14 10 3494 https://omeka.ibu.edu.ba/files/original/82c0451846e2c7dedd6c8431cc04c60a.pdf 658258298f235c605052827470cdf491 PDF Text Text BANA HİKAYENİ ANLAT Ufuk Güvenç Özet Modern psikoloji ve pedagoji verilerine göre hazırlanan yeni dönem dil öğretim sistemleri, çocukların dil öğrenme ilke ve yöntemlerine göre hazırlanmaktadır LEGO, son yirmi yıldır yaptığı çalışmalar sonucunda farklı bir dil öğrenim sistemini piyasaya sürdü. LEGO-StoryStarter (Bana Hikayeni Anlat) ismini verdiği ve LESS diye kısaltılan sistemde dilin farklı alanları için belirlenmiş kazanımlar, etkinlik materyallerinin başlangıç noktasını oluşturur. LESS, ilkokul 2-5 sınıf öğrencileri için konuşma, dinleme, okuma, yazma, teknoloji ve sayısal öğrenim alanlarındaki becerilerini geliştirmek için tasarlanmıştır. Öğrencilerin doğalarına uygun yöntemlerle hikaye oluşturma ve anlatma deneyimi kazandıran özgün bir öğrenim aracıdır. Dil için belirlenmiş kazanım modeli bütün etkinlik materyalinin başlangıç noktasını oluşturur. Öğrenciler etkin olarak keşfederken, oluştururken, inşa ederken, hikaye anlatırken, sorgularken ve iletişim kurarken bir çok alanda beceriler geliştirirler. StoryStarter, öğrencilerin aşağıdaki kazanım modelinde de gösterildiği gibi konuşma ve dinleme, okuma ve yazma alanlarında beceri, bilgi, ve anlayışlarını geliştirmelerine yardımcı olur. Anahtar Kelimeler: Dil Öğretimi, Etkinlik, Materyal GİRİŞ Modern psikoloji ve pedagoji verilerine göre hazırlanan yeni dönem dil öğretim sistemleri, çocukların dil öğrenme ilke ve yöntemlerine göre hazırlanmaktadır. Dil öğrenimi sürecinde duygular, hayaller, grup çalışması, oyun ve iletişim temel alanlardır. Hazırlanan materyaller ve etkinlikler bu alanlarda becerileri geliştirmektedir. Uzun yıllardır fen bilimleri derslerinde kullanılmak üzere farklı etkinlik materyalleri geliştiren LEGO, son yirmi yıldır yaptığı çalışmalar sonucunda farklı bir dil öğrenim sistemini piyasaya sürdü. LEGO-StoryStarter (Bana Hikayeni Anlat) ismini verdiği ve LESS diye kısaltılan sistemde �dilin farklı alanları için belirlenmiş kazanımlar, etkinlik materyallerinin başlangıç noktasını oluşturur. LESS, ilkokul 2-5 sınıf öğrencileri için konuşma, dinleme, okuma, yazma, teknoloji ve sayısal öğrenim alanlarındaki becerilerini geliştirmek için tasarlanmıştır. Öğrencilerin doğalarına uygun yöntemlerle hikaye oluşturma ve anlatma deneyimi kazandıran özgün bir öğrenim aracıdır. Çeşitli karakterler, hayvanlar, aksesuarlar, klasik masal parçaları, temel tuğla, hikaye sahnesi oluşturabilecek lego tuğlalarından ve parçalarından oluşur. Hikaye oluşturma ve anlatımının öğretmen tarafından desteklendiği bir süreç içinde öğrencilerin okur yazarlığı gelişir; hikaye, masal, ve günlük olayları rahatça dile getirebilirler ve özgüven duygusuyla iletişim kurabilirler. LESS, olayları doğal bir sırayla sıralama becerisi, hayal gücünü canlandırıp, anlama becerisini geliştirip, hikaye karakteri, replik, diyalog ve hikaye yapısı geliştirip, sürece katılımını ve öğrencilerin yepyeni fikirler üretebilmesine destek olur. Öğrencilerin öğrenim seviyesine uygun olarak seçilebilen etkinlikler, öğrenciler arası farklı becerilerin ortaya çıkabildiği tamamlayıcılığı besleyip, işbirlikçi çalışmayı, fikir, kavram ve deneyim paylaşımını teşvik eder. Ayrıca eğitim setinin bir parçası olan yazılımı kullanarak, öğrencilerin hikaye anlatırken, yalnızca kelimeleri kullanarak çözemeyecekleri konuları, kelime ve görselleri birlikte kullanıp, çözmelerine yardımcı olur. Öğrencilerin akademik düzeylerine uygun olarak hikaye yazmayı, basmayı, yayınlamayı ve diğer öğrencilerle paylaşmayı kolaylaştırır. BANA HİKAYENİ ANLAT ‘’Herkesin üretebileceği, inşa edebileceği, yazabileceği ve anlatabileceği bir hikayesi vardır.’’ LEGO, uzun yıllardır özellikle fen bilimleri dersleri için LEGO Mindstorms gibi öğretim sistemleri ve materyallerinden sonra 2010 yılından beri fen bilimleri derslerinde kazanılan bu tecrübeler yardımıyla dil becerilerinin gelişmesi adına yapılandırılmış LEGO- StoryStarter (LESS) isimli yeni bir sistem ve set hazırladı. Firmanın eğitim, öğretim materyalleri geliştirme bölümünün uzun yıllar süren araştırmaları sonucunda piyasaya sürdükleri ‘’Bana Hikayeni Anlat’’ seti özellikle son yıllarda ABD’de özelliklerinden dolayı ödüllendirilmiştir. Ayrıca uzun �yıllardır Danimarka’da test edilmiş ve olumlu sonuçlar alınmıştır.1 LESS uluslararası bir dil öğretim seti olarak kabul edilir. Hikayeler üretme ve anlatma yoluyla üretken olma ile ilgili öğrencilere ilham veren ve motive eden bir sistemdir. Farklı öğrenme yaklaşımlarından ilham alması ile birlikte asıl olarak yapısal yaklaşımlar üzerine bina edilmiştir.2 Öğrencilerde okuma, yazma, konuşma ve ifade etme gibi temel dil becerilerini geliştirmeyi amaçlar. İlk uygulamalarda LESS eğitim bakanlığının koyduğu hedeflere uygun olarak anadil becerilerini kazandırma ve geliştirme alanında kullanılırken son dönemde alınan olumlu geri bildirimler sebebiyle ikinci dil ve yabancı öğretiminde de kullanılmaya başlanmıştır. ‘’ Legolarla hikaye üretme ve anlatma çalışması yoluyla öğrencilere ilham vereceğini ve çalışma isteklerini arttıracağını tespit ettik’’3 diyor Lisbeth Hattens. Lisbeth asıl olarak öğretmenlik mezunu olmasına rağmen 23 yıldır LEGO’nun eğitim takımında öğretim sistemleri ve pedagojik yaklaşımlar konusunda uzman olarak görev yapmaktadır. Eğitim takımı farklı yaklaşımları incelerken aynı zamanda da yenilikçi programları da üretiyorlar. LESS için üç yıldan daha fazla, farklı öğrenme metotları, sistemleri konusunda Danimarkalı ve uluslararası uzmanlar ile çalışılmıştır. Bir dizi uluslararası araştırmanın sonuçları gelişim süreci konusunda aydınlanmaya sebep olmuştur. Araştırma sonuçlarına göre; kaliteli ve verimli bir öğrenmenin gerçekleşebilmesi için öğrencilerin motivasyonu ve konuların uyumu çok önemlidiri.4 Lisbeth Hattens: ‘’Hepimizin bildiği gibi, Legolar oyun için üretilmiştir fakat oyun malzemesi olmasının yanı sıra ders materyalleri olarak da kullanılırlar. Çocukların fantezi, üretkenlik yönlerini uyarmasının yanında ayrıca birlikte çalışma ve problem çözme becerilerini de geliştirir’’5 diye önemli bir noktaya temas ediyor. 2013 yılında Amerika’da ve Rusya’da öğretim materyali olarak pazara sürülmeden önce LESS’in test edildi ve farklı okullarda ve farklı seviyelerdeki sınıflarda pilot uygulamaları yapıldı. 6 Amerika’da ilk-orta öğretim seviyesinde yayınlar yapan ‘’District Administration Magasine’’ adlı 1 AAES, Jette, LEGO som læringsværktøj, s. 53, AARHUS UNIVERSITETSFORLAG, 2014 GLENBERG, A., Language and Action, OXFORD UNIVERSITY PRESS, 2007 3 AAES, Jette, LEGO som læringsværktøj, s. 52, AARHUS UNIVERSITETSFORLAG, 2014 2 4 MARTINEZ, S. & STAGER, G., Invent to Learn, Constructing Modern Knowledge Press, 2013 5 AAES, Jette, LEGO som læringsværktøj, s. 53, AARHUS UNIVERSITETSFORLAG, 2014 6 GLENBERG, A., Language and Action, s. 361-367, OXFORD UNIVERSITY PRESS, 2007 �dergide, okuyucuların seçtiği en iyi yüz ürün listesinde ödül kazandı. Sadece Amerika’da değil Avrupa’nın önemli üniversitelerinde de araştırma konu oldu. İngiltere’de Cambridge Üniversitesi Eğitim Fakültesi’nden David Whitebread: ‘’Araştırmamız öğrencilerin nasıl verimli bir okuyucu olması ile ilgilidir. Araştırma sonuçları bize: çocukların hayallerini sergileyebildikleri ve ifade ettikleri oyunların, öğrenciler arasındaki birlikte çalışma ve problemleri çözme konusunda aktif bir oynamaktadır. LESS bu bağlamda oyun tuğlaları aracılığıyla amacına ulaşan bir materyaldir’’7 demiştir. Merete Vester, dördüncü sınıfların danimarkaca, fen bilimleri ve matematik öğretmenidir. Fen bilimleri derslerinde LEGO Mindstorms setini kullanmaya aşina olduğu için LESS’i danimarkaca dersinde kullanmanın verimli olacağını düşünmüş. ‘’Uzun yıllar danimarkaca dersinde kullanmak için kullanışlı materyaller araştırdım. Danimarkaca dersi farklı alanlarda zorluklar yaşanabilen bir ders. Öğrencilerden bir bölümü sıralı bir şekilde bir hikayeyi oluşturma konusunda çok başarılı olamıyorlar. Bir öğretmen olarak çoğu zaman özellikle erkek öğrencileri hayal dünyalarını, fantezilerini kullanmak için motive etmek zor oluyor. Bu yüzden yazı ile ilgili herhangi bir çalışmaya başlamadan önce sınırları belirlenmiş konularla uğraşma fikri çok doğru geldi.’’8 Vester sınıf için materyalleri 2013 yılında kullanmaya başlar. O günden beri kısa süreli derslerde de ve uzun süreli projelerde de LESS’i kullanmaktadır. Örneğin; ‘’Çirkin Ördek’’ hikayesinin proje olarak değerlendirildiği sürecin bir parçası olan ‘’Hırsız, herkesi çalar sanarmış’’ teması legolarla işlenmeye başlanır. ”Grup çalışmalarında verimli olmak genellikle akademik yönden başarılı olan kız öğrencilerden beklenen bir tutumdur. Legolarla çalışma esnasında erkek öğrencilerin daha uzun süre ilgili olduklar ve aktif rol aldıklarına şahit oldum’’9. Vestre Okulu’nda dördüncü sınıfların danimarkaca öğretmeni olan Heidi Helsinger, olumlu sonuçları ve tecrübelerini şöyle ifade ediyor: ‘’Derslerde ilgi ve dikkat süresini arttırabilme konusunda çok çaba sarf ettim. Sınıflarda dikkatin dağılmasının yanı sıra yaşanan iletişim sıkıntıları, problemleri gibi çaresiz kalınan konular da var. Ayrıca bu öğrenciler okuma ve yazma alanlarında başarılı değiller. Okulda LESS için kurulan LEGO laboratuvarında grup çalışmaları ile bahar sezonu geçirilir. Seçilen bir hikayenin –Küçük Deniz Kızı- sahneleri lego parçaları ile 7 AAES, Jette, LEGO som læringsværktøj, s. 55, AARHUS UNIVERSITETSFORLAG, 2014 8 AAES, Jette, LEGO som læringsværktøj, s. 56, AARHUS UNIVERSITETSFORLAG, 2014 9 AAES, Jette, LEGO som læringsværktøj, s. 56, AARHUS UNIVERSITETSFORLAG, 2014 �inşa edilir. Öğrencilerin derse, ödevlere olan ilgisinin artışını görmek oldukça önemli bir motivasyon oluyor. Çoğu zaman öğrenciler yaptıkları işin içinde kayboluyorlar. Tek bir öğrencide değil sınıfın genelinde ders aralarında bile inşa etme ile ilgilenme arzusu görülmektedir. Özellikle sunumlar esnasında çocukların bir çoğunda tomurcukların çiçek açması gibi gelişimler mevcuttur’’10 diyor Heisinger. Öğrenciler tuğlalardan hikayenin sahnelerini kendilerine göre inşa ederken, yaptıklarının resimlerini çekip sisteme yerleştiriyorlar. Daha sonra resimlerin üzerine eklenen konuşma baloncuklarını dolduruyorlar. Heisinger, sınıfındaki Down Sendromlu öğrencinin LESS ile çalışmasını şöyle aktarıyor: ‘’ Sınıftaki arkadaşlarından biraz farklı olarak daha büyük tuğlalar -Duplo- ile çalıştı. Çalışma esnasında motor yönünü geliştiren aktiviteler daha ağırlıktaydı. Daha sonra kendi hikayesini anlatırken kaydettim. Cümleler üç dört kelimeden oluşmaktaydı. Hikayeden yola çıkarak hayal etme ile ilgili rahatlık kendini göstermekteydi. Yapmış olduğu kısa canlı performansı kaydettiğimiz filmi sınıfa gösterdik. Bu onun için sınıfın önündeki ilk ‘’canlı’’ sunum tecrübesi gibi oldu. Onun, bir öğretmen olarak benim ve sınıf için pozitif ve unutulmaz bir tecrübe olmuştu’’.11 Derslerde çok başarılı olmayan öğrenciler için LESS yeni fırsatlar oluşturmaktadır. ‘’Her şeyden önce sınıf içinde sessizliğin sağlanması muhteşemdi. Öğrenciler ilk başlarda planlanan yapıyı benzer ve kusursuz şekilde inşa etme ile ilgili çok zaman harcadılar. Daha sonra yapacakları sunuma hazırlanmaları uzun zaman aldı. Çoğu başarılı öğrenciler de elektronik bir sunum hazırlama konusunda başarılı değillerdi. Sınıf arkadaşlarından yardım almak suretiyle tamamlayabildiler. Bu yardımlaşma öğrenciler arasında verimli bir çalışma ortamı oluşmasına destek oldu. Gruplar diğerlerinin yaptıklarında karşı da merak içindeydiler. Bu pek alışık olmadığımız bir durumdu’’12 diye devam ediyor. LEGO-StoryStarter (LESS) ‘’BANA HİKAYENİ ANLAT’’ 10 AAES, Jette, LEGO som læringsværktøj, s. 57, AARHUS UNIVERSITETSFORLAG, 2014 11 AAES, Jette, LEGO som læringsværktøj, s. 57, AARHUS UNIVERSITETSFORLAG, 2014 12 AAES, Jette, LEGO som læringsværktøj, s. 55, AARHUS UNIVERSITETSFORLAG, 2014 �LESS, ilkokul 2-5 sınıf öğrencileri için konuşma, dinleme, okuma, yazma, teknoloji ve sayısal öğrenim alanlarındaki becerilerini geliştirmek için tasarlanmıştır. Öğrencilerin doğalarına uygun yöntemlerle hikaye oluşturma ve anlatma deneyimi kazandıran özgün bir öğrenim aracıdır. Dil ve anlama becerilerini geliştirir. LESS, sayesinde, öğrenciler, daha ilk adımdan itibaren, hayal güçlerini kolayca kullanıp, hikaye karakteri, replik, diyalog ve hikaye yapısı geliştirip, üretim sürecine katılırlar. Hikaye oluşturma ve anlatımının öğretmen tarafından desteklendiği bir süreç içinde öğrencilerin okur yazarlığı gelişir; hikaye, masal ve günlük olayları rahatça dile getirebilirler ve özgüven duygusuyla iletişim kurabilirler. Olayları doğal bir sırayla sıralama becerisi, hayal gücünü canlandırıp, anlama becerisini geliştirip, öğrencilerin yepyeni fikirler üretebilmesine destek olur. Bir taraftan öğrenciler, hikaye, sahne, nesne, varlık, karakter gelişimi, replik, diyalog, eylem, eylem sonrası heyecanlı beklenti, önceden kararlaştırılmış başlangıç ve sonlar, zaman içinde akış ve gelişim, ardışık olayları anlatan sahneleri tek tek kendi elleriyle inşa ederken, diğer taraftan dil ve kritik düşünme alanlarında beceriler geliştirirler. Öğrencilerin öğrenim seviyesine uygun olarak seçilebilen etkinlikler, öğrenciler arası farklı becerilerin ortaya çıkabildiği tamamlayıcılığı besleyip, işbirlikçi çalışmayı, fikir, kavram ve deneyim paylaşımını teşvik eder. LESS; • Bir çok farklı konuda kendilerine güven duyarak konuşmalarına, • Hikaye kurgulayıp, sıralayıp, tekrarlayabilmelerine, • Konuşma, dinleme, anlama becerilerini güçlendirmelerine, • Okuma ve yazma becerilerini geliştirmelerine, • Hikaye, karakter, ve olay zincirlerini ayrıştırabilmelerine, • Yazı türlerini fark edip, anlamalarına, • Teknoloji ve sayısal öğrenimi doğal bir şekilde birlikte kullanmalarına yardımcı olacaktır. �LESS Temel Set : Çeşitli karakterler, hayvanlar, aksesuarlar, klasik masal parçaları, temel tuğla, 5 adet hikaye sahnesi oluşturabilecek inşa plakası ve hikayeler için çark kurmak için bir adet ekstra plaka bulunan dikkatlice seçilmiş toplam 1.144 parçadan oluşur. Hikayeleri oluşturubilmek için sahne, olay yeri, zaman, duygu durumlarını belirleyen materyaller de sette mevcuttur. Her bir LESS paketi, hikaye oluşturmak için işbirliği içinde çalışan 5 öğrencinin ihtiyacını karşılar. Bu etkinlik paketi 24 ayrı etkinlik ve etkinlikleri dijital olarak sunabilmeyi mümkün kılan StoryVisualizer yazılımını da içerir. Bu materyal aynı zamanda daha geniş kapsamlı çapraz-müfredat uygulamalarının kullanımı için de uygundur. LESS Etkinlik türleri: Dört farklı türde etkinlik bulunur: 1. Başlıyoruz 2. Gündelik hikayelerimiz 3. Hikaye oluşturalım ve anlatalım 4. Hikayeleri tekrar anlatıp, tahlil edelim Yukarıda sözü geçen etkinlikler müfredatın odaklandığı alan, öğretmen tercihi ve öğrencilerin sınıf düzeyi doğrultusunda seçilebilecek bir kaynak kütüphanesi olarak görülebilir. Ancak “Başlıyoruz” etkinlikleri ile başlayıp, “Gündelik hikayelerimiz” ve “Hikaye oluşturalım ve anlatalım” etkinliklerinden seçme etkinlikler ile devam etmenizi öneririz. Bu, hikaye oluşturma becerilerini edinme yolunda doğal bir gelişim sağlar. “Hikayeleri tekrar anlatıp, tahlil edelim” etkinlikleri sürecin herhangi bir basamağında öğrencilerle tanıştırılabilir. 1. Başlıyoruz : Öğrencilerin malzeme ve parçalar ile aşina olmaları çok önemlidir. Aksi taktirde, hikaye oluşturma sürecinde, bunları yapıcı bir şekilde kullanma konusunda zorlanabilirler. Başlıyoruz etkinlikleri bu konu üzerine odaklanır ve daha ileri seviyelere geçişi hızlandırmak için tasarlanmıştır. 2. Gündelik hikayelerimiz: Bu etkinlikler öğretmenlere, öğrencilerine, doğum günü partisi, okul gezisi, TV belgeseli, toplumla ilgili günlük olay ve deneyimler, kitap veya makale eleştirileri hakkında konuşmalarını sağlayan fırsat sunar. “Ön hazırlık yapalım” bölümünde bulunan örneklerde öğrenciler senaryoyu içeren birer sahne oluştururlar. �3. Hikaye oluşturalım ve anlatalım: Bu etkinlikler sırasında öğrenciler hikaye yapısının temel unsurlarını keşfederler. “Hikaye çizgisi” diye adlandırılan genel hikaye yapısı, değişik sahnelerden oluşur. Her bir sahne, hikayenin ardarda sıralanan bölümleri içindeki bağımsız bir bölümü temsil eder. Öğrencilerin sınıf ve yeterlik düzeyine bağlı olarak bir hikaye giriş (hazırlık), gelişme (olay) ve sonuç (çözüm) olmak üzere üç sahne, veya giriş, kurgu, dönüm noktası, çözüm, ve sonuç olmak üzere beş sahneden oluşabilir. Bir hikaye beş kişiye kadar öğrenci tarafından oluşturulabilir. Hikayenin gidişatına beraber karar verdikten sonra öğrencilerin her biri bir sahne yapısını oluşturur. 4. Hikayeleri tekrar anlatıp, tahlil edelim: Bu etkinlikler tanınmış hikayelerin öğrencilerin yeterlilik düzeylerine uyarlanmasını, değişik yazı türleriye çalışmasını ve bunları tahlil etmesini sağlar. Öğrencilere bir hikaye okuyun ve onlardan hikayeyi tekrar oluşturmalarını ve anlatmalarını isteyin. Bu süreci yazı türü özelliklerini ve karakterleri tahlil etmek için kullanın. Öğrenciler kendi sıralı eylemlerini ve hikaye sonlarını da ekleyebilirler. Tanınmış bir hikayeye kendi başlangıçlarını ekleyebilirler veya karakterlerin duygu durumunda veya hikayenin geçtiği olay yerinde değişiklik yapabilirler. Daha sonra da bu değişikliklerin olaylar zinciri ve hikaye akışı üzerindeki etkisini keşfedebilirler. 5N1K modeli bütün etkinliklere uygulanabilir. Hikayeye bir yapı sağlar ve öğrencilerin başlıca hikaye oluşturma unsurlarına odaklanmalarına yardımcı olur. Hikaye oluşturma sürecinde bu altı unsurun göz önünde bulundurulması gerekir. Kim hakkında, nerede geçiyor, ne zaman oluyor, ne oluyor, neden oluyor ve nasıl oluyor soruları hikaye oluşturmada odaklanmayı sağlar. Hikayeni Canlandır Yazılımını Kullanmak (StoryVisualizer) Öğrenciler, gerçek ve hayali deneyimleri ve olayları tasvir etmek, fikirlerini ifade etmek ve desteklemek ve işledikleri konuları anladıklarını göstermek için yazı becerilerini geliştirirler. Yazı yazmanın önemli amaçlarından birinin, bazen hiç aşina olmadıkları dinleyicilere, basit ve kolayca anlaşılır bir yolla, bilgi aktarmak olduğunu öğrenirler. Zamanla, yazılarının stil ve içeriklerini okuyucuya göre değiştirmeyi de öğrenirler. Aynı zamanda, hem araştırma yoluyla bilgi edinme kapasitelerini, hem de edebi ve bilgi içeren kaynaklara analitik yaklaşabilme kapasitelerini geliştirirler. Bu düzeyde bir yeterliliğe ulaşabilmek, ancak yazı yazmaya ve bu �konuda farklı alıştırmalara zaman ayırarak gerçekleşir. Bir çok öğrenci akıcı bir şekilde okur, ancak yazı yazmakta zorlanır. Fikir sahibi olsalar bile, yazının başlangıç paragrafını oluşturup, bir dizi fikri peş peşe dizip yazıyı geliştirme, ve sonunda yazıyı mantıklı, anlamlı bir sonuca ulaştırabilme, ancak yoğun çalışmalar sayesinde olur. Bazı öğrenciler yazılarını desteklemek, görselleştirmek, ve fikirlerini daha sağlıklı aktarabilmek için resim çizerler. StoryVisualizer yazılımı, öğrencilerin hikaye anlatırken, yalnızca kelimeleri kullanarak çözemeyecekleri konuları, kelime ve görselleri birlikte kullanıp, çözmelerine yardımcı olur. Öğretmenler, yazılımı öğrenim ve kullanım sürecinde gereken desteği sağlayarak öğrenciye rehberlik ederler. Yazılım, öğrencilerin akademik düzeylerine uygun çeşitli düzen şablonları içerir. Örneğin, “çizgi roman” şablonu, öğrencilerin hikaye anlatmaları için yazı ile desteklenmiş farklı görsel kullanımlarına olanak tanır. Bu şablonu kullanarak öğrenciler, aynı zamanda belirli unsurları doğrudan sadece yazı içeren belgelerin içine aktarmayı da öğrenirler. Örneğin, bir konuşma balonu içerisinde yer alan yazı, tırnak işareti içerisinde de kullanılabilir. Şablonları kullanıcı tercih ve yetenekleri doğrultusunda isteğe göre uyarlamak da mümkündür. StoryVisualizer yazılımı, öğrenciler için yeni bir yayın aracı olur. Yazılımın kullanılması, hikaye yazmayı, basmayı, yayınlamayı, ve diğer öğrencilerle paylaşmayı kolaylaştırır. Hazırlanan belgeler, ebeveynlere e-posta yoluyla gönderilebilir veya internet sitelerinde yayımlanabilir. StoryVisualizer yazılımı aşağıdaki yararları sağlar: • Bilginin görsel temsili • Önemli bilginin kolay hatırlanabilir grafik olarak temsili • Öğrencileri düşünmeye, oluşturmaya, ve yazmaya teşvik eder • Diyalog yazmak için mükemmel bir zemin olur • Yazı yazmaya ilgilisi düşük olan öğrencileri teşvik eder. • Hikaye yazarken ve resimli taslak oluştururken fikirlerin düzenlenmesine destek olur • Görsellerin, bir hikaye ya da konuya anlam vermesini sağlar �• Üst düzey düşünme becerileri geliştirir • Görsel-sözel bağlantılar ile öğrencinin kompozisyon becerilerini güçlendirir • Okuma, yazma ve düşünme becerilerini geliştirir • Bir ölçüm ve değerlendirme aracı olur StoryVisualizer yazılımı, StoryStarter hikayelerinizi belgelemenizi sağlar. Basit ve kullanımı kolay grafik kullanıcı arayüzü, yazdırmak veya başkalarıyla paylaşmak için yüksek kalitede hikayeler oluşturmayı kolaylaştırır. StoryVisualizer yazılımı, aktarılmış resim, internet kamerası fotoğrafı, arka plan, kırpıntı çizim, ve kolay kullanımlı yazı aracı özellikleri sayesinde, öğrencilerin hikayelerini daha da geliştirmelerine olanak sağlar. Yazılım, kullanıcının yaratıcılığını güçlendirir ve yaratıcı yazı becerilerini fark etmesine yardımcı olur. LESS’in kazanımları Dil için belirlenmiş kazanım modeli bütün etkinlik materyalinin başlangıç noktasını oluşturur. Öğrenciler etkin olarak keşfederken, oluştururken, inşa ederken, hikaye anlatırken, sorgularken ve iletişim kurarken bir çok alanda beceriler geliştirirler. StoryStarter, öğrencilerin aşağıdaki kazanım modelinde de gösterildiği gibi konuşma ve dinleme, okuma ve yazma alanlarında beceri, bilgi, ve anlayışlarını geliştirmelerine yardımcı olur. Etkinlik Paketi Kazanım Kılavuzu Etkinlik Adı Etkinlik Türü Çevir ve Başla Başlıyoruz Duygu durumunu Seç Başlıyoruz Ne Büyük Bir Deneyim Gündelik hikayelerimiz Ağacı Özgür Bırak Gündelik hikayelerimiz Çatla Volkanı Patladı Gündelik hikayelerimiz Yaşlı Adamın Hediyesi Gündelik hikayelerimiz Kaçak Kedi Gündelik hikayelerimiz Konuşma ve Dinleme Okuma Yazma �Gezginodun Adası Gündelik hikayelerimiz Kış Eğlencemiz Gündelik hikayelerimiz Muhteşem Bir Stadyum Gündelik hikayelerimiz Bekle Kamp Ateşi, Geliyoruz Gündelik hikayelerimiz Son Dakika Haberi Gündelik hikayelerimiz Sirkte Heyecan Gündelik hikayelerimiz Yapış Yapış Durumlar Hikaye oluşturalım ve anlatalım Utangaç Can Parkta Kayıyor Hikaye oluşturalım ve anlatalım Veli’nin Hayali Hikaye oluşturalım ve anlatalım Çok Gizli Bir Harita Hikaye oluşturalım ve anlatalım Beni Seç, Beni Seç! Hikaye oluşturalım ve anlatalım Müzede Bir Gece Hikaye oluşturalım ve anlatalım Küçük Deniz Kızı Hikayeleri tekrar anlatıp, tahlil edelim Keder ve Korku Hikayeleri tekrar anlatıp, tahlil edelim Kendi Kısa Şiirim Hikayeleri tekrar anlatıp, tahlil edelim Bitmeyen Efsane Hikayeleri tekrar anlatıp, tahlil edelim KAYNAKÇA AAES, Jette, LEGO som læringsværktøj, Aarhus Universitetsforlag, 2014, GLENBERG, A., Language and Action, s. 361-367, Oxford University Press, 2007 MARTINEZ, S. & STAGER, G., Invent to Learn, Constructing Modern Knowledge Press, 2013 �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3603 Title A name given to the resource BANA HİKAYENİ ANLAT Author Author Guvenc, Ufuk Abstract A summary of the resource. Özet Modern psikoloji ve pedagoji verilerine göre hazırlanan yeni dönem dil öğretim sistemleri, çocukların dil öğrenme ilke ve yöntemlerine göre hazırlanmaktadır LEGO, son yirmi yıldır yaptığı çalışmalar sonucunda farklı bir dil öğrenim sistemini piyasaya sürdü. LEGO-StoryStarter (Bana Hikayeni Anlat) ismini verdiği ve LESS diye kısaltılan sistemde dilin farklı alanları için belirlenmiş kazanımlar, etkinlik materyallerinin başlangıç noktasını oluşturur. LESS, ilkokul 2-5 sınıf öğrencileri için konuşma, dinleme, okuma, yazma, teknoloji ve sayısal öğrenim alanlarındaki becerilerini geliştirmek için tasarlanmıştır. Öğrencilerin doğalarına uygun yöntemlerle hikaye oluşturma ve anlatma deneyimi kazandıran özgün bir öğrenim aracıdır. Dil için belirlenmiş kazanım modeli bütün etkinlik materyalinin başlangıç noktasını oluşturur. Öğrenciler etkin olarak keşfederken, oluştururken, inşa ederken, hikaye anlatırken, sorgularken ve iletişim kurarken bir çok alanda beceriler geliştirirler. StoryStarter, öğrencilerin aşağıdaki kazanım modelinde de gösterildiği gibi konuşma ve dinleme, okuma ve yazma alanlarında beceri, bilgi, ve anlayışlarını geliştirmelerine yardımcı olur. Anahtar Kelimeler: Dil Öğretimi, Etkinlik, Materyal Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PI Oriental languages and literatures Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3610 Title A name given to the resource THE IMPACT OF PERSONAL BACKGROUND AND ENVIRONMENTAL FACTORS ON ENTREPRENEURIAL INTENTION OF WOMEN IN THE NORTHERN MONTENEGRO: MEDIATING ROLE OF PERSONALITY TRAITS Author Author HADŽIĆ, Minela Abstract A summary of the resource. Entrepreneurs are imperative for the long-term economic growth of every country. Researchers are trying to explain how important entrepreneurial intention is by taking different factors in considerations. This paper will discuss three most important groups of factors affecting entrepreneurial intention of unemployed women in the northern Montenegro. Based on literature review, those factors are personal background, personality traits and environmental groups of factors. In this study, focus will be on four factors from each group which are perceived as most important according to researchers. The study will provide new framework in this field. While some studies found that personal background and environmental factors affect entrepreneurial intention, this study assumes mediation effect of personality traits. The main research focus will be on women since majority of unemployed people in the north of the country is women whose small proportion is entrepreneur. Keywords: Entrepreneurs, Entrepreneurial intention, Unemployed Women, Montenegro Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Thesis NonPeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/8a6d93c26d41e618e20b135a0c196521.docx 4106a79ce16893e8e348996c6428db41 https://omeka.ibu.edu.ba/files/original/e6e4d77c74941975a5470fd37414e231.pdf 7c7ff65a53839ca8d73198ee77fb3442 PDF Text Text The Relationship among Transformational Leadership, Gender and Performance in Finance Sector Authors Azra Prašović, Muhammet Said Dinc Publication date 2015/4 Journal PROCEEDING BOOK Pages 121 Abstract In today’s competitive business, the performance of employees has become vital in finance sector. Some studies have suggested that employees’ perceptions of the transformational leadership and gender in their organizations have relationship with organizational performance. Although a plenty of studies support this relationship in developed countries, there is scarce empirical evidence in developing countries. This study tries to examine the relationship among the transformational leadership, gender perceptions and performance in Bosnia and Herzegovina which is a developing and transitional country. Questionnaires were distributed to 150 employees in finance sector. The relationships among variables are evaluated by exploratory factor analysis, reliability test, descriptive statistics and correlations. The study demonstrated a positive and significant relationship between transformational leadership and task performance type of job performance of employees. It also found a positive gender job performance relationship among the employees working in public and private banks of BiH. Keywords: Bosnia and Herzegovina, finance sector, gender, job performance, transformational leadership � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3232 Title A name given to the resource The Relationship among Transformational Leadership, Gender and Performance in Finance Sector Author Author HAMIDULLAH, Bayram DINÇ, Muhammet Sait Abstract A summary of the resource. In today’s competitive business, the performance of employees has become vital in finance sector. Some studies have suggested that employees’ perceptions of the transformational leadership and gender in their organizations have relationship with organizational performance. Although a plenty of studies support this relationship in developed countries, there is scarce empirical evidence in developing countries. This study tries to examine the relationship among the transformational leadership, gender perceptions and performance in Bosnia and Herzegovina which is a developing and transitional country. Questionnaires were distributed to 150 employees in finance sector. The relationships among variables are evaluated by exploratory factor analysis, reliability test, descriptive statistics and correlations. The study demonstrated a positive and significant relationship between transformational leadership and task performance type of job performance of employees. It also found a positive gender job performance relationship among the employees working in public and private banks of BiH. Keywords: Bosnia and Herzegovina, finance sector, gender, job performance, transformational leadership Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/f9ac7ee3548c446b6c68d313dbfdb4ee.pdf 08c67a8b0eb902c2cb1cc98887f0be8f PDF Text Text THE IMPACT OF VIRTUALIZATION AND CLOUD COMPUTING TO MODERN BUSINESS Aida Habul School of Economics and Business in Sarajevo, University of Sarajevo Bosnia and Herzegovina aida.habul@efsa.unsa.ba Merdžana Obralić International Burch University Bosnia and Herzegovina Merdzana.obralic@ibu.edu.ba Miza Habul The Audit Office for Institutions of FbiH Bosnia and Herzegovina Dario Frimel School of Economics and Business in Sarajevo, University of Sarajevo Bosnia and Herzegovina Abstract: Nowdays, the increasing application of information technology in modern business and life in general, virtualization and cloud computing are new solutions designed to increase the level of system abstraction and degree of utilization of computer performance. New technologies offer the flexibility, the ability to adapt workloads resources and to realize cost savings of IT infrastructure in terms of administration and support costs. The period when the big companies had a monopoly and control over resources and information are far behind us and the only companies to survive in the future are „smart“ companies. This paper defines the terms virtualization and cloud computing and explains its importance as the challenge of rapid success and growth of the company. Special attention is focused on the savings and its benefits. The advantages of applying virtualization and cloud computing are numerous only in case they are implemented in the right way, although many managers have doubts about this technology. The data is obtained through an online survey which was conducted in the companies in Bosnia and Herzegovina as well as data Forrester Research that determined the current level of application of virtualization and cloud computing in the world and companies in Bosnia and Herzegovina. Besides, it pointed out the guidelines of the future steps. Keywords: virtualization, virtual organization, cloud computing, smart companies, IT savings. Introduction Virtualization is latest trend in technology solutions that are designed to increase system abstraction level and computers performance capacity use. Virtualization is proven software technology that simply transforms IT environment. We are behind the time where big companies had some kind of monopoly and control over resources and informations. Only „inteligent“ companies will survive in the future, with best and fasstest information flow. ICESoS 2016 - Proceedings Book 343 �International Conference on Economic and Social Studies (ICESoS’16) In times of global crysis, it’s very important for companies to achieve lower costs compared to competition, without changing product and service quality they offer. Planned investments in information technology is one of the ways for company to achieve such goal. In this research we will show solution known as virtualization or virtual platform, which enables easier management of information system and achieves savings who were not achiveable by other solutions. This paper will show benefits of virtualization because they are primary reason why virtualization has succed in previous years. Server virtualization and desktop computer virtualization are two most common implemented types and therefore we’ll focus on benfits that these types provide. IT infrastructure needs a change and virtualization can be a solution. Virtualization has big influence on arhitecture, infrastructure, processes, operations, people, skills and business in general. Virtual organization enables lowering operational costs and optimal use of resources. Accepting virtualization depends on organization, people need to understand this concept that embraces many questions and solves problems. Being familiar with technology is not enough. Transformation process, from classic to virtual organization, is complex managerial activity. What is virtualization and what impact does it have on modern business Constant inovations in fields of information technology make it most dynamic science of todays age. Virtualization is one of the latest inovations in this field which presents attribute of something that should be in present but it isn’t. Concept of virtualization is based on abstract representation of funcionality and resources. For user (human or application) there is no difference between virtual and real funcionality, but real values and activities in virtual performance are different than those presented to user. Using virtualization it’s possible to achieve lower costs, and this will be most noticable in larger and more complex systems. Todays powerfull PCs based on x86 arhitecture are projected for one operational system and very small number of applications on it, which leads to very low performance capacity use. Virtualization is the one that solved this problem. As an example, real operational system communicates directly with hardware while virtual operational system has for a user all attributes of real system but it is being runned on other real system. Therefore, communication is not being done with hardware but with another system. That other system is taking a role of hardware in communication with virtual system. The work of hardware is being simulated by program language and therefore work we call it virtual system. Virtualization can mean that user through virtual interface is using multiple computers as one. Work of multiple applications and processes on single physical machine, sharing hardware between multiple operative systems on it, is what is considered virtualization. When we talk about shared hardware, we are talking about processor, memory, hard drive space and networking. With todays presence of powerfull machines, we are encountering servers that only for a fragment of their time use resources and are mostly free. That capacity, that is not being used, is something company is not allowed to have because optimization of business is one of the kys to success. Virtualization is allowing us to optimize resources available on servers, so instead buying new machine for operative systems or applications. Through virtual platforms we are able to use existing resources and through that we are lowering costs. This is most noticable in big companies that have large amount of computers. Lowering costs is not only existant in savings through not buying new computers. Costs are being saved through lowering maintance costs, having less machines means less maintance costs and having less computers is also beneficial for companies that are following ecological trends. 344 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation One of the biggest advantages of virtualization is that experts in company don’t have to plan new infrastracture procurment, operative system installations and all other prework activities. Instead, they can focus installing applications on existing virtual server unit. Applications can be put to use shortly and the time saved from previous mentioned acitivites can be allocated on improving functionality of information infrastructure and optimization of business processes. To understand how virtualization works it is very important to understand what is virtual machine and virtual infrastructure. Virtual machine acts like a physical machine, it contains virtual processors, RAM, hard drive and netrwork interface. Also, virtual machine (later in text refered as VM) can standalone run operative systems and applications same as if its physical computer/server. For virtual machine it’s characteristic that it is fully made out of the software, which means it doesn’t contain any hardware components. Basic characteristics of virtual machines are: • • • • Isolation – virtual machines are seperated from each other like they are physicaly seperated. Compatibility – virtual machines are compatible with all hardware standards based on x86 processors. Hardware indepedency – virtual machines are run independently from basic hardware. Virtual infrastructure – it enables sharing physical resources of phsyical machines on whole infrastructure. VM allows sharing resources of one computer to many virtual ones so we could reach maximum efficency. Creating virtual infrastructure allows greater flexibility and higher speeds than using commonly using hardware. System resources, that are needed for individual applications, are distributed to virtual machines that are running those applications. That eliminates costs of installation and configuration of new hardware. As a result we are having maximum capacity usage and exceptional ability to manage valuable IT infrastructure. Pros and cons of virtualization There are many virtualization benefits, but we will mention only the most important ones. Cutting down costs: Systems not in use, in present time when optimization of all parts of the business is essential for companies survival, is not something company wants. Virtualization enables optimal use of available resources on servers instead buying new hardware. If we are to do consolidation of servers into one, we are lowering amount of hardware and with that even the physical space it takes. Large companies that have huge systems will have to rent or use less space for hardware and by doing so they are lowering costs. Less physical servers means less electrical energy spent and with that being said, we must take in consideration that fewer servers means less heating in room and less use of cooling systems which ultimately leads to saving costs in long term. ICESoS 2016 - Proceedings Book 345 �International Conference on Economic and Social Studies (ICESoS’16) Picture 1: Costs overview before and after virtualization1 Simple maintance – if we lower the number of physical servers we have simplified system maintance, therefore we are lowering number of repetitive tasks that take time. Those tasks are control, configuration, upgading and similair tasks. Big advantage of system virtualization is easier system migration in virtual environment. It is certain that virtualization makes job easier when it comes to system administrator tasks and others involved in implementation and maintance of IT equipment, of course additional education is neccessary when it comes to managing virtual enviroments. Productivity – once virtual environment is set-up IT personnel will perform tasks easily instead of taking hours to finish them. For example, migration from one server to another, or after server crashes and gets destabilized, using virtualization tools it takes only couple seconds to get it back in working state. Using virtualization efficently IT personnel will become more productive, and by them becoming more productive, downtime of servers will be lowered which increasese productivity on whole company level. Testing – virtualization enables us simple system restore in previous state which is great feature that you want to have when you are testing new applications that could crash server. Before testing, only thing we have to do is make a backup copy of system in case we face some errors durign the testing that would crash server. It is not uncommon that we want to test applications or systems before putting them to use. It is recommended to test applications in safe environment where downtime of servers wouldn’t hurt business performance or operational functions. When we are talking about cons of virtualization, we must mention all in one place problem. Biggest issue that is troubling virtualization is that everything is in one place. If error happens on one server that is host of virtual machine, all machines are unavailable. Although this sounds terryfing, it is not. Systems can be secured with redundant servers that will take over all functions in case of crash/downtime. We can take additional measure such as backups that will secure our data. Another issue that virtualization comes up with is new servers. 1 D. Đorđević, D. Glavašević and D. Krnjak (n.d) „Ekonomski učinci primjene softvera za virtualizaciju“ 346 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Virtualization demands powerfull servers that support virtualization technology. Although we are lowering number of physicaly needed server units, we can’t rely on using old server for virtualization solutions. This could mean additional costs in IT departments budget, but in long term virtualization pays off. When we are talking about number of servers, there is one issue that must be adressed in virtualization. Once we learn how to install servers easily, amount of servers could increase faster than number of administrators that are needed to maintaine them. It’s is neccesary to limit resources for virtual servers because we might find ourselves in situation of overburdened virtual server. Compliance and skills of IT personnel play biggest role in this situation. If we are creating virtual machines that are going to be unused just like physical ones used to be, than we haven’t optimized our system at all. Education plays major role in virtualization. To virtualize environment we need to have IT personnel capable of understanding technology for virtualization, therefore education is neccesary for IT staff. Adding new layer of complexity, we are adding a possibility of new problems to come. Solving those problems can significantly increase time of fixing other issues at hand. This only applies if we have uneducated personnel. With proper education and benefits of central management that is brought through virtualization, it is almost certain that intervention times will be lower. Virtualization in numbers Virtualization technology use leading world companies, and based on these numbers, we can see how important position virtualization takes:2 • • • • • • • • 100% - companies of top 100 companies use virtualization. 98% - of first top 500 companies use virtualization (491 out of 500) 96 – of first top 1000 companies use virtualization (955 out of 1000) 50 out of top 50 banks use it 5 out of 5 top global aerial companies 9 out of 10 top chemical companies 5 out of 5 top oil companies 10 out of 10 top pharmaceutical companies Development degree of virtual business practice in developing countries Characteristics of new age, that is business in 21st century are: globalization, knowledge and ICT. Characteristics that affect virtual organizations are: characteristics of market, production process and strategic goals of organization. 2 Source: http://www.vmware.com/company/customers/ ICESoS 2016 - Proceedings Book 347 �International Conference on Economic and Social Studies (ICESoS’16) Chart 1: Teleworkers share in develping european countries As we can see in chart 1, we have presented teleworkers share in total number of employeed in developed countries. Biggest share in total number is measured in Finland (16.8%) while that share is lowest in England (2.8%). Although England is on last place, United Kingdom is on 5th place with 7.6% among European countries, positioning itself in front of EU10 (6.1%). On the next chart we can see data from period of 1999 and 2005. Clearly we can see that with advance in information technology there is advance in share of teleworkers in total number of employeed people. In Finland that had biggest precentage in share, there was a leap from 16.8% to 29.4%. Netherland takes second place with rise from 14.5% to 25.2% while United Kingdom has shown rise as well holding position in front of EU10 with 11.7%. Chart 2: Estimated share of teleworkers in total number of employed in 2005. 348 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation We have conducted research in Bosnia and Herzegovina among 100 companies. Research was conducted online through Google Doc questionnaire. Analyzed companies included small businesses (1 to 49 employed), middle businesses (50 do 99 employed), large businesses (100 to 250 employed), very large businesses (250 to 499) and biggest businesses (from 1000 to 4999 employed). Companies were from public and private sector, different industries variating from education, agriculture, media, marketing and other services. Many of the questioned companies have heared of some sort of virtualization (70%) while 10% of them doesn’t even intend to use it. Also, 10% of audience doesn’t even know what virtualization is. Chart 3: Representation of virtualization knowledge and use in Bosnia and Herzegovina Research showed that virtualization lowers costs in 56% of analyzed companies while it increases them in 33% of the anaylzed companies. Increased costs while using virtualization suggests bad managing of virtualization and insufficency of skills and know-how. Chart 4: How does virtualization affect costs in companies in Bosnia and Herzegovina ICESoS 2016 - Proceedings Book 349 �International Conference on Economic and Social Studies (ICESoS’16) Conclusion It’s a fact that we all are functioning under some organization and they are changing over the time. Business concept in 21st century is very complex and it requires from organizations to respond to modern challenges. Globalization is strenghtening communication and coordination through whole world. It is required minimal respond time on certain changes that are becoming norm and our reality. In that situation, information technology is coming to our aid, offering flexible business structure. Information technology has evolved from being side kick to managaing important processes such as transactions and other important business processes. There is increase in methods of how we store our data, which increased number of servers. Specialized applications for fields like accounting and finance almost always are done on seperate, reliable servers with redundant hardware, ensuring business continuity. This combination of factors has transformed IT environment into a messed mass of isolated, specialized and not enough used servers. Rise of costs is getting bigger because of software complexity and need to manage all the time rising number of data. Virtualization applicativity allows easier managing of information system and enables savings that hasn’t been provided by any other solution. IT infrastructure needs a change and virtualization can present one of the solutions. It has big influence on arhitecture, infrastructure, processes, operations, people and business in general. Therefore, virtual organizations lower costs through optimal use of resources. What virtualization does? First and foremost, it decreases number of servers, lowering costs in many ways through electrical energy, physical space rents and other direct costs related to maintance and work on servers. Lowering number of hardware, we are lowering number of personnel that was needed to manage and maintain hardware, lowering additional total costs. Virtualization can be achieved using free software, saving money on expensive licenses. Constant reduction of budget while keeping expected quality of services is definition of efficent IT according to conducted studies. New technologies promise flexibility, that is, ability to adjust existing resources for operative needs. Most organizations use virtualization and cloud computing, figuring out balance between resource capacity and overload of applications. Research conducted in Bosnia and Herzegovina showed that biggest obstacles in virtualization process are transfering from physical to virtual environment, insufficient cooperation with users and problems with servers. In future years it is expected great increase in implementation of virtualization in Bosnia and Herzegovina. That is confirmed by facts that leading companies in Bosnia and Herzegovina have already recoginsed potential of virtualization and implemented it and even small and medium companies are going in that direction because they are having opportunities that they couldn’t access before because of lack of resources. Bibliography • Golden. B (2007). „Virtualization for dummies“, For Dummies 1st Edition, ISBN-10: 0470148314, ISBN-13: 978-0470148310 • Moreno V. and Reddy K. (2006). „Network Virtualization“, Indianopolis: Cisco Press • Portnoy M. (2012). „Virtualization Essentials“, Sybex 1st Edition, ISBN-10: 1118176715, ISBN-13: 978-1118176719 350 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation • Sun i AMD (2008). „Virtualization for dummies“, Wiley Publishing Inc., Special Edition • Weinman J. (2012). „Cloudonomics + Website: The business value of cloud computing“, Wiley Publishing Inc. 1st Edition, ISBN-10: 1118229967, ISBN-13: 9781118229965 • Wolf C., Halter M. E. (2005). „Virtualization: From the desktop to enterprise”, Electronic publish, B001FOPW8U ICESoS 2016 - Proceedings Book 351 �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3309 Title A name given to the resource THE IMPACT OF VIRTUALIZATION AND CLOUD COMPUTING TO MODERN BUSINESS Author Author Habul, Aida Obralic, Merdzana Habul, Mirza Frimel, Dario Abstract A summary of the resource. Abstract: Nowdays, the increasing application of information technology in modern business and life in general, virtualization and cloud computing are new solutions designed to increase the level of system abstraction and degree of utilization of computer performance. New technologies offer the flexibility, the ability to adapt workloads resources and to realize cost savings of IT infrastructure in terms of administration and support costs. The period when the big companies had a monopoly and control over resources and information are far behind us and the only companies to survive in the future are „smart“ companies. This paper defines the terms virtualization and cloud computing and explains its importance as the challenge of rapid success and growth of the company. Special attention is focused on the savings and its benefits. The advantages of applying virtualization and cloud computing are numerous only in case they are implemented in the right way, although many managers have doubts about this technology. The data is obtained through an online survey which was conducted in the companies in Bosnia and Herzegovina as well as data Forrester Research that determined the current level of application of virtualization and cloud computing in the world and companies in Bosnia and Herzegovina. Besides, it pointed out the guidelines of the future steps. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/f488bf17fa2e130a4173cfd062dc4bd8.pdf 3c019835fd440c1d3562620db2ffe1e8 PDF Text Text THE RELATIONSHIP AMONG PERSONAL BACKGROUND, PERSONALITY TRAITS, ENVIRONMENTAL FACTORS AND ENTREPRENEURIAL INTENTION OF WOMEN IN NORTHERN MONTENEGRO Minela Hadžić International Burch University Bosnia and Herzegovina minela220@hotmail.com Sait M. Dinç International Burch University Bosnia and Herzegovina m.sait.dinc@ibu.edu.ba Abstract: Entrepreneurs are imperative for the long-term economic growth of every country. Researchers are trying to explain how important entrepreneurial intention is by taking different factors in considerations. This paper will discuss three most important groups of factors affecting entrepreneurial intention of unemployed women in the north of Montenegro. Based on literature review, those factors are personal background, personality traits and environmental groups of factors. In this study, focus will be on four factors from each group which are perceived as most important according to researchers. The study will provide new framework in this field. The main research focus will be on women since majority of unemployed people in the north of the country is women whose small proportion is entrepreneur. Keywords: Entrepreneurs, Entrepreneurial intention, Unemployed Women, Montenegro Introduction In recent years, the establishment of new businesses has attracted attention of many researchers. Developing countries and their policy makers have seen this issue as a core driver for improving economy and employment and in order to overcome current economic turbulence, they have focused on two terms: entrepreneurship and entrepreneurial intention. Entrepreneurship is a process of planned behavior and express ability of one person who is called entrepreneur to build new value to significant economical achievement (Ajzen, 1991)1985, 1987. Since the establishment of new business is a reason of general interest, researchers have started to discuss the concept of entrepreneurial intention firstly. Entrepreneurial intention is defined as precise human reaction and intellectual response to particular behavior (Farouk, Ikram, & Sami, 2014). In order to be able to understand this concept, it is important to clarify its antecedents. Plenty of studies have investigated individual impact of the factors affecting entrepreneurial intention. These factors are categorized into personal background, personality traits and environmental factors (Al-Harrasi, Al-Zadjali, & Al-Salti, 2014). Although the studies examine these factors influencing the entrepreneurial intention in developed countries, there is a scarcity of literature about developing and transitional countries. ICESoS 2016 - Proceedings Book 27 �International Conference on Economic and Social Studies (ICESoS’16) Montenegro is one of these countries in Balkan region. Higher unemployment rate and the global economical crisis have slowed down Montenegrin economy. On the other side, it created opportunity for small businesses (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). The question arises whether that involvement is equally distributed in this small country. Since the Montenegrin labor market is divided and there is mismatch between supply and demand, there is also regional disparities and gender inequality (Golubović, 2012). Regarding the gender inequality in Montenegro, position of the women has become an interesting issue to discuss about. Reports from 2013 states that only 9,6% of women are entrepreneurs and women’s incomes are only 86% of male income. This statistic ranked Montenegro far behind other countries in the region, as well as European Union (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013) opens door for discussion. Because women and the elderly have a considerably lower income, unemployment rate in especially north part of the country is larger than the national average (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). Overall, the most important issue of the women is what factors are influencing their potential intent to be active, to be entrepreneurs in Montenegro. So, the purpose of this study is to investigate the relationship among personal background factors, personality traits factors and environmental factors of women in Montenegro. Literature review Entrepreneurship and entrepreneurial intention Recently, entrepreneurship has been a widespread topic in academic environment. In order to better understand entrepreneurship and entrepreneurial activities, the antecedent of this concept should be known. One of the first and foremost antecedent is entrepreneurial intention. Individual belief to start new business with a clear and enthusiastic idea in a certain period of time is entrepreneurial intention (Thompson, 2009). In this definition, a highlighted point of believing of an individual that he can be entrepreneur is a starting point for creation of new businesses (Bird, 1988)entrepreneurs’ states of mind that direct attention, experience, and action toward a business concept, set the form and direction of organizations at their inception. Subsequent organizational outcomes such as survival, development (including written plans. It is created by different motivations and values (Fayolle, Liñán, & Moriano, 2014). Factors affecting entrepreneurial intention A large number of studies about influencing factors of entrepreneurial intention have emerged in the last decades. Researchers usually focus on psychological aspects of entrepreneurial intention. Regarding these aspects, the most discussed theory is The Theory of Planned Behavior (TPB). According to this theory, the things that shape behavioral intention are attitudes, subjective norms and perceived behavioral control (Ajzen, 1991). Personal background factors are age (Wagner, 2004), gender (Naidu & Chand, 2015), education (McMahon & Huijser, 2015), and business experience (Miralles, Giones, & Riverola, 2015) as indicators of entrepreneurial intention (Al-Harrasi et al., 2014). Main part in the literature concentrates on the question about what constitutes good and productive environment for entrepreneurship. Environment, as an external factor, comes in many forms and motivated by obtained literature, here it will come in a group of four elements: family support (Mark Pruett, Rachel Shinnar, Bryan Toney, Francisco 28 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Llopis, & Jerry Fox, 2009), government support (Sadeghi, Mohammadi, Nosrati, & Malekian, 2013), perceived entry barrier (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013), and political situation (Wagner & Sternberg, 2004). Certain research studies point out close relationship between personality traits factors and entrepreneurial intention, where each of them separately and differently influence one’s intention toward starting its own business (Wang, Chang, Yao, & Liang, 2015). Some important personality traits factors are innovativeness and need for achievement (Samydevan, Piaralal, Othman, & Osman, 2015), risk taking (Yurtkoru, Acar, & Teraman, 2014), and self-confidence (Peter B. Stimpson Robinson, 1991). The demographic analysis show that there are differences between men and women in many aspects, as well as on venture creation, attitudes, behavior toward entrepreneurship and employment choice (Kolvereid, 1996). In the last decades, number of women choosing entrepreneurship among other occupations is raising, but small number of them are in industries not so much feminine, and it is result of gender stereotyping (Sweida & Reichard, 2013). Even though women entered startups, entrepreneurship remains male stereotyped (Lewis, 2006). Some assumes that small number of women ownerships are coming from their early age and are driven by low entrepreneurial intention (Kennedy & Drennan, 2002). Assessment of environment for women entrepreneurship in Montenegro Nowadays, the unstable economical situation in Montenegro stems from changes in the its labor market which started from its independence in 2006. The turbulence created significant changes in the labor market, at one point making large shift to better position, but still some deficiencies remained (Golubović, 2012). Namely, Montenegro is country in transition which needs to develop economical and social system that will provide economic well-being. One of the ways to increase economical stability is to support small and medium enterprises which should reduce poverty and unemployment in the country (Bobera, Lekovic, & Berber, 2014). The statistics said that there are more women than men in same age group, but in certified working population of Montenegro there are more men, while women are marked as “inactive” population (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). Methodology The quantitative method was used in this study. Self-administered survey is used as a tool to obtain data. Hybrid of mail and street intercept survey method of data collection is used. By using this method, participation in the study was voluntary, and anonymity is guaranteed. Measures First part of the survey includes demographic questions which are at the same time personal background questions for the framework. Second parts of questions are environmental and those questions are created to be appropriate for the northern region of Montenegro. Third part was prepared to measure personality traits and entrepreneurial intention related questions. Following Ajzen’s, (1991) TBT theory, questions about entrepreneurial intention included questions about attitudes, subjective norms and perceived behavioral control. Seven questions were adapted from the scales developed by Paço, Ferreira, Raposo, Rodrigues, & Dinis, (2011), Sagiri & Appolloni, (2009), Liñán & Chen, (2006) and Leong, 2008). Personality traits questions were based on the study of Bezzina (2010). ICESoS 2016 - Proceedings Book 29 �International Conference on Economic and Social Studies (ICESoS’16) The respondents rated the questions by using 5- points Likert scale. Survey was originally in English, and then translated into Montenegrin language. 202 useful surveys out of 450 were collected. Sample characteristics The collected data were analyzed using SPSS (v. 18) software package. The analysis is consistent of several parts forming one clear picture of examined topic. Initially, demographic questions were evaluated to describe sample characteristics. As we can see from Table 1, 44, 1% of our sample aged from 18 to 25. When it comes to education level the biggest part of the sample finished only high school (52%). Associated with the age of the sample, indicates that the biggest portion of the sample is consistent of young women, graduates from high school. Then, 45, 5% are married, while 37, 7 of the sample have children. Initial Analysis In order to define validity of the scales used in this study, exploratory factor analysis (EFA) is performed. This analysis is often used by researchers to define essential factors from its set of data (Hooper, 2012). Precisely in this study the principal component analysis was used as the factor extraction method, and the varimax method was used for the component rotations. After analysis, factor loadings and coefficient alpha is observed in order to extract variable that are not convenient for this study. Factor loadings for entrepreneurial intention are bigger than 0,8, while for personality traits are bigger than 0,6. To prove the reliability of the scales, Chronbach’s alpha was observed. Cronbach’s alpha of entrepreneurial intention and personality traits is 0,95 and 0,97 respectively. Table 1 Sample Characteristics Variable Age Education Level Marital status Children Employment status 30 ICESoS 2016 - Proceedings Book Demographics 18-25 26-35 or over 36 Total Primary school High school Undergraduate studies Graduate studies Total Single Married Total Yes No Total Employed Unemployed Total Number 89 55 58 202 8 105 60 29 202 110 92 202 75 124 202 29 173 202 Valid Percent 44,1 27,2 28,7 100 4 52 29,7 14,4 100 54,5 45,5 100 37,7 62,3 100 14,4 85,6 100 �Regional Economic Development: Entrepreneurship and Innovation More unemployed women in the family Yes 152 75,2 No Total 47 202 23,3 100 Results Correlations tests are performed to find the relationship among the variables in the study. Table 2 indicates the correlation results. The most significant correlations are between entrepreneurial intention (EI) and factors as ED (education), BE (business experience), FS (family support), GS (government support), and BN (barriers in the north) as well as between EI and personality traits factors (PT). Correlation does not exist only between AG (age) and PS (political situation). In the previous literature, there was relationship between those two factors and EI, but in this study absence of significant correlation can be explained by the nature of the sample considered. For example, having in mind that women in Montenegro are not politically active, it makes sense. Even though from the 2011 year there is “quota system” imposed by amendment for The Law on Election of Councilors and Parliament Members, for the list of the candidates to be submitted for elections requiring at least 30% to be women, it is still below the world average of 19,6% (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). Table 2 Mean, standard deviations and correlations Variables .Min .Max Mean SD 1 2 3 4 5 6 7 8 AG .1 1 3 1,85 0,841 1 ED .2 1 4 2,54 0,786 -0,091 1 BE .3 1 2 1,62 0,487 0,002 -0,131 1 FS .4 1 5 3,39 1,533 0,027 **0,264 *-0,146 1 GS .5 1 2 1,71 0,456 0,103 **0,280 0,124 **-0,185 1 BN .6 1 5 3,89 1,164 *0,175 0,041 -0,024 *0,139 **0,265 1 PS .7 1 3 2,03 0,585 0,041 -0,020 **0,256 -0,037 0,094 -0,067 1 EI .8 1 5 3,24 1,274 -0,028 *0,150 **-0,183 **0,431 **-0,185 **0,267 -0,04 1 PT .9 1 5 3,39 1,299 0,062 0,044 -0,082 **0,393 -0,111 **0,313 0,043 **0,829 9 1 ;SD: standard deviations ;p<0,05; **p<0,01* Conclusion The study completed mosaic for entrepreneurial intention regarding unemployed women in the northern region of Montenegro, making foundation for improving policies and implications for further studies. Strong effect of environmental factors on entrepreneurial intention of unemployed women suggests that changes can occur since the environment is dynamic and constantly changing. The implications of the study make more suggestions to the policy makers due to the importance of the environment in this study and the rule they have in changing it. For making valuable policy, women need to be included in the creation of new policies, they need to cooperate and conjoin in designing economic programs. Encouraging women in choosing entrepreneurship among other occupations must be their major ICESoS 2016 - Proceedings Book 31 �International Conference on Economic and Social Studies (ICESoS’16) focus. Current government should at least remove perceived barriers and make northern region more attractive for start-ups. They should follow example from other countries and apply entrepreneurship education in the formal education through enriched curriculum and trainings and show positive examples from that field. References Ajzen, I. (1991). Theories of Cognitive Self-RegulationThe theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. Al-Harrasi, A. S., Al-Zadjali, E. B., & Al-Salti, Z. S. (2014). Factors Impacting Entrepreneurial Intention: A Literature Review. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 8(8), 2479–2482. Bezzina, F. (2010). Characteristics of the Maltese Entrepreneur. International Journal of Arts and Sciences, 3(7), 292. Bird, B. (1988). Implementing Entrepreneurial Ideas: The Case for Intention. Academy of Management Review, 13(3), 442–453. Bobera, D., Lekovic, B., & Berber, N. (2014). Comparative Analysis of Entrepreneurship Barriers: Findings from Serbia and Montenegro. Engineering Economics, 25(2), 167–176. Farouk, A., Ikram, A., & Sami, B. (2014). The Influence of Individual Factors on the Entrepreneurial Intention. International Journal of Managing Value and Supply Chains, 5(4), 47–57. Fayolle, A., Liñán, F., & Moriano, J. A. (2014). Beyond entrepreneurial intentions: values and motivations in entrepreneurship. International Entrepreneurship and Management Journal, 10(4), 679–689. Golubović, V. (2012). The spectrum of employment policies and their impact on the labour market in Montenegro. SEER: Journal for Labour and Social Affairs in Eastern Europe, 15(4), 457–482. Hooper, D. (2012). Exploratory Factor Analysis. Books/Book Chapters. Retrieved from http://arrow.dit.ie/buschmanbk/8 Kennedy, J., & Drennan, J. (2002). Entrepreneurial Intentions of Women. Small Enterprise Research, 10(1), 75–87. Kolvereid, L. (1996). Prediction of Employment Status Choice Intentions. Entrepreneurship Theory and Practice, 21(1), 47–57. Leong, C. K. (2008). Entrepreneurial intention: an empirical study among Open University Malaysia (OUM) students. Open University Malaysia (OUM). Retrieved from http://library.oum.edu.my/repository/306/ Lewis, P. (2006). The Quest for Invisibility: Female Entrepreneurs and the Masculine Norm of Entrepreneurship. Gender, Work & Organization, 13(5), 453–469. 32 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Liñán, F., & Chen, Y.-W. (2006). Testing the entrepreneurial intention model on a twocountry sample. Retrieved from http://ddd.uab.cat/record/44583 Mark Pruett, Rachel Shinnar, Bryan Toney, Francisco Llopis, & Jerry Fox. (2009). Explaining entrepreneurial intentions of university students: a cross-cultural study. International Journal of Entrepreneurial Behavior & Research, 15(6), 571–594. McMahon, C., & Huijser, H. (2015). “We Don”t Need No Education?’: Moving Towards the Integration of Tertiary Education and Entrepreneurship. In M. K. Harmes, H. Huijser, & P. A. Danaher (Eds.), Myths in Education, Learning and Teaching (pp. 97–113). Palgrave Macmillan UK. Miralles, F., Giones, F., & Riverola, C. (2015). Evaluating the impact of prior experience in entrepreneurial intention. International Entrepreneurship and Management Journal, 1–23. Montenegrin Employers Federation, & IPSOS Strategic Marketing. (2013). Assessment of the Environment for Women Entrepreneurship. Naidu, S., & Chand, A. (2015). National Culture, Gender Inequality and Women’s Success in Micro, Small and Medium Enterprises. Social Indicators Research, 1–18. Paço, A. M. F. do, Ferreira, J. M., Raposo, M., Rodrigues, R. G., & Dinis, A. (2011). Behaviours and entrepreneurial intention: Empirical findings about secondary students. Journal of International Entrepreneurship, 9(1), 20–38. Peter B. Stimpson Robinson, D. V. S. (1991). An Attitude Approach to the Prediction of Entrepreneurship. Entrepreneurship: Theory & Practice, 15, 13–31. Sadeghi, M., Mohammadi, M., Nosrati, M., & Malekian, K. (2013). The Role of Entrepreneurial Environments in University Students Entrepreneurial Intention. World Applied Programming, 3(8), 361–366. Sagiri, S., & Appolloni, A. (2009). Identifying the Effect of Psychological Variables on Entrepreneurial Intentions. DSM Business Review, 1(2). Samydevan, V., Piaralal, S., Othman, A. K., & Osman, Z. (2015). Impact of Psychological Traits, Entrepreneurial Education and Culture in Determining Entrepreneurial Intention among Pre-University Students in Malaysia. American Journal of Economics, 5(2), 163– 167. Sweida, G. L., & Reichard, R. J. (2013). Gender stereotyping effects on entrepreneurial self-efficacy and high-growth entrepreneurial intention. Journal of Small Business and Enterprise Development, 20(2), 296–313. Thompson, E. R. (2009). Individual Entrepreneurial Intent: Construct Clarification and Development of an Internationally Reliable Metric. Entrepreneurship Theory and Practice, 33(3), 669–694. ICESoS 2016 - Proceedings Book 33 �International Conference on Economic and Social Studies (ICESoS’16) Wagner, J. (2004). Are young and small firms hothouses for nascent entrepreneurs? Evidence from German micro data (No. 989). IZA. Retrieved from http://papers.ssrn. com/sol3/papers.cfm?abstract_id=494202 Wagner, J., & Sternberg, R. (2004). Start-up activities, individual characteristics, and the regional milieu: Lessons for entrepreneurship support policies from German micro data. The Annals of Regional Science, 38(2), 219–240. Wang, J.-H., Chang, C.-C., Yao, S.-N., & Liang, C. (2015). The contribution of selfefficacy to the relationship between personality traits and entrepreneurial intention. Higher Education, 1–16. Yurtkoru, E. S., Acar, P., & Teraman, B. S. (2014). Willingness to Take Risk and Entrepreneurial Intention of University Students: An Empirical Study Comparing Private and State Universities. Procedia - Social and Behavioral Sciences, 150, 834–840. 34 ICESoS 2016 - Proceedings Book � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3330 Title A name given to the resource THE RELATIONSHIP AMONG PERSONAL BACKGROUND, PERSONALITY TRAITS, ENVIRONMENTAL FACTORS AND ENTREPRENEURIAL INTENTION OF WOMEN IN NORTHERN MONTENEGRO Author Author Hadzic, Minela DINC, Muahmmet Sait Abstract A summary of the resource. Abstract: Entrepreneurs are imperative for the long-term economic growth of every country. Researchers are trying to explain how important entrepreneurial intention is by taking different factors in considerations. This paper will discuss three most important groups of factors affecting entrepreneurial intention of unemployed women in the north of Montenegro. Based on literature review, those factors are personal background, personality traits and environmental groups of factors. In this study, focus will be on four factors from each group which are perceived as most important according to researchers. The study will provide new framework in this field. The main research focus will be on women since majority of unemployed people in the north of the country is women whose small proportion is entrepreneur. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3477 Title A name given to the resource THE IMPORTANCE OF FREQUENT USAGE OF VARIOUS MOTIVATIONAL STRATEGIES IN SECOND LANGUAGE ACQUISITION Author Author Hadžimehmedagić, Mahira Akbarov, Azamat Abstract A summary of the resource. Why do the students of second language acquire it with different level of achievement? Which factors influence better acquisition of L2? What is the role of motivation and motivational strategies in SLA? These questions always bother the ones who are involved in teaching process, and second language acquisition. These questions can be related to the term of motivation. Motivation is defined as the process that initiates, guides, and maintains goal-oriented behaviours, or collective set of ideas and forces that influence people to think in a certain way. So, motivation can, really be considered as a very important factor that has a great impact in students SLA, especially the motivation and the strategies employed by the teachers in the classroom. This paper is concerned about the various motivational strategies that teachers use to motivate their students while acquire the second language. In fact, how often do they use various motivational strategies in their teaching process in order to make the language acquisition and comprehension easier. The research study was conducted to find out how frequently and in which percentage are motivational strategies used by the teachers in the classroom, and which type or the group of the same was used the most. The participants of the research study were the teachers of International Primary Schools of Bosnia and Herzegovina, where English language is taught as a second language. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3605 Title A name given to the resource MANAGERIAL DECISION MAKING UNDER RISK IN COMMERCIAL BANKS: AN APPLICATION OF PROSPECT THEORY ON BANKS IN BOSNIA AND HERZEGOVINA Author Author Halaba, Amra Abstract A summary of the resource. The main objective of this research is to investigate behavioral factors in the managerial decision making under risk in commercial banking from the perspective of the basic theory in behavioral finance – the prospect theory. The study is important in that it contributes to the development of a comprehensive risk management approach in banking industry, by broadening already existing practices with behavioral finance findings, as summarized through the prospect theory. The theory explains the decision making processes, holding that managers become more risk seeking as their bank moves further below the specified targets and more risk seeking as their bank moves further above the specified targets. The theory is examined on the case of B&H banks from 1999 to 2015, in the light of returns on assets, returns on equity and capital ratio. Analyses show risk seeking among managers of banks below targets, whereas there is no evidence for risk aversion among managers of banks above target. Therefore, the prospect-theory-based model of managerial decision making offered in this research is suitable ground-basis to ingrain the behavioral insights into risk management processes in the banking industry of Bosnia and Herzegovina. Keywords: Prospect Theory, Decision Making, Risk, Commercial Banking, Bosnia and Herzegovina. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Thesis NonPeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/b267651da3fec79bb3999b4d95362e7e.pdf ab144b3ae76018f22c1791214ed4be75 PDF Text Text BEHAVIORAL FINANCE PERSPECTIVE ON MANAGERIAL DECISION MAKING UNDER RISK IN COMMERCIAL BANKS Amra Halaba International Burch University Bosnia and Herzegovina amrahalaba@yahoo.com Ali Coşkun International Burch University Bosnia and Herzegovina ali.coskun@ibu.edu.ba Abstract: Decision making is the most important and the most difficult task that managers perform. On the other side they are most of the time confronted with risk and uncertainty, especially in banking industry. Objective of this study is to examine how managers of commercial banks performs this task, by putting it in the perspective of the newest findings from Behavioral finance field. Behavioral finance is based on premise that decision makers behave less than fully rational. Due to their deeply rooted human nature managers are prone to make decisions based on subjective evaluation of available options, relative to certain reference point and to current state of wealth, and also according to their personal interests which may contradict banks`, industry`s and social welfare`s. Specifically, this study explores role of heuristics, biases and intuition in decision making, through concise review of existing literature. Importance of the study is in a fact that commercial banks are simultaneously the most important industry for country`s economic development and stability and the most submissive industry to the risk. Owing to systematic nature of risk generally in financial markets, any irregularity in one country`s banking industry will eventually reflect on other countries and is able to make ground for crisis. Study will contribute to better understanding of managerial perception of risk and their behavior under risk, which is primarily useful for architects of banks` corporate governance and banks` regulative. As we will see, setting identical option in two different frames leads to different decisions, this opens up possibilities to construct an environment in such a manner that decision makers are naturally led to make decisions that are in the best interest of all stakeholders involved. Keywords: Behavioral Finance, Decision Making, Risk in Banking, Commercial Banking 1. Introduction While literature is overwhelmed with analysis of risk taking behavior by managers in commercial banking, which mainly look at relationship between risk and some other significant variables such as size or ownership structure (García-Marco & RoblesFernández, 2008) there lacks analysis that takes into consideration factors of managers` behavior – acting individually and in groups. Mainstream economists argue that economic agents are rational utility maximizers who hold constant preferences and all together create efficient markets. However, such postulate is invalid, since irrationality of economic agents was recognized a long time ago, even by Adam Smith. (Santos & Chen, 2009) ICESoS 2016 - Proceedings Book 167 �International Conference on Economic and Social Studies (ICESoS’16) Not only that this postulate is incorrect in theory, but is troublesome for practitioners, specifically banks` owners and stakeholders, banking regulative bodies, and public in general. So, basic purpose of this research is to expand the view on managerial behavior in commercial banks, especially under risk environment. Hillson (2014) notes that risk management process which does not cover findings from human behavior sciences, in its foundation is condemned to produce less than optimal outcomes. For banking industry it is a must to include soft behavioral factors in risk management processes, which are at least as relevant as statistics. Markets and therefore decision making settings are characterized with complexity, uncertainty and risk (Krohling & Souza, 2012), which is especially relevant when it comes to banking industry. Banks act as society`s integrator, since these are institutions that come in relationship with almost all citizens and all businesses (Marous, 2015). Banks hold highest ratios in market capitalizations of any country, are subject to illiquidity risks, and most importantly the risk they impose is of systematic nature. Turbulences in one bank spread to whole banking industry in the country, therefore weakening its whole financial system. (Shen & Chih, 2005) Shen and Chih (2005) note also that one of sources of risk in banks is its asset structure, which is difficult to recognize and therefore to prevent. This risk is, author suggest, imposed by managers, since they are the ones who make final decisions on bank`s asset structure. Therefore, specific field covered by this research is behavioral corporate finance, which aims to provide insights into what drives managers in their decision making processes. Authors of the research suggest that introduction of behavioral factors in risk management process can seriously improve its efficiency and therefore contribute not only to business success of banks individually, but to increase of the overall social welfare. Research will provide insights into ways that managers make decisions, which is especially important under overwhelming risky settings. It is authors` suggestion that only by better understanding of the true nature and true behavior of managers in real situations, academicians and practitioners can better form bank`s internal structure and hierarchical relationships, as well as banking industry`s regulations. Following this assumption, study contributes to better understanding of bank`s executives, which is beneficial mainly to regulators of bank`s internal organization and regulators of banking industry. Research provides literature review of previous research on the given topic. Firstly, authors give introduction into field of behavioral corporate finance, which is followed with discussion on decision making processes and risk in banking industry. Third part is dedicated to implications of behavioral finance in decision making processes. Finally, at the very end authors give concluding remarks. 2. Literature Review 1.1 Behavioral Finance Behavioral finance is a branch of behavioral economics which is based on notion that financial market movements should be studied starting from the assumption of managers` incomplete rationality (Glaser, Noth, & Weber, 2003). 168 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation It is a field of research which combines standard finance theory with sciences on human nature - namely psychology, neuroscience, and sociology (Halaba & Ilgun, 2014). Therefore, behavioral economics in general is un upgrade to mainstream economics, which enables academicians and practitioners to gain better understanding of economic agents` behavior (Rabin, 1998), which is the main purpose of this research. It is important to draw attention to „upgrading“ role of behavioral finance. Aim of behavioral finance studies is not to contradict mainstream studies, rather to enrich them, expand the views and enable more efficient management as well as policy making. Since the scope of the study is managerial behavior, specifically the study is under the umbrella of corporate behavioral finance. 1.1.1 Behavioral Corporate Finance Corporate finance examines decision making (where we can consider financing decision, i.e. asset structure) in terms of cooperation and relationship between managers and owners (Baker & Wurgler, 2011). Under the agency theory, corporate finance is explained in terms of influence of capital owners on managers, with purpose of directing managers to behave in the most beneficial manner (Caprio & Levine, 2002). Caprio and Levine (2002) emphasize the importance of effective corporate governance in banks, since these have influence on “shaping capital allocation at the firm level and at the country level“ (p. 2) and Schmidt and Tyrell not that even back in 1997 there was notable increasing interest and recognition of financial markets` (banking industry included) role in resource allocation. Corporate governance is of systemic nature, meaning that all of its segments are interrelated, so that every incremental change in one segment contributes to the change in other segments as well (Schmidt & Tyrell, 1997). When it comes to mainstream economics, generally it is based on methodological approach, mathematical expression of assumptions, and analytical evaluation of implications of assumptions and empirical observations (Rabin, 1998). Therefore, intrinsic human attributes of managers which are relevant for decision making, are being neglected or perceived as disturbance to the smooth mainstream approach. The aim of behavioral corporate finance is to account for all these intrinsic attributes of managers and examine what drives their behavior in the real environment. (Berneheim, 2009; Camerer, 2007) Tirole (2006) in his, in-depth book „The theory of corporate governance“ gives credentials to behavioral finance as a branch that „relaxes the rationality postulate that dominates this book.“ (p. 9). He notes two courses present in behavioral corporate finance. Focus of one course is managerial irrationality, while focus of the other branch is on investors` irrationality. Topic of this research fits in the first course of managerial irrationality. However, Tirole decides not to include detail coverage of behavioral finance in his studies on corporate governance and stick to standard approach given by agency theory for several reasons. He notes that behavioral finance is in its offspring, so he finds it early for a broad theoretical recapitulation of corporate governance from this approach. So, he finds it lacking behind the agency theory. ICESoS 2016 - Proceedings Book 169 �International Conference on Economic and Social Studies (ICESoS’16) Authors of this research find his reasons as additional motivation for urging the involvement of behavioral corporate finance in academic studies as soon as possible, in order to raise awareness of its importance and move build up theoretical framework in this regard and break such (mis)perception on the power of insights from behavioral finance. According to Rabin (1998) the importance of behavioral finance in decision making reflects in findings that managers in real environment are prone to systematically irrational judgments and choices. It is opposite to postulate of mainstream economics that managers follow objective statistical laws of probability while making evaluations that lead their decisions. Behavioral finance gathers evidences on biased, loss averse, fearful, and in other regards irrational behavior of managers which result in less than optimum efficiency decision making (Halaba & Ilgun, 2014). It contradicts rationality of managers along the main postulates set by standard finance decision making theories. These postulates are: - manager exerts constant preferences (Abdulnabi, 2014) manager chooses the option with the highest expected objective utility (Abdulnabi, 2014) manager makes decisions based on logic and controls his emotions (Hadžić, 2015). While these assumptions to some degree serve well, in that they help to simplify reality and build economic models, it is necessary to recognize what real decision making is actually like. Looking at the real managerial behavior in the actual decision making environment is the core objective of behavioral corporate finance (Halaba & Ilgun, 2014). In order to understand decision making process in a corporation, it is inevitable to form understanding over beliefs and preferences of managers, owners, as well as interaction of the two (Baker & Wurgler, 2011). In order to gain this understanding, in the section 2.3 we will look at patterns of judgment and decision making - apparently irrational ones - which managers are prone to. Before looking into these patterns, firstly we will provide overview over risk decision making in general and risk in banking industry. 1.2 Decision Making Under Risk in Commercial Banking 1.2.1 Decision Making Decision making can be defined as „process of problem identification and the process of solving it“ (Shermerhon, 1996, p. 194). These are processes that managers are constantly engaged in. Furthermore, decisions are made in groups, rather than individually, which makes decision making environment more complex. (Dervishi & Ibish, 2014) Hadžić & Ilgun (2015) note that decision making is marked with huge pressure which comes from numerous options and eventually results in sub-optimal decisions. 170 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Korte (2003) introduces results of the study done over 300 managerial decision over 20 years, done by Paul Nutt, published in Nutt`s book „Why decisions fail: Avoiding the blunders and traps that lead to debacles“ from 2002. Study revealed that decisions which result in optimum outcomes are characterized by the following: 1. A deliberate and thorough study of the claims by a variety of stakeholders 2. Early attention to social and political interests, and 3. Setting direction based on a cross-section of informed opinion“ (Korte, 2003, p. 446) 2.2.2 Agency Theory The basic theory of corporate governance in economics is agency theory. It assesses the relationship between principals – owners and agents – managers within an organization, with emphasis on risk perception of both parties. Owners are assumed to be risk neutral, following the assumption that they do not place entire investing capital in one investment, so only part of their wealth would be placed in individual bank. When their entire capital does not depend on performance of single bank, owners are likely to be less influenced by their emotions and therefore make more deliberate decisions. Managers are assumed to be more biased in decision making, since their personal incomes depend on the performance of the bank. Income for managers mainly comes from regular salaries, but also from different types of bonuses as well. (Wiseman & Gomez-Mejla, 1998) Basically, corporate structure should be such that encourages managers to behave in the best interests of owners. However, even despite some clearly established legal rules for owner-manager relationships, still there remains challenge of how to apply those rules in practice, to ensure that managers really do follow them. (Erner, Klos, & Langer, 2013) So, there are strict rules which direct owner-manager relationship. However, there are also bonus schemes, which are designed to motivate managers to behave in a way that benefits owners the most. However, Chen, Zhang, Xiao, & Li (2011) conducted study on bonus schemes among the five biggest banks in United Kingdom, which shows that incentives paid to managers did not result in favorable outcomes. All of these banks performed poorly with major liquidity problems. 2.2.3 Risk in Commercial Banking Classic definition of the risk is as follows „Risks are uncertainties resulting in adverse variations of profitability or in losses.“ (Bessis, 2002, p. 11). However, concept of risk is poorly understood (Abdulnabi, 2014) and there are many different definitions out there (Riabacke, 2006). ICESoS 2016 - Proceedings Book 171 �International Conference on Economic and Social Studies (ICESoS’16) So, Riabacke (2006) explains risk by putting it in the context of two other terms. These are: - Certainty, where manager knows for sure what will be outcomes of specific actions Uncertainty, where manager does not know at all what could be outcomes of specific actions. Risk is in between the above two. It implies that manager knows more than one possible outcome for each specific action, where each outcome is expected to occur at certain probability. However, manager cannot know whether: - All outcomes he accounts for are actually all possible ones Probabilities he assigns to each outcome are accurate. „Banking risks are defined as adverse impacts on profitability of several distinct sources of uncertainty“ (Bessis, 2002, p. 11). Basic types of banking risks are: credit risk, interest rate risk, market risk, liquidity risk, operational risk, foreign exchange risk, other risks (country risk, settlement risk, performance risk) (Bessis, 2002). Risk taking in banking industry is specific because of the role which this sector has in one country. Negative effects of the risk behavior in single bank influences other banks and very soon implications spread over to the financial system and complete economy. (García-Marco & Robles-Fernández, 2008) More complex environment makes it more difficult for managers to evaluate what might be outcomes of different options they can choose among (Erner et al., 2013). Eventually, it amplifies the risk they encounter. 1.3 Implications of Behavioral Corporate Finance for Decision Making Under Risk 1.3.1 Intuition Intuition can be defined as all those processes which happen in human mind on subconscious level (Isenman, 1997). Hadžić and Ilgun (2015, p.14) provide another more detailed definition of intuition by Woiceshyn (2014) who says that „Intuition, or the process of intuiting, is described as the inexplicable emergence of a sudden understanding – a “hunch” or a “gut feeling” – seemingly out of nowhere but involving the subconscious and one’s previous experience, often described as recognition of familiar patterns from previous experiences“. According to evidences from neuroscientists, people do not have conscious control of their behavior. They inform us that human brain is influenced by environment in which human operates. (Bloom, 2014) Therefore, managers cannot make their decisions as dissected from the context in which they operate, or influences of other group members. 172 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Managers are continuously asked to make decisions, which involves solving difficult questions under ambiguity, complexity, uncertainty. Confronted with such pressures, they tend to make the challenge easier, by swapping the actual problem for an easier one. The easier problem is the problem they perceive compatible with the present one, but it does not necessarily has to be true. The essence is that they take to the surface a problem which they are familiar with, their minds know how to solve it. This swap pattern is at fundaments of intuitive judgments and decision making. (Kahneman, 2011) Intuitive thinking underlies human thinking, judgment, and decision making overall. However in order to be properly utilized in academic circles, its importance has to be acknowledged by leading academicians. (Isenman, 1997) Intuition underlies the concept of heuristics, which are discussed in the following section. 1.3.2 Heuristics Heuristics are mental shortcuts which managers use when making difficult decisions in complex settings. They substitute difficult question with an easier one – which might lead decision maker from the essence of the actual problem, or in absence of relevant data they reach for available data – which might or might not be relevant for a problem at hand, but also might mislead decision maker from the actual problem. (Hadžić, 2015) Following the book „Thinking, Fast and Slow“ by father of behavioral economics Daniel Kahneman, which he wrote with priceless help of his colleague and friend Amos Tversky, authors of this research count four basic types of heuristics. These are: availability, representativeness, anchoring, and affect heuristic. Each of these will be discussed in following paragraphs. 2.3.2.1 Availability Heuristic Availability heuristic is decision making pattern based on information that is easily obtainable, that is on information that comes to a mind of managers with an ease and effortlessly (Sewell, 2011). It comes as result of replacing a difficult problem for an easier one and basically solving a problem and making a needed decision based on the information that can be reached the most easily, even though it might not be relevant for the present situation. Such decision making has a power to leave actual problem unresolved, or in the worst case make the problem even the more serious one. (Kahneman, 2011) One way in which bank managers can hurt bank`s asset structure is by following the available data from the news, since there is evidence for example that investments which are the most prompted up on the media platform, perform the poorest among other investments in two years (Sewell, 2011). This example is implicative of how data which is the most easily accessible, can be misleading. Managers should not carelessly follow the news on the macroeconomic situation or industry performances, but rather take an analytical and critical evaluation approach. ICESoS 2016 - Proceedings Book 173 �International Conference on Economic and Social Studies (ICESoS’16) 2.3.2.2 Representativeness Heuristic According to Kahneman (2011), people are wired to seek for certain correlation between events and situations to the extent that he refers to human species as to „pattern seekers“. Managers as well have a need to fit in any new circumstance into specific scheme, give it meaning, purpose and justification. It provides sense of control, while loss of control over situation upon which our well-being depends, causes negative feelings. Instead of objective assessment of events and situations, managers find certain context to put those events and situations in. In that way the actual situation or event loses its true context and of course can be misleading for decision making. It is troublesome especially when this need implies neglect of actual problem that needs to be solved. So, people have this tendency to perceive events and things which share certain attributes as the same (Baker & Nofsinger, 2002). If managers misevaluate potency of certain event`s amplitude to disturb their asset positions, it can significantly change their risk attitudes and behaviors. 2.3.2.3 Anchoring Heuristic Managers tend to evaluate options they have at disposal based on what those options contribute - either positively or negatively to their current level of returns. It harms their choice of options and final decision in a way that they neglect objective final utility expected from each of those options. While anchoring their evaluation to a certain value or a number, they focus on subjective value which those options provide them. (Helson, 1964; Rabin, 1998) More worrisome fact is that managers have tendency to anchor their evaluations to some values or numbers that are completely unrelated to the prospects they are evaluating, as opposed to their current returns level. Reference value upon which managers compare their options does not have to have any logical correlation to the actual choice they are making. Kahneman (2011) 2.3.2.4 Affect Heuristic Affect heuristic is based on influence that people`s emotions have on their judgments and decision making and according to Kahneman (2011) emotions have the highest power in directing the risk attitudes and preferences of managers. Basically, all decisions that people make are simply manifestation of their feelings towards specific option at certain point in time. According to Finucane, Alhakami, Slovic and Johnosn (2000) how managers perceive risk and therefore form their risk attitudes which drive their risk behavior is influenced primarily by affect heuristic. Prospects which provoke positive emotions with managers, they are likely to frame as „a low risk and high benefit“, whereas prospects which provoke negative emotions with managers, they are likely to frame as „ high risk and low benefit“. 174 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Another leading behavioral economist Dan Ariely (2008), came to a conclusion that people`s emotions obscure their deliberate thinking and have potency to drive their behavior. According to Kahneman (2011), people make deliberate decisions, except in those situations when their emotions take over their deliberate thinking. 2.3.3 Bias Bias refers to subconscious, faulty and unreasonable judgment and decision making. It fundamentally differs from logical and analytical objective thinking patterns. (Kahneman, Slovic, & Tversky, 1982) Biased thinking and acting is a path to situations in which the manager believes that he is close to maximizing firm value - and, consequently his incentives - but is in fact deviating from this ideal (Baker & Wurgler, 2011). Managers, as other humans do not always make judgments logically. Furthermore, once formed judgments do not always lead to final decisions in rational and consistent way. (M. P. Baker & Wurgler, 2011) However, there is evidence that certain personal abilities of managers are correlated to the performance of the firm (Kaplan, Klebanov, & Sorensen, 2011). On the other side, Simon (1955) introduced the term bounded rationality, under which he assumes that some type of cognitive or information gathering cost prevents managers from making fully optimal decisions. Bounded rationality allows managers to deal with complex environment by using heuristic. In that manner they manage to obtain satisfying performance. Since such approach to decision making has certain benefits they should strive at least to diminish sensitivity to their own biases. In following sections, authors discuss several most applicable biases when it comes to corporate behavior of managers individually and in groups. 2.3.3.1 Confidence and Optimism Bias These two types of biases are related and feed each other, so are discussed jointly. Managers have tendency to overvalue their capabilities and expertise and to be overly optimistic over future prospects that they personally feel affection for. Additionally, managers tend to put more value on the role that they played in certain achievements and successes, than they actually had. (Jarboui & Boujelbene, 2012) They are prompted to see their circumstances as more favorable than they really are. Also, managers usually fail at time management by overestimating their abilities and assigning less time for activities than they actually need. (Barberis & Thaler, 2003) Shiller (2000) notes that people in general have tendency to focus on favorable sides and ignore possible negative effects when a new situation arises. ICESoS 2016 - Proceedings Book 175 �International Conference on Economic and Social Studies (ICESoS’16) While over optimism and overconfidence can reflect negatively on corporate behavior, it has positive sides also when experienced moderately. They encourage managers to look for new prospects in environment, increases their self-awareness, and makes them utilize their full capacities. (Jarboui & Boujelbene, 2012) So, in order to benefit from these characteristics, managers have to control for them. But, along with complexity of environment and decisions that need to be made, managers are additionally burdened with group pressure. Group decision making feeds overconfidence and makes it harder to de-bias. (Gervais, 2010) 2.3.3.2 Confirmation Bias Once the move is made, no matter what the outcome is, managers put that outcome in the context and seek for proper justification of their previous actions. They seek confirmation for their actions. This is „tendency to interpret evidence as consistent with one`s preexisting beliefs“ (Daniel, Hirshleifer, & Teoh, 2002, p. 143) Beliefs and judgments once formed, is what managers firmly hold unto (Barberis & Thaler, 2003; Rabin, 1998) and are likely to discard any new data that opposes established judgments, however relevant these might be (Baker & Nofsinger, 2002). 2.3.3.3 Herding effect According to Sewell (2011), herding effect is due to need of people to socialize and make groups in order to survive and improve well-being through evolution. Socializing is crucial for information exchange, which is one of the most important resources. There is evidence that people are more likely to take higher risks when acting in a group. Being a member of a group reduces feelings of insecurity and anxiety over decisions. Company of other people changes risk behavior of each group member. (Chou & Nordgren, 2016) According to Shiller (2000) information exchanged between people in face-to-face conversations has higher impact than the same information exchanged in other ways. It is due to capacity of face expressions, or tone of voice to provoke specific emotions with participants of conversation. Acting in group benefits each member, since his capacity to perform increases. On the other side, it can be harmful since each member is likely to follow explicitly or implicitly implied set of activities. (Shiller, 2000) 3. Conclusion Effective risk management needs to account for insights from behavioral corporate finance, which are derived from psychology, neuroscience, and sociology. It is deemed necessary to approach risk taking behavior from a broader and more realistic perspective, instead of relying solely on standard risk approaches, which include relationship between risk and return, constant preferences and utility maximization. Significance of effective risk management increases in domain of banking industry, which serves as an integrator and financier of country`s economic system. It is up to academicians and practitioners both to gain more understanding into how human minds work and how managers make decisions. It will empower them to create 176 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation environments in which managers are compelled to behave in the best interest of all stakeholders involved. Managers themselves, should strive to understand and get to know themselves and members of their executive boards better. In that way, they will be better able to control their own decision making and establish better control over themselves. This study shed a light on the suggested approach to risk management, draw attention to its importance and hopefully developed interest from professionals in academics and real sector. Future research should definitely include development of model of managerial decision making under risk in commercial banking, since it would help standardization of risk management processes. References • Abdulnabi, N. L. (2014). Prospect Theory in Decision Making Process. Eastern Mediterranean University, Gazimagusa, North Cyprus. • Ariely, D. (2008). Predictably Irrational: The Hidden Forces That Shape Our Decisions. New York: HarperCollins Publishers. • Baker, H. K., & Nofsinger, J. R. (2002). Psychological Biases of Investors. Financial Services Review, 11(2), 97. • Baker, M. P., & Wurgler, J. (2011). 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In Neuroeconomics: Decision Making and the Brain (1st ed., pp. 81–93). London U.K.: Elsevier Inc. • Schmidt, R. H., & Tyrell, M. (1997). Financial systems, corporate finance and corporate governance. European Financial Management, 3(3), 333–361. • Sewell, R. (2011). Psychology of Successful Investing. U.K.: University of Cambridge. • Shen, C.-H., & Chih, H.-L. (2005). Investor protection, prospect theory, and earnings management: An international comparison of the banking industry. Journal of Banking & Finance, 29, 2675–2697. http://doi.org/10.1016/j.jbankfin.2004.10.004 • Shermerhon, J. R. (1996). Management and Organization Behaviour. New York: John Wiley & Sons. • Shiller, R. J. (2000). Irrational Exuberance. Princeton, New Yersey: Princeton University Press. • Simon, H. A. (1955). A Behavioral Model of Rational Choice. Quarterly Journal of Economics, 69(1), 99–118. • Tirole, J. (2006). The theory of corporate finance. New Jersey, USA: Princeton University Press. • Wiseman, R. M., & Gomez-Mejla, L. R. (1998). A Behavioral Agency Model of Managerial Risk Taking. Academy of Management Review, 23(1), 133–153. • Woiceshyn, J. (2014). Making Effective Decisions by Integrating. In J. Liebowitz (Ed.), Bursting the Big Data Bubble: The Case for Intuition Based Decision Making (1st ed.). Boca Raton, 711 Third Avenue, New York: Auerbach Publications. ICESoS 2016 - Proceedings Book 179 �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3313 Title A name given to the resource BEHAVIORAL FINANCE PERSPECTIVE ON MANAGERIAL DECISION MAKING UNDER RISK IN COMMERCIAL BANKS Author Author Halaba, Amra COSKUN, Ali Abstract A summary of the resource. Abstract: Decision making is the most important and the most difficult task that managers perform. On the other side they are most of the time confronted with risk and uncertainty, especially in banking industry. Objective of this study is to examine how managers of commercial banks performs this task, by putting it in the perspective of the newest findings from Behavioral finance field. Behavioral finance is based on premise that decision makers behave less than fully rational. Due to their deeply rooted human nature managers are prone to make decisions based on subjective evaluation of available options, relative to certain reference point and to current state of wealth, and also according to their personal interests which may contradict banks`, industry`s and social welfare`s. Specifically, this study explores role of heuristics, biases and intuition in decision making, through concise review of existing literature. Importance of the study is in a fact that commercial banks are simultaneously the most important industry for country`s economic development and stability and the most submissive industry to the risk. Owing to systematic nature of risk generally in financial markets, any irregularity in one country`s banking industry will eventually reflect on other countries and is able to make ground for crisis. Study will contribute to better understanding of managerial perception of risk and their behavior under risk, which is primarily useful for architects of banks` corporate governance and banks` regulative. As we will see, setting identical option in two different frames leads to different decisions, this opens up possibilities to construct an environment in such a manner that decision makers are naturally led to make decisions that are in the best interest of all stakeholders involved. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/d0156ca76a02c2a01953d2be5e1011b9.pdf f49fc39084ad285405df3958b86c4672 PDF Text Text BENEFIT ANALYSIS OF A DEVELOPING MARKETS STOCK EXCHANGE MERGERS: CASE OF A BORSA ISTANBUL AND SARAJEVO STOCK EXCHANGE Sanel Halilbegovic International Burch University Bosnia and Herzegovina sanel.halilbegovic@ibu.edu.ba Abstract: Whether due to mentality or the lack of investment ‘culture’, but people in the Balkans have certain repulsion towards investing in financial instruments offered by the local exchanges. Based on the public opinion one can conclude that most of the people are reluctant to invest in the financial instruments because they can’t rely on the trustworthiness and credibility of the local exchanges, due to corruption scandals, misconduct and wrongdoings that happened in the recent history. Since its inception, Sarajevo Stock Exchange has been suffering from extremely low volume and poor investment liquidity that in the end resulted with choppiness and overall instability in the market. Turkey’s main stock exchange, Borsa Istanbul, which is 80 times larger than SASE, has openly expressed interest in direct cooperation with Sarajevo Stock Exchange and that strategic move can certainly reduce or even eliminate problems local investors face. This study examines the effect of benefits and costs of the cooperation between Borsa Istanbul and Sarajevo Stock Exchange (SASE). Multiple facets of the benefits and costs are examined and their effect on the macro and micro scale. Macro effects of the raising stake of Borsa Istanbul in SASE include effects on government, municipality and overall economic level, while micro effect is the direct effect to the ‘end-consumer’, a small investor. The secondary data will be used in analysis of benefits to costs with the side by side comparison and eventual derivation of the Benefit/Cost ratio (BCR) that will test the hypothesis that benefits highly outweigh the costs in this cooperation. The research shows that raising the stake of Borsa Istanbul in SASE will bring a new level of professionalism and trust in a corruption and unprofessionalism ridden SASE. In addition Borsa Istanbul will open new market horizons to investors from Bosnia and as an outcome we should see and increase in market liquidity, trading volume and even the BDP of both countries. Keywords: Emerging stock markets, cross listing, stock market merger JEL Classification: F15, F62, G15, G24 Introduction At its inception in late 90’s, Sarajevo Stock Exchange (SASE) has been showing signs of prosperity and acceptance in the investors’ circles. However, due to ample irregularities, corruption scandals and an overall lethargy in trading volume, SASE has been slowing down since early 2000’s. In the recent years stock exchange unions became the trend in an emerging markets, which is a result of globalization and deregulation on the world level. This process started in late 1990’s following the process ICESoS 2016 - Proceedings Book 301 �International Conference on Economic and Social Studies (ICESoS’16) of converting the stock exchanges from nonprofit, usually member owned organizations into for profit organizations that are owned by the state and corporations. In late 1990’s European stock exchanges experienced significant changes such as several mergers and acquisitions, changes in trading systems and ownership structures, and the most significant increased number of quoted companies. One of the most famous mergers happened in 2000 when Belgian, French, Dutch and Portuguese exchanges have merged. From these four stock exchanges Euronext was created. In this way these four exchanges have increased their market share and became competitive to the European largest stock exchange, London Stock Exchange. Stock exchange mergers have various effects among which is market efficiency as the most important one. Studies have shown that the merger outcomes depend on the size of the stock exchange. This implies that the degree of market efficiency is higher for the merger between small stock exchanges because the smaller the stock exchange, higher the growth potential. However, there are certain issues that should be considered such as regulatory issue. Regulations can be internal, that require compliance with rules of stock exchange, or external that require compliance with the rules of regulatory body on state or international level. Following or better yet lagging on these global trends, Borsa Istanbul Stock Exchange (BIST), which is Turkey’s only exchange, in 2011 has acquired 5% of Sarajevo Stock Exchange (SASE) which is owned by Bosnian brokerage houses. In January 2015 it bought additional shares and increased its stake to more than 30%. The purpose of this paper is to explain the possible benefits of the Borsa Istanbul stake in Sarajevo Stock exchange. Literature Review According to the research of Prof. Dr. Ulf Nielsen (University of California), the main benefit of stock exchange merger is the stock liquidity that follows the merger. Simply said, there are more market participants and more potential investors. There is also a smaller gap or a spread between bid and ask which is again the result of the liquidity and more participants competing on the exchange. There are always investors willing to buy the security for a given price and issuer or dealer willing to sell the security for that price. Market is also becoming more efficient due to lower information and other non-monetary transactions cost. Liquidity of the security is measured by turnover. Turnover represents number of shares that are traded relative to the number of shares outstanding. If the merger is international, meaning that the stock exchanges are located in two different countries, it increases the investor’s base. Stocks are accessible to the investors in both countries. Companies benefit from listing on both, domestic and foreign market. Following the increased trading volume, exchanges should increase their investment in new technologies that have the ability to satisfy the demands of sophisticated investors (Philips, Faseruk, Glew, 2014). Thanks to the increased volume the stock exchanges will experience the economies of scale, and the cost of the investment will spread over the larger volume of financial products. Furthermore internationally diversified market is likely to introduce new financial and trading instruments to the stock exchanges. Besides the liquidity and capital flow, market efficiency is the most important outcome of the stock exchange merger. Degree of market efficiency depends of the country’s level of development, size, geographical diversification and industrial diversification (Charles, Darne, Kim, Redor, 2014). As a result of the increased efficiency the average trading fees decreases, the bid-ask spread also decreases, trading volume increases and the volatility of large cap securities decreases. However, the merger does not 302 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation affect all stock markets in the same way as it was mentioned before. Efficient market hypothesis (Samuelson, 1965), states that price fully reflects all available all relevant information. In the inefficient market further prices are highly unpredictable. Market efficiency is especially an issue in the developing markets. So, the fact that exchange merger contributes to the market efficiency lead us to the conclusion that the merger has higher impact on the developing market than on the already developed and efficient market. Stock market mergers and acquisitions contribute to the decreasing costs of a transaction through the economies of scale that will attract new investors to participate in new stock exchange markets or platforms with higher trading volume and much better liquidity (McAndrews and Stefanadis, 2002). Stock exchange mergers will also improve liquidity with increasing trading volume but decreasing transaction costs (Neilsson, 2009). Many companies may benefit from alliances because of better price efficiency when new information becomes more available (Werner and Kleidon, 1996). The are many factors that affect the stock exchange success. Some of them include financial regulation quality, corporate structure for stock exchange demutualization and cross-membership agreement (Dorodnykh, 2013). A trading amount influences much the success of a stock market acquisition or merger, a greater stock exchange or some with a larger number of domestic firms could indicate maybe less success (Dorodnykh, 2013; 2014). On the other side, lower stock exchange participation could improve performance, and also, provide some credibility as well as reliability for higher stock exchange partners (Maciulis et al., 2007; Hasan et al., 2012). The trading with less volume may also experience lower integration - it’s happened because of complex financial regulations as well as restrictions on foreign investors. Also, geo distances or levels of merger do not necessarily translate into a raising in stock exchange interdependence that maybe will improve stock exchange performance (Nielsson, 2007). Some bigger companies may obtain higher liquidity or trading volume from the stock exchange mergers, and can reduce costs of the transaction to improve market efficiency (Nielsson, 2009). Hypothesis and Methodology Given the introduction an organically derived hypothesis emerges: “The cooperation and a partial merger of SASE and Borsa Istanbul is highly beneficial to all stakeholders in each market – from investors, over companies in the market and both countries’ governments” Since the full scope of the merger and its benefits hasn’t happen as of yet, this research with this hypothesis will basically serve as a base starting point of the future researches, once the entire program materializes and once the measurable data becomes available. The methodology used in this research is of a hybrid qualitative nature. This paper will have a descriptive research design with prediction based narratology. Since there is a very small amount of primary and secondary data on this topic, the research will mainly focus on the possible outcomes of the cooperation between two exchanges and the best case scenario analysis that could definitely be a starting point for the future researches on this particular topic. ICESoS 2016 - Proceedings Book 303 �International Conference on Economic and Social Studies (ICESoS’16) Data Analysis and Discussion As previously said, Sarajevo stock exchange suffers from a chronic condition of a very low trading volume, high instability and a persistent choppiness in the market. At its inception SASE has established the first market index called SASX10 which is comprised of 10 largest companies by the market capitalization (table 1). Table 1: List of companies in SASX-10 Source: www.sase.ba Combined, those 10 companies have an average share price of 22.46BAM and a 14,386,000 shares for a grand total of BAM 323million. (table 2). Table 2: SASX-10 companies and respective prices and shares outstanding Source: Author’s analysis For the purposes of this research the focus will be on the above listed companies and the benefits of the stock market mergers will be pertaining to those 10 companies. The benefits of the mergers between stock markets and especially when the emerging 304 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation markets are in question are numerous. In this research the benefits will be split into two major groups - Benefits to investors Benefits to companies and governments Benefits to investors In today’s world of expanding globalization and loosening of borders, investors from all countries generally have it much easier to trade and invest into foreign markets. Benefits to investors are probably the largest portion of benefits among the 3 types of benefits and since the market doesn’t exist without investors these benefits are definitely the most important ones. Investors will have a wider variety of investments to choose from and have a better chance to create a customized portfolio that suits a specific investor. For example an investor on SASE can mainly choose between companies in real sector such as banks, power and gas producing companies, pharmaceutical companies, telecom etc, but by having Turkish companies cross listed to SASE, investors in BiH could have an access to companies in other niches such as service, IT, automotive and many others. Investors would benefit from an improvement in quality and availability of information. Every company that is a subject to cross listing into other exchanges will have to adapt and adhere to new corporate governances as well as state/government regulations. That new set of rules will benefit the investor as it would be almost impossible for a company to fabricate and window-dress the accounting and other legal information across markets. Improvement in the information flow and quality will even attract more investors who were previously reluctant to investing due to corruption in the companies and markets. Another side benefit to the investors would be a fact that investors would enjoy better protection from companies’ malpractice due to more stringent and strict rules that would be enforced to cross listed firms. One of the most important benefits to investors in the case of cross listing is the liquidity of the market. As previously noted SASE has been suffering the chronic low trading volume that hurts investors since low volume adds to the negatively affected beta (β) and overall instability in the market prices. Table 3 and Table 4 shows the rapid fall in share turnover which is the total number of shares during a period divided by the average number of shares outstanding for the period. Obviously this ratio needs to be as high as possible which is quite opposite in case of SASE. Table 3: Share turnover of SASX-10 companies in % Source: www.sase.ba ICESoS 2016 - Proceedings Book 305 �International Conference on Economic and Social Studies (ICESoS’16) Table 4: Share turnover of SASX-10 companies in BAM Source: www.sase.ba With firms from both exchanges having IPO in the cooperating market there will be an additional shares available for investors in foreign markets and with more investors in the play, the supply and demand will stabilize without having abrupt shifts to either side, hence lowering the choppiness in the market, hence lowering the firm’s β. Also due to development of more efficient marketplace investors on both ends can expect narrowing of the price spreads and better efficiency in the stock pricing and therefore having lower chance for arbitrage and abuse of the market itself. Benefits to companies and governments While benefits for investors are ample and many, the companies and governments of both countries will also benefit from the cooperation, cross listing and merger of the two exchanges. One of the biggest benefits to the companies in both markets is that the companies will be able to do the second initial public offering (IPO) in the cross listed country, hence issuing new shares, resulting in a radical increase in firm’s market capitalization. With an increase in market capitalization the overall volume of traded stocks will also increase fatherly increasing the traded shares turnover. Using only a modest and conservative increase in number of shares by 20% the results in the turnover are very apparent as shown in Table 5. 306 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Table 5: SASX-10 companies new turnover after merger of exchanges Source: author’s analysis Of course by issuing new shares of stock the companies would have to adhere by the local rules and regulations and other stipulations by security and exchange commission that would in the end benefit the investor but also have a secondary benefit to the company because the company will have a better or more realistic view into its own situation. The above concept of turnover didn’t take in effect another huge benefit to the cross listed company and that is the effect on the price of the stock. Companies will experience some sort of a price discovery where the pricing of stocks become much more efficient than in an isolated or stand-alone markets. Chances are that if the volume and efficiency of the pricing increases, the companies will show up on the professional analysts radar as well as the mutual fund managers which will even more increase the recognition of the company, resulting in the probable increase in stock price. With the existing historic ties between Bosnia and Herzegovina and Turkey and the recent interest in other trades and trade agreements between Turkey and BiH, the companies will benefit from an increase in brand recognition in a new market. Increase of a brand recognition may not be easily quantifiable but we can be certain that it will have an effect on the stock prices as investors, especially small investors are most likely to invest into firms that they have the previous knowledge of. In this entire benefit scheme the governments of both countries are included too. Each country’s government will surely benefit on multiple factors but the main factor is the economic stability and flow of capital. With an increase in companies’ price stability comes stability in the entire sector(s) as well as the stability in the macroeconomic aspects. This resulting stability in the economy may result in an improved credit rating not only for the companies but for governments as well, therefore decreasing a cost of capital to the benefit of all. As these firms attract additional investors the flow of capital will also improve that will in effect improve the situation for all the participants in the economic chain, while at the same time improving the general living and economic conditions in the country. ICESoS 2016 - Proceedings Book 307 �International Conference on Economic and Social Studies (ICESoS’16) The government will also surely benefit by an increase of taxable income both on an individual and corporate level and another potential benefit would be that the cooperation between Borsa Istanbul and SASE can serve as an example and as a basis for all the future cooperation between Balkan exchanges. In recent economic conferences one can see that the common denominator of economic growth in Balkan countries is cooperation and unity, with more local exchanges cooperating the benefits for all stakeholders would multiply even more. Findings From this research it becomes clearly apparent that benefits of the cooperation of the emerging stock market such as SASE with an already developed market such as Borsa Istanbul, are many. The research has shown that all of involved parties and stakeholders are benefiting from this merger. Hence, the hypothesis “The cooperation and a partial merger of SASE and Borsa Istanbul is highly beneficial to all stakeholders in each market – from investors, over companies in the market and both countries’ governments” is confirmed. The natural question arises from this research and that is, what are the costs and what does the cost benefit analysis says about the merger of exchanges but in all reality the benefits are so abundant that not only do they cover the costs but they far exceed them. Although the benefits are plentiful there are some important costs and those are mostly pertaining to the companies and not to investors or governments. The companies, in order to reap all the benefits listed in this research, would need to invest certain capital into investment bank(s) that would organize an additional IPO, also the companies would have to pay the cross-listing fee to the exchanges, although this fee could be reciprocally removed with the prior agreement between exchanges. Another important cost to companies would be an additional time and funds spent in order to conform to the local laws and rules as well as an additional costs for another layer of auditing, but all in all the benefits on the macro as well as micro scale are apparently very much abundant, so it can be concluded that the benefit cost ratio, although not mathematically calculable, tilts benefits scale by far. Conclusion In conclusion, this research has clearly showed that the main obstacle of this merger is that of a will of directors of exchanges and sooner they start the procedure, sooner the Turkish and Bosnian companies, investors and governments can start gaining from the benefits listed. Also this merger can definitely serve as a breeding ground for future co-ops among other ex-Yugoslav or Balkan exchanges that suffer from the same problems as SASE. In all reality the sky is really the limit of the benefits that come out of this merger as it will not only generate value added benefits but also sizeable capital gains for all stakeholders involved. As with any research, especially since this merger is still in the inception phase, this research can serve as a starting point for any future researches on any topic pertaining to the merger of SASE and Borsa Istanbul. Hopefully generations to come will realize that the power is in unity on all levels, especially the economic one. References • Chan, K.C., Gup, B.E., Pan, M.S., 1997. International stock market efficiency and integration: A study of eighteen nations. J. Bus. Financ. Account. 24 (6), 803-813. 308 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation • Charles, A., Darne, O., Kim, J. H., & Redor, E. (2014). Stock Exchange Mergers and Market Efficiency. HAL. • Dorodnykh, E., 2013. What drives stock exchange integration? Int. J. Econ. Sci. Appl. Res. 6 (2), 47-79. • Dorodnykh, E., 2014. Determinants of stock exchange integration: evidence in worldwide perspective. J. Econ. Stud. 41 (2), 292-316. • Exchange, S. S. (2016, March 11). SASE. Retrieved from http://www.sase.ba/v1/ en-us/ • Fama, E.F., 1965. The behavior of stock-market prices. J. Bus., 34-105. • Fama, E.F., 1970. Efficient capital markets: a review of theory and empirical work. J. Financ. 25 (2), 383-417. • Fama, E.F., French, K.R., 1988. Permanent and temporary components of stock prices. J. Polit. Econ. 96 (2), 246-273. • Griffin, J.M., Kelly, P.J., Nardari, F., 2010. Do market efficiency measures yield correct inferences? A comparison of developed and emerging markets. Rev. Financ. Stud. 23 (8), 3225-3277. • Halilbegovic, S., Dzanic, E., & Alijagic, M. (2015). Berzansko Poslovanje. Cazin: Grafis d.o.o. • Hasanhodzic, J., Lo, A.W., Viola, E., 2011. A computational view of market efficiency. Quant. Financ. 11 (7), 1043-1050. • Kim, J.H., Shamsuddin, A., 2008. Are Asian stock markets efficient? Evidence from new multiple variance ratio tests. J. Empir. Financ. 15 (3), 518-532. • Kim, J., Yoo, S.S., 2009. Market liberalization and foreign equity portfolio selection in Korea. J. of Multi. Fin. Manag. 19(3), 206-220. • Mačiulis N., Lazauskaitė, V., Bengtsson, E., 2007. Evaluating performance of Nordic and Baltic stock exchange. Balt. J. Mgmt. 2 (2), 140-153. • Nielsson, U. (2007). Stock Exchange Merger and Liquidity. Columbia University. Columbia University. • Nielsson, U., 2007. Interdependence of Nordic and Baltic stock markets. Balt. J. Econ. 6 (2), 9-27. • Nielsson, U., 2009. Stock exchange merger and liquidity: The case of Euronext. J. Financ. Markets 12 (2), 229-267. • Werner, I.M., Kleidon, A.W., 1996. UK and US trading of British cross-listed stocks: an intraday analysis of market integration. Rev. Financ. Stud. 9 (2), 619-664. • Zhao, T., 2012. Firm size, information acquisition and price efficiency. Quant. Financ. 12, 1599-1614. Online references • ‘Bosnian stocks offered on Borsa Istanbul’, Retrieved from: http://www. worldbulletin.net/haber/151404/bosnian-stocks-offered-on-borsa-istanbul, March 10, 2016 • ‘Turkish Borsa Istanbul raises its stake in Bosnian peer’, Retrieved from: http:// www.reuters.com/article/bosnia-exchange-turkey-idUSL6N0US27M20150113 March 10, 2016 • ‘Početak godine potopio berzanske indekse u BiH’, Retrieved from: http://www. frontal.ba/novost/82314/-pocetak-godine-potopio-berzanske-indekse-u-bih, March 10, 2016 • ‘Share Turnover’, Retrieved from: http://www.investopedia.com/terms/s/ shareturnover.asp#ixzz42Xm44pU4 , March 10, 2016 • http://www.sase.ba/v1 • http://www.borsaistanbul.com/ ICESoS 2016 - Proceedings Book 309 �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3334 Title A name given to the resource BENEFIT ANALYSIS OF A DEVELOPING MARKETS STOCK EXCHANGE MERGERS: CASE OF A BORSA ISTANBUL AND SARAJEVO STOCK EXCHANGE Author Author Halilbegovic, Sanel Abstract A summary of the resource. Abstract: Whether due to mentality or the lack of investment ‘culture’, but people in the Balkans have certain repulsion towards investing in financial instruments offered by the local exchanges. Based on the public opinion one can conclude that most of the people are reluctant to invest in the financial instruments because they can’t rely on the trustworthiness and credibility of the local exchanges, due to corruption scandals, misconduct and wrongdoings that happened in the recent history. Since its inception, Sarajevo Stock Exchange has been suffering from extremely low volume and poor investment liquidity that in the end resulted with choppiness and overall instability in the market. Turkey’s main stock exchange, Borsa Istanbul, which is 80 times larger than SASE, has openly expressed interest in direct cooperation with Sarajevo Stock Exchange and that strategic move can certainly reduce or even eliminate problems local investors face. This study examines the effect of benefits and costs of the cooperation between Borsa Istanbul and Sarajevo Stock Exchange (SASE). Multiple facets of the benefits and costs are examined and their effect on the macro and micro scale. Macro effects of the raising stake of Borsa Istanbul in SASE include effects on government, municipality and overall economic level, while micro effect is the direct effect to the ‘end-consumer’, a small investor. The secondary data will be used in analysis of benefits to costs with the side by side comparison and eventual derivation of the Benefit/Cost ratio (BCR) that will test the hypothesis that benefits highly outweigh the costs in this cooperation. The research shows that raising the stake of Borsa Istanbul in SASE will bring a new level of professionalism and trust in a corruption and unprofessionalism ridden SASE. In addition Borsa Istanbul will open new market horizons to investors from Bosnia and as an outcome we should see and increase in market liquidity, trading volume and even the BDP of both countries. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3518 Title A name given to the resource SOCIAL CRITICISM IN FAHRENHEIT 451 by RAY BRADBURY Author Author Harmaoğlu, Özhan Abstract A summary of the resource. Fahrenheit 451 is a dystopian novel by Ray Bradbury published in 1953. It is regarded as one of his best work. When examining Fahrenheit 451 as a piece of dystopian fiction, a definition for the term “dystopia” is required. In Merriam Webster dictionary, the term “dystopia” is defined as “an imaginary place where people lead dehumanized and often fearful lives. Dystopia is often used as an antonym of “utopia”, a perfect world often imagined existing in the future. A Dystopia, therefore, is a terrible place. Accordingly, one of the major themes of the novel is “censorship”. Owing and reading books are forbidden and thought to be unnecessary. Members of society focus only on entertainment, mostly watching T.V, immediate gratification and speeding through life. Compared to the situation of our society today, the similarities can easily be seen. Perhaps reading books aren’t still forbidden but the importance of reading is fading away gradually and thought to be unnecessary and boring especially by most young generations whose only concern is social networks. The principal objective of this paper is to explain some ideas that work as social criticism in the novel. It will further explain how Bradbury criticizes society, what messages the characters give and then unfold what is being criticized in the future is actually very similar to what exists in our world today. The entire paper will give an effective explanation of social criticism of the novel by comparing the social criticism of the novel to other dystopian novels such as George Orwell’s “1984”. Keywords: Social criticism, Fahrenheit 451, censorship, dystopia Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English