Research in business critical analysis Essay Example | Topics and Well Written Essays - 1500 words

Research in business critical analysis - Essay Example Trend in the wave of globalization, with its effects of unifying behaviour and practices across the world however promises to bridge the diversity gap and it is important to understand the extent of existing gap in order to succeed in foreign operations. This review focuses on developed information on ethical and legal environments in the East Asia to inform a study that seeks to identify significant legal and ethical factors in the region. Review History of legal and ethical environments in East Asia International law establishes the basis for legal factors in a multinational corporation’s environment. An organization that operates in the international scope is subject to treaties between the host country and the countries in which the corporation operates. Secondary to the treaties may be laws in the host country and laws in the countries of operation and these requires knowledge of contemporary legal environment for a multinational corporation in order to integrate all appl icable laws in the organization’s scope of operations. Some of the bases of legal requirements for the multinational corporations, according to Mayer and O’Toole, have been â€Å"bribery, competition, cronyism, and public governance,† human rights and fair treatment of stakeholders (2013, p. 159). History of the East Asia region suggests existence of longitudinal and cross sectional differences in the region’s macro-environment to require a point analysis. Political environment in the region has changed with secondary effects on social, economic, and legal issues and this suggest legal and ethical environment in the region are dynamic. Differences in social perceptions across the region’s countries also mean that applicable ethical issues may vary and multinational corporations that operate of intend to operate in the region must be sensitive to such differences, however small they may seem. The legal environment that remains susceptible to politic al forces also remain dynamic within and across countries and multinational corporations must not only be informed of existing legislations, but must be mindful of the level of volatility of political environments in each member country of the East Asia region. Existence of many levels of legislative authority such as regional and bilateral and incorporation of the region’s developed legislation in international agreement with countries that wish to trade with members of the region explain diversity in the legal environments. This is because the regulations by the different levels remain binding on operations within their jurisdictions and the vast number of such levels in the region means that numerous regulations exist and the regulations may change with changes in leadership within each level of legislative authority (Ebrey, Waithall and Palais 2009, p. 20; Cheng and Cheng 2010, p. 12, 13). Dynamism in the values, which could be effective on ethical values among the region ’s natives and ethical obligations among foreign corporations, has also been reported in the area. Expansion of the region’s economic potentials in the 1990s let to infiltration from other cultures such as the West. Western values and formalities became benchmark and led to criticisms of the region’s values and practices. Even though the region managed to resist assimilation of the western culture in total, the two cultures have

Tax evasion case Essay Example for Free

Tax evasion case Essay Introduction Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned, or overstating deductions. Tax evasion is an activity commonly associated with the informal economy. One measure of the extent of tax evasion (the tax gap) is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported. There is a difference between tax minimization/avoidance and tax evasion. All citizens have the right to reduce the amount of taxes they pay as long as it is by legal means. In contrast, tax avoidance is the legal use of tax laws to reduce ones tax burden. Both tax evasion and avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that intend to subvert a states tax system, although such classification of tax avoidance is not indisputable, given that avoidance is lawful, within self-creating systems. Tax evasion in India Tax evasion has always been a criminal offence in India. There are a number of provisions relating to prosecution under Chapter XXII of the Income-tax Act, 1961. Failure to file timely return of income, false statement and verification, willful attempt to evade tax, fabrication of accounts and documents and failure to deposit tax deducted or collected at source attract minimum rigorous imprisonment of three/ six months. Removal, concealment, transfer or delivery of property to thwart tax recovery or failure to afford necessary facilities for the officers during search operations are some more offences liable for rigid sentences. Abetment of false return, where it is  proved, would land not only the accused in trouble but those who help him, including those rendering professional assistance, providing for a rigorous imprisonment for a minimum period of three/ six months and a fine. Where the offence is rendered by a firm or company partners and the officers, including directors of t he company, may be responsible, unless they are able to prove that the offence was committed without their knowledge in spite of due diligence on their part. For the offence of the Hindu Undivided Family (HUF), the karta himself, besides all members, is deemed to be guilty, unless such members are able to prove that the offence was committed without their consent or connivance. Enforcement of law is also made easier for prosecution by statutory presumptions of culpable mental state placing the responsibility of proving innocence on the accused. Probation of Offenders Act, 1958, is not applicable for economic offences under the income-tax law, except for persons below 18 years of age. The law in India treats tax offences not only as a criminal offence but also has strengthened the same by statutory presumptions and minimum rigorous imprisonment subject to a maximum period of seven years. There are number of prosecutions launched year after year. It is difficult to accept that tax administration in India is â€Å"notoriously† slack and that there is a lot of political interference. More often the Department is known for its overzealousness, while the tax officers are comparatively independent protected by law. If they yield to political pressure, it cannot be solely the fault of the politicians. There are numerous instances, where the officers have not yielded to pressure from any quarters. If there is still significant tax evasion, it is as much a part of the system of limited scrutiny in vogue for the past several years and more probably because of all pervading corruption against which stiffer action is certainly necessary. As for comment relating to the proposed Direct Taxes Code Bill, 2010, provisions relating to prosecutions under Chapter XV in the proposed Code do not lighten the severity of the provisions under the present Act. The word â€Å"concealment† is not used in the context of prosecution either under the present Act or the proposed legislation. But there are provisions to tackle defaults of every kind. As regards penalty, the Code provides for levy of penalty automatically, wherever there is a difference between reported and assessed income. The removal of the word â€Å"concealment† takes away the need for inference of  intent to keep back any information relating to assessment. The law in the Code makes no difference between the delibe rate delinquency and the innocent omission so that the Code, as in most other aspects, is more stringent on the taxpayer. India loses 14 trillion rupees ($314 billion) from tax evasion annually, depriving it of funds for investment in roads, ports, and power, says Arun Kumar, author of The Black Economy in India. General government tax revenue is an estimated 18 percent of India’s $1.5 trillion in gross domestic product, the lowest among the four BRIC nations, International Monetary Fund data show. With so little revenue coming in, Prime Minister Manmohan Singh is now attempting India’s biggest overhaul of the tax code in half a century. Investors say tax reform would boost their confidence. â€Å"If the government does end up making a substantial amount in revenue as a result of the tax overhaul, their deficit requirements should come down and the interest burden will also come down,† says Killol Pandya, Mumbai-based head of fixed income investments at Daiwa Asset Management (India). About Anurag Kashyap Anurag Singh Kashyap (born 10 September 1972) is an Indian film director, producer and screenwriter. He famously is termed as an Art filmmaker who loves dark and real concepts. Kashyap made his directorial debut with as yet unreleased Paanch, with Kay Kay Menon as the lead. As a filmmaker, he is known for Black Friday (2004), a controversial and award-winning Hindi film about the 1993 Mumbai bombings, followed by No Smoking (2007), Dev D (2009), Gulaal (2009), That Girl in Yellow Boots(2011) and Gangs of Wasseypur (2012). As a screenwriter, he wrote the scripts for theFilmfare Award-winning Satya (1998) and the Academy Award-nominated Canadian filmWater (2005). He founded his film production company, Anurag Kashyap Films Pvt. Ltd. in 2009. In 1999, Kashyap won the Best Screenplay award for Satya at the Star Screen Awards. The next year, his short film Last Train to Mahakali won the Special Jury Award at the same awards. His feature film debut Black Friday won the Grand Jury Prize at the 3rd Annual Indian Film Festival of Los Angeles (2005), and was a nominee for the Golden Leopard (Best Film) at the 57th Locarno International Film Festival (2004). In 2010, he announced his association with Tumbhi where he  and his team will make six short films for Tumbhi and start his blog with them, as well. He was listed on the The DNA power list: Top 50 influentials, a list of 50 most influential Indians in 2011. Soon, he will be awarded with a cultural achievement award in the Cannes Film Festival. Kashyap currently serves on the board of Mumbai-based NGO, Aangan Trust, which helps protect vulnerable children around India. He is one of the most influential and important directors in India. Gangs of Wasseypur are a huge commercial and critical hit. Legendary Hollywood film-maker Martin Scorsese wrote to Kashyap, saying how much he loved Gangs†¦and Dev D. The two will be spending 15 days together at the end of the year. Kashyaps first big-budget film, Bombay Velvet, being co-produced by Fox Studios, went on the floors this month. Hes getting to direct Amitabh Bachchan, whose movies of the 70s greatly influenced him, for a fiction TV show. Megastars such as Shah Rukh Khan are keen to work with him. An Amitabh and a Ranbir working with me means they are coming midway, they want to do something different and dont want to be slaves of their image. That says a lot. We both are meeting midway. A Ranbir is as good or an even better actor than a lot of those on the fringes, says Kashyap. Case description Anurag Kashyap is in a light spot. The filmmaker has been held by the Service Tax department officials who have been keeping an eagle eye on B-town celebs for defaulting on taxes. From what we hear, the ST officials carried out an extensive investigation at Kashyap’s Yari road office in Mumbai a couple of weeks back and later charged him guilty for service tax evasion of Rs 55 lakh. Based on this, the director-producer was asked to appear before the Service Tax Department on August 22, but he failed to do so and sent his representatives to deal with the matter. Hence, Anurag’s accounts got sealed and he has now requested the department to grant him time until September 3. A team of officers from the Service Tax Department visited Anurag Kashyap’s office at Yari Road on 26 August between 2 pm to 10:30 pm and found him â€Å"guilty of Service Tax evasion to the tune of Rs 55 lakhs.† Anurag Kashyap was then summoned to appear before the Service Tax Commission on 27 August. But as he was still in Sri Lanka, he sent a representative. On the following day, his bank accounts were frozen, and now the ‘Gangs of Wasseypur’. Sameer Wankhede, Deputy Commissioner of the Service Tax Department confirmed that a case had been booked against Anurag Kashyap. A Service Tax official said, â€Å"Section 89 of the Finance Act says that if you have not paid your service tax to the tune of Rs 50 lakh for a period of six months, the defaulter can face imprisonment for a period of seven years and it is a non bail able offence. As of now, we have detected that Anurag has defaulted on over Rs 50 lakh. First it was the films budget that shot up by Rs 23 crore, thanks to the sinking INR and now the director has landed in legal tangles with the Service Tax Department. Anurag kashyap also has been accused of not filling taxes from the business he runs side by side. He is involved in the fashion industry and manufactures designer clothes for celebrities. This company is run under his ownership and is looked after by his wife. He has had a huge profit of approximately 2 crores in the year 2012 and he has not turned up to pay the taxes for it. It has also been reported that he had not paid wealth tax which amounts to 30cr. including the ornaments that he owns. According to the income tax authorities he is liable to pay a tax of 30 lakhs. Questions 1) Discuss the whole case in detail. 2) Evaluate the total tax that he is liable to pay according to the tax department authorities 3) Discuss the payment methods of these taxes in India. 4) How can the dispute be settled? 5) What is the future of these taxes in India? Ans 1) Analysis of the case The above described case is of the famous bollywood film-maker Anurag Kashyap. According to this case he failed to submit a service tax which amounted to Rs. 55 lakhs. After he gained a hug profit of 23 crore at the box office from his film Gangs of Wasseypur, he was supposed to submit this amount as service tax which he failed to do, and thus he had a raid by the  income tax officials in his office. He was found guilty and his accounts were immediately ceased. The second tax that he failed to pay is the income that he is earning from the house in the name of his daughter. Under this head, tax amounts to rs. 000. This income is taxed under the income from other sources. The second tax evasion that the income tax authority finds him guilty of is the income from his designer clothes manufacturing company which was supposed to earn a profit of 19000000. He has tried not to show this income as a part og his total taxable income. The income tax authority says that the total tax due under this head should be around 55lakhs Anurag Kashyap has been found guilty of not paying tax under three heads i.e. service tax, earnings from other sources, and wealth tax. Ans 2) Calculation of the total tax Service tax; Total earnings in the year 2012-13 from the box office Rs.23,00,00,000 Taxable income after the net deductions Rs. 4,45,00,000 Service tax (@12.36% (10+2+1) = 55,00,000 wealth tax: total taxable wealth Rs.3,00,00,000 rate of wealth tax (1% over 30lakhs) Rs.27,00,000 tax from business and proffession: profit a/c to profit and loss account Rs. 1,90,00,000 income tax payable Rs. 55,30,000 Education Cess @ 2% Rs.110600 Secondary and Higher Education Cess @ 1% Rs. 55300 Total (Rs. 55lakhs+27lakhs+ 5695900) = Rs.1,38,95,900 Ans3) Pament of service tax in india Service tax is envisaged as the tax of the future. Well synchronized taxation on manufacturing, trade (domestic international) and service without giving rise to cascading effect of taxation would be an ideal worth pursuing in the immediate future. This would bring in VAT in its truest sense, though the ultimate objection ushers in the regime of Goods and Service Tax (GST). Continued growth in GDP accompanied by higher rate of growth in service sector promises new wider avenues of taxation to the Government. If the tax on services reduces the degree of intensity of taxation on manufacturing and trade without forcing the Government to compromise on the revenue needs, then one of the basic objectives of taxing the service sector would be achieved. Voluntary tax compliance on the part of taxpayers demands prudent accounting practices and transparency in the conduct of their business. Marginal rates of taxation would be conducive in this process. Many new services may be brought under the tax net in future. The inclusion of all value added services in the tax net would yield larger amount of revenue and make the existing tax structure more elastic. Advanced economies of Western Europe, North America and Far East have share of service sector in their GDP ranging from 60% to 80%. The growth in absolute quantum of GDP and proportion of Service-sector in GDP holds promise for larger revenue generation without increasing the existing level of taxation The Goods and Services Tax (GST) is a Value Added Tax (VAT) to be implemented in India, the decision on which is pending. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services. India is a federal republic, and the GST will thus be implemented concurrently by the central and state governments as the Central GST and the State GST respectively. Exports will be zero-rated and imports will be levied the same taxes as domestic goods and services adhering to the destination principle. The service tax rate in india is 12% which is calculated on the net taxable income. It also includes an education cess of 2% and a senior higher secondary cess of 1%. Thus a consolidated percentage of 12.36% is calculated on the taxable amount. According to the case the director was liable to pay a roundabout sum of Rs.55 lakh on a profit of 23crore which he earned last year. Payment of wealth tax in India The Wealth Tax Act 1957 is governed by the Income Tax department that falls under the Department of Revenue. Just like Income Tax, Wealth Tax forms a part of annual assessment. It is a type of direct tax that is levied on individuals that fall under its purview. This is a tax that is charged on the net wealth of those who fall under its purview. The benefits that you derive from ownership of property are taxed under this head. Other assets that come under the purview of wealth tax are motor car, aircrafts, and yachts, cash in hand, jewellery etc. You are required to pay wealth tax on yearly basis on the market value of your property irrespective of the fact that it generates any income for you or not. Wealth Tax is Applicable To: Individuals, Companies, Hindu Undivided Families (HUFs) The Wealth Tax as of now is 1 percent on the net taxable wealth of the assessee that exceeds the limit of Rs 30 Lacs. Assets that are charged under Wealth Tax in India House Property (Guest House, residential house or commercial) Urban Land Boats, Aircrafts and Yachts Motor Car Cash in Hand (subject to certain limits) only for HUFs and Individuals Jewellery, Gold Utensils, Silver, Bullions etc All assets that are transferred by individuals to their minor children and to spouse for considerations that are inadequate also fall under the purview of wealth tax. Payment of income from business and profession For charging the income under the head Profits and Gains of business, the following conditions should be satisfied: There should be a business or profession. The business or profession should be carried on by the assessee. The business or profession should have been carried on by the assessee at any time during the previous year. Income that will be chargeable to income tax under the head Profits and gains of business or profession’ The following income would be chargeable under the head Profits and gains of business or profession: The profits and gains of any business or profession, which was carried on by the assessee at any time during the previous year; Any compensation or other payment, due or received by the following:- Any person, by whatever name called, managing the whole or substantially the whole of the affairs of an Indian company, at or in connection with the termination of his management or the modification of the terms and conditions relating thereto; Any person, by whatever name called, managing the whole or substantially the whole of the affairs in India of any other company, at or in connection with the termination of his office or the modification of the terms and conditions relating thereto; Any person, by whatever name called, holding an agency in India for any part of the activities relating to the business of any other person, at or in connection with the termination of any agency or the m odification of the terms and conditions relating thereto; Any person, for or in connection with the vesting in the Government, or in any corporation owned or controlled by the Government, under any law for the time being in force, of the management of any property or business; Income, derived by a trade, professional or similar association from specific services performed for its members; Profits on sale of a license granted under the Imports (Control) Order, 1955, made under the Imports and Exports (Control) Act, 1947; Cash assistance (by whatever name called), received or receivable by any person against exports under any scheme of the Government of India; Any duty of customs or excise repaid or repayable as drawback to any person against exports under the Customs and Central Excise Duties Drawback Rules, 1971; The value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession; Any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or rece ived by, a partner of a firm from such firm. However, it is provided that where any interest, salary, bonus, commission or remuneration, by whatever name called, or any part thereof has not been allowed to be  deducted under Clause (b) of section 40, the income under this clause shall be adjusted to the extent of the amount not so allowed to be deducted. Deductions that are allowed in computing income from profits and gains of business or profession A number of other deductions under Section 36 of the Income-Tax Act are allowed while computing income from profits and gains of business or profession: S36 (i): The amount of any premium, paid in respect of insurance against risk of damage or destruction of stocks or stores, used for the purposes of the business or profession; (ia) The amount of any premium, paid by a federal milk co-operative society to effect or to keep in force an insurance on the life of the cattle owned by a member of a co-operative society, being a primary society engaged in supplying milk, raised by the members of such federal milk co-operative society; (ib) The amount of any premium, paid by cheque by the assessee as an employer to effect or to keep in force an insurance on the health of his employees under a scheme, framed in this behalf by the General Insurance Corporation of India, formed under section 9 of the General Insurance Business (Nationalization) Act, 1972 (57 of 1972) and approved by the Central Government; (ii) Any sum, paid to an employee as bonus or commission for services rendered, where such sum would not have been payable to him as profits or dividend if it had not been paid as bonus or commission; (iii) The amount of the interest paid in respect of capital borrowed for acquisition of the asset from the date it is put to use for the purposes of the business or profession; (iv) Any sum, paid by the assessee as an employer by way of contribution towards a recognized provident fund or an approved Superannuation fund, subject to such limits as may be prescribed for the purpose of recognizing the provident fund or approving the Superannuation fund, as the case may be; and subject to such conditions as the Board may think fit to specify in cases where the contributions are not in the nature of annual contributions of fixed amounts or annual contributions, fixed on some definite basis by reference to the income chargeable under the head Salaries or to the contributions or to the number of members of the fund; (v) Any sum, paid by the assessee as an employer by way of contribution towards an approved gratuity fund created by  him for the exclusive benefit of his employees under an irrevocable trust; (va) Any sum, received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the assessee to the employees account in the relevant fund or funds on or before the due date. (vi) In respect of animals which have been used for the purposes of the business or profession, otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the difference between the actual cost to the assessee of the animals and the amount, if any, realized in respect of the carcasses or animals; (vii) Subject to the provisions of sub-section (2), the amount of any bad debt or part thereof which is written off as irrecoverable in the accounts of the assessee for the previous year; (viia) in respect of any provision for bad and doubtful debts made by the following: A scheduled bank or non scheduled bank, an amount not exceeding five per cent of the total income and an amount not exceeding ten per cent of the aggregate average advance made by the rural branches of such bank computed in the prescribed manner; A bank, being a bank incorporated by or under the laws of a country outside India, an amount not exceeding five per cent of the total income; public financial institution or a State financial corporation or a State industrial investment corporation, an amount not exceeding five per cent of the total income. (viii) In respect of any special reserve created by a financial corporation which is engaged in providing long term finance for industrial or agricultural development in India or, by a public company formed and registered in India with the main object of carrying on the business or providing long term finance for construction or purchase of houses in India for residential purposes, an amount not exceeding forty per cent of the total income can be carried to the reserve account; (ix) Any bona fide expenditure incurred by a company for the purpose of promoting family planning amongst its employees; (x) Any sum, paid by a public financial institution by way of contribution towards any Exchange Risk Administration Fund, set up by public financial institutions, either jointly or separately. (xi) Any expenditure, incurred by the assessee on or after the 1st day of April 1999 but before the 1st day of April 2000, wholly and exclusively in respect of a non-Y2K compliant computer system, owned by the assessee and used for the purposes of his business or profession, so as to  make such computer system Y2K compliant. (xii) Any expenditure (not being in the nature of capital expenditure) incurred by a corporation or a body corporate, by whatever name called, constituted or established by a Central, State or Provincial Act for the objects and purposes authorized by the Act, under which such corporation or body corporate was constituted or established. It is important to note that deductions are subject to certain conditions being satisfied. Deductions allowed in respect of rent, rates, taxes, repairs and insurance for premises, which are used for the purpose of business or profession? S 30: The deductions that are allowed while computing income from profits and gains from business or profession in respect of rent, rates, taxes, repairs and insurance for premises, which are used for the purpose of business or profession while computing income from profits and gains from business or profession are as follows: Where the premises are occupied by the assessee: 1. As a tenant, the rent paid for such premises; and further if he has undertaken to bear the cost of repairs to the premises, the amount paid on account of such repairs; excluding expenditure in the nature of capital expenditure. 2. Otherwise than as a tenant, the amount paid by him on account of current repairs to the premises; excluding expenditure in the nature of capital expenditure. Any sums, paid on account of land revenue, local rates or municipal taxes; The amount of any premium, paid in respect of insurance against risk of damage or destruction of the premises. Deductions to be allowed in respect of repairs and insurance of machinery, plant and furniture. The following deductions shall be allowed in respect of repairs and insurance of machinery, plant and furniture: The amount paid on account of current repairs thereto; excluding expenditure in the nature of capital expenditure. The amount of any premium, paid in respect of insurance against damage or destruction thereof. Ans 4) Settlement of disputes Settlement of disputes could be done through Norms of industrial disputes act 1947 Work committee Voluntary arbitration Court of enquiry Ans 5) Future of service tax in India Service tax in India was introduced in 1994-95 to correct the asymmetric treatment of goods and services in the tax framework and to widen the tax net. Need to introduce service tax was felt due to the fact that service sector contributed to around half of GDP but it wasn’t taxed. The numbers of services liable for taxation were gradually raised from 3 in 1994-95 to virtually all service in budget 2012-13 except for the services enlisted in the negative list. The negative list includes the services by Government or a local authority, services by the Reserve Bank of India, Services by a foreign diplomatic mission located in India, services relating to agriculture, Service of transportation of passengers, Funeral, burial, crematorium or mortuary services etc. In the last eight odd years, after a modest beginning, service tax had become one of the most important sources of government revenue. Budget 2012-13 increased the service tax rate from 10 percent to 12 percent. Already, a cess is imposed on all indirect taxes including service tax to finance secondary and higher education. In 2011-12, Rs 95,000 crores are expected to mop up through service tax and for 2012-13, target is to collect as much as Rs.1.24 Lakh crores. The increase in service tax is opposed by different section of the business community. At present, service sector contributes more than 55 percent of GDP and its share is likely to increase in future as it is poised to grow between 8-10 percent in next decade along with the reduced share of primary sector. This offers tremendous revenue potential to the Government. It is expected that in due course, service tax would reduce the tax burden on international trade (Customs duty) and domestic manufacturing sector (Excise duty). So a planned growth of service tax would be commensurate with the goals of economic  liberalization and globalization. This process requires levy of taxes on new services without substantial rise in the rate or cost of collection. The service tax promises many opportunities as well as challenges to realize the opportunities. For instance, increased revenue through service tax will help in bridging the fiscal deficit, finance the social services, reduce the burden on commodity taxes etc. The challenges include providing more simplified tax administration in the country which will reduce the tax evasion. Further, department should intensify the field survey operations to ensure that all taxable service assessees are brought into the tax net and service tax due from them are collected without hitch. While the basic tenet of voluntary compliance of service tax law has to be adhered to, the habitual evaders of service tax must be booked for appropriate action under the law. Effective use of Audit and Anti-evasion tools for ensuring the compliance on the part of the assessee and curbing the instances of irregularities and tax evasion are the need of hour. Greater emphasis should be laid on training the staff in Information Technology skills necessary to carry out effective, systematic and result oriented analysis of data available in the system, to achieve the target. Electronic Tax Administration (ETA) system for service tax should be effectively implemented so that service tax could be administered as a pioneer e-tax of the country. Adequate staff must be deployed along with suitable infrastructure and conveyance to implement service tax law effectively. In future, service tax will be integrated with commodity taxes to give rise to the Goods and Service Tax (GST). The proposed Goods and Service Tax is the part of the tax reforms that centre around evolving an efficient and harmonized consumption tax system in the country. Presently, there are parallel systems of indirect taxation at the Central and State level. The existing service tax system poses an imminent challenge to reform its synergies to eventually harmonize itself in the GST regime. Successful integration of goods and service tax would give India a world-class tax system and will bring in improved tax collection. In a way, it will boost our economy and enable us to compete at the global front. As a result, our system will eventually match the international standard in the sphere of indirect taxation. It will also end the long standing distortions  of differential treatments to the manufacturing and service sectors. GST would be a single comprehensive indirect tax to be levied on goods and services. It would be levied at every production and distribution chain with the eligibility to claim indirect taxes paid on procurement chain. Under the current regime, there is a fractured credit mechanism where businesses dont get credit for all the taxes they pay. The effort to prepare for a smooth integration with the GST without any hardship to public is a big challenge, which needs to be handled at the field as well policy level. GST is the future of all indirect taxes in India for which a consensus is needed between the central and state governments. It was supposed to be implemented from 1 April 2010 but is postponed every year due to lack of consensus. The delay in the implementation is causing loss to the tune of thousands of crores every year which could have gained in by increased efficiency. The central government should come forward with some form of incentive driven plan to bring the GST regime in the country which poised to put the fiscal administration of the country at higher level. References http://www.mbarendezvous.com/topimagearchives.php?id=355 http://www.caclubindia.com/quickfinder/service-tax-calculation-india.asp#.UiP7VdLdfJg http://www.bollywoodlife.com/news-gossip/anurag-kashyap-owes-rs-55-lakh-to-service-tax-department-will-he-be-arrested/ https://www.google.co.in/url?sa=trct=jq=esrc=ssource=webcd=3cad=rjaved=0CDkQFjACurl=http%3A%2F%2Fbusinessofcinema.com%2Fnews%2Fcould-anurag-kashyap-land-up-in-jail%2F98116ei=gfsjUsDVDYK0rAeAmoDQBgusg=AFQjCNHHk9zeHujTfzL_gqfBg2jryJF8Fgsig2=99AMtBdnEzLkH82GEohh-A http://articles.timesofindia.indiatimes.com/2013-08-30/news-interviews/41618212_1_anurag-kashyap-service-tax-department-bombay-velvet http://www.muskurahat.pk/bollywood-news/anurag-kashyap-bank-accounts-frozen-for-service-tax-evasion.html http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx http://web.tnmgrmu.ac.in/vc/articles/evadingtax.pdf

Effect of Motivation on Employee Training Effectiveness

Effect of Motivation on Employee Training Effectiveness Training is an integral part of workforce development and creation of new competencies within the workforce to ensure that the organization keeps up with the changing needs of the times. Training is related to performance in two ways. Effective training has a direct impact on the performance output and any gap in an individuals performance can sometimes be filled with training. For employees, lack of training also causes a lack of self-satisfaction and productivity. Training is seen as a major cost center in most organizations in India even though its necessity is widely accepted. This negative view can mostly be attributed because of the apparent lack of direct linkage between training and the bottom-line of the company. In todays world, where the HR department needs to justify its expenses, especially in the wake of recession and lay-offs, it is essential that the trainings rendered are of optimum efficiency in achieving the set target and also that it be done at the least possible cost. Hence it is important to understand whether the methods of training employed are yielding the desired results or alternatively if the same results can be attained in more cost effective ways. One major factor influencing the training effectiveness is training motivation, as we have explained in the literature review below. But the attitude of employees towards formal training is another factor which will decide whether it is justified to spend so much money on formal training modules if the same end result can be obtained by informal on the job training if it is preferred by the employees. Hence we explore the links between these constructs. Theoretical Review and Hypothesis: Training Attitude: Development activities like training are significantly affected by attitudes and perceptual variables (Noe and Wilk, 1993).Eagly Chaiken (1998) defined attitude as the psychological tendency to evaluate an entity with a certain degree of favor or disfavor. These attitudes are good predictors of behavior (Ajzen, 1991).We can extend this line of reason to say that a person with a positive attitude to certain entity will show favorable behavioral response towards it and a person with a negative attitude to it will show an unfavorable behavioral response. Training attitude applies the definition of attitude to training. A persons attitude towards training is a measure or reflection of his or her attitude towards the formal process of knowledge and skill acquisition. Thus we can say that training attitude is indirectly a measure of liking an individual has for the formal process of training as opposed to say learning something on-the-job informally. It logically follows that those who ha ve a positive attitude towards training will be more likely to attend the training programs willingly and gain from it as compared to someone who has a negative attitude towards training which is to say, that training attitude determines the motivation with which a person attends training programs, especially in an organizational scenario where training programs are mandatory. Also this very attitude can be linked to how much learning happens in the training. The scale for measuring the training attitude construct was developed by Anupama Narayan and Debra Steele Johnson (2007) for their research. This was a 20 item scale addressing participants evaluation of 2 issues: How relevant and useful they perceived training programs to be. How much they desired to practice acquired skills on job. This scale with 7 point likert type response pattern had a high level of internal consistency (alpha =0.92) However some items were redundant and for the purpose of this research were omitted. The resulting 9 item scale was again tested for internal consistency and displayed a Cronbachs Alpha= 0.91 which is fairly high. The response to the 7 point likert scale was interpreted as a summated score which indicated the degree of positive attitude towards training among the respondents. Training Motivation: Quinones (1997) aptly described motivation to be an individuals choice to dedicate more energy to one set of behavior over others. In the training context, Blanchard Thacker (2004) explain motivation as an inspiration which is directed by trainees personal needs and decision processes they use to satisfy those needs. Or, as Colquitt (2007) puts it , training motivation is the persistence and intensity of learning -directed behavior in the context of training. Training motivation is affected by a diverse set of internal and external factors as suggested by various research papers. Work environment, organizational climate, supervisory support etc are a few of the external factors researched upon whereas the internal factors hypothesized to affect training motivation include self efficacy, personal mental ability and personality (Colquitt et al, 2000). One of the most popular theories to explain motivation is the expectancy theory of how people are motivated by the results of their behavior (Bandura, 1997). We can also view Vrooms expectancy theory as a theoretical framework for examining training motivation. Vrooms model suggests that expectation of an act being followed by a certain outcome often shapes the motivation for doing that act. To extend this to the context of training motivation, if a trainee expects that the effort he puts into attending training programs will yield valued outcomes to him then he will be motivated to attend the same. Hence this research attempts to understand the valence -instrumentality link associated with training. We measure what the trainee values and whether he perceives those things to be outcome of training programs. A 14 item scale, with 7 items each for valence and instrumentality of factors associated with training, was adapted from the research paper by Phyllis Tharenou (2001).The factors of valence included in the scale are Reaching career goals, Pay increase, Job security, Change to workplace, Promotion or advancement, Opportunities for different career paths, Supervisor praise. The responses for these questions were taken on a 7 point likert scale and scores were summated to arrive at the level of training motivation of the respondent. A higher score symbolizes that the respondent values the inherent factors highly and also perceives that training will help him achieve the same. Training Effectiveness: Training effectiveness is essentially a measure of how effective the training imparted was. Many researchers including Ford (1997), Noe (1986), and Tannenbaum (1992) have recognized training effectiveness as a crucial issue for organizations. Employee performance and productivity can be measurably improved if trainings are effective and organizations will be able to avoid wasteful spending on ineffective trainings. Most organizations would want to have a good return on their training investment. According to London (1989) and Noe (1999) training interventions in organizations are going to increase hence the training effectiveness is going to be an important feature in the organizations. Kirkpatricks (1976) four level approach is one of the most extensively used methods for evaluating training effectiveness (Alliger Janak, 1989). This four level approach measures training effectiveness vis-Ã  -vis the trainees reactions to a training program, the extent to which trainees can execute desired behaviors related to the training, the acquisition of skills and knowledge by the trainee and resulting change in the job behaviors of the trainee. It has been a common assumption among researchers that these 4 levels linked in a linear fashion hierarchically. Hamblin (1947) illustrated the cause and effect chain as training leading to reactions which in turn leads to learning and that leads to change in job behavior. But this empirical evidence for this proposed link has been inconclusive. This led Alliger Janak (1989) to conduct a Meta analysis and conclude that the four factors are not necessarily linearly linked. There are several factors like training motivation attitude, context of training and other influences which attenuate the link between trainees reaction and other criterion measures. A four item shortened version of the Kirkpatrick scale was used for measuring the training effectiveness. The measured effectiveness was the perceived effectiveness of the last im parted training program. Sample items in the scale included questions like Did I enjoy the course. The response was obtained on a 7 point likert scale varying from strongly disagree to strongly agree and the summated score of each item response was used as the measure of the training effectiveness and higher the score higher was the perceived effectiveness of the training. Training Attitude and Training Motivation: Individuals disposition or attitude towards formal training programs has been shown to have a direct influence on his training motivation (Ford Noe, 1987). Training attitude also displays his motivation to learn (Tannenbaum Yukl, 1992) and his motivation to attend training (Facteau et al, 1995) as distinct from training motivation. What the above mentioned research suggests is that there is a logical and empirical link between a person liking a training program and being motivated to attend the same. However the extant literature mentions this relationship in a very general and broad format. We would like to hypothesis a more specific relationship. Going back to our definition of training motivation , we have said that it is the perceived valence the trainee associates with certain outcomes and how instrumental he feels attending a training is in order to acquire them .We listed these outcomes as career development, superior praise, promotion or development, pay increase , job secu rity etc. Research suggests that there is very strong link between training attitude and training motivation .Carlson et al.(2000) found a high correlation between training attitude scores and training motivation scores in their research.Now most employees may find that there is a perceived strong connection between attending trainings and achieving these outcomes and hence may attend trainings when they are mandatory rather than volunteer for it. But otherwise, based on his experience he might feel that training programs are a waste of time over all and he learns more on his job. Especially in the context of Indian manufacturing industry where trainings are mandatory, employees might not be predisposed to attending trainings, but will attend them anyways due to perceived benefits. Hence in this research we are testing whether having a positive attitude towards training increases the individuals training motivation and how much is it correlated. Hence, Training Attitude of an individual positively impacts his Training Motivation: Training Motivation and Training Effectiveness: Based on our understanding of motivation, an individual is more likely to expend more energy for a task he is motivated to do and hence is more probable to do that task more effectively than other tasks. Extending this logic forward if a person is motivated to attend training then he is more likely to enjoy the training, learn most from it and apply it on to his job. In other words the effectiveness of the training imparted will be high if the trainees entering the training program are highly motivated for the same. In the organizational context it is imperative that different individuals enter the training with different levels of motivation. These differences in the level of motivation may be an outcome of various factors like personal characteristics and work environments. After studying these effects, Salas et al.1(1992) hypothesized that individuals motivated to do well in training will be the ones who end up learning the content of the program better than their lesser motivated counterparts. Training effectiveness is measured in terms of 4 parameters derived from the Kirkpatricks model. These parameters are namely, Learning, Behavior, Reaction and Applications of skills. Several studies put forth empirical support indicating a link between trainees motivation and learning (Rails Klien, 1991; Clark 1990; Hicks Klimoski 1987; Baldwin et al., 1991).The attention levels and openness to new ideas is increased by pre-training motivation. Hence theoretically trainees who are more motivated should be more ready or primed to learn and apply their learnings. Also a person motivated to attend the training will be more likely to enjoy it thus displaying a positive reaction. Whereas a person who is unmotivated to attend training will not learn much from the training even if he ends up enjoying the experience (Mathieu et al., 1992). Consequently we also hypothesize a direct relation between how much the trainee learns and how much he is motivated about the training to how much of the learned skills he will apply in his job. Thus training motivation can be hypothesized to bring about change in behavior of the trainee as well. Based on the above reasoning we state out second hypothesis as, Training motivation positively impacts training effectiveness Training Attitude and Training Effectiveness. Hicks and Klimoski (1987) attempted to study the effect of choice of attending the training program with effectiveness of the training program. They hypothesized that if trainee had a choice of attending a training program then he will be more satisfied by it than otherwise. Ryman and Biersner (1975) also studied the effect of choice on training outcome. They found that giving a choice to attend the training program resulted in lesser dropouts from the program and greater training success. In a slight variation of this experiment, Baldwin, Magjuka and Lober (1991) reported that when trainees received their top choice from the available training programs they reported higher pre training motivation and. They also learned more as compared to other trainees who did not get their top pick. Tannebaum et al. (1992) showed by way of their research that individuals who nominate themselves for training actually attach a greater instrumentality to the program and report higher training motivat ion than others. This in turn leads to greater training effectiveness. The same was researched upon and confirmed by Gormley, Collins et al. (2009) on their study on Medical students undergoing E-learning programs. In our research we would like to extend the above findings to the context of training attitude. Training attitude can be seen as the pre disposition of the individual towards attending training. If the individual has a positive attitude towards training then he will choose to attend the same whereas if he has a negative attitude towards training he will not attend it or attend it grudgingly if forced to the same. Hence incorporating Tannenbaums findings, we can say that people who attend training against their choice will not undergo an optimally effective training. Hence we hypothesize that only people who choose to attend the training by way of their positive attitude towards it will be more motivated about the training and hence consequently the training imparted to them will be effective. No previous research has aimed to study this mediating effect of training motivation on the relationship between Training attitude and training effectiveness and this is the gap we propose to fi ll by means of our research. We hypothesize that Training effectiveness is impacted by Training Attitude of the individual via the mediating variable of training motivation. Training attitude positively affects training effectiveness. Training Motivation acts as the mediating variable on the relationship between Training Attitude and Training Effectiveness. Moderating Effect of Prior Work Experience: Goldstein (2002) stated in his research that training transfer happens more effectively if tasks in the training environment are congruent with those in the actual work environment. Typically the young Indian professional fresh out of college will prefer the formal training programs as he is not exposed to any other way of learning. However as we have talked about training attitude it is important to study the effect of previous trainings on the individuals attitude. Employees who have undergone much training and have worked for enough years in the organization may have seen other methods of learning their job or skill apart from formal training programs to form different attitudes about training than those who have very little work experience. Learning On -the-job takes place within the workplace while the employee is doing actual work in the actual work environment under normal working conditions. This is important because it ensures that skills taught in such informal training can be readily transferred to the job (Kleiner Read, 1996). Work based learning focuses on reviewing and learning from experience and is cantered on learning from action rather than simply developing competencies (Dymock Gerber, 2002). Since the employee is trained in normal working condition, there is a high sense of relevance and validity to the employee (Clifford Thorpe, 2007) and is a tool to increase the productivity (Jain, 1999). Learning on the job happens on an individual level and the greatest advantage of this is that it enables each participant to determine the speed with which learning can proceed, at the same time providing a high level of feedback and trainee involvement (Kleiner Read, 1996). Other advantages are that the employee is being productive during training, and thus the associated costs may be less (Kleiner Read, 1996); this training may be given to more people than it is possible at a training institution (Jain,1999). Thus we can see that on the job learning may be perceived to be more effective than formal trainings by employees with greater years of work experience behind them. This could also possibly affect their attitude towards formal training programs and its utility. Hence the effect of training attitude on training effectiveness may be moderated by the prior work experience of the individual. We hypothesize that more is the prior work experience of an individual the more likely he has understood how to perform on his job and how to acquire skills on the job and hence the more it is likely that he will not have a favourable attitude towards formal training programs. Thereby the effectiveness of training programs on such individuals will be subdued. Thus, in this research we will aim to study the moderating effect of Prior work experience on the relationship between Training Attitude and Training Effectiveness. The prior work experience of individual has a negative moderating effect on the relationship between Training Attitude and Training Effectiveness. We would also like to study whether the Mediating Effect of Training Motivation on the relationship between Training attitude and Training effectiveness is valid for different groups of people with varied work experience. For this purpose we propose to study the said relationship by dividing the data set into groups of people with differing work experience. According to our theoretical study we expect to observe a more significant mediated relationship between training attitude and effectiveness for people with lower work experience than those with higher work experience. For people with lower work experience the relationship between training attitude and training effectiveness mediated by training motivation is more significant. Methods: Sample: Around 200 participants from various manufacturing organizations were contacted in person and via e-mail and the questionnaire was administered. Out of the 200 people contacted 122 (61%) people chose to participate. Most of the participants were chosen from the technical background who have undergone some sort of training at their work place. To maintain anonymity the questionnaire did not contain any identifiers. The researchers themselves administered the questionnaire and they themselves collected the responses. Measures: All the scale used to measure the various constructs were measured using a 7 point Likert scale ranging from 1(Very Strongly Disagree, Very Strongly Unlikely) to 7(Very Strongly Agree, Very Strongly Likely). Training Attitude: Training attitude was measured using a 9 item scale developed by Anupama Narayanan and Debra Steele-Johnson (2007). A sample item is I enjoy participating in training programs offered at work. Training Motivation: Training motivation was measured using a 14 item scale developed by Phyllis Tharenou (2001) which was adopted from Noe and Wilk (1993) 17 item scale. This scale was based on the valence instrumentality expectancy theory and had 7 items each for valence and instrumentality. A sample item for instrumentality is How likely you will obtain a pay increase from KSA from TD. A sample item for valence is How important is obtaining pay increase to you. Training Effectiveness: The training effectiveness was measured through a 4 item scale. This scale was a shortened version of the Kirkpatricks scale and was developed by Alan Chapman. The training effectiveness was measured on different parameters namely reaction, learning, behavior and productivity. Prior Work experience: The prior work experience was measured using a single question to the participants asking them of the number of years of prior years of work experience. Analysis: The study was intended to find the mediation effect of training motivation between training attitude and training effectiveness. The procedure followed to study the mediation effect was adopted from the study by Baron and Kenny (1986). Further the researchers also studied the moderation effect of years of prior work experience on the direct relation between training attitude and training effectiveness. This was done through a 2 model approach using the standardized multiplied values for training attitude and years of prior work experience. All the analysis was done using SPSS software. Further the entire sample of respondents was divided into 2 classes based on the work experience, one having work experience more than the median and one having less than the median. The median value was ignored and the mediation analysis was carried out using the Baron and Kenny model (1986). Results: The means, standard deviations and correlations .All the variables were found to be significantly correlated with each another. It can be easily seen from the table 1 that the correlation among all the variables is very high. To test the internal consistency of the scales measuring the constructs, the Cronbachs Alpha Coefficient was calculated and it was found that all the scales were reliable as the Cronbachs Coefficient was greater than 0.7. The results of the measures of internal consistency. Again it can be seen that the Cronbachs Alpha Coefficient is very high indicating that the internal consistency of the scales is very high. Mean, Standard Deviation and Correlations: Measures of internal consistency Cronbachs Alpha Coefficient: In this research we have primarily hypothesized the relationship between training attitude and training effectiveness with training motivation as the mediating variable. Apart from the mediation effect, the moderation effect of number of years of prior work experience on the direct effect of training attitude on training effectiveness has been studied. The results of the mediation effect of training motivation on the relationship between training attitude and training effectiveness. The mediation effect was studied using the 4 step Baron and Kenny model of regression analysis. In the first step, the independent variable training attitude was shown to affect the outcome variable i.e. training effectiveness significantly. In the next step, the independent variable was shown to affect the mediator variable i.e. training motivation significantly. In the third step, the mediator variable was shown to have a significant effect on the dependent variable. These steps showed that the relation between training attitude and training effectiveness was mediated by training motivation. In the 4th step, the mediation effect was calculated through a regression analysis in which the mediator and the independent variable were the predictors and the criterion variable was the dependent variable. Regression results to study mediation effect: The mediation is significant and the mediation effect was calculated to be 0.923 standard deviations. Also in the fourth step, since the effect of training attitude on training effectiveness becomes insignificant we can safely infer that full mediation is present. The step I shows the regression results when training effectiveness was taken as the criterion variable and the training attitude was taken as the independent variable. From this step we saw that training attitude was significantly related to the training effectiveness. Here the value of R2 was found to be 0.796 with F = 468.143 at p The step II shows the regression results when training motivation was taken as the dependent variable with training attitude as the predictor variable. In this step it was seen that training attitude was significantly related to training effectiveness. The R2 value was found to be 0.883 with F = 904.66 at p The step III shows the regression results when training effectiveness was taken as the dependent variable with training motivation being the predictor variable. In this step it was found that the training motivation is significantly related to training effectiveness. The R2 value was found to be 0.909 at p The step IV shows the regression results when training effectiveness was taken as the criterion variable with both training motivation and training attitude as the predictor variables. From this step we could conclude that training motivation was significantly related to training effectiveness and also we see that training attitude loses the significance of its effect that it had on training effectiveness in step I. The R2 value was found to be 0.909 at p The above 4 steps show that the mediation effect of training motivation between training attitude and training effectiveness is a full mediation effect as the independent, variable training attitude, becomes insignificantly related to the criterion variable (Baron and Kenny, 1986). The steps I, II and III are used to test the first 3 hypothesis. In step I it was shown that training attitude was significantly related to training effectiveness hence H3 is accepted. Similarly in the step II it was shown that training attitude was significantly related to training motivation and hence H1 is accepted. In the third step, it was found that training motivation was significantly related to training effectiveness and hence H2 is accepted. Training attitude was significantly related to training effectiveness in the first step and to training motivation in the second step but it was non-significantly related to training effectiveness in the fourth step. From this we could infer that training motivation fully mediates the relation between training attitude and training effectiveness. Thus H4 is supported. The Sobels test was used to just verify the mediation effect. The test showed that the mediation effect is statistically significant (Mediation effect = 0.923; Z-score = 8.68; p In addition to the above mediation analysis, we also tried to understand the role of work experience on the mediation analysis. Hence 2 more mediation analysis were carried out in which the entire data set was broken down in 2 sets, one with respondents having 2 or more years of work experience, second with respondents having less than 2 years of work experience. This was so done because the median work experience of the sample studied was 2 yrs. Impact of years of work experience on the mediating role of training motivation on training effectiveness was studied. First we take the case of respondents having less than 2 years of work experience. The same steps as stated above according to the Baron and Kenny Model were repeated and the results. Regression results to study mediation effect on respondents with work experience of less than 2 years: Again as we can see that training motivation fully mediates the relation between the training attitude and training effectiveness. In the first step we used training effectiveness as the criterion variable with training attitude as the predictor variable. The relation was found to be significant and positively related with R2 = 0.468; p In the next step, training motivation taken as the criterion variable and training attitude was taken as the independent variable. This relation was again found significant and positively related with R2 = 0.639; p In the third step, training motivation was now taken as the predictor variable and training effectiveness was taken as the dependent variable. It was found that this relation was significant with R2 = 0.660; p In the last step, both training attitude and training motivation were taken as the predictor variables and training effectiveness was taken as the dependent variable. In this step, the relation between training attitude on training effectiveness became insignificant hence it was proved that training motivation fully mediates the relation between training attitude and training effectiveness. The mediated effect was found to be 0.592 and the overall mediation was found to be significant using the Sobels test. Using the Sobels Test the Z score was found to be 4.7498. Thus showing that the mediation effect of training motivation on the relation between training attitude and training effectiveness is significant. Another mediation analysis was done to test the mediation effect of training motivation on the relation between training attitude and training effectiveness for respondents having more than 2 years of work experience. This was again a 4 step analysis as per the Baron and Kenny model and the results. As we can see in the table 5, in the first step it was found that training attitude significantly affect training effectiveness. In the second step it was found that training attitude significantly affects training motivation. In the third step, it was found that training motivation significantly affects training effectiveness. And in the fourth it was found that training motivation significantly affects effectiveness but impact of training attitude on effectiveness becomes insignificant. This showed that training motivation mediates the relation between attitude and effectiveness. Regression results to study mediation effect on respondents with work experience of more than 2 years: From the fourth step we can see that training motivation mediates the relation between training attitude and training effectiveness fully. The overall significance of the mediation was checked using the Sobels test. Effect of Motivation on Employee Training Effectiveness Effect of Motivation on Employee Training Effectiveness Training is an integral part of workforce development and creation of new competencies within the workforce to ensure that the organization keeps up with the changing needs of the times. Training is related to performance in two ways. Effective training has a direct impact on the performance output and any gap in an individuals performance can sometimes be filled with training. For employees, lack of training also causes a lack of self-satisfaction and productivity. Training is seen as a major cost center in most organizations in India even though its necessity is widely accepted. This negative view can mostly be attributed because of the apparent lack of direct linkage between training and the bottom-line of the company. In todays world, where the HR department needs to justify its expenses, especially in the wake of recession and lay-offs, it is essential that the trainings rendered are of optimum efficiency in achieving the set target and also that it be done at the least possible cost. Hence it is important to understand whether the methods of training employed are yielding the desired results or alternatively if the same results can be attained in more cost effective ways. One major factor influencing the training effectiveness is training motivation, as we have explained in the literature review below. But the attitude of employees towards formal training is another factor which will decide whether it is justified to spend so much money on formal training modules if the same end result can be obtained by informal on the job training if it is preferred by the employees. Hence we explore the links between these constructs. Theoretical Review and Hypothesis: Training Attitude: Development activities like training are significantly affected by attitudes and perceptual variables (Noe and Wilk, 1993).Eagly Chaiken (1998) defined attitude as the psychological tendency to evaluate an entity with a certain degree of favor or disfavor. These attitudes are good predictors of behavior (Ajzen, 1991).We can extend this line of reason to say that a person with a positive attitude to certain entity will show favorable behavioral response towards it and a person with a negative attitude to it will show an unfavorable behavioral response. Training attitude applies the definition of attitude to training. A persons attitude towards training is a measure or reflection of his or her attitude towards the formal process of knowledge and skill acquisition. Thus we can say that training attitude is indirectly a measure of liking an individual has for the formal process of training as opposed to say learning something on-the-job informally. It logically follows that those who ha ve a positive attitude towards training will be more likely to attend the training programs willingly and gain from it as compared to someone who has a negative attitude towards training which is to say, that training attitude determines the motivation with which a person attends training programs, especially in an organizational scenario where training programs are mandatory. Also this very attitude can be linked to how much learning happens in the training. The scale for measuring the training attitude construct was developed by Anupama Narayan and Debra Steele Johnson (2007) for their research. This was a 20 item scale addressing participants evaluation of 2 issues: How relevant and useful they perceived training programs to be. How much they desired to practice acquired skills on job. This scale with 7 point likert type response pattern had a high level of internal consistency (alpha =0.92) However some items were redundant and for the purpose of this research were omitted. The resulting 9 item scale was again tested for internal consistency and displayed a Cronbachs Alpha= 0.91 which is fairly high. The response to the 7 point likert scale was interpreted as a summated score which indicated the degree of positive attitude towards training among the respondents. Training Motivation: Quinones (1997) aptly described motivation to be an individuals choice to dedicate more energy to one set of behavior over others. In the training context, Blanchard Thacker (2004) explain motivation as an inspiration which is directed by trainees personal needs and decision processes they use to satisfy those needs. Or, as Colquitt (2007) puts it , training motivation is the persistence and intensity of learning -directed behavior in the context of training. Training motivation is affected by a diverse set of internal and external factors as suggested by various research papers. Work environment, organizational climate, supervisory support etc are a few of the external factors researched upon whereas the internal factors hypothesized to affect training motivation include self efficacy, personal mental ability and personality (Colquitt et al, 2000). One of the most popular theories to explain motivation is the expectancy theory of how people are motivated by the results of their behavior (Bandura, 1997). We can also view Vrooms expectancy theory as a theoretical framework for examining training motivation. Vrooms model suggests that expectation of an act being followed by a certain outcome often shapes the motivation for doing that act. To extend this to the context of training motivation, if a trainee expects that the effort he puts into attending training programs will yield valued outcomes to him then he will be motivated to attend the same. Hence this research attempts to understand the valence -instrumentality link associated with training. We measure what the trainee values and whether he perceives those things to be outcome of training programs. A 14 item scale, with 7 items each for valence and instrumentality of factors associated with training, was adapted from the research paper by Phyllis Tharenou (2001).The factors of valence included in the scale are Reaching career goals, Pay increase, Job security, Change to workplace, Promotion or advancement, Opportunities for different career paths, Supervisor praise. The responses for these questions were taken on a 7 point likert scale and scores were summated to arrive at the level of training motivation of the respondent. A higher score symbolizes that the respondent values the inherent factors highly and also perceives that training will help him achieve the same. Training Effectiveness: Training effectiveness is essentially a measure of how effective the training imparted was. Many researchers including Ford (1997), Noe (1986), and Tannenbaum (1992) have recognized training effectiveness as a crucial issue for organizations. Employee performance and productivity can be measurably improved if trainings are effective and organizations will be able to avoid wasteful spending on ineffective trainings. Most organizations would want to have a good return on their training investment. According to London (1989) and Noe (1999) training interventions in organizations are going to increase hence the training effectiveness is going to be an important feature in the organizations. Kirkpatricks (1976) four level approach is one of the most extensively used methods for evaluating training effectiveness (Alliger Janak, 1989). This four level approach measures training effectiveness vis-Ã  -vis the trainees reactions to a training program, the extent to which trainees can execute desired behaviors related to the training, the acquisition of skills and knowledge by the trainee and resulting change in the job behaviors of the trainee. It has been a common assumption among researchers that these 4 levels linked in a linear fashion hierarchically. Hamblin (1947) illustrated the cause and effect chain as training leading to reactions which in turn leads to learning and that leads to change in job behavior. But this empirical evidence for this proposed link has been inconclusive. This led Alliger Janak (1989) to conduct a Meta analysis and conclude that the four factors are not necessarily linearly linked. There are several factors like training motivation attitude, context of training and other influences which attenuate the link between trainees reaction and other criterion measures. A four item shortened version of the Kirkpatrick scale was used for measuring the training effectiveness. The measured effectiveness was the perceived effectiveness of the last im parted training program. Sample items in the scale included questions like Did I enjoy the course. The response was obtained on a 7 point likert scale varying from strongly disagree to strongly agree and the summated score of each item response was used as the measure of the training effectiveness and higher the score higher was the perceived effectiveness of the training. Training Attitude and Training Motivation: Individuals disposition or attitude towards formal training programs has been shown to have a direct influence on his training motivation (Ford Noe, 1987). Training attitude also displays his motivation to learn (Tannenbaum Yukl, 1992) and his motivation to attend training (Facteau et al, 1995) as distinct from training motivation. What the above mentioned research suggests is that there is a logical and empirical link between a person liking a training program and being motivated to attend the same. However the extant literature mentions this relationship in a very general and broad format. We would like to hypothesis a more specific relationship. Going back to our definition of training motivation , we have said that it is the perceived valence the trainee associates with certain outcomes and how instrumental he feels attending a training is in order to acquire them .We listed these outcomes as career development, superior praise, promotion or development, pay increase , job secu rity etc. Research suggests that there is very strong link between training attitude and training motivation .Carlson et al.(2000) found a high correlation between training attitude scores and training motivation scores in their research.Now most employees may find that there is a perceived strong connection between attending trainings and achieving these outcomes and hence may attend trainings when they are mandatory rather than volunteer for it. But otherwise, based on his experience he might feel that training programs are a waste of time over all and he learns more on his job. Especially in the context of Indian manufacturing industry where trainings are mandatory, employees might not be predisposed to attending trainings, but will attend them anyways due to perceived benefits. Hence in this research we are testing whether having a positive attitude towards training increases the individuals training motivation and how much is it correlated. Hence, Training Attitude of an individual positively impacts his Training Motivation: Training Motivation and Training Effectiveness: Based on our understanding of motivation, an individual is more likely to expend more energy for a task he is motivated to do and hence is more probable to do that task more effectively than other tasks. Extending this logic forward if a person is motivated to attend training then he is more likely to enjoy the training, learn most from it and apply it on to his job. In other words the effectiveness of the training imparted will be high if the trainees entering the training program are highly motivated for the same. In the organizational context it is imperative that different individuals enter the training with different levels of motivation. These differences in the level of motivation may be an outcome of various factors like personal characteristics and work environments. After studying these effects, Salas et al.1(1992) hypothesized that individuals motivated to do well in training will be the ones who end up learning the content of the program better than their lesser motivated counterparts. Training effectiveness is measured in terms of 4 parameters derived from the Kirkpatricks model. These parameters are namely, Learning, Behavior, Reaction and Applications of skills. Several studies put forth empirical support indicating a link between trainees motivation and learning (Rails Klien, 1991; Clark 1990; Hicks Klimoski 1987; Baldwin et al., 1991).The attention levels and openness to new ideas is increased by pre-training motivation. Hence theoretically trainees who are more motivated should be more ready or primed to learn and apply their learnings. Also a person motivated to attend the training will be more likely to enjoy it thus displaying a positive reaction. Whereas a person who is unmotivated to attend training will not learn much from the training even if he ends up enjoying the experience (Mathieu et al., 1992). Consequently we also hypothesize a direct relation between how much the trainee learns and how much he is motivated about the training to how much of the learned skills he will apply in his job. Thus training motivation can be hypothesized to bring about change in behavior of the trainee as well. Based on the above reasoning we state out second hypothesis as, Training motivation positively impacts training effectiveness Training Attitude and Training Effectiveness. Hicks and Klimoski (1987) attempted to study the effect of choice of attending the training program with effectiveness of the training program. They hypothesized that if trainee had a choice of attending a training program then he will be more satisfied by it than otherwise. Ryman and Biersner (1975) also studied the effect of choice on training outcome. They found that giving a choice to attend the training program resulted in lesser dropouts from the program and greater training success. In a slight variation of this experiment, Baldwin, Magjuka and Lober (1991) reported that when trainees received their top choice from the available training programs they reported higher pre training motivation and. They also learned more as compared to other trainees who did not get their top pick. Tannebaum et al. (1992) showed by way of their research that individuals who nominate themselves for training actually attach a greater instrumentality to the program and report higher training motivat ion than others. This in turn leads to greater training effectiveness. The same was researched upon and confirmed by Gormley, Collins et al. (2009) on their study on Medical students undergoing E-learning programs. In our research we would like to extend the above findings to the context of training attitude. Training attitude can be seen as the pre disposition of the individual towards attending training. If the individual has a positive attitude towards training then he will choose to attend the same whereas if he has a negative attitude towards training he will not attend it or attend it grudgingly if forced to the same. Hence incorporating Tannenbaums findings, we can say that people who attend training against their choice will not undergo an optimally effective training. Hence we hypothesize that only people who choose to attend the training by way of their positive attitude towards it will be more motivated about the training and hence consequently the training imparted to them will be effective. No previous research has aimed to study this mediating effect of training motivation on the relationship between Training attitude and training effectiveness and this is the gap we propose to fi ll by means of our research. We hypothesize that Training effectiveness is impacted by Training Attitude of the individual via the mediating variable of training motivation. Training attitude positively affects training effectiveness. Training Motivation acts as the mediating variable on the relationship between Training Attitude and Training Effectiveness. Moderating Effect of Prior Work Experience: Goldstein (2002) stated in his research that training transfer happens more effectively if tasks in the training environment are congruent with those in the actual work environment. Typically the young Indian professional fresh out of college will prefer the formal training programs as he is not exposed to any other way of learning. However as we have talked about training attitude it is important to study the effect of previous trainings on the individuals attitude. Employees who have undergone much training and have worked for enough years in the organization may have seen other methods of learning their job or skill apart from formal training programs to form different attitudes about training than those who have very little work experience. Learning On -the-job takes place within the workplace while the employee is doing actual work in the actual work environment under normal working conditions. This is important because it ensures that skills taught in such informal training can be readily transferred to the job (Kleiner Read, 1996). Work based learning focuses on reviewing and learning from experience and is cantered on learning from action rather than simply developing competencies (Dymock Gerber, 2002). Since the employee is trained in normal working condition, there is a high sense of relevance and validity to the employee (Clifford Thorpe, 2007) and is a tool to increase the productivity (Jain, 1999). Learning on the job happens on an individual level and the greatest advantage of this is that it enables each participant to determine the speed with which learning can proceed, at the same time providing a high level of feedback and trainee involvement (Kleiner Read, 1996). Other advantages are that the employee is being productive during training, and thus the associated costs may be less (Kleiner Read, 1996); this training may be given to more people than it is possible at a training institution (Jain,1999). Thus we can see that on the job learning may be perceived to be more effective than formal trainings by employees with greater years of work experience behind them. This could also possibly affect their attitude towards formal training programs and its utility. Hence the effect of training attitude on training effectiveness may be moderated by the prior work experience of the individual. We hypothesize that more is the prior work experience of an individual the more likely he has understood how to perform on his job and how to acquire skills on the job and hence the more it is likely that he will not have a favourable attitude towards formal training programs. Thereby the effectiveness of training programs on such individuals will be subdued. Thus, in this research we will aim to study the moderating effect of Prior work experience on the relationship between Training Attitude and Training Effectiveness. The prior work experience of individual has a negative moderating effect on the relationship between Training Attitude and Training Effectiveness. We would also like to study whether the Mediating Effect of Training Motivation on the relationship between Training attitude and Training effectiveness is valid for different groups of people with varied work experience. For this purpose we propose to study the said relationship by dividing the data set into groups of people with differing work experience. According to our theoretical study we expect to observe a more significant mediated relationship between training attitude and effectiveness for people with lower work experience than those with higher work experience. For people with lower work experience the relationship between training attitude and training effectiveness mediated by training motivation is more significant. Methods: Sample: Around 200 participants from various manufacturing organizations were contacted in person and via e-mail and the questionnaire was administered. Out of the 200 people contacted 122 (61%) people chose to participate. Most of the participants were chosen from the technical background who have undergone some sort of training at their work place. To maintain anonymity the questionnaire did not contain any identifiers. The researchers themselves administered the questionnaire and they themselves collected the responses. Measures: All the scale used to measure the various constructs were measured using a 7 point Likert scale ranging from 1(Very Strongly Disagree, Very Strongly Unlikely) to 7(Very Strongly Agree, Very Strongly Likely). Training Attitude: Training attitude was measured using a 9 item scale developed by Anupama Narayanan and Debra Steele-Johnson (2007). A sample item is I enjoy participating in training programs offered at work. Training Motivation: Training motivation was measured using a 14 item scale developed by Phyllis Tharenou (2001) which was adopted from Noe and Wilk (1993) 17 item scale. This scale was based on the valence instrumentality expectancy theory and had 7 items each for valence and instrumentality. A sample item for instrumentality is How likely you will obtain a pay increase from KSA from TD. A sample item for valence is How important is obtaining pay increase to you. Training Effectiveness: The training effectiveness was measured through a 4 item scale. This scale was a shortened version of the Kirkpatricks scale and was developed by Alan Chapman. The training effectiveness was measured on different parameters namely reaction, learning, behavior and productivity. Prior Work experience: The prior work experience was measured using a single question to the participants asking them of the number of years of prior years of work experience. Analysis: The study was intended to find the mediation effect of training motivation between training attitude and training effectiveness. The procedure followed to study the mediation effect was adopted from the study by Baron and Kenny (1986). Further the researchers also studied the moderation effect of years of prior work experience on the direct relation between training attitude and training effectiveness. This was done through a 2 model approach using the standardized multiplied values for training attitude and years of prior work experience. All the analysis was done using SPSS software. Further the entire sample of respondents was divided into 2 classes based on the work experience, one having work experience more than the median and one having less than the median. The median value was ignored and the mediation analysis was carried out using the Baron and Kenny model (1986). Results: The means, standard deviations and correlations .All the variables were found to be significantly correlated with each another. It can be easily seen from the table 1 that the correlation among all the variables is very high. To test the internal consistency of the scales measuring the constructs, the Cronbachs Alpha Coefficient was calculated and it was found that all the scales were reliable as the Cronbachs Coefficient was greater than 0.7. The results of the measures of internal consistency. Again it can be seen that the Cronbachs Alpha Coefficient is very high indicating that the internal consistency of the scales is very high. Mean, Standard Deviation and Correlations: Measures of internal consistency Cronbachs Alpha Coefficient: In this research we have primarily hypothesized the relationship between training attitude and training effectiveness with training motivation as the mediating variable. Apart from the mediation effect, the moderation effect of number of years of prior work experience on the direct effect of training attitude on training effectiveness has been studied. The results of the mediation effect of training motivation on the relationship between training attitude and training effectiveness. The mediation effect was studied using the 4 step Baron and Kenny model of regression analysis. In the first step, the independent variable training attitude was shown to affect the outcome variable i.e. training effectiveness significantly. In the next step, the independent variable was shown to affect the mediator variable i.e. training motivation significantly. In the third step, the mediator variable was shown to have a significant effect on the dependent variable. These steps showed that the relation between training attitude and training effectiveness was mediated by training motivation. In the 4th step, the mediation effect was calculated through a regression analysis in which the mediator and the independent variable were the predictors and the criterion variable was the dependent variable. Regression results to study mediation effect: The mediation is significant and the mediation effect was calculated to be 0.923 standard deviations. Also in the fourth step, since the effect of training attitude on training effectiveness becomes insignificant we can safely infer that full mediation is present. The step I shows the regression results when training effectiveness was taken as the criterion variable and the training attitude was taken as the independent variable. From this step we saw that training attitude was significantly related to the training effectiveness. Here the value of R2 was found to be 0.796 with F = 468.143 at p The step II shows the regression results when training motivation was taken as the dependent variable with training attitude as the predictor variable. In this step it was seen that training attitude was significantly related to training effectiveness. The R2 value was found to be 0.883 with F = 904.66 at p The step III shows the regression results when training effectiveness was taken as the dependent variable with training motivation being the predictor variable. In this step it was found that the training motivation is significantly related to training effectiveness. The R2 value was found to be 0.909 at p The step IV shows the regression results when training effectiveness was taken as the criterion variable with both training motivation and training attitude as the predictor variables. From this step we could conclude that training motivation was significantly related to training effectiveness and also we see that training attitude loses the significance of its effect that it had on training effectiveness in step I. The R2 value was found to be 0.909 at p The above 4 steps show that the mediation effect of training motivation between training attitude and training effectiveness is a full mediation effect as the independent, variable training attitude, becomes insignificantly related to the criterion variable (Baron and Kenny, 1986). The steps I, II and III are used to test the first 3 hypothesis. In step I it was shown that training attitude was significantly related to training effectiveness hence H3 is accepted. Similarly in the step II it was shown that training attitude was significantly related to training motivation and hence H1 is accepted. In the third step, it was found that training motivation was significantly related to training effectiveness and hence H2 is accepted. Training attitude was significantly related to training effectiveness in the first step and to training motivation in the second step but it was non-significantly related to training effectiveness in the fourth step. From this we could infer that training motivation fully mediates the relation between training attitude and training effectiveness. Thus H4 is supported. The Sobels test was used to just verify the mediation effect. The test showed that the mediation effect is statistically significant (Mediation effect = 0.923; Z-score = 8.68; p In addition to the above mediation analysis, we also tried to understand the role of work experience on the mediation analysis. Hence 2 more mediation analysis were carried out in which the entire data set was broken down in 2 sets, one with respondents having 2 or more years of work experience, second with respondents having less than 2 years of work experience. This was so done because the median work experience of the sample studied was 2 yrs. Impact of years of work experience on the mediating role of training motivation on training effectiveness was studied. First we take the case of respondents having less than 2 years of work experience. The same steps as stated above according to the Baron and Kenny Model were repeated and the results. Regression results to study mediation effect on respondents with work experience of less than 2 years: Again as we can see that training motivation fully mediates the relation between the training attitude and training effectiveness. In the first step we used training effectiveness as the criterion variable with training attitude as the predictor variable. The relation was found to be significant and positively related with R2 = 0.468; p In the next step, training motivation taken as the criterion variable and training attitude was taken as the independent variable. This relation was again found significant and positively related with R2 = 0.639; p In the third step, training motivation was now taken as the predictor variable and training effectiveness was taken as the dependent variable. It was found that this relation was significant with R2 = 0.660; p In the last step, both training attitude and training motivation were taken as the predictor variables and training effectiveness was taken as the dependent variable. In this step, the relation between training attitude on training effectiveness became insignificant hence it was proved that training motivation fully mediates the relation between training attitude and training effectiveness. The mediated effect was found to be 0.592 and the overall mediation was found to be significant using the Sobels test. Using the Sobels Test the Z score was found to be 4.7498. Thus showing that the mediation effect of training motivation on the relation between training attitude and training effectiveness is significant. Another mediation analysis was done to test the mediation effect of training motivation on the relation between training attitude and training effectiveness for respondents having more than 2 years of work experience. This was again a 4 step analysis as per the Baron and Kenny model and the results. As we can see in the table 5, in the first step it was found that training attitude significantly affect training effectiveness. In the second step it was found that training attitude significantly affects training motivation. In the third step, it was found that training motivation significantly affects training effectiveness. And in the fourth it was found that training motivation significantly affects effectiveness but impact of training attitude on effectiveness becomes insignificant. This showed that training motivation mediates the relation between attitude and effectiveness. Regression results to study mediation effect on respondents with work experience of more than 2 years: From the fourth step we can see that training motivation mediates the relation between training attitude and training effectiveness fully. The overall significance of the mediation was checked using the Sobels test.

Roles of the Housekeeper and Nursemaid in Brontes Jane Eyre :: Jane Eyre essays

Roles of the Housekeeper and Nursemaid in Bronte's Jane Eyre    Just as servants played an essential role in Victorian England, they also played an essential role in the novel Jane Eyre. Bronte uses servants in a variety of ways. For example the housekeeper is used to bring terror and utter rejection on Jane. The nursemaid is used to teach Jane to love and nurture without neglecting discipline. The housekeeper was most often a widow, working for her kin (Hill 119). Mrs. Fairfax falls under the category of the widowed older lady working for her kin (107; ch. 11). It is Mrs. Fairfax who responds to Jane’s ad and hires her (96; ch. 10). It is also Mrs. Fairfax who warns Jane before her wedding to Rochester that she should not trust him. Being the housekeeper as well as kin Mrs. Fairfax knows a lot about Rochester. She suggests that Jane "keep Mr. Rochester at a distance: distrust yourself as well as him" ( 263; ch. 24). Bronte uses the stern housekeeper in the novel to influence Jane. The stern and disproving Mrs. Fairfax signifies the distress and turmoil that is soon to take place with the pending wedding. The housekeeper was often a terror to other servants in the home, and is the character of many stories haunting (Huggert 33). Mrs. Fairfax adhering to her role as housekeeper attempts to stir terror in Jane about marrying Rochester by telling her to distrust him (263; ch. 24). We find that Mrs. Fairfax’s warning does indeed take a toll on Jane’s behavior toward Rochester. After treating Rochester coolly for weeks, Jane says, "Mrs. Fairfax, I saw, approved me" (272; ch. 25). The same kind of attributes are displayed by Hannah the housekeeper at Moor House. The same kind of close loyal bond is also displayed by Hannah. When Jane knocks on the door of Moor House , it is Hannah who answers and turns her away. Hannah’s loyalty to the family causes her to distrust strangers and attempt to protect their interests. She refuses to allow Jane to even speak to her mistresses (329; ch. 28 ). Jane continues claiming she will die if turned away. Hannah responds: Not you. I’m fear’d you have some ill plans agate, that bring you about folk’s houses at this time o’ night. If you’ve any followers- housebreakers or such like- anywhere near, you may tell them we are not by ourselves in the house; we have a gentleman, and dogs, and guns.