Leadership Styles Assignment Example | Topics and Well Written Essays - 750 words

Leadership Styles - Assignment Example The leadership style is based on the situations and challenges faced by the organization and requirements of people who are involved in the group. That means a leader must be flexible in his style. For instance, in the event of a crisis in an organization, it is most likely that an authoritarian leadership will be beneficial. If a decision is very hard and complex like development plans, handling risks, etc we need different ideas, experiences, and different areas of expertise and inputs from everybody. In such cases, democratic leadership style will be beneficial. If increasing the motivation and encouragement of the creativity of workers is important, a leader should adopt laissez-faire leadership style. In short, a leader must know which style he has to adopt to deal with the situation. Whatever it is the main objective of the leader and the group is the profit maximization of the company. For this, either the leader has to change his own approach or he must have the ability to ch ange the situations to suit him. Your leadership style; advantages and disadvantages I fall in the category of democratic leadership style. Democratic leadership style is the most suitable leadership style in today’s business environment. The advantages and challenges of this leadership style in today’s business environment are described as below:- Advantages 1. Today’s business environment demands higher contribution in terms of innovation creativity. Innovation and creativity does not always come from a single person. It might require sharing of ideas. Therefore, a democratic leadership style helps to gather ideas and opinions from a group of people. 2. As competition is higher, financial rewards are not the only reason behind an employee’s commitment to an organization. An important role is played by motivation and job satisfaction. A democratic leadership style will help to improve the motivation of employees are they feel that their opinions are bein g accepted. 3. Achieving the common goal as an entire group is very much important for an

Prospects and Perception of Islamic Life Insurance

Prospects and Perception of Islamic Life Insurance Chapter 1 Introduction Background to study: Insurance is a financial industry which has surfaced as a colossal industry for both in Muslim and Non Muslin world. In Conventional Insurance there are many elements, activities and procedures which are considered unethical, unlawful and unislamic by majority of Islamic scholars. Elements such as uncertainty, gambling and excessive interest are the main culprits. (Khair Bakhsh, 2009). For the satisfaction of Muslim concern, market experts and Islamic scholars introduced an insurance with the name of Takaful.The increase in demand of Takaful system and the presence of large markets for its products is compelling the entitled authorities to introduce it in Pakistan as soon as possible. Problem Statement: What are the prospects and perception of Islamic life insurance in Peshawar? Purpose of the study: To review why convention system is prohibited in Islam To compare Islamic Life Insurance (Takaful) with Contemporary Life Insurance. To find out justification of an Islamic Life Insurance (Takaful) Analysis of prospects of Takaful in Peshawar City. Methodology Applied Research: In this research I will be studying existing Islamic life insurance system and adding no new finds to body of knowledge. Scheme of study Type of investigation: This is a descriptive study: The format, which will be followed in this study, is to find out justification of an Islamic Life Insurance and what are its prospects in Peshawar. Cross-sectional Data: In this research I will observe and study secondary data regarding Islamic Life Insurance and Conventional life Insurance system. Unit of Study: My research unit of analysis will be organization Study Settings: Field Study: Study will be done in natural settings in which variables will not be controlled. Researchers interference: In this study researchers interference will be minimal and has no direct interference with the Islamic life insurance organizations because I am not allowed to interfere in the organizations. Methodology: The methods I will be using in the report are both Primary and Secondary data collection. Secondary Data: For this research I will use secondary data. Sources: Internet Leading newspaper articles Books related to Islamic life Insurance (Takaful) Research instruments: The instruments which will be used in my research to collect primary data are: Observations Questionnaires. Sample Size: I will be distributing questionnaires. Sampling Techniques: The sampling technique will be simple random sampling that will help in reducing the biasness factor in the research. Limitations: The scope of my research will be limited to students of universities in Peshawar because of time and other limited resources. Scheme of the report: The report will consist of the following parts. Introduction Literature Review Findings Analysis Conclusion and Recommendations Literature survey Meaning of Takaful: Takaful is a form of mutual assistance (Taawun) strengthened by aiding the ones who are in problems and deserve to be helped.(Dr.Masum) (2009). According to him, Islamic Scholars have begun to accept and conclude to the viewpoint that Takaful is according to Shariah principles. Numerous Islamic conferences are being held and Shariah Councils are emphasizing by creating awareness amongst the Muslims that Takaful operations are free from unIslamic elements thus the development of Takaful in the market is to cater to the needs of Muslim by providing them products and services in accordance to Islam. â€Å"Overtime, greater understanding on the concept of Islamic Insurance has emerged as the concept of Takaful, based on the contract of Tabarru (donation) and Mudarabah profit sharing.† â€Å"Takaful is an alternative form of Conventional Insurance based on the concept of trusteeship and cooperation inspired by the beliefs of the followers of Islamic teachings. Murtaza Ali (2007). It can be concluded that takaful is an Islamic way of dealing with uncertainties via mutual assistance and it is social scheme developed on the principals of brotherhood, solidarity and mutual assistance. Takaful is rooted from an Arabic word Kafal, which means that ones needs should be taken care of. According to this scheme participants jointly agree to bind themselves against damages caused by hazards. â€Å"Takaful is a legally binding agreement between all the participants of the scheme to pay any of the members who suffers a loss as specified in the Takaful certificate†. (Dr.Masum)(2009). Muhaimin Iqbal (2005), Abdul Rahim, Wahab and Kabir Hassan explain Takaful as a scheme that is derived from the concept of Taawun and the concept of Takaful is similar to Conventional mutual risk sharing. Takaful has a fixed maturity period and is considered long term saving tool. Apart from giving benefits of return it also provides a mutual financial assistance among participants. â€Å"A Programme that pools efforts to help the needy in times of need due to immediate deaths or mishaps resulting in personal injury or disablement†. (Bank Negara Malaysia) Scholars like Dr.Yusof Qaradawi (July 2007) state â€Å"Our observation that the modern current practices are objectable Islamic ally does not mean that Islam is against Insurance: it only opposes the means and methods.† According to the author the Islamic insurance companies will use the contract of donations and provide compensation and the operation of the company shall not get engaged in any unislamic elements. HISTORICAL PERSPECTIVE; â€Å"Muslims were involved in Marine activities in the Mediterranean and Indian Ocean from the seventh century on†. Chaim-Vardit (2009).† â€Å"The rough model of Takaful was practiced by Arabian tribes, holding to the principal of pooled resources to help the needy on the voluntary basis† Masum Billah (2001). Tamim become the first insurance term in Arabic only in 20th century and it is believed that Ibn Abidin, a Hanafite Jurist who died in 1836,is the First Muslim to coin name Insurance Sukara (security) influenced by Italian term Siguare and Turkish Sigorta. Chaim-Vardit (2009). Merchants of Mecca used to form a group of Mutual funds with a purpose to help the victims or survivors of natural hazards during their commercial ventures into Syria, Iraq and other countries. Such a practice was supported and even contributions were made by Prophet Muhammad (P.B.U.H) while trading with the capital of Hazrat Khadija. Aziz-Abdul (2005) â€Å"The period lasting from the fall of Rome until the Dawn of Islam was the darkest, most corrupt and unsettled period in the known history to man. Hence the Dawn of Islam removed darkness from the face of life and brought the environment of security and stability to the areas which came under the influence of Islam.† According to Chaim-Vardit, Shariah recognizes several transactions and institutions which function in a way similar to certain type of Insurance. The typical ones are: Daman (guarantee) is synonymous to â€Å"Kafala† is used with risk or responsibility that one bears with regard to property of which one enjoys profit. Daman Khatar al Tariq (guarantee against travel hazards). In this type of transaction, the person himself wishes to be compensated for a future possible loss. Wala al Muwalat-This type of transaction was prohibited by Prophet Muhammad (P.B.U.H). The problem was this type of transaction established new ties, as strong as blood ties, outside the family was unbearable. Diya (blood money)-compensation to victim or victims family for unintentional killing or bodily injury. Mudaraba-is not mentioned in Quran and there is much doubt whether it is mentioned in Hadith Zakat-means growth and purity. It is often mentioned as equal to modern social Insurance and there have been modern attempts made in Islamic states as Saudi Arabia and Pakistan to apply Zakat. The institution of Waaf (endowment)-the property endowed as Waaf was intended to support the poor, staff of mosques, hospitals, to maintain city facilities and the two holy cities. Jizya-tax levied on non-Muslims residing in Islamic State and provides then with security for their lives and property. Holy Prophet (P.B.U.H) emphasised that a Muslim should protect itself from hazards and risks via transfering the risk through Takaful Model.The life of a muslim is Controlled and destiny by Allah (S.A.T) but it does not mean that a Muslim cannot protect itself but indeed a Muslim in Islam should gurad itself from misfortunes, hazards, risks and uncertanities.Dr.Masum (2001). Types of Takaful Structures: â€Å"There is no single â€Å"best† model that exists for takaful. Shariah scholars worldwide concur on fundamental components that characterize a takaful scheme, yet in their judicial opinions (fatwas), operational differences are tolerated as long as they do not contradict essential religious tenets.† Ms Shakun Ashoka Raj (2007). There has been a tremendous research done on the takaful models which includes work of prominent authors like Dr.Masum (2001), Hassan, Rahim and Wahab (May June 2007). According to Hassan, Rahim and Wahab (2007) for the Mudarabah contract to be allowed and carried in Islam requires a number of elements to be present: The capital provider (participant); The entrepreneur (takaful operator); Capital an appropriate activity; Profit and loss sharing and offer and acceptance. In the mudaraba contract, the two parties know as provider (rab ul maal) and the entrepreneur or takaful operator (mudarib) operates on a joint venture basis. †An investment on a Mudarabah basis of 100 should at the end of the period give more then 100 to be termed as profit and for the operators to share that.† The other takaful model is known as agency or wakala model. On the basis of this principal, a person delegates his right or business to the other people/person to act as his agent or wakil. The agent is responsible to contribute his knowledge, skills, and abilities in performing the tasks assigned to him in the best manner. According to Dr.Masum (2001) in the Wakala model the salary of the agent who rendered the services is subtracted against the fool of funds. The net funds will be used for the purpose of investment and profits will be distributed accordingly. Similarly author Rahim, Wahab and Hassan â€Å"Under a typical wakala model, the Tabarru (donation) remains the property of the participants unless consumed, as they have the right to receive the surplus back and therefore it becomes a conditional gift.† Tijari model (business) commonly uses both the pure Mudarabah and modified Mudarabah approaches. Dr.masum is of the opinion, that modified Mudarabah approach is used where deduction of expenses is taken into consideration and as result more expensive premium is charged from the participants in order to cover the operational expenses while on the other hand Pure mudarabah approach is used where there are no operational expenses charged. Waqf model-this model operates on non-profit basis that collects donation from individuals or firms who willingly want to contribute something positive to the society. Social organizations and enterprise are engaged in such type of activity. Shakun Ashoka Raj (2007). Concepts of beneficiaries in Takaful It is vital to test the beneficiary in the policy inorder to find that whether the beneficiary is the right person to be tranferred the benefits.In order to do so the following concepts are under taken : Al-Wasiyah (bequest) Al-Mirath (inheritance) Al-Milkiyah (ownership) In the Takaful Model if the policy holder outlives the policy duration then under such circumstances the policy holder is entitled for the benefits and he is the only owner but in Waqf model the sole owner is Allah (S.A.T) and no one can claim the property or benefits. Dr.Masum (2001). After death of the policy holder the following stages are inoccured before the distribution of benefits of the policy. Wealth heald by the policy holder is adding with total benefits If there are any debts left by the policy holder then from the total weath those debts are paid off . For the remaining the funeral expenses will be deducted. The remaining property or any thing left is disrtibuted under the principals of Al wasiyah and Al mirath. Al Wasiyah Under the islamic principal the policy holder can give away via will 1/3 of the property. This is to reduces injustice that may be caused by the policy holder by giving his benefits not to his legal heirs . Al Mirath After making payments of loan taken by Policy holder, excluding funeral expenses from the remaining property and cash left by the deceased and executing his will, the remaing benefits ,property and cash left is distributed among the legal heirs of the policy holder via Islamic methods. CONVENTIONAL LIFE INSURANCE INSURANCE: Insurance is a medium via which people transfer the burden of uncertainty (financial loss) to the insurer, for an agreed financial attention known as â€Å"Premium†. In return, the issuer promises to provide financial compensation to the insured for particular loss occurring. The clients of the policy are known as policyholders. Human life is exposed to risks of death and disability due to natural disasters and accidents. Property possessed by man is exposed to various man made and natural hazards. Simultaneously man himself is exposed to different diseases, deadly viruses, the cure for which involves huge expenses. A family might have to face serious financial and moral hazards as a human life is lost or a person is disabled temporarily or permanently. If an individuals property is damaged, it might result in decline in income of the individual. Life insurance gives protection to an individual during his/her lifetime and after his death too. So we can say that it is an agreement that guarantees the payment of agreed amount of monetary benefit to the insured. There are number of companies offering Life insurance policies. The more the time period of the policy the greater its benefit e.g. if a person purchases a policy for the period of 10 years, he will get its benefit after 10 years but if he dies during this time frame, his family will get its benefit. The insurance company reviews variables that are likely to affect the health and how long and individual lives after receiving an application by individual for life insurance policy. Actuarys Statistical Analysis is performed by a person know as â€Å"Actuary† who determines whether the individual is a good â€Å"risk† to insure. Insurance premium is calculated, the older an individual, the higher the life insurance premium to be paid. Insurance premium can also be higher if an individual has health issues like higher cholesterol. If the insurance company agrees to provide insurance the agent will deliver the life insurance contract. The contract will include: The amount of money to be paid when the policyholder dies. How long the contract lasts. The amount of premium that needs to be paid by the policyholder. The policyholder will need to name the beneficiary to whom the benefit of the policy will be transferred in the event of death of policyholder. HISTORICAL DEVELOPMENT OF INSURANCE: Insurance is as old as the development of human society. In a society there are two types of economies Money economy Natural economy. Natural economy is more old then the money economy where people form community to help each other. For example if the house of a person gets burnt, the community members will pool in funds and reconstruct the house. Money economy practiced the transfer or distribution of risk by the Chinese and the Babylonian traders in the 2nd and 3rd millennium B.C. Achaemenian monarchs of Iran were the first to insure their people and that process was registered in the governmental notary offices. Life Insurance primarily established to provide protection against risk and catastrophes to people who were dieing very early, people who were aged and people who as a result of accident were disabled. This was practiced made possible by sharing and transferring risk with other individuals of the society. The idea of insuring oneself against risk is as old is mankind. Early times in England, societies were formed. Relief to the family of members of the societies would be given by making little sum of payments, if the grains of the farmers were damaged. The first life insurance company was established in England in 1705 and named the Amicable Society for Perpetual Assistance. Life insurance developed from these small beginnings into colossal industry, which gives people sense of security they require to maintain financial stability, moral and faith against inflation, deflation, wars, boom, panic and all sort of devastation. Life insurance gives individuals sound financial back up to move forward as it is based on scientific principles. Life Insurance companies were the only companies to pay their dues fully and survive the crisis of recession while the banks and other investment companies failed to do so. The purpose of selling life insurance is to make sure that it provides fresh air to people to start a life. In the larger view the life insurance policy becomes the reason for the beneficiary to begin a new life. Life insurance does active saving, utilization of funds and reserves for hazards and opportunities. It is a medium of savings, protection and growth and it has given people peace of mind and financial soundness. TYPES OF LIFE INSURANCE There are many different classification of life insurance each satisfying different need of individuals. Life insurance can be broadly divided into two main types: Term Assurance Whole Life Assurance Term Assurance: It is the least expensive Insurance and is available in various forms. This form of insurance is opted if the individual cannot afford other types of insurance or when temporary protection is needed. The premium from this type of insurance is free from element of investment. Term Assurance policy in case of death of policy holder during the specified years is bounded to provide lump sum amount of agreed money but if the individual outlives, then in such circumstances the contract is ceased and no money is to be provided to the policyholder. Term Life Insurance policy lengths for: One-year term policy- promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within one-year tem policy. Five years promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within five-year term policy. Ten years, fifteen and twenty year term policy is also known as long term policy. TYPES OF TERM ASSURANCE: Renewable term life policy –In this term life policy, the policyholder automatically qualifies to continue the policy when the specified time of the policy ends. Non-Renewable term life policy- this term life policy, the policy holder does not automatically qualifies to continue the policy when the specified time of the policy ends instead the individual has to re-qualify for the policy by undergoing physical examination in order to determine the health condition. Convertible term life policy-In this type of term policy the insured has the choice to covert this type of policy into permanent life insurance policy into variable insurance, whole or universal life insurance. Non-Convertible term life policy- simply means that policyholder cannot switch the policy to another type life insurance policy. WHOLE LIFE INSURANCE: This policy last the whole (entire) life of the insured. If the policyholder stops paying the premium he/she can get the benefit paid till date. Because of this reason it is an expensive life insurance policy. For example the funeral policy in which expenses are covered for the funeral of the person passed away. Full payment for the policy is taken at the time of purchases of policy. Whole life insurance policy can be divided into two types: Ordinary Life Insurance Limited Payment Life Insurance Ordinary life insurance: It is also know as straight life insurance. In this type of insurance policy the insurer is give lifetime security. For example if the insurer is alive at 100, then he is to be paid the benefit if the policy or the agreed amount of money. Under this policy of life insurance the policyholder is charged high premiums in the start of the policy and charged less premium during the last years of the policy. The life insurance company invests the premium of the policyholder to accumulate a cash surrender value. The policyholder can withdraw from the policy by taking the cash value or borrowing cash value at lower interest rates. The cash value is relatively small in the start of the year and increases with years. LIMITED PAYMENT LIFE INSURANCE: This life insurance policy is also known as â€Å"limited pay life insurance† in which individual pays for the specific time period and enjoys the policy for the rest of his/her life. The face amount of the policy is paid tax free to the beneficiaries the policyholder mentioned. This face amount can be paid on monthly basis or in lump sum amount. If the Policyholder mentioned to make payment to the beneficiary on monthly basis then the policyholder has four options to choose from: Life Income-In this policy the beneficiary of the policyholder is paid on the monthly basis as long as the beneficiary lives. Fixed Period Income-In this type of policy, the policyholder asks the insurance company to pay the beneficiary after his death the proceeds in equal amount over the period of ten years. The years determined are dependent on the wish of the policyholder. Fixed Amount Income-In this type of policy the policy holder asks the insurance company that after his death the nominated beneficiary should be paid lets suppose Rs.1000 a month till the proceeds are exhausted Interest Options-In this the policy holder asks the insurance company that after his death the benefit of the policy should be reinvested by the insurance company and the interest from the investment made should be provided to the nominated beneficiary each year. OTHER FORMS OF LIFE INSURANCE: Endowment Life Insurance- This policy is for a specific time period. The face value is paid to the nominated beneficiary if the policyholder dies during the specific period but if he is alive then the policyholder is paid the benefit of the policy. Variable Life Insurance-This policy is for the whole life. The policyholder is given option to decide the amount he wants to invest in life insurance and the amount he wants to invest in other investment opportunities like buying stocks. It has a guaranteed death benefit, which is based on forecasted interest rates. Theses rates are not fixed indeed vary from company to company. Universal Life Insurance-This policy charges less premium in the start but does not provide death benefit or cash value as this policy is flexible in terms of premium payments and timing. Second To Die Life Insurance- This policy is designed for couples.(married).The benefit of the policy is provided to the heirs of the policyholders only when the surviving spouse dies. Juvenile Life Insurance-The purpose of this policy is to provide safeguard to the children. The guardian or the parent of the child purchases policy in order to secure the minor from mishaps. Modified Life Insurance Policy-In this life insurance policy higher premium are charged at the later years of the specified time. It is suitable for those individuals who believe that their salary/income will increase in the future. METHODS FOR PROVIDING LIFE INSURANCE PROTECTION: There are two methods that are actively used to provide life insurance to individuals. Annual Renewable Term Level Premium method Annual Renewable Term: This type of life insurance policy has overcome the challenge of insurability simply meaning that the policyholder can renew the policy without under going medical examination or providing sound health evidence. Because of poor health or other mishaps the insurer might not be allowed to renew the policy. So annual renewable policy (ART) ignores the insurability element, they simply pay the renewal premium. The policy period varies from 10 to 30 years and for the till the age of 95 mostly. In such policy the premium to be paid is much higher then other life insurance policies. The more the age the higher the premium to be paid and thus the greater the return on the policy. The premium is calculated by determining the death rate of each age group. For Example: A group of 1000 males (non-alcoholic) at the age of 40 wants to get a life insurance for $1000.The death rate of males at the age of 40 is .332% out of 1000.This means that the insurance company would have to pay $.3220 for the death claim. The insurance company would have to collect $.3.20 from each policyholder in order to cover the death claims. The yearly renewable insurance premium increases, as the individual gets older. Premium sharply rises during the later years, because as the age grows the death rate also grows. LEVEL PREMIUM METHOD: In this type of life insurance policy the premium remains the same for the agreed number of years. The time frame varies from 10, 15, 20 to 30 years. This life insurance policy provides insurance to age 100.If the insurer survives till the age of 100 then the face value of the policy is paid to the policyholder. The premium charger in the early age is higher in order to cover for the morality expenses. Level Premium method is also know as ‘Legal Reserve† because the money invested by the company is according to the state law. The state requires the company to maintain a minimum amount of liquid so that it is able to pay for the agreed claims. The legal reserve that the insurance company maintains is equal to the present value of the future death claims minus present value of future premiums. The main objective of the legal reserve is to provide lifetime security. The policyholder has an option to withdraw from the policy by just taking the cash value which is less then the legal reserve because of deductions of expenses like sales. UNISLAMIC ELEMENTS IN CONVENTIONAL LIFE INSURANCE Conventional insurance contains the elements that are unacceptable in Islam which include Riba Maisir Gharar Riba –also termed as interest, is present in conventional life insurance. Loans granted by companies are charged on interest. An insured upon his death receives greater then he has paid. This is not permissible in Islam. Insurance funds stocks/bonds contain the element of interest Those who eat riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say, Trading is only like riba or usury, whereas Allah has permitted trading and forbidden riba. So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for the past; his case is for Allah (to judge): but whoever returns to riba, are dwellers of the Fire they will abide therein. â€Å"Al-Quran, Al-Baqarah (2). 275 Maisar- It refers to gambling or game of chance. Gambling of all forms/types is prohibited in Islam. The gambler tries to win mass wealth without making an effort. When the policyholder dies after only paying a small amount of premium his/her nominated beneficiary receives the benefit in term of monetary, which the policyholder has no idea where the amount has come from. Al-Maisir is referred to in the Quran as follows: O you who believe intoxicants (all kind of alcoholic drinks) and gambling, and Al-Ansab (ways for seeking luck) are an abomination of Shaitan (Satan). So avoid strictly all that (abomination) in order that you may be successful. Al-Quran, AI-Maidah (5): 90 Uncertainty -It is an element which is termed as gharar, is prohibited in Islam. In business terms gharar means undertaking business deals which are riskier and individuals do not posses sufficient knowledge about them. A contract which contains uncertainty due to: Occurring time is not known. The amount payable is not known. Whether the payment will be accepted as agreed. HARAM/HALAL-Islam does not allow individuals to invest money in unIslamic activities. Insurance companies may invest in bonds or tobacco companies or any unethical activity which is not permissible in Islam then taking insurance from such companies is considered haram. ISLAMIC LIFE INSURANCE The transaction of an Islamic life insurance system aims to protect the life of widows, orphans and the dependents of the deceased against future risks and hazards. It follows the principal of Al-Mudaraba financing. Under this principal the insured and insurer mutually agree to co-operate. The insured dependants are protected of future hazards as well as donations are made for the uplift of poor individual who face accidents in Islamic society. This concept was present and practiced during the times of Holy Prophet (P.B.U.H). In Islamic life Insurance policy the nominee is just acting as a trustee and is not considered the absolute beneficiary. The purpose/responsibility of the individual nomination (nominee) by the assured is to distribute the benefit to the heirs of the deceased under the principal pf Mirath and Wasiyah. In Islamic life insurance policies there are two situation in which the benefits of the policy are transferred i) the insurer can claim from the insurer the benefi ts if he outlives the time mentioned in the policy a) the paid premiums b) the profits made upon the paid premiums and c) the dividends/bonus made according to the company policy. In the other situation if the insured is not alive or passed away during the policy, the benefits are transferred to the nominee (selected by insured) and it is mandatory for the nominee to distribute the benefits of the policy among the heirs of the policyholder. The benefits include a) paid premium b) profits made on the paid premiums c) bonus/dividends make the company policy and d) donations from the companys charitable funds according to the policy selected by the assured. The benefits of the Islamic life insurance policy are not just claimed by individuals who face natural death/accidents but the benefit are also provided to people insured and passing in unlawful death example suicide/murders. The reason for that is life and death can only be det Prospects and Perception of Islamic Life Insurance Prospects and Perception of Islamic Life Insurance Chapter 1 Introduction Background to study: Insurance is a financial industry which has surfaced as a colossal industry for both in Muslim and Non Muslin world. In Conventional Insurance there are many elements, activities and procedures which are considered unethical, unlawful and unislamic by majority of Islamic scholars. Elements such as uncertainty, gambling and excessive interest are the main culprits. (Khair Bakhsh, 2009). For the satisfaction of Muslim concern, market experts and Islamic scholars introduced an insurance with the name of Takaful.The increase in demand of Takaful system and the presence of large markets for its products is compelling the entitled authorities to introduce it in Pakistan as soon as possible. Problem Statement: What are the prospects and perception of Islamic life insurance in Peshawar? Purpose of the study: To review why convention system is prohibited in Islam To compare Islamic Life Insurance (Takaful) with Contemporary Life Insurance. To find out justification of an Islamic Life Insurance (Takaful) Analysis of prospects of Takaful in Peshawar City. Methodology Applied Research: In this research I will be studying existing Islamic life insurance system and adding no new finds to body of knowledge. Scheme of study Type of investigation: This is a descriptive study: The format, which will be followed in this study, is to find out justification of an Islamic Life Insurance and what are its prospects in Peshawar. Cross-sectional Data: In this research I will observe and study secondary data regarding Islamic Life Insurance and Conventional life Insurance system. Unit of Study: My research unit of analysis will be organization Study Settings: Field Study: Study will be done in natural settings in which variables will not be controlled. Researchers interference: In this study researchers interference will be minimal and has no direct interference with the Islamic life insurance organizations because I am not allowed to interfere in the organizations. Methodology: The methods I will be using in the report are both Primary and Secondary data collection. Secondary Data: For this research I will use secondary data. Sources: Internet Leading newspaper articles Books related to Islamic life Insurance (Takaful) Research instruments: The instruments which will be used in my research to collect primary data are: Observations Questionnaires. Sample Size: I will be distributing questionnaires. Sampling Techniques: The sampling technique will be simple random sampling that will help in reducing the biasness factor in the research. Limitations: The scope of my research will be limited to students of universities in Peshawar because of time and other limited resources. Scheme of the report: The report will consist of the following parts. Introduction Literature Review Findings Analysis Conclusion and Recommendations Literature survey Meaning of Takaful: Takaful is a form of mutual assistance (Taawun) strengthened by aiding the ones who are in problems and deserve to be helped.(Dr.Masum) (2009). According to him, Islamic Scholars have begun to accept and conclude to the viewpoint that Takaful is according to Shariah principles. Numerous Islamic conferences are being held and Shariah Councils are emphasizing by creating awareness amongst the Muslims that Takaful operations are free from unIslamic elements thus the development of Takaful in the market is to cater to the needs of Muslim by providing them products and services in accordance to Islam. â€Å"Overtime, greater understanding on the concept of Islamic Insurance has emerged as the concept of Takaful, based on the contract of Tabarru (donation) and Mudarabah profit sharing.† â€Å"Takaful is an alternative form of Conventional Insurance based on the concept of trusteeship and cooperation inspired by the beliefs of the followers of Islamic teachings. Murtaza Ali (2007). It can be concluded that takaful is an Islamic way of dealing with uncertainties via mutual assistance and it is social scheme developed on the principals of brotherhood, solidarity and mutual assistance. Takaful is rooted from an Arabic word Kafal, which means that ones needs should be taken care of. According to this scheme participants jointly agree to bind themselves against damages caused by hazards. â€Å"Takaful is a legally binding agreement between all the participants of the scheme to pay any of the members who suffers a loss as specified in the Takaful certificate†. (Dr.Masum)(2009). Muhaimin Iqbal (2005), Abdul Rahim, Wahab and Kabir Hassan explain Takaful as a scheme that is derived from the concept of Taawun and the concept of Takaful is similar to Conventional mutual risk sharing. Takaful has a fixed maturity period and is considered long term saving tool. Apart from giving benefits of return it also provides a mutual financial assistance among participants. â€Å"A Programme that pools efforts to help the needy in times of need due to immediate deaths or mishaps resulting in personal injury or disablement†. (Bank Negara Malaysia) Scholars like Dr.Yusof Qaradawi (July 2007) state â€Å"Our observation that the modern current practices are objectable Islamic ally does not mean that Islam is against Insurance: it only opposes the means and methods.† According to the author the Islamic insurance companies will use the contract of donations and provide compensation and the operation of the company shall not get engaged in any unislamic elements. HISTORICAL PERSPECTIVE; â€Å"Muslims were involved in Marine activities in the Mediterranean and Indian Ocean from the seventh century on†. Chaim-Vardit (2009).† â€Å"The rough model of Takaful was practiced by Arabian tribes, holding to the principal of pooled resources to help the needy on the voluntary basis† Masum Billah (2001). Tamim become the first insurance term in Arabic only in 20th century and it is believed that Ibn Abidin, a Hanafite Jurist who died in 1836,is the First Muslim to coin name Insurance Sukara (security) influenced by Italian term Siguare and Turkish Sigorta. Chaim-Vardit (2009). Merchants of Mecca used to form a group of Mutual funds with a purpose to help the victims or survivors of natural hazards during their commercial ventures into Syria, Iraq and other countries. Such a practice was supported and even contributions were made by Prophet Muhammad (P.B.U.H) while trading with the capital of Hazrat Khadija. Aziz-Abdul (2005) â€Å"The period lasting from the fall of Rome until the Dawn of Islam was the darkest, most corrupt and unsettled period in the known history to man. Hence the Dawn of Islam removed darkness from the face of life and brought the environment of security and stability to the areas which came under the influence of Islam.† According to Chaim-Vardit, Shariah recognizes several transactions and institutions which function in a way similar to certain type of Insurance. The typical ones are: Daman (guarantee) is synonymous to â€Å"Kafala† is used with risk or responsibility that one bears with regard to property of which one enjoys profit. Daman Khatar al Tariq (guarantee against travel hazards). In this type of transaction, the person himself wishes to be compensated for a future possible loss. Wala al Muwalat-This type of transaction was prohibited by Prophet Muhammad (P.B.U.H). The problem was this type of transaction established new ties, as strong as blood ties, outside the family was unbearable. Diya (blood money)-compensation to victim or victims family for unintentional killing or bodily injury. Mudaraba-is not mentioned in Quran and there is much doubt whether it is mentioned in Hadith Zakat-means growth and purity. It is often mentioned as equal to modern social Insurance and there have been modern attempts made in Islamic states as Saudi Arabia and Pakistan to apply Zakat. The institution of Waaf (endowment)-the property endowed as Waaf was intended to support the poor, staff of mosques, hospitals, to maintain city facilities and the two holy cities. Jizya-tax levied on non-Muslims residing in Islamic State and provides then with security for their lives and property. Holy Prophet (P.B.U.H) emphasised that a Muslim should protect itself from hazards and risks via transfering the risk through Takaful Model.The life of a muslim is Controlled and destiny by Allah (S.A.T) but it does not mean that a Muslim cannot protect itself but indeed a Muslim in Islam should gurad itself from misfortunes, hazards, risks and uncertanities.Dr.Masum (2001). Types of Takaful Structures: â€Å"There is no single â€Å"best† model that exists for takaful. Shariah scholars worldwide concur on fundamental components that characterize a takaful scheme, yet in their judicial opinions (fatwas), operational differences are tolerated as long as they do not contradict essential religious tenets.† Ms Shakun Ashoka Raj (2007). There has been a tremendous research done on the takaful models which includes work of prominent authors like Dr.Masum (2001), Hassan, Rahim and Wahab (May June 2007). According to Hassan, Rahim and Wahab (2007) for the Mudarabah contract to be allowed and carried in Islam requires a number of elements to be present: The capital provider (participant); The entrepreneur (takaful operator); Capital an appropriate activity; Profit and loss sharing and offer and acceptance. In the mudaraba contract, the two parties know as provider (rab ul maal) and the entrepreneur or takaful operator (mudarib) operates on a joint venture basis. †An investment on a Mudarabah basis of 100 should at the end of the period give more then 100 to be termed as profit and for the operators to share that.† The other takaful model is known as agency or wakala model. On the basis of this principal, a person delegates his right or business to the other people/person to act as his agent or wakil. The agent is responsible to contribute his knowledge, skills, and abilities in performing the tasks assigned to him in the best manner. According to Dr.Masum (2001) in the Wakala model the salary of the agent who rendered the services is subtracted against the fool of funds. The net funds will be used for the purpose of investment and profits will be distributed accordingly. Similarly author Rahim, Wahab and Hassan â€Å"Under a typical wakala model, the Tabarru (donation) remains the property of the participants unless consumed, as they have the right to receive the surplus back and therefore it becomes a conditional gift.† Tijari model (business) commonly uses both the pure Mudarabah and modified Mudarabah approaches. Dr.masum is of the opinion, that modified Mudarabah approach is used where deduction of expenses is taken into consideration and as result more expensive premium is charged from the participants in order to cover the operational expenses while on the other hand Pure mudarabah approach is used where there are no operational expenses charged. Waqf model-this model operates on non-profit basis that collects donation from individuals or firms who willingly want to contribute something positive to the society. Social organizations and enterprise are engaged in such type of activity. Shakun Ashoka Raj (2007). Concepts of beneficiaries in Takaful It is vital to test the beneficiary in the policy inorder to find that whether the beneficiary is the right person to be tranferred the benefits.In order to do so the following concepts are under taken : Al-Wasiyah (bequest) Al-Mirath (inheritance) Al-Milkiyah (ownership) In the Takaful Model if the policy holder outlives the policy duration then under such circumstances the policy holder is entitled for the benefits and he is the only owner but in Waqf model the sole owner is Allah (S.A.T) and no one can claim the property or benefits. Dr.Masum (2001). After death of the policy holder the following stages are inoccured before the distribution of benefits of the policy. Wealth heald by the policy holder is adding with total benefits If there are any debts left by the policy holder then from the total weath those debts are paid off . For the remaining the funeral expenses will be deducted. The remaining property or any thing left is disrtibuted under the principals of Al wasiyah and Al mirath. Al Wasiyah Under the islamic principal the policy holder can give away via will 1/3 of the property. This is to reduces injustice that may be caused by the policy holder by giving his benefits not to his legal heirs . Al Mirath After making payments of loan taken by Policy holder, excluding funeral expenses from the remaining property and cash left by the deceased and executing his will, the remaing benefits ,property and cash left is distributed among the legal heirs of the policy holder via Islamic methods. CONVENTIONAL LIFE INSURANCE INSURANCE: Insurance is a medium via which people transfer the burden of uncertainty (financial loss) to the insurer, for an agreed financial attention known as â€Å"Premium†. In return, the issuer promises to provide financial compensation to the insured for particular loss occurring. The clients of the policy are known as policyholders. Human life is exposed to risks of death and disability due to natural disasters and accidents. Property possessed by man is exposed to various man made and natural hazards. Simultaneously man himself is exposed to different diseases, deadly viruses, the cure for which involves huge expenses. A family might have to face serious financial and moral hazards as a human life is lost or a person is disabled temporarily or permanently. If an individuals property is damaged, it might result in decline in income of the individual. Life insurance gives protection to an individual during his/her lifetime and after his death too. So we can say that it is an agreement that guarantees the payment of agreed amount of monetary benefit to the insured. There are number of companies offering Life insurance policies. The more the time period of the policy the greater its benefit e.g. if a person purchases a policy for the period of 10 years, he will get its benefit after 10 years but if he dies during this time frame, his family will get its benefit. The insurance company reviews variables that are likely to affect the health and how long and individual lives after receiving an application by individual for life insurance policy. Actuarys Statistical Analysis is performed by a person know as â€Å"Actuary† who determines whether the individual is a good â€Å"risk† to insure. Insurance premium is calculated, the older an individual, the higher the life insurance premium to be paid. Insurance premium can also be higher if an individual has health issues like higher cholesterol. If the insurance company agrees to provide insurance the agent will deliver the life insurance contract. The contract will include: The amount of money to be paid when the policyholder dies. How long the contract lasts. The amount of premium that needs to be paid by the policyholder. The policyholder will need to name the beneficiary to whom the benefit of the policy will be transferred in the event of death of policyholder. HISTORICAL DEVELOPMENT OF INSURANCE: Insurance is as old as the development of human society. In a society there are two types of economies Money economy Natural economy. Natural economy is more old then the money economy where people form community to help each other. For example if the house of a person gets burnt, the community members will pool in funds and reconstruct the house. Money economy practiced the transfer or distribution of risk by the Chinese and the Babylonian traders in the 2nd and 3rd millennium B.C. Achaemenian monarchs of Iran were the first to insure their people and that process was registered in the governmental notary offices. Life Insurance primarily established to provide protection against risk and catastrophes to people who were dieing very early, people who were aged and people who as a result of accident were disabled. This was practiced made possible by sharing and transferring risk with other individuals of the society. The idea of insuring oneself against risk is as old is mankind. Early times in England, societies were formed. Relief to the family of members of the societies would be given by making little sum of payments, if the grains of the farmers were damaged. The first life insurance company was established in England in 1705 and named the Amicable Society for Perpetual Assistance. Life insurance developed from these small beginnings into colossal industry, which gives people sense of security they require to maintain financial stability, moral and faith against inflation, deflation, wars, boom, panic and all sort of devastation. Life insurance gives individuals sound financial back up to move forward as it is based on scientific principles. Life Insurance companies were the only companies to pay their dues fully and survive the crisis of recession while the banks and other investment companies failed to do so. The purpose of selling life insurance is to make sure that it provides fresh air to people to start a life. In the larger view the life insurance policy becomes the reason for the beneficiary to begin a new life. Life insurance does active saving, utilization of funds and reserves for hazards and opportunities. It is a medium of savings, protection and growth and it has given people peace of mind and financial soundness. TYPES OF LIFE INSURANCE There are many different classification of life insurance each satisfying different need of individuals. Life insurance can be broadly divided into two main types: Term Assurance Whole Life Assurance Term Assurance: It is the least expensive Insurance and is available in various forms. This form of insurance is opted if the individual cannot afford other types of insurance or when temporary protection is needed. The premium from this type of insurance is free from element of investment. Term Assurance policy in case of death of policy holder during the specified years is bounded to provide lump sum amount of agreed money but if the individual outlives, then in such circumstances the contract is ceased and no money is to be provided to the policyholder. Term Life Insurance policy lengths for: One-year term policy- promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within one-year tem policy. Five years promises to pay the beneficiaries of the policyholder the agreed amount of money if the insurer dies within five-year term policy. Ten years, fifteen and twenty year term policy is also known as long term policy. TYPES OF TERM ASSURANCE: Renewable term life policy –In this term life policy, the policyholder automatically qualifies to continue the policy when the specified time of the policy ends. Non-Renewable term life policy- this term life policy, the policy holder does not automatically qualifies to continue the policy when the specified time of the policy ends instead the individual has to re-qualify for the policy by undergoing physical examination in order to determine the health condition. Convertible term life policy-In this type of term policy the insured has the choice to covert this type of policy into permanent life insurance policy into variable insurance, whole or universal life insurance. Non-Convertible term life policy- simply means that policyholder cannot switch the policy to another type life insurance policy. WHOLE LIFE INSURANCE: This policy last the whole (entire) life of the insured. If the policyholder stops paying the premium he/she can get the benefit paid till date. Because of this reason it is an expensive life insurance policy. For example the funeral policy in which expenses are covered for the funeral of the person passed away. Full payment for the policy is taken at the time of purchases of policy. Whole life insurance policy can be divided into two types: Ordinary Life Insurance Limited Payment Life Insurance Ordinary life insurance: It is also know as straight life insurance. In this type of insurance policy the insurer is give lifetime security. For example if the insurer is alive at 100, then he is to be paid the benefit if the policy or the agreed amount of money. Under this policy of life insurance the policyholder is charged high premiums in the start of the policy and charged less premium during the last years of the policy. The life insurance company invests the premium of the policyholder to accumulate a cash surrender value. The policyholder can withdraw from the policy by taking the cash value or borrowing cash value at lower interest rates. The cash value is relatively small in the start of the year and increases with years. LIMITED PAYMENT LIFE INSURANCE: This life insurance policy is also known as â€Å"limited pay life insurance† in which individual pays for the specific time period and enjoys the policy for the rest of his/her life. The face amount of the policy is paid tax free to the beneficiaries the policyholder mentioned. This face amount can be paid on monthly basis or in lump sum amount. If the Policyholder mentioned to make payment to the beneficiary on monthly basis then the policyholder has four options to choose from: Life Income-In this policy the beneficiary of the policyholder is paid on the monthly basis as long as the beneficiary lives. Fixed Period Income-In this type of policy, the policyholder asks the insurance company to pay the beneficiary after his death the proceeds in equal amount over the period of ten years. The years determined are dependent on the wish of the policyholder. Fixed Amount Income-In this type of policy the policy holder asks the insurance company that after his death the nominated beneficiary should be paid lets suppose Rs.1000 a month till the proceeds are exhausted Interest Options-In this the policy holder asks the insurance company that after his death the benefit of the policy should be reinvested by the insurance company and the interest from the investment made should be provided to the nominated beneficiary each year. OTHER FORMS OF LIFE INSURANCE: Endowment Life Insurance- This policy is for a specific time period. The face value is paid to the nominated beneficiary if the policyholder dies during the specific period but if he is alive then the policyholder is paid the benefit of the policy. Variable Life Insurance-This policy is for the whole life. The policyholder is given option to decide the amount he wants to invest in life insurance and the amount he wants to invest in other investment opportunities like buying stocks. It has a guaranteed death benefit, which is based on forecasted interest rates. Theses rates are not fixed indeed vary from company to company. Universal Life Insurance-This policy charges less premium in the start but does not provide death benefit or cash value as this policy is flexible in terms of premium payments and timing. Second To Die Life Insurance- This policy is designed for couples.(married).The benefit of the policy is provided to the heirs of the policyholders only when the surviving spouse dies. Juvenile Life Insurance-The purpose of this policy is to provide safeguard to the children. The guardian or the parent of the child purchases policy in order to secure the minor from mishaps. Modified Life Insurance Policy-In this life insurance policy higher premium are charged at the later years of the specified time. It is suitable for those individuals who believe that their salary/income will increase in the future. METHODS FOR PROVIDING LIFE INSURANCE PROTECTION: There are two methods that are actively used to provide life insurance to individuals. Annual Renewable Term Level Premium method Annual Renewable Term: This type of life insurance policy has overcome the challenge of insurability simply meaning that the policyholder can renew the policy without under going medical examination or providing sound health evidence. Because of poor health or other mishaps the insurer might not be allowed to renew the policy. So annual renewable policy (ART) ignores the insurability element, they simply pay the renewal premium. The policy period varies from 10 to 30 years and for the till the age of 95 mostly. In such policy the premium to be paid is much higher then other life insurance policies. The more the age the higher the premium to be paid and thus the greater the return on the policy. The premium is calculated by determining the death rate of each age group. For Example: A group of 1000 males (non-alcoholic) at the age of 40 wants to get a life insurance for $1000.The death rate of males at the age of 40 is .332% out of 1000.This means that the insurance company would have to pay $.3220 for the death claim. The insurance company would have to collect $.3.20 from each policyholder in order to cover the death claims. The yearly renewable insurance premium increases, as the individual gets older. Premium sharply rises during the later years, because as the age grows the death rate also grows. LEVEL PREMIUM METHOD: In this type of life insurance policy the premium remains the same for the agreed number of years. The time frame varies from 10, 15, 20 to 30 years. This life insurance policy provides insurance to age 100.If the insurer survives till the age of 100 then the face value of the policy is paid to the policyholder. The premium charger in the early age is higher in order to cover for the morality expenses. Level Premium method is also know as ‘Legal Reserve† because the money invested by the company is according to the state law. The state requires the company to maintain a minimum amount of liquid so that it is able to pay for the agreed claims. The legal reserve that the insurance company maintains is equal to the present value of the future death claims minus present value of future premiums. The main objective of the legal reserve is to provide lifetime security. The policyholder has an option to withdraw from the policy by just taking the cash value which is less then the legal reserve because of deductions of expenses like sales. UNISLAMIC ELEMENTS IN CONVENTIONAL LIFE INSURANCE Conventional insurance contains the elements that are unacceptable in Islam which include Riba Maisir Gharar Riba –also termed as interest, is present in conventional life insurance. Loans granted by companies are charged on interest. An insured upon his death receives greater then he has paid. This is not permissible in Islam. Insurance funds stocks/bonds contain the element of interest Those who eat riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say, Trading is only like riba or usury, whereas Allah has permitted trading and forbidden riba. So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for the past; his case is for Allah (to judge): but whoever returns to riba, are dwellers of the Fire they will abide therein. â€Å"Al-Quran, Al-Baqarah (2). 275 Maisar- It refers to gambling or game of chance. Gambling of all forms/types is prohibited in Islam. The gambler tries to win mass wealth without making an effort. When the policyholder dies after only paying a small amount of premium his/her nominated beneficiary receives the benefit in term of monetary, which the policyholder has no idea where the amount has come from. Al-Maisir is referred to in the Quran as follows: O you who believe intoxicants (all kind of alcoholic drinks) and gambling, and Al-Ansab (ways for seeking luck) are an abomination of Shaitan (Satan). So avoid strictly all that (abomination) in order that you may be successful. Al-Quran, AI-Maidah (5): 90 Uncertainty -It is an element which is termed as gharar, is prohibited in Islam. In business terms gharar means undertaking business deals which are riskier and individuals do not posses sufficient knowledge about them. A contract which contains uncertainty due to: Occurring time is not known. The amount payable is not known. Whether the payment will be accepted as agreed. HARAM/HALAL-Islam does not allow individuals to invest money in unIslamic activities. Insurance companies may invest in bonds or tobacco companies or any unethical activity which is not permissible in Islam then taking insurance from such companies is considered haram. ISLAMIC LIFE INSURANCE The transaction of an Islamic life insurance system aims to protect the life of widows, orphans and the dependents of the deceased against future risks and hazards. It follows the principal of Al-Mudaraba financing. Under this principal the insured and insurer mutually agree to co-operate. The insured dependants are protected of future hazards as well as donations are made for the uplift of poor individual who face accidents in Islamic society. This concept was present and practiced during the times of Holy Prophet (P.B.U.H). In Islamic life Insurance policy the nominee is just acting as a trustee and is not considered the absolute beneficiary. The purpose/responsibility of the individual nomination (nominee) by the assured is to distribute the benefit to the heirs of the deceased under the principal pf Mirath and Wasiyah. In Islamic life insurance policies there are two situation in which the benefits of the policy are transferred i) the insurer can claim from the insurer the benefi ts if he outlives the time mentioned in the policy a) the paid premiums b) the profits made upon the paid premiums and c) the dividends/bonus made according to the company policy. In the other situation if the insured is not alive or passed away during the policy, the benefits are transferred to the nominee (selected by insured) and it is mandatory for the nominee to distribute the benefits of the policy among the heirs of the policyholder. The benefits include a) paid premium b) profits made on the paid premiums c) bonus/dividends make the company policy and d) donations from the companys charitable funds according to the policy selected by the assured. The benefits of the Islamic life insurance policy are not just claimed by individuals who face natural death/accidents but the benefit are also provided to people insured and passing in unlawful death example suicide/murders. The reason for that is life and death can only be det

Birth of the Universe :: science

Birth of the Universe Your universe, as we have suggested many times, as we've suggested already this morning, is but one universe among many. It is relatively a small universe — not to suggest that you should feel badly †¦ {laughter} †¦ for despite the consensus reality that bigger is better, despite the male-dominating energy and the comparative energies that say "bigger is better," your universe, though relatively small, is not at all diminished by its size. Now we know the word universe by its definition means the totality of known or supposed objects and phenomena throughout space. We know that it is thought of as "all" and that therefore there can only be one. Yet, by experience and by fact, yours is but one among many dimensional and non-dimensional universes. Yours is a universe by a truer definition: It is that which is versus (turning into) uni (one). Universe. And it is mostly space, as you know. And it is mostly outer space as you call it. Before anything, your universe is space. Space. What about before space? To understand the Vortex of Sirius and the Sirius Connection, realize that before your universe existed, before it was even conceived, there was nothing. First space had to be created. As with any dimensional creation, first comes space. We have suggested that the Goddess energy — the original energy that creates itself without space or time — first creates God. No, we do not mean the God of religious text and doctrine Eastern or Western — not that God that so frequently comes to mind when the word is said or thought. We speak of the genuine article, if you will. We speak of the more-real God that to most remains unknown. The Goddess first creates God. She first gives birth to God, if you will, from her womb. The egg of new form, fertilized by the new spark of Her Light, gives birth to that energy — spaceless energy — that is God. Why? So that together Goddess and God can continuously create — give birth to — All That Is. Together. Together, we would suggest, because the Goddess has no desire to be the singular authority. She has no desire to have singular supremacy or to be singularly supreme. She has no desire to be absolute. She does want to work together. She always does. In the context of your language, and thus in the context of your time, the Goddess first created God so that God with Goddess could create All That Is.

Employment and Absenteeism Problem Essay

Absenteeism refers to unauthorised absence of the worker from his job. According to Benefits Interface (Edited 2010: 1 of 4) absenteeism can be defined as ‘failure of employees to report for work when they are scheduled to work’. Employees who are away from work on recognized holidays, vacations, approved leaves of absence allowed for under the collective agreement provisions are not included. In South Africa, managers consider absenteeism their most serious discipline problem (Nadlangisa, 2003). Absenteeism is not unique to any particular geographical area or industry. It is a major problem for every organisation, particularly since downsizing and other lean changes have left employers with a smaller workforce (Grobler, Warnich, et al, 2006: 123) According to a recent study conducted by AIC Insurance, companies and the country’s economy are losing more than R12 billion annually due to absenteeism in South Africa. In 2000, 0. 7 million workers were absent from work, which is a fraction compared to the 397% leap it took up until 2012 (Goldberg, 2012). Employees are often considered to be a company’s most valuable asset and according to Hamilton-Atwell (2003: 56-61) one of the best ways to increase profitably is by increasing the returns on this asset. Reducing absenteeism is one of the most overlooked methods of reducing costs According to Goldberg (2012) managing absence is critical for all organisations, as the negative impact that they feel with regards to efficiency, operations and cost- effectiveness is enormous. Whatever the causes, absenteeism is costing the country and its businesses heavily and therefore needs to be addressed. Many employers, however, choose to disregard the possibility that there may be issues in the workplace causing poor performance and absenteeism. It makes sound economic sense to address any such issues and pro-actively encourage improved employee performance. This research framework focuses on a medium-sized local organisation, which has asked to not be mentioned. Therefore it shall be referred to as Organisation X. 3 2. Problem identification The failure to show up for work creates problems of varying degrees for managers and administrators. Excessive employee absenteeism can decrease productivity and profits significantly, creating numerous problems for supervisors and the employees who work regularly (Carrell & Kuzmits, 1992: 735). 2. 1. Problem Statement The motivation for this research will be discussed by highlighting problems related to employee absenteeism as experienced within Organisation X Main Problem Unauthorized employee absenteeism from Organisation X and the actions that might be implemented to reduce this due to the fact that absenteeism causes a liability to the company. Sub-Problems The unauthorised employee absenteeism is leading to an overall decrease in: i. Cost- effectiveness – Profitability ii. Operations – Production iii. Efficiency – Competitiveness 2. 2. Explanation of problems: Financial Costs Overtime and agency costs for replacing workers are incurred. Administrative Costs Staff time required to secure replacement employees and to re-assign the remaining employees. Staff time is required to maintain and control absenteeism. 4 Decrease in Productivity The employees that come to work daily carry an extra workload and support new or replacement staff. Also they are required to train and orient new or replacement workers, which cause them to neglect and disregard their own work. The work group itself has a considerable stake in absenteeism, particularly with respect to morale. People in work groups are very sensitive to equity. If one member takes excessive and perceived inappropriate absences without some equitable cost to that individual, other group members are often affected. They take revenge by going absent themselves, o lowering the productivity of the group as a whole (Furham, 2000: 377). Possible reasons for the absenteeism rate in Organisation X Lack of commitment Employees are simply not interested in their work or concerned about the success of the organization. This can stem from low wages or low employee morale, which might be caused by poor treatment by management or an unpleasant working environment. Also the length of service within the company will determine the commitment to the work and the workplace. Lack of consequence The lack of consequences, e. g. no incentives for strong attendance or no punishment for poor attendance leads to increased absenteeism of the employees. Also employee packages that allow for a lot of absence can lead to workers abusing this. Poor working conditions Employees might feel that they receive poor treatment from managers, work in an unpleasant or stressful working environment, have long working hours a lack of breaks, are given an excessive workload or there is too much strict supervision. Personal factors Although there is a fair bit of absenteeism that could have been avoided, employees are often away from work for ‘valid’ reasons. Examples may include domestic 5 problems (bad housing conditions, family issues) and consequent worries, social and religious causes, problems with transport facilities or accidents/ illnesses (Hamilton-Atwell, 2003: 82-95) 2. 3. Research questions I. What are the main factors causing employees to be absent from work? II. Is one specific group of people more absent than another (e. g. male/female, old/young)? III. What are the current disciplinary actions within Organisation X’s Human Resource Department? IV. What is the behaviour of the employees towards these disciplinary actions? V. What are the possible and most suitable solutions for Organisation X? 2. 4. Possible solutions for the absenteeism problem include, but are not limited to the following: Consequences To avoid absenteeism as much as possible the company should implement positive/ negative consequences for strong/ weak attendance. Examples may include offering rewards and incentives, e. g. monetary bonuses, simple raise or recognition (Employee of the month) for strong attendance and punish employees with poor records and unexcused absence (Gitman & McDaniel, 2008: 248). Work-Life Balance According to Chick (2004: 67) managers should allow employees to be able to have or create a work-life balance, as this can reduce the stress levels they are exposed to. Dual income households have increased over the last decades and longer working hours are expected. Managers need to help their employees to manage the numerous and sometimes competing demands in their lives. Employees need to achieve a balance between their work responsibilities and their personal life (Gitman & McDaniel, 2008: 251). Follow-ups The Supervisors need to sit down with the employees when they return from an absence to discuss the reason for absence, if the absence could have been 6 prevented and the implications of absenteeism on the company (if it is a common occurrence for this employee). 3. Hypotheses I. Females are more absent from work then men II. Individuals in any relationship are more absent than singles III. Employees with children are more absent than those without children IV. Employees below 40 are absent from work more frequently V. Current disciplinary actions are not perceived as a reason for employees to reduce the absenteeism VI. Implementing other stricter disciplinary actions will reduce the rate of employee absenteeism 4. Objectives The Objectives of the project are: To understand and analyze: I. The main causes of absenteeism in Organisation X. II. The current disciplinary actions taken by the HR department for reducing absenteeism. III. The attitude of employees towards these disciplinary actions. IV. The factors to be considered in order to reduce absenteeism. V. Suggestions that can be given to the management to improve the regular attendance of the employees in the company.

Unions at the Work Place

Work dominates modern life. Work can be satisfying, enjoyable and rewarding. Many of the difficulties which face several nations today arise from the fact that, over many years, a lot of people who want to work have been denied the chance to do so. Most employers treat their workers fairly. But some do not. Complaints about the way they were treated by their employer are rampant. Even the best bosses can make mistakes from time to time. Unions exist to help people at work and make the work place a better place. Basically, unions work on the simple principle that while an employer might be able to ignore the views of a single worker, if all workers speak with one voice the employer has to take notice. Unions encourage their members to take part in collective decisions on workplace issues and these views are then put to the employer. From time to time, Union members in the same workplace will get together to talk about common problems. The issues most likely to come up are pay, safety, unfair treatment of a group or individual, or simply the way the work is organized. The union members will usually elect someone to speak on their behalf – a shop steward or office representative. The rep will then discuss their concerns with management. Where the union has a recognition agreement with management they reach decisions together on key issues. In bigger workplaces there will be a number of representatives, sometimes from different unions, speaking on behalf of different groups of workers. And in very big workplaces some of these union representatives will spend much of their working day dealing with union business, talking to management helping solve problems on behalf of their members. Most sensible employers welcome these arrangements. They understand it is better for workers to have an independent means of dealing with problems rather than letting them fester or hoping they will be sorted out by the supervisors or line managers who are sometimes the cause of the problems. However, is that enough? Shall Unions' responsibility be limited to those of their kinds or should it be widened to apply coverage to the whole society at large? Ross M. Martin, in the book Trade Unionism – Purposes and Forms, p. 62 wrote: â€Å"The responsibility of the part to the whole is inseparable from the idea that society is an organism. For the trade union that means a responsibility which extends beyond the membership, beyond the class, to society at large.† When we talk of trade union, we talk of association of workers for the purpose of improving their economic status and working conditions through collective bargaining. Historically there have been two major types of labor unions: the horizontal, or craft, union, in which all the members are skilled in a certain craft (e.g., carpenters); and the vertical, or industrial, union, composed of workers in the same industry, whatever their particular skills (e.g., automobile workers). A company union is an employee-controlled union having no affiliation with other labor organizations. The term closed shop refers to a company that hires only union members. In a union shop, employees are required to join a union within a specified time after being hired. An open shop does not restrict its employees to union members. Labor unions are essentially the product of the industrial revolution of the 19th century. In Great Britain, miners and textile workers were organized in the 1860s. Most European labor organizations today are either political parties or are affiliated with political parties, usually left-wing ones. In Britain today there are almost 23 million people in paid employment. Most of them spend up to a quarter of their lives at work – longer, on average, than anywhere else in Europe. Today almost seven million people in Europe belong to TUC unions (founded in Manchester in 1868) that is almost one worker in every three. Wherever people work there are union members – or potential union members. They include men and women; full-time and part-time workers; people in big businesses, and those in small ones; people who work for the government and those who work for themselves. Union members are no different from anyone else, except they tend to be better paid and have better working conditions because they have someone to stand up for them. Unions contribute to the success of an enterprise by helping employers plan for the future and manage change. Some of the most dynamic companies work routinely with the unions to keep their workforce informed on crucial issues. The development of worker and union involvement in an enterprise is known in Europe as ‘social partnership'. In some workplaces arrangements to involve workers more closely have been developed with formal â€Å"works councils†. European regulations require such works councils for large companies that operate in more than one EU country. They also require consultation where big changes or redundancies are planned. Sometimes companies and unions have to find imaginative solutions to changes in demand for goods and services. The social partnership approach allows both sides to explore ways of working to the benefit of employees as well as the enterprise. Many union movements in the underdeveloped countries have led anticolonial campaigns toward political independence. In the United States, Unions began developing in the 1830s. Among the important early organizations were the Knights of Labor and the Industrial Workers of the World. A milestone in the history of American unionism came in 1886 with the formation of a group that eventually became the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), an association that includes nearly all of the larger U.S. Unions. The U.S. Labor movement gained support from such new deal laws as the Wagner Act (1935), creating the National Labor Relations Board, but later was restricted by the Taft-Hartley Act of 1947 and the Landrum-Griffin Act of 1959. By the late 1970s some 20 states had banned the closed shop through right-to-work laws. In bargaining with companies in economically troubled industries in the 1980s, U.S. Unions often sought to save existing jobs through concessions (give-backs) of earlier gains, and in 1993 unions unsuccessfully fought passage of the North American free trade agreement, fearing job losses if it were ratified. U.S. Union membership has steadily declined from its peak of 35.5% of the nonagricultural workforce in 1945; in 1992, when U.S. Unions had 16,390,000 members, it stood at 15.8%. Today there are unions in virtually every country in the world. In countries as far apart as South Africa and Poland unions have been at the forefront of campaigns for social change. Internationally, world trade unionism was split after 1949 between two rival organizations: the World Federation of Trade Unions (1945) and the International Confederation of Free Trade Unions (1949). The International Labor Organization is a specialized agency of the United Nations.

Environmental Scanning Report essays

Environmental Scanning Report essays Internet-connected computers are at risk. And it's clear that anyone who does business on the Net is vulnerable. Corrections, defenses or patches exist for most flaws, but when they're not installed, the systems are vulnerable and attacks succeed. As it is stated on Computer World magazine, as the systems are getting more complicated the vulnerability of the systems are increasing. A key element that's missing in Internet security is a set of practical, widely accepted and nonproprietary operating standards specifying in detail how systems should be configured and operated. Without widely accepted standards, organizations will continue to install computers blindly, hoping they'll be protected by obscurity or luck. If the global economy weren't dependent on the Internet, such wishful thinking might be acceptable. But today, every unprotected system connected to a high-speed communications line is a loaded weapon that attackers can use against e-commerce leaders, communications and power companies, and national governments. Of even greater risk for e-commerce is a business partner that doesn't protect its systems, thus putting every other electronic partner at risk. It isn't surprising, then, that Visa, the firm that stepped forward to begin solving the problem, is connected to a very large number of other companies. Visa processes $1.7 trillion in transactions every year, or more than $4 billion every day. To do that efficiently, Visa electronically partners with 21,000 merchants that carry its logo. In late July, Visa issued a new set of 10 requirements that each merchant partner must meet if it wants to keep the logo. They range from having specific firewall settings to changing default passwords, and they cover patches, encryption, antivirus software and more. What makes Visa's "Ten Commandments" so valuable is that they're practical. Most organizations that understand security already comply with them. Visa's great contri...

A Changing America; The Early 19th Century essays

A Changing America; The Early 19th Century essays In the late 19th Century America was going through a change. The democracy of the nation was taking a new shape, and Americans were forming their future through more political systems. New issues were effecting the American people, and organization became a viable method of being heard. Politicians were becoming actual voices for groups of people, rather than being a vessel for corruption and political favoritism. The face of the nations was in transformation and everything would change with it. One of the nations biggest changes started in the work force. When working conditions started to become too adverse, workers started seeing the advantage of banning together as unions. Owners who would not pay attention to the needs of individuals, could not ignore when their entire labor force demanded that an issue was resolved, and owners were forced to pay attention. Labor unions became a political power, pressing under the notion that they were giving the people the voice they deserved. As unions matured they would move through phases of representation: from representing a large number of people in a variety of occupations, to becoming more specified to the individuals within one occupation. Eventually many unions existed for all different professions, all focusing on their sector of the work force. The system of political representation followed a similar suit. Instead of a system of wide representation across a wide area of land, representation became more specific to small locations. This helped lower political corruption which was becoming more rampant up until that point. Political favors were no longer the dominating way to get what you wanted out of the government. The more focused representation could help get the issues of more people in front of the congress. Out of the more focused representation, voices of immigrants, non-caucasions, and women would not fall onto deaf ears. Immigration was peaking at the end of the 19th ...

BPL vs. DLL in Delphi Programming Applications

BPL vs. DLL in Delphi Programming Applications When we write and compile a Delphi application, we typically generate an executable file - a standalone Windows application. Unlike Visual Basic, for example, Delphi produces applications wrapped in compact exe files, with no need for bulky runtime libraries (DLLs). Try this: start Delphi and compile that default project with one blank form, this will produce an executable file of about 385 KB (Delphi 2006). Now go to Project - Options - Packages and check the Build with runtime packages check box. Compile and run. Voila, the exe size is now around 18 KB. By default the Build with runtime packages is unchecked and every time we make a Delphi application, the compiler links all the code your application requires to run directly into your applications executable file. Your application is a standalone program and doesnt require any supporting files (like DLLs) - thats why Delphi exes are so big. One way of creating smaller Delphi programs is to take advantage of Borland package libraries or BPLs in short. Whats a Package? special dynamic-link library used by Delphi applications Packages enable us to place portions of our application into separate modules that can be shared across multiple applications. Packages, also, provide a means of installing (custom) components into Delphis VCL pallete. Therefore, basically two types of packages can be made by Delphi: Run-time packages - provide functionality when a user runs an application - they operate much like standard DLLs. Design-time packages - used to install components in the Delphi IDE and to create special property editors for custom components. Design packages From this point this article will deal with run-time packages and how they can help Delphi programmer. One wrong mit: you are not required to be a Delphi component developer to take advantage of packages. Beginner Delphi programmers should try working with packages - theyll get better understanding of how packages and Delphi work. When and when Not ot Use Packages DLLs are most commonly used as collections of procedures and functions that other programs can call. Besides writing DLLs with custom routines, we can place a complete Delphi form in a DLL (for example an AboutBox form). Another common technique is to store nothing but resources in DLLs. More information on how Delphi operates with DLLs find in this article: DLLs and Delphi. Before going on to comparison between DLLs and BPLs we have to understand two ways of linking code in an executable: static and dynamic linking. Static linking means that when a Delphi project is compiled, all the code that your application requires is directly linked into your applications executable file. The resulting exe file contains all the code from all the units that are involved in a project. Too much code, you might say. By default, uses clause for a new form unit list more than 5 units (Windows, Messages, SysUtils, ...). However, the Delphi linker is smart enough to link only the minimum of code in the units actually used by a project. With static linking our application is a standalone program and doesnt require any supporting packages or DLLs (forget BDE and ActiveX components for now). In Delphi, static linking is the default. Dynamic linking is like working with standard DLLs. That is, dynamic linking provides functionality to multiple applications without binding the code directly to each application - any required packages are loaded at runtime. The greatest thing about dynamic linking is that loading of packages by your application is automatic. You dont have to write code to load the packages neither you have to change your code. Simply check the Build with runtime packages check box found on the Project | Options dialog box. The next time you build your application, your projects code will be linked dynamically to runtime packages rather than having units linked statically into your executable file.

I dont know chose the one that fits the story Essay

I dont know chose the one that fits the story - Essay Example Many examples are given in this paper of how Gates has used monologue as an exposition device to convey his audience his intended message. The paper concludes with a concise summary of the main points in the paper. To begin with, Henry Gates begins this memoir by drawing a vivid picture of how their kitchen looked like when he was young, Gates says, â€Å" we always has a gas stove in the kitchen, in our house in Piedmont, West Virginia where I grew up. Never electric, though electric became fashionable in Piedmont in the sixties, like using Crest toothpaste rather than Colgate, or watching Huntley or Brinkley†. In this quotation, Gates gives a perfect exposition of his family’s kitchen and lifestyle when he was young and growing u. This exposition is meant to connect his audience with his childhood lifestyle. The use of monologue as an expository device helps Gates to connect his audience with his childhood lifestyle in a very clear way. In explaining his humble background, Gates says the following, â€Å"Mama would wash her hair over the sink, towel wrapped over her shoulders, wearing just her slip and her white bra. (We had no shower- just a galvanised tub that we stored in the kitchen†¦Ã¢â‚¬ . This quotation expresses the humble background of Gates, the fact that Gates’ family did not have shower, but just a galvanised tub that they stored in the kitchen means that Gates’ family was poor. Gates uses monologue to make this exposition about her poor and humble background. Through the use of monologue as a literary device in this exposition, Gates connects his audience with his humble background. This exposition will help his audience to better understand the main message that he wants to express in this memoir. It is good to note that Gates’ intended audience in this memoir is the Black Americans who were constantly trying to emulate the white people’s standard of beauty. Through the exposition of his humble background, Gates intended audience will be

Fundraising Plan Essay Example | Topics and Well Written Essays - 1000 words

Fundraising Plan - Essay Example The fundraising extends a period of three weeks, a period within which the managers will develop and trade various products and services before culminating into a large fundraising dinner on 14/11/2014 at the University’s pavilion. The fundraising is a way for the university’s teams to involve the community in its development. The teams seek to enjoy financial independence by creating an effective management team that will oversee the utilization of all its resources for posterity of athletics in the society (Tullberg, 2006). Hill toppers has been the name of the university’s team since 1925. The teams take part in different sporting events thereby contributing to the extracurricular development of the students. Additionally, the sports offer the students with an effective platform to interact and develop their management skills. The teams have grown concurrently with the University (Blick, 2011). Since 2005, Hill toppers has achieved great success owing to the effective management of the teams. The teams have a history of raising funds to acquire resources and enhance the success of the teams. In 2007 for example, the teams raised two hundred thousand dollars for the development of both a soccer and football pitches within the university. The success of the fundraising event enhanced the performance of the two sports a feature that informs the current even which sees to raise adequate resources for refurbishing the entire university’s sport’s fraternity. The fundraising’s strengths include the diversity of the services and products. This implies that the fundraising will raise money from numerous sources. Additionally, the large duration coupled with the large number of interested stakeholders ensures that the project exhausts all its resources. Its weakness on the other hand is the huge sum it seeks

Economic Report Essay Example | Topics and Well Written Essays - 1750 words - 1

Economic Report - Essay Example Percent Change in real GDP: As is evident from the description of the GDP figures, the percentage changes in real GDP during the period happened to be in proportion. In 1982 the negative growth of GDP indicates towards some serious issues in the domestic economic environment. But thereafter, the growth percentage has been consistent and positive. Year 1984 saw the maximum increase in percentage terms. Civilian Unemployment Rate: The year 1982 is once again seen as the problematic year for the country with the overall unemployment rate rising to 9.7 percent, the highest during the tenure. The gradual decline of the unemployment rate in later years during the tenure points towards the people friendly policies taken up by the government of Ronald Reagan. Civilian Unemployment Rate by Demographic Characteristics: Dividing the unemployment rate demographically, we find that that the Black population seems to be the worst affected. The situation is particularly severe in the age groups of young black community (16-19 yrs). Though it improves somewhat after that, but still things remain worrying for community. Consumer Price Index: The CPI did not see major shakeup during the tenure of President Ronald Reagan. The index saw a consistent rise from 1981 to 1989. The index seems to have spread well over different items, with goods and services forming the major component flaring up the consumer price index. Starting with the overall consumer price index of 90.6 in 1981, the country saw the index rising to 124 by the year 1989. Changes in Consumer Price Indexes for commodities and services: During the entire tenure of President Reagan, except the year 1986, the CPI rates of growth were very high. During this year the energy consumption seems to be one of the lowest actually, with negative growth of 19.7. George H.W. Bush (1989-1993): The tenure of Bush senior too remained quite eventful in the sense that the world saw major

A worn path Essay Example | Topics and Well Written Essays - 500 words

A worn path - Essay Example sion, one incident shows the roundness of her character as she picks up the nickel that slides from the Hunter’s pocket, â€Å"God watching me the whole time. I come to stealing† (Welty, 3) This god fearing nature is also typical of her age and racial background who had none but God to trust their fate upon and hence needs to fear them at times. The sole aim of her life is to save her grandson and for that reason she even opts for stealing but her realization that of the commission of her guilt is unmistakable.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Other characters of the story are also of round type. The hunter, for instance, initially appears to be harsh but when he sees that the old woman does not fear death, softens his tone and admires her courage. The nurse and the attendant though both of them spoke initially with the old woman in a harsh note but finally sympathize with her. These ups and downs are signs of a normal human nature. As these traits have reflected from the approach of all these characters, thus, neither of those can be classified as flat characters. The main aim of literature is to reflect different dimension of life and due to the roundness of characters, the story has become a real depiction of life. The treatment of a poor, racially inferior old woman normally initializes with a poor welcome. The disadvantage of old age, economic backwardness and also racial inferiority has been reflected here. However the author does not forget to bring out the courage, typical of a black woman through the other characters’ behavior after knowing her. All the characters she meets later become kind towards her. However the woman indulges in the act o stealth but earns the readers sympathy when they know her cause.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Though is determined to save the life of her grandson yet she remembers her self-dignity. Thus, during the time of picking up the nickel she feels the bite of her conscience. Later on, at the doctor’s chamber in the town, when the attendant offers her to

Operations Management Essay Example | Topics and Well Written Essays - 2000 words - 1

Operations Management - Essay Example It is evident from the study that service and manufacturing supply chains share a lot more in common than the way they differ. In the process of delivering service products, manual processes that require human beings is involved. So, the solutions that use standardization and automation in improving operation efficiency in the service industry are less applicable. In addition to this, the labor intensive industries require more advanced scheduling systems so that they can coordinate effectively the prefaces of commonalities. The customers in the service industry play a great role in the delivery of services during the delivery process or even the service initiation process unlike in the manufacturing business. A good example is the electronic repair service. The involvement of customer delivery has an impact in service heterogeneity and impacts the service quality. The distinctive needs by the customers do change the content of each service product offered. As a result, it makes the service quality hard to measure and also monitor. The service which is provided by the service industries is often intangible for instance; education is one of the services. Intangibility leads to three issues: First, it’s difficult to score, secondly, it’s difficult to account for and thirdly, it’s difficult to identify suppliers. An intangible good as many believes can only be stored in books. This characteristic then shifts the focus of management from buffering by inventory to ensuring capacity flexibility and also managing capacity. One of the ways in which service procurement can better be controlled is by implementing a two-way match of the service receiving process. Here, the purchasing documents as well as the invoices are matched upon receiving and this process includes matching of the invoice, purchase order and shipping document in manufacturing. Unfortunately, in the service receiving process, counting of physical goods is a missing link. It becomes difficult in the start of the procurement process to identify the suppliers. The service buyer is not always sure of the specification of the service been procured. In addition to this, due to the intangibility of the service, you find that the service quality is very hard to measure (Andrew & Michael 2005). Simultaneity of production and consumption: Unlike in the case of the manufactured good, the services are created and consumed at the same time. You find that once the service has been created, there is no lead time in the middle to buffer against uncertainties. Combined with difficulties in storing these services, it isn’t surprising seen that a flexible capacity is vital to the success of a service supply chain (Andrew & Michael 2005). Customer supplier duality: A good example to explain duality is the electronic repair service. Here, you find that a customer supplies the malfunctioning electronics and in return,