. The main SAP product is MySAP ERP, the program that provides a complete set of functionalities for business analytics, finances, human resources management, logistics and corporate services. SAP is taking steps to help to minimize the types of problems imposed by more traditional enterprise software. A growing number of modern organizations are turning to the use of SAP, which enables maximum sharing of knowledge within the organization and extremely high data availability. SAP can now cover all that happens in the business of an organization, thereby respecting the characteristics of different economic branches. A growing number of organizations use the so-called “wikis” as a tool for knowledge sharing. Wikis are on-line databases, which can be supplemented and changed in the 15

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simplest way using any Web browser. The most famous “wiki” today is surely on-line encyclopaedia Wikipedia. However, a large number of organizations, from Microsoft to FBI, use “wikis” to collect knowledge about their employees and thus create an environment in which they can meet each other and cooperate in relation to various issues, from planning the meetings, documenting the best practices, to brainstorming new products and processes. Wikis used in organizations can be divided in three types: single – contributor wikis, group or project wikis and company – widewikis (Poole and Grudin, 2010). Single contributor wikis are those that have only one contributor and are used for personal information management or as easily edited web pages. Group or project wikis, are used as a team or project collaboration tool. Company – widewikis are used as company encyclopedias (Opačić and Veinović, 2012). The concept of “semantic wiki” has recently emerged, integrating the advantages of the wiki with semantic web technologies (Zaidan and Bax, 2011). Having considered the above-mentioned, we can conclude that knowledge economy requires the application of the most advanced information technologies and average knowledge workers should be familiar with most of these technologies (Opačić and Veinović, 2014). Such IT tools facilitate knowledge sharing in different ways, but they all support interactivity (Davison et al., 2013). However, the very application of technology without paying enough attention to the nature, character and specificity of knowledge as a human, social category, inevitably leads to the lack of use of its full potentials. Therefore, in order to achieve the goals imposed by knowledge-based economy and information technologies designed for that purpose, it is necessary to start exactly from a man and his skills to use technology in combination with his ability of innovative knowledge creation.

training of the population to use ICT, but it is primarily the consequence of insufficient use of ICT in business community and state administration. If we start from the basic postulate of knowledge-based economy, and that is, that one organization knows as much as its employees know, i.e. that it is worth as much as its individuals can contribute to creation of added value, then the use of information technologies in business community can be observed only through the use of information technologies by individuals employed in those respective organizations. Having in mind the results of the above-mentioned research, the purpose of this study is to explore the demand for computer skills in these three countries, in order to analyse the use of information technologies, which can provide us with more detailed information regarding the use of information technologies in business community in general. This research should show whether the figures related to the needs of employers for computer fluency of their employees correspond to the data published by the World Economic Forum which shows that the Republic of Croatia is twice better rated regarding the use of information technologies than Bosnia and Herzegovina and the Republic of Serbia. For that purpose, we have analysed the advertisements announced by the employers in these three countries for the period March - May 2013, or more precisely, 586 job advertisements from the Republic of Serbia, 450 from the Republic of Croatia and 200 from Bosnia and Herzegovina, by exploring how many employers, out of the total number of employers, expect from their employees to possess computer fluency for such positions. According to these results, out of the total number of employers in the Republic of Serbia, 69% require computer fluency while 31% do not consider it relevant. The graphical overview is given in Figure 1.

RESEARCH According to the research conducted by the World Economic Forum (WEF) on the use of information technologies in 2012, Serbia is ranked 85th out of 142 countries, Croatia 45th while Bosnia and Herzegovina is on the 84th place on the list. This research indicates that the position of Serbia is not to such extent the result of the level of infrastructure development or 16

Figure 1: Needs of employers for computer ﬂuency of employees in Serbia

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Based on the same criteria, out of the total number of employers in the Republic of Croatia, 66% require computer fluency from their employees while 34% do not. The graphical overview is given in Figure 2:

Figure 2: Needs of employers for computer ﬂuency of employees in Croatia

Our research has showed that the results in Bosnia and Herzegovina are very similar to the results in the other two countries. Namely, out of the total number of employers, 65% require computer fluency while 35% do not. The graphical overview is given in Figure 3.

Figure 3: Needs of employers for computer ﬂuency of employees in Bosnia and Herzegovina

Based on our research, we can conclude that the relationship regarding the need for computer fluency in these three countries is almost the same. Accordingly, we can see that the business community in all three countries has the same awareness of the importance of information technologies for their operations. Therefore, the assumption is that the use of information technologies in these three countries is almost the same, which questions the results published by the Word Economic Forum.

CONCLUSIONS

As ICT technologies have become an integral part of our daily lives, they are also increasingly becoming an integral part of all human activities. The exponential growth in the development of these technologies and their application with the participation of people from all countries in the world, have a significant bearing on the culture and economy at a global level. This impact is such that it cannot be ignored and therefore, the organizations need to adapt and adopt new business strategies. New information technologies significantly simplify and reduce the costs of marketing activities of knowledge management. Communication barriers between the organizations, their clients and partners are disappearing and therefore, they can now participate in the creation of new products and services. The organizations which adapt to the new manner of operation have a far greater chance to succeed than the competition operating in the traditional way. Information and communication technologies, as a global phenomenon, have completely changed the world over the past few decades. The use of ICT is the subject of periodical studies of the Statistical Office of the Republic of Serbia, which annually publishes the latest indicators in this area. Based on the current statistics, 47.5% of households have Internet access, which indicates that permanent Internet access in Serbia is widely spread. As for the companies, the results are even better. Namely, about 99% of the companies use computers and the Internet, while about 74% of them have their official websites. Therefore, it can be concluded that the Internet has also become an integral part of business life in Serbia. According to the research of the World Economic Forum on the use of information technologies in 2012, Serbia is ranked 85th out of 142 countries, Croatia 45th and Bosnia and Herzegovina is on the 84th place. This paper includes comparative analysis of data for the above-stated neighbouring countries. The starting point for the study was the data of the World Economic Forum. The data from job advertisements announced by employers from these three countries during the period March-May 2013 have been experimentally analysed. The obtained results indicate that the application in all three countries is almost the same, amounting to approximately 65%. Therefore, it can be noticed that the received data drastically differ from the data provided by the World Economic Forum. The fact is that the results 17

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of the development of infrastructure or training of population to use ICT are very similar for these three countries, particularly in relation to education or school equipment. Greater differences are mostly the result of insufficient use of ICT in the business community and state administration. REFERENCES Bhat, M.H. (2013). Knowledge organisation systems in digital environment. Trends in Information Management, 9(1), 38-53. Chadha, S.K., & Saini, R. (2014). Information technology support to knowledge management practices: A structural equation modelling approach. The IUP Journal of Knowledge Management, 12(1), 47. Davenport, T.H., & Prusak, L. (2010). Working knowledge: How organizations manage what they know. Boston, MA: Harvard Business School Press. Davison, R.M, Ou, C.X.J., & Martinsons, M.G. (2013). Information technology to support informal knowledge sharing. Information System Journal, 23(1), 89-109. DOI: 10.1111/j.1365-2575.2012.00400.x. Draker, P. (2005). Upravljanje u novom društvu. Novi Sad: Adizes. (in Serbian). Draker, P. (2006). Moj pogled na menadžment: Ideje koje su unapredile menadžment. Novi Sad: Adizes. (in Serbian). Đorđević Boljanović, J. (2009). Menadžment znanja. Beograd: Data Status. (in Serbian). European Centre for the Development of Vocational Training. (2010). Skills supply and demand in Europe: Medium-term forecast up to 2020. Luxembourg: Publications Office of the European Union. European Union. (2007). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: I2010 – Annual information society report 2007. Luxembourg: EUR-OP. Giraldo, J.P. (2005). Relationship between knowledge management technologies and learning action of global organizations. In M. Stankosky (Ed.), Creating the discipline of knowledge management: The latest university research. Amsterdam: Elsevier Butterworth-Heinemann. Hoffman, M., & Blake, J. (2003). Computer Literacy: Today and Tomorrow. Retrieved June 3, 2013, from http://202.116.45.198/xxjsjy/webcourse/course/ ztyx/read/chapter3/COMPUTER%20LITERACYTODAY%20AND%20TOMORROW.pdf. 18

Jacobsen, M. (2010). Teaching in a participatory digital world. Education Canada, 50(3), 13. Leistner, F. (2010). Mastering organizational knowledge flow: How to make knowledge sharing work. Hoboken, NJ: Wiley. O’Dell, C.S., Elliott, S., & Hubert, C. (2000). Knowledge management: A guide for your journey to best-practice processes. Houston, TX: American Productivity and Quality Center. Opačić, M., & Veinović, M. (2012). Usingwikis as knowledge management tools for knowledge sharing and innovation in the times of economic crisis. In Innovative management and business performance: symposium proceedings, Belgrade, Serbia, June 5-9, 2012 (pp. 1090-1095). Belgrade: Faculty of Organizational Sciences. Opačić, M., & Veinović, M. (2014). Implications of information systems use on the development of web 2.0 based knowledge management system framework. In Impactof Internet on Business Activities in Serbia and Worldwide, Belgrade, Serbia, April 25-26, 2014 (pp. 307-312). Belgrade: Singidunum University. DOI:10.15308/sinteza-2014-307-312. Park, H. (2005). Knowledge management technology and organizational culture. In M. Stankosky (Ed.), Creating the discipline of knowledge management: The latest university research. Amsterdam: Elsevier ButterworthHeinemann. Poole, E.S., & Grudin, J. (2010). A taxonomy of Wikigenresin enterprise settings. In WikiSym 2010: Proceedings of the 6th International Symposium on Wikis and Open Collaboration, Gdańsk, Poland, July 7-9, 2010. DOI: 10.1145/1832772.1832792. Republički zavod za statistiku Republike Srbije. (2013). Upotreba informaciono-komunikacionih tehnologija u Republici Srbiji 2013. Retrieved March 3, 2014, from http://webrzs.stat.gov.rs/WebSite/repository/ documents/00/01/14/03/PressICT2013.pdf. (in Serbian). Stankosky, M. (2005). Creating the discipline of knowledge management: The latest in university research. Amsterdam: Elsevier Butterworth-Heinemann. Sveiby, K.E., Gripenberg, P., & Segercrantz, B. (2012). Challenging the innovation paradigm. New York: Routledge. Vlada Republike Srbije. (2010). Strategija razvoja informacionog društva u Republici Srbiji do 2020 godine. Retrieved March 3, 2014, from http://digitalnaagenda. gov.rs/media/docs/strategija_razvoja_informacionog_ drustva_u_republici_srbiji_do_2020-_godine.pdf.(in Serbian).

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Vukašinović, J. (2013). Poslovne veštine u funkciji podizanja konkurentske prednosti organizacija uslužnih delatnosti (str. 21). Doktorska disertacija, Univerzitet Singidunum, Beograd, Srbija. (in Serbian).

Zaidan, F.H., & Bax, M.P. (2011). Semantic wikis and the collaborative construction of ontologies: Acasestudy. JISTEM - Journal of Information Systems and Technology Management, 8(3), 539-554. DOI: 10.4301/S180717752011000300002.

INFORMACIONE TEHNOLOGIJE U EKONOMIJI ZNANJA Rezime: Cilj ovog rada jeste da ispita značaj informaciono-komunikacionih tehnologija u menadžmentu znanja kao i uticaj na nacionalne ekonomije tri nezavisne susedne zemlje. Komparativnom analizom obuhvaćene su Republika Srbija, Hrvatska i Bosna i Hercegovina. Kao polazna osnova za ovu studiju korišćeni su podaci Svetskog ekonomskog foruma o upotrebi informacionih tehnologija. Eksperimentalno su analizirani podaci iz oglasa za posao koje su poslodavci u ove tri zemlje oglasili u periodu od marta do maja 2013. godine. Dobijeni rezultati ukazuju na to da je primena informacionih tehnologija u sve tri zemlje približno ista i da iznosi oko 65%.

Ključne reči: informacione tehnologije, ekonomija znanja, veštine. Received: September 11th, 2013. Correction: July 18th, 2014. Accepted: July 22nd, 2014.

SJAS 2014, 11 (2): 20-29 ISSN 2217-8090 UDK: 659.127 ; 005.511:339.138(520+540) DOI: 10.5937/SJAS11-5504 Original paper/Originalni naučni rad

QR CODE BASED MARKETING IN INDIA AND JAPAN Hemant Bamoriya* Acropolis Faculty of Management and Research Indore Bypass Road, Indore, India

Abstract: Despite the colossal growth of Quick Response Codes (QR codes) in marketing, many critics are worried about effective integration of QR code in marketing mix. The reason is the lack of knowledge about consumers’ beliefs and intentions towards QR codes. Substantial variations in exposure and adoption rate of QR code across cultures further deteriorate the application of QR code in marketing. This study intends to explore consumers’ beliefs and intentions towards QR codes in marketing across different cultures, namely India and Japan. The study also intends to analyze how the selected variables moderate the relationship between beliefs and intentions. A scenario-based experimental design was used and data was analyzed using Structural Equation Modeling and General Linear Modeling. The findings suggest a positive relationship between culture and beliefs as well as between beliefs and intentions. Further on, media and on-campaign instructions are found to be significantly moderating the relationship between beliefs and intentions. Finally, based on the key findings, the study offers some valuable perspectives on the evolving nature of QR codes in marketing and provides implications for marketers.

INTRODUCTION Background Marketers have a growing interest in mobile phones as a marketing channel (Wohlfahrt, 2002). Quick Response code (QR code) is one of the most innovative modes of mobile marketing. QR code is a 2D code which once scanned using Smartphone -with a scanning application software like ScanLife, i-nigma and an active Internet connection-connects the user 20

* E-mail: hemantbamoriya@gmail.com

Key words: advertising, culture, mobile marketing, QR code.

to some specific online content (e.g. a webpage), delivering e-coupons etc. (Bisel, 2011). Denso-Wave (Japan) was the first one to use QR code back in 1994, for quick and convenient tracking of the inventory. Later on, marketers became aware of QR code functionalities i.e. its benefits in usage – they realized that QR code functions could be transferable to marketing domain i.e. that they offered the potential to connect easily and swiftly with customers on-the-go (the quick part of QR code) and encourage customer engagement (the response part of QR code).

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Bamoriya H.  QR code based marketing in India and Japan

Figure 1: Sample QR code

QR code offers plenty of advantages to marketers due to its immense technological capabilities. QR codes are open as Denso-Wave (developer of QR code) did not patent them. Thus, it is easier for both marketers and mobile users to get the tools for generating, scanning or decoding of the QR codes. QR code is omnidirectional and scannable, which means that unlike barcodes, it can be scanned from any angle, thus providing further consumer facilitation. QR codes also offer great versatility to marketers as they can be enlarged to the size of a billboard or minimized to the size of a stamp. Even these black and white codes can easily be transformed to “designer” QR code by adding colors and putting brand name or logo in the forefront of the code image (Podfigurny, 2011). Furthermore, QR code enables marketers to track the number of scans on each code and identify the source medium of the scan. This is certainly very helpful to marketers in measuring consumer activity at the micro level. Finally, at their best, QR codes can bridge the online and offline worlds as a QR code offers the possibility of integrating online (e.g.on a website) and offline content (e.g. a newspaper ad). Thus, QR code enables markets to exercise creative multichannel marketing (Tolliver-Walker, 2011). For consumers, it means offering an exciting avenue of interactivity, engagement and exploration (Bisel, 2011). All of the above-mentioned indicates that the QR code can become the central core of tremendous customer engagement tools. Nowadays, the usage and analysis of QR codes has become one of the most widespread marketing trends, especially in Japan, the USA and Western Europe. Furthermore, with the adoption of Smartphones, the popularity of QR code is rapidly increasing across Asia, in particular in India, Korea, and Indonesia. During the period from January 2010 - January 2011, QR code scans increased worldwide by a whooping rate of 45-49%. Moreover, 11 out of 50 Fortune companies1 incorporated QR codes into 1

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue.

their marketing strategy. Undoubtedly, enormous growth has been observed worldwide over the last 2-3 years, in both QR code usage and scan (Daniells, 2011; Tolliver-Walker, 2011). Many critics think that though QR code itself is a very powerful and cost effective tool, the marketers are not clearly focused on its added value, thus failing to drive customer engagement through QR codes (Podfigurny, 2011). That could be the result of insufficient knowledge about consumers’ beliefs and intentions towards QR codes. Scope of the Study Several previous studies (e.g. Probst, 2012; Okazaki et al., 2012) preliminary explored the use of QR codes in marketing. However, they just focused on the part which refers to consumers’ perceptions. Also, the focus of their attention was only on developed countries (USA and Japan respectively); whereas there has been practically no research on developing countries such as India. This study focuses on in-depth exploration of consumers’ beliefs and intentions towards the use of QR codes in marketing. The study further attempts to examine the phenomenon across cultures such as India and Japan. The influence of culture on consumers’ beliefs and attitudes towards marketing promotion is well documented in the literature (Durvasula and Lysonski, 2013; Ko et al., 2005; La Ferle et al., 2008; Wang and Sun, 2010a; Wang and Sun, 2010b; Mooij, 2011). India and Japan are the two countries selected for cross-cultural comparison because they both have entirely different cultural orientation (Hofstede et al., 2010). These differences render a meaningful comparison to examine the impact of culture on QR code marketing. As Japan has a high 40% penetration of Smartphones – which are the basic devices for code scanning- it enjoys most QR code scans (Daniells, 2011). On the other hand, Smartphone penetration in India is low and Smartphones constitute only approximately 8% of the total number of mobile phones in the country. Furthermore, India has only 1.8% of total global QR codes in terms of country of origin. However, it is witnessing rapid diffusion of mobile Internet and Smartphones (Daniells, 2011), so it is sensible to analyze QR code marketing in India along with Japan. At last, the study tries to investigate the effects of the moderating role of the selected variables on the relationship between culture and consumers’ beliefs. 21

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Bamoriya H.  QR code based marketing in India and Japan

LITERATURE REVIEW

The relationship between beliefs and behavioral intentions In psychology, intentions of an individual are supposed to capture motivational factors that influence a particular behavior. Many authors tag individual’s intention to be the outcome of his/her set of beliefs (Wu and Wang, 2005). As a general rule, an individual generates beliefs about an object by associating it with certain attributes and ultimately links it with particular intention. According to Wang and Sun (2010a), such beliefs are considered to be the prevailing determinants of an individual’s intentions. In a similar manner, various authors report consumers’ beliefs about marketing promotions - both offline and online media, to be one of the determinant factors of consumers’ intentions towards advertising (Patnaik and Patnaik, 2005; Hanafizadeh and Behboudi, 2012; Tsang-Sing et al., 2004; Karson et al., 2006; Bamba and Barnes, 2006; Chun and Wan, 2009; Mafe´ et al., 2010; Wang and Sun, 2010a; Bamoriya and Singh, 2012). In the context of mobile marketing, Bamoriya and Singh (2012) empirically reported that consumers’ beliefs about mobile marketing influence their intentions in terms of receiving SMS ads. Similarly, Mafe´ et al. (2010) explored the consumers’ beliefs towards SMS mediated promotions. They reported that consumers’ beliefs strongly influence their intentions to respond to mobile promotion. As QR codes are one of the modes of mobile marketing, this study assumes that consumers’ beliefs about QR codes are positively associated with their intentions. Thus, it is suggested to follow the below given directional hypothesis: H1- The stronger positive beliefs towards QR codes in marketing, the more likely one will intend to scan a QR code. Culture, beliefs and marketing promotions According to Hofstede et al. (2010), an individual’s set of beliefs can be tied into five cultural dimensions - individualism/collectivism, power/distance, uncertainty/avoidance, masculinity/femininity and long-term/short-term orientation. Index values of all these dimensions vary across cultures, as reflected in Table 1 for India and Japan (indicating cultural differences between these two countries). Mooij (2011) intensively studied the application of the Hofstede’s cultural dimensions in international marketing con22

text and reported that different sets of beliefs towards marketing promotion prevail due to cultural differences (significantly different index values). Dimension

India

Japan

Individualism

Power_Distance

Uncertainty_Avoidance

Masculinity

Long-term_Orientation

Table 1: Cultural dimensions – Index values Source: Hofstede (2010)

The relationship between culture and beliefs towards marketing promotions is well-researched and documented (Ko et al., 2005; Durvasula and Lysonski, 2013; Mojsa and Rettie, 2003; Al-Juhiam 2008; La Ferle et al., 2008; Usman et al., 2010; Wang and Sun, 2010a; Wang and Sun, 2010b). In general, findings from previous studies suggest that beliefs towards marketing promotions vary across cultures; thus these variables should be intrinsically linked. Furthermore, with rapid globalization marketers are becoming more interested in cross-cultural studies in various business domains including mobile marketing and the use of QR codes within it. Insights from such studies would enable them to understand culturally diverse markets and respond accordingly. Hence, it will be of vital importance to examine beliefs about QR codes in marketing across cultures. However, due to practically non-existence of research on comparing QR codes in marketing between India and Japan or any other country, it would be premature to predict how culture influences these two variables. Hence, it is proposed to follow the non-directional hypothesis: H2 - Culture will influence individual’s beliefs towards QR codes in marketing. Variables moderating the relationship between beliefs and intentions Preliminary findings of focus group study of Okazaki et al. (2012) hint that the location of the customer where s/he would encounter QR code (e.g. home or bus stop) and the type of media used (say magazine or billboard) may influence customer’s intention to scan a QR code. Nevertheless, there is no explicit academic literature on the variables which might moderate the relationship between beliefs towards QR codes in

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Bamoriya H.  QR code based marketing in India and Japan

marketing and subsequent intentions. Apart from media and location, there could be other possible moderators affecting the above-mentioned relationship between beliefs and behavioral intentions. Thus, a couple of informational interviews were held with a range of subject matter experts to explore the area. The majority of the interviewed experts strongly reckon that media and location should moderate the relationship between beliefs Figure 2: Conceptual model and intentions in the context of QR codes in marketing, thus adding vaDesign lidity to the findings of the qualitative study by Okazaki et al. (2012). Furthermore, the For the purpose of this study, a multi-channel majority thinks that on-campaign instructions may attribution modeling (3 (media) by 2 (location) by 2 be very critical in driving the desired behaviour, as (on-campaign instructions) ‘scenario based experigeneral awareness about QR code is still not very mental design’) was used to test the hypotheses (see high. The online marketing survey conducted by the Table 2). The selected media types were - magazine market research firm “Simpson Carpenter” supports (coded as 3), product packaging (coded as 2) and this argument; the results of the survey indicate that pamphlet (coded as 1). Similarly, home (coded as 2) only 36% of consumers know what a QR code is and and shopping malls (coded as 1) were selected as the how to scan it (Charlton, 2011). Hence, based on the location where customer will encounter a QR code. above-given views and studies, the following non‘On-campaign instructions’ variable was chosen as didirectional hypotheses are proposed: chotomous; with instructions (coded as 2) – a scenario H3 - Type of media used will moderate the relawhere marketing communication explicitly specifies tionship between beliefs towards QR codes how to scan QR code, where to find application and in marketing and intention to scan QR what to expect after a scan, and without instructions codes. (coded as 1). These twelve scenarios (3×2×2) were intended to be administered across cultures, where H4 - Customer location will moderate the relaIndian culture was coded as 1 and Japanese culture tionship between beliefs towards QR codes as 2. in marketing and intention to scan QR codes. A hypothetical person (Mr. Z) was used in all of the above-mentioned scenarios to discourage social H5 - On-campaign instructions will moderate desirability effects. Hence, a narration of each scenario the positive relationship between beliefs was prepared describing location (home/shopping towards QR codes in marketing and intenmall) of Mr. Z and media (newspaper/product packtion to scan QR codes. aging) on which QR code is placed. In six scenarios with on-campaign instructions, adjacent to the QR RESEARCH METHODOLOGY code, some clear instructions were placed regarding what Mr. Z should do to get a code reader, how to scan the code and what would be there for Mr. Z if Research framework he scans the code. Nonetheless, QR code had no such instructions in remaining scenarios i.e. without onFigure 2 presents the conceptual model underlycampaign instructions. All scenarios included a visual ing this study. The model assumes that culture influrepresentation of a QR code along with narration. ences beliefs towards using QR codes in marketing. Subsequently, each scenario was subject to pretest In addition, these beliefs influence intention to scan using convenience sampling to gauge clarity of the QR code. This relationship between beliefs and intenscenario and determine face validity. Based on the tions is moderated by variables-media, location and total of 33 responses, minor rewriting was done in two on-campaign instructions. open-ended questions, and scenarios were finalized. 23

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Bamoriya H.  QR code based marketing in India and Japan

Media

Location

On-campaign Instructions (OCI)

Scenario

Magazine Magazine

Home

With OCI

Home

Without OCI

Magazine

Shopping Mall

With OCI

Magazine

Shopping Mall

Without OCI

Product Packaging

Home

With OCI

Product Packaging

Home

Without OCI

Product Packaging

Shopping Mall

With OCI

Product Packaging

Shopping Mall

Without OCI

Pamphlet

Home

With OCI

Pamphlet

Home

Without OCI

Pamphlet

Shopping Mall

With OCI

Pamphlet

Shopping Mall

Without OCI

Table 2: Study’s experimental scenarios

Scale Beliefs about QR codes in marketing were measured prior to administrating scenario based experimental study. In order to measure it, a 4-item five point semantic differential scale (worthless/valuable, unnecessary/necessary, unimportant/important and insincere/sincere) was adopted from Durvasula and Lysonski (2013). Cronbach’s alpha values were also exceeding recommended value of 0.7 for both Indian (.84) and Japanese samples (.88). Intention towards QR code in marketing was measured after administrating scenario-based experimental study. It was conceptualized as intention to scan QR code and was measured on a five-point scale; 1 for ‘very unlikely’ to 5 for ‘very likely’. Sampling and data collection

Male

Female

Average history of Mobile Internet Usages

Japan

57.3%

42.7%

6.7 years

India

63.3%

34.6%

2.5 years

Table 3: Sample proﬁle 24

Scenario-administration Groups of about 20+ respondents from Indian and Japanese samples were randomly assigned to one of the twelve experimental scenarios. Appropriate coding was done for all variables. Respondents were asked to read the written scenario and answer the questionnaire to measure their intention towards QR code in marketing. ANALYSIS Linear effect analysis

A purposive sampling (unit of analysis; college students) was executed at one Indian and one Japanese university, on the basis of 3 screening questions. Namely, 289 questionnaires were collected in India and 297 in Japan. After discarding the data from

Total Valid N = 574

the missing values and outliers, a total of 574 usable questionnaires (3 outliers in Indian sample and 9 outliers in Japanese sample detected by computing Z scores) were available for analysis.

Structural equation modeling (SEM) using AMOS18 was performed to assess the proposed model fit and test the hypotheses. In order to test the hypotheses H1 and H2, a SEM was first conducted without moderating effect of media, location and on-campaign instructions (seeFAverage reported igure3). The results indicated a good exposure of QR model fit with χ2(11) = 17.01; p > .001; Codes χ2/df = 1.546; Goodness of Fit Index = .917 and, a significant improvement 3.24 years over null model with Comparative Fit 1.95 years Index = .921; Tucker Lewis Index = .912. The findings suggested that the relationship established/given in the

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Bamoriya H.  QR code based marketing in India and Japan

Figure 3: Structural model without moderating eﬀects

hypotheses between culture and beliefs (regression weight = .709; p < .05) and beliefs and intention (regression weight = .868; p < .01) are significant. Hence, hypothesis H2 that “Culture will influence individual’s beliefs towards QR codes in marketing” is accepted. Similarly, hypothesis H1 - “The stronger positive beliefs towards QR codes in marketing, the more likely one will intend to scan a QR code”is accepted.

averaging scores of the subscale items that belonged to the construct) for beliefs about QR code in marketing were a fixed factor (b). First, moderating variable media (m) was selected as covariate and estimated for the effects of beliefs (b), media (m) and interaction (b*m) on intention (i). Subsequently, the same procedure was performed for reaming two moderating variables namely location (l) and on-campaign instructions (o) (see Table 4). The findings of GLM mono-variant analysis sugModerating effect analysis gested that, in case of influence on intention, interactions between beliefs and media (.097, p < .001; General Linear Model (GLM) mono-variant analGLM Analysis 1) and as well as between beliefs and ysis was performed to estimate moderating effects of on-campaign instructions (.109, p < .01; GLM Analysis media, location and on-campaign instructions on the 3) were significant. However, the interaction between relationship between beliefs towards QR codes in beliefs and location (.291, p = .298; GLM Analysis 2) marketing and intention. Intention (i) was dependent was not significant. Hence, the hypothesis H3 - “Type variable while composite scores (scores calculated by of media used will moderate the relationship between beliefs towards QR codes in marketing and intention Effect Mean Square F P to scan QR codes” and H5 GLM Analysis 1 - “On-campaign instrucBeliefs (b) .889 .599 .009** tions will moderate the positive relationship beMedia (m) .581 .401 .032* tween beliefs towards QR Interaction (b*m) .161 .097 .000*** codes in marketing and inGLM Analysis 2 tention to scan QR codes” Beliefs (b) .791 .511 .041* are accepted. However, hypothesis H4 that “CustomLocation (l) 1.105 .910 .093 (n.s.) er location will moderate Interaction (b*l) .333 .291 .298 (n.s.) the relationship between GLM Analysis 3 beliefs towards QR codes in marketing and intenBeliefs (b) .809 .606 .007** tion to scan QR codes” is On-campaign inst.(o) .621 .484 .036* rejected. Hence, based on Interaction (b*o) 1.77 .109 .001** the findings of both SEM Note: *Significant at .05, **Significant at .01, ***Significant at .001 level and GLM analysis, the following model was retained: Table 4: GLM Analysis Output 25

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Bamoriya H.  QR code based marketing in India and Japan

Figure 4: Retained model

RESULTS AND DISCUSSION Preliminary analysis suggests that Japan is ahead of India in terms of the average hours of mobile internet usages. Also, Japanese have higher level of exposure to QR codes as a marketing tool compared to India. The reason could be attributed to the fact that Japan is the origin of QR codes. Higher penetration level of Smartphones in Japan could be another plausible reason. Aggregately, self-reported level of exposure to QR codes is low (especially in India), so marketers should focus on educating consumers about QR codes and their purpose, rather than simply adding QR codes to their marketing campaigns. SEM analysis suggests that consumers’ beliefs towards QR codes in marketing positively influence their intentions. This study is compliant with the previous studies in related areas such as online advertising (Patnaik and Patnaik, 2005; Hanafizadeh and Behboudi, 2012; Karson et al., 2006; Wang and Sun, 2010a) and mobile marketing (Bamba and Barnes, 2006; Bamoriya and Singh, 2012). It suggests that the consumers with positive sets of beliefs (in terms of necessary, valuable, important and sincere) towards the use of QR codes in marketing are very likely to scan a QR code. This is an important implication for marketers. First, if marketers want a positive response from consumers, then their QR code marketing promotion should be well planned. It means that marketers looking to implement QR codes into their overall strategies should define their goals and objectives in a crystal clear manner. Otherwise, it would give an impression of an unnecessary promotional effort from marketer’s side, merely following the current trend. Second, marketers must provide some real value to customers once they scan a QR code. Here, an emphasis is placed on consumer experience and value addition after the scan will be 26

a critical element in campaign effectiveness. For the purpose of value creation, marketers should utilize tracking capabilities of QR codes with due permission of consumers to generate relevant metadata. Third, QR code marketing promotion must avoid any insincere approach which may lead to consumers’ frustration. SEM analysis further suggests a positive link between culture and beliefs. This key finding is consistent with the past relatable studies (Ko et al., 2005; Durvasula and Lysonski, 2013; Mojsa and Rettie, 2003; La Ferle et al., 2008; Wang and Sun, 2010a; Mooij, 2011). In the context of using QR codes in marketing, Japanese respondents have more positive beliefs towards QR codes. Furthermore, Japanese respondents reported higher intention to scan a QR code used in marketing. The hierarchy of effect theory suggests that a belief is likely to have a positive impact on intention. Obviously, Japanese respondents’ positive beliefs further led to higher intentions towards QR code marketing. These findings can be attributed to the cultural differences (significantly different index values for Hofstede’s dimensions) between India and Japan. Especially, the two countries differ in terms of uncertainty avoidance dimension which is particularly relevant to innovative marketing practices (see Table 1). This is another important implication for marketers, who need to be aware of such cultural differences when employing a centralized mobile marketing approach using QR codes. GLM mono-variant analysis suggests that the type of media used for QR code marketing moderates the relationship between beliefs and intentions towards QR code in marketing. This finding is consistent with qualitative findings of Okazaki et al. (2012). Three types of media were used in the study – magazine, product packaging and pamphlet – to form different scenarios. Magazine was found to be associated

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with more favorable behavioral intention to scan QR Codes while pamphlet with the least favorable behavioral intention. The reason could be nobility and credibility associated with magazines as a marketing media (Kiousis, 2001). Similarly ‘on-campaign instructions’ variable has moderating effect on the relationship between beliefs and intentions. These findings are consistent with Daniells (2011) reporting that a QR code based promotion offering clear instructions can drive consumer's scans up by 500 to 800%. The reason may be that the use of QR codes in marketing is new and consumers are still not fully aware of them (Tolliver-Walker, 2011). This is an important implication for marketers to focus on increasing consumers’ awareness level regarding QR codes so as to lead easy diffusion of QR codes. CONCLUSION In Japan, QR codes are widely used in marketing whereas there has been a gradual rise in their usage in India. This study attempted to explore the relationship between consumers’ beliefs and intentions towards the use of QR code in marketing across cultures such as India and Japan by means of SEM analysis. Furthermore, the study attempted to explore moderating role of media, location and on-campaign instructions on the relationship between beliefs and intention using GLM analysis. Culture was influencing belief towards the use of QR codes in marketing and this belief in turn was significantly affecting intention to scan codes. The type of media used and on-campaign instructions were significant moderating variables, whereas consumer location wasn't a significant variable. LIMITATIONS AND FUTURE RESEARCH This study has certain limitations and underlies implications for future research. First of all, the concept of culture in this study was operationalized as respondents’ cultural background. This may cause loss of robustness of cross-cultural model, as strong individual differences could exist within such defined cultural group. Second, the study only dealt with behavioral intention rather than actual behavior. Here, the use of behavioral intention as a measure for actual behavior might have led to the loss of some explanatory power of the model. Third, for the sake of parsimony and understanding (as this study area is almost virgin), the model was constrained only to the

Bamoriya H.  QR code based marketing in India and Japan

key constructs of theoretical importance. There could be other significant variables in the context of mobile promotions such as social norms (Shankar and Balasubramanian, 2009), attitude towards advertising in general (Singh and Vij, 2008) on which future studies should focus. Fourth, due to a very short history of QR code marketing, especially in India, consumers’ beliefs may still be evolving. Thus, the current cross-sectional design may not be enough to capture that evolution. Hence, a longitudinal study in future may provide more insights into the QR code marketing from consumers’ perspective. Fifth, the student sample both from India and the USA may limit the generalizability of findings. Future research could examine a broader profile of consumers. Kline (2005) recommends that the final model should be tested on a second sample. Due to the size of the sample, such a consideration was not exercised in the study model replication. Therefore, future studies could replicate the model across geographies and ethnic groups. Finally, this study tested moderating effects of media, location and on-campaign instructions on the relationship between beliefs and behavioral intentions towards QR code marketing promotions. Future studies may examine other possible moderators such as code placement and design, incentives offered for code scan, privacy issues etc. REFERENCES Al-Juhiam, O.M. (2008). An empirical investigation of the cultural impact on consumer perception and attitude towards advertising. University of Huddersfield Paper Series. Retrieved October 15, 2012, from http://eprints. hud.ac.uk/4995/1/ojuhaimfinalthesis.pdf Bamba, F., & Barnes, S. (2006). Evaluating consumer permission in SMS advertising. In Sprouts: Working papers on information systems. Retrieved August 16, 2010, from http://sprouts.aisnet.org/476/1/Mobile_ Enterprise_2_2.pdf. Bamoriya, H., & Singh, R. (2012). SMS Advertising in India: Is TAM a robust model for explaining intention. Organizations and Markets in Emerging Economies, 3(1), 89-101. Bisel, J. (2011). Mobile marketing and QR codes. Hudson Valley Business Journal, 22(37), 21. Cheung, G.S.C., & Li, L.K.W. (2009). The perceptions and attitudes towards SMS advertising in Hong Kong. Retrieved May 07, 2012, from http://libproject.hkbu.edu. hk/trsimage/hp/07013930.pdf. Daniells, K. (2011). The rise of QR codes. Retrieved November 23, 2012, from http://www.digitalbuzzblog.com/ infographic-the-rise-of-qr-codes/. 27

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Durvasula, S., & Lysonski, S. (2013). Consumer decision making styles in retailing: Evolution of mindsets and psychological impacts. Journal of Consumer Marketing, 30(1), 75-87. DOI: 10.1108/07363761311290858. Hanafizadeh, P., & Behboudi, M. (2012). Online advertising and promotion: Modern technologies for marketing. Hershey, PA: Business Science Reference. Hofstede, G. H., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations: Software of the mind: intercultural cooperation and its importance for survival. New York: McGraw-Hill. Karson, E., McCloy, S., & Bonner, G. (2006). An examination of consumers’ attitudes and beliefs towards web site advertising. Journal of Current Issues and Research in Advertising, 28(2), 77-91. DOI: 10.1080/10641734.2006.10505200. Kiousis, S. (2001). Public trust or mistrust? Perceptions of media credibility in the information age. Mass Communication & Society, 4(4), 381-403. Kline, R.B. (2005). Principles and practice of structural equation modeling. New York: Guilford Press. Ko, H., Cho, C.H., & Roberts, M.S. (2005). Internet uses and gratifications: A structural equation model of Interactive advertising. Journal of Advertising, 35(2), 57-70. DOI: 10.1080/00913367.2005.10639191. La Ferle, C., Edwards, S., & Lee, W. (2008). Culture, attitudes, and media patterns in China, Taiwan, and the U.S.: Balancing standardization and localization decisions. Journal of Global Marketing, 21(3), 191-205. DOI: 10.1080/0891176080215201. Mafe´, C.R., Sanz Blas, S.S., & Tavera-Mesıas, J.F. (2010). A comparative study of mobile messaging services acceptance to participate in television programmes. Journal of Service Management, 21(1), 69-102. DOI: 10.1108/09564231011025128. Mojsa, M., & Rettie, R. (2003). Attitudes to Internet Advertising: A Cross-cultural Comparison. In Kingston Business School Paper Series. Retrieved October 15, 2012, from http://eprints.kingston.ac.uk/6350/1/RettieR-6350.pdf. Mooij, M. (2011). Consumer behavior and culture: Consequences for global marketing and advertising. Thousand Oaks, CA: SAGE Publications. Okazaki, S., Li, H., & Hirose, M. (2012). Benchmarking the use of QR code in mobile promotion. Journal of Advertising Research, 52(1), 102-117. DOI: 10.2501/ JAR-52-1-102-117.

Patnaik, U.C., & Patnaik, A.S.C. (2005). Effectiveness of advertising. New Delhi: Sonali Publications. Podfigurny, R. (2011). Enhancing your marketing with QR codes & smart-phone technology. Business Journal, 25(37), 15. Probst, A. (2012). The expectations of quick response (QR) codes in print media: An empirical data research anthology. UW-L Journal of Undergraduate Research. Retrieved November 16, 2012, from http://www.uwlax.edu/urc/ JUR-online/PDF/2012/probst.ali.pdf. Shankar, V., & Balasubramanian, S. (2009). Mobile marketing: A synthesis and prognosis. Journal of Interactive Marketing, 23(2), 118-129. DOI: 10.1016/j.intmar.2009.02.002. Singh, R., & Vij, S. (2008). Public attitude toward advertising: An empirical study of Northern India. ICFAI Journal of Marketing Management, 7(1), 49-66. Tolliver-Walker, H. (2011). Making best use of QR codes: Gleaning lessons from the latest data. The Seybold Report, 11(23), 2-7. Tsang-Sing, C., Geng, C., & Geng, C. (2004). Consumer attitudes toward marketing in a transitional economy: A replication and extension. Journal of Consumer Marketing, 21(1), 10-26. DOI: 10.1108/07363760410513932. Usman, M., Saqib, I., Hussain, F., & Qureshi, T. (2010). General attitude towards advertising: Cultural influence in Pakistan. International Journal of Marketing Studies, 2(2), 124-133. Wang, Y., & Sun, S. (2010a). Modeling online advertising: A cross-cultural comparison between China and Romania. Journal of Marketing Communications, 16(5), 271-285. DOI: 10.1080/13527260902884904. Wang, Y., & Sun, S. (2010b). Assessing beliefs, attitudes, and behavioral responses toward online advertising in three countries. International Business Review, 19(4), 333-344. DOI: 10.1016/j.ibusrev.2010.01.004. Wu, J.H., & Wang, S.C. (2005). What drives mobile commerce? An empirical evaluation of the revised technology acceptance model. Information and Management, 42(5), 719-729. DOI: 10.1016/j.im.2004.07.001.

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PRIMENA QR MARKETING STRATEGIJE NA PRIMERU INDIJE I JAPANA

Bamoriya H.  QR code based marketing in India and Japan

Rezime: Uprkos sve većoj prisutnosti QR kodova (Strategija brzog odgovora) u oblasti marketinga, mnogi kritičari su zabrinuti za njegovu uspešnu integraciju u koncept marketing miksa. Razlog za to jeste nedovoljno poznavanje stavova i namera potrošača kada je reč o upotrebi QR kodova. Ogromne razlike u stopi izloženosti i usvanju QR kodova među različitim kulturama još više se negativno odražavaju na primenu QR kodova u oblasti marketinga. Ova studija ima za cilj da ispita stavove i namere potrošača kada je reč o upotrebi QR kodova u marketingu kod različitih kultura, prventstveno Japana i Indije. Takođe, ovaj rad ima za cilj da ispita kako odabrane varijable utiču na odnos između stavova i namera. Korišćen je scenario zasnovan na eksperimentalnom dizajnu i analizirani su podaci korišćenjem tehnika Modelovanja strukturalnim jednačinama i Opštih linearnih modela. Dobijeni nalazi ukazuju na to da postoji pozitivan odnos između kulture i stavova kao i između stavova i namera korisnika. Takođe, utvrđeno je da mediji i prisustvo/odsustvo instrukcija u okviru marketinških kampanja u velikoj meri utiču na odnos između stavova i namera korisnika. Na kraju, oslanjajući se na ključne nalaze, ova studija nudi korisne informacije i gledišta vezana za dinamičku prirodu QR kodova u oblasti marketinga kao i korisne naznake za marketinške kompanije.

Ključne reči: oglašavanje, kultura, mobilni marketing, QR kod (strategija brzog odgovora). Received: February 13th, 2014. Correction: September 1st, 2014. Accepted: September 2nd, 2014.

SJAS 2014, 11 (2): 30-44 ISSN 2217-8090 UDK: 005.6:351.074 ; 005.591.4 DOI: 10.5937/SJAS11-6751 Review paper/Pregledni nauÄ?ni rad

REINVENTION OF THE PUBLIC SECTOR: TOTAL QUALITY MANAGEMENT AND CHANGE MANAGEMENT Konstantinos M. Karyotakis1,*, Vassilis S. Moustakis1 School of Production Engineering and Management, Technical University of Crete, Chania, Greece

Abstract: The present article provides a review of Total Quality Management (TQM) and Change Management in Public Sector. It highlights the special role of TQM in the Public Sector, the concept of Quality in Public Sector Services, the Innovation in Public Sector and the role that E-Government can play. Moreover, it emphasizes some Best Practices that have been applied in Greece and consists of innovative and interesting practices. It concludes by integrating all concepts discussed with the factors that shape change.

INTRODUCTION Pursuant to the guidelines of the Lisbon European Council (March 2000), governments around the world are launching national programs for the reinvention of the state in order to change the overall government performance. This creates a result oriented and cost-conscious public administration, which will provide high quality services and satisfy the needs of its citizens. This implies a deviation from the traditional bureaucratic management of public services towards a more entrepreneurial, so-called, New Public Management-NPM (Denhardt and Denhard, 2000). As part of this strategy, some quality tools and techniques are used, including Management By Objectives, Total 30

* E-mail: karyotakisk@gmail.com

Key words: change management, e-Government, public administration reform, public management, public organizations, TQM.

Quality Management, Balanced Scorecard, Cost-Benefit Analysis, Market Testing, Performance Related Pay, Value For Money and more, or combination of these, which have already been implemented in the private sector. Successful implementation of quality tools, in the vast majority of cases, has a positive impact on the economic performance of organizations. However, studies undertaken in various countries around the world indicate that most quality initiatives ultimately failed to achieve the desired goals. Moreover, favorable results were produced in the short term whereas long-term sustainability was not achieved. Some researchers even declared TQM a failure and went little further to cut quality funds (Kuperus and Rode, 2008).

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As empirical evidence could not provide reasonable explanation why some quality programs offered large positive effects whilst others provided no improvement whatsoever, or any substantial improvement in business performance, some researchers began to investigate the creation of commitment to the ideals of TQM and quality, approaching the culture as a phenomenon, rather than as a set of tools and techniques. In a quality-oriented organization, with dynamic environment, change is inevitable. The biggest obstacle to the introduction of TQM in an organization is to change the culture, that is, the period during which attempts are made to change behavior and relationships between employees in an organization and transform their organizational culture into quality culture. In order to ensure sustainable quality culture, quality should not be treated as a destination but as a journey where leadership and learning play an important role. GUIDELINES FOR DEFINING THE NOTION OF QUALITY IN THE PUBLIC SECTOR The concept of quality is expressed in a series of complementary definitions, as follows: Improving the way of governance (the constitutional architecture and the structure of government and society) and the effectiveness of public action (Bovaird and Löffler, 2002; Bovaird et al., 2002; Daemen and Schaap, 2000; Matheson and HaeSang, 2003). Quality can be defined as “the way somebody feels adequate with something” (OECD, 2001). According to another point of view, quality is a set of standards and characteristics of the product in relation to their ability to meet the needs that are known or arising (International Organization for Standardization, 2009). Conversely, quality is perceived as the level at which a set of inherent characteristics fulfills requirements, which may be subjected to different levels (International Organization for Standardization, 2000). It is well-known that the quality of services has become an important aspect of performance in any organization in the public sector (OECD, 2001). Indeed, the public administration of nations attempts to achieve performance through strategic quality management (Matei and Lazar, 2011).

Karyotakis K., Moustakis V.  Reinvention of the public sector

QUALITY AND PUBLIC SECTOR

There was a growing need in the early 1990s to modernize and reform the dysfunctional and bureaucratic public sector, in order to meet the current needs of the society and prosper in a highly globalized and competitive environment. Efficiency improvement in the public sector is a goal that is positioned high on the political agenda in almost all industrialized countries (Staes and Thijs, 2005). Along with the adoption of the Lisbon agenda in 2000, Member States of the European Union (EU) have raised the difficult task of making the Union the most competitive economic area in the world, which would rely on knowledge in order to ensure sustainable growth and better work opportunities, higher social sensitivity and a simplified regulatory environment. Essentially, the Lisbon Treaty ratified the need to modernize public administration (IvanUngureanu and Marcu, 2006). Moreover, at that time, a wave of administrative reform program was launched in several European countries (such as the English “Modeling Government”, the Irish “Quality Customer Service Initiative”, the German “Moderner Staat” etc.). The perception of the private sector and efforts to enhance civil society greatly influenced the content of these programs. The main fields of administrative reforms, which are reflected in these programs, refer to: ◆ upgrading the quality of services provided to citizens; ◆ improving the efficiency and effectiveness of public services through goal setting and evaluation of organic units and employees under performance ratios; ◆ improving the quality of regulation (Laws, Presidential Decrees, Joint Ministerial Decisions), simplification of administrative procedures and removal of administrative barriers for citizens and entrepreneurs, as well as enhancing transparency and development of social dialogue; ◆ ensuring the rights of workers by strengthening the bilateral dialogue and collective bargaining; ◆ introducing “Electronic Government” (e-Government) by enabling citizens to have online access to public services and networking of public services between them; 31

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Karyotakis K., Moustakis V.  Reinvention of the public sector

◆ qualitative improvement of human resources; ◆ strengthening of institutional transparency and control. Basically, the public service framework focuses on three important dimensions of quality: ◆ The core of the service. ◆ The external environment of the service. ◆ The relationships that can be developed in the provision of services. The achievement of the Lisbon objectives in the economic and social field implies the effective and efficient operation of the national administrations and implementation of effective and innovative practices. These reforms have brought about new principles, such as focusing on efficiency and effectiveness, ensuring transparency and accountability, providing information on public sector deliverables. According to the Luijn et al. (2004), countries can improve the functioning of the public sector through adoption of best practices implemented in other countries. BEST PRACTICES Best Practice is a relative term denoting sometimes innovative and interesting business practices, which have been identified through benchmarking. Due to the rising need for continuous and substantial improvement of administrative action responsible for public administration, Ministers of the Member States of the EU agreed in November 1998, to establish “Quality Conference” as of the year 2000, which will present the “Best Practices” by all Member States, namely superior returns, methods or approaches that lead to excellent results. Such conferences have enabled creation of the network for the exchange of know-how and experiences. Noteworthy is the fact that the number of various practices presented at the different quality conferences (which are conducted every two years) have increased over the years, giving trigger to other organizations to be inspired by the organizations that already have these best practices or to imitate them. For example: ◆ In 2000 in Lisbon, Portugal, 39 good practices were presented. ◆ In 2002 in Copenhagen, Denmark, 49 good practices were presented. 32

◆ In 2004 in Rotterdam, Netherlands, 65 good practices were presented. ◆ In 2006 in Tampere, Finland, 78 good practices were presented (Kazakou, 2010). The European Institute of Public Administration (EIPA) has created a network of users of the Common Assessment Framework (CAF), which enables the exchange of knowledge and experiences through CAF implementation. Within this network, all best practices from the implementation of CAF from European organizations are gathered in a database, thus facilitating comparative modeling and securing suitable conditions for comparative learning. Everyone can search for best practices on the website of EIPA, selecting among others the criterion of a best practice that focuses on: ◆ Results focused on citizen / customer. ◆ Results for the performance of an organization. ◆ Leadership. ◆ Partnerships and resources. ◆ Human resources. ◆ Results of human resources. ◆ Procedures. ◆ Society’s effect. ◆ In strategies and plans. ◆ In CAF general. Below are listed some good practices presented in some European Quality Conferences which refer to Greece: Greece, Athens Metro Through application of the European Business Excellence Model (European Foundation and Quality Management / EFQM) and CAF, Athens Metro standardized operational processes and measured user satisfaction. Greece, cardiac-resuscitation Unit, Hospital “Evangelismos” Application of CAF revealed various organizational shortcomings of the hospital and subsequently implemented various improvement practices, such as electronic archiving files, digitization of call center, improvement materials and technical infrastructures etc.

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Greece, Municipal Organization for Health and Social Affairs (DOKPY), Municipality of Nea Ionia, Volos This non-profit organization, within social welfare, created support structures in the municipality, thus promoting primary health care in the city supporting mainly socially vulnerable groups. Greece, Validation of Applications and Issue of Marketing Authorizations Division (DDYEP) This directorate is the first point of contact of pharmaceutical companies, seeking marketing approval of products in the Greek market. It is one of the nine directorates of the National Organization for Medicines (EOF), with the last one being in charge of protecting public health in relation to the marketing of medicinal in the Greek market. DDYEP collects applications for the authorization of medicinal products and collaborates with other directorates of EOF, which carry out the evaluation and monitoring of these products. The next step for directorates is to decide on the renewal or revocation of the marketing authorizations for the medicinal products. DDYEP has certification of international quality standard ISO 9001: 2000 since 2006 and in 2007 applied for first time CAF. A good practice of CAF is the function of a web application appointment (e-appointment) system for filing claims, which actually assessed and yielded to DDYEP the first National Quality Award (21/12/2007). Such web application has enabled better management of appointments and coordination of the actions of workers, thus optimizing the results of the directorate and increasing the quality of customer satisfaction. Moreover, as a consequence of the principles of Quality Management, an increase in transparency was recorded together with simplified administrative procedures. Lastly, it promoted comparative modeling (benchmarking) within similar organizations in Europe. Greece, Byzantine and Christian Museum In 2007, this museum successfully applied CAF throughout the organization and won the second National Quality Award (21/12/2007). The applica-

Karyotakis K., Moustakis V.  Reinvention of the public sector

tion of CAF enabled determining weaknesses of the organization and facilitated the overall efficiency of its actions. A good practice that was applied was the creation of a tactile path of the museum’s permanent exhibition for the blind and visually impaired. This path includes a tour using acoustic driver and specific descriptive “tags” in the language of Braille. Also, the Byzantine and Christian Museum develops partnerships with international institutions and museums in other countries, with the aim of comparative modeling of the issues that have to do with the access to cultural sites and the increase in the number of visits to the museum. QUALITY AS AN INTEGRAL PART OF PUBLIC MANAGEMENT TQM was first used in the private sector in order to achieve single monitoring and evaluation of all activities of an organization in order to accomplish exceptional business results (Matei and Andreescu, 2005). “Quality” is a general concept, but not new to the public sector. In contrast, quality was, at least implicitly, a sense of public administration from the creation of modern administration, when it was connected with the observance of regulations and procedures, the formal correctness, sustainability and the absence of arbitrary decisions (Engel, 2003). According to Giannakopoulou (2011), an emphasis was placed on the importance of quality in the public sector with the introduction of Management by Objectives (MBO) at the end of the 1960s. This was a transitional period, where for the first time an attempt was made to connect the scope of public service with the generated results. A survey on the occurrence of quality in public administration can be found in Engel (2003), which emphasizes the idea according to which the “push for quality” was presented in the public sector during the last half of 1980s (Massey, 1999). This idea has moved the concept of quality from the private to the public sector, and on a wider scale in the 1990s, allowing the quality to become “a central term in contemporary rhetoric” (Pollitt and Bouckaert, 1995), one of the key issues and concerns of administrative modernization in Western Europe and the “OECD world” or even “a recent epidemic” of putting the citizen as the key factor in achieving quality (Pollitt and Bouckaert, 2000). 33

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Initially, the movement of quality was based on European Citizens Maps (Citizens’ Map in United Kingdom, 1991; Charter of Public Service in France, 1992; Users’ Map in Belgium, 1993) to increase the quality of services, as perceived by the users of services (Staes and Thijs, 2005). It is the commitment of an organization to the citizen regarding the quality of services provided, such as political commitment implementing the projects, identification of specific budget objectives of the Public Service (Passas, 2010). In the late 1990s, a number of different models of quality in the public sector was applied (EFQM, ISO, CAF) and several EU Member States took initiatives to promote quality in public services. It was apparent then that the tools of TQM can contribute to a growth mechanism in the public sector, through combining compliance standards with the needs, requirements and expectations of the citizen - client to achieve efficiency, upgrading functions of services, reliability and consistency in performance, reducing failures, improving the productivity of services and changing attitudes of the workers while increasing their efficiency. Consequently, TQM is considered as a «holistic» tool, which started to be increasingly more applied in the public sector as of late 80s (Matei and Andreescu, 2005; Matei and Lazar, 2011).

BASIC DIFFERENCES BETWEEN TRADITIONAL MANAGEMENT AND TQM Compared to other approaches that place an emphasis on dominant characteristcs of efficiency, TQM is synthetic and covers all key indicators of competitiveness, as well as a wide range of methods and techniques to improve products, services and processes. Quality in the public sector has evolved in three main phases: ◆ The quality in the sense of respect for rules and procedures. ◆ The quality in the sense of efficiency. ◆ The quality of the concept of citizen satisfaction - customers. Table 1 illustrates the basic differences between traditional management and TQM. During the implementation stage of TQM, a truism that employees will produce high-quality products and services, goes without saying, only when the quality concept has been mastered by all member of the private or public organization (Oakland and Porter, 2003). TQM could help to address public issues and change public administration culture. It is a set of new practices and methods, applied by public or

Traditional management

TQM

Priority on cost

Priority on quality

Quality costs

Quality wins

Satisfaction speciﬁcations

Continuous quality improvement

Reactive treatment

Proactive treatment

Quality or quantity

Quality & quantity

Cost or quality

Cost & quality

Senior managers responsible for quality

Senior managers co-responsible for quality

Emphasis on quality control

Focus on preventing defective

Acceptable level of defective

Resetting defective

Product orientation

Market orientation

Who is responsible

How the problem is solved

Focus on production

Focus on product design, process & production

Suspicions about the cost of quality

Systematic cost measurement

Poor quality sources: workers

Poor quality sources: managers & workers

Correction or hide defective

Discover & explore the quality problem

Responsibility for quality: the quality control department

Responsibility for quality: all functions of the organization

Quality is a technical problem Quality is a management & technical problem Table 1 - Basic diﬀerences between Traditional Management and TQM. Source: Dervitsiotis (2005, p. 57). 34

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private organizations, and aims at consumer’s-citizen’s satisfaction and strengthening of human resources, which unlike traditional management focus on different points. Based on the principles of TQM, some quality models have been applied in both the private (European Foundation of Quality Management – EFQM) and public (Common Assessment Framework – CAF) sectors with the aim to improve the overall efficiency. REASONS FOR ADOPTION OF TQM The management of a public or a private organization can be driven by the adoption of TQM in order to increase the competitiveness and efficiency through quality achievement. The main reasons for TQM adoption are: ◆ the need for survival and development of the organization in a highly competitive environment; ◆ inability of other approaches and tools for quality assurance; ◆ inefficiency of mechanistic processes, combined with the absence of adequate administrative infrastructure to improve the organization; ◆ the revenue growth by reducing quality failures; ◆ the innovation in the method of product or service creation (Dervitsiotis, 2005). The prerequisite for the successful application of TQM is teamwork and commitment of each member in the chain to connecting everyone involved with the organization and cohesion in this embodiment. Moreover, the teamwork ensures creativity, participation and development of the worker. In order for this to happen, it is necessary to provide proper guidance and commitment on the part of the administration, as well as the proper climate on the part of employees. It is important not to feel compelled to follow mechanistic processes, but to feel that they contribute significantly to the achievement of quality and customer - citizen satisfaction. OBSTACLES TO THE IMPLEMENTATION OF TQM Successful implementation of TQM could lead to some direct and indirect benefits, including enhanced competitive position, higher productivity, reduced costs and better cost management, the in-

Karyotakis K., Moustakis V.  Reinvention of the public sector

creasing faith (in terms of customers) and maintaining or even better, improving employee morale (Chen et al., 2004). However, some obstacles may appear in the implementation of TQM, as follows: (Zavlanos, 2006): 1. Fallacy of the concept, principles and elements of TQM. TQM requires continuous and permanent change. 2. Lack of involvement of the administration. Without the support of senior management, efforts will be futile (Chen et al., 2004). 3. Difficulty of culture change, which prevails in the organization. 4. Lack of attitude in the public administration focused on the citizen / customer, as well as the lack of competitive environment. 5. Orientation of the public sector in the service of a “political clientele”. 6. Rigid wage system and lack of motivation. 7. Blockade people - keys from active participation in the proceedings. 8. Degraded “psychological” environment (recognition - reward). 9. Civil human resource management (general rather than specialized education and training, lack of job descriptions, rigid hierarchy, political interference, lack of mobility and flexibility of staff, static and undifferentiated payroll, etc.). 10. Lack of measurability and performance assessment. 11. Inadequate use of data. The information should be reliable, the measurement process must be consistent and data recovery methods should be satisfactory (Chen et al., 2004). 12. Lack of cooperation and teamwork between different working groups. 13. Focus on short-term profits rather than longterm goals. 14. Insufficient resources and lack of continuous resource commitment 15. Launching accusations and reprimands creating lack of mutual trust and respect among employees. 16. Lack of foresight common mission or guiding principles. 17. Lack of strategic direction and review priorities. 18. Existence of bureaucracy in the organization. 19. Administrative failure to recognize or reward goal achievement of the objective (Chen et al., 2004; Stashevsky and Elizur, 2000). 35

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Karyotakis K., Moustakis V.  Reinvention of the public sector

INNOVATION AND PUBLIC ORGANIZATIONS

Innovation in the public sector is a concept which is characterized by more uncertainty than innovation in the private sector (Hartley, 2005). Usually, it refers to both changes in the relationship of the organization with the public as well as among members of the organization. The application of TQM techniques in public services is an innovation (Zampetakis and Moustakis, 2007). On the one hand, it takes more time to occur because of the hierarchical structure of the majority of public institutions. On the other hand, it happens because of liability assurance systems (Halvorsen et al., 2005). It is not intended to create financial gain and may take on various form (Zampetakis and Moustakis, 2007; Bessant, 2003; Llewellyn and Jones, 2003) such as new products (e.g. new instruments in the hospital), new services to citizens (e.g. medical home help, electronic filing of tax returns), new procedures (e.g. administrative reorganization for a shorter period of time). Direct beneﬁts

Along with the above-stated, innovations may be conceptual or rhetorical, as is the concept of TQM, and strategic innovations (including new objectives and targets). E- GOVERNMENT

The OECD considers e-Government a powerful tool to transform the structures, processes and culture of government and make them more efficient, user-oriented and transparent. OECD defines e-Government as “The use of Information and Communications Technologies (ICT), in particular the Internet, to achieve better government” (OECD, 2003a). The e-Government aims at: improving the government efficiency, improving the quality of services, improving the relationship between the government and its citizens. ICT plays a very important role in NPM and it offers new possibilities and improves the existing ones. Through the implementation of e-Government, countries will achieve increased transparenIndirect beneﬁts

Saving transaction costs

Being user friendly and easy to use

High speed accessibility

Easy to ﬁnd information

Reducing customers’ time spent on travelling to government oﬃces

Convenience and availability (i.e. 24 hours a day, 7 days a week) Keeping customers’ personal and ﬁnancial information protected

Decreased customer queuing time Decreased face-to-face interaction

Keeping customer’s data private (privacy)

Saving petrol costs

Giving customers caring and individual attention (i.e. referral to a contact person)

Saving parking costs

Providing up-to-date information

Providing faster access to documents and forms

Encouraging active participation from citizens (i.e. consultation)

Having a quicker response time to queries

Communicating in a clear and plain language

Saving postages costs

Providing prompt service and helpful response to customer requests

Reducing the number of customer visits to government oﬃces

Providing dependable and reliable services Making interaction with government less bureaucratic Increasing customer loyalty and encouraging repeat visits Being accessible to people with disabilities Increasing government accountability to citizens

Table 2 - Citizen beneﬁts from E-Government. Source: Wong et al. (2011, p. 18-19). 36

SJAS 2014  11 (2)  30-44

cy and strengthen democracy by increasing citizen participation in public administration, improving the quality of life, increasing productivity, efficiency and effectiveness of the public sector. Some researchers believe that e-Government is the only way towards achieving that goal. It is already in our daily lives, which changes radically, hopefully in a better way. The traditional form of public service changes and a more innovative and more effective public administration profile is adopted. Besides planning, legal and institutional frameworks, policy decisions or advertising campaigns, it is of crucial importance for people to adopt, advocate and take an active part in such changes. The benefits from e-Government are achieved through different stages and at different levels for each country. Initially, these are achieved with the full provision of information to citizens and businesses. Subsequently, this should be linked with the previous sentence, thus enabling active interaction between the citizen and the government. At the next stage, the ability to make electronic transactions becomes feasible and finally, the implementation of e-democracy. Table 2 illustrates the direct and indirect benefits stemming from e-Government.

Karyotakis K., Moustakis V.  Reinvention of the public sector

CHANGE MANAGEMENT

Change in knowledge is easy and requires less time to be achieved rather than changes in the attitude of an individual, individual’s conduct or even changes in a group behavior. It is of the utmost importance to perceive teamwork as a very important part of TQM model that induces the change (Oakland and Porter, 2003). Change in the group behavior is treated by managers with skepticism and is not easily accepted, as it is commonly perceived by people as a transition from a known state to another unknown and nonthreatening desired state (Bradley, 2000). In fact, people do not react in the same way to the process of change. Figure 2 depicts a sample of individuals with different perceptions on a proposed change. The distribution of Figure 2 is normal, which means that around the average has the same probability in symmetrical values. The diagram and the rates are indicative. The vast majority of people is positioned in the middle part of the distribution (“bell”) and is more conservative. Those who move (from the center) just to the left side of the “bell” hide their response through their apathy. Those who move (from the center) just to the right of the “bell” try to earn

Figure 1 - Proportion of time and diﬃculty of achieving change (four levels). Source: Hersey et al. (2011). 37

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Karyotakis K., Moustakis V.  Reinvention of the public sector

Figure 2 - Distribution of individuals with respect to propensity for change. Source: Moustakis (2012, p. 157).

something before they join the change process. The “pioneers” guide change while “saboteurs” react to it and undermine it. The dual direction of the arrow in Figure 2 in the cautious area (in the middle of the “bell” and left) illustrates the tendency of people in this group to move left or right (Moustakis, 2012). The type of change is C=[A×B×D]>X

(1)

where: C = Change, A = Level of dissatisfaction with the status quo, B = Desirability of the proposed change or end state, D = Practicality of the change (minimal risk and disruption), X = “Cost of changing”. The factors A, B and D must override the factor X in order for a change to happen (Cameron and Green, 2004). Whether a change is successful (Moustakis, 2012), is a patchwork of the following factors: K×C×W

(2)

where: K = Know. Team members should be well-aware of what they should do. 38

C = Can. Team members should have the opportunity to do what they should do, namely, they can do it. W = Want. Team members want to do what they should do. If one of the three factors of equations (1) or (2) is zero, or near zero, the overall product will also be equal to zero, or near zero. Human resources are the most important factor in change management process (Smye and Cooke, 1994). No matter how perfect it may be, no system could be applied successfully and effectively, if human resources are unwilling to accept and use it (Bowen, 1986). RESISTANCE TO CHANGE Resistance represents a social and psychological phenomenon . We are all creatures of habit and any change brings people forward into the unknown (James, 1998). People who work in the same way for years may have forgotten how to learn. The process of change is a time consuming process, during which different forces collide (resistance forces and thrusts). The duration of the process depends on the situation in which the organization wants to move up in relation to the current situation in which it is located. The greater the gap between them, the longer the process will be.

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Karyotakis K., Moustakis V.  Reinvention of the public sector

Figure 3 - Relation between (required) time and introduction of change. Source: (Adapted from) Robbins (1998, p. 640) & Burtonshaw-Gunn (2008, p. 18).

Therefore, the process of change is a dynamic process that must be constantly adjusted to the current requirements and needs, where in order to be completed (7), the resistance forces (1, 2, 3) should be reduced and the thrust (4, 5, 6) forces should prevail (Figure 3). The reasons that force people to resist to the change may be the following: I. Fear. The unknown creates fear. If the unknown is neutralized, one important factor will be eliminated. The reduction of fear can be achieved by (a) proper communication and (b) announcement of results which will have the program of change, the implementation process and the positive aspects of the change, such as new experiences and skills (James, 1998). II. Personal interest. Some believe that the change will result in these negative effects (James, 1998; Kotter et al., 1986). Thus, we shall attempt to prevent change by creating rival “camps” or conflicting groups within the organization itself. To this end, it is necessary to provide reassurance and clarification as regards its future position in the organization. III. Lack of confidence combined with a misunderstanding that either existed prior experience or created due to lack of efficient communication (Kotter et al., 1986). IV. Habit. Some people are accustomed to working in a particular way. The nature of the change program will determine how much the work

habits of each will be affected. In some cases it requires assurance, training, education and other support (James, 1998). V. Different opinions or estimates of the benefits of change. As people act according to their own perceptions (and not with any reasonable set of events), there will be different views on the proposed change (Rosenfeld and Wilson, 1999). Many executives assume that employees understand the problem and the proposed solutions in the same way considering that everyone has the same level of access to information. However, this is never the case. In order to address the problem and ensure commitment to change, it is necessary to increase communication and effort. VI. Low tolerance for change. This means that not all people have the same volatility to change. Some are open to change while others are very hesitant. Drucker (2012) states that there are limits to the ability of individuals to manage change. Even those who have a high resistance to change can reach their limits. Some executives mention the “change fatigue” as it seems to have no end and refer to it as if it were some kind of organizational illness (Rosenfeld and Wilson, 1999). For this reason, the goals of change must be realistic and provide flexibility. Table 3 interprets different stages of Figure 3 showing the indications and the needs of each stage/ phase. 39

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Karyotakis K., Moustakis V.  Reinvention of the public sector

Stage

Phase

Indications

Needs

Immobilization/Numbness

Inactivity/shock

Adjustment time

Denial/Minimization

Acts as if nothing changed

Patience

Frustration/Self doubt or depression

Awareness of the need to change

Tolerance

Acceptance

Obvious need to move to the new situation

Acceptance

Development/Testing

Acquisition of new skills & knowledge

Growth & succeed

Application/Searching for meaning

New knowledge and views are applied. Reﬂection period

Encouragement to take initiatives & responsibilities

Completion/Internalization

Adequacy & ability

Give self permissions

Table 3 - The process of change. Source: (Adapted from) Burtonshaw-Gunn (2008, p. 18-19)

Some researchers believe that most people react to imposition of the change or to the manner in which change is imposed to them and not to the change itself (Fuegen and Brehm, 2004; Knowles and Linn, 2004). Furthermore, researchers with more sociological content opinions claim that people who wish to change need to perceive how others react to change (Ford et al., 2002; Ford et al., 2008) and can easily lose potential interesting views on a proposed change (Choi and Ruona, 2011). Burtonshaw-Gunn (2008) developed the model of the change curve (adapted Figure 3), taking into consideration the reaction to the idea of change in order to understand the organizational change and its impact on individuals. As shown in Figure 3, it is very important to mature the idea of change in order for it to happen successfully. The time for change depends on one’s abilities, competencies, confidence and self-esteem. Managers are able to identify the stage of change for individuals and how to react to each in order to manage the process of change. CONCLUSIONS Some of the major issues impeding the quality of public administration include strong bureaucracy, customer approach, corruption, government arbitrariness and delay in the proceedings. Moreover, the fuzzy and indistinct legal framework, with the 40

excessive laws, may lead a government agency to erroneous attitudes. The modern public administration is invited to acquire outward orientation and shape conditions effective to address the social needs in order to serve the customer/citizen, emphasizing the forces of technology and TQM. However, some recent researchers have dealt with the reactions that highlight individual’s attitudes to organizational change (Wanberg and Banas, 2000). Indeed, there is evidence that resistance to change is the cause for ineffective reform efforts of organizations. In recent years, the quality is established as a key criterion for consumer and business behavior. Consumers are increasingly aware of the quality and consider it the most important criterion when making choices. Organizations realize that change in consumer behavior and rush to adapt. The quality is now recognized as the most dynamic factor and the key for creation of competitive products and services. The development of TQM, this new culture of management, which focuses on the human factor, can successfully meet the requirements of quality, as demonstrated by its application in organizations in developed countries. In today’s competitive environment, the change culture of an organization is directed towards achieving quality and continuous improvement, as the basis for the survival of all organizations (Tsiotras, 2000).

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Most senior managers and employees perceive these changes in culture of an organization with skepticism. Such changes in the culture of an organization are not easily accepted and are commonly perceived as a transition from a known state to another, unknown, and non-threatening desired state (Bradley, 2000). The public administration changes rapidly both nationally and internationally, which is why it is extremely important to improve the effectiveness and efficiency of public services. The need for public organizations to take a strategic role in the business environment and ongoing changes, that occur, leads them to the principles of TQM and the use of tools such as self-assessment and CAF. The benefit of introducing TQM methods in the public sector is reflected in the awareness of the importance of quality as the totality of characteristics of goods and services which fully meet the specifications, requirements and expectations of the citizen / customer. The degradation of the principles and values of TQM will lead to deterioration of the Public Administration. In this context, public agencies should pay special attention to continuous quality improvement, customer/citizen satisfaction and the overall efficiency of an organization. The results of the qualitative and quantitative research of Sotirakou and Zeppou (2006) in Greek public organizations revealed that the lack of specific skills, adaptability and behavior prevent organizations from making effective use of measurement’s performance, which is a prerequisite for change management. Other relevant studies conclude that both the technocratic factor of adaptability and political factors influence the acceptance and effective implementation of the performance’s measurement system (Julnes and Holzer, 2001; de Waal, 2003, 2004). Bowen (1986) and Young (2012) have also added that no matter how perfect it is, no system can be implemented successfully and efficiently, if workers are unwilling to accept and use it. Julnes and Holzer (2001) believe that it is necessary to conduct systematic investigation of the factors affecting application and acceptance of performance measurement models of public organizations. Existing models for change management propose guidelines for the reform of institutions and processes, approaching the issue from the macroscopic point of view, without paying attention to people involved in the change process (Dover,

Karyotakis K., Moustakis V.  Reinvention of the public sector

2003). However, Smye and Cooke (1994) emphasize that the starting and ultimate condition for survival of organizations are humans, thus emphasizing the importance and specificity of human capital. Some recent studies have dealt with the reactions of people to attempted organizational change (Wanberg and Banas, 2000). Indeed, there is evidence indicating that resistance to change is the cause of ineffective reform efforts of organizations. It is very important to emphasize that quality improvement is achieved through mutual effort of all the workers. Therefore, it is crucial to cultivate a mindset of quality (culture quality) throughout the length and width of each organization so that workers would be mature and ready to accept the change management model. This culture should be accompanied by excellent communication, respect and appreciation between colleagues as well as between colleagues and citizens. The adoption of quality culture requires continuous commitment of senior management to quality in order to enable the values and principles of TQM to become part of the culture of the organization. Even though the TQM journey may hide some obstacles and difficulties, both individuals and organizations need to be driven by this philosophy in order for the change management to mature and develop attitudes and cultures that will lead to the optimization of the efficiency and effectiveness of individuals, organizations and the society as a whole. REFERENCES Bessant, J.R. (2003). High-involvement innovation: Building and sustaining competitive advantage through continuous change. Hoboken, NJ: Wiley. Bovaird, T., & Löffler E. (2002). Moving from excellence models of local service Delivery to benchmarking of good local governance. International Review of Administrative Sciences, 68(1), 9-24. DOI:10.1177/0020852302681001. Bovaird, T., Löffler, E., & Parrado-Díez, S. (2002). Developing local governance networks in Europe. BadenBaden: Nomos. Bowen, D.E. (1986). Managing customers as human resources in service organizations. Human Resource Management, 25, 371-383. DOI: 10.1002/hrm.3930250304. Bradley, C. (2000). Managing change. Training and Development in Australia, 27(1), 10-14. 41

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Burtonshaw-Gunn, S.A. (2008). The essential management toolbox: Tools, models and notes for managers and consultants. Chichester, England: Wiley & Sons. Cameron, E., & Green, M. (2004). Making sense of change management: A complete guide to the models, tools & techniques of organizational change. London: Kogan Page. Chen, H.-K., Chen, H.-Y., Wu, H.-H., & Lin, W.-T. (2004). Implementation in a healthcare and pharmaceutical logistics organization: The case of Zuellig Pharma in Taiwan. Journal of Total Quality Management and Business Excellence, 15(9-10), 1171-1178. DOI: 10.1080/1478336042000255550. Choi, M., & Ruona, W.E.A. (2011). Individual readiness for organizational change and its implications for human resource and organization development. Human Resource Development Review, 10(1), 46-73. DOI: 10.1177/1534484310384957. Daemen, H., & Schaap, L. (2000). Citizen and city: Developments in fifteen local democracies in Europe. Delft: Eburon. Denhardt, R.B., & Denhardt, J.V. (2000). The new public service: Serving rather than steering. Public Administration Review, 60(6), 549-559. DOI: 10.1111/00333352.00117. Dervitsiotis, K.N. (2005). Διοίκηση Ολικής Ποιότητας. Athens: Law Library. (in Greek). de Waal, A.A. (2003). Behavioral factors important for the successful implementation and use of performance management systems. Management Decision, 41(8), 688-697. DOI: 10.1108/00251740310496206. de Waal, A.A. (2004). Stimulating performance - driven behavior to obtain better results. International Journal of Productivity and Performance Management, 53(4), 301-316. DOI: 10.1108/17410400410533890. Dover, P. (2003). Change agents at work: Lessons from Siemens Nixdorf. Journal of Change Management, 3(3), 243-257. DOI: 10.1080/714042535. Drucker, P. (2012). Managing in a Time of Great Change. Hoboken: Taylor and Francis. Engel, C. (2003). Quality management tools in CEE candidate countries: Current practice, needs and expectations. Maastricht: European Institute of Public Administration. Ford, J.D., Ford L.W., & D’Amelio, A. (2008). Resistance to change: The rest of the story. Academy of Management Review, 33(2), 362-377. DOI:10.5465/ AMR.2008.31193235 Ford, J.D., Ford, L.W., & McNamara, R.T. (2002). Resistance and the background conversations of charge. Journal of Organizational Change Management, 15(2), 105-121. DOI: 10.1108/09534810210422991. 42

Fuegen, K., & Brehm, J.W. (2004). The intensity of affect and resistance to social influence. In Knowles, E.S., & Linn, J.A., Resistance and persuasion. Mahwah, NJ: Lawrence Erlbaum Associates. Giannakopoulou, S. (2011). Η εφαρμογή εργαλείων Διοίκησης Ολικής Ποιότητας στο Δημόσιο και Ιδιωτικό τομέα: Η περίπτωση του Κοινού Πλαισίου Αξιολόγησης στο Υπουργείο Διοικητικής Μεταρρύθμισης & Ηλεκτρονικής Διακυβέρνησης. ΚΑ΄ Εκπαιδευτική Σειρά, Τμήμα Γενικής Διοίκησης, Εθνική Σχολή Δημόσιας Διοίκησης. (in Greek). Halvorsen, T., Hauknes, J., Miles, I., & Røste, R. (2005). On the differences between public and private sector innovation. Oslo: NIFU STEP. Hartley, J. (2005). Innovation in governance and public services: Past and present. Public Money and Management, 25(1), 27-34. DOI: 10.1111/j.1467-9302.2005.00447.x. Hersey, P., Blanchard, K.H., & Johnson, D.E. (2011). Management of organizational behaviour: Leading human resources. Harlow: Prentice Hall. Hsuan-Kai, C., Hsuan-Yueh, C., Hsin-Hung, W., & Wen-Tsann, L. (2004). TQM implementation in a healthcare and pharmaceutical logistics organization: The case of Zuellig Pharma in Taiwan. Total Quality Management and Business Excellence, 15(9-10), 1171-1178. DOI: 10.1080/1478336042000255550. International Organization for Standardization. (2000). Quality management systems: Fundamentals and vocabulary. Geneva: ISO. International Organization for Standardization. (2009). Managing for the sustained success of an organization: A quality management approach. Geneva: ISO. Ivan-Ungureanu, C., & Marcu, M. (2006). The Lisbon strategy. Romanian Journal of Economic Forecasting, 3(1), 74-83. James P. (1998). Μάνατζμεντ Ολικής Ποιότητας. Athens: Prentice Hall. (in Greek). Julnes, P., & Holzer M. (2001). Promoting the utilization of performance measurement in public organizations: An empirical study of factors affecting adoption and implementation. Public Administration Review, 61(6), 693-708. DOI: 10.1111/0033-3352.00140. Kazakou, K. (2010). Το Κοινό Πλαίσιο Αξιολόγησης ως εργαλείο για Διοίκηση Ολικής Ποιότητας. Θεσσαλονίκη: Περιφερειακό Ινστιτούτο Επιμόρφωσης, Τομέας Δημόσιου Μάνατζμεντ. (in Greek). Knowles, E.S., & Linn, J.A. (2004). The importance of resistance to persuasion. In E.S. Knowles, & J.A. Linn (Ed.), Resistance and persuasion (pp. 3-9). Mahwah, NJ: Lawrence Erlbaum. Kotter, J.P., Schlesinger, L.A., & Sathe, V. (1986). Organization: Text, cases, and readings on the management of organizational design and change. Homewood, IL: Irwin.

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Kuperus, H., & Rode, A. (2008). Top public managers in Europe: Management and working conditions of the senior civil servants in European Union member States. Maastricht: European Institute of Public Administration. Llewellyn, N., & Jones, G. (2003). Controversies and conceptual development: Examining public entrepreneurship. Public Management Review, 5(2), 245266. DOI: 10.1080/1461667032000066426. Luijn, H., Keuzenkamp, S., & McDonnell, S. (2004). Does leave work : Summary. Den Haag: Sociaal en Cultureel Planbureau. Massey, A. (1999). Public Policy and Administration. Quality Issues in the Public Sector, 14(3), 1-14. DOI: 10.1177/095207679901400301. Matei, L., & Lazăr, C.G. (2011). Quality management and the reform of public administration in several states in South-Eastern Europe: Comparative Analysis. Theoretical and Applied Economics, 18(4), 65-98. Matei, A., & Sabin Andreescu, S. (2005). Managementul calităţii totale în sectorul public: Experienţe europene. In International Conference of Public administration at the beginning of the third millennium: Disseminating the best Japanese practices in Romania, 21-22 Novembre 2005 (pp. 50-58). Bucharest: Facultatea de Administraţie Publică. (in Romanian). Matheson, A., & Hae-Sang, H. (2003). Public sector modernization: A new agenda. OECD Journal on Budgeting, 3(1), 7-23. Moustakis, V. (2012). Διοικητική Τεχνολογία. Chania: Disigma. (in Greek). Oakland, J.S., & Porter, L.J. (2003). TQM: Text with Cases. Burlington: Elsevier. OECD. (2001). Education at a glance: OECD indicators 2001. Paris: Organisation for Economic Co-operation and Development. DOI: 10.1787/eag-2001-en. OECD. (2003). The e-Government Imperative. OECD Journal on Budgeting, 3(1), 61-96. Passas, P. (2010). Texts of application tools of public management in Greek public administration: Lecture notes. Athens: National School of Public Administration. (in Greek). Pollitt, C., & Bouckaert, G. (1995). Quality improvement in European public services: Concepts, cases and commentary. London: Sage.

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Pollitt, C., & Bouckaert, G. (2000). Public management reform: A comparative analysis. Oxford: Oxford University Press. Robbins, S.P. (1998). Organizational behavior: Concepts, controversies and applications. Upper Saddle River, NJ: Prentice Hall. Rosenfeld, R. H., & Wilson, D. C. (1999). Managing organizations: Text, readings and cases. London: McGrawHill Publishing Company. Smye, M., & Cooke, R. (1994). The key to corporate survival: change begins and ends with people. In L.A. Berger, M.J. Sikora, & D.R. Berger (Ed.), The change management handbook: A road map to corporate transformation. New York: McGraw-Hill. Sotirakou, T., & Zeppou, M. (2006). Utilizing performance measurement to modernize the Greek public sector. Management Decision, 44(9), 1277-1304. DOI:10.1108/00251740610707730. Staes, P., & Thijs, N. (2005). Quality management on the European agenda. Eipascope, 2005(1), 33-41. Stashevsky, S., & Elizur, D. (2000). The effect of quality management and participation in decision-making on individual performance. Journal of Quality Management, 5(1), 53-65. DOI:10.1016/S1084-8568(00)00012-2. Tsiotras C. (2000). Βελτίωση Ποιότητας. Athens: Benos. (in Greek) Wanberg, C.R., & Banas, J.T. (2000). Predictors and outcomes of openness to changes in a reorganizing workplace. Journal of Applied Psychology, 85(1), 132142. DOI: 10.1037/0021-9010.85.1.132. Wong, M.S., Hideki, N., & George, P. (2011). The use of importance-performance analysis (ipa) in evaluating Japan’s E-government services. Journal of Theoretical and Applied Electronic Commerce Research, 3(2), 1730. DOI: 10.4067/S0718-18762011000200003. Young, P. C. (2012). Recursive estimation and time-series analysis: An introduction. Berlin: Springer. Zampetakis, L.A., & Moustakis, V. (2007). Entrepreneurial behavior in the Greek public sector. International Journal of Entrepreneurial Behaviour and Research, 13(1),19-38. DOI: 10.1108/13552550710725165. Zavlanos, M. (2006). Η Ποιότητα στις Παρεχόμενες Υπηρεσίες και τα Προϊόντα. Athens: Stamoulis Publications. (in Greek).

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Karyotakis K., Moustakis V.  Reinvention of the public sector

REFORMA JAVNOG SEKTORA: UPRAVLJANJE TOTALNIM KVALITETOM I UPRAVLJANJE PROMENAMA Rezime: Ovaj rad bavi se pitanjem upravljanja totalnim kvalitetom (TQM) i upravljanja promenama u javnom sektoru. Poseban naglasak stavlja se na ulogu TQM-a u javnom sektoru, koncept kvaliteta u javnom sektoru usluga, inovacije u javnom sektoru kao i na ulogu elektronske uprave. Takođe, posebnu pažnju u radu zavređuju najzanimljivije i najinovativnije prakse koje se primenjuju u Grčkoj. Na kraju rada svi razmatrani pojmovi su integrisani sa faktorima koji oblikuju promene.

Ključne reči: upravljanje promenama, elektronska uprava, reforma javnog sektora, javni menadžment, javne organizacije, upravljanje totalnim kvalitetom (TQM). Received: September 16th, 2014. Correction: October 10th, 2014. Accepted: October 22nd, 2014.

SJAS 2014, 11 (2): 45-53 ISSN 2217-8090 UDK: 331.101.3:614 ; 005.583.1 DOI: 10.5937/SJAS11-6957 Original paper/Originalni naučni rad

DIFFERENCES IN MOTIVATION OF HEALTH CARE PROFESSIONALS IN PUBLIC AND PRIVATE HEALTH CARE CENTERS Lepa Babić1,*, Boris Kordić2, Jovana Babić3 Singidunum University, Faculty of Business 32 Danijelova Street, Belgrade, Serbia 2 Faculty of Security Studies, University of Belgrade Gospodara Vučića 50, Belgrade, Serbia 3 Faculty of Philosophy, Department of Psychology, University of Belgrade, MA student Čika Ljubina 18-20, Belgrade, Serbia 1

Abstract: It is very important to achieve client satisfaction in the health care sector, which is why the issue of motivation of health care professionals is always an interesting topic to explore. Having in mind the current situation in the private health care sector in Serbia, we have decided to examine the differences in satisfaction of motivational needs in health care professionals, with an emphasis on differences between health care professionals working in public and private health care centres. We have used Maslow and Herzberg’s motivation theories when designing the appropriate questionnaire. The results obtained have revealed differences between subsamples. Health care professionals working in the private sector are more satisfied with their salaries, working conditions, job certainty and opportunities for professional development.

INTRODUCTION All activities of a company are realized through performance of its employees (Zámečník, 2014, p. 851). Employee motivation and engagement have always been the most interesting segments of research (Sanyal and Biswas, 2014, p. 185), although some believe that the topic of motivation has seen little empirical or theoretical research over the last fifteen years (Zámečník, 2014, p. 851). Employees conduct their activities diligently when driven by goals and incentives they find valuable (Robbins and Coulter, 2007). Work motivation is an extremely * E-mail: lbabic@singidunum.ac.rs

Key words: Maslow’s hierarchy of needs theory, Herzberg’s two-factor theory, health care professionals.

relevant factor which affects the quality and content of work-related outcomes in health care sector (Toode et al., 2011, p. 246). The workforce in this sector has specific features that cannot be ignored and health organizations are faced with external pressures that cannot be effectively met without appropriate workforce adjustments (Dussault and Dubois, 2003). In order to use human resources most effectively, health care organizations must assume a more systemic approach - one that accounts for factors beyond narrowly defined human resources management practices and includes organizational and institutional conditions (Dubois and Singh, 2009). 45

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Babić L., Kordić B., Babić J.  Differences in motivation of health care professionals

Work motivation is especially worth considering if we have in mind that dissatisfied doctors are a worldwide phenomenon (Edwards et al., 2002). The health system in many countries suffers due to the years of non-investment, which has resulted in poor salaries for health care professionals, poor working conditions, absence of leadership and many other incentives (Stilwell et al., 2004; Martinez et al., 2009). Domestic research results indicate that the strongest dissatisfaction in health care workers is associated with their salary and reward system (Čizmić and Milanović, 2004). Research conducted in China and Tanzania showed that the most important factors for performance improvement of health care professionals are the opportunities for professional development, opportunities for training and skill improvement, working environment, raises, working conditions and salaries (Hung et al., 2013; Manongi et al., 2006). Health professionals in Slovenia and Croatia have stated that their suggestions and eagerness for professional development are not taken into consideration when implementing changes in health care centers (Skela Savič and Pagon, 2008; Skela Savič and Robida, 2013). Almost two-thirds of medical staff in Australia has thought about leaving the public sector (Dalton, 2010). Having this in mind, we have decided to explore differences in motivation of health care professionals employed in public and private health care centers in Belgrade, Serbia. Out of numerous motivation theories, we have choosen the following two for the purpose of this paper: the hierarchy of needs theory developed by Abraham Maslow (Maslow, 1943) and the two–factor theory developed by Frederick Herzberg (Herzberg, 1964). Maslow’s theory has been adapted successfully to the healthcare area (Benson and Dundis, 2003; Herbst, 2006; Zalenski and Raspa, 2006; Duncan and Blugis, 2011). Herzberg’s theory has been used as a method to explore employee job satisfaction (Matzle and Renzl, 2007; Smerek and Peterson, 2007; Lundberg et al., 2009). There are also researchers who use both theories (Ţicu, 2013). The hierarchy of the needs theory states that human needs could be ranked starting from the physiological needs, i.e. bodily needs, to those related to self-development, which means to become what everybody wants and is able to become (Maslow, 1942). In between are safety needs, the social needs (friendship, acceptance) and assessment needs (selfesteem, recognition). The theory posits that certain needs take precedence over the others. Once the most fundamental needs have been largely satisfied, 46

safety needs are those that guide individual’s actions. After that, needs for love, affection, and belonging become the most important. Afterwards, individuals attempt to satisfy self-esteem and they eventually strive for self-actualization. The two-factor theory proposes that the relationship between the actors and their work is such that the different elements of the work situation satisfy or dissatisfy two different sets of needs. Hygiene factors are related to the working environment and include company policy and administration, supervision, relationship with supervisor, work conditions, salary, relationships with peers, personal life, and relationships with subordinates, status, and security. These factors can cause dissatisfaction when not gratified. However, when gratified these factors do not cause satisfaction. Motivating factors are intrinsic within the work itself and include achievement, recognition, work itself, responsibility, advancement, and growth. Herzberg proposed that the presence of hygiene factors leads to baseline satisfaction, but motivators are necessary to generate greater employee commitment and performance. These factors when fulfilled cause satisfaction, and when absent they do not cause dissatisfaction (Herzberg, 1971). PROBLEM In order to explore how differences between private and public health care centres in Belgrade affect satisfaction and/or dissatisfaction of needs of health care professionals, the detailed survey has been conduced, as elaborated in the text below. METHOD Survey instrument The questionnaire used to measure motivation of health care professionals was constructed for the purposes of this research. Prior to questions on motivation, there is a set of questions collecting demographic data concerning gender, age, education, position and working experience. Further statements in the questionnaire are derived from motivation theories of Maslow and Herzberg. The first part of the questionnaire consists of 21 items based on Maslow’s hierarchy of needs theory and the second part including 13 items refers to Herzberg’s theory of two factors and consists of a scale measuring motivators and a scale measuring hygiene factors. The answers are measured by a 5-point Likert scale.

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Participants and data collection

Babić L., Kordić B., Babić J.  Differences in motivation of health care professionals

The survey included public and private health care centres in Belgrade. The data were obtained by questioning 100 health care professionals. There were 15 men and 85 women aged 20 to 66 whose working experience ranges from 4 months to 39 years. The survey comprised 43 respondents in the nursing profession and 57 doctors. In a subsample of health care professionals working in public health care centres, there were 57 respondents, including 7 men and 50 women aged 24 to 63 whose working experience ranged from 5 months to 35 years. Out of the total number of respondents, 23 of them were in the nursing profession and 34 were doctors. In a subsample of health care professionals working in private health care centres there were 43 respondents, including 8 men and 35 women aged 20 to 66 whose working experience ranged from 4 moths to 39 years. Out of the total number of respondents within this subsample, 20 of them were in the nursing profession and 23 were doctors.

I am satisﬁed with my working conditions

0.481

I feel I have a job security

0.831

The company implements appropriate safety precautions

0.890

I am satisﬁed with the social and pension insurance

0.697

/values on the right represent the factor loadings/

Table 2. Factor “Safety”

The second factor indicates the evaluation of working conditions, safety precautions and employment stability.

My colleagues and I have a good relationship

0.942

One can feel the presence of co-operation in the company

0.995

My colleagues support me

0.521

/values on the right represent the factor loadings/

Table 3. Factor “ Sociability”

RESULTS The results obtained on 21 items derived from Maslow’s theory were submitted to the factor analysis. Five factors were preserved for the decision about the number of relevant factors. Factors were promax rotated with Kaiser Normalization. They cover 76.444% of variance (5 factors explain 41.09%, 15.05%, 8.21%, 7.08%, 5.02% of variance respectively). Cronbach’s alpha for the entire scale is 0.908. These are the factors:

The third factor indicates the relationship among colleagues at work. It includes co-operation, friendship and mutual support among colleagues. I always get acknowledgment from my superiors for a well-performed assignments

0.664

I can freely express my disagreement with superiors

0.941

My colleagues appreciate my contributions

0.543

/values on the right represent the factor loadings/

Table 4. Factor “ Respect” I am satisﬁed with the salary I receive

0.866

Bonus (stimulation) plan in the company is satisfying

0.857

There are reasonable periodic increases

0.696

My salary matches my commitment to work

0.878

/values on the right represent the factor loadings/

Table 1. Factor “Existence”

This factor integrates items concerning the satisfaction with salaries, bonuses and raises.

The fourth factor indicates that employee receives feedback from relationship with supervisors and colleges full of acknowledgment and appreciation. I constantly learn new things at my workplace

0.714

My job is challenging and encourages creativity

1.031

My job enables me to develop my personal and professional potentials

0.549

/values on the right represent the factor loadings/

Table 5. Factor “Self-actualisation” 47

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Babić L., Kordić B., Babić J.  Differences in motivation of health care professionals

The fifth factor integrates evaluation of possibilities to acquire knowledge, be creative and develop personal and professional potentials. Data obtained on items derived from Herzberg’s theory were submitted to the factor analysis. Two factors were preserved according to the use of scree criteria for the decision about number of relevant factors. Factors were promax rotated with Kaiser Normalization. They cover 58.805% of variance (2 factors explain 38.63% and 20.18% of variance respectively). Cronbach’s alpha for the scales based on Herzberg’s theory is 0.875 for motivators and 0.759 for hygiene scale. These are the factors:

To which extent is your job satisfaction aﬀected by: your success with what you do

0.768

the responsibilities you have at work

0.568

possibilities of knowledge advancements

0.842

advancement in the organization

0.830

your supervisors’ acknowledgment for the results you achieve

0.825

your colleagues’ acknowledgment for the results you achieve

0.836

/values on the right represent the factor loadings/

Table 6. Factor “Motivators”

This factor covers evaluations of the extent to which job satisfaction is affected by success, responsibilities, possible advancements and acknowledgment. To which extent is your job dissatisfaction aﬀected by: poor working conditions

0.540

job uncertainty

0.568

organization’s policies

0.737

your status within the organization

0.904

supervisors’ control and surveillance

0.778

/values on the right represent the factor loadings/

Table 7. Factor “Hygiene” 48

The second factor includes items concerning organization policies, control and surveillance and one’s position within the company and it indicates the characteristics of the work place.

Variable

sociability

3.63

0.84

motivators

3.54

0.99

self-actualization

3.39

1.01

safety

3.31

0.95

respect

2.96

0.90

hygiene

2.47

0.89

existence

2.18

1.08

Table 8. Arithmetic means and standard deviations sorted from most to least satisﬁed

It can be noted that respondents perceive their social need as most satisfied, followed by motivators and self-actualization, and their existential needs as least satisfied. The hygiene factor correlates with only two other factors. It has a positive correlation with sociability and a negative correlation with motivators. Differences between public and private health centres The comparative results of the average values of all 7 factors of motivation are shown in Table 10. T-test (independent samples test) was used for the comparison of two samples of health care professionals (working in public and private health care centres). It can be noted that two groups differ significantly in three factors: existence, safety and selfactualisation.

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Babić L., Kordić B., Babić J.  Differences in motivation of health care professionals

safety

sociability

respect

selfactualization

motivators

hygiene

existence

0.534**

0.197*

0.411**

0.467**

0.389**

0.003

safety

1.000

0.431**

0.482**

0.493**

0.430**

0.075

1.000

0.607**

0.526**

0.244*

0,232*

1.000

0.526**

0.431**

0.141

1.000

0.422**

0.076

1.000

-0.290**

sociability respect self-actualization motivators

Extraction Method: Principal Component Analysis. Rotation Method: Promax with Kaiser Normalization. **– correlation is signiﬁcant at the .01 level (2-tailed). * – correlation is signiﬁcant at the .05 level (2-tailed).

Table 9. Inter-correlations of principal components

HEALTH CARE CENTER

PUBLIC N = 57

PRIVATE N = 43

VARIABLE

df1

df2

Sig.

existence

1.71

0.92

0.104

89.121

0,000

safety

3.02

0.91

0.492

91.963

0,000

sociability

3.55

0.81

0.138

86.598

0,271

respect

2.93

0.91

0.334

91.559

0,732

self-actualization

3.18

1.07

3.396

97.533

0,012

motivators

3.38

1.05

3.906

97.326

0,062

hygiene

2.42

0.87

0.015

88.011

0,593

existence

2.81

0.95

safety

3.69

0.88

sociability

3.74

0.87

respect

2.99

0.88

self-actualization

3.68

0.86

motivators

3.76

0.86

hygiene

2,52

0,92

Table 10. Arithmetic means, standard deviations and F-test of signiﬁcance of diﬀerences between arithmetic means for 7 factor between the health care professionals working in public and private health care centers 49

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Babić L., Kordić B., Babić J.  Differences in motivation of health care professionals

Factors

Function

existence

0.822

safety

0.510

self-actualization

0.356

motivators

0.264

sociability

0.155

hygiene

0.075

respect

0.048

Table 11. Structure matrix of canonical discriminative function

Coefficient of canonical correlation as the index of maximal differentiations of health care professionals working in public and private health care centres on linear function composed of scores of the given 7 factors extracted in our research is 0.586 (Wilks Lambda = .657, Chi-square = 39.737, df = 7, p <.001). Table 10. shows that the discriminative function which maximally differentiates professionals working in public from professionals working in private health care centres is mostly determined by “existence”, and then by “safety”. Group centroids on this function are: public –0.622, and private 0.824. These results point to the fact that the needs of those working in private health care centres are more satisfied in existence, safety and self-actualization. It is worth noting that there were no significant differences between doctors and nurses and no differences in terms of working experience and other demographic variables. DISCUSSION First, we will discuss factors derived from Maslow’s theory. Factor Existence coincides with satisfaction of basic needs in Maslow’s hierarchy simply because nowadays money can provide the means to satisfy those needs. In the general sample, these are the needs estimated as least satisfied, meaning that salaries are perceived as low and are not matching the commitment to work. This can be related to the poor economic situation not only in Serbia but in the entire region. 50

Factor Safety is important for an employee to feel safe and protected in his working environment in order to do his best, especially in professions such as health care. Working as a health care professional provides employment certainty, because the chances of dismissal are rather low. Working conditions in the public sector are not as satisfying as those in the private health care sector. Therefore, this need is more satisfied among health care professionals working in private health care centres. The Sociability factor is most satisfied in our sample of health care professionals compared to other needs and motivators/hygiene factors examined (Table 9). This means that horizontal communication, namely communication between colleagues of the same status and profession is being friendly and supportive. Sociability has statistically significant positive correlations with all other factors, but the correlation with Motivators is rather low. We could say that employees enjoy communicating with their co-workers, but this kind of communication and satisfaction is not what makes them motivated to do their job. On the other hand, the Respect factor has been estimated as quite poor. It analyses concerns the relationship health care professionals have with their supervisors. Perceived lack of positive feedback in communication and respect for one’s opinion could be understood as a deficit in mutual professional communication with supervisors. These results are in contrast with high satisfied sociability needs and self-actualization needs, but they coincide with the results from health care professionals surveyed in Slovenia and Croatia (Skela Savič and Pagon, 2008, Skela Savič and Robida, 2013). Vertical communication is influenced by professionals’ values and the existence of appropriate institutional coordination mechanisms (Martinez et al., 2009). This means that although horizontal communication within health care centers is good, vertical communication requires improvement. Even though these types of improvements can be complicated, they are necessary for the overall improvement of the system. Further research could be focused on examining feedback professionals get from their supervisors and whether it contains acknowledgment for their work. The Self-actualization factor is assessed in the general sample as the third most satisfied, preceded by Sociability and Motivators. In accordance with other research (Hung et al., 2013), opportunities for professional development, training and skill improvement are some of the most important work in-

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Babić L., Kordić B., Babić J.  Differences in motivation of health care professionals

centives. The nature of their job allows health care professionals to observe every new case as an opportunity to learn, find alternative solutions to similar problems and improve themselves in multiple ways. There is also a need to continuously work on knowledge improvement due to new findings in medicine and pharmacotherapy. Very often health care workers have seminars on such discoveries. The factor Motivators, based on Herzberg’s theory, covers evaluations of the extent to which job satisfaction is affected by success, responsibilities, possible advancements and acknowledgment. Successful interventions toward patients, acquiring new knowledge and making advancements are the most important subjects affecting job satisfaction of health care professionals. Noteworthy is the fact that factor Motivators from Herberg theory correlates significantly on .001 level with all factors of Maslow’s theory except with Sociability. This means that Sociability is an important need to be satisfied but not as important to be one of the leading motivators which stimulate employee committment to work. The Hygiene factor is the only factor measuring dissatisfaction. If the rules are not clear, procedures not followed and communication inadequate, employees will be dissatisfied because it is unclear how they should behave in certain situations. The Hygiene factor shows moderate dissatisfaction in our sample. Negative correlation with Motivators means that in our sample health care workers are demotivated with hygiene factors. This is in tune with the fact that Hygiene correlates only with Sociability, among of all factors from Maslow’s theory. We have already identified lower correlation between Sociability and Motivators, and now we can add that Sociability could be seen as an important factor for lowering dissatisfaction at work place. Origins of these correlations should be further investigated taking into consideration the nature and specificity of this profession. Our research confirms the existence of differences in satisfaction of needs between health care professionals working in private and public health care centres (see Table 10). Such differences are present in three factors: Existence, Safety and Self-actualisation. It should also be mentioned that we have encountered differences when using the theory of hierarchy of needs and not the two-factor theory. Employees in private health care centres are more satisfied with their salaries, bonuses and increases, as well as with with their working conditions and opportunities for further personal and professional development.

These results raise various questions that need to be answered in further research. Are the salaries in private health centres really significantly higher and are their budgets distributed in a more appropriate way considering the profession? Are the working conditions really better in the private sector and which are the segments that differentiate the conditions in private health care centres from those in the public sector? Are educations and seminars more frequent and better organised in the private sector? It would also be interesting to examine the fluctuation among public and private sectors. Are employees in the public sector attracted to transfer into the private health care centres due to greater privileges? What are the factors preventing them to make such a step? Our research shows that exploring the differences between public and private sector is worth it, but that it is desireable to use different approaches i.e., theories, in order to get valid and usable results. CONCLUSION

Maslow’s theory of hierarchy of needs has revealed significant diffrences between health care professionals working in public and private health care centres. On the other hand, the use of twofactor theory has not led to any such findings. The needs of health care workers in the private sector are more satisfied when it comes to existence, safety and self-actualisation. The results obtained can be used for gaining a more clear perception of the situation in the labour market in the health care sector, as well as for further improvement of working conditions in public health care centres. REFERENCES Benson, S.G., & Dundis, S.P. (2003). Understanding and motivating health care employees: integrating Maslow’s hierarchy of needs, training and technology. Journal of Nursing Management, 11(5), 315-320. Čizmić, S.M., & Milanović, S.S. (2004). Work motivation of employees exposed to ionizing radiation. Bilten Instituta za nuklearne nauke Vinča, 9(1-4), 23-31. Dalton, S. (2010). Motivating medicine: Why money is not enough. Journal of Paediatrics and Child Health, 46(4), 142-143. Dubois, C., & Singh, D. (2009). From staff-mix to skill-mix and beyond: towards a systemic approach to health workforce management. Human Resources for Health, 7(87), 1-19. DOI:10.1186/1478-4491-7-87. 51

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Duncan, M.K.W., & Blugis, A. (2011). Maslow’s Needs Hierarchy as a Framework for Evaluating Hospitality Houses’ Resources and Services. Journal of Pediatric Nursing, 26(4), 325-331. DOI: 10.1016/j. pedn.2010.04.003.

Dussault, G., & Dubois, C. (2003). Human resources for health policies: A critical component in health policies. Human resources for health, 1(1), 1-16. DOI: 10.1186/1478-4491-1-1. Edwards, N., Nomacki, M., & Silversin, J. (2002). Unhappy doctors: what are the causes and what can be done. British Medical Journal, 324, 835–838. DOI:10.1136/ bmj.324.7341.835. Herbst, L.H. (2006). Applying the concepts from Maslow in a large U.S. hospice program. Journal of Palliative Care, 9(5), 1049-1050. DOI:10.1089/jpm.2006.9.104. Herzberg, F. (1964). The Motivation-Hygiene Concept and Problems of Manpower. Personnel Administrator, 27(1), 3-7. Herzberg, F. (1971). Work and the nature of man. New York: World Publishing. Hung, L.M., Shi, L., Wang, H., Nie, X., & Mengm Q. (2013). Chinese primary care providers and motivating factors on performance. Family Practice, 30(5), 576-586. Lundberg, C., Gudmundson, A., & Andersson, T. D. (2009). Herzberg’s Two-Factor Theory of work motivation tested empirically on seasonal workers in hospitality and tourism. Tourism Management, 30(6), 890-899. Manongi, R.N., Marchant, T.C., & Bygbjerg, I.C. (2006). Improving motivation among primary health care workers in Tanzania: a health worker perspective. Human resources for health, 4(6). DOI: 10.1186/14784491-4-6. Martínez, D.H., Vásquez Navarrete, M.L., & Vagras Lorenzo, I. (2009). Factors influencing coordination among healthcare levels according to the opinion of healthcare managers and health professionals. Gaceta sanitaria, 23(4), 280-286. DOI:10.1016/j.gaceta.2008.05.001. Maslow, A.H. (1943). A Theory of Human Motivation. Psychological Review, 50(4), 370–396. Matzle, K., & Renzl, B. (2007). Assessing asymmetric effects in the formation of employee satisfaction. Tourism Management, 28(4), 1093-1103. DOI: 10.1016/j. tourman.2006.07.009.

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Sanyal, M.K., & Biswas, S.B. (2014). Employee motivation from performance appraisal implications: Test of a theory in the software industry in West Bengal (India). Procedia Economics and Finance, 11, 182-196. DOI: 10.1016/S2212-5671(14)00187-7. Skela Savič, B., & Pagon, M. (2008). Individual involvement in health care organizations: differences between professional groups, leaders and employees. Stress Health, 24, 71-84. DOI: 10.1002/smi.1164. Skela Savič, B., & Robida, A. (2013). Capacity of middle management in health-care organizations for working with people – the case of Slovenian hospitals. Human Resources for Health, 11(18). DOI: 10.1186/1478-449111-18. Smerek, R.E., & Peterson, M. (2007). Examining Herzberg’s theory: Improving job satisfaction among non-academic employees at a University. Research in Higher Education, 48(2), 229-250. DOI: 10.1007/s11162-0069042-3. Stilwell, B., Diallo, K., Zurn, P., Vujičić, M., Adams, O., & Dal Poz, M. (2004). Migration of health-care workers from developing countries: Strategic approaches to its management. Bulletin of the World Health Orgaization, 82, 595-600. Ţicu, D. (2013). Theories of motivation in public policies process. Procedia - Social and Behavioral Sciences, 92, 925-929. DOI: 10.1016/j.sbspro.2013.08.778. Toode, K., Routasalo, P., & Suominen, T. (2011). Work motivation of nurses: A literature review. International Journal of Nursing Studies, 48(3), 246-257. DOI: 10.1016/j.ijnurstu.2010.09.013. Zalenski, R. J., & Raspa, R. (2006). Maslow’s Hierarchy of Needs: A framework for achieving human potential in hospice. Journal of Palliative Medicine, 9(5), 11201127. Zámečník, R. (2014). The measurement of employee motivation by using multi-factor statistical analysis. Procedia - Social and Behavioral Sciences, 109, 851-857. DOI: 10.1016/j.sbspro.2013.12.553.

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Babić L., Kordić B., Babić J.  Differences in motivation of health care professionals

RAZLIKE U MOTIVACIJI ZAPOSLENIH U DRŽAVNIM I PRIVATNIM DOMOVIMA ZDRAVLJA

Rezime: U zdravstvenom sektoru je izuzetno važno postići zadovoljstvo klijenata i stoga je pitanje motivacije zaposlenih u tom sektoru uvek interesantno za istraživanje. S obzirom na razvoj privatnog sektora zdravstva u Srbiji odlučili smo da ispitamo razlike u zadovoljenju motivacionih potreba zaposlenih u zdravstvenom sektoru, s posebnim osvrtom na razliku između privatnog i državnog sektora. U konstruisanju istraživačkog upitnika pošli smo od motivacionih teorija Maslova i Hercberga. Rezultati su pokazali da postoje razlike među poduzorcima. Zdravstveni radnici u privatnom sektoru su zadovoljniji platom, radnim uslovima, sigurnošću posla i mogućnostima za profesionalni razvoj.

Ključne reči: Maslovljeva teorija hijerarhije potreba, Hercbergova dvofaktorska teorija, zdravstveni radnici. Received: October 5th, 2014. Correction: October 17th, 2014. Accepted: October 22nd, 2014.

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4. TEXT General rules for writing: ◆ use simple and declarative sentences, avoid long sentences, in which the meaning may be lost by complicated construction;

◆ be concise, avoid idle words; ◆ make your argumentation complete; use commonly understood terms; define all nonstandard symbols and abbreviations when you introduce them; ◆ Latin words, as well as the names of species, should be in italic, as for example: i.e. or e.g. ◆ explain all acronyms and abbreviations when they first appear in the text. Generally a standard scientific paper is divided into: ◆ introduction, ◆ main text, ◆ conclusion. Footnotes/Endnotes/Acknowledgements: We encourage authors to restrict the use of footnotes. If necessary, please make endnotes rather than footnotes. Information concerning research grant support or the assistance of colleagues should appear in a separate Acknowledgements section at the end of the paper, not in a footnote.

5. REFERENCE LIST A complete reference should give the reader enough information to find the relevant article. Please pay particular attention to spelling, capitalization and punctuation. The article should contain no fewer than 25 references, preferably published recently. Completeness of references is the responsibility of the authors. Please avoid references to unpublished materials, private communication and web pages. The surname of the author and the year of publication appear in parentheses after the citation, for example (Fisher, 2010). If more than one publication by the same author appear in one year, they must be distinguished by an a, b, etc., for example 2001a, 2001b. In case of quoting the actual words of another author, the page number should be provided, e.g. (Hollard, 2010, p. 23). If the name naturally occurs in the sentence, only the year is given in parentheses, e.g. “Benoliel (1999) thinks…” If there are two authors, the surnames of both should be given (Fisher and Hollard, 2009). If there are more than two authors, the surname of the first author only should be given, followed by et al. (Wilson et al., 2008). However, full names of all authors should be given in the list of references. The original journal title is to be retained in the case of publications published in any language other than English (please denote the language in parenthesis after the reference in the Reference list). 1. Book a. Book (one author) Format: Author. (Year of publication). Book title. Place of publication: Publisher. Example: Baxter, R. (1982). Exactly solvable models in statistical mechanics. New York: Academic Press. b. Book (two or more authors) Format: Author1, Author2, & Author3. (Year of publication). Book title. Place of publication: Publisher. Example: Kleiner, F.S., Mamiya C.J., & Tansey R.G. (2001). Gardner’s art through the ages (11th ed.). Fort Worth, USA: Harcourt College Publishers. 56

SJAS 2014

Instructions for authors

c. Book chapter or article in an edited book Format: Author(s) of chapter. (Year of publication). Chapter title. In Editors of the book (Ed.), Book title (Chapter page range). Place of publication: Publisher. Example: Roll, W.P. (1976). ESP and memory. In J.M.O. Wheatley & H.L. Edge (Ed.), Philosophical dimensions of parapsychology (pp. 154-184). Springfield, IL: American Psychiatric Press. d. Proceedings from a conference Format: Author(s). (Year of publication). Title. In Conference name, Date (Page range). Place of publication: Publisher. Example: Field, G. (2001). Rethinking reference rethought. In Revelling in Reference: Reference and Information Services Section Symposium, 12-14 October 2001 (pp. 59-64). Melbourne, Victoria, Australia: Australian Library and Information Association. e. E-book Format: Author(s). (Year of publication). Title. Publisher. Retrieving date, http address. doi. Example: Johnson, A. (2000). Abstract Computing Machines. Springer Berlin Heidelberg. Retrieved March 30, 2006, from SpringerLink http://springerlink.com/content/w25154. doi: 10.1007/b138965. f. Thesis Format: Author(s). (Year of publication). Title. Information, Place of publication. Example: Begg, M.M. (2001). Dairy farm women in the Waikato 1946-1996: Fifty years of social and structural change. Unpublished doctoral dissertation, University of Waikato, Hamilton, New Zealand. g. Government publication Format: Institution name. (Year of publication). Title. Place of publication: Publisher. Example: Ministerial Council on Drug Strategy. (1997). The national drug strategy: Mapping the future. Canberra: Australian Government Publishing Service. 2. Article a. Journal Article (one author) Format: Author. (Year of publication). Article title. Journal Title. Volume (issue), range of pages. doi. Example: Nikora, V. (2006). Hydrodynamics of aquatic ecosystems: Spatial-averaging perspective. Acta Geophysica, 55(1), 3-10. doi: 10.2478/s11600-006-0043-6. b. Journal Article (two or more authors) Format: Author1, Author2, & Author3. (Year of publication). Article title. Journal Title. Volume (issue), range of pages. doi. Example: Cudak, M., & Karcz, J. (2006). Momentum transfer in an agitated vessel with off-centred impellers. Chem. Pap. 60(5), 375-380. doi: 10.2478/s11696-006-0068-y. 57

SJAS 2014

Instructions for authors

c. Journal article from an online database Format: Author(s). (Year of publication). Article title [Electronic version]. Journal Title. Volume (issue), range of pages. Retrieved date of access, from name of database. doi. Example: Czajgucki Z., Zimecki, M., & Andruszkiewicz, R. (2006, December). The immunoregulatory effects of edeine analogues in mice [Abstract]. Cell. Mol. Biol. Lett. 12(3), 149-161. Retrieved December 6, 2006, from PubMed database on the World Wide Web: http://www.pubmed.gov. doi: 10.2478/ s11658-006-0061-z. d. Newspaper article (no author) Format: Article title. (Publication date). Journal Title. page. Example: Amazing Amazon region. (1989, January 12). New York Times, p. D11. 3. Other formats a. Web page Format: Author/Sponsor. (last update or copyright date). Title. Retrieved date of access, from URL. Example: Walker, J. (1996, August). APA-style citations of electronic resources. Retrieved November 21, 2001, from http://www.cas.usf.edu/english/walker/apa.html. b. Lecture note Format: Author(s). (Date of presentation). Lecture title. Lecture notes distributed in the unit, at the name of the teaching organisation, the location. Example: Liffers, M. (2006, August 30). Finding information in the library. Lecture notes distributed in the unit Functional Anatomy and Sports Performance 1102, University of Western Australia, Crawley, Western Australia. c. Patent Format: Author. (Year). Patent number. The location. Issue body. Example: Smith, I. M. (1988). U.S. Patent No. 123,445. Washington, D.C: U.S. Patent and Trademark Office. d. Standard Format: Issue body. (Year). Standard name. Standard number. The location. Example: Standards Association of Australia. (1997). Australian standard: Pressure equipment manufacture. AS4458-1997. North Sydney. e. Computer software Format: Author(s). (Year). Title [computer software]. The location: Company. Example: Ludwig, T. (2002). PsychInquiry [computer software]. New York: Worth. 58

SJAS 2014

Instructions for authors

Tables and figures and/or schemes should not be embedded in the manuscript but their position in the text indicated. In manuscript tables and figures should follow the text, each on a separate page.

6. TABLES Authors should use tables to achieve concise presentation or where the information cannot be given satisfactorily in other ways. Tables should be prepared with the aid of the Word table function, without vertical lines. The minimum size of the font in the tables should be 10 pt. Tables should not be incorporated as graphical objects. Styles and fonts should match those in the main body of the article. Tables should follow the text on the end of the manuscript and should be numbered consecutively using Arabic numbers and their position in the text should be indicated. Each table should have an explanatory caption which should be as concise as possible.

7. FIGURES Authors may use line diagrams to illustrate theses from their text. The figures should be clear, easy to read and of good quality. Styles and fonts should match those in the main body of the article. Lettering and lines should be of uniform density and the lines unbroken. Axis labels should be in bold face. Units should be placed next to variables in parentheses. Figures should follow the text on the end of the manuscript and should be numbered consecutively using Arabic numbers and their position in the text should be indicated. Mathematical equations should be embedded in the text. Complex equations should be prepared with the aid of the Word Equation editor. All equations must be numbered, Arabic numbers, consecutively in parenthesis at the end of the line, as presented:

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CIP - Каталогизација у публикацији Народна библиотека Србије, Београд 33

Singidunum Journal of Applied Sciences : economics, management, tourism, information technology and law / editor-in-chief Milovan Stanišić. - Vol. 9, No. 1 (2012)- . Belgrade (Danijelova 32) : Singidunum University, 2012- (Loznica : Mladost grup). 28 cm Dva puta godišnje. - Je nastavak: Singidunum revija = ISSN 1820-8819 ISSN 2217-8090 = Singidunum Journal of Applied Sciences COBISS.SR-ID 188621836