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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Examination of Factors that Influence the Job
Satisfaction of Employees in Different Workplaces
Emina Sadikovic
Novi Pazar University, Novi Pazar, Serbia
eminanp@hotmail.com

Elma Elfid – Zukorlid
Novi Pazar University, Novi Pazar, Serbia

Azra Datovid
Novi Pazar University, Novi Pazar, Serbia

Increased interest in the purpose of working belief that the degree of
satisfaction with work has an influence on as pacts of working behavior,
such as productivity, absence from work and pre orientation, led to the
need for exploiting such a relation.
A few methods have been developed to determine the satisfaction with
work and job, mostly by using questionnaire techniques about attitudes
and interviews. A great number of attitudes about the satisfaction with
work has been investigated, both regarding individual and working
situation, but we have chosen to investigate the attitude of employed from
different institutions, that is working organizations, which have different
qualifications necessary for work, in come level and so on. The goal of this
investigation is to determine if there are statistically significant difference
in average level of satisfaction with work with the employed in different
institutions and to find out which is the crucial factor which affects the
satisfaction of the employed by work. Furthermore, sub goals are related
to investigating how in depend variables such as socio – demographic
characteristics of the examinees affect the satisfaction with the employed
working position.
The sample of 100 employed in total, 20 employed in 5 different working
organizations. The instrument has been constructed for the purpose of
investigating, and its validity has been checked. Statistical importance of
the differences between different samples will be investigated by using
analysis of variance so that we should be able by the obtained results
extract the conclusions.
Keywords: job satisfaction, employees, workplace, influence.

93

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                    <text>International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Examination of Factors that Influence the Job Satisfaction of Employees in
Different Workplaces
Emina Sadikovic
Novi Pazar University, Novi Pazar, Serbia
eminanp@hotmail.com
Elma Elfić – Zukorlić
Novi Pazar University, Novi Pazar, Serbia
Azra Ćatović
Novi Pazar University, Novi Pazar, Serbia
Abstract
Increased interest in the meaning of work and the belief that the degree of satisfaction
with the work affects aspects of behavior, such as productivity, absence from work
and reorientation led to the need to explore this relationship.
We have developed several methods for determining job satisfaction and work, often
with the use of techniques questionnaire on attitudes or interviews. In relation to job
satisfaction was investigated a large number of positions, both in the individual and in
terms of the work situation, but we chose to examine the attitudes of employees from
several different institutions that work organizations, which vary according to the
qualifications necessary for the operation, according to the amount benefits, etc. The
aim of research is to determine whether there are significant differences in the average
level of job satisfaction among employees from different institutions and to determine
who is the decisive factor that affects employee job satisfaction. Furthermore, the subgoals relating to examination as independent variables such as socio - demographic
characteristics of respondents plug on workplace satisfaction with employees.
The sample consists of a total of 40 employees, 20 employees from the public and 20
from private institutions. The instrument is constructed for the purposes of research
and its validity is checked. Investigated the statistical significance of differences
between the different samples analyzed by t - test. There was no statistically
significant difference between job satisfaction and organization of employees in state
institutions and employees in private establishments.
There was a statistically significant difference between male and female employees.
female employees show a higher degree of job satisfaction and organization.

Job Satısfactıon
Almost inevitably, the existing theories and concepts of motivation, in empirical work and
practice, the motivation for the work was determined by the satisfaction or in terms of
workers' attitudes towards work and work organization. Therefore, one can speak of a
certain gap between the theoretical concepts, the one and empirical work on the other. In
most empirical studies is inherent understanding that the general job satisfaction is a good
indicator of motivation to work. Increased interest in the meaning of work and the belief
that the degree of satisfaction with the work affects aspects of behavior, such as
productivity, absenteeism and reorientation led to the creation of extensive scientific
literature-according to some sources, up to 4,000-title devoted to this subject. Looking at
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

the numerous studies of job satisfaction we can see that the following issues attracted the
attention of psychologists:
Problem-definition, structure, factor content of job satisfaction
-Which factors most affect job satisfaction
-What is the relationship between job satisfaction and productivity of workers or any other
aspect behavior at work.
Definition and Factor Structure of Job Satisfaction
There are various definitions of general job satisfaction. According to a general job
satisfaction is one affective orientation towards work. In this way, overall job satisfaction
is defined as a general feeling about the job, taking into account the favorable and
unfavorable aspects of the job, it's affective response of an individual, which is the result of
experience on the job. In this sense, general job satisfaction is operationalized as the love
of the job, or the extent to which an individual likes his job. Similarly, overall job
satisfaction is defined as one generalized, attitude towards work in general. In both cases,
regardless of whether the job satisfaction is seen as affective relationship or attitude, job
satisfaction is perceived as a more general attitude towards work. Finally, overall job
satisfaction is defined as the sum of satisfaction with individual specific characteristics of
work and working conditions.
In accordance with this definition in the measurement of job satisfaction was measured by
appropriate indicators, such as the willingness and desire to change jobs, the desire to
choose the same or different type of work, the pleasant feeling of respect for the job, and
finally, a measure that shows what an individual feels his work in general. With regard to
the issue of content, ie, the factor structure of job satisfaction, whether job satisfaction
comes down to one or more factors. In an earlier study Kac (Katz) found that job
satisfaction has a number of dimensions: attachment-group -intrinsic satisfaction, one that
arises from the performance of certain tasks - sense of belonging to your organization satisfaction
of
material
status
and
the
status
of
the
job.
Growing number of researchers believe that job satisfaction has, makes a number of
factors, factors. On the other hand, the results of certain studies show that there is a
tendency towards higher positive correlations between the various aspects of job
satisfaction factors, "which suggests that there is a general factor G attitude towards work
situation." Relationship individuals to work sometimes is seen not only in terms of
satisfaction, but the ego-involvement, and intrinsic motivation of workers.
Ego-involvement is, in fact, the acceptance of the value of work, the role and importance
that work has in the life of the individual. Intrinsic motivation, according to this view, the
reference to "the extent to which the individual is motivated to do something good for
subjective rewards or feelings that are expected. This motivation occurs when a feeling of
self-esteem develops and linked to achievement. "As we see this kind of defining intrinsic
motivation is to some extent different from Hercbergovog that intrinsic motivation is
linked not only achievement, but also of the need for and the possibility of selfactualization. Engagement work relates to the psychological identification with the job. "In
this way, the statements, the measures that talk about the psychological importance and
identification with the work, taken as a measure of engagement with work, and statements
about the impact of the effect of the self-as a measure of intrinsic motivation." In both
cases, the work is an important content of life, individual satisfaction lies in the conduct of

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

business.
Measuring Job Satisfaction
There are different approaches to measuring the overall job satisfaction, tj.različiti
indicators or special instruments. According to a holistic approach to overall satisfaction is
defined as an affective attitude towards work, or as an attitude towards work. On the basis
of certain indicators such as interesting work, attachment to work, the importance of work
to the individual, etc., that claim, adding the responses obtained scores of general job
satisfaction.
There are attempts to measure the overall satisfaction obtained indirectly through
satisfaction of certain aspects of the job. This approach is a way of measuring job
satisfaction is based on the idea that what the worker feels about his work in general is a
result of his various aspects of job satisfaction. To obtain a score of general job satisfaction
apply different ways of combining individual factors job satisfaction.
The measure of general satisfaction is obtained on the basis of three types of data: the
importance of objectives, level of aspiration, and finally the degree to accomplish goals.
The difference between the importance of aspiration and achievement goals form the basis
of obtaining scores of general job satisfaction. The data show that overall job satisfaction is
much more to do with aspects that are the subjects identified as significant than with those
that are less important. This method of obtaining measures of general job satisfaction has
certain advantages over the other, because job satisfaction observed starting from the
needs, the importance of various goals and the possibility of their meeting in real life.
We have developed several methods for determining job satisfaction and work, often using
techniques questionnaire on attitudes or interviews. Suffice it to note that of the three main
methods - Guttmann (Guttman), Tarstonovog (Thurstone) and Likert - the last is
considered somewhat more reliable than others, and its setting, and the application and
require less time. Created a lot of questionnaires to determine attitudes towards work, in
relation to a number of dimensions.One of the most famous descriptive index Affairs (Job
descriptive index, Smith, Kendal and Hulin, 1969), which on the basis of factor analysis
dimensions of job satisfaction determines satisfaction in five areas. 1) work, 2) payment, 3)
advancement opportunities, 4) monitoring, 5) colleagues at work.
In relation to job satisfaction was investigated a large number of positions, both in the
individual and in terms of the work situation. Despite the fact they are in the U.S. and UK
women are predominantly employed in jobs that require lower qualifications, have a lower
status and lower incomes, several papers reported that in general terms, women are happier
than men work. The fact is, however, that in cases where women and men are employed in
the same job, have the same status and the same income, obtained results which, in turn,
suggest that women are more satisfied with their job, this fact suggests that these factors
probably not affect much on the job satisfaction in women as in men. For women, job
satisfaction can be conditioned by different factors, such as the social aspects of work
(Myers, 1964).
Job satisfaction seems to be increasing with age, although adequate research, in most cases,
a comparative-being made the comparison between different groups of workers, with
members of each group were of similar age. The difficulty of this method is that the
members of certain groups are not only different years but to a different generations. In one

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

of the first studies of job satisfaction (Hoppock, 1935), we used the "pattern" that is reinvestigated 27 years later. In other words, interviewed the same group of people in
different age groups. Although Hopokov "pattern" was very small, the results are
nevertheless showed that satisfaction with the work of 23 of the respondents increased in
seventeen cases, and decreased in only 2 cases. When the length of service carefully
observed, it seems that job satisfaction increases with age, but slightly decreases if the
tenure longer. (Gibson and Klein, 1971).
Job satisfaction is increased by raising the level of work in the organizational hierarchy. So
supervisors show more pleasure than workers, much like the more rewarding if the senior
administrative positions. Generally, department directors are satisfied with the personnel
director (Porter and Lawler, 1965). Even more generally, the people who work in smaller
groups are more satisfied than workers in larger groups.
In terms of job satisfaction major differences show up depending on the type of job.
Results of one study showed that, on average, approximately 43% of clerks, but only about
24% of workers, re-select the same call (O'Toole, 1973).
Sometimes I think that the difference in job satisfaction according to the calls reflect
differences in job content, especially in the degree of autonomy, responsibility and
diversity which include individual calls. For these elements content of work is considered,
in general terms, they are among the most important determinants of job satisfaction and
work.
There have been frequent attempts to show that the satisfaction and quality of work in a
positive compared to the same time showed that efforts towards the enhancement of job
satisfaction can have practical results. However, the conclusion of one of the first of
comprehensive study of the relationship between satisfaction and quality of work
(Brazfield and Crockett, 1955) was that there is little convincing evidence of any closer
relationship between the two. It is likely that there are several reasons why this is so, for
example, many work situations, the quality of work can not do much to change-it gives, for
example, the flow of work is organized to prevent such changes, whether it's on the other
side, it restrictions productivity due"group norms."
Secondly, in terms of motivation has large individual differences between workers
(Hackman, 1979). Taylor believes that in terms of sick leave "job satisfaction among the
most important causal factors." Exploring psychological correlates of sick leave, Taylor
(1969) found that workers who are "still healthy" show a high degree of introversion and
low neuroticism, that those who are "often sick" show signs of extroversion, a "long
illness," a high-level of neuroticism.
It was found that the strong correlation also exhibited suspicious absences, such as absence
from work increases with higher degree of suspicion. As for a job change, Porter and
Spears pointed out that "all in all, there is compelling evidence that the general job
satisfaction is an important element in deciding whether an individual stay or not," though
note that in terms of absences evidence is not so convincing. Personal differences are also
associated with changing work in that "those who go to" show different characteristics of
"those who remain."
For the first found to have achieved more success, be more independent and aggressive,
while others were emotionally balanced and mature. Briefly examines the relationship

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

between job satisfaction and work accidents. Ker (1950) was of the opinion, mainly on the
basis of its own research institute, provides just under half of the difference in the rate of
accidents among individuals related to dissatisfaction at work, about half related to stress at
work, and the rest can be attributed to individual characteristics or preferences to accidents.
In most studies that analyzes the relationship between job satisfaction and work accidents
was not possible to equalize the level of risk to which individuals are exposed. In one
operation, in which the attention given to this factor, as well as a number of other
variables, led to a very significant relationship between the number of accidents and the
level of dissatisfaction with (Davids, Mahonev, 1957).
A. Hejl and M.Hejl (1971) point out that on the basis of most of the research in this area
can draw very few conclusions, mainly due to poor methodology and believe that with any
"security" can not be argued that an increase in job satisfaction reduced the number of
accidents by, say, improving security measures, at the same time increased the job
satisfaction of nobody, it seems not even studied.
In Britain, UN States and many European countries, about half of deaths each year, and
men and women, is attributed to cardiovascular disease. Factors associated with a high risk
of heart disease include smoking, high cholesterol, blood pressure, blood sugar and
excessive weight. However, a large number of papers indicating that a substantial part of
these hazards may be responsible for the social and psychological factors, and it's impact
on the development of research factors in work situations that could affect the increased
susceptibility to heart disease. Among the factors which have been shown to influence
susceptibility to this there are job satisfaction (Sales, House, 1971) and sters at work.
It is believed that the components of stress at work responsibility, particularly the
responsibility for other people, a very heavy burden of work and proper status. It was
shown that the directors consider themselves less nervous and anxious than is the case with
workers in manufacturing (Hekman, 1969). Factors content of work are of great
importance and impact on job satisfaction, which, in turn strongly associated with many
aspects of behavior, including mental health workers. Hence no iznenenađuje you make
efforts to increase job satisfaction through work planning. There are some differences in
the factors of satisfaction between men and women, workers-union members and those
who are not. Men are compared with women more important job security, high wages and
good company. Women are the preferred type of work and the opportunity for
advancement. Job security, especially high salaries for women were less significant, which
is razumlivo with respect to the position and role of women in the family, whose income is
probably an additional source of income at home.
The most comprehensive review and analysis of previous studies of conditions that affect
job satisfaction given by Herzberg 'and associates. Based on previous studies of job
satisfaction in the 150 study, the authors have given ranking factors of job satisfaction
(14):
 Security deal
 Interest (intrinsic aspect of the job)
 Advancement opportunities
 Recognition obtained from the Head
 Companies and administrations
 Intrinsic aspects of work excluding ease
 Wage
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo




















Intrinsic aspects of the job
Management
Comparing the second Group data is observed the following:
Job security is what the workers are the most wanted in the job, which can be
explained by the possibility of an objective statement, dismissal from work,
What he called Herzberg 'motivators, there is something less important, and those
in this ranking followed after job security,
Wage compared with the previous factors (safety factors and content of work) is
less important, but more important than the other external factors,
Working conditions, management, ease of work, benefits have relatively little
importance for job satisfaction.
A recent study gives the following ranking of what workers want most in your job:
The ability to do the job well,
Leader, who will hear and help the worker,
Per-platter capacity,
Advancement opportunities,
Pay per piece, good staff,
Decision making possibility
Colleagues who appreciate the ability to work and workers,
The ability to grasp their own contributions,
Manager that provides the necessary technical assistance,
Ability to use skills, good and safe physical working conditions, good wages,managers who receive and apply the suggestions of workers.

The importance of each factor in job satisfaction can be changed, that grows and decreases
relative stability or instability, employment opportunities, etc.-influencing expectations of
individuals, and thus, indirectly, to the satisfaction and motivation to work.
Aim of the Research
Determine the level of satisfaction regarding jobs and organizations in different institutions
Problems
1. Determine the level of satisfaction with the workplace and organization
2. Is there a significant difference in the level of satisfaction with the workplace and
organization among employees of state institutions and employees of private companies
3. Is there a significant difference between male and female employees in the level of
satisfaction with the workplace and organization
Hipothesis
H-1 Is assumed to be employees of state institutions have a higher degree of job
satisfaction of employees of private institutions
H-2 Assume that female employees have a higher level of satisfaction with the workplace
and organization

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Research Methodology
Subjects:
From a total of 46 employees in this study included 40 patients. A sample of 20
respondents consisted of staff training - educational institutions (kindergartens, schools, the government agency) and the second sample consisted of 20 employees of the textile
enterprises (private) Demographics of respondents are presented in the following tables:
Table l.Gender And Level of Education of Respondent

School degree
High school degree
Bachelor degree
N

Male patients

Female respondents

2
9
5
16

13
6
5
24

15
15
10
40

Table 2. Age of the Respondents
Minimum
Average
Maximum

24
40.82
60

Table 3. Length of Service (Years) Subjects
Minimum
Average
Maximum

1
15, 97
35

Instruments:
1. Questionnaire on the job satisfaction and organization; author: Ema Kapetanovic, year:
2002.
The questionnaire consists of 22 questions of mixed type. The first part of the
questionnaire relates to the demographics of the respondents, psychosomatic diseases and
harmful habits (smoking, alcohol consumption). The second part of the questionnaire
relates directly to job satisfaction mjestom.Zadovoljstvo workplace in general examines
fourteen issues. Satisfaction with various aspects of the job, tested in the seventeenth issue,
which consists of 27 sub-questions where the respondent satisfaction with specific aspects
of the job is estimated at five-stepenoj scale:
 I am very satisfied
 I'm pretty happy
 I'm not satisfied or dissatisfied
 I'm pretty unhappy
 I am very dissatisfied
(Results obtained on this scale have been taken as a measure of overall job satisfaction in
this study.) The third part of the questionnaire examines the potential fluctuation.

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Results and Interpretation
The problems were related to the determination of the level of job satisfaction and the
organization and comparison of job satisfaction and organization in different institutions.
The following results were obtained:
Table 4.Job satisfaction in state and private institutions

M
SD
Σ
N

Job satisfaction in state
institutions
86, 65
20,64
3466
40

Job satisfaction in
private institutions
75, 33
17, 34
3010
40

The table no. 4, we conclude that the average value of job satisfaction and organization in a
sample of employees from government agencies M = 86.65 and SD = 20, 64 and
employees of private institutions is M = 75,33 SD = 17, 34. The t - test the statistical
significance of the differences obtained (Table no. 5).

Table 5.Job satisfaction in state and private institutions

M
SD
Σ
N
t
p

Job satisfaction in state
institutions
86, 65
20,64
3466
40
1,32
p&gt; 0.05

Job satisfaction in private
institutions
75, 33
17, 34
3010
40

The t - value, indicating that there is no statistically significant difference in workplace
satisfaction and organization among employees in the private and employees in state
institutions at a significance level of 5%. So, we can assume that the difference between
the variables, is not greater than the random links. Based on the obtained results it can be
concluded that H l, not confirmed, that was shot down.
The third problem is related to the testing of the difference in the level of job satisfaction
and organization between male and female employees.
Table 6Job pleasure of male and female

M
SD
Σ
N
t
p

Job pleasure of male
90,69
18, 50
3690
40
2,03
p &lt;0.05

8

Job pleasure of female
76,65
20, 64
3466
40

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

The results obtained t = 2.03, p &lt;0.05 indicates that the difference in the level of job
satisfaction and organization between male and female respondents significant at a
significance level of 5% (but not at a significance level of 1%). Based on the obtained
results it can be concluded that the H2 was confirmed. Thus, the female employees showed
a higher degree of job satisfaction and organization of the male.
It can be assumed, a possible suspect in the anonymity of the survey of workers, and their
fear of losing their jobs, leading to giving socially desirable responses, and responses were
obtained in the questionnaire, does not correspond to the actual state of the population,
which in turn may lead to deviations results than expected.
However, the arithmetic mean of the results obtained in the L - scale (which examines the
pursuit of social affection, socially desirable answers and honesty in answering) is M = 8.2,
SD = 2.30, (all 5 patients had a score higher 10, which is taken as a threshold value), it can
be assumed that the respondents, however, were not so much, get socially desirable
responding.
While the study period there were no external or internal distraction to affect the
concentration of respondents in completing the form. Yet the study had some
shortcomings, which need, in addition to the previously mentioned state as a possible cause
of the deviation of some of the results obtained from the results that are consistent with
previous research. Specifically populations in which the research was carried out relatively
few, so on that basis would not be allowed to perform general conclusions.
It is also important to note that some studies have shown that job satisfaction increases,
raising the level of work in the organizational hierarchy, so that supervisors showed more
satisfaction than workers, much like the more rewarding if the senior administrative
positions, therefore it is expected that it may be separately treated workers with different
levels of education as well as workers who are employed in various workplaces.
Conclusion
1. There was no statistically significant difference between job satisfaction and
organization of employees in state institutions and employees in private establishments.
2. There was a statistically significant difference between male and female employees.
Female employees show a higher degree of job satisfaction and organization.

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Evsenck Hans, Sargent Charms, explain the unexplained, popular science series SFINGA,
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                <text>Increased interest in the purpose of working belief that the degree of  satisfaction with work has an influence on as pacts of working behavior,  such as productivity, absence from work and pre orientation, led to the  need for exploiting such a relation.  A few methods have been developed to determine the satisfaction with  work and job, mostly by using questionnaire techniques about attitudes  and interviews. A great number of attitudes about the satisfaction with  work has been investigated, both regarding individual and working  situation, but we have chosen to investigate the attitude of employed from  different institutions, that is working organizations, which have different  qualifications necessary for work, in come level and so on. The goal of this  investigation is to determine if there are statistically significant difference  in average level of satisfaction with work with the employed in different  institutions and to find out which is the crucial factor which affects the  satisfaction of the employed by work. Furthermore, sub goals are related  to investigating how in depend variables such as socio – demographic  characteristics of the examinees affect the satisfaction with the employed  working position.  The sample of 100 employed in total, 20 employed in 5 different working  organizations. The instrument has been constructed for the purpose of  investigating, and its validity has been checked. Statistical importance of  the differences between different samples will be investigated by using  analysis of variance so that we should be able by the obtained results  extract the conclusions.  Keywords: job satisfaction, employees, workplace, influence.</text>
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                <text>ISSN 978-9958-834-23-3     </text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Business Ethics from the Point of View of Corporate
Social Responsibility in Strategic Management
Mehmet Sadık Öncül
Tunceli University, Tunceli, Turkey
msoncul@gmail.com
Berrin Filizöz
Cumhuriyet University, Sivas, Turkey
msoncul@gmail.com
Banu Bolayır
Cumhuriyet University, Sivas, Turkey
msoncul@gmail.com
This study consists of two parts. In the first part, some knowledge related
to the basic concepts of business ethics within the context of corporate
social responsibility and information about the importance of business
ethics for businesses will be given. In the second part, a field research will
be conducted on industrial business organizations managers to determine
their perceptions about business ethics and then their opinions and
thoughts will be assessed. To accomplish this goal, a questionnaire has
been conducted on industrial business organizations managers to
determine their perceptions and opinions about business ethics practices.
The findings have been interpreted by statistical analysis using obtained
data in SPSS computer program.
Keywords: Strategic Management, Corporate Social Responsibility, Ethics,
Business Ethics.

198

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FILISOZ, Berrin
BOLAYIR, Banu</text>
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                <text>This study consists of two parts. In the first part, some knowledge related  to the basic concepts of business ethics within the context of corporate  social responsibility and information about the importance of business  ethics for businesses will be given. In the second part, a field research will  be conducted on industrial business organizations managers to determine  their perceptions about business ethics and then their opinions and  thoughts will be assessed. To accomplish this goal, a questionnaire has  been conducted on industrial business organizations managers to  determine their perceptions and opinions about business ethics practices.  The findings have been interpreted by statistical analysis using obtained  data in SPSS computer program.  Keywords: Strategic Management, Corporate Social Responsibility, Ethics,  Business Ethics.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Performance of Companies in Bosnia and Herzegovina in
2011
Abas Rošid
American University, Sarajevo, Bosnia and Hercegovina
abasrosic@gmail.com
Ermin Cero
American University, Sarajevo, Bosnia and Hercegovina
ermin.cero@gmail.com
Nedim Čelebid
American University, Sarajevo, Bosnia and Hercegovina
nedim@impactconsulting.ba
This paper analyses performance of companies in Bosnia and Herzegovina.
Companies are divided into main sections and divisions, according to the
NACE Rev. 2 statistical classification of EU, as well as by their size. Analyses
of overall performance in terms of sales, export, profitability, employment,
and trends in 2011 are elaborated in this paper. Special focus is on working
capital management of companies in Bosnia and Herzegovina and
comparison of their performance to that of companies in EU and USA. This
research paper explores the following questions: is there a difference in
overall performance measured by the size of companies (small and
medium companies compared to large companies) and performance of
companies in industry sectors with potential advantages based on the
development strategies in the country (wood processing industry, metals
industry, manufacturing of food)? Is there a difference in performance
when industry sector is analyzed vertically (i.e. in metals industry,
comparison of performance between companies in mining industry and
manufacturing of metals)? Is there a difference in main categories of
working capital management (days of sales outstanding, days of inventory,
and days of payables outstanding) between industry sectors, within one
industry sector, and between small and medium companies and large
companies? The research has been performed based on financial
statements of all companies that have submitted their reports to
authorized entity agencies (AFIP and APIF) for 2010 and 2011. In total,
28,505 limited liability and shareholding companies have submitted their
financial reports for the fiscal year 2011. The results show overall weak
performance, especially for small and medium sized companies, in terms of
2

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

profitability, growth, and return on equity and exports. There are also
significant differences in performance among industry sectors and within
some industry sectors. It indicates that performance in main industry
sectors is weaker when moving up vertically in main industry sectors.
These results may imply that companies in Bosnia and Herzegovina are
resource based, and that they do not apply innovation and technology,
which would give them a sustainable competitive advantage on the
market. Results also show that working capital management of B&amp;H
companies is far below the level of companies in EU and the USA. Analysis
of working capital management based on the size of companies’ shows
substantial differences between SME and large companies in B&amp;H.
Keywords: Company performance, Working capital management, Days of
sales outstanding, Days of inventory, Days of Payables outstanding, Cash to
cash cycle.

3

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          <element elementId="96">
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                <text>ROŠIĆ, Abas
CERO, Ermin
ČELEBIĆ, Nedim</text>
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          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
            <elementTextContainer>
              <elementText elementTextId="13822">
                <text>This paper analyses performance of companies in Bosnia and Herzegovina.  Companies are divided into main sections and divisions, according to the  NACE Rev. 2 statistical classification of EU, as well as by their size. Analyses  of overall performance in terms of sales, export, profitability, employment,  and trends in 2011 are elaborated in this paper. Special focus is on working  capital management of companies in Bosnia and Herzegovina and  comparison of their performance to that of companies in EU and USA. This  research paper explores the following questions: is there a difference in  overall performance measured by the size of companies (small and  medium companies compared to large companies) and performance of  companies in industry sectors with potential advantages based on the  development strategies in the country (wood processing industry, metals  industry, manufacturing of food)? Is there a difference in performance  when industry sector is analyzed vertically (i.e. in metals industry,  comparison of performance between companies in mining industry and  manufacturing of metals)? Is there a difference in main categories of  working capital management (days of sales outstanding, days of inventory,  and days of payables outstanding) between industry sectors, within one  industry sector, and between small and medium companies and large  companies? The research has been performed based on financial  statements of all companies that have submitted their reports to  authorized entity agencies (AFIP and APIF) for 2010 and 2011. In total,  28,505 limited liability and shareholding companies have submitted their  financial reports for the fiscal year 2011. The results show overall weak  performance, especially for small and medium sized companies, in terms of profitability, growth, and return on equity and exports. There are also  significant differences in performance among industry sectors and within  some industry sectors. It indicates that performance in main industry  sectors is weaker when moving up vertically in main industry sectors.  These results may imply that companies in Bosnia and Herzegovina are  resource based, and that they do not apply innovation and technology,  which would give them a sustainable competitive advantage on the  market. Results also show that working capital management of B&amp;H  companies is far below the level of companies in EU and the USA. Analysis  of working capital management based on the size of companies’ shows  substantial differences between SME and large companies in B&amp;H.  Keywords: Company performance, Working capital management, Days of  sales outstanding, Days of inventory, Days of Payables outstanding, Cash to  cash cycle.</text>
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                <text>International Burch University</text>
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                <text>2013-05-10</text>
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PeerReviewed</text>
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                <text>ISSN 2303-4564     </text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Application of Securitization on the Financial Markets
Adnan Rovcanin
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
adnan.rovcanin@efsa.unsa.ba
Adna Mataradzija
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
adna.mataradzija@gmail.com
Amra Mataradzija
University of Sarajevo, Sarajevo, Bosnia and Herzegovina
amra.mataradzija@gmail.com
On some financial markets commercial bank loan capacity is largely dependent
upon foreign funding, which is quite expensive, and it diminishes liquidity of
the overall economy and hinders the development of the country's flagging
economy. Based on the assumption that securitization is one of possible
methods for solving this problem, this paper discusses the possibilities of its
implementation into the financial markets and advantages of that process.
Some financial analysts declared the securitization as one of the main culprits
for the development of the global economic crisis. However, the fact that the
causes of the crisis are much more complex supports the thesis that
securitization still be considered a very valuable tool for the development of
financial markets, noting that its misuse can have far reaching negative
consequences. Bearing in mind the appropriate features of loan portfolio and
Basel II regulations, it points to the conclusion that the possibilities of
implementing this process into the some financial market is welcomed and
that it may have positive effect on increasing the level of liquidity and the
overall economic development.
Synergistic effects of Basel II and
securitization of receivables, could lead to many positive effects. The process
of securitization creates a wide variety of securities covered by assets, which
are most characteristic of the securities covered by the mortgage (Mortgage
Back Securities) and the securities covered by assets in the narrow sense (Asset
Back Securities). Financial institutions that put their assets into process of
securitization could obtain alternative sources of funding, increased financial
flexibility, lower cost of capital, strong balance sheet, reduce credit exposure,
etc. The initiation of securitization would allow cheaper sources of financing to
banks, which would lessen dependence on expensive foreign sources of
capital. The aim of this paper is to describe the process of securitization of
receivables and the effects of introducing a specific financial market, with
elements of the classification.
Keywords: securitization of receivables, loan portfolio, credit risk, ABS, MBS,
banking system, Basel II standards

10

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                <text>Application of Securitization on the Financial Markets</text>
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                <text>ROVCANIN, Adnan
MATARADZIJA, Adna
MATARADZIJA, Amra</text>
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          <element elementId="94">
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            <description>A summary of the resource.</description>
            <elementTextContainer>
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                <text>On some financial markets commercial bank loan capacity is largely dependent  upon foreign funding, which is quite expensive, and it diminishes liquidity of  the overall economy and hinders the development of the country's flagging  economy. Based on the assumption that securitization is one of possible  methods for solving this problem, this paper discusses the possibilities of its  implementation into the financial markets and advantages of that process.  Some financial analysts declared the securitization as one of the main culprits  for the development of the global economic crisis. However, the fact that the  causes of the crisis are much more complex supports the thesis that  securitization still be considered a very valuable tool for the development of  financial markets, noting that its misuse can have far reaching negative  consequences. Bearing in mind the appropriate features of loan portfolio and  Basel II regulations, it points to the conclusion that the possibilities of  implementing this process into the some financial market is welcomed and  that it may have positive effect on increasing the level of liquidity and the  overall economic development. Synergistic effects of Basel II and  securitization of receivables, could lead to many positive effects. The process  of securitization creates a wide variety of securities covered by assets, which  are most characteristic of the securities covered by the mortgage (Mortgage  Back Securities) and the securities covered by assets in the narrow sense (Asset  Back Securities). Financial institutions that put their assets into process of  securitization could obtain alternative sources of funding, increased financial  flexibility, lower cost of capital, strong balance sheet, reduce credit exposure,  etc. The initiation of securitization would allow cheaper sources of financing to  banks, which would lessen dependence on expensive foreign sources of  capital. The aim of this paper is to describe the process of securitization of  receivables and the effects of introducing a specific financial market, with  elements of the classification.  Keywords: securitization of receivables, loan portfolio, credit risk, ABS, MBS,  banking system, Basel II standards</text>
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                <text>ISSN 2303-4564     </text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Innovation – the Answer to the Economic Crisis
Ognjen Ridic
University of Zenica, Zenica, Bosnia and Herzegovina
oggi.ridic@gmail.com
Goran Ridic
Sarajevo School of Science and Technology, Ilidza, Bosnia and Herzegovina
goran.ridic@ssst.edu.ba
The Western Balkan countries are in agreement about one thing: they all
want to become members of the European Union (EU). Accession to the
EU has become a national priority for Croatia, Serbia, Montenegro,
Macedonia, Albania, Kosovo and Bosnia and Herzegovina (B&amp;H). The first
decade of the EU accession of some EU countries meant progress. Years of
economic growth and prosperity are behind us. In 2013, EU is overindebted, with millions unemployed and unable to address the present
economic crisis. It is losing its share of global market for goods and services
and aging population threatens to collapse the "welfare state." The
inability of the EU to resolve the accumulated economic problems
undermined the credibility of the European integration, opening the
hazardous speculations on the nature and necessity of the union. Certain
states, such as Great Britain, are openly announcing a referendum to
remain in the EU. Some countries are partially affected by the economic
crisis and achieved outstanding economic results. Along with some Asian
countries, Turkey is an example of how, even without EU membership, a
country can efficiently solve present economic problems. Small and
underdeveloped countries, such as B&amp;H, can learn a lot from Turkey. The
essence of success is the open competition, simplified registration
procedures and operations, the attraction of investors, innovations and
management of innovations. The introduction of innovations is important
in all aspects of the B&amp;H society, but it is particularly interesting in health
care. B&amp;H annually allocates 11.0% of its GDP to health care. The study,
which we had conducted, showed that there are different views regarding
the quality of health care services, between service recipients (citizens and
patients - clients) and service providers (nurses and doctors). Nurses and
doctors believe that the current quality of health care is good, while
patients and citizens argue the opposite. If we put the patients at the
center of our attention, then we have to respect their opinions and all our
measures and actions must be subordinated to their satisfaction.
Innovative approaches and innovation management do not need
233

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

additional funding. The use of the best techniques and practices, which
already exist at our hospitals and clinics raise quality of health care while
reducing costs. It should be kept in mind that the process of quality
improvement must be continuous. A survey that we carried out on 313
patients in the Federation of B&amp;H shows that the managers of health
institutions are not satisfied with the quality of health care and believe
that this situation needs to be improved. For innovation in health care it is
necessary to create a critical mass of qualified managers - innovators who
will be supported by the key decision makers. To this end it is necessary for
health care institutions, as in all other areas of B&amp;H society, to create a
climate conducive to innovation as the part of national policy.
Keywords: Management, Innovation, Economic Crisis, Health Care, Quality,
Innovation Management, EU Accession.

234

�</text>
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                    <text>International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Innovation – the answer to the economic crisis
Ognjen Ridic
University of Zenica, Zenica, Bosnia and Herzegovina
oggi.ridic@gmail.com
Goran Ridic
Sarajevo School of Science and Technology (SSST), Sarajevo, Bosnia and Herzegovina
goran.ridic@ssst.edu.ba
Abstract
The Western Balkan countries are in agreement about one thing: they all want to
become members of the European Union (EU). Accession to the EU has become a
national priority for Croatia, Serbia, Montenegro, Macedonia, Albania, Kosovo and
Bosnia and Herzegovina (B&amp;H). The first decade of the EU accession of some EU
countries meant progress. Years of economic growth and prosperity are behind us.
In 2013, EU is over-indebted, with millions of unemployed and unable to address
the present economic crisis. It is losing its share of global market for goods and
services and aging population threatens to collapse the "welfare state." The inability
of the EU to resolve the accumulated economic problems undermined the
credibility of the European integration, opening the hazardous speculations on the
nature and necessity of the union. Certain states, such as Great Britain, are openly
announcing a referendum to remain in the EU. Some countries are partially affected
by the economic crisis and achieved outstanding economic results. Along with
some Asian countries, Turkey is an example of how, even without EU membership,
a country can efficiently solve present economic problems. Small and
underdeveloped countries, such as B&amp;H, can learn a lot from Turkey. The essence
of success is the open competition, simplified registration procedures and
operations, the attraction of investors, innovations and management of innovations.
The introduction of innovations is important in all aspects of the B&amp;H society, but
it is particularly interesting in health care. B&amp;H annually allocates 11.0% of its
GDP to health care. The study, which we had conducted, showed that there are
different views regarding the quality of health care services, between service
recipients (citizens and patients - clients) and service providers (nurses and
doctors). Nurses and doctors believe that the current quality of health care is good,
while patients and citizens argue the opposite. If we put the patients at the center of
our attention, then we have to respect their opinions and all our measures and
actions must be subordinated to their satisfaction. Innovative approaches and
innovation management do not need additional funding. The use of the best
techniques and practices, which already exist at our hospitals and clinics raise
quality of health care while reducing costs. It should be kept in mind that the
process of quality improvement must be continuous. A survey that we carried out
on 313 patients in the Federation of B&amp;H shows that the managers of health
institutions are not satisfied with the quality of health care and believe that this
situation needs to be improved. For innovation in health care it is necessary to
create a critical mass of qualified managers - innovators who will be supported by
the key decision makers. To this end, it is necessary for health care institutions, as
in all other areas of B&amp;H society, to create a climate conducive to innovation, as the
part of national policy.
Keywords: economic crisis, management, innovation, health care, quality,
innovation management, EU accession.

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Introduction
Improving health care through innovation and management of innovation in F.B&amp;H is one
of the most important tasks facing healthcare providers and other institutions and
individuals whose activities are related to health. Innovating is an ongoing process that
does not tolerate delay. Innovation should be approached systematically taking into
account the specificities of F.B&amp;H. Since this is a very broad field we must define
priorities taking into account the limited financial resources available for this area.
The future of health care in F.B&amp;H will go parallel with the improvement of quality. As in
all other countries and our society will strive to reduce the cost of health services, thereby
enabling access to quality health care. Cost reduction will be achieved by reducing the
differences that exist in the delivery of services. The need for fast and high-quality
information will necessarily propel health care institutions in automatic data collection and
storage, which will make the industry more efficient and effective. The need for
monitoring organizational performance (quality) system and measurement of processes and
outcomes will advance the science of measuring performance in health care industry. The
need for accountability through a system would improve the health care industry on the
things that are important to patients. In short, the effects of health management will come
through cost reductions, in the short term, but will be implemented through new innovative
approaches that will be needed for healthcare industry to achieve these goals.
Of special importance will be monitoring of the quality of health services in relation to the
formally established set of standards. Quality of work in health care can be improved by
improving the quality of internal systems or external examination, on the basis of clearly
defined standards of quality. External review shall be performed by an independent body,
thus, taking into account previously set norms and standards. Some of them are:
Accreditation, ISO certification, EFQM (European Federation for Quality Management),
Malcolm Baldridge Award, etc. Thanks to the results of accreditation, health care
organizations can create short and long-term plans for improving the work and for the
rational use of resources, which will be used more effectively in order to meet
organizational needs.
Every health care organization and its management has a reason for the introduction of the
process of quality improvement. This may be due to reduced costs, increased profits,
greater market share, patient satisfaction, promotion of health institutions in general, moral
satisfaction of the business, etc.
Scientific and technological advances, modern procedures and diagnostic tests, new drugs,
increased demands and organization of health care increasingly pose financial strain on the
health care options in F.B&amp;H. Managers of health institutions, ministries and others will
need quality information related to the acquisition of new technologies, procedures and the
organization of new systems. In recent decades, the important reform activities have been
undertaken in the field of primary health care (PHC), in which significant domestic and
foreign assets were invested. The reform has replaced general family medicine with family
medicine and its principles are applied in all aspects of medical care. In this regard, it will
be extremely important to monitor whether the introduction of family medicine will lead to
improvement of PHC, in terms of better effectiveness, efficiency, economic utilization,
greater therapeutic response and the like.

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Today, there is generally a global consensus regarding public, political and professional
dissatisfaction with health care services. Problems are specifically related to access and
continuity of care, clinical effectiveness, patient safety, value for money, customer
satisfaction and public accountability. Developed world began to focus on preventive
medicine, primary care, service users’ involvement, as well as more explicit government
regulation of financiers of care through managed care and health networks. Continuous
assurance and quality improvement of health care, at all levels ensure the development and
implementation of quality improvement systems. Quality health care is a fundamental right
of every individual and every community. Today, there is no universal model for a national
policy on quality, but there are common elements of intent, organization and activities,
which the governments intend to implement. These elements include:





National values and priorities of quality;
National organization and structure of quality;
Methods, techniques and tools for quality development and
Resources to improve the quality

Materials and Methods
Data Sources
To test the research hypothesis, a survey was conducted at the level of management
innovation activities and innovation capacity, in order to improve the organizational
performance in health care organizations in Federation of Bosnia and Herzegovina. The
primary sources of data were used, in order to conduct the empirical research. Sources of
data for statistical sample were records of the Statistics agency of Bosnia and Herzegovina,
the Federal and Cantonal health insurance funds, the Federal Bureau of Statistics, Federal
and Cantonal Public Health departments, Federal Ministry of Health and the Federal
Institute for Insurance and Reinsurance. As secondary data sources, the monographs,
books, studies, journals and scientific papers were used. Additionally, the internet was
utilized as a data source.
In the first part of the empirical research we surveyed 313 respondents, with the aim to find
out to what extent they were satisfied with the quality and quantity of health services, and
how to evaluate the work of institutions and health care employees.
Area of our empirical study was Federation of Bosnia and Herzegovina (F.B&amp;H), an entity
that is part of the Republic of Bosnia and Herzegovina. Out of ten cantons in F.B&amp;H, the
focus of our survey has focused on three: Sarajevo, Tuzla and Zenica - Doboj Canton. In
these three cantons reside 1,337,834 inhabitants, or 57%, compared to the total F.B&amp;H
population of 2,866,157. Percentage of physicians in these cantons comprise almost 70
percent of the total number of doctors in F. B&amp;H. Costs for health care in these cantons,
comprise almost 50 percent of total expenditures on health care in F.B&amp;H.
In course of this research we have given emphasis to medical facilities, which are, in some
ways, leaders in healthcare in B&amp;H, including the F.B&amp;H. These are the Clinical Center of
Sarajevo University (CCSU), University - Clinical Center Tuzla and the Cantonal Hospital
in Zenica.

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Research Methodology
This research project was designed to be a combination of retrospective-prospective study.
In dealing with the problem set and presentation of research results, a number of scientific
methods were used. Within the theoretical part of the research, historical and descriptive
methods that describe the essence of innovation and development and innovation were
utilized; in combination with the compilation of associated knowledge, attitudes,
conclusions and the results of other authors. In the empirical part the methods of induction
and deduction for setting the general statement of research, quantitative methods for
proving the hypotheses, survey-based methods for data collection and analysis and
synthesis methods were used. For presentation and statistical analysis of the data collected
to investigate the influence of different variables, we used modern statistical methods for
the analysis of health care, such as, methods of statistical analysis of variance (ANOVA)
and Post Hoc Tukey – Kramer (multiple comparison) HSD Test. A comparative analysis of
the research results for health care organizations and number of conclusions relevant to
other business areas F.B&amp;H were performed.
The planned study was conducted in two phases:
During the first phase we analyzed the available literature in the field of innovation and
invention, with a special emphasis on innovative activity in the service sector, where health
care organizations belong. We analyzed numerous secondary data sources, such as books
in the field of innovation, strategic and entrepreneurial management statistical reports on
innovation in the EU, U.S., Canada, Japan, etc. In addition, we explored numerous books,
monographs, expert articles, brochures, manuals, dissertations and masters’ theses on the
topic of innovation. We also analyzed innovation policy, the structure of health care and
business performance of organizations in light of the implementation of management
innovation in health care. As a source of secondary data we also used the Internet.
In the second phase we conducted the empirical research using modern research
methodology, adapted to the conditions and level of development of innovation in F.B&amp;H.
Modern research methodology implemented, in OECD countries in the domain of
measuring innovation of national economies, were utilized. The aim of the empirical part
of this research was to gather information about the level of innovative activity in the
health care system, check the hypothesis of work and identify the most important variables
that affect the innovation and business performance of health care organizations.
Data collection was conducted in the period September - December 2011 through a
questionnaires, which were sent to postal and electronic mail addresses of health care
organizations in F.B&amp;H. Sources of data for the sample comprised from the records of the
Central Bureau of Statistics, the Federal Bureau of Statistics, Cantonal and Federal
Ministry of Health, Federal and Cantonal Public Health departments, Federal and Cantonal
health insurance departments and professional association database (i.e. Medical Academy
of Bosnia and Herzegovina) and Federal Institute for insurance and reinsurance.
From these databases we selected organizations by three criteria: the size of the
organization, regional and geographical origin and classification activities. In order to
ensure a sufficient number of responses, and thus the relevance of the sample, the
organizations to which we sent the questionnaires were contacted by phone, mail or e-mail
to respond to it in due time. The activities related to implementation of the survey

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

included: primary, secondary and tertiary levels of health care, in addition to: Federal and
Cantonal Ministry of Health, Federal and Cantonal Public Health, Federal and Cantonal
Health Insurance, Federal Insurance and Reinsurance Funds, State and Federal Bureau of
Statistics, Cantonal Hospital in Zenica, Clinical Center University of Sarajevo (CCUS),
University Clinical Center in Tuzla and other health care organizations in F.B&amp;H.

Results and Discussion
Table 1. Statistical data for all surveyed.
Group

f

Percentage %

(Frequency)
Valid

Citizen

110

35,1

Patient- client

110

35,1

Medical

25

8,0

Physician

16

5,1

Manager of Health

52

16,6

313

100,0

technician/nurse

Care institutions
Total:

For statistical survey conducted we used the sample of 313 respondents. Out of total,
35.1% (N = 110) were citizens, 35.1% (N = 110) patients-clients and 8%, or (N = 25) were
nurses.Physicians comprised 5.1% or (N = 16) and the managers of health care institutions
16.6% or (N = 52) (see Table 1).
All responses with processed statistically significant differences are summarized in the
appropriate tables.
Figure 1. Structure of surveyed as percentage of a total sample

(f=52) 16,60%
(f=16) 5,10%

(f=110) 35,10%

(f=25) 8%

(f=110) 35,10%

Citizen

Patient- client

Medical technician/nurse

Physician

Manager of Health Care institutions

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Theoretical and empirical studies clearly indicate that the innovation and management of
innovation are the key factors of competitiveness and the survival in today's increasingly
competitive market. Today, developed countries are doing significant efforts to making
innovation a national priority, with a special emphasis placed on measuring innovation
performances.
Empirical studies clearly show that the innovation process is complex and
multidimensional. The process never developed in a straight line, and some of the stages of
human history recorded accelerated growth or stagnation of innovation processes. It is
interesting to consider the reasons that have contributed to this rather interesting dynamics.
Going back, for a short period of time, we can see that for our ancestors, who existed
thousands of years before us, the life expectancy was 20 to 25 years. In 1800s the life
expectancy has increased tooapproximately 35 years and in 1900s was 48 years. In the year
2000 the average life expectancy has reached 78 years, an increase of 66% or an additional
30 years of life, compared to 1900s. From 1900 to 1950 life expectancy is constantly
extended, but since mid-50's to mid-60 of the last century this trend has been stopped.
After that, the life expectancy begins to grow again, and this tendency continues in the 21st
century. The reason for this increase was that in the first half of the last century the medical
scientists were able to conquer infectious diseases, together with provision of cleaner
household water, better sanitation and healthier eating habits. At the same time, for the first
time in history, mankind has managed to conquer infectious disease due to the
development of exceptional medications including penicillin, streptomycin and others. In
mid-century, after the fight against infectious diseases was complete, medicine has not had
adequate means to address new diseases, such as heart disease, autoimmune and malignant
diseases. Since the mid 50's to mid-60 of the last century, the medicine had little to offer
for the prevention or treatment of chronic and degenerative diseases, which have
dominated the pathological picture of the society.
Medical innovations have had a significant impact on cardiovascular diseases and
malignant neoplasms, which in those years took the largest number of lives. Many
techniques, such as bypass surgery, stents, heart transplantation, new drugs to control
blood pressure, lowering cholesterol and better clot-busting procedures had, as a result,
since 1975 that death from cardiovascular diseases was reduced by 60%. Reduction in
mortality due to malignant neoplasms was less dramatic, but it showed a constant decline.
In 1975, five-year survival period for all types of malignant diseases was 50%. Today, the
five year survival period is almost 70%. Before 1950, children diagnosed with leukemia
had a survival prognosis of three months. Today, children diagnosed with leukemia have a
85% chance to heal. With the help of medical innovation we have not only added extra
decades of life and health, but the society also enjoyed additional years of productive work,
economic value added, increased household spending and increased tax revenues. The
study, which was conducted at Columbia University (New York City, USA) by researcher
Frank Lichtenberg, showed that the use of new drugs increased life span by 40% between
1980 and 1990. In other words, for each year of life extension, five months was a result of
the application of new drugs (Lichtenberg, 2007), (Lichtenberg, 2009), (Lichtenberg,
2010).
If we succeed to thoroughly clarify a complex process of innovation in health care, it
would allow practitioners and decision makers to better assess, adapt and perform services,

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

in such a way to give priority to innovation in health care, thus, representing a true value. It
is evident that the prioritization also poses a serious challenge. This process should be
approached with full consideration of the specificities of each community. In the modern
world, innovation is considered a critical component of business productivity and condition
of survival in the market.
In the second half of the last century, medical science has progressed exponentially.
Unfortunately, in many countries, including Bosnia and Herzegovina, the system of paper
documents (i.e. medical records) still provides information vital to the delivery of health
care. Patient information is routinely kept in the archives with the same mentality, which
was used to store information about other goods and services. A paper record is always
associated with the defects, which are very expensive in healthcare. From $ 600 billion that
is spent on laboratory tests in the U.S each year, 70 percent is paid for paper records. Huge
savings are possible by introducing an electronic medical record (EMR). This electronic
record can easily detect and eliminate errors. Treatment of patients and exchange of
information on their health, through the medical paper (non-electronic) records are very
tedious and often an impossible task. Without insight in this document it is impossible to
know the patients’ medical histories. Electronic recording of patients’ conditions allows
the doctor to quickly exchange X-ray, CT, MRI, etc. pictures and test results with
colleagues in the same hospital, other clinics around the countries and the continents
(Mašić, 2007)(Reid, 2009).
We estimate that the EMR will be one of the priorities of innovation in F.B&amp;H.
Unfortunately, for a number of employees in the health care sector; it is still a new fashion
trend and not the essential need in changing for the better quality of health care. Empirical
research shows that managers of health organizations recognize the importance of this
document, but for its full application numerous barriers should be eliminated. Results of
theoretical and empirical studies suggest, that, in the future, the treatment of the most
serious and complex diseases of modern time, by applying effective innovation will get a
completely new forms and outcomes (Mašić, 2007).
Malignant neoplasms, with new, innovative treatment approaches will become a chronic
disease. Cancer, although it will not be eradicated, will create less anxiety in patients, who
will be better informed and more easily learn to live much longer with this chronic disease.
How true this picture is going to be will depend on the number and quality of new
technologies that will emerge with innovation. It is evident that the longer life of these
patients, will increase many times over the cost of their treatment, thus, creating a tension
between the requirements of patients and those who pay for services. With malignant
neoplasms our primary goal is to turn malignant disease into a chronic illness. To achieve
this ambitious and noble goal it is necessary to promote a healthy lifestyle and diet, to
educate health care professionals and patients on the basis of general control and organize
early effective answers to the first signs of the disease. Five oncology centers exist in
Bosnia and Herzegovina. In the treatment of malignant diseases they apply modern
principles of surgery, chemotherapy, radiotherapy, citotherapy and immunotherapy.
Through education and prevention in its current phase, the goal is to reduce by 10 to 20
percent the number of patients who reported, too late to doctors for the life – saving check
– ups (Porter, 2006).
Innovations in the treatment of malignant diseases are inevitable because of the complexity
of disease, morbidity and mortality. Innovation had primarily to be transformed into useful

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

therapies that will be directed to the true biological target that is appropriate to the patient
and in a way that is acceptable to patients, healthcare professionals and society as a whole.
Innovation must be successfully introduced to the market for the professionals, as well as
patients and those who pay the costs. All of these stakeholders need to see the potential
benefits of these activities. Today, we see an explosion of new therapies to treat cancer and
their prices remain very high. It is estimated that the cost of drugs for the treatment of
malignant neoplasms in 2005, globally totaled US $24 billion. Of this amount, $ 15 billion
was spent in the United States. Technology will detect, which patients do not respond well
to therapy. In this way, today known drugs, in the near future will become obsolete.
Doctors will know very precisely, at which stage of the disease, the particular type of
treatment is necessary. Ten years ago, the average cost to develop a new anti-cancer drug
amounted to $400 million. Today, these costs amount to about $1 billion. If they continue
to rise at this rate of growth, the cost of developing new drugs could soon reach $2 billion,
which is the amount that for the existing market could be difficult to sustain (Shi &amp; Singh,
2003), (Reid, 2009).
Data from the U.S., from the year 2005 show that the costs of care for cancer patients, in
the last six months patients’ life accounted for 70% of total costs, and that will grow four
times in 2025, since that patients will live longer and new and costly therapies will emerge.
This increase in cost will inevitably create tensions between those who provide funds and
those who consume them. Such a rapid rise in cost will necessarily lead to the efforts to
figure out how to better direct the costly therapies and to use fewer hospitals, home care
and more. One of the dilemmas in the future will be the political effects of an aging
population, which will expect better service than what is offered to the majority of elderly
people today. A small number of elderly people will be able to be provided with all the
necessary care. The vast majority of others will have to rely on state protection. It is
estimated that on a global level there continues to be a lack of those who provide health
care services. Cancer or malignant neoplasms, cardiovascular diseases and dementia in the
future will be controlled and will join the list of chronic diseases, such as diabetes, asthma
and high blood pressure. New ethical and moral dilemmas will occur, in parallel with the
success that brings a lower incidence of disease. Living longer and dying more quickly,
according to some scientists, will be one of the basic principles of Western medicine in the
21th century (Raffel, 1997).
F.B&amp;H, in all this, must determine its own path, so that the limited resources we have at
our disposal for health care, ensure maximum for patients, their families and society as a
whole (Mašić, 2007), (Mašić, Novo &amp; Toromanović, 2009).
Information technologies (IT) are becoming a key factor for innovation in health care. The
modern world is increasingly using outsourcing in diagnostic services - especially medical
examinations, such as mammograms, X-rays and consultation of specialists. Telemedicine
is used in the U.S. and other developed countries, in order to provide the care to patients in
remote and difficult to access locations. Most of today's health information systems are
designed to function autonomously, with its own rules and formats. They often prevent
information to be globally integrated and always readily available. In some cases, the
patient's electronic ticket from one hospital is not readable in another. Not only different
languages and measurements, but also the conflicts and different encryption software, are
the reasons, as to why it is impossible for the system to electronically exchange data. By
eliminating these barriers at local, regional and state levels, our ultimate goal should be the

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

creation of medical records, which can travel along with the patient throughout the world
(Porter &amp; Teisberg, 2006) (Mašić, 2007) (Mašić, Novo &amp; Toromanović, 2009).
A particular problem in the process of innovation is the production of drugs and their
safety. Today's tendency is to produce drugs that are universally acceptable to all patients.
Today’s drug manufacturers will have to replace currently used drugs with new ones that
have been specifically selected for particular groups or even individuals in the future.
Analysis carried out in developed countries show that (for 88% of chronic and complex
diseases), medications are first choice for medical intervention. Americans with chronic
and complex diseases, such as diabetes, heart disease, osteoporosis and cancer, contribute
to 75% of the cost for medical treatment in the USA. Regardless of the significant side
effects, drugs now represent a remarkable segment of health care. For example, we can
consider just diabetes. If not controlled, diabetes can lead to a cascade of potential
complications that result in increasing human, social and economic costs, including
blindness, amputations, kidney disease, heart diseases and ultimately death. In patients
who regularly take medicine for diabetes, medication costs increase, but the total cost of
treating diabetes and complications that it produces is declining. For many diseases the
situation is very similar (Porter &amp; O'Grady, 2007).
For all of these, innovative drugs are often, both medically and economically, most
effective alternative. In developed countries, about 60% of patients with diabetes do not
keep the disease under control in order to avoid serious complications. With innovation
and appropriate management of innovation new modern medical science adjusted
medication to individual needs of patients, providing them with the right medication, with
the right dose at the right time. From the standpoint of value for money, drugs adapted to
the needs of patients will also reduce the high costs associated with those who do not
respond to them. This type of innovation is exactly what patients want today (Katz &amp;
Green, 1997), (Reid, 2009).
Medications (prescription drugs) that come on the market today in F.B&amp;H, are either new,
patented or generic. For generic drugs, the patent protection has expired. New (i.e. brand
name) drugs are significantly more expensive than the generic. For these reasons, generic
drugs should be used whenever possible. B&amp;H and its larger entity F.B&amp;H, unfortunately
have no coherent funding and procurement of medicines. Ten cantons comprising F.B&amp;H,
according to Dayton Peace Agreement are independent in making decisions on
procurement of drugs. Experiences, as well as scientific works made on procurement and
drug prices in F.B&amp;H, show that rationalization, transparency and uniform procurement
policy remedies can save significant funds for taxpayers (Sivić et all., 2009), (AKAZ,
2009), (Šahovic, 2012).
A particular problem in F.B&amp;H is how to provide the basic list of essential medicines for
all of those who qualify. For this purpose, the creation of a special fund would certainly
give good results. Further measures include the reduction of irrational consumption,
ensuring that all patients have equal access to essential medicines and other lists, as well as
annual audits of funds allocated to medications at Cantonal level and F.B&amp;H.
Establishment of a separate body within the Ministry of Health of F.B&amp;H could create
transparent procedures for determination of prices and negotiating platform with
pharmaceutical companies. This body would have to establish close cooperation with the
relevant authorities in the EU countries The need for an international database related to
drug safety is constantly growing, especially since more and more people are traveling

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around the world. Unfortunately, the literature that we have analyzed does not largely
show that, in the world today, there are agencies that would mediate in the collection and
display of information about medicines, between countries. Health care, today is abundant
with basic innovations. Innovations that have been successfully applied in one location
often spread very slowly, or are not at all spread to other locations. Diffusion of innovation
today is an enormous challenge for all industries, including health care in F.B&amp;H and
B&amp;H (Rogers, 1995), (AKAZ, 2009), (Šahović, 2012)..
This process can be defined as "a clear, fact-based process, in which the identified needs of
patients are clearly understood and supported processes that with the smallest possible
variations lead to the most effective results achieved." The improvement is achieved by
constant input, process and results analysis using a specific tool. It is clear that there are
unlimited opportunities for improvement and innovation at every stage of the complex
activity of ensuring quality and affordable health care. Unfortunately, today's medical
practice is still dominated by processes, which from the perspective of patients are not
clearing (explicit) and are rather vague (implicit). In addition, there are other operative
procedures performed on patients who are not sufficiently familiar with the procedures that
doctors intend to carry out, which create consequences on the quality of the final outcome.
Being explicit, in medicine means, not only to clearly define the criteria for patients, but
also the professional criteria and standards, so that they can be investigated and be subject
to constant modifications and improvements (Rogers, 1995), (Stošić, 2007), (Prester,
2010).
The process of continuous quality improvement is based on the basic fact that people want
to do a good job, they are motivated and they want to work and to be consistent. They do
not want to be responsible for the variations that occur in the process. To avoid variations
in processes, they must be defined, analyzed and improved. People who participate in the
process may be praised, rewarded, warned, reprimanded, disciplined or dismissed. By
itself, it is clear which way is the most productive. Quality improvement in health care is
not possible if it cannot be measured. Managing the process of continuous quality
improvement does not differ in essence, if it was applied to industrial or medical processes.
Essential elements to be used in both processes are the facts, data and measurements that
measure all aspects of the process, starting from the patients’ needs and expectations. In
health care today, we do not lack information, but we do lack correct data presented in the
right way. Improving our performance in any sphere, be it, clinical, administrative or even
field maintenance and cleaning facilities, is not possible without valid performance
measurements (Lighter &amp; Fair, 2000), (Kuratko &amp; Hodgec, 2000), (AKAZ, 2009),
(Mosadeghrad, 2012).
The process of continuous quality improvement should be focused on differences or
variations. The variations are an integral part of the process, and their number increases
with the complexity of the process. Variations must be identified, and our efforts focused
on trying to restrict them their removal is a priority in the process of innovation in health
care. Quality can be described as the interaction between patients and those who care about
their health. Many patients and their relatives, pay special attention to the attributes of
interpersonal relationships, such as the ability to listen carefully to others, trust, respect,
confidentiality, courtesy, sympathy, understanding, a desire to respond with right
measures, willingness to help and show compassion, as well as to communicate
effectively. High quality does not have to be expensive. Right competition is based on the
results, leading to significant improvements and efficiency. What is important is to

10

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

understand that the quality of health care and costs often improve simultaneously.
Opportunity for simultaneous improvement of the above mentioned two items stem from
several reasons. Just by applying best practices almost all suppliers of health services can
improve the quality to increase profits without price increases (Berwick, 1991), (Katz &amp;
Green, 1997), ((Mosadeghrad, 2012).
Our research had shown that there are different views between patients, doctors and
managers about the current status of quality of health care. Nurses and doctors believe that
the current quality of health care is good, while patients and citizens argue the opposite.
Different opinion between patients, doctors and managers regarding the current status of
health care quality in F.B&amp;H are shown in Table 2. We valued all opinions on a Likert's
scale from 1 to 7, where 1 means – „I totally disagree“and 7 means „I totally agree“. Mean
values for patients, doctors and managers are shown in the Table 2. below:
Table 2. Means for different groups of population.
Patients
3,4636

Doctors
5,6250

Managers
3,4423

3,3000

5,6250

4,0000

3,2455

5,7500

3,7885

Health care is effective

3,1636

5,5500

3,7115

Health care is efficient
Health care shows
adequate results
Health care
organizations provide
total care to patients
Health care
organizations provide
high level of care
Health care safety is at
the high level
Health care is available
at the appropriate time

2,9729
3,1909

5,2500
5,4375

3,9423
3,8269

2,9636

5,3125

3,1538

2,9182

5,3750

3,2500

2,8545

5,0625

3,7115

2,6273

5,1875

4,3269

Health care
organizations provide
care appropriate to
patients’ needs
Health care is accessible
in legal and economic
sense
Health care is continuous

From Table 2 it is visible that there are differing opinions between patients, doctors and
managers. While doctors in most cases hold the opinion that the quality of health care
services is relatively good, patients do not hold that view. The managers are somewhere in
between.
If we put the patients at the center of our attention, than we have to respect their opinions
and all our measures and actions must subordinated to their satisfaction. Innovative

11

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

approaches and innovation management do not need additional funding. The use of best
techniques and practices, which already exist at our hospitals and clinics raise quality of
health care while reducing cost. It should be kept in mind that the process of quality
improvement must be continuous.
Conclusion
On the basis of research and analysis of the available literature, we conclude that
innovation and management of innovation processes become key to successful operation of
health care organizations in the future. Empirical studies show that in regards to the quality
of health services there are different views among three essential participants in health
care: patients - consumers, health professionals and health service managers. Patients –
users, largely expressed disagreement with the current situation and the level of quality of
health care, and health professionals (doctors and nurses) believe that the level and quality
of care is good. These two, completely opposite attitudes seek our further elaboration. The
goal of all of our innovative activities in the health sector must be satisfied patient. If
patient is not satisfied, it must be a clear signal that the expressed disagreement should be
further analyzed and action taken to eliminate the problems. This is supported by the views
of managers of health institutions which, although run by these institutions, believe that the
current situation is not good and that it should be changed.Health care is facing serious
challenges, and innovations in this field are an imperative of our society.
At the same time innovating and managing innovation processes is necessary for several
reasons. Financial resources that are at our disposal are limited and will be limited in the
future. Increasing national debts that must be paid back by the future generations cannot be
tolerated, nor can continue with this practice. It is naive to believe that the financial
problems that we are facing are only a consequence of present economic depression and
recession. Serious financial analysis clearly shows that we, as a society, cannot continue
with the current trend of spending.The second part of the challenge that we are facing is an
aging population. People are living longer, and to maintain health in the population over
age 65 from year to year more and more resources must be spent. A particularly interesting
part of the population is in the age of over 75 years. This group, which represents less than
5% of the total population, now consumes 25% of all patient-days in hospitals that treat
acute cases of diseases. This happens despite the fact those in recent years, the length of
stay in hospitals in for this age group has been reduced.
Previous preliminary and in scope modest research in B&amp;H and F.B&amp;H shows relatively
low levels of innovation, as a factor in improving the overall health care. Innovation, in
most cases, is left to the individuals who conducted their own research or
„borrowed“results of the developed countries, trying to innovate to change the existing
situation and make it better. Unfortunately, the process of innovation in F.B&amp;H is more the
exception rather than the rule. For quality and comprehensive innovation in health care
institutions and society as a whole, there is lack of critical mass of innovators, inventors
and special task managers.
Innovating in order to improve the quality of health services, reduce treatment time,
increase the number of recovered patients, reduce the cost of treatment and medicines, to
create a patient-observer active and satisfied partners who collaborate with healthcare
professionals during treatment, are all tasks that lie ahead of health workers and that we
must deal with today. Innovation and management of innovation must have access plans,

12

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

to coordinate and guide them in the right direction, continuing to analyze and correct all
phases. This is basically the task of innovation management.
Among the conclusions, in particular we want to emphasize the need for all relevant
political, health and other factors that innovation policy becomes part of national policy. In
this way, and society as a whole will be joined in the international competition. To achieve
the goals we have to provide a critical mass of managers, particularly managers’ doctor.
Their creation will be provided through educational processes so that managers will be
able to share their knowledge and innovative energy transferred to their co-workers, and all
relevant factors, the health process and future EU accession.

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Porter, T. – O' Grady, M.K. (2007). Quantum Leadership: A Resource for Health Care
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14

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RIDIĆ, Goran</text>
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                <text>The Western Balkan countries are in agreement about one thing: they all  want to become members of the European Union (EU). Accession to the  EU has become a national priority for Croatia, Serbia, Montenegro,  Macedonia, Albania, Kosovo and Bosnia and Herzegovina (B&amp;H). The first  decade of the EU accession of some EU countries meant progress. Years of  economic growth and prosperity are behind us. In 2013, EU is overindebted,  with millions unemployed and unable to address the present  economic crisis. It is losing its share of global market for goods and services  and aging population threatens to collapse the "welfare state." The  inability of the EU to resolve the accumulated economic problems  undermined the credibility of the European integration, opening the  hazardous speculations on the nature and necessity of the union. Certain  states, such as Great Britain, are openly announcing a referendum to  remain in the EU. Some countries are partially affected by the economic  crisis and achieved outstanding economic results. Along with some Asian  countries, Turkey is an example of how, even without EU membership, a  country can efficiently solve present economic problems. Small and  underdeveloped countries, such as B&amp;H, can learn a lot from Turkey. The  essence of success is the open competition, simplified registration  procedures and operations, the attraction of investors, innovations and  management of innovations. The introduction of innovations is important  in all aspects of the B&amp;H society, but it is particularly interesting in health  care. B&amp;H annually allocates 11.0% of its GDP to health care. The study,  which we had conducted, showed that there are different views regarding  the quality of health care services, between service recipients (citizens and  patients - clients) and service providers (nurses and doctors). Nurses and  doctors believe that the current quality of health care is good, while  patients and citizens argue the opposite. If we put the patients at the  center of our attention, then we have to respect their opinions and all our  measures and actions must be subordinated to their satisfaction.  Innovative approaches and innovation management do not need additional funding. The use of the best techniques and practices, which  already exist at our hospitals and clinics raise quality of health care while  reducing costs. It should be kept in mind that the process of quality  improvement must be continuous. A survey that we carried out on 313  patients in the Federation of B&amp;H shows that the managers of health  institutions are not satisfied with the quality of health care and believe  that this situation needs to be improved. For innovation in health care it is  necessary to create a critical mass of qualified managers - innovators who  will be supported by the key decision makers. To this end it is necessary for  health care institutions, as in all other areas of B&amp;H society, to create a  climate conducive to innovation as the part of national policy.  Keywords: Management, Innovation, Economic Crisis, Health Care, Quality,  Innovation Management, EU Accession.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Foreign Direct Investment in Bosnia and Herzegovina
from 2001 to 2012
Dino Rahimic
International Burch University, Sarajevo, Bosnia and Herzegovina
noname9053@hotmail.com
Uğur Ergün
International Burch University, Sarajevo, Bosnia and Herzegovina
uergun@ibu.edu.ba
This study examines the role and impact of the Foreign Direct investment
in the economic development of Bosnia and Herzegovina. Quarterly
quantitative historical data such as, Foreign Direct Investment , GDP,
inflation and unemployment are used together with qualitative data
obtained through face to face interviews and surveys. Empirical findings
from non-linear regression analysis imply that Foreign Direct Investment
has growing significant positive impact on the economy after the war.
Among the sectors, agriculture and food are the most attractive and
advantageous sectors for the foreign investors.
Keywords: Foreign Direct Investment, Bosnia and Herzegovina, War.

86

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ERGÜN, Uğur </text>
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                <text>This study examines the role and impact of the Foreign Direct investment  in the economic development of Bosnia and Herzegovina. Quarterly  quantitative historical data such as, Foreign Direct Investment , GDP,  inflation and unemployment are used together with qualitative data  obtained through face to face interviews and surveys. Empirical findings  from non-linear regression analysis imply that Foreign Direct Investment  has growing significant positive impact on the economy after the war.  Among the sectors, agriculture and food are the most attractive and  advantageous sectors for the foreign investors.  Keywords: Foreign Direct Investment, Bosnia and Herzegovina, War.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Implementation of Transportation Problem by Using the
Method of Meta-Heuristics Approach
Šemsudin Plojovid
International University of Novi Pazar, Novi Pazar, Serbia
s.plojovic@uninp.edu.rs
In this paper authors will present analysis and implementation of possible
solutions of vehicle routing problem that is based on simulated annealing
method, which belongs to the category of meta-heuristic problem solving
approaches. The described problem is rather complex linear programming
problem from the field of operation research. Testing of developed
applications in software package MATHEMATICA will be described. This
application provides great possibilities when it comes to working with
numerical algorithms, as well as in the field of symbolic and algebraic
calculations.
Keywords: Transportation Problem, Linear Optimization, Vehicle Routing
Problem, Met Heuristics Solving Approach, Simulated Annealing.

253

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                    <text>International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Implementation of Transportation Problem by Using the Method of MetaHeuristics Approach
MuzaferSaračević
Novi Pazar University, Novi Pazar, Srbija
muzafers@uninp.edu.rs
ŠemsudinPlojović
Novi Pazar University, Novi Pazar, Srbija
s.plojovic@uninp.edu.rs , e.ujkanovic@uninp.edu.rs
EnisUjkanović
Novi Pazar University, Novi Pazar, Srbija
SenadBušatlić
International University of Sarajevo, Sarajevo, Bosnia and Herzegovina
s.busatlic@ius.edu.ba
Abstract
In this paper authors will present analysis and implementationof possiblesolutions
ofvehicle routingproblem that is based onsimulated annealingmethod, which
belongs to the category of meta-heuristic problem solving approaches.The
described problemisrather complex linear programmingproblem from the field of
operation research. Testing of developed applications in software package
MATHEMATICA will be described. This application providesgreat
possibilitieswhenit comes to workingwith numericalalgorithms,as well as inthe
fieldof symbolicand algebraiccalculations.
Keywords: Transportation problem, linear optimization, Vehicle routing problem,
met heuristics solving approach, simulated annealing

Introduction
In business economy mostly used methods arelinearoptimizationmethodsthat
allowfindingthe most appropriate(optimal) solution to the problemin whichboth
theobjective of a function(profit) andspending resources are linearlyproportional tothe
values of independent variables. Transportation problemis one of theproblems in the
fieldof operations research. The task is toprovide an arrayofbuyersandsuppliersof a
commodityorganizetransportsothatpricesareoptimal.
One
of
thetransportation
problemswhichbelong toa linear programming problemis theproblem ofdetermining
thebesttimesandthe vehiclerouting problemVRP(VehicleRoutingProblem). Inthe occasion
that there is onlyone vehicle, and if there are noadditional restrictionsthen theVRP
becomes a well-known traveling salesman problemTSP(Traveling SalesmanProblem) in
that case you needa vehicleto reach everypoint ofthe graphwith theminimum cost (time).
Todefine theVRPfor distribution orcollectionof goods, it is necessary toprovide
basicconstraints of the problem. Ata given time, a set of vehiclesservesset of users. Solving
the problemis presented as a set ofroutes(roads). Each routehas astarting pointand an
ending pointinwarehouse of all vehicles that usethe route.There is awarehouses andthe
1

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

distancebetween consumers. Alluser requirementsmust be met,and allthe restrictions
imposedrespected. The aim isthat the totaltransportation costis minimized.It is possible
toimposedifferentconstraints
andobjectivesthat
may
affect
theconstruction
ofroutesduringthe optimizationprocess.Information neededfor a gooddescription of
theuserin solvingVRPis:
a)
b)
c)
d)
e)

a startingpoint thatrepresents warehouse,
quantity of goodsthatneed to be collectedordelivered,
period(time frame) inwhich it is necessaryto servethe user,
timerequired to completedeliveryor collectionof goods at users,
time of unloadingorloading, which depends on the type ofvehicle andapplied
technology,
f) subset ofthe availablevehicles thatcould be used byindividualusersdepending
onpossibility toaccessfor loading and unloading.
The objectivein solvingthe problemis to findthe shortestroute thatstartsat a
givennode,going through all theother nodesin the startingand endingnode.Variables to be
optimizedmust not be onlydistances.Itmay betravel costs, travel timeor
othervariables.Determining thebestroutes, that will be used by group of vehiclesserving set
of customers will represent a generalvehiclerouting problem. For theconcrete
implementationof this problem a software Mathematica has been applied, which hasmany
applicationsin the fieldof symbolicand algebraiccalculations.Mathematica includes a great
collectionof numerical algorithms, as well as a big number of constantsandfunction
approximation.
Approaches for Routing Problem Solving
The first approachto solvingproblems issearchforexact solutions of theproblem.The
practicalapplicationof this approachis very limitedbecause theoptimalsolutioncan befound
onlyina small numberof users.The number of possibleroutesfor the generalcase
ofroutingvehiclesis growingquickly,so it is notpossible to expectthat this approachin the
general casegeneratesusablesolutionsin real-timethat arerequired inpractice.
Heuristic approachrepresents a useof experience,intuition andyour ownestimationwhen
solvinga problem.Unlikeexactmethods,heuristicmethods do notrepresentknowledgeabout
the structureandrelationshipswithin the modeltosolvethe problem.
Some methodsof heuristicapproaches to solving theproblem ofroutingvehicles are: methods
of insertingthe nearestneighbors,addingthe farthestandnearestneighboradded two-pass
sweepmethod,
theClark-Wright
method,
etc.
Heuristic methodsrepresent rule of choice; filtering and rejectingsolutions, and also help to
reducethe number ofpossible waysin solvingproblems.Heuristicalgorithms areoften
basedon the construction ofrouteswhere theconstruction andimprovement ofrouteswith
respectto the targetfunction performediteratively.

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Picture 1. Existing VRP algorithms

Metaheuristicsin practiceis a setof algorithms thatare usedin solvinga variety
ofoptimization problemswhere thealgorithm itselfis very littlechanged depending on
theproblembeing solved. Metaheuristicsapproach ofsolving the problem ofrouting of
vehicles is oftenbasedon localsearchguidedprocesses that aretaken fromnature, such as
simulated annealing, genetic algorithms andant colony.
Picture 2. The main approaches tosolving problems

In solving problems by Metaheuristicsapproachfollowing methods are used:
•Iterativelocalsearch (ILS)
•simulated annealing(SA)
•deterministichardening(YES )
•tabusearch (TS)
•Genetic Algorithms(GA)
•ant colonies(AC) and
•NeuralNetworks (NN).

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Picture 3. Classification of VRPheuristicsfor solving problems

Metaheuristic Approach and Simulated Annealing
Classicaloptimizationprocedurestarts
froman
initialsolution,until
the
currentsolutionreplacesthe better from theimmediate surroundingsand alwaysfinds the
closestlocal
optimum.
Method of simulatedannealingis in the fieldof stochasticoptimization algorithms. Withthis
method we start withone initialsolution,replacingthe existingsolutionbetter,butitcan be
replaced also by the worse, with a certain probability ofacceptance.Probabilityof
acceptingworsesolutionsdecreases
asthe
algorithmprogresses.Unlikeclassicaloptimizationprocedure
with
thesimulated
annealingmethodglobal
optimum
is
achieved.
Implementedalgorithm, used in this method,contains one parameter; the temperature, and
the function that determines theglobal optimumcan be seen as: energygrid(ifwe
determineminimum)ornegative energy of a grid, if we determine themaximum.The
algorithmstarts by choosingthe initial solution, and the initial temperature has arelatively
largevalue(1step).Determining the initialc:




determinethe initialacceptanceprobability(&gt;50%) - p0
determinethe average increaseoffunctionsfor several neighboringsolutionsΔC+
c0is calculatedas:c0=ΔC+/ln(1/ p0)

The currentsolutionis replaced bya better one,butit can be replacedwithworsewith a
certainprobabilityof acceptance(step2).Thisprobabilityis determinedby selectingarandom
numberfrom the interval[0,1], and the condition thata is less than:
exp(E(old) – E(new)/T,
where E(x) is a function for which itseeksa globalminimum, andT is the temperature.

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Ifthe expression is truethe new solutionis accepted. The probability that worsesolution has
been chosenis greaterwhen thehigher temperature. This meansthat in thebeginning of
thesearchspace for obtaining solutions is big, and it will be smaller with temperature drop,
and by the endof the process isnarrowlylocalized.The behavior ofthe function isspecified
with its initialvalue ofthe temperature andspeed ofitsdrop.
Algoritham: Metaheuristics – Simulated annealing
Step 1. - initial solution, and objective function
i:=i0; c:=c0;
Ci:=C(i);
Repetition
Step 2 - acceptance of the neighboring solution
j:=the neighboring solution(i);
Cj:=C(j);
C:=Cj-Ci;
accepti:=FALSE;
Step 2.1
if C&lt;0 than accept:=TRUE;
Step 2.2
if exp(-C/c)&gt;random[0,1] than accept:=TRUE;
if accept=TRUE then
i:=j; Ci:=Cj;
till thermal equilibrium
Step 2.3.
Decrease parameter c;
Till freezing
end.

The finalvalue ofcFusuallywill not be presented, but the process is repeateda number
oftimes.Cooling functionis usuallyimplemented bymultiplyingc witha number less than1,
while the number of repetitions ofthe innerloop(thermalequilibrium) is usually specified as
anumericalvaluedepending onthe size (complexity) of the problem.
Testing of software design
The application that was implementedin software package Mathematicacan bedownloaded
fromthe link:http://muzafers.uninp.edu.rs/
Example
1.
Test
exampledeveloped
applicationsfor
thesimplerproblem,
namelythetraveling salesmanproblem(TSP), using the describedmetaheuristics(simulated
annealing).
Procedure TSP(N,S,p0,α,KTL);
Input parameters:
 N – number of cities (100)
 S – number of repetition at external loop (10-100)
 p0 – initial probabilityof acceptingbadsolutions (0.7-0.8)
 α – reduction factor of 'temperature' (0.5-0.99)
 KTL – coefficient ofthermal equilibrium (repeating cycles, range 0.1-0.5)

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Picture 4. Testing the TSPproblemswith parameters [12,0.04,900,82]

Example 2. Test exampledeveloped applications forcomplex problem(VRP-vehiclerouting
problem), using the describedmetaheuristics(simulated annealing).
Numberofusers =8;
Coordinates={{145,215},{151,264},{159,261},{130,254},{128,252},{163,247},{146,246
},{161,242}};
demand={0,10,7,8,14,20,40,8};
Capacityofvehicles=150;
P=VRP[Coordinates,demand,Capacityofvehicles]
TestVRP[Coordinates,demand,Capacityofvehicles,P]
Example 3. It is possibleto introduce a capacity constraints.Inthis example itwill decrease
thecapacity (eg.Capacityofvehicles= 60).One type ofrestriction benefits is the requirement
thatone useris used in a routethat containsa subsetof other users, and to
servethecustomerbefore
(or
after)
a
subsetofusers.
Limitation ofthis type is theproblemof collectingand shipping, where the goods that
arecollectedata single
usermustprovidethe
same vehicleto
another user.A
commonrequirementisonewheretherouteservesseveral groupsof users,and it is knownthata
group of userstobeserved.
Picture 5.TestingVRPproblemwith parameters,
forexample2 (left) and forexample3 (right)

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1

1

2

2

8.544

8.544

3

3
23.2594

0.9

4

2.82843
5

14.5602
0.9

18.6815

4

2.82843
5

18.9737
6

7

6

7
5.38516

5.38516
8

8

0.8

0.8

48.0833
41.7852
40.7185

31.0161

36.7151

31.0161

31.3847

31.3847

0.7

0.7

1

1

0.6

0.6

0

0.05

0.1

0.15

0.2

0.25

0.3

7

0

0.05

0.1

0.15

0.2

0.25

0.3

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Conclusion
Presentedmetaheuristicscan
be
considered
asan
effectivenaturalsupplement
tomathematicalanalysis.The above methodmay beusefulwhen the system(business) or
process is relativelycomplex (for example, when we do not disposeanalytical
methodsforsolution of amathematical model). Also, themethod canbe usefulwhen it is
notpossible toanalyze in detail thesystem ina real environment.
The above presented implementation ofsimulated annealingprovides manybenefitsto the
givenproceduresof experimentation:
1. to a largeextent,can reduce the risk, depending on the reality thatis
observed(eg, economic risk, the risk of attack anddefense),
2. time saving,
3. obtaininga clearerpicture of theprocesses, structure andfunction of the
systemto be analyzed,
4. correctanalyses of complexindustrial andother systems.
References
C.

Nilsson (2003). Heuristicsforthetravelingsalesman
LinköpingUniversity, Sweden.

problem.

Tech.

Report,

C. White, G. Yen (2004). A HybridEvolutionaryAlgorithmforTravelingSalesman Problem,
EvolutionaryComputation, 2004. CEC2004. Congress on, Vol.2, pp. 1473 – 1478.
D. Johnson, L. McGeoch (1995). Thetravelingsalesman problem: a casestudy in
localoptimization.
I.Salajic,

J.

J.Nikolic,
M.
Ţoljom
(2001).
TSP
–
Problem
trgovackogpunikanapotpunomgrafu, primjenomgenetskog algoritma (GA) i
algoritma simuliranogkaljenja (SA).

Kratica
(2000).
Paralelizacijagenetskihalgoritamazarešavanjenekih
kompletnihproblema, Doktorskadisertacija, Beograd.

NP

-

J. Little, K. Murty, D. Sweeney, C. Karel (1963). An algorithmforthetravelingsalesman
problem. Operations research, 11 (6), pp. 972-989.
K. Binder, ed. (1986). "Monte Carlo Methods in Statistical Physics", second ed., SpringerVerlag.
M. Garey, D. Johnson (1979). “ComputersandIntractability: A Guide totheTheory of NPCompleteness”. W.H. Freeman.
M. Pilat, T. White (2002). Using geneticalgorithmsto optimize ACS-TSP, LectureNotes in
ComputerScience, v. 2463, pp. 282-287.

8

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

P.

Borovska
(2006).
SolvingtheTravellingSalesman
Problem
in
ParallelbyGeneticAlgorithm on Multicomputer Cluster, International Conference
on ComputerSystems.

R.Thamilselvan, P. Balasubramanie (2009). A GeneticAlgorithmwith a Tabu
SearchforTravellingSalesman Problem. Int. Journal of R.T. in Engineering, Vol.
1, pp. 607-610.
Richard J. Gaylord, Samuel N. Kaminand Paul Wellin, (1993). "Introductionto
Programming withMathematica", TELOS/Springer-VerlagPublishers.
S. Eberle (2008). A PolynomialAlgorithmfor a NP-hard toSolveOptimization Problem,
Dissertation der FakultätfürPhysik der Ludwig-Maximilians-UniversitätMünchen.
S.

Kirkpatrick,
C.
D.
Gellatand
M.
P.
"Optimizationbysimulatedannealing", Science 220, 671.

Vecchi,

(1983).

S. Lin, B. Kernighan (1973). An effectiveheuristicalgorithmforthetraveling-salesman
problem. Operations research, 21(2), pp. 498-516.
Saračević M., Mašović S., Međedović E. (2010). Application of objectorientedanalysisanddesign in navigationsystemsand transport networks, 10th
International Conference "Researchand Development in MechanicalIndustry",
RaDMI 2010, ISBN: 978-86-6075-017-6, pp. 656-664.
Saračević M., Mašović S., Plojović Š. (2012). UML modelingfortravelingsalesman
problem based on geneticalgorithms, SouteastEuropeanJournal of Soft
Computing, ISSN: 2223 -1859, Vol.1, No 2, pp.72-79, electedtoIUSSCRG 2012.
T. Cormen, C. Leiserson, R. Rivest, C. Stein, (2001)."IntroductiontoAlgorithms", MIT
PressandMcGraw-Hill, secondedition,.

9

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                <text>Implementation of Transportation Problem by Using the  Method of Meta-Heuristics Approach</text>
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                <text>In this paper authors will present analysis and implementation of possible  solutions of vehicle routing problem that is based on simulated annealing  method, which belongs to the category of meta-heuristic problem solving  approaches. The described problem is rather complex linear programming  problem from the field of operation research. Testing of developed  applications in software package MATHEMATICA will be described. This  application provides great possibilities when it comes to working with  numerical algorithms, as well as in the field of symbolic and algebraic  calculations.  Keywords: Transportation Problem, Linear Optimization, Vehicle Routing  Problem, Met Heuristics Solving Approach, Simulated Annealing.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

The specificities of interpersonal communication
Bahra Plojovid
International University in Novi Pazar, Novi Pazar, Serbia
b.plojovic@uninp.edu.rs
The specificities of interpersonal communication are actually the
specificities of social inclusion and the functioning in different social
relations. These specificities (skills) provide an effective and a satisfactory
communication with other people. Mainly, it consists of recognizing the
feedback and an articulation of positive response, the empathy with
others, ability to listen to others, the delicacy of self-presentation, precise
observation of him/her and others, as well as controlling the use of verbal
and non-verbal cues. Listening skills relies on non-verbal communication.
Meanwhile, it includes the knowledge on the issue, acceptance of the
other person as a partner in communication, regardless of a potential
agreement or disagreement in terms of attitudes, beliefs and value
systems. Perception skills are identified as three levels of perception:
recognition, reflection and action. Practically, this means making
appropriate observations about the other person, as well as avoiding hasty
conclusions, and making a careful assessment of the formation of a proper
response to the perception of other people.
Keywords: Interpersonal Communication, Pedagogical Communication,
Empathy

53

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                    <text>International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Peculiarity of interpersonal communication
BahraPlojović
International University in Novi Pazar, Novi Pazar, Serbia
b.plojovic@uninp.edu.rs

Abstract
The specificities of interpersonal communication are actually the
specificities of social inclusion and the functioning in different social
relations. These specificities (skills) provide an effective and a satisfactory
communication with other people. Mainly, it consists of recognizing the
feedback and an articulation of positive response, the empathy with others,
ability to listen to others, the delicacy of self-presentation, precise
observation of him/her and others, as well as controlling the use of verbal
and non-verbal cues. Listening skills relies on non-verbal communication.
Meanwhile, it includes the knowledge on the issue, acceptance of the other
person as a partner in communication, regardless of a potential agreement or
disagreement in terms of attitudes, beliefs and value systems. Perception
skills are identified as three levels of perception: recognition, reflection and
action. Practically, this means making appropriate observations about the
other person, as well as avoiding hasty conclusions, and making a careful
assessment of the formation of a proper response to the perception of other
people.
Keywords: Interpersonal Communication, Pedagogical Communication,
Empathy

Introduction
Conditioned by predominant philosophical conception and the social, cultural, and
historical context, the pedagogy as a scientific theory of education and upbringing as well
as the educational activities and their practical realization, today faces a more emphasized
need to set up a new foundation that will contribute to the development of better and more
efficient educational action in the pedagogical practice and thus achieve the set goal of
education - developing the full potential of every child.
The educational system with a range of existing deficiencies is becoming increasingly
obsolete, losing its breath and rhythm to follow the changes in the 21 century. At the macro
level, the educational systems are very much outdated, based on the poor tradition of low
level of scientific knowledge, preserve the defined past of outdated content from the
onslaught of chaotic, open and non-defined hypothetical future. In addition, the dominant
social, economic and educational standards in the center of attention put the results
neglecting the process. Although in the context of teaching and the teaching quality,
personal satisfaction of teachers and students is as important as the results achieved; these
norms are reflected as in a mirror in both our schools and the entire education system. As a
result, there is alienation of students and teachers from the educational content as well as
from each other, and even from themselves, from their own origin and identity. Difficulties
of personal development, interpersonal communication, and the difficulty in solving
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

specific problems often occur as a result of it. The phenomenon of social pathology among
children and adolescents records a progressive growth.
A number of relevant researches and the progress in various fields of scientific work,
particularly in those important for the education of psychology, pedagogy, sociology,
neurology, as well as educational requirements of futurology, complement the current
educational context.
A logical question is asked, how the educational or teaching process can catch up with the
modern world and respond to the challenges that lie ahead.
What is the role of the teacher as the main inspiration of the children's comprehensive
development: cognitive, conative, affective, psychometric, in all the changes that are
happening? What teachers as equal partners and not the solely responsible in the entire
process of education need to make the teaching process an adequate response sent to this
world of constant change?
A school that does not regard the pupil as a person, the school whose aim exclusively is
adoption of academic knowledge, which is not characterized by modern and creative
thinking and communication activity, and which does not have time to engage with social
and emotional development of students, the school where in the classrooms "rules
emotional desert", in the words of Flanders, is not the 21st century school.
All these are arguments that together with our daily experience we are all witnessing in the
upbringing and education practice are the main reason we have chosen to study a topic that
is related to the interdependence of interpersonal communication between students and
teachers and the quality of the teaching process, in order that its content and message
illuminate the importance of this segment of educational work and as such to make it a
subject of daily questioning.
Interpersonal Communıcatıon
Interpersonal communication functions in such a manner that the sender sends message to
the recipient, the recipient receives the message at the moment of sending, and can
immediately come up with an answer and send it back to the sender. This model of
communication does not lag, but is concerned about the symmetrical communication,
which means that the messages, receiving and reaction occur almost simultaneously. In this
way, both sides in the communication are able to follow the progress of understanding and
eliminate any misunderstandings. Active listening, in addition to a clear speech, is one of
the two basic skills of interpersonal communication. It is necessary to emphasize the
importance of listening in detection of learners' needs, as well as the importance of
language skills in the process of clear and consistent messages, and the need to develop
training programs that will develop just these two communication skills. Clear addressing
the student beside the verbal also has a non-verbal aspect. Unlike verbal communication in
which information is transmitted, the nonverbal communication confirms or questions the
things it communicates.
Communication is effective only when the participants understand each other, or when the
sent and the received message have the same meaning. Understanding can be achieved if
the sender knows exactly what he wants to impart and to really convey the intended

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

meaning and what is communicated is corresponding to the recipient's communicative
style, so that he receives a message that is consistent with the meaning the sender wanted
to convey.
Effectively conveyed message is only the one which the recipient understood the way the
sender intended to. All this requires extreme precision in the speech and understanding of
the basic techniques of oral expression. Communication is the process of transferring
messages between two or more individuals, and is achieved only when the message is
received by the recipient. In order for the communication to be effective, it is essential that
the recipient understands the message and acknowledges this to the sender.
Communication involves elements of different nature (Osmić, I., 2001:51):
 Cognitive: reflected in the ability of perception, interpretation of messages, causing
emotions and reactions,
 Semantic: reflected in the use of spoken and written language, terms and jargon,
 Symbolic: the use of gestures, grimaces, body movements, dress style, etc.
Any situation in which two or more people are involved in the exchange of messages
through any kind of characters is called transaction. Some experiences are typical for
members of a particular culture, and can be understood only if are engaged and interpreted
within previously stated general experiences. The more the participants in this cultural
communication are alike, their perceptions and experiences of some phenomena are more
similar. The more they are culturally diverse, their perceptions and experiences are more
different.
Regulation of contacts with another person is at the same time dependent of both conscious
and unconscious symbols, but also of the context, code, situation or purpose of the
communication understood as feedback. In interpersonal communication the concept of
feedback has two aspects. In the first sense the feedback assumes sending certain message
through verbal or non-verbal channels, in order to receive a response to given data from the
recipient. Another feedback aspect indicates that the response is set in accordance with the
content, style and purpose of communication (N. Havelka, 2000).
The skill of communication between two people depends on the knowledge and the proper
use of verbal and non-verbal symbols. The interpersonal communication skill is actually
the skill of social inclusion and functioning in different social relations. This skill yields
effective and satisfactory communication with other people. It consists primarily of
identifying feedback and articulating a positive response, but also of the ability of empathy
with others, the ability to listen to others, the delicacy of self-presentation, careful
observation of oneself and others, as well as controlled use of verbal and non-verbal
symbols. Listening skills rely on non-verbal communication, and include knowledge about
the individual talking to, as well as the acceptance of the other person as a partner in
communication, regardless of the potential agreement or disagreement in terms of
attitudes, beliefs and value systems. Perception skills are identified in three levels of
perception: recognition, reflection and action. This means the creation of adequate
observations about the other person. Avoiding hasty conclusions, making careful
assessments and forming a proper response on the perception of the other individual.
Active listening
Active listening is one of the basic communication skills, upon which other more complex
professional skills reside. Active listening is listener’s effort to assist itself, but also the

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

interlocutor, in clarifying the messages, because the speaker may often not have a clear
message which he wants to convey or he does not transmit it accurately enough.
Active listening in interpersonal communication is listening with a reason, when one is
trying as much as possible to understand the person speaking and what it is saying. Active
listening requires the person listening to really understand the message and confirm its
understanding giving the person who sent the message the appropriate feedback on it.
In order for the listening to be called active it is necessary that the listener uses
paraphrasing, reflecting, asking questions and summarizing skills. Using these techniques
one reflects the cognitive and emotional content and clarifies ourselves and the interlocutor
the facts the interlocutor has pronounced and his emotional state related to the content.
Paraphrasing the uttered is used during the conversation in order to clarify the uttered, and
consists of the fact that the listener can repeat his words, what he heard from the speakers
and how it sounded to him.
Asking questions - active listening discusses issues and questions as asked for clarification
of what is being said. The question is posed to the interlocutor for the sole purpose of the
conversation topic.
Summarizing refers to brief retelling of what the interlocutor said, and is commonly used
at the end part of the conversation or at the end of the whole conversation. The aim is to
paraphrase and summarize the content of the conversation which we have heard, and the
purpose is to clarify the issues and highlight the most important points (Osmić, I., 2001:
32).
Interpersonal communication could be defined in a way when it would be compared with
other forms of communication. It largely depends on the number of people, how much are
they physically close to each other during the course of communication, how many
channels were used and whether there is a feedback.
Dynamic factors of interpersonal communication
As for the dynamic factors in interpersonal communication, feedback should be
emphasized in the first place. Among other dynamic factors the following should be noted:





communicating entities,
interaction terms of achieving reciprocity roles,
goals and message exchanges,
communicative competence of the communication participants.

We must not forget the objectives of exchanging messages because interpersonal
communication is very purposeful, personified by a rationally set goal, but we should not
drop out of sight the motivation and dynamic aspect of interpersonal communication that is
designated by the mental and physical structure of the personality. Therefore, we can talk
about the undetectable process of interpersonal communication known as persuasive
process. Its essence is in an effort through message exchange influence the thinking,
feeling and hearing interlocutors, but also oneself.
Persuasive process seeks, in particular, to act upon their attitudes in terms of their:
1. ratification,
4

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

2. correction or
3. changing.
Communicative competence is determined by a number of individual capabilities such as:
feedback recognition and articulation of a positive response, the ability of empathy with
others, the ability to listen to the others, self-representation, careful observation of oneself
and the others as well as the use of verbal and non-verbal symbols.
Forms of interpersonal communication
Interpersonal communication can develop towards the situation in which it takes place.
ZoricaTomić (2003, 64) identifies five types of interpersonal communication, such as:
1. Formal or informal, the difference between calculated on one side and spontaneous
use of communication skills on the other side.
2. Public or private, the difference in terms of using the communication context, for
example when communicating in a public place one should avoid the use of nonverbal cues and expressing emotions.
3. Distant or intimate, the difference in the relationships’ quality between the parties
in the communication; distant communication means, as a rule, higher degree of
formalism in speech or appearance, while intimate communication testifies about
closer ties between people.
4. Ritual or open, the difference in being able to predict the use of the communication
code.
The typical way of using feedback is questioning "whether you understand what I have
told you," and the answer not consisting of only one word would normally be regarded as
good feedback.
Many people are poor listeners because the average man can utter between125-200 words
per minute and can understand up to 400 words a minute and this difference leaves plenty
of time for mind wandering. One of the ways to improve active listening is to put yourself
in the position of the sender, and there are of course active looking into the eyes of the
speaker, asking questions, not too frequent interruptions of the speaker, confirming nods
and appropriate facial expression, paraphrasing etc.
Concluding Remarks
The time in which we live is characterized by rapid development of science and technology
as well as the rapid increasing knowledge. The explosion and the expansion of scientific
knowledge is becoming larger and stronger. Many results of scientific researchers are
increasingly being applied in manufacturing, engineering, technology ... And that
contributes to the struggle for scientific and technical progress made in the field of
education, which means that education cannot be acquired by obtaining a diploma, but
continuing education is necessary. The education is a prerequisite for productivity and
quality of production. "Hence, the objectives and principles of the concept of modern
education imply a complete reconstruction of the traditional educational system, updating
of its objectives and content, between its methodological bases and restructuring the
institutional and organizational forms." (Parlić, 1977, p. 744). Therefore, modern education
requires changes in the traditional educational systems, methods, forms, principles.
Activity is essential for the development and progression of personality as the new school

5

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

affirms students as an active subject in the classroom. Therefore, in order to encourage
development, it is a necessary to prepare the conditions for the participation of young
people - students and even teachers.
In the modern school, the teacher does not only "hold" classes and is not only the main
source of information, but a person who observes, organizes, stimulates, values, favoring
different processes of learning and knows how to apply, when necessary, certain strategies
of compensation"(Djordjevic, 1997, p. 9:10). This requires changes into the role of trainees
and teachers because it is expected that modern techniques and technologies will enable
faster and better knowledge acquisition, which means that the current role of the teacher
lecturer and assessors is outdated and replaced with new roles. "Engagement in teaching is
the basic and most important segment of the teachers' role. This sphere of its role
incorporates:
a) the obligations and expectations of the education system to be defined through the
objectives, tasks and content of the curriculum and
b) direct communication with students as individuals and the class as a group.
The teacher's role includes certain activities in relation to the creation of a teaching
situation, treatment of the curriculum, selection and application of forms and methods of
work, the students as individuals and the class as a group.
The teacher is the creator of special, highly complex types of situations in which occur
numerous and very diverse processes on a personal and interpersonal level"(Havelka,
2000, p 124.). Consequently, the teacher is very important participant in the classroom.
Given its many crucial roles, it is up to him that the quality of education depends on. In
order for this quality to be as high as possible - better teacher must adjust his work to the
other factors of the course primarily disciples, their intellectual abilities, prior knowledge,
interests, motivation. In this sense, the interpersonal relationships of teachers and students
as well as the educational facilities are also an important factor of teaching. They must be
appropriate to the age of the students.
Based on everything that was said, the following conclusions can be drawn:
- The exercise of effective pedagogical communication in the classroom makes a
number of objective and subjective factors. These are the most common: inattention
and lack of concentration, confusion over requirements, stress, fatigue and anxiety;
previously formed prejudices and assumptions about the subject or the people with
whom the communication is done, labeling, trial and analyzing others and
ourselves; slight personality, denial of personal responsibility, ordering and
criticism, attacks, imposing one's opinion or will; vague expression, excessive
criticism, diversity of experiences and cultural origin, not knowing the language of
the interlocutor, noise and other interfering environmental factors.
- The following factors are important in creating an atmosphere of effective
communication in the classroom are: mutual respect, equality of the interlocutors,
unconditional acceptance without criticism and judgments, honesty and respect,
appreciation of one's own and others' needs.
- The efficient educational communication in the classroom should aim towards:
encouraging reviews, development of speech, making choices, providing new
knowledge, exchanging ideas and feelings, encouraging the process of solving
problems, etc.

6

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

-

-

Effective pedagogical communication in teaching is achieved by using: active
listening, establishing and maintaining a good relationship with the interlocutor;
honesty; using clear and short sentences and familiar words; respect the feedback
on understanding the message of communication, alignment of verbal and
nonverbal messages, responding to the needs and feelings of all participants in the
communication; expressing feelings, attitudes and needs, a clear expression of the
request; commenting behavior, not the person, providing stimulating instruction,
encouragement to ask questions, etc.
The conditions for the efficient organization of communication stated as
compliance of communication with unique humanistic principles, taking into
account the specific characteristics and capabilities of the protégés, honest, humane
and democratic attitude, development and strengthening of the personality of the
protégés.

Effective pedagogical communication in teaching is the necessity of modern education and
the study of this issue is given more attention in the modern pedagogy science. According
to its characteristics it is nothing unattainable or unrealizable, and forms the basis of
humanization of educational processes, the creative learning and interactive teaching.
The characteristics of effective communication that are listed, as well as pointing to the
necessity of change in the field of teaching communication constitute a starting point of all
efforts turned towards improving and encouraging this process.
The interdependence with other segments of the foundation of the teaching process, the
communication continues to be significantly affective to its efficiency. With its positive
characteristics and its quality, the educational communication creates conditions that on its
foundations is built a complex construct of an efficient and high-quality teaching process.
Positive characteristics and quality of communication in the classroom, such as: orientation
on personality development, encouraging creativity, developing skills and students'
independence, largely contribute to increasing its efficiency. By providing interaction,
democratic relations, equality, humanity and confidence, motivation, the educational
communication develops a positive attitude towards the educational process and a
willingness to make a greater effort in the implementation of educational tasks and goals.
If participants evaluate teaching communication and regard it as positive, stimulating and
high-quality, if they are satisfied with it, then they much easier and with more will and
loving approach to all the teaching activities and achieve better results in them.
Conversely, if students regard the teaching communication and assess as unpleasant, poor,
disadvantaged, if they are not satisfied with it, the efficiency of the teaching process will
be lesser. With its negative qualities such as being unidirectional, passive, inequal,
authoritarian, disrespectful, etc, communication in the classroom affects the entire
educational process and thus its efficiency.

References

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Bakovljev,
M.
(2001).Navikavanjeučenikanauljudnudiskusijukaodoprinosvaspitanjuzademokratij
u, ZbornikInstitutazapedagoškaistraživanja, br. 33 (256-259). Beograd:
Institutzapedagoškaistraživanja.
Beck,

L.I.
et
al.
(1996).Questioningtheauthor:
a
yearlongclassroomimplementationtoengagestudentswithtext, Elementary School
Journal, Vol. 96, No. 4, 467-474.

Banđur, V. (1985).Učenik u nastavnomprocesu, VeselinMasleša, Sarajevo.
Babić, V., (1983).Međuljudskiodnosi u školi, Svjetlost, Sarajevo.

8

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                <text>The specificities of interpersonal communication are actually the  specificities of social inclusion and the functioning in different social  relations. These specificities (skills) provide an effective and a satisfactory  communication with other people. Mainly, it consists of recognizing the  feedback and an articulation of positive response, the empathy with  others, ability to listen to others, the delicacy of self-presentation, precise  observation of him/her and others, as well as controlling the use of verbal  and non-verbal cues. Listening skills relies on non-verbal communication.  Meanwhile, it includes the knowledge on the issue, acceptance of the  other person as a partner in communication, regardless of a potential  agreement or disagreement in terms of attitudes, beliefs and value  systems. Perception skills are identified as three levels of perception:  recognition, reflection and action. Practically, this means making  appropriate observations about the other person, as well as avoiding hasty  conclusions, and making a careful assessment of the formation of a proper  response to the perception of other people.  Keywords: Interpersonal Communication, Pedagogical Communication,  Empathy</text>
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Suggestions to Financial Crises
İsmail Özsoy
Fatih University, İstanbul, Turkey
iozsoy@fatih.edu.tr
2008 Global Financial Crisis is considered by many as one of the most
serious crises ever seen in the world finance history. Yet, thanks to the
quick response of policy-makers in contrast to the Great Depression of
1929, the crisis did not hit as destructive as expected. However, we have
not seen any fundamental suggestion to avoid the future crises of the
same kind or even more devastating ones though the vital suggestion of
the Vatican about Islamic finance as solution to financial crises. This paper
is intended to draw the attention of economists and finance experts to the
Islamic finance as an alternative system of crisis preventive nature. After
giving the highly important saying of the Prophet Muhammad -so-called Six
Items Hadith-, we will try to extract some basic principles that can be taken
into consideration in financial transactions. This two sentences Prophetic
saying or hadith is so comprehensive that it expresses exactly 80 kinds of
exchanges. According to that hadith, out of these 80 kinds of exchanges, 46
sales include a religiously forbidden “interest”. Interest is a value transfer
from one party to another in loans or exchanges, particularly in the finance
sector without any corresponding real value in the underlying assets,
resulting in financial or economic crises.
Keywords: Financial Crisis, Interest, Islamic Finance, Six Items Hadith.

175

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                <text>2008 Global Financial Crisis is considered by many as one of the most  serious crises ever seen in the world finance history. Yet, thanks to the  quick response of policy-makers in contrast to the Great Depression of  1929, the crisis did not hit as destructive as expected. However, we have  not seen any fundamental suggestion to avoid the future crises of the  same kind or even more devastating ones though the vital suggestion of  the Vatican about Islamic finance as solution to financial crises. This paper  is intended to draw the attention of economists and finance experts to the  Islamic finance as an alternative system of crisis preventive nature. After  giving the highly important saying of the Prophet Muhammad -so-called Six  Items Hadith-, we will try to extract some basic principles that can be taken  into consideration in financial transactions. This two sentences Prophetic  saying or hadith is so comprehensive that it expresses exactly 80 kinds of  exchanges. According to that hadith, out of these 80 kinds of exchanges, 46  sales include a religiously forbidden “interest”. Interest is a value transfer  from one party to another in loans or exchanges, particularly in the finance  sector without any corresponding real value in the underlying assets,  resulting in financial or economic crises.  Keywords: Financial Crisis, Interest, Islamic Finance, Six Items Hadith.</text>
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Narratives of Graduate Women on Unemployment in
Turkey: Great Expectations, Better Realities
Aylin Özman
TED University, Ankara, Turkey
aylin.ozman@tedu.edu.tr
Zuhal Yesilyurt Gündüz
TED University, Ankara, Turkey
zuhal.gunduz@tedu.edu.tr
Turkey ranks among the countries that have the largest gender gap in
terms of economic participation and opportunity for women. The progress
made in the status of women, has largely been confined to the legal level
with limited practical consequences. Limitations are much visible regarding
the position of woman in the labor market. Even though women’s access
to employment and equal pay are guaranteed under the Constitution and
regulated by Laws, women’s participation in the labor market is still much
lower than men. Women with a university degree are no exception in this
respect. In fact, although university graduate woman are more likely to be
employed than women without university degrees, their unemployment
rate is much higher as compared to men having the same qualifications.
While displaying the signs regarding the dissipation of human capital in the
country, the (long-term) unemployment of university graduate women
involve clues on the socio-political and cultural context, referring mainly to
the influence of patriarchal ideology and its continuous reproduction with
the ever rising tide of conservatism. The aim of this study is to delineate
the dynamics of (long-term) unemployment of university graduate women
in Turkey, with reference to their experiences both in the labor market and
in the private domain. Departing from women’s own narratives, the study
revolves around two interrelated dimensions each describing woman’s
venture through the labyrinth of patriarchal restrictions: One concerns
with the gender based discriminations in the process of job searching,
referring to the subordinate position of woman in the market and the
other pertaining to her life experience in the private sphere, touching on
her squeezed position between her (professional) expectations and
traditional gender roles.
Keywords: Women’s unemployment, narratives of women, women in
Turkey, graduate unemployment.

44

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