Contribution of Fishing Industry Towards Poverty Reduction in Zanzibar

THE UNIVERSIRY OF DODOMA COLLEGE OF HUMANITIES AND SOCIAL SCIENCES SCHOOL OF ECONOMICS AND BUSINESS STUDIES DEPERTMENT OF ECONOMICS AND STATISTICS RESEARCH – PROPOSAL. TOPIC: The contribution of fishing industry towards poverty reduction in Zanzibar. SUPERVISOR: CANDIDATE: MR. BONGOLE, A J MUSSA, HANIFU T/UDOM/2010/03536 Table of Contents THE UNIVERSIRY OF DODOMA1 COLLEGE OF HUMANITIES AND SOCIAL SCIENCES1 SCHOOL OF ECONOMICS AND BUSINESS STUDIES1DEPERTMENT OF ECONOMICS AND STATISTICS1 LIST OF ABBREVIATION3 CHAPTER ONE4 OVERVIEW OF THE STUDY4 1. 0 Introduction4 1. 1 Background Information to the problem4 1. 2Statement of the problem. 5 1. 3. Significant of the study5 1. 4 Scope of the study5 1. 5Objective of the research5 1. 5. 1General objectives. 5 1. 5. 2Specific objectives5 1. 6 . Hypothesis of the study6 CHAPTER TWO7 LITERATURE REVIEW. 7 2. 0. INTRODUCTION7 2. 1 Definition of fishing7 2. 1 Background of fishing Industry7 2. 2 Fishing in Zanzibar’s economy7 2. 3 POV ERTY REDUCTION8 . 4 Definition of poverty8 2. 4. 0: Growth and poverty8 CHAPTER THREE9 3. 0: METHODOLOGY9 3. 1 AREA OF THE STUDY10 3. 2 TARGETED POPULLATION10 3. 3 PURPOSE OF THE STUDY AND TYPE OF INVESTIGATION10 3. 4 DATA COLLECTION. 10 3. 5 SAMPLING DESIGN10 3. 6 QUESTIONNAIRE SURVEY11 3. 7 THE INTERVIEW SURVEY11 3. 8 DATA ANALYSIS11 3. 9 CONTRIBUTION OF THE STUDY11 MODEL OF THE STUDY11 BIBLIOGRAPHY12 QUESTIONNARES13 LIST OF ABBREVIATION BOT – Bank of Tanzania DD – Demand FDZ -Fisheries Department of ZanzibarGDP – Gross Domestic Product GOZ – Government of Zanzibar MOFEA – Ministry of Finance and Economic Affairs SMEs – Small and Medium Enterprises TZS – Tanzania Shillings UK – United Kingdom URT – United Republic of Tanzania USD – United States Dollars ZIPA – Zanzibar Investment Promotion Authority ZIP -Zanzibar Investment Policy ZNZ – Zanzibar ZPRP – Zanzibar Poverty Reduction Plan CHAPTER ONE OVERVIEW OF THE STUDY 1. 0 IntroductionThis chapter covers the contextual background of the problem stating clearly how the problem come about/historical development and what is being done so far on literature review , stating clearly the statement of the problem, general and specific research objectives, general and specific research questions. 1. 1 Background Information to the problem Zanzibar’s fishing is almost entirely artisanal and is conducted in the shallow waters along the coast. The entire fishing grounds are about 4,000 square kilometers for Unguja and 2,720 square kilometers for Pemba.Much of this area has coral reefs and a variety of flora and fauna making the region ideal for fishing. Indeed, there is an enormous potential for increased production of marine products, through offshore and deep-sea fishing including processing, for both domestic and export markets(ZIP). The Zanzibar Poverty Reduction Plan (ZPRP 2002) stipulates that growth in the agricultura l sector is crucial due to its pro-found positive impact on poverty reduction. Based on this back drop, once growth in agriculture is stimulated, most poor people in this sector will benefit culminating into poverty reduction.The fishing sub-sector has a relatively lower contribution in export compared to other exports such as cloves, manufactured goods and other exports. Statistics show that from 2000 to 2004 exports of fish amounted to USD 0. 53million accounting for 0. 7%of total exports amounting to USD 67. 5 million. (ZPRP 2002) However, the market potential is yet to be sufficiently exploited because of a fish catches , not withstanding the fact that Zanzibar is surrounded by sea. Generally, fishing activities in Zanzibar are concentrated on onshore.According to the Agricultural Policy(2000),the main reason for shallow sea fishing with low fish yield is lack of capital to purchase larger vessels to engage in deep sea fishing, indicating that fishing is not developed (some of f ishermen do not use fishing vessels but use rudimentary tools for catching fish such as spears sticks, knives, small nets and bare hands). Fish stocks include small pelagic, coral reef fish, lobsters, octopus and large pelagic etc The fishing territorial area is made of about 4,000sq. kms for Unguja or 59. 5% and 2,720sq. kms for Pemba accounting for 40. 5% of total.Statistics for fish catch indicate a fluctuating trend between 1992 and 1997,before attaining a steady increasing path from 1998 towards 2002. However the actual production is still low and does not contribute significantly in Zanzibar fish exports despite high potentiality. Distribution of fish catches by districts reveal that currently urban Unguja district is leading in fish production since 2001, outpacing North district which dominated before. Exports (export earnings) was the highest in 2003 because of the sea products such as sea shells and sea cucumber from the business people. The Zanzibar Poverty Reduction Plan (ZPRP Jan 2002)) 1. 2Statement of the problem. Zanzibar, having two islands namely Unguja and Pemba located in the Indian ocean have varieties of fish. The islands are accessible by sea, having two ports in Unguja and Pemba making it easier to export fish products, these factor facilities are important for developing fishing industry. According to Tanzania Reproductive and Child Health Survey(1999) about 35. 8% of under five children are stunted of which 12. 2% are severely stunted. For Pemba 46. 25% of under five children are stunted, while for ungula it is 27. 5% . The situation calls for a study to establish how the fishing industry can be improved (e. g. by identifying appropriate technology and reliable markets) to get rid of malnutrition, reduce poverty, increase export proceeds, increase tax revenue and increase employment opportunities. 1. 3. Significant of the study The finding of this research will encourage the concerned authorities to perform their duties that is by impr oving the fishing industry in order to reduce poverty and exercise their professions and responsibilities towards controlling the current problem which is poverty.Further more the study will collect information from different sources and use the findings to alert the authorities concerned about the fishing industry and how it will contribute towards reduction poverty. 1. 4 Scope of the study The study will take about 2 weeks in February and will cover Zanzibar as a case study which will be the inclusion of Unguja as it analyses the contribution of fishing industry towards poverty reduction in Zanzibar. 1. 5Objective of the research 1. 5. 1General objectives. To estimate the extent of fishing industry on poverty reduction in the study area 1. 5. Specific objectives The study will seek to achieve the following: To evaluate the potentiality of fishing in Zanzibar economy To identify problems and opportunities in fishing industry and its marketing in the study area To assess the applica bility of fishing industry towards the reduction of poverty in the study area 1. 6 . Hypothesis of the study The following will be tested in order to assess the validity of both overall and specific objectives. Does the fishing industry leads to the poverty reduction? That is: Null hypothesis (HO): Fisheries improvement is the determinant for poverty reduction.Alternative Hypothesis (Hi): fisheries improvement is not a determinant of poverty reduction. CHAPTER TWO LITERATURE REVIEW. 2. 0. INTRODUCTION This study comprises literature review about the contribution of fishing industry towards the poverty reduction in Zanzibar. These reviews include books, journals, articles and details from the Ministry of Agriculture and Fisheries Department. This chapter is divided into two parts. The first part deals with Fishing Industry and the second part is a review in Poverty Reduction. 2. 1 Definition of fishingFrom the encyclopedia (Britanica) ; – Fishing involves the recovery of foods and other valuable resources from bodies of water. Fishing involves the extraction of all marine products. – Fishery; is harvesting of as a commercial enterprise or the location or season of commercial fishing. 2. 1 Background of fishing Industry (FDZ) Government of Zanzibar’s involvement in fishing activities started many years ago but because of abundant resources, few fishers and primitive gear, fisheries activities were not considered important.Before 1964 revolution, there was a private fishing corporation under management of the Greeks, which was charged with supervision of all fishing activities in Zanzibar. After the 1964 Revolution, the Government of Zanzibar nationalized the corporation as established it as public enterprise charged with the responsibility of monitoring fishing activities and improving working conditions of the fisher folk. In 1974,the Revolutionary Government of Zanzibar formed the Department of Fisheries, under the Ministry of Agriculture, Livestock and Environment.Besides other functions, and key responsibility of the department was directed to supervise and modernize fishery activities. In order to modernize fishing, the department of Fisheries established several centres for coordinating, simplifying and promoting fishing activities. 2. 2 Fishing in Zanzibar’s economy Unguja and Pemba are surrounded by rich marine resources, the people of Zanzibar utilize marine products for subsistence and as a source of income, with fish being among the most important resources and socio-economic activities of the people in Zanzibar economy.Fishing has been conducted in the islands since the dawn of humanity and still continues to be an important coastal activity. Fishing provides employment for men and women and almost all age groups. Fishing activity employs an average of 25% of the population as artisanal fishers and account for an average of 4. 5% of GDP. According to the recent data provided by Ministry of Agricultur e, Livestock and Environment( Department of Fisheries and Marine Resources – Zanzibar),there has been gradual decrease in the GDP accounted from fishing sector.In 2004 GDP for fish had increased to 5% and it kept on increasing in 2005 reaching 5. 9% but from there it went on decreasing in the year 2006 reaching 4. 9%. So in my study i will try to look for the reason of decreasing in this fishing industry and try to look at which ways the government suppose to do to improve it and help the people of Zanzibar that is reduce the poverty. 2. 3 POVERTY REDUCTION Before getting to the concept of Poverty Reduction, the meaning of Poverty should be understood. 2. 4 Definition of poverty According to the World’s encyclopaedia 9:652:3aPoverty is the condition that is said to exist when people lack the means to satisfy their basic needs which are necessary for survival. According to Gerald M. Meir and James E. Rauch in the book Leading Issues in Economic Development (seventh edit ion) ; Poverty is concerned with the absolute standard of living of a part of the society. According to Michael Todaro and Stephen Smith in their book Economic Development ; Poverty is the number of people who are unable to command sufficient resources to satisfy basic needs. it’s a total number living below a specified minimum level of real income – an international poverty line.Most current projections call for the number of persons living in poverty to rise over the current decade but this outcome depends on two factors; – the rate of economic growth – the level of resources devoted to poverty programs and the quality of those programs. 2. 4. 0: Growth and poverty Rapid growth is bad for the poor because they would be bypassed by the structural changes of modern growth. I will try to look how the public expenditures required for the reduction of poverty would entail the reduction in the rate of growth.The poor tend to spend additional income on improve d nutrition, education for children, improvements in housing conditions and other expenditures that especially at poverty levels represent investments rather than consumption. Reasons why policies focused towards reducing poverty levels need not to lead in slower rate of growth ; i. widespread poverty creates conditions in which the poor have no access to credit, are unable to finance their children’s education and the absence of physical or monetary investment opportunities. ii.The low incomes and the low level of living for the poor which are manifested in poor health, nutrition and education can lower their economic productivity and lead to the slower growing economy. iii. Raising the income levels of the poor will stimulate an overall increase in the demand for locally produced necessity products like food and clothing whereas the rich tend to spend on luxury goods. iv. A reduction of mass poverty can stimulate healthy economic expansion by acting as a powerful material a nd psychological incentive to widespread public participation in the development process. CHAPTER THREE . 0: METHODOLOGY. The methodology that will be applied in my study has been chosen in order to acquire information and deduce conclusions about the contribution of fishing industry towards poverty reduction and the alternative measures which should be taken in order to make sure that they adapt to this problem. 3. 1 AREA OF THE STUDY The study will be conducted at mkokotoni fishing site in Zanzibar and the Department of fisheries, where fishermen and officers of fisheries were involved. 3. 2 TARGETED POPULLATION The targeted populations are officials from the Department of Fisheries and the fishermen.As it is not easy to deal with each individual in the department and all the fishermen available in Zanzibar, a research used sampling method that is simple random to get actual respondents and in reducing sampling errors. A sample of 10 to 20 fishermen will be drawn from the populati on. 3. 3 PURPOSE OF THE STUDY AND TYPE OF INVESTIGATION The main purpose of this study Is to obtain an insight into the current contribution of fishing industry towards poverty reduction in Zanzibar. For the above reason, this research will take an exploratory approach.According Sekaran (2002:123) an exploratory study is undertaken when not much is known about the situation at hand, or when no information is available on how similar problems or research issues have been solved in the past. The aim will be to gain familiarity with the issues, and to gain a deeper understanding about the topic and to come out with the suggestive measures which should be taken to adapt to this problem of fishing industry. 3. 4 DATA COLLECTION. For the purpose of this research, and in order to achieve the objectives data will be collected and will use both primary and secondary data.The secondary data will contribute toward the formation of background information, needed by both the researcher in order to build constructively the project and the reader to comprehend more thoroughly the survey outcome. Primary data will be collected in two ways. Firstly, a questionnaire survey will be conducted with researcher visiting the area. Secondly, interviews will be also carried out with I will go to the fishermen and asking them about how there work has contributed towards reduction of poverty. 3. 5 SAMPLING DESIGN Ideally I wanted to study the entire population of fishermen.However, it will be impossible and unfeasible to do this and therefore I must settle for a sample. According to Kothari C. R, sample is a portion of elements taken from a population, which is considered to be representative of the population. In order to collect primary data the questionnaires survey technique will be used. For the purpose of this study I will use both simple random probability sampling and purposive random sampling. Under simple random sampling each of the fisherman found in the area visited will be a ble to provide with information on how he/she contribute to reduction of poverty.Also under purposive random sampling I will be responsible of setting some criteria on whom to interview. 3. 6 QUESTIONNAIRE SURVEY In order to achieve my goal of this study and get relevant information about this problem I will use both closed and open ended questions. Under the closed ended questions I will narrow the field inquiry and will choose among the fixed responses. This will enable me to analyze my data easier since the responses will be easier to compare. Also the open ended questions will enable me to get new ideas and varieties of information about the problem. 3. 7 THE INTERVIEW SURVEYThe technique of personal interviewing is undertaken in order to reach the objectives since it is the most versatile and productive method of communication, enabled spontaneity, and also provided with: â€Å"The skill of guiding the discussion back to the topic outlined when discussions are unfruitful thoug h it has the disadvantages of being very costly time consuming and can introduce bias through desires of the respondent to please the interviewer. 3. 8 DATA ANALYSIS After collecting the data from the field I will use Microsoft excel and Statistical Packages for Social Sciences (SPSS).These methods will enable me to draw a valid conclusion of what I will find in the field in relation to the objectives I have put forward. 3. 9 CONTRIBUTION OF THE STUDY As it is the purposes of this study that it helps to investigate the contribution of fishing industry towards poverty reduction. When I complete this research I will add an important value on the academic part. Also the purpose of this study is to enable me understand on how I can conduct research on different cases. MODEL OF THE STUDY In my study as the qualitative research there is the need of using a model to est the result of the research, here the multiple regression model will be used for the test of my research. The model of my study will be as follows: Y =? 0 + ? 1X1 + ? 2X2 + ? 3X3 + ? 4X4 +  µ Where; Y – stands for Income X1 – stands for education level X2 – stands for technological level X3 – stands for age of the fisherman X4 – stands for financial assistance X5 – stands for family size  µ – stands for Error term as Y stands for dependent variable that is it depends on the changes of its explanatory variables. Independent variables can be explained as follows;Education level- that is if the education level of fisheries is high we expect to have more income and if its low expect low income. Technological level – that is the use of more advanced technology leads to increase in income. Age- as how ages leads to increase in income, that as ages goes up or down leads to increase in income. Financial assistance- that is how the government financially assists this sector as assisted more we expect for more income. Family size – Family size of a respondent was one variable (continuous variable) proposed to influence participation decision.The more number of family members an individual had the more probable to participate in fishing. This is because he will have a labor source. BIBLIOGRAPHY Gerald M. Meier,et al, â€Å" Leading issues in Economic Development† â€Å"seventh edition† Humphrey P. B. et al,. Zanzibar: The challenges of globalization and Poverty reduction Jiddawi N, M. (1997) : Fisheries stock Assessment in the Traditional Fisheries sector. Kothari C. (2004) â€Å"Research Methodology: methods and techniques† New Age international (P) limited, New Delhi. Michael P. T,et al, â€Å"Economic Development† Mkenda, A. 2001 â€Å"Fishery Resources and welfare in Rural Zanzibar†World’s encyclopaedia (Britanica) QUESTIONNARES 1. What is your name?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Sex; male ( ) female( ) AGE: 18 – 25| | 26 – 37| | 37 – 57| | Above 57| | MARITAL STATUS: Single| | Married| | Divorced| | Widowed| | Others| | 2. What is your level of education? | Level of education| Tick (v)| A| Primary level | | B| Secondary level| | C| Advanced level| | D| University level| | E| None| | 3. How many children do u have?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Are they participate with you in fishing. Yes ( ) No ( ) 4.For how long have you been working in fishing?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. 5. How do you see the development of fishing? Put ( v ) where applicable Increasing/developing? ( ) wasting? ( ) Or you’re not sure? ( ) Specify your answer†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6. Are you fishing only here or you are shifting? If shifting, why?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. . Which tools are you using for fishing? i). Advanced tools ( ) ii). Traditional tools ( ) if others specify†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8. Are you the owner of the tools you are using? Yes ( ) / No ( ) 9. Is there any other activities you are doing in spite of fishing? Yes( ) / No ( ) If yes tick (v) where applicable i. Farming| | ii. Hunting| | iii. Livestock keeping| | iv. Others| | If others, specify†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10. Do you have the market for your fishes? Yes( ) / No ( ) Tick (v) where applicable Internationally| |Nationally | | 11. How much money do you get for single fishing? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12. Do you thing this work of fishing is reducing the hardship of life? Yes ( ) / No ( ) How, †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13. Why do you think fishing has been decreasing in these recently years? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. THE UNIVERSITY OF DODOMA PROPOSAL The contribution of fishing industry towards poverty reduction in Zanzibar. BY Mussa, Hanifu Contribution of Fishing Industry Towards Poverty Reduction in Zanzibar THE UNIVERSIRY OF DODOMA COLLEGE OF HUMANITIES AND SOCIAL SCIENCES SCHOOL OF ECONOMICS AND BUSINESS STUDIES DEPERTMENT OF ECONOMICS AND STATISTICS RESEARCH – PROPOSAL. TOPIC: The contribution of fishing industry towards poverty reduction in Zanzibar. SUPERVISOR: CANDIDATE: MR. BONGOLE, A J MUSSA, HANIFU T/UDOM/2010/03536 Table of Contents THE UNIVERSIRY OF DODOMA1 COLLEGE OF HUMANITIES AND SOCIAL SCIENCES1 SCHOOL OF ECONOMICS AND BUSINESS STUDIES1DEPERTMENT OF ECONOMICS AND STATISTICS1 LIST OF ABBREVIATION3 CHAPTER ONE4 OVERVIEW OF THE STUDY4 1. 0 Introduction4 1. 1 Background Information to the problem4 1. 2Statement of the problem. 5 1. 3. Significant of the study5 1. 4 Scope of the study5 1. 5Objective of the research5 1. 5. 1General objectives. 5 1. 5. 2Specific objectives5 1. 6 . Hypothesis of the study6 CHAPTER TWO7 LITERATURE REVIEW. 7 2. 0. INTRODUCTION7 2. 1 Definition of fishing7 2. 1 Background of fishing Industry7 2. 2 Fishing in Zanzibar’s economy7 2. 3 POV ERTY REDUCTION8 . 4 Definition of poverty8 2. 4. 0: Growth and poverty8 CHAPTER THREE9 3. 0: METHODOLOGY9 3. 1 AREA OF THE STUDY10 3. 2 TARGETED POPULLATION10 3. 3 PURPOSE OF THE STUDY AND TYPE OF INVESTIGATION10 3. 4 DATA COLLECTION. 10 3. 5 SAMPLING DESIGN10 3. 6 QUESTIONNAIRE SURVEY11 3. 7 THE INTERVIEW SURVEY11 3. 8 DATA ANALYSIS11 3. 9 CONTRIBUTION OF THE STUDY11 MODEL OF THE STUDY11 BIBLIOGRAPHY12 QUESTIONNARES13 LIST OF ABBREVIATION BOT – Bank of Tanzania DD – Demand FDZ -Fisheries Department of ZanzibarGDP – Gross Domestic Product GOZ – Government of Zanzibar MOFEA – Ministry of Finance and Economic Affairs SMEs – Small and Medium Enterprises TZS – Tanzania Shillings UK – United Kingdom URT – United Republic of Tanzania USD – United States Dollars ZIPA – Zanzibar Investment Promotion Authority ZIP -Zanzibar Investment Policy ZNZ – Zanzibar ZPRP – Zanzibar Poverty Reduction Plan CHAPTER ONE OVERVIEW OF THE STUDY 1. 0 IntroductionThis chapter covers the contextual background of the problem stating clearly how the problem come about/historical development and what is being done so far on literature review , stating clearly the statement of the problem, general and specific research objectives, general and specific research questions. 1. 1 Background Information to the problem Zanzibar’s fishing is almost entirely artisanal and is conducted in the shallow waters along the coast. The entire fishing grounds are about 4,000 square kilometers for Unguja and 2,720 square kilometers for Pemba.Much of this area has coral reefs and a variety of flora and fauna making the region ideal for fishing. Indeed, there is an enormous potential for increased production of marine products, through offshore and deep-sea fishing including processing, for both domestic and export markets(ZIP). The Zanzibar Poverty Reduction Plan (ZPRP 2002) stipulates that growth in the agricultura l sector is crucial due to its pro-found positive impact on poverty reduction. Based on this back drop, once growth in agriculture is stimulated, most poor people in this sector will benefit culminating into poverty reduction.The fishing sub-sector has a relatively lower contribution in export compared to other exports such as cloves, manufactured goods and other exports. Statistics show that from 2000 to 2004 exports of fish amounted to USD 0. 53million accounting for 0. 7%of total exports amounting to USD 67. 5 million. (ZPRP 2002) However, the market potential is yet to be sufficiently exploited because of a fish catches , not withstanding the fact that Zanzibar is surrounded by sea. Generally, fishing activities in Zanzibar are concentrated on onshore.According to the Agricultural Policy(2000),the main reason for shallow sea fishing with low fish yield is lack of capital to purchase larger vessels to engage in deep sea fishing, indicating that fishing is not developed (some of f ishermen do not use fishing vessels but use rudimentary tools for catching fish such as spears sticks, knives, small nets and bare hands). Fish stocks include small pelagic, coral reef fish, lobsters, octopus and large pelagic etc The fishing territorial area is made of about 4,000sq. kms for Unguja or 59. 5% and 2,720sq. kms for Pemba accounting for 40. 5% of total.Statistics for fish catch indicate a fluctuating trend between 1992 and 1997,before attaining a steady increasing path from 1998 towards 2002. However the actual production is still low and does not contribute significantly in Zanzibar fish exports despite high potentiality. Distribution of fish catches by districts reveal that currently urban Unguja district is leading in fish production since 2001, outpacing North district which dominated before. Exports (export earnings) was the highest in 2003 because of the sea products such as sea shells and sea cucumber from the business people. The Zanzibar Poverty Reduction Plan (ZPRP Jan 2002)) 1. 2Statement of the problem. Zanzibar, having two islands namely Unguja and Pemba located in the Indian ocean have varieties of fish. The islands are accessible by sea, having two ports in Unguja and Pemba making it easier to export fish products, these factor facilities are important for developing fishing industry. According to Tanzania Reproductive and Child Health Survey(1999) about 35. 8% of under five children are stunted of which 12. 2% are severely stunted. For Pemba 46. 25% of under five children are stunted, while for ungula it is 27. 5% . The situation calls for a study to establish how the fishing industry can be improved (e. g. by identifying appropriate technology and reliable markets) to get rid of malnutrition, reduce poverty, increase export proceeds, increase tax revenue and increase employment opportunities. 1. 3. Significant of the study The finding of this research will encourage the concerned authorities to perform their duties that is by impr oving the fishing industry in order to reduce poverty and exercise their professions and responsibilities towards controlling the current problem which is poverty.Further more the study will collect information from different sources and use the findings to alert the authorities concerned about the fishing industry and how it will contribute towards reduction poverty. 1. 4 Scope of the study The study will take about 2 weeks in February and will cover Zanzibar as a case study which will be the inclusion of Unguja as it analyses the contribution of fishing industry towards poverty reduction in Zanzibar. 1. 5Objective of the research 1. 5. 1General objectives. To estimate the extent of fishing industry on poverty reduction in the study area 1. 5. Specific objectives The study will seek to achieve the following: To evaluate the potentiality of fishing in Zanzibar economy To identify problems and opportunities in fishing industry and its marketing in the study area To assess the applica bility of fishing industry towards the reduction of poverty in the study area 1. 6 . Hypothesis of the study The following will be tested in order to assess the validity of both overall and specific objectives. Does the fishing industry leads to the poverty reduction? That is: Null hypothesis (HO): Fisheries improvement is the determinant for poverty reduction.Alternative Hypothesis (Hi): fisheries improvement is not a determinant of poverty reduction. CHAPTER TWO LITERATURE REVIEW. 2. 0. INTRODUCTION This study comprises literature review about the contribution of fishing industry towards the poverty reduction in Zanzibar. These reviews include books, journals, articles and details from the Ministry of Agriculture and Fisheries Department. This chapter is divided into two parts. The first part deals with Fishing Industry and the second part is a review in Poverty Reduction. 2. 1 Definition of fishingFrom the encyclopedia (Britanica) ; – Fishing involves the recovery of foods and other valuable resources from bodies of water. Fishing involves the extraction of all marine products. – Fishery; is harvesting of as a commercial enterprise or the location or season of commercial fishing. 2. 1 Background of fishing Industry (FDZ) Government of Zanzibar’s involvement in fishing activities started many years ago but because of abundant resources, few fishers and primitive gear, fisheries activities were not considered important.Before 1964 revolution, there was a private fishing corporation under management of the Greeks, which was charged with supervision of all fishing activities in Zanzibar. After the 1964 Revolution, the Government of Zanzibar nationalized the corporation as established it as public enterprise charged with the responsibility of monitoring fishing activities and improving working conditions of the fisher folk. In 1974,the Revolutionary Government of Zanzibar formed the Department of Fisheries, under the Ministry of Agriculture, Livestock and Environment.Besides other functions, and key responsibility of the department was directed to supervise and modernize fishery activities. In order to modernize fishing, the department of Fisheries established several centres for coordinating, simplifying and promoting fishing activities. 2. 2 Fishing in Zanzibar’s economy Unguja and Pemba are surrounded by rich marine resources, the people of Zanzibar utilize marine products for subsistence and as a source of income, with fish being among the most important resources and socio-economic activities of the people in Zanzibar economy.Fishing has been conducted in the islands since the dawn of humanity and still continues to be an important coastal activity. Fishing provides employment for men and women and almost all age groups. Fishing activity employs an average of 25% of the population as artisanal fishers and account for an average of 4. 5% of GDP. According to the recent data provided by Ministry of Agricultur e, Livestock and Environment( Department of Fisheries and Marine Resources – Zanzibar),there has been gradual decrease in the GDP accounted from fishing sector.In 2004 GDP for fish had increased to 5% and it kept on increasing in 2005 reaching 5. 9% but from there it went on decreasing in the year 2006 reaching 4. 9%. So in my study i will try to look for the reason of decreasing in this fishing industry and try to look at which ways the government suppose to do to improve it and help the people of Zanzibar that is reduce the poverty. 2. 3 POVERTY REDUCTION Before getting to the concept of Poverty Reduction, the meaning of Poverty should be understood. 2. 4 Definition of poverty According to the World’s encyclopaedia 9:652:3aPoverty is the condition that is said to exist when people lack the means to satisfy their basic needs which are necessary for survival. According to Gerald M. Meir and James E. Rauch in the book Leading Issues in Economic Development (seventh edit ion) ; Poverty is concerned with the absolute standard of living of a part of the society. According to Michael Todaro and Stephen Smith in their book Economic Development ; Poverty is the number of people who are unable to command sufficient resources to satisfy basic needs. it’s a total number living below a specified minimum level of real income – an international poverty line.Most current projections call for the number of persons living in poverty to rise over the current decade but this outcome depends on two factors; – the rate of economic growth – the level of resources devoted to poverty programs and the quality of those programs. 2. 4. 0: Growth and poverty Rapid growth is bad for the poor because they would be bypassed by the structural changes of modern growth. I will try to look how the public expenditures required for the reduction of poverty would entail the reduction in the rate of growth.The poor tend to spend additional income on improve d nutrition, education for children, improvements in housing conditions and other expenditures that especially at poverty levels represent investments rather than consumption. Reasons why policies focused towards reducing poverty levels need not to lead in slower rate of growth ; i. widespread poverty creates conditions in which the poor have no access to credit, are unable to finance their children’s education and the absence of physical or monetary investment opportunities. ii.The low incomes and the low level of living for the poor which are manifested in poor health, nutrition and education can lower their economic productivity and lead to the slower growing economy. iii. Raising the income levels of the poor will stimulate an overall increase in the demand for locally produced necessity products like food and clothing whereas the rich tend to spend on luxury goods. iv. A reduction of mass poverty can stimulate healthy economic expansion by acting as a powerful material a nd psychological incentive to widespread public participation in the development process. CHAPTER THREE . 0: METHODOLOGY. The methodology that will be applied in my study has been chosen in order to acquire information and deduce conclusions about the contribution of fishing industry towards poverty reduction and the alternative measures which should be taken in order to make sure that they adapt to this problem. 3. 1 AREA OF THE STUDY The study will be conducted at mkokotoni fishing site in Zanzibar and the Department of fisheries, where fishermen and officers of fisheries were involved. 3. 2 TARGETED POPULLATION The targeted populations are officials from the Department of Fisheries and the fishermen.As it is not easy to deal with each individual in the department and all the fishermen available in Zanzibar, a research used sampling method that is simple random to get actual respondents and in reducing sampling errors. A sample of 10 to 20 fishermen will be drawn from the populati on. 3. 3 PURPOSE OF THE STUDY AND TYPE OF INVESTIGATION The main purpose of this study Is to obtain an insight into the current contribution of fishing industry towards poverty reduction in Zanzibar. For the above reason, this research will take an exploratory approach.According Sekaran (2002:123) an exploratory study is undertaken when not much is known about the situation at hand, or when no information is available on how similar problems or research issues have been solved in the past. The aim will be to gain familiarity with the issues, and to gain a deeper understanding about the topic and to come out with the suggestive measures which should be taken to adapt to this problem of fishing industry. 3. 4 DATA COLLECTION. For the purpose of this research, and in order to achieve the objectives data will be collected and will use both primary and secondary data.The secondary data will contribute toward the formation of background information, needed by both the researcher in order to build constructively the project and the reader to comprehend more thoroughly the survey outcome. Primary data will be collected in two ways. Firstly, a questionnaire survey will be conducted with researcher visiting the area. Secondly, interviews will be also carried out with I will go to the fishermen and asking them about how there work has contributed towards reduction of poverty. 3. 5 SAMPLING DESIGN Ideally I wanted to study the entire population of fishermen.However, it will be impossible and unfeasible to do this and therefore I must settle for a sample. According to Kothari C. R, sample is a portion of elements taken from a population, which is considered to be representative of the population. In order to collect primary data the questionnaires survey technique will be used. For the purpose of this study I will use both simple random probability sampling and purposive random sampling. Under simple random sampling each of the fisherman found in the area visited will be a ble to provide with information on how he/she contribute to reduction of poverty.Also under purposive random sampling I will be responsible of setting some criteria on whom to interview. 3. 6 QUESTIONNAIRE SURVEY In order to achieve my goal of this study and get relevant information about this problem I will use both closed and open ended questions. Under the closed ended questions I will narrow the field inquiry and will choose among the fixed responses. This will enable me to analyze my data easier since the responses will be easier to compare. Also the open ended questions will enable me to get new ideas and varieties of information about the problem. 3. 7 THE INTERVIEW SURVEYThe technique of personal interviewing is undertaken in order to reach the objectives since it is the most versatile and productive method of communication, enabled spontaneity, and also provided with: â€Å"The skill of guiding the discussion back to the topic outlined when discussions are unfruitful thoug h it has the disadvantages of being very costly time consuming and can introduce bias through desires of the respondent to please the interviewer. 3. 8 DATA ANALYSIS After collecting the data from the field I will use Microsoft excel and Statistical Packages for Social Sciences (SPSS).These methods will enable me to draw a valid conclusion of what I will find in the field in relation to the objectives I have put forward. 3. 9 CONTRIBUTION OF THE STUDY As it is the purposes of this study that it helps to investigate the contribution of fishing industry towards poverty reduction. When I complete this research I will add an important value on the academic part. Also the purpose of this study is to enable me understand on how I can conduct research on different cases. MODEL OF THE STUDY In my study as the qualitative research there is the need of using a model to est the result of the research, here the multiple regression model will be used for the test of my research. The model of my study will be as follows: Y =? 0 + ? 1X1 + ? 2X2 + ? 3X3 + ? 4X4 +  µ Where; Y – stands for Income X1 – stands for education level X2 – stands for technological level X3 – stands for age of the fisherman X4 – stands for financial assistance X5 – stands for family size  µ – stands for Error term as Y stands for dependent variable that is it depends on the changes of its explanatory variables. Independent variables can be explained as follows;Education level- that is if the education level of fisheries is high we expect to have more income and if its low expect low income. Technological level – that is the use of more advanced technology leads to increase in income. Age- as how ages leads to increase in income, that as ages goes up or down leads to increase in income. Financial assistance- that is how the government financially assists this sector as assisted more we expect for more income. Family size – Family size of a respondent was one variable (continuous variable) proposed to influence participation decision.The more number of family members an individual had the more probable to participate in fishing. This is because he will have a labor source. BIBLIOGRAPHY Gerald M. Meier,et al, â€Å" Leading issues in Economic Development† â€Å"seventh edition† Humphrey P. B. et al,. Zanzibar: The challenges of globalization and Poverty reduction Jiddawi N, M. (1997) : Fisheries stock Assessment in the Traditional Fisheries sector. Kothari C. (2004) â€Å"Research Methodology: methods and techniques† New Age international (P) limited, New Delhi. Michael P. T,et al, â€Å"Economic Development† Mkenda, A. 2001 â€Å"Fishery Resources and welfare in Rural Zanzibar†World’s encyclopaedia (Britanica) QUESTIONNARES 1. What is your name?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Sex; male ( ) female( ) AGE: 18 – 25| | 26 – 37| | 37 – 57| | Above 57| | MARITAL STATUS: Single| | Married| | Divorced| | Widowed| | Others| | 2. What is your level of education? | Level of education| Tick (v)| A| Primary level | | B| Secondary level| | C| Advanced level| | D| University level| | E| None| | 3. How many children do u have?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Are they participate with you in fishing. Yes ( ) No ( ) 4.For how long have you been working in fishing?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. 5. How do you see the development of fishing? Put ( v ) where applicable Increasing/developing? ( ) wasting? ( ) Or you’re not sure? ( ) Specify your answer†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6. Are you fishing only here or you are shifting? If shifting, why?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. . Which tools are you using for fishing? i). Advanced tools ( ) ii). Traditional tools ( ) if others specify†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8. Are you the owner of the tools you are using? Yes ( ) / No ( ) 9. Is there any other activities you are doing in spite of fishing? Yes( ) / No ( ) If yes tick (v) where applicable i. Farming| | ii. Hunting| | iii. Livestock keeping| | iv. Others| | If others, specify†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10. Do you have the market for your fishes? Yes( ) / No ( ) Tick (v) where applicable Internationally| |Nationally | | 11. How much money do you get for single fishing? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12. Do you thing this work of fishing is reducing the hardship of life? Yes ( ) / No ( ) How, †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13. Why do you think fishing has been decreasing in these recently years? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. THE UNIVERSITY OF DODOMA PROPOSAL The contribution of fishing industry towards poverty reduction in Zanzibar. BY Mussa, Hanifu

Whether The Discipline Of Accounting Can Be Classified As A Science Accounting Essay

The issue at manus is to find whether the subject of accounting can be classified as a scientific discipline, or non. In order for me to organize an sentiment on the above stated affair, I would hold to take a closer expression at, foremost the term accounting, and secondly the construct of scientific discipline. Many good weather-beaten research workers have looked at constructs associating to my subject in recent history. I will take into consideration their ideas and findings in an effort to come to my ain decision. Science: The word scientific discipline comes from the Latin word â€Å" scientia, † intending cognition. How do we specify scientific discipline? Harmonizing to Webster ‘s New Collegiate Dictionary, the definition of scientific discipline is â€Å" cognition attained through survey or pattern. † What does that truly intend? Science refers to a system of geting cognition. This system uses observation and experimentation to depict and explicate natural phenomena. The term scientific discipline besides refers to the organized organic structure of cognition people have gained utilizing that system. Less officially, the word scientific discipline frequently describes any systematic field of survey or the cognition gained from it. What is the intent of scientific discipline? Possibly the most general description is that the intent of scientific discipline is to bring forth utile theoretical accounts of world. Science as defined above is sometimes called pure scientific discipline to distinguish it from applied scientific discipline, which is the application of research to human demands. William claude dukenfields of scientific discipline are normally classified along two major lines: A A A – Natural scientific disciplines: The survey of the natural universe, and A A A – Social scientific disciplines: The systematic survey of human behavior and society. In modern times, the term scientific discipline is frequently treated as synonymous with ‘natural and physical scientific discipline ‘ , and hence restricted to those subdivisions of survey that relate to the phenomena of the material existence and their Torahs. As clip progressed it became more common to mention to natural doctrine as â€Å" natural scientific discipline † . Over the class of the nineteenth century, the word â€Å" scientific discipline † became progressively associated with the disciplined survey of the natural universe including natural philosophies, chemical science, geology and biological science. This sometimes left the survey of human idea and society in a proficient quandary, which was resolved by sorting these countries of academic survey as societal scientific discipline. Similarly, several other major countries of disciplined survey and cognition exist today under the general term of â€Å" scientific discipline † , such as formal scientific discipline and applied scientific discipline. Accounting: Harmonizing to the book Investerwords, Accounting can be defined as the systematic recording, coverage, and analysis of fiscal minutess of a concern. The individual in charge of accounting is known as an comptroller, and this person is typically required to follow a set of regulations and ordinances, such as the International Financial Reporting Standards ( IFRS ) . Accounting allows a company to analyse the fiscal public presentation of the concern, and expression at statistics such as net net income. Accounting is defined by the American Institute of Certified Public Accountants ( AICPA ) as â€Å" the art of recording, classifying, and sum uping in a important mode and in footings of money, minutess and events which are, in portion at least, of fiscal character, and construing the consequences thereof. † Accounting is 1000s of old ages old ; the earliest accounting records day of the month back more than 7,000 old ages. Early histories served chiefly to help the memory of the concern individual and the audience for the history was the owner or record keeper entirely. Cruder signifiers of accounting were unequal for the jobs created by a concern entity affecting multiple investors, so double-entry clerking foremost emerged in northern Italy in the fourteenth century, where trading ventures began to necessitate more capital than a individual person was able to put. The development of joint stock companies created wider audiences for histories, as investors without firsthand cognition of their operations relied on histories to supply the needed information. This development resulted in a split of accounting systems for internal ( i.e. direction accounting ) and external ( i.e. fiscal accounting ) purposes, and later besides in accounting and revelation ordinances and a turning demand fo r independent attestation of external histories by hearers. Today, accounting is called â€Å" the linguistic communication of concern † because it is the vehicle for describing fiscal information about a concern entity to many different groups of people. Accounting that concentrates on describing to people inside the concern entity is called direction accounting and is used to supply information to employees, directors, owner-managers and hearers. Management accounting is concerned chiefly with supplying a footing for doing direction or operating determinations. Accounting that provides information to people outside the concern entity is called fiscal accounting and provides information to show and possible stockholders, creditors such as Bankss or sellers, fiscal analysts, economic experts, and authorities bureaus. Because these users have different demands, the presentation of fiscal histories is really structured and capable to many more regulations than direction accounting. The organic structure of regulations that governs fiscal accounting is called International Financial Reporting Standards ( IFRS ) . What does other research workers say on the subject: Over many old ages philosophers have been debating on what the standard of scientific discipline should be in hopes that this standards could be used for at least two intents: foremost, to separate scientific discipline from common sense cognition ( without claiming that the two are radically disjunctive. In some instances they may differ merely in grade, non in sort ) ; 2nd, to separate that which is scientific from that which is non-scientific or unscientific. Many philosophers have proposed different standards. One of these philosophers is Herbert Feigl. In the book Introductory Readings in the Doctrine of Science by Klemke, Hollinger and Klein ( 1980 ) , Feigl ‘s 5 standards, which can be found throughout his Hagiographas and talks, is discussed and listed as follows: Intersubjective testability. This refers to the possibility of being, in rule, capable of documentation or â€Å" check-up † by anyone ; hence, private intuition must be excluded. Dependability. This refers to that which, when put to a trial, turns out to be true, or at least to be that which we can most moderately believe to be true. Testing is non plenty. Feigl wants theories which, when tested, are found to be true. Definiteness and preciseness. This refers to the remotion of vagueness and ambiguity. We seek, for illustration, constructs which are definite and bounded. We are frequently helped here by measuring. Coherence or systematic character. This refers to the organisational facet of a theory. A set of staccato statements is non every bit fruitful as one which has systematic character. It besides refers to the remotion of, or being free from, contradictoriness. Comprehensiveness or range. This refers to our attempt to achieve a continual addition in the completeness of our cognition and besides to our seeking theories which have the maximal explanatory power. For illustration, to account for things which other theories do non account for. Michael Power has written extensively on the subject of accounting as a scientific discipline. In his book From scientific discipline of histories to fiscal answerability of scientific discipline he writes that for many old ages fiscal accounting discourse had been concerned with the nature of economic measuring, in peculiar income acknowledgment and plus rating. He besides states that as academic accounting established itself, it was possibly inevitable that these inquiries should get an epistemic spirit. In his book, Power besides refers to another philosopher, Paul Miranti. Miranti explores the thought of â€Å" scientific accounting † in the early old ages of the American accounting profession. These early contemplations represent efforts to raise accounting and audit patterns beyond the position of trade cognition and to link them with comparatively established signifiers of scientific thought. Harmonizing to subsequently theoreticians such as Ray Chambers and Robert Ster ling accounting pattern suffered and continues to endure from the permeant subjectiveness of its calculating operations. In their position, accounting pattern could go more scientific merely by refering itself with the nonsubjective economic measuring of the independent phenomena. Ray Chambers had a womb-to-tomb aspiration to change over accounting into a pure scientific discipline. Unfortunately he became so captive with this political orientation that he failed to see accounting as an applied scientific discipline, one that will ne'er be able to mensurate up to criterions known from the pure and strict scientific disciplines. Last, I want to mention to the early Hagiographas of Earl Saliers. In 1941 he wrote in The Accounting Review that accounting and economic sciences are by and large considered to be societal scientific disciplines. This indicates to me that the specific subject has been debated and written about for many decennaries. Decision: After taking into history everything that I have read, I have to organize the sentiment that accounting decidedly classifies as a signifier of scientific discipline. When using the subject of accounting to Feigl ‘s standards it decidedly meets the demands. The accounting pattern is really dependable. It is a systematic application of certain rules which can be applied numerously with precisely the same result, doing the subject really definite and precise. Accounting besides requires a strong footing of cognition which is another indicant that it is in line with the definition of a scientific discipline. In my sentiment nevertheless, it is really difficult to sort all facets of accounting as a pure scientific discipline. My concluding decision therefore has to be that accounting can be regarded as an applied scientific discipline, where cognition and systems are combined and applied in order to organize a subject which forms the nucleus of all concern traffics and record maintaining minutess.

Nokia: Values That Make a Company Global

STraTeGiC Hr MaNaGeMeNT case study with teaching notes Nokia: Values That Make a Company Global By Geraldine Willigan, MBA Project team Author: SHRM project contributor: External contributor: Copy editing: Design: Geraldine Willigan, MBA Nancy A. Woolever, SPHR Ram Charan, Ph. D. Katya Scanlan, copy editor Terry Biddle, graphic designer  © 2009 Society for Human Resource Management. Geraldine Willigan, MBA. This case was prepared by Geraldine Willigan, MBA, former editor at Harvard Business Review, under supervision of Ram Charan, Ph. D. , former faculty member at Harvard Business School, winner of best teacher award at Northwestern University’s Kellogg School of Management, and a regular teacher in executive programs across the globe. The authors gratefully acknowledge the help of Juha Akras, Ian Gee, Antti Miettinen, Arja Souminen, Olli-Pekka Kallasvuo, Hallstein Moerk, Tero Ojanpera and Shiv Shivakumar. Note to Hr faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class. For more information, please contact: SHRM Academic Initiatives 1800 Duke Street, Alexandria, VA 22314, USA Phone: (800) 283-7476 Fax: (703) 535-6432 Web: www. shrm. org/education/hreducation 09-0353 Nokia: Values That Make a Company Global Introduction In the summer of 2006, the global competitive landscape in which Nokia was operating was changing at an astoundingly fast pace. Market growth was shifting to emerging countries, mobile devices were being commoditized, handset prices were declining, networks were combining (Nokia had just merged its own networks infrastructure business with that of Siemens, forming Nokia Siemens Networks, or NSN), Microsoft and Apple were making moves toward mobile devices, new technologies were being developed, and new strategic opportunities were arising as mobile phones were becoming the gateway to the Internet. To win in such a fast-paced and intensely competitive environment, the company had to move with speed and do a superb job of satisfying consumers. Decision-making would have to occur at the lowest possible level to reflect the peculiarities of the local markets while leveraging the power of Nokia’s diverse people, its brand, its financial resources, and its technology and design expertise. Collaboration between locals and headquarters and among multiple cultures and partners was paramount. Nokia conducted extensive interviews with people inside and outside the company, including partners and suppliers, to understand how Nokia was perceived and how it might have to change. That research informed a number of actions and renewed the focus on Nokia’s culture and, in particular, its values. From Paper Mill to Conglomerate to Global Brand Nokia, headquartered in Espoo, near Helsinki, Finland, is the world’s largest mobile handset manufacturer. It holds some 40 percent of the global device market as of the second quarter of 2008. It operates in 150 countries and had more than 117,000 employees, including NSN, as of late June 2008. It is the top-rated brand globally. Annual revenues for 2007 were $74. 6 billion (51. 1 billion euros). The company began in the late 1800s as a paper mill, then evolved into a diversified industrial company and was an early entrant in the mobile era in the 1980s. In the 1990s, CEO Jorma Ollila restructured the conglomerate to focus on mobile phones and telecommunications, and Nokia became the technology and market leader, starting first in Europe, then expanding to the United States and dozens of other 2009 Society for Human resource Management. Geraldine Willigan, MBa 1 developed and emerging economies, including China and India. In the early 2000s, Nokia was briefly challenged by Motorola and Samsung but was able to maintain and soon to increase the lead. In 2006, Olli-Pekka Kallasvuo (OPK, as he is known at Nokia) became CEO. Nokia’s strategy at that time was changed to c over both the mobile device market as well as services and software. In 2007, Nokia announced that it would become more like an Internet company. Transforming the Culture for the New Challenges As Nokia’s leaders pondered what would hold people together and enhance collaboration and speed across their large global company, they arrived at an answer—culture, of which values had long been a foundation. Values align people’s hearts and emotional energy and define how Nokia employees (â€Å"Nokians†) do business with each other and the rest of the world. Because Nokia’s existing values had been unchanged for more than a decade and research showed there was some ambivalence about them internally, the executive board, comprised of the CEO and about a dozen senior leaders, decided it was time to re-examine the values. OPK selected a team of people to create a process for doing so. The challenge to the team was to get all the people of Nokia intellectually engaged. In keeping with Nokia’s culture, the values would have to be the result of â€Å"the many† communicating with â€Å"the many. † Assigning this task was not trivial. It required that senior management be committed to live with the outcome. The values that emerged from the bottom up would have to be taken seriously and stick—or the organization would be seriously harmed. As the team got to work and explored the options, they determined that the best approach would be to combine high tech and high touch. The high-tech part of the values-creation process would be through the â€Å"Nokia Jam†Ã¢â‚¬â€using IBM’s Jamming technology that would allow all Nokians to engage in an online dialogue. The hightouch part would come through the use of the World Cafe methodology. The World Cafe methodology had sprung up in the mid 1990s to accommodate a large group of people from diverse disciplines and far-flung locations around the world who wanted to discuss issues of common interest. 2 That group was known as the Intellectual Capital Partners. To create an informal conversation among so many people, participants were divided into small groups seated around tables to discuss a given question. The groups would then repeatedly disperse and individuals would rotate to other tables, so ideas were disseminated, cross-pollinated and combined. As the conversations continued, facilitators compiled the ideas that emerged. The World Cafe methodology had been used in some small pockets within Nokia but had never been tried on a companywide scale. The concept was right, but it was impractical for all 50,000-plus Nokians to directly engage in a dialogue. So the idea emerged to have a subset of people from across Nokia get together to discuss Nokia values with a totally clean slate, as if they were recreating Nokia on the planet Mars. 2  © 2009 Society for Human resource Management. Geraldine Willigan, MBa A trip to Mars became the metaphor for assembling a cross-section of Nokians to participate in the World Cafe format and create the new values. Nokia’s Trip to Mars Nokia produced 5,000 elegant, visually exciting invitations that looked like boarding passes and airline tickets. These were sent in bundles through snail mail to people at various organizational levels and functional areas, including HR, in each of the business units. The instruction to the recipients was to find a way to randomly distribute their bundle to people in their offices and factories whom they would trust to have a discussion about Nokia’s values and culture. The recipients could also keep a ticket for themselves. Each ticket was in a â€Å"wallet† that described what Nokia was doing. It stated the current values and gave instructions for how to proceed, first by going to the Nokia Way web site to learn more and to register for a cafe in their local area. Participants also got two luggage tags, which they were supposed to discuss with their colleagues beforehand: a green one, which represented the values or ideas Nokia should be sure to take with it as the company moved forward, and a gray one, for things that could be left behind. Nokia held 16 cafes in 60 days around the world. More than 100 employees representing a cross-section of Nokia attended each one. The day of the cafe, small groups discussed a predetermined set of questions. One person served as host and stayed at the table while everyone else rotated to other tables, eventually returning to their original spots. People had taken the preparation very seriously and interviewed their teams ahead of time; some brought stacks of paper with various notes and ideas. As the discussions took place, ideas began to emerge and converge. Facilitators captured them graphically and in written scripts. The outputs from each cafe were then uploaded to the Nokia Way web site, and everyone at Nokia had access to it and was invited to comment. Several thousand more employees were able to participate in the dialogue through the means of the web site, giving their opinions and making suggestions and sometimes asking questions they hoped the next cafe would address. The sessions were also videotaped and edited into short video blogs that were so funny and engaging that they logged approximately 30,000 visits. The video blogs, too, elicited comments from fellow Nokians. The mix of people attending the cafes was just what Nokia’s executive team had hoped for: an assortment of people from offices and factories and from every functional area and organizational level. The cafe process allowed those diverse viewpoints to be heard. Engineers said Nokia needed greater tolerance for risk, for instance, while marketing people wanted more stability. In the process, it broke down biases and misconceptions and began to build social bonds. â€Å"Latin Americans were not the only people with emotions! one participant commented. Another said: â€Å"At first it felt like I couldn’t even find a common language with my Mexican  © 2009 Society for Human resource Management. Geraldine Willigan, MBa 3 marketing colleagues in Nokia. It was exciting when we found a common language and vision, and everybody was on board. † As the cafes took place, four values began to emerge. These were to be presented to the top 30 leaders at the final global cafe to be held in Helsinki. But instead of writing them on a PowerPoint slide, the values were presented in a way that was experiential. Representatives from each of the Nokia Way cafes were chosen to attend, and on day one of the Helsinki cafe, they got together and brainstormed how to make the values come alive. They recreated some of the skits, songs and visual aids their local cafes had generated to express the thoughts and feelings that underlay the values. The representatives from the Finnish cafes built a bird’s nest and a sauna in the hotel meeting room to represent Nokia’s passion for innovation (the bird’s nest was for the hatching of ideas, the sauna to represent the fire of passion). The next day, the group made their presentation to the senior leaders, and after some discussion, the four values that had came out of the cafe process were affirmed. OPK, who, like many Finnish people, was ordinarily quite reserved, was visibly moved by the intensity and sincerity of the feelings expressed. He felt as though he could hear the voices of Nokians around the world, and he, too, wholeheartedly supported the values. He asked that a representative present them to a group of 150 top leaders that was meeting three or four weeks later as part of the annual Strategy Sharing process. The group selected Ganeas Dorairaju, a native Malaysian who had been working in Finland for the past decade, to represent them. He stood in front of the top leaders and explained the values and the process by which they were created. At the end of it, the audience gave him a standing ovation. One leader wondered if the values could be turned into a catchy tune. Soon after, an employee teamed up with her husband and did just that! Nokia’s New Values3 Nokia’s new values and the explanation of them are as follows: n achieving together. Achieving together is more than collaboration and partnership. As well as trust, it involves sharing, the right mind-set and working in formal and informal networks. engaging You. For us, ‘engaging you’ incorporates the customer satisfaction value and deals with engaging all our stakeholders, including employees, in what Nokia stands for in the world. Passion for Innovation. Passion for innovation is based on a desire we have to live our dreams, to find our courage and to make the leap into the future through innovation in technology, ways of working and through understanding the world around us. Very Human. Being very human encompasses what we offer customers, how we do business, how we work together, and the impact of our actions and behavior on n n n 4  © 2009 Society for Human resource Management. Geraldine Willigan, MBa people and the environment. It is about being very human in the world—making things simple, respecting and caring. In short, our desire is to be a very human company. The world cafe process generated values that are different and more open-ended than most companies’. As leaders at Nokia note, the values require discussion. People might not know right away what â€Å"very human† means, but once people start to discuss it within the context of Nokia, it becomes very clear. People do, in fact, have those discussions. They use them to say, â€Å"Hold on a minute, is this engaging you? Are we meeting that value in what we’re doing? † ‘Very Human’ is closely associated with technology; it reflects the fact that Nokia has to develop devices that are easy to use. And ‘Achieving Together’ is about customers and suppliers as well as fellow Nokia employees. ‘Achieving Together’ also helps remove the fear associated with being an industry pioneer. The values are aspirational but also model what was already working well at Nokia. In India, for instance, where Nokia has built a dominant market position of some 75 million subscribers in a very short time, the values were evident before they had been articulated, which likely influenced the input of the three cafes conducted in that country. One of the key factors that drove business success in India was the distribution system, which Nokia and its business partner, ATL, built from scratch when large consumer electronics retailers declined to carry mobile phones because of their low margins. Working together to find an alternative, Nokia and ATL hit on the idea to mimic the small (sometimes just 5 x 5 feet) kiosks that are found in villages across India from which vendors sell fruits and vegetables. They recruited individuals interested in running their own kiosks, trained them and ensured they would have products in the right quantities and at the right margins for those vendors to make a living. The Nokia team wanted to be sure that whatever arrangement they designed would benefit Nokia, ATL and the individual mobile phone vendors. That way, they would Achieve Together. The Nokia team in India—a mix of native Indians and technology and other experts from such far-flung Nokia locations as Finland, China and Indonesia—collaborated in listening to and observing people in various parts of India to understand their needs. Their approach was collaborative and Very Human. As a member of the leadership team in Nokia India explains, â€Å"One thing that Nokia prides itself on is that it is not arrogant. That comes across in every interaction. People never take for granted that they know everything. Because of conditions in parts of the country, Indians needed a mobile device that was dustproof and didn’t slip out of sweaty hands. They wanted a device that could be an alarm clock, radio and flashlight (or â€Å"torch†) as well as a phone. Nokia’s Passion for Innovation drove the team to find the technology solutions Indians needed. Nokia found that the process of creating values itself had merit. It allowed the many to connect with the many and demonstrated that heterarchy was more important than hierarchy. It captured Nokia employees’ understanding of the challenges they were facing personally and organizationally and their desire to create an organization  © 2009 Society for Human resource Management. Geraldine Willigan, MBa 5 that could meet them. It also reflected the spirit of bonding across cultures, functions and silos. As a member of the executive team says, â€Å"It is proof that a strong global corporate culture is possible. † The next order of business was to track the effectiveness of the values. To that end, the company has created a number of vehicles. Nokia includes values in its annual employee survey, â€Å"Listening to You,† and made them a key part of the change pulse survey it undertook during a recent reorganization. The suggestion arose to have pictures to demonstrate the new values, so the company staged an employee competition for photos that represent the values. Photos were posted online, and employees voted for their favorite. The top prize went to a quality manager in one of Nokia’s Chinese factories, who got to accompany Nokia’s brand people on a photo shoot in Paris. Given the quality of Nokia’s artistic skills, it was a choice prize. More than 22,000 employees took part in the competition, and Nokia has a rich bank of photographs to represent the new values. Nokians now are learning to create 90-second films that tell how values are making a difference in their work. These films can be uploaded to a video hub where fellow employees can view them. As of October 2008, more than 60 films had been uploaded to the internal VideoHub, and they have had over 50,000 viewings. 6  © 2009 Society for Human resource Management. Geraldine Willigan, MBa Teaching Notes Global companies require the alignment of their employees and partners not only on the strategy itself but also on the values needed to make that strategy successful. Values reflect and shape corporate culture. A shift in strategy often requires a shift in values. The Nokia case explores the connection between values, strategy, and the collaboration, innovation, speed and flexibility that are required for Nokia to succeed. Nokia is a very large company, with one of the highest brand recognitions in the world. It has the rare ability to design a new strategy and reshape its culture to deliver the strategy at the same time. The Nokia case describes Nokia’s social process for achieving alignment on values—a component of corporate culture—across geographies, silos and hierarchical levels. The learning objectives of the case are as follows: n note NOTE note Instructor’s Note Distribute only pages one through sixNOTE case study document to of this students. A PDF version of this document is also available online for your convenience. To learn the social process of engaging multicultural, multi-country employees in generating and agreeing on a set of values. To concretely demonstrate one way to build a workforce receptive to crossfunctional, cross-cultural teaming that can therefore make fast, high-quality decisions and increase the organization’s flexibility. To probe and deepen understanding of the relationships between strategy, culture, values and business outcomes. To encourage participants to brainstorm alternative ways to engage employees and accomplish similar results. To challenge participants to think critically about whether Nokia’s approach to creating values can apply to other business issues. n n n n The case is appropriate for graduate students in higher-level HR courses and for HR professionals at the highest levels.  © 2009 Society for Human resource Management. Geraldine Willigan, MBa 7 The classroom instructor might want to pose the following questions for discussion: 1. Why did company management choose values as a foundation for taking the culture to the next level? Nokia needs collaboration because it must routinely leverage its technology platforms, global brand and manufacturing footprint, experience base in multiple countries, and in-depth knowledge of consumers and the marketplace. While individuals must have some degree of freedom to act, they cannot know everything or understand in depth all of the implications of various trade-offs that must be made in the ordinary course of business. As people come together to exchange information and make trade-offs, they must also have a common glue to hold them together. Values can be a uniting factor; they can be the glue. In the process of creating values, discussions touch on other topics, such as strategy, management style, opportunities, competition, priorities, and the inadequacies of organizational structure and reward systems. Values can fill in the gaps or provide what formal mechanisms miss—for instance, they can support open communication outside of formal reporting relationships. 2. What is your view about the four values the cafe approach produced? Note that they are few in number—four instead of 12. They describe the kind of company many people would like to work for. They can be applied in the real world and are relevant to any job function or organizational level. They are in keeping with requirements for Nokia to succeed. They capture the sense of higher purpose and human dignity people long for in their personal and work lives and therefore encourage positive, authentic behavior. 3. How do Nokia’s values compare with those of your company? Graduate students can compare with a company they are familiar with or one the instructor presents. One option is to look at the values of a competitor—for instance, Apple, given that Apple is now going into the cell phone business. Consider whether people â€Å"connect† with the values, or whether the values are too abstract or too generic to be meaningful. How many are there? Are they actually practiced? Do they relate to company strategy? 4. How will Nokia’s values help execute the change in business strategy? The process and content of the values build trust, making people more receptive to information and ideas from elsewhere in the company. Information flows are likely to be nonhierarchical. Nokia should therefore be able to innovate and respond to change better and quicker. Take, for example, the value â€Å"achieving together. † This value is now fully socialized at all levels in the company. It gives a lower-level person the freedom to call a higher-level person for collaboration and expertise where needed. By reinforcing this behavior, the values help break hierarchies, silos and other barriers. 8  © 2009 Society for Human resource Management. Geraldine Willigan, MBa 5. concisely define the behaviors that were stimulated through the cafe approach at Nokia. What information channels got opened? Individuals took time to think about the company and how it does and should operate. They expressed their ideas, knowing their ideas could have wide visibility and make a difference. Before attending the cafes, people sought input from their peers. Participants listened to the views from many other employees. They sought commonality among the viewpoints. They experimented with creative ways to express their ideas. Employees became excited about the company and renewed their emotional commitment to it. Information flowed across boundaries. Because participation in the value creation process required no special knowledge, every participant was on equal footing, including newer employees, whose fresh ideas and energy got released. Thus, information flowed up even from some of the youngest Nokians, who represent the future of Nokia. 6. What’s your evaluation of the social process for engaging thousands of employees across the globe in defining the values? It was an efficient way to engage a broad, diverse set of people. The ready acceptance of the values (the output) indicates that the process was effective. It mirrored the patterns of communication and cooperation in a matrix organization. 7. What does Nokia’s cafe process say about its senior leaders? The senior leaders were secure about their role in the company and heir personal power. Once they committed to the process, they had to be prepared to accept the output. They also had confidence in Nokia employees. They were willing to â€Å"let go. † Senior management of any company should not feel insecure about the outcome of the bottom-up process. Because the process is open, it has built-in sincerity. People want to do the right thing. Also, broad participation is a check against a few radicals who want their way. 8. If Nokia were to use the cafe process again in 2010, what change in values would you anticipate? The outstanding goal of this process is to produce a set of values that are enduring. If the company were to do it again, the values themselves might not be very different, but they might be deepened or tweaked because people will have examples of how they have been used, or not used. The exception is if Nokia were to make a 180-degree change in strategy direction. Then some new values might be needed. If such new values did not emerge through this process, consider whether the strategy shift will succeed. Also consider how the outcome might be different if some regions are far more successful than others going forward, and how working relationships might be affected. Consider, too, the values of younger people who will be entering the workforce around that time.  © 2009 Society for Human resource Management. Geraldine Willigan, MBa 9 The instructor needs to press participants on how concrete the values are, how engaged the people are, what are the pros and cons of having values cascade upward, why this process generates energy, and how management can measure whether the values are indeed being practiced and having the intended results. The instructor can jumpstart discussion by dividing the class into eight small groups and having each group discuss one of Nokia’s four values, addressing the following: If the group participants were the leaders, how would they ensure that the value takes deep roots and builds a superb social fabric while at the same time improving business results? The instructor may choose to broaden the discussion to explore issues around new theories of organization and management, such as Enterprise 2. 0 and the use of Web 2. technologies that promise to overcome the bureaucracy associated with hierarchy and make the organization more agile and productive. 4 What some people refer to as Enterprise 2. 0 or depict as a flat organization includes the direct exchange of information among people at lower organizational levels and bottom-up decisionmaking. Nokia’s value-creation process is representative of this new way of engaging employees and doing business. The following questions c an prompt discussion: n Is there a negative side to mass participation, or connecting the many to the many? Lack of knowledge or commitment can cause people to generate bad ideas that nonetheless gain momentum. Senior management will appear to be heavy-handed if it derails or ignores them. The major risk is when management is not trusted by employees, is erratic or seen as incompetent. Under those conditions, this process will fail. If that failure gets the attention of the board, which in this day and age is likely, the board might well insist on a change in management. Good management should learn from anything that comes in that does not match their expectations. In what situations, or for what issues, does a cafe-type approach work or not work? Any time a new leader is starting to take charge of a unit or company, cafe-type approach is a fantastic tool to energize and align people and hear what’s on their minds. This could be used to generate ideas around any particular topic—for instance, to gather ideas for coping with the global financial crisis. Do you think employees want to weigh in on all issues? In this knowledge worker society, tapping everybody’s brain and energy can create momentum and be a competitive advantage. People want to participate. There may be some managers who don’t want to hear what people have to say. The blockage tends to be from management, not the employees. n n 10  © 2009 Society for Human resource Management. Geraldine Willigan, MBa n How do you know if the masses are generating a better or more authentic solution than a smaller number of experts? The adoption and application will reveal the validity of the solution. Let’s remind everybody that â€Å"experts† are also employees. All experts can learn from the front lines. Experts also can be narrow. An open process will surface those conflicts in point of view. In a fast-moving, highly volatile environment, it is hugely important to draw those conflicts to the surface and get them resolved. Even if the outcome is not better in some absolute sense, it will be better accepted. to what extent does engagement affect business performance? How can you measure it? An employee audit or pulse survey are common tools to measure engagement as well as perception of business performance beyond financial numbers. Have people shown more commitment? In this case, the value of achieving together might be evident in shorter decision cycle times. n  © 2009 Society for Human resource Management. Geraldine Willigan, MBa 11 For Further reading Lawler, E. E. III, & Worley, C. G. (2006). Built to change: How to achieve sustained organizational effectiveness. San Francisco: Jossey-Bass. Shirkey, C. (2008). Here comes everybody: The power of organizing without organizations. New York: Penguin. Charan, R. (2007). Know-how: The 8 skills that separate people who perform from those who don’t. New York: Crown Business. McGregor, D. (2005). The human side of enterprise. New York: McGraw-Hill. Hamel, G. (2007). The future of management. Cambridge, MA: Harvard Business School Press. Goldsmith, M. (2007). What got you here won’t get you there: How successful people become even more successful. New York: Hyperion. 12  © 2009 Society for Human resource Management. Geraldine Willigan, MBa endnotes 1 For more on the history of Nokia, see â€Å"The Story of Nokia† on the Nokia web site, www. nokia. com/a4303001. For more on the World Cafe methodology, see www. theworldcafe. com /reading. htm. Nokia’s earlier values are as follows: 2003 n Customer Satisfaction n Respect n Achievement n Renewal 1992 n Customer Satisfaction n Respect of Individual n Achievement n Continuous Learning 3 4 For more on theories of organization, see, for example, Andrew P. McAfee. (2006, Spring). Enterprise 2. 0: The dawn of emergent collaboration. MIT Sloan Management Review.  © 2009 Society for Human resource Management. Geraldine Willigan, MBa 13 SHrm members can download this case study and many others free of charge at www. shrm. org/education/hreducation/pages/c ases. aspx. If you are not a SHrm member and would like to become one, please visit www. shrm. org/join. 1800 Duke Street Alexandria, VA 22314-3499

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