Tag: History

  • What is the Information Technology Outsourcing (ITO)?

    What is the Information Technology Outsourcing (ITO)?

    Information Technology Outsourcing (ITO) will continue to have a major impact on all organizations and could over time more and more grow to be a crucial part of the organization’s strategy. Various elements within the metamorphosis of ITO might exist blanketed however now not always special.

    Here is the article to explains, How to define Information Technology Outsourcing (ITO)?

    ITO has to grow to be an international phenomenon. Globalization with a few distinct drivers in technology evolution has reshaped the marketplace and given an upward thrust to the arrival of the digital age. A sustainable competitive enterprise method will want to embody this opportunity and will want to are seeking enablers to exploit it. What are the advantages and disadvantages of Information Technology Outsourcing (ITO)? IT, by the internet and broadband communications, particularly, allows an organization to fulfill this need. Further lower prices of communication, the boom in broadband capability, and web collaborations boost the technique.

    What does the meaning of Information technology (IT) outsourcing?

    Information technology (IT) outsourcing is an organizational approach of hiring 1/3-party service vendors to address the IT-associated methods of your organization. Its features encompass software improvement, infrastructure answers, technical customer support guides, and facts analytics. Most companies outsource these obligations to lessen fees, access to higher skills and simplify upscaling. IT outsourcing is the usage of external carrier vendors to successfully supply IT-enabled enterprise strategies, utility offerings, and infrastructure answers for business outcomes.

    Outsourcing, which also includes software services, software programs as a service, and cloud-enabled outsourcing, allows clients to develop the proper sourcing techniques and vision, pick out the right IT service carriers, shape the first-class possible contracts, and govern deals for sustainable win-win relationships with outside companies. Outsourcing can enable firms to lessen costs, accelerate time to market, and take benefit of outside know-how, assets, and/or intellectual property.

    Definitions of Information Technology Outsourcing (ITO);

    Outsourcing has variously existed defined by scholars in the Information Systems (IS) literature as follows:

    1. “The significant contribution of external suppliers in the physical and/or human resources associated with the entire or specific component of the IT infrastructure in the user organization”.
    2. “Outsourcing occurs when third-party vendors are responsible for managing the Information Technology components on behalf of their clients. IT Outsourcing means handing over the management of some or all of an organization’s information technology (IT), systems (IS), and related services to a third party”.
    3. “…business practice in which a company contracts all or part of its information systems operations to one or more outside information service suppliers”
    4. “Outsourcing is the handover of an activity to an external supplier. It is an alternative to internal production”
    5. “IS sourcing” is the organizational arrangement instituted for obtaining IS services and the management of resources and activities required for producing these services.

    Therefore outsourcing involves the transfer of the responsibility for carrying out an activity (previously carried on internally) to an external service provider against agreed service levels at an agreed charge.

    Information Technology Outsourcing (ITO) History;

    ITO has received great attention from scholars and researchers since the mid-1990. But, it’s been around for a while as per the examples below:

    • 1963 – Electronic Data Systems (EDS under Ross Perot) signs an agreement with Blue Cross for the handling of its data processing services.
    • In the mid-1980s – EDS signed contracts with Continental Airlines, First City Bank, and Enron.
    • 1989 – Kodak outsources its IS function to IBM, DEC & Businessland (“Kodak Effect”) being the most notable example.
    • More recent developments (Kern and Willcocks 2000, Ross and Westerman 2004, Kishore 2003, Kaiser 2004, Lander 2004, IBM 2004, Smith and McKeen 2004), suggest motivation is more strategic to improve the business’ competitive advantage.
    • It’s clear that ITO is not quite a new phenomenon but is increasingly more prominent in this era where it is prevalent in almost every facet of the business. The industry evolved from a monolithic mainframe to pervasive computing.
    • A survey of the London Stock Exchange FTSE Index over three years found a generally positive relationship between high levels of outsourcing and enhanced stock market performance.
    Reasons for outsourcing;

    Organizations adopt ITO for various reasons. The ever-dynamic evolution within the IT sector grants great opportunities to businesses. The following reasons were invariably most common as per numerous surveys done and researched globally:

    Cost reduction;

    This has been the foremost reason to outsource as senior executives only view the IT function as a non-core activity and a necessary cost to minimize. Economic pressures are also external factors that lead to the advent of ITO. Lacity and Willcocks explain that cost savings are no longer a major reason for outsourcing.

    Focus on core competency;

    Business deems IT as a cost center and excludes it from their core strategy. With increased shareholder demands organizations feel they need to refocus on broader business issues other than technology. Organizations place more focus on their “core competency” business.

    Access to specialist expertise and technology;

    Highly skilled labor comes at a cost and also technology is also not readily available. ITO is not only for cost savings but as a tool for utilizing state-of-the-art expertise and technology through their service providers.

    However, of late, companies with strong IT capabilities, such as IBM, Microsoft, and SUN, are also outsourcing some of their IT functions to concentrate on their core responsibilities and reduce costs to economies of scale.

    Decision Making;

    In the past, organizations used frameworks and models as guidelines for assessing their current state and determining future strategic actions. More organizations are considering ITO as part of their strategic thinking. Organizations use ITO as a method to reduce costs and achieve efficiency and flexibility. But, many don’t realize the benefits due to bad decision-making.

    ITO decision-making is a process and requires scrutiny before the existing finalize. ITO decision-making process addresses a wide range of issues, such as economic (eg., financial feasibility), technological, and political. This process starts with an in-house assessment of the IT capabilities which should highlight management activities that can potentially outsource.

    SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis could use to substantiate the need to whether ITO can use to negate those threats and weaknesses or whether it is necessary to explore ITO. The facts gathered should include a baseline and evaluation of the current environment. Which should exist made available for executive management approval.

    Knowledge within the strategic decision at this higher level can thus be descriptive (know-what), procedural (know-how), or reasoning (know-why). Case studies within surveys conducted by M.C.Lacity, L.P.Willcocks, and D.F.Feeny published in the Sloan Management Review summarize the ITO process. The abovementioned reasons were most common in their samples.

    Scope of sourcing;

    Sourcing exists often referred to in IT literature as outsourcing. The research delineates four categories of sourcing:

    • Total outsourcing is where all IT activities including assets and management become the responsibility of a third-party vendor.
    • Total insourcing refers to the in-house management of IT activities where external or internal staff stands used with the buying in of the vendor resources to meet a temporary need. Vendor resources exist only used to supplement the internally managed teams.
    • Selective sourcing locates selected IT activities to vendors. While the customer remained responsible for delivering the result and will exist held accountable.
    • De facto insourcing uses internal IT departments to provide products and services that arise from historical precedent. Rather than from a reasoned evaluation of the IT service market.
    Considerations of sourcing;

    A critical review of the above categories found that the all-or-nothing approach ( total outsourcing) characterized by long-term (5 years or more) deals can lead to trouble after a few years as exemplified in the case studies due to:

    • Senior Management approach ITO like any other make-or-buy decision. Where ubiquitous IT applications across business functions complicate matters.
    • Lost alignment between business and IT strategies.
    • Failed promises to access new technologies.
    • Processing power cost depreciates at an average of 20 percent annually due to the IT capabilities evolvement.
    • And contractual costs soared greater than market prices.
    • Termination of such contracts was found to be prohibitively expensive.
    • The research found that those who approach ITO in all-or-nothing terms either incur great risks or forego the potential benefits of selective sourcing.
    Categories Information Technology Outsourcing (ITO);

    Reasons for ITO can be categorized as two-dimensional and based on:

    • Purchasing style refers to contracts to either be once-off or an expectation of business for many years.
    • Purchasing focus refers to companies buying resources from vendors. Such as hardware, etc, and managing the delivery of IT themselves or vendors manage the IT activity and the organization expects the specified results.
    • The result is four distinct categories will be representative of whether ITO is required as the figures represent. The figure also represents a decision matrix for business and a guide for an effective strategy.
    • A decision in selecting what can be outsourced usually distinguishes between the contribution that IT makes to the business operations and its impact on competitive advantage.
    • ITO was primarily domestic but has now evolved due to globalization and can also be categorized now by the variance of service provider distance. The same reasons apply globally to ITO.
    • On-shoring refers to the outsourcing vendor located in the same country as the customer.
    • Near-shoring refers to the outsourcing vendor located geographically close but not in the same country.
    • Off-shoring refers to the outsourcing vendor located offshore and possibly on a different continent and time zone.

    How to Managing Information Technology Outsourcing (ITO)?

    Once the scope and type have been identified. The vendor selection process will exist initiated by soliciting via Request for Proposal (RFP). Not all service providers are equal as all offer different types of services:

    • IS consultancies/solutions providers – services in all IS functions
    • Systems houses – system integration
    • Hardware vendors – hardware platform
    • Ex-IS departments – industry-specific sourcing
    • Development houses – develop software
    • Generic outsourcers – manage functions, especially infrastructure
    What is the Information Technology Outsourcing (ITO) Image
    What is the Information Technology Outsourcing (ITO)? Image by fancycrave1 from Pixabay.
  • How to define the Consideration in Contract Law?

    How to define the Consideration in Contract Law?

    Essay on the Consideration in Contract Law; What does mean consideration? They have many different meanings; some will tell you it means calculations while some say it signifies affability. But in the law of contract, there will be only one definition that exists. What do the Means of Racial Profiling? Somewhat of worthy changes hands between the parties at the time of the contractual undertake is what ‘consideration’ only means in the law of contract.

    Here is the article to explain, It is define the Consideration in Contract Law!

    Consideration plays an essential role to create a contract binding. It is also a part of a must element to a successful contract formation, followed by the offer and the acceptance. For example, it could be the payment of cash when there is an exchange for goods or services, or else the goods or services themselves in the case of a trade deal. The main point is consideration is it ought to be related to something valuable, something one party would not normally have but merely for the agreement.

    ‘Although consideration has withstood direct assault from both the bench and from law reformers over the years; its Holdworthian image as an anachronistic doctrine tried to the law of actions long since dispensed with, has proved impossible to entirely shake off. However, the function of consideration as an arbiter of agreements to vary long-standing arrangements has also existed challenged by the development of alternative doctrines such as duress and promissory estoppels. In overturning almost two hundred years of legal history, the Court of Appeal held that an agreement to vary a contract is enforceable without consideration.

    What are the types of consideration approaches?

    The following consideration approach is two types Traditional and Modern below are;

    Traditional approach;

    Two rules existed under the word ‘consideration’ in the law. There are the traditional approach and the modern approach. The traditional approach is an ‘existing duty’ which is a very direct rule; as it stands concerned merely with the completion of a duty that exists stated on a contract. Dealing with the “existing duty” rule, if a party is already under a duty to perform an act, according to an existing contract, to promise to perform this act on behalf of the same person will not support a new contract between them. The above rule existed found in the case of Stilk v Myrick. The mentioned case is about a seaman named Stilk who wanted to sue his ship’s captain for not recovering his additional wages which existed promised at an earlier stage.

    The promises stood taken when two sailors had deserted in a foreign port and the captain wanted his remaining crew to work the ship back to London. Unfortunately, Stilk’s claim stood unsuccessful under the ‘existing duty’ rule; as it existed argued that Stilk had not done anything further according to his original stated contract. While in the case of Hartley v Ponsonby which is related to the ‘existing duty rule; it stood about a seaman named Hartley who sued his master for reneging his promise of paying him 40 pounds added to his wages. The promise stood made to induce those remaining crews to sail when seventeen out of thirty-six workers refused to work and ended up in prison. Hartley’s claim was successful as he did do things extra beyond his original contract which didn’t mention.

    Modern approach;

    For the modern approach as a ‘commercial realistic’ rule; it existed known as a duty which consider logically; concerned about the additional risk, beyond what exists already stated in the original contract. In the case of William v Roffey Bros & Nicholls, the facts stood the carpenter worked on a series of flat renovations; which stood subcontracted by the plaintiff and existed agreed to exist paid 20000 pounds for the workmanship. And, with an additional of 575 pounds for completion of each unit of the flat; when the carpenter got into financial difficulty then intended to stop the renovations.

    It stood held that the plaintiff has the right to own the additional wages due to the ‘commercial realistic’ rule. ‘Practical benefit’ became a good role on consideration as the defendant had avoided both obstacles; which were the penalty of late completion and troublesome in engaging another carpenter to continue the renovations.

    Other things;

    Thus, it can seem that both parties did contribute and received practical benefits. Next, comes the case of Musumeci v Wendell, in this case, a landlord named Winadell who operates a shopping center leased a fruit shop to Musumeci, on the other hand, leased another part of the shopping center to a large fruit retailer.

    This had caused Musumeci to face a strong competence hence Winadell agreed as a ‘concession’ to reduce their rent by a third. But at a later stage, Wendell intended to evict the Musumeci. Hence, turn up to bring up the case to the court to determine if the reduction rent was contractually binding. After the dispute, it stood judged that the promise was binding by applying the ‘practical benefit’ test from the case of Williams v Roffey Bros & Nicholls. This can see as Winadell received ‘practical benefit’ by having a maintained fully let shopping center in exchange for reducing Musumeci’s rental fees. In a nutshell, the main component of this rule is when there are practical benefits and contribution exists between parties, a contract follows to exist.

    History of modern approach;

    In the case of William v Roffey Bros & Nicholls, ‘commercial realistic’ existed involved. The decision made in this case existed driven by a pragmatic approach to consider but universal approval has not existed greeted. It was first designed to gain what the court regarded as the commercially acceptable solution. The fact, in this case, was Glidewell LJ was the knowledge that in return for the additional payment the main contractors intended to avoid those obstacles. Therefore, ‘practical benefit’ did exist criticized for hopelessly compromising the doctrine of consideration’. Nevertheless, this rule was more to the public’s support; as it concerns more on an individual’s benefits logically compare to the ‘existing duty rule.

    To have a better description of the above rule, I would take an example of the case mentioned in the ‘existing duty rule in addition to the promoters working overtime to reach the target of selling off at least 50 stocks without being entitled to paid extra wages during their extra working period.

    More to know;

    Due to the ‘commercial realistic’ rule, the promoters have the right to sue the dealer as it stood précised that both parties did contribute and gain benefits. On the promisor side, the dealer could avoid remaining an enormous amount of old stock; which may be an obstacle from ordering new stocks and earning more profit in the way of selling off large amounts of old stocks.

    While the promoter did give up their precious time spent on selling off the stocks; which they can choose to use the period doing other things. Hence, they won in the above case in getting the extra benefit of having a trip to Europe due to the word of ‘practical benefit’. Followed by the development of the world, the rule changed over time from ‘existing duty to ‘commercial realistic’; when limitations existed found in the rule through the days. The decision made in the case which mainly influenced the development of the rule was Musumeci v Wendell. In conclusion, the ‘existing duty rule existed created to please where the promise confers a benefit on the promisor without suffering any loss just like the case of Stilk v Myrick.

    History and Criticism of traditional approach;

    According to the researches, the ‘existing duty rule existed trenchantly criticized, avoided during its two hundred years history. It was noted that the court wasn’t focused on the presence of the consideration; but, on the need on public policy grounds to prevent extortive and fraud agreements existing between parties. This issue existed focused to solve especially in the nonexistence of an expanded concept of the duress. Besides, this rule leads to a few effects which include when a new promise exists; the court cannot use the existing duty of contract as a consideration while judging those cases.

    Next, the rule affected a promisor facing a not legally bound to a new promise. In addition, whenever the promisor was not able to fulfill the new promise; a promisee would not have the right to sue a promisor. The above rule has strongly supported the side of a promisor and may lead a promise to a loss.

    Different History and Criticism;

    Hence, this rule wasn’t fully supported by an amount of public led to the development of several avoidances of techniques. To provide a better explanation, an example of mine in the ‘existing duty’ rule is when a dealer intends to sell off all the remaining old stocks, the dealer orally provided a promise of a trip to Europe for promoters who successfully sold above 50 stocks.

    The above oral promise existed not written in black and white beyond the original contract. The dealer reneged his promise by refusing to commit the expenses for the trip to Europe. Hence, those promoters who reached the target sued the dealer for not admitting the promise. By using the ‘existing duty rule, the promoter’s claim will be unsuccessful; as it stood not written as a statement in the original contract. It stood also to argue that selling off the number of goods is not an additional act being a promoter. This is because the responsibility of a promoter is to promote a product, convincing customers to purchase it. Hence this is the responsibility but not an additional act of being a promoter.

    Strength and Weakness of the rules;

    Referring to the new ’commercial realistic’ rule from William v Roffey Bros & Nicholls and Musumeci v Wendell; its puzzle is that one party can threaten another party in extracting more payment or benefit additional provided under the original terms in the contract. While the ‘existing duty rule existed used in Stilk v Myrick, had overlooked; the additional risk in the terms of the original contract. Within these two rules, pros and cons existed found in them.

    The ‘existing duty’ rule has protection against threat which requires something exceeds; unformulated can easily fulfill practical benefit as it’s a good motivation for a requirement of consideration. But, it does not protect when a new agreement stands substituted while the parties terminate an existing one. A situation where additional payment promises compromise if a bona fide dispute does not exclude too.

    Additional rules;

    ‘Bona file is a Latin word which means ‘good faith’, it indicates sincerity; the fact in the case of a party claiming the title as ‘bona file buyer or possessor, innocence or lack of understanding of any fact that would occur doubt on the right to hold title is also what it signifies. Even a promise which undertakes additional risk, act, and forbearance wasn’t protected by the ‘existing duty’ rule too.

    The “Commercial realistic” rule views its strength in the way of benefiting parties; that facing additional risk, act, or forbearance under the original terms in the contract as these will undertook. It merely had difficulty in defining the word ‘practical benefit’ as it has many different meanings. For example, ‘practical benefit’ can act as an effective doctrine of consideration that protects parties against casual promises; it could also be the advantage of obtaining the actual contract performance that is already due. Last but not least, it fails in meeting the expectation of parties to a renegotiated contract; and, ignores any actual benefits received by the promisor as a result of the contractual variation.

    Summary;

    In conclusion, the development of the rule existed influenced by the changing of ‘existing duty to ‘commercial realistic’; and eventually lack of precision in the traditional definition in Stilk v Myrick. The rule and its development have existed perceived through the situation of ‘commercial realistic’ in Musumeci v Winadell; and the modern law of ‘economic duress’ by legal experts. It should focus on the good faith of the contracting parties to decide the existence; and relevance of any supposed practical benefit in the development of contract law. Both doctrines of consideration and the more basic underlying basis of the law; themselves stood harmed by the introduction of practical benefit in the consideration.

    How to define the Consideration in Contract Law Image
    How to define the Consideration in Contract Law?
  • 1800s Women how were Treated or Role in Society?

    1800s Women how were Treated or Role in Society?

    1800s Women were Treated or Role in Society; During the early 1800s, women existed generally trapped in their homes and would only perform domestic chaos and duties. Nature and society had given them roles as the home keepers, ethical keepers for the home and the entire society, as well as housewives for their families. The roles as housewives were to bear children, take care of the young ones as well as submit to the husbands. Socially, women lived considered weaker hence unequal to their men counterparts. Some people would compare such a condition to slavery. Women had no control of their lives. Everything existed entirely controlled by the men in the society. How lived women treated in the 1800s? First, their fathers and brothers would control them when they are still young and when they exist married, their husbands would finally control them.

    Here is the article to explain, How Women were Treated or roles in society in the 1800s?

    Their key purpose was to look for a husband, give birth, and take care of their husbands throughout their entire lives. It was taboo for a woman to remain single; in fact, single women lived scorned and pitied by society. A woman-owned property when she stood still in her father’s house but after she got married, property ownership shifted to the husband. The husband had a right to access everything that a woman had, as well as her own body.

    For these women, marriage was a lifelong commitment. Women existed not supposed to divorce; they lived expected to live with their husbands even if it meant living in miserable marriages. Divorce was highly punishable and the woman would always fall victim. This did not only undermine their physical requirements but also destroyed their opportunities of having any kind of freedom. It subdued their voice of influence thus giving them no hope of attaining social recognition.

    History Part 01;

    Women existed not allowed to venture into any other activities apart from taking care of their families. The husband was the sole breadwinner of the family. The only source of finance was the husband hence the only chance for women to be economically protected was for them to marry financially secure men. This made them more dependent on men and if the man died, they would be left with no source of income apart from her husband’s savings. Society looked at women as asexual beings; people with neither feelings nor a life of their own.

    However, during the 1800s, women’s movements became so effective that women began to challenge the social, traditional, economic as well as political intellectuals that had hindered them for a long time. This was the starting point for the turnabout of their roles in society.

    Throughout history, women have had fewer legal rights and occupation opportunities, hence less representation compared to their male counterparts. Motherhood and wifehood lived considered as their most major professions. Towards the end of the nineteenth century, however, most women had won the right to vote and had increased their chances to access education and other professions initially considered for men. Marriage existed considered very essential and significant for the sake of the stability of society.

    History Part 02;

    Women stood therefore expected to be very obedient and submissive to have a happy and stable marriage. During these times, education was a disputable topic and it was the first topic that motivated women into protesting. However, not a single feminist could come up with a means through which education would stand equalized between girls and boys. Only the daughters of rich parents would get formal education. Educated girls lived however perceived as unattractive sexually, thus getting married was a big struggle for them.

    The only subjects that girls existed taught in school were language; reading and writing. Other courses included wifely responsibilities and activities such as knitting, midwife, cooking, and waving among others. Women began to form “women’s rights movements” which helped them in protesting against slavery as well as men’s dictatorships. These movements led to the revolution which eventually led to the constitutional amendment processes which brought about the eradication of slavery. This was a great achievement in women’s history since they could freely speak out their views.

    History Part 03;

    In the mid-1800s, women became resistant to the oppression by men and they wanted to become independent, treated, or role in society. As a result, they protested for equal education opportunities and religious activism. It was not that easy; women had to fight both men and fellow women. Men, in general, overlooked feminists, and those women who stood still dedicated to the traditional way of life, did not want to hear anything concerning women’s independence. The only place in which women got total support was the church, which also had its interest. Women became successful in these reform movements and for the first time in history, men became challenged by female domination.

    Women thus began to perform duties outside their homes. This meant that they would cook, nurse, and educate young people for pay. They also became teachers, nurses, and secretaries; which were the only jobs that society accepted women to pursue. Nevertheless, a woman stood only supposed to work as long as she does not marry, but once married; she existed expected to stop working and take up her role as a wife and mother. During this time, being a housewife necessitated a wide range of multifaceted abilities since almost all items stood homemade. However, their employment opportunities expanded during the industrial revolution period. Many women worked in the new industries to fill the vacant places.

    History Part 04;

    The public school system also expanded thus leading many more women to exist employed as school teachers. Nursing also became a highly regarded job for women in the 1850s following the restructuring in hospitals and the nursing career. The civil war also contributed greatly to the evolution of women’s roles in society.

    It resulted in many women getting jobs in the government and other offices, that existed initially held by men, to fill in the positions evacuated by men as they went to fight. After the civil war, women continued to work in the government since they had proved to men that they could work. Another thing that encouraged women into employment was the discovery of a typewriter. The research found out that women would make better typists than men hence women were all over as typists and sales clerks.

    By 1870, women learning prospects had improved drastically. There were additional schools for girls and most colleges could also admit women for advanced courses. By the end of 1880, women had made up approximately one-third of the total population of students in the United States. At the same time, women attained more legal rights with the establishment of more movements and acts. For instance, the married women property act allowed married women authority over their properties. Her property was hers and not her husband’s.

    1800s Women how were Treated or Role in Society Image
    1800s Women how were Treated or Role in Society? Image by JULIO VICENTE from Pixabay.
  • Sierra Leone History Religion Education 1300 words Essay

    Sierra Leone History Religion Education 1300 words Essay

    Sierra Leone History, Religion, Education, and 1300 words Essay; Sierra Leone is rustic in West Africa, at the Atlantic Ocean. It acknowledges the white-sand seashores lining the Freetown Peninsula. The country owes its name to the 15th-century Portuguese explorer Pedro de Sintra, the first European to sight and map Freetown harbor. The original Portuguese name, Serra Lyoa (“Lion Mountains”), referred to the range of hills that surrounds the harbor. The capital, Freetown, commands one of the world’s largest natural harbors.

    Here is the article to explain, Sierra Leone History, Religion, Education, and 1300 words Essay!

    Although most of the population engages in subsistence agriculture, Sierra Leone is also a mining center. Its land yields diamonds, gold, bauxite, and rutile (titanium dioxide). Internal conflict crippled the country from the late 1980s onward, culminating in a brutal civil war that took place from 1991 to 2002. Since the end of the war, the government of Sierra Leone has undergone the arduous task of rebuilding the country’s physical and social infrastructure while fostering reconciliation. A critique of the Sierra Leone Education Policy;

    History of Sierra Leone;

    This discussion focuses on Sierra Leone from the 15th century. For a treatment of earlier periods and the country in its regional context, see western Africa, history of. Archaeological findings show that Sierra Leone has been inhabited for thousands of years. Traditional historiography has customarily presented it as peopled by successive waves of invaders, but the language pattern suggests that the coastal Bulom (Sherbro), Temne, and Limba have been in continuous settled occupation for a long time, with subsequent sporadic immigration from inland by Mande-speaking peoples, including Vai, Loko, and Mende. They organized themselves in small political units—independent kingdoms or chiefdoms—whose rulers’ powers existed checked by councils. Secret societies, notably the Poro society, also exercised political power, as well as instructing initiates in the customs of the country.

    Education History;

    Education and Practices of Uncertainty in Sierra Leone; Also, Education was historically valued in Sierra Leone as a possession that conveyed and expressed elite status, with the revered, authoritative teacher being the gatekeeper. The erosion of teachers’ authority through government policies designed to universalize access to education has called into question the once-certain high status of the educated. With the future now ambiguous, students and teachers undertake “practices of uncertainty,” engaging in symbolic boundary work to distinguish themselves from the uneducated; but at the same time undertaking the same manual labor as the unschooled.

    They socially level the elite and concurrently seek entrée to their networks; and react to an uncertain future with contradictory practices. The work undertaken by students and teachers lies within and reinforces extant social values that emphasize the importance of both distinction and belonging, revealing education’s enduring value in the social imaginary. This explains the tenacity of the idea of education even in a persistently desultory employment climate.

    Religion;

    About two-thirds of the population are Muslims, while about one-fourth are Christians. Less than one-tenth of the population practice a variety of traditional religions. However, this number does not include the many Sierra Leoneans who practice traditional religions in tandem with their professed Muslim or Christian faiths. Other religions—including Bahāʾī, Hinduism, and Judaism—are practiced by small percentages of the population.

    Liberalization and Conflict;

    Externally encouraged policies of liberalization in Sierra Leone in the 1970s and 1980s fed into civil war in the 1990s; yet such policies are now being revived. This article analyzes the impact of liberalization on the war in Sierra Leone, suggesting that it affected the conflict in four ways; first, by encouraging inflation, extreme devaluation, and private oligopolies; second, by reducing key state services such as education and health; third, by fueling corruption as real state salaries were cut; and fourth, by taking attention away from soldiers’ abuses under the military government of 1992-96; a government that existed praised and rewarded for its liberalization agenda.

    Making a case for critical African drama;

    This paper posits that continued adherence to the inherited British model constitutes one of the major problems inherent in the educational system in Sierra Leone and that the introduction of what the author is calling critical African drama could constitute a major and specific step toward the decolonization and Africanization of education in Sierra Leone. The author outlines some of the problems of education in Sierra Leone, critiques the tentativeness with which African elements have been introduced, puts forward proposals for change, and advances critical African drama to illustrate how these proposals could implement in and what they would mean for the specific subject area of literature/drama studies in secondary schools.

    Education;

    The standard of education in Sierra Leone before and immediately after independence was one of the best around the world. With the University of Sierra Leone established in 1827, Sierra Leone stood dubbed, “Athens of West Africa”. But that educational system fell on hard times. Over a long period of neglect, the country witnessed an erosion of standards in its educational system. From 1970 to 1985, the average growth rate for primary school enrollment was slightly more than 6.0 percent; while that for secondary school enrollment was just over 6.5 percent. From 1985 to 1990, the average annual growth rate for primary school enrollment fell to 2.0 percent; while that for secondary school enrollment fell to 1.6 percent. Besides these enrollment concerns, the outputs of institutions at the technical/vocational and teacher education levels had also been found wanting.

    Government education policy;

    Goals of education by the ministry of education, science and technology Taking into consideration its statutory mandate, the ministry developed the government goals of education that take into cognizance international markers such as the Education For All (EFA) programs, the Millennium Development Goals (MDG) and the desperate desire to recover from the throes of war.

    The goals are:

    • Reduction and relief of poverty using education
    • Significant increase in the literacy rate
    • Free and compulsory quality Basic Education
    • Gender equity in access to and participation in education
    • Increase in access to quality education at post-Junior Secondary School level
    • Empowerment of youth through education
    • Increased access to education for the disadvantaged and disabled
    • Decrease in regional and district disparities in access and quality education
    • Greater decentralization of education and devolution of authority by the increase in community ownership of schools.

    The government has progressively increased allocation to the Education sector to about 23% of the national budget. This increased allocation has facilitated improved access to fundamental quality education.

    Religion within education;

    The Sierra Leone constitution provides freedom of religion and the government generally protects this right and does not tolerate its abuse. About religion in Sierra Leone, the predominant faith is Islam, which is practiced by around 60% of the population; 30% adhere to Christianity, and 10% adhere to their indigenous religions. Unlike many other African countries, the religious and tribal mix of Sierra Leone rarely causes religious or tribal conflict.

    The nature of schooling costs in Sierra Leone; Sierra Leone is one of the poorest countries in the world with a literacy level of 51%. The government has officially abolished school fees; however, families still have to cover various education-related costs for their children. This paper analyses the nature of the schooling costs in Sierra Leone. It shows that despite the abolition of school fees, schooling costs remain prohibitively high. Based on field research – which involved the observation of schools and interviews with teachers, pupils, and parents – the paper posits that institutional factors may prevent the reduction of these costs.

    Sierra Leone History Religion Education 1300 words Essay Image
    Sierra Leone History Religion Education 1300 words Essay; Image by Charles Nambasi from Pixabay.
  • 7 Evolution Development of ERP Enterprise Resource Planning

    7 Evolution Development of ERP Enterprise Resource Planning

    What is the 7 Evolution or Development of ERP Enterprise Resource Planning Systems? The construction industry is one of the major industries contributing to the economy, even though it is measured to be one of the most highly fragmented, inefficient, and geographically detached industries in the world. Thousands of major construction firms and increasing numbers from other sectors as well, either have just completed their first ERP implementations or are in the middle of this major undertaking. 7 Evolution and Development below are; Pre material requirement planning, Material requirement planning (MRP), MRP- II, ERP, Extended ERP, ERP Planning–II, ERP-A manufacturing perspective.

    Here is the article to explain, 7 Evolution and Development of ERP Enterprise Resource Planning with their history!

    The history of ERP can trace back to the 1960s when the system focuses mainly on inventory control. During the 1970s, a shift of focus towards MRP (Material Requirement Planning) did observe. This system helped in translating the master production schedule into requirements for individual units like sub-assemblies, components, and other raw material planning and procurement. This system did involve mainly in planning the raw material requirements.

    Then, in the 1980s came the concept of MRP-II (Manufacturing Resource Planning) which involved optimizing the entire plant production process. In the beginning, MRP-II was an extension of MRP to include shop floor and distribution management activities. Afterward, it did further extended to include areas like Finance, Human resources, Engineering, Project Management, etc. This gave birth to ERP (Enterprise Resource Planning) which covered the cross-functional coordination and integration in support of the production process.

    Role of ERP;

    The role of enterprise resource planning (ERP) does not match its name, we talk about their Evolution and Development. It is no longer related to planning and resources but is rather related to the enterprise aspect of the name. ERP attempts to unify all systems of departments together into a single, integrated software program based on a single database so that various departments can more easily share information and communicate with each other. The ERP includes the entire range of a company’s activities. It addresses both system requirements and technical aspects including client/server distributed architecture, RDBMS, object-oriented programming, etc.

    ERP systems are designed as an integrated set of software modules, all linked to a common database, handling a host of corporate functions such as finance, human resources, material management, sales, etc. Russell and Taylor (1995) suggested that the ERP of today differ from traditional MRP II system in the areas of relational database management, graphical user interface (GUI), fourth-generation languages (4GL), client-server architecture, and open system capabilities.

    Few differences;

    In addition, Kapp et al. (2001), stated that the difference between ERP and MRP II is the inclusion of a variety of manufacturing processes within ERP, in which modern ERP software can handle both discrete work orders and flow orders, JIT and MRP, EDI, and hand-entered orders. Wainewright (2002) also stated that MRP was used for tracking suppliers, work-in-progress, and the output of finished goods, while ERP was used for all types of business with additional functions including financials, payroll, and human resources management.

    Furthermore, Kremzar and Wallace (2001) also stated that ERP is far better than MRP II for three reasons:

    • ERP applies a single set of resource planning tools across the entire enterprise;
    • ERP provides real-time integration of sales, operating, and financial data, and;
    • Also, ERP connects resource planning approaches to the extended supply chain of customers and suppliers.

    Reasons;

    According to Koch(2002) the main reasons that companies take ERP to summarize below:

    • Because of its Integrated Financial Information i.e. to create a single version of the information which cannot question because all the members of the company use the same system.
    • The information integrates into one system rather than scattered on many different systems that cannot communicate which each other, so that the company can track orders and can coordinate with different related departments across many different locations at the same time.
    • It standardized and speed up the process using a single integrated system which can save time and increase productivity.
    • Reduces inventory by improving the observation ability of the order process inside the company.

    The popularity of ERP systems started to soar in 1994 when SAP, a German-based company, released its next-generation software known as R/3. In the following years, companies began to pour billions into ERP systems offered by SAP and its major competitors such as Oracle, Baan, J.D. Edwards, etc. Recently, ERP vendors add more modules and functions as “add-ons” to the core modules giving birth to the new term i.e. extended ERPs or ERP II. It is the enterprise system for the 21st century.

    ERP extensions include advanced plan;

    These ERP extensions include advanced planning and scheduling (APS), e-business solutions such as customer relationship management (CRM), and supply chain management (SCM). ERP II systems are about optimizing the supply chain through collaboration with trading partners. It crosses all sectors and segments of business, including service industries, government, and asset-based industries like mining. According to Zrimsek (2003), ERP II systems are web-based, open to integrate and interoperate with other systems, and built around modules or components that allow users to choose just the functionality they need.

    Difference between MRP and ERP;

    Here are a few differences between MRP and ERP.

    • MRP method material requirement making plans ERP means employer useful resource planning.
    • MRP is a solo software program, but ERP software can combine with different systems or software programs easily.
    • You can integrate the MRP software program with another software program, however, it’s miles tough. ERP systems combine with other software programs or modules without any problem.
    • MRP fits production industries, whereas ERP fits all kinds of industries, specifically huge companies due to the fact it could fulfill the requirements of all the departments of huge industries with its modules.
    • Types of MRP users are minimal because only one branch, this is, the manufacturing branch makes use of it. But types of ERP customers are most with prolonged customers in special departments.
    • ERP is extra steeply-price, while MRP is much less high-priced.
    Difference between open supply ERP and cloud ERP;

    What is the considerable difference between open source ERP and cloud ERP? The great distinction between open source ERP and cloud ERP is source code. In an open-supply ERP system, the supply code is publicly accessible. But in a cloud system, you have to pay to get the license of supply code.

    • In open source ERP, you could personalize the code, rewrite the code, and generate a new code version. But in cloud ERP, you cannot edit the code.
    • Open supply ERP suites industries with less required functionalities. Cloud ERP suits massive industries that require a huge style of features.
    • Open source ERP is entirely loose, and for cloud ERP, subscription prices are there.

    Future evolution or development of ERP systems;

    In evaluation with the history of ERP enterprise resource planning, its future is greater dynamic due to the development in a generation.

    • Due to the reduction of computation fee and statistics garage cost, gathering each minute element of business events are viable. In addition, it opens up the possibility of giant information analysis and superior reporting.
    • Based on previous statistics and industry benchmarks, gadget learning can assist in suggesting better business selections.
    • Automation of data-driven decision-making will take the front seat with the help of artificial intelligence.
    • For business transactions between multiple events, they may be organizing information integrity with the blockchain era.
    • To avoid frictions due to physical proximity, the virtual fact for better interactions.
    • Jobsite controls the use of five G-enabled smartphones.
    • Internet of Things or Factors (IoT) for higher facts alternate among human-to-machine and gadget-to-gadget.
    • The evolution and development in the era has constantly accompanied the records of ERP. It keeps boosting the commercial enterprise boom.

    With SaaS-based cloud ERP systems, increasingly companies can start using corporation aid planning answers of their commercial enterprise operations.

    7 Evolution or Development of ERP Enterprise Resource Planning Systems Image
    7 Evolution or Development of ERP Enterprise Resource Planning Systems Image!

    References; Enterprise resource planning. Retrieved from https://www.ukessays.com/essays/construction/enterprise-resource-planning.php?vref=1

  • Do you want to know What is the History of Production Management?

    Do you want to know What is the History of Production Management?

    Production Management has become an empirical applied science. History of Production Management; If we assess the past, covering a period of 200 years after Adam Smith, it can observe that total production capacity, as well as productivity, have expanded considerably. Undoubtedly, during this period, we have responded to the expansion of markets and large scale business units by using the concepts of division of labor and progressive mechanization in order to achieve economies of large scale production.

    Here are explain the Brief History of Production Management!

    Production Management; Introduction, Meaning, Function, and Scope. A production is an intentional act of producing something in an organized manner. It is the fabrication of a physical object through the use of men, material and some function which has some utility e.g. repair of an automobile, legal advice to a client, banks, hotels, transport companies, etc.

    The history of production management can study as under:

    Individual Efficiency:

    Fredric W. Taylor studied the simple output-to-time relationship for manual labor such as brick-laying. This formed the precursor of the present day “time- study”.

    Around the same time, Frank Gilberth and his learned wife Lillian Gilberth examined the motions of the limbs of the workers (such as the hands, legs, eyes, etc.) in performing the jobs, and tried to standardize these motions into certain categories and utilize the classification to arrive at standards for time required to perform a given job.

    This was the precursor to the present day “motion study”. Although to this day Gilberth’s classification of movements is using extensively, there have been various modifications and newer classifications.

    Collective Efficiency:

    So far the focus was on controlling the work-output of the manual laborer or the machine operator. The primary objective of production management was that of efficiency-efficiency of the individual operator.

    The aspects of collective efficiency came into being later, express through the efforts of scientists such as Gantt who shift the attention to scheduling of the operations (Even now, we use the Gantt Charts in operations scheduling).

    The considerations of efficiency in the use of materials followed later. It was almost 1930 before a basic inventory model was presented by F. W. Harris.

    Quality Control:

    After the progress of the application of scientific principles to the manufacturing aspects, thought progressed to control over the quality of the finished material itself. So far, the focus was on the quantitative aspects; now it shifted to the quality aspects. ‘Quality’, which is an important customer service objective, came to be recognized for scientific analysis.

    The analysis of productive systems, therefore, now also included the ‘effectiveness’ in addition to efficiency. In 1931, Walter Shewart came up with his theory regarding Control Charts for quality or what is known as ‘process control’. These charts suggested a simple graphical methodology to monitor the quality characteristics of the output and to control it by exercising control over the process.

    In 1935, H.F., Dodge, and H.G. Romig came up with the application of statistical principles to the acceptance and/or rejection of the consignments supplied by the suppliers to exercise control over the quality. This field, which has developed over the years, is now known as ‘acceptance sampling’.

    Production Management Introduction Meaning and Function
    Production Management; Introduction, Meaning, and Function. #Pixabay.

    Effectiveness as a Function of Internal Climate:

    In addition to effectiveness for the customer, the concept of effectiveness as a function of internal climate dawned on management scientists through the Hawthorne experiments which actually had the purpose of increasing the efficiency of the individual worker.

    These experiments show that worker efficiency went up when the intensity of illumination was gradually increased, and even when the intensity of illumination was gradually decreasing, the worker efficiency still kept rising.

    This puzzle could explain only through the angle of human psychology; the very fact that somebody cared, mattered much to the workers who gave increased output. Till now; it was Taylor’s theory of Elementalization of the task and thus the specialization in one task which found much use in Henry Ford’s Assembly Line.

    The advent of Operations Research Techniques:

    The application of scientific techniques in management really received a big boost during the World War II period when the field of Operations Research came into being.

    During this war, the Allied Force took the help of statisticians, scientists, engineers, etc. to analyze and answer, questions such as: What is the optimum way of mining the harbors of the areas occupied by the Japanese? What should be the optimum size of the fleet of the supply ships, taking into account the costs of loss due to enemy attack and the costs of employing the defense fleet?

    Such research about the military operations was termed as Operations Research. After World War II, this field was further investigated and developed by academic institutions; and today, it has become one of the very important fields of management theory.

    Various techniques such as Linear Programming, Mathematical Programming, Game Theory, Queuing Theory, etc. developed by people such as George Dantzig. A. Charnes, W. W. Cooper, etc. have become indispensable tools for management decision-making today.

    The Computer Era:

    After the breakthrough made by Operations Research, another marvel came into being the Computer. Around 1955, IBM developed the digital computer and made it available later on a large-scale basis.

    This made possible the complex and repeated computations involved in various Operations Research and other Management Science techniques. And, definitely added to the spread of the use of Management Science concepts and techniques in all fields of the decision- making.

    Case Study is explained Dell Swot Analysis
    Case Study is explained Dell Swot Analysis, #Pixabay.

    The Production and Operations Management Scenario Today.

    More importantly, the long experience of industrial life, the growth of technology and the rapidly growing availability of its benefits. Have all been changing the value systems all over the world. The concepts of ‘quality of life’, whether expressed explicitly or otherwise, have gained solid ground. The demand for ‘service’ or the ‘state’ utility is fast catching up with the demand for ‘form’ utility.

    Services are becoming as important, if not more, as the availability of physical products. The demand for ‘variety’ in products and services is on the increase. The concepts of ‘customer’ and ‘customer orientation’ are very vital today, as also the definition of the word ‘customer’ itself. The producing workers themselves are a part of the ‘customers’. There is great pressure everywhere to enhance the quality of life in general.

    If in the developed countries there is an increased demand for ‘flexi-time’ (flexible times of working). In India, we have already witnessed the shortening of the traditional six-day week to a five-day week in even traditional organizations such as the Central Government and State Governments. (Of course, the total time of working has remained the same.) In addition to all this, there is the increasing complexity of the space-age economies. The socio-techno-economic scene and the problem of depleting resources.

    Such a complex scenario needs freedom from compartmentalized thinking and integrated consideration of the various factors. That impinges on the production and operations management system. It needs to introduce fresh variables, e.g. that of safety in the external and internal environment and an added emphasis on maintenance. These are the challenges of the production and operations management discipline.

    Do you want to know What is the History of Production Management
    Do you want to know What is the History of Production Management? Coal Production, #Pixabay.

    Production Administration:

    Production is a succession of work elements applied to natural materials with the purpose of transforming these into desired goods and services for the satisfaction of human wants. Thus modem production phenomenon is an evolution and production administration deals with planning and control of various operations and components associated with the production process. However, there are a number of definitions given by different experts of Production administration according to their own experiences.

    The concept can explain by the following definitions:

    According to Frederick W. Taylor, father of scientific management,

    “Functional management consists of division of management work in such a way that every person below the rank of the assistant superintendent has as few responsibilities as possible. If possible the work of each man should be confined to perform a single leading function.”

    The various departments of Production Administration can list as production engineering, production planning, and production control.

  • Group Technology: Meaning, Definition, Advantages, and Limitations

    Group Technology: Meaning, Definition, Advantages, and Limitations

    What does mean Group Technology? Group technology or GT takes advantage of the similarities of parts and machines in a manufacturing system. In this paper, the classification and clustering approaches to group technology in manufacturing systems are discussed. The mathematical programming formulations for the clustering problem are presented. GT is the important technology among the others and it will play a major role in the factory of the future. So, what is the topic we are going to discuss; Group Technology: Meaning, Definition, Advantages, and Limitations.

    Here are explained; What is the Group Technology? first Meaning, Definition, Advantages, and finally Limitations.

    Meaning of Group technology: GT is a concept that is currently attracting a lot of attention from the manufacturing community. GT offers a number of ways to improve productivity in batch manufacturing. The essence of GT is to capitalize on similarities in recurring tasks. GT is, very simply, a philosophy to exploit similarities and achieve efficiencies grouping like problems.

    Group technology is an approach to organizing manufacture which can be applied in any industry (machining, welding, foundry, press work, forging, plastic molding, etc.) where small-batch variety production is used.

    Discuss of GT list;

    • What is the Group Technology?
    • Meaning of Group Technology.
    • Definition of Group Technology.
    • Advantages of Group Technology, and.
    • Limitations of Group Technology.

    Definition of Group technology:

    The basic approach enables all aspects of manufacturing, from design, through estimating and planning, to production, to be rationalized. It forms the basis for the development of computer-aided procedures and flexible automation. Group technology is a manufacturing philosophy or principle whose basic concept is to identify and bring together related or similar parts and processes, to take advantage of the similarities which exist, during all stages of design and manufacture.

    If parts can be classified into families, and machines arranged into groups, then the handling of parts during manufacture can be easily done by the robot. It must be understood that there exists a relationship between finished products and the parts from which they are made. While assemblies may bear little relation to each other, the sub-assemblies from which they are constructed will exhibit some like features. By exploiting the similarities which exist among such a population of parts, group technology sets out to reduce the time and cost of manufacture.

    “Group technology is the realization that many problems are similar and that, by grouping similar problems, a single solution can be found to a set of problems, thus saving time and effort.”

    Explain the Definition;

    The main theme is thus to identify somehow from the large variety of parts those families which require similar manufacturing operations. Cells are created to manufacture defined types and size ranges of parts. Groups of machines, chosen for each family are situated together in a group layout, in such a way that parts flow from one machine to the next in the sequence of operation.

    It is not necessary for every part to visit each machine, but the machines in a cell should ideally be capable of carrying out all the operations required in the family. It may be remembered that in a functional layout, all like machines are grouped at one place and thus a product has to move a lot of distance in a zig-zag manner. But in a cell layout, various machines are arranged so that product flows from one machine to the next in sequence.

    History of Group Technology:

    Prior to 1913, the era of Henry Ford and his Model T, all machining models were similar to our present job shop techniques with machines laid out usually in lines or blocks of similar machines. The work was loaded onto the machines usually by the manual progress control system. Ford introduced the assembly line and that, in turn, led to automated transfer machines. However, the majority of engineering do not produce items in the quantity that justify such methods and so the jobbing shop philosophy continued.

    GT is mainly coordination of normal good engineering practices. It is impossible to say who first practiced GT. There are reports of it having been used in Germany in the 1930s. In an international Conference held in Stockholm in 1947, the basic groups were explained by C.B.Nanthorst. In Italy, M. Patrignany was an early exponent of this technology. However, little of this appears to have been in English. First published work was from the USSR by S.P.Mitrofanov in 1959 and thereafter subsequent books here published by F.S.Denyanyuk and E.K. Ivanov.

    The first reported work on GT outside Russia was done by a French Forges et Ateliers de Construction Electriques de Jeurmont – and this was about in Machinery in 1962. Subsequently, several British companies conducted considerable work in this field. There have also been considerable studies done by various consultants in the Universities. The significant contribution by J.L.Burbidge in the 1960s led to GT as A total Manufacturing Philosophy.

    Advantages of Group Technology:

    According to Burbidge, the following are the advantages of introducing GT in manufacturing.

    • Short throughput times because machines are closed together.
    • Better quality because groups complete parts and the machines are closed together under one foreman.
    • Lower material handling costs because machines are closed together under one foreman.
    • Better accountability because of machines complete parts. The foreman can be made responsible for costs, quality, and completion by the due date.
    • Training for promotion since GT provides a line of succession because a group is a mini-department.
    • Automation GT is the first evolutionary step in automation.
    • Reduced set up time since similar parts brought together on the same.
    • Morale and job satisfaction since most workers prefer to work in groups.
    • The output is improved due to improved resource utili­sation.
    • Work in progress and finished stock levels are re­duced.
    • Simplified estimating, accounting and work man­agement.
    • Improved plant replacement decisions, and.
    • Improved job satisfaction, morale, and communica­tion.

    Studies were undertaken by N.L.Hyer indicates the following significant savings after implementing GT Snead prepared a summary matrix, listing the benefits listing benefits achieved for the various GT. What is the Definition of Production Management?

    Group Technology Meaning Definition Advantages and Limitations
    Group Technology: Meaning, Definition, Advantages, and Limitations. #Pixabay.

    Limitations of Group Technology:

    Group Technology is a great concept. But all good concepts do have their own limitations and need proper care in their applications for results to be realized in practice.

    The Disadvantages of Group Technology or cellular manufacturing may be as follows.

    • High Cost: The cost of implementation is generally high. This is because an outside consultant is often required since in-house expertise on GT is rarely available. It requires a long set up time and painful debugging.
    • Not Suitable for large Variety of Products: May not be suitable for a factory with a very large variety of products.
    • The entire production of the company cannot be put under the GT and hence GT will have to coexist with the conventional layouts.
    • Not suits all Applications: There are too many GT codes in used and there is no one GT code that suits all applications.
    • It is often difficult to conceive all the operations for a group of components being taken care of in the cell created for it.
    • The range of product mix in a plant may be under constant change in which case the GT cells may need a constant revision which is impractical.
    • The additional cost of implementation of this system.
    • The rate of change in product range and mix.
    • Difficulties with out-of-cell operations, and.
    • Coexistence with non-cellular systems.

    How to Uses of Group Technology in the Company for Production?

    Survey of product and use of group technology:

    Group technology technique can be conveniently followed using a classification system. In an assembly, a variety of parts exist. These varieties of parts can be-segregated in three broad areas, viz.

    • Standard and proprietary parts (like nuts, bolts, screws, keys, washers, etc.)
    • Similar parts (like shafts, gears, bearings, levers, etc.)
    • Product specific parts (like gearbox, bed, saddle, etc.)

    It may be noted that the group technology is not concerned with categories (i) and (iii) but relates to category (ii). The aim thus is to group the range of parts under the category (ii) in some way, for the purpose of manufacture. Several types of classification systems have been devised and one has to carefully consider the system based on his needs.

    An organization with a wide range of products needs a complex detailed system but the same is not good for the one dealing with a limited range. Provision should always be made for future likely growth and classification system chose must keep this requirement in view.

    Organizational suitability for Group Technology:

    The suitability of a firm for the introduction of GT depends on several factors. The survey of Willey and Dale give a tentative description of a company profile likely to achieve. The greatest benefits from GT, some of these are:

    • The company must be a relatively small organization with reasonably small machine tools, and manufacturing equipment.
    • The company should not be typified by either large or small component variety.
    • The batch sizes and the batch size range of products of the companies it is relatively small.

    Athersmith and Crookall Rajagopal and Smith Gupta Andand Grayson have suggested. Another way of finding out the suitability of GT for a batch production industry. Computer simulation has been used by the effect of the introduction of GT in the batch production. Industries based on the parameters such as throughput time. WIP inventory and plant utilization Further GT are considered a desirable stepping stone for establishing Just-In-Time production.

  • Capitalism: Meaning, Definition, Characteristics, Features, Merits, and Demerits

    Capitalism: Meaning, Definition, Characteristics, Features, Merits, and Demerits

    What does mean Capitalism? Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Capitalism is an economic system where private entities own the factors of production. The four factors are entrepreneurship, capital goods, natural resources, and labor. So, what is the topic we are going to discuss; Capitalism: Meaning, Definition, Characteristics, Features, Merits, and Demerits…Read in Hindi.

    Here are explained What is Capitalism? First Meaning, Definition, Characteristics, Features, Merits, and finally their Demerits.

    The owners of capital goods, natural resources, and entrepreneurship exercise control through companies. Capitalism is ‘A system of economic enterprise based on market exchange’. The Concise Oxford Dictionary of Sociology (1994) defines it as ‘a system of wage-labor and commodity production for sale, exchange, and profit, rather than for the immediate need of the producers’.

    ‘Capital refers to wealth or money used to invest in a market with the hope of achieving a profit’. It is an economic system in which the means of production are largely in private hands and the main incentive for economic activity is the accumu­lation of profits. From the perspective developed by Karl Marx, capitalism organizes around the concept of CAPITOL implying the ownership and control of the means of production by those who employ workers to produce goods and services in exchange for wages.

    Max Weber, on the other hand, considered market exchange as the defining characteristic of capitalism. In practice, capitalist systems vary in the degree to which private ownership and economic activity are regulated by the government. It has assumed various forms in indus­trial societies. In common parlance, these days, capitalism knows as a market economy. The goods sold and the prices they are sold at determines by the people who buy them and the people who sell them.

    In such a system, all people are free to buy, sell and make a profit if they can. This is why capitalism often calls a free market system. It gives freedom to entrepreneurs (of the opening industry), to the worker (of selling labor), to the trader (of buying and selling goods), and to the individual (of buying and consuming).

    Meaning of Capitalism:

    Under capitalism, all farms, factories and other means of production are the property of private individuals and firms. They are free to use them to make a profit. The desire to earn a profit is the sole consideration with the property owners in the use of their property. Under capitalism, everybody is free to take up any line of production he wishes and is free to enter into any contract to earn the profit.

    Definition of Capitalism:

    In the words of Prof. LOUCKS,

    “Capitalism is a system of economic organization featured by the private ownership and the use for private profit of man-made and nature-made capital.”

    Ferguson and Kreps have written that,

    “In its own pure form, free enterprise capitalism is a system in which privately owned and economic decision are privately made”.

    Prof. R. T. Bye has defined capitalism as,

    “That system of economic organization in which free enterprise, competition and private ownership of property generally prevail.”

    Capitalism from Mc Connell view is,

    “A free market or capitalist economy may be characterized as an automatic self-regulating system motivated by the self-interest of individuals and regulated by competition.”

    A capitalist economy works through the Price System.

    Prices perform two functions:

    • A rationing function,
    • An incentive function.

    Prices ration out the available goods and services among buyers according to the amounts each buyer wants and can pay for others whose desire is less urgent or whose income is smaller will receive smaller qualities. Prices also provide an incentive for firms to produce more. Where demand is high prices will rise encouraging firms already in the industry to produce more and drawing new firms into the industry. Where demand is falling, prices will normally fall too. Firms will reduce their production, releasing resources for use in other industries where there is a demand for them. Firms are buyers as well as sellers.

    They buy materials and supplies from other firms behaving exactly as private individuals do in deciding what to buy and how much to buy. If a new machine promises to reduce production costs or if a certain material can substitute for another at saving, the firm will buy low-cost resources to compete with other firms. The economy is tied together by millions of those interactions linking producers with one another and with consumers, linking one product with other products and linking every market with other markets. The point is that all the economic units in an economy inter-relates.

    The Characteristics of Capitalism:

    Capitalism involves new attitudes and institutions—entrepreneurs engaged in the sustained, systematic pursuit of profit, the market acted as the key mechanism of productive life, and goods, services, and labor become commodities whose use was determined by rational calculation.

    The main characteristics of the capitalistic organization in its ‘pure’ form may briefly describe as under:

    • Private ownership and control of the economic instruments of production, i.e., CAPITOL.
    • The gearing of economic activity to making profits—maximization of profits.
    • Free market economy—a market framework that regulates this activity.
    • The appropriation of profits by the owners of capital. It is the income derived by the capitalist from selling in the market.
    • The provision of wage labor, which creates by converting labor-power into a commodity. It is this process that produces the working class and inherently hostile relationships in capitalist society workers (proletariat) versus capitalist, employee versus the employer.
    • Business firms privately own and compete with each other to sell their goods to consumers.
    • Commercialization of agricultural and industrial production.
    • Development of new economic groups and expanding across the globe.
    • Capital accumulation by the capitalists as an obligatory activity, for unless there is capital to invest, the system will fail. Profits produce capital when they are re-invested.
    • Investment and growth are accomplished by using accumulated capital to expand an enterprise or create a new one. Capitalism, thus, is an economic system that requires constant investment and constant economic growth.

    What has impressed students of modernity is the huge and largely unreg­ulated dominance of capitalist enterprise across political and religious control with it’s related monetary and market networks.

    The Features of Capitalism:

    What a capitalistic economy is a can knows through its main features. These derive from the way certain functions perform and the main decisions of the economy execute.

    These may be stated as under:

    Private Property and Freedom of ownership:

    A capitalist economy is always having the institution of private property. An individual can accumulate property and use it according to his will. The government protects the right to property. After the death of every person, his property goes to his successors.

    The right of Private Property:

    The most important feature of capitalism is the existence of private property and the system of inheritance. Everybody has a right to acquire private property to keep it and after his death, to pass it on to his heirs.

    Price Mechanism:

    This type of economy has a freely working price mechanism to guide consumers. Price mechanism means the free working of the supply and demand forces without any intervention. Producers are also helped by the price mechanism in deciding what to produce, how much to produce, when to produce and where to produce.

    This mechanism brings about the adjustment of supply to demand. All economic processes of consumption, production, exchange, distribution, saving and investment work according to its directions. Therefore, Adam Smith has called the price mechanism as the “Invisible Hand” which operates the capitalist.

    Profit Motive:

    In this economy, the desire to earn a profit is the most important inducement for economic activity. All entrepreneurs try to start those industries or occupations in which they hope to earn the highest profit. Such industries expect to go under a loss abandoned. Profit is such an inducement that the entrepreneur prepares to undertake high risk. Therefore, it can say that the Profit Motive is the SOUL of the capitalist economy.

    Competition and Co-operation Goes Side by Side:

    A capitalist economy characterizes by free competition because entrepreneurs compete for getting the highest profit. On the other side buyers also compete for purchasing goods and services. Workers compete among themselves as well as with machines for taking up a particular work. To produce goods of the required type and quality workers and machines are made to co-operate so that the production line runs according to schedule. In this way, competition and co-operation go side by side.

    Role of the Entrepreneur:

    The entrepreneurial class is the foundation of the capitalist economy. The whole of the economic structure of the capitalist economy base on this class. Entrepreneurs play the role of leaders in different fields of production. The presence of good entrepreneurs is a must for healthy competition. Entrepreneurs are the main sources of the dynamism of the capitalist economy.

    Main Role of Joint Stock Companies:

    In a joint-stock company, business carries on by a board of directors which democratically elects by the shareholders of the company at its general body meeting. Because of this, it has said that Joint-stock Companies “Democratic Capitalism”. However, the real functioning of the corporate sector is not democratic because there is a one-share-one vote election. Since big business houses own a majority of the shares of a company, they manage to get re-elected and the company is run as if it were their family business.

    Freedom of Enterprise, Occupation, and Control:

    Every person is free to start any enterprise of his choice. People can follow the occupations of their ability and taste. Moreover, there is the freedom of entering into the contract. Employers may contract with trade unions, suppliers with a firm and one firm with another.

    Consumer’s Sovereignty:

    In a capitalist economy, a consumer compares to a sovereign king. The whole production frameworks according to his directions. Consumer’s tastes govern the whole production line because entrepreneurs have to sell their products. If a particular type of production is to the liking of consumers, the producer gets high profits.

    It arises Class Conflict:

    From this class-conflict arises. The society is normally divided into two classes the “haves” and the “have-not’s”, which are constantly at war with each other. The conflict between labor and capital is found in almost all capitalistic countries and there seems to be no neat solution to this problem. It seems that this class-conflict is inherent in capitalism.

    Historical Development of Capitalism:

    Historically, modem capitalism has mainly developed and expanded in Great Britain and the United States. Early industrial capitalism in Great Britain and the United States in the 19th century is regarded as the classical model that approximates the pure form most closely. Modern (industrial) capitalism differs fundamentally from pre-existing production systems because it involves the constant expansion of production and ever-increasing accumu­lation of wealth.

    In traditional production systems, levels of production were fairly static since they were geared to habitual, customary needs. Capitalism promotes the constant revision of the technology of production. The impact of science and technology stretches beyond the economic sphere. Scientific and technological development, such as radio, television, computers and other electronic media, have also come to shape how we live, how we think and feel about the world. In the face of these developments, traditional debates between the advocates of free-market capitalism, and state socialism have become more or less outdated or are becoming outdated.

    As we have moved into a ‘postmodern’ world (information society) from the 18th and 19th-century modern society, some philosophers like Francis Fukuyama predicated about the ‘end of history’—meaning that there are no future alternatives to capitalism and liberal democracy. Capitalism has won in its long struggle with socialism, contrary to Marx’s prediction and liberal democracy now stands unchallenged.

    Capitalism Meaning Definition Characteristics Features Merits and Demerits
    Capitalism: Meaning, Definition, Characteristics, Features, Merits, and Demerits.

    The advantages or Merits of Capitalism:

    The main merits and advantages of capitalism are as follows:

    Production According to the Needs and Wishes of Consumers: 

    In a free-market economy, consumer needs and wishes are the uppermost in the minds of the producers. They try to produce goods according to the tastes and liking of the consumers. This leads to the maximum satisfaction of the consumers as obtained from his expenditure on the needed goods.

    Higher Rate of Capital Formation and More Economic Growth: 

    People under capitalism have the right to hold property and pass it on an inheritance to their heirs and successors. Owing to this right, people save a part of their income so that it can invest to earn more income and leave the larger property for their heirs. The rate of Capital formation increases when savings invest. This accelerates economic growth.

    Efficient Production of Goods and Services: 

    Due to the competition, every entrepreneur tries to produce goods at the lowest cost and of a durable nature. Entrepreneurs also try to find out superior techniques of producing the goods consumers get the highest quality goods at the least possible cost because the producers are always busy in making their production methods more and more efficient.

    Varieties of Consumer Goods: 

    Competition is not only in price but also in the shape design, colors, and packing of products. Consumers, therefore, get a good deal of variety of the same product. They need not give limited choices. It says that variety is the spice of life. The free market economy offers a variety of consumer goods.

    In Capitalism there is no Need for Inducement or Punishment for Good and Bad Production:

    A capitalist economy encourages efficient producers. The able an entrepreneur is, the higher is the profit he obtains. There is no need to provide any kind of inducement. The price mechanism punishes the inefficient and rewards the efficient on its own.

    It Encourages Entrepreneurs to Take Risks and Adopt Bold Policies: 

    Because taking the risk they can make higher profits. Higher the risk, the greater the profit. They also make innovations to cut their costs and maximize their profits. Hence capitalism brings about great technological progress in the country.

    The disadvantages or Demerits of Capitalism:

    The capitalist economy has been showing signs of stress and strain at different times. Some have called for a radical reform of the free-market economy. Others like Marx have considered the capitalist economy to be contradictory in itself. They have predicted the ultimate doom of the capitalist economy after a series of deepening crisis.

    The main demerits or disadvantages of the capitalist economy are as follows:

    Inequality of Distribution of Wealth and Income: 

    The system of private property acts as a means of increasing inequalities of income among different classes. Money begets money. Those who have wealth can obtain resources and start big enterprises. The propertyless classes have only their labor to offer. Profits and rents fewer classes have only their labor to offer. Profits and rents are high.

    Wages are much lower. Thus the property holders obtain a major share of national income. The common masses have their wages to depend upon. Although their number is overwhelming their share of income is relatively much lower.

    Class Struggle as Inevitable in Capitalist Economy: 

    Some critics of capitalism consider class struggle as inevitable in a capitalist economy. Marxists point out that there are two main classes into which the capitalist society divide. The ‘haves’ in which the rich property class owns the means of production. The “have not’s” which constitute the wage-earning people have no property.

    The ‘haves’ are few. The ‘have not’s are in the majority. There is a tendency on the part of the capitalist class to exploit the wage-earners. As a result, there is a conflict between the employers and the employees which leads to labor unrest. Strikes, lockouts and other points of tension. All these have a very bad effect on production and employment.

    Social Costs are Very High:

    A capitalist economy industrializes and develops but the social costs of the same are very heavy. Factory owners running after private profit do not care for the people affected by their production. The environment pollutes because factory wastes not properly dispose of. Housing for factory labor very rarely provides the result that slums grow around big cities.

    Instability of the Capital Economy: 

    A capitalist economy is inherently unstable. There is a recurring business cycle. Sometimes there is a slump in economic activity. Prices fall, factories close down, workers render un-employe. At other times the business is brisk, prices rise, fast, there is a good deal of speculative activity. These alternating periods of recession and boom lead to a good deal of wastage of resources.

    Unemployment and Under-employment: 

    A capitalist economy has always some unemployment because the market mechanism is slow to adjust to the changing conditions. Business fluctuations also result in a large part of the labor force going unemployed during depressions. Not only this, workers are not able to get full-time employment except under boom conditions.

    Working Class does not have Adequate Social Security: 

    In a capitalist economy, the working class does not have adequate social security, commodity, the factory owners do not provide for any pension, accident benefits or relief to the families of those who die in employment. As a result, widows, and children have to undergo a good deal of suffering. Governments are not in a position to provide for adequate social security in overpopulated less developed countries.

  • Explain, What is SEBI (Securities and Exchange Board of India)?

    Explain, What is SEBI (Securities and Exchange Board of India)?

    Securities and Exchange Board of India (SEBI) is the nodal agency to regulate the capital market and other related issues in India. It was established in 1988 as an administrative body and was given statutory recognition in January 1992 under the SEBI Act 1992 which came into force on January 30. The Act charged the SEBI, the first national regulatory body in India with comprehensive statutory powers over practically all aspects of capital market operations, “to protect the interests of the investors and to promote the development of, and to regulate the securities markets by such measures as it thinks fit.” Also learned, NSE, Explain, What is SEBI (Securities and Exchange Board of India)?

    Learn, Explain, What is SEBI (Securities and Exchange Board of India)?

    Explain What is SEBI (Securities and Exchange Board of India) - ilearnlot

    SEBI has been vested most of the functions and powers under the Securities Contract Regulation (SCR) Act, which brought stock exchanges, their members, as well as contracts in securities which could be traded under the regulations of the Ministry of Finance. It has also been delegated certain powers under the Companies Act.

    In addition to registering and regulating intermediaries, service providers, mutual funds, collective investment schemes, venture capital funds and takeovers, SEBI is also vested with the power to issue directives to any person(s) related to the securities market or to companies in areas of issue of capital, transfer of securities and disclosures. It also has powers to inspect books and records, suspend registered entities and cancel the registration.

    Before the establishment of Securities and Exchange Board of India (SEBI), the principal legislation governing the securities market in India was the capital issues control act 1956 and the securities contract act 1956. The regulatory powers were vested with the controller of capital issues for the primary market and the stock exchange division for the secondary market in the Ministry of Finance, Government of India.

    SEBI has been constituted on the lines of Securities and Exchange Commission of USA. SEBI is consisting of the Chairman and 8 Members (one member representing the Reserve Bank of India, two members from the officials of Central Government and five other public representatives to be appointed by the Central Government from different fields). SEBI has been playing an active role in the Indian Capital Market to achieve the objectives enshrined in the SEBI Act, 1992.

    The major objective of the Securities and Exchange Board of India (SEBI) may be summarized as follows:
    • To provide a degree of protection to the investors and safeguard their rights and to ensure that there is a steady flow of funds in the market.
    • To promote fair dealings by the issuer of securities and ensure a market where they can raise funds at a relatively low cost.
    • To regulate and develop a code of conduct for the financial intermediaries and to make them competitive and professional.
    • To provide for the matters connecting with or incidental to the above.
    Section 11 of the SEBI Act deals with the powers and functions of the SEBI as follows:

    It shall be the duty of Board to protect the interests of the investors in securities and to promote the development of and to regulate the securities market by measures as deemed fit.

    To achieve the above, the Board may undertake the following measures:
    • Regulating the business in stock exchanges;
    • Registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, merchant bankers, underwriters, portfolio managers;
    • Registering and regulating the working of the depositories, participants, credit rating agencies;
    • Registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds;
    • Prohibiting fraudulent and unfair trade practices relating to securities markets;
    • Promoting investors education and training of intermediaries of securities markets;
    • Prohibiting insider trading in securities;
    • Regulating substantial acquisition of shares and take-over of companies; and
    • Calling for information from undertaking, inspection, concluding inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market intermediaries and self-regulatory organizations in the securities market.

    In order to attain these objectives, SEBI has issued Guidelines, Rules, and Regulations from time to time. The most important of these is the “SEBI (Disclosure and Investor Protection) Guidelines,2000”. The provisions of these Guidelines,2000 are aimed to protect the interest of the investors in securities.

    The Guidelines, 2000 deals with the following areas :
    • Eligibility norms for companies issuing securities,
    • Pricing of securities by companies,
    • Promoters contribution and lock-in requirements,
    • Pre-issue obligations of the merchant bankers,
    • Contents of the prospectus/abridged prospectus letter of offer,
    • Post issue obligation, of merchant bankers,
    • Green shoe option,
    • Guidelines on advertisements,
    • Guidelines for issue of debt instruments,
    • Guidelines for the book building process,
    • Guidelines on public offer through the stock exchange on-Line system,
    • Guidelines for issue of capital by financial institutions,
    • Guidelines for preferential issues of securities,
    • Guidelines for bonus issues,
    • Other operational and miscellaneous matters.

    In order to regulate and control and to provide a code of conduct for the merchant bankers, other participants of the capital market, and other matters relating to the trading of securities, Securities, and Exchange Board of India (SEBI) has issued several Rules and Regulations.

    These are related to Bankers to the issues, Buyback of securities, Collective Investments Schemes, Delisting of securities, Depositors, Derivatives, Employee stock options, Foreign Institutional Investors(FII’s), Insider Trading, Lead Manager, Market Makers, Merchant Bankers, Mutual Funds, Ombudsman, Portfolio Manager, Registrars and Share Transfer Agents, Securities Lending Scheme, Sweat Equity, Stock Brokers and sub-brokers, Takeover Regulations, Transfer of Shares, Underwriters, Unfair Trade Practices, venture capital Funds, Annual Reports, etc.

  • Explain, What is NSE (National Stock Exchange)?

    Explain, What is NSE (National Stock Exchange)?

    Learn, Explain, What is NSE (National Stock Exchange)?

    The National Stock Exchange of India Limited (NSE) was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices, and procedures. Also learned, Corporate Planning, Explain, What is NSE (National Stock Exchange)?

    Explain What is NSE (National Stock Exchange) - ilearnlot
    Image: #NSE (National Stock Exchange).

    The National Stock Exchange of India Limited has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices, and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance, screen-based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology.

    The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

    The National Stock Exchange of India Limited’s mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the following objectives:
    • Establishing a nation-wide trading facility for equities, debt instruments, and hybrids,
    • Ensuring equal access to investors all over the country through an appropriate communication network,
    • Providing a fair, efficient and transparent securities market to investors using electronic trading systems,
    • Enabling shorter settlement cycles and book-entry settlements systems, and
    • Meeting the current international standards of securities markets.

    The standards set by The National Stock Exchange of India Limited in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It’s that force which is guiding the industry towards new horizons and greater opportunities.

    Till the advent of The National Stock Exchange of India Limited, an investor wanting to transact in a security not traded on the nearest exchange had to route orders through a series of correspondent brokers to the appropriate exchange. This resulted in a great deal of uncertainty and high transaction costs. One of the objectives of NSE was to provide a nationwide trading facility and to enable investors spread all over the country to have an equal access to NSE.

    NSE has made it possible for an investor to access the same market and order book, irrespective of location, at the same price and at the same cost. NSE uses sophisticated telecommunication technology through which members can trade remotely from their offices located in any part of the country. NSE trading terminals are present in 363 cities and towns all over India.

    The National Stock Exchange of India Limited has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries NSE is one of the first demutualized stock exchanges in the country, where the ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policymakers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country.

    From day one, NSE has adopted the form of a demutualized exchange – the ownership, management, and trading is in the hands of three different sets of people. NSE is owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework.

    The NSE model, however, does not preclude, but in fact accommodates involvement, support, and contribution of trading members in a variety of ways. Its Board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full-time executive of the Exchange.

    While the Board deals with broad policy issues, decisions relating to market operations are delegated by the Board to various committees constituted by it. Such committees include representatives from trading members, professionals, the public and the management. The day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.

    The National Stock Exchange replaced open outcry system, i.e. floor trading with the screen based automated system. Earlier, the price information can be accessed only by few people but now information can be seen by the people even in a remote location. The paper-based settlement system was replaced by electronic screen-based system and settlement of trade transactions was done on time. NSE also created National Securities Depository Limited (NSDL) which permitted investors to hold and manage their shares and bonds electronically through a demat account.

    An investor can hold and trade in even one share. Now, the physical handling of securities eliminated so the chances of damage or misplacing of securities reduced to the minimum and to hold the equities become more convenient. The National Security Depository Limited’s electronically security handling, convenience, transparency, low transaction prices and efficiency in trade which is affected by NSE, has enhanced the reach of Indian stock market to domestic as well as international investors.

    #Promoters of National Stock Exchange of India (NSE):

    Following financial institutions were the promoters of National Stock Exchange :

    • Industrial Development Bank of India(IDBI).
    • Industrial Finance Corporation of India(IFCI).
    • Industrial Credit and Investment Corporation of India(ICICI).
    • Life Insurance Corporation of India(LIC).
    • General Insurance Corporation of India(GIC).
    • SBI Capital Markets Limited.
    • Stock Holding Corporation of India Limited.
    • Infrastructure Leasing and Financial Services Limited.

    #Market Segments of National Stock Exchange of India (NSE):

    The National Stock Exchange of India Limited was intended to establish a viable and vibrant debt market which was in an underdeveloped stage. Now, it provides the traditional retail market for securities and also operates a Wholesale Debt Market (which may be termed as money market segment).

    The NSE consists of three mutually exclusive segments :

    1. Wholesale debt market segment, started operations in June 1994.
    2. The capital market segment started operations in November 1994, and
    3. Derivatives (Futures and Options) Trading, started operations in June 2000.

    The Wholesale Debt Market segment of The National Stock Exchange of India Limited is a facility for institutions including subsidiaries of banks engaged in financial services and corporate bodies including companies to enter into high value transactions in instruments such as Public Sector Undertakings (PSUs) bonds, Treasury Bills (T-BilIs), Governments Securities, Units of UTI, Commercial Papers (CPs), Certificate of Deposits (CDs), Floating yields bonds, etc. Members of the Wholesale Debt Market segment can trade on their own behalf and on behalf of their clients. NSE trading system facilitates making two ways quotes in a highly flexible manner.

    The Capital Market segment covers trading in equities and retail trade in the convertible or non-convertible debentures and hybrids. This particular segment comprises the securities of medium and large companies with nation-wide investors base. These will also include securities which are being traded on their stock exchanges. By virtue of equal access nationwide, such securities can be traded at the same price from any part of the country. This provides good trading and investment opportunities, increases the volume of the trade and increases the liquidity considerably.

    Besides the capital market segment, The National Stock Exchange of India Limited also provides the opportunity to the investors to deal in the derivative products, i.e., futures and options. At present, NSE provides facility to trade in Nifty Futures, Nifty Options, Individual Stock Options and Individual Stock Futures.