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PAKISTAN BUSINESS REVIEW JULY 2010

Pakistans Balance of Payments Prospects and Policy Proposals Motif


PAKISTANS BALANCE OF
PAYMENTS PROSPECTS AND
POLICY PROPOSALS
M. Ashraf Janjua
Institute of Business Management, Karachi
Analysis of current account balance of Pakistan
As we look at the accounts on a long term basis we find
that since FY03, the trade balance in goods is in continuous
deficit and the deficit is ever increasing. It reached a maximum of
US $ 14,970 million in the year FY08 mainly because of increase
in oil prices (see next page).
The world economic slowdown and reduction in oil
prices brought down the trade deficit but still it remained
unreasonably high as compared to the potential of the economy.
The decreased deficit of the services account is mainly
attributable to the lower payments on account of transportation
because of lower imports, and the other major cause being the
lower payments for other business services. If we look at the
income account, there is an ever increasing debt burden.
Although foreign investment both direct and portfolio is
attractive investors want return on their investment to stay in
business. Under the present circumstances it is a pipe-dream to
produce a positive income account. The only component of a
surplus is current transfers from workers abroad to their families.
As a rule of thumb, when a country is in a crisis, creditors avoid
lending any money or alternatively they also charge for the risks
involved. Such a situation gives rise to a vicious circle where a
country has low productivity, low exportable surplus, low
reserves for payment, low investment from abroad, low capacity
to borrow on soft terms and so on. In order to get out of this
vicious circle a country has to make extraordinary efforts. With
ever increasing current account deficit, we are facing difficulties
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Motif
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PAKISTAN BUSINESS REVIEW JULY 2010
Pakistans Balance of Payments Prospects and Policy Proposals
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PAKISTAN BUSINESS REVIEW JULY 2010
Pakistans Balance of Payments Prospects and Policy Proposals Motif
in controlling the budgetary deficit for various reasons, and there
is a lack of good governance. Though government has taken
several steps on its own and also as a part of IMF conditionality
more steps are needed to control expenditure and enhance
government revenues.
The main cause underlying our balance of payments
difficulties is our inability to increase value addition to the raw
materials we export. The main underlying reasons are the high
cost of energy for the production of tradables, poor infrastructure,
and low capital investment in the modernization of the machinery
and equipment to generate internationally competitive products.
Heavy investment, strategic planning and above all the
determination of the government and the nation are required for
gaining a competitive edge in the global markets in order to achieve
a trade surplus. It is worth mentioning that due to certain factors,
like low production, low quality, income inelastic demand for our
products and weak image of the Pakistani traders in the global
market, Pakistan has not been able to utilize its quota in the United
States and the European Union (average quota realization has
been around 70 %) in the less liberal scenario of the past
1
. We
need to explore the area of services where we can perform better
with relatively little investment and easily acquire competitive
advantage over our rivals.
1
WTO Regime and Its Impact on Pakistan, Syndicate No. 1o,
Civil Services Academy, Lahore, 31
st
Common Training Programme
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Motif
PAKISTAN BUSINESS REVIEW JULY 2010
Pakistans Balance of Payments Prospects and Policy Proposals
Services are the fastest growing sector in the global
economy, constituting more than 60% of GDP of many countries.
Services are the largest and most dynamic component of both
developed and developing country economies. Services
currently account for over 60percent of global production and
employment. Services, such as telecommunications, banking,
insurance and transportation are strategically important for
enhancing overall economic efficiency, performance and growth.
With services liberalization we may access quality service
providers and as a labor-abundant country we can develop
capabilities to capitalize our human resource with massive training
and development programs and capacity building initiatives. This
would generate savings, faster innovations enhance
transparency and predictability with technology transfer and
optimum utilization of the work force.
The following factors seem to be affecting our exports:
i. Law and order and war on terror affecting, among
other things, the inflow of foreign direct investment
(FDI)
ii. Power shortage also affecting investment flows, both
foreign and domestic.
iii. Erosion of competitiveness because of the increase in
unit prices of imports used as inputs for exportables.
iv. On the demand side constraints are.
a. Recession in the world economy although
now there are some indications of an upturn.
b. Dependence on raw material exports with low
value added.
c. A number of other countries have competitive
edge in case of a number of commodities and
services.
d. We have not made any visible progress in
diversification of our exports mix.
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Pakistans Balance of Payments Prospects and Policy Proposals Motif
Around 30-35% of our imports are composed of crude/
furnace oil. We have to spend substantial amount on import of
edible oil, chemicals and chemical products for manufacturing
and agriculture, import of fertilizers, sugar and even wheat.
Workers remittances are a big part of net transfers and
it is this component that is largely supporting the balance of
payments along with other private and official transfers. As our
economy has the tendency of an increasing current account deficit,
we are facing difficulties in financing this deficit. War on terror
and expenditure on law and order is increasing our budget deficit
and building pressures on our external resources because we are
not generating enough public revenue. As a result the cost of
borrowing is increasing; FDI inflows are drying up and exerting
further pressures on cost of external financing. Our reserves have
mainly been built on borrowing from the IMF.
Policy Proposals
Balance of payments problems may be resolved by
taking the following steps:
i. Efforts should be made to restore law and order and
conclude the countrys war on terrorism. Both these
factors are expected to pave the way for increase in
production and exports. Also, these improvements
should have salutary effects on FDI and tourism inflows.
ii. Increase in FDI should lead to inflow of advanced
technology, expansion in services and growth in
production
iii. Inflow of FDI should also lead to capacity building in
human resource sectors with healthy effects on
production. Even if skilled people move abroad, that
should lead to expansion in home remittances.
iv. In addition to improvement in law and order, visible
progress shoul d be made i n good governance:
particularly transparent and timely decision making,
monitoring of efficient implementation and setting up
effective accountability mechanisms.
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Pakistans Balance of Payments Prospects and Policy Proposals
v. Control of law and order situation will give a boost to
our stock exchange and consequently lead to an
increase in foreign portfolio investment.
vi. The quality of social and physical infrastructure should
be improved
vii. Alternative energy resources should be developed,
leading to enhanced production including exportable
surplus with increase in competitiveness
viii. There should be improvement in macroeconomic
stability, particularly the containment of inflation to a
modest level and keeping the Pakistan Rupee
competitive in the international market (in terms of
REER)
ix. Serious efforts are needed to diversify our exports with
emphasis on the services sector, dairy products, fruit
and vegetables and labor intensive segments of small
scale industry.
x. In addition to diversification of exports there is a need
to revisit the direction of trade and exploiting untapped
markets (including those in Africa and Latin America)
The long term sustainable level of the balance of
payments deficit depends on two fundamental variables: (1) the
ratio of foreign savings to investment and (2) growth in foreign
exchange earnings from exports of goods and services, workers
remittances and other private transfers. Depending on these two
variables, sustainable annual current account balance of
payments deficit could fall anywhere in the range of 2-3% of
GDP. Hence, there is need for developing guidelines and a
framework which will keep the current account balance of
payments deficit at sustainable levels taking into account the
gap between savings and investment and the growth in foreign
exchange earnings. Consideration may be given to the following
guidelines:
Establish a ceiling for the share of foreign savings in
total investment to ensure that large balance of
payments deficits do not finance consumption and that
the country doesnt become over-reliant on external
financing. Various empirical studies suggest that foreign
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Pakistans Balance of Payments Prospects and Policy Proposals Motif
savings should not exceed 20% of total investment in
the medium term and over the long run should stay
within the range of 12-15%.
Place limits on total external debt and foreign investment
(debt and equity) servicing obligations in relation to
total foreign exchange earnings just as the Fiscal
Responsibility and Debt Limitation Act places limits on
public debt in relation to GDP. The purpose should be
to ensure that the net debtor position of Pakistan in
relation to the outside world has a reasonable
relationship to the capacity to service foreign debt and
investment obligations treating total foreign exchange
earnings as a proxy for repaying capacity.
Relate the future build-up of total investment of income
payments to future foreign exchange earnings and
transfers. This guideline will make it possible to take
into account not only the size of debt and equity
obligations but also the interest rate on external loans
and the rate of return on foreign investment. At present,
total foreign investment income payments are around
9-10% of total foreign exchange earnings and transfers.
It appears desirable to maintain this percentage at less
than 10 in the medium term.
The above guidelines still leave open the question of
balance between equity and debt to meet a given
balance of payments gap. During the last few years
Pakistan has made some moves to generate equity
financing. However, the last two years have witnessed
a reversal of that strategy. Hence, it is vital that in the
medium term a reasonable ratio is maintained between
gross debt and equity flows, say 1:2. In other words
only about one third of the new foreign obligations
should be in the form of external debt.
Pakistan badly needs foreign investment to supplement
its own resources to upgrade technologies and to assist
in expanding and diversifying exports. The Board of
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Pakistans Balance of Payments Prospects and Policy Proposals
Investment (BOI) needs to gear up its efforts to attract
direct foreign investment in export related industries and
in the energy sectors.
It seems that competitive pressures for Pakistans textile
and clothing exports (64% of exports) arising from the
phasing out of the Multifibre Arrangement (MFA) were
not anticipated fully and new investments on the scale
required to move up the value chain have not been
forthcoming. The textile industry, thus, needs to adjust
to the realities of the world market and restore its
competitiveness through enhancing productivity. The
structural problems characterizing Pakistans textile and
clothing sector cannot be solved without major
investments in both plant and equipment and human
skills, investments in there areas are not taking place at
the required scale.
The government has already met the textile industry at
least half way largely through credit subsidies. The textile
industry needs to adjust to the realities of the world
market and must restore its competitiveness mainly
through enhancing productivity. Conceptually, any
subsidy in support of textile exports where international
prices are falling is not a good option. The fact that
Pakistani textile exports are dominated by cloth and yarn
while etc in the world clothing imports that are
expanding faster is a handicap which cannot be easily
addressed by further cash subsidies.
Pakistans export sector, in general, is faced with
structural constraints e.g. extremely narrow export base,
low unit value exportables, lack of competitiveness, lax
quality control etc. Hence, any future export growth
strategy will have to be premised on structural solutions.
Any cosmetic measures to boost exports might yield
some marginal increases but would in no way address
the root causes of the problems afflicting the export
sector.
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PAKISTAN BUSINESS REVIEW JULY 2010
Pakistans Balance of Payments Prospects and Policy Proposals Motif
The government needs to carefully examine the
adequacy of the existing incentive regime for Pakistans
exports.
The government also needs to review the overall
production structure of the country to determine
whether the existing tariff regime encourages
production for domestic consumption or for exports.
There is also a dire need to re-orientate our exports
strategy from the goods sector to services exports.
Services are a fast growing sector of the Pakistan
economy and their export potential needs to be tapped
through seeking enhanced market access.
The government should also assess the efficacy of
subsidies as a tool of export promotion and in this
regard an analysis ought to be made of the impact of
R&D support being provided to textile garments. The
evidence so far leads to the conclusion that financial
support has not helped expand value of textile exports.
For the long run an ambitious program of increasing
Pakistans market share in world trade which at present
is a paltry 0.15% is needed, but this cannot be achieved
without massive efforts to diversify exports and make
export development a central plank of our policy. Despite
the fact that Pakistan has liberalized its trade
substantially since the late 1980s (trade GDP ratio
changed to 0.5 during liberalized period from 0.1 during
the pre-liberalized period) it shows a much lower
response to trade liberalization in terms of exports
growth compared to its competitors and regional
counterparts (India; 0.4%; China 1.3%; Bangladesh
0.6%; Sri Lanka 0.3%; Malaysia 2.7%; Turkey 0.8% and
Iran 0.1%).
Policy attention needs to be focused on non-textile
manufactured exports, the new promising areas of IT
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PAKISTAN BUSINESS REVIEW JULY 2010
Pakistans Balance of Payments Prospects and Policy Proposals
exports and agricultural and livestock products areas
where Pakistans world presence is minimum.
In order to broaden the export base, Government policy
must specially target foreign investment in
manufacturing, aimed both at improving technology and
productivity of promising export sectors.
A cabinet level committee to be chaired by the Prime
Minister could help improve much needed policy
coordination and implementation of export and industrial
policies as well as close monitoring of exports.
Import of goods management with competitive
alternatives, exports oriented imports, rails, roads
facilities and other transport facilities, reducing wear
and tear leading to save imports on parts, domestic
savings and lower dependency on external resources
Imports of services management by developing our HR
capacity for earning of foreign exchange through
various modes of supply of services or otherwise
through migration of HR and earning transfers through
deploying our resources on more remunerative jobs.
We need to increase domestic savings and investment
and deploy our resources for financing a competitive
debt and equity mix so that we move to sustainability in
the medium term
Government policies need to be adjusted to ensure social
safety nets for the poor to protect the welfare of those
who are likely to be displaced in the transition period by
the process of trade liberalization and globalization more
generally.
Skill development and training schemes must be
instituted so that any displaced workers can be quickly
retained, relocated and reabsorbed in the labor force. It
is important to keep inflation in check in order not to
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Pakistans Balance of Payments Prospects and Policy Proposals Motif
lose the gains from trade liberalization and other policy
reforms that have been undertaken.
Reduced tariffs, particularly on imported raw material,
imports, components and machinery can help boost
exports. However, other complementary policies are also
required. Meanwhile, with capacity constraints being
reached in the economy and inflation remaining high,
overestimating potential growth of the economy in the
short term runs the risk of letting demand grow at a rate
that cannot be sustained, which would make it difficult
to contain inflation.
Policy coordination on exports needs substantial
improvement. The responsibilities for export promotion
are very dispersed among many agencies, including the
Ministry of Commerce, the Trade Development Authority
(a very good idea), the Ministry of Industry, the Textiles
Ministry, etc. A cabinet-level committee could help by
closely monitoring exports and speedily resolving policy
and implementation issues.
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PAKISTAN BUSINESS REVIEW JULY 2010
Research Process Capability Analysis for Non Normal Data
PROCESS CAPABILITY
ANALYSIS FOR NON
NORMAL DATA
Ejaz Ahmed
College of Computer Science and
Information Systems, Karachi
Suboohi Safdar,
Department of Statistics
University of Karachi, Karachi
234
Research
Abstract
Process capability analysis refers to the normal behavior of a
process when operating in a state of statistical control. Drives to
continuous improvement are usually associated with the process
capability measures. Typically we assume that the processes
follows normal probability distribution ensuring a high
percentage of the process measurements falling between
3 t
of the process mean and the total spread amounts to about
6
variations. This article describes the estimation of
pk p
C an C d ,
commonly used process capability indices (PCI), in case of non-
normal data using the characteristics of Weibull distribution.
Earlier work of Lovelace and Swain (2009) has been extended for
this distributional assumption. Quantiles are estimated by
probability plotting technique and then control limits are obtained
to determine whether the process is in statistical control or not.
Percentage points of the fitted distribution have been used to
compute under the assumption of Weibull distribution. We have
used Delta method (Stuart and Ord, 1987) to estimate parameters
and their standard errors. These estimated parameters are then
used to develop new PCIs. Average PCI values are given along
with the standard errors.
Keywords: Process capability, Estimation, Non normal Data,
Weibull Distribution
JEL Classification: C1160
Research
PAKISTAN BUSINESS REVIEW JULY 2010
Process Capability Analysis for Non Normal Data
1. Introduction
Process capability refers to the inherent ability of a
process to produce homogeneous parts for a sustained time
period under given conditions. Kane (1986) described six areas
of applications of capability indices that include presentation of
non conforming products, measuring continuous improvement,
communication, prioritization, identifying direction for
improvement and auditing a quality system. Deleryd, et. al. (1999)
identified six critical factors for successful implementation of
process capability studies. Tsim (1997) identified four key
objectives of PCI including, among others the ability to compare
different processes (unit less measure) and to identify the
closeness to target (Taguchi Loss Function concept).
Process capability measures the variability of a process
relative to its specification limit based on three assumptions,
namely, (i) the process is itself in control, (ii) target value and
specifications of a quality characteristics are specified, and (iii)
the process measures quality characteristics that follow a normal
distribution.
2. Process Capability Indices- Review
The most commonly used PCI, named
p
C Index,
measures the potential process performance (process
consistency) which only reflects the consistency of the product
quality characteristic.
p
C measures process spread related to
specification limits and hence the location of process mean is
not considered. Assuming a quality characteristic to follow
( )
2
, N with upper and lower specification limits USL and
LSL, this measure is defined as ( ) . 6 / LSL USL C
p
The
expected proportion of nonconforming products assuming
( ) 2 / ) USL LSL + can be obtained as
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PAKISTAN BUSINESS REVIEW JULY 2010
Research Process Capability Analysis for Non Normal Data
Where ( ) . denotes standard normal cumulative distribution
function and 2 / ) ( LSL USL d . Constable and Hobbs
(1992) defined capable as percentage of output within
specification while Montgomery (2001) recommended minimum
C
p
equals to 1.33, for an existing process, and 1.50 for a new
process. Small values of C
p
are bad sign but large values do not
guarantee of acceptability in the absence of information about
the values of the process mean.
As is obvious
p
C depends on the true standard
deviation (SD) of the process which is usually unknown. It
therefore forces to use an estimator of the SD which then results
in estimated PCI, based upon sample observations. The estimated
PCI given as is evaluated using
suitable unbiased estimator of , such as (Montgomery,
2001). An important ratio is quite frequently used as it
yields the statistics. This relationship
is useful in constructing confidence intervals or testing
hypotheses. Kane (1986) introduced another PCI known as
p k
C
which depends on both mean and standard deviation of the
236
( ) 6 /

LSL USL C
p

2
d R
p p
C C

( )
p n p
C n C
1
]
1



2
1
1


( ) ( ) ( )
( )
[ ]

d
USL LSL
LSL
LSL X
USL
Z p
LSL
Z
USL X p LSL X p E

,
_

,
_


<

,
_


> +
,
_


<
> + <
2
2
2
2
LSL USL
2
Pr 2
Pr
Pr
..........1
Research
PAKISTAN BUSINESS REVIEW JULY 2010
Process Capability Analysis for Non Normal Data
process to deal with violation of centering assumptions and to
measure the actual capability performance. Mathematically this index
is described as .
Obviously, . Under
the assumption of normality exact confidence interval
for involves the joint distribution of two random variables
following non-central t-distribution. Nagata and Nagahata (1992)
showed that approximate confidence interval
for is given by,
These measures are unit less and permit comparison amongst
hundreds of process emanating from a whole range of production
processes and industries. However the methodology and
inferences about the process capability indices do not remain
too straight forward in the absence of normality assumption.
Next sections of this article will discuss the PCIs when the
underlying distribution is skewed.
3. Case under Non-Normality
Numerous authors have discussed the construction and
interpretation of PCIs under non-normal process behavior. Chen
at al. (1988) proposed PCIs with distribution free tolerance
intervals to estimate while Clement (1989) and McCormack
et. al. (2000) proposed empirical non-normal percentiles to
evaluate both C
p
and C
pk
. Lovelace and Swain (2009) discussed
the construction of C
p
and C
pk
assuming process behavior
following a Log-Normal distribution. They used 99.875
th
and
0.135
th
quantiles to estimate both PCIs. Their proposed capability
indices are given below,
237
( ) ( ) { } 3 / , 3 / LSL USL Min C
pk

( ) ( ) { }
p pk
C d USL LSL d C / 2 / +
pk
C
( ) % 100 1
pk
C
) 1 ( 2

9
1
2 /
2

+ t
n
C
n
pk
pk
Z C

PAKISTAN BUSINESS REVIEW JULY 2010


Research Process Capability Analysis for Non Normal Data
Chen and Chen (2004) compared these two process
capability measures using four approximating methods, including
bootstrap estimators. Since skewed distributions are not too
common in production or service industries comparatively smaller
proportion of literature is devoted to address PCIs in non-normal
behaviors. Lovelace and Swain (2009) discussed both capability
indices assuming process data following a Log-Normal
distribution. Pal (2005) assumed process distribution to follow
Generalized Lambda distribution and evaluated PCIs. We intend
to discuss the construction of PCIs when the process distribution
follows a Weibull distribution. Interested readers are recommended
to refer to Munechika (1992), Pyzdek (1992), Kotz and Johnson
(1993), Somerville and Montgomery (1996), and Pal (2005) for
further details.
4. Process Capability Index- Weibull Distribution Case
Weibull distribution was originally proposed to describe
data from life testing commonly used in reliability, fatigue and
survivor analysis. Weibull distribution is a very important
distribution and has been widely used in studies related to, for
example, earthquakes, flood, breaking strengths, and reliability
under censored or truncated situations. However parameter
estimation is not easy especially in case of three parameter Weibull
distribution. Quantiles are recommended to be used while
estimating parameters. In this article we used delta method (Stuart
and Ord, 1987) to find the standard error of the estimates. Later
these estimated standard errors are used to construct our proposed
process capability index.
238
{ }
00135 . 0
99865 . 0
00135 . 0 99865 . 0
.
X Median
LSL Median
C
Median X
Median USL
C
where
C C Min C
X X
LSL USL
C
pl
pu
pl pu pk
p

Research
PAKISTAN BUSINESS REVIEW JULY 2010
Process Capability Analysis for Non Normal Data
239
The three-parameter Weibull distribution probability
density function is given by
parameter Weibull distribution by assuming the location
parameter equal to zero. Many distributions are special cases
of Weibull distribution, for example exponential distribution is a
transformed form of Weibull distribution with shape parameter
.
We consider the two-parameter Weibull distribution with
probability function given as ,
where x>0. A linear regression model was developed using the
cumulative distribution function, as described below.
The last expression (equation 2) is equivalent to
simple linear regression model, , where
Least square estimators of both parameters were determined and
standard errors were obtained using the Delta method (Stuart
and Ord, 1987) as given below:
( )
1
1
]
1

,
_



,
_

x x
x f exp
1
where , > x 0 , 0 , 0 > > > . We may derive the two-
1
( ) ( ) [ ]
( ) ( ) ( ) ( ) { } [ ]
( ) ( ) ( ) ( ) { } [ ]


x F x
x F x
x x F
+


1 ln ln ln ln
1 ln ln ln ln
exp 1
e z y + +
1 0

( ) ( ) ( ) ( ) { } [ ]
x F x y 1 ln ln z and , 1 , ln , ln
1 0


( ) [ ] ( ) [ ]
( )
( ) ( ) ( ) ( )
( )
) 4 (
1 1 1 1 1

) 3 ( ) exp( ) exp( ) exp( ) (


2
2
4
1
1
4
1
1
2
2
1
1
2
1
2
2
2
2
0 0
2
0 0
2
0

1
1
]
1

1
]
1

,
_

1
]
1

,
_

1
1
]
1

,
_


1
]
1

,
_


1
1
]
1


1
]
1

y y
V V V V
y y n
y
V V V
i
i
i
......2
( ) ( ) [ ]

x x F exp 1
PAKISTAN BUSINESS REVIEW JULY 2010
Research Process Capability Analysis for Non Normal Data
240
5. Simulation Results and Newly Proposed PCI
The results of this section are based on a simulation study that
we conducted to determine the effectiveness of our proposed
measure of process capability. Details of the simulation procedure
is listed below.
1. Fifteen samples each of size 30 were drawn randomly
from a Weibull distribution with different scale and
constant location parameters.
2. Regression model was fitted to equation (2) and
estimators and standard errors for ( ) ln and
( ) 1 were obtained.
3. Variance of ( ) ln and ( ) 1 were obtained while
fitting least square regression model.
4. Delta method was used to determine variances of
and . Delta methods says that if ( ) g f

then
( ) ( ) [ ] ( ) [ ] Var g Var
2

.
5. Process capabilities ( ) 6 /

LSL USL C
p


were
estimated, replacing


with standard errors obtained
in step 4.
6. Averages and standard errors of process capability
indices are reported in Table 1.
Research
PAKISTAN BUSINESS REVIEW JULY 2010
Process Capability Analysis for Non Normal Data
241

Table 1: Table showing PCIs based on Weibull Parameters


Alpha Beta se(Alpha) se(Beta) Cp(Alpha) Cp(Beta)
2 3 Mean 1.678 81.970 0.140 0.001 1.225 279.682
SE 0.141 214.749 0.024 0.001 0.219 125.525
3 3 Mean 2.417 144.614 0.327 0.000 0.761 69807.179
SE 0.239 248.027 0.458 0.000 0.208 254108.036
4 3 Mean 3.287 250.767 0.749 0.000 0.551 104157.087
SE 0.356 753.433 0.990 0.000 0.374 394228.414
5 3 Mean 3.375 104.995 0.875 0.000 0.451 14053.322
SE 0.315 305.475 1.021 0.001 0.251 53594.197


Control charts for with
6
variations can be easily plotted
constructing ( ) [ ] 3 se UCL + and
( ) [ ] 3 se LCL . Table 1 reveals that the estimated
values for are highly deviated from the original parametric
values. The proposed method is recommended when the
process behavior follows a Weibull distribution and the
characteristic of interest is .
PAKISTAN BUSINESS REVIEW JULY 2010
Research Process Capability Analysis for Non Normal Data
242
6. References
1. Chan, Lk., Cheng, S. W., and Spiring, F. A. (1988). A New
Measure of Process Quality:
pm
C
. Journal of Quality
Technology, 20, 162-175.
2. Chen, J. P. and Chen, K. S. (2004). Comparing the
capability of two processes using Cpm. Journal of Quality
Technology, 36, 329-335.
3. Clements JA (1989) Process Capability Calculations for
non normal distributions. Quality Progress, 95-100
4. Constable, G. K and Hobbs, J. R, (1992), Small Samples
and Non Normal Capability, Trans, ASQC Quality
Congress 1-7.
5. Deleryd, M., Deltin, J. and Klefsjo, B. (1999). Critical
factors for successful implementation of process
capability studies. Quality Management Journal, 6, 40-59.
6. Kane, V. E. (1986), Process Capability Indices, Journal
of Quality Technology, 18, 41 -52.
7. Kotz, S. and Johnson, N. L. (1993), Process Capability
Indices, London: Chapman & Hall.
8. Kotz, S. and Johnson, N. L. (2002). Process Capability
IndicesA Review, 19922000. Journal of Quality
technology, 34, 2-19.
9. Lovelace, C. R. and Swain, J. J. (2009). Process capability
analysis methodology for zero bound, non-normal
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capability indices using generalized lambda distribution.
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PAKISTAN BUSINESS REVIEW JULY 2010
Cross Validation of Ryff Scales of Psychological Well-being Research
CROSS VALIDATION OF
RYFF SCALES OF
PSYCHOLOGICAL WELL-
BEING: TRANSLATION INTO
URDU LANGUAGE
Sadia Aziz Ansari
Department of Social Science
College of Business Management, Karachi
244
Abstract
The present study aimed to investigate the structural validity of
an Urdu translation of 54- items Ryff scales of psychological
well-being including; (six sub-scales: self-acceptance, positive
relations, autonomy, environmental mastery, personal growth
and purpose in life). Analyses were based on data from 261 men
and women, with a mean age of 25.64 yrs between 1860 years.
The calculated internal item correlation coefficients of the
translated scales were Cronnbachs alpha= (0.853), and
standardized item alpha= (0.855) significantly higher than the
original Ryff scales. Besides confirming previously reported
findings correlation among six subscales range between (r= 0.57
to 0.70). The present findings demonstrate the adequacy of the
Urdu version of the Ryff scales as instrument for assessing
psychological well-being among males and females in Karachi.
Keywords: Psychological well-being; Ryff scales; Urdu
translation.
JEL Classification: Z0000
Research
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PAKISTAN BUSINESS REVIEW JULY 2010
Cross Validation of Ryff Scales of Psychological Well-being
Subjective Well-being
Positive psychology is growing rapidly and has caught
attention of psychological research specifically on what makes
us happy, the pursuit of happiness, the strengths and virtues
that enable individuals and communities to thrive, and how we
can lead more fulfilling, satisfying lives.
To psychological researchers, happiness is a life
experience marked by a preponderance of positive emotion.
Feelings of happiness and thoughts of satisfaction with life are
two prime components of subjective well-being (SWB).
The term
1
SWB refers t o a broad cat egory of
phenomenon that includes peoples evaluations of their lives,
emotional responses, domain satisfactions, and global judgments
of life satisfaction. Such an evaluation is often expressed in
affective terms; when asked about subjective well-being,
participants will often say, I feel good (Schwartz & Strack,
1999).
Structure of Subjective well-being
One goal of researchers who study subjective well-
being (SWB) is to define the key features of the well-being
construct. Literature on SWB reported that it
2
consists of two
distinctive components an
3
affective part and a
4
cognitive part.
1
(Diener et al., 1999: p. 277)
2
(cf. Diener, 1994: p. 106)
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PAKISTAN BUSINESS REVIEW JULY 2010
Cross Validation of Ryff Scales of Psychological Well-being Research
However, clarifying the structure of well-being has
neither been easy nor straightforward as evidenced by the
multitude of conceptual approaches that exist. For instance,
Bradburn (1969) proposed that SWB is composed of two
components, whereas others state that SWB consists of either
5
five components,
6
six components or
7
seven components.
Despite the lack of agreement about the number of
dimensions that compose SWB, a number of investigators agree
that SWB contains a cognitive and an affective component.
8
The
affective component is best understood as a hedonic balance
constituting ones overall emotional tone determined by an
individuals level of positive and negative affect and the difference
between these emotional states (Bradburn, 1969). Further, hedonic
balance is the conceptual basis for the most well known instrument
that measures the affective dimension of well-being
9
The basis of the cognitive component of SWB emerged
from studies examining adaptation to gain and recognise the
contentment, or life satisfaction, approach. The logic behind this
approach is that if one has a favorable evaluation in many life
domains, such an evaluation will lead to an overall positive outlook
on ones life and the experience of higher levels of SWB.
3
affective part, refers to both the presence of positive affect (PA)
and the absence of negative affect (NA)
4
cognitive part is an information-based appraisal of ones life.
5
(Lawton, 1975)
6
(Neugarten et al., 1961; Ryff, 1989)
7
(Reker and Peacock, 1981)
8
8
(Andrews and Withey, 1976; Diener, 1984; Diener and Emmons,
1984; Liang, 1984
8
, 1985; Lucas et al., 1996; Stock et al., 1986).
9
Affect Balance Scale (ABS; Bradburn, 1969).
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PAKISTAN BUSINESS REVIEW JULY 2010
Cross Validation of Ryff Scales of Psychological Well-being
Ryffs Scales of Psychological Well-being
According to Ryff (1989), well-being is not composed
simply of positive affect, negative affect, and life satisfaction;
rather, well-being is best conceived as a multidimensional
construct made up of life attitudes. Based on tenets of humanistic
psychology, with such constructs as purpose in life and
autonomy, Ryff centers attention on normative criteria for mental
health. The result is a means for assessing a persons level of
positive functioning and psychological well-being. Ryff (1989)
created the Scales of Psychological Well-Being (SPWB) based
on an integration of mental health, clinical, and life span
developmental theories. These dimensions are assumed to
measure all aspects of wellbeing and include self-acceptance
10
,
positive relations with others
11
, autonomy
12
, environmental
mastery
13
, purpose in life
14
, and personal growth
15
Ryff, 1989).
Ryff and Keyes (1995) examined the structure of Ryffs six factor
model using Structural Equation Modeling. The model that best
fitted the data was one of six primary factors joined together by
a single higher order factor defined as well-being. Ryff (1989)
also performed factor analysis on the six subscales of the SPWB
and found highest factor correlation between self-acceptance
and environmental mastery (0.76), self acceptance and purpose
in life (0.72).
10
Self-Acceptance = positive evaluations of oneself
11
Positive Relations with others = quality relations with others
12
Autonomy = sense of self- determination
13
Environmental Mastery = capacity to effectively manage ones
life and surrounding world
14
Purpose in Life = belief in a purposeful and meaningful life
15
Personal Growth = sense of continued growth and development
as a person
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PAKISTAN BUSINESS REVIEW JULY 2010
Cross Validation of Ryff Scales of Psychological Well-being Research
Subscales loaded on a general well-being factor with
the remaining four subscales loading on two other factors.
Specifically, personal growth, positive relations with others and
purpose in life loaded on a factor believed to represent new
dimensions of well-being with control (i.e., powerful others,
chance).
Central to this discussion Kozma et al. (1991) reported
that it is important to establish the construct validity of a measure
by examining the extent to which the presumed components
emerge in factor-analytic studies. It is also imperative that the
items making up a measure load on the appropriate factors.
Establishing the construct validity of a measure is one way to
establish the usefulness of a scale. Therefore, the primary aim of
this study is to establish the construct validity of the Ryffs SPWB
54-item (Urdu version).
I t is hypothesis that an Urdu version of SPWB would
validate the construct validity of Ryff scale.
Extensive research exists on the correlation of
demographic and other environmental factors with happiness.
These findings started with Cantrils (1965) study of 23,875 people
in 11 countries, the research of Bradburn (1969) and Campbell,
Converse, and Rodgers (1976) in the United States, and Ingleharts
(1990) analysis of Eurobarometer studies of 16 countries with
over 163,000 respondents. Veenhoven and colleagues (1994) later
reviewed 603 such studies from 69 countries. It is concluded that
demographic and environmental factors affect happiness at
varying levels. Thus, further this study will provide insight on
subjective psychological well-being in Pakistani context.
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Cross Validation of Ryff Scales of Psychological Well-being
Methodology
Ryff Scale of Psychological Well-being (RSPWB)
The Ryff Scale of Psychological Well-Being (RSPWB)
54-item, is a theoretically-grounded instrument that focuses on
measuring six dimensions of psychological well-being: self-
acceptance, personal growth, purpose in life, positive relations
with others, environmental mastery, and autonomy (Ryff, 1989).
Each dimensional scale contains 9 items equally split between
positive and negative items. Items are scored on a 6-point scale
ranging from strongly agree to strongly disagree.
Ryffs scales have been found to correlate positively
with prior measures of well-being, such as the
16
Affect Balance
Scale and the
17
Life Satisfaction Index. However, it is negatively
correlated with measures of depression like
18
Zungs Depression
Scale. Internal consistency coefficients (alpha) for
19
Ryffs six
sub scales range from (0.82 to 0.90).
Translation of Ryff Scale into Urdu
Dr.Carol Ryff, consented the author to translate the scale
into Urdu. Translation from English to Urdu and cultural
adaptation of scale was performed in two steps. The scale was
first translated by a bilingual expert working as assistant
professor; Communication at Institute of Business Management.
In the second step scale was examined by a Native Language
expert working as lecturer at University of Karachi to avoid
syntactic errors in translation.
16
(Bradburn, 1969)
17
(Neugarten et al., 1961)
18
Zungs (1965)
19
(Schmutte and Ryff, 1997).
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Cross Validation of Ryff Scales of Psychological Well-being Research
Sample:
Participants were university students, un/married, un/
employed individuals in the vicinity of Karachi city. Three hundred
participants completed questionnaires for the study. .Thirty nine
questionnaires were excluded for data analysis due to incomplete
responses. Two hundred sixty-one research participants made
up the final sample. The sample contained 111 males and 150
females, whose mean age was 25.43 yrs (SD = 3.76; range: 1848
years) and mean education of 14.22 years (SD = 1.37; range: 10
19 years).
Data Collection:
All respondents were asked to fill the RSPWB 54-item
Urdu Version questionnaire either in groups or individually.
Group administration of RSPWB 54-item was undertaken
at the Institute of Business Management (IoBM), Karachi
Foundation School (KFS) and Meezan Bank. 120 students from
the Freshman Introductory Psychology class at IoBM, 34 teachers
and management staff at KFS and 45 employees from Meezan
Bank were conveniently selected at random to complete the
questionnaire. 68 questionnaires were dispatched to postal
addresses in the vicinity of Karachi and the author received 24
completed questionnaires. The rest of the data was collected by
distributing the questionnaire in the locality of Karachi city.
Results
Demographic profiles of participant suggest that sample
was largely comprised of (73.3%) unmarried and (25.6%) married
individual from general population, with average age of 25.43yrs
between (18-60 years).A large group of respondent were between
17-25yrs of age (38.3%) while others were (19.1%). Educational
qualification of majority of research participant were grouped
into under graduation (Intermediate=28%,A-levels=13%) and (
Masters=31% ).On the other hand, the rest of the participant
250
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PAKISTAN BUSINESS REVIEW JULY 2010
Cross Validation of Ryff Scales of Psychological Well-being
were graduate (20%), professionals such as doctors, Engineers
(05%) and matric (03%). The gender profile of research participant
showed a bit larger female composition (57.6%) than male (42.4%).
The construct validity of RSPWB 54-item was tested
against RSPWBs Urdu Version. Estimated internal item
correlation coefficients of the translated scales were
(Cronnbachs alpha (=0.853), and standardized item alpha=
(=0.855) see table 1. Inter-correlation among six subscales range
between (r=0.57 to 0.70) correspondingly: autonomy and
environment mastery (r=0.54), autonomy and personal growth
(r=0.64), autonomy and positive relation (r=0.45), autonomy and
purpose in life (r=0.34), autonomy and self acceptance (r=0.53),
environmental mastery and personal growth (r=0.58),
environmental mastery and positive relations (r=0.54),
environmental mastery and purpose in life(r=0.47), environmental
mastery and self acceptance (r=0.46), positive growth and positive
relations(r=0.55), positive growth and purpose in life (r=0.42),
positive growth and self acceptance (r=0.46), positive relations
and purpose in life (r=0.48), positive relations and self acceptance
(r=0.38), purpose in life with self acceptance (r=0.51) were
significant at 0.01 level (see table 3). Obtained value suggests
that probability of individual item responses on six subscales
were consistently same with the total responses (See Table 2).
Considerably low inter correlations depicted among
subscale of Autonomy and purpose in life scale
20
and positive
relations and self acceptance scale
21
.This is contrary to Ryffs
six factor model for subjective psychological well-being. It
remains debatable; Do the items intended to measure each
theoretical domain? 54-items are enough to measure subjective
psychological well-being? Is their an overlap of items pertaining
to more than one domain? This may recommend that Subjective
Psychological well-being in Pakistani context comprises of less
than six subscales.
20
Autonomy and purpose in life scale (r=0.34)
21
Positive relations and self acceptance scale (r=0.38)
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PAKISTAN BUSINESS REVIEW JULY 2010
Cross Validation of Ryff Scales of Psychological Well-being Research
However considerably strong inter correlation among
subscales appeared between autonomy and personal growth
(r=0.64), and personal growth and environmental mastery (r=0.58).
These validate Ryffs theory of six factor psychological well-
being measure. Psychological well-being is greater, as majority of
respondent were unmarried undergraduates between 17-25yrs of
age.
22
This also suggests dominate of factors that determine
psychological well-being in Pakistani context.
Ryffs theory of PWB equates autonomy with self-
determination, independence, internal locus of control,
individuation, and internal regulation of behavior. While other
authors assumed that autonomy is related to the western concept
of liberty and freedom. However present study suggests that the
attribute of autonomy also exist in non-western cultures. Such as
item 35 on RSPWB I have confidence in my opinions, even if
they are contrary to the general consensus reveals higher
consistency than other individual items on the subscale of
autonomy (r=0.46).
Likewise, it is reported previously that personal growth
is the ability to grow and expend as a person who is considered
as sense of individuals well-being rather than moral imperative.
23
Even though inter correlation among all six subscales:
autonomy, environmental mastery, personal growth, purpose in
life, positive relations and self acceptance with total subjective
psychological well-being was strongly larger than the individual
items on six subscale. Inter correlation range between (r=0.70 to
r=0.79).
22
A Small but significant correlation between education and SWB
is indicated (Campbell et al., 1976; Cantril, 1965; Diener et al.,
1993). In a meta-analysis of the literature, Witter, Okun, Stock,
and Haring (1984) observed a median effect size of .13.This effect
size was similar to educations influence upon life satisfaction
(.15), morale (.15), and quality of life (.12). Education correlates
with well-being moreso for individuals with lower incomes
(Campbell, 1981; Diener et al., 1993), and in poor countries
(Veenhoven, 1994a);
23
(Bellah et al. 1985, p.47)
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Cross Validation of Ryff Scales of Psychological Well-being
The results of the present study supported the tested
hypothesis. The relationship between RSPWB and subscales
result in a single factor measured as proposed by Ryff. Internal
consistency Cronbachs for the RSPWB 54-items an Urdu
version was acceptable for the purpose of this present study.
RSPWB 54-item an Urdu version measure individuals strength and
weakness and attitude toward optimal functioning that is central to
implications in clinical and academic setting such as counseling
students and deciding career path to build optimal self attributes.
However findings suggest limitations that more work
needs to be carried out to develop more replicable structure for
subjective psychological well-being. Since, observed low inter
correlations among subscale of Autonomy and purpose in life
scale, Positive relations and self acceptance subscale dont
appeared to authenticate six dimensional structure of Ryff Scale
of Psychological Well-being to assess. This can be done by
comparing RSPWB with other models of subjective psychological
well-being to identify structure of Psychological Well-being in
Pakistani context.
Over representation of certain subgroups in a small
sample of (261) such as young people (between 17-25yrs) and
Unmarried (73%) limits the generalized implication of RSPWB
Urdu version to other Pakistani population. Beside this
demographic variation of sample and data collection methods
dont strongly support Ryff scales validation in Pakistani context.
Further research should 1) examine the relationship
between RSPWB Urdu version and other measures of Subjective
well-being,2) examine RSPWB in group and demographic variable
such as employment, income level, education as predictor of
subjective well-being and 3) examine potential positive
relationship between internal locus of control, emotional
intelligence and subjective psychological well-being.
Another limitation of the study is that participants were
tested both individually and in groups. In future, all participants
should be provided with uniform administration to eliminate any
potential effect that may have on individuals judgment about
subjective well-being.
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References
Andrew, F.M and S.B Withey : 1976, Social Indicators of Well-
being (Plenum Press , New York).
Bradburn, N.M 1969,The Structure of the Psychological Well-
being (Aldine Publisher Co, Chicago)
Diener, E. and R.A. Emmons: 1984, The independence of positive
and negative affect, Journal of personality and social psychology
47, pp. 1105-1117.
Diener , E, R.A., Emmons, R.J.Larsen, and S.Griffin:1985, The
Satisfaction with Life Scale, Journal of personality Assessment
49,pp.71-75.
Diener ,E,Suh, E.M, Lucas, R.E & Smith,H.L. (1999) Subjective
well-being: Three decades of progress. Psychological Bulletin,
125(2),276-302. Doi: 10.1037/0033-2909.125.2.276.
Liang J:1984, Dimensions of the life satisfaction Index A:A
structural Formulation, journal of Gerontology 39,pp. 613-622.
Lucas, R.E, E.Diener and E.Suh:1996, Discriminant validity of life
satisfaction, Journal of Personality and Socail Psychology 71,
pp.616-628
Neugarten,B.,R.Havighurst and S.Tobin:1961, The measurement
of life satisfaction, Journal of Gerontology 16,pp.134-143.
Reker, G.T. and E.J.Peacock:1981, The life Attitude Profile (LAP):
A multidiemensional Instrument for assessing attitude towards
life Canadian Journal of Behavioral Sciences 13, pp.264-273.
Ryff, C.D. 1989, Happiness is everything or is it? Explorations
on the meaning of psychological well-being, Journal of Personality
and Socail Psychology 57, pp.1069-1081.
Ryff, C.D. 1989, Beyond Ponce de Leon and life satisfaction:
New directions in quest of successful aging International Journal
of Behavioral Development, 12, pp.35-55.
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Cross Validation of Ryff Scales of Psychological Well-being
Schmutte, P.S. and C.D. Ryff: 1997, Personality and well-being:
Reexamining methods and meanings Journal of Personality and
Socail Psychology 73, pp.549-559.
Stock,W.A.,M.A.Okun and M.Benin: 1986, Structure of
Subjective well-being among the elderly Psychology and
Aging 1, pp.91-102.
Correlations among six factor Model of Ryffs Psychological
Well-being Scale (54-item)
Table 1: Item analysis Statistics SPSS out put
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized Items
N of
Items
.853 .855 6

Table 2: Descriptive Statistics for Ryffs
Psychological well -being Six Subscales
Scales
Mean
Std.
Deviation N
Autonom
y
37.72 6.022 26
1
*E.Master
y
37.13 6.334 26
1
**P.Grow
th
32.19 5.502 26
1
***P.Rela
tion
35.49 6.241 26
1
****P.I.L
ife
32.07 6.514 26
1
*****S.A
ccept
35.54 5.508 26
1

Note: (Ryffs Psychological Well-being Scale 54-item 6 factor
Model (Autonomy,*E. Mastery =Environmental Mastery,
**P.Growth= Personal Growth, ***P.Relation=Positive Relation,
****P.I.Life= Purpose in Life, *****S.Accept= Self Acceptance)
(N=261, Age= 25.64yrs )
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PAKISTAN BUSINESS REVIEW JULY 2010
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Table 3: Inter-Item Correlation among Ryffs Psychological well-being
Subscales

Scales Autonomy E.Mastery P.Growth P.Relation P.I.Life S.Accept TPWB
Autonomy 1.000 0.545 0.648 0.454 0.349 0.534 0.73
E.Mastery 0.545 1.000 0.584 0.549 0.478 0.469 0.77
P.Growth 0.648 0.584 1.000 0.557 0.429 0.460 0.79
P.Relation 0.454 0.549 0.557 1.000 0.485 0.382 0.73
P.I.Life 0.349 0.478 0.429 0.485 1.000 0.512 0.70
S.Accept 0.534 0.469 0.460 0.382 0.512 1.000 0.71
TPWB 0.73 0.77 0.79 0.73 0.70 0.71 1.00
Note: TPWB= Total Psychological well-being (all correlations are significant at 0.01 level)

Table 4: Inter-Item Covariance among Ryffs Psychological well-being
Subscales

Scales
Autonomy E.Mastery P.Growth P.Relation P.I.Life S.Accept
TPWB
Autonomy 36.265 20.776 21.466 17.063 13.684 17.723 123.0
E.Mastery 20.776 40.121 20.352 21.690 19.726 16.360 138.0
P.Growth 21.466 20.352 30.271 19.129 15.368 13.931 120.0
P.Relation 17.063 21.690 19.129 38.951 19.733 13.126 127.0
P.I.Life 13.684 19.726 15.368 19.733 42.430 18.353 129.0
S.Accept 17.723 16.360 13.931 13.126 18.353 30.342 110.0
TPWB 123.0 138.0 120.0 127.0 129.0 110.0 789.23

Table 5: Summary Item Statistics Ryffs Psychological well-being Scales SPSS out put

Mean Minimum Maximum Range
Maximum /
Minimum Variance
N of
Items
Item Means 35.022 32.065 37.716 5.651 1.176 5.789 6
Item Variances 36.397 30.271 42.430 12.160 1.402 26.202 6
Inter-Item
Covariances
17.899 13.126 21.690 8.563 1.652 7.973 6
Inter-Item
Correlations
0.496 0.349 0.648 0.299 1.857 0.006 6

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Cross Validation of Ryff Scales of Psychological Well-being



Table 6: Item-Total Statistic Ryffs Psychological well-being Scales SPSS out put
Scales
Scale Mean if
Item Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Squared
Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
Aoutunmy 172.42 537.652 .650 .515 .827
E.Mastery 173.00 517.412 .686 .478 .819
P.Growth 177.94 544.577 .703 .542 .818
P.Relation 174.64 534.907 .629 .427 .831
P.I.Life 178.07 539.180 .574 .388 .842
S.Accept 174.59 566.011 .607 .415 .835
((all correlation are significant at 0.01 level)


Appendix B: Ryffs Psychological Well-being Scale Urdu Translation

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Research Differences in Mobile Service Perceptions
260
DIFFERENCES IN MOBILE
SERVICE PERCEPTIONS:
COMPARISON OF STUDENTS
AND STAFF AT A BUSINESS
UNIVERSITY
Laiq Muhammad Khan
College of Computer Science and Information Systems,
Karachi
Abstract:
Mobile services are widely used all over the world and with the
increase of mobile service users the competition between
different mobile service providers is also increasing in every
country. Mobile service users are very conscious about network
quality, perceived value, billing service, satisfaction etc.
Perception of users about different services and packages offered
by different mobile service providers varies age wise, gender
wise, country wise etc.
This study aims to investigate the difference in mobile service
perception and its impact on perceived value, satisfaction, loyalty
between two significant groups of mobile service users, the
student and staff of a big business university at Karachi.
A group of statistical technique comprising analysis of variance,
regression and inferential statistics are used for testing
hypothesis about the attributes and for developing model of
loyalty.
The results identify the mobile service quality attributes that are
important for two groups of users. This study also finds
significant difference between the two groups of users in terms
of effect of perceived economic and emotional value, satisfaction,
network quality and loyalty.
Key Words: Customer loyalty, customer satisfaction, perceived
value, network qualityMobile service .
JEL Classification: M3310
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PAKISTAN BUSINESS REVIEW JULY 2010
Differences in Mobile Service Perceptions
261
I. INTRODUCTION
Mobile phones are widely used all over the world. The
number of mobile users around the world was 1.5 billion at the
middle of the year 2004 which is about 25% of the population
(Mobile Tracker: Cell phone Demand 2005). By the end of the
year 2005, it reached two billion (CNN 2005). In the year 2009,
40% of the world population were mobile phone users (Gartner;
2009)
According to Pakistan Telecommunication Authority
(PTA) Industry Analysis Report 2008 Cellular mobile services in
Pakistan commenced in the 90s with two mobile service provider
Paktel and Pakcom ( Instaphone ). There has been strong growth
in the cellular market. By the end of 2007; five cellular operators
were in the market in Pakistan.
The growth rate of number of subscribers was 80% in
the year 2007. The total subscribers were 76.9 million by Dec.
2007, it was 34.5 millions in the year 2006, and 12.7 millions in
2005.In 2008-09, the cellular mobile companies added over 6.3
million subscribers, while the previous year, the addition was
about 25 million. During the period 2007-08 the number of
subscribers were 88 millions, 94.3 millions during the period 2008-
09, about 97.6 millions by the end of year 2009 and 95.4 millions
by the end of Jan. 2010 (PTA report on March 11, 2010). In USA,
Mexico, Hong Kong, Taiwan, China studies have been made
about the difference in perception of mobile service between
users of different age group. We have not found any such study
about the users of mobile services in Pakistan.
The purpose of this study is to investigate the difference
in mobile service quality perceptions and its impact on perceived
value, satisfaction, and loyalty between two important mobile
service users groups i.e. students and staff at a leading Business
university at Karachi in 2010.
As the usage pattern of these two groups is distinct,
the life style of these two groups as well as the technology
diffusion may cause significant differences in their satisfaction
and loyalty decisions.
PAKISTAN BUSINESS REVIEW JULY 2010
Research Differences in Mobile Service Perceptions
262
II. LITERATURE REVIEW
Kumar, A and Lim, H(2006) under took this study to
investigate the effects of age on mobile service quality perceptions
and its impact on perceived value, satisfaction and loyalty
decisions with respect to two different consumers groups 12 years
to 26 years termed as Generation y and 42 60years termed as
Baby boomers.
They have collected data for the age group 18-24 years
old from a sample of 159 out of the total population of the students
at Southern University USA, using the method of convenience
sampling. The data for the persons of the age group 42-60 years
has been selected on the basis of a sample size of 139 through a
web-based survey. In both the groups, the respondents are only
mobile services users.
In this study analysis has been performed in three steps.
1. Separate baseline models have been established
for both the groups Gen Y and baby boomers
by using the data sets for Gen Y and baby
boomers respectively. The significant paths
were reconfirmed by using the multi-group SEM
model. Chi Square statistic has been used to
test the goodness of fit.
2. In order to assess the metric equivalency
of the constructs in the two groups, a
measurement model has been fitted.
Goodness of fit test has been performed.
3. At the final stage, to test the equality of the
structural parameters additional constraints
were added and test
1
of invariance has been
performed by using Chi- Square statistic.
1
They have used test of invariance to discover that the structural
parameters are equal or not across the groups of the baby
boomers and Generation-y
1
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They have tested several hypotheses.
About the effect of network quality on perceived
economic and perceived emotional value. They have
concluded that there is significant positive effect of
network quality on perceived economic and emotional
value for both groups.
About the effect of billing system on perceived
economic value and perceived emotional value for both
age groups. They have concluded that there is a
significant difference between billing system and
perceived economic and emotional value for the two
groups.
About the effect of counter service quality on perceived
economic value and perceived emotional value for the
two groups. They have concluded that customer service
quality has an insignificant relationship with perceived
economic value and emotional value for baby boomers
while customer service quality has a positive effect on
perceived emotional value alone for Gen Y- ers.
About the effect of emotional value on satisfaction for
the two age groups. They have concluded that there is
significant difference for both the groups with respect
to emotional value and satisfaction; perceived emotional
value has a greater effect on Gen Y-ers than the baby
boomers.
About the effect of perceived economic value on
satisfaction for the two age groups, it has been observed
that there is a positive significant effect of perceived
economic value on satisfaction for baby boomers but
not for Gen-Y and hence the effect of perceived
economic value on satisfaction is greater for baby
boomers.
Relationship between Satisfaction and Loyalty has been
studied and it was found that there is a positive relationship
between satisfaction and loyalty in both age groups.
Yang, Z and Peterson, R.T (2004) have undertaken a
study to investigate the moderating effects of switching over
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costs on customer loyalty through both satisfaction and perceived
value measures.
They have collected data through a Web-based survey.
A random selection of 4000 subjects from an e-mail list
provided by an e-mail broker has been selected and respondents
were invited to participate in the survey .Responses from 257
participants were received by the authors , including 22 incomplete
or duplicated responses, therefore the actual sample size is 235.The
analysis has been performed in four steps
1. In the first step, exploratory factor analysis has been
performed to determine the underlying factor structure of the scale
items.
2. In the second phase, confirmatory factor analysis has
been performed.
Chi-Square statistics have been used and goodness of fit
test has been performed in order to test the fitting ofthe model.
3. The discriminant validity of the measures has been
examined by two different procedures.
a) The AVE
2
has been compared with the square of the
parameter estimate among the latent variables.
b) The discriminant validity of each construct has been
determined by loading higher on the construct of
nterest than any other variable.
4. Simultaneous maximum-likelihood-estimation
procedures have been used in order to examine the hypothesized
relationships among perceived, customer satisfaction, and
customer loyalty. Goodness of fit test has been performed.
They have tested the hypothesis:
About the effect of customer loyalty on customer
perceived value. As the difference is significant, therefore
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it is concluded that customer loyalty will be positively
influenced by customer perceived value
About the effect of customer loyalty on customer
satisfaction. As the difference is significant, therefore it is
concluded that customer loyalty will be positively
influenced by customer satisfaction.
About the customer satisfaction on customer perceived
value. As the difference is significant, therefore it is
concluded that customer satisfaction is positively
influenced by customer positive value.
About the level of switching cost on customer loyalty
through customer satisfaction, As the difference is
insignificant, it is concluded that the higher the level of
switching cost customer loyalty will not lead to greater
customer satisfaction.
About the level of switching cost on the customer loyalty
through perceived value. As the difference is insignificant,
hence it is concluded that the higher the level of switching
cost, the perceived value will not lead to greater customer
satisfaction
Anderson, R.E and Srinivasan, S.S (2003) undertook a
study to observe the impact of satisfaction on loyalty in electronic
commerce (e-commerce). In order to observe the relationship between
satisfaction and loyalty, they included the variables convenience
motivation and purchase size as consumer level factors where as
trust and perceived values were included as business level factors.
2
The AVE (Average Variance Extracted) represents the amount of
variance captured by the constructs measures relative to
measurement error and the correlations among the latent variables.
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Initially they selected a random sample of 5000 consumers
from a large list of e- retailing consumers maintained by an online
marketing research firm. They collected the data by sending an
invitation through an e-mail to each of the 5000 respondents and 1211
complete and usable responses were received. The representative-
ness of the data has been evaluated by comparing the collected sample
data with the data collected by a Greenfield Online study showing
similar demographic characteristics. To measure various constructs,
validated items used by other researchers have been adapted.
For the purpose of analysis, the sample has been split in to
two sets:
(a) An exploratory data set of 360 observations.
(b)The model estimation data set of 851 observations.
1. An exploratory factor analysis technique has been applied to the
exploratory data set and internal consistency estimates were obtained.
High internal consistency between various constructs was observed
on the basis of the estimates.
2. The model for loyalty has been obtained on the basis of the model
estimation data by applying regression analysis. The coefficient alphas,
means and standard deviations for various constructs on the basis of
model estimation data sets have been obtained.
The regression model which was run in this research paper is as follows:
LT =
0
+
1
SA +
2
TR +
3
PV +
4
IN +
5
CM +
6
SA*TR +

7
SA*PV +
8
SA*PS +
9
SA*IN +
10
SA*CM +
LT: e- Loyalty
SA: e- Satisfaction
TR: Trust in the e-Business
PV: Perceived value
IN: Inertia
CM: Convenience orientation
PS: Purchase size
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Their tested hypotheses are:
About the effect of the level of e-satisfaction on the level
of e-loyalty. As the difference is significant, therefore it is
concluded that the higher the e-satisfaction, the higher
the e-loyalty
That the impact of customer e-satisfaction on e-loyalty is
moderated by inertia. As the difference is significant, it is
concluded that e-satisfaction will have a higher impact on
e-loyalty at a lower values of inertia than at higher values
of inertia.
That the impact of customer e-satisfaction on e-loyalty is
moderated by convenience motivation. As the difference
is significant, it is concluded that convenience motivation
positively moderates the impact of customer e-satisfaction
on e-loyalty.
That the impact of customer e-satisfaction on e-loyalty is
moderated by purchase size. As the difference is
significant, it is concluded that purchase size moderates
the impact of customer e-satisfaction on e-loyalty.
That the impact of customer e-satisfaction on e-loyalty is
moderated by trust. As the difference is significant, it is
concluded that trust moderates the impact of customer e-
satisfaction on e-loyalty.
That the impact of customer e-satisfaction on e-loyalty is
moderated by trust. As the difference is significant, it is
concluded that trust moderates the impact of customer e-
satisfaction on e-loyalty.
That the impact of customer e-satisfaction on e-loyalty is
moderated by perceived value of a Web site. As the
difference is significant, it is concluded that perceived
value moderates the impact of customer e-satisfaction on
e-loyalty.
Definitions of Variables (Kumar, A and Lim, H, 2006)
Service quality
Perceived value (i.e. economic, emotional)
Satisfaction and
Loyalty intention
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Overall service quality:
Quality is defined as the overall excellence or superiority
that consumers perceive from a product/service
(Zeithaml, 1998). Service quality in the use of mobile
services can be perceived through both technical (e.g.
pricing plans, network quality and data services) and
functional attributes (e.g. billing system and customer
service quality) of mobile services. Overall perceptions
of service quality are formed by a consumers evaluation
of multiple quality dimensions (Gronroos, 1984). In
general, researchers, agree that positive perceptions of
service quality enhance consumers perceived value and
the level of satisfaction. In other words, a consumers
initial appraisal of service quality can arouse positive
emotion, which results in behavioral responses (Bagozzi,
1992).
Perceived Value:
Previous studies examined perceived value in terms of
monetary tradeoffs only (McDougall and Levesque,
2000) what you get for what you pay. However,
consumers appear to assets perceived value not only by
monetary tradeoffs but also by other psychological
benefits (e.g. enjoyment and fun) (Sweeney and Soutar,
2001). Similarly, previous studies emphasized both
intrinsic and extrinsic motivations as predictors of
behavioral intentions (e.g. Davis et al., 1989). While
extrinsic motivation is goal oriented, intrinsic motivation
pertains to the pleasure and inherent satisfaction driven
by service experience (Vankatesh et al., 2000). Therefore
this study measures the effects of both perceived
economic and emotional value on consumers
satisfaction.
Satisfaction and loyalty:
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Satisfaction has been widely studied as a mediator
between perceived value and loyalty (Andreassen and Lindestad,
1998; Cronin et al., 2000). Customer satisfaction is an important
factor for a long term relationship between a firm and a customer
(Anderson and Srinivasan, 2003). Loyalty refers to a consumers
commitment to repurchase a preferred product or service
consistently in the future (Oliver, 1980). Researcher has shown
that the consumers positive affect toward a service provider is
likely to motivate the consumer to stay with the provider and
also recommend the service to other (Zeithaml et al., 1996).
Therefore, this study measures the direct effect of satisfaction
on consumers loyalty decisions.
III. Methodology
The purpose of our research is to investigate the
difference in mobile service quality perceptions and its impact
on perceived value, satisfaction, and loyalty between two
important mobile service users groups i.e. students and staff at a
major Business University in Karachi. Consequently the group
of students is appearing as the group of consumers of mobile
service without income and the group of staff is the group of
consumers with income.
As the usage pattern of these two groups is distinct, the life
style of these two groups as well as the technology diffusion
may cause significant differences in their satisfaction and loyalty
decisions.
This study proposes that differences in mobile service usage
between students and staff may be caused by different attributes.
The following hypotheses have been tested.
H1a: customer loyalty will be positively influenced by customer
emotional value
H1b: customer loyalty will be positively influenced by customer
economic value
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H2a: customer satisfaction will be positively influenced by customer
economic value
H2b: Satisfaction will be positively influenced by customer
emotional value
H3: Data services will have a greater effect on perceived economic
value for students than for staff.
H4: Data services will have a greater effect on perceived emotional
value for students than for staff.
These hypotheses are based on the literature survey
formulated in Section II above.
Measures
The research instrument has been adapted from the researches of
Kumar, A and Lim, H(2006) , Yang, Z and Peterson, R. T(2004),
Anderson, R. E and Srinivasan, S.S (2003)
The likert scale rating 5 steps has been used to measure the
variables
1=strongly agreed, 2=agreed, 3= dont know, 4= disagreed, 5=
strongly disagreed
But for the negative response questions Q.13, 14,15and Q.25 scale
rating is
1= strongly disagreed, 2=disagreed, 3=dont know, 4=agreed,
5=strongly agreed
The questionnaire comprising of the questions regarding mobile
service in use, age, gender, perceived quality of mobile service,
perceived value, the level of satisfaction, and loyalty.
The questionnaires for both the groups comprises of 28 questions.
However the questionnaire for staff includes two additional
informations about designation and education.
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To measure the various concepts, validated items used by other
researchers have been adapted.
To capture the consumers perception about Billing service two
items have been adapted from the study of Kumar .A and Lim
H(2006). Q.8 and Q.9 of this study are similar to that of Kumar A
and Lim H Questionnaire and measures the consumers
perception about billing service.
The consumers perception about the Network Quality has been
measured by three items. Two items have been adopted from the
study of Kumar .A and Lim H (2006), Q.10 and Q.12 are common
and Q.11 (see appendix II) about the Voice Quality has been
introduced in this questionnaire.
The Consumers perception about the Customer Service Quality
has been measured by using three items. These items have been
adopted from the studies of Kumar A and Lim H (2006), Yang Z
and Peterson R.T (2004). Q.13 and Q.14 and Q.15 (see appendix
II) of this study are measuring the perception about Customer
Service Quality.
Data services in this study have been measured by using two
items. These items have been adopted from the studies of Kumar
A and Lim H (2006), Yang Z and Peterson R.T (2004). Q.16, Q.17
and Q. 18 (see appendix II) of this study are common and
measuring the perception of consumer about Data services.
Perceived value includes both monetary and non-monetary
benefits that consumer perceive in a service setting. In this study,
we consider perceived value to include economical and emotional
value (Kumar .A and Lim H, 2006), Perception about the Economic
value has been measured by using three items. Two items have
been adopted from the studies of Kumar A and Lim H (2006),
Anderson R E and Srinivasan S S (2003) Q.19 and Q.20 (see
appendix II) of this study are common and a new question Q.21
(Number of SMS you send per day) has been introduced.
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Consumers perception about the Emotional value has been
measured by using three items. All items have been adopted from
the studies of Kumar A and Lim H (2006), Anderson R E and
Srinivasan S S (2003). Q.24, Q25, Q.26 (see appendix II) of this
study measures the consumers perception about Emotional value.
Consumers perception about the Satisfaction has been measured
by using two items. Both items have been adopted from the studies
of Kumar A and Lim H(2006), and Anderson R E and Srinivasan S
S (2003). Q.22 and Q.23 (see appendix II) of this study measures
the perception about the satisfaction.
Consumers perception about the Loyalty has been measured by
using two items. Both items have been adopted from the studies
of Kumar A and Lim H (2006), Anderson R E and Srinivasan S S
(2003). Q.27 and Q.28 (see appendix II) of this study measures the
consumers perception about the Loyalty.
In this study some questions different from the questionnaires of
other researchers are being included due to the change of the
environment, habits and behavior of the consumers. These
questions are about the causes of selecting mobile service,
changing mobile service, using more than one mobile service at a
time, and the type of package.
The question about the rating of SMS service is not included in
the questionnaire of the other researchers. (How will you rate
SMS service of your selected mobile company?)
This research is different from the study of Archana Kumar and
Heejin Lim (2006), Rolph E. Anderson and Srini S. Srinivasan(
2003 ) ,Zhilin Yang and Robin T. Peterson ( 2004 ) on the following
basis:
The groups are the students and the staff of a large educational
institution in Karachi in early 2010
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Some new investigations on the basis of the behavior of the
consumers of mobile services in this institute are being included.
(Q.2 to Q.7) in our instrument attached
In this research it is being investigated:
Whether Data services (e.g. SMS, RINGTONES, MUSIC,
and DOWN LOADS) have greater effect on perceived
economic value for students than for staff?
Whether Data services (e.g. SMS, RINGTONES, MUSIC,
DOWN LOADS) have greater effect on perceived
emotional value for staff than the students.
Whether Functional service quality (billing system) has
a greater effect on perceived value for staff than for
students.
Whether Functional service quality (customer service
quality) has a greater effect on perceived emotional
value for staff than for students.
Whether Perceived emotional value has a greater effect
on satisfaction for students than the staff.
Perceived economical value has a greater effect on
satisfaction for staff than students.
Difference of perception between staff and student about
satisfaction.
Difference of perception between staff and student
about loyalty.
Different mobile services would make a significant
difference in users satisfaction.
Sample design:
The targeted population of this research consists of all
students and staff (Teaching and Non-teaching) of a Business
University.
Keeping in view the variation in the perception of the
two user groups of mobile services, Stratified random sampling
has been used independently for both groups in order to select
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representative samples for both. The data have been collected
by convenience sampling for both student and staff.
Sample size and its allocation:
For students
There were 3777 total students registered during the fall
semester, 2009 at the university. They have been classified in the
groups BBA (H), BS, MBA (Reg.) and MBA (Ex.)
Groups No. of students
BBA(H) 1428
BS 650
MBA(Reg.) 951
MBA(Ex.) 748

The size of the sample with 5% level of precision and 95%
confidence level with unknown population variance is 352
The size of the sample to be selected from each stratum has been
decided by proportional allocation method. The calculated sizes
of the samples are 132, 61, 88, and 69 respectively.
For staff
Total staff of the university in Fall 2009 was 342. This
can be split in three categories i.e. management staff (111),
permanent faculty (106) and visiting faculty (125).
The size of the sample with 5% level of precision and
95% confidence level with unknown population variance is 150
The size of the sample to be selected from each category
has been decided by proportional allocation method. The
calculated sizes of the samples are 48, 42 and 60 respectively.
Samples from both the groups have collected by convenience
sampling.
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1) Correlation analysis has been used to explore
the relationship between different concepts
and attributes
2) Regression analysis is being used to determine
direction of causation.
3) Multiple regressions are being used to develop
regression model for Loyalty.
4) Testing of hypothesis has been performed
by using t- statistic, Chi- square statistic,
analysis of variance etc.
Data Analysis:
Table 1-
Correlation analysis results based on the data of the
samples for student and staff given in Table 1

F Sig. t df
Sig. (2-
tailed)
Mean
Difference
Std. Error
Difference Lower Upper
Equal variances
assumed
.747 .388 2.146 467 .032 .17321 .08070 .01464 .33179
Equal variances not
assumed
2.057 217.833 .041 .17321 .08420 .00727 .33916
Equal variances
assumed
3.027 .083 3.480 495 .001 .20277 .05826 .08829 .31724
Equal variances not
assumed
3.286 240.689 .001 .20277 .06171 .08120 .32433
billing
service
data
services
Independent Samples Test
Levene's Test for t-test for Equality of Means
95% Confidence
It is found that there is significant difference in the
perception towards the billing service between the groups of
students and staff as P<0.05. This difference may be due to type
of package the two groups preferred i.e. prepaid and postpaid
packages
It is found that there is significant difference in the
perception towards the data services between the groups of
students and staff as P<0.05. Students enjoy sending SMS,
MMS, listening the music from internet, downloading ring tones,
receiving and reading news etc. but staff is not that much pay
attention towards data services.
(Ref: Table 1 Appendix I List of Tables)
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Table 2 Correlations between Emotional Value and Loyalty
classification of respondents emotional value loyalty
Students emotional
value
Pearson Correlation 1 .530
**

Sig. (2-tailed) .000
N 351 351
loyalty Pearson Correlation .530
**
1
Sig. (2-tailed) .000
N 351 351
Staff emotional
value
Pearson Correlation 1 .677
**

Sig. (2-tailed) .000
N 149 147
loyalty Pearson Correlation .677
**
1
Sig. (2-tailed) .000
N 147 147
**. Correlation is significant at the 0.01 level (2-tailed).
H
1a
stated customer loyalty will be positively influenced by customer emotional value.
The effect of customer emotional value on loyalty is significant as p<0.01 for both the
groups and Pearson correlation coefficient carries positive sign which shows that
emotional value and loyalty are positively related therefore H1a is supported and it is
concluded that loyalty is positively influenced by emotional value for both students
and staff.
Table 3 Correlations between Economic Value and Loyalty
classification of respondents economic value Loyalty
Students economic
value
Pearson Correlation 1 .405
**

Sig. (2-tailed) .000
N 351 351
loyalty Pearson Correlation .405
**
1
Sig. (2-tailed) .000
N 351 351
Staff economic
value
Pearson Correlation 1 .519
**

Sig. (2-tailed) .000
N 151 147
loyalty Pearson Correlation .519
**
1
Sig. (2-tailed) .000
N 147 147
**. Correlation is significant at the 0.01 level (2-tailed).

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H
1b
stated customer loyalty will be positively influenced by customer economical value.
The effect of economic value on loyalty is significant as p<0.01 for both the groups
and Pearson correlation carries positive sign which shows that economic value and
loyalty are positively related and therefore H1b is supported and it is concluded that
economic value has positive influence on loyalty i.e. increase in economic value will
increase the loyalty.
Table 4 Correlations between Satisfaction and Economic Value
classification of respondents satisfaction economic value
Students satisfaction Pearson Correlation 1 .359
**

Sig. (2-tailed) .000
N 351 351
economic
value
Pearson Correlation .359
**
1
Sig. (2-tailed) .000
N 351 351
Staff satisfaction Pearson Correlation 1 .498
**

Sig. (2-tailed) .000
N 149 149
economic
value
Pearson Correlation .498
**
1
Sig. (2-tailed) .000
N 149 151
**. Correlation is significant at the 0.01 level (2-tailed).

H
2a
stated customer satisfaction will be positively influenced by customer economic
value
The effect of economic value on satisfaction is significant for both groups students
and staff as p<0.01for students and staff. Pearson correlation for both groups carries
positive sign it shows that economic value and satisfaction are positively correlated
Therefore H
2a
is supported hence it is concluded that customer satisfaction is positively
influenced by customer economic value.
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Table 5 Correlations between Emotional Value and Satisfaction
classification of respondents emotional value Satisfaction
Students emotional
value
Pearson Correlation 1 .542
**

Sig. (2-tailed) .000
N 351 351
satisfaction Pearson Correlation .542
**
1
Sig. (2-tailed) .000
N 351 351
Staff emotional
value
Pearson Correlation 1 .602
**

Sig. (2-tailed) .000
N 149 149
satisfaction Pearson Correlation .602
**
1
Sig. (2-tailed) .000
N 149 149
**. Correlation is significant at the 0.01 level (2-tailed).

H
2b
stated satisfaction will be positively influenced by customer emotional value. The
effect of perceived emotional value on satisfaction is significant as p<0.01 for both
groups students and staff. Pearson correlation carries positive sign for both groups, it
shows that emotional value and satisfaction are positively related Therefore H
2b
is
supported hence it is concluded that satisfaction will be positively influence by
customer emotional value for both groups.




Table 6 Correlations between Economic Value and Data services
classification of respondents economic value data services

Students
economic
value
Pearson Correlation 1 .259
**

Sig. (2-tailed) .000
N 351 351
data
services
Pearson Correlation .259
**
1
Sig. (2-tailed) .000
N 351 351

Staff
economic
value
Pearson Correlation 1 .163
*

Sig. (2-tailed) .049
N 151 146
data
services
Pearson Correlation .163
*
1
Sig. (2-tailed) .049
N 146 146
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

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H
3
stated Data services will have a greater effect on perceived economic value for
students than for staff. The effect of data services on economic values is significant
for students as p<0.01 and insignificant for staff as p = 0.05. It provides strong evidence
to conclude that Data services have greater effect on perceived economic for students
as compare to staff. It supports our H
3
. It indicates data services are important measure
for economic value in case of students but not in case of staff.
Table 7 Correlations between Data services and Emotional Value
classification of respondents data services emotional value
Students data
services
Pearson Correlation 1 .288
**

Sig. (2-tailed) .000
N 351 351
emotional
value
Pearson Correlation .288
**
1
Sig. (2-tailed) .000
N 351 351
Staff data
services
Pearson Correlation 1 .096
Sig. (2-tailed) .251
N 146 146
emotional
value
Pearson Correlation .096 1
Sig. (2-tailed) .251
N 146 149
**. Correlation is significant at the 0.01 level (2-tailed).

H
4
stated Data services will have a greater effect on perceived emotional value for
students than for staff. The effect of data services on emotional values is significant
for students as p<0.01 and insignificant for staff as p>0.01. It provides strong evidence
to conclude that data services have greater effect on perceived emotional value for
students than for staff. Hence our H
4
is being supported.
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Table 8a

classificaton of
respondents Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
students 1
.584
a
.341 .329 .62607
Staff 1
.747
b
.558 .538 .55288
a. Predictors: (Constant), satisfaction, network quality, economic value, customer support, data services, emotional value
b. Predictors: (Constant), satisfaction, network quality, data services, customer support, economic value, emotional value
classificaton of
respondents
Sum of
Squares df Mean Square F Sig.
Regression 69.706 6 11.618 29.640
.000
a
Residual 134.834 344 .392
Total 204.540 350
Regression 52.389 6 8.731 28.564
.000
b
Residual 41.573 136 .306
Total 93.962 142
a. Predictors: (Constant), satisfaction, network quality, economic value, customer support, data services, emotional value
b. Predictors: (Constant), satisfaction, network quality, data services, customer support, economic value, emotional value
Staff 1
c. Dependent Variable: loyalty
Model Summary
ANOVA
c
Model
students 1
Table 8b
The overall model was found to be significant (p<0.01) with an adjusted R
2
of 0.329 for
students and 0.538 for staff. It indicates that the combined effect of predictors over the
loyalty is significant. Model well explained the combined effect of predictors over the
depended variable loyalty.
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Standardized
Coefficients
B
Std.
Error Beta
(Constant) .105 .226 .463 .643
network quality .076 .044 .080 1.724 *.086
customer support -.034 .049 -.032 -.696 .487
data services .106 .063 .078 1.682 *.093
economic value .172 .067 .122 2.559 .011
emotional value .410 .058 .374 7.119 .000
satisfaction .204 .056 .177 3.617 .000
(Constant) -.162 .249 -.652 .516
network quality .045 .044 .060 1.024 .308
customer support .029 .071 .026 .408 .684
data services -.010 .079 -.008 -.133 .895
economic value .172 .080 .145 2.156 .033
emotional value .478 .086 .416 5.536 .000
satisfaction .373 .090 .315 4.146 .000
students 1
Staff 1
a. Dependent Variable: loyalty
Coefficients
a
classificaton of
respondents Model
Unstandardized
Coefficients
t Sig.
Table 8c
Notes:
*
significant at p<0.1:
**
significant at p<0.05:
***
significant at p<0.01
For students:
The predictors emotional value and satisfaction are significant (p<0.01), economical
value is significant (P<0.05) and network quality is significant (p<0.10).
For staff:
The predictors emotional value and satisfaction are significant (p<0.01), economical
value is significant (P<0.05) and network quality for staff is not significant i.e. no
variations in perception about network quality among staff.
Multiple regression model obtained for Loyalty of the users towards the mobile service
providers for students and staff taking group of predictors Billing service, Net-work
quality, Customer support, Data services, Economic value, and Emotional value is
LT =
0
+
1
NQ

+
2
CS+
3
DS +
4
EV+
5
MV +
6
SA+
Where NQ = Network Quality, CS = Customer support, DS= Data service, EV =
Economic Value, MV = Emotional Value, SA = Satisfaction
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It explains the combined effect of Net-work quality, Customer support, Data services,
Economic value, and Emotional value over the loyalty. As the value of Adjusted R
2
for
staff is greater than the value of Adjusted R
2
for students therefore this regression
model is explaining variation in Loyalty better for staff than students. The model for
loyalty has been further improved by excluding the less significant factors Net-work
quality, Customer support, Data services


classificaton of
respondents Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
students 1
.610
a
.373 .367 .60808
Staff 1
.761
a
.579 .570 .53162
Model Summary
a. Predictors: (Constant), satisfaction, economic value, emotional value
Table 9a




classificaton of
respondents
Sum of
Squares df Mean Square F Sig.
Regression 76.233 3 25.411 68.723
.000
a
Residual 128.307 347 .370
Total 204.540 350
Regression 55.507 3 18.502 65.468
.000
a
Residual 40.414 143 .283
Total 95.922 146
Staff 1
a. Predictors: (Constant), satisfaction, economic value, emotional value
b. Dependent Variable: loyalty
ANOVA
b
Model
students 1
Table 9b

Notes:
*
significant at p<0.01:
**
significant at p<0.10

Standardized
Coefficients
B Std. Error Beta
(Constant) .233 .144 1.618 .107
economic value .164 .044 .177 3.713 .000
emotional value .336 .058 .307 5.798 .000
satisfaction .398 .074 .275 5.354 .000
(Constant) -.241 .190 -1.264 .208
economic value .105 .065 .109 1.621 .107
emotional value .447 .081 .394 5.520 .000
satisfaction .599 .110 .381 5.439 .000
students 1
professionals 1
Coefficients
a
classificaton of
respondents Model
Unstandardized
Coefficients
t Sig.
Table 9c
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Differences in Mobile Service Perceptions
By excluding the insignificant variables of table 8c the
overall model was found to be significant (p<0.01) with an adjusted
R
2
of 0.367 for students and 0.570 for staff (shows an increase in
adjusted R
2
for both groups)
Therefore the improved model for loyalty is
LT =
0
+
1
SA +
2
EV+
3
MV+ C
Where, SA = Satisfaction, EV = Economic Value, MV = Emotional
Value



Sum of
Squares df
Mean
Square F Sig.
Between Groups 13.391 4 3.348 4.027 .003
Within Groups 413.155 497 .831
Total 426.546 501
ANOVA
network quality
Lower
Bound
Upper
Bound
ufone
-.35411
*
.10710 .009 -.6473 -.0609
mobilink
.35411
*
.10710 .009 .0609 .6473
warid
.33996
*
.11453 .026 .0264 .6535
ufone
-.33996
*
.11453 .026 -.6535 -.0264
*. The mean difference is significant at the 0.05 level.
network quality mobilink
ufone
warid
Multiple Comparisons
Tukey HSD
Dependent
Variable
(I)
company
(J)
company
Mean
Difference
(I-J) Std. Error Sig.
Interval
Table 10a
Table 10b
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Research Differences in Mobile Service Perceptions
Ref: Table A2
The technique of analysis of variance for one way
classification for the data of network quality has been performed
to find that all mobile service companies have same performance
is respect of network quality perceived by the customer. As p <
o.o5 therefore it is concluded that there is difference between
perceived network quality of different mobile service providers.
Using the post hoc test for multiple comparisons it is found that
there is significance difference in the network quality perceived
by the customers of following mobile services.
1. Mobilink and Ufone
2. Ufone and Warid
Conclusion:
Significant difference has been found in the perception
towards the billing service between groups of students and staff
which may be due to the type of packages the two groups
preferred i.e. prepaid and post paid packages.
Significant difference has been found in the perception
towards the data services between groups of students and staff.
Students enjoy sending SMS, MMS, listening the music from
internet, downloading ring tones, receiving and reading news
etc. but staff do not pay that much attention towards data services.
It is found that emotional value and loyalty are positively
correlated for both groups student and staff. An increase in the
emotional value will increase the loyalty. The effect of economic
value towards loyalty is also positive for both the groups.
Therefore Loyalty of customer is positively related with
Perceived value.
Economic value and Emotional value both have positive
influence over the satisfaction for both groups. It can be
concluded that if the mobile service provider take the measures
to improve Economic value and Emotional value of the users, in
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the result the satisfaction about the mobile service will be also
increased.
An interesting finding in the research is that Data services
has positive influence over Economic value and Emotional value
for students but have no influence over the Economic value and
emotional value for staff. Therefore it is concluded that the
students prefer data services more as compared to staff.
It has been also found that there is significant difference
in the perceived network quality provided by the mobile service
providers and in the result of further study it has been observed,
that there is significant difference between the Network quality,
which the customer perceived between the users of Mobilink and
Ufone as well as between Ufone and Warid customers.
Multiple regression model for the loyalty of the users
towards the mobile service in use has been obtained which explains
the variation in Loyalty as a combined effect of the predictors
Net-work quality, Customer support, Data services, Economic
value, and Emotional value, and satisfaction.
This model has been further improved by excluding less
significant factors, Net-work quality, Customer support and Data
services and containing only Economic value, Emotional value
and Satisfaction as the predictors.
In general, over results indicate that various attributes
of mobile services contribute to consumers perceived economic
and emotional value which leads to satisfaction and loyalty. Also,
age of the user has an apparent effect on mobile service
perceptions and loyalty decisions.
Acknowledgement:
I have special thanks for Rizwan Ahmed, Noman
Khan(son) and Muhammad Aijaz Rasheed, who helped me and
encouraged me during the preparation of this paper.
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APPENDIX I

List of Tables

Table A1
F Sig. t df
Sig. (2-
tailed)
Mean
Difference
Std. Error
Difference Lower Upper
Equal variances
assumed
.747 .388 2.146 467 .032 .17321 .08070 .01464 .33179
Equal variances not
assumed
2.057 217.833 .041 .17321 .08420 .00727 .33916
Equal variances
assumed
.224 .637 .858 500 .391 .05092 .05933 -.06565 .16749
Equal variances not
assumed
.830 263.813 .407 .05092 .06137 -.06992 .17175
Equal variances
assumed
17.910 .000 1.365 498 .173 .04643 .03402 -.02041 .11327
Equal variances not
assumed
1.178 209.484 .240 .04643 .03940 -.03124 .12410
Equal variances
assumed
3.027 .083 3.480 495 .001 .20277 .05826 .08829 .31724
Equal variances not
assumed
3.286 240.689 .001 .20277 .06171 .08120 .32433
Equal variances
assumed
.206 .650 .532 500 .595 .04343 .08168 -.11704 .20390
Equal variances not
assumed
.518 268.570 .605 .04343 .08378 -.12153 .20839
Equal variances
assumed
.167 .683 -.904 498 .366 -.06260 .06926 -.19867 .07347
Equal variances not
assumed
-.886 266.925 .376 -.06260 .07066 -.20173 .07653
Equal variances
assumed
.031 .860 -.360 498 .719 -.01859 .05166 -.12008 .08291
Equal variances not
assumed
-.360 279.246 .719 -.01859 .05164 -.12024 .08307
Equal variances
assumed
.454 .501 -1.217 496 .224 -.09309 .07646 -.24332 .05715
Equal variances not
assumed
-1.189 259.988 .236 -.09309 .07832 -.24731 .06114
satisfaction
loyalty
billing
service
network
quality
customer
support
data
services
economic
value
emotional
value
Independent Samples Test
Levene's Test for t-test for Equality of Means
95% Confidence
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Lower
Bound
Upper
Bound
ufone -.17904 .09546 .332 -.4405 .0824
warid -.06681 .11362 .977 -.3780 .2443
zong -.65137 .24800 .067 -1.3305 .0278
telenor -.14139 .11514 .735 -.4567 .1739
mobilink .17904 .09546 .332 -.0824 .4405
warid .11223 .10226 .808 -.1678 .3923
zong -.47233 .24300 .296 -1.1378 .1931
telenor .03765 .10395 .996 -.2470 .3223
mobilink .06681 .11362 .977 -.2443 .3780
ufone -.11223 .10226 .808 -.3923 .1678
zong -.58457 .25069 .137 -1.2711 .1020
telenor -.07459 .12084 .972 -.4055 .2563
mobilink .65137 .24800 .067 -.0278 1.3305
ufone .47233 .24300 .296 -.1931 1.1378
warid .58457 .25069 .137 -.1020 1.2711
telenor .50998 .25138 .254 -.1784 1.1984
mobilink .14139 .11514 .735 -.1739 .4567
ufone -.03765 .10395 .996 -.3223 .2470
warid .07459 .12084 .972 -.2563 .4055
zong -.50998 .25138 .254 -1.1984 .1784
ufone
-.35411
*
.10710 .009 -.6473 -.0609
warid -.01415 .12740 1.000 -.3629 .3346
zong -.23099 .27671 .920 -.9886 .5266
telenor -.30242 .13110 .144 -.6614 .0565
mobilink
.35411
*
.10710 .009 .0609 .6473
warid
.33996
*
.11453 .026 .0264 .6535
zong .12312 .27102 .991 -.6189 .8651
telenor .05169 .11863 .992 -.2731 .3765
mobilink .01415 .12740 1.000 -.3346 .3629
ufone
-.33996
*
.11453 .026 -.6535 -.0264
zong -.21685 .27967 .938 -.9825 .5488
telenor -.28827 .13724 .221 -.6640 .0875
mobilink .23099 .27671 .920 -.5266 .9886
ufone -.12312 .27102 .991 -.8651 .6189
warid .21685 .27967 .938 -.5488 .9825
telenor -.07143 .28137 .999 -.8418 .6989
mobilink .30242 .13110 .144 -.0565 .6614
ufone -.05169 .11863 .992 -.3765 .2731
warid .28827 .13724 .221 -.0875 .6640
zong .07143 .28137 .999 -.6989 .8418
Multiple Comparisons
Tukey HSD
Dependent
Variable
(I)
company
(J)
company
Mean
Difference
(I-J) Std. Error Sig.
95% Confidence
Interval
billing service mobilink
ufone
warid
zong
telenor
network quality mobilink
ufone
warid
zong
telenor
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uf one . 00948 . 08495 1.000 -.2231 .2420
wari d . 08149 . 10088 .928 -.1947 .3577
zong - . 30113 . 21876 .643 -.9001 .2978
telenor - . 03526 . 10380 .997 -.3194 .2489
mobi l i nk - . 00948 . 08495 1.000 -.2420 .2231
wari d . 07201 . 09057 .932 -.1760 .3200
zong - . 31061 . 21420 .596 -.8971 .2758
telenor - . 04473 . 09382 .989 -.3016 .2121
mobi l i nk - . 08149 . 10088 .928 -.3577 .1947
uf one - . 07201 . 09057 .932 -.3200 .1760
zong - . 38262 . 22100 .416 -.9877 .2225
telenor - . 11674 . 10845 .819 -.4137 .1802
mobi l i nk . 30113 . 21876 .643 -.2978 .9001
uf one . 31061 . 21420 .596 -.2758 .8971
wari d . 38262 . 22100 .416 -.2225 .9877
telenor . 26587 . 22235 .754 -.3429 .8746
mobi l i nk . 03526 . 10380 .997 -.2489 .3194
uf one . 04473 . 09382 .989 -.2121 .3016
wari d . 11674 . 10845 .819 -.1802 .4137
zong - . 26587 . 22235 .754 -.8746 .3429
uf one - . 00213 . 07105 1.000 -.1967 .1924
wari d . 06557 . 08415 .937 -.1648 .2960
zong . 12202 . 18220 .963 -.3768 .6209
telenor - . 00099 . 08658 1.000 -.2380 .2361
mobi l i nk . 00213 . 07105 1.000 -.1924 .1967
wari d . 06770 . 07553 .898 -.1391 .2745
zong . 12415 . 17838 .957 -.3642 .6125
telenor . 00113 . 07823 1.000 -.2130 .2153
mobi l i nk - . 06557 . 08415 .937 -.2960 .1648
uf one - . 06770 . 07553 .898 -.2745 .1391
zong . 05645 . 18399 .998 -.4473 .5602
telenor - . 06656 . 09029 .948 -.3138 .1806
mobi l i nk - . 12202 . 18220 .963 -.6209 .3768
uf one - . 12415 . 17838 .957 -.6125 .3642
wari d - . 05645 . 18399 .998 -.5602 .4473
telenor - . 12302 . 18512 .964 -.6298 .3838
mobi l i nk . 00099 . 08658 1.000 -.2361 .2380
uf one - . 00113 . 07823 1.000 -.2153 .2130
wari d . 06656 . 09029 .948 -.1806 .3138
zong . 12302 . 18512 .964 -.3838 .6298
uf one . 17241 . 07040 .104 -.0203 .3652
wari d . 07824 . 08360 .883 -.1507 .3071
zong . 46534 . 18130 .078 -.0310 .9617
telenor . 02784 . 08602 .998 -.2077 .2634
mobi l i nk - . 17241 . 07040 .104 -.3652 .0203
wari d - . 09417 . 07507 .719 -.2997 .1114
zong . 29293 . 17752 .466 -.1931 .7790
telenor - . 14457 . 07775 .341 -.3574 .0683
mobi l i nk - . 07824 . 08360 .883 -.3071 .1507
uf one . 09417 . 07507 .719 -.1114 .2997
zong . 38710 . 18316 .216 -.1144 .8886
telenor - . 05040 . 08988 .981 -.2965 .1957
mobi l i nk - . 46534 . 18130 .078 -.9617 .0310
uf one - . 29293 . 17752 .466 -.7790 .1931
wari d - . 38710 . 18316 .216 -.8886 .1144
telenor - . 43750 . 18428 .124 -.9420 .0670
mobi l i nk - . 02784 . 08602 .998 -.2634 .2077
uf one . 14457 . 07775 .341 -.0683 .3574
wari d . 05040 . 08988 .981 -.1957 .2965
zong . 43750 . 18428 .124 -.0670 .9420
cust omer
support
mobi l i nk
uf one
wari d
zong
telenor
data services mobi l i nk
uf one
wari d
zong
telenor
economi c val ue mobi l i nk
uf one
wari d
zong
telenor
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uf one . 07931 . 08367 . 878 - . 1498 . 3084
war i d . 07222 . 09936 . 950 - . 1998 . 3443
zong -. 01917 . 21546 1. 000 - . 6091 . 5707
t el enor . 12964 . 10224 . 711 - . 1503 . 4095
mobi l i nk -. 07931 . 08367 . 878 - . 3084 . 1498
war i d -. 00709 . 08921 1. 000 - . 2513 . 2372
zong -. 09848 . 21098 . 990 - . 6761 . 4791
t el enor . 05032 . 09241 . 983 - . 2027 . 3033
mobi l i nk -. 07222 . 09936 . 950 - . 3443 . 1998
uf one . 00709 . 08921 1. 000 - . 2372 . 2513
zong -. 09140 . 21768 . 993 - . 6874 . 5046
t el enor . 05741 . 10682 . 983 - . 2350 . 3499
mobi l i nk . 01917 . 21546 1. 000 - . 5707 . 6091
uf one . 09848 . 21098 . 990 - . 4791 . 6761
war i d . 09140 . 21768 . 993 - . 5046 . 6874
t el enor . 14881 . 21901 . 961 - . 4508 . 7484
mobi l i nk -. 12964 . 10224 . 711 - . 4095 . 1503
uf one -. 05032 . 09241 . 983 - . 3033 . 2027
war i d -. 05741 . 10682 . 983 - . 3499 . 2350
zong -. 14881 . 21901 . 961 - . 7484 . 4508
uf one . 11026 . 07922 . 633 - . 1066 . 3272
war i d . 20378 . 09408 . 194 - . 0538 . 4613
zong -. 04757 . 20401 . 999 - . 6061 . 5110
t el enor . 19648 . 09680 . 253 - . 0686 . 4615
mobi l i nk -. 11026 . 07922 . 633 - . 3272 . 1066
war i d . 09352 . 08447 . 803 - . 1378 . 3248
zong -. 15783 . 19976 . 933 - . 7048 . 3891
t el enor . 08622 . 08750 . 862 - . 1533 . 3258
mobi l i nk -. 20378 . 09408 . 194 - . 4613 . 0538
uf one -. 09352 . 08447 . 803 - . 3248 . 1378
zong -. 25134 . 20611 . 740 - . 8156 . 3130
t el enor -. 00730 . 10114 1. 000 - . 2842 . 2696
mobi l i nk . 04757 . 20401 . 999 - . 5110 . 6061
uf one . 15783 . 19976 . 933 - . 3891 . 7048
war i d . 25134 . 20611 . 740 - . 3130 . 8156
t el enor . 24405 . 20737 . 765 - . 3237 . 8118
mobi l i nk -. 19648 . 09680 . 253 - . 4615 . 0686
uf one -. 08622 . 08750 . 862 - . 3258 . 1533
war i d . 00730 . 10114 1. 000 - . 2696 . 2842
zong -. 24405 . 20737 . 765 - . 8118 . 3237
uf one . 20565 . 09188 . 167 - . 0459 . 4572
war i d . 25936 . 10892 . 122 - . 0388 . 5576
zong . 13839 . 23582 . 977 - . 5073 . 7840
t el enor . 16815 . 11206 . 563 - . 1387 . 4750
mobi l i nk -. 20565 . 09188 . 167 - . 4572 . 0459
war i d . 05371 . 09768 . 982 - . 2137 . 3211
zong -. 06726 . 23084 . 998 - . 6993 . 5648
t el enor -. 03750 . 10117 . 996 - . 3145 . 2395
mobi l i nk -. 25936 . 10892 . 122 - . 5576 . 0388
uf one -. 05371 . 09768 . 982 - . 3211 . 2137
zong -. 12097 . 23814 . 987 - . 7730 . 5310
t el enor -. 09121 . 11686 . 936 - . 4112 . 2288
mobi l i nk -. 13839 . 23582 . 977 - . 7840 . 5073
uf one . 06726 . 23084 . 998 - . 5648 . 6993
war i d . 12097 . 23814 . 987 - . 5310 . 7730
t el enor . 02976 . 23959 1. 000 - . 6262 . 6857
mobi l i nk -. 16815 . 11206 . 563 - . 4750 . 1387
uf one . 03750 . 10117 . 996 - . 2395 . 3145
war i d . 09121 . 11686 . 936 - . 2288 . 4112
zong -. 02976 . 23959 1. 000 - . 6857 . 6262
emot i onal val ue mobi l i nk
uf one
wari d
zong
t el enor
sat i sf act i on mobi l i nk
uf one
wari d
zong
t el enor
*. The mean di f f erence i s si gni f i cant at t he 0. 05 l evel .
l oyal t y mobi l i nk
uf one
wari d
zong
t el enor
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APPENDIX II (THE QUESTIONNAIRE)
For IOBM Staff
Desi gnat i on: _____________________ Qual i fi cat i on: _____________
Age:_________ Sex: M / F
For IOBM Students
Name:___________________ Program:_____________ Age:________ Sex: M / F
1. Which mobile company do you prefer/ use.
%Mobilink %Ufone %Warid %Zong %Telenor
2. Reasons of selecting this mobile company? (choose all that apply)
Economical Call rates
SMS Packages
Friendly customer support
Free offers
Free downloading
Loads of SMS packages
Loads of call rates packages
Smooth GPRS connectivity
Any other (please specify)______________________________
3. Are you the permanent customer of the mobile service you selected in Q.1
Yes / No
4. If no, which mobile service you were using before.
Mobilink Ufone Warid Zong Telenor
5. Are you the multiple mobile users? Yes / No
6. If yes, mark the mobile company you are using.
Mobilink Ufone Warid Zong Telenor
7. What package do you prefer (post paid/ pre paid)
Prepaid Post paid
8. Your preferred mobile company always provides accurate billing.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
9. Your mobile company resolves billing issues quickly.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
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10. Your preferred mobile company provides high voice quality.
Strongly Agreed Agreed Dont know Disagree Strongly
Disagree
11. Voice quality of your selected mobile service is
Excellent Good Average Poor Very Poor
12. Coverage of your selected mobile service is
Excellent Good Average Poor Very Poor
13. When you contact customer support their behavior is rude.
Strongly Disagree Disagree Dont know Agreed
Strongly Agreed
14. Service agents provide inconsistent advices.
Strongly Disagree Disagree Dont know Agreed
Strongly Agreed
15. Call center personnel is not usually able to help with problems.
Strongly Disagree Disagree Dont know Agreed
Strongly Agreed
16. MMS service of your selected mobile service is
Excellent Good Average Poor Very Poor
17. SMS service of your selected mobile service is
Excellent Good Average Poor Very Poor
18. Downloading ring tones, music information, and news of your selected mobile
service is friendly.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
19. Call rate packages of your selected mobile service are very economical.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
20. You get all benefits for the price you are paying.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
21. Number of SMS you send per day.
1-10 11- 20 21-50 more than 50 Dont use SMS
22. SMS and call rate packages attracted you to use your selected mobile service.
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Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
23. You always feel bad about choosing your mobile service.
Strongly Disagree Disagree Dont know Agreed
Strongly Agreed
24. You are satisfied with decision to use your selected mobile service.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
25. It gives you pleasure, to use the selected service.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
26. You feel relaxed using your mobile services.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
27. You say positive things about the mobile company and services you
use to others.
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
28. You want to see your friends, family members using this mobile service?
Strongly Agreed Agreed Dont know Disagree
Strongly Disagree
References:
1. Anderson, R.E. and S. Srinivasan, S.S (2003) E-Satisfaction and E-Loyalty:
A contingency Framework. Published in Psychology & Marketing, Vol. 20(2):
Pg 123-138. Published online in Wiley InterScience (www.interscience.
wiley.com
2. Archana, K and Lim, H (2008) Age differences in mobile service perceptions:
comparison of Generation Y and baby boomers. www.emeraldinsight.com/
0887-6045.htm. published in Journals of services marketing (2008) Pg.567-
577.
3. Ling Chen, Huang Wonil, Salvendy Gavriel (2006) Diversified user satisfaction
with advanced mobile phone features. Published by Springer Verlag 2006
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Differences in Mobile Service Perceptions
4. Oliver, R.L. (1980), A Cognitive model of the antecedents
and consequences of satisfaction decisions, Journal
of Marketing Research, Vol.17, November, pp. 460-9
5. Pakistan Telecommunication Authority (PTA) Annual
Report 2008-2009; Mobile Cellular Services-chapter
4, published online by PTA (11-January-2010).http:/
/www.pta.gov.pk/index.php?option=com_content
&task=view &id =361&Itemid=590
6. Pakistan Telecommunication Authority (PTA) Telecom
Indicators; Mobile Cellular Services published online
by PTA (11-March-2010). http://www.pta.gov.pk/
index.php?option =com_content&task =view&id
=650&Itemid =603
7. Sweeney, J.C., & Soutar, G.N. (2001). Consumer perceived
value: The development of a multiple item scale. Journal
of retailing, 77, 203-220
8. Yang, Z and Peterson, R .T (2004) Customer perceived
value, Satisfaction, and loyalty: The role of Switching
Costs. Published in Psychology &Marketing, Vol.
21(10): Pg 799-822. Published online in Wiley Inter
Science (www.interscience.wiley.com)
9. Zins, A.H. (2001), Relative attitudes and commitment
in customer loyalty models: some experiences in the
commercial air line industry, InternationalJournal of
Service Industry Management
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THE RELATIONSHIP OF
OPTIMISM AND JOB
SATISFACTION IN BUSINESS
SCHOOLS
Khalida Rauf
Department of Management
College of Business Management, Karachi
294
Research
Abstract
The present study was conducted to investigate the relation
of optimism and job satisfaction. A random sample of 80
permanent faculty members of Business schools of the
Defense region was selected. It was hypothesized that there
will be a positive correlation between optimism and job
satisfaction. In order to measure Optimism Scheier and Carver
(1985) 12- item, 5- point Likert type Optimism subscale of
Life Orientation Test was utilized, whereas, employees job-
satisfaction was measured by Oldham and Hackman (1980) a
3- item , 7 point Likert type scale. For quantitative analysis,
Pearson product moment correlation was calculated. Findings
reveal an insignificant inverse correlation between job
satisfaction and optimism.
Key words: Optimism, Job Satisfaction.
JEL Classification: Z0000
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The Relationship of Optimism and Job Satisfaction in Business Schools
Introduction and Literature Review
An optimist sees an opportunity in every calamity; a pessimist
sees a calamity in every opportunity Winston Churchill
Job satisfaction has been defined by Srivastava (2004)
as an appraisal of perceived job characteristics and emotional
experience at work. People evaluate their life experiences as
positive or negative on the basis of their experiences and
observations.
Cognition and emotion as an integral component of job
satisfaction i.e., how do we view our job and how do we feel
about it, determines our level job satisfaction (Hosie et.al.2005).
Attitudes are evaluative statements that we make about events
and people. When our attitude about something is classified as
good or bad reflects the cognitive component of attitude, if
we happen to like something or dont like something, this reflects
the affective component of attitude, and if our attitude about
something is categorized as an intention to do it or not do it
this is regarded as the behavioral component of attitude (Robins,
2008).The affective component seems to affect both the other
components, because if we do not agree to an idea, we do not like
it if we do not like it we do not practice it unless we arecompelled
to do so. Our feeling component influences our thinking and
action component.
Attitudes have been widely studied but the attitude of
optimism is emerging as a core concept in positive psychology.
Optimism is also a societal value and optimism is desirable in all
communities, Seligmans (1991) study corroborates this idea. He
applied his CAVE* technique (content analysis of verbatim
explanation) for analyzing speeches of candidates for US
presidential elections from 1900 to 1984, which covers 22 elections.
Out of 22 elections Americans chose those candidates 18 times
whose speeches were rich with optimistic vision.
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Tiger (1979) identified optimism as an adaptive
characteristic. He viewed optimism as a driver of human evolution,
since optimism gives rise to thinking about the future. When
people start anticipating the future they anticipate either good or
bad outcomes. According to this view optimism is inherent in
human nature. The same concept has been defined as Evolved
Psychological Mechanism by modern psychologists (Buss,
1991).Just like cognitive abilities optimism also evolves over a
period of time.
Lightsey (1996) reviewed literature on optimism and
concluded that an optimistic outlook leads to lesser incidence of
psychological dysfunctionalities and greater incidence of overall
well being. In addition to this, optimism and goal setting plus
achievement have been positively correlated.
Stein and Book (2001) view the optimistic approach as
essential for enhancing resilience, the capacity to bounce back in
the face of adversity. Why do optimists experience lifes inevitable
downturns so differently from the way pessimists do? Both over
the long haul probably encounter the same number of defeats.
The answer to this question lies in the self talk of the optimists
about themselves.
Over the past few years there has been a shift in the
relationship between personality variables and job outcomes.
Previously, researchers tended to focus on understanding of
variables such as honesty, confidence and dependability
(Conley,1984), whereas, modern researchers tend to focus on
dispositional affects, which consist of variables like optimism,
depression, positive affectivity, negative affectivity, warmth,
happiness, neuroticism and the like. The most common job
outcomes are those of job satisfaction and job commitment, In
this paper, job satisfaction is the point of concern, which is
multifaceted. The most commonly studied facets of job satisfaction
are pay, supervision, coworkers, work, and promotion
opportunities. According to individual differences theory,
differences in job satisfaction might be due to an individuals
tendency across situations to enjoy what she does. That is why
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The Relationship of Optimism and Job Satisfaction in Business Schools
certain types of people are generally satisfied and motivated
regardless of the type of the job they are doing (Weaver1978).
As Goleman( 1995) has stated that personality has a
strong influence on job satisfaction and he proposed that
managers should make the work environment conducive to
bringing out the best in the employees. We can trace the
manipulation of these variables as far back as Weitz (1952), who
proposed that the individuals general statement of dissatisfaction
with his job should be evaluated in terms of his tendency to
gripe.
The underlying concept of optimism is self-efficacy and
happiness, which gives an individual a belief that he can
successfully complete tasks and meet objectives (Goleman, 1999).
Diener et als study (2002) is in line with Golemans idea. They
are in agreement that positive affectivity (cheerfulness)
influences job outcomes such as job satisfaction. According to
them cheerful individuals are highly motivated. They readily
anticipate success and tackle difficulties and challenges and
consider obstacles as temporary feature of the situation. Even
when cheerful individuals lose their jobs they view unemployment
as a temporary condition. Another implication is that they are
adept at social skills due to their good mood therefore they are
offered desirable positions in teams and projects. Another
conclusion arrived at by the study was that personalities having
pleasant and positive appearance are likely to receive favorable
performance ratings. However, there were also some moderating
variables operating like parental income which provided them
opportunities to gain higher levels of education which
consequently provided them with good employment positions.
Staw and Ross (1985) measured job satisfaction on two
different occasions, once in 1966 and again in 1971, despite the
changes in pay rate and change in occupational status over a
period of time, the 1966 job satisfaction was a strong predictor of
1971 job satisfaction. The results strongly supported the relative
importance of dispositional effects in the determination of job
satisfaction.
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The Relationship of Optimism and Job Satisfaction in Business Schools Research
Staw extended his work in collaboration with Bell and
Clausen (1986) and correlated affective disposition with various
indicators of job satisfaction during early, middle and late
adolescence. They found that job satisfaction was significantly
and positively related to dispositional affect measured as far back
as early adolescence.
Luthans et al (2008) attempted to study the effect of
positive mood in health care services. Among other variables
studied were optimism and its relation with job performance.
Results were indicative of positive relationship between measured
state of optimism and supervisory performance appraisal.
Seligman (1998) while studying optimism in life
insurance agents discovered that optimism leads to higher
productivity and lower turnover in the workplace.
Fredricksons (2001) research showed that positive mood
facilitates problem solving skills and increases performance,
adaptation and well being. At another place, Wright (2005) states
that the development of psychological resources like hope,
optimism and resilience leads to enhanced job performance. These
results support the well established conjecture that happy workers
are productive workers.
Optimism also fosters a sense of ownership of work.
Once we take ownership of our work, we tend to feel an increased
sense of responsibility for achievement of organizational goals,
which in turn, promotes increased productivity.
In the present study, we will focus on whether these
factors operate in our culture particularly during the period of
recession.
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The Relationship of Optimism and Job Satisfaction in Business Schools
Method
Sample:
The sample consisted of 80 full time faculty members,
randomly selected from Business schools of the Defense region
in Karachi. The sample size was calculated through following
formula
1.33.log N
N = Population
1.33.log 320
3.33
320/3.33=96
Out of the population of 320, 96 faculty members were
contacted. 80 members filled the forms carefully, whereas,
remaining gave either incomplete information or did not respond.
Scores on Optimism were gathered through the
administration of Scheier and Carvers (1985) 12- item, 5 point
Likert type Optimism subscale of Life Orientation Test. Job-
Satisfaction was measured through the administration of Oldham
and Hackmans (1980), a 3- item, 7- point Likert-type scale. The
scales have been attached in appendices.
A letter stating the purpose of research was attached to
the questionnaire. Participants were assured of confidentiality
regarding their identity and the usefulness of data.
After completion of data collection, all the test protocols
were scored according to the instructions given. The responses
were scored in such a direction that high scores are indicative of
higher optimism and higher job satisfaction. For finding the
relationship between two variables product moment correlation
was calculated through SPSS 10.0.
Results and Analysis
It was almost 60 years back when Maslow (1954) spoke
of the need for shift in the focus of psychological studies of
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human behavior. He emphasized that instead of rectifying
abnormalities, psychology should focus on promoting positive
states among human beings, which in turn prevent the promotion
of negativity and abnormality.
The present study was undertaken to examine the
relationship between optimism and job satisfaction. Optimism is
viewed as a cognitive characteristic of expecting positive
outcomes whereas; job satisfaction is viewed as an affective
reaction towards ones job.
300
Table No 1 showing mean of the optimism and job satisfaction

Variables N Mean Maximum
score
Optimism 80 38.57 60
Job satisfaction 80 14.67 21


Table No 1 shows mean scores of job satisfaction and
optimism. The scores of job satisfaction range from 3 to 21 with
mean of 14.67, which means that response category of respondents
cluster around 14 and 15.The scores of optimism range from 12-
60 with mean of 38.57, which means that response category of
respondents, cluster around 38 and 39. These results are also
supported by the analyses of figure 1 and 2.
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The Relationship of Optimism and Job Satisfaction in Business Schools
Table No 2 showing correlation of optimism and job satisfaction
Variables Job
satisfaction
optimism Pearson Correlation
-.034
Sig (2-tailed) .255 p>.05
N 80

Analysis of Figure no 1 shows that high scores of
optimism cluster in the middle and dispersed at the ends. The
curve appears to be platekurtic. The y axis shows number of
respondents and x axis shows distribution of scores along the
normal curve.
301
Figure No 1 showing distribution of scores on the variable of optimism

scores on optimism
56.00
50.00
48.00
46.00
45.00
44.00
43.00
42.00
41.00
40.00
39.00
38.00
37.00
36.00
35.00
34.00
33.00
32.00
30.00
25.00
n
o

o
f

r
e
s
p
o
n
d
e
n
t
s
8
7
6
5
4
3
2
1
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The Relationship of Optimism and Job Satisfaction in Business Schools Research
Table No 2 shows that correlation of job satisfaction
and optimism is -.034, which is statistically insignificant inverse
relation between the two variables. The result is inconsistent
with researches reported in literature like Frederickson (2001) and
Wright (2005) which stated that positive resources like optimism,
hope and resilience lead to good performance and well being.
Munayan (2009) reports that according to EecuNet survey, during
recession most IT executives view their job as source of
satisfaction rather than having NO job at all. According to
these research executives in marketing, human resource,
consulting and finance reported high level of job satisfaction
during recession people generally appreciate their jobs. As people
become optimistic about the economy, their ability to find new
jobs also becomes greater. The sample was taken in the mid 2009,
when condition of the labour economic market was relatively
tight.
Figure No 2 showing distribution of scores on the variable of job
satisfaction
302



job satisfaction
19.00
18.00
17.00
16.00
15.00
14.00
13.00
12.00
11.00
10.00
9.00
8.00
7.00
6.00
n
o

o
f

r
e
s
p
o
n
d
e
n
t
s
12
11
10
9
8
7
6
5
4
3
2
1
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PAKISTAN BUSINESS REVIEW JULY 2010
The Relationship of Optimism and Job Satisfaction in Business Schools
Table No 3 shows item wise analysis of the relation of
job satisfaction and optimism. When 12 scale component of
optimism measure were correlated with 3 items of the job
satisfaction measure, these variables make 36 pairs of correlation.
It is evident from table No 3 that items of optimism which have
negative connotation such as uncertainty correlate negatively
with job satisfaction (p>.05), whereas, all the items of job
satisfaction have positive connotation . Low tolerance seems to
be negatively related to satisfaction (p=.05), implying that people
with low tolerance fail to experience job satisfaction, they seem
to give up in face of adversity, this might be attributable to their
low scores on negative expectation , item no 8 of the optimism
scale , which has weak correlation with all the items of job
satisfaction p>.05.
Table no 4 showing regression analysis Job Satisfaction as
dependent variable
Model R R Square Adjusted R
Square
Stanrdard error of
estimate
1 .131 .017 .004 3.5858



JOB SATIS FACTION
O Variables satisfaction worthwhileness Specific job
P Uncertainty -.010 p>.05 -.071 p>.05 .164 p>.05
T Relaxation -.278* p<.05 -.302* p<.05 -.56* p<.05
I Low tolerance -.299 p=.05 .102 p<.05 .001 p>.05
M Optimism .018 p>.05 -.117 p>.05 .018 p>05
I Future .051 p>.05 .102 p>.05 .130 p>.05
S Friends .038 p>.05 -.117 p>.05 -.042 p>.05
M Busy -0111 p>.05 -.069 p>.05 .117 p>.05
Negative
Expectations
.044 p>.05 .142 p>.05 .062 p>.05
Pessimism -.026 p>.05 .027 p>.05 .039 p>.05
Control .009 p>.05 -.139 p>.05 .032 p>.05
Hopefulness .222 p>.05 .043 p >.05 .073 p>.05
hopelessness .227 p=.05 .259* p<.05 -.109 p>.05

*Significant at .05 level ** Significant at .01 level

Analysis of Figure No 2 reveals that scores of job
satisfaction cluster around 16- 19 which makes the curve
negatively skewed , which means that respondents have reported
more job satisfaction than optimism. The y axis shows number of
respondents, and x axis shows distribution of scores on the
variable of job satisfaction.
Table No 3 showing correlation of components of optimism and
components of job satisfaction
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a Predictors: (Constant), OPTIMISM
In order to ascertain the role of other variables
contributing to job satisfaction, regression analysis of job
satisfaction was carried out as shown in table 4. The adjusted R
squares is found to be .004 which means that there are 96% chances
that there are other predictors of job satisfaction other than
optimism. According to the work of Akhter, Muniruddin and Sogra
(2008) teaching has been regarded as a very challenging job due
to its impact on students therefore it requires mental commitment
and loyalty and if teachers are not satisfied they will not be able
to perform well.
As Ali and Asghar (2009) report this dimension of job
satisfaction appears to be very clear but they do not appear to be
very clear about determinant of job satisfaction. Job satisfaction
is dependent upon several factors specially in academic
profession.
Pervaiz et al (1970) and Quin et al (1974) identified
organizational characteristics as a major determinant of job
satisfaction. Private sector business schools do provide facilities
and infra structure which facilitate the teaching process, such as
multimedia, overhead projector, white boards, stationary, clean
washrooms, politics free environment which faculty members may
not find otherwise in public sector institutions.
The academic profession also allows teachers to have
last quarter of the day free which allows them to expand their
earning and find time for leisure or creative activities.
Conclusion:
The study examines the relation of optimism and job
satisfaction. Out of 320 permanent faculty members of business
schools of the Defense region in Karachi, 80 were asked to rate
themselves on scales of job satisfaction and optimism. Results
showed statistically insignificant weak negative correlation
between job satisfaction and optimism (p>.05). The item wise
analysis of optimism and job satisfaction revealed that items of
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The Relationship of Optimism and Job Satisfaction in Business Schools
optimism having negative connotation correlate negatively with
items of job satisfaction having positive connotation ,but these
estimated coefficients are also insignificant at .05 level. The
results are consistent with Ahn & Gracias (2004) study.
According to them during periods of high unemployment people
generally appreciate their jobs irrespective of their psychological
variables.
The regression analysis of optimism revealed that there
are 96% chances that other variables are operative behind job
satisfaction. Bonner (1997) discovered benefits, bonus, overtime,
transport and medical allowance as having positive relationship
with job satisfaction of employees. However, Clark and Keatings
(1995) study shows that job satisfaction can exist in absence of
optimism because interaction with students is identified as the
most satisfying aspect for teachers. Future research is required
involving the inclusion of other variables in order to provide
clear insight about factors promoting job satisfaction.
References
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2004, 16. www.ideas.respec.org
Akhtar,I. Muniruddin,G.& Sogra,K.J.(2008). A trend Analysis of
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Bonner, M. (1997). Stages of change, Job Satisfaction , Weight
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Buss.D.M (1991) Evolutionary Personality Psychology. Annual
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Chakravarthy.B.S.(1986). Measuring performance. Strategic
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Organ, d.W& Konovosky, m.A (1989) Cognitive versus emotional
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APPENDIX A
Operational Definition:
Optimism:
Optimism is defined as the cognitive disposition to expect
favorable outcomes (Scheier & Carver, 1985).
OPTIMISM SCALE
Instructions: Below are statements with which you may agree or
disagree. Read each statement, and using the scale shown below,
please select the number that best describes how you think about
yourself right now and put that number in the blank before each
statement. Please take a few moments to focus on yourself and
what is going on in your life at this moment. Once you have this
here and now set, go ahead and answer each item according
to the following scale:
SCALE: 1= Strongly agree
2=Disagree
3=Neutral
4=Agree
5= Strongly agree
1.In uncertain times, I usually expect the best
2. Its easy for me to relax
3. If something can go wrong for me, it will.
4. I always look on the bright side o the things.
5. Right now I am optimistic about my future
6. I enjoy my friends a lot.
7. Its important for me to keep busy
8. I hardly ever expect things to go my way.
9. Things never work out the way I want them to.
10. I dont get upset too easily.
11. Im a believer in the idea that every cloud has
a silver lining.
12. I rarely count on good things happening to me.
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The following is the description of items of optimism
Item #1 relates to uncertainty
Item #2 relates to ability to relax
Item #3 relates to low tolerance
Item #4 relates to optimistic outlookItem #5 relates to
future orientation
Item #6 relates to friends
Item #7 relates to being busy
Item #8 relates to negative expectations
Item #9 relates to pessimism
Item #10 relates to being in control
Item #11 relates to hopefulness
Item #12 relates to hopelessness
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APPENDIX B
J ob satisfaction:
The term job satisfaction refers to a collection of feelings that
an individual holds towards his and her job (Robins, 2006).
JOB SATISFACTION SCALE
Please answer each of the following statements by circling one
number:
1. Generally speaking, I am very satisfied with my job.
1 2 3 4 5 6 7
Strongly disagree Strongly agree
2. I am generally satisfied with the feeling of worthwhile
accomplishment I get from doing this job.
1 2 3 4 5 6 7
Strongly disagree Strongly agree
3. I am generally satisfied with the kind of work I do in this
job.
1 2 3 4 5 6 7
Strongly disagree Strongly agree
Following is the description of items of job satisfaction
Item #1 relates to feelings of satisfaction
Item #2 relates to ability to feelings of being worthy
Item #3 relates to satisfaction with specific job
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Research The Incoherence of Islamic Social Sciences
312
THE INCOHERENCE OF
ISLAMIC SOCIAL SCIENCES:
SOME LESSONS FROM IMAM
IBN-i-KHALDOON
1
S.M.Mahboob-ul-Hassan Bukhari
Department of Philosophy
University of Karachi
Abstract
Social sciences are generally perceived to be value
neutral and capable of being with any other paradigm without
falling into contradiction. Attempts have been made to graft social
sciences into Islamic knowledge and Islamic Economics, Islamic
Sociology, Islamic Political theory etc have emerged as new
sciences. These new (grafted) sciences are aimed to bring
freedom and progress (Enlightenment values) in the society
without transcending the Islamic metaphysics. These sciences
rely on an empirical epistemology derived from the Enlightenment
which undermines the role of revelation. There appears to be a
conflict between Islamic epistemological foundations and quest
for freedom and progress. The present paper aims to illuminate
this conflict.
Social sciences presume a specific metaphysics and a
value specific epistemology. This metaphysically grounded
epistemology is not consistent with Islamic epistemology which
is also value laden on the basis of its own metaphysical
assumptions. Hence there appears to be no room for grafting
these two incommensurable paradigms: Islamic and Social
Sciences. Ibn-i-Khaldoon is relevant in this discourse. He critically
examines society and state while remaining loyal to the epistemology
which is specific to Islamic metaphysics and considers it essentially
non-contestable. This paper aims to explore this incompatibility
with reference to Ibn-i-Khaldoon.
JEL Classification: Z0000
1
Ibn-i- Khaldun is Abd-ar-Rahman b. Muhammad b. Khaldun al Hadrami
(1332-1406): leading statesman and Intellectual of the Islamic west;
wrote The Muqadimmah as part of a much larger History of the Berbers
during the interludes in a stormy political career spent largely in the
emirates of North Africa and Spain
.
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The Incoherence of Islamic Social Sciences
313
Introduction
The aim of this paper is to show that social sciences are
value laden and are not compatible with the Islamic paradigm of
knowledge. Ibn-i-Khaldon is relevant as a representative of
Islamic paradigm. Social scientists believe that social
phenomenon should not be evaluated on the grounds of religious
authority. Religious authority is assumed to be unreliable
epistemological grounds. Social phenomenon should be
evaluated on rational ground which is presumed to be reliable as
well as objective. This method of study has been derived from a
particular conception of human being. Social scientists believe
that human beings are autonomous and self dependent beings.
They assume that human beings are not created beings by some
Super Natural Being such as Allah. This metaphysics is presumed
in the rational method of the social sciences. Similarly this
metaphysics determines the direction or the telos of the inquiries
of social sciences. In these terms social sciences are value laden
not value neutral.
Islam is a revealed religion and its criterion to judge
any phenomenon be that social, economic, ethical, political etc
is Naql
2
that is Quran and Sunnah. Ijtihad is a secondary source
of Islamic epistemology. It is not equal to nusus. Ijtihad necessarily
follows the Quran and Sunnah. If a Mujtahid
3
carries out Ijtihad
and other Mujtahideen
4
verify it on the basis of the Quran and
Sunnah it becomes Ijmaa. Ijtihad is dependent on the Quran
and Sunnah. It has never been seen in abstraction in the history
of Islam. This epistemological ground is unquestionable in Islam
and regarded as transcendental at any time and place. Hence
Islamic paradigm is value specific.
2
Naql is the name of the Islamic episteme consists in Quran
and Hadith.
3
Mujtahid is an Islamic Jurist who carries out Ijtihad. He must
have command in Quran, Hadith, Arabic literature, And must
be practicing Muslim.
4
Mujtahideen is plural of Mujtahid in Arabic.
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The Islamic and the Enlightenment epistemological
paradigms are not only antagonistic in nature but in some respect
substantively incommensurable. They reveal two different states
of consciousness: being with Allah and being in the world. The
self interestedness ground of social sciences claims that rationality
provides self evident proof for its justification
5
. This claim is
debatable. Postmodernists for example Foucault and Derrida have
questioned the role of reason in the determination of good and
right. This view is from within the camp of capitalism. Both
modernists and post modernists reject religion as it is against
freedom t herefore het erogonous. Thi s shows t hat t he
epistemological base of social sciences is grounded in
metaphysical presumptions regarding the validity of the realm of
apodictic evidence.
The Islamic paradigm is based on the institution of the
prophet hood. Prophets are innocent, God chosen people. Prophet
Muhammad (SAW) asked us to lead the life according to the will
of Allah. He has set an excellent example in our lives and
demonstrated clearly what the will of Allah is. The determination
of good and right is done by Naql i.e by reference to and
justification what was revealed to prophet and his interpretation
of this revelation. Reason is not necessarily compatible with Naql
.Reason is not eliminated from Islamic paradigm altogether.
Rationality is treated as an instrument for following Naql. As
Imam Ghazali writes in Ihya that the rational is one who believes
in Allah, prophet Muhammad (SAW) and the day of judgment
(Imam Ghazali, 1993) . Rationality is incapable to discerning the
will of Allah. Post modernity has also shown the incapacity of
rationality to vindicate and justify the Enlightenment universals.
Both the social sciences and Islam presume two different
metaphysics and hence are not compatible. This paper seeks to
explicate the axiological incompatibilities of these two paradigms.
We intend to show that there is no possibility of any Islamic
sociology, Islamic economics or Islamic psychology or Islamic
5
Enlightenment is an intellectual movement that promotes the
rationality. Rationality is self-interestedness. Self-interestedness
presumes mans ability to master the nature.
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political theory. We shall take Imam Ibn-i- Khaldoon as an example
to represent Islamic paradigm because
1. Ibn-i-Khaldoon has been perceived by some as the first
social theorist. This is questionable. This perception is
common not only in the East but also in the West.
2. Ibn-i-Khaldoon has never transcended from Islamic
epistemology that is Naql. He relies exclusively on the
Quran and Sunnah as the sole fundamental epistemic
criterion to evaluate society which should be seen as a
part of the state. Imam Ibn-i-Khaldoon remains loyal to
the traditional Islamic epistemological paradigm in all
his writings.
Structure of the paper
This paper is divided into three sections. These three
sections shall be followed by a conclusion. The first section
deals with the issue that social scientific inquiries depend on
enlightenment rationality that is derived from metaphysical
conception of human being. This metaphysics determines the
telos of the social scientific inquiry which is progress. The second
section deals with the issue that Islam is based upon Naql and
telos is mans obtaining the pleasure of Allah almighty. Islamic
epistemology is based on and determined by its metaphysics.
The third section deals with the issue of the impossibility of
Islamic social sciences. This shall be discussed within Ibn-i-
Khaldunian paradigm.
The human
6
individuality is not simply, for the social
scientists, the object of social analysis and the subject of political
life; it provides the underpinning of their claim to knowledge.
Human individuality is not only the subject matter of social
sciences but also provide the social scientific method. This
6
Human is not man. Human is the object of the study of
Enlightenment disciplines (Social Sciences). Human is that who
values freedom, equality, and Progress. Human rights are applied
only to humans not to men.
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indicates that the telos of social sciences is the perpetuation of
human individuality.
Empiricists and rationalists alike tended to treat the
individual subject, with the self certainty which is derived from its
secure access to its own conscious states, as the foundation of all
knowledge (Callinicos 2003, p30.). The Cartesian self whom
Descartes calls the indubitable self is certain of the contents of its
own consciousness. He comes to this certainty by the self evident
truth that is I think therefore I am.
Social sciences presume the validity of the central
proposition of Kantian mechanism and Humes empiricism/
utilitarianism. Hume believes that nothing exists other than
sensations. On the basis of sensation causation as a natural law
in the world cant be known. Hume argues that natural laws are
presumed by human beings. It was human mental activity, and in
particular the tendency to project regular patterns onto the world
even where there existence could not be rationally demonstrated,
that was responsible for most of what are taken natural laws. The
human self, supposedly the pivot of all knowledge, turned out to
be nothing but a bundle or collection of different perceptions,
which succeed each other with an inconceivable rapidity and are
in a perpetual flux or movement (Hume 1978).
Hume holds that reason is the slave of the passions. He
wrote Reason is and ought to be the slave of the passions
(Hume1978, p415). For Hume reason is not an abstract autonomous
instrument to discover reality objectively but its contents are filled
by the passions. Hence Hume leaves no room for the articulation
of religious doctrines in the life of an individual. Humes empiricism
led to the Utilitarianism which became later a criterion on which
human behavior can be evaluated.
Kants response was not to deny that the world we
experience is the product of our mental activity. But he identified
the source of this activity which is the transcendental subject
underlying these impressions (Callinicos 2003). The very
possibility of conscious experience requires that we presuppose
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a transcendental unity of apperception to which our sense
perceptions could be attributed but which was not itself present in
experience.
Kant presumed that causality and objectivity are the
structures found in the human mind. Human experience is moulded
by the mental categories. Kant believes that the world is not out
there but in us. The world is experienced by the shape of the
human mind. Hence the self determines the structure of experiences.
The self, says Kant, does not derive its laws from but prescribes
them to nature (1954, p67)
The world as we experience it results in part from the
sensations provided by our senses and in part from the workings of
the mind (Barry & Velasquez 1988). The senses provide the content
of the experience; the mind provides its form and its structure. For
every event our senses perceive, the mind knows there is a prior
cause. Event as we experience them must occur in orderly
relationships are there because it has the ability to organize sense
perceptions by imposing these relationships on them before the
human being even become aware of them. These abilities allow
human being to make sense of its experience (Korner 1954).
According to Kant, human beings cant perceive things as
they actually are before the mind organizes the sensations of them.
Human beings never perceive things as they are in themselves which
he calls the noumena. All human beings can ever know are things as
they appear to us which he calls the phenomena (Korner1954). The
noumena stimulate the senses the sensations that follow are
organized by human mental categories so that humans perceive
them as phenomenal things of the ordered and casually connected
everyday world of experience. Kant held that the world around us is
a world that the human mind constructs so that world must conform
to mind. The mind constructs the world in accordance with our
ideas and categories. Because the world is constructed in accordance
with ideas, ideas have to be accurate representations of the world.
This revolutionary claim is often referred to as the Copernican
revolution equivalence in knowledge (Korner 1954, p30).
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Man is the lawgiver to the world which is shaped by the
internal structure of the mind. The more he practices this law giving
activity, the more progress he would bring about in the world. This is
Copernican social revolution.
In the Kantian framework the use of reason has been specified
in this world. Hence there is no possibility of religion within the Kantian
framework. The only space remaining is the Science. Kantian rationality
provides guide to scientific discourse.
The noumenal self, beyond but presupposed by sense
experience, was the source of the universal moral laws which regulated
individual conduct and provided the foundations of political life
(Callinicos2003, p30). Universalisable maxims can be generated by a
human thought. This was accepted by the Modernists. This
acceptance leaves no room for surrender before Allah. There is no
contradiction between phenomenal self and Noumenal self. Noumenal
self in fact facilitates the process of legitimizing the desires of the
phenomenal self. Universalisable principles will make things as they
ought to be, as they are desired to be by human beings.
Man is autonomous. He can discover reality independently. He needs
no help from any other agency. Instead he can know the reality as it is
and derive laws which he would implement in society and state. Hence
man is free. This freedom has been presumed in sciences in general
and in social sciences in particular.
Social sciences are thus committed to a particular conception
of being and of the world. Man is an actual or potential creator of the
world and the purpose of practical reason is to establish mans mastery
over the world (Ansari 2005,p73). Inquiry in social sciences presumes
that human subject which is free, autonomous and rational and self
interested. The world in which man is living is the creation of man
himself. Social sciences presume a particular world which is out there
to serve an autonomous, rational, self interested and free man. Man
should use his reason in a particular way. He should use reason to
satisfy his needs and prolong his survival in this world. This is known
as progress. The criterion of the right use of reason is its participation
in the process of progress.
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Social sciences presume the universe to be a self
contained, self regulating, dynamic mechanism the laws of motion
of which are to be discovered / determined be human self reflection
(Ansari 2005,p73). Knowledge is the product of the self
understanding of the self which imposes its order on the world.
The self itself cant be known, for it is the condition of knowledge.
Knowledge becomes possible only with rational, autonomous and
free man. Reason is a means for practicing the universalisable
commands of the (unknowable/ Noumenal) self.
Social sciences are committed to freedom the unlimited
right of the self to will its ends. Belief in the self legislating self
eliminates the need for seeking any moral authority for granting the
self this unlimited right. This unlimited right is given to a rational,
self interested man. He came to know about it by self reflection.
The discoveries of the self are not and ought not to be confirmed or
constrained by any other being. He is the sole determiner of every
thing in this world. He is not accountable for his thoughts, beliefs
and actions before any body. Therefore there is no possibility of
any other world like the hereafter in this scheme of things.
Social sciences are the total endorsement of the beliefs
underlying Kantian mechanism and Utilitarianism. Social sciences
are not ends in themselves. They are means for the realization of
enlightenment ends self fulfillment and progress. (Ansari 2005,
p73). Therefore we should not see them in abstraction. They have
been derived from the historical experience of the West at a certain
time which is known as Modernism. They are instrumental to real
specific values- values sanctioned by the enlightenment.
Social sciences recognize reason as the slave of the
passions. All individual acts and institutions are to be judged on
the basis of the felicific calculus. Man is recognized as sovereign in
the basic sense that he is the sole legitimate possessor of his body.
The social sciences are committed to the promotion of the passions
for money making (Hall 1989).
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II
In the second part of this paper we shall discuss
1. Islamic epistemology.
2. Its relation with Islamic metaphysics
3. The impossibility of incorporating Islamic
epistemology within any other metaphysically
grounded epistemology.
We divide the discussion of Islamic epistemology into
two parts: the source and the object. The source of Islamic
epistemology is Naql which means the original sources and
teachings have been transmitted with Tawatur. What has been
transmitted is the revelation. Allah almighty has revealed to the
prophet Muhammad (S.A.W). Revelation is of two types: Express
and Tacit. In Express revelation both the words and the meanings
are revealed to the prophet like the holy Quran. Tacit revelation is
that the meanings are revealed to the prophet but they are expressed
in the words of the prophet. Both of these terms of revelation are
similar because they are revealed to the Prophet (S.A.W).
Revelation is Nass (Text) in Islamic epistemology. Nass
can fall in the following categories:
1. Qatee-us-Subut and Qatee-ud-Dalat
2. Qatee-us-Subut and Zanni-ud-Dalat
3. Zanni-us- Subut and Zanni-ud-Dalat
4. Zanni-us- Subut and Qatee-ud-Dalat
The telos of Islamic knowledge is obtaining the pleasures
of Allah. Knowledge is only that which brings men close to Allah
almighty. The purpose of knowledge is Maash and Maad.
Knowledge helps the Momin to live in this world according to the
will of Allah almighty. Hence the Maash serves as an instrument
to protect our Maad.
Islamic epistemology is metaphysically grounded. It
presumes that Allah almighty is the creator of this world including
man. He defines the aim of the life of man. Man is considered to
be the slave of Allah almighty (Abdullah). He must submit
completely to the will of Allah almighty.
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Epistemology serves metaphysics in Islam. Islamic epistemology
is the instrument for knowing the will of Allah and to submit to
this will according to the way prescribed by the prophet
Muhammad (S.A.W).
Islamic epistemology can not serve the purpose of social
sciences because social sciences presume diametrically opposite
metaphysics and epistemology. They are incompatible. They do
not complement each other. They contradict each other. They
presume
Islamic Metaphysics Social Sciences
Man is a means to realize the
will of Allah
Man is an end in himself.
Man is the slave of Allah Man is free and autonomous
Allah created this world The World is the expression of the
human mind.
Man must worship Allah Man must control this world
Man must focus on his worship
to win reward in the hereafter.
Man must prolong his survival by using
his capacities to dominate nature.
Man must seek pleasure of Allah Reason must be used for material
progress to fulfill desire.

Hence there is no possibility of reconciling Islamic
epistemologies and Social Sciences. Sociology is not merely a
science of society but it is the science which shares the capitalist
society which is the collection of free, autonomous and rational
individuals should be organised. Here man is not treated as the
slave of Allah who seeks the pleasure of Allah. Therefore in
social theory, issues like Hijab, interacting with Muharimat and
non Muhariamt are not theorized. The sole purpose of Sociology
is to set the society free for progress in this world. Issue like
Hijab is not salient for capitalist society because human being
(the being theorized by Sociology) is not being with Allah. Hijab
is an issue for a man who seeks the pleasure of Allah. He would
follow the commandments of Allah. Therefore Islamic sociology
and Islamic social sciences are incoherent epistemological project.
Islamic society has never been and will never be
benefited from this kind of epistemological grafting. The history
of the previous century provides a clear example of this fact.
Islamic sociology has only addressed the issues importantly of
Muslims nationalism
7
. It has not served to increase the
opportunities to get the pleasure of Allah.
7
Muslim Nationalists value freedom and progress sanctioned by
Enlightenment. They do not transcend capitalist ideals.
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III
In third section I shall discuss
1. Ibn-i- Khalduns concept of Islamic epistemology and
metaphysics
2. Ibn-i- Khalduns concept of society and state.
3. Ibn-i- Khalduns commitment to Islamic epistemology and
metaphysics while analyzing society and state empirically.
Ibn-i-Khaldoons importance consists
1. in his postulating the Asabiya as the principal deriving
force of political action
2. in his projection of Islam as a universal civilization
grounded on the metaphysics and epistemology of Islam
and inviting mankind to the truth.
3. In his realization of the causal interdependence of the
several factors of social life in the power state.
4. in the concept of the parallel existence of the state founded
by a prophetic lawgiver; as distinct from the state built
on power in response to the human need for political
association
5. In his definition and analysis of the Islamic mulk as a
composite structure whose law is a mixture of sharia and
rational, political law.
6. in his fundamental recognition of the vital part which
religion should play in the life of the state, especially if it
is to transform the asabiya into a durable, cohesive
spiritual motive power
7. In that he postulates a causal law for the state which
determines its development in a cycle of origin, growth,
peak, decline, fall and resurgence. (Rosenthal 1988, p105)
Ibn-i- Khaldun argues that it is obligatory for every
Muslim to seek knowledge of the commandments of Allah almighty.
For him, Naql is the source of knowledge. The Quran and Hadith
are Uloom-un-Naqaliyah (episteme of Naql). He compares the
episteme of Naql with the sciences of Aql (rational) (Ibn-i-Khaldoon
2001, p403). He thinks that reason can only be helpful in worldly
affairs. It has nothing to do with faith (Unity of Allah, Finality of
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Prophet Muhammad (S.A.W), and Day of Judgment).
For Imam Ibn-i-Khaldoon , Naql is superior to Aql (Philosophy,
Metaphysics). He advises that Muslims should not indulge in
the sciences of Aql before they master the epistemes of Naql
(Ibn-i-Khaldoon 2001, p493).
Ibn-i-Khaldoon advices Muslims to strive to acquire
the disciplines of Naql. He thinks that epistemes of Naql
(Knowledges) are end in themselves. He condemns all those
who spend much time in acquiring instrumental sciences (Arabic
literature) (Ibn-i-Khaldoon 2001, p493). . He shares this line of
argument with Imam Ghazali. In IhyaUloomud-Din, Imam
Ghazali took the same position. This superiority of Ulom-un-
Naqaliyah over Uloom-ul-Aqaliya remained non contestable
among all the Jurists and Scholars of Islam since the time of Imam
Ghazali.
Ibn-i-Khaldoon prefers Ul oom-un-Naqal i yah
(disciplines of Naql) over sciences of Aql (rational). This shows
that he is truly committed to Islamic metaphysics. He is not ready
to subjugate Islamic epistemology or Islamic Metaphysics to
this worldly epistemes.
Ibn-i- Khaldun was well versed both in the philosophical
and traditional knowledges. His account of Muslim epistemes is
an authoritative summary of their scope, content and meaning.
But his attitude to the philosophical sciences is determined by
his traditionalism and empiricism. For him, sciences of Aql
(sciences based on the superiority of reason) are natural to man
and are found among all civilized nations. At the same time Ibn-
i-Khaldun stresses the grave danger of philosophy to religion.
And because religion is important for the state, there is a
consequent danger for the society. It is true that the philosophical
sciences form an integral part of Umran and are useful for
everybody. But since philosophy propounds doctrines in
opposition to the Sharia and its teachings as they are literally
interpreted, speculation is to be discouraged, unless the student
has first mastered the religious knowledges. On the other hand
he stresses the importance of speculation for the historian and
on the whole shares the view of Imam Gahzali who sees no harm
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in any subject as long as the teachings of the Nusus
8
are not
contradicted. Imam Ibn-i-Khaldoon as a convinced Muslim writes
for whom the prophetic law is perfect and alone adequate to lead
man to his happiness in the hereafter (Rosenthal 1988, p97).
For Ibn-i-Khaldoon, the purpose of the study of history
is to understand the causes of the rise and fall of states and
societies. He proves his point of view by providing evidences
from the history. History should not deal with the actions of the
few individuals but with the social and political development of
the people (Rosenthal 1988). Man has the power of reflection, a
tendency towards association, and the need for controlling
authority. Ibn-i-Khaldoon maintains that daulat
9
has its
foundations on one of two great moral principles, the Group Mind
Asabiya,
10
and religion.
He begins his Prolegomena with conditions of human
society in general and says that man is distinguished from mere
animals
1. By virtue of his intellect
2. By his need for an all pervading sovereign, for without
him it would be impossible to keep society intact
(differently to such animals as the ants and the bees
which keep together by sheer instinct)
3. By his search for means of subsistence
4. By his desire to live long with his fellow men, which in
the long run, leads to permanent abodes in towns and
cities.
While comparing nomadic society with the urban variety
he seems to have inclination towards the former. He says that it is
in the tribe that is found the Group Mind in all its perfection and
this is based on the spiritual and moral excellence of the people of
the desert (Saeed 1997).
1
Nusus is Arabic plural of Nass which means Quran or Hadith or
Both.
2
Daulah means state.
3
Asabiya is the bending of the like minded people which presumes
ties of kinship and blood.
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Social laws can be formulated only by gathering social
data on a very large scale and by working out their patterns. The
social data may be gathered from either faithful records of the
past events or careful observations of the present ones. Societies
are essentially dynamic like living organisms. He writes In this
way, the life span of a dynasty corresponds to the life of an
individual: it grows up and passes into an age of stagnation and
thence into retrogression (Muqaddimah, p345).
Ibn-i-Khaldoon views history as an organic whole.
Civilization is the object of inquiry for Ibn-i-Khaldoons historic
investigations. His analysis of history explores the social,
economic, political, theological domains. The State is seen as an
organism which functions according to the law of causality. The
growth of the state is a natural phenomenon for the social and
political survival of a civilization. Analysis of the state structure
is essential for understanding human civilization. Ibn-i-
Khaldoons analysis of society and state is epistemologically
relevant.
His methodology of historical analysis is empiricist but
his empirical analysis does not detach him from his commitment
to Islamic epistemology. His work is deeply rooted in the
traditional beliefs and convictions of Islam (Rosenthal 1988,
p84). His epistemological reliance on Quran and Sunnah enables
him to reconcile empiricism and Nusus. He assigns the essential
role to the holy Quran and Sunnah which provides the
epistemological criterion for an objective analysis of socio-
political structures. His vocabulary coined for this analysis is
derived from the epistemological frame work of the holy Quran
and Sunnah. Rosenthal acknowledges that Ibn-i-Khaldoons
empiricism manifest in his new science is matched by his
traditionalism. His traditionalism is epistemologically grounded
in Fiqh and Tafseer (Rosenthal 1988, p84).
Ibn-i-Khaldoon argues that the state is necessary for
the socio-political survival of any civilization and the constitution
of Asabiya is inevitable for the emergence of the state. Religion
provides a criterion to judge every socio-political transformation
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326
and the direction of this transformation. He thinks that the strength
of Asabiyah and that of religion complement each other.
The State or political order without telos looses its
capacity to sustain and survive (Suri, 2009). Imam Ibn-i-Khaldoon
believes that religion provides the telos which transcends
culturally specific and the historically determined political ideals
of Asabiya. Religion not only reconciles the natural dichotomy
between rural and urban life but it also reinforces the natural
strength of Asabiya because the call to religion increases the
force of Asabiya (Rosenthal 1988, p97). He argues that ethnic
particularity is not directly in conflict with Islam. It is
complementary to it. He claims that the religious call is not
complete and effective without Asabiyah. There is no conflict
involved in ethnic particularity and religious universality.
The role of religion is teleological. Religion plays a role in
the determination of the meaning of ethnic collectivity and spiritual
justification of this particularity. The Asabiya is not only the natural
agent of political domination, but its equation with religious
conviction. The religious dimension not only provides the teleological
basis of collectivity but it also provides the spiritual basis of political
hegemony. Rosenthal remarks the spiritual and temporal powers
are united in him. (Rosenthal 1988, p97).
The above mentioned analysis reveals the fact that Ibn-
i-Khaldun uses an empirical method which does not transcend
his commitment to the metaphysically grounded epistemology of
Islam. Now we move on to discuss the issue can he be legitimately
held to be the founder of modernist social theory? There are
three identifying features of a Modernist Social Theory:
1. It is concerned with society, which is conceived as being
distinct from political institutions;
2. It distinguishes between and seeks to make
generalizations about different kinds of society.
3. It is concerned in particular to analyze modernity- the
form of society which emerged in the modern West over
the past few centuries and has come to dominate the
world as a whole( Callinicos 2003, p10).
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Ibn-i-Khaldoon analyses society not as distinct from
the state. He thinks that society is the initial phase which leads
to the political state. He studies the society as the continuity of
the state. Hence there is no possibility to derive general principles
about different societies as independent institutions that is of
that state form. Ibn-i-Khaldun is not concerned in particular to
analyze modern society that has emerged in the modern West a
few centuries ago.
Calinicos writes that he is not the father of sociology
for two reasons
1. He analyzes the society on religious grounds.
2. His analysis is cyclical hence it leaves no room for
evaluating progress.(Callinicos2003,p11)
Calinicos argues that One (Imam Ibn-i-Khaldoon) may
use the concept without explicitly formulating it (Calinicos 1999,
p 11). Ibn-i-Khaldoon did not theorize the concept of Modernist
Sociology. He did not conceive society distinct from political
institutions. To view Ibn-i-Khaldoon the first sociologist would
be misleading for the following reasons:
1. His propositions about the varieties of social
organization are advanced within the framework of an
essentially religious discourse that seeks to emphasize
the limitations of human reason.
2. He conceives the relationship between the two main
social forms he analyses as a cyclical one.
Within the cyclical view of history, it is impossible to
formulate the idea of a radically novel form of society which
breaks with its precedents, and inaugurates a new pattern of
development (Ibid).
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Conclusion
Social sciences are value specific and presume a
particular metaphysics that is presumed by Enlightenment. This
metaphysics is in contradiction with Islamic metaphysics and
epistemology. Hence grafted sciences like Islamic economics,
Islamic sociology etc. are incoherent and are not
epistemologically justifiable. Imam Ibn-i-Khaldun has not founded
Islamic sociology at all.
References
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2. Ansari, J.A, Syed Zeeshan Arshad, 2006, Business
Ethics in Pakistan, Royal Book Company, Karachi.
3. Callinicos,A,T, 2003, Social Theory, Polity,U.K.
4. Hume, David, 1978, A Treatise of Human Nature, Oxford
University Press.
5. Hall,J,(1989)Liberalism, Pantheon ,London.
6. Imam Ghazali, 1993,Ihya ul uloom-id-Din, Darul
Ishat,Karachi.
7. Imam Ibn-i-Khaldoon, 2001, Muqaddimah (in Arabic),
Beirut.
8. Kant,I,1958, Groundwork for the Metaphysics of
Morals, London.
9. Rosenthal,E.I.J, 1988,Political thought in Medieval
Islam, Cambridge.
10. Suri, A.W, Jan 2007 , The possibility of Meta-History,
Market Forces.
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THE IMPACT OF POSITIVE
ATTITUDES ON JOB
SATISFACTION
Khalida Rauf
Department of Management
College of Business Management, Karachi
Abstract
The present study was conducted to find the relation of positive
psychology and job satisfaction. A convenient sample of 132
corporate was selected. It was hypothesized that there will be a
positive correlation between optimism and job satisfaction. In
order to measure Optimism Scheier and Carver (1985) scale was
utilized, whereas, employees job- satisfaction was measured by
Oldham and Hackman (1980) scale. For quantitative analysis,
Pearson product moment correlation was calculated. Findings
reveal a high correlation of job satisfaction with calmness,
hopefulness and belief in future dimension of optimism with job
satisfaction. A weak correlation was gauged for the dimension
of, uncertainty, being busy and friendship with job satisfaction
Whereas, a negative correlation was found for the dimensions
of low tolerance, negative expectation and pessimism with job
satisfaction.
Key words: Positive psychology, optimism, job satisfaction.
JEL Classification: Z0000
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Introduction
The concept of Positive Psychology was talked of
by Maslow (1954). According to him psychology should focus
on developing positive qualities rather than repairing negative
aspects of life.
Lucas and Benson (1930) studied the effect of positive
and negative impact of advertisement on sales; results showed
that positive appeals were not as effective as negative appeals.
Whereas, Isen (2003) has shown positive results of positive
emotional states on problem solving and decision making. This
proactive approach to organizational research is called Positive
Organizational Psychology, concepts such as growth, optimism,
contentment, humility, kindness and many more. Fredrickson
(2001) considered these positive feelings as fundamental human
strength.
Out of these concepts, the effect of optimism on
workplace outcomes has been found to be very positive. Number
of researches has shown that optimism leads to higher
productivity and lower turnover. According to Harter et al (2002):
Rose et al (2006) optimism leads to a sense of ownership which
works like upward spiral and leads to an increased sense of
achieving the organizational goals thus increases productivity.
Moreover, the effect of positive workplace relation is
known to lessen the adverse effects of stress on productivity
(Mc Mansen et al, 2004; Salovey et al 2000). Lavoie (2004) and
Cummings (2004) identified colleagues support as the most
important factor in preventing burnout and maintaining
organizational productivity.
Extensive review of literature reveals that effect of
optimism on work related attitudes such as job satisfaction has
been very positive. Job satisfaction has been defined by
Srivaster (2004) as an appraisal of perceived job characteristics
and emotional experience at work. People evaluate their life
experiences as either positive or negative on the basis of their
experiences and observations.
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Moreover, Hosie et al(2005) regarded cognition and
emotion as an integral component of job satisfaction ie; how do
we view our job and how do we feel about it.
Optimism is not just an attitude rather it is also a societal
value and optimism is desirable in all communities, Seligmans
(1991) study is in line with this idea. He applied his CAVE technique
(Content Analysis of verbatim explanation) for analyzing speeches
of candidates for US presidential elections from 1900 to 1984,
which covers 22 elections. Out of 22 elections Americans chose
those candidates 18 times, whose speeches were rich with
optimistic visions.
Optimism has been viewed as a forerunner of other
psychological resource capacities. Stein and Book (2001) view
optimistic approach as essential for enhancing resiliency, the
capacity to bounce back in the face of adversity. Why do optimists
experience lifes inevitable downturns so differently from the way
pessimists do? Both over the long haul probably encounter the
same number of defeats. The answer to this question lies in the
self talk of the optimists about themselves.
Luthans et al (2008) attempted to study the effect of
positive mood in health care services. Among other variables
studied were optimism and its relation with job performance. The
sample included 78 nurses from healthcare services. The
participants state of optimism was measured through self report
method and performance outcomes were measured through
supervisory performance appraisal. They calculated Spearman
correlation and one-way ANOVA to analyze the data. Results
were indicative of positive relationship between measured state
of optimism and supervisory performance appraisal.
In another study, Seligman (1998) concluded that
optimistic life insurance agents sold 37% more during the initial
two years than their less optimistic counterparts. Moreover it
was also discovered that optimism leads to higher productivity
and lower turnover in the workplace, a positive relationship
between optimism and workplace outcomes was identified.
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Fredricksons (2001) research discovered that positive
mood enables the individual to display a wide array of problem
solving skills and increase the performance, adaptation and well
being. Another study yielding similar results is that of Wright
(2005). According to this study the development of psychological
resources like hope, optimism and resiliency leads to enhanced
job performance. These results support the old conjecture that
happy workers are productive workers. Chakravarthy (1986)
emphasized the importance of employees satisfaction. Later,
Judge, Higgins, Thoresen and Barrick, (1999) and Ilies et al, (2006)
found supporting results stating that conscientiousness and
emotional stability are positively related to job satisfaction. Ilios
et al, (2006); Knovosky and Orgar, (1999); Organ and Konovosky,
(1989); Organ and Ryan, (1995); concluded that job satisfaction
is a predictor of organizational citizenship behavior.
In current study, we will focus on whether these factors
operate in our culture.
Hypothesis
There will be positive relationship between optimism
and job satisfaction.
Method
Sample:
The sample consisted of 166 male managers,
conveniently selected from banking and industrial sector, age
ranging from 30 to 55, with minimum experience of five years.
Measures:
Basic Information Form: Information regarding their age,
designation, gender and department was gauged though the
administration of basic information forms. Scores on Optimism
was gathered through the administration of Scheier and Cavers
(1985) 12- item, 5 point Likert type Optimism scale of Life
Orientation Test, ranging from Strongly Agree to Strongly
Disagree with minimum score of 12 and maximum score of 60,
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with Cronbach alpha .78. Job-Satisfaction was measured through
the administration of Oldham and Hackmans (1980), 3- item, 7-
point Likert-type scale, ranging from Strongly Disagree to
Strongly Agree with minimum score of 3 and maximum score of
21.with Cronbach alpha .87.
Procedure:
A letter stating the purpose of research was attached to
the questionnaire. Participants were also provided with the
assurance of confidentiality regarding the identity of the
participant and the usefulness of data.
Scoring and Statistical Analyses:
After completion of data collection, all the test protocols
were scored according to the instructions given. The responses
were scored in such a direction that high scores are indicative of
higher optimism and higher job satisfaction. For finding the
relationship between two variables Product Moment Correlation
were calculated through SPSS 10.0.
Operational Definition:
Optimism:
Optimism is defined as the cognitive disposition to expect
favorable outcomes (Scheier & Carver, 1985).
J ob satisfaction:
The term job satisfaction refers to a collection of feelings
that an individual holds towards his and her job (Robins, 2006).
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Graph No 1 showing distribution of scores on Job Satisfaction

Job Satisfaction
1-21
21.00
20.00
19.00
18.00
17.00
16.00
15.00
14.00
13.00
12. 00
11.00
10.00
9.00
7.00
6.00
n
u
m
b
e
r

o
f

r
e
s
p
o
n
d
e
n
t
s
30
20
10
0
Graph No 2 Showing distribution of scores on Optimism

Optimism
54.00
49.00
47. 00
45.00
43.00
41.00
39.00
37.00
35.00
33.00
31.00
29.00
27.00
Missing
N
u
m
b
e
r

o
f

r
e
s
p
o
n
d
e
n
t
s
30
20
10
0
334
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Research The Impact of Positive Attitude on Job Satisfaction
Table No. 1. Showing Correlation of Job Satisfaction and Optimism







Variables Job Satisfaction
Optimism -.005
Sig(2-tailed) .945
N 166
Graph No. 3. Showing Correlation of Job Satisfaction and Optimism


OPTIMISM
60 50 40 30 20 10
J
O
B
S
A
T
I
S
F
A
C
T
I
O
N
21
18
15
12
9
6
3
Table No 2 showing correlation of all the criteria of Optimism
with all the criteria of Job satisfaction

Variables Satisfaction worthwhile Specific job
Uncertainty .044p>.05 .053p>.05 .101,p>.05
Relaxation .183* p<.05 .075,p>.05 .099,p>.05
Low endurance .060,p>.05 -.052,p>.05 -.159,p>.05
Optimism .149,p>.05 .104,p>.05 .119,p>.05
Future .180*,p<.05 .078,p>.05 .180*,p<.05
Friends .011,p>.05 -.081,p>.05 .034,p>.05
Busy -.060,p>.05 .124,p>.05 .119p>.05
Negative
expectations
-.210*,p<.05 -.255**,p<.05 .189*,p<.05
Pessimism -.183*,p<.05 -.204,p<.05 -.219*,p<.05
Control .118,p>.05 -.244,p<.05 -.183*,p<.05
Hopefulness .116,p>.05 .247,p<.05 -.319**,p<.05
Hopelessness .050,p>.05 .041,p>.05 .065,p>.05


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Correlation matrix showing correlation of all the criteria of
job satisfaction and optimism





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Discussion
Results indicate that both the variables are independent
of each other, showing no correlation between each other.
Further statistical analysis reveals spread of correlation
between pairs of criteria related to job satisfaction and optimism.
Instead of focusing on what leads to dissatisfying
experience at work, the present study focuses on identifying
conditions that enables human beings to experience satisfaction,
happiness and other positive feelings (Seligman; 1998).
Analysis of sample reveals that mean scores on job
satisfaction is 15.9, (Graph No.1) which clusters around top
categories as the curve is negatively skewed. The same has been
observed by Konow and Early (2002) that respondents tend to
present themselves in socially desirable way. This bias is inherent
in the scales; responses are mainly based on the perception of
the item since no clear description of satisfaction item is provided
leaving the respondents to interpret questions on their own
perception. Similar results have been reported by Ahn and Gracia
(2004) for underdeveloping countries, where jobs are highly
appreciated during times of unemployment and particularly in
third world countries where there has always been dearth of jobs.
The present study proceeded with the assumption that
there will be positive correlation between job satisfaction and
optimism, r is -.005, p>.05, (Table No.1) depicting that there is no
correlation between the variables of job satisfaction and optimism.
The results show that all the items of job satisfaction have positive
correlation around p<.00. The same holds true for all the criteria
of optimism, ie; statements having positive connotation correlate
with each other positively such as criterion related to negative
expectation and criterion related to pessimism p< .000, items
related to bright future and optimistic outlook correlate significantly
with each other p< .004, items about being busy and optimism,
items related to relaxation and feelings of being in control also
correlate highly with each other p<.010 and .001 respectively. On
the other hand, items which have opposite connotation correlate
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highly with each other, such as criteria related to pessimism and
optimism p<.005, pessimism and relaxation p< .008 but in inverse
direction.
Correlation of criteria of job satisfaction and optimism:
Since all items of job satisfaction have positive
connotation consequently correlate positively with items of
optimism having positive connotation like relaxation, optimism,
being busy, being in control and hopeful. The strongest
correlation has been found between feelings of worthwhileness
and being in control and hopeful .244 and .247 respectively, the
same criterion has negative correlation with pessimism and
negative expectation. People who expect negative outcomes in
life and those who have low endurance do not consider
themselves worthy individuals.
Results do not come up with very high value of
correlation, this might be due to the fact that people working in
big organizations are generally reported as satisfied only 40% (
Goldfarb Consultant;1999).
Just as job satisfaction is the result of many factors, so
too job quality is the result of tangible and intangible factors
such as personality, attitude and positivity. There are number of
different workplace factors that influence overall job satisfaction
and these factors may vary from person to person. Employees
may be satisfied with few elements of job while simultaneously
dissatisfied with others. The same is true of present results where
correlation is weak positive.078, p<.05, for worthwhileness and
future prospects but strongly positive between satisfaction with
specific job and future prospects,ie;.180, p< .05. a strong positive
correlation was observed between worthwhileness, specific job
and being in control implying that when the person is in control
and peaceful he gains sense of worthwhileness and enjoys his
specific job. Interesting work is regarded as an important factor
leading to satisfaction (Sinha, 1958).
Employees who have positive perception of workplace
are less likely to engage in negative behavior. The same appears
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to play its role where all three criteria of job satisfaction ie;
satisfaction, worthwhileness and specific job, are found to be
negatively related to negative expectations of the outcomes, which
is a sub criteria of optimism, if one increases the other decreases
-.210, -.255,-.189. It appears that negativity keeps the person away
from experiencing satisfying states. A considerable body of
research supports that when perception of the workplace was
low, scores on the positive dimensions of personality were also
low (Colbert, Mount, Harter, Witt & Berrick, 2004).
The relationship between friendship and satisfaction
with ones job is .011, p> .05, Butterworth (2000) explains support
from coworkers as a matter of workplace setting, whether they
use collaborative management style or they interact outside the
workplace. However, the culture cannot be overlooked when
considering friendship, as society is moving away from
collectivistic to individualistic; people tend to be less supportive.
Moreover, the ever increasing rate of unemployment makes people
insecure and they become less cooperative with their colleagues
so they may not pose threat to them. The relationship also seems
moderated by personality, where social abilities and interests come
into play. However, Goldfarb Association (1999) reported
relationship among employees as second most important variable
leading to job satisfaction. Lavoie (2004) and Cummings (2004)
concluded that coworkers support is a major preventive factor of
burnout and increasing productivity.
Highly qualified people are reported to be more cheerful
and satisfied with regard to their job (Diener et al; 2002), he
identified parental income as the most important moderating
variable and served as a mediating role for respondents to avail
higher level of satisfaction.
Luthans and Youssef (2007) obtained .34 significant
correlation p<.01 between optimism and job satisfaction. They
concluded that 50 million of the average sampled organizations
outcomes may be attributable to its employees positive
psychological resource capacities.
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On the basis of overall results it can be concluded that
negative expectations and pessimism have significant inverse
correlation with job satisfaction p<.05.
Uncertainty, hopelessness, busy with work and optimism
have weak positive correlation with job satisfaction p >.05.
Whereas, relaxation, hopeful about future and being in
control correlate positively with two dimension of job satisfaction
with p<.05.
Conclusion:
Results show no significant relationship between job
satisfaction and optimism. This might be attributable to the fact
that jobs are highly valued in societies where unemployment is
prevailing (Ahn & Gracia, 2004). Their high scores on job
satisfaction might be attributable to some variables other than
optimism, like resiliency, positive thinking and even religiosity.
Low scores on few dimensions of optimism may be temporary
states which they are going through.
Recommendations:
1. The results show that there is a dire need to promote
psychological resource capacities through training and
development. Since the concept of optimism has been described
as state like variable that can be inculcated and developed (
(Luthans & Youssef &; 2007).
2. Another way to promote optimism is by emphasizing
desirable results rather than avoiding undesirable results.
3. By engaging in positive self talk.
4. By developing internalized control.
5. The focus should be on the facilitation of the use of
positive explanatory style to promote optimism.
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6. There is a need for hiring behavior experts who could
provide group as well as individualized program for such
improvements.
7. Expansion of sample size may give rise to a clearer
picture of relationship between two variables.
8. Furthermore, the variables of age, demographics are
to be controlled.
9. Future research should also include other
psychological resource variable such as hope, resiliency, wisdom
and courage (Youseef & Luthans; 2007).
Limitations:
On the basis of small sample size, a generalized statement is hard
to make.
Inclusion of gender was difficult due to scanty availability of
women in corporate level because society generally recommends
teaching as a feminine profession.
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workplace, Edward Elgar Publishing, 2006
Illies,R., Scott, B.A., & Judge,T.A.(2006). The interactive effects
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OPTIMISM, SELF-CONFIDENCE
AND WORK ENGAGEMENT OF
WORKERS IN ACCOUNTS AND
NURSING PROFESSIONS -
GENDER DIFFERENCES
Abstract
Purpose - This exploratory study compares optimism, self-
confidence and Work engagement of males and females workers
in the field of Accounts and Nursing. The purpose is to see
differences in optimism, self-confidence and work engagement
patterns of males and females when they choose professions
that are dominated by other genders. In Pakistan Accounting is
primarily a male-dominated profession and Nursing is a female
dominated profession.
Design/methodology/approach A cross-sectional study design
was employed for this study. The sample comprised 48 (60%)
accountants, out of which 18 (37%) male chartered accountants
and 30 (62.5 %) female chartered accountants. There were 32
(40%) nurses, out of which 21 (65%) female nurses and 11 (34%)
male nurses. Age ranged from 22-41 years (M =30 yrs, SD = 5.01)
Work experience range from 2-19 years. (M= 7 yrs, S.D. =5.3) 45
(56%) were single, 33 (41%) were married and 2(2%) were separated/
divorced. To measure optimism Life Orientation Test Revised
(LOT-R) was used. To measure self-confidence four items from
State Sport-Confidence Inventory (SSCI) was used after some
modifications. To assess work engagement Gallup Organisations
Q12 was used.
Results The overall mean score of participants is 14 on optimism,
10 on self confidence and 8 on work engagement. The mean
score of male and female participants indicate minor differences
Sehar Hassan,
Jinnah Nursing College
Jinnah Post-Graduate Medical Centre, Karachi
Research
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Optimism, Self-Confidence and Work Engagement of Workers
on optimism and self-confidence, work engagement. Male
participants had a slightly higher mean score on optimism, self-
confidence and work-engagement. T-test values indicate the
difference between male and female participants scores on
measures of optimism, self-confidence and work engagement are
significant (p<.001). There is also a significant difference (p<.001)
in optimism, self-confidence and work engagement patterns of
nurses and accountants. Work engagement patterns of male and
female accountants differ in some aspects. More number of female
accountants had better social relations at the workplace as in
comparison to males. The major difference in work engagement
patterns of males and females nurses were the expectation about
the work, where most of the male nurses were unclear about what
is expected from them at work. Higher percentage of females
reported dissatisfaction with their current work environment and
appraisal of their work at the workplace than males.
Discussion: These findings suggest that males generally and
specifically had slightly higher optimism and self-confidence as in
comparison to females. These findings are understandable. The
stereotypical upbringing of male and female child in our society
has a very strong impact on the psyche of males and females as
they grow and work in practical life. Although females are now
choosing a variety of professions and showing their abilities in all
fields but still in some situations, they are unable to display that
level of confidence and optimism, which is generally expressed by
our male members of society.
Conclusion: It is important to recognize and understand gender
differences and use them to improve the workplace settings. There
is a need to change societal attitudes in upbringing of children
that might help improving self-confidence and optimism of female
members of our society.
Originality/value This research will facilitate in understanding
how we can create a work environment where males and females
are treated similarly.
JEL Classification: Z1190
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Research Optimism, Self-Confidence and Work Engagement of Workers
Introduction
Generally, work has always been found important to
psychological functioning for both men and women. Kohn and
Schooler (1983) indicated that work leads to improve mental
flexibility and self-esteem. Work provides an optimal experience
or flow to professionals. (Csikszentmihalyi & Le Fevre, 1989)
Applebaum (1992) suggested that work is like the spine which
structures the way people live, how they contact material and
social reality, and how they achieve status and self-esteem.
Work is basic to the human condition, to the creation of the
human environment, and to the context of human relationships.
Jahoda (1982) considered employment as a social institution and
important for well-being. She identified that employment
provides time structure, social contact, collective purpose, social
status and regular activity. All these aspects are important for
mental well-being of individuals. Allison and Duncan (1988)
measured enjoyable flow among working women and found
work a primary source of flow for professional workers. Using
a similar questionnaire, a study of male and female office workers
also indicated that enjoyable flow is associated with well-being.
(Bryce & Haworth, 2002)
Historically, many professions have been gender-
stereotyped as suitable only for men or women. Gender
stereotypes promote the idea that women should be orienting
towards professions, which require nurturing or care taking
activities, whereas men should choose professions, which are
technology oriented. For instance, Accounting, business and
technical fields have been traditionally male-dominated
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professions where as medicine, particularly nursing and teaching
or secretarial jobs have been conventionally female dominated
professions. The nursing role has been seen as one of caring,
empathy, and service-orientation qualities typically seen as more
characteristic of women. Similarly, accounting, business and other
technical field require technical competence and commitment
which are seen as more characteristic of men.
However, this trend is changing in many societies. Both
men and women are now choosing variety of professions. More
women are working as managers, accountants, business
administrators and engineers. Similarly, men are also taking
nursing and other female dominated job like cooking and teaching
as their career choices. Although, the obvious gender-
stereotyping fence has been lowered, however, men and women
who chose to take up profession dominated by the opposite sex
still encounter numerous subtle barriers to success and
advancement in the field. For instance, male nurses face greater
psycho-social pressures at work. It is generally perceived that a
stereotypical man suppresses his emotions more often than
woman, and employment in a female-dominated profession places
greater pressure on male nurses to exhibit their masculinity.
(Blizzard, 2003) Similarly, women who work in fields dominated
by men face extra pressure to prove themselves able to do that
work as efficiently as men.
Very little research has investigated the role of optimism
related to self-confidence and work engagement particularly in
context of gender differences. This research is aimed at exploring
optimism, self-confidence and work engagement of male and
female nurses and accountants.
Optimism, Self-Confidence, Work Engagement and Gender
Optimism has been described as a generalized tendency
to expect positive outcomes. (Scheier & Carver, 1993) It is a belief
that good rather than bad things will happen in a persons life
(Scheier & Carver, 1993; p. 26) Optimism primarily functions as a
self-regulatory mechanism. According to control theory optimistic
individuals likely to remain engaged in efforts to reach desired
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goals, despite of the harsh conditions as long as an individuals
expectancies of ultimate success are sufficiently encouraging.
(Carver & Scheier, 1981). In this framework, optimism is referred
to as an evaluation style as this predisposition also influences
the way an individual thinks, feels and acts in a particular
situation. For example, an individual with a tendency to expect
that positive outcomes is likely to participate in career related
activities, set vocationally oriented goals, and respond with
positive affect.
Creed, Patton and Bartrum (2002) examined the
relationship of optimism and pessimism independently with
variables including career maturity, career decision making and
goals in students of high school. The findings suggested that
optimism and pessimism do perform a functionary role in the
development of high school students career maturity and
decision-making. Students with high levels of optimism showed
higher levels of career planning and career exploration, were
more decided about their career decision and had more career
goals. On the other hand, those high in pessimism were found to
have lower levels of career and decision making knowledge, were
more indecisive and reported lower levels of school achievement.
Petrone (2000) explored the relationship between career
maturity with vocational identity and optimism for the future in a
sample of male and female high school students. Females were
found to have high scores on measures of competency for career
decision-making than males, whereas males scored higher on
measures of vocational identity states and possessed a greater
sense of optimism for the future. This study, therefore,
demonstrated that males are more likely to develop vocational
identity and higher optimism for the future, whereas females
seemed better prepared to make a career choice. These findings
are important as they suggest that there may be different
trajectories or paths in the career development of females and
males.
In socio-psychological concept, self-confidence
associate with self-assuredness in ones personal judgment,
ability, power, etc. (The Macquarie Dictionary) Perception of
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oneself has an enormous impact one success in professional life.
Perception is reality and the more self confidence one has the
more chances is that one succeed in his or her field of work.
Chusmir et al, (1992) examined gender differences in self-
confidence among working managers in two situations (work and
social/family) as well as relationships between self-confidence,
personal adjustment, and gender identity. Results showed that
contrary to commonly held beliefs, the women and men managers
were not significantly different in self-confidence in either
situation, but both were higher in self-confidence at work than
the same gender was in the social/family environment. Strong
gender identity, either masculine or feminine, was associated with
self-confidence at work for both genders. Rosenthal, (1995)
studied self-confidence among women managers and the
psychological processes which may constrain it. One potentially
relevant process is how we perceive the causes of our success
and failure. The findings of study demonstrated significant
differences between womens and mens attributions for their
own success. Women managers more likely to attribute their
achievement of work goals to hard work and were more generous
in attributing ability as the cause of success of their subordinates
as compared to men.
In this study, it is explored whether male and female
display different work engagement patterns, self-confidence and
optimism levels.
Work engagement is an energetic, deep involvement with
work and includes energy, involvement, and professional efficacy.
Engagement confirms to an individual that they are good at doing
important work. Warr (1987) identified nine situational factors,
or principal environmental influences important for wellbeing.
These factors are: opportunity for control, environmental clarity,
opportunity for skill use, externally generated goals, variety,
opportunity for interpersonal contact, valued social position,
availability of money, and physical security. Warr (1987) indicated
that some enduring personal characteristics like baseline mental
health and demographic factors such as age, gender, values, and
abilities interact with situational factors and determine general
well-being of individuals. Baseline mental health includes
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neuroticism, self- confidence, hardiness, and locus of control.
These features of the environment interrelate with characteristics
of the person to facilitate or constrain psychological wellbeing
or mental health.
In a recent study, Koyuncu et al, (2006) examined
potential antecedents and consequences of work engagement
in a sample of women managers and professionals employed by
a large Turkish bank. Control, rewards and recognition and value
at workplace were found to predict all three engagement measures.
Dedication at work predicted job satisfaction and work
engagement, particularly vigor, predicted various psychological
well-being outcomes.
The associations of work stress, types of work and
gender-role orientation with psychological well-being and
sickness absence were investigated by Evans and Steptoe (2002).
588 male and female nurses and 387 male and female accountants
were interviewed. Female accountants were more likely than other
groups to have high anxiety scores on the Hospital Anxiety and
Depression Scales, while male nurses had the highest rates of
sickness absence. Male nurses and female accountants also
reported more work-related hassles than did female nurses and
male accountants. The results suggested that when men and
women occupy jobs in which they are in the cultural and numerical
minority, there may be adverse health effects that are gender-
specific. Psychological traits related to socially constructed
gender roles may also be relevant, and mediate in part the
differences in psychological well-being between men and women.
Current Study
Based on this review of the literature the current study
aims to examine the relationships between dispositional optimism,
self-confidence and work engagement and the pattern of
relationship between these three variables in both genders when
they are employed in male or female dominated jobs. Specifically,
it is predicted that the persons self-confidence and optimism
will directly be associated with work engagement. Professionals
who foresee favourable outcomes and have a high self-
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confidence will be more likely to have established interests and
positive work engagement. It is further predicted that that those
individuals who view themselves as active agents in their work
organizations will be more optimistic and high in self-confidence.
It is expected that there will be different pathways for females and
males concerning the optimism, self-confidence and work
engagement when they are employed in job perceived as
dominated by other sex. It is also hypothesised that optimism,
self-confidence and work engagement might be lowered among
women working in the male-dominated occupation (accountancy),
and men in the female-dominated occupation (nursing).
Method
Participants:
Participants were 80 male and female professionals
(Nurses and Chartered Accountants). Professionals working in
different hospitals and private organizations of Karachi and
Islamabad participated in this survey. Sample for study was
recruited through snowball sampling technique. There were 51
(63%) females and 29 (37%) males. Age ranged from 22-41 years
(M =30 yrs, SD = 5.01). There were 48 (60%) accountants. Out of
this 18 (37%) male chartered accountants and 30 (62.5 %) female
chartered accountants. Overall 32 (40%) nurses, out of which
there were 21 (65%) female nurses and 11 (34%) male nurses.
Work experience range from 2-19 years. (M= 7 yrs, S.D.=5.3) 45
(56%) were single, 33 (41%) were married and 2(2%) were separated/
divorced.
Measures:
Life Orientation Test Revised (LOT-R): The Revised
Life Orientation Test (LOT-R) is a 10-item measure developed by
Scheier et al (1994). Lee, (2005) demonstrated that LOT-R has
adequate internal consistency, reliability and validity. Items are
rated on a 5-piont Likert scale ranging from strongly disagrees to
strongly agree. Out of total 10 items, four items (item # 2, 5, 6, 8)
are filler items in revised scale and are not scored. Three items
(item # 1, 4 and 10) are positively worded statements which are
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Research Optimism, Self-Confidence and Work Engagement of Workers
scored on 0-4 scale and three items (item # 3, 7 and 9) are
negatively worded statements which are reverse scored from 4-
0. The minimum score is 0 and the maximum score is 24 because
filler items are not scored. Higher scores on LOT-R indicate
respondents optimistic attitude towards life whereas lower
scores indicate pessimism. (Scheier, Carver & Bridges, 1994)
State Sport-Confidence Inventory (SSCI): Four items
from the State Sport-Confidence Inventory (SSCI; Vealy, 1986)
with some modifications in wording of sentences was used to
assess the participants level of certainty that they have at one
particular situation related to their ability to be successful in
their professional lives. The items of SSCI measures are rated on
9 - point Likert scale from 1=low to 9=high. It is important to note
that the individuals were asked to compare their confidence to
the most self-confident person they know. The SSCI has an
alpha reliability coefficient of .95. SSCI is a more direct measure
of specific confidence as it can assess the confidence levels for
upcoming tasks.
Gallup Organisations Q12: The Gallup Q12 is a survey
designed to measure employee engagement. The instrument was
the result of hundreds of focus groups and interviews.
Researchers found that there were 12 key expectations, that when
satisfied, form the foundation of strong feelings of engagement.
Comparisons of engagement scores reveal that those with high
Q12 scores exhibit lower turnover, higher sales growth, better
productivity, better customer loyalty and other manifestations
of superior performance.
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Procedure:
RESULTS
I. Overall Optimism, Self-Confidence and Work Engagement of
Participants:
Table I: Mean score and S.D. values of male and female
participants on LOT(R), SSCI and Gallup Organization Q12(n=80)
Optimism
Scores
(max score=
24)
M (S.D.)
Self-confidence
Scores
(max score=12)
M (S.D.)
Work
Engagement
Scores
(max score = 12)
M (S.D.)
All
participants
14.4(2.5) 10.1(1.3) 8.9(2.3)
Male (n=29) 15.1(2.2) 9.96(1.2) 8.7(2.1)
Female
(n=51)
14.0(2.6) 10.1(1.4) 8.9(2.5)

Table I illustrates that overall mean score of participants is 14 on
optimism, 10 on self confidence and 8 on work engagement. There
are minor differences in the mean score of male and female
participants on optimism and self-confidence and work
engagement measures.
Table II: Mean score and S.D. values of accountants and nurses
on LOT(R), SSCI and Gallup Organization Q12(n=80)
Optimism Scores
(max score= 24)
M (S.D.)
Self-confidence
Scores
(max score=12)
M (S.D.)
Work
Engagement
Scores
(max score = 12)
M (S.D.)
Nurses (n=32) 15(2.5) 9.5(1.5) 9.4(2.5)
Accountants (n=48) 14(2.4) 10.5(1.0) 8.5(2.2)

Table II illustrates that mean score of nurses (including male and
female nurses) is slightly high on optimism and work engagement
as compared to accountants. However, mean score of nurses on
self-confidence is slightly lower than accountants.
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Table III: Professional Status and score of accountants on
LOT(R), SSCI and Work engagement
Paired Differences t Df Sig.


Mean Std.
Deviatio
n
Std.
Error
Mean
95% Confidence
Interval of the
Difference

Lower Upper
LOT(R)
-13.062 2.497 .2792 -13.6182 -12.50675 -46.784 79 .000
SSCI
-8.7125 1.600 .1789 -9.06869 -8.35631 -48.687 79 .000
Work Eng
-7.5000 2.3600 .2638 -8.02519 -6.97481 -28.425 79 .000

Table III illustrates that there is a significant difference (p<.001)
in optimism, self-confidence and work engagement of nurses
and accountants.
Table IV: Mean score and S.D. values of male and female
accountants on LOT(R), SSCI and Gallup Organization Q12 (n=48)
Optimism
Scores
(max score=
24)
M (S.D.)
Self-
confidence
Scores
(max
score=12)
M (S.D.)
Work
Engagement
Scores
(max score = 12)
M (S.D.)
Male Accountants
(n=18)
14.7(2.4) 11.3(.97) 8.0(2.2)
Female Accountants
(n=30)
13.0(2.4) 10.0(1.0) 9.0(2.2)

Table IV illustrates that mean score of male accountant are slightly
high on Optimism and Self-confidence as compared to female
accountants where as the mean score of females on work
engagement is slightly higher than males.
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Table V: Gender and score of accountants on LOT(R), SSCI, Work
engagement
Paired Differences t Df Sig.

Gender
Mean Std.
Deviatio
n
Std.
Error
Mean
95% Confidence
Interval of the
Difference

Lower Upper
LOT(R
)
-
12.45833
2.61711 .3777 -13.2182
-
11.69840
-32.981 47 .000
SSCI -8.87500 1.10367 .1593 -9.19547 -8.55453 -55.712 47 .000
Work
Eng
-6.93750 2.20643 .3184 -7.57818 -6.29682 -21.784 47 .000

Table V illustrates that there is a significant difference (p<.001) in
optimism, self-confidence and work engagement of male and female
accountants.
Table VI: Mean score and S.D. male and female nurses on LOT,
SSCI and Gallup Organization Q12 (n=32)
Optimism Scores
(max score= 24)
M (S.D.)
Self-confidence
Scores
(max score=12)
M (S.D.)
Work
Engagement
Scores
(max score = 12)
M (S.D.)
Male Nurses
(n=11)
15.7(1.7) 9.6(1.4) 10(1.3)
Female Nurses
(n=21)
14.0(2.8) 9.6(1.6) 9.0(2.9)

Table VI illustrates that mean score of male nurses are slightly
higher on optimism, self-confidence and work engagement as
compared to female nurses.
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Table VII: Gender and score of nurses on LOT(R), SSCI, Work
engagement
Paired Differences t Df Sig.

Gender
Mean Std.
Deviatio
n
Std.
Error
Mean
95% Confidence
Interval of the
Difference

Lower Upper
LOT(R
)
-13.3750 2.70901 .4788 -14.3517 -12.3983 -27.929 31 .000
SSCI
-7.87500 1.60141 .2830 -8.45237 -7.29763 -27.818 31 .000
Work
Eng
-7.75000 2.67606 .4730 -8.71482 -6.78518 -16.383 31 .000

Table VII illustrates that there is a difference (p<.001) in optimism,
self-confidence and work engagement of male and female nurses.
II: Work Engagement Patterns of male and female accountants
and nurses
Table VIII: Work Engagement Patterns of male and female
accountants
Statements Male
Accountants
(n=18)
Female Accountants
(n=30)
Yes(%) No(%) Yes(%) No(%)
1 Know what is expected at work 100% 100
2 Provided with necessary things at work 88.9% 2% 93% 6.7%
3 Have opportunity to do the best 66.7% 33.3% 53.3% 46.7%
4 Receive appraisal for good work 11.1% 88.9% 60% 40%
5 Boss care about you as a person 77.8% 22% 86.7% 13%
6 Someone at work encourages your
development
44% 55% 73% 26.7%
7 Your opinion is important at work 55.6% 44.4% 66% 33%
8 Company make you feel your job is
important
55.5% 44.4% 73% 26%
9 Associates committed to do quality work 100% 73% 26.7%
10 Have best friends at work 44% 55.6% 73% 26%
11 In last six someone talk about your
progress
55.6% 44.4% 66.7% 33%
12 Had opportunities at work to learn and
grow
88.9% 11.1% 86% 13.3%

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Table IX: Work Engagement Patterns of male and female nurses
Statements Male Nurses
(n=11)
Female Nurses
(n=21)
Yes(%) No(%) Yes(%) No(%)
1 Know what is expected at work 72% 27% 90% 9.5%
2 Provided with necessary things at work 81% 18% 66% 33%
3 Have opportunity to do the best 81% 18% 76% 23%
4 Receive appraisal for good work 81% 18% 66% 33%
5 Boss care about you as a person 27% 72% 57% 42%
6 Someone at work encourages your
development
100% 0 76% 23%
7 Your opinion is important at work 63% 36% 71% 28%
8 Company make you feel your job is
important
81% 18% 85% 14%
9 Associates committed to do quality work 63% 36% 71% 28%
10 Have best friends at work 100% 0 8% 19%
11 In last six someone talk about your
progress
81% 18% 81% 18%
12 Had opportunities at work to learn and
grow
90% 10% 95% 4.8%

Table IX illustrates there are differences in work engagement
patterns of males and females nurses. The major difference was
in the expectation about the work, where most of the male nurses
were unclear about what is expected from them at work. Higher
percentage of females were dissatisfied with the current work
environment and appraisal of their work at workplace as indicated
by their negative responses on item # 2, 3, 4 and 6. The positive
thing is that both male and female nurses appreciate the
opportunities to learn and grow at work which is likely to be
associated with positive psychological functioning.
Discussion
The study is aimed at investigating optimism, self-
confidence and work engagement patterns of male and female
employees working in professions dominated by the opposite
sex.
Previous investigators have suggested that women
generally display lower self-confidence than men. And many times
these sex differences are moderated by social comparison
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variables. Lenney, Gold & Browning, 1983) Findings of this study
demonstrated that females had slightly lower mean score on
self-confidence scale than males. This difference was also more
obvious in case of male and female accountants and less obvious
in case of male and female nurses.
The other important aim of study was to explore the
presence of optimism among male and female nurses and
accountants. The findings indicated that male accountants had
slightly higher mean score on Life Orientation Test (LOT) which
measures dispositional optimism. Similarly, male nurse also
displayed slightly higher mean score on optimism than females.
The difference was also significant (p<.001). These findings
suggest that males generally and specifically had slightly higher
optimism and self-confidence as compared to females. These
findings are understandable. The stereotypical upbringing of
male and female child in our society has very strong impact on
psyche of males and females as they grow and work in practical
life. Although females are now choosing a variety of professions
and showing their abilities in all fields but still sometimes they
are unable to display that level of confidence and optimism which
is generally expressed by our male members of society. It has
been generally observed that females have to play multiple roles
in our society. They are going through a period where they have
to prove themselves as able to work as full-time professionals at
the same time can manage household and look after children. As
a result, most of the professional women are overburdened and
overstressed which likely to impact their optimism and self-
confidence. Another likely explanation for this difference is also
the societys general attitude of maintaining confidence on
competence of men and encouraging male dominancy in
professional fields. Therefore, even when men are employed in
female dominated fields like nursing, the general impressions are
that male nurses are able to handle difficult and critical cases
more appropriately than females.
The higher level of optimism in both male nurses and
accountants than females is their secure career lives. Most of
the participants in this study are young male and female
accountants and nurses with average seven years of work
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experience. The female optimism might be influenced by issues
related to flourishing as career women.
A difference in the work engagement patterns of male
and female accountants and nurses was also observed. The
responses of male nurses displayed that they did not know exactly
what is expected from them however, on other items like provided
with opportunities to do the best, appraisal at work, having best
friends at work, most of the male nurses had positive responses.
The only major difference was in the expectation about the work,
where most of the male nurses were unclear about what is expected
from them at work. Contradictory to this in a study by Blizzard
(2002) which also used a Gallups employee engagements scale,
identified that the single, largest engagement differentiator
between male and female nurses was having a best friend at work.
Male nurses and female nurses exhibit similar responses to items
relating to the day-to-day aspects of the job, such as having the
opportunity to do what they do best every day, knowing what is
expected of them at work, and having the materials and equipment
to do their jobs right.
The work engagement patterns of male and female
accountants displayed that both male and female accountants
had positive work engagement patterns expect that more females
reported they get proper appraisal and recognition for their work
as compared to males. The findings of this study are somewhat
supported by another study which explored gender differences
in the work and career experiences of female and male managers
and supervisors in the hospitality and tourism sector in Turkey.
Both female and male managers displayed stable personality traits,
work experiences, job satisfaction and levels of psychological
well-being. (Koyuncu, Burke & Fiksenbaum, 2008).
The findings of present study showed that women
accountants knew very clearly that what is expected from them.
Also these women were satisfied with the opportunities provided
to them at work for their growth and development as well they get
appraisal for their work and able to develop positive social
relationship at work. These women are also committed to do
quality work. The findings of study are supported by a study
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conducted about two decades ago on 86 California women
entering nontraditional (i.e., male-dominated) skilled and
semiskilled occupations in 1975. The findings of that study
indicated that the challenge of surviving and succeeding in a
nontraditional job was dependent on factor like mastering skills,
increasing self-confidence, and getting along with male coworkers
and supervisorswas the predominant concern of the
respondents in the first year, and was their primary source of
both satisfaction and dissatisfaction in their work. In contrast,
those women who remained in a nontraditional job one year later
had become less concerned with these aspects of the job, and
more concerned with the traditional sources of satisfaction and
dissatisfaction common to blue-collar workers, e.g., the nature
of the work itself, working conditions, and relations with
management. (McIlwee, 1982)
The findings of present study educate us about gender
difference in level of optimism, self-confidence and work
engagement patterns. However, these findings cannot be
generalized as the sample size was very small also, there is need
for more investigations to indicate and understand the causes
of gender differences in this regard.
Conclusion
It can be concluded that both males and females do
display slight difference in their optimism, self-confidence and
the key is to recognize and understand gender differences
and use them to improve the workplace settings and change
societal attitudes to help women gain more confidence and
optimism. The high score on work engagement scale clearly
demonstrate their dedication and involvement with their jobs.
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References:
1. Blizzard, R. (2002). Healing the Gender Divide in Nursing:
Part III. Commentary. Gallup. Retrieved on 10 September, 2009
from http://www.gallup.com/poll/7138/healing-gender-divide-
nursing-part.aspx.
2. Koyuncu, M., Burke, R.J. and Fiksenbaum, L. (2006).
Work engagement among women managers and professionals in
a Turkish bank: Potential antecedents and consequences. Equal
Opportunities International. 25(4); 299-310.
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confidence of managers in work and social situations: A look at
gender differences. Sex Roles. 26(11); 497-512. doi. 10.1007/
BF00289871.
6. Evans, O, and Steptoe, A. (2002). The contribution of gender-
role orientation, work factors and home stressors to psychological
well-being and sickness absence in male- and female-dominated
occupational groups. Soc Sci Med, 54(4):481-92.
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BF00290054
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335 DOI: 10.1177/0730888482009003003
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Effect of Intrinsic and Extrinsic Motivation on Academic Performance Research
EFFECT OF INTRINSIC AND
EXTRINSIC MOTIVATION ON
ACADEMIC PERFORMANCE
Nadia Ayub
Department of Social Sciences
College of Business Management, Karachi
Abstract
The aim of the present study was to explore relationship between
intrinsic and extrinsic motivation on academic performance. Based
on literature review following hypotheses were formulated 1)
there would be a positive correlation between intrinsic and
extrinsic motivation on academic performance. 2). There would
be a gender difference on intrinsic and extrinsic motivation on
academic performance. A sample of 200 students (100 males and
100 females) was selected from different colleges of Karachi. The
age of the participants ranged from 18-21 years (with mean age of
18.56 years). Their educational level was at least intermediate
and socioeconomic status was middle and high class. The
Academic Motivation Scale (Vallerand, 1992) was administered
to assess academic intrinsic and extrinsic motivation and academic
performance was measured through last GPA. In order to interpret
the results Pearson Product Moment Correlation Coefficients
was calculated to assess relationship between academic
motivations. Results suggest that intrinsic and extrinsic
motivation and academic performance were positively
correlated(r=.563; n=200; sig=.000).Furthermore, gender
difference was found (t=4.324, p <.05) on motivation and academic
performance. To conclude, findings of the results illustrates that
motivation improves academic performance of the students. In
addition, there is gender difference in motivation type and
academic performance.
Key Words: Intrinsic Motivation, Extrinsic Motivation, Academic
Performance
JEL Classification: Z0000
363
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PAKISTAN BUSINESS REVIEW JULY 2010
Effect of Intrinsic and Extrinsic Motivation on Academic Performance
Introduction
Motivation is a significantly important factor for
academic learning and achievement across childhood through
adolescence (Elliot & Dweck, 2005). According to Uguroglu &
Walbert (1979), motivation is an important contributor to student
achievement. Research has shown that motivation is related to
various outcomes such as curiosity, persistence, learning and
performance (Deci and Ryan, 1985). According to Self-
determination theory (Ryan & Deci, 2000) there are three types
of motivation i.e. extrinsic motivation, intrinsic motivation, and
amotivation.
Extrinsic motivation can be defined as, it pertains to a
wide variety of behaviors that are engaged in as a means to an
end and not for their own sake (Deci, 1975). There are four-type
of extrinsic motivation according to self-determination theory
i.e. external regulation, introjections, and identification. External
regulation behavior is regulated through external means such as
rewards and constraints. In introjected regulation, an individual
begins to internalize the reasons for his or her actions.
Furthermore, the extent to which the behavior becomes valued
and judged important for the individual, and especially that it is
perceived as chosen by oneself, then the internalization of
extrinsic motives becomes regulated through identification.
Intrinsic motivation refers to be in an activity for itself,
and the pleasure and satisfaction derived from participation
(Deci, 1975). Academic intrinsic motivation plays a significant
role in achievement, competency and academic learning. Deci
and Ryan (1985) posit that intrinsic motivation stems from the
innate psychological needs of competence and self-
determination. Literature suggests intrinsic motivation reveals
the presence of three types of intrinsic motivation: to know, to
experience stimulation, and to accomplish things. Intrinsic
motivation to know relays to several constructs such as
exploration, curiosity, learning goals, intrinsic intellectuality, and
finally intrinsic motivation to learn (Gottfried, 1985; Harter, 1981).
Intrinsic motivation towards an accomplishment has been studied
in developmental psychology as well as in educational research
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Effect of Intrinsic and Extrinsic Motivation on Academic Performance Research
under the concept such as mastery motivation (Harter, 1981).
Other researchers suggest that individual interact with the
environment in order to feel competent, and to create unique
accomplishments (Deci, 1975; Deci and Ryan, 1985, 1991). Intrinsic
motivation to experience stimulation take place when someone
engages in an activity in order to experience stimulating sensations
(e.g., aesthetic experiences, sensory pleasure, with fun and
excitement) derived from ones engagement in the activity.
Research on the dynamic and holistic sensation of flow, on
feelings of excitement in intrinsic motivation, on aesthetic
stimulating experiences, and peak experiences is representative
of this form of intrinsic motivation.
Amotivated is the third type of motivation. In amotivated
motivation, individuals neither intrinsically motivated nor
extrinsically motivated. Amotivated individual experience feelings
of incompetence and expectancies of uncontrollability they
perceive their behavior as caused by forces out of their own
control. They feel undeceived, and start asking themselves why
in the world, they go to school. Eventually, they may stop
participating in academic activities.
Numerous studies suggested that from childhood
through adolescence, across varied populations, those with higher
academic intrinsic motivation have been found to be more
competent in school, generally evidencing significantly greater
academic achievement, more positive perceptions of their
academic competency, lower academic anxiety, and less extrinsic
motivation (Gottfried, A.W., Gottfried, Cook, & Morris, 2005).
Gender difference is one of the important variables in
motivation type. Literature shows that, boys show a greater
degree of extrinsic motivational orientation (Anderman &
Anderman, 1999), while girls show a greater intrinsic motivation
(Mecca & Holt, 1993). Whereas on academic performance
Schiefele, Krapp, and Winteler (1992) strongly suggested that,
male students performance accords their interest level more
than is the case for female students. In particular, female
students academic performance is less associated with their
interests than male students academic performance (Schiefele,
Krapp, & Winteler, 1992).
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PAKISTAN BUSINESS REVIEW JULY 2010
Effect of Intrinsic and Extrinsic Motivation on Academic Performance
In the light of above studies, the main objective of the
present study was to examine the relationship between extrinsic
and intrinsic motivation on academic performance. Furthermore,
this study explores the gender differences on the variable of
extrinsic motivations, and intrinsic motivation.
Methodology
Sample
The Sample comprised of 200 (i.e. 100 males; 100
females). The age range is between 18-21 years and means age
was 18.56. Each participant has completed his high school and
studies in various colleges situated in Karachi, Pakistan.
Participants belong to different socio-economic background. All
subjects volunteered to participate in the study.
Measure
A demographic formwas filled by the participants,
which included the information about age, gender, qualification,
family structure, and socio economic status.
Academic Motivation Scale (AMS; Vallerand et al.,
1992). The AMS consists of 28 items. Each sub scale consists
of four items each; thus, subs cales scores can range from four
to twenty-eight. There are seven sub scales on the AMS: Intrinsic
Motivation to Know (IMTK), Intrinsic Motivation to Accomplish
(IMTA), Intrinsic Motivation to Experience Stimulation (IMES),
Identified Regulation (EMID), Introjected Regulation (EMIN),
External Regulation (EMER), and Amotivation (AMOT). That
participants rated on a scale ranging from one (does not
correspond at all) to seven (corresponds exactly).
Procedure
The questionnaire was distributed to respondents, and
they completed the questionnaire manually. The data was
collected individually. At the beginning of each questionnaire,
an overview was provided. All respondents must fill a
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Effect of Intrinsic and Extrinsic Motivation on Academic Performance Research
demographic form, which includes information on gender, age,
qualification, family structure, and socio economic status. The
researcher gave direction for the Academic Motivation Scale
(Vallerand, 1992). Participation was voluntary and the responses
were anonymous. The respondents were informed about the
purpose of the research. The researcher informed participants
that all information would be kept confidential.
Statistical Analysis
After collection of data the test sheets were scored.
Academic Motivation Scale (Vallerand, 1992) was scored
according to the instructions given in the manual. Pearson Product
Moment Correlation Coefficient and t-test were applied through
Statistical Package for Social Sciences, 13 versions was used to
determine the relationship.
RESULTS
Table 1Correlation between Motivation and Academic
Performance
Note. Shows correlation between academic motivation and
academic performance significant at**p=.000
367

Grade Poi nt

Significance

Academi c
Motivation


. 563**

. 000

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PAKISTAN BUSINESS REVIEW JULY 2010
Effect of Intrinsic and Extrinsic Motivation on Academic Performance
Table 2 t- test Gender Difference on Academic Motivation and
Academic Performance
Note. Verifies Significant difference was found between male
and female (t= 4.324, df =198, p<.05) on the variable of academic
motivation and academic performance
Discusion
The basic aim of the study was to found out correlation
between extrinsic and intrinsic motivation on academic
performance. Furthermore, the study investigated the gender
difference on the variable of extrinsic and intrinsic motivation on
academic performance.
The result of the first hypothesis, which evaluates the
correlation between motivation and academic performance, is
found to be significant (r =.563; n=200). These findings are
consistent with previous literature. For example, Johnson (1996),
Broussard and Garrison (2004), Skaalvik and Skaalvik (2006), and
Sandra (2002) found a significant relationship between academic
performance and motivation. Similarly, Johnson (1996) found that
academic achievement is highly correlated with students
motivation. However, Bank and Finlapson (1980) found that
successful students were found to have significantly higher
motivation for achievement than unsuccessful students did.
Motivation types also affect on the performance of the
students. Intrinsic and extrinsic motivation effects on the
achievements and goals of the students performance. According
to Husman and Lens (1999), highly intrinsically motivated
students can simultaneously be extrinsic in terms of future goal
368

Variable

Gender

N

Me an

Std
Dev

t

df

Sig



Academic
Motivation

Female

200
131.13

6.386

4.324 198 .000

Ma l e

200 126.91

7.379


PAKISTAN BUSINESS REVIEW JULY 2010
Effect of Intrinsic and Extrinsic Motivation on Academic Performance Research
orientations. Furthermore, students who are intrinsically motivated
topersist longer, conquer more challenges, and demonstrate
accomplishments in their academic endeavors than those who
are extrinsically motivated (Pintrich & Garcia, 1991). Extrinsically
motivated students tend to focus on earning higher grades,
obtaining rewards and acceptance from peers. Researchers, for
example, Biehler & Snowman, (1990) believe that extrinsic
motivational factors diminish students intrinsic motivation.
Students extrinsic motivational factors combined with positive
future goals can actually facilitate their present value and intrinsic
motivation (Van Calster, Lens, & Nuttin, 1987).
According to the results, there is a gender difference on
the variable of extrinsic and intrinsic motivation on academic
performance (t=4.324, p <.05). These findings are consistent
with Chee, Pino and Smith (2005) indicated that female college
students are more likely to have higher academic ethics than male
students, which are characterized by higher academic attainment.
Furthermore, findings of the study suggested that females were
intrinsically motivated than males. In contrast, males were more
extrinsically motivated than females. The possible explanations
of these findings are that males are expected to be the main
breadwinner of the family in our society. For females, academic
performance and motivation is based on self-exploration and
internal satisfaction. This is the main reason that males are
extrinsically motivated as compare to females.
The findings support the significance of motivation to
academic performance. The results have implications for the
University teachers that they should try as much as they could to
motivate their students during instructions. The parents as well
as the government should engage in programmes that can motivate
the students to improve their academic performance. It is therefore,
hoped that these findings will serve as resource materials for
higher level educators, scholars, parent, universities authorities
psychologists, counselors, government, and significant others
who are concerned with the higher education academic progress
of the students.
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PAKISTAN BUSINESS REVIEW JULY 2010
Effect of Intrinsic and Extrinsic Motivation on Academic Performance
Conclusion
To conclude, findings of the study illustrate that
motivation improves academic performance of the students.
These findings suggest that when teachers are caring and
supportive and emphasize the teaching learning process over
the performance outcomes, and when they give feedback,
children tend to be motivated to achieve and to expect success
(Daniels, Kalkman, & McCombs, 2001). In addition, there is a
gender difference in motivation type and academic performance.
References
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PAKISTAN BUSINESS REVIEW JULY 2010
Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
Abstract
Poverty is a complex phenomenon, and different measures give
different perspectives as to its size and evolution. A variety of
alternative measures have been developed to correct these
limitations: these include measures based on the subjective
appreciation by individuals of their own ability to satisfy basic
needs and those measuring objective conditions like ownership
of consumer goods and access to various goods and services.
We describe the main concepts and methodological issues
underpinning the study of deprivation. We discuss the
deprivation as one way of measuring poverty. Much of the
interest in measuring deprivation stems from the work of
Townsend (1979). Townsend related the concept of deprivation
to the broader notion of inability of living a decent life. The
importance of this paper comes from the importance of the subject
itself, as it is the first of its kind that addresses deprivation in
Pakistan. Such studies are highly needed to decision-makers
who are in charge of drafting policies leading to reducing poverty
problems which are not synthesized in ordinary poverty studies.
This study has employed several indicators using methodological
measures for deprivation including: employment deprivation,
housing deprivation, education deprivation and health
deprivation. Then, combines indices to produce what is called
Index of Multiple Deprivation (IMD). The IMD was derived from
the indicators to reflect the overall conditions of the people by
each locality in Karachi. Once four sectoral indices have been
calculated, an overall Index of Multiple Deprivation (IMD) is
derived. Having considered various options, it is decided to
INDEX OF MULTIPLE
DEPRIVATIONS AS A
MEASURE OF POVERTY IN
KARACHI
Iqbal Zahid Siddiqui,
Junaid Saghir
University of Karachi, Karachi
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Index of Multiple Deprivations as a Measure of Poverty in Karachi
1. Introduction
Poverty is a complex phenomenon, and different
measures give different perspectives as to its size and
evolution. On the one side, comparative research relying
on an income threshold set at half of the median suggests
that poverty affects over 10% of the OECD population, and
that it has increased slightly over the past two decades. On
the other, evidence from the studies based on alternative
measures suggests that a much smaller minority of
households does not satisfy their basic needs and that their
incidence has declined even when income poverty was
rising (Callan et al., 1996).
These differences in appreciation conveyed by
different measures partly reflect the different thresholds
used in the analysis but also differences in the underlying
constructs. Income measures of poverty are generally based
on cross-section data that offer a snap-shot of the
individuals situation combining transitory and persistent
features. Further, income measures do not provide a full
picture of command over resources. Thus neglecting
individuals ability to borrow, to draw from accumulated
savings and to benefit from help provided by the family or
friends, as well as consumption of public services such as
education, health and housing. For these reasons, income
provides only a partial description of the individuals ability
to enjoy an acceptable life.
374
employ the criteria used by UNDP in deriving Human Poverty
Index (HPI). A Survey of 600 families was done in all the five
district of Karachi but after scrutiny of the questionnaire
we found a sample of 500 families is correct for this study.
Key Word: Index, Multiple Deprivation, Employment,
Education, Health, Housing, Karachi
JEL Classification: I3320
PAKISTAN BUSINESS REVIEW JULY 2010
Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
We describe the main concepts and methodological
issues underpinning the study of deprivation. We discuss
deprivation as one way of measuring poverty. While each of the
approaches to poverty measurement has advantages and shortfalls
as well, they all complement each other (Ringen 1987, 1988; Nolan
and Whelan, 1996). The main justification for the joint use of monetary
and non-monetary indicators is that poverty is multidimensional
(Kolm, 1977; Atkinson and Bourguignon, 1982; Maasoumi, 1986;
and Tsui, 1985). For example, various sub-groups of the population
may experience different forms of poverty e.g. food, clothing, shelter,
income, etc., leading to low correlation between monetary and non-
monetary indicators of poverty (Muffels, 1993; Nolan and Whelan
1996). Sen (2000) argues that an integrated approach to measuring
poverty should account for its multiples causes and consequences,
with a focus on individuals command over resources, capabilities
and the resulting outcomes functioning. This approach provides a
framework for investigating the links between the different aspects
of poverty.
Much of the interest in measuring deprivation stems
from the work of Townsend (1979). Townsend related the concept
of deprivation to the broader notion of inability of living a decent
life. Following Townsend, other scholars have emphasized the
notions of shame and inability to live a decent life with dignity.
Today, most authors define deprivation as exclusion from the
minimum acceptable way of life in ones own society because of
inadequate resources. (Callan et al., 1993; Nolan and Whelan,
1996; Kangas and Ritakallio, 1998; Layte et al. 2001; Whelan et
al. 2002; Perry, 2002). Another common definition refers to the
lack of socially perceived necessities. (Bradshaw and Finch, 2003;
Nolan and Whelan, 1996). While all these definitions are consistent
with both absolute and relative for Interpretations of poverty,
they retain the notion that the household is the fundamental unit
within which resources are shared and needs satisfied.
The importance of deprivation as a key component of
social inequality has been recognized for a long time. It is widely
accepted that deprivation increases the risk of early death and is
associated with higher rates of illness from certain diseases. For
example, in relation to cardiovascular health, socioeconomic
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Index of Multiple Deprivations as a Measure of Poverty in Karachi
deprivation is associated with higher rates of admission to
hospital and case fatality in heart failure.
The publication of the Independent Inquiry into
Inequalities in Health Report in 1980 gave a new impetus to
thestudy of the relationship between poverty and health.In the
years following its publication, alternatives to social class - as a
general measure of relative material comfort or poverty in a society
- were increasingly investigated such as unemployment and single
parenthood. Several different ways of combining variables taken
from the census or elsewhere were developed as a means of
categorizing deprivation within the populations of small
geographically defined areas (census enumeration districts, local
government wards, or postcode sectors). The methods in the
most common use until recently were those developed by
Townsend et al, Jarman, Carstairs and Morris. All used methods
of combining variables to generate a summary score to reflect
the socioeconomic status of a locality relative to the distribution
of scores obtained for all localities.
There are clearly many links between deprivation and
health inequalities. The section onhealth inequalities summarizes
the Scottish Governments approach tackling health inequalities,
which focuses on alleviating deprivation and its impact on health.
Subsequent contributions have both criticized and
extended the measurement approach followed by Townsend.
Piachaud (1987) questioned the failure to distinguish between
the lack of a good (or an activity) due to a voluntary choice of
individuals from that resulting from financial constraints. Ringen
(1988) criticized Townsends approach for trying to assess material
deprivation (a direct measure of poverty) through an incomes
threshold (an indirect measure of poverty). Other authors have
raised questions on the arbitrary list of items used and on the
failure to take into account the seriousness of different forms of
deprivation (Gordon at el 2000).
A variety of alternative measures have been developed
for correction of these limitationsationss: these are include
measures based on the subjective appreciation by individuals
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PAKISTAN BUSINESS REVIEW JULY 2010
Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
of their own ability to satisfy basic needs, and those measuring
objective conditions like ownership of consumers goods and
access to various goods and services. A common feature of these
non-monetary measures is their ambition to capture the individuals
capacity to afford a decent standard of living with respect to
dimensions those are likely to last over time (for example, in terms of
housing conditions). An additional feature of these approaches is
that they are based on a hierarchy of needs that individuals or
communities consider as necessary to live a decent life.
Much theoretical and empirical work has been devoted
in the past few decades for the task of measuring poverty.
Although taking a variety of perspectives, all approaches to the
measurement of poverty rely on the specification of:
A threshold separating the poor and the non-poor; and
An index that expresses how far from the threshold the
poor are.
More recent approaches t o t he defi ni t i on and
measurement of deprivation include Callan et al. (1993), who
selected indicators of deprivation for Ireland starting from the
basic idea that items have to be market-valuable, i.e. acquired by
the use of peoples disposable income. Callan et al. further
examined how different dimensions of deprivation correlate with
each other and whether clusters of correlated items could be
employed to characterize the deprivation experience of particular
groups of the population. Based on this analysis, they identified
three groups of deprivation items: basic life-style, housing and
availability of consumer durables. Later research has relied on
similar classifications.
By applying their summary index to the original
Townsends dataset, Desai and Shah (1988) identified a significant
relationship between income and deprivation scores, and between
deprivation scores and socio demographics characteristics of
the respondent.
Objective dimensions of deprivation refer to the capacity
of individuals and households to satisfy four types of needs:
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Index of Multiple Deprivations as a Measure of Poverty in Karachi
1. Satisfaction of basic needs refers to those items (e.g.
food, clothes, ability to keep the home warmduring wi nt e r ,
etc.) whose availability is essential for physical survival.
2. Capacity to afford basic leisure and social activities. (e.g.
having a week of holiday away from home at least once per year, or
occasionally inviting friends and relatives at home for drinks or
meals) refers to items that, while not essential for physical survival,
are critical for enjoying a decent quality of life.
3. Availability of consumer durables refers to items that
are essential to perform every-day life activities (e.g. having a
telephone) or that significantly ease housework and other
domestic tasks (e.g.having a microwave oven).
4. Housing conditions relate to both the physical
characteristics of the dwelling (e.g. availability of electricity, water
supply, or indoor flushing toilet, or whether parts of the dwelling
are deteriorated or damaged) and to the broader environmental
characteristics of the areas where dwellings are located (e.g.
exposure to noise, indoor pollution etc.).Subjective dimensions
refer to peoples appreciation of their conditions. These
include:
5. Appreciation of own personal conditions, in terms of
their financial stress and ability to make ends meet, subjective
perception of whether they consider themselves as poor and
individuals satisfaction with respect to life and its domains (e.g.
work, housing and health).
6. Characteristics of the social environment where
individuals live, in terms of features of their nei ghbour hood
(e.g. exposure to specific hazards, fears of crime and of availability
of public services such as schools and hospitals) and social
networks of individuals e.g. ability to rely on support from others
in case of need).
Van den Bosch (2001) provides a comprehensive
discussion of the subjective dimensions of deprivation and a
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Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
detailed description of methods used for the subjective
assessment of poverty. Gallie and Paugam (2002) provide useful
discussions of issues related to the social environment.
The importance of this paper comes from the importance
of the subject itself, as it is the first of its kind that addresses
deprivation. Such studies are highly needed to decision-makers
who are in charge of drafting policies leading in reducing poverty
problems which are not synthesized in ordinary poverty studies.
Multiple Deprivations
It is a general deprivation index consists of many
domains, since we can not view deprivation through low income
only but it considers many other variables or elements which
reflect the general deprivation status of a person comparing with
the conditions of the society that person lives with. The indicators
of deprivations such as income, employment, education and
training, housing, health care, access to services have to be
combined to produce one index. Every domain is given a specific
weight, according to its importance, totaling 100%. Each of these
domains consists of integrating several sub statistical indicators
to produce a hierarchical compound of deprivation dimensions.
Jarman used health indicators to show the deprived areas in order
to increase resources for doctors working there. Jarman also
developed a measurement consists of eight indicators among
which is unemployment, room crowdness, single parents, elderly
single parents and race etc.
Deprivation Domains
Indicators for each domain were integrated to produce
deprivation indices for each geographical area and integrate the
five domains to produce multiple deprivation standards by using
the following weights:
Index Weight %
Employment 25
Health 25
Education 25
Housing 25
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Index of Multiple Deprivations as a Measure of Poverty in Karachi
Most of the studies conducted in European countries
indicated that multiple deprivation indices includes six sub
deprivation indices, each consists of a group of statistical
indicators but we used four which are as follows:
Employment Deprivation Domain
This domain can be measured through the number of
persons who are not working, willing and able to work. It can be
computed through calculating the number of unemployed
persons waiting to get a job for a long time (up to two years) as
compared to those who wait for the job for a month or so. This
domain was derived from the related indicators such as:
Unemployment counts
Seasonal variation in unemployment
Partners of unemployment claimants
People out of work but in training
Long Term incapacity benefit recipients below
pension age
Severe disability allowance recipients below pension age
Quality of employment (e.g. unsociable hours, multiple
jobs over time and at any time etc.)
Education Deprivation Domain
This domain is measured by considering those who
dont have training and educational qualifications from all age
groups. The measurement of this domain can be improved by
calculating those, who work without educational qualifications
or low educational level.
The domain was derived from the following indicators:
Working age adults with no or low qualifications
Children aged 16 and over in full-time education
Teacher turnover
Students with special needs
Exclusions (Permanent and Temporary)
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Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
Young people (16-18) not in education, training or
employment
Students not enrolled in basic education
Health Deprivation Domain
This domain is measured by considering those who are
suffering from the danger of drugs, alcohol and others. The
domain is derived from the following indicators:
Percentage of male death under age 65 years.
Number of persons who are handicapped or as
percentage of the total population.
Percentage of persons of work age (16-59) who
incapable or strong handicapped.
Percentage of persons who are sick for long time
(standardized according to age and sex)
Percentage of births under normal weight (2500 gm)
Housing Deprivation Domain
This domain is measured by considering persons who
dont own houses with necessary amenities needed for a person
or a family. Also through the number of persons per room (over-
crowdness). The more the number of persons per room indicates
deprivation from housing and its health conditions. The domain
is derived from the following indicators:
Number of families who dont have shelter or live in a
temporary house
Number of overcrowding families
Number of poor families who live in special housing
Housing lacking amenities
This study constructed indices of deprivation to express
various domains. Prior to construct of these domains, proposed
indicators for each domain were suggested by the researchers in
a format of a questionnaire and sent to actual families and some
experts in social science, economics, sociology and statistics for
comments on the suitability of domains on the social- economic
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Index of Multiple Deprivations as a Measure of Poverty in Karachi
living culture. Comments were received and incorporated in the
final domains and their indicators.
2. Study Objective
The main objectives of the study are represented in the
followings:
To define the concept of deprivation and its kinds in
the developing countries? and apply this concept in
developing countries like Pakistan?
To identify indicators which comprise the domains
and indices for socio-economic deprivation in Pakistan?
The main purpose of this study is to describe the overall
picture of multiple deprivations, based on the combined
education, health, housing quality and employment
sectoral indices.
3. Methodology
Data is collected by a survey using a questionnaire
from six hundred persons in Karachi but after the scrutiny we
find that five hundred questionnaire are complete for data
analysis while one hundred questionnaire are not suitable for
data analysis.
This study has employed several indicators using
methodological measures for deprivation including: employment
deprivation, housing deprivation, education deprivation, health
deprivation. Then, combines indices to produce what is called
Index of Multiple Deprivation (IMD). The IMD was derived from
the previous indicators to reflect the overall conditions of the
people by each locality in the Karachi.
At stage 1, indicators in each sector were combined to
create Sectoral Indices. Except person per room, all the four
mentioned indicators are simple rates (percentage of the
population affected by the type of deprivation) and may easily
be combined. Person per room is standardized with the minimum
and maximum. We assign equal weight to each indicator in a
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PAKISTAN BUSINESS REVIEW JULY 2010
Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
particular sector. After assigning these weights, four sectoral
indices are computed and then ranked in order to compare
deprivation levels across districts and provinces. Once four
sectoral indices have been calculated, an overall Index of Multiple
Deprivation (IMD) is derived. Having considered various options,
it is decided to employ the criteria used by UNDP in deriving
Human Poverty Index (HPI).
The following formula is used to derive IMD.
IMD = 1/4 * { (E)
a
+ (HQ)
a
+ (HS)
a
+ (EM)
a
}
1/a
Where;
IMD = Index of Multiple Deprivation
E = Index of Education Deprivation
HQ = Index of Deprivation in Health Quality
HS = Index of Deprivation in Housing Services
EM = Index of Deprivation in Employment

a = 3
The value of

has an important impact on the value of
the index. If =1, the IMD is the average of its four sectors. As
rises, greater weight is assigned to the sector in which there is
most deprivation. Following UNDP, the value of is set at 3 to
give additional but not overwhelming weight to the area of greater
deprivation. This gives an elasticity ofsubstitution of 1/4 between
any two indices and places weight on those dimensions in which
deprivation is larger (UNDP Human Development Report 1997).1.
Results
Data is collected by a survey using a questionnaire from
six hundred persons in Karachi but after the scrutiny we find that
five hundred questionnaire are complete for data analysis while
one hundred questionnaire are not suitable for data analysis.
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PAKISTAN BUSINESS REVIEW JULY 2010
Index of Multiple Deprivations as a Measure of Poverty in Karachi
Frequency Percent
Cumulative
Percent
Valid male
268 53.6 53.6
Female
232 46.4 100.0
Total
500 100.0

Table 1. Gender Wise Distribution of the Sample
We have 268 males (53.6% ) and female 232 (46.3%) included
in sample of 500 (Table 1). We approximately equally weight
the gender in our sample.
Table 2. Age Wise Distribution of the Sample
Frequency Percent
Cumulativ
e Percent
Valid less then 20 years
2 .4 .4
21-30
85 17.0 17.4
31-40
275 55.0 72.4
41-50
113 22.6 95.0
51and above
25 5.0 100.0
Total
500 100.0

Table 2 shows the age distribution of the sample. The age
distribution in the sample is shows a normal distribution i.e. high
frequency in middle and low on extreme points.
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Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
Table 3. Descriptive Statistics of Index of Multiple Deprivation
N
500
Mean

28.5
Median
27.0
Std. Deviation
17.1
Minimum
1.79
Maximum
96.33
Percentiles 25 18.32
50
27.0
75
33.34

Table 3 Shows that the index of multiple deprivation has range
from 1.79 to 96.33 with a mean of 28.5 and median of 27.0. The 25
th
,
50
th
and 75
th
percentile are 18.32, 27.0 and 33.34 shows that more
people lie in range of from 2 to 40 of index of multiple deprivation.
This is also shown by the graph1 below.
Graph 1. Histogram of Index of Multiple Deprivation

0 . 0 0 2 0 . 0 0 4 0 . 0 0 6 0 . 0 0 8 0 . 0 0 1 0 0 . 0 0
I M D
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
F
r
e
q
u
e
n
c
y
M e a n = 2 8 . 4 9 9 8
S td . D e v . = 17 . 0 6 08 9
N = 5 0 0
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PAKISTAN BUSINESS REVIEW JULY 2010
Index of Multiple Deprivations as a Measure of Poverty in Karachi
Table 4. The Statistics of Element of Index of Multideprivation

Perceived
Deprivati
on
Educatio
n
deprivati
on
Employ
ment
deprivati
on
Health
deprivati
on
Housing
deprivati
on
N

500
500 500 500 500
Mean 2.12 0.08 1.09 3.31 2.86
Median
2.00 0.00 1.00 4.00 2.66
Mode
2 0.00 1.00 4.00 2.00
Std.
Deviation
1.000 0.18 0.29 0.97 1.41




The four elements of Index of Multiple deprivation and their
descriptive is shown in the table 4. The sample explains that we
are more health wise deprived and 2
nd
highest deprivation is
housing.
1. Conclusion
A common observation is that even during periods of
rapid growth as in the 1980s, social indicators, particularly health
and education, witnessed only a small improvement because state
funds could not be invested in human capital, however urgently
this was required (Hussain 2003). The Social Action Program of
the 1990s did not bring about the desired change in social
indicators; the low level of human capital greatly contributed to
the rising trends in poverty in the 1990s. Arif (2003) finds that the
total consumption of households that fell into poverty between
FY1999 and FY2001 declined by 50%, of which more than half
was attributable to a reduction in food consumption.
Pakistans overall economic performance for the period
19611990 was respectable, but the 1990s were characterized by
macroeconomic instability. The average growth rate during the
1960s was 6.8% per annum, dropping lower than 5% in the 1970s
and then climbing to 6.5% in the 1980s. The countrys growth
performance deteriorated during the 1990s: real GDP growth
slowed down to an average of 4.9% in the first half of the decade,
and declined further to an average of 4% in the second half (Table
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PAKISTAN BUSINESS REVIEW JULY 2010
Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
5). The performance of the large-scale manufacturing sector
contributed largely to this deceleration: it grew at an average
annual rate of 8.2% in the 1980s, slowed down to an average of
4.7% in the first half of the 1990s, and then fell even further to
2.4% in the second half (GoP 2001).

GDP Growth
Rate (%)
Agriculture
(%)
Total
Manufacturing
(%)
Large-Scale
Manufacturing
(%) Services (%)
FY19801989 6.1 4.1 8.2 8.2 6.6
FY19911995 4.9 4.2 4.8 4.7 5.1
FY19962000 4.0 4.8 3.2 2.4 4.0
FY2000 3.9 6.1 1.4 (0.2) 4.8
FY2001 2.6 (2.5) 7.1 7.8 4.4
FY2002 3.1 0.1 4.5 3.5 4.8
FY2003 5.1 4.1 6.9 7.2 5.3
FY2004 6.4 2.6 13.4 17.1 5.2

Table 5: Pakistans Economic Growth Performance Period
Source: Pakistan Economic Survey
Finally, the evidence on employment and poverty
reinforces the argument that unemployment and poverty cannot
be left to the market to resolve. Rising trends in poverty can only
be arrested if enough productive and remunerative jobs are
created and this will only be possible only if investment levels
increase. The level of investment in Pakistan has stagnated at
low levels, while public development expenditure has fallen,
displaced by government commitments to reduce the fiscal
deficit. This sharp decline in development expenditures is a
serious matter because it plays a complementary role in poverty
reduction. Falling development expenditure reduces private
investment and leads to slower economic growth while increasing
unemployment and undermining the maintenance of services
and capital stock. The reduction in debt servicing has already
created fiscal space, although more fiscal space is likely to be
required. To increase production, employment, and income,
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Index of Multiple Deprivations as a Measure of Poverty in Karachi
attention needs to be paid to those sectors that can create more
jobs at a lower capital cost.
1. Discussion
The new t hreshol d has vari ous at t ract i ve
characteristics to analyze poverty. Because of the connection
with the minimal needs of a household, there is a clear
interpretation of the poverty threshold. One poverty line variant
represents the basic needs of a household and the other variant
also incorporates the minimal costs to participate in society. The
indexation regime is quite easy to calculate, in contrast to an
expert budget method. The quasi-relative trait of the new
threshold is theoretically desirable and empirically demonstrated.
Besides this, the two variants of the new poverty line seem to fit
with the public opinion of poverty in the Netherlands. This
concept can make the poverty clearer in terms of goals and
evaluation of policies and gives a clearer view on the composition
and the characteristics of poor households.
Contrary to what might be expected, we have found
that more deprived areas tend to be better served by health
services see table 4. This suggests that general practices are
generally located nearer to those people who need them most,
e.g. socio-economically deprived communities. The relationship
seen may also reflect the tendency for deprivation to concentrate
in city centres where services are also often concentrated.
The indexation mechanism of the poverty line has a
clear relation with the level of prosperity of a society. If the
standard of living in a society increases, average expenses on
basic items as housing, clothing and food also increase and
consequently the poverty line. The key issue here is the pace at
which the poverty line increases. It is at a faster rate than inflation
indexed poverty line, but slower than a median income index
poverty line. This characteristic is desirable as it has been shown
that public perception of minimal needs increases at a lower
pace than average income.
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PAKISTAN BUSINESS REVIEW JULY 2010
Research Index of Multiple Deprivations as a Measure of Poverty in Karachi
Economic growth in the past has not automatically
trickled down to benefit the poor. Pakistans growth performance
over the last 3 years indicates that the stage is probably set for
high growth, which can be made pro-poor by creating additional
jobs for the poor as well as enhancing their education and skill
levels. In addition to explicit actions to ensure that this occurs,
efforts should be made to ensure that growth does not
inadvertently increase inequality. More resources need to be
diverted to the education and health sectors for the benefit of
the poor, and the quality of public sector education, particularly
in rural areas, also needs to be improved.
2. References
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Review of Recent Poverty Lines. In Pakistan Human Condition
Report 2002. Islamabad: Centre for Research on Poverty
Reduction and Income Distribution (CRPRID).
ATKINSON, A. B. AND F. BOURGUIGNON (1982), The
Comparison of Multidimensional
Distributions of Economic Status, Review of Economic Studies,
49, 183201.
Bosch, K. van den (2001) Identifying the poor, using subjective
and consensual measures. Aldershot: Ashgate
Bradshaw J. and N. Finch (2003), Overlaps in Dimensions of
Poverty, Journal of Social Policy, 32,4, Cambridge.
Callan, T., Nolan, B., & Whelan, C. T. 1993, Resources,
Deprivation and the Measurement of Poverty, Journal of Social
Policy, vol. 22, no. 2, pp.141-172.
Callan, T., Nolan, B., Whelan, B., Whelan, C. and Williams, J.
(1996). Poverty in the1990s: Evidence from the Living in Ireland
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Desai, Meghnad and Shah, Anup (1988), An Econometric
Approach to the Measurement of Poverty, Oxford Economic
Paper, New Series, Vol. 40, No. 3 (sept. 1988), pp.505-522.
Gallie, D. and Paugam, S. (2002), Social Precarity and Social
Integration, Report for the European Commission based on
Eurobarometer 56.1
Gordon, D., Adelman, L., Ashworth, K., Bradshaw, J., Levitas, R.,
Middleton, S., Pantazis, C., Patsios, D., Payne, S., Townsend, P.
and Williams, J. (2000). Poverty and social exclusion in Britain.
York: Joseph Rowntree Foundation.
Government of Pakistan. 2007. Pakistan Economic Survey 2006
07. Islamabad: Finance Division, Economic Advisers Wing.
Hussain. A. 2003. Pakistan National Human Development Report
2003: Poverty, Growth and Governance; for deprivation level
Kangas O. & Ritakallio V-M. (1998), Different methods Different
results: approaches to multidimensional poverty. In: Andress H-
J., ed. Empirical poverty studies. Aldershot: Ashgate, 1998, 167
203.
Kolm, S.C. (1977), Multidimensional Egalitarianism, Quarterly
Journal of Economics, vol.91, pp.1-13.
Layte, R., Matre, B., Nolan, B., & Whelan, C. T. (2001), Explaining
Deprivation in the European Union, Acta Sociologica, vol. 44,
no. 2, pp.105-122.
Layte, R., Nolan, B., & Whelan, C. T. (2001), Reassessing Income
and Deprivation Approaches to the Measurement of Poverty in
the Republic of Ireland, The Economic and Social Review, vol.
32, no. 3, pp.239-261.
Maasoumi, E. (1986). The Measurement of and Decomposition
of Multidimensional Inequality, Econometrica 54(4): 99197.
Muffels, R. (1993). Deprivation standards and style of living indices
in J. Berghman and B. Cantillion (eds.) The European Face of
Social Security. Avebury: Aldershot.
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Nolan, B., & Whelan, C. T. (1996), Resources, Deprivation and
Poverty.
Perry, B. (2002). The mismatch between income measures and
direct outcome measures of poverty. Centre for Social Research
and Evaluation, Ministry of Social Development, New Zealand.
Piachaud, D, (1987). Problems in the definition and measurement
of poverty. Journal of Social Policy, 16(2):147-164.
Ringen, Stephen (1987) The Possibility of Politics. Oxford: Oxford
University Press.
Ringen, Stephen (1988) Direct and indirect measures of poverty,
Journal of Social Policy, 17: 35166.
Sen, A. (1997) On Economic Inequality, Clarendon Press, Oxford
Sen A.K. (2000), .Social Exclusion: Concept, Application, and
Scrutiny, Social Development Papers, Asian Development Bank,
No. 1.
Townsend, P. (1979), Povert y i n t he Uni t ed Ki ngdom,
Harmondsworth, Penguin Tsui, A. Community effects on
contraceptive use. In Casterline, J.B. (Ed.) the collection and
analysis of community data, the Netherlands: International
Statistical Institute, 1985, pp. 77 90.
Townsend, P. Phillimore, P. and Beattie, A. (1988). Health and
deprivation: inequality and the North. London, Croom Helm.
UNDP, (1997). Human Development Report 1997, Oxford
University Press, New York
Whelan, C. T., Layte, R., Maitre, B., Gannon, B., Nolan, B.,
Watson, D., & Williams, J.(2003), Monitoring Poverty Trends in
Ireland: Results from the 2001 Living in IrelandSurvey, Economic
and Social Research Institute, Dublin, 51.
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PAKISTAN BUSINESS REVIEW JULY 2010
Discussion After The Crisis, Will Capitalism Emerge Stronger?
AFTER THE CRISIS, WILL
CAPITALISM EMERGE
STRONGER?
Javed A. Ansari
College of Business Management, Karachi
The crisis, which started of in 2007 in the US sub prime
mortgage market is not over yet. The US according to the 2009
third quarter figures, has pulled out of recession, there is growth
in Europe and Japan and some emergent markets and equities
have been (mostly) doing well in the major exchanges over the
last three months.
Nevertheless the London Economist, the Wall Street
Journal and other leading imperialist newspapers keep printing
warnings of the possibility of a double dip recession and urging
governments to stand ready for further massive financial market
intervention. Fraud cases involving major corporates are once
again hitting the headlines. And the stock market recovery in
America is widely regarded as unsustainable.
Unemployment levels have created new historical
records in America and Western European countries. Income
and asset distribution inequities have soared as governments
use tax payer money to bail out billionaire bank clients. America
is preparing to run away from Iraq and Afghanistan and there is
no new global capitalist hegemon to guarantee global level
playing fields for the leading multinationals and financials.
But capitalism is not dying. It is being
metamorphosised. The root cause of the present troubles lies in
the overdevelopment of (metropolitan) national and global
financial markets. In the rest of this essay I will try to spell out
the nature and the implications of financial overdevelopment.
392
Discussion
PAKISTAN BUSINESS REVIEW JULY 2010
After The Crisis, Will Capitalism Emerge Stronger?
But capitalism is not dying. It is being metamorphosised.
The root cause of the present troubles lies in the overdevelopment
of (metropolitan) national and global financial markets. In the rest
of this essay I will try to spell out the nature and the implications
of financial overdevelopment.
Since the collapse of the Bretton Woods system (usually
dated from the time of the 1973 Ramadhan War) financial markets
have become overdeveloped in two respects. First they are
overdeveloped with respect to production and trade. Since the
mid 1980s financial value added has been growing at a faster rate
than value added generated in the real sectors. Financial growth
depends upon the growth of real goods and services production
and consumption. For however lofty a financial derivative pyramid
may be at its bottom, must be a real good or services finance
must ultimately finance something other than itself.
The overdevelopment of financial markets has stood
capitalism on its head Rudolf Hilferding foresaw this almost
a centaury ago (as did Otto Bauer several decades earlier). In
most of its history capitalisms market order looked like Figure A
with a wide and widening production and trade base sustaining
financial market development.
Financial
Markets


Real
Markets


Figure A
393
PAKISTAN BUSINESS REVIEW JULY 2010
Discussion After The Crisis, Will Capitalism Emerge Stronger?
Post Bretton Woods capitalist market order looks like
Figure B with a narrow and narrowing real sector base for a
precariously balanced financial sector growing at a furious pace
and ever threatened with collapse.
As many Financial Times columnists have pointed out
a most important cause of the 2007 down turn was the massive
growth of corporate saving in America and Europe. Corporates
had to channel this saving to financial markets because of lack
of equally profitable investment opportunities in the real sector.
These savings had to be diverted to the financial markets because
there were no apparent limits to profitable investment
opportunities there.
Why are their no apparent limits to the growth of
financial markets? Imam Muhammad Maramaduke Pickthall has
called capital takathur and translated takathur as rivalry in
worldly increase. This interpretation of capital focuses upon
two foundational attributes of capitalist individuality
rivalry .i.e. competition and worldly increase .i.e
accumulation. Capitalist individuality (specially in its corporate
manifestation) is categorically unconditionally committed to
competition and accumulation and financial markets provide
apparently unlimited opportunities for accumulation the
price of a Rs 10 security can become Rs1 billion in one trading
session and therefore surplus saving can usually be
absorbed in the financial markets when real markets are stagnant
(barring episodes of crises)
Financial
Markets

Real
Markets

Figure B



394
Discussion
PAKISTAN BUSINESS REVIEW JULY 2010
After The Crisis, Will Capitalism Emerge Stronger?
Unlike financial markets, production and trade growth is
physically constrained. It is constrained by (a) the rate of growth
of the population and (b) the growth of income and asset
concentration. Both these are essential outcomes of the maturing
of capitalist order. As women are defeminised through the
commodification of their labour the population growth tends to
become negative not only in Europe and America and Japan
but also in China and India and Bangladesh. Declining
populations generate falling effective demand for real products
a tendency which can temporally be postponed by income
distributional strategies.
But the Keynesian policy episode (roughly 1933-1973)
has shown the limitations of this macro strategy. It constrains
accumulation and the general rate of profit tends to fall after an
initial spurt. Stagflationary pressure is gradually built up and the
state is enmeshed in insurmountable fiscal crises.
This brings us to the second aspect of present day
financial overdevelopment. This is the over development of
capitalist markets with respect to the governance structures of
the capitalist state. Capitalist markets both financial and real
are genuinely global. The post Bretton Woods era has seen a
historically unprecedented deliberate dismantling of barriers to
the cross border transfer of finance, goods and services. To
survive in this world capitalist units must face up to the imperative
need of either going global themselves or becoming associated
with global networks for obtaining access to technology
information, finance and other services.
On the other hand the capitalist state remains national.
History has shown that capitalist markets are not self regulatory.
There are no representatives of capital in general in the market.
Each corporation seeks to maximize the share holders value of its
own capitalists. There is no in market agency obliged to ensure
the maximization of the general rate of profit. Every corporation
seeks to maximize externalization of its costs. Competition ensures
that the market is not a sphere of harmony but a sphere of conflict
as Sarott a showed 50 years ago
395
PAKISTAN BUSINESS REVIEW JULY 2010
Discussion After The Crisis, Will Capitalism Emerge Stronger?
The capitalist nation state saw itself as the legitimate
representative of capital in general at its birth. This is most
evident in Madisons Federalist Papers authored in the 1780s,
John Locke arguing against Cromwells Commonwealth advocated
the development of a representative democratic governance
framework for the legitimate articulation of what Rousseau was
to later call the general will. The national representative
democratic capitalist state thus premises its legitimacy to
represent capital in general, through defining the national interest
as maximization of the rate of profit and accumulation for the
nation. Capital in general is defined as an aggregation of all
specific capitals working for the nation. Since the late eighteenth
centaury the capitalist state has claimed governance legitimacy
on the grounds that it represents the national interest and the
national interest is maximization of the rate of accumulation /
profit/ welfare of the aggregate of specific capitals working for
the nation.
Globalization of capitalist markets requires the
emergence of a global regulator for the effective and efficient
functioning of these markets. The capitalist state must now
transcend its national representational character. It must acquire
a regulatory legitimacy premised on its capacity to represent
(global) capital in general. It must regulate capitalist markets so
that the rate of accumulation / profit / welfare is maximization for
the aggregate of total capital. The general interest must now be
defined as the maximization for the rate of accumulation / profit /
welfare of total capital not aggregated specific capitals working
for any nation.
But unlike the capitalist nation states, agencies seeking
to represent the interests of total capital lack political legitimacy
America is a declining hegemon and fiercely nationalistic. It prides
itself on its exceptionalism. For the last thirty years American
leadership has continued to resist all attempts to subordinate its
rules, procedures and governance structures to negotiated global
capitalist standards, codes and institutional mechanisms. Quite
the contrary America has since the establishment of the United
Nations continuingly sought to use all international agencies,
rules and procedures as instruments of its own foreign policy
396
Discussion
PAKISTAN BUSINESS REVIEW JULY 2010
After The Crisis, Will Capitalism Emerge Stronger?
The continuing impotence of international agencies is
now increasingly self evident. The Financial Security Forum (FSF)
created in 1999 in response to the East Asian crisis remains a co-
ordinating body. The Basel Committee on Bank Supervision has
almost no influence over metropolitan central banks. The
International Association of Insurance Supervisors (IAIS) and
the International Securities Organizations (IOSCO) have no
executive powers. The IMFs modestly enhanced writ covers only
the poor countries. All these agencies are intergovernmental
not global bodies. They have no systemic legitimacy which
over-rides the legitimacy of their member nation states. Capitalist
political order has not transcended the nation state in the sense
that there is no super national constituency which can legitimate
the action of global political fora.
Nor are there are any indications that a global super
national political constituency is likely to emerge in the foreseeable
future. Quite the contrary Martin Wolf of the Financial Times
predicts financial deglobalization and the Doha Rounds failure
has all but destroyed the WTO. Politically capitalist order is
regressing as happened after the crisis of the 1930s when the
financial authority of nation states was significantly strengthened
by the Bretton Woods arrangements.
The Bretton Woods period saw capitalism strengthened.
At the centre strong nationalist states France, Germany, Japan
flourished under a system hegemon America which
patrolled the world. The new inter-polar world (John Grays
term) will soon lack a hegemon. America is senile as is Europe and
Chinese hegemonic capabilities are strictly limited. Bouts of
capitalist crisis financial markets in turbulence are likely
to become more frequent and perhaps more serious. Disorder and
dysfunctionality will increase, growth rates will decelerate and
distributional inequalities will become more intense. Capitalist
order will become less and less inclusive. Islands of opulence will
be more and more isolated in a festering planet of slums. The
scope for the articulation of systemic anti anticapitalist strategies
will expand.
397
PAKISTAN BUSINESS REVIEW JULY 2010
Discussion After The Crisis, Will Capitalism Emerge Stronger?
But like the Roman empire the capitalist life world will
probably languish for centuries. This is because capitalisms
foundational values competition and accumulation at
present enjoy universal epistemological legitimacy. An alternative
world order has not yet been conceived and the struggle for
capitalist transcendence is at an embryonic nascent stage. The
crises of the first decade of this centaury will probably weaken
capitalism but these crises will not lead to capitalisms systemic
implosion in the foreseeable future.
398
Case Study
PAKISTAN BUSINESS REVIEW JULY 2010
Language Barrier in Rice Trade with the Arab World
LANGUAGE BARRIER IN
RICE TRADE WITH THE
ARAB WORLD
Mahtab Fatima Hasan
Department of Communication
College of Business Management, Karachi
Acknowledgments
At the outset I thank Almighty ALLAH, the most
beneficent and the most merciful, for granting me the courage
and the aptitude to do this research.
I would like to thank Mr. Shahjehan S. Karim (President
IoBM), Mr. Talib S. Karim, Executive Director Academics
Corporate Affaris & Business Support Center for providing the
necessary facilities during this course of study
Secondly, I would like to secure this opportunity to
thank Dr. Javed Ansari, my research Advisor and Dean of CBM,
for his professional expertise and making this research possible
My sincere thanks to Prof (Rtd) Dr S. Nazneen Rizvi,
University of Karachi, for her help and guidance during this
research.
This research is a combination of a lot of sincere hard
work and dedication, valuable ideas and suggestions from my
family and friends. I, therefore, would also like to acknowledge
and thank them for being very supportive in making me
accomplish this task.
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Language Barrier in Rice Trade with the Arab World
I-Introduction
Communication can be defined as a tool for collaboration
and cooperation between persons. It is a process by which we
assign and convey meaning. As defined in terms of Lustig &
Koester (1996:29) as a symbolic process in which people create
shared meaning.
Language is a fundamental tool for communication of
ideas and thoughts between people, and so it is also an essential
input in production and trade. A society will have more production
and consumption opportunities when its members share a
common language. Language is knowledge, and in todays world
it is one of the key factors in competitiveness.
J. Carr (1990) states
1
that money and language share
similar characteristicsjust as money allows society to move
beyond barter, a common language also facilitates transaction
and lowers costs. Albert Breton
2
and P. Mieszkowski applied the
neo-classical international trade model and interpreted the use of
a (common) language as a source of technical progress. The
benefit resulting from knowledge of a second language are spread
over time. Learning a second language therefore is an investment
or acquisition of an assetit is a form of human capital, capable,
like all capital, of being increased or depreciatingalthough, unlike
material goods, it does not deteriorate with useor even of
becoming outdated.
Nicolas Sauter (2009), tests for one mechanism that
can explain the existence of a language barrier in trade. The
existence of a language barrier in trade has been documented in
numerous experimental studies. Rose (2000) finds that countries
sharing a common language trade 1.5 times more with each other.
Anderson and van Windcoop (2004) estimated that the tax
equivalent of the language barrier amounts to seven percent. In
his research he tested whether communication- intensive
industries trade more between Canadian provinces with a good
knowledge of the others language compared to those industries
that require less communication with the trading partner.
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He explains the affect of language on trade patterns
using the following scenario: the population of two regions
speaks different languages and translation is costly. If some
products require more communication between the buyer and
seller for trade to proceed, translation cost will more adversely
affect trade in those products. If more people learn the others
language, the translation cost will fall. And hence, he suggests
this: ceteris paribus, a high language commonality between two
regions should disproportionately help communication intensive
industries to trade.
Direct or spoken communication has a larger effect on
the volume of trade than indirect or written communication, and
total translation cost will be higher in case of direct
communication. Hence, direct communication-intensive
industries are more likely to be affected by the language barrier.
Ginsburgh, Ortuno-Ortin and Weber, (2004), discuss
the determinants that induce the inhabitants of one country to
learn some other language. According to them the attractiveness
of a foreign language depends on the size of the two populations,
the larger the population that speaks the native language, the
lower the incentive of a native citizen to learn another language
so he can trade and communicate with citizens who speak the
same language as he does either in his own country or in any
language friendly foreign country. However, the larger the
population that speaks the foreign language, the larger the
attraction of that language for those who do not know it.
These authors have considered two languages in their
model, spoken in two regions. Also for simplicity, it is assumed
that all citizens are unilingual but may consider learning the other
language. The language utility of each individual depends on
the number of those who speak the same language. The purpose
of the paper is to the estimate the demand functions derived for
English, French, German and Spanish by citizens from the
European Union (E.U.) whose native languages are none of these.
The data consists of the knowledge of native and foreign
languages in various E.U. countries, and distances between
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languages. Language proficiency was the topic of a survey on
languages ordered by the Directorate of Education and Culture
of the E.U. in 2000. In each of the15 E.U. countries, 1,000 interviews
were conducted on the use of languages. The authors were
concerned about the answers of two questions: first, what is their
mother tongue? Second, what other languages were known?
The results show that three variables explain reasonably
well the proportion of people that learn a foreign language. The
larger the native population in the country, the less its citizens are
prone to learn another language; the more the foreign language is
spoken, the more it attracts others to learn it; the larger the distance
between two languages, the smaller the proportion of people
who will learn it. However, the results also show that the attraction
powers of the four foreign languages are significantly different,
and that other determinants, mostly historical, but also economic,
must be taken into account.
Lazaro and Medalla, 2004, discuss t he expanding role of English
as the language of trade, finance and technology which has grown
into a development strategy in the 21st century, with the increasing
recognition of its importance.
The research concludes that it is vital that each
government is able to identify the adjustment issues in its
respective states. Although each country would have its own
approach to developing English language proficiency suitable to
its level and nature of development, a comparative study of the
strategies used by each country would be useful. At the very
least benchmarking of standards should be resorted to in East
Asian countries.
II- Objectives
The objective of this research is to identify the
significance of Arabic language while doing trade between
Pakistan and the Arab world, particularly when trading rice.
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III- Methodology
For the purpose of this research, interviews were
conducted with rice exporters who are doing business with the
Arab world. They were asked both open ended and close ended
questions to share their experiences. Interviews were taken as a
tool in this research as McNamara (1999) points out that
Interviews are particularly useful in getting the story behind a
participants experiences.
The sample size for this study is 50 rice exporters to
Arab countries based in Karachi.
Questionnaire
The exporters were asked the following questions for
the purpose of conducting this research:
1- Which Arab countries are you doing trade with?
2- What incentives do you get from the government as a
rice exporter?
3- What variety of rice do you export?
4- Do you communicate with them in Arabic?
5- What were the factors that made you learn Arabic?
6- Do you think that communicating with them in Arabic
increases the volume of trade you do with them?
7- How do you communicate if you dont know Arabic?
8- Does your business rely more on direct communication
with the trader or on indirect communication?
9- Are you as a businessman faced with any discrimination
for not knowing Arabic over other businessmen who
know Arabic?
10- In what language do the businessmen in the Arab world
prefer to communicate?
11- How does the inability to communicate in Arabic effect
you in monetary terms?
12- Do you think that investing in language skills is a good
step in making the business successful?
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13- Do you think that Arabic language skill have become a
necessity for establishing linkages with the Arab world
in international trade?
14- Does knowing the Arabic language help you understand
Arab culture which in turn helps you do better business?
15- How do you think the government should facilitate the
businessmen in improving language skills?
The following graphs show the results of the questions that
were asked:
IV- Results
1-Arab Countries Doing Rice Trade with Pakistan
The rice exporters were asked to tell us which country
they are doing trade with; It was revealed that most of the exporters
in the sample are trading with Saudi Arabia, Algeria, UAE, Egypt
and Kuwait. 17% of the sample export to Saudi Arabia, UAE comes
second with 14%, Algeria and Kuwait come in the third place with
11%, and Egypt & Jordan with 8% were in the fourth place.
2- Incentives by Government to Rice Exporters
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Language Barrier in Rice Trade with the Arab World
Around 25% of the exporters said that the government
sometimes gives them some tax reliefs and subsidies but the
majority had the point of view that the government is doing
nothing for the rice export business to flourish and is not giving
them proper incentives to enter new markets and expand their
business.
3- Variety of Rice Being Exported
The quality of rice in Pakistan is very good; Basmati
is the rice which is preferred in export markets. 45% of the total
rice being exported consists of Basmati rice, it is followed by
Super colonel at 23% and Colonel at 8% of the total rice being
exported
.4- Native Language as a Means of Communication

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Language Barrier in Rice Trade with the Arab World
71% of the exporters in the sample said that they do not
communicate with their traders in Arabic the reason is that they
do not know Arabic; To overcome this inability they talk to them
in English or hire a translator. 20% of the exporters said that they
communicate with the businessmen in their Arabic only. The use
of interpreter is very expensive and therefore very limited.
5- Factors for Learning the Arabic Language
As the exporters deal with traders in different countries
it is difficult for them to spend time and learn all the languages,
most of the exporters do not learn the native languages of their
trade partners. About a fifth of the exporters in the sample learned
arabic as it helps them to communicate in a better way. It was easy
for them to understand each others point of view and by learning
the language they were able to understand the culture which
helped them increase their business.
6- Increase in Trade Volumes due to Use of Native Language
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Language Barrier in Rice Trade with the Arab World
When asked whether communicating with the
businessmen in Arabic increases trade. 62% exporters were of
the opinion that it does not increase the volume of trade. 33% of
the exporters said that it does effect the volume of trade being
done and 4% of the exporters were unsure. As most of the
exporters did not learn Arabic, they did not know the benefits of
learning the language.
7- Language of Communication

Question 7
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
I communicate with
them in english, no need
of a translator

Using translator
increase costs a lot.
Not much
It is seen from the results that the exporters
communicated mostly in English and they think theres no need
of an interpreter. However about 30% were of the view that hiring
an interpreter does increase the transaction cost for them that is
why they dont hire an interpreter and as mostly its the paper
work through which they communicate so communicating in
English fulfils the need.
8- Direct or Indirect Communication
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Language Barrier in Rice Trade with the Arab World
Most of the exporters communicate with their traders
both directly and indirectly.
9- Discrimination Faced By Exporters due to Inability to
Communicate in the Arabic
The exporters were asked if they are faced with any sort
of discrimination for not knowing the native language. 85% of the
exporters said that they did not face any discrimination for not
knowing the native language, but 15% of the exporters did say
that they are faced with discrimination and they do suffer in the
business.
10- Preferred Language of Communication

Question 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Arabic Urdu English French
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Language Barrier in Rice Trade with the Arab World
Although 85% of the sampled exporters said that they
are not faced with any sort of discrimination for not knowing
Arabic, when they were asked in what language does the
businessmen in the Arab world prefer to communicate, 84% of
the exporters said Arabic and 14% said English. This shows that
even if there is no need to learn or communicate in the native
language, the Arab businessmen still prefer their own language,
and would trade more with the businessmen who can
communicate in Arabic as they would be more comfortable
working with them.
11- Monetary Effect of Language Barrier
The exporters were asked if they are affected in monetary
terms by this inability to communicate in Arabic, 60% of the
exporters were of the opinion that they are not affected in monetary
terms as they are exporting good quality rice and, in the business
world, quality of rice is whats causing the traders to do business
with them despite of the language barrier. But 40% were of the
opinion that it does affect them or sometimes it does matter and
some of them have learned Arabic for the same reason that they
dont want this language barrier to affect their business.
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Language Barrier in Rice Trade with the Arab World
Although most exporters are not communicating with
Arab traders in their native language they do realize the fact that
learning Arabic is a needed step in making the business successful.
54% of the sampled exporters were of the opinion that investing
in language skills is a good step towards successful business,
these exporters know that even though they are managing their
business either with the help of the interpreter/translator or
communicating in English with the Arab traders, but their business
is getting affected by this as the Arab traders does take this
language barrier into consideration when dealing with them. Thus
most exporters do believe that investing in language skills can
earn them more profits and increase their trade volumes.
13- Arab Language as a Means to Establish Linkages with the
Arab World in International Trade.
12- Investing in Language Skills Will Increase Trade Volumes
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PAKISTAN BUSINESS REVIEW JULY 2010
Language Barrier in Rice Trade with the Arab World
When asked if Arabic language has become a necessity
for establishing linkages with the Arab world in international
trade, most of the exporters i.e. 64% were of the opinion that
Arabic is not a necessity and linkages are and can be established
without it. However, 36% of the exporters did believe that Arabic
plays a vital role in establishing international trade relations with
the Arab world.
14- Better Understanding Culture by Means of Arabic Language

Qu e s t i o n 1 4
0 %
1 0 %
2 0 %
3 0 %
4 0 %
5 0 %
6 0 %
Yes N o
The exporters know that by learning Arabic it would be
helpful for them to understand the culture which in turn would
help them understand the eating habits of the Arab world. This
would help them do better business in the Arab world. 56% of
the exporters were of the opinion that knowing the Arabic
language will help them understand the Arab culture and do
better business with the Arab world.
15-Facilities by Government in Improving Language Skills
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Language Barrier in Rice Trade with the Arab World
When asked how the government could facilitate the
businessmen in improving the language skills, the majority of the
exporters i.e. 59% said that the government should facilitate the
businessmen in improving the language skills by providing them
with free courses and better learning opportunities as this can
make them increase their volume of trade when they can
communicate in a much better way. Not only will it help them in
increasing trade volumes but in reducing their costs in terms of
interpreters/translators and also the loss they suffer in terms of
lost business because of the language barrier.
V- Conclusion
The survey shows that a significant minority of rice
exporters from Karachi regard the language barrier as an important
impediment to expanding trade with the Arab World. Courses in
Business Arabic should be developed to address this required
need.
References
Albert Breton (ed). Exploring the Economics of Language. New
Canadian Perspectives.http://www.pch.gc.ca/progs/lo-ol/
perspectives/english/explorer/
Dorothea C. Lazaro and Erlinda M. Medalla, 2004, English as the
Language of Trade, Finance and Technology in APEC:An East
Asia Perspective, PIDS Discussion paper series 2004-36
Francois Grin The Economic Approach to Minority Languages.
Journal of Multilingual and Multicultural Development, 11, 1&2
(1990): 153-173.
Hyejin Ku & Asaf Zussman, 2008, Lingua Franca: The Role of
English in International Trade
Importance of Spoken Language within cross- and Intercultural
Communication, By Coprnico Fernando Pereyra Centella.
412
Case Study
PAKISTAN BUSINESS REVIEW JULY 2010
Language Barrier in Rice Trade with the Arab World
Karim H. Karim, Language and the Economy: Canada in an
International Perspective. New Canadian Perspectives.
Kramsch, Claire. (1998). Language and Culture. Hong Kong:
Oxford University Press.
Lado, Robert. (1986). Linguistics Across Cultures. University of
Michigan Press, Ann Arbor. p. In Valdes, Merrill J.(eds.) (1986).
Culture Bound. The United States of America: Cambridge
University Press
Lustig, M. W. and Koester, J. (1996). Intercultural Competence:
Interpersonal Communication Across Cultures.
Nicolas Sauter (2009) Talking Trade: Language Barriers in Intra-
Canadian Commerce : FIW Working paper N23 2009
Samovar, L. S.& R. E. Porter. (1982). (6th ed.) Intercultural
Communication: A Reader. Belmont (CA): Wadsworth.
Victor Ginsburgh, Ignacio Ortuno-Ortin and Shlomo Weber, 2004,
Why do People Learn Foreign Languages.
William K. Hutchinson 2002, Does Ease of Communication
Increase Trade? Commonality Of Language and Bilateral
Trade; Working Paper No. 02-W17
Yule, George. (1996). (2nd ed.). The Study of Language. The
United Kingdom: Cambridge University Press.
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Book Review
PAKISTAN BUSINESS REVIEW JULY 2010
Curriculum of Pakistan Studies BS (4 Year) HEC 2008
HEC 2008
CURRICULUM OF
PAKISTAN STUDIES
BS (4 YEARS)
Bettina Robotka
Department of Social Science
College of Business Managment, Karachi
The Curriculum Revision Committee of the HEC has
published a revised curriculum for the study of Pakistan Studies
at higher educational institutions in Pakistan in a BS 4 year degree
program BS Hons. The commission included prominent names
such as that of Prof. Sharif-al Mujahid of Karachi and Prof.
Massarat Abid of Lahore and was guided by Dr. Raz ul-Haq,
Member Academics HEC. This panel of specialists awakens
expectations of a new and innovative approach towards this
academically and politically important field of studies in the light
of the current controversies with Islamic ideologies and the highly
complicated relationship with neighbouring India and
Afghanistan. Unfortunately, the curriculum does not come up to
those expectations. A new or innovative approach is not visible
in its structure and content.
In a short introduction the commission states the aims
and objectives of such an educational program as creating
awareness among students about the vision of Pakistan and
educate the students about the nature of the state of Pakistan
as envisioned by its leaders (p.9). This seems to be a very limited
objective of a program for students who spend four years in a
higher educational institution to obtain a degree in Pakistan
studies after all of them must have gone through more than 12
years of Pakistan studies at the primary and secondary levels of
their former education. It seems further that after such a long time
(of four years) the students should be enabled to formulate their
own ideas about the subject matter and get an overview at least
about the current scientific concepts related to the subject.
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Curriculum of Pakistan Studies BS (4 Year) HEC 2008
Apart from the technicalities of the program the
underlying concept of history for Pakistan seems to be the current
Pakistani state as it came into existence in 1947 as a result of the
so-called Pakistan movement. This seems to be a too narrow an
approach towards the problem if we want to integrate the different
regions and nationalities into one Pakistani identity. A better
concept according to this author would have been to look at
Pakistan as the territory and people which the modern state
comprises of and the history of the people and regions. That
would have given the opportunity to include Hindu and Buddhist
history and cultural heritage of Pakistan into the basic concept of
a modern Pakistani state. To keep the traditional reduction of
Pakistan to its Islamic cultural and historical heritage intact means
to give away an important means of integrating not only religious
minorities but also regional cultural identities into the Pakistani
identity so as to overcome the one-sided, exclusive understanding
which is prevailing until now. Ancient history of the subcontinent
is present in the curriculum as a choice for a major but that is not
enough. It should be compulsory for all students who earn this
degree as a main part of a different concept.
Another critique is the keeping of the old idea of the
Pakistan movement, suggesting that from 1857 there was no
other way for the subcontinent than to be divided into India and
Pakistan. This is a controversial understanding which can not be
upheld in the light of the documents of the Muslim history of the
subcontinent and in the light of the book of the former Indian
Foreign Minister and member of the BJP Jaswant Singh India:
Partition, Independence. It should not be made the basis of a
curriculum of Pakistan studies binding for all higher educational
institutions in Pakistan.
Another point of critique is the missing or only random
emphasis on the conceptual education of the students. In order
to study the nature of the Pakistani state it is indispensable to
first get an introduction to political science theory of state and
political systems. In a second stage, the idea of state of the secular
leaders of Pakistan has to be confronted with the idea of an Islamic
state which was developed in the course of the political discussion
about the future of the subcontinent and also with the model of
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Curriculum of Pakistan Studies BS (4 Year) HEC 2008
the Moghul state that was existing for several hundred years in
the subcontinent. This would enable students to develop a more
systematic approach towards the theoretical basis of the problem
and if given a good basis to enable them to go for a major at a
later stage in political science. Other concepts such as the one
about culture are mentioned randomly (p.25/26) without providing
a scientific framework which would be given through
anthropological access to the problem; the same would apply to
basic concepts of Pakistani society and its structure which need
sociological back-up.
May be the lack of emphasis on conceptual issues in
the curriculum is due to the fact that previous teaching and
research in this field has not produced a sound basis for it. If
this is so still this vacancy should be addressed.
When studying the current curriculum with regard to
contemporary issues in Pakistan this author feels that the
problem of Islamic fundamentalism (extremism) or whatsoever
other term we would like to use has not been addressed. I regard
it as important that graduates with a degree in Pakistan studies
are not only informed but have an understanding about the
historical and ideological background for the current ideas of
jihad and a shariah state which has brought about movements
like the one of Sufi Mohammad and others based on pan-Islamic
content. The idea of Pan-Islam and its history in the subcontinent
should be included in the curriculum. One idea could be also to
substitute the traditional and not very innovative Islamic
studies (which again have been taught to the students in their
previous years of education) with a course on philosophical
ideas and concepts in Islam where Pan-Islam and others could
easily be adjusted.
A really positive idea is the demand of the curriculum to
teach the history of the province or the region as a compulsory
subject to the students though it would be probably difficult to
have courses for all regions/provinces in all places. Regional
history is an important part for the provision of identity which is
a major task of history teaching in any country. It has to be done
by recourse to the relationship between regional and national
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Curriculum of Pakistan Studies BS (4 Year) HEC 2008
identity and of the idea of the two being in conflict. For that
recourse to the idea of nation and nationalism has to be included
as another conceptual basis. The two-nation-theory which was a
major part of former teaching in Pakistan studies happily has
disappeared in the current curriculum but it seems to be better
not to let it just disappear but to say and discuss why this has
happened.
All the critical remarks notwithstanding there is no doubt
about the fact that a new approach towards the subject of Pakistan
studies is the need of the hour. It would contribute to a clarification
of the Pakistani identity of the young generation and its
relationship with local, regional and ethnic identities. In order to
fulfill this need teachers teaching this subject in a better way are
indispensable. One task of this new curriculum could be to educate
teachers for the subject of Pakistan studies and thus provide an
improved basis for understanding the contemporary problems
and issues of this country to its young generation.
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Curriculum of English BS (4 Year) HEC 2008
HEC 2008
CURRICULUM OF
ENGLISH BS (4 YEAR)
Muhammad Asif Khan
Department of Communication
College of Business Managment, Karachi
The Curriculum Revision Committee of the HEC has
published a revised curriculum for the study of English at higher
education institutions in Pakistan in a BS 4 year and MS 2 year
program. The committee included prominent names such as that
of Dr. Fauzia Shamim and Dr. Farhan Ebadat Yar Khan and was
guided by Dr. Raiz-u-Haq Tariq member Academics HEC. The
panelists took a bold initiative in order to revive and redesign
programs offered at the bachelors and masters level in the fields
of English Literature and English Linguistics. Indeed there was a
dire need for these programs to be redesigned and revamped in
order to make the students meet 21
st
century challenges.
In the introduction the committee states the aims and
objectives of the program. The aim of the program is to encourage
learners to read and analyze critically a wide range of texts and
to orient the learners to various traditions of writing/speech in
English. There is also a long list of objectives. These objectives
state that the learner would be able to display substantial
proficiency in oral and written English, and demonstrate
knowledge of core linguistics and literature concepts and their
various applications (p.10). In terms of aims and objectives the
committee could not give us anything new. These are the same
aims and objectives which even the old curriculum was geared
to achieving.
The development of complete programs of BS (4 year)
and MS (2 year) in linguistics is quite commendable; in fact it
should be considered a giant leap. Previously linguistics used
to merely stem from English literature and it was only in the final
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Curriculum of English BS (4 Year) HEC 2008
year of M.A. that the students would be allowed to take up
linguistics. The new curriculum would allow the students to go
through a full six year linguistics program, hence allowing them to
brush their skills as prospective experts of the English language.
However, the author feels that graduates in linguistics would
technically be qualified to teach English language only and not
literature. It may be noted that the graduates of the previous
program (old curriculum) used to have a taste of English literature
at least for a year (in the case of M.A. students), hence enabling
them to somehow manage to teach both language and literature.
The author feels that both the programs could have been enriched
by making the students of either program take up a few courses of
either literature or linguistics. The previous curriculum offered a
course of TESL (Teaching of English as a Second Language) at
the M.A. literature level, which enabled students to have a hands
on experience of teaching the English language.
The introduction of a masters degree in Applied
Linguistics (MS 2 years) is indeed a welcome addition. This is
likely to contribute to the effectiveness of English language
teaching. Graduates of this program would surely be able to better
meet the current issues of English language teaching and they
would be able to base their teaching on modern lines.
There is no doubt that the program looks great on paper,
however, the problems arising while implementing it are yet to be
seen. Research thesis is a welcoming addition to the new program.
The concerned department will have to work hard in order to
provide proper research facilities for students; this may include
setting up of a proper computer laboratory. The same could be
said for other courses offered in the linguistics program. A proper,
well equipped, and modern language laboratory would be the need
of the hour. The language laboratory of the English department at
the University of Karachi, during the authors student life, used to
be terrible.
The introduction of mandatory internship for the
students is also a bold initiative. However, one sincerely hopes
that the internship would not merely be treated as a subject to be
taught in the classroom. The author hopes that the students would
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Curriculum of English BS (4 Year) HEC 2008
be able to get some practical experience by working in the field of
their choice.
A surprise omission from the old curriculum is that of
Practical Criticism. It was a very practical course and the students
were able to learn various techniques to identify and critically
analyze various texts from literature. The course also enabled
the students to appreciate and critically analyze poetry. The
author feels that the absence of this course would greatly affect
the quality of graduates of literature. All said and done, the
curriculum leaves a lot to be desired as it has bypassed Chaucer
Canterbury Tales and Wordsworths Prelude at the MS level and
this is to say the least.
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Linguistic Awareness in Multilingual English as a Third Language
Ulrike Jessner
LINGUISTIC AWARENESS
IN MULTILINGUAL
ENGLISH AS A THIRD LANGUAGE
Edinburgh University Press, Edinburgh 2006
Madiha Zeest
Department of Communication
College of Business Management, Karachi
The first chapter of the book, Multilingualism with
English, concentrates on the sociolinguistic aspects of
multilingualism, which are seen to develop in parallel with the
changing status of English. Following Hoffmanns (2000)
approach the author focuses on multilingualism with English.
The interdependency between linguistic conditions on the
societal level and the individual use and knowledge of languages
is emphasized. As a widely used lingua franca English is
developing distinct characteristics. The essential research
question of when a speaker can be called multilingual is
discussed.
The second chapter, Learning and Using a Third
Language, analyzes the psycholinguistic aspects of Third
Language Acquisition. Jessner specifies differences between
the processes of Second Language Acquisition and Third
Language Acqui si t i on She demonst rat es model s of
multilingualism that illustrate language awareness and language
choices in a multilingual individual. Following dynamics systems
theory (DST), third language learners develop an enhanced level
of metalinguistic awareness and metacognitive strategies, which
considerably contribute to the quality of Community Learning
and Information Networking in multilingual.
The third chapter, On The Nature of Linguistic
Awareness, provides a state-of-the-art description of research
on metalinguistic awareness including a presentation of the
functions and roles that metalinguistic awareness in multilingual
speech and learning can fulfil. First of all, a survey of research
on metalinguistic awareness in bilinguals is presented.
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Linguistic Awareness in Multilingual English as a Third Language
Providing a comprehensive overview of research on
metalinguistic awareness, Jessner states that the terminology used
in this growing area of research on multilingualism is rather
confusing (I would suggest that the question of confusing
terminology is relevant in code-switching research as well. The
author suggests that linguistic awareness might also be studied
from the point of view of qualitative changes in learning processes.
It plays a decisive role in monitoring and cross-linguistic
interaction in multilinguals, which contribute to the understanding
of multilingual proficiency. Monitoring is described as keeping
track of how the learning process is developing and taking
appropriate measures to deal with problems interfering with the
process.
The fourth chapter, Exploring Linguistic Awareness in
Third Language Use, aims to provide evidence of linguistic
awareness as an essential component of multilingual proficiency.
The author deals with multilingual studies of language mixing
resulting from linguistic search in various settings. The
methodology of introspection is described. Jessner presents a
study carried out at Innsbruck University with Italian-German
bilingual students from South Tyrol studying English as their
third language. The research method was introspection in the
form of thinking-aloud protocols (TAPs), that is, the subjects
were asked to articulate aloud all their thoughts during the writing
performance without the use of a dictionary. The structure of this
investigation was based on a study of academic writing in a second
language . The aim of the Tyrol study is to explore the relationship
between cross-linguistic interaction and linguistic awareness in
the use of multilingual compensatory strategies. . A detailed
analysis of examples is presented as well. The chapter ends with
considerations on future research.
In the fifth chapter, Crystallizing Linguistic Awareness
in Multilingual Education, research on linguistic awareness in
multilingual education is presented. Jessner notices that in
contrast to bilingual education, third language learning at school
has received little attention so far. A growing
number of studies of the linguistic behaviour of
multilinguals clearly give evidence of cross-lexical search and
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Linguistic Awareness in Multilingual English as a Third Language
thus represent an argument against total separation or
independence of languages in multilingual processing. While
from the 1970s to 1980s the mother tongue was assumed to exert
only negative influence, recent studies have shown the facilitative
role of transfer in the language learning process. Language
awareness begins with the teacher . But making language learners
aware of their own metacognitive knowledge is also an essential
aim of multilingual education (how to learn to learn a language).
Concentrating on new ways of looking at English as part of a
developing multilingual system in the language learner, Jessner
underlines some innovative didactic approaches to teaching in
the multilingual classroom. She stresses that teaching English
as L3 is not teaching English as L2. The differences between
native and non-native teachers of English are also discussed.
Jessner concludes that every English teacher potentially and
necessarily needs to function as a forbearer and founder of
multilingualism.
The sixth chapter, Envoi, emphasizes the need of
restructuring and expanding language awareness definitions and
scope. The basic reframing of linguistics towards multilingual
norms is also required.
The purpose of this book is to explore links between
research in third language acquisition and trilingualism, cognitive
aspects of language acquisition and metalinguistic awareness.
All this is done on the basis of English as one of the languages
in a multilingual context.
423

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