Concepts of Enterprise Resource Planning (ERP)

Concepts of Enterprise Resource Planning (ERP) CHAPTER I 1.0 Introduction This paper will labour to explicate the intricacies of enterprise resource planning (ERP), a concept that has long fascinated many in both academic and professional work environments. The United Nations (UN) has expressed the need to implement ERP. As part of their examination into this procedure, the UN has implemented ERP at the United Nations Development Program (UNDP) in Pristine, Republic of Kosovo, and other agencies of the UN. As they look into the ramifications of ERP implementation, so does this case study. This study attempts to make predictions of the impact of ERP implementation on the business processes and organisational culture of the United Nations secretariat based on results from the UNDP. 1.1 Introduction to the Problem Since the latter part of the 1990s, firms have rushed to implement enterprise resource planning (ERP) systems, e.g., one study showed that more than sixty percent of Fortune 500 companies had adopted an ERP system (G. Stewart et al., 2000). The United Nations, as one of the largest organisations in the world, has lagged behind in adopting the transformation in the management of its resources. The United Nations has been seriously hampered its ability to deliver results effectively and efficiently due to the lack of an integrated information system for managing its resources (Report of the Secretary-General, 2008). According to Davis and Olsen (1985), ERP is an integrated system that provides information to support operation management and decision making functions in an organisation. Therefore, the goal of implementing an ERP system and business process reengineering (BPR) is to build an integrated global information system that fully supports the needs of the United Nations, enables the effective management of human, financial and physical resources, and is based on streamlined processes and better practices. (Report of the Secretary-General, 2008) 1.2 Background of the Study 1.2.1 Existing System Currently the United Nations uses an in-house developed system—commonly referred to as Integrated Management Information System (IMIS)—for the management of human, financial and physical resources. The development of IMIS was a milestone in the use of information technology as a discipline that can beneficially affect many if not all areas of administration and management in any given organisation. IMIS was developed as a functionally integrated system, which combines all the departments to support key processes such as human resources management, payroll, finance and accounting, requisitioning and funds control, budget execution and travel management. IMIS was introduced in conjunction with desktop, networked computing and office automation tools such as electronic mail in all offices where IMIS was being used. If an organisation is not yet sure of the need for client-server networks, the state of the art in enterprise-wide computing, it has only to consider the Integrated Management Information System (IMIS) of the United Nations, (Rowe Davis, 1996: 122). The launching of IMIS was subsequently affected and conditioned by major developments in the technological market, and an accelerated shift of focus in the United Nations to field activities. In short, IMIS was designed and developed at a time when the context began to change rapidly and profoundly. Yet, only a few years after the implementation of IMIS, it has become evident that the system cannot take full advantage of the advancement in technology; e.g., even though IMIS is functionally integrated, it was deployed and managed locally at each geographical location, which makes reporting and global management very difficult. The implementation in the United Nations peacekeeping operation was partial, as it is a separate department in t he UN, and was not able to support the supply chain and logistical management. (Report of the Secretary-General, 2008) The IMIS was not an alternative communication technology to paper and telephones, but it involved the synchronization of multiple data sources and the linking of them to several mainframes, (Rowe Davis, 1996: 122). An investment in tactical systems, which includes a stand-alone system and a modular integration into IMIS through interfaces, a bridging system between two different systems to allow data sharing, was able to address the functional gaps of IMIS. However, the organisation today faces challenges that demand profound transformation beyond the capabilities of IMIS and its ancillary legacy systems currently being used. (Report of the Secretary-General, 2008) 1.2.2 The need for change The United Nations struggled to get everybody in their building to connect electronically. It soon realised that it was time to connect the world with a client-server network, (Rowe Davis, 1996: 122). The need for the United Nations to adopt the International Public Sector Accounting Standards (IPSAS) lead to the requirement of significant change in the accounting processes and systems in order to achieve compliance with the international public sector accounting standard. The requisites changes, indeed, were so fundamental that it is fair to say that the life of IMIS has come to an end after fourteen years since it was first implemented; moreover, the benefits that the staff and managers expect from the information system in day-to-day operations and decision-making no longer match the cost of maintenance and ongoing support. This is because IMIS is no longer able to cope with the fast technological development, and the cost of maintenance and ongoing support has become very expens ive. (Report of the Secretary-General, 2008) The success of your organisations quality initiative depends upon your ability to communicate the need for change throughout the organization, (Arcaro and Arcarco, 1997: 146). The United Nations as an organisation needs to improve the quality and cost-effectiveness of the services it provides. They report that the existing systems are not up to the standard, not integrated, duplicative, and are inefficient. (Report of the Secretary-General, 2008) According to the UN, the effective management, planning and decision-making have been hampered by the lack of integration and complete data on resources. (ibid) As the organisation continues to grow in complexity in its activities, they are dissatisfied with the lack of integration and data sharing between different departments as it has become a bigger problem, and the need for a new ICT global enterprise system for streamlining and simplifying processes has become more crucial as the nature of the organisation is changing itself. (ibid) 1.2.3 Goals and objectives of implementing an Enterprise Resource Planning System The United Nations reports that the implementation of an ERP system will present the opportunity to fully combine resources and functions across the organisation by replacing the existing IMIS system. (ibid) Minahan (1998) reports ERP to be a complex software system that ties together and automates the basic processes of business activities such as finance and budget management, human resources management, supply chain management, central support services, and other corporate core functions. Most importantly, the main value of an ERP system is the opportunity to streamline and improve the operations of an entire organisation through process reengineering, sharing of common data, and implementation of best practices and standards, and perform as the inter-organisation information backbone for communication and collaboration (OLeary, 2004). According to reports from the United Nations (Report of the Secretary-General, 2008), the main objectives of the ERP project can be summarised as follows: To have a global operating system that precisely captures core resource data from each department and agency at the UN while linking them together to provide better decision-making. This will minimize the time required to perform administrative processes and enable easy access to necessary reports for each department, thus increasing the efficiency of the organisation and directing the focus to high priority situations. The main functionalities sought from the new ERP system are expected to encompass functions such as programme planning, budgeting, contributions and performance; human resources management and administration; payroll, including management of benefits and contribution to pension, medical and insurance schemes; supply chain management, including procurement; assets and facilities management; general accounting, travel and other administrative flows; reporting to management and stakeholders, and more. (ibid) Specific United Nations peacekeeping operations functions such as logistics, transportation, fuel and rations systems need to be supported by the new ERP system as these functions are not held in common with other organisations of the United Nations operations. 1.3 Purpose and Significance of the Study The research done in this study will attempt to answer the following question: What will be the impact of ERP implementation on the business transformation and business culture of the United Nations? Specifically, the study will attempt to establish the relationship between the business process transformation and organisational culture change offered as the result of ERP. These questions and findings are expected to provide an increased ability in evaluating the performance and standardisation of the business processes within the United Nations, as well as an increased awareness of its effect on the business culture and productivity over time of the UN. In addition, answers to these questions will subsequently enable other researchers to gain more insight into ERP implementation and business process reengineering. It will also enable the management of the United Nations to see how ERP can be a better means of technological reform, thus providing the opportunity to re-evaluate the existing business processes even further. 1.4 Research Questions The question that constitutes the primary point of pivot for the paper is: What will be the probable future impact of ERP on the business process transformation and business culture of the United Nations? The three subsidiary questions of the present work are: > How will ERP implementation make the organisation better off in the foreseeable future? > What will be the effect on the reformed business culture in terms of productivity? > How does the organisation perceive the benefit of ERP on the standardisation of business processes? 1.5 Structural Approach The rest of the thesis has been structured as follows. Chapter 2 provides a review of relevant literature, including ERP, business process reengineering, and their impact on organisational culture. Chapter 3 discusses the methodologies used for the empirical analysis and describes the data and the various proxies employed for analysing ERP implementation in the United Nations. Chapter 4 provides empirical findings of the relationship between ERP implementation and its effects on business processes and organisational culture. Chapter 5 analyses the research findings. Chapter 6 concludes the research by pointing out the key impacts of ERP on the UN. Chapter 7 makes various recommendations for policy direction and potentially fruitful areas of ERP systems for further research. Chapter 8 reflects on the study as a whole. CHAPTER II 2.0 LITERATURE REVIEW The following Literature Review will focus on four main areas of evaluation regarding enterprise resource planning (ERP) on the business process transformation (BPR) in organisations, and more specifically, the United Nations. These are: 1. ERP: definition, evolution, implications 2. BPR: definition, evolution, implications 3. ERP and organisational culture 4. BPR and organisational change This review will analyse the abovementioned systems and related processes insofar as the available data in the literature will allow for a comparison of ERP and BPR and their effects on the United Nations and other large organisations. 2.1 Enterprise Resource Planning (ERP): Definition, Evolution, and Implications Enterprise resource planning (ERP) systems are commonly described as commercial software packages that allow the assimilation of data and processes throughout an organisation (Markus Tanis, 2000, cited in Kim et al., 2005). ERP enables the flow of information among all business areas such as finance, human resources, manufacturing, sales and marketing, (Tan and Theodorou, 2009: 52). Basically, it allows data from all departments to exist in one computer system (Pang, 2001), making the managerial dream of unification of all information systems into one computer system come true (Adam ODoherty, 2003, cited in Revia, 2007). This unification should offer many benefits to the UN and other large organisations. Large organisations may have a more difficult time relaying information from one sector to another as they have many different departments and even multiple locations. The combination of all department in one system, presents benefits of relaying data in a timely manner. Rather tha n sending files through inter-office mail or needing to track down one particular staff member, each employee will have access to the information required for their job by simply logging into the system. The researcher will attempt to discover whether this unification does indeed allow for more time-efficiency as well as making simple operations tasks easier to accomplish in the UN. The start of ERP systems came about in the 1960-1970s with the invention of Inventory Control (IC) and Materials Requirement Planning (MPR) systems, which managed inventory in manufacturing. In the 1980s, Manufacturing Resources Planning (MRP II) systems came into use to manage both inventory and production requirements together. In 1973, the first ERP system was created with the goal of supporting all business needs. Since then, ERP systems have become much more popular. In fact, by the year 2000, enterprise resource planning systems were estimated to have serviced $23 billion USD in profits for the various organisations that have been implementing them (Pang, 2001). ERP applications are the largest, fastest growing and most influential in the industry (Corbett Finney, 2007). This is probably why the UN has shown such interest in ERP. The increase in ERP implementation does not seem surprising as ERP allows corporations to update to a new integrated system cutting out the previous legacy systems known for their difficulties in maintenance, large size, and old age, as they are segregated systems (Martin, 1998; cited in Boudreau, 1999). This appears to be helpful for the UN as they reported difficulty with their current legacy system (Report of the Secretary-General, 2008). It is likely that employees of the UN will be satisfied with the replacement of the legacy system due to the reported problems it has. However, there is a chance that employees may be intimidated by this change as they will have to learn an entirely new system. Advantages of ERP systems for organisations include overcoming fragmentation by streamlining activities and processes, which provides direct access to real-time information by supplying a group of software modules that encase all departments of a business (Koch, 2003, cited in Corbett Finney, 2007). This appears to be an accurate statement due to the convenience of having all departments existing together. This implies that all information accessed through the new system will be current as it is constantly being updated by various employees based on the tasks they complete. Rather than there being pieces of information in various places, all information regarding the same issue will be together implying that employees can look in one place and have all the information they need rather than searching through various documents or consulting multiple co-workers. This aspect of ERP systems will be investigated at the UNDP in Kosovo in order to determine whether this feature is benefici al. Furthermore, ERP systems are said to provide cost-reduction in addition to increased flexibility (Siriginidi, 2000 cited in Al-Fawaz, Al-Salti, and Eldabi, 2008). These two benefits appear to be linked as decreasing operation costs would imply having more flexibility to perform other processes. For the UN, this would mean more money to use for their peacekeeping missions or other operations. However, flexibility does not depend on cost-reduction. Its possible for the availability of data to imply flexibility in making decisions or flexibility could result from rearranging the organisations processes and being better equipped to perform certain tasks. ERP systems have been reported to enhance business performance by accelerating the merger of organisational resources as well as strengthening the operational efficiency of the company through minimising human error (Shin Knapp, 2001, cited by Wang, 2006). The implication that ERP reduces human error seems to be correct as there is les s opportunity to make a mistake for employees because there is generally only one time they need to input information for data-sharing as opposed to the multiple steps needed to take before. These benefits should assist the UN in accomplishing some of their proposed goals such as linking all departments within one operations system, which decreases the time required for administrative processes. The UN hopes implementation will increase their operational efficiency by allowing valuable time to be spent focusing on high priority situations rather than simple operations tasks (Report of the Secretary-General, 2008). More advertised benefits include improved information accuracy and decision-making capacity (Siriginidi, 2000 cited in Al-Fawaz, Al-Salti, and Eldabi, 2008). The UN wants to make use of these proposed advantages (Report of the Secretary-General, 2008). Decision-making is a large part of the UN as they have to make difficult decisions everyday that effect large numbers of p eople; making a bad decision is not necessarily easily corrected in this case. Furthermore, many situations the UN deals with are time-sensitive; if its easier to access data, and the accuracy of that data is improved, officials can rest assured that they are making decisions with proper knowledge. In implementing ERP, organisations no longer have to create their own applications that are then unique to their company. They now have standard software available for their business processes, referred to as Best Business Practices (BBP). BBPs came into existence around the same time as ERPs. BBPs are general guidelines to assist companies in the way of handling certain business processes, meaning that each company can now improve itself on the basis of the experience of other corporations that share similar functional processes (SAP, 2007, cited by Revia, 2007). It seems any organisation would be hesitant to implement a system that has not proved to benefit other large organisations as the risks of failure are high (source). BBPs should definitely help the UN as they will be benefitting from previous experiences of other corporations. Some of the disadvantages of ERP are that the implementation requires time, costs and risks (Boudreau, 1999), as they tend to be large, complicated, and expensive (Mabert et al., 2001, cited by Al-Fawaz, Al-Salti, and Eldabi, 2008: 3). ERP implementation calls for serious time commitment from all involved as it is often the biggest project that an organisation will ever face (Moon, 2007). ERP execution requires new procedures, employee training and managerial and technical support (Shang Seddon, 2002, cited by Al-Fawaz, Al-Salti, Eldabi, 2008), which can be accomplished through good communication of the corporate strategy to all employees (Umble et al., 2003, cited by Al-Fawaz, Al-Salti, and Eldabi, 2008). Consequently, the biggest problem is not actually the implementation itself but the expectations of board members and senior staff as well as not having a clear plan or realistic projections (Somers Nelson 2004, cited by Al-Fawaz, Al-Salti, and Eldabi, 2008). However, the UN ha s already proposed clear goals and plans for their implementation. The question is whether or not they will be able to successfully translate these goals/plans to all employees of the organisation and whether or not they will be successful. Finally, the importance of selecting the appropriate ERP package is stressed. Corporations must make sure they select the appropriate ERP package that will match their organisation as well as its business processes (Chen, 2001, cited in Corbett Finney, 2007). This seems obvious as every organisation is different. Some corporations strategise around providing excellent customer service while others focus on decreasing costs to customers as a way to attract more business. However, there are studies that show that customising ERP packages beyond minimal adjustments is discouraged; these studies show that organisations should adjust their processes to fit the package rather than adjust the package to fit the processes (Murray Coffin, 2001 cited in Al-Fawaz, Al-Salti, Eldabi, 2008). 2.2 Business Process Transformation (BPR): Definition, Evolution, and Implications Business process reengineering (BPR) was not very popular until the release of the book Re-engineering the Corporation by Michael Hammer and James Champy (Barker, 1995). Hammer and Champy introduced the term Business process reengineering in 1990 and defined it as a fundamental redesign of business processes to achieve dramatic improvements in critical areas such as cost, quality, service and speed (Hammer, 1990). Business process reengineering is also defined as a strategic redesign of important business processes, including the systems and policies that support them, in order to achieve maximum productivity of an organisation (Manganelli Klein, 1994). This would suggest a link between ERP and BPR as they are both structured around the redesign of core business processes. In fact, some goals of BPR are the reduction of cost, cycle-time, defects, and the increase of worker productivity (Hales Savoie, 1994), very much the same as ERP. The aim of BPR is to change current business pro cesses in order to make them more efficient overall, again mimicking ERP. In fact, Some researchers suggest that ERP systems are the major tools for making business processes better, leaner and faster through associated business process reengineering, (Shang Seddon, 2003, cited in Revia, 2007: 25). It is not yet known whether or not BPR will be performed at the UN. It is assumed that it will as it is so closely related to ERP. Additionally, reports have shown that ERP often causes BPR to occur due to its very nature (Martin et al., 1999). It seems that in order for ERP to be most successful, BPR should be performed (Sumner, 2000 cited by Law Ngai, 2007), otherwise the UN may not recognize exactly which processes are most important for their operations. Or, they may not be fully aware of the exact way in which ERP should be performed in relation to the core business processes, which is vital to understand for the selection of the proper ERP package. BPR has its origins in the private sectors as a management tool for companies to deal with change and reorganise their work to improve customer service, cut operational costs, and become world-class competitors, (Hamid, 2004, cited in Wang, 2006: 5). Generally, business process transformation takes business processes and allows the m to be done routinely through a computer system. It incorporates peoples perspectives and input to make sure that the processes fit needs specific to each corporation (Wang, 2006). This suggests benefits for ERP implementation in any organisation as the systems are supposed to be designed around core processes specific to each company. It would be helpful for the UN to determine which processes are vital to their operations. Furthermore, cutting operational costs should prove to be very valuable for the UN as many of the services it provides are non-profit. If BPR is performed as a result of ERP, it seems that cost reduction will be achieved. Here is a further look into what a core business process is: A core business process is one that gives value to the customers or stakeholders of the company. These are the most important processes within the organisation and are the ones that will set a company above their competitors if done well. In order to figure out what processes are cor e, one may ask the following questions. 1) Does the process make valued contributions to the customer? Does it improve customer service, increase response-time, decrease customers costs? 2) Is it important for the production/operation of the company? 3) Can it be used for other businesses? If the answer is yes to one of these questions, then the process under consideration can be considered core (McHugh, Merli, Wheeler, 1995). The UN may consider any process involving cash flow to be core as that is a huge component to many of the services they provide. Furthermore, any documentation of information from one department to another is probably considered core as this organisation relies on data-sharing for its decision-making capabilities. Therefore, it seems that these types of processes will be affected by ERP implementation and will most likely be reengineered. The three most basic strategies that increase a business success are lowering prices, offering more value in products, or focusing on less diversity in commodities and specialising in a certain area (Berrington Oblich, 1995). This suggests that BPR would be structured around these strategies when reorganizing core business processes. If the UN is restructuring using BPR, they are likely to focus on a combination of strategies. As already mentioned, the cost of operations is a huge factor for the United Nations to consider as they provide aid to many countries without expecting any favours in return. This implies they would focus on reduction of costs. However, the main reason they are an organisation is to provide services to those in need. That would suggest they would reorganise their business processes around the strategy of offering more value in their services. In implementing BPR, organisations are asked to choose five or six of the processes that are central to the operation of the company and focus on those to see the ways in which they can make them more efficient (McHugh, Merli, Wheeler, 1995). Concentrating on making sure core processes are completed to the best of the companys ability only ensures the organisation will do better. In the case of the UN, focusing on data-sharing and managing cash flow suggests an increase in the efficiency of the organisation as those components are vital to their operation. These changes would suggest benefits for both the cost-reduction strategy as well as providing better service to customers. 2.3 Enterprise Resource Planning (ERP) and Organisational Culture Organisational culture is a set of core beliefs, values, and behaviours shared by all members of one company, thereby affecting the productivity of the business. It is often described as a pattern of shared assumptions produced and manipulated by top management (Schein, 1992 cited by Boersma Kingma, 2005: 131). Organisational culture is influenced through many aspects, including leadership, personal characteristics, interactions of members, as well as tradition. Culture has visible signs and hidden insinuations. Visible signs include behaviour while the hidden insinuations entail morals and beliefs (Rousseau, 1990 cited by Cooper, 1994). The culture of an organisation is even displayed in the way certain processes are done as well as the outcomes of these processes, which will be examined at the UNDP in Kosovo. Because ERP systems involve most departments in a company, they change many business processes and thereby affect the more deep-seated organisational culture of a corporation . Companies that focus on incorporating their cultures into organisational efforts are said to have an edge in accordance with their productivity. Organisations can focus on culture and work with the people to shape new values, morals and work ethics. If employees are happy to be working for the organisation, they will be more apt to want to work, implying there will be an increase in productivity (Farbrother Marc, 2003). Enterprise resource planning can lead to changes in organisational culture i.e., ERP is implemented in order to increase productivity by changing current business processes (Deal Kennedy, 1982 cited by Cooper, 1994). These changes are maximal and cannot be simply brushed aside. When a company implements ERP, if the organisational culture is ready for the changes it will bring, the employees can work with the system to increase productivity. Consequently, the culture within the business must be one that can be made amenable for change (Nah et al., 2001 cited in Co rbett Finney, 2007). There is the belief that positive and supportive attitudes of those embarking on implementation of ERP will actually bring about a successful transition (Chatterjee et al., 2002 cited in Law Ngai, 2007). However, if the culture has not been made ready for change or the employees are unwilling to change, the system will be less likely to succeed. A system cannot work if there are no users. System implementation represents a threat to users perceptions of control over their work and a period of transition during which users must cope with differences between old and new work systems, (Bobek Sternad, 2002: 285). The social setting of a company and its technology most definitely shape each other; they are hardly independent of one another (Boersma Kingma, 2005). A mistake companies frequently make is to presume that people can change their habits easily when in actuality such changes are considerably taxing for many people. These companies underestimate the effect ERP implementation will have on their employees. Many employees panic when nothing looks the way it used to, nothing works the way it used to, and they can no longer go through their workday with the previously earned sense of familiarity and assurance (Koch, 2007 cited in Revia, 2007). One study showed that it took over two years for users of the new system to forget the process problems they found initially and to gain new knowledge of the system (Seddon Shang, 2003 cited in Revia, 2007). A Chief Information Officer from Nestle sums up this concept very well—she says, No major software implementation is really about the software. Its about change management†¦You are changing the way people work†¦You are challenging their principles, their beliefs and the way they have done things for many, many years (Boersma Kingma, 2005: 123). It seems the best way to ensure that employees are on board with proposed changes is to make them aware of these changes. It is important for them to feel that they are included in the decision to create new values and procedures for the company. Otherwise, they will be clinging on to the old culture and ways of doing things. The change will be stressful and forced rather than welcomed with ease. They should feel that the change is happening because of them rather than happening to them. The most senior level of management initiates enterprise resource planning, but its success depends on its acceptance by the companys ordinary workers (Obolensky, 1996). Cultures can be manipulated by those in management (Handy, 1985 cited by Cooper, 1994). Change can be intimidating and needs to be managed well. Therefore, the conclusion is drawn that managers need to make sure each and every employee is doing their part. This literature suggests that leaders are the most important players in any c hange scenario. Employees wont decide to change their behavi Concepts of Enterprise Resource Planning (ERP) Concepts of Enterprise Resource Planning (ERP) CHAPTER I 1.0 Introduction This paper will labour to explicate the intricacies of enterprise resource planning (ERP), a concept that has long fascinated many in both academic and professional work environments. The United Nations (UN) has expressed the need to implement ERP. As part of their examination into this procedure, the UN has implemented ERP at the United Nations Development Program (UNDP) in Pristine, Republic of Kosovo, and other agencies of the UN. As they look into the ramifications of ERP implementation, so does this case study. This study attempts to make predictions of the impact of ERP implementation on the business processes and organisational culture of the United Nations secretariat based on results from the UNDP. 1.1 Introduction to the Problem Since the latter part of the 1990s, firms have rushed to implement enterprise resource planning (ERP) systems, e.g., one study showed that more than sixty percent of Fortune 500 companies had adopted an ERP system (G. Stewart et al., 2000). The United Nations, as one of the largest organisations in the world, has lagged behind in adopting the transformation in the management of its resources. The United Nations has been seriously hampered its ability to deliver results effectively and efficiently due to the lack of an integrated information system for managing its resources (Report of the Secretary-General, 2008). According to Davis and Olsen (1985), ERP is an integrated system that provides information to support operation management and decision making functions in an organisation. Therefore, the goal of implementing an ERP system and business process reengineering (BPR) is to build an integrated global information system that fully supports the needs of the United Nations, enables the effective management of human, financial and physical resources, and is based on streamlined processes and better practices. (Report of the Secretary-General, 2008) 1.2 Background of the Study 1.2.1 Existing System Currently the United Nations uses an in-house developed system—commonly referred to as Integrated Management Information System (IMIS)—for the management of human, financial and physical resources. The development of IMIS was a milestone in the use of information technology as a discipline that can beneficially affect many if not all areas of administration and management in any given organisation. IMIS was developed as a functionally integrated system, which combines all the departments to support key processes such as human resources management, payroll, finance and accounting, requisitioning and funds control, budget execution and travel management. IMIS was introduced in conjunction with desktop, networked computing and office automation tools such as electronic mail in all offices where IMIS was being used. If an organisation is not yet sure of the need for client-server networks, the state of the art in enterprise-wide computing, it has only to consider the Integrated Management Information System (IMIS) of the United Nations, (Rowe Davis, 1996: 122). The launching of IMIS was subsequently affected and conditioned by major developments in the technological market, and an accelerated shift of focus in the United Nations to field activities. In short, IMIS was designed and developed at a time when the context began to change rapidly and profoundly. Yet, only a few years after the implementation of IMIS, it has become evident that the system cannot take full advantage of the advancement in technology; e.g., even though IMIS is functionally integrated, it was deployed and managed locally at each geographical location, which makes reporting and global management very difficult. The implementation in the United Nations peacekeeping operation was partial, as it is a separate department in t he UN, and was not able to support the supply chain and logistical management. (Report of the Secretary-General, 2008) The IMIS was not an alternative communication technology to paper and telephones, but it involved the synchronization of multiple data sources and the linking of them to several mainframes, (Rowe Davis, 1996: 122). An investment in tactical systems, which includes a stand-alone system and a modular integration into IMIS through interfaces, a bridging system between two different systems to allow data sharing, was able to address the functional gaps of IMIS. However, the organisation today faces challenges that demand profound transformation beyond the capabilities of IMIS and its ancillary legacy systems currently being used. (Report of the Secretary-General, 2008) 1.2.2 The need for change The United Nations struggled to get everybody in their building to connect electronically. It soon realised that it was time to connect the world with a client-server network, (Rowe Davis, 1996: 122). The need for the United Nations to adopt the International Public Sector Accounting Standards (IPSAS) lead to the requirement of significant change in the accounting processes and systems in order to achieve compliance with the international public sector accounting standard. The requisites changes, indeed, were so fundamental that it is fair to say that the life of IMIS has come to an end after fourteen years since it was first implemented; moreover, the benefits that the staff and managers expect from the information system in day-to-day operations and decision-making no longer match the cost of maintenance and ongoing support. This is because IMIS is no longer able to cope with the fast technological development, and the cost of maintenance and ongoing support has become very expens ive. (Report of the Secretary-General, 2008) The success of your organisations quality initiative depends upon your ability to communicate the need for change throughout the organization, (Arcaro and Arcarco, 1997: 146). The United Nations as an organisation needs to improve the quality and cost-effectiveness of the services it provides. They report that the existing systems are not up to the standard, not integrated, duplicative, and are inefficient. (Report of the Secretary-General, 2008) According to the UN, the effective management, planning and decision-making have been hampered by the lack of integration and complete data on resources. (ibid) As the organisation continues to grow in complexity in its activities, they are dissatisfied with the lack of integration and data sharing between different departments as it has become a bigger problem, and the need for a new ICT global enterprise system for streamlining and simplifying processes has become more crucial as the nature of the organisation is changing itself. (ibid) 1.2.3 Goals and objectives of implementing an Enterprise Resource Planning System The United Nations reports that the implementation of an ERP system will present the opportunity to fully combine resources and functions across the organisation by replacing the existing IMIS system. (ibid) Minahan (1998) reports ERP to be a complex software system that ties together and automates the basic processes of business activities such as finance and budget management, human resources management, supply chain management, central support services, and other corporate core functions. Most importantly, the main value of an ERP system is the opportunity to streamline and improve the operations of an entire organisation through process reengineering, sharing of common data, and implementation of best practices and standards, and perform as the inter-organisation information backbone for communication and collaboration (OLeary, 2004). According to reports from the United Nations (Report of the Secretary-General, 2008), the main objectives of the ERP project can be summarised as follows: To have a global operating system that precisely captures core resource data from each department and agency at the UN while linking them together to provide better decision-making. This will minimize the time required to perform administrative processes and enable easy access to necessary reports for each department, thus increasing the efficiency of the organisation and directing the focus to high priority situations. The main functionalities sought from the new ERP system are expected to encompass functions such as programme planning, budgeting, contributions and performance; human resources management and administration; payroll, including management of benefits and contribution to pension, medical and insurance schemes; supply chain management, including procurement; assets and facilities management; general accounting, travel and other administrative flows; reporting to management and stakeholders, and more. (ibid) Specific United Nations peacekeeping operations functions such as logistics, transportation, fuel and rations systems need to be supported by the new ERP system as these functions are not held in common with other organisations of the United Nations operations. 1.3 Purpose and Significance of the Study The research done in this study will attempt to answer the following question: What will be the impact of ERP implementation on the business transformation and business culture of the United Nations? Specifically, the study will attempt to establish the relationship between the business process transformation and organisational culture change offered as the result of ERP. These questions and findings are expected to provide an increased ability in evaluating the performance and standardisation of the business processes within the United Nations, as well as an increased awareness of its effect on the business culture and productivity over time of the UN. In addition, answers to these questions will subsequently enable other researchers to gain more insight into ERP implementation and business process reengineering. It will also enable the management of the United Nations to see how ERP can be a better means of technological reform, thus providing the opportunity to re-evaluate the existing business processes even further. 1.4 Research Questions The question that constitutes the primary point of pivot for the paper is: What will be the probable future impact of ERP on the business process transformation and business culture of the United Nations? The three subsidiary questions of the present work are: > How will ERP implementation make the organisation better off in the foreseeable future? > What will be the effect on the reformed business culture in terms of productivity? > How does the organisation perceive the benefit of ERP on the standardisation of business processes? 1.5 Structural Approach The rest of the thesis has been structured as follows. Chapter 2 provides a review of relevant literature, including ERP, business process reengineering, and their impact on organisational culture. Chapter 3 discusses the methodologies used for the empirical analysis and describes the data and the various proxies employed for analysing ERP implementation in the United Nations. Chapter 4 provides empirical findings of the relationship between ERP implementation and its effects on business processes and organisational culture. Chapter 5 analyses the research findings. Chapter 6 concludes the research by pointing out the key impacts of ERP on the UN. Chapter 7 makes various recommendations for policy direction and potentially fruitful areas of ERP systems for further research. Chapter 8 reflects on the study as a whole. CHAPTER II 2.0 LITERATURE REVIEW The following Literature Review will focus on four main areas of evaluation regarding enterprise resource planning (ERP) on the business process transformation (BPR) in organisations, and more specifically, the United Nations. These are: 1. ERP: definition, evolution, implications 2. BPR: definition, evolution, implications 3. ERP and organisational culture 4. BPR and organisational change This review will analyse the abovementioned systems and related processes insofar as the available data in the literature will allow for a comparison of ERP and BPR and their effects on the United Nations and other large organisations. 2.1 Enterprise Resource Planning (ERP): Definition, Evolution, and Implications Enterprise resource planning (ERP) systems are commonly described as commercial software packages that allow the assimilation of data and processes throughout an organisation (Markus Tanis, 2000, cited in Kim et al., 2005). ERP enables the flow of information among all business areas such as finance, human resources, manufacturing, sales and marketing, (Tan and Theodorou, 2009: 52). Basically, it allows data from all departments to exist in one computer system (Pang, 2001), making the managerial dream of unification of all information systems into one computer system come true (Adam ODoherty, 2003, cited in Revia, 2007). This unification should offer many benefits to the UN and other large organisations. Large organisations may have a more difficult time relaying information from one sector to another as they have many different departments and even multiple locations. The combination of all department in one system, presents benefits of relaying data in a timely manner. Rather tha n sending files through inter-office mail or needing to track down one particular staff member, each employee will have access to the information required for their job by simply logging into the system. The researcher will attempt to discover whether this unification does indeed allow for more time-efficiency as well as making simple operations tasks easier to accomplish in the UN. The start of ERP systems came about in the 1960-1970s with the invention of Inventory Control (IC) and Materials Requirement Planning (MPR) systems, which managed inventory in manufacturing. In the 1980s, Manufacturing Resources Planning (MRP II) systems came into use to manage both inventory and production requirements together. In 1973, the first ERP system was created with the goal of supporting all business needs. Since then, ERP systems have become much more popular. In fact, by the year 2000, enterprise resource planning systems were estimated to have serviced $23 billion USD in profits for the various organisations that have been implementing them (Pang, 2001). ERP applications are the largest, fastest growing and most influential in the industry (Corbett Finney, 2007). This is probably why the UN has shown such interest in ERP. The increase in ERP implementation does not seem surprising as ERP allows corporations to update to a new integrated system cutting out the previous legacy systems known for their difficulties in maintenance, large size, and old age, as they are segregated systems (Martin, 1998; cited in Boudreau, 1999). This appears to be helpful for the UN as they reported difficulty with their current legacy system (Report of the Secretary-General, 2008). It is likely that employees of the UN will be satisfied with the replacement of the legacy system due to the reported problems it has. However, there is a chance that employees may be intimidated by this change as they will have to learn an entirely new system. Advantages of ERP systems for organisations include overcoming fragmentation by streamlining activities and processes, which provides direct access to real-time information by supplying a group of software modules that encase all departments of a business (Koch, 2003, cited in Corbett Finney, 2007). This appears to be an accurate statement due to the convenience of having all departments existing together. This implies that all information accessed through the new system will be current as it is constantly being updated by various employees based on the tasks they complete. Rather than there being pieces of information in various places, all information regarding the same issue will be together implying that employees can look in one place and have all the information they need rather than searching through various documents or consulting multiple co-workers. This aspect of ERP systems will be investigated at the UNDP in Kosovo in order to determine whether this feature is benefici al. Furthermore, ERP systems are said to provide cost-reduction in addition to increased flexibility (Siriginidi, 2000 cited in Al-Fawaz, Al-Salti, and Eldabi, 2008). These two benefits appear to be linked as decreasing operation costs would imply having more flexibility to perform other processes. For the UN, this would mean more money to use for their peacekeeping missions or other operations. However, flexibility does not depend on cost-reduction. Its possible for the availability of data to imply flexibility in making decisions or flexibility could result from rearranging the organisations processes and being better equipped to perform certain tasks. ERP systems have been reported to enhance business performance by accelerating the merger of organisational resources as well as strengthening the operational efficiency of the company through minimising human error (Shin Knapp, 2001, cited by Wang, 2006). The implication that ERP reduces human error seems to be correct as there is les s opportunity to make a mistake for employees because there is generally only one time they need to input information for data-sharing as opposed to the multiple steps needed to take before. These benefits should assist the UN in accomplishing some of their proposed goals such as linking all departments within one operations system, which decreases the time required for administrative processes. The UN hopes implementation will increase their operational efficiency by allowing valuable time to be spent focusing on high priority situations rather than simple operations tasks (Report of the Secretary-General, 2008). More advertised benefits include improved information accuracy and decision-making capacity (Siriginidi, 2000 cited in Al-Fawaz, Al-Salti, and Eldabi, 2008). The UN wants to make use of these proposed advantages (Report of the Secretary-General, 2008). Decision-making is a large part of the UN as they have to make difficult decisions everyday that effect large numbers of p eople; making a bad decision is not necessarily easily corrected in this case. Furthermore, many situations the UN deals with are time-sensitive; if its easier to access data, and the accuracy of that data is improved, officials can rest assured that they are making decisions with proper knowledge. In implementing ERP, organisations no longer have to create their own applications that are then unique to their company. They now have standard software available for their business processes, referred to as Best Business Practices (BBP). BBPs came into existence around the same time as ERPs. BBPs are general guidelines to assist companies in the way of handling certain business processes, meaning that each company can now improve itself on the basis of the experience of other corporations that share similar functional processes (SAP, 2007, cited by Revia, 2007). It seems any organisation would be hesitant to implement a system that has not proved to benefit other large organisations as the risks of failure are high (source). BBPs should definitely help the UN as they will be benefitting from previous experiences of other corporations. Some of the disadvantages of ERP are that the implementation requires time, costs and risks (Boudreau, 1999), as they tend to be large, complicated, and expensive (Mabert et al., 2001, cited by Al-Fawaz, Al-Salti, and Eldabi, 2008: 3). ERP implementation calls for serious time commitment from all involved as it is often the biggest project that an organisation will ever face (Moon, 2007). ERP execution requires new procedures, employee training and managerial and technical support (Shang Seddon, 2002, cited by Al-Fawaz, Al-Salti, Eldabi, 2008), which can be accomplished through good communication of the corporate strategy to all employees (Umble et al., 2003, cited by Al-Fawaz, Al-Salti, and Eldabi, 2008). Consequently, the biggest problem is not actually the implementation itself but the expectations of board members and senior staff as well as not having a clear plan or realistic projections (Somers Nelson 2004, cited by Al-Fawaz, Al-Salti, and Eldabi, 2008). However, the UN ha s already proposed clear goals and plans for their implementation. The question is whether or not they will be able to successfully translate these goals/plans to all employees of the organisation and whether or not they will be successful. Finally, the importance of selecting the appropriate ERP package is stressed. Corporations must make sure they select the appropriate ERP package that will match their organisation as well as its business processes (Chen, 2001, cited in Corbett Finney, 2007). This seems obvious as every organisation is different. Some corporations strategise around providing excellent customer service while others focus on decreasing costs to customers as a way to attract more business. However, there are studies that show that customising ERP packages beyond minimal adjustments is discouraged; these studies show that organisations should adjust their processes to fit the package rather than adjust the package to fit the processes (Murray Coffin, 2001 cited in Al-Fawaz, Al-Salti, Eldabi, 2008). 2.2 Business Process Transformation (BPR): Definition, Evolution, and Implications Business process reengineering (BPR) was not very popular until the release of the book Re-engineering the Corporation by Michael Hammer and James Champy (Barker, 1995). Hammer and Champy introduced the term Business process reengineering in 1990 and defined it as a fundamental redesign of business processes to achieve dramatic improvements in critical areas such as cost, quality, service and speed (Hammer, 1990). Business process reengineering is also defined as a strategic redesign of important business processes, including the systems and policies that support them, in order to achieve maximum productivity of an organisation (Manganelli Klein, 1994). This would suggest a link between ERP and BPR as they are both structured around the redesign of core business processes. In fact, some goals of BPR are the reduction of cost, cycle-time, defects, and the increase of worker productivity (Hales Savoie, 1994), very much the same as ERP. The aim of BPR is to change current business pro cesses in order to make them more efficient overall, again mimicking ERP. In fact, Some researchers suggest that ERP systems are the major tools for making business processes better, leaner and faster through associated business process reengineering, (Shang Seddon, 2003, cited in Revia, 2007: 25). It is not yet known whether or not BPR will be performed at the UN. It is assumed that it will as it is so closely related to ERP. Additionally, reports have shown that ERP often causes BPR to occur due to its very nature (Martin et al., 1999). It seems that in order for ERP to be most successful, BPR should be performed (Sumner, 2000 cited by Law Ngai, 2007), otherwise the UN may not recognize exactly which processes are most important for their operations. Or, they may not be fully aware of the exact way in which ERP should be performed in relation to the core business processes, which is vital to understand for the selection of the proper ERP package. BPR has its origins in the private sectors as a management tool for companies to deal with change and reorganise their work to improve customer service, cut operational costs, and become world-class competitors, (Hamid, 2004, cited in Wang, 2006: 5). Generally, business process transformation takes business processes and allows the m to be done routinely through a computer system. It incorporates peoples perspectives and input to make sure that the processes fit needs specific to each corporation (Wang, 2006). This suggests benefits for ERP implementation in any organisation as the systems are supposed to be designed around core processes specific to each company. It would be helpful for the UN to determine which processes are vital to their operations. Furthermore, cutting operational costs should prove to be very valuable for the UN as many of the services it provides are non-profit. If BPR is performed as a result of ERP, it seems that cost reduction will be achieved. Here is a further look into what a core business process is: A core business process is one that gives value to the customers or stakeholders of the company. These are the most important processes within the organisation and are the ones that will set a company above their competitors if done well. In order to figure out what processes are cor e, one may ask the following questions. 1) Does the process make valued contributions to the customer? Does it improve customer service, increase response-time, decrease customers costs? 2) Is it important for the production/operation of the company? 3) Can it be used for other businesses? If the answer is yes to one of these questions, then the process under consideration can be considered core (McHugh, Merli, Wheeler, 1995). The UN may consider any process involving cash flow to be core as that is a huge component to many of the services they provide. Furthermore, any documentation of information from one department to another is probably considered core as this organisation relies on data-sharing for its decision-making capabilities. Therefore, it seems that these types of processes will be affected by ERP implementation and will most likely be reengineered. The three most basic strategies that increase a business success are lowering prices, offering more value in products, or focusing on less diversity in commodities and specialising in a certain area (Berrington Oblich, 1995). This suggests that BPR would be structured around these strategies when reorganizing core business processes. If the UN is restructuring using BPR, they are likely to focus on a combination of strategies. As already mentioned, the cost of operations is a huge factor for the United Nations to consider as they provide aid to many countries without expecting any favours in return. This implies they would focus on reduction of costs. However, the main reason they are an organisation is to provide services to those in need. That would suggest they would reorganise their business processes around the strategy of offering more value in their services. In implementing BPR, organisations are asked to choose five or six of the processes that are central to the operation of the company and focus on those to see the ways in which they can make them more efficient (McHugh, Merli, Wheeler, 1995). Concentrating on making sure core processes are completed to the best of the companys ability only ensures the organisation will do better. In the case of the UN, focusing on data-sharing and managing cash flow suggests an increase in the efficiency of the organisation as those components are vital to their operation. These changes would suggest benefits for both the cost-reduction strategy as well as providing better service to customers. 2.3 Enterprise Resource Planning (ERP) and Organisational Culture Organisational culture is a set of core beliefs, values, and behaviours shared by all members of one company, thereby affecting the productivity of the business. It is often described as a pattern of shared assumptions produced and manipulated by top management (Schein, 1992 cited by Boersma Kingma, 2005: 131). Organisational culture is influenced through many aspects, including leadership, personal characteristics, interactions of members, as well as tradition. Culture has visible signs and hidden insinuations. Visible signs include behaviour while the hidden insinuations entail morals and beliefs (Rousseau, 1990 cited by Cooper, 1994). The culture of an organisation is even displayed in the way certain processes are done as well as the outcomes of these processes, which will be examined at the UNDP in Kosovo. Because ERP systems involve most departments in a company, they change many business processes and thereby affect the more deep-seated organisational culture of a corporation . Companies that focus on incorporating their cultures into organisational efforts are said to have an edge in accordance with their productivity. Organisations can focus on culture and work with the people to shape new values, morals and work ethics. If employees are happy to be working for the organisation, they will be more apt to want to work, implying there will be an increase in productivity (Farbrother Marc, 2003). Enterprise resource planning can lead to changes in organisational culture i.e., ERP is implemented in order to increase productivity by changing current business processes (Deal Kennedy, 1982 cited by Cooper, 1994). These changes are maximal and cannot be simply brushed aside. When a company implements ERP, if the organisational culture is ready for the changes it will bring, the employees can work with the system to increase productivity. Consequently, the culture within the business must be one that can be made amenable for change (Nah et al., 2001 cited in Co rbett Finney, 2007). There is the belief that positive and supportive attitudes of those embarking on implementation of ERP will actually bring about a successful transition (Chatterjee et al., 2002 cited in Law Ngai, 2007). However, if the culture has not been made ready for change or the employees are unwilling to change, the system will be less likely to succeed. A system cannot work if there are no users. System implementation represents a threat to users perceptions of control over their work and a period of transition during which users must cope with differences between old and new work systems, (Bobek Sternad, 2002: 285). The social setting of a company and its technology most definitely shape each other; they are hardly independent of one another (Boersma Kingma, 2005). A mistake companies frequently make is to presume that people can change their habits easily when in actuality such changes are considerably taxing for many people. These companies underestimate the effect ERP implementation will have on their employees. Many employees panic when nothing looks the way it used to, nothing works the way it used to, and they can no longer go through their workday with the previously earned sense of familiarity and assurance (Koch, 2007 cited in Revia, 2007). One study showed that it took over two years for users of the new system to forget the process problems they found initially and to gain new knowledge of the system (Seddon Shang, 2003 cited in Revia, 2007). A Chief Information Officer from Nestle sums up this concept very well—she says, No major software implementation is really about the software. Its about change management†¦You are changing the way people work†¦You are challenging their principles, their beliefs and the way they have done things for many, many years (Boersma Kingma, 2005: 123). It seems the best way to ensure that employees are on board with proposed changes is to make them aware of these changes. It is important for them to feel that they are included in the decision to create new values and procedures for the company. Otherwise, they will be clinging on to the old culture and ways of doing things. The change will be stressful and forced rather than welcomed with ease. They should feel that the change is happening because of them rather than happening to them. The most senior level of management initiates enterprise resource planning, but its success depends on its acceptance by the companys ordinary workers (Obolensky, 1996). Cultures can be manipulated by those in management (Handy, 1985 cited by Cooper, 1994). Change can be intimidating and needs to be managed well. Therefore, the conclusion is drawn that managers need to make sure each and every employee is doing their part. This literature suggests that leaders are the most important players in any c hange scenario. Employees wont decide to change their behavi

The Graying Shades Of Media A Corrupt Conundrum Media Essay

The Graying Shades Of Media A Corrupt Conundrum Media Essay Since the days of the freedom movement Indian media has been recognised as patriotic and nationalist tool to provide unbiased news and build positive public debates. Mahatma Gandhi, The father of the Indian nation juggled his movement with the moral power of active journalism. Today, India with its over a billion population supports nearly 70,000 registered newspapers and over 450 Television channels. In the sphere of journalism, there are eminent Journalists in the country who are honoured and accepted as the moral guide in the Indian society. While the newspapers in Europe and America are losing their readership annually, the Indian print media is still going from strength to strength with huge circulations and greater marketing opportunities. The media is still considered to be the fourth important pillar after the judiciary, parliament and bureaucratic set-up in democratic India. Media is considered to be a repository of public trust for conveying information to public honestly. With the advent of technology the new dimension of internet has changed the way the news is shared and views are exchanged. The speed of travel of information has grown logarithmically and media has become more powerful than any time before to shape the minds and generation of opinions of the masses. Social media is developing as a pervasive tool to connect the society laterally which is affecting marketing strategies of the business houses and structuring political influences by the people in power or seeking power. Historically media has always taken the flak for favoring the more influential sections of society and has also been blamed to shade the news and views to suit the economic viability of the publishing houses. Political leanings and corporate influences on the editorials and selectivity in coverage of news is not hidden from the public but in recent years, malpractices in the Indian media has gone way beyond the corruption of individual journalists and media organizations. Unfortunately the information is planted and views are on sale for favors received in cash or kind in institutionalized and organized forms of corruption. Newspapers publishers and television channels owners do not shy away from receiving funds for publishing or broadcasting information in favor of particular individuals or corporate entities that is disguised as news. The plague of unethical commercial activities and market interests of media institutions disfigure the role they play in the shaping of public opinio n and in upholding principles and norms of democracy. II Understanding certain terms related to media Paid media is the most traditional advertising in which a company pays for space or for a third party to promote its products. This form is thriving with emergence of more targeted cable TV, online-display placement, and other channels options for marketers expanding exponentially .Online video and search marketing is attracting greater interest .Paid media has too much of clutter with declining response rates and declining credibility. Owned Media Owned media, consists of catalogues, web sites, retail stores, alert programs and e-mail notifications of special offers etc on properties or channels owned by the company that uses them for marketing purposes. Owned Media do not offer guarantees and consumers have limited trust in this media. Earned Media Earned media (or free media) refers to favorable publicity gained through promotional efforts other than advertising, as opposed to paid media, which refers to publicity gained through advertising.[1] Earned media often refers specifically to publicity gained through editorial influence, whereas social media refers to publicity gained through grassroots action, particularly on the Internet. The media may include any mass media outlets, such as newspaper, television, radio, and the Internet, and may include a variety of formats, such as news articles or shows, letters to the editor, editorials, and polls on television and the Internet.  [1]  Earned media is an old PR term that essentially meant getting your brand into free media rather than having to pay for it through advertising. Social media Social media employ web- and mobile-based technologies to support interactive dialogue and introduce substantial and pervasive changes to communication between organizations, communities, and individuals. [1] Andreas Kaplan and Michael Haenlein define social media as a group of Internet-based applications that build on the ideological multi faceted and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content.[2] I.e. Social media are social software which mediates human communication. When the technologies are in place, social media is ubiquitously accessible, and enabled by scalable communication techniques. In the year 2012, social media became one of the most powerful sources for news updates through platforms like Twitter and Face book.  [2]   Sold Media Paid and owned media are controlled by marketers touting their own products. For earned media, such marketers act as the initial catalyst for users responses. But in some cases, one marketers owned media become another marketers paid media-for instance, when an e-commerce retailer sells ad space on its Web site. This is termed as sold media on an owned media whose traffic is so strong that other organizations place their content or e-commerce engines within that environment.  [3]  This is gaining more popularity as a promotional media on the web based sites as it gives eye ball attention to the interested clientele only as it is projected on the related web pages which the potential client of the product is visiting. Hijacked Media The same dramatic technological changes that have provided marketers with more (and more diverse) communications choices have also increased the risk that passionate consumers will voice their opinions in quicker, more visible, and much more damaging ways. Such hijacked media are the opposite of earned media: an asset or campaign becomes hostage to consumers, other stakeholders, or activists who make negative allegations about a brand or product e.g. a prank online video of two employees contaminating sandwiches in Dominos Pizza kitchen appeared on YouTube. Advertorial An advertorial is an advertisement in the form of an editorial. The term advertorial is a portmanteau of advertisement and editorial. Merriam-Webster dates the origin of the word to 1946.[1]In printed publications, the advertisement is usually written in the form of an objective article and designed to look like a legitimate and independent news story. In television, the advertisement is similar to a short infomercial presentation of products or services. These can either be in the form of a television commercial or as a segment on a talk show or variety show. In radio, these can take the form of a radio commercial or a discussion between the announcer and representative.  [4]   Paid News Paid news or paid content are those articles in newspapers, magazines and the electronic media, which indicate favourable conditions for the institution that has paid for it. The news is much like an advertisement, but without the ad tag. This kind of news has been considered a serious malpractice since it deceives the citizens, not letting them know that the news is, in fact an advertisement. Secondly, the payment modes usually violate tax laws and election spending laws. More seriously, it has raised electoral concerns because the media has a direct influence on voters.  [5]   The dynamic media jargon has its vocabulary changing every moment which in turn is not only changing the way consumers perceive and absorb marketing messages but will also force marketers to change their thinking about the way they allocate spending and organize operations. Different kinds of media are becoming more integrated. The sold media can catapult a marketer into a stream of contacts with users and members through owned-media hubs, where marketing companies can offer a more engaging experience, get consumers interested in products. New publishing models are finding their way in modern media as marketers are leaning on media providers for help by partnering with media publishers to create deeper marketing experiences for consumers and to obtain content and ad sales support. Computer maker Dell and automobile manufacturer Nissan, for example, worked with the Sundance Channel in United States to create a television talk show hosted by Elvis Costello to attract their target demog raphic with ads that seamlessly blended into the shows content. Applications created on mobile phones are initiating tools that provide useful information. For example, eBays Red Laser generates a list of prices for products by merely scanning the barcode on mobile phone. Twitter and other blogging platforms are social media platforms to promote new products and promotions by leveraging its huge fan base. III Accountability and responsibility in journalism Good journalism flourishes where society respects and enforces the rule of law. International standards supply guarantees of free expression. But these standards also typically acknowledge certain legitimate grounds for the states restriction of free expression.  [6]  The Universal Declaration of Human Rights, proclaimed by the United Nations General Assembly in 1948, pronounces in Article 19 that: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek,receive and impart information and ideas through any media and regardless of frontiers. Article 29 then qualifies this right as: In the exercise of his rights and freedoms, everyone shall be subject only to such limitations as are determined by law solely for the purpose of securing due recognition and respect for the rights and freedom of others and of meeting the just requirements of morality, public order and the general welfare in a democratic society .  [7]   The right to free expression often goes loggerheads with other competing interests. Sometimes there is no legal remedy for types of journalistic misconduct that can disappoint readers and viewers. A courtroom is often not the best place to resolve disputes about balance, fairness, and accuracy and there is always the risk that harsh judicial remedies, even those imposed when the underlying case involves journalistic misconduct, will inhibit the future free and open publication of controversial views. In such a scenario self-regulatory mechanisms offer a valuable alternative.  [8]  Most associations of journalists, and many individual news organizations, have adopted codes of ethics. Terms vary. Some codes are binding, and violation of a provision can lead to dismissal by an employer or expulsion from a professional journalism society. But most codes of ethics, instead, offer voluntary guidelines to help journalists make morally and professionally sound decisions. Codes thus encou rage greater accountability to readers and viewers. A good example is the Code of Ethics for the Society of Professional Journalists (SPJ)  [9]  , the largest voluntary association of U.S. news reporters and editors. Its code encourages journalists to abide by four core principles: Seek truth and report it: Journalists should be honest, fair and courageous in gathering, reporting and interpreting information. Minimize harm: Ethical journalists treat sources, subjects and colleagues as human beings deserving of respect. Act independently: Journalists should be free of obligation to any interest other than the publics right to know Be accountable: Journalists are accountable to their readers, listeners, viewers and each other. By its own terms, the SPJ code is a voluntary guide to ethical behavior. It states:The code is intended not as a set of rules but as a guide for ethical decision-making.  [10]  Similarly the Press Council of India, an autonomous body was set up under the Press Council Act, 1978. The Press Council of India has developed norms of journalistic conduct that cover the principles and ethics regarding journalism. The Press Council of India has also laid down guidelines on reporting of specific issues of public and national importance. In 1996, it drew up a set of guidelines that are particularly applicable to financial journalism. The Press Council of India has also issued guidelines on reporting of elections.  [11]  Mint  [12]  has laid down a code of journalistic conduct for guiding its journalists in so much of details that these can be expanded in scope to be followed by the entire media to safeguard and uphold the values of journalism in the country. Journalists have to be honest fair and courageous in gathering, reporting and interpreting information; ensuring accuracy, objectivity, balance and fairness. A Journalist should be free of any obligations, whether political or corporate. Speaking of corporations, there is no denying that Journalism and reporting like most other professions need significant capital inputs and sound business sense to survive. But, this is a profession where the stakes are much higher because it is a profession which has the power to create opinions and to shape a nations present and its future. Journalists must maintain dignity in expression and be sensitive while reporting on critical issues. IV Mass media bias: Can it be avoided? Media bias is the bias of journalists and news producers within the mass media in the selection of events and stories that are reported and how they are covered. The term media bias implies a pervasive or widespread bias contravening the standards of journalism, rather than the perspective of an individual journalist or article. The direction and degree of media bias in various countries is widely disputed.  [13]  The phenomenon of political bias has been founded in the media along with the invention of printing press and historically media has always favored the more powerful social groups. Like newspapers, the broadcast media (radio and television) have been used as a mechanism for propaganda from their earliest days, a tendency made more pronounced by the initial ownership of broadcast spectrum by national governments. Although a process of media deregulation has placed the majority of the broadcast media in private hands, there still exists a strong government presence, or ev en monopoly, in the broadcast media of many countries across the globe. At the same time, the concentration of media in private hands, and frequently amongst a comparatively small number of individuals, has also led to accusations of media bias.  [14]   There are primarily three categories of bias in reporting of a news viz. gate keeping bias which stops a news from appearing at all, coverage bias which gives the various degrees of prominence to the news and statement bias which gives color to a news through opinionated coverage.  [15]  The following are the most commonly talked about biases:- Support or attack a particular political party, candidate, or ideology. Advertising bias, when stories are selected or slanted to please advertisers. Corporate bias, when stories are selected or slanted to please corporate owners of media. Mainstream bias, a tendency to report what everyone else is reporting, and to avoid stories that will offend anyone. Sensationalism, bias in favor of the exceptional over the ordinary, giving the impression that rare events, such as airplane crashes, are more common than common events, such as automobile crashes. Favors or attacks on a particular race, religion, gender, age, sexual orientation, or ethnic group.  [16]   The bias of the mass media may be sited due to its economic structural views which get a leaning to a political view and in turn takes the form of propaganda. The corporate ownership of media houses is bound to have biases in the areas where their profitability is affected. There is another demand-driven theory of mass media bias. If readers and viewers have prior views on the current state of affairs and are uncertain about the quality of the information about it being provided by media outlets, then the latter have an incentive to slant stories towards their customers prior beliefs, in order to build and keep a reputation for high-quality journalism. The reason for this is that rational agents would tend to believe that pieces of information that go against their prior beliefs in fact originate from low-quality news providers. According to a a behavioral model which is built around the assumption that readers and viewers hold beliefs that they would like to see confirmed by news pr oviders. When news customers share common beliefs, profit-maximizing media outlets find it optimal to select and/or frame stories in order to pander to those beliefs.  [17]  In another model media bias arises because the media cannot tell the whole truth but are restricted to simple messages, such as political endorsements. In this setting, media bias arises because biased media are more informative; people with a certain political bias prefer media with a similar bias because they can more trust their advice on what actions to take.  [18]   Not all accusations of bias are political. Science writers accuse the entertainment media of anti-science bias. Television programs such as The X-Files promote superstition.  [19]  In contrast, the Competitive Enterprise Institute, which is funded by businesses, accuses the media of being biased in favor of science and against business interests, and of credulously reporting science that purports to show that greenhouse gasses cause global warming.  [20]   There has been a number of suggestions and efforts to straighten the biases during media coverage. A technique used to avoid bias is the point/counterpoint or round table, an adversarial format in which representatives of opposing views comment on an issue. This approach theoretically allows diverse views to appear in the media. However, the person organizing the report still has the responsibility to choose people who really represent the breadth of opinion, to ask them non-prejudicial questions, and to edit or arbitrate their comments fairly.  [21]   Another technique used to avoid bias is disclosure of affiliations that may be considered a possible conflict of interest. This is especially apparent when a news organization is reporting a story with some relevancy to the news organization itself or to its ownership individuals or conglomerate. Often this disclosure is mandated by the laws or regulations pertaining to stocks and securities. Commentators on news stories involving stocks are often required to disclose any ownership interest in those corporations or in its competitors. Same holds good during reporting of run up to elections when media covers stories and opinions through news columns and editorials as well publish advertisements related to contesting candidates and propaganda of the political parties. V Paid news: Pernicious dimension of media Media bias has always been a detrimental phenomenon affecting all forms of media that plagues society due to financial selfishness and vested interests of the journalists and the corporate houses controlling the strings of various sections of media. But in the recent years this bias is falling in the vicious trap of corruption whereby the news has started to have a price tag and advertorials are passed as news to unsuspecting readers and viewers. It has become pervasive, structured and highly organized and in the process, is undermining democracy in India. Media has moral responsibility to keep the news objective, fair and neutral. A clear distinction between information and opinion from advertisements that are paid for by corporate entities, governments, organizations or individuals has to be maintained at all times. The reader should be able to distinguish between news reports and advertisements/advertorials and the boundary between the two should never blur. But recently the paid news is becoming a deep-seated ailment which has become organized and is not restricted to only journalists, managers and owners of media companies but also involve advertising agencies and public relations firms. Owners and editors of media companies ideally should erect a firewall between journalists or content creators/producers, on the one hand, and buyers and sellers of advertising space, on the other but in some newspapers, magazines and television channels, this wall has too many convenient orifices which leads to the most common problem of making an attempt to manipulate public debate through the purchase of favorable editorial space and the purchase of advertising space .Owners of media organizations compel themselves to give favorable information about certain advertisers and block unfavorable information against them due to their financial relationships, including share-holdings, with them. An outgoing chairperson of the Securities and Exchange Board of India, in his farewell speech, referred to the existence of the anchor investor. Therefore, this problem, in a different sense, though it cannot be termed as paid news, also existed in the sphere of business journalism. Such trends have been discernible in sections of the Indian media for some years now in spite of press council of India having drawn a set of guidelines in 1996 which are particularly applicable to financial journalists on the behest of the regulator of the countrys capital markets, the Securities and Exchange Board of India (SEBI).Disclosure of private treaties between media companies and other corporate entities need to be mandatory to safeguard the interests of investors. This practice(paid news) has started in media after India adopted free-economy policy. Corporates and media came closer and marketing managers became stronger than the editor of a media establishment. ..Media (the only hope for the common man) is supposed to be advocating for the deprived sections of society. But media itself has become an integral part of consumerism and corporate system.  [22]  The explosive growth in the media in the country had highlighted the fact that the Fourth Estate is the only one among the pillars of democracy that has an identifiable commercial and explicitly for-profit persona. While the primary professional duty of media organizations is to their readership to keep them informed and appraised with news, views and ideas, the commercial logic brings in a new set of stakeholders in the form of the shareholders of these companies.  [23]   The paid news has proliferated more due to diminution of the role and the status of editors in media organizations and the reduced freedom of journalists under the Working Journalists Act. Senior journalists prefer to work with their employers under fixed term contracts which erode their protection otherwise accorded to them under the provisions of the Act. Until the 1970s and the 1980s, many editors would not brook any interference from the management of the company they would be employed by the number of such editors started dwindling as more and more senior journalists started acceding to every whim of their managers and employers instead of their editors. With managers playing a more influential role in the selection and presentation of news, it was not surprising that the importance of the news started getting determined by the revenues that would be generated for the media company.  [24]  The journalist faces an ethical dilemma which begins with the inherent conflict betwe en the individuals role as a journalist providing independent information to the public and his or her employers quest for profit. The poor wages of journalists especially those who work in non-urban areas also force them to double up as advertising agents working on commissions to earn their livelihood. The paid news acquires a completely new complexity of staggering proportion with the corporatization of media houses and large media houses not only own print media but also own electronic media and radio waves. These media houses offer packages for the projection of certain individuals in all the forms of media that they own and control. This distorts parliamentary democracy in multiple ways: (a) (the) media ceases to be objective and, therefore, distorts public perception; (b) it distorts the electoral political choices of the people by providing undue advantage to those candidates/political parties who are able to afford these packages, (c) it manipulates democracy, negating it completely by denying or by not providing equal access to those who cannot afford to indulge in such malpractices thereby breaching the provisions of the Constitution of India, and (d) it demeans the idea and essence of journalism itself.  [25]   Paid news phenomenon represents a fatal combination of three Ms, namely, the media, money and mafia that has subverted free and fair elections. He said that earlier, politicians used to hire musclemen with huge amounts of money and train them in booth rigging. Nowà ¢Ã¢â€š ¬Ã‚ ¦candidates are training media pens instead of mafia guns to rig the minds of people with constant opinion bombarding.  [26]  The new aspect of this phenomenon of paid newsas seen in parliament elections in 2009 is that there was widespread participation by political parties in this process. The integration and assimilation of leading political parties and corporate public relations bodies in this racket is also unique to the elections of 2009.  [27]  The Election Commission noted during the election process that the more disturbing phenomenon recently emerging and which is causing serious concern to the commission is the latest complaint to the Commission that some of the newspapers have even offered p ackages at hefty sums, offering three types of services one, projecting the image of a political party or a candidate in a positive manner; two, giving negative publicity to the rival party or candidate. The rates of such packages vary, depending upon the standing and circulation of the newspaper in the area covered by the constituency.The regional media councils have been rising to address the problem by repeatedly urging the journalists to desist from the temptation of We strongly believe that the practice of putting out advertising as news is a grave journalistic malpractice. Moreover the trend threatens the foundation of journalism by eroding public faith in the credibility and impartiality of news reporting. It also vitiated the poll process and prevented a fair election, since richer candidates who could pay for their publicity had a clear advantage.  [28]  A prominent journalist took a poke shot on vernacular press, The vernacular media may be feeling cocky, having pulle d themselves out of physical poverty under their own steam, but they have yet to learn how to deal firmly and decisively with another kind of poverty that of the professional, ethical kind  [29]  . The society has woken up to the media malpractices and the reflection is seen in the films and documentaries. Film director Shri Ram Gopal Verma made a movie in Feb 2010 named Rann dealing with the topic of corruption in the media. Even a documentary titled Advertorial: Selling News or Products? was produced by an eminent media critic and academic Paranjoy Guha Thakurta for Indias national broadcaster, Doordarshan.Even in a survey conducted by the Readers Digest in March 2010, called the Trust Survey, 750 Indians were asked to rank the short-listed individuals belonging to different professions. Journalists were ranked 30 out of the 40 professionals listed and were placed next only to barbers and bus drivers.  [30]  Edelman, an independent public relations firm, in its 2010 Trust Barometer Survey (conducted in 22 countries worldwide, including India and six other countries in the Asia-Pacific region) stated that the Indian media has been losing its credibility and trust among the people. The study, which sampled 1,575 people in the 25-64 age group and 200 opinion leaders in India, noticed a sharp drop in trust over the past two years in television news in India. However, newspapers are ranked higher than other media in terms of credible news with people trusting newspapers more than any other medium: 38 per cent of the Indians polled trusted radio and television, while

Christianity & Paganism in Beowulf :: Epic of Beowulf Essays

  Ã‚  Ã‚  Ã‚  Ã‚  Beowulf was written in the time when the society was in the process of converting from Paganism to Christianity. In this epic poem, these two religions come through the actions of its characters. The acceptance of feuds and the courage of war are just a few examples of the Pagan tradition, while the Christian mortalities refrain from the two.   Ã‚  Ã‚  Ã‚  Ã‚  Beowulf is torn between his Christian heart to help the people as well as the selfish reward of Paganism. Though he wants the Christian’s respect he thrives for the satisfaction of fighting. Beowulf is known as a hero and in that aspect he believes he should be the one to defeat Grendel. Beowulf despises weapons but relies on his strength. This is just one of many battles that suggest Beowulf was a Pagonist. He also would drink and tended to kill people and creatures, which also leads to the speculations of Paganism.   Ã‚  Ã‚  Ã‚  Ã‚   Even though many Pagan influences appear in the poem, Christian influences override them. An example would be when Beowulf saved the Danes from Grendel. He also expressed a fair attitude towards battles when he refused to use a weapon. The idea of loyalty, a hero, and a giver are all signs of Christianity. Beowulf could be seen as Christ when trying to help the people as Grendel could be compared to Satan who tries to destroy happiness and well-doing.   Ã‚  Ã‚  Ã‚  Ã‚  The last battle in Beowulf was against the fierce dragon that could also be saw as the power of Satan. During this battle Beowulf chooses to use a weapon because of the dragon’s deadly venom, it would only be fair. It was a hard fight but Beowulf wasn’t capable of defeating the dragon. This battle could be compared to the will of Christ, in which Christ gave his life for the people, while Beowulf did the same. The dragon now represents the evil a man must fight in order to preserve the good in life. Although Beowulf was defeated, it was not shamelessly, just like Christ he saved the people. Beowulf had a good heart but was sometimes overturned by the bad influences in life. He represents the fact that everyone makes mistakes, you can’t be perfect all the time, everyone’s bound to lose.   Ã‚  Ã‚  Ã‚  Ã‚  Grendel was a very hateful and disturbed creature.

Volunteering for a Food Drive Essay -- Contribution to My Community Ser

Volunteering for a Food Drive "I'm hungry. Let's get something to eat before we go." It was around ten o'clock on a Saturday morning. Normally my parents might find me in bed or playing on the computer at this time, but I was dressed and grasping the doorknob in our kitchen on this particular morning. I felt a slight wave of hunger flow through my body, so I suggested to my mother that we have a light mid-morning snack to tide us over before lunch. I searched through a cupboard and found some crackers to take with us. It was going to be a hard day, and although I knew the people at the church would probably bring snacks and refreshments for us, I wanted to be sure that I had a full stomach on which to work. I wouldn't realize the true meaning of hunger, however, until my day of work on the postal workers' food drive was done. My mother helped out at various times throughout the year at volunteer events in the community. When I was born, she passed a few of her traits to me, and I, too, became interested in volunteering. I spent a day each summer going down to my grandmother's church and helping out with a summer fair by selling items and collecting money for the church. As Mom started to talk about the postal worker's food drive for the local food cupboard, I was anxious to help out in my own community. The idea fascinated me, helping out my neighbors by collecting and dispersing food to where it was needed. I knew I'd feel just like Robin Hood†¦taking from the rich and giving to the poor. In this case, though, all of the process was voluntary. My impression of hunger and starvation was limited in the past to the memorable television commercials for UNICEF and the children's funds around the world. I never realized that hunger might occur closer to home. I certainly never thought that anyone within my neighborhood or my town would be hungry. Mom drove us to where the food cupboard was located, at the Congregational church. As I entered in to the large meeting room downstairs at the church, I was met by around eight smiling residents of our town. A few of them were older ladies; a couple of them were middle-aged men. I would come to know them better as my visit elapsed at the church. I was unsure and a bit nervous at first. I hadn't visited the church since my elementary grades during which I participated in a weeklong summer Bible school. I... ...t to help out my neighbors. But a part of me still housed despair. Most of this food would be used by the next food drive in about six months. I could only compare it to when I was a child, seeing an ambulance rush by my house; I wasn't sure whether to think that someone was hurt or that someone was helping. Now I wasn't sure if I should think of the suffering person or the people who helped by donating food. My hope was that the people needing help would find it partially because of my assistance. But I knew there would be some that, for some reason or another, declined to have the assistance. They were still suffering. By the end of the day, my view of hunger had completely changed. After my help, I sometimes wondered about the people who really needed food whenever I was grabbing a bite to eat. I sometimes worried about the people who were too afraid or too proud to seek help. And I sometimes thought about the time when I was the driver of the ambulance. From then on, I searched through the cupboards to find extra cans that we could donate during the food drives. And when it was ten in the morning and I needed something to eat, I reconsidered how hungry I really felt.

The Pigman Essay

The 40 Developmental Assets are the positive building blocks that young people use to guide them to a successful future. These assets can even be seen in fictional book called The Pigman by Paul Zindel. One of the 40 developmental assets thats in The Pigman is â€Å"responsibility†. Responsibility is the ability to act or decide something by yourself. Responsibility or lack of responsibility is seen in The Pigman when John and Lorraine take responsibility for their lies, when John and Lorraine throw a wild party at Mr. Pignati’s house, and how John always drinks and smokes.One way responsibility is seen in The Pigman is when John and Lorraine take responsibility for their lies. Well, at the beginning of the book, we learned that John is a frequent liar. He lies to get out of trouble. So he told Mr. Pignati that they are charity workers. Later on in the book, John reveals that him and Lorraine aren't adult charity workers and says, â€Å" We just had to be honest with y ou because we like you more than anyone we know. † (Zindel 102) That quote showed that John was really starting to care for Mr.Pignati and he didn’t want to live his life on one big lie. In this way, John and Lorraine took responsibility for their lies they created. One way responsibility isn’t seen in The Pigman is when John and Lorraine threw a wild party at Mr. Pignati’s house. One day out of the blue when John, Lorraine and Mr. Pignati were hanging out, Mr. Pignati had a terrible heart-attack and was rushed to the hospital. John thought it was a great idea to throw a party so he said, â€Å" Don’t you think Mr. Pignati wants us to have a social life? He smiled, his great big eyes glowing. (130) That quote doesn't relate to responsibility because during the party many things happened that John and Lorraine didn’t anticipate to happen. Music was played so loud, you could hear it outside. Also Mr. Pignati’s precious pigs got destroye d and his dead wife Concetta's dress got ripped and ruined. In this way, John and Lorraine didn’t take responsibility for their actions. Another way responsibility isn’t seen in The Pigman is how John is always smoking and drinking. Well, in the beginning of the book, Lorraine was talking about John’s dad and how he was a heavy drinker until he developed sclerosis of the liver.And she thinks he influenced John to do these things at a very young age. Lorraine is always trying to show John what drinking and smoking can do to you. Once Lorraine showed John the book on Sigmund Freud and said, â€Å"I almost had him convinced that smoking was an infantile, destructive activity when he pointed out a picture of Freud smoking a cigar on the book's cover. † John replied, â€Å"If Freud smokes, why can't I? † Then Lorraine said, â€Å"Freud doesn't smoke anymore†¦. He's dead. † (8) This quote shows that John really doesn’t care that smokin g and drinking can do terrible things to your body.He doesn’t care because he drinks and smokes to escape his problems. In this way, John isn’t taking responsibility for his own health. One of the 40 Developmental Assets thats seen in the novel The Pigman by Paul Zindel is â€Å"responsibility†. When John and Lorraine take responsibility for their lies, when John and Lorraine throw a wild party at Mr. Pignati’s house, and how John always drinks and smokes are some ways The Pigman shows characters acting responsibly and characters acting irresponsibly. Its clear when people act responsibly things turn out much better for everyone.

All About Argentina

Argentina, country in South America east of Chile and west of the Atlantic Ocean. The area of the country is 2,780,400 sq km. The Argentine government, however, claims a total area of 2,808,602 sq km including the British-administered Falkland Islands, or Islas Malvinas, and other sparsely settled southern Atlantic islands. The capital and largest city is Buenos Aires. The population is 35,797,981 million. Largely urban and of European origin. Spanish is the official language. Roman Catholics make up more than 92 percent of the population. Judaism, Protestantsim, and a number of other Christian and non-Christian religions are practiced. By law, the president and the vice-president must be Roman Catholic. Physical Geography The Andes Mountains line Argentina's western edge, forming the boundary with Chile. The highest peak, Aconcagua, stands 6960 m. Gently rolling plains extend eastward from the base of the Andes and descend gradually to sea level. The Pampas, treeless plains that include the most productive agricultural sections of the country, occupy much of this region. Patagonia, south of the Pampas, is dry and desolate. At the southern tip of Argentina lie the islands of Tierra del Fuego. Climate Argentina has a temperate climate, except for a small tropical area in the northeast and a subtropical region in the north. The higher Andes and Patagonia are cold, while in most coastal areas temperatures are moderated by the ocean. Rainfall is high in the north, and quite low in the south. Argentina's main natural resource has been the agricultural land of the Pampas. Productive offshore deposits of petroleum and natural gas are also important. Education and Culture Primary education is free and compulsory from ages 6 to 14. In 1996, 5.3 million pupils attended primary schools; 2.6 million attended secondary and vocational schools. Enrollment in higher education institutions was 1.1 million in 1994. Argentina†s literacy rate of 96 percent is one of the highest in Latin America. Argentina has rich literary and musical traditions. The tango, a widely popular ballroom dance, originated here. Economy Argentina ranks among world leaders in the production of grain and cattle. Wheat is the most important crop, and wool is a major export. Coal and petroleum production, once relatively small-scale, has increased significantly in recent years. The unit of currency is the nuevo peso argentino (1 peso equals U.S.$1; 1996). Government Executive power is held by a president elected to no more than two consecutive four-year terms. The National Congress consists of the 257-member House of Deputies and the 72-member Senate. Deputies are elected directly to four-year terms, and each of the country's 23 provinces elects three senators to six-year terms. In each province, the largest nongoverning party chooses one of the three senators. History Along with numerous nomadic tribespeople, two main indigenous groups existed in Argentina before the European arrival. In the northwest, near Bolivia and the Andes, was a people known as the Diaguita, while further south and to the east were the Guarani. Together the Diaguita and the Guarani constitute the origins of permanent agricultural civilization in Argentina, both developing the cultivation of maize. The Diaguita are also remembered for having successfully prevented the powerful Inca from expanding their empire into Argentina from what is now Bolivia. It was perhaps a legacy of this successful resistance that enabled the native peoples of Argentina to carry on a prolonged campaign against colonization and rule by the Spanish. The first Spaniard to land in Argentina, Juan de Solis, was killed in 1516, and several attempts to found Buenos Aires were stymied by the local inhabitants. Inland cities were more successful, and it wasn't until the late 16th century that Buenos Aires was securely established. Despite its military success, indigenous resistance was inexorably weakened by the introduction of diseases from Europe. Even after the native threat became minimal, however, Argentina was still mostly neglected by Spain, which was more interested in developing Lima and the riches of Peru. Buenos Aires was forbidden to trade with foreign countries, and the city became a smuggler's haunt. The restrictive trade policy probably did little to endear Spain to the colonists. The British attacked Buenos Aires in 1806 and 1807, as Spain's had come under the control of Napoleonic France. The colony managed to repulse Britain's attacks without any assistance from their mother country, an act of strength that no doubt helped to foster the region's growing sense of independence. When the French captured Spain's King Ferdinand VII, Argentina fell completely under the rule of the local viceroyalty, which was highly unpopular. The locals rebelled against the viceroyalty and declared their allegiance to the captive king. By 1816, the deep division between Argentina and its mother country had become quite apparent, and a party of separatists decided to declare the country's independence. One of the new patriots, Jose de San Martin, crossed the Andes and captured Lima. Along with Simon Bolivar, Martin is credited with breaking the shackle of Spanish rule in South America. Early independence in Argentina was marked by an often bitter struggle between two political groups: the Unitarists and the Federalists. The Unitarists wanted a strong central government, while the Federalists wanted local control.